Presidents Message

Lance Ryan 2Welcome to 2017. We may only be in the first quarter of the year, but it has already been a busy one. Our chapter leadership was in Washington, D.C. at NAIOP’s Chapter Leadership & Legislative Retreat. This annual event provides a platform for us to meet with key legislators representing the interests of our industry.

Legislative advocacy is a major advantage of NAIOP membership.  However, I can’t emphasize enough the importance for our members to understand the issues, get involved and let your voice be heard on the many issues threatening the future of the commercial real estate industry. Even now, there are a number of initiatives on March ballots in Southern California that represent the ongoing assault on our industry and, in turn, job creation and economic growth. Please take the time to read our Legislative Update in this issue to learn more.

While the election brought new leadership to the White House, it also seemed to quell some of the economic uncertainty we had been experiencing at the end of last year. However, our California political leadership has chosen to double down against the new administration. There is evidence the state intends to propose greater regulatory burdens on real estate and, moreover, the possibility of targeting commercial real estate to make up for budget shortfalls that result from their political posturing on issues unrelated to our industry.

An important goal for our chapter this year will be greater integration of our outstanding Young Professionals Group and Developing Leaders. These groups represent the future chapter leaders. We will be working to encourage more involvement at the chapter level and in leadership roles, as well as increasing membership of our next generation. If you know a young professional who could gain from NAIOP SoCal’s knowledge and business networking, encourage them to get involved.

Finally, I want to congratulate the chapter on receiving two awards at NAIOP’s Leadership Retreat. We received a Merit Award for our 2016 Kick-Off Event at Big Newport.  Congratulations to everyone who made that event possible and especially Shea Properties who was our headline sponsor.

Cynthia Fusco, our chapter’s executive director for almost three decades, was recognized for her work and dedication with the Chapter Executive of the Year Award. If you have had the great pleasure of working with Cynthia, then you know that she has and continues to give her heart and soul to this chapter. I give a great deal of credit to Cynthia’s commitment and consistency to ensuring that we have been a sustainable organization, no matter the economic cycles. It is a credit to her that this chapter is as strong as it is today. Congratulations, Cynthia, for your well-deserved recognition.

I look forward to seeing everyone at our events this year.

Lance Ryan, President

Legislative Update

In this report… No on Measure S, March 7 City of Los Angeles Election, Grass Roots Outreach Needed Now! (Click here to for more information); The City of Los Angeles Planning Commission Approves Affordable Housing Linkage Fee (Click here fore more information); SCAQMD Update on AQMP Adoption Scheduled for March 3 (Click here for more information); Update on 2017 Elections (Click here fore more information). Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

No On Measure S

March 7 City of Los Angeles Election

Grass Roots Outreach Needed Now!
Measure S will impose restrictions on development in the City of Los Angeles including a moratorium on building.  It is important to take immediate action to get information out to Los Angeles voters via email, tweets, and on Facebook.

Los Angeles Times Opposes Measure S – Click Here for Recent Articles

Mayor Garcetti, Los Angeles Area Chamber of Commerce, Los Angeles County Federation of Labor and many more have joined in urging voters to vote No on Measure S. Click Here for more info.

 

The City of Los Angeles Planning Commission Approves Affordable Housing Linkage Fee

This linkage fee was proposed last Fall and continued until after the March 7, 2017 elections.  However, the City decided not to wait for the outcome of the March 7 election and has moved ahead with the proposal to add a $5 per square foot fee to all commercial buildings of 15,000 square foot and larger and a $12 linkage fee to houses of $1,500 square feet or larger.  NAIOP SoCal is opposed and has joined with business coalition members in testifying at hearings.

To view NAIOP SoCal’s comment letter opposing affordable housing linkage fees, Click Here.

 

SCAQMD Update on AQMP Adoption Scheduled for March 3

NAIOP SoCal has been monitoring the adoption of the AQMP (Air Quality Management Plan) updates since discussions began months ago.  On February 3, 2017, the SCAQMD (South Coast Air Quality Management District) Board of Directors was scheduled to make a decision on the proposed plan.  NAIOP SoCal testified and, along with the other members of Los Angles BizFed, joined in submitting a comment letter.

At the February 3rd meeting, proposals for last minute revisions were made by a Board member after the public hearing was closed – cutting off all public comment on the proposed revisions.  The proposed revisions, which were aimed at warehouses and goods movement, are completely unacceptable to NAIOP and BizFed.  The item was continued to the March 3, 2017 meeting.  For additional information on this issue, please contact Peter Herzog at peter@talleyassoc.com or 949-380-3300.

To review the BizFed Comment letter, Click Here.

 

Update on 2017 Elections

Orange County elections are held in even years while the majority of Los Angeles County elections are in odd years.  The NAIOP SoCal PAC (Political Action Committee) monitors elections in priority cities and counties.  If you have specific questions or recommendations regarding the upcoming Los Angeles county local elections, please contact Vickie Talley at Vickie@talleyassoc.com or 949-380-3300.

For a list of Los Angeles County Elections in 2017 Click Here.

Effective January 1, 2018, SB 415 requires that all elections (State, County, City, Districts, etc.) will need to be consolidated with the State election date in even-numbered years or have adopted a plan to consolidate a future election with the statewide election no later than November 8, 2022.

For a copy of SB 415, Click Here.

YPG Update

Taylor Headshot

The YPG Program continues to raise the bar in its accomplishments and this past year was no exception.  I am proud to say that in 2016-2017, the YPG Program accomplished the following:

  1. Founded the Alumni Speaker Series Program which boosted alumni committee meeting participation and provided continuing education opportunities for alumni. In 2016 we were fortunate enough to have the following speakers: FivePoint Communities Chairman & CEO Emile Haddad, Savills Studley Chief Economist Heidi Learner, and American Healthcare Advisors Founding Principal Jeff Hanson.

 

  1. Made an impact in the Community through our “Big for a Day” mentoring experience at Knott’s Berry Farm in the Fall of 2016, bringing 30 volunteers to mentor children through Big Brothers Big Sisters of OC. In February 2017, we had 25 YPG-affiliated volunteers mentor Working Wardrobe clients on job searching and interviewing techniques.

 

  1. Teamed up with CREW (Commercial Real Estate Women) for a 125+ person joint mixer on the roof deck at one of OC’s most iconic buildings.

 

  1. Continued the Y Games tradition with 200+ attendees, selling out tickets weeks before the event. The 2016 Y Games honored the 2016 Olympics with a “Go for Gold” theme.

 

  1. Set a new record by fundraising from 20+ sponsor companies, increasing total sponsorship by more than 35% over the previous record-setting year!

 

  1. Partied like it was 1987 with our New Year’s “80’s Theme” Kickoff Party at the Wayfarer Bar in Costa Mesa. For the 2nd year in a row, one of our YPG Alumni jumped on stage to sing with the live band!

 

  1. Partnered with the Irvine Company for the YPG Case Competition where YPG teams will present competing plans for the development of a prime land site in Irvine bordering two major highways.

 

  1. Recruited and selected the 13th YPG Class which is already one of the most diverse and accomplished classes to date.

 

Perhaps the biggest news coming out of this year is the planning of the inaugural NAIOP SoCal YPG Leadership Summit that will take place in April 2017.  We envision the Leadership Summit to be an annual conference that will differ from any other real estate conference.  TheSummit will parallel the lessons we all learned in the YPG program, focusing on leadership and out-of-the-box thinking.  The event will be headlined by world-famous surfer and waterman Laird Hamilton. It will also include YPG Alumni who have broken the mold and started their own companies, as well as other leaders throughout different disciplines who have incredible stories to tell.

We have accomplished great things and continue to raise the bar; however, none of this would have happened without the continue support from our sponsors.  In addition to all YPG sponsors, I’d like to especially recognize our Platinum and Gold Sponsors: LBA, CapRock Partners, Hines, KPRS, NGKF Capital Markets, Panattoni and Sunwest Bank.  Finally, I’d like to thank Cynthia Fusco and her team at CGF Associates, as well as the volunteers on the YPG Alumni Committee who rolled up their sleeves and did an amazing job throughout the year.  I look forward to seeing what the future YPG leadership has in store and how they will continue to push the boundaries like we did this year!

Taylor Arnett
YPG Alumni Chair

The 2016 USC vs UCLA Real Estate Challenge – What a Competition!

rec-2016-ucla-team

On November 17, graduate student teams from the Ziman Center of Real Estate at UCLA’s Anderson School of Business and the Lusk Center at USC’s Marshall School of Business and Price School of Public Policy competed in a head-to-head real estate challenge to determine the highest and best use for a 5.07-acre land site in the City of Inglewood near the new Rams NFL Stadium.

The five-student team from UCLA won the Silver Shovel for their presentation called TRIBUTE.

The UCLA student team included: Nora Collins, Daniel Gates, Joseph Pfeiffer, Scotty Weber and Alyssa Koehn. UCLA’s Tribute proposal encompassed 45.5K SF of light manufacturing in the form of maker space – an emerging movement of customer-facing production space – as well as 17K SF of local restaurants and service retail and a 150-key lifestyle hotel with an objective to become Inglewood’s third place.

“The City of Inglewood was honored to have the 2016 NAIOP Real Estate Challenge and the student teams from UCLA and USC propose their creative, highest and best options to redevelop vacant parcels that have been fallow for nearly a decade. The student teams produced great ideas for redevelopment highlighting the opportunities for development within the City of Inglewood,” said James T. Butts, Mayor of Inglewood.

Mark Mattis, Real Estate Challenge Chair and Senior Vice President with PMRG added, “Each year I’m impressed by the caliber of presentation and innovation that the students bring to this event. We strive to create a real-world challenge for them while also providing them access to high-level real estate executives. It is a unique and significant real estate event for the students and the industry.”

In addition to the student presentations, the Real Estate Challenge provided stirring commentary on the upcoming USC vs UCLA football game by USC Honorary Team Captain John Papadakis, a former USC football player, and UCLA Honorary Team Captain Ed Kezirian, a member of the Bruin football staff and former UCLA football player.

rec-2016-ucla-team-2

Team UCLA

rec-2016-usc-team

Team USC

rec-2016-2

(left) USC Honorary Team Captain: John Papadakis (right)UCLA Honorary Team Captain: Ed Kezirian

rec-2016-pic1

John Drachman (Stillwater Investment Group) Real Estate Challenge committee member with Chris Jackson and Fred Jackson (City of Inglewood)

Night at the Fights to Feature First-Ever “Epic” Industry Brawl

N@F Main Event Logo

It’s the recognized client event of the year. This year’s Night at the Fights is set for May 11 at the Hotel Irvine. On that night, close to 1,000 industry peers will gather to watch championship boxing and MMA and enjoy a great dinner, cocktails and entertainment. But for the first time – our guests will witness a face-to-face, toe-to-toe industry brawl featuring executives from our local real estate community.

“The industry has been asking for this bout for far too long,” said Zach Niles, senior vice president, JLL and Night at the Fights chair. “Year after year, event goers comment how great it would be to see two CRE professionals in the ring, duking it out – so 2017 is the year our Night at the Fights planning committee is making it happen. It’s going to be epic!”

Each of our industry brawlers will receive training prior to the main event as well becoming a certified fighter. It is destined to be an epic battle and one not to be missed.

Our theme for 2017 is Hollywood’s Golden Age. Along with the focus on ultimate sports competition, we will celebrate the class and style of Hollywood in its glory days. Don’t miss the Round 2 fun of casino games, live entertainment and the best networking in Southern California.

Night at the Fights 2017 will indeed be a night to remember.

Cynthia Fusco Honored as Chapter Executive of the Year by NAIOP and More

DC picture
(SoCal Chapter Executive Director Cynthia Fusco, Past-President Kevin Jennings, Representative Dana Rohrabacher, President-Elect James Camp, and Community Service Vice-Chair Lillian Kuo.)

NAIOP recently honored 18 of its chapters and three individuals with the association’s coveted Chapter Merit Awards. NAIOP SoCal received an award for its Special Event – The Auto Industry in High Gear – Driving Economic Growth and Real Estate Expansion in SoCal.

Cynthia Fusco, executive director for NAIOP SoCal for 27 years, was honored as Chapter Executive of the Year.  As Executive Director, Cynthia and her team work with the Board of Directors and various committees to implement the Chapter’s programs and activities, as well as provide the day-to-day administrative and management responsibilities it takes to keep things running efficiently. But that’s not all. The honor was well-deserved and provided an opportunity to share more of her background:

What do you enjoy most about your role?

There are many reasons I love working with NAIOP but in the end it all comes down to people.  There is a shared sense of purpose that I love when I’m working alongside the leadership and the volunteers.  I also love the variety of what we get to do. Every day brings a new challenge or opportunity to do something different.  Beats a 9 to 5 job every time!

Where are you from – How did you get into this business and your position with NAIOP SoCal?

I’m a Texas native and military brat – so we moved around quite a bit.  After postings in Rota, Spain and Lemoore, California, my dad retired and we moved to Albuquerque, New Mexico.  After high school I took a job with a DC-based federal agency.  I subsequently took a job in the legal department of a trade association, continued my education and was certified as a paralegal.  I volunteered for almost every department at the association, so I could learn the business from the ground up and travel to other cities with our national conventions.  After 11 years in D.C., it was time to come back to the West Coast where I worked for an association management company.  Overall it was quite a learning experience, but I was excited when I had the chance to step out on my own. And I’ve never looked back.

How has the chapter changed over the years and what do you see as its greatest opportunity

In the beginning, NAIOP Orange County was considered the “cowboy” of the chapter network. We were the California renegades who were always challenging the status quo and doing things other than the ordinary, month-to-month programs.  This entrepreneurial spirit and outside-the-box thinking – and its resulting success – changed the mindset to one of respect. It established NAIOP SoCal as a leader and innovator in the NAIOP community.  Creation of the Young Professionals Group (YPG) is a perfect example. This was established before anyone thought about a Developing Leader category, and I’m very proud of the part we played in bringing national attention to the need for securing the future of our young real estate professionals.  An innovative spirit and willingness to take risks and try new ideas are among the chapter’s greatest strengths. It also provides the greatest opportunity for continued growth and success in the world of commercial real estate.

Brian Ortwein Tapped for 2016-17 NAIOP SoCal CRE Fellowship

Brian ortwein

NAIOP SoCal and the Center for Real Estate at UC Irvine’s Paul Merage School of Business have awarded Brian J. Ortwein, TRI Pointe Homes project manager, the 2016-17 NAIOP SoCal-CRE Fellowship.

The fellowship offers a combined learning experience, where awardees have the opportunity to attend NAIOP SoCal board meetings and also enhance their formal education through a $7,500 financial award designed to develop and prepare future real estate industry leaders. Ortwein will apply his award to his studies at the Merage School where he is enrolled in the Fully Employed MBA (FEMBA) program class of 2019.

“The financial assistance is valuable, but more than that, this recognition provides a platform for interaction with a high-powered board of directors that is comprised of talented individuals from a wide-ranging list of amazing real estate companies. This will further supplement and enhance my MBA experience beyond the classroom, giving me great business contacts and first-hand knowledge,” Ortwein shared.

As a project manager with TRI Pointe Homes, Ortwein is responsible for eight projects totaling 723 units, which are anticipated to generate approximately $450 million in revenue. He has also navigated numerous local and state government agencies to obtain entitlements required for project development. Prior to his current position at the firm as a project manager, Ortwein was a land acquisition associate. During that time, he executed an aggressive land acquisition strategy that grew TRI Pointe into a top 10 California home builder. Ortwein’s experience also includes a role as project engineer on large institutional development projects with Jacobs Engineering.

Ortwein earned his passion for real estate at a young age and today is part of a family legacy that began with his father and brother, former executives at the Koll Company and current principals at Focus Real Estate. “I started walking development projects at an early age with my dad, and I was hooked from there,” Ortwein shared.

The Merage School was ranked among the top 5 percent of accredited business schools in the U.S. in 2015 according to Financial Times. The Full-Time MBA program is ranked 7th among public universities and 21st in the U.S. overall, according to Financial Times’ 2015 Global MBA ranking report.  The Executive MBA (EMBA) program is ranked among the top 25 in the U.S., according to U.S. News & World Report’s 2013 ranking of EMBA programs.

As of December 2016, the Center for Real Estate and NAIOP SoCal have partnered to award $60,000 in scholarships to deserving industry leadership candidates, helping to launch a number of very successful careers.

“We are pleased that these scholarships have made a significant impact in our recruitment efforts and enhanced the Merage School’s visibility in the professional community as a provider of advanced training and education in this field,” said Sharon Nakamura-Brown, associate director for the Center for Real Estate.

Members in the News

NGKF Completes Sale of Four Irvine Buildings
Newmark Grubb Knight Frank (NGKF) has completed the sale of four multi-tenant low-rise office buildings in Irvine for $27 million. The buildings, located at the corner of Jamboree Blvd. and MacArthur Blvd., were acquired by Kelemen Caamano Investments as part of a 1031 exchange. The seller, CIP Real Estate, was represented by NGKF Executive Managing Director, Investment Services Robert Griffith along with Brian Garbutt of Lee & Associates.The four buildings are part of the high-profile 13.55-acre, eight-building Centerpointe office campus.

Charles Dunn Company Expands Investment Sales Expertise in Los Angeles
Looking to bolster its investment sales brokerage practice, Charles Dunn Company, one of the largest full-service regional real estate firms in the western U.S., has named Craig Stevens as Senior Managing Director.  Craig is joined by son Clay Stevens who will serve as Director. A 40-year commercial real estate veteran, Craig specializes in representing investors in the acquisition and disposition of commercial real estate in Southern California.

Bonne, Bridges, Mueller, O’Keefe & Nichols to Relocate to Downtown Los Angeles
JLL represented Bonne, Bridges, Mueller, O’Keefe & Nichols in a new 10,302-square-foot office lease at Wells Fargo Center, a Class A, 1.1 million-square-foot office building located at 355 S. Grand Avenue in downtown Los Angeles.  The firm is relocating its headquarters from the Mid-Wilshire submarket of Los Angeles. JLL Los Angeles Darren Eades, Tony Morales and Maureen Hawley represented Bonne, Bridges, Mueller, O’Keefe & Nichols. The landlord, Brookfield Office Properties, was represented in-house by James Malone.

PMRG completes sale of the Dove Canyon Country Club in Rancho Santa Margarita
PMRG, a nationally recognized, full-service commercial real estate firm, has completed the sale of the 230-acre Dove Canyon Country Club located at 22682 Golf Club Drive, Rancho Santa Margarita to SJS Tomorrow, LLC.  The new ownership has selected Steele Canyon Golf Club Corporation as the course operator. Ken Arimitsu, PMRG’s Senior Vice President of Golf Course and Land Sales, represented the buyer and the seller, Pacific Links International.

Rockwood Capital and Marshall Property & Development Break Ground on 55,000 SF Innovative Office Building
Rockwood Capital and Marshall Development have announced that the planned expansion of Playa Jefferson is under way. Work has commenced on the Gensler-designed, 55,000 square foot Building E which, once completed in late 2017, will increase the size of the office campus to approximately 250,000 square feet.   Building E will likely accommodate a variety of requirements ranging from approximately 18,000 to 55,000 square feet of contiguous space.

Stan Johnson Company Hires New West Coast Leader
After a thorough search, Stan Johnson Company welcomes a Regional Managing Director for its west region. Myles Helm will lead the region from downtown Los Angeles as it continues to expand its presence in the west.

Avison Young completes 23,589-sf full-floor lease for PSI Services in Glendale
Avison Young, the world’s fastest-growing commercial real estate services firm, announced today that it has negotiated a new, full-floor lease totaling 23,589-square feet (sf) on behalf of PSI Services in Glendale, CA. PSI provides pre-employment testing, licensure and certification testing solutions to corporations, professional associations and government regulatory agencies in North America. Avison Young Principal Jacob Bobek, based in the company’s downtown Los Angeles office, represented the tenant. The landlord, LNR Partners, Inc., was represented by Jones Lang LaSalle.

PCCP, LLC Acquires office portfolio totaling 161,017 square feet; properties located in downtown Seattle and Bellevue, Washington
PCCP, LLC announced today it has acquired a two-property office portfolio totaling 161,017 square feet. The first property is 2505 Second Avenue, a seven-story, 100 percent leased, 72,375-square-foot, boutique office building with ground floor retail and subterranean parking in the heart of the Belltown District in Downtown Seattle. The second property is Evergreen Office Park, a low-rise, two-building, 89 percent leased, 88,642-square-foot office in Bellevue, WA.

Five Market-Leading Landlord Representation Brokers Recruited to NGKF Orange County Team
Newmark Grubb Knight Frank (NGKF) has recruited five of Orange County’s top tenant and landlord representation brokers. Jay Nugent, George Thomson, Greg Puccinelli, and James Estrada have all come on board as senior managing directors with NGKF’s Orange County team. In addition, Naomi Rizkowsky joins NGKF’s Orange County office as an associate.

Stos Partners Acquires Two San Diego Partners
Stos Partners, a privately held commercial real estate investment and management firm, has acquired two properties in San Diego, including a two-tenant industrial building in Escondido and a two-tenant retail property in the heart of downtown Oceanside.  “The San Diego commercial real estate market continues to tighten and there is tremendous investor interest in both of these submarkets,” says CJ Stos, Principal of Stos Partners.  “Each of these transactions demonstrates our overarching investment strategy, which is to acquire quality product in irreplaceable locations, then hold those assets for the long term in order to generate strong cash flow and returns over time.”

NAIOP SoCal Welcomes New Members!

NAIOP SoCal Welcomes New Members!

 

NAIOP SoCal would like to welcome 108 new members to the chapter between November 28th and February 27th. We look forward to seeing each of them at our upcoming events!

