Laura Clark has led earnings calls before but Thursday’s was her first as incoming chief executive of Rexford Industrial. The call began with a pre-recorded personal note from co-founders and co-CEOs Michael Frankel and Howard Schwimmer, who were not on the call. Clark thanked the founders, who she’ll soon replace in the Elliott era, but made it clear Rexford’s next chapter has begun.
Earnings were mixed. The real estate investment trust reported losses in the fourth quarter but was still profitable for all of 2025. It blamed losses on sell-offs of several properties along with co-CEO transition costs–and we know Frankel and Schwimmer were granted stock awards valued at more than $20 million each. The big payouts made it all the more notable that Clark, on the call, mentioned Rexford was realigning executive compensation with shareholders’ expectations.
The latest proxy shows that Frankel and Schwimmer raked in $13 million in total compensation in 2024, with base salaries of $1 million. Clark’s base will be $850,000, per a recent Securities and Exchange Commission filing, and her annual cash incentive opportunities are 25 percent below her predecessors.
Elliott’s hand in the departures and changes going forward seem clear, including a strategic imperative that has Rexford disposing of real estate and buying back shares. One analyst said he understood Clark was new to the corner office but bluntly asked what if the new strategy isn’t successful? Clark plowed through the question, giving shareholder returns top priority and expressing confidence that the new pattern of capital allocation would deliver long-term value.
Benefactors
The race for California’s next governor is on, but there is still no clear frontrunner.
There are two candidates we are keeping a close eye on because of their backers. The first is ex-Fox News host and Republican hopeful Steve Hilton, who received a contribution from billionaire Los Angeles apartment developer Geoff Palmer. Palmer, a Trump donor, gave the maximum.
The second is San Jose Mayor Matt Mahan, who got an endorsement from another L.A. billionaire developer — Rick Caruso, who purportedly considered a run of his own. Mahan, a late entry, hasn’t hit a filing period on campaign finances yet, but he could get more than verbal support from Caruso in the coming months.
Delivered
Cityview helmed by Sean Burton completed its eight-story, 265-unit community located in Los Angeles’ South Bay, at 12888 Crenshaw Boulevard, near SpaceX headquarters — a deal Burton previously told the publication he could not do in the City of Los Angeles because of the so-called mansion tax. Despite its moniker, Measure ULA hits commercial deals, too, with a 4 percent levy on trades of more than $5 million, and 5.5 percent on those priced at more than $10 million.
And that wasn’t the only completion announced this week …
Fort Lauderdale-based BH3 Management launched sales at Privé Malibu, a gated-community of 68 condominiums in the Point Dume neighborhood (on 10 acres at 6487 Cavalleri Road), minutes from the beach. It happens to be the first for-sale luxe product to hit Malibu in two decades. Prices start at $2 million. But don’t worry, most condos have ocean views.
Another selling point for the ultra-rich? Charlie Sheen might be your neighbor! The actor is a long-time resident, and is considering purchasing a Privé Malibu pad, per a spokesperson for the developer.
Price tag
Los Angeles–based real estate investment company JRK recently purchased a $400-million, three-property portfolio from Equity Residential. The deal includes 803 apartments spread over properties in Seattle, Hoboken, New Jersey and the City of Angels.
How much JRK paid for the 94-unit complex at 12301 West Pico Boulevard in West Los Angeles’ Sawtelle neighborhood was unclear when announced but the price has since come clear: $38 million, according to property records signed by both Equity Residential’s Caroline Hammond and JRK’s Daniel Lippman. That comes out to around $400,000 per unit. The trade was in Measure ULA’s reach, so the city tax amounted to more than $2 million.
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