Kanye tears down one of his affordable housing prototypes, ex-LA planning chief was lobbying for real estate firms while getting city consulting fees: Daily digest

A daily roundup of LA real estate news, deals and more for August 21, 2019

TRD LOS ANGELES /
August 21, 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. ET. Please send any tips or deals to [email protected]

This page was last updated at 4 p.m.

 
Kanye West (Credit: Getty Images)
Kanye West (Credit: Getty Images)

Kanye West tears down affordable dome housing prototype in his backyard. The rapper got into trouble with the city of Calabasas for building a handful of dome-like affordable housing prototypes in his backyard without permits. He had to either permit them or tear them down by mid-September. He’s now torn at least one down. [TMZ

 
Michael LoGrande and, from top, Robert Herscu, Nick Jones and Zach Vella (Credit: Urban Land Institute, Wikipedia Commons, Getty Images, The Real Deal)
Michael LoGrande and, from top, Robert Herscu, Nick Jones and Zach Vella (Credit: Urban Land Institute, Wikipedia Commons, Getty Images, The Real Deal)

A case of double dealing by ex-city planning chief. Michael LoGrande — who admitted to lobbying on behalf of developers after stepping down from his post — was also being paid $18,000 per month in consulting fees by the city while he was violating city ethics laws. [TRD]

 

Bel Air lot owned by late Jerry Perenchio hits market for $15 million. The 1.4-acre vacant property comes with plans for a 16,000-square-foot mansion. It’s directly across Bel Air Road from the Chartwell Estate, the massive home owned by the media mogul who died in 2017. [TRD

 

The latest on rent control and housing bills state lawmakers are debating. Among the proposals are a proposal to institute a 7-percent cap on rent increases statewide, as well as a bill meant to lower the costs of developing in California. [TRD

 

Toll Brothers reports 25 percent drop in year-over-year net income. The massive homebuilder said contracts in the third quarter were down 3 percent compared to the same period last year. [TRD

 
Knotel CEO Amol Sarva (Credit: iStock)

Knotel raises $400 million, raising valuation to around $1.3 billion. The co-working firm got a capital infusion from Japanese firms Mori Trust, Itochu, and Mercuria Investment, as well as Kuwait-backed Wafra. Newmark Knight Frank, Norwest Venture Partners, and Sapir Organization also participated in the round of funding. The round of funding makes Knotel a “unicorn” with a valuation over $1 billion. The company’s largest competitor, the We Company, is readying for an IPO. [TRD]

 

Reseda pushes back on L.A.’s homeless shelter plan. The neighborhood council opposes building shelters at any of the five city parking lots identified by Councilman Bob Blumenfield. Residents want the city to look at other parts of the district. Opponents claim a shelter would lower property values and hurt businesses, a running refrain from communities as the city tries to expand it temporary homeless shelter program. [LADN

 

Reseda pushes back on L.A.’s homeless shelter plan. The neighborhood council opposes building shelters at any of the five city parking lots identified by Councilman Bob Blumenfield. Residents want the city to look at other parts of the district. Opponents claim a shelter would lower property values and hurt businesses, a running refrain from communities as the city tries to expand it temporary homeless shelter program. [LADN]

 

A Westminster senior living complex sells for top dollar. Zinn Group sold the 310-unit property for $71 million. The firm had owned HW Senior Living Apartments for 30 years. The buyer was a Delaware-based entity. Berkadia represented Zinn in the deal.

 
Clockwise from left: 145 North Mapleton Drive, 8408 Hillside Avenue, 10372 West Sunset Boulevard, 9641 Royalton Drive, and 2496 Lancelot Lane
Clockwise from left: 145 North Mapleton Drive, 8408 Hillside Avenue, 10372 West Sunset Boulevard, 9641 Royalton Drive, and 2496 Lancelot Lane

A Holmby Hills “fortress” topped last week’s priciest resi listings in L.A. The Mapleton Drive home spans 15,350 square feet and is on the market for $55 million. Also listed were a 20,000-square-foot home in the Hollywood Hills asking $43.9 million and another Holmby Hills mansion asking $27.5 million. [TRD]

 
Douglas Durst

“Perhaps it has a business model that can be as successful as ours.” That was Douglas Durst’s rebuke of a WeWork claim that its business model can withstand all economic cycles, “something created by no other real estate company ever.” In a letter published by Crain’s, Durst proceeded to list the legacy of his family company, which has withstood wars, recessions, depressions, booms and busts. [Crain’s]

 
Opportunity zones across the U.S. (Courtesy of Enterprise Community Partners)

Landlords are using co-working companies to fill space in Opportunity Zones. A major challenge for building owners has been to draw businesses, and tenants, to distressed areas. The answer, for some, is to introduce co-working companies to their buildings, which in turn, attract startups, and entrepreneurial activity, giving those areas a boost. [NYT]

 

Dr. Dre makes quick $4.5 million sale of Woodland Hills home. The music and media mogul listed the 16,200-square-foot home in July for $5.3 million. The home dates from 1987 and includes eight bedrooms, a dry sauna, and a saltwater swimming pool. [LAT]

 

FROM THE CITY’S RECORDS:

 

Senior housing developer Decro has filed plans for a new 40-unit permanent supportive housing project at 5050-5054 North Bakman Avenue in North Hollywood. [LADCP]


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