ReportWire

Tag: residential

  • Are New York electricity prices above the national average?

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    Amid steep national price increases for certain consumer items, New York Republican state Sen. Tom O’Mara criticized the high cost of living in his state.

    In a column published in the Wellsville Sun on Jan. 20, O’Mara blamed Democrats in Albany for making New York “an increasingly expensive state in which to live, work, raise a family, or run a business.” 

    Republicans in the legislature, including O’Mara, have launched a “Save New York” campaign to tackle the cost of living, including electricity rates. 

    O’Mara is backing a bill that would return $2 billion to $3 billion in unspent money to taxpayers. The money would come from the New York State Energy and Research Development Authority, which is tasked with promoting energy efficiency, renewable energy and emissions reduction.

    In the column, O’Mara said such efforts are important because “New Yorkers pay 49% more than the national average for electricity.” 

    Federal data supports O’Mara’s statistic, though the percentage varies by the type of customer, and New York’s rates are lower than most New England states.

    How much higher are electricity costs in New York state?

    O’Mara — whose district includes portions of central New York state and the southern tier, including Corning and Elmira — responded to our inquiry with a post to an Empire Center for Public Policy article warning about the rising prices of electricity in New York. 

    According to the article, “In October 2025, the average residential electricity price in New York hit 26.95 cents per kilowatt-hour — about 50 percent higher than the U.S. average and among the top ten highest rates nationwide.”

    This aligns with slightly more recent data collected by the federal Energy Information Administration.

    In November 2025, the federal agency found, residential users in New York state paid average electricity prices of 26.49 cents per kilowatt hour in November 2025. The national rate that month was 17.78 cents per kilowatt hour, so New York state’s rate was exactly 49% higher than the national average.

    The premium paid by commercial users in New York state was similar to what residential users paid — 50% above the national average. 

    Two other categories of users — industrial and transportation — were closer to the national average, but still above it. Industrial users, which include major plants with a dedicated electricity supply, paid 6% more than the national average, while transportation users, such as rail, paid 15% more.

    New York compared favorably with some of its regional neighbors. 

    Among New England states, residential customers in Massachusetts paid 31.22 cents per kilowatt hour, Rhode Island residents paid 30.82, Maine residents paid 27.85, New Hampshire residents paid 27.37, and Connecticut residents paid 27.02 for residential.  The only New England state that was less expensive than New York was Vermont, where residential customers paid 24.17 cents per kilowatt hour.

    Two states in the mid-Atlantic region — New Jersey and Pennsylvania — had lower prices than New York, with 22.73 cents and 20.17 cents, respectively.

    Severin Borenstein, a University of California-Berkeley public policy and business administration professor, cautioned that the averages mask variations among people and locations.

    “New York has many different utilities and rates, so some people pay even more than that differential and others pay less,” Borenstein said.

    Our ruling

    O’Mara said, “New Yorkers pay 49% more than the national average for electricity.”

    Federal data from November 2025 shows that this is correct for residential and commercial users. Costs for industrial and transportation users were also above the national average, but not as dramatically.

    While O’Mara blamed New York’s Democrats for the high electricity prices, New York’s electricity costs are below those of most New England states, although they are higher than two mid-Atlantic states, New Jersey and Pennsylvania. 

    The statement is accurate but needs additional information, so we rate it Mostly True.

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  • Bedford changes plans for development of city-owned land. Here’s what’s planned

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    Bedford is holding off on plans for commercial development on 30 acres of city-owned land because of rising costs and economic uncertainties and will focus on residential development for the time-being.

    Bedford is holding off on plans for commercial development on 30 acres of city-owned land because of rising costs and economic uncertainties and will focus on residential development for the time-being.

    Bedford is holding off on plans for commercial development on 30 acres of city-owned land because of rising costs and economic uncertainties and will focus on residential development for the time-being.

    The city announced the change in plans to develop the vacant land, known as Bedford Commons, on Wednesday.

    “Rather than pushing a plan forward simply to keep momentum, the City is choosing to pause, reassess, and change the approach,” according to the Facebook post.

    Bedford and Midway Inc. mutually agreed to “part ways” on the original development plan and partnership, the announcement stated.

    Bedford Commons takes in around 30 acres betwwen Bedford Road and Don Dodson Drive.

    Why the change in plans

    Bedford and Midway officials discussed creating a commercial development, but discovered that the original approach wouldn’t work with today’s economic realities of bringing restaurants and retail in to a competitive market, the city said.

    “New commercial development is facing higher construction, labor, and financing costs, while many prospective tenants are cautious about taking on large upfront investments, especially in projects that are still establishing traffic and customer activity,” the city said in a statement.

    Bedford officials were concerned about the level of commercial development costs and “rent support which exceeded what the city felt comfortable with providing.”

    Bedford is shifting to a phased development approach that will include residential and commercial, which allows Bedford to guide the project over time rather than reacting to market pressures that could compromise Bedford Commons’ viability over time, the statement said.

    Plans call for residential development to move forward first on the east side of the property, with single family homes, not apartments.

    Once the city chooses a home builder, there will be information about the type of homes and pricing.

    “Residential development provides long-term stability for the site, creates consistent daily activity, and establishes a built-in customer base to support future restaurants, retail, and community amenities. Beginning with housing allows the City to generate momentum at the site while setting up future commercial phases for success,” according to Bedford’s Facebook post

    Elizabeth Campbell

    Fort Worth Star-Telegram

    With my guide dog Freddie, I keep tabs on growth, economic development and other issues in Northeast Tarrant cities and other communities near Fort Worth. I’ve been a reporter at the Star-Telegram for 34 years.

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    Elizabeth Campbell

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  • Bel-Air Tudor Revival tops LA luxury contracts’ quiet start to 2026

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    A 1920s-built, Bel-Air estate designed by the same architect behind the Beverly Hills Hotel led the pack of last week’s signed contracts kicking off the new year.

    The home at 259 Saint Pierre Road sat in the top spot on the Eklund Weekly Luxury Report Los Angeles for the seven-day period ended Jan. 4. The weekly roundup is produced by Marcy Roth of Douglas Elliman’s Eklund Gomes team and includes properties within L.A. County listed for $4 million or more.  

    The Elmer Grey-designed home first hit the market in March for $30.5 million or $3,456 per square foot, according to Zillow records.  

    Property records show the seller is an entity called Leeland Holdings International Inc., registered in the Bahamas.

    Carolwood Estates’ David Parnes and Keller Williams Beverly Hills’ Greg Moore hold the listing.

    Parnes and Moore are also the listing agents for 234 Saint Pierre Road. The mid-century modern abode sits next door and is listed for $18.5 million, or $3,631 per square foot.

    The Saint Pierre residence that fell into contract last week counts eight bedrooms and a dozen bathrooms.

    The Tudor Revival-style home includes an 8,825-square-foot main home, guest home of over 7,000 square feet and a more than 2,000-square-foot outpost for staff or security. In all, the structures sit on more than 2 acres, with walking trails, patios, two pools, a sport court and two gated driveways.  

    Last week’s next priciest home to go into contract was 1947 Glencoe Way in the Hollywood Hills.

    The six-bed, seven-bath home spans over 6,600 square feet and is listed for $6.5 million, or $984 per square foot.

    Records show the property went into default in September, with $1.4 million owed as of Aug. 11. The seller is Kenny E. Hanna Jr., according to records obtained through PropertyShark.

    Standard Home Realty’s Brandon Guerrero has the listing.

    Built in 2022, the home boasts a primary suite that spans an entire floor with a walk-in closet, patio and its own staircase leading to the pool. Other highlights include a waterfall feature with the infinity pool, BBQ area and elevator.

    A total of five properties went into contract last week in L.A. County, which was on par with the year-ago period, the Eklund Gomes team reported. That added up to $44.8 million in asking volume, which was off about 42 percent from the comparable seven-day period a year ago.