AECOM Grace Won
Allied Universal Steve Claton
Americorp International Group INC Naseer Durrani
AMPCo James Quintana
AMPCo Kari Shotwell
Ares Management LLC Tighe Thomas
Avison Young Christopher Cooper
Bank of America Merrill Lynch Shelby Durbin
Berkshire Hathaway Brent Marlis
BFC Funding Carly Naples
Bixby Land Company Suki Swaroop
BlackRock Realty Advisors Angela Kralovec
Casco Contractors Inc Jazz Sanchez
Charter Capital Group Colin Dubel
Chicago Title Company Benjamin Maggard
CIT Bank N.A. Jorge Gamez
Clarion Partners Nicholas Gonzalves
Conor Commercial Real Estate Taline Agopian
CS Capital Management Inc. Samuel DePoy
Cushman & Wakefield Paul Klink
Deutsche Asset Management Jasmine Noles
DPR Construction Inc. Alena Quintero
Duke Realty Christos Mavrakis
Duke Realty Adam Schmid
Dynamic Development Tyler Kolligian
Eastdil Secured Brian Russell
Eastdil Secured Anthony Zegers
EY Joe DiMaggio
Gregorio Investments Incorporated Louie Gregorio
Griffin Capital Kevin Treinen
Guthrie Development Connor Bannan
Hankey Investment Company Tyler Hagan
HCP Inc. Cristina Johnson
HFF Nick Lench
Hines Thomas Lawless
Holualoa Companies Jason Yap
Idea Hall Nicole Inal
Irvine Company Pete Shearer
JACOBS David Bauer
JLL Scott Bailey
JPMorgan Chase Matthew Bucaro
JPMorgan Chase Mel Jensen
JPMorgan Chase Julia Warter
Keystone Mortgage Corporation Scott Pierson
LAREM Wesley Babi
LAREM Matthew Ginocchio
LAREM Jay Jasaitis
LAREM Ed Whittemore
Lee & Associates Kenah Cooper
Lincoln Property Company Douglas Brown
Lincoln Property Company Parke Miller
Lincoln Property Company Troy Vander Hulst
LPA Inc. Natalie Zweig
Majestic Realty Co. Arquelles Alejandro
Millie and Severson Mark Baranick
NAI Capital Inc. Brian Childs
NAI Capital Inc. Bill Kiefer
Newmark Grubb Knight Frank Guillermo Boisson
NorthMarq Capital Inc. Ory Schwartz
Oltmans Construction Co. Louise Le
Oltmans Construction Co. Lisa Smith
Overton Moore Properties Timur Tecimer
Pacific Life Insurance Company Brian Rogeness
Premier Design & Build Group Jeramy Mahfet
Prologis Gus Gradinger
Retail Insite Chris Hodgman
SAA Interiors + Architecture Anne Algaze
Santiago Canyon College Jake Mai
Savills Studley Joe Jones
Shea Properties Min Ku Kang
SKYCO Skylights Ryan Marshall
Southern California Geotechnical Inc. Robert Trazo
Spinitar Melissa Banks
STEELWAVE Seth Hiromura
STRUCTRUAL Diane Maynard
Ten-X Joe Costanzo
Ten-X Augie Napolitano
Tetra Tech Inc. Billye Breckenridge
Tetra Tech Inc. Tomo Demers
Tetra Tech Inc. Jay Neuhaus
Tetra Tech Inc. Leo Rebele
The Bendetti Company Paul Leu
Thorofare Capital Inc. Felix Gutnikov
Ticor Title Company Matt Tutton
U.S. Bank Sumiko Agena
U.S. Bank Bryant Bushnell
U.S. Bank Alex Jun
U.S. Bank Matt Kasten
U.S. Bank Alex Lai
U.S. Bank Shya Mousvipour
U.S. Bank Chris Olinger
U.S. Bank Nai Saefong
U.S. Bank Andrew Schlegel
U.S. Bank Cameron Stuart
UC Irvine Cory Siemon
UCI Merage School of Business Christopher Rubino
UCLA Anderson School of Management Caleb Joiner
University of California at Irvine Jeet Desai
University of Southern California Craig Keys
University of Southern California Henry Pyle
Voit Real Estate Services Loren Cargile
Voit Real Estate Services Spencer Thomas
Ware Malcomb Alicia Zaro
Watson Land Company Matthew Means
Wells Fargo Bank N.A. Nicole Johnson
Woodruff-Sawyer & Co. Tyson Freeburg
Woodruff-Sawyer & Co. Ron Guerena
Woodruff-Sawyer & Co. James Lopiccolo

 

Presidents Message

kJennings BofAAs we near the end of 2016, it provides an opportunity to reflect on NAIOP’s impact.

Many of our members attended the national NAIOP Conference, held at the end of September. It was a tremendous success with a record turnout. Overall the mood was upbeat with a positive outlook for the industry in 2017. NAIOP’s O.Con – The Office Conference will be held on November 1st and 2nd. I hope that you’re planning to attend as these national events continue to provide valuable context for our work in Southern California.

At the local level, we just held the successful Y Games put on by our Young Professionals Group (YPG). It was a great day of friendly athletic competition with more than 200 in attendance. It’s exciting to see how strong our YPG has become and how effectively they have made their mark on the industry.

As we near the end of this election season, I hope that you will all take advantage of our chapter’s Voter Guide when you do go out to vote. Our legislative committee has been hard at work researching the propositions and candidates in an effort to provide guidance to our members in how to best vote to support commercial real estate’s future not just in Southern California but throughout the state.

And I hope to see you all at the November 17 USC vs UCLA Real Estate Challenge. This is always a great event that both introduces us to the innovative ideas of our USC and UCLA graduate students and provides some entertaining pre-football game banter for our Southern California rivalry.

I will close by sharing that this has been a tremendous year for me. I am both honored and grateful to have served as your president. I close the year knowing that this chapter remains relevant and important to us in our careers, to our companies and to the industry. Please continue to support our chapter’s education, business development and legislative advocacy programs and work together to further drive its growth and influence.

I look forward to seeing you at the next chapter event and wish you all a wonderful holiday season.

Kevin Jennings
President

Legislative Update

In this report … NAIOP SoCal Voter Guide Now Available; City of LA Proposes Housing Linkage Fee;  Ballot Box Planning Initiative on March 2017 Ballot; State of California Threatens Local Land Use Planning; OPR SB 743 VMT CEQA Guidelines.  Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

 

NAIOP SoCal Voter Guide
Time to Share with Employees, Family and Business Associates
Every election is important and this November 8th General Election is no different.  From the top of the ballot to the end, every vote has the potential to impact commercial real estate.  Please pay special attention to the ENTIRE BALLOT and please take the time to go all the way to the end to vote on LOCAL BALLOT MEASURES.  We are facing local ballot MEASURE A that will INCREASE PROPERTY TAXES throughout the County of Los Angeles as well as Ballot Box Planning Measures in the City of Los Angeles and the City of Costa Mesa.

Your employees, family members and friends who vote want to be educated on how the various ballot measures will impact them, their families and their businesses.  The NAIOP SoCal Voter Guide and Grass Roots Action Guide outlines how to legally communicate with your employees.  Please share the NAIOP SoCal Voter guide with them by posting in your break room and/or emailing the NAIOP SoCal Voter Guide directly.  Please CLICK HERE to download the NAIOP SoCal Voter Guide.

 

The City of LA Proposes a Housing Linkage Fee
ANOTHER Proposed Per Square Foot Charge
The City of Los Angeles is proposing a NEW Affordable Housing Linkage Fee.  It would apply to any non-residential project of 10,000 square feet or more. The 10,000 square feet would be calculated based on the amount of the square footage of the new building or added square footage to an existing building.  The amount would be $5 per square foot payable prior to the issuance of a building permit.  There is also a fee for residential properties of $12 per square foot.  The fee will INCREASE automatically each year by the CPI. The purpose of the fee is to create a permanent source of funding for the development of affordable housing to be managed by the City’s Housing and Community Development Department. It seems counterintuitive to make housing more expensive in the name of producing affordable housing.  There is an effort to revise the proposal, yet no specifics are available currently.

The City did have a nexus study prepared which we are in the process of analyzing.  The study concluded there is a “direct” nexus to commercial property because of the “substantial” impact the new employees have on the housing market.

The linkage fee is tentatively scheduled to go before the City Planning Commission on November 10, and will then have to proceed through the City Council Committee process.  This issue will continue on into 2017.

 

It’s Official – City of Los Angeles “Neighborhood Integrity Act” on March 2017 Ballot … More Ballot Box Planning – At Its Worst!
The LA City Council, as required by State law, has formally voted to place the Neighborhood Integrity Act (NII) on the March 2017 ballot.  This measure would place a two-year moratorium on any project in the City of Los Angeles that requires a zone or general plan amendment which is, essentially, all projects in the City.  We will need to vigorously oppose this measure.

 

State of California Threatens Local Land Use Planning
On September 15, 2016, as part of the AB 32 Greenhouse Gas (GHG) Scoping Plan revisions, eight state agencies released two documents that would dramatically increase the state’s role in the well-established local land use decision making process that exists in our state codes and case law.  There had been no prior consultation with anyone by any of the agencies, and we were given only 13 days – until September 28, 2016 – to provide comments.  The development community came together and did provide a joint comment letter and many individual comment letters were sent in, including one from NAIOP SoCal (CLICK HERE for NAIOP SoCal Comment letter.)  Since there was no opportunity to do any real analysis, the letters very strongly attacked the “process” and requested the two documents be withdrawn, as well as objecting to this huge overreach by a bunch of State regulatory agencies without any direction from the Legislature.

The “proposal” would focus all land use decisions on whether or not those decisions would decrease GHGs and vehicle miles travelled (VMT).  There is reference to creating “land conservation targets,” “reduce conflicts among adjacent land uses,” and that the State “will develop systems to measure the environmental, health, and equity impacts of land use, transportation and development policies and programs…” and on and on.

There have been numerous conference calls among over 30 business groups from around the State.  Now that the fire drill of getting the letters submitted is passed, we are now focused on creating an overall strategy to stop this State regulatory overreach.

 

The State Office of Planning and Research’s SB 743 VMT CEQA Guidelines
For over three years NAIOP and many others have successfully fought the State Office of Planning and Research (OPR) effort to change the CEQA Guidelines for traffic mitigation from level of service (LOS) to vehicle miles travelled (VMT).  Well, without any public notice or announcement (even the California Transportation Commission did not know), Caltrans APPROVED for immediate implementation a policy that essentially requires the Caltrans staff to use the OPR draft SB 743 guidelines when Caltrans comments on CEQA documents, which includes “a reduction of per capita VMT by 15% by 2020.” No comments allowed. No rule making process. This is now in use. Fait Accompli.

Once the business community uncovered this outrageous action, there were numerous conference calls that included lawyers specialized in this field.  It was decided the State had given us no choice but to legally challenge this new “policy.” There are state laws that do not allow “underground regulations,” which are policies that set standards without going through a rulemaking process. These policies can be challenged through the Office of Administrative Law (OAL) and then, if necessary, go to court.  There will be an initial letter to Caltrans requesting that the “policy” be withdrawn and a Freedom of Information Act request for all documents regarding the development of the “policy.”

USC vs. UCLA Real Estate Challenge: Rams Stadium Site. Football Celebrities. Industry-Leading Judges. Be There!

rec-email-header-600

This year NAIOP SoCal’s Real Estate Challenge will feature an exciting Southern California site — a 5.07-acre land site in the City of Inglewood near the new Rams NFL Stadium.

The former redevelopment agency of Inglewood purchased the site to create a redevelopment project at the gateway of the 300-acre Hollywood Park Racetrack, which now includes the new NFL Stadium for the Los Angeles Rams along with a new casino, 800,000 square feet of new office development, 2,900 new residential units, parks and a hotel. This infill location will completely transform and revitalize the area providing great potential for the City and region.

“The City of Inglewood is honored to have the 2016 NAIOP Real Estate Challenge and the student teams from UCLA and USC competing to propose creative, highest and best options to redevelop vacant parcels within our City that have been fallow for nearly a decade. We anticipate the student teams will produce great ideas for many redevelopment scenarios of these sites and will highlight the opportunities for development within the City of Inglewood,” said James T. Butts, Mayor of Inglewood.

During the USC vs. UCLA Real Estate Challenge our student teams from the Ziman Center of Real Estate at UCLA’s Anderson School of Business and the Lusk Center at USC’s Marshall School of Business and Price School of Public Policy will present their ideas for the highest and best use for the Inglewood site to 12 high-profile commercial real estate industry leaders who will award points on the written and oral presentations to determine the winning team.

This year’s winning team will receive the coveted Silver Shovel and bragging rights.

The event, on November 17, will take place at Carnesale Commons on the campus of UCLA, where the students will also make presentations to our live audience.

“Each year I am impressed by the high caliber of presentation and innovation that the students bring to this event. We strive to create a real world challenge for them and give them access to leaders in the industry. It is a unique and significant real estate event for the students and the industry,” said Mark Mattis, Real Estate Challenge Chair and Senior Vice President with PMRG.

In addition to the student presentations, the Real Estate Challenge will feature lively commentary on the upcoming USC vs. UCLA football game by USC Honorary Team Captain John Papadakis, a former USC football player, and UCLA Honorary Team Captain Ed Kezirian, a member of the Bruin football staff and former UCLA football player.

Special thanks to our “Field Pass” sponsor NGKF Capital Markets and our “Press Box” sponsors City of Inglewood and Greenlaw Partners.  Thanks also to our “Fifty-Yard Line” sponsors Mesa West Capital, Oliver McMillan, Ryan, Sheppard Mullin, U.S. Bank, UCLA/Ziman Center and Wells Fargo Commercial Real Estate.  Tickets and sponsorship opportunities are still available – click here for details.

uscteam

Team USC

uclateam

Team UCLA

Leading the Way Series Profiles SoCal Members

Leadership Header V2

For the first time, NAIOP SoCal has embarked on a series of articles to promote innovation within the commercial real estate industry. The series profiles a number of firms that are leading the way in a variety of disciplines including environment, wellness and workplace, and legislative.

“The commercial real estate industry provides so much more than physical structures. I see what many of my peers are doing to lead the industry in new ideas, community building, and economic and legislative leadership and commitment,” said Kevin Jennings, NAIOP SoCal 2016 President.

This year, we heard more about the Irvine Company’s integration of battery-powered buildings, Fran Inman of Majestic Realty’s legislative leadership at the local and state level, and Gensler’s focus on wellness in the workplace, among others. We will soon publish our last in the series with a number of profiles on corporate diversity programs.

Thank you to all the members who have contributed to make this series a success. Read more on our Leading the Way series here.

Russ Parker Reflects on NAIOP SoCal’s Community Service Commitment

russ and kurt

Russ Parker (Left) with “Mentee” Kurt Kaufman (right).

Russ Parker with Parker Properties has served for more than seven years as Community Service Chair for NAIOP SoCal. During that time he has helped to build the chapter’s outreach and service commitment. “The most exciting trend is the increase in NAIOP SoCal member involvement, not just financially, but personally” Parker said. He shared some of the strong community programs that NAIOP SoCal promotes.

The UCI Center for Real Estate and NAIOP SoCal are now entering their seventh year of partnership in awarding scholarships to strong industry leadership candidates. The annual scholarship program supports each candidate’s studies at UC Irvine’s Merage School and provides an opportunity for the candidate to attend chapter board meetings. “We’ve now awarded more than $50,000 in scholarships to students who are focused on excelling in the real estate industry. It’s been rewarding to watch the program build over the years and to see how much it benefits the students to interact with our board.”

Parker also notes how much the Young Professionals Group (YPG) has embraced community service as part of its mission. “It’s reflected in almost all that the YPG members do. They had Working Wardrobes at their Y-Games, and each year hold Big for a Day to support Big Brothers Big Sisters. YPG has embraced community service at a level well beyond giving financially, in that their members are ‘rolling up their sleeves’ to make a real difference,” Parker added.

Another charity that has benefitted from NAIOP SoCal is KidWorks. This non-profit that provides learning centers for at-risk youth and families in Santa Ana is now expanding its main Dan Donahue facility to twice its current size, to 20,000 square feet. A number of NAIOP members provided their expertise to help the organization plan for its expansion, through site selection, location scouting and review of building and expansion plans. NAIOP members continue to personally volunteer their time at Kidworks centers and on their board of directors.

“At a personal level, it was rewarding to see everyone who supported our Hike in Crystal Cove last year that benefitted the Leukemia and Lymphoma Society working to beat Acute Myeloid Leukemia (AML). Since that time, we’ve had other NAIOP SoCal members such as Luke Rutherford, who is also a fellow survivor, become even more personally involved in this charity and take on significant fundraising goals,” Parker shared.

Finally, Parker, who also serves as Mentorship Co-Chair, cites the amazing commitment of board members who are helping to mentor the next generation. “Every time we ask for volunteer mentors, the board steps up. This year alone we have 16 board members involved in mentoring to young professionals. I know that I have gained so much from my mentor-mentee relationships and see the same with my peers,” said Parker.

As Parker steps down from the role as Community Service Chair, a big welcome goes out to current Co-Chair Mike Hodges who is well suited to take over this important role for NAIOP SoCal.

YPG Update

Taylor HeadshotWe’re halfway through another YPG year and Fall has proven to be a busy time for our Alumni and Current Class.

In late September we had more than 200 real estate professionals decked out in Olympic-themed gear to compete in the annual Y-Games “Go For Gold or Go Home” competition.  The event was a huge success, including an overwhelming level of clothing donations to Working Wardrobes. Competitors were asked to donate gently worn professional clothing to this non-profit that seeks to empower veterans, men and women overcoming difficult challenges to confidently enter the workforce and achieve self-sufficiency.

We are also thankful to our event sponsors, including Panattoni who sponsored the final championship game and NGKF Capital Markets who presented this year’s winners, Viking Quest, with the NGKF Capital Markets Cup. Viking Quest included team members: Derreck Barker – HFF, Andy Bratt – Newmark Realty Capital, Inc., Churchill Bunn – Irvine Company Office Properties, Chris Coetzee – CT Realty, Chris Gaudreau – Sunwest Bank, Lindsey Olson – Ten-X, Warren Ramsey – Luther Burbank Savings, Nick Shaffer – RD Olson Construction, Joel Stensby – KPRS Construction Services, and Lucas Stensby – KPRS Construction Services.  Our thanks to Connect Media for creating this video recap of Y Games 2016!

Over the last few months we’ve had best-in-class industry leaders such as Kilroy’s Executive Vice President David Simon, Buchanan Street’s Chief Executive Officer Robert Brunswick, and FivePoint’s CEO Emile Haddad speak to our YPG Class and Alumni Committee about their personal career path, the companies they founded, and the major projects they are overseeing.

On October 29th we will hold our biggest annual community outreach event “Big for a Day” where we pair up with Big Brothers Big Sisters of OC for a half day of mentorship at Knott’s Berry Farm.  We also held our first LA YPG Tour. The site for the tour was ROW DTLA, the reimagining of more than 30 acres of iconic, turn of the century buildings in the most vibrant part of Downtown LA.

Finally, we’re gearing up our recruiting efforts. The application period for next year’s YPG Class will open in mid-November, and details will be sent soon.

The goal this year was to further raise the bar with the YPG Program – and we believe that our events and the quality of young professionals who comprise this organization have achieved that goal.

Taylor Arnett
YPG Alumni Chair

Members in the News

PCCP, LLC Provides $34.5 Million Senior Loan to Refinance and Lease 230,000 SF Office Project

PCCP, LLC provided a $34.5 million senior loan to Pacifica Real Estate Group for the refinance and leasing of East Gateway Centre. The two‐building Class A office project totals 230,000 square feet in the 44th Street Corridor submarket of Phoenix, AZ. Pearlmark provided a mezzanine loan and Brad Sevier and Nate Carlson of Highland Realty Capital arranged both the senior and mezzanine financing.

 

NGKF Capital Markets Completes Sale of Center Promenade Office Campus

NGKF Capital Markets completed the sale of Center Promenade, a seven-building, 180,576-square-foot office campus. Located in Ventura, CA adjacent to the Ventura County Government Center, the campus provides a park-like setting with efficient floor plates. Sean Fulp, Kevin Shannon and Brad Burton of NGKF Capital Markets represented the seller Equity Office Properties. The buyer was Beverly Hills-based Omninet Capital, LLC.

 

JLL Closes Sale of Industrial Park in Brea

JLL announced that a repositioning opportunity in one of the tightest markets in the U.S. culminated in the sale of an industrial complex in Brea, Calif.. Newport Beach-based Western Realco purchased the five building, 180,087-square-foot industrial property located on 15.8 acres in Brea for approximately $26 million. JLL Senior Managing Director Louis Tomaselli and JLL Senior Vice President Zach Niles represented the seller, Guardian Capital Management, in the transaction.

 

PMRG Completes Lease with Schuff Steel Company at Newport Beach office building

PMRG, a nationally recognized, full-service commercial real estate firm, announced that it has completed a 3,092-square foot lease with Schuff Steel Company at 1401 Dove Street, a six story, Class A office building in Newport Beach.  Oliver Fleener of PMRG represented the landlord, Palm Springs Village-309, LLC a subsidiary of FarWest Industries in the lease.  Fleener is responsible for marketing the property for lease which currently has immediate availability for users ranging from 1,500 to 5,000 square feet.  Schuff Steel Company was represented by Jon Swallow of Newmark Grubb Knight Frank.

 

PMRG Completes Sale of Empire Lakes Golf Course in Rancho Cucamonga, Calif.

PMRG announced that it has completed the sale of the 160-acre Empire Lakes Golf Course located at 11015 6th Street in Rancho Cucamonga, Calif. to Empire Lakes Holding Company, LLC, a member of The Lewis Group of Companies, one of the nation’s largest privately held real estate development companies. The Lewis Group of Companies plans to repurpose the property into a mixed use community with as many as 3,450 residential units and 220,000 square feet of commercial uses. Ken Arimitsu, PMRG’s Senior Vice President of Golf Course and Land Sales, represented the seller, Park Global Inc.  The buyer was represented by Gary Arendts of Chaparral Land Company. Chaparral Land Company has specialized in residential land brokerage for the last 30 years.

 

The Triangle Adds New Tenants and Expands Successful Nightclub

Greenlaw Partners has announced that The Triangle, Costa Mesa’s most iconic entertainment and restaurant destination, has welcomed two new tenants and announced a major relocation and expansion of its current nightclub tenant Sutra. Sutra, formerly located in 9,500 square feet of space, has relocated and expanded to 13,000 square feet of existing ground floor space and will now be called Time Nightclub. The space, at 19th Street and Harbor Blvd., was the former home of Niketown at Triangle. Greenlaw Partners acquired Triangle in 2010. Since that time they have proactively focused on a destination and entertainment oriented re-tenanting and redevelopment of the retail property.

 

George Smith Partners Secures $34 Million Construction Loan

Commercial real estate investment banking firm George Smith Partners has successfully arranged $34 million in ground-up construction financing for the development of a mixed-use property comprised of 90 for-sale housing units above ground-level retail space in San Francisco’s Financial District, according to George Smith Partners’ Principal Jonathan Lee, Senior Vice President David Stepanchak and Vice President Adam Candler. George Smith Partners secured the loan on behalf of the developer, real estate investment and development firm Encore Capital Management.

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 28 new members to the chapter between August 29th and November 27th. We look forward to seeing each of them at our upcoming events!

Accurate Metal Products Inc. Rocio Nash
Biola University Alex Lee
Bridge Development Partners Gregory Woolway
Buchanan Street Partners Chris Herthel
Calamar Brandon Rath
CapRock Partners James Wall
CBRE Sean Dudley
Chicago Title Company Victoria Greene
Cordia Capital Management Daniel Higgins
EEC Environmental Kyle Wagner
First Bank Greg Hahn
Green Street Advisors Ryan Dalton
Griffin Capital Michael Marohnic
Irvine Company Jason Purvis
Marcus & Millichap Carol Song
Menlo Equities Jessica Quesada
Meye Tae Kim
Newmark Grubb Knight Frank Terry Reitz
Oaktree Capital Management LLC Sam Averbach
Overton Moore Properties Will McPhee
Rockefeller Group Michael Chukwueke
Thomas Bender Thomas Bender
Torrey Pines Bank Matthew Hatley
University of Southern California Lara Kiefer
University of Southern California Cherry Miao
University of Southern California Jung Mok
USC MRED Michelle Bates
Westport Properties Inc. David Kelly

PRESIDENT’S MESSAGE

kJennings BofAI hope everyone has been enjoying a great summer, and is preparing for a strong finish to 2016.

