Neutrogena to move headquarters from LA to the Garden State – Robert Khodadadian

Neutrogena, maker of Beach Defense sunscreen and cosmetics, will move its headquarters from Los Angeles to New Jersey. New Jersey?

The Westchester-based unit of New Jersey-based Kenvue is closing its corporate headquarters at 6080 West Center Drive to consolidate operations in Skillman, in the Garden State, the Los Angeles Business Journal reported.

The move comes as Kenvue executives try to boost Neutrogena’s lackluster performance. It also represents the latest major business exit out of L.A.

Neutrogena, which had called Westchester home for decades, is laying off 84 local employees in three waves, with most given the option to relocate. The company expects to shut the doors by August.

Founded in 1930 initially as Natone, the company changed its name to Neutrogena in 1962 and went public in 1973. Johnson & Johnson bought the firm in 1994 for $924 million. It then spun off its consumer health division last year into the independent Kenvue, owner of Aveeno, Band-Aid, Tylenol and Neutrogena.

The publicly traded firm reported an 8 percent drop in sales for skin health and beauty last year, a segment driven largely by Neutrogena.

A company executive told Bloomberg Finance this month that the decision to move to New Jersey was made in an effort to “boost growth and improve collaboration.”

The size of its headquarters at the 13-story office building north of LAX were not disclosed. 

The 316,000-square-foot, Class A office building, built in 1987 off the 405 Freeway, is part of a six-building, 1.4 million-square-foot Playa District campus owned by EQ Office, based in Chicago. Tenants include Sony and Pepperdine University.

The pending departure by Neutrogena is just the latest in a series of mergers and moves by homegrown firms out of Los Angeles since 2000, according to the Business Journal.

Northrop Grumman moved from Century City to Virginia in 2011, though it’s still a large employer in Los Angeles County. In 2009, Hilton Worldwide Holdings moved from Beverly Hills to Virginia. In 2014, Occidental Petroleum moved from Westwood to Houston.

Real estate brokerage CBRE moved its headquarters from Los Angeles to Dallas in 2020. A year later, engineering and construction firm AECOM also left L.A. for Dallas.

Last year, Santa Monica-based Activision Blizzard was acquired by Microsoft in a deal that kept local operations, but resulted in substantial layoffs. Mexican food producer Cacique Foods last year moved its hub and dairy plant from Monrovia and City of Industry to Texas.

Only two Fortune 500 companies are now headquartered in L.A.: Reliance Steel & Aluminum and Farmers Insurance. Outside the city limits, Disney is in Burbank and Amgen is in Thousand Oaks.

— Dana Bartholomew

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  Uncategorized, headqarters 

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Spec home developer lists Beverly Hills PO manse for $29.5M – Robert Khodadadian

A spec home in Beverly Hills Post Office has hit the market for $29.5 million, more than eight years after the developer, Yosef Dangor, bought the property. 

Josh Flagg at Compass is listing the home at 9705 Oak Pass Road for sale, according to an announcement from the brokerage. 

9705 Oak Pass Road (Marc Angeles, Getty)

The seven-bedroom, 8,800-square-foot home was designed by Noah Walker, an L.A.-area architect famous for designing some of the county’s costliest homes. The contemporary-style “architectural masterpiece” is located in a gated community, according to listing notes.

An entity tied to Dangor bought the property for $3 million in 2016, records show, and scored an $8 million loan from Anchor Loans in Westlake Village on the site last year. 

9705 Oak Pass Road (Marc Angeles, Getty)

Beverly Hills Post Office, though the area shares the same famous 90210 zip code with the city of Beverly Hills, technically lies in the city of Los Angeles. That means Dangor will have to shell out a 5.5 percent transfer tax if the property sells for $10 million or more. 

The property is flush with amenities — a Himalayan salt sauna, pool, spa, outdoor kitchen, fire pit, steam showers, movie theater and gym. 

The listing discloses a 2 percent buyer’s agent fee, though it’s subject to negotiation. 

Flagg, who stars on Bravo’s “Million Dollar Listing L.A.,” jumped to Compass from Douglas Elliman last month. The listing marks one of his first deals under the Compass brand. 

