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Home sales shrivel in SoCal during the slowest two years on record – Robert Khodadadian

Potential home buyers across Southern California have stepped out to lunch, with the pace of purchases at an all-time low.

With the price of homes out of reach of most buyers, only 357,486 homes in the six-county region were sold during 24 months ending in April — the slowest two years on record and the sixth-consecutive all-time low, the Orange County Register reported, citing figures from CoreLogic.

Sales ran 33 percent below the 37-year average and 10 percent less than the pre-pandemic sales low of 399,178 in March 2009. 

The typical SoCal home in April cost $760,000, up 1 percent in the past two years after 38 percent gains in 2020-2022.

Across the region,15 percent of Southern California households can qualify to buy, according to the California Association of Realtors. The affordability gap is even worse in Orange County, where only 11 percent of households qualify to buy a home.

The typical home in OC cost nearly $1.2 million in April, up 14 percent in the past two years after 39 percent gains in 2020-2022.

The buying pace is even slower than in the Southern California region, with 7 percent interest rates adding to the steep cost of purchases.

Only 49,284 homes in Orange County were sold in the 24 months ending in April, the slowest two years since records were launched in 1988 and the fifth-consecutive all-time low.

The homebuying pace in April was 39 percent below the 37-year average and 6 percent less than the pre-pandemic sale bottom of 52,293 in May 2009, during the global financial crisis.

While few houses sell, the ones that do go quickly. Single-family houses in OC  lasted only 21 days on the market in the first four months of the year, 25 days faster than the average sales pace since 2000, according to the Realtors association.

— Dana Bartholomew

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Eklund-Gomes LA report debuts with “House of the Moon”  – Robert Khodadadian

Bel-Air’s Vivenda da Lua, or House of the Moon, went into contract with an asking price of $15.8 million, making it Los Angeles County’s biggest pending sale last week.

The nine-bedroom, eight-bathroom home at 10651 Chalon Road sits in the top spot in the inaugural report for the county from brokerage Eklund-Gomes. Called the Eklund Weekly Luxury Report L.A., the weekly roundup tracks signed contracts of residential properties with prices of $4 million or more. All data is sourced from MLS.

Property records show Vivenda da Lua’s seller is a family trust tied to the late interior designer Erika Brunson, for whom the estate was designed.

Coldwell Banker Realty’s Joyce Rey has the listing for the property, which totals 9,183 square feet. Its design was modeled after a Spanish Portuguese villa.

Highlights of the Bob Ray Offenhauser-designed property include a three-story main house, attached guest suite, pool, gardens, library and Zen room.

The home hit the market in November for just under $20 million before a series of price cuts.

Overall, single-family homes in the county sat on the market for an average of 60 days, with prices averaging $6.9 million, according to the Eklund-Gomes report.

The House of the Moon sits less than two miles from another Bel-Air property, named Villa Del Amor at 10936 Chalon Road, which entered the market last week for $115 million. It’s owned by financiers and Sugarfina board directors Paul Kessler and Diana Derycz-Kessler.

The county’s second-largest contract last week is a home once owned by Muhammad Ali. The Hancock Park property at 55 Fremont Place is under contract for $13 million.

Property records show a notice of default sent Feb. 7 on the 10,567-square-foot home. It went to auction in April. 

The Beverly Hills Estates’ Stefani Stolper and Kristen Lawson, along with Coldwell Banker’s June Ahn, are the listing agents.

The Fremont Place home was previously listed in 2022 for about $17 million by Michael Lawson, former Los Angeles Urban League CEO, and Mattie McFadden-Lawson.

Across Los Angeles County, a total of 27 single-family home contracts in the $4 million-plus market segment were inked between June 3 and June 9 for $185.5 million in volume, according to the Eklund-Gomes report.

Elsewhere in the country, Miami-Dade County counted 25 home and condo contracts totaling $220.5 million for the same period ended June 9, according to Eklund-Gomes Weekly Luxury Report Miami. The brokerage’s New York report counted 24 properties under contract totaling $193 million, according to a report for the same week from Olshan Realty. 

Olshan produces a weekly luxury market report for Manhattan, with Eklund producing a similar roundup for Miami, Austin and now L.

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  Uncategorized, Celebrity Real Estate, Los Angeles, Luxury Real Estate 

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Brookfield beats appeal aiming to block 27-story condo tower in DTLA – Robert Khodadadian

Brookfield has beat back an appeal seeking to block construction of a 27-story apartment highrise in Downtown Los Angeles.

The Toronto-based real estate giant won support of the Central Area Planning Commission, which voted to reject the appeal by homeowners of the Skyline condominiums regarding the proposed construction of a 236-unit building planned for 949 South Hope Street, in South Park, Urbanize Los Angeles reported.

Thus ended a five-year battle between Brookfield and the original developer, Forest City Realty Trust, based in Cleveland, and the homeowners association for the 14-story condo complex at 600 West 9th Street.  

The appeal dragged on with more than 20 continuances after Brookfield acquired Forest City in late 2018 for $6.8 billion.

Plans call for replacing an office building of unknown size with 236 apartments above 6,700 square feet of ground-floor shops and restaurants.

The curved glass tower, designed by Chicago-based Solomon Cordwell Buenz, would include a rooftop pool, sky lounge, a fitness room and parking for 179 cars.

Seeking a 20-percent required parking reduction, the developer had planned for an existing 440-space underground parking garage at the project site to fulfill the project’s parking requirements, What Now Los Angeles reported.

The garage also was to serve as parking for the 14-story condo building.

The Skyline Homeowners Association claimed the project should have never been approved, contending part of the entitlement application sought to transfer floor area from the Skyline property without the permission of the association, according to the appeal.

In February, representatives of both the homeowners and Brookfield indicated the two parties had reached an agreement for unspecified terms. The Planning Commission hearing was delayed until this month to allow absent homeowners time to ratify the deal.

While not all homeowners have signed off, a Skyline HOA representative urged the commission to reject its appeal, putting the dispute to bed.

While details of the agreement between Brookfield and the Skyline homeowners were not disclosed, one Urbanize reader said the grievance stems from the proposal to build a tower on top of a subterranean parking garage.

The garage, owned by the homeowner’s association, would be closed during construction of the Brookfield tower, while the settlement agreement involved a “laughably low fistful of dollars” in compensation, the reader said.

It’s not clear if Brookfield, which has defaulted on $1.1 billion in debt tied to Downtown L.A. office towers since last February, plans to break ground on the 251,200-square-foot highrise across from Grand Hope Park.  

— Dana Bartholomew

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EGC Real Estate scores $22M bridge loan for Koreatown apartments – Robert Khodadadian

EGC Real Estate has scored a $22 million bridge loan from Beverly Hills-based lender Bolour to help recapitalize a 67-unit apartment complex in Koreatown.

Priority Capital Advisory, run by Zachary Streit, arranged the financing for Kanvas, the name of the multifamily property at 905 South Vermont Avenue, and announced the deal on Thursday. Terms of the deal were not disclosed.

EGC completed the project in the first quarter, but was looking for an “interim, shorter-term financing solution,” Streit said in a statement. 

The funding will help keep the project afloat until ECG can score long-term financing, and help ECG start leasing. 

Many multifamily owners are tapping into short-term, bridge financing as a way to weather through this high interest-rate period, rather than locking in longer-term financing while rates are high, according to multifamily brokers and investors. 

EGC, run by Ron Gonen, bought the site for $2.35 million in 2015, records show. No loan was recorded in connection with the acquisition or construction. 

The property includes 13 studios, 33 one-bedroom units and 21 two-bedrooms. Seven of the units are classified as affordable. 

Rents at the complex range from $1,971 a month for a studio to $4,000 for a two-bedroom, according to online listings. 

The average asking rent for a one-bedroom apartment in the Wilshire Center-Koreatown market was $1,995 a month in May, down 9 percent from a year ago, according to Zumper data. The market has become a hotbed for multifamily development as the zoning helps developers build a lot of units, with three substantial projects on a single street.

