Which Professionals Will Most Influence 2000’s Developing Trends?
For the most part, the L.A. area’s commercial real estate community partied last year like it was, well, 1999. And this year? There’s reason to expect plenty of activity.
Who among the region’s property professionals will make the most headlines? No one can know for certain, of course, but The Times offers here a small sampling of the pros likely to participate in noteworthy trends and transactions in the months ahead.
Entrepreneurial developers and “repositioning” specialists will try to capitalize on continued strong tenant demand this year, but they will face a somewhat stingier lending environment. Savvy investors will grab available properties--most likely in association with pools of private capital--as Wall Street continues to shy away from shares of the publicly traded real estate investment trusts that were such active property buyers through mid-1998.
With this year’s list, The Times includes a number of lesser-known individuals expected to play key roles within their professions. It excludes some of those who have been in the news as local markets recovered from the severe recession of the early 1990s--and will almost certainly remain newsworthy in the future. No slight is intended, however, to such Southland industry stalwarts as Jerry Snyder of J.H. Snyder Co., Rick Caruso of Caruso Affiliated Holdings, Don Koll of Koll Development, Dan Emmett of Douglas, Emmett & Co., David Paul of M. David Paul & Associates, Bob Lowe of Lowe Enterprises and John Kilroy Jr. of Kilroy Realty.
Here are some of the other players to watch in 2000:
* Rick Gilchrist, Michael Croft
Co-chairman and president, CommonWealth Partners, Los Angeles
Background: Among key former Maguire Thomas partners now applying their skills to various realty enterprises, usually co-investing with the giant California Public Employees’ Retirement System.
Why watchable: Institutional capital will continue flowing into the Southland, and few firms are better positioned to benefit.
* Mark Siffin
Principal, Maefield Development Corp., West Hollywood
Background: Developer known for creating consensus among stakeholders affected by controversial projects.
Why watchable: Pursuing high-profile $250-million mixed-use project it envisions will become the western entrance to Sunset Strip; will need to secure retail and office tenants, hotel operator and other participants.
* David Margulies
Partner, Apollo Real Estate Advisors, Century City
Background: Local representative of investor Leon Black’s aggressive real estate investment operation.
Why watchable: Hit home run with Santa Monica’s Arboretum Gateway office development. Can he help Siffin create similar success with the big Sunset Strip project?
* Peter Denniston
Chief executive, Playa Vista
Background: Experienced developer and planner who is overseeing perhaps the highest-profile and most controversial planned community ever conceived in the region.
Why watchable: His arms are being pulled by many supplicants: investors, financiers, developers, tenants, contractors, politicians, environmentalists, brokers--and journalists.
* David Mgrublian, Mike Siam, Hayden Eaves III
Managing partners, Investment Development Services, Los Angeles
Background: Active industrial and office property developers known for their ability to turn institutional capital into real estate profits.
Why watchable: With such access to capital, we figured a year ago that they’d keep right on buying and building. They haven’t disappointed. This year, look for even more of same.
* Robert Shibuya
Regional executive managing director, Insignia/ESG, Los Angeles
Background: Longtime brokerage executive who has supervised deal makers under various corporate banners and real estate markets.
Why watchable: Helped recruit Insignia’s so-called dream team of high-powered brokers during the last year; now has to make the substantial investment pay off. It’s likely he’s not done adding to the team, either.
* Bryan Ezralow
President, Ezralow Co., Calabasas
Background: Low-key family company of investment and development professionals has assembled an enviable real estate portfolio over several decades.
Why watchable: Current noteworthy projects include a redo of Huntington Beach Mall, putting fast-growing Homegrocer.com into renovated La Brea Avenue distribution center in Los Angeles, redeveloping the former NASA property in Downey.
* Greg Harless
Principal, Skye Partners, Culver City
Background: Broker-turned-investor now going after the entertainment production community.
Why watchable: After success with its 10950 Studios sound stage project in Culver City , the firm just inked deal to buy and redo the 13-acre Warner Studios Hollywood lot in West Hollywood in partnership with Blackacre Capital Management.
* Robert F. Maguire
Principal, Maguire Partners, Los Angeles
Background: Since the 1970s, has been one of the Southland’s most prolific and visible commercial developers.
Why watchable: Let’s see: There’s that potential $100-million profit for his firm if his MGM Plaza in Santa Monica sells at quoted bids. He might think about immediately pumping some of the proceeds into the next phase of his Plaza Las Fuentes in Pasadena and that other little project he’s had so much trouble with in Playa Vista.
* Steve Soboroff
Principal, Soboroff Partners, Santa Monica
Background: Veteran broker for retail chains and a shopping center owner also widely known for his tireless civic activities and close friendship with Los Angeles Mayor Richard Riordan.
Why watchable: A leading candidate to succeed Riordan as mayor.