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  Uncategorized, Luxury Real Estate 

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Industrious lease expands coworking presence in Century City – Robert Khodadadian

Industrious has signed a lease for 19,000 square feet of offices in Century City, weeks after the coworking company expanded its offices in Westwood and Santa Monica.

The New York-based flex workspace firm led by Jamie Hodari and Justin Stewart signed a 10-year lease for the offices in the North Tower of Watt Plaza at 1875 Century Park East, Commercial Property Executive reported. 

Financial terms of the lease with Santa Monica-based Watt Companies, owner of the 23-story, 476,100-square-foot building and twin tower next door, were not disclosed.

Industrious is now listing coworking space from $399 a month, according to its website.

The deal comes after Industrious opened a 20,800-square-foot office at 1100 Glendon Avenue in Westwood Village, with plans to open a 23,300-square-foot office in December at 808 Wilshire Boulevard in Santa Monica.

The Industrious lease in Century City expands on 40,000 square-feet of coworking offices the firm occupies at the South Tower of Watt Plaza at 1925 Century Park East.

Industrious also has offices in Playa Vista,, Hollywood, West Hollywood and Downtown L.A. The firm has also scooped up locations left behind by WeWork across the nation following that company’s bankruptcy. Industrious claims more than 200 coworking offices in 65 cities worldwide.

Thirteen months ago, a Chicago-area judge ruled that Industrious owed Stockbridge Capital Group, its former West Loop landlord, more than $2.3 million for walking out on its lease.

In 2022, CBRE announced it was investing another $100 million in Industrious to help speed up international expansion. A year earlier, the Dallas-based firm acquired a 35 percent stake with the cash purchase of about $200 million in primary and secondary shares.

Early this year, Industrious partnered with PGIM Real Estate and HPI Real Estate and Investment Services to open a 20,600-square-foot coworking office in Austin, its fourth in the Texas capital.

As of January, Los Angeles had 4.3 million square feet of coworking office space, making it the second largest flex office footprint in the U.S., according to a CommercialEdge market update.

— Dana Bartholomew

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Fogel Real Estate plans resi, retail project in Venice Beach – Robert Khodadadian

Fogel Real Estate, run by Steven Fogel, is planning to build a 36-unit apartment building, spanning 36,700 square feet, in Venice, according to a filing with the Los Angeles Planning Commission on April 16. 

The plans for 825 South Hampton Drive include a 3,400-square-foot, ground-floor retail section with a cafe and three levels of below-ground parking with 60 spaces.

The limited liability company, SJF Venice, which filed the plans, lists Steven and Kelly Fogel as managers, according to state business records. 

Steven Fogel is the co-founder and chairman of Westwood Financial, a Los Angeles-based firm that owns and operates 127 shopping centers across the U.S, according to a company website.

His daughter Kelly Fogel, a Los Angeles-based photographer, declined to comment on the plans.

The firm bought the roughly half-acre site for $15 million in 2022, according to property records filed with L.A. County. The land sits on the intersection of Hampton Drive and Abbot Kinney Boulevard, a popular shopping strip in Venice. 

The purchase came after an entity tied to Fogel Real Estate defaulted on a loan from Columbia Pacific Advisors tied to the property next door, 812 South Main Street, records show. Columbia Pacific foreclosed on that 30,000-square-foot piece of land for $2.3 million in 2021. 

Fogel Real Estate’s plans rework earlier designs for the site that included eight live-work condos, three levels of subterranean parking and 9,000 square feet of commercial space on the ground level, TRD reported in 2017. Fogel previously leased the property, before it bought the site, records show. It’s unclear why Fogel pulled the 2017 plans and has refiled. 

Venice continues to be a desirable neighborhood, despite a “continuing decline in occupancy” and “subdued” renter demand, according to recent data compiled by Mathews Real Estate Investment Services.

Rents in Venice Beach dropped 0.8 percent between March 2023 and last month, according to the report, but is still “one of the three most expensive” neighborhoods in Los Angeles for renters, with asking rents averaging $3,290 a month. 
Other developers that have filed plans in Venice over the last couple of years include Amadora Heights and Wiseman Residential.

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  Uncategorized, Development, LA multifamily market 

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Santa Clarita looks to Irvine model for redeveloped Valencia Town Center – Robert Khodadadian

Valencia Town Center could become a great destination for families to live, play and work, not unlike Irvine Spectrum Center in Orange County.

