Management of Marina del Rey

I have been reading with great interest the series on the evolving economic concerns at the Marina. It would be very interesting to understand how Stephen Dietrich has arrived at this conclusion that “ . . . a fair annual return for an owner of a good parcel of commercial real estate is 8% to 9% of the value of the land” (April 14).

Currently Lincoln Boulevard owners, adjacent to and in the immediate Marina vicinity, would be very satisfied with ground leases yielding less than 7%.

Historically, ground leases in the Marina area have generated yields in the 7% to 8% range; this return has diminished in concert with the current economy. Ground leases are a low-risk investment to the fee owner and their yields adjust accordingly.

I am a commercial real estate broker with over 23 years’ experience on Lincoln Boulevard in the immediate Marina area. I have been involved in commercial sales, leasing, development and management since 1968.

JACK GROSS

Venice