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  Uncategorized, Financing, Real Estate And Finance 

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LA delays vote on landmark status for Marilyn Monroe’s Brentwood home – Robert Khodadadian

Will the City of Los Angeles designate Marilyn Monroe’s former home in Brentwood a landmark, staving off the wrecking ball? Its owners and the public won’t know for weeks.

The L.A. City Council has put off a vote on whether to name the house where the star of “Some Like It Hot” died at 12305 5th Helena Drive a historic cultural monument, setting the vote for June 26, the Los Angeles Daily News reported.

Councilwoman Traci Park, who represents the area, had introduced a motion in September to preserve the home when its owners sought to bulldoze it to expand their home next door.

Last month, Brinah Milstein Bank and her husband, reality TV producer Roy Bank, sued the city for their alleged right to demolish the Spanish hacienda-style home. On June 4, a judge tentatively denied their attempt.

“Following the recent court decision and pending litigation, as well as ongoing discussions between the City Attorney’s Office and the property owners, I would like to continue the item … for good cause,” said Park, who had requested the postponement.

The Banks bought the first and last home owned by the Hollywood siren in July for $8.35 million. They bought the house next door, a 6,000-square-foot dwelling at 12306 6th Helena Drive, in 2016 for $8.2 million.

But their plans to raze the 2,900-square-foot Monroe home to make room to expand their house next door created an international outcry — and an order by the city to temporarily stave off the wrecking ball.

Days after reports surfaced that the century-old home faced demolition, the L.A. City Council in September rushed through a motion to consider designating the property a historic cultural monument, a move that would invalidate the demolition permits.

In January, the city’s Cultural Heritage Commission approved the application to designate the home as a historic cultural monument. The council’s Planning and Land Use Management Committee shortly followed suit.

In a written statement to The Real Deal last month, Milstein and Bank’s attorney Peter Sheridan alleged the city had “engaged in an illegal and unconstitutional conspiracy” involving government officials and tour operators and violated the law “with regards to the quasi-judicial process required for evaluation of alleged historic cultural monuments.”

Los Angeles Superior Court Judge James Chalfant issued a tentative ruling in favor of the city, calling the Milstein-Bank motion an “ill-disguised motion to win so that they can demolish the home and eliminate the historic cultural monument issue.”

The couple would not suffer the irreparable harm they claim by being denied a preliminary injunction because the City Council will address the issue, according to Chalfant.

Monroe bought the one-story, four-bedroom home in early 1962 for $77,500 — or roughly $790,000 in 2023 dollars — after her divorce from playwright Arthur Miller. Less than six months later, the 36-year-old actress was found dead from a drug overdose in her bedroom.

The house’s front step tiles read “Cursum Perficio” — Latin for “my journey ends here.”

— Dana Bartholomew

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  Uncategorized, Celebrity Real Estate, Demolition permit, Lawsuit 

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Ace Hotel in DTLA to reopen under short-term rental brand Stile – Robert Khodadadian

The Ace Hotel in Downtown Los Angeles is reopening — with a new name. 

Aju Continuum, the U.S. branch of the South Korean firm that owns the 182-key hotel, has tapped short-term rental startup Kasa Living to operate and manage the hotel under a new brand called Stile, according to an announcement on Tuesday. 

The hotel shut down in January after operating as an Ace hotel for 10 years. 

Kasa was founded in San Francisco in 2016 as a short-term rental platform like Airbnb for underutilized hotels and apartment complexes. 

In 2020, the firm raised $30 million in a round led by Ribbit Capital, with RET Ventures, Zigg Capital, FirstMark Capital, Allegion Ventures and BoxGroup participating. 

The hotel is still available on a per-night basis, according to its website, but is also available for short-term stays through Airbnb and Vrbo. When the Ace hotel shut down, Aju had planned to turn the property into a limited-service, rooms-only operation. 

Current rates for the hotel range from $121 a night to $500 over the July 4th weekend, according to listings on Booking.com. 

Aju bought the hotel for $111 million in 2019, records show, using a $79 million loan from Hanmi Bank. 

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  Uncategorized, Ace Hotels, LA Hotel Market 

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LA leaves out 72% of the city in plan to build 457K homes by 2029 – Robert Khodadadian

Los Angeles plans to update its state-mandated plan on the location of nearly 457,000 new homes. The catch: it wants to squeeze them into just a quarter of the 469-square-mile city.

The city’s new Housing Element update leaves out 72 percent of its residential neighborhoods — or areas zoned for single-family homes, Bisnow reported. 

Now a coalition made up of dozens of housing advocates want the city to open up more single-family neighborhoods for multifamily development.

And that would be done by rezoning the city during the Housing Element update process. The city expects to hold a public hearing about the housing plan this summer at an unspecified date.

“It’s going to be complex, and I think it’s a fight worth fighting,” Tiffany Spring, public policy manager for the Southern California Association of Non-Profit Housing, told Bisnow. “We cannot solve the housing crisis, the affordable housing crisis or the homelessness crisis unless we can, at a baseline, change the way that zoning works.” 

Los Angeles has acknowledged the tension between single-family and apartment zones.

The wide split between single-family and multifamily zoning has created “clear disparities in housing access,” the city Planning Department has said, putting a velvet rope in front of areas with the highest concentrations of jobs, public transit access and top schools that keeps more affordable forms of housing out. 

But after public feedback last year and “direction” from the City Council, the Planning Department has done an about-face, according to Bisnow. 

Single-family zones are not eligible for planned affordable housing incentives, with some exceptions for projects proposed by and on land owned by religious groups.

Neighborhoods lined with houses are also left out of a transit-focused incentive package for affordable housing, the Planning Department said last fall.

In a letter to the department, the Inner City Law Center and 40 other signatories expressed concerns about the city’s plan for future housing.

Adding more incentives to commercial areas or parts of the city where apartments are already allowed won’t help the city meet its required housing goal set by the state, the letter said.

Los Angeles needs to plan for more than 456,643 new homes by 2029, according to the California Regional Housing Needs Assessment, five times as many as the 83,865 homes built from 2010 to 2019. Of that, the city must plan to build 184,721 affordable housing units for very low- and low-income households. 

By keeping single-family zones walled off to other types of housing and encouraging new apartments where they’re already allowed, Los Angeles is promoting “displacement of rent-controlled tenants while reinforcing existing segregationist patterns,” the advocates said.

It’s frustrating to see homeowners’ interests prioritized in a city where 64 percent of residents are renters, Mahdi Manji, director of public policy for the Inner City Law Center, told Bisnow.

“You’re saying the rights of these homeowners to live in a single-family home is more important than the rights of people to live in a home at all,” Manji said. 

Developers who spoke with Bisnow agreed that making more land open to multifamily projects would remove one hurdle to build more housing. But other barriers remain, including higher interest rates and construction costs, flat rents and Measure ULA, the city’s so-called mansion tax.

Building apartments is already a challenge — even where it’s allowed. At least one developer pointed to slow project approvals, pushback from neighbors and state regulations used to delay or derail development.

“I do think, sometimes, the discussion of single-family zoning versus multifamily zoning is a little bit of a red herring,” Cityview CEO Sean Burton told Bisnow. “Making more land available wouldn’t hurt, but it’s not a panacea.” 

— Dana Bartholomew

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  Uncategorized, Housing Element 

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Bardas and Bain land $300M construction loan for Hollywood studios – Robert Khodadadian

Bardas Investment Group and Bain Capital have scored a $300 million construction loan for their Echelon Studios project in Hollywood, The Real Deal has learned. 

Blue Sky Servicing, registered in Delaware, provided the three-year loan, which has a one-year extension option, for the development of 5601 West Santa Monica Boulevard, according to loan documents filed with Los Angeles County. Financial terms of the loan were not disclosed. 

The construction loan values Bardas and Bain’s debt basis on the 600,000-square-foot office and studio project at $500 a square foot. Neither Bardas nor a representative for the project responded to a request for comment. 

Bardas and Bain are planning to build 110,000 square feet of studio space and 388,000 square feet of office space, plus 12,000 square feet of restaurant space across the 5.5-acre site. It will also have 90,000 square feet of bungalows with offices, according to plans filed with the City of Los Angeles. 

