Realty Pros to Watch in 2002
In the midst of an economic decline that dawned with the tech wreck and was exacerbated by the fallout of Sept. 11, local property professionals face slowed demand for offices, stores and warehouses. The focus for many this year will be to fill vacant space and find tenants for new developments nearing completion.
Meanwhile, several innovative real estate developers will pursue some of the most intriguing redevelopment projects the Los Angeles area has seen. A common theme among these: high-density revitalization of urban sites through “mixed” uses rarely seen here.
Some key factors make such new uses desirable and financially viable even in the face of a national recession. Among them: Southern California’s continuing population explosion; high home prices and apartment rents; and congested freeways and thoroughfares.
As the year turns, realty pros also have their collective eye on some pending high-profile property transactions that should indicate how the investment community views the local market’s near- and longer-term prospects.
The following are some local commercial real estate figures expected to make headlines in the months ahead.
Robert Maguire, principal, Maguire Partners, Los Angeles.
Background: One of the region’s most prolific and visible commercial developers, Maguire has been angling to raise capital by selling a stake in his extensive portfolio.
Why watchable: New Year’s apparently passed without a deal, but one may be coming soon. His reinvestment of the proceeds probably will make news as well, with some of it presumably helping finance construction at the Playa Vista planned community near Marina del Rey.
Steve Provencio, vice president, AEW Capital Management, Los Angeles.
Background: Oversees clients’ regional property holdings for Boston-based investment advisor.
Why watchable: He’s the seller’s local point man managing the bidding among numerous high-powered candidates trying to buy a portfolio of Warner Center high-rise office towers and an adjacent business park. The price is expected to far exceed $400 million, making it one of the biggest Southland real estate deals slated for a 2002 close.
Tom Bohlinger, senior vice president, CB Richard Ellis, Los Angeles.
Background: Veteran investment broker heads a team working to sell downtown L.A. landmark Arco Plaza for owner Shuwa Investments.
Why watchable: While Shuwa’s Tom Kibler and brokers at Cushman & Wakefield continue seeking tenants for Arco Plaza’s empty offices, Bohlinger and company will be working with prospective buyers for the twin towers.
Steve Silk and Jay Borzi, senior managing directors, Secured Capital Corp., Los Angeles.
Background: Investment brokers have handled several of the West Coast’s largest commercial property sales in recent years.
Why watchable: The assignments seem to keep rolling in, including large malls, industrial portfolios and high-profile office properties such as Warner Center, where the brokers work for Provencio.
Robert Stelzl, principal, Colony Capital, Century City.
Background: Identifies and evaluates potential investments for a firm whose various opportunity funds have acquired and managed several billion dollars’ worth of real estate assets.
Why watchable: Colony is working on its fifth mega-fund, and Stelzl’s team is said to be bidding on the Warner Center portfolio. The group may not end up with Warner Center--but Stelzl’s participation seems to portend other large local deals.
Ted Tanner, senior vice president, Los Angeles Arena Land Co., Los Angeles.
Background: Development executive with extensive public-private partnership experience is now the point man on plans for the proposed $1-billion mixed-use project adjacent to Staples Center.
Why watchable: Anyone who followed the approval and construction process at Staples realizes Tanner and company’s every move will be heavily scrutinized--especially when that elusive convention hotel comes up.
Avi Shemesh, Shaul Kuba and Richard Ressler, principals, CIM Group, Westwood.
Background: Innovative urban real estate investment and development group’s many successes have continued to attract capital--and other intriguing projects.
Why watchable: The renovation and reuse specialists’ latest endeavor is the former Southern California Gas Co. headquarters property just south of downtown L.A.’s high-rise core. CIM’s plans include commercial space, residential lofts and even a supermarket.
Steve Soboroff, president, Playa Vista, Los Angeles.
Background: After his failed bid to replace friend Richard Riordan as L.A.’s mayor, the retail-chain realty representative and shopping center owner took over the reins as development point man at the Westside’s huge and controversial planned community.
Why watchable: If it’s yet another challenge Soboroff seeks, he’s certainly found it in Playa Vista, which faces many detractors and slowing commercial tenant demand. No one said the initial Staples Center development agreement would be easy either, but Soboroff’s energy helped usher it through.
Jerry Snyder, principal, J.H. Snyder Co., Los Angeles.
Background: Veteran builder remains one of the most active income-property developers in town.
Why watchable: Snyder and his partners already had several innovative mixed-use projects in the works before assuming oversight of the long-planned $218-million NoHo Commons redevelopment in North Hollywood, slated to feature apartments, offices and shops.
Mark Siffin, principal, Maefield Development Corp., West Hollywood.
