A local experiment in urban housing -- creating residential artists' lofts to revitalize a downtown Santa Ana neighborhood of taco shops, street vendors and check-cashing operations -- has generated unexpected interest and is spawning similar projects nearby.
The popularity of the lofts is evident in their escalating values. They were originally priced in the upper $200,000s in the summer of 2002, but some are selling at nearly $600,000.
"Who would have thunk it?" said Allan Baldwin, an affordable housing advocate. "It does make you wonder where will just regular working people live if people are paying a half-million dollars to live in the middle of stores."
City officials hope the fledgling downtown development, known as Artists Village, will create an upscale ambience in a downtown once stigmatized by vacant buildings, loiterers and crime, and that the lofts will be followed by late-night bistros and other more diversified businesses.
A small group of Latino merchants has complained about the city's support of Artists Village, saying it amounts to a gentrification that will ultimately lead to their demise.
Indeed, at the Artists Walk Lofts on Main Street, it's anything but a typical immigrant's life. A painter works on a large canvas, a photographer shoots an advertisement and a sculptor sells pottery.
"It's a wonderful creative community where ideas are flowing," said Michael Maas, a painter who bought his loft before it was completed. "It's a place where people are excited, not only because the value has gone up but because there's a flavor here you can't find [elsewhere] in Orange County."
Affordable housing advocates say they regret that more has not been done to provide housing for many immigrant families who squeeze into small apartments in the city.
But they say they understand the city's strategy to improve its downtown the same way San Diego transformed its urban Gaslamp Quarter into a chic residential and entertainment district.
The rising price tag for the lofts has stunned city officials, residents and even the Seal Beach developer, the Olson Co., especially given their proximity to the vibrant immigrant businesses that prompt many visitors to liken downtown Santa Ana to a little Mexico. Most of the existing residences are small bungalows and crowded apartments.
"When we first started, we were asking in the high 200s, and we thought we would be pushing it," said Alex Hernandez, Olson senior vice president.