    A possible bright spot in the market is on the supply side.

    Last year ended with 939 homes available for sale in the county, according to the Eklund Gomes report. That’s up slightly from the 875 listings in active inventory that kicked off the start of 2025 and is down from the nearly 1,600 homes available for sale at the most recent peak in mid-June. The clearing of for-sale inventory could signal the start of a swing to a seller’s market for the county should the trend continue.  

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    Holmby Hills manse boosts LA inventory with $48M ask


    Aaron Kirman and Cindy Ambuehl with 1504 North Kenter Avenue in Brentwood

    $26M Brentwood manse on private knoll tops LA signed contracts


    Ardie Tavangarian with Villa Siena at 607 Siena Way

    Ardie Tavangarian’s Villa Siena heads back to market for $135M


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    Kari Hamanaka

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  • Related, MacFarlane offer tale of two succession plans

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    Companies can often represent a mirror of their leaders. Understand the top executive, and you’ll have a better chance to understand the why and how of the organization beneath.

    So, changes at the top create some intrigue, as is the case for Related California, a subsidiary of the dominant Related Companies and one of the state’s most prolific developers. This week, The Real Deal’s Lauren Elkies-Schram broke the story that Bill Witte, Related California’s chairman and CEO, planned to step down.

    For more than 35 years, Witte, 74, led the once-upstart Related California and its development of tens of thousands of new housing units — a portfolio worth several billion dollars — across the state. To continue his work, Witte has tapped two successors: company president Gino Canori and in-house affordable housing executive Ann Silverberg. Canori is based in San Francisco and will become president and CEO of Related California’s market rate and mixed-income development group. Silverberg will take over as president and CEO of all affordable housing work.

    Sometimes succession plans don’t work out, as evidenced this week by the news that Victor MacFarlane has returned as CEO of the development firm he founded, MacFarlane Partners. MacFarlane, now 74, had stepped down in 2022 from the San Francisco-based company, which the San Francisco Business Times called “one of the first and largest Black-owned real estate development firms in the country.” MacFarlane thought he had a succession plan in place, handing the keys and his legacy over to protégé Landon Taylor.

    According to the Business Times, Taylor struggled to “pursue business opportunities without MacFarlane’s involvement.” Taylor is now starting up his own company, LegacyFirst, which will reportedly work with MacFarlane Partners to complete Freedom West, a $2.3 billion megaproject in San Francisco’s Fillmore neighborhood envisioned to have more than 2,000 new housing units, a hotel, and commercial space. Momentum on the project has slowed in recent years, and MacFarlane told The Real Deal the focus is on entitling the property for the development. 

    Regarding succession plans for MacFarlane Partners, MacFarlane, 74, told The Real Deal he has none, and that he now hopes to wrap up the firm before he turns 80. 

    What hasn’t slowed in San Francisco is the artificial intelligence agency’s grip on commercial real estate. Earlier this week, the San Francisco Chronicle reported that Nvidia, the multi-trillion-dollar chip manufacturer, leased 45,000 square feet at the Mission Rock project, where they’ll be neighbors with Visa, Coinbase and the Golden State Warriors. Nvidia has largely taken up space in Silicon Valley but now stake out a presence in OpenAI’s Mission Bay neighborhood. 

    Up around the Embarcadero, OpenAI rival Anthropic, creator of the large-language-model Claude, is reportedly finalizing a long-term lease at 300 Howard Street. According to the San Francisco Chronicle, the lease terms could be as long as 13 years, and “would involve the company taking over the entire 420,000-square-foot building.” The building was previously leased to FitBit. 

    Such a lengthy lease would fly in the face of the city’s recent trends. Yes, high-end office leases are flying off the charts, but many leases are for three-to-five years — terms which provide necessary flexibility for young companies to grow fast, but add a layer of long-term uncertainty to the local office market. 

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    Bill Witte to step down as Related California CEO after 36 years


    Related California's Gino Canori and Ann Silverberg

    In Witte’s wake: Who are Related California’s new co-CEOs?


    MacFarlane's Victor MacFarlane and Avanath's Daryl Carter with rendering of Freedom West (MacFarlane Partners, Avanath Capital Management, DLR Group)

    Residential

    San Francisco

    $2B co-op project stalls while developers raise funds


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    Christopher Neely

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  • Beverly Hills builder’s remedy projects grow in size after Pustilnikov lawsuit

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    Two builder’s remedy projects in Beverly Hills that drew criticism from residents are getting even bigger. 

    The developments at 125-129 South Linden Drive and 8844 Burton Way are adding several stories to their project plans, the Beverly Press reported

    Leo Pustilnikov, the developer who successfully sued the city of Beverly Hills for unlawfully blocking the Linden project from advancing, has updated plans for that development to nearly double the size. 

    With the new Linden proposal, the tower grows from 19 to 36 stories and from approximately 200 feet to 400 feet. It now includes an additional 185 units with 28 set aside for affordable housing for a total of 350 units, 61 reserved for low-income residents. An 80-room luxury hotel is also slated for the property. 

    “This project represents a bold vision for the future of Beverly Hills,” Pustilnikov said in a statement of the Linden development. However, Michael Forbes, Beverly HIlls’ director of community development, said the city has not yet received an application for the revised application. 

    The size of the Linden Drive tower, even at its original height, drew the ire of the Southwest Beverly Hills Homeowners Association. Association president Ken Goldman was disappointed with Pustilnikov’s new plans. 

    “In my opinion, the greedy developer just got greedier,” Goldman told the Beverly Press. “If he really wants to help the housing situation, then 100 percent of his project should be available for affordable housing.”

    Meanwhile, Crescent Heights’ planned builder’s remedy project at 8844 Burton Way, currently an empty lot, increased from 20 to 26 stories, according to revised plans submitted to the city. 

    The Burton Way tower would rise approximately 309 feet, up from the previous height of 223 feet, and increase from 480,686 square feet to 492,029 square feet. It would also include 318 parking spaces instead of the previously proposed 277, though it will keep the same number of housing units at 200. 

    The updated project still includes affordable housing units, though the number was slashed from 40 lower-income units to 14 extremely-low-income units and eight moderate-income units. The move was made after changes to California housing laws reduced the number of affordable housing units required to qualify for builder’s remedy status. 

    Extremely-low-income in Los Angeles County is considered to be a maximum annual wage of $31,850 for one person, while moderate-income is a maximum of $89,550. 

    “As residents, we are not opposed to thoughtful, balanced development. We care deeply about responsible growth that honors the unique character of Beverly Hills,” local resident Renée Strauss told the Press. “But when city leadership fails to communicate after specifically committing to do better, it erodes trust and creates unnecessary division. We are simply asking that the city uphold its promise, protect our voice and ensure transparency in matters that affect us all.”

    Under its Housing Element, the city of Beverly Hills must plan to build 3,104 new housing units by 2029. Chris Malone Méndez

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    Pustilnikov beats Beverly Hills on builders remedy


    Beverly Hills Facing New Builder’s Remedy Lawsuits

    Developers sue Beverly Hills after builder’s remedy applications denied


    Crescent Heights employs builder’s remedy for 20-story housing tower in Beverly Hills

    Crescent Heights cites builder’s remedy for Beverly Hills highrise


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    TRD Staff

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  • The Daily Dirt: Tough times for Trump real estate

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    It was another tough week for the Trump brand in New York City real estate. 

    On Tuesday, it was reported that the late Ivana Trump’s Upper East Side townhouse at 10 East 64th Street was listed for the third time — its price dropped over 30 percent from when she first hit the market three years ago. 

    The next day, the most expensive condo in eight years sold at Trump Park Avenue — for half of what seller Robert Tillis paid for it in 2016. 

    The rough performance comes as buildings around the city have been trying to de-Trump themselves for years, some successfully and others less so. Last year, a Columbia Business School professor analyzed condo sales data, showing that the values of Trump condo buildings have fallen precipitously compared to other towers around the city. 