In March, the Los Angeles City Council voted to greenlight plans for the site, which currently houses a 98,000-square-foot commercial building that will be demolished. Bardas and Bain started construction last month, according to an announcement, with plans to open the development in 2026. 

The project is one of many under Bardas’ Echelon studio brand in Hollywood. The firm plans to build 115,000 square feet of production space at 1200 Cahuenga Boulevard, 152,000 square feet of office at 1151 Las Palmas Avenue and more than 200,000 square feet at 6311 Romaine Street. 

Nearby, Hudson Pacific Properties plans to build a 134,000-square-foot movie studio at 6650 Romaine Street. The project stands across the street from the 369,000-square-foot Sunset Las Palmas studio complex, which Hudson Pacific bought in 2017.

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  Uncategorized, Development, Real Estate And Finance 

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Spec mansion to test Palisades market with $34M listing – Robert Khodadadian

Developer JNY Investments is hitting the market with another spec mansion, this one in Pacific Palisades with a $34 million list price.

The spec home at 538 Chautauqua Boulevard debuts in a buyers’ market.

Median sale prices of homes in the Palisades were off 37 percent to $3.3 million in April compared to a year ago, according to Redfin data. Sales for that same month slipped 17 percent to 54 properties. Homes sat on the market for a median of 64 days in April, which was up 28 days compared to a year ago.

JNY paid $6.6 million for the property in 2020 to build the spec mansion, property records show.

Construction was completed earlier this year on the home, which marketing materials describe as designed with “California modernism” in mind. It sits near the Riviera Country Club, Will Rogers State Beach and Caruso’s Palisades Village shopping center.

The 15,681-square-foot home has six bedrooms and 12 bathrooms, with 12-foot ceilings on the main level. A bar, wine tasting room, home theater, gym and massage room among other amenities make up the lower level.

The Palisades listing was anticipated, as JNY Investments President Yaniv Nehemia sharied plans for it with The Real Deal in 2022, saying he aimed to sell it for $35 million.

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At the time, JNY had just placed on the market a 21,097-square-foot home in Encino’s Royal Oaks neighborhood, which Nehemia dubbed the “Bel-Air of the Valley” in describing it to TRD. The listing price was $25 million for the spec home at 15930 Woodvale Road. The home sold last February for $17.5 million.

As for the Pacific Palisades project, Jacqueline Chernov, David Berg, Kristin Alexander and F. Ron Smith of Compass hold the listing. The seller is Nehemia, according to property records.

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  Uncategorized, Luxury Real Estate, Pacific Palisades 

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L&R pays $249 a square foot for Downtown LA parking lot  – Robert Khodadadian

A piece of land with a parking lot in Downtown Los Angeles has traded for more than some office buildings in the market on a per-square-foot basis.

L&R Group of Companies, a parking operator, bought the 2-acre block of land in Downtown Los Angeles for $20 million, or $249 a square foot, according to an announcement from Cushman & Wakefield, whose Mike Condon Jr. brokered the deal. 

An entity tied to Aron Harkham, the son of hotelier Efram Harkham, sold the 80,300-square-foot lot at 1032 Main Street, between 11th Street and Olympic Boulevard. The property is home to two buildings and a sprawling parking lot.

The Harkhams and the Aflalo family — Moshe and Laura — have been tied to the lot since 2001, records show.

Some office buildings in Downtown L.A. have traded for less than $150 a square foot in recent months, given most are struggling with vacancy and a lack of tenant interest. One building sold for just $94 per square foot.

Adam Rubin, who runs L&R, bought the AON Center at 707 Wilshire Boulevard for $134 a square foot in December, through his other firm, Carolwood. 

L&R owns Joe’s Auto Parks, Wally Park and Metro Auto Parks, and operates more than 125 facilities across nine states, according to its website. The firm is one of the largest privately owned landlords in Downtown L.A. 

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  Uncategorized, Investment Sales, Land Sales, parking lot 

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Beverly Hills brokerage looks to get ahead of NAR settlement rules – Robert Khodadadian

Michael Nourmand isn’t tossing and turning over new rules stemming from the National Association of Realtors’ lawsuit settlement.

Still, the president of the family-owned Beverly Hills brokerage Nourmand & Associates made a big move last week in what he thinks will keep the business ahead of the August rules implementation: displaying buyer agent compensation for all listings on his firm’s website.

“I want to make it easy for buyers’ agents to see what they’re getting paid,” Nourmand said. “They don’t have to ask the question. It will save my agents time because they don’t have to answer that question.”

He also sees the website update as a potential traffic driver. He explained that “we’re in an attention economy” where more clicks can translate to web monetization for the nearly 50-year-old firm, which also counts offices in Brentwood and Hollywood.

As of Aug. 17, brokers will no longer be able to negotiate buyer agent commissions through the MLS. Buyers will also be required to sign agreements with their agents before they begin working together.

The new rules are the result of the $418 million settlement reached in a class action lawsuit against NAR that’s led to uncertainty for some. For Nourmand, he doesn’t see much changing. Instead, he thinks talk of an industry shakeup around commissions has been driven by a one-sided view.

He cited a recent hotsheet of single-family homes running from roughly Echo Park to Pacific Palisades as an example. Out of 112 listings, one did not offer buyer compensation. Nourmand sees this trend continuing post-Aug. 17.

“All of the [settlement headlines] were ‘This is the end of real estate agents,’ ‘They’re all going to be out of the business,’ ‘The compression is going to be unbearable,’ ‘The fee structure in all these other countries is so low,’” he said. “And my whole thing was like, wait, wait, wait, hold on. You’re telling me people in L.A. didn’t know that they could negotiate their fees?”

Negotiations have been part of the homebuying process in the past and will continue post-rule implementation in a market where Nourmand argued many buyers in the higher price segment  have long had access to financial advisors, business managers, lawyers and other resources to know their options about commission negotiations.

He went on to add the mushrooming of reality TV shows focused on residential real estate agents can be partly to blame for some of the negative perceptions or misconceptions placed on the profession.

“America sees four agents that are getting a lot of promotion on TV and eating at fancy restaurants, driving expensive cars and it’s truncating the process,” he said. “I’m trying to get a listing right now. I’ve been talking to this lady for over a year. They don’t show that on reality TV.”

Nourmand would agree the industry appearance of glamor on reality shows isn’t necessarily a bad effect. However, these shows offer the experiences of the 1 percent, he said.

“The flip side of it is that [viewers] think we’re a bunch of overcompensated [people], living the life, eating at expensive restaurants, flying on private jets with clients,” he said. “The truth is most agents are grinding it out in the U.S. making $50,000 or $60,000 a year trying to make ends meet.”

If anything, networks and streaming services will at least have a new villain to cast in future seasons, Nourmand suggested.

“This NAR settlement has primetime TV written all over it,” he said. The consumer is dying to hear all of the rough conversations that are going to happen over the NAR settlement. They’re already filming, I’m sure, sellers saying, ‘I’m not paying an agent,’ ‘I’m not doing this,’ ‘I’m not doing that.’ And I think Bravo is going to give exactly what the consumer wants on TV.” 

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  Uncategorized, NAR, Residential 

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Decron Properties Acquires San Diego Shopping Center for $99M – Robert Khodadadian

Los Angeles-based Decron Properties has expanded its San Diego portfolio with the $99 million acquisition of Mira Mesa Market West Shopping Center from Stockbridge Capital Group, Decron said on June 6.

The 238,747-square-foot retail center, situated at 10604 Westview Parkway at Mira Mesa Boulevard, counts Home Depot, Smart & Final and CVS among its tenants. Established in 2000, the shopping center is a significant retail hub in the Mira Mesa market.

“We saw this as an opportunity to add a marquee retail asset to our growing San Diego portfolio,” said Decron CEO David Nagel in a statement cited by the Los Angeles Times. “Only a few years ago, it was assumed that brick-and-mortar retail would be taken over by e-commerce. While there is still strong demand for online shopping, we are seeing a rise in people still wanting the in-store experience.”

The purchase included assuming existing financing from New York Life Insurance, featuring a favorable 3.5 percent fixed interest rate for the remaining loan term. 

