Big-Deal Players
Even as the commercial real estate industry reaches new heights of sophistication in complex transactions and high-profile developments, it remains at its core a business driven by personal relationships.
Real estate deals still hinge on reputations and carefully cultivated connections. In short, it’s a “people” business that attracts engaging characters who pursue dramatic accomplishments and compete for vast sums of money.
With the market ready to roar into 1998, The Times asked local commercial property pros who they will be keeping an eye on in the year ahead. The following list is a sampling of the more “watchable” players expected by industry experts to make news.
The Investors Buying Up Properties
* Dan Emmett and Jordan Kaplan
* President and chief financial officer, Douglas Emmett Realty Advisors, Brentwood
* Background: Have ranked among the most active buyers of high-quality office buildings, mostly on the Westside, as the market bottomed out and began recovering.
* Why watchable: They continue to frequently outbid other buyers, such as with the recent $125-million-plus acquisition of Wilshire Landmark II in Brentwood, and still have deep financial backing from loyal institutional investors.
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* Richard Ziman and Victor Coleman
* Chairman and president, Arden Realty Inc., Beverly Hills
* Background: Seasoned commercial property investors/operators assembled extensive office portfolio during recessionary days, before tapping into the public market as a REIT--and continuing the buying spree.
* Why watchable: They’re still spending gobs of Wall Street funds on local properties, although some insiders think they may get a takeover offer they can’t refuse from a bigger East Coast REIT.
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* Steve Plenge
* Director of West Coast acquisitions, Federal Realty Investment Trust, Santa Monica
* Background: Veteran local real estate pro now helping big East Coast-based retail REIT pursue opportunities, such as just-closed $43.5-million acquisition of Rolling Hills Estates shopping center.
* Why watchable: Expected to continue accumulating a noteworthy local portfolio, such as space along Santa Monica’s Third Street Promenade and in Old Pasadena.
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* Jeff Nickell
* Vice president, Spieker Properties Inc., Pasadena
* Background: Heads new L.A.-area office of what is probably the West Coast’s most prolific buyer of suburban office and industrial real estate today.
* Why watchable: Company expected to acquire local developer Shurl Curci’s extensive Transpacific Development Co. portfolio. Expect Spieker to continue to corner their favorite markets--Burbank, Glendale, Pasadena and the Westside for starters.
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* Peter Adams
* Vice president/regional manager, Equity Office Properties, downtown Los Angeles
* Background: Key local executive of nation’s biggest office REIT, which has acquired two major new downtown office towers since mid-1996.
* Why watchable: Contrary to EOP Chairman Sam Zell’s posturing, the company has indeed discussed participation in select development ventures, along with choice acquisitions.
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* Scott Davis
* Director of acquisitions and development for Southern California, Bay Apartment Communities Inc., Newport Beach
* Background: Regional point man for fast-growing apartment REIT headquartered in San Jose.
* Why watchable: Planning to invest well over $200 million in Southland apartment properties by the end of January--and much more to come is probably a safe assumption.
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* Glenn Carpenter
* Chairman, Pacific Gulf Properties Inc., Newport Beach
* Background: Another well-established REIT tapping into the Wall Street real estate capital flow.
* Why watchable: Continues to raise investment capital and place it in Southland real estate, with a late-1997 emphasis on Orange County industrial-property portfolios.
The Developers Taking the Risks
* Allen D. Kohl
* Founder, Regent Properties, Beverly Hills
* Background: Entrepreneur from well-connected family spent last couple of years securing interests in diverse string of commercial and retail developments.
* Why watchable: Timing seems right for several ongoing projects, such as in West Hills, Westwood, Hollywood and Glendale.
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* Paul Marshall
* Vice president of development, Opus West Corp., Irvine
* Background: Regional development head for subsidiary of giant Opus Group of Cos.
* Why watchable: Earlier this year, Opus snagged the last remaining site available for high-rise development in Koll Center Irvine. It plans to break ground at the end of the first quarter on a 12-story office building. Other office and industrial developments are underway in the Inland Empire and Foothill Ranch.
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* M. David Paul
* Principal, M. David Paul & Associates, Santa Monica
* Background: Veteran developer wisely sat on sidelines as others built too much space--now pursuing select developments and redevelopments in best marketplaces.
* Why watchable: Holds some of the best blocks of office space available on the Westside and is pursuing development targeting Burbank area’s space-starved entertainment industry.
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* Rob Maguire
* Principal, Maguire Partners, downtown Los Angeles
* Background: L.A.’s highest-profile commercial developer, his firm has been restructuring a personnel team, as well as property finances.
* Why watchable: Despite presumed financial strains, manages to keep pulling rabbits out of his oversized hat--like the triumphant reacquisition of Santa Monica’s big MGM Plaza. Looks like he’ll get to work on Playa Vista after all, as well as on prospective office development in Glendale.