    So, are Ivana’s townhouse and Tillis’ condo just another case of the Trump name ravaging real estate values in the Democratic stronghold that is New York City?

    Probably not, at least in this case. 

    The townhouse is, as a broker trying to sell it might say, “quirky,” with red carpets and pink marble lashings.

    “No one is buying the place and not redoing it,” a fashion designer and friend of Ivana Trump said when it was listed. 

    The same could be said for Tillis’ eight-year-old condo, with its white-veined gray marble bathroom. 

    In reality, the homes speak less to buyers’ unwillingness to splurge on Trump-associated property, and more to their unwillingness to splurge on renovations when there are newer homes popping up around the city. 

    “It’s so difficult to do work now from a time, labor [and] materials perspective, that unless buyers are getting a really, really good deal, they’re not willing to do that work,” Brown Harris Stevens’ Jared Antin told me during a conversation about the city’s market. 

    When it comes to residential real estate, it’s less about what’s in a name and more about what’s in the property. 

    What we’re thinking about: Speaking of politicians impacting real estate, there was much sturm und drang after Zohran Mamdani won the Democratic mayoral primary, with a number of agents claiming residents and businesses were preparing to flee the city. Things seem to have calmed down since, but I wonder if any of those concerns have materialized? Or, will they start in earnest after the election in November? Email me at jacob.indursky@therealdeal.com.

    A thing we’ve learned: Ever wonder how hot it actually is when you’ve soaked through your shirt waiting for the train at 34th Street? A new project from New York Lab is installing sensors in subway stations around the city to measure exactly that. The project, which began after a man named Jack Klein posted TikToks measuring the heat and air quality in subway stations, has installed 10 sensors in Manhattan stations so far. If it can help me show up to my next meeting slightly drier, I’m all for it. 

    Elsewhere…

     — More than 20 workers who renovated the NYPD properties will share an almost $900,000 settlement from the contractor, CLS Project Solutions, according to an announcement from the city comptroller, Gothamist reported. The settlement includes compensation and interest for unpaid wages for work that took place between October 2018 and November 2020. 

     — New Yorkers with housing vouchers will see a rent hike following a rule change by the Adams administration, The City reported. Starting Sept. 13, households that have earned income and have been on the CityFHEPS program for five years will see their rent contribution rise from 30 percent to 40 percent. This will affect around 3,100 families in the first year. 

     — After years of delays, Amtrak launched its first Avelia Liberty train on Thursday, one of five new Acela trains, according to Crain’s New York Business. Its top speed is 10 miles per hour faster than the current Acela trains. The manufacturer, Alstom, built the trains as part of a $2.3 billion contract made in 2016. — Quinn Waller

    Closing time

    Residential: The top residential deal recorded Friday was $8.8 million for 145 Hudson Street, 7B. The Tribeca condo unit at The Sky Lofts is 3,300 square feet. Compass’ The Hudson Advisory Team has the listing.

    Commercial: The top commercial deal recorded was $10.7 million for 89-02 Atlantic Avenue and 94-33 89th Street. The sale is for two industrial buildings in Ozone Park, totaling over 30,000 square feet.

    New to the Market: The highest price for a residential property hitting the market was $12.3 million for 217 West 57th Street, Unit 35B. The Central Park Tower condo unit is 2,600 square feet. The unit is sold by developer Extell Marketing Group.

    Breaking Ground: The largest new building project filed was for a proposed 24,465-square-foot, five-story, residential building at 382 Remsen Avenue in Brooklyn. Nikolai Katz of Nikolai Katz Architect is the applicant of record.

    — Joseph Jungermann

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    Jake Indursky

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  • Real estate industry welcomes Hochman victory in LA County DA race

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    The real estate industry is breathing a sigh of relief because independent Nathan Hochman has secured victory in Los Angeles County’s closely watched district attorney race.

     

    The former federal prosecutor won over voters with his “blueprint for justice” aimed at restoring public safety, while blaming incumbent George Gascón for a stance too soft on crime.

     

    “This is the most important election result by far,” said Michael Nourmand, president of Beverly Hills luxury residential brokerage Nourmand & Associates, referring to the race.

     

    Hochman had roughly 1.4 million votes as of Wednesday afternoon, while Gascón had about 891,000.

     

    Dan Yukelson, CEO at the Apartment Association of Greater Los Angeles, said the group is “very pleased” with the results.

     

    “This is definitely a step in the right direction,” Yukelson said. “We’ve really seen a major increase in property crime and theft over the last four years.”

     

    Conditions on streets with increased homeless encampments and unsightly campers parked near apartment buildings have made it hard for some landlords to rent vacant units over the past few years, Yukelson said in relation to crime’s impact on multifamily owners. In some cases, landlords have felt the need to disclose the higher area crime rates to prospective tenants in a bid to avoid liability.

     

    Tenants have also faced stressors from individuals with drug addiction and other crimes, causing landlords to feel the pressure from both ends, Yukelson added.

     

    “We get people trespassing at our properties and those [cases] are barely prosecuted. The LAPD has been reluctant to show up or deal with it,” Yukelson said of what many apartment owners have faced over the past four years.

     

    Other industry supporters of Hochman include developer Rick Caruso, former Los Angeles Police Commissioner turned developer Steve Soboroff, Madison Partners President Bob Safai and Palos Verdes Investments President Jerry Marcil.

     

    Luxe impacts

     

    It’s not just commercial property owners that have pointed to crime as impacting their business.

     

    The Greater Los Angeles Realtors Association and Southland Regional Association of Realtors, like the AAGLA, endorsed Hochman in the lead-up to election night.

     

    “Public safety and smash and grabs were two important issues we heard about through our members and the public, which is why we decided to take the step to get involved with an endorsement,” Greater Los Angeles Realtors President Anne Russell said in a statement to The Real Deal, congratulating Hochman on his win. 

     

    Last month Hochman stopped for photos and handshakes at luxe agencies The Oppenheim Group and The Beverly Hills Estates.

     

    Luxury residential agents have reported anecdotally this year that residents and prospective homebuyers are leaving the Los Angeles market on account of crime, heading to upscale alternatives such as Newport Beach in Orange County.

     

    Nourmand pointed out the issues when crime has no consequences.

     

    “You go to a CVS and shaving cream and razors are locked,” Nourmand lamented of what’s become a common sight in many stores as retailers have sought to tamp down on theft.

     

    He also echoed what many agents have said of business shifting to other markets on account of crime.

     

    “If you look at some of the agents in L.A., primarily the ones on reality TV as a good example, they were doing fewer big deals here but making it up over in Orange County,” he said. “So there were definitely some people that didn’t feel safe here.”

     

    The flight to alternative markets also included areas with gated communities or that are more remote, such as the San Fernando Valley’s Calabasas, Hidden Hills, Encino and Sherman Oaks, Nourmand added.

     

    Shifting views

     

    The district attorney race outcome offers a critique on the policies that landed incumbent Gascón the D.A. seat in 2020. In the wake of George Floyd’s death, Gascón campaigned on a progressive platform aimed at criminal justice reform. Voters, however, appear to have grown weary of the experiment amid increased public perception of crime in the county.

     

    Proponents of Gascón have long pointed to crime statistics, which appear to be on the decline this year. The L.A. County Sheriff’s Department reported violent crimes up less than 1 percent in the first nine months of 2024 compared to the year-ago period. Property crimes for the same nine-month period rose 2.3 percent. The department’s figures aren’t comprehensive for the county, given its jurisdiction is unincorporated areas and cities with contracts for its services.  

     

    Voter views on crime appear to to stretch beyond Los Angeles city limits, with Alameda County voters in the Bay Area seemingly on the same page as their SoCal counterparts. Pamela Price, who began her term as district attorney in 2023, is likely to be recalled based on returns counted as of Wednesday morning. A new district attorney would be appointed by the Board of Supervisors.