Our chapter was recently honored by a visit from NAIOP Chairman Ashley Powell who joined a board meeting and spent time with members at the Jonathan Club Aloha Beach BBQ. It was a great way to demonstrate the impact our chapter is having on its members and the industry. The YPG committee members were also on hand to provide insight into their work and the overall evolution of this important program. To that point, Powell complimented the work of the chapter and how much he’d like to see YPG grow at a national level.

Every day our influence is apparent not just at the local level, but at the national level. A number of our members are involved in planning this year’s upcoming NAIOP Commercial Real Estate Conference in Scottsdale; and we’re playing a very active role in planning O’CON 16 The Office Conference which will be held in Los Angeles this November, including the coordination of several exciting tours of LA area projects. Our work and attendance at these conferences as well as the work being done by Jim Proehl of PMRG, who is a former chapter president, and Stephane Wandel of Boeing, both of whom serve on the global NAIOP board, continues to make a difference.

Speaking of strong finishes. NAIOP SoCal has a full schedule of top events for the balance of 2016. September will be the Capital Markets Fall Forum, one of the most impactful events of the year; and the NAIOP SoCal Real Estate Challenge will occur on November 17. Plan to be there to root for your favorite student teams from UCLA and USC!

Of course this is also an election year — and one that is certainly going to be full of surprises. The good news is that you’ve got NAIOP SoCal on your side. Each year our legislative team compiles a comprehensive Voter’s Guide that covers recommendations on elections, propositions and ballot measures. It’s one of the more valuable benefits of NAIOP membership and one more way that NAIOP SoCal proactively supports the future of commercial real estate.

I look forward to seeing you at our local events and at the national conferences. As you’ll read in the Q&A we have in this issue with Ashley Powell, some of the best benefits of NAIOP are rubbing shoulders with peers at these national events.

Kevin Jennings
President

LEGISLATIVE UPDATE

In this report … Join the Legislative Affairs Committee, NAIOP Fights Tax Increases, Help CBPA with benchmarking, and the October 20 commercial real estate industry awards dinner. Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

Interested in Legislative Affairs and Politics? Join our committee!
The Legislative Affairs Committee meets once a month on the third Thursday for a working lunch meeting to discuss protecting the interests of our industry from governmental intervention.  For information on how to become active in this committee please contact Chairman Kevin Ivey or Director of Legislative Affairs Vickie Talley.

 

NAIOP Successfully Fighting Tax Increases!

ALERT – Huge Commercial Property Parcel Tax Increase– 1.5 Cents per Square Foot – Oppose
Across our region, cities and counties are turning to tax increase proposals as they struggle to balance their budgets.  SoCal has been and will continue to aggressively fight tax increases as exemplified below.

LA County received about $80 million a year for parkland acquisition and maintenance from previous tax measures, which expire in 2018.  To replace these funds, the Board of Supervisors proposed an unprecedented parcel tax of 3 to 5 cents per square foot of structural improvements.  NAIOP SoCal Board Member Fran Inman of Majestic Realty and Member Pilar Hoyos of Watson Land Company led the opposition to this proposal.  Although the Board approved putting the parcel tax on the November 2016 ballot, the amount was decreased to 1.5 cents per square foot.

While an improvement, the potential multi-millions of dollars in negative impact on commercial real estate is easy to calculate.  Everyone should look at your portfolios and multiply the total square footage times 1.5 cents. Additionally, there is no sunset provision on this tax.  It will last FOREVER.  So, the opposition effort is ongoing.  NAIOP SoCal helped write the opposition ballot argument which was signed by CalTax, LA BizFed, California Small Business Alliance, Valley Industry and Commerce Association, and the Apartment Association of Greater LA; and we are working to develop a strategy to defeat the measure. Yet, it will take the help of all our members to do so.  Please help when contacted as this is a costly measure that sets a dangerous precedent.

TOTAL VICTORY – County of LA Homelessness Parcel Tax Defeated
There is even better news!  On July 1, Supervisor Mark Ridley-Thomas placed another 3-cent per square foot parcel tax proposal, this time for homeless services, on their July 5 agenda.  NAIOP SoCal and our business community partners scrambled over the July 4th weekend and raised concerns at the July 5 Board meeting.  The Board directed staff to return on July 12 with additional tax increase proposals. Business interests, while supportive of efforts to end homelessness, opposed the per square foot and general sales tax options noting, among other things, there are parcel tax and sales tax measures already on the ballot.  The Board voted to put a gross receipts tax on all marijuana sales on the ballot, but they have since pulled it off.

There is no question that all the work done opposing the parks parcel tax discussed above greatly assisted in reaching this significant victory.  Overall, between the parks parcel tax proposal and this one, NAIOP SoCal has already taken what could have been proposals for 6-8 cents per square foot in parcel taxes and cut it to 1.5 cents at most.  This alone has saved the commercial real estate industry from the threat of tens of millions of dollars in new taxes.  This proves the type of significant benefits NAIOP SoCal provides to its members.

 

CBPA Request for Help on CA Benchmarking
The California Business Properties Association (CBPA) represents NAIOP members in Sacramento and is actively representing our interests on draft energy regulations and AB 802 (Benchmarking Program).  CBPA is asking NAIOP members to review the proposed regulations and provide comments to Matthew Hargrove.

Here is a link to the draft regulations:

Building Energy Use Disclosure and Public Benchmarking Program Mandated under Assembly Bill 802

There will be no statewide energy use disclosure requirement in 2016. During this time, Energy Commission staff will engage in a public process to develop regulations and establish the reporting infrastructure for the new program. However, we recommend that you continue to benchmark buildings on a regular basis as it makes good business sense.

 

Save the Date – October 20 in Newport Beach
2016 Commercial Real Estate Industry Awards Dinner
California Business Properties Association’s Industry Awards Dinner will be held on October 20, 2016 at The Fairmont Hotel in Newport Beach.   The Industry Awards Dinner is a chance to recognize the unwavering leadership of individuals and companies dedicated to the commercial, industrial and retail real estate industry.

This year CBPA will be awarding the Champion of the Industry Awards to Steve Craig, President and CEO of the Craig Realty Group, for their accomplishments in the retail development field;   Larry Kosmont, President and CEO of the Kosmont Companies, for their accomplishments in the service development field; and  Brian Plymell with Hines for their accomplishments in the office development field. CBPA is also recognizing two companies for their dedication and commitment to community service and the commercial real estate industry. Disneyland Resort will be awarded the John Caldecott Memorial Award for their community charitable actions; and Space Center, Inc is being awarded the Ernest W. Hahn Memorial Award for Legislative Affairs for their service to the commercial real estate industry.

 

Visit CBPA’s website for more details.

DON’T MISS THE FALL FORUM CAPITAL MARKETS POWER PANEL

Fall Forum 2016-Revised headerOn September 22, join NAIOP SoCal for an evening of leading-edge capital markets information in one of Downtown Los Angeles’ hottest venues, OUE Skyspace LA. Located nearly 1,000 feet above downtown Los Angeles on the 69th and 70th floors of the US Bank Tower, OUE Skyspace LA is the tallest open-air observation deck in California, offering visitors a unique 360-degree view of the city.

This year’s Capital Markets Power Panel will take place from 5:30 pm to 8:30 pm. Speakers to date include Moderator Lewis Horne, President, Greater Los Angeles-Orange County Region, CBRE, Inc., along with panelists Allen Staff, West Regional Executive, Commercial Real Estate Banking, Bank of America Merrill Lynch, and James C. “Watty” Watson, President & CEO, CT Realty. More speakers to be announced soon.

YPG UPDATE

Taylor HeadshotIn April 2016, YPG graduated its 12th class, growing the alumni base to 400+.  Both early and recent YPG graduates have represented very well in the commercial real estate industry as they have gone on to start their own companies, become executives at well respected firms, hold leadership positions on the NAIOP SoCal Board, and given back to their communities in a meaningful way.  Three of our recent graduates have gone on to win the 2016 NAIOP National Developing Leader Awards, including the current Vice Chair of the Alumni Committee Brad Schmitt, and Megan Burrows, who, after graduating from the SoCal YPG Program in 2011, went on to found the only other annual YPG Program in the country in San Francisco.

I am excited to Chair the 2016-2017 YPG Alumni Committee, and we are well underway with the goal of raising a bar that has already been set high from previous YPG leaders.  In addition to our well known networking events, this year the Alumni Committee will add more depth to the “Alumni Experience” by emphasizing the following: 1) Continuing Education and Leadership, 2) Impactful Community Outreach, and 3) Connectivity between OC and LA.  In a few short months we have already implemented a new Speaker Series Program for the Alumni, held a 100+ attendee mixer with CREW on the penthouse deck of one of the most iconic buildings in OC, and are less than a month away from what is sure to be the best Y-Games yet.  None of these achievements and future goals would be possible without the tremendous support from our sponsors, and I’d like to thank each one of them for investing in the future of the industry through YPG.  You can see our complete sponsor list on the YPG page of the website.

We have some great events lined up for the 2nd half of 2016 and first quarter of 2017 and I look forward to helping elevate this program to new heights.

Taylor Arnett
YPG Alumni Chair

GUEST Q&A: ASHLEY POWELL, NAIOP CHAIRMAN

Ashley

In addition to his role as NAIOP Chairman, Ashley Powell is Senior Vice President & Head of Transactions, Western U.S. and Bentall Kennedy U.S.

What influence have large capital players had on development?

Sizeable development projects are undertaken by large publicly held companies or private developers with an institutional capital partner. Large projects that do not fit these two categories are often sold upon stabilization to an institutional investor and therefore built with the institutional investor in mind. A typical joint venture provides for the institutional partner to invest 90% or more of the equity. As a result, the institutions seek to control all major decisions including financing, timing of sale, etc.  In a typical joint venture the large capital partner has the right to buy out the developer and then own 100% of the asset itself. The trend has been for more institutions to pursue “build to core” strategies where the goal is for the institution to control the real estate in the end. Finally, institutions, including pension funds and sovereign wealth funds, have invested in operating development companies to build portfolios through development. The combination of build to core strategies, institutional acquisitions of operating platforms, and the control mechanisms in traditional JV’s have resulted in large capital players having extraordinary influence over what is built and where it is built. The overall trend can be attributed to investor willingness to move out on the risk curve in search of higher yields.

 

What is the most important piece of advice for real estate companies looking ahead to succeed?

Real estate professionals are students of societal behavior. We study the trends and invest our talent, creativity and capital into projects designed to fill the current unsatisfied needs in the market. The speed of adaptation to meet the changing needs of society will maintain the competitive edge of those companies that succeed.

 

Of your thoughts on millennials, urbanization and sustainability, which one will have the greatest impact on development and why?

Millennials, urbanization and sustainability are part of the same equation. Urbanization and sustainability are driven by the values of the millennial generation.

 

What has been the biggest surprise in your role as NAIOP Chairman?

The breadth of the organization is surprising. NAIOP’s strength lies in its 18,000 members spread across North America. In visiting the chapters, I rub shoulders with many successful developers that have not recently attended a national NAIOP conference or forum.

 

What have you enjoyed the most in this role?

The people and the relationships we build are what differentiate the real estate industry from most other professions.  NAIOP members are passionate about improving their communities. They are fun to be with and stimulating to talk to.

 

What is the most important advantage to membership in NAIOP?

NAIOP is built on networking, education and legislative advocacy. I use it to establish and maintain the relationships that provide access to the best deals, to sharpen my insight into industry trends, and to protect our backs from unforeseen changes in government mandates. All three pillars of the purpose of NAIOP help us in our daily business.

NAIOP SOCAL DEVELOPING LEADERS MAKE AN IMPACT

Each year NAIOP selects 21 exceptional young professionals to receive 2016 Developing Leader Awards.  This year, two NAIOP SoCal members were named to this unique group. The annual award honors up-and-coming professionals under the age of 35 for their exemplary professional accomplishments, strong leadership and community involvement.

Congratulations go to Taylor Arnett,  Acquisitions Manager,  CapRock Partners, and Bradley Schmitt, Associate Director, Savills Studley.  In addition, YPG SoCal alum Megan Burrows (2011), who relocated to San Francisco and is now associate director, UBS Realty Investors, is also a Developing Leaders Award recipient.

Taylor HeadshotSchmitt 13Burrows Megan

NAIOP’S O.CON: THE OFFICE CONFERENCE COMING TO LA

OCON-verticalTuesday, November 1 marks the start of NAIOP’s O.CON: The Office Conference to be held this year in Los Angeles. Technology, demand and right-sizing are revolutionizing traditional office from every angle.

NAIOP’s O.CON leads the conversation on what’s driving the future of office. The conference will showcase creative spaces and retrofits that meet today’s demand, and talk about what to do with dinosaur inventory, hear from end-users on space requirements, and talk with developers and investors who are doing the deals. The local SoCal Chapter has been helping to plan the program and coordinate tours. Some of the planned tours for this year include The Arts District, CBRE’s Glendale Office, El Segundo Creative Office and Playa Vista/Silicon Beach.

UCLA VS. USC REAL ESTATE CHALLENGE COUNTDOWN: NOVEMBER 17

Revisedemailheader8-22

The battle of real estate brains is set for November 17 on the campus of UCLA.

Each year, NAIOP SoCal hosts a competition for graduate student teams from the Lusk Center for Real Estate at USC’s Marshall School of Business and Price School of Public Policy and UCLA’s Ziman Center for Real Estate at the Anderson School of Business. The teams spend weeks preparing comprehensive development proposals for a location to be determined. The final cases are then presented to an industry-leading panel of commercial real estate executives who determine the winning presentation.

Don’t miss the chance to witness the student’s live presentations, hear from the industry’s future leaders, and see who takes home the Silver Shovel.

“I’m always amazed by the creativity, diligence and professionalism of each team presentation. This event is so unique and a great way for the chapter to support the schools and their programs,” said Mark Mattis, NAIOP SoCal Real Estate Challenge Chair and Senior Vice President, PMRG.

Sponsorships are available – see the website for full details. Don’t miss your chance to support NAIOP SoCal and the students – mark the date on your calendar now!

Oh What a Night at the Fights!

naf2016 1 naf2016 2 naf2016 3 naf2016 4

This year was another exciting sellout for the annual NAIOP SoCal Night at the Fights. More than 1,000 commercial real estate professionals were in attendance on May 5 at Hotel Irvine for Celebracion 5 de Mayo. The night encouraged great business networking during The Warm Up pre-event cocktail hour, followed by a fantastic dinner, four bouts of boxing and MMA, and a fun-filled post-networking celebration called Round 2 Cantina.

“Each year we look to raise the bar to create an exciting event that goes beyond what our members and their guests expect. We proved again this year that this remains the best must-attend event in Southern California for the industry,” said Greg May, Night at the Fights chairman.

Night at the Fights is also an important fundraiser for the industry and community. This year the chapter donated $10,000 to Building Block Foundation Fund, a non-profit organization that brings together real estate professionals to support a common goal. The program was designed to enable the commercial real estate community to give back in an organized and meaningful way for the long-term future of Orange County.

Special thanks to the 2016 Round 2 Sponsor Stillwater Investment Group, Warm-Up Sponsors AIR and Xceligent, along with our other major sponsors Paradise Construction, Connect Media, Ten-X and Chubb.

MEMBERS IN THE NEWS

Stos Partners Acquires High-End Mixed-Use Asset in Carlsbad Village
Stos Partners, a privately held commercial real estate investment and management firm, has acquired a 22,000 square-foot mixed-use property comprised of retail, restaurant, creative office and residential space in the heart of San Diego County’s Carlsbad Village submarket. The property, which is 90 percent leased, is occupied by award-winning local restaurant and wine bar PAON, as well as a variety of retail and office tenants.

 

NGKF Capital Markets Completes $108.5 Million Recapitalization of Three Office Towers in Orange
NGKF Research Confirms Transaction is First Orange County Office Deal in 2016 Over $100 Million
NGKF Capital Markets announces the $108.5 million recapitalization of three high-quality Class A multi-tenant office buildings located in Orange, CA. The transaction includes 600 City Parkway West, a 199,075-square-foot building; 3800 Chapman, a 169,851-square-foot building; and 500 City Parkway, a 70,320-square-foot building. NGKF Capital Markets President of West Coast Capital Markets Kevin Shannon, along with Senior Managing Director Paul Jones and Executive Managing Director Ken White, represented the existing partnership Greenlaw Partners and Walton Street.

 

PCCP, LLC Provides Senior Loan for the Acquisition of a 25-Story Office Tower
PCCP, LLC announced today it has provided an acquisition loan to Michigan-based REDICO to acquire 150 West Jefferson Avenue, a 500,000-square-foot, 25‐story, Class A office tower located in downtown Detroit, MI. Built in 1989, the office tower is 89 percent occupied and includes some of Detroit’s most notable companies including Miller Canfield Paddock & Stone, Starcom MediaVest Group/Digitas, Lochbridge, Butzel Long, KPMG, and Jones Day.

 

George Smith Partners Secures Financing for William Penn Apartments
Commercial real estate investment banking firm George Smith Partners has successfully arranged financing for the acquisition of the William Penn Apartments, a 200-unit multifamily property situated in the Central Los Angeles neighborhood of Westlake on behalf of its client, Massie Capital, which plans to complete an overhaul of the space, according to George Smith Partners’ Principal Shahin Yazdi.

Members are encouraged to submit news of their latest transactions or people news to Jessica Spaulding Thompson.

NAIOP SOCAL WELCOMES NEW MEMBERS!

NAIOP SoCal would like to welcome 74 new members to the chapter between March 29th and August 29th. We look forward to seeing each of them at our upcoming events!

Roy Boustani
Trevor Fay
Jeffrey Potter
Bolour Associates Christina Skinnell
Cal Poly Pomona Andrew Kim
California State University, Fullerton Dean Sanchez
CapRock Partners LLC Patrick Daniels
CBRE Global Investors LLC Marc Rasmussen
Chapman University John Ferguson
Chapman University Doron Peled
Chapman University Alexander Sorto
Coldwell Banker Commercial Alliance Sarina El
Coldwell Banker Commercial BLAIR WESTMAC Dan De Leon
Colliers International Steven Ward
Colony Capital Inc. Jae Yi
Commercial Real Estate Exchange Inc. Matt Cors
Commercial Real Estate Exchange Inc. Mike DeGiorgio
ConAm Inc Chelsea Crook
CoreLogic Nathania Quach
CT Realty Investors James Watson
Cushman & Wakefield of California, Inc. Nico Napolitano
EBI Consulting Leo Bertolino
EZ Line Striping Corporation Alicia Pacheco
First Citizens Bank Peter Meshreky
Fortune Company Elina Segal
GLP Whitney Blundell
HFF Andrew Milne
Industrial Property Trust Adam Deierling
Intercontinental Real Estate Corporation Allen Logue
JLL Nick Beall
JLL Christopher Casey
JPMorgan Chase Bank, N.A. Chuck Carrillo
JPMorgan Chase Bank, N.A. Michele Keathley
Kang Spanos & Moss LLP John Kang
Marcus & Millichap Damon Wyler
MetroGroup Realty Finance Ivan Kustic
Millie and Severson, Incorporated John Grossman
Nevell Group Inc. Andrew Arnold
Pacific Southwest Realty Services Ryan Frankman
Permit Place, Inc. Michael Robinson
Pirooz Consulting Tania Pirooz
Plaza Bank Dain Court
PNC Bank Brad Hartstein
Prologis Blake Kelley
RSG Jeff Khau
Shaw Development Company Quinn Johnson
Sierra View General Contractor Baron Davis
Skla Andrew Kirsh
Snell & Wilmer Mark Johnson
Solar Optimum Bill McNeese
Sullivan Curtis Monroe Rob Wallace
Sunwest Bank Matthew Casserly
Sunwest Bank Logan Flagg
The Bendetti Company Aaron Weaver
The REMM Group Angela Mettler
U.S. Bank Jeremy Lynch
University of California Irvine Ryan Terracino
University of California Los Angeles Joseph Pfeifer
University of California Los Angeles Joseph Pfeiffer
University of California Los Angeles Ray Van De Walker
University of California Los Angeles Angela Weber
University of Southern California Jason Aftalion
University of Southern California Edgar De La Torre
University of Southern California Vy Pham
University of Southern California Jennifer Rocci
University of Southern California Bryan Russell
University of Southern California Brian Taylor
University of Southern California Randolph Wolters
US Bank Trevor Mates
Voit Real Estate Services C.J. Collins
Wells Fargo Commercial Real Estate Kelly Russell
Wells Fargo Insurance Services John Ferguson
Wells Fargo Insurance Services Audra Ziarnowski
Wright, Finlay & Zak Nicholas Hood

President’s Message

kJennings BofAEach day we focus on our work and specialization in commercial real estate, leaving little time to fully understand the impact our industry makes on a grander scale. According to NAIOP, commercial real estate development:

Contributes $528 billion to GDP.

Creates and supports 3.9 million jobs.

Yields $168 billion in wages and salaries.

New development and construction added 443 million square feet of new space across industrial, office and retail properties over a one-year period – that’s enough space for more than 1 million new jobs, growing companies and new technologies. Forecasts predict increased construction spending and growing investment in office, industrial and retail buildings will yield greater contributions to GDP through 2017.

That’s an important statement for our industry. And while we can appreciate commercial real estate’s impact at the national level, it’s just as important to recognize the impact of our member companies in this region. This year we will profile a number of firms who are leading the way in areas such as the environment, workplace, culture, mentorship and diversity, collaboration and more. Please take the time to get to know these firms.

I also want to recognize how hard our chapter is working to create value for its members. We’ve had a number of outstanding programs already this year that further differentiate our organization. I hope you had the chance to join us at our Kick-Off event at the Edwards Big Newport where we heard more on the auto industry in Southern California and its impact on commercial real estate, and watched an outstanding documentary on the Ford Mustang titled “A Faster Horse.”

We also presented the UCI Center for Real Estate’s first breakfast program in 2016, “Roadmap to Success: Top CEOs Talk Strategy & Leadership in Real Estate,” featuring insights from Brandon Birtcher, CEO North America, Goodman Birtcher; Patrick Donahue, Chairman & CEO, Donahue Schriber Realty Group; Frank Suryan, Jr., Chairman & CEO of Lyon Communities; and Charles Schreiber, Jr., CEO & Co-Founder, KBS Realty Advisors. I know we all appreciated their heartfelt and honest take on the realities of running a successful real estate business.