Over the past year, the 20-acre property recorded 6.9 million visits, underscoring its popularity. Other tenants include Dave’s Hot Chicken, Rubio’s Baja Grill, Starbucks, Jersey Mike’s, Verizon Wireless, PNC and Lazy Dog Restaurant.

This acquisition marks Decron’s second major investment in the San Diego market within six months. In December, the firm purchased Margo at The Society, a 240-unit multifamily development at 201 Del Sol Drive near Hotel Circle, for $125.5 million.

This latest Mira Mesa transaction follows Decron’s recent strategy to exit the Los Angeles market, where it has sold properties for a total of $212 million. The firm cited restrictive legislative measures like the ULA tax and rent control as key factors. CEO David Nagel emphasized the difficulty in raising rents and the impact of new transfer taxes, leading the firm to refocus its investments in less-regulated markets.

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  Uncategorized, Retail, San Diego 

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Former Fox lawyer Viet Dinh negotiates $25M deal for Palisades home – Robert Khodadadian

Former Fox executive Viet Dinh didn’t have to travel far to get to his new Pacific Palisades home.

The property at 14330 West Sunset Boulevard is about two miles from the Brentwood mansion Dinh and his wife reportedly sold to rapper Drake. The couple paid $25.4 million for the Hamptons-inspired home in the Palisades’ Rustic Canyon neighborhood, property records show.

The seller was an LLC tied to Damon Porter, according to property records. Porter is the CEO of Los Angeles developer Dynamic Real Estate Partners.

Gary Glass of Christie’s AKG and H. Blair Chang of The Agency represented the seller. Carolwood Estates’ Drew Fenton and Berkshire Hathaway HomeServices California Properties’ Lauren Ravitz represented the buyer. 

The 15,100-square-foot home originally listed for $34.5 million last year before a series of price reductions, according to Zillow. The sale price is 26 percent less than the original ask. That’s in line with broader trends in the Palisades housing market, where prices fell 36.5 percent in April compared to a year ago to a median of $3.3 million, according to Redfin.

Homes in the affluent Los Angeles neighborhood are also staying on the market longer — an average of 64 days in April, while last year it was 36 days.

Dinh and his wife Jennifer Ashworth Dinh now own a seven-bedroom, 13-bathroom home complete with screening room, wine cellar and gym. Sycamore trees mark the landscape outdoors, where the grounds feature a pool and jacuzzi.

Their former home at 1707 Westridge Road in Brentwood’s Mandeville Canyon totaled 16,200 square feet. The mansion sold for more than $40 million in an off-market deal, with the Wall Street Journal reporting Drake as the buyer.

Viet Dinh previously served as Fox’s chief legal and policy officer before stepping down to a special advisor role at the end of 2023. The legal executive most recently handled the company defense in Dominion Voting Systems’ lawsuit against Fox News, resulting in a $787 million settlement reached last year.

Fox paid $23 million to Dinh in severance and equity awards, according to a Securities & Exchange Commission filing. His time as special advisor lasts for two years, with an annual pay of $2.5 million.

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  Uncategorized, Los Angeles, Luxury Real Estate, Pacific Palisades 

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Erewhon owners emerge as buyers of $23M Bel-Air mansion – Robert Khodadadian

Add a Bel-Air estate to the growing Southern California real estate portfolio of Erewhon owners Anthony and Josephine Antoci.

The couple behind the ritzy organic and wellness grocer paid $22.5 million for the mansion at 755 Sarbonne Road, property records show. The Real Deal reported on the deal’s closing last month, when the buyer’s identity was unknown.

The Bel-Air purchase came on the heels of the Antocis’ $15.5 million sale of 31228 Broad Beach Road in Malibu. They still have a footprint on the street, with a nearby home they paid $20 million for in September. There’s also a Brentwood property they acquired in 2018 from the late Betty Warner, daughter of Warner Bros. Pictures’ Harry Warner, for $13.7 million. 

Chatter about the Sarbonne Road home had amplified in the years before the Antocis’ purchase.

The Department of Justice attempted to seize the Bel-Air estate, alleging it was bought with money from a bribery scheme tied to Nigerian businessman Kolawole Aluko, according to court documents filed in Texas district court.

Thomas Flohr, the founder and chair of private jet company VistaJet, became the home’s owner to reportedly settle a debt with Aluko. The trade ultimately placed Flohr, a Swiss billionaire, in the hot seat as the DOJ attempted to seize the property. 

Flohr ultimately settled with the government in 2022, paying $16 million to stave off the seizure and denied any wrongdoing, according to court documents. He listed the property that same year for $63 million.

For the Antocis, the expanding real estate footprint parallels Erewhon’s own rapid growth.

The grocer is frequented by a number of celebrities and has built a following just as much for its eyebrow-raising prices as its organic and all natural product selection. A full membership runs $200 annually, while smoothie collaborations generate social media buzz, with the latest creation a $23 peaches and cream drink by Kendall Jenner.

Erewhon, an anagram of the Samuel Butler novel “Nowhere,” received an undisclosed investment from New York private equity and venture capital firm Stripes in 2019.   

Earlier this year Erewhon paid $12.4 million for a site previously occupied by Virgil’s Hardware Home Center in Glendale, with plans to open its 11th store on the site late next year. The owner-user strategy marks a departure from the chain’s usual MO of locating in established retail centers.

Read more

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  Uncategorized, Bel Air, Erewhon, Luxury Real Estate 

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Federal Realty sells Third Street Promenade storefronts for $103M – Robert Khodadadian

Federal Realty Investment Trust has cashed out of Santa Monica’s Third Street Promenade. 

The Bethesda, Maryland-based real estate investment trust has sold eight buildings on Third Street Promenade, just a quarter-mile from the beach, for $103 million, the firm announced on Thursday. 

The sale for the eight buildings, which total 185,000 square feet, came out to $556 per square foot. The buyer of the portfolio was not disclosed and the deal has not yet hit property records.

With the deal, Federal Realty is left with nothing on the promenade, ending a more than two-decade streak of ownership. The REIT bought its first building on the strip in 1996, according to financial filings. 

In December, Federal Realty offloaded a 12,300-square-foot store, leased to Dodgers Clubhouse, a merchandise store dedicated to the Los Angeles baseball team, for $17.2 million, records show. Pasadena-based Global Mutual Properties bought the building. 

The Third Street Promenade cost Federal Realty about $29 million between 1996 and 2000, according to an annual filing. The development was part of a push by the city to lure Santa Moncia residents to its Downtown. 

“The promenade turned Santa Monica into a community with both a beach and a quality urban environment,” Denny Zane, an activist involved in the creation of the development, told the Los Angeles Times in 2014. 

But after the pandemic hit in-store retail sales, many retailers, including Banana Republic and Old Navy, decided to cut their Third Street Promenade spaces. 

About a quarter of the Third Street Promenade is available for lease, according to SFGate, with 72 of the 97 of the ground-floor storestrongs occupied.

Most of the vacancy lies within the 1200 block of the promenade, where a number of Federal Realty’s properties sat. 

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  Uncategorized, Investment Sales 

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Feds put “ziggurat building” back on auction block in Laguna Niguel  – Robert Khodadadian

Uncle Sam is once again putting the Brutalist office pyramid known as the Ziggurat up for auction in Laguna Niguel, this time without a requirement to preserve it.

The General Services Administration said it would accept bids starting at $70 million for the seven-story, 1 million-square-foot Chet Holifield Federal Building at 24000 Avila Road, the Orange County Register reported.

The bidding opened at midday Monday and closes at 9 a.m. July 31. Any broker who brings the highest bidder will receive a finder’s fee.

By late afternoon on Wednesday, the highest bid was more than $125 million.

“We’re excited about potentially developing the property and having a successful bidder,” Laguna Niguel City Manager Tammy LeTourneau told the Register, adding that the City Council would work with a new developer on a design proposal.

The federal government has tried for years to sell the 53-year-old concrete building designed by William Pereira that resembles a Ziggurat, an ancient stepped pyramid in Mesopotamia. 

The federal agency tried to sell the building at auction in late 2022, with a starting price of $70 million. However, by its close in April of last year, no bidders stepped up for the auction.

