Los Angeles Mayor Karen Bass is reportedly looking into what’s been a sore spot for real estate since 2023: Measure ULA.
The 2022 ballot measure, often called the “mansion tax,” applies a tiered assessment to residential and commercial sales within the city. The tax is adjusted each year to account for changes in consumer spending. Thresholds set to go into effect June 30 apply a 4 percent tax on properties starting at $5.3 million and 5.5 percent on those $10.6 million or more.
Now, city attorneys are looking into the possibility of temporarily nixing ULA to help expedite efforts to rebuild the fire-torn Pacific Palisades, which is part of Los Angeles.
“There’s two schools of thought,” Bass said in response to a question on ULA’s pause from Breitbart during a March 11 press conference. “One is, that can’t happen. It has to go back to voters. And the other is that it might be able to happen with action from the council and the mayor’s office.”
Sounds like Bass may have taken a cue from Jason Oppenheim and Ben Belack, who opined in a January letter, signed by nearly 50 of their colleagues, who called for the loosening of restrictions during the rebuilding process. Among the calls to action was a suggestion that property in fire-affected areas be exempt from Measure ULA.
On Feb. 21, The Real Deal reached out to Bass’s press team inquiring if it had reviewed the letter and if the suggestions were being considered. A spokesperson for the mayor requested a copy of the letter but did not comment on whether the proposals were under consideration.
Caruso: “time and place for politics…is not now”
The Grove developer Rick Caruso made it clear where he stands on a recall attempt of Los Angeles Mayor Karen Bass, casting it as “not a good idea.”
The comment made on Caruso’s X account was in relation to a recall committee formed earlier this month, helmed by Los Angeles-area agent Sahil Nandwani. The recall effort aims to seize on discontent over Bass’s handling of the Palisades Fire, in addition to safety and housing needs.
“There is a time and place for politics, but it is not now,” Caruso said on X, further characterizing such actions as “costly and expensive political distractions.”
Nicole Shanahan, former Robert F. Kennedy Jr. running mate and ex-wife of Google co-founder Sergey Brin, sought to poke Caruso over his stance asking over X if “people deserve accountability.”
Caruso, who has been outspoken in his critique of Bass and the city’s handling of the fires, reminded Shanahan “a recall election doesn’t happen overnight” and would end up being a costly endeavor.
Ovation Hollywood struggles with occupancy as valuation dives
The mixed-use property at Hollywood Boulevard and Highland Avenue has seen its value drop as occupancy has also dipped.
Ovation Hollywood, which was rebranded from Hollywood & Highland, was recently appraised at $257 million by Morningstar. That’s off 24 percent from $338 million in 2019, despite about $100 million spent in updating the property in 2023.
The entertainment and retail center currently counts Shoe Palace, Sephora, Lids, Hard Rock Café and Johnny Rockets among its tenants.
Shopoff looks to redevelop Buena Park industrial site into housing
Shopoff Realty Investments saw something in a Buena Park industrial site and seized on the opportunity to buy.
The Irvine-based development company paid nutritional products maker Amway $60 million for its nearly 14-acre industrial property that Shopoff plans to redevelop into townhomes.
Shopoff President and CEO William Shopoff said in a statement Buena Park “offers a tremendous opportunity for strategic redevelopment” and the company is moving forward on entitlements for its proposed project. The property sits next to the Metrolink and has proximity to Interstate 5 and State Route 91.
Azria Estate tries on a new price: $39M
The Azria Estate in Holmby Hills has made a fashionable re-entrance into Los Angeles’ luxury residential market.
The property at 10250 West Sunset Boulevard, which is being sold by fashion designer Lubov Azria, was recently re-listed for $39 million. That’s down from a high of as much as $88 million as the property’s swung on and off the market for about a decade.
Azria is the wife of the late Max Azria, founder of BCBG.
The re-list comes after Yucaipa Companies founder Ron Burkle sued Lubov Azria after an auction of the property in which the investor had the winning bid went south. Burkle ultimately asked a judge to toss the case late last year.