     

    “The voters of Los Angeles County have spoken and have said enough is enough of D.A. Gascón’s pro-criminal extreme policies; they look forward to a safer future,” Hochman said in a statement Wednesday.

     

    Hochman’s win was hardly a surprise with polls showing his consistent lead over Gascón. The UC Berkeley Institute of Governmental Studies and Los Angeles Times’ poll, released two days before the election, had Hochman leading by 25 points.

     

    The former Republican turned independent campaigned away from party lines and political ideology, arguing district attorneys should make decisions “solely on the facts and the law.”

    Read more

    LA County DA candidate Nathan Hochman visits luxury home brokers


    Industry writes big checks for Hochman in LA district attorney race


    LA Office Market Scrapes Bottom, Bounces Back With New Buyers

    LA office market “scraping” bottom, bouncing back with new buyers


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    Kari Hamanaka

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  • Jamison and Arc Capital to convert Koreatown offices into homes

    Jamison and Arc Capital to convert Koreatown offices into homes

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    For Jamison Services, 10 may be the magic number for Los Angeles office-to-home conversions, with its latest project set for Koreatown.

    The Koreatown-based developer and Downtown-based Arc Capital Partners announced plans to turn a 13-story office building at 3325 Wilshire Boulevard into 236 homes, the Commercial Observer and Urbanize Los Angeles reported.

    Jamison bought the 233,000-square-foot building in 2005 for $15 million, or $64 per square foot.

    Plans now call for converting the Mid-Century offices, built in 1956, into 236 studio, one- and two-bedroom apartments atop 15,000 square feet of ground-floor shops and restaurants. 

    A parking garage for 450 cars would be retained.

    Garrett Lee, president of parent company Jamison Properties, said the conversion of 3325 Wilshire is the company’s 10th adaptive reuse project to date. Along with ground-up development, those projects have delivered 6,000 units, with another 2,000 in the pipeline, Lee said in a statement.

    The office-to-home conversion is designed by Koreatown-based Corbel Architects, with Donaldson + Partners, based in Culver City, redesigning the interior.

    The converted building would include a gym, coworking office, screening room, golf simulator and an outdoor deck.

    Funding for the project includes $60 million in taxable multifamily housing revenue bonds from Western Alliance and First Hawaiian Bank.

    Residents are expected to move into the apartments in the next 18 to 24 months, according to Jamison. The cost of the conversion, and when it was approved by the city, were not disclosed.

    “There simply is not enough housing in Los Angeles to meet the demand, especially in Koreatown, as new residents from other parts of L.A. see the value in living in a 24/7 live-work-play environment in the heart of the city,” Jaime Lee, CEO of Jamison Properties, said in a statement.

    Koreatown is among the most densely populated neighborhoods in Los Angeles, with 110,000 people living within three square miles, according to Jamison, citing housing figures. Some 91 percent of its residents rent.

    For the past dozen years, the company founded by Dr. David Lee has been a Los Angeles leader in converting the city’s older workplaces into homes — turning 1.4 million square feet of offices into 1,200 apartments. 

    Such conversions now make up 20 percent of the Jamison portfolio.

    Although not an adaptive reuse project, Jamison won approval from the Los Angeles City Council last month for two 26-story, mixed-use buildings at 3600 Wilshire Boulevard in Koreatown, to replace a parking garage, according to the Observer. Plans call for 760 apartments and 6,400 square feet of shops and restaurants.

    Two years ago, Rand Corporation identified 2,300 underused office and hotel properties in Los Angeles County that could be converted to housing. Most of them are older office buildings with big chunks of unrented space, according to a study by the think tank.

    If all the underused buildings were turned into homes it would add up to 113,000 units, Rand said. That’s between 9 percent and 14 percent of the housing needed to meet demand by 2030.

    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.

    — Dana Bartholomew

    Read more

    Jamison picks LA courthouse for next office-home conversion


    LA landlords eye office-to-housing conversions


    Office-to-home conversions lead adaptive reuse projects across the state

    Office-home conversions lead adaptive reuse projects in California


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    TRD Staff

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  • City cites wildfire risk, axes $500M resi project in Anaheim Hills

    City cites wildfire risk, axes $500M resi project in Anaheim Hills

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    The City of Anaheim has killed a controversial plan by Salt Development to build nearly 500 luxury apartments in Anaheim Hills, citing the threat of wildfires.

    The Anaheim City Council voted 5-2 to reject the seven-story, 498-unit complex and 40,000 square feet of commercial buildings proposed for Deer Canyon, south of the 91 Freeway off of Santa Ana Canyon Road, the Orange County Register reported.

    The $500 million project, fought by neighbors, was approved late last month by the city Planning Commission.

    But city staff had recommended denying the 76-acre development known as Hills Preserve in the hilly neighborhood south of Yorba Linda, saying so many homes would hamper wildfire evacuations.

    Councilwoman Natalie Meeks, who represents Anaheim Hills, said the fear during wildfire evacuations is real — that it wasn’t right to put the buildings in an area designated by the state as a very high fire hazard severity zone.

    Plans by the Salt Lake City-based developer had called for a Mid-Century Modern-style building with 498 luxury apartments, from studios up to three-bedroom units. It was to include a rooftop pool, bowling alley and sauna.

    The project included a parking garage, six large-lot estate homes, plus two pads for 40,000 square feet of commercial buildings, likely medical offices and a restaurant.

    Salt was to develop one side of the property and donate 46 acres, or 60 percent of the land, to the city to expand its adjacent Deer Canyon Park Preserve. The 103-acre wilderness, acquired in 1994, is now used for hiking and horseback riding.

    The developer also upped its offer to $1 million, from $500,000, to fund affordable housing elsewhere in the city. It emphasized community fire protection, including plans to add fire hydrants, reduce vegetation and build retaining walls to help reduce fire risk.

    Brian Hobbs, co-founder of Salt Development, argued that wildfire evacuation concerns had been exaggerated by residents who didn’t want development in their backyards.

    “The opposition to this project is hammering away on fire safety and evacuation and inventing new facts and introducing new opinions because they know it’s emotional, scary and hopefully can scare the elected officials into rejecting a project,” Hobbs told the council.

    Salt Development had notified the city that if the Hills Preserve was denied it could invoke the state builder’s remedy, which allows developers to bypass local zoning rulings in cities that have failed to certify their state housing plans, providing they meet a threshold for affordable housing.

    The builder said it has builder’s remedy plans that call for 1,280 homes on the site, with the required 20 percent affordable units threshold.

    “After last night, we are reviewing all of our options regarding the property,” a spokesperson for the project told the Register.

    — Dana Bartholomew

    Read more

    Salt Development moves forward on $500M multifamily in Anaheim Hills


    Salt Development's Brian Hobbs and rendering in Deer Canyon, Anaheim Hills (Linkedin, Getty, Salt Development)

    Salt Development eyes 500 apartments in Anaheim Hills


    Los Alamitos Mayor Shelley Hasselbrink, Huntington Beach Mayor Barbara Delgleize, and Laguna Hills Mayor Dave Wheeler (City of Los Alamitos, City of Huntington Beach, City of Laguna Hills, Getty)

    OC cities hustle to avoid builder’s remedy “travesty”


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    TRD Staff

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  • Douglas Elliman’s California business caught in legal crossfire

    Douglas Elliman’s California business caught in legal crossfire

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    Two Los Angeles Superior Court lawsuits, while ultimately filed this month for different reasons, offer similar claims against Douglas Elliman and some of its executives, accusing the brokerage’s California businesses of engineering kickbacks for select agents and rule-bending to the benefit of the Altman Brothers Team.

    The brokerage isn’t sitting quietly by and smacked back in a lawsuit of its own last week.

