As summer temperatures hit historic highs, The Real Deal takes a closer look at a real estate investor who’s taken some heat because of his close ties to President Donald Trump. Colony NorthStar chairman Tom Barrack turned down a role as an official adviser to his longtime friend. But the Californian’s long business history in the Middle East makes him a significant player in shaping Trump’s thinking on the region.
Also drawing heat: luxury housing prices in Malibu, which recently saw an $85 million house trade hands. TRD ranked the priciest sales in the coastal city over the last 12 months, and our look at the most expensive active listings indicates seller confidence in rising prices.
Brokers say those hopped-up home values can be largely attributed to new community amenities, like Soho House and Nobu Ryokan Malibu Hotel, which are owned by one of the town’s most powerful residents, Oracle’s billionaire co-founder Larry Ellison.
The temperature’s also turning up on two residential brokerage businesses in L.A. County. TRD examines how relative newcomers Douglas Elliman and Compass are struggling to gain traction in La La Land — and why their approaches to the market could not be more different.
Commercial brokerages are also going elbow to elbow. As investment sales volume begins to slow, trophy towers continue to sell at historically low capitalization rates. While the firms have tried to beef up their capital markets teams to get in on the high-rise action, one brokerage still dominates the priciest sales in our ranking.
In the multifamily market, landlords who attempt to flip rent-controlled apartment complexes are having a tougher time as tenants rights activists educate renters and lobby for more legislative protections. Some developers say the laws are driving them to look outside L.A. to build.
Industrial landlords, meanwhile, are taking the retail apocalypse to the bank. As e-commerce grows, its warehousing and distribution needs have been a boon to L.A.’s industrial owners.
Enjoy the issue in full here, and stay cool out there.