Background: Transplanted Midwesterner and his partners are nearing completion of the initial retail phase of a big mixed-use development billed as a “gateway” to the Sunset Strip.
Why watchable: His ambitious Sunset Millennium is one of the region’s highest-profile redevelopment projects. But as the hospitality business reels, he’s looking to substitute apartments for Millennium’s planned hotel. That shift alone is bound to generate more headlines.
Howard Samuels, senior vice president, LCOR Public/Private Inc., Century City.
Background: National director of retail development with one of the country’s best-known public-private development specialists.
Why watchable: The region hasn’t seen a lot of retail developments that stack giant stores such as Home Depot and Costco on top of one another--especially in neighborhoods in need of economic revitalization. But that’s just what Samuels’ group plans to build, along with other shops, restaurants and 1,500 parking spaces on the old Sears site at Pico and Venice boulevards.
Rick Caruso, chief executive, Caruso Affiliated Holdings, Santa Monica.
Background: Retail specialist has tackled increasingly large and challenging projects, such as the Grove at Farmers Market in the Fairfax district of Los Angeles.
Why watchable: Caruso has drawn kudos for most of his popular open-air shopping centers, but the neighborhood jury is still out in Fairfax. Now he’s hooking up with apartment developer Legacy Partners Residential to create a $100-million mixed-use project in Glendale. The L.A. Police Commission president also is helping create the master plan for one of Playa Vista’s main districts.
Thomas Ricci, senior vice president, Thomas Properties Group, Los Angeles.
Background: Oversees business development and development services for the active property developer, investor and operator.
Why watchable: He’s point man for a Thomas-led group pursuing approvals to convert 46 vacant El Segundo acres into a major mixed-use project. Though immediate construction is unlikely in the current climate, the development could become a linchpin of the city’s ongoing expansion.
Craig Furniss, senior vice president, Lowe Enterprises Commercial Group, Los Angeles.
Background: Key development executive managing Bob Lowe’s extensive real estate empire.
Why watchable: Oversees a $200-million mix of redevelopment activities totaling 1.8 million square feet slated for Hawthorne’s 104-acre former Northrop Grumman Corp. campus, now dubbed the Exchange. An AT&T; Corp. data center and shopping center anchored by a home improvement store already are booked.
Bryan Ezralow, chief executive, Ezralow Co., Calabasas.
Background: Has taken the successful family real estate firm to the next level with numerous income-property development projects.
Why watchable: Among various ongoing local ventures is the mixed-use redevelopment of the 100-acre former NASA campus in Downey into retail and technology-related uses.
Dan Niemann, senior vice president, Trammell Crow Co., Century City.
Background: Among other projects, overseeing the planned redevelopment of Century City’s ABC Entertainment Center complex on behalf of the property’s institutional owners.
Why watchable: It’s hard to find a higher-profile redevelopment project than demolishing the ABC Entertainment Center (including the Shubert Theater) and adjacent plaza in favor of a $280-million plan featuring a “mid-rise” office building and park. Approvals will consume the coming months. After that comes the search for tenants.
Campbell Hugh Greenup, executive vice president of development, Kilroy Realty Corp., Santa Monica.
Background: Oversees development for one of Southern California’s most active office and industrial builders.
Why watchable: With tech still struggling, Greenup is in the hot seat as Kilroy continues to seek tenants for the Westside Media Center along the Olympic Corridor--and now for a major office renovation project nearing completion in El Segundo.
M. David Paul and Jeffrey Worthe, principals, M. David Paul & Associates, Santa Monica.
Background: Opportunistic office developer had been faring well with its multiphase project near the Burbank airport and also took over a long-stalled development in the heart of the city’s Media District. Why watchable: A year ago it looked as if the firm’s Media District office project was bound to become a barometer of near-term tenant demand in the Tri-Cities. That hasn’t changed--and the market continues to anticipate the first big tenancy announcement.
Nicholas Colonna and William Lindsay, partners, Pacific Coast Capital Partners, El Segundo.
Background: Former real estate banker and lawyer hooked up with other veterans to form firm teaming capital resources with promising projects.
Why watchable: They’ve helped South Bay stalwart Overton Moore Properties successfully develop and sell a major industrial park and shopping center, and they now have office projects in the works.
Don Hudson, senior vice president, Warner Center Properties, Woodland Hills.
Background: Leasing broker oversees tenant deals at the Warner Center district’s signature 2.3-million-square-foot assemblage of buildings.
Why watchable: The 315,000 square feet HealthNet is vacating at one of the Warner Center Plaza high-rises Hudson handles is one of the L.A. area’s biggest “holes” of existing high-quality office space.