    The in-fighting in L.A. court places Douglas Elliman’s California business under a microscope amid scrutiny of its national operations with the abrupt departure of CEO Howard Lorber.

    Former Newport Beach office Executive Manager of Sales Christina Carrillo and William Grasska, former president of Douglas Elliman’s Portfolio Escrow, each describe in their lawsuits incidents of credits not being reported on closing statements leading to inflated commissions for some agents.

    Carrillo, who resigned earlier this month, also accuses the Altman Brothers — helmed by brothers Josh Altman and Matt Altman — of soliciting clients from other agents’ and brokers’ active listings. The Altmans are not named as defendants in any of the litigation.

    When Carrillo’s concerns about the Altmans were brought up to Western Region CEO of Brokerage Stephen Kotler, she received pushback, her lawsuit said.

    “Enough Christi. I have made millions from the Altman Brothers, so shut up. If other agents and brokers get fucked over, I don’t care, so be it,” the lawsuit alleges Kotler said.

    Carrillo did not respond to requests for comment.

    She’s suing Douglas Elliman of California and Douglas Elliman of California Financial, along with Kotler for sexual harassment and retaliation, among other allegations.

    The brokerage and Kotler declined comment. Josh Altman did not respond to a request for comment.

    Grasska alleges similar rebuke from the company when it came to allegations of managers at the brokerage’s Portfolio Escrow business being asked “to inflate a closing statement to allow the Altmans to earn more commissions,” the lawsuit said.

    Grasska, who started Portfolio Escrow in 2009 and sold it a decade later to Douglas Elliman, did not respond to requests for comment.

    The executive’s lawsuit is against Douglas Elliman’s California brokerage and financial subsidiaries, in addition to Kotler, escrow officer Melinda Topete, Western Region Chief Operating Officer of Brokerage William Begert and escrow officer Renee Mills. He’s suing for retaliation, breach of contract and defamation, among other accusations.

    Topete and Mills did not respond to requests for comment.

    Grasska’s suit includes broader allegations against his former escrow company, which he said in his lawsuit is currently under audit by the California Department of Financial Protection and Innovation.

    A DFPI spokesman declined to comment on Grasska’s audit allegation.

    Grasska alleges agents were incentivized with higher commissions and marketing spend increases to use Portfolio Escrow, without disclosure to customers.

    Pushing back

    Douglas Elliman views the situation differently and said in a lawsuit of its own filed last week in L.A. Superior Court that Grasska was under investigation for kickbacks, in addition to charging “expensive meals and lavish hotel stays” on his corporate credit card and creating a 1031 exchange company called Sienna Financial that violated his non-compete agreement with the firm.

    Part of the investigation, the brokerage alleges, found that Grasska was working with one of Portfolio Escrow’s accountants to create fake invoices for services never provided.

    “This scheme was designed to illegally obtain money belonging to Portfolio to pay off penalties assessed by the IRS” that Grasska needed to deal with a “personal transaction he carelessly ran through Portfolio,” the brokerage’s lawsuit said.

    Added to that are accusations Grasska conspired with a “real estate broker that is now a star of a reality television show” to pay the broker kickbacks in exchange for business, Douglas Elliman alleges.

    The firm is suing the escrow executive for breach of contract, civil embezzlement, fraud and negligence, among other complaints. It also hinted additional lawsuits “are being prepared against Bill Grasska’s co-conspirators,” while also stating in court documents the DFPI, California Department of Real Estate, Los Angeles Police Department and Internal Revenue Service have been notified. 

    The California drama plays out against the background of the executive shakeup at Douglas Elliman, starting with Lorber’s departure last week. The company said in an announcement on the leadership change that Lorber was retiring, adding in a Securities and Exchange Commission filing the exit had nothing to do with any disagreement. The Wall Street Journal reported the CEO was pushed out amid a board probe into the brokerage’s broader workplace culture and accusations of sexual assault by former Douglas Elliman brokers and brothers Tal and Oren Alexander.

    Michael Liebowitz now helms the brokerage as chair and CEO. Liebowitz announced more change within the ranks on Monday when staff and agents were informed of Douglas Elliman Real Estate CEO Scott Durkin’s immediate departure to “pursue new opportunities,” according to the email announcement reviewed by The Real Deal. A filing with the Securities & Exchange Commission states Durkin was terminated.

    An attorney for Durkin, John Singer, told TRD this week Durkin “never at any time engaged in conduct justifying a termination, nor was he ever apprised that his employment was in peril.”

    Read more

    Howard Lorber is retiring from Douglas Elliman


    Elliman terminates brokerage CEO Scott Durkin


    Douglas Elliman’s Board Urged Howard Lorber To Retire

    Elliman’s board pushed Howard Lorber to resign over culture concerns


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    Kari Hamanaka

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  • Tomer Fridman lands at Christie’s International Real Estate SoCal

    Tomer Fridman lands at Christie’s International Real Estate SoCal

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    Superstar L.A. agent Tomer Fridman has taken his team to Aaron Kirman’s Christie’s International Real Estate Southern California.

    Fridman announced the news on social media Wednesday, putting an end to questions of where the luxury agent would take his business following his abrupt departure from Compass last Friday. He joins Christie’s International Real Estate Southern California as executive director of private wealth and luxury estates. He and his team with bring about $1 billion in listings to their new agency.

    The Beverly Hills-based brokerage is helmed by CEO Aaron Kirman, who launched the business in 2022. Fridman joins a brokerage that also includes other high-profile agents, including Cindy Ambuehl, Shelton Wilder, Timothy Prizito and Dalton Gomez.

    Fridman’s team, The Fridman Group International, adds 12 people to the brokerage. That includes his mother Isidora Fridman, who is also the founding partner of Israel Sotheby’s International Realty.

    Fridman declined to comment further on his move through a Christie’s International Real Estate Southern California spokesperson.

    But in his social media announcement, he cited his new brokerage’s global brand and international reach, giving “clients an elevated experience tailored to their evolving needs.”

    “I am grateful to Compass for the remarkable journey we’ve had together that allowed my brand to grow from Calabasas and Hidden Hills to Beverly Hills and the Platinum Triangle,” Fridman said in his post. “Those years laid a strong foundation, and I am proud of everything we accomplished.”

    Fridman went on to say he had been considering the move “for some time.”

    He also shared that he and Compass agent Sally Forster Jones would continue “our very successful collaboration with even broader reach and influence.”

    Fridman and Forster Jones began building a mega team this year, merging their respective groups in April to form Jones Fridman International. They added the seven-person Straser Silicon Valley team in June to expand into Northern California luxury markets such as Atherton, Palo Alto and Menlo Park. At the time, Jones Fridman counted 45 agents with $25 billion in sales.

    At the time of the Straser merger, Fridman and Forster Jones told The Real Deal that they were also looking at markets such as New York, Miami, Nashville, Montecito, Aspen and Orange County for expansion.

    An abrupt shakeup of their group occurred Friday when Parker Beatty, Compass regional vice president of Southern California and Hawaii, announced to staff and agents Fridman’s departure from the firm. The split was effective immediately, according to the email announcement reviewed by TRD.

    Compass declined comment Monday on Fridman’s departure. Forster Jones did not return a call seeking comment.

    Fridman made a name for himself in L.A.’s luxury market with a high-profile client roster that has included Khloe Kardashian, boxer Sugar Ray Leonard, former BCBGMaxAzria Group chief creative officer Lubov Azria, Sylvester Stallone and Pamela Anderson.

    Read more

    Tomer Fridman out at Compass


    Aaron Kirman Drops AKG in Brokerage Rebrand

    Aaron Kirman shelves AKG name in brokerage rebrand


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    Kari Hamanaka

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  • VA appeals court order to build more homes at West LA campus

    VA appeals court order to build more homes at West LA campus

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    The VA will fight a federal court order that it build thousands of homes for military veterans at the West L.A. VA Campus.