Looking ahead, I hope you’re planning to join us at one of our most iconic events of the year, Night at the Fights, to be held on May 5 at the Hotel Irvine. Destined to be another sell-out for 2016, corporate sponsors are encouraged to make their additional reservations now before tickets are open for public sale on April 8th.

I also want to say congratulations to the YPG 2016 class as they celebrate their graduation. I had the chance to see their work during the recent case competition which serves as the capstone event for the class. I am excited to see how hard this next generation is committing itself to being the best they can be. These are our future leaders – and we are in good hands, based on the members of this newest class and the more than 340 alumni peers they now join.

Finally, I want to recognize the hard work and diligence of our Legislative Affairs committee. This team, led by Kevin Ivey and advised by Talley & Associates, is once again watching out for our industry, especially in an election year!

It’s going to be a great 2016.

Kevin Jennings
President

Legislative Update

In this report … Tax Increase Initiative Stopped-Huge Victory. NAIOP Supports Balanced Approach to Air Quality Regulations. Ballot Box Planning. Minimum Wage Increases.   And much more … contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

Conway Collis Tax Increase Initiative Stopped – Huge Victory #2

First, split roll efforts were stopped, and now huge victory #2:  The statewide initiative that sought to go around Proposition 13 by imposing a “surcharge” of up to 1 percent on ALL real estate with assessed values of more than $3 million has been stopped, and will NOT be on the November 2016 ballot. The proponents said the surcharge would raise an estimated $7.7 billion, with almost all of that coming from commercial properties.  As with split roll, this does NOT mean they have given up completely. The proponents said they will try again.  The fact that the commercial real estate industry again took action to show our resolve to protect Proposition 13 sent a clear message to the proponents that they would have faced a very strong opposition, and had a major role to play in this great outcome.

 

NAIOP Supports A Balanced Approach to Air Quality Regulations

There have been several newspaper articles recently about the South Coast Air Quality Management District (SCAQMD).   Unfortunately, many of these articles have included statements about the business community which are simply not true.  NAIOP SoCal members have been leaders in building and operating commercial developments that help reduce air emissions.   We are also well aware of the extensive poverty issue facing the region, especially among children and disadvantaged communities, and the health effects poverty causes.  The fact is that air quality in our region has improved dramatically  while the poverty rate has increased; and now 25% of the children in our region live in poverty, the worst rate in years.  It is imperative to lower that poverty rate.  Therefore, NAIOP SoCal will continue to support achieving the necessary balance to both continue reducing emissions and have a thriving economy and jobs market that will lift people out of poverty.  It can be done.

 

Ballot Box Planning

There are two major ballot box planning initiatives that must be defeated – one in Orange County and one in LA County.  These will be major tests for our industry, as both would essentially stop all development in Costa Mesa and the City of LA. The one in Costa Mesa has obtained the necessary signatures and will be on the November 2016 ballot.

The proponents in LA were attempting to have the “Neighborhood Integrity Initiative” on the November ballot as well. However, they have stopped and say they will “refine” the language of the initiative and try to have it on the March 2017 city ballot.  It is clear the proponents saw they faced a strong opposition, and hope their chances are better in a lower voter turn-out election.

We have seen a growing trend of people trying to stop development by the initiative process.  That is why it is imperative we fully engage to defeat these two efforts to stop this trend now so it does not spread.

 

CEQA – Level of Service (LOS) to Vehicle Miles Travelled (VMT)

Many o f you are familiar with having to mitigate traffic impacts in CEQA documents through an LOS analysis.  The state wants to drop LOS from its CEQA Guidelines and replace it with VMT.  The legislature said their focus was on transit priority areas (TPAs, also known as TODs), but the draft guidelines went way beyond TPAs to include ALL land use projects, and expanded it to transportation projects.   NAIOP SoCal and a broad coalition have strongly responded that to apply VMT outside of TPAs is beyond the scope of the authority granted by the legislature, along with several other issues.  This is an effort that must be vigorously opposed, as it is unclear what mitigation measures, or their cost, could be used by the commercial real estate industry.  In addition, the regions’ transportation agencies have indicated that the guidelines would stop road expansion projects that are vital to our economy.  The VMT proposal now goes to the Natural Resources Agency where we will be actively engaged.

 

More Taxes Coming?

To fund transportation projects and their homelessness efforts, both LA City and County officials are looking to raise taxes.  On the transportation front, LA County already collects 1.5% in sales tax from three past ballot measures.  LA Metro is evaluating whether to put a measure on the November 2016 ballot to raise it another .5% to fund $120 billion in projects over the next 40 years. That would give LA County a base sales tax rate of 9.5%.

Regarding homelessness, both the City and County are evaluating whether they each will raise their sales tax even further as well as their parcel taxes. The County is also considering seeking authority to impose a personal income tax on income over $1 million.  Not to be outdone, the City is looking at a linkage fee on commercial development and a document transfer fee on commercial real estate.

And, of course, there is a statewide initiative out for signatures to extend the Proposition 30 income tax on higher earners and, for you smokers, a cigarette tax.  It would not be surprising to see other taxing concepts arise, so we all need to stay alert and hold on to your wallets.

 

Minimum Wage Increases

There has been a lot of activity surrounding efforts to raise the minimum wage.  The City of LA, the County of LA and Santa Monica have all passed laws increasing the minimum wage to $15 an hour by 2020.  Pasadena and Long Beach have passed increases that are slightly different, but will probably result in a minimum wage of $15 by 2021. So far all of the minimum wage increases have indicated the minimum wage will increase automatically by the amount of the CPI after it reaches $15 an hour.  Malibu, West Hollywood, Glendale and Pomona are all studying the possibility of raising the minimum wage.

No city in Orange County has yet shown an interest in raising the minimum wage.

One statewide initiative that would raise the state minimum wage to $15 an hour has qualified for the November,2016 ballot, and there is a second one out for signatures.  Yet, these may NOT go on the ballot due to a bill, SB 3, that is now before the Legislature that would raise the minimum wage from its current $!0 an hour incrementally to $15 an hour by 2022, or 2023 for businesses with 25 employees or less.  After reaching $15 an hour, the minimum wage would automatically increase annually by the CPI with a cap of 3.5%.  During the ramp up period to the $15 minimum wage, the Governor can suspend the increase two times under specific circumstances, delaying the increase a year.  This bill is expected to be taken up very quickly by the Legislature.

 

YPG Announces Winning Team for CapRock Cup in 2016 Case Competition

Caprock2016
2016 Winning Team

Each year the NAIOP SoCal Young Professionals Group (YPG) holds a case competition for its current 35-member class of real estate professionals. This year, five teams of seven professionals each presented their strategic plan and proposal on the highest and best use for an active commercial real estate site located in Huntington Beach owned by Shopoff Realty Investments. The competition took place at Irvine Company’s newly constructed 200 Spectrum office tower.

Each team was asked to act as a consultant to Shopoff by providing them with a highest and best use strategic plan and recommendation for their property, focusing on maximizing overall value. Teams were judged by a panel of five industry leaders, including Jon Pharris, CapRock Partners; William Shopoff, Shopoff Realty Investments; Bob Voit, Voit Real Estate Services; Dan Heinfeld, FAIA, LPA, Inc; and Kevin MacKenzie, HFF.

The winning YPG team, receiving the CapRock Cup, included: Derreck Barker, HFF; Alex Filler, Dedeaux Properties; Analise Guttman, Prologis; Lindsey Ensign Olson, Ten-X; Sam Overton, Bank of America Merrill Lynch; Samantha Shaughnessy, Hines; and Lucas Stensby, KPRS Construction. CapRock Partners, a private commercial real estate investment firm based in Orange County, became the first multi-year sponsor for the case competition, establishing the CapRock Cup as its grand prize trophy.

“It is an honor to be a part of this amazing process and inspiring to participate in the education and cultivation of tomorrow’s real estate leaders,” said Bill Shopoff, CEO and founder of Shopoff Realty Investments. “As a firm focused on transforming value-add assets, the quality of contribution of each of the teams speaks strongly to the future redevelopment of our cities and the industry overall.”

The case competition is a culmination of the YPG Class’ 12-month, 70-hour course designed to educate, develop, connect and elevate the commercial real estate industry’s emerging leaders.

“The YPG program continues to experience significant growth each year, building on its success through our alumni-run committee, which grows in strength with every new graduating class. Over the last four years the case competition has experienced some of the largest growth within the program. From a theoretical site, to what it is today with a live site and project sponsor, the case competition has evolved and it has been impressive to watch,” said Lee Redmond, YPG Curriculum Committee Member in charge of the Case Competition and Associate Director at HFF.

caprock 2 caprock 3 caprock 4 Caprock 1

YPG Update

Darren-FosterThe YPG alumni held their first annual “Kick Off the New Year” event at The Wayfarer in Costa Mesa on Saturday, February 20, 2016.  This event replaced the annual holiday party and was a huge success with over 100 alumni and significant others attending and sharing a full dinner buffet, drinks and live music from the band Sega Genecide; a 90’s cover band. The exclusive event gave alumni the chance to connect on a more social level and to see old friends and make new ones.

 

 

YPG WayfarerThe current YPG class  has reached the end of its year-long commitment, celebrating graduation and hearing from respected industry leaders such as CBRE’s Vice Chair Darla Longo and Realty Mogul’s CEO Jilliene Helman.  I want to extend my congratulations to the 2015-16 graduating class and encourage them to stay involved in NAIOP SoCal and YPG alumni activities.

ypg 2016

As my term as YPG Alumni Chair comes to an end, I wanted to highlight a few key “firsts” from this year’s Alumni activities that are worthy of note:

  • Our first-ever joint networking mixer with CREW (Commercial Real Estate Women) provided an opportunity for both groups to learn more about each other’s activities.
  • A new LA Subcommittee was formed to enhance networking opportunities for YPG alumni in the LA area.
  • In addition to our regular community outreach with Big Brothers/Big Sisters and Working Wardrobes, our Crystal Cover Cancer “Hike for the Cure” provided both a terrific networking activity and raised funds for a good cause.

You’ll hear more details on these and our other activities in the next issue of YPG News, none of which would be successful without the tremendous support of our YPG 2015-16 Sponsors.  My grateful appreciation to you, as well as the hardworking Alumni Committee – your support and participation continues to ensure that we fulfill YPG’s mission to educate, develop, connect and elevate the next generation of commercial real estate leaders.

It has been a privilege to serve as 2015-16 YPG Alumni Chair, and my congratulations to Taylor Arnett and Brad Schmitt as they take the helm of the 2016-17 Alumni Committee.  With your leadership, I know that YPG is in good hands.

Darren Foster
YPG Alumni Chair

NAIOP SoCal-CRE Fellowship for 2015-16 Awarded

RandyMaplesRandall Maples was awarded the 2015-16 NAIOP SoCal-CRE Fellowship, a combined learning experience and financial award designed to develop and prepare future real estate industry leaders. This marks the seventh year that the UCI Center for Real Estate and NAIOP SoCal have partnered to award scholarships to deserving industry leadership candidates, helping to launch a number of very successful careers.

Maples is in land acquisition with Trumark Homes, a California-based homebuilder. In this role he is responsible for land acquisition, financial underwriting, and diligence assistance, and most recently served as land acquisition manager. His background also includes experience with Land Advisors and Colliers International.

The $7,500 scholarship award will support Maples’ studies at UC Irvine’s Merage School. He began the MBA program in September 2015. Additional benefits of the Fellowship include the opportunity for Maples to attend meetings of the NAIOP SoCal Board of Directors.

“It’s important for our chapter to support the next generation of industry leaders. Maples stood out for the work he’s done to date in his career and his commitment to building his resume of experience and knowledge,” said Kevin Jennings, 2016 NAIOP SoCal president. “NAIOP is proud to support the UCI Center for Real Estate, and share the common goal of selecting the best and brightest candidates who are pursuing and excelling at a career in commercial real estate.”

The Merage School is ranked among the top 5% of accredited business schools in the U.S.  in 2015, according to Financial Times. The full-time MBA program is ranked 7th among public universities and 21st in the U.S. overall, according to Financial Times’ 2015 Global MBA ranking report.   The Executive MBA (EMBA) program is ranked among the top 25 in the U.S., according to U.S. News & World Report’s 2013 ranking of EMBA programs.

“It’s an honor to receive such a prestigious fellowship and to be recognized in our industry.  NAIOP’s commitment to the development of the next generation of industry leaders is exemplary.  I strive to use my educational experience at UCI and industry experience to bring another perspective and creative thinking to further this effort.  I’m grateful for the opportunity to network and learn from such a high-caliber group of individuals from our industry,” said Maples.

Commented Sharon Nakamura-Brown, Associate Director for the Center for Real Estate, “Partnerships with organizations such as NAIOP SoCal are what make the difference in elevating the student experience and developing our talent pool at UCI.  This fellowship initiative is one of the several ways our community partners can support the sustainability of our comprehensive real estate program.”

Night at the Fights – May 5, 2016

N@F2016-header_v3

Known as the premier business networking and client celebration event for the commercial real estate industry, Night at the Fights is back!

There is not a single event in Southern California that brings together almost 1,000 real estate executives for a night of high-octane sports competition, entertainment, great food and the best industry networking. This year’s Night at the Fights will be held on Thursday, May 5, 2016 at the Hotel Irvine.

This year’s event theme is Celebracion Cinco de Mayo. The night starts with live mariachis and cocktails during The Warm-Up.  The Main Event includes four boxing and MMA bouts, along with a gourmet dinner. The event also features the Round 2 NAIOP SoCal Cantina that will include live Latin music, casino games, cigar selections and more networking. Raffle tickets will be sold that night providing the opportunity to win one of three exciting Grand Prizes.

“Each year, we bring together hundreds of real estate professionals who experience a premier evening with peers and clients. There is nothing like it in our industry, making it a true must-attend occasion,” said Greg May, NAIOP SoCal 2016 Night at the Fights Chairman and regional managing director with NGKF.

Powerful sponsorship opportunities are still available –  click here for details.

A portion of the proceeds from the event will benefit Building Block Foundation Fund, which offers the commercial real estate industry an opportunity to invest in the future of Orange County’s youth.  Created in 2004, Building Block is a philanthropic organization that brings together real estate professionals to support a common goal. The program was designed to enable the commercial real estate community to give back in an organized and meaningful way for the long-term future of Orange County.

Corporate sponsors are urged to confirm their advance ticket purchases as soon as possible.  Tickets go on sale to the full NAIOP membership on April 8th.

Were you there? Two Great Events!

The Auto Industry in High Gear – Driving Economic Growth and Real Estate Expansion in SoCal


kick off 10 kick off 9

IMG_7104 IMG_7076

On Thursday, January 14, NAIOP SoCal held a unique real estate event that drew more than 250 attendees to the Edwards Big Newport Theater in Fashion Island.

The Auto Industry in High Gear – Driving Economic Growth and Real Estate Expansion in SoCal featured an insightful presentation on the automotive industry by Avison & Young’s Principal and Automotive Group Director Jodi Meade. She shared compelling data on the business, citing comparative auto trends impacting the nation and Southern California. She shared that in 2009 there were 20,010 total dealerships and under 10 million cars sold in the U.S. In 2015 the U.S was at 16,400 dealerships, with 1,300 of those in California. There were 17.3 million cars sold in the U.S. in 2015 with 2 million of those sales in California. According to Meade, “You can see by the numbers that automotive dealerships are a significant driving force in our economy, which is why the government had to bail out the auto manufacturers in 2009 – there was no other option!!”

Looking ahead, she noted that 2016 should represent the high water mark for auto sales in the U.S., estimated at 17.7 million car sales. Meade added, “All this certainly bodes well for the real estate market provided our economics continue.  Cap rates are remaining low with our continued low interest rate environment.  The auto industry is one of the first indicators that the market is changing.”

Following Meade’s presentation, the attendees enjoyed a VIP showing of “A Faster Horse,” an acclaimed documentary on the 50th anniversary of the Ford Mustang. The Ford is one of the most iconic car brands in the world and the documentary followed its outstanding history, from Henry Ford to Lee Iacocca to Steve McQueen. The documentary was introduced by special guest Alessandro F.Uzielli, Ford family member and head of the Global Brand and Entertainment division for Ford.

Guests also had the unique opportunity to see classic and new Ford Mustangs on display at the theatre. It was a truly unique real estate evening for all.

 

March Madness!

On March 15th, more than 150 real estate professionals joined together at the Yard House to kick off March Madness. It was another great NAIOP SoCal event!

March MadnessMarch Madness 2 March Madness 3

Members in the News

NGKF Continues Expansion of National Capital Markets Platform

NGKF added to its rapidly growing Capital Markets division with the hiring of powerhouse West Coast investment sales brokers, including newly named West Coast President of NGKF Capital Markets, Kevin Shannon. Shannon and 14 capital markets professionals joined NGKF in a major move that propels NGKF Capital Markets to the top of the ranks on the West Coast, including major gateway cities Los Angeles and Seattle, and further solidifies its leading national presence.

 

Stirling Development Announces Hire of Jason M. Huber as Project Manager

Stirling Development hired Jason M. Huber as Project Manager. In his new role, Huber will oversee and lead project development at the firm’s major master plan development projects including Southern California Logistics Centre (SCLC), the 2,500-acre commercial and industrial complex entitled for 60 million square feet of development in Victorville, as well as Ocean Ranch, the 450-acre commercial, industrial and residential master plan in Oceanside.

 

PCCP, LLC Provides $27.2 Million Senior Loan for the Acquisition and Renovation of Hyatt Fairfax

PCCP, LLC provided a $27.2 million senior loan to a joint venture between Songy Highroads, LLC and its institutional capital partner for the acquisition and renovation of the Hyatt Fairfax at Fair Lakes. The 316-room full-service hotel is located 20 miles west of Washington, D.C in Fairfax County, Virginia.

 

Lincoln Property Company Announces FLIGHT at Tustin Legacy

Lincoln Property Company Southern California (Lincoln) proudly announces FLIGHT at Tustin Legacy – a brand-new, distinct office development located in the heart of Orange County. FLIGHT is a masterfully designed 870,000 SF mixed-use campus woven through 38.74 acres in the Airport office market. “FLIGHT helps you redefine your work life through its groundbreaking building design and the unparalleled amenities available just outside your office,” says Kevin Hayes, Executive Vice President at

Lincoln. “Unlike a bland cluster of cubicles, FLIGHT offers an inspiring office environment that enables your team to push the boundaries of what is possible, enjoy work, and ultimately remain motivated and productive.”

 

J.P. Morgan Asset Management-Global Real Assets Acquires  Retail Portion of Santa Monica Mixed-Use

J.P. Morgan Asset Management-Global Real Assets acquired approximately 20,000 square feet of multi-tenant retail located at the base of an oceanfront mixed-use development in Santa Monica. Institutional investors advised by J.P. Morgan Asset Management-Global Real Assets have engaged BrandView Capital Partners, a Santa Monica-based commercial real estate investment, management, and advisory firm, to provide owner’s representation services for the property.

 

Colliers Adds Senior Investment Pro to West Region

Michael Roberts joins Colliers as a managing director. Roberts, who formerly served as a senior broker and director with Cushman & Wakefield’s Southern California Capital Markets Group in San Diego, will focus on representing institutional owners of office and R&D properties throughout the West. He will remain based in San Diego.

NAIOP SoCal Welcomes New Members!

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 77 new members to the chapter between December 18th and March 28th. We look forward to seeing each of them at our upcoming events!

Andre Silva
Advance Builders James Schiermeyer
American Realty Advisors Parker Hutchinson
Bank of America Merrill Lynch Sean Grubbs
Barney and Barney, a Marsh & McLennan Agency Taylor Lister
Bascom Group James Singleton
Beecher Carlson Danielle Ramberg
The Bendetti Company Aaron Weaver
Bixby Land Company Chris Clark
Bixby Land Company William DeLaney
Bixby Land Company Natalie Naranjo
Cal Poly Pomona Joshua Delgado
Cal Poly Pomona Nicole Rau
Care Trust REIT Inc. Joe Callan
CARR WORKPLACES Luis Ayala
CARR WORKPLACES Amber Goodwin
CARR WORKPLACES Tara Hansen
CARR WORKPLACES Mark Pena
CARR WORKPLACES Nora Zepeda
Cedar+Mac Asset Intelligence Chase McWhorter
Colliers International David Rowley
Cordia Capital Management Nick Nikoghosian
Cordia Capital Management Anastasia Russell
Cox, Castle & Nicholson LLP Amir Sadr
Cresa Partners John Blanchard
Cushman & Wakefield of California, Inc. Kyle MCGillen
DJM Capital Partners, Inc. Robert Miller
Gensler Amanda Colton
George Smith Partners, Inc. Ryan Parker
Golden West College Anna Smirnova
Grandbridge Real Estate Capital Thomas Turnage
Greenlaw Partners John Blanchard
Greenlaw Partners Adam Geiger
Greenlaw Partners Dave McKinney
Greenlaw Partners Dean Navarro
Greenlaw Partners Wil Smith
HFF James Kline
Hines Brett Weekley
HKA Elevator Consulting, Inc. John Reynolds
Howard Building Corporation Nima Namdar
Hudson Pacific Properties James O’Connor
Irvine Company Office Properties Gabriella Cera
Irvine Company Office Properties Scott Peterson
Irvine Company Office Properties Randall Woodworth
J.P. Morgan – Real Estate Banking Todd Teal
KBS Realty Advisors Inc. Benjamin Yan
Kimley-Horn Associates Danh Duong
Ladder Capital Finance Lonnie Vidaurri
LBA Realty Michelle German
LBA Realty Mike Margileth
Lowe Enterprises Real Estate Group, Inc. Vickie Ivey
Lowe Enterprises Real Estate Group, Inc. Ryan Kvalvik
Lowe Enterprises Real Estate Group, Inc. David Sonderegger
Mark IV Capital, Inc. Justin Basie
Millie and Severson, Incorporated John Carter
Newmark Realty Capital, Inc. Amit Tyagi
Prologis Jorge Solis
RiverRock Real Estate Group, Inc. Steve Core
Roux Associates Darby Johnson
Snell & Wilmer Joseph Coleman
Stos Partners Forrest Wylder
Stream Realty Partners L.P. Mike Adams
Stream Realty Partners L.P. Paul Yoder
Sunwest Bank Francesca Braniger
Ten-X Marc Carbone
Ten-X Jim Palmer
Thrifty Oil Co. Sean Tabor
Unispace Andrew Hales
University of California Irvine Joshua Hillman
University of San Diego Jason Rastegar
University of Southern California Gregory Earnest
Ware Malcomb Heather Shreve
Waypoint Property Group Jeff Gordon
Waypoint Property Group David Team
Wells Fargo Insurance Services Phillip Rhiner
Wells Fargo Real Estate Group Sott Kapin
Westcore Properties Nick Marcos

President’s Message

Tom_Wulf_headshotThis has been a busy year for our industry and our chapter.