The Irvine mall developed by the Irvine Company could serve as a model for Santa Clarita, whose planners laid out a framework for redevelopment of the Valencia Town Center mall in a Planning Commission meeting on April 16, the Santa Clarita Signal reported.

The 1 million-square-foot indoor mall at 24201 West Valencia Boulevard was purchased by Dallas-based Centennial last fall for $199 million after Unibail-Rodamco-Westfield, based in Paris, defaulted on its mortgage loan.

The Texas investor then said it had one goal: to add value by building homes, offices and more businesses at its 53-acre property in north Los Angeles County.

City planners were already hard at work drafting a Town Center Specific Plan — creating flexible guidelines for its redevelopment. The plan’s area extends beyond the mall to cover 111 acres, including City Hall.

Senior Planner Dave Peterson said the city wants to require that commercial and residential development be built in tandem.

He said “making a great place” where a family could live, play and work was as important as having the right mix of commercial tenants. 

For that, he pointed to the Irvine Spectrum Center, which for nearly three decades has evolved into a Moroccan-style retail magnet that now includes a Nordstrom, Ferris wheel, 21-screen cinema, Improv Comedy Club and around 130 shops and restaurants, in addition to two office towers.

One of the appeals of the Irvine Spectrum Center, Peterson said, is that you can read a book in one of the grassy areas and not realize the 5 Freeway is a few hundred feet away, because of the intentionality of the center’s design. 

“What that defines is the experience of the place,” Peterson said, referring to the fact that people said they just like to go there. “And that is the kind of thing that the Town Center Specific Plan is aiming for.” 

The city’s specific plan calls for the city to “strongly encourage” the developer to include 2,200 homes, of which 440 would be set aside as affordable housing for households earning less than 80 percent of area median income. 

At the same time, planners pondered the possible demolition of portions of the mall, including its food court, JC Penney store and “the Sears box,” while adding a hotel and convention center on the south side.

Michael Platt, executive vice president of mixed-use development at Centennial, said the company would wait until the city finished its Town Center Specific Plan before laying out its plans. He praised the city for its “forward-thinking” and “holistic” initiative.

— Dana Bartholomew

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  Uncategorized, Mall redevelopment, specific plan 

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Rancho Palos Verdes OKs state-mandated housing plan two years late – Robert Khodadadian

Rancho Palos Verdes has approved a new draft of its state-required housing plan, more than two years after the city blew its deadline.

The upscale South Bay city approved a plan to build 647 homes by 2029, despite pushback from residents concerned about density, traffic and local control, the Torrance Daily Breeze reported. 

The deadline to get the “housing element” plan approved by state regulators was Oct. 15, 2021. Each city and county is required every eight years to create the blueprint to rezone for a specific housing goal. 

The failure to get its plan certified leaves Rancho Palos Verdes open to the builder’s remedy, a legal loophole in state housing law that allows developers to bypass local zoning with projects that meet affordable housing thresholds.

Builders have triggered the remedy in cities from Redondo Beach to the Bay Area that have failed to certify their housing plans.

Rancho Palos Verdes has grappled with its required update requiring more low-to-moderate housing for some time, according to the Breeze.

“Most California cities have struggled mightily in this particular round of the housing element,” Rancho Palos Verdes Mayor Pro Tem Eric Alegria told a room packed full of constituents.

“I hear a lot of passion from our speakers, understandably,” he said. “We are all passionate about our homes — (and) we can all agree that housing is needed, in general. (But) I also agree that promoting housing alone does not solve homelessness as a singular tactic.” 

For elected officials and residents alike, the major concern was having to plan for apartments in an upscale city of mostly single-family homes.

Mayor John Cruikshank expressed sympathy with many in the audience.

“The onslaught of Sacramento continues and there’s not much we can do about this until we change Sacramento,” Cruikshank said. Rancho Palos Verdes, he added, is “about low density; we are about single-family homes.”

“We’re all frustrated by this process and all five of us up here get that.”

— Dana Bartholomew

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  Uncategorized, Builder’s Remedy, Housing Element 

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Bank of Southern California puts Neil Shekhter portfolio up for sale – Robert Khodadadian

Bank of Southern California has listed three apartment complexes in Santa Monica for sale — properties formerly owned by developer Neil Shekhter, The Real Deal has learned. 