    The U.S. Department of Veterans Affairs has said it will appeal Judge David O. Carter’s decision to have the department foot the bill for the building of emergency veteran housing at 11301 Wilshire Boulevard, LAist reported. The appeal was expected to be filed this week.

    The appeal came as U.S. District Judge David O. Carter shot down UCLA’s bid to delay an emergency order for the construction of veterans housing on parking lots next to the university’s shuttered Jackie Robinson Stadium at the VA campus.

    Carter had previously ordered that the Department of Veterans Affairs immediately design homes for vets on the paved lots on the 388-acre facility.

    Brad Rosenberg, attorney for the VA, argued Friday that the housing payment will cause irreparable harm to department funding. Carter responded by saying that housing construction must continue.

    “Until I get a stay from the Ninth Circuit, we go forward,” the federal judge declared, adding that he wants quick work to bring veterans indoors before the rainy season.

    His decision followed a month-long federal trial in August filed by homeless veterans and those with disabilities. The vets, who had challenged land lease agreements to UCLA and other entities operating on the VA campus, sought housing for veterans in need.

    The judge, an 80-year-old Marine Corps veteran who was so injured in a Vietnam War battle that he was put in a body bag, found for the veterans.  

    On Sept. 6, Carter issued two emergency orders to speed up the creation of temporary modular housing on the campus.   

    During the non-jury trial, the VA argued that it was out of room on its sprawling campus — and that the lack of acreage precludes an increase to the 1,200 housing units the agency promised to open by 2030. 

    VA attorneys alleged any relief ordered by the court would burden the department financially and deprive it of the flexibility needed to solve veteran homelessness.

    The court, however, found that veterans are entitled to 2,550 more homes on the campus.

    Carter directed the VA to build 750 units of temporary housing within 18 months and to form a plan to add another 1,800 units of permanent housing to the roughly 1,200 units already in planning and construction under the settlement terms of an earlier lawsuit.

    After finding that land-use agreements with UCLA’s baseball team, the affluent Brentwood School, an oil company and other private interests on the West L.A. campus were illegal, Carter terminated the leases.

    The court is now devising “exit strategies” for former tenants in order to ensure the land — including 10 acres leased to UCLA and 22 acres to the Brentwood School — is put to a use that principally benefits veterans.

    Carter wrote that instead of serving veterans, “the West LA VA has served its wealthy and powerful neighbors, bowing to private interests backed by lobbyists and engaging in back-room deals and fraud.”

    — Dana Bartholomew

    Read more

    Federal judge denies UCLA bid to delay affordable housing 


    Judge Orders Housing Development on VA’s West LA Campus

    Housing crunch delivers punch to LA’s upper crust at VA campus


    Suit Seeking Homes at the VA West LA Campus May Go to Trial

    Veterans’ lawsuit seeking homes at the VA West LA campus may go to trial


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    TRD Staff

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  • How affordable in Long Beach?

    How affordable in Long Beach?

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    West Hollywood Community Housing wants to build a 73-unit affordable apartment complex in Long Beach.

    The West Hollywood-based nonprofit developer has filed plans to build the two-, three- and five-story buildings at 3401 Cerritos Avenue, north of the 405 Freeway, Urbanize Los Angeles reported, citing a new environmental report.

    They would replace a windowless commercial building.

    Plans call for the trio of buildings at Cerritos and Wardlow Road, west of Long Beach Airport, containing one-, two-, and three-bedroom apartments and underground parking for 103 cars.

    All of the apartments would be affordable, save for a legally-required manager’s unit. The  affordability levels were not disclosed.

    Deed-restricted housing generally ranges from affordable units set aside for very-low-income  households earning less than 50 percent of area median income; low-income households earning between 50 and 80 percent of AMI; and “workforce housing” for moderate-income households earning between 80 percent and 120 percent of AMI, according to California Community Builders.

    The white and brown complex, designed by L.A.-based Urban Architecture Lab, would include a courtyard, community room, fitness room and  laundry facilities.

    Construction is expected to start next fall and be completed in 2026. A cost of the project was not disclosed.

    West Hollywood Community Housing, founded in 1986, runs 22 affordable housing complexes with 785 apartments, according to its website.

    In April, the City of Long Beach 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 proposed building a 100-unit affordable housing complex.

    — Dana Bartholomew

    Read more

    Long Beach ups zoning so Linc Housing can build affordable apartments


    WeHo nonprofit developer scores construction loan on resi complex


    Long Beach to help homeowners build backyard granny flats

    Long Beach to help homeowners build granny flats


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    TRD Staff

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  • Federal judge denies UCLA bid to delay affordable housing 

    Federal judge denies UCLA bid to delay affordable housing 

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    Here’s a scorecard on affordable residential development to check before the World Series gets started tonight at Dodger Stadium.

    Housing for military veterans at Jackie Robinson Stadium at the VA campus in West Los Angeles: 1.

     UCLA, which leases the site of the 10-acre stadium: 0.

    The umpire in this matter is a federal judge who has rejected UCLA’s bid to delay an emergency order for the construction of veterans housing on parking lots next to the university’s shuttered ball yard at 100 Constitution Avenue, City News Service reported.

    U.S. District Judge David O. Carter previously ordered that the U.S. Department of Veterans Affairs immediately design homes for vets on the paved lots on the 388-acre West L.A. VA Campus.

    Carter’s Oct. 7 emergency order held that “with fall and winter approaching and with thousands of homeless veterans still living on the streets, an emergency exists.”

    This week, the judge said the situation requires “immediate and streamlined action in order to build and make ready for occupancy temporary supportive housing on (the) VA campus as soon as possible.”

    Attorneys for the university recently sought to intervene into a broader lawsuit and delay construction of temporary housing on stadium parking lots — a motion filed by the university after veterans’ claims challenging UCLA’s lease were litigated by the court.

    Carter’s decision follows a month-long federal trial in August filed by homeless veterans and those with disabilities. The vets, who had challenged land lease agreements to UCLA and other entities operating on the VA campus, sought housing for veterans in need.

    The judge, an 80-year-old Vietnam war vet, found for the veterans, according to City News.

    During the non-jury trial, the VA argued that it was out of room on its sprawling campus — and that the lack of acreage precludes an increase to the 1,200 housing units the agency promised to open by 2030. 

    VA attorneys alleged any relief ordered by the court would burden the department financially and deprive it of the flexibility needed to solve veteran homelessness.

    The court found that veterans are entitled to more than 2,500 units of housing at the campus.

    After finding that land-use agreements with UCLA’s baseball team, the affluent Brentwood School, an oil company and other private interests on the West L.A. campus were illegal, Carter terminated the leases.

    The court is now devising “exit strategies” for former tenants in order to ensure the land — including 10 acres leased to UCLA and 22 acres to the Brentwood School — is put to a use that principally benefits veterans.

    Carter recently directed the VA to build 750 units of temporary housing within 18 months and to form a plan to add another 1,800 units of permanent housing to the roughly 1,200 units already in planning and construction under the settlement terms of an earlier lawsuit.

    The judge said the VA, with an annual budget of $407 billion, has “quietly sold off” land badly needed for homeless military veterans.

    UCLA remains locked out of the stadium on the VA’s grounds, its Bruins baseball team practicing on fields in the San Fernando Valley.

    — Dana Bartholomew

    Read more

    Housing crunch delivers punch to LA’s upper crust at VA campus


    Suit Seeking Homes at the VA West LA Campus May Go to Trial

    Veterans’ lawsuit seeking homes at the VA West LA campus may go to trial


    VA taps development team for planned housing community


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    TRD Staff

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  • Cityview seizes state density bonus to supersize Westchester apartment project

    Cityview seizes state density bonus to supersize Westchester apartment project

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    Cityview will employ a state density bonus to build more apartments with fewer affordable units at a proposed eight-story complex in Westchester.