The auction rules stipulated that any buyer would have had to create a “preservation easement” for 26 acres that included the terraced building, two guard stations, a driveway and 4,800 parking slots.There was also a mandate to lease a portion back to the federal government.

Those conditions are no longer required as part of the deal, “so a purchaser may consider a wider range of redevelopment options in working with the local community and stakeholders,” Mary Simms, a spokeswoman for GSA, told the Register.

Ryan Harman, a broker with Lee & Associates Irvine, said the removal of the stipulations is “huge.”

“If you don’t have to preserve that structure, you can raze it and start fresh,” Harman told the Register. “And you don’t have to lease back to the government. That has opened the gate to take this site seriously.”

Harman also pointed to a study by the Urban Land Institute last year that recommended what the City of Laguna Niguel should do with the 91-acre property, such as accommodating between 2,000 and 4,000 homes, with a density of 60 to 80 units per acre. 

“I think they’ll have bids north of $100 [million] to $130 million,” Harman said.

The Brutalistic building, completed in 1971 for North American Aviation, has historic importance in its resemblance to “the ancient ziggurats,” according to the GSA.

For decades, the building housed thousands of federal employees from up to 12 agencies, including about 2,000 from the U.S. Citizenship and Immigration Services. For the past several years, it has only been about half full, according to the Register.

Pereira, who died in 1985, designed hundreds of Modernist projects, including the “Theme Building” at Los Angeles International Airport, CBS Television City in Fairfax, the USC master plan in Exposition Park, the Transamerica Pyramid in San Francisco and the Disneyland Hotel.

He also designed the master plan for the city of Irvine and the UC Irvine campus, as well as a Ford Aerospace headquarters in Newport Beach later replaced by homes.

— Dana Bartholomew

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  Uncategorized, Ziggurat 

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SoCal lawmaker hits pause on repeal of voter OK for public housing – Robert Khodadadian

A Santa Monica lawmaker wants to pull a measure that would repeal a 74-year-old constitutional rule that hampers public housing.

State Sen. Ben Allen, D-Santa Monica, author of the repeal measure for Article 34 in the state’s constitution, plans to withdraw it from the November ballot, the Los Angeles Times reported.

He said the election was too crowded with expensive tax, housing, bond and public safety campaigns to give the measure a chance to succeed.

“We always knew that under the right circumstances and with a quieter election, we could do a lot of voter education and make the case for repeal,” Allen told the Times. “But it just doesn’t feel like the right time.”

Allen has requested his colleagues formally remove the repeal from the ballot prior to a June 27 deadline.

The withdrawal ends an immediate effort by Allen and advocates of low-income housing to erase “a stain” on the state Constitution. Article 34 requires the approval of local voters before public housing can be built. 

Article 34 was approved by a voter initiative in 1950 during a time of racial discrimination in the housing market supported by the California Real Estate Association, now the California Association of Realtors. The Realtor group has apologized for its role.

Decades after its passage, Article 34 stymied the construction of low-income housing in California, while continuing to add to its cost and uncertainty. 

No other state has a similar provision in its constitution.

The most direct effects of Article 34 have ebbed, according to the Times. Low-income housing developments now are mostly funded through federal and state tax-credit programs, which don’t automatically trigger public votes.

Courts have also ruled that cities can meet the requirements under Article 34 by having elections to allow an overall number of public housing units to be built in future years, rather than holding a vote for every project.

But it remains costly and time consuming for affordable housing developers to structure deals to avoid a vote under Article 34 — and local governments still have to put proposals on the ballot. 

In 2022, L.A. voters approved Measure LH, a move required by Article 34 to authorize up to 75,000 units of low-income housing citywide. 

State lawmakers have asked voters three times to repeal or weaken Article 34. All three, the last of which occurred in 1993, failed by large margins.

Analysts have said that attempts to remove Article 34 face an uphill battle, having to convince voters to abandon the local decision-making required by the provision and overcome general sentiments against public housing.

In 2022, state lawmakers agreed to put a repeal measure on the 2024 ballot, which Allen said would allow sufficient time to build a coalition to fund the campaign.

Allen said that the repeal had broad support, including from Republicans, but competing issues took precedence.

“Everybody wants to get it repealed, but it’s tough to make it so that it’s anyone’s No. 1 priority,” he told the newspaper.

— Dana Bartholomew

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  Uncategorized, article 34 

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Co-owner of Newport Beach investment firm gets probation for $14M real estate scam – Robert Khodadadian

The co-owner of a Newport Beach-based investment firm who bilked investors out of nearly $14 million through bogus real estate deals will walk free without a day in prison.

Louis Zimmerle, 64, a co-owner of BNZ Capital, was sentenced to five years probation after pleading guilty last fall of one count of wire fraud in connection to the real estate scheme, the Orange County Register reported.

In addition to probation, Zimmerle, who is from Sacramento, was ordered to pay back $684,500 to victims of the scheme.

Federal investigators said Zimmerle’s $13.8 million scheme had promised investors returns of up to 10 percent for money they sank into what Zimmerle and co-conspirator Brett Barber, of Costa Mesa, said were real estate projects they bought and sold. 

Except the projects did not exist.

BNZ Capital “did not take any substantial steps to develop parcels, nor did BNZ flip real estate for a profit,” according to the U.S. Attorney’s Office for the Central District of California.

“Rather, BNZ primarily used investor funds to pay Barber, Zimmerle and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived,” officials said in a statement. “Some of the investors’ money was used to repay earlier investors.”

In a criminal complaint filed last year, investigators outlined how they say Barber, 44, of Costa Mesa tricked victims into giving him money.

In October 2021, Barber told an FBI agent posing as a potential investor that one of his firms, National American Capital, had “been in business for 20 years” and “that it owned parcels of land in Laguna Beach” to be developed.

Barber told the undercover FBI agent that NAC also owned property in Newport Beach that would be developed with four condominiums, officials said.

None of those claims was true.

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Barber pleaded guilty last year to two counts of wire fraud and one count of criminal contempt. He faces 20 years in prison for each count of wire fraud, according to the U.S. Attorney’s Office, plus life in prison for the count of criminal contempt.

Both men still face a civil lawsuit by the U.S. Securities and Exchange Commission. 

— Dana Bartholomew

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  Uncategorized, Lawsuits, Real Estate And Finance 

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Saman Kerendian’s Kian Investment lands $24M loan for 136 affordable units in Koreatown – Robert Khodadadian

Kian Investment has scored $24.4 million in financing to build a 136-unit affordable housing complex in Koreatown.

The entity controlled by West Los Angeles-based Keren Management and led by Saman Kerendian landed the loan to build the seven-story building at 926-938 South Kingsley Drive, the Commercial Observer reported. 

The developer will bulldoze two California bungalows built in 1912 at the northeast corner of Kingsley and San Marino Street.

Kian obtained the $24.4 million, 30-month loan from Culver City-based nonprofit Century Housing, which comes with optional extensions and an interest rate equal to the secured overnight financing rate plus 2.41 percent. 

As of June 4, SOFR was 5.33 percent, meaning the loan currently has a rate of 7.74 percent. 

This month, Kerendian plans to break ground this month on the 72,800-square-foot building, which will have 136 studio and one-bedroom apartments for households earning 80 percent of area median income.

Initial plans filed in 2021 called for a 110,000-square-foot building with 89 apartments, according to What Now Los Angeles.

Kian employed Mayor Karen Bass’s Executive Directive 1, which fast-tracks the approval and permitting for 100-percent affordable housing projects to speed up affordable housing development.

Brokers Jonathan Lee, Shahin Yazdi, William Hyatt and Tommy Adelson of the Structured Finance Group at Colliers Mortgage arranged the financing.

“Since ED 1 is a relatively new initiative, many lenders have not yet fully evaluated the product to offer competitive terms,” Lee said in a statement. “Throughout this process, several banks considered ED 1 to be ‘too early,’ or offered terms in the 50-60 percent [loan-to-cost] range.

“Ultimately, we found a lender who understood the program and provided competitive terms and leverage.”