The bank foreclosed on the three buildings at 1038 10th Street, 1007 Lincoln Boulevard and 1516 Stanford Street in February, L.A. County records show, after Shekhter defaulted on almost $16 million in loans tied to the properties. 

At a public auction, Bank of Southern California foreclosed with a credit bid of $9.5 million, coming out to about $394,000 per unit.

Now the bank is asking $10.8 million for the three buildings, which together total 24 units, according to listings on LoopNet for the property. At that price point of $450,000 per unit, Bank of Southern California could recoup some of its loss that came from Shekhter’s unpaid debt. A team led by JLL’s Luc Whitlock is marketing the portfolio for sale. 

Shekhter paid about $10.6 million for the three buildings between 2015 and 2016, property records show.

The buildings can be bought individually or as one portfolio, according to the LoopNet listing. Almost half of the units will be vacant at the time of sale. 

The properties could be bought by owner-occupiers — someone who could occupy one of the units and rent out the rest, according to JLL’s marketing materials. 

Shekhter and his firm, WS Communities, had refinanced the three properties in September 2022, using a business loan from Bank of Southern California, court records show. 

Shekhter’s sons Adam, Alexander and Alan Shekhter, each signed unlimited personal guarantees with recourse, meaning if the properties could not pay back the loan, the brothers would be personally liable for paying it back, according to court documents. 

Bank of Southern California had sued Shekhter’s sons over the defaulted loans, claiming the three “failed and refused, and continue to fail and refuse, to pay the sums due and owing to plaintiff, in breach of said guaranty,” court records show.

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  Uncategorized, Distress, Foreclosure, Investment Sales, LA multifamily market, REO 

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Redcar plans three-story mass timber office building in Santa Monica – Robert Khodadadian

Redcar Properties has upgraded plans for a 47,300-square-foot office building in Santa Monica.

The locally based developer led by Jim Jacobsen unveiled a new look before the city Architectural Review Board for the three-story building proposed for 1630 Euclid Street, Urbanize Los Angeles reported.

The project, presented to the same board in August, would replace a 7,300-square-foot commercial building west of Memorial Park.

The office building was designed by Culver City-based House & Robertson Architects, which led the design for the distinctive stainless steel ribbon façade at the Petersen Automotive Museum in L.A.’s Miracle Mile.

Its upgraded design for 1630 Euclid includes a “hybrid” mass timber building topped with rooftop solar panels above a two-level underground garage.

The offices would include floor-to-ceiling windows surrounded by outdoor balconies and stairways, according to renderings. A rooftop deck would be shaded by a trellis canopy.

In a report, Santa Monica planning staff recommended the Architectural Review Board approve the project, according to Urbanize.

The proposed offices, revised from brown to white with wood trim, is a sister project connecting to a 39,000-square-foot building Redcar built next door at 1650 Euclid. The two buildings will attach on each floor, according to Urbanize, and the parking levels at 1630 Euclid will be accessed through the next-door building.

In February last year, Redcar filed plans to build a 75,000-square-foot office building at 3122 Nebraska Avenue, which would replace two mid-century industrial buildings.

The firm has built projects in Culver City and in Chinatown. In August, construction was underway for its five-story office complex in Chinatown, among the first in Los Angeles built of cross-laminated timber.

— Dana Bartholomew

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DJM and PGIM list Bella Terra mall in Huntington Beach for sale  – Robert Khodadadian

DJM Capital and PGIM have listed an 853,000-square-foot shopping center approved for 300 homes in Huntington Beach. The outdoor mall could fetch $300 million.

The San Jose-based developer and the real estate arm of Prudential Financial, based in New Jersey, are marketing the Bella Terra retail center at 7777 Edinger Avenue, Bisnow reported, citing a report by Real Estate Alert. The asking price was not disclosed.

But the nearly fully leased shopping center could sell for as much as $300 million, or $352 per square foot, market experts say.

If Bella Terra sold for that price, it would become “one of the biggest single-asset trades of a U.S. retail property within the past four years,” Real Estate Alert said.