    The Century City-based multifamily developer led by Sean Burton will use Assembly Bill 1287 to file revised plans for a 489-unit apartment building at 6136 West Manchester Avenue, Urbanize Los Angeles reported.

    Its previous proposal called for an eight-story building with 441 apartments, 16,000 square feet of ground-floor shops and restaurants and parking for 549 cars. 

    The developer would have used a density bonus to build a larger building than zoning rules allow in exchange for 66 units of affordable housing for very low-income households.

    But then came AB 1287, which went into effect this year, allowing developers to include up to twice as many units in a project as local zoning allows, as long as it includes a certain percentage of affordable housing.

    So Cityview re-penciled its plans — factoring in a density bonus of 85 percent after the law, versus 67 percent before.

    The result: an 11 percent increase in apartments allowed by the new density bonus law, with a 3 percent reduction in affordable housing, to 64 units.

    The move joins a growing number of developers adding more units to make their projects pencil out because of tough market conditions.

    The size of the building, designed by Downtown L.A.-based AC Martin, would stay the same. The boost in density would come by cutting the number of one- and two-bedroom units for more studio apartments.

    The gray and white project, to serve as a gateway to the neighboring Westchester Town Center, would include a podium-level courtyard, numerous terrace decks and a pool.

    Pending approvals, construction is expected to begin next year, with completion expected in 2027.

    The project may set the table for redevelopment of other sites on the east side of Sepulveda Boulevard, according to Urbanize. Developments are set to replace parking and commercial buildings in the adjoining retail district with senior apartments and affordable housing.

    Cityview, founded in 2003, has invested in 130 apartment complexes and now has 6,000 units under management in California, Oregon, Washington, Utah, Colorado, Arizona and Texas, according to its website.

    In January, the firm bought six apartment buildings in Los Angeles and West Hollywood from New York-based Blackstone for a combined $63 million.

    — Dana Bartholomew

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    TRD Staff

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  • Residential deals drive Measure ULA revenues, report finds

    Residential deals drive Measure ULA revenues, report finds

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    Measure ULA proponents may have justification for the nickname “mansion tax.”

    Single-family residential transactions account for the largest bucket of money generated so far by the property transfer tax.

    Revenue from the residential category totaled $11.6 million, or 59 percent of the total, in September, according to the most recent data available from the Los Angeles Housing Department. Residential’s lead is a trend that has held since Measure ULA went into effect last April, with the segment accounting for nearly 39 percent, or $156.6 million, of total funds raised to date.

    Source: Los Angeles Housing Department

    Currently, ULA imposes a 4 percent tax within the city of Los Angeles on properties sold for $5.15 million or more. For deals of $10.3 million or more, a 5.5 percent tax goes into effect. Each year those thresholds are updated in line with the Consumer Price Index.

    Commercial in September was the laggard of the property types in terms of revenue generation, bringing in $4.5 million across four deals. Since the start of ULA, commercial deals generated $112.4 million from 126 transactions.

    Source: Los Angeles Housing Department

    Revenue from multifamily is reported separate from commercial, with one transaction last month that brought in $4.7 million. Multifamily deals have totaled 63 transactions since Measure ULA’s start, equating to $48.1 million in revenue.

    The ZIP codes with the highest number of transactions since implementation are 90272, which is Pacific Palisades, and 90049, which includes neighborhoods such as Bel-Air and Brentwood.

    Voters approved Measure ULA in November 2022, with the ballot initiative originally projected to bring in $600 million to $1.1 billion annually to fund affordable housing, homeless prevention and tenant assistance programs. Media and proponents labeled it a “mansion tax.” The ballot initiative also created a Citizens Oversight Committee, which held its October meeting this week, to function as a watchdog.  

    The program has missed on its initial revenue estimates with $296.7 million collected in the 2024 fiscal year ended in June.  

    Still, a report released in April and co-authored by individuals from Occidental College, UCLA and USC largely applauded ULA as “effective in improving housing conditions” in the city. The report, called “Measuring LA’s Mansion Tax,” cited $54.7 million in development projects being funded by ULA and another $24 million in rental assistance as some examples of that efficacy. 

    For real estate, agents have reported a cooling of sales activity because of the tax, or in the case of residential, deals shifting to cities other than Los Angeles, such as Malibu or Beverly Hills, to avoid the issue. Brokers say some sellers have largely accepted that the tax is not going away any time soon.

    Nourmand & Associates President Michael Nourmand described to The Real Deal two different client perspectives in relation to Measure ULA. One client told Nourmand he will no longer buy property within the city. Another is happy because they have no plans to sell and, therefore, don’t have to think about paying the tax.

    “For a lot of people, it has postponed things,” Nourmand said.

    Studies on the tax’s business implications beyond real estate are also missing from the conversation, Nourmand pointed out. That includes the impact of deal contraction on title and escrow companies, inspectors, contractors, cleaning crews and other industries.  

    Christie’s International Real Estate Southern California CEO Aaron Kirman said about as much during TRD’s LA Real Estate Forum last month.

    “I think the city eventually is going to realize they’re losing billions of dollars to make a couple hundred million,” Kirman said. 

    Read more

    LA luxury agents reach for optimism in a turbulent market


    LA luxury agents sound off on NAR, Measure ULA


    Ballot Measure to Overturn ULA Struck Down by Court

    Ballot measure to overturn ULA struck down by California Supreme Court


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    Kari Hamanaka

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  • LA County DA candidate Nathan Hochman visits luxury home brokers

    LA County DA candidate Nathan Hochman visits luxury home brokers

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    Los Angeles County District Attorney candidate Nathan Hochman made the rounds this week to luxury brokerages, receiving warm welcomes from The Beverly Hills Estates and The Oppenheim Group.

    Monday evening saw a crowd of about 175 gathered at The Oppenheim Group’s Sunset Boulevard office in West Hollywood to hear from the former federal prosecutor, who is making an appeal to voters concerned with crime and public safety issues.

    The following day Hochman made a stop at The Beverly Hills Estates office, also on Sunset Boulevard, with his visit touted on the brokerage’s social media channels.

    Beverly Hills Estates founders Rayni Williams and Branden Williams did not respond to a request for comment on the visit. 

    Hochman is facing off against incumbent L.A. District Attorney George Gascón, who was elected in 2020 as progressive with policies focused on criminal justice reform.

    Among the Oppenheim event’s guest list were about 50 agents, many of them from the brokerage, in addition to clients and what President Jason Oppenheim described as concerned citizens. Los Angeles City Councilmembers Traci Park and John Lee, in addition to former city councilman Joe Buscaino, also spoke at the gathering.

    “I think we’re all going to wake up the day after the election to the mandate that was given to Hochman and that is Los Angeles has rejected the policies of George Gascón,” Oppenheim said. “I think that’s going to be a huge headline the day after the election and I think that’s a real positive for the city. A lot of people think there needs to be change.”

    Oppenheim said he has seen more clients leave the city in the past two years, citing crime, than what he saw in the previous decade.

    Those who choose to remain in California have flocked to buying property in Newport Beach, Montecito and Malibu, according to Oppenheim. Those who leave the state often head for Miami, Austin, Nashville or Las Vegas.

    “Crime has done a lot of damage to the luxury real estate market, and it has done a lot of damage to our city,” he said. “You can see it vividly in the Los Angeles real estate market.”

    Read more

    Jason Oppenheim lambasts Compass’ Robert Reffkin over Clear Cooperation


    “Criminal Ring of Squatters” Party in Beverly Crest Mansion

    “Criminal ring of squatters” enjoy Beverly Crest home listed at $4.6M


    LA Councilman Curren Price (Getty)

    LA Councilman Curren Price faces development corruption charges 


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    Kari Hamanaka

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  • Celebrity-studded LLC pays $50M for Oscars venue Dolby Theatre

    Celebrity-studded LLC pays $50M for Oscars venue Dolby Theatre

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    The Dolby Theatre, venue for the Oscars, has traded hands after a year on the market.