* Avi Shemesh, Shaul Kuba, John Given
CIM Group, Westwood
Background: Shemesh and Kuba are developers of multifamily dwellings who hooked up with urban planner Given. More recently, firm has been pursuing multiple-property redevelopments in open-air urban shopping districts such as Santa Monica and Pasadena.
Why watchable: Past successes and financial backing from CS First Boston suggest more of same--with a distinct focus on revitalizing Hollywood in the near term.
* Ben Reiling
Principal, Zelman Cos., Los Angeles
Background: Longtime local commercial real estate developer.
Why watchable: Is taking over one of L.A. County’s biggest retail and office development sites--103 acres near Burbank airport--from previous team, which never closed property’s purchase from Lockheed Martin. Will he be the one to get something out of that once-contaminated ground?
* John Hagestad, Geoffrey Stack, William Thormahlen
Managing directors, Sares-Regis Group, Irvine
Background: A formidable income-property buyer and builder, with expertise in many property categories and disciplines.
Why watchable: With strong capital partners and an enviable lineup of in-house talent, the team is positioned for even more growth in the thriving office, industrial and multifamily sectors this year.
* Arthur Coppola
President, Macerich Co., Santa Monica
Background: Heads one of the nation’s biggest owner-managers of regional shopping malls.
Why watchable: Despite Wall Street’s retreat from real estate investment trusts, Macerich has been able to pursue its “clustering” strategy--owning all the regional centers within a large trade area--in part because it has some deep-pocketed financial partners, including Canada’s biggest public pension fund.
* Tom McCarthy, Ed Cook
Principals, McCarthy Cook & Co., Los Angeles
Background: Former Maguire Thomas executives adept at buying, leasing, building and--most recently--selling in partnership with New York investment powerhouse Blackstone Group.
Why watchable: After refilling the million-square-foot Wilshire Courtyard in L.A.’s Miracle Mile area with the likes of E! Entertainment, it booked nice gain selling Costa Mesa acreage to credit firm Experian. Expect intriguing local investment deals to follow.
* Alan Casden, Henry Casden
Chairman and president, Casden Co., Beverly Hills
Background: Among most prolific of L.A.’s home-grown apartment builders
Why watchable: As anticipated a year ago, Casden restructured fast-growing portfolio into a private REIT supported by huge investment from Blackacre Capital. Now the multifamily development community will be watching the company’s huge new high-end Park La Brea and Westchester developments. Assume more such construction to follow.
* Steve Layton, Phil Belling
Principals, Layton-Belling & Associates, Newport Beach
Background: Experienced developers and asset managers who rank among the Southland’s most aggressive buyers and profitable sellers; work mostly with big pension advisor AEW Capital. Last year it acquired Shuwa Investments’ Orange County assets for $160 million.
Why watchable: Many pension funds remain “under-allocated” in real estate, and the LBA/AEW team is likely to keep capturing related deals.
* Robert Voit
President, Voit Cos., Woodland Hills
Background: Veteran developer who is the driving force behind Warner Center’s emergence as key commerce center; headed group that just bought $125 million worth of L.A. and Orange county industrial buildings.
Why watchable: With various partners, he is pursuing many avenues as markets here and elsewhere continue to recover. Is handling latest big Warner Center office development, continuing with the redevelopment of the former General Motors plant in Panorama City.
* Robert Flaxman, Jim O’Neil
President, vice president, Crown Realty & Development, Newport Beach
Background: Longtime Southland retail developer Flaxman brought former Burbank development official O’Neil on board to help with ambitious acquisition and development plans.
Why watchable: Noteworthy successes with Burbank redevelopment ventures make it likely we can expect more of the same, perhaps even another major deal early this year.
* J. Allen Radford
Principal, JARCO, Santa Monica.
Background: Successful shopping center developer leads group proposing one of the most visible (hence controversial) redevelopment projects ever undertaken locally--a multiphase studio-oriented project on more than 40 acres in the North Hollywood Arts District.
Why watchable: The proposal is so ambitious that it would be likely to change the character of the whole community. Radford has a long way to go here--appeasing opponents, garnering approvals, assembling sites and securing financing and tenants.
* Jerry Fink, David Kim
Managing directors, Bascom Group, Irvine
Background: Real estate entrepreneurs with plenty of experience financing, buying, building and “repositioning” properties in good times and bad. Expanding apartment portfolio now has more than 3,000 units.
Why watchable: Access to institutional and other investment funds will presumably help Bascom continue diversifying from marginal neighborhoods to bigger and more costly projects--such as the recent $41-million purchase of the 474-unit Tennis Club Apartments in Warner Center.
* Lew Halpert, Stuart Cramer
Residential group president, managing director, Kennedy-Wilson Inc., Beverly Hills
Background: Substantial experience in investment, financing, sales of multifamily and other property types.
Why watchable: Recently formed investment fund with Marcus & Millichap unit Hanover Financial. Plan to spend perhaps $200 million on Southern California apartment properties in the near term.