The shopping center at the 405 Freeway and Beach Boulevard is 96.8 percent leased. Whole Foods serves as its grocery anchor, while Costco has a ground lease for its big-box store.  The Cheesecake Factory, Kohl’s, REI and Ulta Beauty are also tenants. 

The property is billed as a retail center among the top 1 percent of shopping centers by foot traffic, according to Real Estate Alert. Some 92 percent of its stores are leased to national retailers, while the average tenant stays for 14.5 years. 

Eastdil Secured is marketing the mall on behalf of DJM Capital and PGIM.

DJM bought the shopping center in 2005 for an undisclosed price. 

The open-air mall, once known as the Huntington Beach Mall, was built in 1966. It was renamed Bella Terra and redeveloped, with DJM replacing an underused amphitheater with new shops and restaurants, while adding a performing stage, lawn and beer-and-wine garden.

In 2015, PGIM paid nearly $289 million for a 75 percent stake, according to the Orange County Business Journal.

In 2022, the mall’s co-owners won approval to build a 300-unit apartment complex on 47 acres at Bella Terra, replacing a 149,000-square-foot store occupied by Burlington Coat Factory and a 33,000-square-foot store next door.

Plans call for a U-shaped building of four and six stories with 300 apartments and 25,000 square feet of ground-floor shops and restaurants. Construction was supposed to have begun last year, but the project never broke ground.

PGIM and DJM are also partners at Long Beach Exchange, a 266,000-square-foot shopping center they bought in early 2022 for nearly $160 million.

DJM Capital teamed up with Gaw Capital Partners in 2019 to buy the 463,000-square-foot Hollywood & Highland Center in Hollywood for $325 million. They renamed the outdoor mall Ovation Hollywood.

DJM also has stakes in Lido Marina Village in Newport Beach, Pacific City in Huntington Beach and Runway, an outdoor mall in Playa Vista.

In early 2022, the company bought Gateway Center, a 79,000-square-foot, nine-building retail center in Mission Viejo for $29.5 million.

— Dana Bartholomew

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  Uncategorized, Open-air mall 

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Long Beach ups zoning so Linc Housing can build affordable apartments – Robert Khodadadian

Long Beach has upgraded its zoning to allow Linc Housing to build 72 affordable apartments and other developers to build homes in “high resource” neighborhoods.

The City Council approved the zone change to allow the locally based affordable housing developer to build four- and three-story complexes at 4151 Fountain Street and 4220 Wehrle Court, the Long Beach Press-Telegram reported.

The council also declared a two-thirds acre lot with a defunct grocery store owned by the city in California Heights to be surplus property. It’s where West Hollywood Community Housing Corporation has proposed building a 100-unit affordable housing complex.

Both projects are in “high resource” or “high opportunity” neighborhoods, a designation by the State Tax Credit Allocation Committee. It’s based on the presence of schools, parks, access to employment, retail and other factors, according to one city official.

Last summer, Linc Housing filed plans to build the 73-unit complex at 4151 East Fountain Street and 4220 Wehrle Court, to replace a troubled group home for disabled teens, Urbanize Los Angeles reported. 

The City Council unanimously approved the zone change, general plan map amendment and a sustainable communities project exemption to make the project possible.

Plans for the complex, dubbed the Fountain Street Apartments, call for a manager’s unit and 72 one-, two- and three-bedroom affordable apartments for households that earn between 30 and 60 percent of area median income.

The complex will include 18 homes for people with disabilities, plus a playground, community room, green space and parking for an unspecified number of cars.

The $58.7 million project was awarded $23.1 million by the California Department of Housing and Community Development this week as part of $523.8 million in “Super NOFA” grants for affordable housing, according to Urbanize.

Neighbors expressed concerns about extra traffic, public safety and access impacts at a nearby elementary school.

Councilwoman Kristina Duggan, who represents the Third District, said residents’ concerns were her concerns.

She said city staff are looking to change street sweeping and work with the school district to improve before- and after-school traffic.

“I’m happy that this is in the Third District and we’re part of the solution and we’re providing 72 families homes,” Duggan told the council and constituents. “Now, I also want to acknowledge the neighbors who have come out and worked with me and talked with me about this project.

“It’s rooted in real concerns about the impact to the neighborhood and the quality of life for the people who will be living in the new development.”

