Witkoff Group lands loan for Santa Monica luxury apartment project, Mountain of Beverly Hills sells at auction: Daily digest

A daily round up of LA real estate news, deals and more for August 20, 2019

TRD LOS ANGELES /
August 20, 2019 04:00 PM

Every day, The Real Deal rounds up Los Angeles’ biggest real estate news. We update this page at 9 a.m. and 4 p.m. PT. Please send any tips or deals to [email protected]

This page was last updated at 4 p.m. PT

 
The Mountain, whose owner owes the estate of the late Mark Hughes $200 million, photo above (Credit: Realtor, Wikipedia)
The Mountain, whose owner owes the estate of the late Mark Hughes $200 million, photo above (Credit: Realtor, Wikipedia)

The Mountain of Beverly Hills sold, but for a tiny fraction of its asking price. The 157-acre plot of dirt, once listed for $1 billion, sold for just $100,000 at a foreclosure in Pomona on Tuesday. The buyer and only bidder was the lender, an entity linked to the Mark Hughes Trust. [TRD

 

The Witkoff Group landed a construction loan for its Santa Monica luxury development. South Korea-based Mirae Asset Daewoo provided the $31 million debt, which Bridgerock Realty Advisors arranged. The financing is for Witkoff’s 249-unit complex, which includes more than 50,000 square feet of retail space. [TRD

 

Jon Voight has put his 3-acre spread in Beverly Hills on the market for $20 million. The actor, who lived there for 25 years, is selling his property at “land value,” according to marketing materials. All the signs point that the existing home could be a teardown. [Variety

Adam O’Neill and the development site (Credit: Google Maps)
Adam O’Neill and the development site (Credit: Google Maps)
 

Another mixed-use project heads for San Pedro. An entity tied to Adam O’Neill of Square One Homes and Stonebridge filed plans for a 109-unit, mixed-income apartment building on 13th Street and South Pacific Boulevard in San Pedro. The development would include 97 market-rate and 12 very low income units. [TRD

 

South Gate’s first apartment complex in three decades just got a boost. Development firm JPI snagged construction financing for its 244-unit multifamily development in South Gate. The $80 million in debt will go toward the Jefferson on Imperial, which is now being developed. [TRD

 

“Emoji House” in Manhattan Beach is up for grabs. The controversial hot pink house —  which boasts two emojis on its exterior — has listed for just under $2 million, weeks after neighbors complained over the home’s flashy paint job. The dispute between the owner and her neighbors dates back to May, when the owner was accused of illegally renting out the property, Airbnb-style. [LAT

 

The Fed has been chipping away crisis-era regulations, concerning some observers. In a process known as “tailoring,” the Fed has been incrementally tweaking regulations to improve the efficiency of regulations written during the crisis. “No individual thing jumps out, but if you look at the sum total, the direction of travel is not entirely encouraging,” a former Fed governor said. [NYT]

 
WeWork CEO Adam Neumann and 21-33 Irving Place (Credit: Getty Images and Google Maps)

A landlord is trying to get out of a lease with WeWork after seeing its IPO filing. Belvedere Management Co., which owns 21-33 Irving Place in Manhattan, is suing the co-working company after becoming concerned about its ability to fulfill the lease. [TRD]

 

Kohl’s reported declining sales for the third straight quarter. The department store chain posted strong growth for most of 2018, but the recent slide has caused concern among investors. The company’s shares are down about 43 percent over the past year. [WSJ]

 
Ahrya Fine Arts at 8556 Wilshire Boulevard (Credit: Laemmie Theatres)
Ahrya Fine Arts at 8556 Wilshire Boulevard (Credit: Laemmle Theatres)

Arthouse movie chain Laemmle Theatres may fall to Netflix and its ilk. Low attendance and the dominance of home-streaming may be forcing the West L.A.-based family company to put up its nine locations for sale. Laemmie’s movie houses include two in Beverly Hills and one in Santa Monica. Company president Greg Laemmle said he was “exploring a number of different options.” [LADN]

 

Reggie Bush is looking to score on the sale of his Pacific Palisades pad. The former NFL player and USC standout wants $10 million for the 7,500-square-foot contemporary he bought in 2014 for $7.8 million. Bifolding walls on both levels of the home provide views of the Pacific. Bush is now a college football commentator for Fox Sports. [LAT]

 

Beverly Hills BMW dealership trades for $70 million. The four-acre dealership on Wilshire Boulevard has a 93,000-square-foot showroom and a 246,000-square-foot auto repair facility, but also has redevelopment potential. An extension of the Metro Purple Line will run under Wilshire Boulevard, and the city of Beverly Hills is rezoning the area to allow for more dense development. [LABJ]

 
Clockwise from top left: 12165 Iredell Street, 410 Evelyn Place, 8590 Hollywood Boulevard, 11600 Amanda Drive and 1608 Thayer Avenue
Clockwise from top left: 12165 Iredell Street, 410 Evelyn Place, 8590 Hollywood Boulevard, 11600 Amanda Drive and 1608 Thayer Avenue

A home in Trousdale Estates topped last week’s priciest residential sales in L.A. In addition to that $8 million property, homes in the Hollywood Hills, Studio City, and Westwood also made The Real Deal’s roundup of top sales. [TRD]

 

Uncertainty over $18 billion Tubbs fire liabilities sends PG&E stocks cratering. A bankruptcy judge ruled that jurors should decide whether the troubled California utilities provider should be liable for damages related to 2017’s deadly Tubbs fire in Santa Rosa. The fire killed 22 people and destroyed more than 5,600 structures. [LAT]

 
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is entering the Texas market. The brokerage announced on Tuesday a joint venture with Houston-based Sudhoff Companies to launch in Houston with a 50-agent office. They plan to expand to Dallas and Austin. As part of the deal, Sudhoff Companies will be folded into the Douglas Elliman brand. [TRD]

 
(Credit: iStock)
(Credit: iStock)

Major mREIT dividend cuts are a potential recession indicator. Three of the largest real estate investment trusts that package and sell residential mortgage-based securities have cut dividends this year. The cuts followed an inversion of yields on three-month and 10-year treasuries in March, which made it more expensive for the mREITs to borrow money to buy up long-term mortgages. [TRD]

 

New tariffs against Chinese imports could impact apparel retailers. One analyst estimated that 25 percent tariffs on apparel could cause as many as 12,000 stores to shut down. About 40 percent of all clothing and 70 percent of shoes sold in the U.S. are made in China, and a 10 percent tariff against these products kicks in on September 1. [WSJ]

 
The We Company’s Adam Neumann (Credit: Getty Images)
The We Company’s Adam Neumann (Credit: Getty Images)

The We Company is somehow worth 10 times as much as this public competitor. Office operator IWG, best known for its Regus brand, filed for bankruptcy after the dot-com crash. The firm’s experience has often been used as a point of reference for WeWork’s business model, as it nears its IPO. [WSJ]

 

FROM THE CITY’S RECORDS:

Developer Wiseman Residential has filed plans for a 77-unit apartment complex on the corner of Venice Boulevard and Glencoe Avenue in Venice. Wiseman requested height bonuses granted to developments in Transit Oriented Communities. [LADCP]


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