— Dana Bartholomew

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  Uncategorized, Affordable Housing, ED1 

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Judge approves emergency loan to fix erosion at bankrupt Mohamed Hadid property – Robert Khodadadian

364 Capital LLC, a Naples, Florida-based firm specializing in bankruptcy restructuring and DIP financing run by Renzo Renzi, has offered a $1.1 million loan to a Hadid-controlled entity called Tree Lane LLC to help address slope erosion issues and engage professionals to help Hadid through bankruptcy on his Beverly Hills property. 

Hadid filed for bankruptcy in April on a lot located at 2451 Summitridge Drive, a four-acre vacant lot that needed “emergency” attention, due to erosion issues. The spec developer owed $54.6 million to creditors, according to the bankruptcy filing. The entity’s interest in the property is worth about $35 million, the filing said. 

California Bankruptcy Court Judge Sheri Bluebond approved the loan on May 29, which will serve as interim emergency financing, according to a court order. Renzi declined to comment, while Hadid could not be reached for comment. 

The loan has a floating interest rate equal to secured overnight financing rate plus 9 percent. As of June 4, SOFR was at 5.3 percent, meaning the interest rate is currently at around 14 percent, according to a source familiar with the transaction.

The debtor-in-possession financing, which is a type of loan given to companies under Chapter 11 bankruptcy protection, will go towards paying for contractor and engineering services to address erosion at the site. 

Hadid originally sought a total of $7.7 million in DIP financing, according to the court document.The court will consider approval of the remaining balance of the financing at a hearing on June 13.

Renzi’s 364 Capital has previously stepped in with similar financing for Hadid’s other properties. 

In 2022, the firm provided a $6.5 million loan for a Hadid-associated entity called Treetop Development LLC, also to help fix erosion issues at another Beverly Hills property at 9650 Cedarbrook Drive in Beverly Hills.

Hadid has blamed the lender on the property for his financial difficulties, according to a recent interview with the New York Post.

“They gave us enough money to hang ourselves and then they stopped funding,” Hadid told the Post, referring to real estate developer Zach Vella and his firm Skylark Capital, which provided a $31 million loan to his Tree Lane LLC in 2018. 

“I believe I was a victim and now I have to fight my fight,” he said.

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  Uncategorized, Bankruptcy, DIP Financing, Real Estate And Finance, spec home development 

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Sherlock Holmes editor sues in case of the missing property deal – Robert Khodadadian

A dispute over the closing of a Brentwood home sale sounds like a case fit for Sherlock Holmes.

An LLC managed by California lawyer and crime and horror literary editor Leslie Klinger is suing the owners of a Brentwood home under construction, alleging they refuse to close escrow on the $14 million sale. The property at the center of the dispute is located at 306 North Cliffwood Avenue. 

Klinger is a name partner and co-founder of law firm Kopple Klinger & Elbaz LLP, specializing in family wealth planning, trust and estate administration and business transactions. Outside of his day job, he has made a name for himself as an editor and annotator of Sherlock Holmes stories, Dracula, Frankenstein and other classic fiction works.

According to the complaint, Klinger’s LLC agreed to buy 306 North Cliffwood for $14 million in December, but the sellers won’t go through with the deal, resulting in a breach of contract. Cliffwood Development Partners LLC and BB Developers LLC are named as defendants in the lawsuit filed last week in Los Angeles Superior Court.

“Defendants repudiated the sale of the subject property to plaintiff and refuse to complete the sale,” the lawsuit alleges.

Klinger is asking the court to enforce the sale, along with unspecified monetary damages or a reduction in the purchase price equivalent to those damages.

Originally, the deal was expected to close Jan. 29, according to the lawsuit. Loan, appraisal and all other buyer contingencies were removed. But the closing never happened.

Attorneys for the LLC Klinger manages made another attempt to close on the sale, with a demand letter sent March 8. Close of escrow was later extended to April 3, according to court documents.

A second demand to close on April 2 did nothing to reverse the stalled sale.

Jane Gavens, a Compass agent listed as the buyer and seller’s representative on the purchase agreement submitted to the court, declined comment when reached by TRD.

Klinger declined comment through a representative of his law firm, while an attorney representing the buyer did not respond to requests for comment.

The under-construction property was being sold as is, with the sale agreement indicating about 90 percent of construction work complete and a specific clause stating “buyer is not purchasing a completed dwelling.” Public records indicate the owners were delinquent on back taxes for the most recent tax roll year ending June 30.  

About a year ago, real estate transactions website Traded reported a $1.5 million loan secured for the home by one of the defendants, Cliffwood Development Partners. The five-month note was at an 8.95 percent interest rate from Logan Investments for construction work. Logan Investments broker Ron Sentchuk declined to answer questions about the loan when reached by phone.

Traded indicated the $1.5 million note was a second trust deed, secured using the property as collateral, and sat behind a $12 million construction loan.

Details of who is behind the ownership of the defendants and sellers Cliffwood Development Partners LLC and BB Developers LLC are murky.

The lawsuit said as much when attorneys informed the court the complaint would be updated “when the true names and capacities of such defendants are ascertained.”  

The two defendants owned the 306 North Cliffwood property as tenants in common, according to the complaint.

State records show Logan Beitler as the agent for both defendants. Their principal addresses match that of Brentwood-based commercial real estate firm Beitler Commercial Realty Services, where Beitler is listed as an agent.

Neither Beitler or Beitler Commercial Realty are named as defendants in the lawsuit. Beitler did not respond to requests for comment.

Beitler Commercial bills itself as a provider of Southern California lease, sale and market research services. It lists on its website Sony, DreamWorks, Warner Bros. and The Walt Disney Company among its clients. The company also counts offices in Encino, Irvine, San Rafael and Westlake Village.

A case management conference for the dispute is scheduled for October.

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  Uncategorized, Brentwood, Residential Real Estate 

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Simon and Macerich halt Carson mall project, slam city for “wasting” $100M – Robert Khodadadian

Simon Property Group and Macerich have halted their outlet mall project in the city of Carson, slamming the city “wasting” $100 million and failing to come to a solution to move the project out of litigation. 

The publicly traded companies have been embroiled in litigation over the project, which sits within a 157-acre former landfill in the city of Carson, since 2018, when the firms signed an agreement with the city to build the outlet mall. 

Simon and Macerich struck a deal in 2022 to push the project forward, under which Simon and Macerich agreed to pay for the cleanup costs. 

But the city, and the Carson Reclamation Authority, which was tasked with acquiring the site and overseeing its cleanup, failed to reinstate the agreement unless the developers came up with more money, according to a letter sent by a representative for the developers. 

“The City of Carson and Carson Reclamation Authority have continually failed to meet their obligations, which caused us to terminate our pursuit of the project which was otherwise fully funded and had tremendous retailer demand,” the representative, Mark Silverstri, said in the letter.

The developers would not pay for carrying costs for the CRA as a condition of reinstating the agreement, according to the letter. 

Simon and Macerich are now planning to resume litigation against the city and the CRA. 

“We are deeply disappointed that the city and the CRA have squandered the opportunity to develop a world-class retail center on this long-underutilized property, and wasted well over $100 million of its taxpayers’ money,” a spokesperson for the project said in an email. 

The city did not respond to a request for comment.

Simon and Macerich have previously alleged that the city of Carson and the CRA “failed to employ a project management and financial control process sufficient for a project of this magnitude,” according to a 2020 complaint filed with Los Angeles Superior Court. 

If the city could not complete the necessary remediation work and associated infrastructure, “the project would not be economically feasible,” according to the developers.

The developers agreed to pay certain advances — totaling tens of millions of dollars — after the city agreed to reimburse the project through sales tax revenues. 

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  Uncategorized, Lawsuits 

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Rubio’s shutters 48 California restaurants, blames business climate  – Robert Khodadadian

The bankrupt Rubio’s Coastal Grill has closed dozens of restaurants across the Golden State, mostly in Southern California. 

The Carlsbad-based chain known for its fish tacos said it shuttered 48 grills by the end of last month, blaming the state’s business climate, the Torrance Daily Breeze reported.