Long Beach must plan for 26,502 homes, more than half of them affordable to low- and moderate-income residents, by 2030, according to its state-mandated housing blueprint.

— Dana Bartholomew

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  Uncategorized, Affordable Housing, Zoning 

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Macerich faces “imminent” default on $300M Santa Monica Place loan – Robert Khodadadian

Macerich has an episode of déjà vu, after a $300 million loan on its Santa Monica Place mall goes to special servicing — the second time in two years. 

The loan on the 527,000-square-foot mall is expected to see “imminent maturity default,” according to Trepp. 

In August 2022, the same loan was sent to special servicing for the same reason. But Macerich managed to negotiate an extension with lender Wells Fargo, by buying a rate cap, a hedge against rising rates. With that new extension, the loan is currently set to expire in December.

 Macerich did not respond to a request for comment. 

The property at 395 Santa Monica Place has struggled for the last five years. As tenants have given up space and in the wake of the pandemic, Macerich, a real estate investment trust headquartered in Santa Monica, has struggled to fill the vacancies. 

At the end of 2019, the property was 95 percent leased, including to higher-end department stores Bloomingdale’s and Nordstrom, according to financial filings. 

Macerich was reeling in an average of $58 per square foot a year on its owned malls, it disclosed in a 2019 financial report. Based on that average, Santa Monica Place would have generated about $1.4 million a month in rent — almost double what was needed to service the debt.

But in 2020, after the pandemic hit, occupancy dropped to 91 percent. In 2021, Bloomingdale’s and ArcLight Cinemas both vacated the property, causing occupancy to shrink to 85 percent. 

More than half of the property was available for lease at the beginning of 2023, according to Macerich. 

At the end of 2023, the property was reeling in about 70 percent of what was needed to service the debt. 

Macerich expects that a renovation of the spaces left by Bloomingdale’s and ArcLight will help attract new tenants, according to a 2023 annual report. The firm plans to spend up to $40 million to redevelop the 150,000-square-foot space, a project it anticipates will finish by next year. 

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  Uncategorized, Breaking, Breaking News, Distress, LA retail market, Real Estate And Finance 

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Panot Capital snags $51M loan for vintage apartment buildings in LA – Robert Khodadadian

Panot Capital has scored a $50.8 million loan to refinance 10 century-old apartment buildings in Hollywood and other parts of Los Angeles.

The Houston-based investor led by Aaron Iskowitz and Zain Sayed secured the loan for the vintage properties with 482 apartments across the city, the Commercial Observer reported. The locations of each property were undisclosed.

The loan from Israel Discount Bank of New York, or IDB, comes on a seven-year term with four years of interest-only payments at a rate of 5.94 percent. 

The deal was arranged by Northmarq, which described it as “a below-market-rate loan on vintage brick buildings across Hollywood.”

Pinot Capital, founded late last year, focuses on data-driven multifamily and mixed-use properties, with offices in Houston, Los Angeles, New York and Rhode Island.

The startup has acquired a portfolio of 1.3 million square feet of properties with more than 850 units, and 11.3 million square feet of land in California, New Jersey, North Carolina, Ohio and Rhode Island, according to its website.

Its Los Angeles portfolio includes 532 apartments within 263,300-square-feet of buildings.

— Dana Bartholomew

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WeWork keeps North Hollywood location, sees LA as “key market” – Robert Khodadadian

WeWork, the embattled New York-based coworking firm, said on Monday it filed a motion to keep its leases at two Los Angeles locations. 

The company included both as a part of the five lease assumptions it disclosed on April 15 as part of its Chapter 11 bankruptcy reorganization. The first L.A. location is at 5161 Lankershim Boulevard in North Hollywood. The other WeWork coworking space is located at 10250 Constellation Boulevard in Century City.

According to a WeWork spokesperson, the company has seen “really strong demand” for coworking spaces with the rise of flexible work post-pandemic, describing Los Angeles as a “key market for WeWork.” The firm reports market demand for both “on demand” daily bookings and monthly memberships, called WeWork All Access, which “factored into” WeWork’s decision to stay in the NoHo building. 

“We continue to work with our landlords to achieve more sustainable lease terms so that we can really stay in as many buildings in the city as possible,” the spokesperson said.

