Irvine Firm Outbids Trump for Westside Parcel
The Donald got trumped.
An Orange County land developer said Thursday that it had outbid Donald Trump and his partner for a vacant parcel of prime Westside real estate, agreeing to pay one of the highest per-acre prices ever in the Los Angeles region.
Irvine-based SunCal Cos. bid $110.2 million, beating Trump’s final offer by $200,000. Opening bids started at $45 million.
The all-cash deal works out to about $1,056 a square foot for slightly more than two vacant acres that lie just beyond the Beverly Hills city limits on Santa Monica Boulevard in Century City. By comparison, prime land in downtown Los Angeles averages $500 a square foot.
“This piece of property is the jewel of California,” said Frank Faye, SunCal’s regional president.
SunCal, a developer of suburban tract-home communities, said it planned to ready the parcel for a high-rise condominium, the kind of project Trump is known for. Trump reportedly wanted to put a hotel there.
“It’s not Beverly Hills but it’s a primo location,” said Tony Azzi, vice president of investments for real estate broker Marcus & Millichap’s Westside office. Land in Beverly Hills has sold for as much as $2,000 a square foot in recent years, he noted.
Trump’s partner, New York development giant Related Cos., conceded that the auction price became too rich.
“Every bid has its limit and we felt this had reached its limit,” said Bill Witte, president of the California development group for Related, which is working on a project on Grand Avenue in downtown Los Angeles.
Trump’s office did not return calls seeking comment.
Faye said SunCal might consider a hotel and stores in addition to the planned condos, but declined to discuss the company’s plans in detail. SunCal must get the site, which once housed the popular Jimmy’s restaurant, rezoned for residential use. It also faces competition from other condo developments, including Related’s.
There is also the prospect of opposition from nearby homeowners concerned about congestion and the impact on the adjacent Beverly Hills High School.
Privately held, family-run SunCal has been turning California land into new-home communities since the 1930s. More recently, the firm has specialized in creating so-called master-planned communities, which feature parks, recreation centers, trails, retail space and other amenities spread over hundreds of acres. One of its projects is Ritter Ranch in Palmdale, where SunCal is creating infrastructure to support 7,200 new homes.
SunCal’s new Los Angeles project, at 10000 Santa Monica Blvd., would be the company’s highest-profile and most urban undertaking to date, Faye said. The compact location bordering one of the busiest boulevards in the city also would require SunCal to modify its usual suburban housing model and build up instead of out.
“This is a fantastic location to create not only a vertical master-planned community but also a home for people that is close to where they work, shop and play,” Faye said. The site is within walking distance of the Peninsula Hotel and the Los Angeles Country Club.
SunCal was one of four bidders for the parcel, which was auctioned in Bankruptcy Court. Trump and Related began as separate bidders, but by the 51st round of the auction, the two parties had joined forces, said Bob Moore, a lawyer who represents the parcel’s owner, Malibu developer Lawrence Taylor.
By the 52nd round, SunCal emerged as the winner, he said.
“We’re very pleased with the outcome,” said Moore, who had believed that the final price would be closer to $75 million.
Trump may not be so pleased, but he has other things to worry about. His once highly rated television show, “The Apprentice,” has been flagging in the ratings.