Let me first congratulate the USC team on their winning proposal at the annual NAIOP SoCal UCLA vs USC Real Estate Challenge. I was honored once again to hear the ideas developed by the student teams of both schools. Our industry is going to be in good hands as these young minds continue to make their contribution to the future of commercial real estate.

I’m also excited about our ongoing partnership with UCI. We announced our latest CRE-Fellowship recipient, and our YPG program put together “A Day in the Life” for UCI real estate students.

These important programs and events continue to give our chapter the opportunity to share knowledge and support the next generation. I encourage you to learn more about our initiatives with UCLA, USC and UCI.

Please also take the time to learn more about the Kidworks Building Dreams campaign. NAIOP has had a long-standing role with this successful local charity providing time and talent, and recently made a financial contribution to help support their ongoing expansion. Through the Building Dreams campaign they will be able to make an even greater impact on at-risk youth in the community, and we are honored to play a role in their success.

Finally, I have enjoyed serving as President this year and want to share my appreciation for my fellow board members who work diligently alongside me to bring about the best in our core focus areas of education, legislative support and business networking. Our chapter remains one of the largest in the country and it is due to the active support of our members and sponsors. I particularly want to thank the leadership of the companies who stepped up in 2015 as Chapter Sponsors. We can’t do our job without your financial commitment.

I wish everyone a wonderful holiday season and the best in 2016.

Tom Wulf
President

2016 Premiere Kick-Off Event!

2016 Kick Off HeaderOn Thursday, January 14th, experience a high octane evening of sights and sounds when we delve into the impact of the automotive industry on the Southern California economy and get up close with the Ford Mustang – one of the most iconic car brands in the world. Hosted at the beautiful Edwards Big Newport, guests will get to see vintage and state-of-the-art Mustangs up close, hear about the evolution of the auto industry in Southern California, and then watch the Mustang’s astonishing history – from Henry Ford to Steve McQueen.  See the trailer here for the movie that Inc. magazine calls a “must see” for every entrepreneur.

Don’t miss our unique Kick-Off Event for 2016 – and we’re making this a couples’ evening, so be sure to invite your spouse!  There’s also a special discount for Developing Leader (DL) Members – so watch for a separate email with more details! Click the button below to register now!

Register now button

Legislative Update

In this report … No Statewide Split Roll Ballot in 2016. Signature Gathering Underway for Ballot Measure to Tax Wealthy Property Owners. New SCAQMD Board Members Bring Business Perspective to Board. And much more … contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

Happy Holidays and Best Wishes for the New Year!

Chairman Kevin Ivey and the members of the Legislative Affairs Committee wish each and every NAIOP SoCal member the best of holiday seasons.  In 2016 we will again be facing an important election year, so plan to hear quite a bit from the Committee and the Chapter’s Political Action Committee chaired by Marty Stradtman.  We will be closely watching California ballot measures as well as local, regional and state elections.  So, by way of a year end update, here is some of the good news and some of the bad news.

 

The Good News

No Statewide Split Roll Ballot Initiative in 2016!

The industry’s hard work to block efforts to create a spit roll property tax has again been successful.  The bill, SCA 5, by Senators Hancock (D-Berkeley) and Mitchell (D-Los Angeles), to put a split roll initiative on the ballot failed; and Governor Brown announced that he would not support such an effort.  Now, the leaders of the “Make It Fair” campaign have abandoned their efforts to put an initiative on the November, 2016 ballot.  While split roll is dead at the ballot for 2016, look for this group to try again in the future.

 

The Bad News

Signature Gathering Underway for Ballot Measure to Tax Wealthy Property Owners

State Board of Equalization member Conway Collis is gathering signatures (only 585,407 needed) for a 2016 initiative to increase property taxes to fund poverty reduction programs. The proposal would impose a surcharge on residential and commercial real estate with an assessed value of over $3 million. The surcharge is based on a sliding scale ranging from 0.3 percent for property valued at $3 million to 0.8 percent for property assessed at $10 million or more.

 

More Good News

Two New SCAQMD Board Members Bring Business Perspective to Board

Larry McCallon, the Mayor of the City of Highland, was unanimously elected to serve a four-year term on the SCAQMD Board.  Mayor McCallon replaces Chino Mayor Dennis Yates and brings a small business owner’s perspective to the AQMD Board.  In a contested race, Lake Forest City Councilman Dwight Robinson defeated incumbent Santa Ana Mayor Miguel Pulido to represent the cities of Orange County on the Board.  Councilman Robinson is vice president and general manager of Los Angeles Harbor Grain Terminal, a Los Angeles port business that loads agricultural goods into cargo containers.  The two new appointees will begin four-year terms on the SCAQMD Board in January 2016.  Your Legislative Affairs team has known Mayor McCallon and Councilman Robinson for many years and has a good working relationship with both.

 

The Good and The Bad

California Legislative Scorecard – Who supports Business and Who Doesn’t!

The California Chamber of Commerce has released its legislative scorecard, which tries to quantify which legislators support issues related to improving the business climate in the state.  It also highlights those legislators who are supporting measures that are squeezing employers and killing jobs.  How are your local legislators rated?  What is your local association doing to help elect more people that understand the importance of improving the business climate in California?  Click Here to see the Vote Record.

 

More Bad News!

Study Says State Has Lost 9,000 Businesses

A new study says that California’s business climate is driving jobs out of the state.  The study focuses on the past 7 years and reports that Texas has been a prime beneficiary of the “Golden State’s hostile business environment.”   Click Here to read about it.

 

Good News, but….

Most of State Exceeding Water Conservation Targets

Our friends at the CalChamber report that Californians reduced water use by more than 26% during September, according to the State Water Resources Control Board. The conservation rate exceeded the Governor’s 25% mandate for the fourth month in a row.  However, even though there has been water savings, some water districts are implementing fines, and the State is imposing fines on water districts that are not meeting the demand to save.

 

And, Finally, Some More Very Good News

Lighting Control Reforms Adopted by State Energy Commission

After almost a year of working with the California Energy Commission, NAIOP SoCal’s Sacramento representative California Business Properties Association (CBPA) has reported that Energy Commission, Docket No. 15-BSTD-01 was adopted to address issues related to the 2016 Building Energy Efficiency Standards Lighting Retrofit Code.

As California’s energy code has led the way in the nation making sure that our buildings are the most efficient in the country, from time-to-time regulations may not work out in the real world as they do on paper. Even with thorough analysis and an inclusive stakeholder process, the lighting retrofit requirements in question have turned out to be more complicated and burdensome to implement than expected when the Commission adopted the package.

On behalf of the commercial, industrial, and retail real estate industry CBPA worked with the California Energy Commission (CEC) and other stakeholders on regulatory language that will still achieve the same, if not greater, energy savings by providing an alternative path to compliance, which will bring down the cost and complication of compliance in some instances and assure that fewer tenant improvements are stalled due to cost effectiveness concerns.  Following is part of the release from the CEC on this topic:

“The Energy Commission adopted nonresidential lighting standards that allow for several cost effective approaches to lighting upgrades. Compared to the 2013 lighting alteration standards, the newly adopted standards are expected to save an additional 112 gigawatt hours of electricity per year – equivalent to the annual electricity use in about 16,000 homes. Energy efficiency building standards are updated every three years. These nonresidential lighting standards are part of the broader 2016 Building Energy Efficiency Standards adopted in June.”

 

YPG Update

Darren Foster It’s been a very good year for YPG. Across the board, involvement in our events and interest in the organization continues to increase.

Looking back, I want to thank everyone who came out and supported YPG at signature events such as the Y Games and the Big for a Day event. We’ve worked hard to make these programs an important reflection of our organization and the multiple ways we can have an impact on our industry and community – whether it’s a fun day of networking and friendly “sports” competition or giving back to an important organization such as Big Brothers Big Sisters.

I also wanted to recognize everyone who joined us in Santa Monica at the Bowlmor Lanes for one of our first Los Angeles outreach events. We want to continue to build YPG and increase its membership in the LA area. Watch for details on a downtown LA event in early 2016.

Partnerships were also a strong part of our success this year. We had tremendous attendance at our joint YPG- CREW event. In the upcoming year, look for more events that bridge our work with other solid real estate organizations.

Of course, the most important key to our success is each year’s new YPG class. I want to remind everyone that applications for the 2016-17 YPG class are now open. Applications and all supporting documentation must be received by January 8, 2016. As you know, each year a select group of 35 real estate professionals unite to take part in the twelve-month, seventy-hour course designed to educate, develop, connect and elevate the commercial real estate industry’s emerging leaders. Among YPG’s nearly 300 alumni are C-level executives at their respective firms, principals who have founded their own companies and NAIOP SoCal Board Members. Please encourage those you know in the industry to consider submission. Click here for more information.

Also, details should be available soon for our January event. It will be a great way to start the year, share 2016 goals and network with fellow YPGers. This event replaces our year-end holiday event, creating a great start for all of us to the New Year.

Finally, I want to thank our YPG sponsors. Their support continues to make a difference in our success and growth. We applaud their interest and commitment to YPG: Platinum Sponsor – LBA Realty; Gold Sponsors – Buchanan Street Partners, Caprock Partners, Hines, KPRS, Panattoni; Silver Sponsors – Alison, Bank of America Merrill Lynch, Cox Castle & Nicholson, Goodman Birtcher, Luther Burbank Savings, MC Five Mile, Millie & Severson, Prologis, US Bank, and Ware Malcomb.

Thank you all for a wonderful 2015 and I look forward to seeing you in January.

 

Darren Foster, Chairman

YPG Alumni Committee

 

USC Takes Silver Shovel!

REC 2015 Team USCOn November 19, 2015 more than 300 real estate professionals gathered at USC’s Town and Gown for the annual NAIOP SoCal UCLA vs USC Real Estate Challenge. During this iconic Southern California real estate event, five-member student teams from the Lusk Center for Real Estate at USC’s Marshall School of Business and Price School of Public Policy and UCLA’s Ziman Center for Real Estate at the Anderson School of Business competed head to head on their innovative development proposals for the highest and best use of a 950,000-square-foot former indoor shopping mall in Hawthorne.

“It’s exciting to see the new ideas from our student teams. This year was an especially challenging site – and the diversity of proposal presentations from each student team was dynamic. The Real Estate Challenge demonstrates the quality of our next generation’s thinking,” said Angela Azizian, 2015 NAIOP SoCal Real Estate Challenge committee chair.

The UCLA team presented their concept called Hawthorne Crossing, a true mixed use development, with 390 multifamily apartments, 250,000 sf of ground floor retail with major anchor tenants, 100,000 sf of class A medical office and more than 55,000 sf of community oriented uses. As the UCLA team shared, their proposal would be “a catalytic development that will start the downtown Hawthorne renaissance.”

USC’s proposal, dubbed Avenir Park, was called a new urban park that provides a venue for celebration and events, while adding much needed housing, retail, and hospitality programming to Hawthorne. As USC’s student team shared, “Avenir means ‘future’ and looks to bring a bright future to Hawthorne.”

The teams spent their day presenting proposals to a panel of 12 industry-leading judges and then presented their concepts to the assembled audience at USC’s Town and Gown.  Based on their presentations and proposals, the judges gave the 2015 Silver Shovel to the USC team.

The Real Estate Challenge event featured emcee James “Watty” Watson, CEO and president, of CT Realty, and football game commentary from Chris Roberts, former voice of the Bruins, and Pete Arbogast, voice of the Trojans.

“Each year the student teams devote countless hours to develop the best proposal for presentation. As faculty, our goal for students is to have them experience a real project, to invest in generating their own vision, to build ties to teammates and the industry, and to exercise the skills they’re picking up in class – in other words, to make the transition from students to real estate professionals. Both the USC and UCLA teams made all of us proud of the next generation of industry leaders,” said Christian Redfearn, Associate Professor, USC Sol Price School of Public Policy.

UCI Experiences “A Day In The Life”

NAIOP SoCal, in partnership with the Merage Real Estate Association the UCI Center for Real Estate, hosted the 2nd annual NAIOP YPG Day-In-The-Life Event on October 20, which was held on the UCI campus.

It was a great opportunity for students to meet 35 of the industry’s top young leaders from all facets of the commercial real estate industry. The event included several presentations from YPG that provided an overview of a variety of functions in commercial real estate and presented an opportunity to network with those professionals. It’s the second year that NAIOP has incorporated one of the YPG class assignments in with UCI.  This year included approximately 54 UCI students.

NAIOP-CRE Fellowship Awarded to Randy Maples

Randy Maples was named recipient of the 2015-16 NAIOP-CRE Fellowship.  The fellowship is an ongoing initiative to support the UCI Center for Real Estate, and share the common goal of selecting the best and brightest candidates who are interested in pursuing and excelling at a career in commercial real estate. The Center joined forces with NAIOP SoCal to help develop today’s students into tomorrow’s industry leaders, and NAIOP SoCal has committed to funding the Real Estate Fellowship program for five years.

Merage MBA student Randy Maples ’18, is in land acquisitions for Trumark Homes in Newport Beach.

The $7,500 scholarship award will be used to support Maples’ studies at UC Irvine’s Merage School. One of the benefits of the Fellowship is that Maples will also attend meetings of the NAIOP SoCal Board of Directors where he will have the opportunity to network with the board comprised of some of the region’s top real estate executives.

KidWorks Building Dreams Campaign Receives NAIOP Donation

kidworks logoNAIOP SoCal made a $5,000 donation to the KidWorks Building Dreams campaign, marking one more milestone in the chapter’s ongoing work with this important organization.  The $5,000 donation was made in honor of Ava Steaffens, former CEO of KidWorks, who stepped down after many years of service.  She also spearheaded the current Building Dreams expansion campaign.

KidWorks is one of the charities supported by the Building Block Foundation Fund. The Chapter contributes to that organization each year from Night at the Fights proceeds. NAIOP SoCal members have donated time and talent in planning the building expansion.

Based in Santa Ana, KidWorks serves 700 children, youth, and parents through weekly programs and reaches over 3,000 community members annually from three Neighborhood Centers. From the moment that Kidworks opened the Dan Donahue Center in 2005, they were almost filled to capacity. This confirmed that the need remains great with nearly 300 children on the waiting list and hundreds of others who have yet to sign up for urgent support.

The KidWorks Building Dreams Campaign will purchase the building next door to the Dan Donahue Center to double its size and the impact of KidWorks in the community. At the core of KidWorks is the power to change a single life and the power of that single life to change a family, a neighborhood and the entire community.

NAIOP’s donation will be eligible for a matching grant from another donor which will result in an overall contribution of $10,000 to the Building Dreams fund. For more information or to make a donation, contact KidWorks at kidworksonline.org or call 714.834.9400.

UCI Breakfast – Roadmap to Success: Top CEOs Talk Strategy & Leadership

Kick off the new year by attending the January 26, 2016 UCI Center for Real Estate Breakfast Series Event, “Roadmap to Success.”  This event is coordinated by NAIOP SoCal as part of its sponsorship support of the UCI Center for Real Estate.

The event features an industry leadership talk with Brandon Birtcher, CEO North America, Goodman Birtcher; Patrick Donahue, Chairman & CEO, Donahue Schriber Realty Group; Frank Suryan, Jr., Chairman & CEO of Lyon Communities, and Charles Schreiber, Jr., CEO & Co-Founder, KBS .  Moderator for the program will be Kevin Jennings, Market Executive-Southern California for Bank of America Merrill Lynch and incoming NAIOP SoCal Chapter President for 2016.

These top CEOs from across the industries of industrial, retail, residential and office will share the strategies, insights, and leadership that helped them navigate their road to success – now and for the long term.

On-line registration is now open, and it is anticipated that this will be another sell-out event, so members are encouraged to register now.

 

Members in the News

Stillwater Investment Group, Greenlaw Partners, and CrossHarbor Capital Partners Acquire West Covina Office Campus

Stillwater Investment Group and Greenlaw Partners, in a joint venture with CrossHarbor Capital Partners, have acquired The Lakes at West Covina, a 176,843-square-foot Class A two-building office campus. The joint venture acquired the asset for $34.85 million representing an approximate 40% discount to the price previously paid for the property in 2007. The seller was represented by Bob Safai, Matt Case, and Brad Schlaak of Madison Partners. The join venture group represented itself.

 

Western Realco Acquires 30-Acre Former Beckman Coulter Site in Fullerton

Adding to its growing Orange County portfolio, Western Realco has announced the acquisition of 30 acres of the former Beckman Coulter campus located in Fullerton. The 44-acre Fullerton factory and office complex once housed Beckman Coulter operations that encompassed 600,800 square feet of space in eight buildings. Beckman Coulter consolidated its world headquarters in Brea in 2010. Western Realco plans to acquire the 14-acre balance of the infill site, located at Lambert and Harbor, by mid-2016. Mitch Zehner, Mike Hefner and Seth Davenport of Voit Real Estate Services represented the seller who acquired the site from Beckman Coulter.

 

NGKF Completes 10-Year, 18,500 SF Lease with UCLA Health

Newmark Grubb Knight Frank (NGKF) has completed a 10-year, 18,500-square-foot lease with UCLA Health in the South Bay market of Los Angeles County. Located at The Financial Center at 501 Deep Valley Drive in Rolling Hills Estates, UCLA Health, which previously occupied 7,500 square feet on the asset’s ground floor, will now occupy an additional two full floors. Executive Managing Directors Sean O’Leary and Maury Gentile and Associate Director Max Schneider from NGKF’s El Segundo office, completed the transaction on behalf of UCLA Health.

 

PCCP, LLC and Panattoni Development Acquire 33-Acre Site Near Savannah, GA

PCCP, LLC formed a joint venture with Panattoni Development Company, Inc. to acquire a fully entitled, 33-acre land parcel in Garden City, which borders Savannah, GA. The joint venture plans to develop Westport Business Park, a 312,000-square-foot speculative industrial distribution center on the site.

Westport Business Park, which is anticipated to be complete by mid-2016, will consist of a cross-dock distribution center featuring 32’ clear ceiling heights with 94 dock doors, 52’ x 60’ stage bays, T-5 lighting, ESFR sprinklers, 45 trailer spaces, and 77-car parking spaces.

 

JLL Completes Acquisition of Martin Potts & Associates

Meeting the demand of increasing development and redevelopment activity in California, JLL has completed the acquisition of Martin Potts & Associates, Inc., a leader in project and construction management services for retail, hospitality, healthcare and office properties. The transaction is the latest example of JLL’s disciplined acquisition strategy and expands JLL’s project management and retail services expertise in the West.

 

RiverRock Real Estate Group and Voit Real Estate Services Announce Strategic Alliance

RiverRock Real Estate Group, a West Coast-based commercial real estate management, and Voit Real Estate Services, a broker-driven Southern California commercial real estate firm, today announced a strategic alliance.  RiverRock will serve as Voit’s preferred provider of property management services throughout Southern California with Voit serving as preferred provider of brokerage services to RiverRock. This latest news follows on the heels of Voit’s recent restructuring as a broker-led firm and naming Eric Hinkelman as CEO.

 

PM Realty Group completes three leases

PM Realty Group has completed three leases at 1401 Dove Street, a six-story, Class A office building in Newport Beach.  Oliver Fleener of PMRG represented the landlord, Palm Springs Village-309, LLC, a subsidiary of FarWest Industries in each lease.  Fleener is responsible for marketing the property for lease which currently has immediate availability for users ranging from 1,500 to 5,000 square feet. Hittelman Law Group, a family law specialty firm, signed a lease for 5,284 square feet of space.

NAIOP SoCal Welcomes New Members!

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 44 new members to the chapter between September 15th and December 17th. We look forward to seeing each of them at our upcoming events!

A Singh
AEW Capital Management LP Mark Gallinaro
The Bendetti Company Aaron Weaver
Berkadia Commercial Mortgage, Inc. John-Jackson Cloak
BEST Contracting Services Inc. Sonya Carter
Buchanan Street Partners Stephanie Tan
Business Communication Consultants Reza Khorramian
C.W. Driver Contractors Elizabeth Senes
CBRE John Duddridge
CBRE Brian DeRevere
CBRE Melissa Ley
CBRE Global Investors LLC Jack Herrill
Colliers International David O’Neil
CoStar Group Daniel Ramirez
Equity Office Ian Ritchey
Goodman Birtcher Matthew Nestlerode
HMWC Sheila Ashrafi
HMWC Jeffrey Hipshman
HMWC Ryan Whelan
The Irvine Company Kara Winters
JPMorgan Chase Bank, N.A. Christine DePillo
Masuda, Funai, Eifert & Mitchell Ltd. Shane Devins
Mission Capital Advisors Axel DeAngelis
Northwestern Mutual Real Estate Investments, LLC Amber House
Oltmans Construction Co. Karen Okerfund
Pasadena College Barry Liu
PIMCO Matthew Michalovsky
Promontory Investments Matthew Larson
Rutan & Tucker LLP James Sechrist
San Diego State University Clayton Woodward
Southern California Commercial Real Estate Robert Chay
Swift Real Estate Partners Michael Cho
University of California Irvine Ronnie D’Cruz
University of California Irvine Enrique Huerta
University of California Los Angeles Daniel Broder
University of California Los Angeles Jaime Sanchez
University of Southern California Lauren Achtemeier
University of Southern California Erin Anderson
University of Southern California Christopher Harden
University of Southern California Cody Holmes
University of Southern California Shuyang Shen
Ware Malcomb Michael Petersen
West Hills Construction, Inc. Joseph Dowling
Wind Water Realty Advisers Rudy Caamano

President’s Message

Tom_Wulf_headshotAs the influence of our members and region continues to impact the nation, the leadership and innovation of our SoCal Chapter continues to amaze me.

This year, NAIOP selected Majestic Realty Co. as its prestigious 2015 Developer of the Year – the association’s highest honor. Presented annually since 1979, the Developer of the Year Award is given to one developer that best exemplifies leadership and innovation in the commercial real estate market. Headquartered in Southern California, and with regional offices throughout the United States, Majestic is the largest privately held industrial developer in the United States and is widely recognized as a long-term powerhouse in the development community and beyond. They have been a long-standing supporter of our chapter, and we are honored to recognize their achievement.

Each year, NAIOP recognizes 15 young professionals with its Developing Leaders Award. This prestigious award honors up-and-coming professionals under the age of 35 for their exemplary professional accomplishments, strong leadership and community involvement. John Drachman of Stillwater Investment Group, an Orange County-based real estate firm focused on acquiring and managing office, industrial and apartment properties, is one of this year’s honorees and a YPG alum. See the related article in this issue for more details on this well-deserved honor.  Congratulations, John!

I’m also excited to recognize the strength of our Young Professionals Group (YPG). Now counting more than 300 alumni, our YPG members not only honor the initial vision for the creation of this initiative, but they have raised the bar in so many ways, including a focus that merges community, camaraderie and business leadership. Thanks to their fresh thinking, I know our industry is in good hands.

I also want to extend my gratitude to our Corporate Sponsors. As a chapter, we are constantly focused on ensuring that you benefit from your association with NAIOP SoCal. As we consistently look to make this effective and valuable, we are proud to call almost 100 of the region’s top firms a member of our Corporate Sponsors.