In addition to coworking space itself, the 5161 Lankershim Boulevard WeWork location offers nearby amenities such as restaurants in the NoHo Arts District and galleries in Valley Village.

“The buildings we’ve assumed in L.A. are ones where we see a sustainable path forward for our operations in the long term,” the spokesperson noted. “We’re just really excited by the progress that we’ve made in L.A. so far, and we look forward to continuing this momentum.”

Across the country, WeWork has been on a hunt for fresh financing while negotiating leases with landlords as a part of its comeback plan.

Earlier this month, the company announced that it “determined a final path forward at 90 percent of the locations in its global real estate portfolio through amended leases, new management agreements, or via the lease rejection process” in a statement on April 2. The company plans to exit Chapter 11 by the end of May.

“We remain committed to emerging from our global real estate and financial restructuring later this quarter, and expect to do so with little to no debt,”said CEO David Tolley.

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Industrious expands into LA’s Westwood and Santa Monica – Robert Khodadadian

Industrious is expanding its coworking offices around Los Angeles with new locations in Westwood and Santa Monica.

The New York-based coworking firm led by Jamie Hodari and Justin Stewart has opened a 20,800-square-foot office at 1100 Glendon Avenue in Westwood Village, the Commercial Observer reported.

In December, the flex workspace company plans to open a 23,331-square-foot office at 808 Wilshire Boulevard in Santa Monica.

Given their size, it appears each office was leased. Terms of the deals were not disclosed.

Industrious teamed up with Santa Monica-based Douglas Emmett to open the Industrious at Westwood Center, which includes 243 desks in Westwood Village near UCLA.

The firm will open the Santa Monica office at the four-story Lincoln Wilshire building, with 242 desks, nearly two blocks from Santa Monica Boulevard.

“Santa Monica and Westwood are two submarkets we’ve had our sights set on for years, and we’re thrilled to be planting our first flags in the area,” Peri Demestihas, head of North American real estate growth for Industrious, said in a statement.

Industrious also has offices in Playa Vista, Century City, Hollywood, West Hollywood and  Downtown L.A. The firm has also scooped up national offices left behind by WeWork following that company’s bankruptcy. Industrious claims more than 200 coworking offices in 65 cities worldwide.

Thirteen months ago, a Chicago-area judge ruled that Industrious owed Stockbridge Capital Group, its former West Loop landlord, more than $2.3 million for walking out on its lease.

In 2022, CBRE announced it was investing another $100 million in Industrious to help speed up international expansion. A year earlier, the Dallas-based firm acquired a 35 percent stake with the cash purchase of about $200 million in primary and secondary shares.

— Dana Bartholomew

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Lincoln Property defaults on Newport Beach office loan – Robert Khodadadian

When Lincoln Property Company bought 1500 Quail Street in Newport Beach in 2018, the company lauded the office building as a “trophy asset,” a “rare opportunity” and a property with “very stable cash flow.” 

Circumstances have changed. 

Lincoln Property defaulted on a $23.3 million loan tied to the 90,000-square-foot building last month, according to a notice of default filed with Orange County. The firm did not respond to a request for comment before publication. 

The Dallas-headquartered commercial landlord bought the building with an unnamed institutional investor in 2018, paying $32 million, according to property records and an announcement at the time. The firm used the loan from Capital One for the acquisition, and then extended the debt twice. 

Lincoln Property currently owes $20.9 million under the mortgage, according to the notice of default. Capital One can schedule a foreclosure on the building no earlier than June 26, in accordance with California law. 

At 1500 Quail Street, the building is 83 percent leased, down from 90 percent when Lincoln bought the property. 

Many Orange County office buildings have fallen victim to the same factors suppressing office demand — from both tenants and investors — across the country. Remote work has led to companies shrinking footprint and lenders have become hesitant to make loans on office buildings. Rising interest rates have also hurt borrowers with floating-rate loans, as their monthly mortgage payments have skyrocketed. 

Last month, Greenlaw and Walton Street lost an entirely empty, 350,000-square-foot building at 1 City Boulevard West in Orange, signing over the property to TPG Real Estate Finance Trust in a deed-in-lieu of foreclosure, after defaulting on a $64 million loan.

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  Uncategorized, Default, Orange County 

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