Company officials said 37 of the closures were in SoCal, with 11 in Northern California. That leaves 86 Rubio’s restaurants still open in California, Arizona and Nevada

“Rubio’s … after a thorough review of its operations and the current business climate, has decided to close 48 underperforming locations in California as of May 31,” the company said in a statement. “The closings were brought about by the rising cost of doing business in California.”

While Rubio’s declined to disclose the locations of its boarded up grills, a Reddit user pinpointed the closure of 25 restaurants in Los Angeles and Orange Counties. 

The shuttered stores include locations in Adelanto, Anaheim Hills, Brea, Cerritos, Eastvale, Fountain Valley, Fullerton, Huntington Beach (Beach Boulevard), La Habra, Lake Forest, Lakewood, Long Beach, Marina Del Rey, Ontario, Orange (North Tustin Street), Oxnard, Pasadena, Placentia, Rancho Santa Margarita, Santa Ana (17th Street), Santa Clarita, Seal Beach, Tustin, Ventura and Whittier. 

Another 12 closed in San Diego County. Restaurants in Monrovia and Walnut closed before the June 1 weekend.

Rubio’s was acquired by Connecticut-based Mill Road Capital in 2010 for $91 million, then taken private. In October 2020, the firm filed for bankruptcy protection and has been closing restaurants since.

Four years ago, the firm once known as Rubio’s Baja Grill had 167 restaurants in Arizona, Nevada and California. 

In June 2020, Rubio’s defaulted on some of its debt after pandemic-related shutdowns put a dent in sales, according to Bloomberg. The same year, it closed 26 underperforming stores in California, Arizona, Colorado and Florida.

But the chain was already hurt by competition, increased labor costs and an expansion that failed to thrive in new markets, court papers showed.

In April, the state enacted Assembly Bill 1228, mandating fast-food chains with more than 60 units nationwide to pay their workers a minimum hourly wage of $20. The law affects restaurants that are part of a national chain offering limited or no table service.

The new law hasn’t kept the remaining Rubio’s from closing.

In January, Rubio’s hired Hilco Real Estate, an advisory firm that helps companies in bankruptcy shed assets, especially leases. 

A year earlier, the chain had celebrated its launch in 1983, when co-founder Ralph Rubio discovered a love for fish tacos during a trip to San Felipe on the Sea of Cortez in Baja California, Mexico.

“We would camp on the beach, eat fish tacos in town and drink Coronas. And that was my first exposure. It was very much a Baja thing,” Rubio told the Breeze last year. 

— Dana Bartholomew

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Venice “beautifier” plans to replace DMV in Pacoima with apartments – Robert Khodadadian

Developer J. Kevin Brunk, the “unofficial beautifier” of Venice, has set his sights on replacing a defunct DMV in Pacoima with 246 apartments atop a grocery store.

The head of Marina del Rey-based 118 LP has filed plans to tear down the state Department of Motor Vehicles licensing center and build the mixed-use complex at 11623 North Glenoaks Boulevard, Urbanize Los Angeles reported.

The DMV closed last year north of the 118 Freeway because of a shrinking state budget and the ease of providing services online.

Plans call for bulldozing the 20,000-square-foot building and replacing it with a six-story, 246-unit complex on two-thirds of an acre south of the city of San Fernando.

The building would include studio, one-, two- and three-bedroom apartments above a 28,000-square-foot grocery store, with parking for 320 cars.

Brunk, who also heads JKB Construction, Management and Development out of the same Marina del Rey office, has requested density bonus incentives to build a larger building than zoning rules allow in exchange for 28 affordable units.

The white complex, designed by Koreatown-based Archeon Group, would include mission-style motifs such as an arched colonnade and large arches etched into the building, a presumed nod to the nearby Mission San Fernando Rey de España.

The complex, which would be stepped down at the rear next to a single-family neighborhood, would include a playground, yoga area, picnic ground and barbecue area.

Brunk, a builder and artist who lives in Marina del Rey, helped turn what was once Washington Boulevard in Venice from a funky strip for artists and surfers in the 1980s into the hotspot now known as Abbot Kinney Boulevard, according to a profile in The Corsair.

Dubbed the “unofficial beautifier” of Venice, Brunk planted palm trees, revived the Abbot Kinney Festival and led a campaign to rename the corridor in honor of the founder of Venice, Abbot Kinney.

— Dana Bartholomew

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Former Dodger Jimmy Rollins trades Encino mansion for $9M – Robert Khodadadian

Former Phillies and Dodgers shortstop Jimmy Rollins found a buyer for his modern Encino mansion. 

An undisclosed party paid $9 million for the property at 4111 Valley Meadow Road in Encino’s Royal Oaks gated community in L.A.’s San Fernando Valley, according to listing sites. 

Carl Gambino of Compass’ Gambino Group, along with Matt Altman and Josh Altman of Douglas Elliman, represented the seller. Sigal Diamant of Nelson Shelton & Associates Real Estate represented the buyer. 

4111 Valley Meadow Road (Ryan Lahiff)

Diamant declined to provide details on the buyer. 

Sales of more than $5 million are subject to a 4 percent transfer tax for sellers under Los Angeles’ Measure ULA, which equates to $40,500 in this deal.

Rollins, nicknamed “J-Roll” in his playing days, first placed the property on the market in 2022, listing it for $11.8 million. He paid $8.7 million for the luxe pad in 2018, when it was new.

4111 Valley Meadow Road (Ryan Lahiff)

The Valley Meadow property has a seven-bedroom main house, in addition to a guest home with a total of 10,419 square feet. The compound sits on about half an acre, set behind hedges.

Designed with gatherings in mind, a roughly 3,000-square-foot rooftop lounge offers a bar, entertainment system and views of the San Fernando Valley.

Rollins made his Major League Baseball debut in 2000 for the Philadelphia Phillies. He stayed on with the team for 14 years, with a 2008 World Series win over the Tampa Bay Rays among his career highlights. Rollins later played on the Los Angeles Dodgers for the 2015 season.

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He won the Most Valuable Player award for the National League in 2007.

Elsewhere in Encino’s Royal Oaks, rapper LL Cool J is asking for nearly $6 million on his 15641 Meadowgate Road home.

The property spans 6,000 square feet with four bedrooms, a heated spa and a pool house. Coldwell Banker Realty’s Deborah Bremner has the listing.

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  Uncategorized, Celebrity Real Estate, Encino, Luxury Real Estate 

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Gwyneth Paltrow puts Brentwood home up for sale at $30M – Robert Khodadadian

Gwyneth Paltrow is selling her 8,000-square-foot home in Brentwood’s Lower Mandeville Canyon for $29.99 million.

The Academy Award-winning actress in “Shakespeare in Love” and “The Talented Mr. Ripley” has listed the single-story house at 1701 Westridge Road, the Wall Street Journal reported.

The CEO of Goop and her ex-husband, Chris Martin, bought the house in 2012 for $9.95 million.

The white H-shaped home, built in 1950 on two-thirds of an acre, received a ground-up renovation in 2009.

The seven-bedroom, six-bathroom estate sits behind tall hedges and mature trees on Westridge and Mandeville Canyon Road.

Two years ago, Paltrow added a one-bedroom guesthouse with a wine cellar, office, gym, game room and movie theater, according to the WSJ. There’s an apartment above the garage. 

Paltrow, author of several cookbooks, spent hours in the kitchen equipped with double cooktops and ranges, plus a wood-burning oven.

The listing is held by Lea Porter of the Beverly Hills Estates.

Paltrow has two children with Martin. When she married writer-producer Brad Falchuk in 2018, he moved into the house with his two kids, and it became a home for their blended family, Porter told the newspaper.

She said Paltrow is selling because her children have grown up and she just finished building a new home in Montecito. The couple, whose children are college-age, want to downsize in Los Angeles and will split their time between L.A., Montecito and a home in Amagansett, N.Y.

This month, rapper Kendrick Lamar paid $40 million for the Farmhouse-style estate next door to Paltrow’s at 1707 Westridge Road.

Luxury sales have slowed in Los Angeles, however, since Measure ULA, a property tax on large real estate transactions, was enacted a year ago.

In the first quarter, the number of luxury single-family sales in Los Angeles dropped 19.6 percent year over year, while the median sale price fell 10.5 percent during the same period, according to Miller Samuel, a real estate appraisal firm.