Finally, I’d like to share that Erik Hansen received a Lifetime Achievement award from Connect Media during its Connect Inland Empire conference. As part of the recognition, our chapter donated $1,000 in Erik’s name to the Alzheimer’s Foundation. His vast experience includes work as a Smokejumper, tenure as a US Navy Officer, and a real estate career that began as a broker and then eventually led to executive roles with Lincoln Property/Legacy Partners, Parker Properties and LNR Property Corp.  He was a member and former President of NAIOP SoCal.

I look forward to seeing what our members and companies do to raise the bar into 2016!

 

Tom Wulf

President

Legislative Update

In this report … Stay Informed- CBPA and NAIOP SoCal Updates. Drought Regulations and Water Rate Increases Impacting New Development. City of LA Proposing Property Owners Repair Sidewalks. Costa Mesa Proposes Ballot Box Planning Initiative. Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

 

CBPA Weekly Updates – Get on the List to be Informed of State Legislation

NAIOP SoCal’s representative in Sacramento is the California Business Properties Association (CBPA).  Weekly email updates are provided each Friday, which provide up-to-the-minute information on legislation that is being proposed, amended, passed and defeated in the State Legislature that impacts commercial real estate.  It is a must read.  The August 28, 2015 CBPA Update provides an overview of legislation – good and bad.  Click here to read this update.  If you are not currently receiving these from CBPA, please contact Denise Chan at the Chapter office and she will update the list.

 

Monthly SoCal Legislative Affairs Updates on Website

The SoCal Legislative Affairs Committee provides monthly updates to the Board of Directors.  These reports are available to the membership, along with Legislative Alerts, at www.naiopsocal.org.

 

Drought Regulations and Water Rate Increases Impacting New Development

The California Water Commission approved a new version of the state’s Model Water Efficient Landscape Ordinance (MWELO) on July 15, 2015.  The new MWELO applies to all new development projects with landscape areas of 500 square feet, instead of the previous 2,500 to 5,000 square feet.  The size threshold was not changed for rehabilitation projects.  Cities and counties have until December 1, 2015 to adopt the State’s MWELO or their own ordinance, or until February 1, 2015 to adopt a regional ordinance.

 

Most of the local water agencies have focused on raising the price of water as their main effort to meet the conservation targets set by the state.  To date, no water district, city or county has stopped providing “will-serve letters” or placed moratoriums on new development.  However, we are seeing news articles and public comments questioning approval of new development (water users), while existing water users are being asked to cut back 25%.

 

City of Los Angeles Proposing that Property Owners Repair City Sidewalks

The City of Los Angeles has proposed turning the repair and maintenance of the very deteriorated city sidewalks over to the adjacent landowner even if it was caused by tree roots. The City would initially repair the sidewalk in front of residences and, thereafter, the full responsibility for maintenance would fall on the resident.  Commercial property owners would be given one year to do (and pay for) the initial repair because they have ADA (Americans with Disabilities Act) obligations under state law and have more options to finance the repairs.  NAIOP SoCal members who own property in Los Angeles – please contact Assistant Director of Legislative Affairs Peter Herzog for additional information and action on this item.

 

City of Costa Mesa Ballot Box Planning Initiative Circulating

Now circulating is an initiative to require voters to approve land use that is somewhat similar to the Newport Beach Green Light measure.  The Costa Mesa proposal requires any “major change” to the general plan or zoning code to be approved by the City Council and then put on the ballot for voter approval.  The definition of “major change” has many components, including any residential proposal of 40 homes, 10,000 square feet of commercial/industrial development and any project that creates 200 ADTs (Average Daily Trips)  It even includes proposals for a “minor change” that is within a half mile of another minor change that had been approved during the last eight years which, when combined, would be a “major change.”  NAIOP SoCal will be actively monitoring this issue and, if it qualifies, will be actively involved.  Click here for the complete text of the measure.  For additional information, contact Director of Legislative Affairs Vickie Talley.

YPG Update

Darren Foster

YPG has been busy!

Our events this year have seen great success, and are reflective of the commitment of our YPGers.

At the end of August, we had a great networking Happy Hour with young professionals from CREW (Commercial Real Estate Women).  The event was held on the roof of The Michelson, and more than 100 young professionals showed up to enjoy a beautiful Southern California evening.

 

ypg hike 2I’m also proud to share the success of our “Hike for a Cure .” YPG members, along with NAIOP SoCal members, joined with the Leukemia & Lymphoma Society (LLS) at the beautiful Crystal Cove State Park to hike for a cure. Proceeds from the event will help to fund research to beat a cancer known as Acute Myeloid Leukemia (AML), a devastating cancer that attacks the body through the blood cells. We had the honor of hiking alongside survivors of AML which included one of YPG’s very own alumni advisors, Russ Parker. The hike was a great success for all.

This year, YPG has secured a larger site for a bigger, stronger and faster Y Games to be held at Newport Dunes on September 18. Teams will enjoy a day in the sun, filled with friendly competition and team-building networking with NAIOP SoCal YPG students and alumni, Developing Leaders, graduate students and Board members. In addition to the games, music and liquid refreshment, lunch will be provided by the TK Burger lunch truck. YPG is also supporting Working Wardrobes by asking all participants to bring used professional clothing donations to help men and women in crisis return to work.

We’re also looking forward to our annual “Big for a Day” event to be held on November 14. On this day, YPGers  join together with Big Brothers Big Sisters of America, the nation’s largest donor and volunteer-supported mentoring network. The organization matches adult volunteers (“Bigs”) with the children to enjoy a day of fun and mentorship. YPG is proud of its annual commitment to support this important group, and many who have participated in this meaningful event have gone on to become an ongoing “Big” volunteer.

Finally, I want to thank the companies that have supported YPG as a sponsor. Thank you to: LBA Realty, Buchanan Street Partners, CapRock Partners, Hines, KPRS, Panattoni, Alison Company, Bank of America Merrill Lynch, Cox Castle Nicholson, Goodman Birtcher, Luther Burbank Savings, MC Five Mile, Millie & Severson, Prologis, US Bank and Ware Malcomb.   We couldn’t do it without you!

 

Darren Foster, Chairman

YPG Alumni Committee

Night at the Fights – A Knock-Out Success!

More than 1,000 industry professionals joined together earlier this year at the Hotel Irvine for the 25th anniversary celebration of Night at the Fights. Themed “Making Magic Happen,” the event was truly one-of-a-kind. From the pre-event networking at The Warm-Up, which included sleight-of-hand and up-close magic, to the Main Event featuring high-powered boxing and MMA, the experience stood out once again as the premier Southern California business networking event.

“What makes Night at the Fights such an iconic event for our industry is that you can be assured of a fantastic evening of networking. From beginning to end, the night is not to be missed. Planning is already underway for 2016. See you next year!” said Greg May, 2015-2016 Night at the Fights Chair.

 

n@f 2015n@f boxing 2015

n@f icebar 2015

UCLA vs. USC Real Estate Challenge Set for Nov. 19

Join us November 19 at USC’s Town & Gown as student teams from the Ziman Center at UCLA’s Anderson School of Business and the Lusk Center at USC’s Marshall School of Business and Price School of Public Policy compete head-to-head in a real estate challenge on the highest and best use for a proposed site.

We are honored to welcome special guests and Honorary Team Captains Chris Roberts, former Voice of the Bruins, and Pete Arbogast, Voice of the Trojans. Roberts and Arbogast will provide pre-game commentary during the event on the upcoming UCLA vs. USC football game.

Peter ArbogastArbogast is known throughout LA as the Voice of the Trojans. He was elected to the Southern California Sports Broadcasters Hall of Fame in 2014 and inducted on January 26, 2015. He has handled football, basketball and baseball play-by-play for USC from 1989 to 1996, among other sports, and has continued to do the Trojans play-by-play since 2001. He is also show host and sports anchor for The Beast 980. He has been honored frequently by the California Associated Press and Southern California Radio/TV News Directors Association.

Chris RobertsAfter 23 seasons of proclaiming “Touchdown, UCLA!”, four-time Golden Mike Award winner and Southern California Sports Broadcasters Association Hall-of-Fame member Chris Roberts, Voice of the Bruins, retired from the UCLA broadcast booth. He had been calling the Bruins’ games since 1992. Roberts also broadcast NCAA Division I sports in the Los Angeles area since 1982.

In addition to our Honorary Team Captains, the Real Estate Challenge will feature Event Emcee James “Watty” Watson, CEO of CT Realty.

Be there to cheer on your favorite team!

John Drachman Selected As A NAIOP Developing Leader

Drachman.PhotoNAIOP selected 15 young professionals to receive its prestigious 2015 Developing Leaders Award, honoring up-and-coming professionals under the age of 35 for their exemplary professional accomplishments, strong leadership and community involvement. NAIOP SoCal member and YPG alum John Drachman, of Stillwater Investment Group, is one of this year’s honorees.

Drachman is president and founder of Stillwater Investment Group, an Orange County-based real estate firm focused on acquiring and managing office, industrial and apartment properties.

A seasoned real estate professional with more than 11 years of experience across multiple asset classes, Drachman started Stillwater Investment Group in 2014 and has since closed and been a partner in five transactions with an acquisition value of over $140 million.   During his career, he has helped to successfully execute over $400 million of value-add real estate acquisitions and has led the asset management efforts on a 3 million square foot portfolio of office and industrial properties.

Prior to founding Stillwater, Drachman was a Vice President with Greenlaw Partners, where he sourced and managed a portfolio of real estate assets throughout Southern California and Arizona. He earned his Bachelor’s degree from the University of Arizona, and MBA as well as his Master in Real Estate Development from the University of Southern California where he is an Adjunct Faculty member. He is an active member of NAIOP SoCal and currently serves on the USC vs. UCLA NAIOP Real Estate Challenge committee.

“I am honored to congratulate John on this accomplishment. He sets the bar for our chapter and the industry through his professional commitment and passion for the real estate community,” said Tom Wulf, 2015 president of NAIOP SoCal and Senior Vice President with Lowe Enterprises Real Estate Group.

“NAIOP remains one of the most important organizations for the advancement of our industry, and this recognition means a great deal to me. NAIOP has been an important aspect of my success,” Drachman added.

Established in 2006, the Developing Leaders Award has been given to rising industry professionals from across NAIOP’s chapter network in all sectors of commercial real estate.

Members In The News

NGKF Global Healthcare Services Completes $141 Million Sale of Phoenix Medical Office Portfolio

Newmark Grubb Knight Frank’s (NGKF) Phoenix office, in collaboration with Global Healthcare Services, announced the completion of a $141 million sale of the Integrated Medical Services portfolio encompassing four Class A medical office buildings totaling 406,894 square feet. This portfolio sale sets a new record for the Phoenix Metro area as the highest price paid at $347 per square foot for an on-campus, multi-tenant medical office portfolio. NGKF Global Healthcare Services Executive Managing Directors Garth Hogan and Todd Perman, along with Directors Trisha Talbot and Kathleen Morgan in the Phoenix office, represented the sellers. The buyer, Physicians Realty Trust, a self-managed healthcare real estate company, was self-represented.

 

Guthrie Development Acquires Three Industrial Buildings in Brea Totaling 84,000 Square Feet

Guthrie Development has acquired three buildings in the Brea Industrial Complex with plans to convert the multi-tenant properties into industrial condominiums for sale. A full-service commercial real estate company, Guthrie acquired the property for $11,760,000. Guthrie plans to invest a few million dollars into the project for processing entitlements and speculative tenant improvements to convert the 100-percent-occupied multi-tenant park into industrial condominiums for sale.

 

MicroVention Chooses Summit Office Campus for 205,000-Square-Foot World Headquarters

Parker Properties, an Orange County-based real estate development firm, has announced that MicroVention, Inc., (a global neurovascular company) and a subsidiary of Terumo Corporation, will relocate its world headquarters to the Summit Office Campus in Aliso Viejo. MicroVention will invest approximately $100 million in the new facility which will include an innovation/research and development center for MicroVention and Terumo. Parker Properties will develop the project on behalf of MicroVention which will occupy and own the facility upon completion. The new building, designed by Ware Malcomb Architects, will house in excess of 800 employees.

 

Snyder Langston Names Chip McCorkle Vice President, Business Development

Snyder Langston, one of Southern California’s largest and most respected builders, has announced the addition of Chip McCorkle as Vice President, Business Development to grow commercial and multifamily construction opportunities in the greater Los Angeles area. McCorkle brings 25 years of construction experience to Snyder Langston. He previously served as Vice President of Preconstruction and Business Development at McCormick Construction, Products Division President at Smith Emery, and Director of Project Development at Pankow Builders.

 

PCCP, LLC PROVIDES $55.2 MILLION SENIOR LOAN FOR THE DEVELOPMENT OF 17-STORY LUXURY CONDO PROJECT IN HOUSTON, TEXAS

PCCP, LLC provided a $55.2 million senior loan to a joint venture between The Carlyle Group and Pelican Builders for the ground-up development of The Wilshire, a 17-story, 96-unit luxury condominium project in the River Oaks submarket of Houston, Texas. Construction is underway with completion of the project anticipated for mid-2017. The financing was arranged by Adam Allen of ARA Houston.

 

City of Tustin Executes Exclusive Negotiation Agreement for Cornerstone I with Lincoln Property Company

The City of Tustin has now entered into an Exclusive Negotiation Agreement with Lincoln Property Company to pursue development for Cornerstone I at Tustin Legacy. The proposed creative office campus would be built on 37 acres of land at the southwest edge of Tustin Legacy, a master-planned community.  Based on a proposal presented to Tustin by Lincoln, approximately 760,000 square feet of creative office space is proposed along with almost 100,000 square feet of support uses, a food hall, supporting retail, outdoor meeting and gathering spaces, as well as structured and surface parking.

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 120 new members to the chapter between March 26th and September 14th. We look forward to seeing each of them at our upcoming events!

Schuyler Ream
Jonathan Ruffalo
The Abbey Company Blake DeFluri
AEW Capital Management LP Shirley McCrohan
American Dream Fund LLC George Ekins
Aon Risk Solutions Laura Bautista
Arroyo Hll Development, Inc. Thomas Majich
Auction.com Lindsey Ensign Olson
Bank of America Merrill Lynch Alan Flatt
Bank of America Merrill Lynch Xiao Yan Lu
BCC Contracting, Inc. Garry Jenkins
BCC Contracting, Inc. Lisa Jenkins
BCC Contracting, Inc. Shawn Jenkins
BCC Contracting, Inc. Mickey Tedder
Bear West Group LLC Eric Miller
The Bendetti Company Robert Bendetti
The Bendetti Company Jared Christensen
The Bendetti Company Aaron Weaver
Bixby Land Company Jeni Jackman
Bolour Associates Joel Wynton
Bridge Development Partners Thomas Ashcraft
Burnham USA Equities, Inc. Stephen Thorp
Business Communications Solutions Laura Calderon
Cal Poly Pomona Raya Al-Khatib
Cal Poly Pomona Susan Boone
Cal Poly Pomona Jessica Cabrera
Cal Poly Pomona David Delgado
Cal Poly Pomona Addiel Flores
Cal Poly Pomona Alberto Flores
Cal Poly Pomona Kelly Ha
Cal Poly Pomona Xian Huang
Cal Poly Pomona Nicholas Lench
Cal Poly Pomona Xiao Yan Lu
Cal Poly Pomona MaiPhuong Phan
Cal Poly Pomona Samaneh Selahi
Cal Poly San Luis Obispo Bercut Smith
California State University, Fullerton Ivan Aceves
CBRE South Bay Ken White
CenterSquare Investment Management Kimberly May
Chapman University Samuel Schifman
Colliers International Gregory Kosh
Colliers International Richard Schwartz
CoreSite Bradley Greenberg
CrossHarbor Captal Partners LLC Eric Boyd
Crown Mark Real Estate Group Ara Markari
Deutsche Asset & Wealth Management David McDonnell
Equity Cap Fund Advisors Mitch Valmer
First American Title Insurance Company Summer Hale
First American Title Insurance Company John Jackson
GM Properties, Inc. Tyler Portman
Goodman Birtcher Lucas Stensby
Guggenheim Partners, LLC Greg Levitan
Herdman Rierson Architecture + Design, Inc. Jamia Reddicks-Sears
HFF Jeffrey Sause
Interior Office Solutions Brett Taylor
Irvine Company Churchill Bunn
JLL Naomi Rizkowsky
JPMorgan Chase Bank, N.A. Cooper Dodd
KBS Realty Advisors Inc. Michael Potter
KBS Realty Advisors Inc. Kenneth Robertson
MIG Real Estate LLC Andrea Redewill
Pacific Life Insurance Company Grant Wiley
REAP-The Real Estate Associate Program Cynthia Alexander
REAP-The Real Estate Associate Program Treana Allen
REAP-The Real Estate Associate Program Armond Alvazyan
REAP-The Real Estate Associate Program Natasha Amlani
REAP-The Real Estate Associate Program Michael Chappell
REAP-The Real Estate Associate Program Kimberly Daniels
REAP-The Real Estate Associate Program Camille Ellison
REAP-The Real Estate Associate Program Marcela Galaviz
REAP-The Real Estate Associate Program Matthew Gates
REAP-The Real Estate Associate Program Chuntao Guo
REAP-The Real Estate Associate Program Chris Hardy
REAP-The Real Estate Associate Program Lihui Lin
REAP-The Real Estate Associate Program Kevin Lou
REAP-The Real Estate Associate Program Odest Riley
REAP-The Real Estate Associate Program Alicia Robinson
REAP-The Real Estate Associate Program Maira Sanchez
REAP-The Real Estate Associate Program Concela Tarver
REAP-The Real Estate Associate Program Matthew Turner
REAP-The Real Estate Associate Program Carlos Velasquez
REAP-The Real Estate Associate Program Xi Wang
REAP-The Real Estate Associate Program Natasha White
REAP-The Real Estate Associate Program Melissa Wyatt
Schnider Investments LLC Greg Schnider
Sepulveda Companies Timothy Youngpeter
Smarking Diego Torres-Palma
spaceez Alpa Patel
Spectrum Commercial Lending Myles Walters
Starwood CPG Operations, L.L.C. Patrick Galvin
Stone Miller Cyrano Adlawan
Swinerton Builders Besim Fejzagic
Torrey Pines Bank Patrick Davern
Trammell Crow Company Gregory Ames
Trammell Crow Company Tommy Dirks
Trestle Property & Association Management, Inc. Matthew Ellis
Trestle Property & Association Management, Inc. Luke Rutherford
University of California Irvine Victor Zhang
University of California Los Angeles Michael Hiller
University of California Los Angeles Danielle Jang
University of Oregon Conor Massey
University of Southern California Evan Daboub
University of Southern California Brandon Delijani
University of Southern California Brent Fraker
University of Southern California Joseph Hamam
University of Southern California Guarav Jethwani
University of Southern California Paul Kim
University of Southern California Matthew Rudd
University of Southern California Sajan Shah
University of Southern California Daniel Tabariai
University of Southern California Arrian Torkian
University of Southern California Maya Tuvia
University of Southern California Marc Vonderweidt
University of Southern California Freya Zhou
University of Virginia School Nicole Huang
Vanguard University Brandon White
Westcap Corp Blake Meister
Westcore Properties Victoria Grether
Westport Properties Inc. Joel Smith
The Wonderful Company Derek Kirkbride

Presidents Message

Corporate PhotographyNow that we are well into 2015, the good news is that the real estate industry is beginning to experience the significant effects of a positive economy.  We are witnessing a resurgence of development activity across all product sectors throughout Southern California that we haven’t experienced since the great recession.  This growth brings along new members and corporate sponsors who count on NAIOP SoCal to keep them engaged and informed.

The important thing to remember, during both good or challenging times, is that NAIOP SoCal will always provide the highest level of education, beneficial industry networking, and high-level proactive legislative representation for our industry.  In this issue you will read more on the battle over Prop 13 and Split Roll taxes as well as the recent activities of our hard-working Legislative Committee.

To underscore our chapter’s stability, I am proud to say that this year marks the 25th anniversary of Night at the Fights, the best client networking event in the region.  And it’s shaping up to be a tremendous celebration.  In addition, 2015 marks the 10th anniversary of our Young Professionals Group (YPG), a highly successful program that builds our next generation of industry leaders.  This program, created by NAIOP SoCal, has been so successful, it has been picked up by other chapters nationwide.

Both of these programs provide lucrative benefits to our members.

For example, YPG continues to demonstrate its relevance to our industry.  YPG alumni now number nearly 350 talented and eager real estate professionals.  They’ve already shown outstanding leadership in the way they have evolved YPG and integrated community service into their focus.  These young leaders are developing relationships that will benefit them now and throughout their career.

I look forward to seeing you at our May 14th Night at the Fights event – where attendees will network with almost 1,000 of their peers.  That is probably the best part of this evening of boxing, MMA, great food, cocktails and entertainment – and why, for a quarter of a century, we’ve continued to enjoy this once-a-year tradition.

Tom Wulf
President

Legislative Update

In this report …Be Informed-NAIOP SoCal and CBPA Updates. Chapter Visits 13 Members of Congress. Over 400 Bills Impacting Commercial Real Estate Introduced in State Legislature. ITE Warehouse Study Update. Prop 13 Debate Featured at BisNow LA Event. Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

Alerts and Legislative Updates Posted on Website at www.naiopsocal.org

Please be sure to check the website frequently for Legislative Alerts and Updates.  When you seen an ALERT on the home page under Legislative Updates it means we need your help.  Please click on the “Take Action” button for details on action needed by NAIOP members.  We try to make our “asks” for help only when it is a critically important issue.  Thank you for being responsive to our requests.

Be Informed – NAIOP SoCal and CBPA Updates

Other resources for important legislative information include weekly email updates from California Business Properties Association (CBPA Weekly Updates) and the monthly NAIOP SoCal Legislative Committee Report to the Board, which is posted on the NAIOP website.  Click on Legislative Update and then on “Read the Monthly Report.”  CBPA’s weekly updates are emailed to all NAIOP members and provide detailed information on what is happening on state legislative issues that impact commercial real estate.   If you are not currently receiving the update, please contact Director of Legislative Affairs Vickie Talley at vickie@talleyassoc.com.

Chapter Delegation Visits 13 Members of Congress Delivering Important Legislative Messages

At the recent February Leadership Conference in Washington, D.C., SoCal Chapter members were able to meet personally with six members of Congress and with the staff from an additional seven congressional offices.  Chapter representatives included President Tom Wulf, NAIOP Corporate Board member Stephane Wandel, Kevin Jennings, Jim Camp, Darren Foster, Steve Pearson, Executive Director Cynthia Fusco, and Assistant Director of Legislative Affairs Peter Herzog.