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* Rick Caruso
* Principal, Caruso Affiliated Holdings, Santa Monica
* Background: Current DWP board president has been enviably successful with a string of high-quality retail construction projects--many of them on sites where previous developers’ plans failed to materialize.
* Why watchable: More of the same ahead, including Calabasas project (again, on a long-idled site) with major early commitments from Ralphs Grocery Co. and Edwards Theatres.
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* Jerry Snyder
* Principal, J.H. Snyder Co., Los Angeles
* Background: Veteran developer known for working with neighbors on plans for mega-developments such as Santa Monica’s Water Garden and Miracle Mile’s Wilshire Courtyard.
* Why watchable: Snyder’s firm and its partners will soon launch construction of major office campuses in Santa Monica (Water Garden II) and Burbank (Media Center), while continuing a successful series of retail developments, including one at Howard Hughes Center in Westchester.
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* John Kilroy Jr.
* President, Kilroy Realty Corp., El Segundo
* Background: Established family-run firm knows the local office and industrial real estate marketplaces intimately--and now has millions to spend since becoming a REIT.
* Why watchable: Like other REITs, Kilroy needs to grow through investments and developments--and there will be plenty of both ahead, including big development projects coming soon to Anaheim and Burbank, and another potential mega-development in the Conejo area.
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* Alfred Somekh
* Vice president/apartment development, Lincoln Property Co., Irvine
* Background: Leading national developer and manager of apartment communities has been on an aggressive development warpath.
* Why watchable: After announcing big luxury high-rise apartment developments in Marina del Rey and Santa Monica, Lincoln forged $1-billion mega-deal to develop housing in venture with giant apartment REIT Equity Residential Properties Trust.
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* Igor Olenicoff
* Chief executive, Olen Properties Corp., Newport Beach
* Background: Investor and developer who left the market before the crash, returning in the last couple of years to begin speculative office and industrial development in Orange County.
* Why watchable: Olenicoff is currently wrapping up development of the county’s first speculative office building in years. Other new office and industrial projects are underway or in the planning stages in Rancho Santa Margarita and Lake Forest.
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* Bill Halford
* President, Irvine Office Co., Newport Beach
* Background: Golden boy who was tapped earlier this year to head one of mammoth Irvine Co.’s largest divisions. Before joining the land owner and developer in 1994, Halford headed leasing and marketing for PM Realty Group’s western division.
* Why watchable: With office rents rising quickly in the posh markets of Irvine and Newport Beach where the Irvine Co. owns its buildings, Halford’s unit is poised to begin development again, this time in Newport Center, the Spectrum and near UC Irvine.
Other Active Professionals
* Steve Silk and Jay Borzi
* Senior directors, Cushman & Wakefield Inc., Torrance
* Background: Perennially successful longtime partners, outdid themselves in 1997 with more than $700 million in deals brokered.
* Why watchable: Why would they stop now? They won’t, with $200 million in deals scheduled to close in January alone.
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* Wayne Brandt
* Managing Director, Nomura Asset Capital Corp., downtown Los Angeles
* Background: Key local executive with leading commercial real estate finance operation known for huge mortgage securitizations.
* Why watchable: Has access to billions of dollars of capital targeted at major real estate finance transactions--and possibly even evolving into the construction lending arena.
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* Jeff Dritley
* Director, Morgan Stanley Real Estate Fund, Century City
* Background: Point man for major real estate investment operation, evolving with the market recovery into more entrepreneurial ventures--including some of the most noteworthy development projects in town.
* Why watchable: All eyes will be on the pending Playa Vista development near Marina del Rey and Glendale high-rise project now under construction--both with major backing from the Morgan Stanley fund. Look for the fund’s involvement in other noteworthy new development projects as well.
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* George Mihlsten
* Partner, Latham & Watkins, downtown Los Angeles
* Background: High-powered real estate attorney specializing in development entitlements.
* Why watchable: With a client list that includes the likes of Walt Disney Co., Universal Studios, the downtown sports arena developers and DreamWorks, Mihlsten is bound for another ultra-busy year as businesses grow and development takes off.
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* Ned Fox and Rick Gilchrist
* Managing principals, CommonWealth Pacific LLC, downtown Los Angeles
* Background: Former senior partners at major developer Maguire Partners now head diversely talented group succeeding on several fronts locally.
* Why watchable: And now they’ve got the deed-pocketed capital backing of Lazard Freres Real Estate to pursue acquisitions of real estate portfolios, do development and buy companies.
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* John Long
* Managing partner, Highridge Partners, El Segundo
* Background: Diverse, highly connected real estate investor and developer manages to generate consistent profits from various value-added ventures.
* Why watchable: While capital itself is no longer king in Southland real estate today, it still goes a long way when teamed with Highridge’s insights into niche markets.