— Dana Bartholomew

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  Uncategorized, Celeb Real Estate 

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Office-home conversions lead adaptive reuse projects in California – Robert Khodadadian

Office-to-home conversions now dominate adaptive reuse projects across the Golden State, with Los Angeles poised to become the nation’s top commercial-to-residential conversion hotspot.

Of the state’s nearly 14,000 commercial-to-apartment projects last year, 31 percent turned offices into homes, the Commercial Observer reported, citing Rentcafe’s annual Adaptive Reuse Report, which crunches figures from Yardi Matrix.

Developers are now converting underused offices into 4,306 apartments for local residents.

At the same time, hotel-to-home conversions run second, followed by healthcare, retail and a miscellaneous category of warehouses, factories and religious building conversions.

Last year, hotel conversions resulted in 3,752 apartments, for a 21 percent share of state  adaptive reuse projects. That was followed by 2,358 healthcare-to-home conversions, taking up a 17 percent share, and 1,540 retail-to-home conversions, an 11 percent share.

Yardi Matrix’s Doug Ressler (Multifamily Leadership)

Miscellaneous projects, including warehouses, factories and religious buildings, rounded off the state’s remaining 14 percent.

“Overall, the movement towards repurposing unused commercial spaces into residential units is a significant trend in California’s real estate landscape, driven by the need for more housing and the changing dynamics of workspaces post-pandemic,” Doug Ressler, manager of business intelligence at Yardi Matrix, told the Observer in an email.

Nationwide, hotel-to-residential projects are at an all-time national high, according to the Rentcafe report, with 4,556 apartments converted from buildings last year. Developers from coast to coast specifically turned 3,587 offices into homes.

In California, adaptive reuse projects boomed in 2019 and 2020, then slowed in 2021 and 2022, according to the report. They ticked up last year, with 17.6 percent more apartments than in 2022.  

Los Angeles is now poised to become the national frontrunner in commercial-to-residential conversions because of an expanded Adaptive Reuse Ordinance. 

Los Angeles County could add up to 113,000 residential units by converting 2,300 underused hotels, offices and other commercial buildings, according to a RAND study. 

Last year, the city of Los Angeles created only 182 converted apartments, adapted from three military buildings. But the report lists L.A. as No. 1 in a list of top 20 cities for future apartment conversions, with 5,881 units in the pipeline.

Fewer than 2,000 of those, however, will result from offices. The nature of the city’s remaining adaptive reuse projects is unclear. 

Among the leading developers for conversions is Koreatown-based Jamison Services, which this year filed plans to convert the 19-story Los Angeles Superior Court Tower into 428 homes at 600 South Commonwealth Avenue.

— Dana Bartholomew

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  Uncategorized, Hotel-to-home conversions, office-to-home conversions 

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Value of Gas Company Tower in DTLA drops another 21% – Robert Khodadadian

The Gas Company Tower, L.A.’s fifth tallest building, is worth one-fifth less than a year ago and two-thirds less than its value in 2021.

The value of the 52-story tower, now on the market by a receiver after Toronto-based Brookfield walked away from its debt obligations, is $214.5 million — 21 percent less than its appraisal last summer, the Commercial Observer reported, citing figures from Trepp.

The spire at 555 West 5th Street in Downtown is backed by a $350 million commercial-mortgage backed securities loan and more than $100 million in mezzanine financing.

Three years ago, the 1.4 million-square-foot building was valued at $632 million, or $451 per square foot. That means its latest value amounts to 34 percent of its worth in 2021.

The new valuation for the property works out to $153 per square foot — a potent indicator of the decline in the Downtown office market since the pandemic shift to remote work.

The Gas Company Tower, set for a foreclosure sale, is 57 percent leased, according to JLL, down from 73 percent in September 2022.

In February of last year, Brookfield defaulted on two senior loans attached to the property — one for $210 million and another for $140 million. The combined debt is now $465 million.

The alternative investment firm, ranked by Zippia as the world’s second-largest real estate company behind Austin-based Keller Williams Realty, last spring handed over its keys to the receiver, Gregg Williams of Trident Real Estate Group.

This month, Trident hired JLL to market the 33-year-old tower, revamped in 2017, for an undisclosed price.

CoStar also reported the city could be a potential buyer, according to foreclosure filings

The City of Los Angeles is set to move more than 1,200 employees from five municipal departments into the Gas Company Tower after signing a 15-year lease for 308,000 square feet.

The deal came after WeWork announced in February it would vacate 92,000 square feet at the tower, and law firm Sidley Austin is set to exit 137,000 square feet in October 2026.

— Dana Bartholomew

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  Uncategorized, Foreclosure sale 

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OC hotelier Tushar Patel delinquent on loan tied to Anaheim Marriott – Robert Khodadadian

Tushar Patel, the Orange County hotelier who once ranked as the second-largest property owner in Anaheim behind Disney, has fallen behind on an $80 million loan tied to the Anaheim Marriott. 

An entity controlled by Patel is more than 90 days delinquent on the loan, which currently has a balance of $69.8 million, according to Trepp data. The last payment on the debt came through in December. 

Patel did not respond to a request for comment. 

JPMorgan Chase Bank originated the loan in 2014 to refinance the 1,030-key hotel at 700 West Convention Way. The debt was then packaged into a commercial mortgage-backed securities deal. 

The fixed-rate loan has an interest rate of 4.8 percent. That’s lower than the secured overnight finance rate — a standard benchmark rate for lending — over the last year.

The loan was modified in 2020, when Patel requested financial relief in light of the pandemic, according to Trepp data. At the time, the property, which sits beside the convention center and just south of Disneyland, was only making about half of what was needed to service the debt. 

But the property’s income snapped back with a vengeance. By 2023, the hotel was making five times what was needed to service the debt. It’s unclear what drove the delinquency. 

The loan is set to mature in June, though the Patel entity has extension options. 

Patel bought the property in 1999 for about $80 million, the Los Angeles Times reported at the time, marking his biggest deal to that point. 

T2 Hospitality, the Patel family’s main company, owns the Springhill Suites by Marriott in Anaheim and a Residence Inn by Marriott in Anaheim. It has other hotels in Palm Springs, San Diego, Sunnyvale and Palo Alto. Its website lists the Anaheim Marriott as a “previous project.”

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  Uncategorized, Cmbs, Distress, Real Estate And Finance 

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LaTerra beats appeal against apartment project in Marina Del Rey – Robert Khodadadian

The Los Angeles City Planning Commission has upheld the approval of a residential project in Marina Del Rey, despite facing an appeal from neighboring homeowners, as reported by Urbanize Los Angeles.

LaTerra Development, a firm known for building apartment and mixed-use complexes across L.A., is moving forward with its proposal for a six-story building, comprising 210 apartments ranging from one to three bedrooms, alongside a 282-car garage at 4112 Del Rey Avenue.

The project’s approval is tied to a 35 percent density bonus incentive, allowing for a larger structure than zoning regulations would typically permit. 

“It’s got 21 affordable units of which 18 are extremely low, three are moderate,” according to LaTerra’s Managing Director Chris Tourtellotte. And 18 of the newly constructed units will be designated for very low-income tenants for 55 years.

LaTerra bought the site with three office buildings on Del Rey Avenue for $37 million. The property currently has office tenants with short-term leases. Before that, it housed a manufacturing plant.

“We anticipate commencing construction in 2025,” Tourtellotte told TRD, with expectations to finish the project by 2027.

Designed by TCA Architects, the development will have a California Coastal modern style and will offer amenities that include a courtyard, gym and a rooftop pool. Construction is anticipated to commence as early as September 2024.

A rendering of 4112 Del Rey Avenue (TCA Architects)

In the appeal, a group identified as Concerned Residents of Glencoe Avenue cited concerns over zoning compliance and potential impacts on the neighborhood, but the city found no substantial grounds to support their claims, Urbanize LA reported. 

Based in Century City, LaTerra has completed similar projects in Los Feliz, West Hollywood and Burbank.

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  Uncategorized, Affordable Housing, Marina Del Rey, Office, Residential 

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