Their talking points included maintaining the tax deferral for like-kind exchanges and assuring that tax depreciation on structures and leases are based upon the assets’ economic life; the need for solid long-term transportation infrastructure funding; regulatory reform, especially surrounding the need for Southern California to be provided greater flexibility in the air quality field due to its very unique situation; and also the need to address the water supply issues facing California, among other issues.

NAIOP Corporate staff provided an excellent presentation regarding the effort to expand the definition of waters of the U.S. (WOTUS).  NAIOP Corporate is taking a very proactive approach to this issue by meeting regularly with the appropriate staff members to protect the interests of the NAIOP members.

To view the overview of the regional Issues SoCal delegates discussed at meetings with members of congress Click Here.

Legislators Introduce Over 400 Bills That Directly Impact Commercial Real Estate

The end of February marked the deadline for California legislators to introduce bills.  A total of 2,428 separate legislative measures, including constitutional amendments and resolutions, were introduced!  Of those, more than 400 bills have been identified as having a direct impact on our industry, including measures to change unlawful detainer notification, make it easier to raise property taxes, and mandate personnel decisions for building managers.

As you go about your business talking with colleagues at work lunches, your tax lawyers, reading newsletters from real estate organizations you are involved with, or while talking to local policymakers, if you hear of any bill that you are concerned with, please let your Legislative Affairs staff know.  Simply send a note to Director of Legislative Affairs Vickie Talley with the bill number, or just the subject matter. We will work with our Sacramento representatives at CBPA to research it and respond back to you.

California Business Properties Association (CBPA) will hold an industry-wide meeting with representatives from all the major commercial real estate groups active in California on April 2, 2015 in Southern California to review all bills and set policy direction.  If you are interested in participating, please let us know.  Representatives from the Chapter’s Legislative Affairs Committee will be attending along with Chapter Staff.

Bills being reviewed include Hourly Worker Mandates, ADA Reform, Electronic Vehicle Charging Stations, Defibrillators, “Call Before You Dig” and CEQA.  For a complete list of bills being reviewed, please contact Vickie Talley, Director of Legislative Affairs.

ITE Warehouse Study Update

The Institute of Traffic Engineers (ITE) is once again looking at warehouse truck trip generation.  As in the past, NAIOP is involved in the process.  ITE is bringing together 15 individuals from across the country to create a scope of work that would guide future trip generation studies. The meeting will occur on March 31, 2015 in Washington, and NAIOP has two seats on the panel.  Kim Snyder of Prologis and Frank Sherkow, a traffic engineer who has worked with NAIOP for over 10 years on truck trip issues, will represent NAIOP.  It is expected there will be a push to create at least one new category of warehousing covering refrigerated warehouses as they often have much higher trip counts. Once the scope of work is created, ITE will look for groups throughout the country to send in trip studies to ITE for evaluation.

Prop 13 Debate Featured at Bisnow LA Event
By Kevin Ivey

On March 5th, Bisnow Media hosted a debate on the future of commercial real estate under Proposition 13.  Kevin Ivey of KPRS Construction and NAIOP SoCal Legislative Affairs Chair moderated the panel debate before an audience of 150 real estate professionals in downtown Los Angeles.  The debate panel included UCLA Law School Professor Kirk Stark representing the tax reform community. Arguing against changes to Prop 13 were Jon Coupal, President of the Howard Jarvis Taxpayers Association and Gina Rodriquez, tax policy expert with the California Taxpayers Association.

While tax reformers typically call for raising the tax rate or frequently reassessing property, Professor Kirk Stark suggested a new approach  – broaden the base of business property taxes by reassessing more often, but at the same time reduce the tax rates on property and other business taxes. Stark suggested reassessing property on a regularly scheduled basis but lowering the 1% tax rate, eliminating property taxes on business equipment and reducing other business taxes.

In reality, proponents of the split roll are focused on raising more money, and a plan that lowers other taxes doesn’t fit their  game plan. Nevertheless, Professor Stark’s idea is another in a line seeking a split roll for Proposition 13.

Cal-Tax’s Rodriquez argued there was no need to change Proposition 13. She pointed out data that illustrated there has been no shift of the property tax burden from commercial property to residential property. Jon Coupal agreed and noted that county assessors throughout the state frequently point out that the Proposition 13 tax system produces steady rising revenues even during economic recessions and that because of the way Prop 13 operates, counties were spared “horrible damage” during the last recession.

Panelists were not able to predict with confidence whether a statewide initiative to create a split roll tax would hit the ballot this year or in November 2016.  But it is clear that the debate over the future of Prop13 will continue.

Thanks to Joel Fox, Fox and Hounds podcast, who contributed to this article.

Night at the Fights Marks 25 Years!

NAIOP_N@F2015_25th Anniv_v7

This year is the 25th anniversary of NAIOP SoCal’s Night at the Fights event. Over these many years, thousands of real estate professionals have joined together to experience one night of championship boxing, great food and the best networking in Southern California.

What’s in store for 2015? “Making Magic Happen” is our theme, celebrating the best of our industry and honoring our Night at the Fights legacy.

From the moment of entry, our 1,000 real estate industry guests will be treated to an evening of magical surprises.  The night kicks off with “The Warm-Up” – an exciting pre-event cocktail reception held on the Hotel Irvine lawn featuring music, cocktails, networking and special presentations by sleight of hand magicians as well as a number of entertaining surprises.

The main event features a gourmet dinner and cocktails, high-impact, championship boxing and MMA bouts and unique client networking experience. Night at the Fights also features our highly popular Round 2. This is when the cigars are lit, the cocktails are flowing and guests can enjoy live music and casino games.

This year is sure to capture your imagination and provide a night not to be missed.  Join NAIOP SoCal as it celebrates 25 years of success in entertainment and client networking.

Outstanding sponsorship opportunities are available. Click here for more information or contact the Chapter office at 714/979-9131.  Ticket sales begin April 1. More information will be available, but mark the date on your calendar now!

YPG Update

Baker Brian HeadshotYPG continues to raise the bar for the next generation of real estate leaders, and 2014 has been no exception.  Here’s a small sample of the goals we accomplished:

 

  • We welcomed a long-term Gold level sponsorship from CapRock Partners LLC as the title sponsor for the annual Case Competition. This now means that each year our YPG class will compete for the CapRock Cup.
  • We experienced a 50% increase in attendance for the second annual Y-Games event.
  • We have continued to receive overwhelming support for community outreach efforts from the YPG alumni including our Big Brothers Big Sisters event and contributions for Working Wardrobes and Toys for Tots.
  • There was a 30% increase in the number of 2015-2016 YPG applications submitted.
  • Our curriculum’s industry speakers included YPG’s first two women speakers.
  • The YPG class partnered with the Center for Real Estate at UCI’s Paul Merage School of Business to present “A Day in the Life” presentations for UCI students interested in a career path in commercial real estate.
  • A private tour of the Anaheim Regional Transportation Intermodal Center (ARTIC) was hosted by the Alumni Programs Committee
  • Three newsletters highlighting the comings and goings of all YPG Alumni were released.
  • We formed a “Los Angeles” Subcommittee to increase participation from our LA-based Alumni and to establish more LA-based events

What is even more exciting and significant to our program and the Chapter is that YPG will celebrate its 10-year anniversary on April 2. There will be a celebration for our alumni, founders and program speakers from across the years. I look forward to sharing our milestones and, more importantly, thinking about what the future holds for our current and future alumni.

The success of YPG Program would not be possible without the strong support from our corporate sponsors, in the form of both financial support and donated venue space to hold YPG-related meetings and functions.  Without this very generous support, we wouldn’t be able to provide the wide variety of networking, professional development and community outreach programs for our alums’ participation.  A special note of recognition to the Irvine Company and LBA Realty for consistently providing us with meeting space for our YPG classes, and our very grateful appreciation to the following YPG sponsors for 2014-15:

Platinum:  Auction.com, LBA Realty

Case Competition:  CapRock Partners, Prologis

Silver:

Bank of America Merrill Lynch, CIBC World Markets Corp., J.P. Morgan, Luther Burbank Savings, U.S. Bank, Ware Malcolmb

As the 2014-15 Alumni Committee’s year comes to an end, I’d like to thank each and every one of the volunteers who donated their time and helped to make all of our events this year a success.  In particular, each of the committee chairs put in countless hours working  together with their teams throughout the year in order to continue the tradition of giving back to the community through alumni events, community outreach, networking and, most importantly, recruiting, selecting, and putting together classes for the 2014-15 YPG Class.  Finally, thank you to Cynthia Fusco and her team at CGF Associates for all of their hard work throughout the year in supporting the YPG program.  As the Alumni Committee Chair, I could not ask for a better group of people to work with.

Brian Baker
YPG Alumni Chair

In the Media: Q&A with Tom Wulf

Tom Wulf, NAIOP SoCal 2015 President and Senior Vice President of Acquisitions with Lowe Enterprises, was recently featured in a Q&A in the Santa Clarita Valley Business Journal.

SCVBJ: What are the current commercial building trends?

Wulf: While the recession took a big toll on our industry, the recovery has brought along quite a bit of innovative growth and a mix of different product types. The majority of growth has been mixed-use and multi-family developments in which construction starts were up 40 percent in 2014 over 2013, and 38 percent in 2013 over 2012.

We’re not yet at a point like the one we reached in 2004. We don’t expect that we’ll see the recent growth taper but instead remain roughly at the same levels; however, the growth taking place in urban areas is pretty sustainable. Even in Santa Clarita there’s infilling in some of the spaces around the entertainment, retail and office areas where people want to be.

Walkable developments close to transit and entertainment are trending. Tenants are seeking spaces which are comfortable, creative, interactive and stimulate casual interactions which enhance growth and innovation. Urban areas are seeing a renewed vitality and interest – downtown L.A., as an example, is the recipient of over 7,500 new residential units which will come online by 2016.

On the office side, we see some growth focused in smaller sub-markets like media, tech and entertainment. Job growth hasn’t been tremendous so there hasn’t been a need for new office developments other than where we see key (industry) expansions. For instance, much of the growth is focused in smaller pockets of sub-markets like Santa Monica, Culver City, downtown L.A. and Playa del Rey which has attracted quite a few big names – Yahoo, Google, YouTube and more. So when you look at certain industry sectors, big players are looking for larger creative space, and that’s driving development.

There’s been very little speculative building going on, and that’s been quite challenging for businesses. People haven’t been able to get financing to take on the economic risk of putting up a vacant building and then waiting for people to show up. Construction of new space is driven by capital primarily, and capital is a little more careful where they want to put their money and not put all their eggs into one basket before understanding the risks they’re taking.

Market-wide, office vacancy rates have ranged between 18 percent in 2010 to about 16 percent by the end of 2014.

SCVBJ: What type of demand is the highest in Southern California?

Wulf: Mixed-use kicked off the last cycle of development which has been robust throughout the region everywhere from the Westside to inland areas, down south and up north, across the board.

In terms of industrial space, we’ve seen growing demand in the Inland Empire and very little growth in urban areas. But there is a need for efficient buildings with the growth of ecommerce. Growth in this arena is based on being able to provide quick delivery times within efficient buildings and has led the demand to re-start the speculative development for the inland counties. The growth is specific to users and, unfortunately, more times often than not they don’t plan far enough ahead in terms of their future needs.

Developers think about future needs but it’s a tough, competitive landscape; and building often doesn’t occur until an owner-operator links up with a developer to plan for the future and start a build-to-suit project.

One other product type we’re seeing is the re-use of older buildings, not in Santa Clarita so much as in Los Angeles which is maturing as a city and beginning to make use of older, historic buildings. We’re seeing a lot of desire for authenticity and experience in a place that’s tied to an urban area.

SCVBJ: What industries are influencing space design and how?

Wulf: We’re seeing trends on the office side with a new focus on collaboration, co-working spaces and break rooms designed like a coffee shop with everyone on their laptop.  The break room in the office is a becoming a creative environment of casual interaction of team workers. It spurs thoughts, solutions and creative ideas, whereas people rarely interacted in the old office models.

There’s also a new shift toward more efficient office space that takes up less square feet but has substantial amenities. Much of this growth comes from the collaborative nature of work today as well as the demographic – in 2015, the Gen-Yers will become the majority of the U.S. workforce at 78 million – surpassing the baby boomers. They bring a new shift or new dynamic in how we work.

The space design comes from technology company models like Facebook, Google, Apple and now even Amazon, who provide work environments that begin to feel more like a hotel or residential environment – it’s more casual, calming, interactive and keeps people at the company longer. While not a lot of new building has taken place, however, we see a lot of these space designs being worked out within existing interior tenant spaces.

The next cycle and new construction of office buildings now being taking into account by developers is starting to be addressed with new ground-up built spaces including how to create indoor/outdoor space, outdoor conference rooms, rooftop outdoor space and windows that open to make it feel more exciting to be at work.

SCVBJ: Is any one sector driving commercial development financing?

Wulf: Traditional lenders are still engaged and international capital is flocking to real estate. Underwriting standards are still high – but capital is competitive and working hard to be placed.

But there’s not any one sector driving financing. There’s a significant amount of capital available focused on the real estate sector due to the growth of the stock market in the last few years. For instance, the overall portfolio of REITs grew – so while they might still only have 5 to 10 percent of their fund allocated for real estate, now there’s more money in the fund. There’s also more competition in the finance space. REITs have raised quite a bit of money but they’re having to compete across equity funds, pension funds and more.

On the debt side, there are still plenty of traditional lenders providing permanent financing and construction loans but It’s highly competitive as the margins have gotten thinner.

SCVBJ: What are the biggest obstacles for builders/developers in California?

Wulf: We (NAIOP) focus on three things: Education, Business Opportunity and Advocacy. Among the challenges we see is the time and process required in California to obtain approvals and delivery of product. It’s one of the most highly regulated states and it can take three to five years from conception to delivered project.

New regulations are put in place each year and create a more costly, time-consuming process to deliver new buildings. Staying up to speed on these and navigating the process is a challenge. That amount of regulation is lost on the lay person who doesn’t understand why it takes so long to get through the process or complete a project.

SCVBJ: So what kind of effect does that have on speculative building?

Wulf: The risk for the developer is time, and that becomes a market risk because the economic situation today might be quite different three to five years from now. It’s this lengthy process that impacts speculative development. Many of the new projects delivering now were planned before or during the last recession. But we all know that history repeats itself, and so we have to proceed with caution and make sure there’s some protection in there if we’re going to build.

Our organization focuses a lot on CEQA reform, whether there would be any official reform or adjustments to CEQA to streamline the process of development. We all fully realize it’s something we need to do. Legislation has been introduced to try and streamline CEQA, and we would be a proponent of it if it would clarify the process for us.

We’d like to make sure that a process has a clear path ahead and we know what we’re up against up before we begin a project – that would save time and money. As it stands now, you can do your best to understand or expect a result, but you never know for certain what’s required. We need a level playing field; we need to know where the goal line is and not have it keep moving.

SCVBJ: What is the outlook for 2015 and beyond?

Wulf: The outlook for the next couple of years is strong for the real estate industry as a Niwhole. It’s the same result in terms of what we’re seeing for the country and region. We’re seeing strong economic growth. But there are still some risks with lackluster job growth and legislative additions. There is always the fear of rising interest rates. We watch the slow job growth with a little trepidation, although we suspect some of it is companies just still being careful.

Overall, we feel good about 2015 and, going forward, we don’t see a lot of over-building. Things have been fairly well tempered in terms of meeting demand and not going overboard.

YPG Announces Winning Team for CapRock Cup

EDITEDYPG_CAPROCK

Each year the NAIOP SoCal Young Professionals Group (YPG) holds a case competition for its current 35-member class of real estate professionals. This final project case competition is a culmination of the YPG Class’ 12-month, 70-hour course designed to educate, develop, connect, and elevate the commercial real estate industry’s emerging leaders. The success of YPG over its ten years of existence speaks for itself – its more than 300 alumni include C-level executives at their respective firms, principals who have founded their own companies and NAIOP SoCal Board Members.

This year, the five teams each presented their strategic plan and proposal on the highest and best use for an active commercial real estate site located in Commerce owned by Prologis, Inc. CapRock Partners LLC, a private commercial real estate investment firm based in Orange County, became the first multi-year sponsor for the final project case competition, establishing the CapRock Cup as the grand prize trophy.

Teams were judged by an esteemed panel of five industry leaders, who scored the teams on their presentations. The winning YPG team included: Steven Hillgren, Wells Fargo; Jason DiRocco, Voit Real Estate Services; Brent Ozenbaugh, Vantage Property Investors; Brett Tanimoto, The Muller Company; Keith Greer, CBRE; Brad Johnson, LBA Realty; and McCay Major, John Hancock Financial Services.

“The YPG teams each offered unique and innovative solutions to a complex redevelopment property in Commerce. The property has been a food court and a community amenity for twenty years and each team provided their own recommendation for value optimization strategies that are all worthy of consideration. As the property owner, we were impressed with their creativity,” said Kim Snyder, president, US Southwest region, Prologis.

“CapRock Partners has a rich history with NAIOP SoCal’s Young Professionals Group – and many of the accomplished commercial real estate professionals in our firm are alumni of the program – including Jon Pharris, Jake Loughridge, and Taylor Arnett,” said Jerry Pharris, Co-Founder and CEO of CapRock Partners. “We are thrilled to be a multi-year sponsor of the YPG’s final project case competition, as we are committed to supporting the growth of the brightest young minds in the industry today.”

Jon Pharris, CapRock Partners’ Co-Founder and Director of Acquisitions, also served as one of the five judges on the project’s panel.

“The YPG program is an intense and critically valuable opportunity for young real estate professionals to build on their existing knowledge and grow in their profession. The case competition is an important marker and competitive opportunity to put their knowledge to the test. I’m proud to say that this program is now a benchmark for similar programs across the nation, and it’s making an impact in the next generation of real estate leadership here in southern California,” said Tom Wulf,  2015 NAIOP SoCal President and senior vice president, Lowe Enterprises Real Estate Group.

Members In The News

Davis Partners Expands to the Bay Area
Davis Partners has expanded its management services to the Bay Area. Since 1972, the firm has focused on ground-up development, investment, debt and equity structuring and workouts, as well as all the third-party support functions of management, leasing, accounting and reporting. The firm has now recognized the opportunity to follow the Bay Area’s strong economic growth and expansion of its client business into Northern California.

Snyder Langston Completes Construction of 70,000-Square-Foot MOB in Los Alamitos
Snyder Langston completed $37 million construction of a three-story, 70,000-square-foot multi-tenant medical office building (MOB) and six-level parking structure within Los Alamitos Medical Center for developer Pacific Medical Buildings. The MOB was designed by architecture firm Boulder Associates, and the 1,077-space parking structure was designed by IDG Parkitects. The building is now LEED-certified.

PCCP, LLC Provides $30.6 Million Senior Loan to the Arden Group
PCCP, LLC has provided a $30.6 million senior loan to the Arden Group for the acquisition and renovation of the InterContinental Tampa, a 323-key full-service hotel located in the Westshore submarket of Tampa, FL. Capital improvements include upgrading the guest rooms, guest baths and meeting space, with the remainder allocated toward a refresh of common areas, mechanical, and elevators.

Stillwater Investment Group Acquires 34,500-Square-Foot Office Building in Ontario
Stillwater Investment Group, led by YPG alum John Drachman, has acquired a value-add, two-story, 34,500-square-foot office building in Ontario from Rialto Capital for $2.35 million. Built in 2007, the property, located at 1801 East Holt, is currently unoccupied. Stillwater plans to take advantage of limited new development and the diminishing blocks of space in the market for the 20,000-square-foot and up size range. Phil Woodford, Senior Vice President with CBRE, represented both the buyer and seller.

YPG Members Launch Harbor Associates
YPG alumni Paul Miszkowicz, Justin Loiacono and Joon Choi have launched a new real estate venture, Harbor Associates, specializing in acquiring, renovating, and repositioning commercial properties throughout Southern California.

James Camp to Lead Rockefeller Group West
The Rockefeller Group announced that veteran property development and asset management professional James Camp has joined the company as senior vice president and regional development officer for the western region. Camp, who has extensive experience in all aspects of commercial property development, was previously vice president of Starwood CPG Operations

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 84 new members to the chapter between December 10th and March 25th. We look forward to seeing each of them at our upcoming events!

 

AEW Capital Management LP Scott Doucette
AEW Capital Management LP Matt Haydis
AEW Capital Management LP Stephanie Ly
Albert A. Webb & Associates D. J. Arrellano
Alere Property Group Michael Cushing
Alere Property Group Michael Del Santo
Alere Property Group Matt Englhard
Alere Property Group Clark Neuhoff
Alere Property Group Daniel Webb
Allen Matkins Pamela Andes
Bank of America Merrill Lynch Bob Shahmardi
Bixby Land Company Prashant Patel
Buchanan Street Partners Tom Lam
Cal Poly Pomona Binh Nguyen
CBRE David Josker
Chicago Title Company Brad Godwin
CIBC World Markets Olga Timofeeva
Cohn Reznick Dave Gibbs
Cohn Reznick Daniel Zaninovich
CoStar Group Brian Friedman
Cushman & Wakefield of California, Inc. Spencer Ingram
DCT Industrial Katherine Flynn
Donahue Schriber Realty Group Lawrence Casey
Equus Capital Partners Jonathan Praw
Ernst & Young LLP Sudarshan Jain
First American Title Insurance Company Patti Chaffee
First American Title Insurance Company Emilya Svadjian
First Bank Bill Blackwell
First Bank Debra Carpenter
GE Capital Real Estate Christian Garner
GE Capital Real Estate Manish Jain
Gensler Ben Marcus
Golden West College Brittani Schallmo
Goldman Sachs Commercial Mortgage Capital Toni Steele
Goodman Birtcher Lucas Stensby
Hines Shaina Li
Hines Samantha Shaughnessy
Hollister Construction Company Curt Cox
IDI Giancarlo Da Prato
Industrial Income Trust Joel Wicks
Irvine Company Office Properties Kristoffer YDeen
JPMorgan Chase Bank, N.A. Cooper Dodd
KBS Realty Advisors Inc. Michael DeFoe
KBS Realty Advisors Inc. Rob Durand
KBS Realty Advisors Inc. Mimi Nguyen
KBS Realty Advisors Inc. Rodney Richerson
KeyBank Real Estate Capital William Benjamin
Koss REsource Samson Lov
LBA Realty Stephanie Olazabal
Lee & Associates Gary Congdon
Lee & Associates Ryan Earnhart
Lennar Multifamily Communities Jon Tanury
Lowe Enterprises Real Estate Group, Inc. Peter Morgan
Lowe Enterprises Real Estate Group, Inc. Alex San Andres
Luther Burbank Savings Warren Ramsey
MIG Real Estate LLC Andrea Redewill
Newmark Grubb Knight Frank Emilie Cope
NTrust Infotech Richard Platzek
Palladian General Mortgage Company Stewart Royer
Plaza Bank Chris Rabenold
Prologis Analise Guttman
Quality Office Furnishings Steven Sorensen
Rockwood Capital, LLC Mark Workman
Sentinel Development Jerry Poucher
Sentinel Development Curtis Woolsey
Shea Properties Peter Park
Shea Properties Steve Perales
Snyder Langston Zenith DeRosier
Thrifty Oil Co. Marc Berg
Transwestern Lori Smith
University of California Los Angeles Neil Doshi
University of California Los Angeles Michael Gustavson
University of California Los Angeles Gregory James
University of California Los Angeles Min Kang
University of California Los Angeles Ian O’Neill
University of California Los Angeles Talia Regev
University of California Los Angeles Christopher Rose
University of California Los Angeles Jeffrey Stern
Ware Malcomb Stephanie Martinez
Wells Fargo Real Estate Group Trent Brown
Westcap Corp Stephan Coste
Westport Capital Partners LLC Peter Campbell
Wind Water Realty Advisers Robert Rader
Wind Water Realty Advisers Russell Smith

 

Presidents Message

Proehl-Jim-Headshot

Commercial real estate in Southern California is finally gaining some momentum as rental rates begin their climb and sale prices escalate at an even quicker pace. Having recently attended the NAIOP 2014 Development Conference in Denver, Colorado, I can confirm that the mood across the country is very positive as the economy strengthens and the Republicans take control of the Senate.   Our Legislative Committee was extremely busy this Fall helping the business-friendly politicians get elected at the state, county and city levels of government. Their strong efforts averted the super majority for the Democrats in Sacramento.