    JEBS Hollywood Entertainment, a limited liability company headed by Hollywood producer Elie Samaha, bought the 3,400-seat theater at 6801 Hollywood Boulevard, according to brokerage Avison Young.

    The price was about $50 million, a source with knowledge of the transaction told TRD.

    That’s a far cry from the $94 million it took to construct the David Rockwell-designed theater in 2001. It went on the market in October 2023 and was expected to sell for about $70 million, Bloomberg reported at the time.

    The 180,000-square-foot property, which includes two adjacent parking lots, has hosted the Academy Awards for more than two decades.

    The seller was the California Public Employees’ Retirement System  or CalPERS, a public pension fund.

    On the buy side, Avison Young lists a rather eclectic group of investors convened to form JEBS Hollywood Entertainment. It includes former Sony Pictures President Jeff Sagansky, who was previously reported as a competitor to Samaha in negotiations to buy the Dolby Theatre. 

    The list also features Sheikh Abdulla Bin Mohamed Al Qasimi, an entrepreneur and member of the United Arab Emirates’ Al Qasimi royal family; Sherwin Jarol, CEO of real estate investment firm SMB Bradley; Jonah Lazowski, son of LAZ Parking CEO Alan Lazowski; and Two Girls Holdings, a shell company registered in Delaware.  

    Castellan Real Estate Partners provided JEBS a $27 million loan to finance the purchase, according to the source close to the deal. Terms of the loan were not disclosed. 

    Slatt Capital’s Antonio Hachem, Cornelius Baliukonis and Wendy Wang arranged the financing and did not respond to requests for comment. 

    Samaha, for his part, is no stranger to operating theaters. The “Boondock Saints” producer also owns Grauman’s Chinese Theatre on the Hollywood Walk of Fame, and revealed his intention to buy the Dolby Theatre in July, setting a rumor mill in motion until Avison Young announced the deal this week.

    Avison Young’s Christopher Bonbright, who arranged the deal for JEBS, described the company as “an ideal synergistic owner-operator” in a statement.

    JLL’s Will Poulsen and Peter Hajimihalis represented CalPERS and its real estate manager, Canyon Partners, along with Muhlstein CRE’s Carl Muhlstein. A spokesperson for JLL did not respond to a request for comment and Muhlstein declined to comment.

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    Abigail Nehring

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  • UCLA benefactors’ Beverly Park manse makes market debut at $27M

    UCLA benefactors’ Beverly Park manse makes market debut at $27M

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    UCLA sports benefactors Nahum and Alice Lainer have listed their Beverly Park estate for $26.5 million, marking the first time the property has gone up for sale.

    The Lainers built the roughly 8,000-square-foot home at 28 Beverly Park Terrace in 1995, one of the first houses constructed in the gated community that’s home to celebrities such as Adele, Rod Stewart, Denzel Washington and Justin Bieber.

    Coldwell Banker Realty’s Steve Frankel, who has the listing, described the property as Palladian and reminiscent of a Tuscan villa.

    28 Beverly Park Terrace (Anthony Barcelo)

    The Mediterranean-style home sits on a 2.7-acre lot with four beds and seven baths. A pool, gardens, fruit trees and enough space for 10 cars are among the estate’s amenities.

    Frankel, who spoke with The Real Deal Friday morning just ahead of showings at the property, said it has attracted strong interest.

    “We are getting so much activity on it because we are priced right,” Frankel explained. “For you to be able to buy into Beverly Park at this price point is rare and hasn’t happened in years.”

    UCLA Benefactor Couple Lists Beverly Park Estate for $27M
    28 Beverly Park Terrace (Anthony Barcelo)

    Last year, Mark Wahlberg’s home in the gated neighborhood sold for $55 million, after originally asking nearly $88 million in 2022. Sylvester Stallone sold his Beverly Park mansion last year to Adele for $58 million. The home originally listed for $110 million in 2021.

    Most recently, a 16,000-square-foot mansion at 51 Beverly Park Way, with a $48.5 million ask, went into contract. In May, a 28,500-square-foot mansion at 73 Beverly Park Lane was listed for $89.9 million. There’s also the 23 Beverly Park Terrace home owned by Rod Stewart, which hit the market last June. It saw a price cut to $74 million in February before being taken off the market, according to Zillow.  

    Their home listing is the latest real estate move this year by the Lainers.

    In March, the two paid $7.8 million for Unit 20C at the Wilshire House in what marked, at the time, Los Angeles County’s priciest condo sale. The 5,400-square-foot unit spans the entire floor of the ritzy luxury tower and has three beds and five baths.

    The philanthropic couple are long-time supporters of UCLA’s athletic program. They met while earning their undergraduate degrees at the school and cheered for the Bruins basketball team on their second date. Their contributions to the college include establishing a UCLA men’s basketball scholarship program in 1990 and going in with a group of other supporters on a fund focused on recruiting top coaching talent. 

    In recognition of their gifts, UCLA’s athletic director’s formal job title is The Alice and Nahum Lainer Family Director of Athletics.  

    Read more

    Beverly Park French Chateau listed at $48.5M tops LA contract list


    Saudi Prince’s Former Mansion in Beverly Park Seeks $90M

    Paradigm asks $90M for Beverly Park estate once owned by Saudi prince


    Rod Stewart Cuts $6M Off Price of Beverly Park Manor

    Rod Stewart cuts $6M off price of Beverly Park manor


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    Kari Hamanaka, Christian Bautista

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  • More than half of California renters challenged by housing costs

    More than half of California renters challenged by housing costs

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    More than half of California tenants strain to pay their rent, while more than a third of homeowners are burdened by housing costs.

    Last year, 56 percent of statewide renters spent 30 percent or more of their income on housing, the fifth-highest share among the states, the Orange County Register reported, citing figures from the U.S. Census Bureau. At the same time, 35 percent of homeowners spent a similar proportion, the second highest in the U.S.

    Across the nation, 52 percent of renters faced such budget stresses, compared to 25 percent of owners.

    Anyone paying 30 percent or more of their income on housing bears a housing-cost burden, according to the Register.

    When it comes to renters, Florida was the No. 1 state for burdened tenants, at 62 percent, followed by Nevada and Hawaii at 57 percent, and Louisiana at 56 percent. Texas ranked No. 12 at 53 percent.

    Renters in the Thirty Percent Club fared best in North Dakota at 37 percent, South Dakota and Wyoming at 41 percent and Kansas and Nebraska at 44 percent.

    California ranked No. 1 with 3.2 million renters in the 30 percent affordability bracket, making up 15 percent of the nation’s 22 million, according to the Register.

    As for homeownership, only Hawaii’s 36 percent share of stressed owners topped the Golden State. Florida was No. 3 at 31 percent, followed by New York at 30 percent and New Jersey at 29 percent. Texas was No. 14 at 26 percent.

    Owners overall faced the lowest financial pressure in West Virginia at 16 percent, North Dakota at 17 percent, followed by Indiana, Ohio and Iowa at 19 percent.

    The rest of the nation is catching up to the Golden State’s housing-cost challenges.

    Read more

    Median price for a California home soars past $900K, a record


    New Homes Don’t Cure Affordability in California

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    San Francisco

    New homes don’t cure affordability in California, study finds


    Number of Affordable Homes Plunges Across California

    Residential

    San Francisco

    Number of affordable homes plunges across California


    In  2019, the growth of California renters spending 30 percent or more on housing grew 7 percent. California now ranks No. 35 among the states and was below the nation’s 11 percent expansion.

    When it comes to high-payment homeowners, California’s grew 12 percent from 2019, compared with a 19 percent increase nationally. The largest jump in cost-challenged ownership was in Florida, up 35 percent, followed by Kansas, Texas, North Dakota, and Oklahoma at 34 percent.

    — Dana Bartholomew

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    TRD Staff

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