NAIOP SoCal also had a busy Fall season, starting with more than 300 golfers attending our annual Orange County Golf Tournament in September. Our annual Fall Forum in Los Angeles reviewing capital markets featured a very strong panel of industry experts. The key takeaway was that money is very plentiful and cheap – for right now – so expect competition to be great for those projects you are expecting to acquire.

Our Young Professionals Group (YPG) has been active with numerous meetings and events for the members and alumni. I recently attended the YPG “Big for a Day,” where YPG students, alumni and NAIOP SoCal Board members are paired with children from the Big Brothers and Big Sisters Program who are still on the waiting list to get a Big Brother or Big Sister.   A fun day was had by all, although a few of us brave souls went home much wetter than we expected.

We also recently held our annual Real Estate Challenge. Teams from UCLA and USC’s real estate graduate programs competed against each other on their plans to redevelop the former Los Angeles Times printing facility in Costa Mesa. It was exciting to hear the fresh ideas and watch the students make their final presentations. If you didn’t get a chance to join us this year at Covel Commons, I encourage you to make a point of joining us in 2015. It is one of the most unique real estate events in the industry and a great chance to support two dynamic universities.

As we wrap up 2014, we would like to give a special thanks to our Corporate Sponsors for their continued support this year.  NAIOP SoCal could not deliver the level of education, networking and legislative support that we do without the great support of our Corporate Sponsors.

Finally, for those of you who were fortunate enough to attend the UCI Center for Real Estate Awards Luncheon, you were probably as proud as I was to see Ray Lawler, NAIOP Board Member and retired Major and Aviator with the United States Marine Corps, receive a much-deserved Rising Star Award. Congratulations, Ray – we salute you and thank you for your service to our country.

Jim Proehl
President

UCLA Takes Home the Silver Shovel!

On November 20, almost 300 industry professionals were at UCLA’s Covel Commons to watch the student teams from the Ziman Center for Real Estate at UCLA’s Anderson School of Business and the Lusk Center at USC’s Marshall School of Business and Price School of Public Policy present their strategies and highest and best use proposals for an iconic Orange County site.

silvershovel

The five-member UCLA team took home the Silver Shovel for their mixed use proposal titled The Platform. This year’s site was a prime 21-acre location in Costa Mesa and one of three printing facilities operated by the Los Angeles Times around the clock until approximately 2010. Due to the decline in physical paper distribution, all operations had been consolidated to their downtown LA facility.

James “Watty” Watson, CEO and President of CT Realty Investors, was our featured guest emcee along with color commentary on the upcoming USC vs. UCLA football game provided by Paul McDonald, former quarterback for USC and honorary team captain for the USC student team, along with Cade McNown, former quarterback for UCLA and honorary team captain for the UCLA student team.

Special thanks to the outstanding line-up of industry movers and shakers who served as judges for the student presentations. They included: Nelson Algaze, SAA; Mike Alvarado, FivePoint Communities; Joaquin de Monet, Palisades Capital Realty Advisors; Barbara Emmons, CBRE; Amy Forbes, Gibson Dunn; Noah Hochman, TruAmerica Multifamily, LLC; Kevin Jennings, Bank of America Merrill Lynch; Wil Smith, Greenlaw Partners; Todd Sugimoto, HFF; Terry Thompson, County of San Bernardino; and Mark Zytko, Mesa West Capital.

YPG and NAIOP SoCal Celebrate Big for a Day

bigday_top

Big for a Day is an all-day event hosted by the YPG alumni. This year, the chapter hosted 23 kids, ranging in age from five to 14, at Boomers in Irvine who are on the waiting list to be matched with a BIG through the Big Brothers Big Sisters of Orange County.  Volunteers included NAIOP board members, YPG alums and significant others, all coming together to support Big Brothers Big Sisters Orange County.

“This year’s event was a huge success! Bigs and Littles enjoyed a fun morning of unlimited activities such as mini golf, go-cart racing, laser tag, rides, and bumper boats,” said Ali Hawthorne, YPG Community Outreach Chair, YPG ’13. “There are more than 200 children on the Big Brothers Big Sisters waiting list, and thousands in our community, wishing for the positive influence of a Big Brother or Big Sister.  This event was a great way for volunteers to experience what it’s like to be a BIG and learn more about the organization.”

This event marked YPG and NAIOP SoCal’s fourth year hosting “Big for a Day” and it was a huge success with both Littles and Bigs who spent the day smiling from ear to ear.

Big Brothers Big Sisters of Orange County is a mentorship non-profit that serves children in the community from the ages of six to 16, by providing them with one-to-one mentors. More than 160 young boys are on the wait list and need your help to Start Something BIG! Do you go to beach? Bring your Little Brother with you. Do you go to baseball games? Bring your Little Brother with you. Do you like to eat? Eat with your Little Sister. It’s that simple. Participate twice a month and you’ll be making a BIG difference. For more information, contact Amanda Hastings at AHastings@BigBroOC.org or (714) 619-7025.

YPG Update

Baker Brian HeadshotOn Tuesday, October 14, NAIOP SoCal’s Young Professionals Group (YPG) partnered with UCIrvine and the Merage Real Estate Association to present “Commercial Real Estate Careers…A Day in the Life.”  The YPG class broke into five- and six-member teams and made ten-minute presentations to 28 UCI undergraduate and graduate students interested in careers in commercial real estate.  The presentations touched on the day-to-day activities of a variety of functional areas including asset management, brokerage, finance, and construction development.  Each presentation was judged by an esteemed panel of individuals that critiqued them on presentation quality, audience engagement and the quality of their visual aids.  The evening ended with a terrific networking session for the students and YPG members.  Feedback from the student body, UCI Career Center and UCI Center for Real Estate was extremely positive. Special thanks to UCI Center for Real Estate Director Mike Robb and Associate Director Sharon Nakamura-Brown.

ypgupdate_1

Congratulations to Brian Baker who was named one of ten Developing Leaders during the NAIOP Development Conference held recently in Denver.  The award is presented to those who have shown exemplary achievements and demonstrated outstanding professional accomplishments in the commercial real estate industry.  Each applicant must be a member of NAIOP in good standing and is selected based on the following criteria: leadership, professional competency, career goals, NAIOP participation and community involvement.

ypgupdate_2

The application period for the 2015-16 YPG Class is now OPEN. Designed for individuals age 35 and younger who wish to further their educational and leadership skills, this 12-month, 70-hour course provides a broad-based understanding of the critical components of the real estate business, as well as key business and operating principles and networking opportunities with leading industry executives. Deadline for receipt of ALL application materials is January 16, 2015. Click here for more details and a copy of the application.

Finally, a huge thank you to all of our 2014-2015 sponsors, including Auction.Com, LBA Realty, CapRock Partners, Prologis, Bank of America Merrill Lynch, CIBC World Markets, JPMorgan Chase, Luther Savings Bank, U.S. Bank and Ware Malcomb. Without you, the program would not be where it is today.  Your financial contribution makes the YPG program elements possible and provides a way for us to outreach to more of our real estate community.

Brian Baker
2014-15 YPG Alumni Committee Chair

Legislative Update

In this report … Election Results Mostly Good News, Some Disappointments. Congrats to SoCal Board Member Justin McCusker! Split Roll Endorsements Defeated in Culver City. NAIOP SoCal and Inland Empire Participate in ITE Truck Trip Study. Join the Legislative Affairs Committee. Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

ELECTION RESULTS – STATEWIDE AND LOCAL

Congratulations to Board Member and Legislative Affairs Committee Vice Chair Justin McCusker on his election to the Santa Margarita Water District. Also winning a seat on the Municipal Water District of Orange County was NAIOP-supported candidate and Irvine Company consultant Satoru “Sat” Tamaribuchi.

State Victories

By now everyone is aware of the changes in the balance of power at the national level. In California, while remaining “blue,” voters still elected enough Republicans to gain three seats in the Assembly and one in the Senate. Three of the four seats were in NAIOP SoCal’s region and the NAIOP SoCal Political Action Committee (PAC) was actively involved in the campaigns.

Orange County Supervisor Janet Nguyen soundly defeated her Democratic opponent for Senate and succeeded in converting a Democratic seat to a Republican seat in central Orange County. (Click Here to read Nguyen’s Acceptance Letter.) In northern Orange County, Republican Young Kim defeated incumbent Democrat Assembly Member Sharon Quirk-Silva. (Click Here to read Kim’s Acceptance Letter.) In another upset in South Bay Los Angeles, Republican challenger David Hadley defeated another one-term Democratic incumbent Al Muratsuchi.

Of the 18 candidates featured in the NAIOP SoCal Voter Guide, 17 won election!

State Ballot Measures Pass

NAIOP and CBPA endorsed Propositions 1 and 2 – the Water Bond and “Rainy Day Fund,” which both passed.

Local Elections

NAIOP SoCal went on record supporting the General Plan Amendment in Newport Beach, which went down to a very disappointing defeat. The NAIOP SoCal PAC also contributed to local City Council candidates in key cities including all three candidates for city council who won in Irvine and three of the four wining candidates in Huntington Beach, as well as the two new members of the Board of Supervisors – Michelle Steel and Lisa Bartlett.

NAIOP SoCal opposed Proposition H in the City of Malibu, which was defeated. It would have amended the City’s real estate transfer tax to increase the tax for commercial and non-commercial real estate over $1 million.

NAIOP SoCal also opposed Measure R in the City of Malibu. It passed and, as a result, future development projects over 20,000 square feet will need to be approved by the voters. Other restrictions on development were also adopted.

SPLIT ROLL ENDORSEMENTS DEFEATED IN CULVER CITY

Evolve Organization Lobbying for Split Roll

In October and November, NAIOP SoCal Legislative Committee Chairman Kevin Ivey and Legislative Staff Member Peter Herzog attended Culver City Council and Board of Education meetings to oppose those bodies taking a position to support Split Roll. The good news is that neither passed the resolution supporting Split Roll, which was proposed by Evolve, an organization supporting a Split Roll Property Tax.

Kevin did a great job presenting the NAIOP position. Tom Wulf, SoCal’s President-Elect, was also very helpful behind the scenes.  He was at the City Council meeting when Evolve proposed their resolution and alerted NAIOP staff, which allowed us to get a coalition together to fight these two efforts successfully.  That lead time was extremely important.  The Culver City Chamber of Commerce also did a marvelous job.

NAIOP SOCAL AND INLAND EMPIRE PARTICIPATE IN ITE TRUCK TRIP STUDY

SCAQMD Proposes Study ~ ITE Agrees

The South Coast Air Quality Management District (SCAQMD) has been focusing on the Institute for Traffic Engineers (ITE) Truck Trip Study for some time now, with the goal of changing the ITE-adopted truck trips for warehouses. You will recall the NAIOP Inland Empire Chapter, with support from SoCal, was instrumental several years ago in helping conduct studies that established the ITE truck trip guidelines for warehouses.

So far, NAIOP has been successful in preventing the SCAQMD from adopting regulations differing from the ITE manuals on truck trips, which is used throughout the United Sates. However, SCAQMD’s recent approach to ITE to conduct new studies that would be paid for by SCAQMD met with a positive response from ITE’s Executive Director. NAIOP SoCal and Inland Empire chapters have stepped up to split the cost of the study with SCAQMD in an effort to provide a balanced perspective.

For more information on this issue, please feel free to contact Legislative Affairs staff Peter Herzog.

INVITATION TO JOIN LEGISLATIVE AFFAIRS COMMITTEE

Monthly luncheon meetings cover State and Local Legislative Issues and Meet with Legislators

As we wind down 2014, the Legislative Affairs Committee would like to extend an invitation to NAIOP members who are interested in legislative and policy issues that impact commercial real estate to join the committee. Working lunch meetings are held once a month at 11:30 a.m. to 1:00 p.m. in the Costa Mesa offices of Snell and Wilmer. Frequently elected officials are invited to discuss issues and interact with committee members. In October, Orange County Supervisor Janet Nguyen, now State Senator Elect Nguyen met with committee members and at the November 20, 2014 meeting Assembly Member Travis Allen dropped by for an interesting discussion.

For more information, please feel free to contact Legislative Affairs Committee Chair Kevin Ivey or Director of Legislative Affairs Vickie Talley.

Fall Forum 2014 Recap

On October 16, NAIOP SoCal brought together financial leaders to discuss the capital markets today. Our panel included moderator Kevin MacKenzie, senior managing director, HFF and panelists Wayne Brandt, managing director, Wells Fargo & Company; John Devereux, executive vice president, Commercial Real Estate Group, OneWest Bank; John Murray, executive vice president, PIMCO; and Jeff Friedman, co-founder / co-chief executive officer, Mesa West Capital.

Overall, panelists were positive about the market.

John Devereux shared that he thinks we are in the middle innings of a modest recovery with real estate values in many markets priced close to perfection as valuations in those markets have outpaced fundamentals.  He added, “However, I expect strong demand in 2015.  Corporate balance sheets are in good shape and job growth has picked up.  Technology, entertainment and energy are leading the recovery. Interest rates should remain low in 2015.  Lower gasoline prices will be a positive into next year.  Competition will continue to increase on both the debt and equity side pushing real estate pricing and leverage higher.  With the exception of retail and multifamily, the lack of new supply should result in enough rent growth to justify pricing in primary markets at least in 2015.  The risk will be when a) new supply picks up or b) pricing reflects unobtainable rent growth or c) when leverage creeps above the tipping point.”

John Murray said, “Private U.S. CRE equity capital has a record amount of dry powder; and pension funds, endowments and sovereign wealth funds are increasing their allocations further to U.S commercial real estate.  On the debt side, new issuance CMBS remains one of the only games in town as new issuance RMBS remains dormant.  While these trends are compelling for U.S. CRE, investors should remember that capital markets are fickle.  Fundamentals still matter in the long run.”

Dr. Christian L. Redfearn Named NAIOP Distinguished Fellow

redfearn_iconCongratulations to Christian L. Redfearn, Ph.D. who has been appointed as a NAIOP Distinguished Fellow for 2015. Redfearn is an associate professor in USC’s Sol Price School of Public Policy and a Research Fellow at USC’s Lusk Center for Real Estate. His general area of research interest is urban economics, with concentrations that include urban and regional economics, urban development and redevelopment, local market and neighborhood dynamics, aggregate price measurement, home ownership, real estate capital markets and foreclosure. In addition, Professor Redfearn directs the Dollinger Master of Real Estate Masters degree and the USC Price/Borstein Real Estate Case Series.

The Research Foundation’s Distinguished Fellows Program engages the nation’s foremost commercial real estate, economic and public policy experts. Distinguished Fellows contribute articles to NAIOP’s Development magazine, present to the association’s leadership via the Board of Directors or National Forums, participate on corporate committees and provide advice, feedback and information regarding research being conducted in commercial real estate. The Distinguished Fellows are active participants in NAIOP.

Members In The News

Talonvest Arranges $76M for Self-Storage Clients
Boutique self-storage and commercial real estate advisor Talonvest Capital, Inc. has arranged nearly $75.6 million of funding for self-storage acquisition and refinance loans. The funding was set for assignments in Southern California and Texas.

Focus Real Estate Buys 3 Industrial Buildings in El Segundo for Creative Office Conversion
Focus Real Estate acquired a three-building industrial project in the Smoky Hollow sub-market of El Segundo.  The buildings have been occupied by an aerospace manufacturing company who is vacating after 30 years.  Focus plans to convert the existing buildings to a creative office style campus to be marketed to owner/users or investors.

Xebec Realty Partners Breaks Ground on Spec 342,629-SF Industrial Business Park
Addressing the pent-up demand for Class A warehouse facilities in Southern California’s San Gabriel Valley, Xebec Realty Partners has broken ground on 10th Street Center, a new three-building, 342,629-square foot state-of-the-art industrial business park located in Azusa. Randy Kendrick, CEO of Xebec Realty Partners says that 10th Street Center will provide an efficient solution for firms seeking premium, state-of-the-art warehouse space in Southern California’s preeminent industrial corridor.

JLL Hires Five Project Managers
JLL expanded its Project and Development Services (PDS) Group in Southern California with the hiring of five project managers including Ivan Kesian, Joshua Tickenoff, Andrew Hurley, Tom Donkin and Adam Rubin.  The new additions come as JLL recently acquired CLEO Construction Management, a prominent Southern California-based construction project management services firm that specializes in healthcare facilities.  To date, the firm has brought on board 25 PDS professionals to the team in 2014.

All-Ways Pacific, LLC Signs 254,718 SF Industrial Lease in Los Angeles County
JLL completed a new lease with third-party logistics firm All-Ways Pacific, LLC for an entire 254,718-square-foot industrial building located at 15300 Desman Road in La Mirada, California. JLL Orange County Senior Vice Presidents Luke McDaniel and Cameron Driscoll represented the landlord.  DAUM Commercial represented the tenant.

PCCP, LLC Provides $56.5 Million Senior Loan to the Ritchie Group to Acquire, Develop and Stabilize Condominium Project
PCCP, LLC has provided a $56.5 million senior loan to finance the acquisition, development and stabilization of Midtown360 to Salt Lake City-based developer, The Ritchie Group. Located on 10.3 acres at 320 South State Street in Orem, UT – a city 40 miles south of Salt Lake City – Midtown360 (originally called Midtown Village) halted mid-construction in 2008. The project was partially completed with 40 residential units and some retail space. PCCP’s loan will provide the proceeds for the acquisition of the entire project. Additionally, the financing will be used to help complete construction and stabilize Phase 1 of the development.

Westcore Properties Acquires Class-A Orange County Office Building
Westcore Properties has acquired a 98,000 square-foot, Class-A office building and six-acre site in the City of Orange for $25.3 million. Located at 999 W. Town and Country Road, the four-story building was originally constructed in 1977 and significantly renovated from 2006 to 2008. The seller is Kilroy Realty and the entire building is occupied by AECOM, a global provider of architecture, design, engineering and construction services, with a lease signed through mid-2018. San Diego-based Westcore Properties currently owns 11.7 million square feet of commercial space in the California market. Baker Morphy of Jones Lang LaSalle’s Irvine office and Bob Prendergast of Jones Lang LaSalle’s San Diego office jointly represented Kilroy Realty in the transaction.

NAIOP SoCal Welcomes New Members!

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 61 new members to the chapter between August 20th and December 5th. We look forward to seeing each of them at our upcoming events!

Taylor Champagne
Brett Mascaro
Allegion Christopher Smith
Alliant Insurance Services Shawn Kraatz
Bank of America Merrill Lynch Jay Hunter
Bixby Land Company David Tombers
Bolour Associates Karine Clark
Bolour Associates Kristin Runyan
Bolour Associates Elliot Shirwo
Cal Poly Pomona Connie Chung
California Bank & Trust Mark Bucci
Casco Contractors, Inc. Matt Blake
CBRE Peter Andrich
CBRE Yong Cho
CBRE Brian DeRevere
CBRE Stephen Dunstan
CBRE James Slusher
CDG Builders Scott Cernigoj
Chicago Title Company Chris Miller
Chicago Title Company Robin Reimold
Cohn Reznick Mehmet Ugur
Cohn Reznick Garrett Ushiyama
Colliers International A. Dwight Hotchkiss
Commonwealth Land Title Company Lesley Nolen
Connor Construction Vincent Ciccone
Diamond Realty Investments Yoshiro Ishihara
First American Title Insurance Company Ed Kezar
First American Title Insurance Company Valerie Kolytiris
Guthrie Development Company Cortland Armour
Guthrie Development Company Gary Guzman
Guthrie Development Company Peter Schafer
Heger Industrial Marc Bonando
Interstate Land Company Michael Hair
The Irvine Company Beau Rawl
Koss REsource Samson Lov
LBA Realty Tim Ednoff
Marcus & Millichap Nicholas Reese
Newmark Realty Capital, Inc. Andy Bratt
Newmark Realty Capital, Inc. Frederick Grim
Orange Coast College Alicia Jones
Panattoni Development Company Jay Tanjuan
PCL Construction Services, Inc. Mark Mourey
PM Realty Group Kelly Gamble
PM Realty Group Mike Muller
PM Realty Group John Sterling
Sperry Commercial Darren Diau
Sunwest Bank Christopher Gaudreau
Taco Obsession Daniel Mailloux
TIAA-CREF Michael Boss
U.S. Bank Cyrus Rafael
University of California Irvine Jason Sack
University of California Irvine Aaron Sun
University of California Irvine Kentaro Koga
University of California Irvine Justin Kivel
University of Southern California Daekeun Lee
University of Southern California Brett Granum
University of Southern California Weidi Zhang
University of Southern California Joshua Nelson
Westcore Properties Eugene Marini
Westgroup Designs, Inc. Parisima Hassani
Wright, Finlay & Zak Peter Watson

Presidents Message

Proehl-Jim-HeadshotAs the market continues to show positive signs of improvement, I see the ongoing demand for our organization and the value it brings on all fronts – legislative, education and networking.

You’ll see from the Legislative reports in this edition, along with an article written by Sean Sherlock that appeared in the Daily Journal, that our legislative committee members and partners are busier than ever. Special thanks to our members, legislative committee staff and volunteers for their hard work in helping to defeat the wage lien bill, and to our CBPA lobbyists who worked the halls in Sacramento on our behalf into the early morning hours. Our chapter is also working diligently to keep split roll off the ballot, and you can expect to see more on this issue in the coming months.

We are also working proactively with the industry’s future leaders. Our Young Professionals Group (YPG) is now in its 10th year with more than 300 alumni who have benefitted from YPG programs and mentoring. Our chapter continues to focus on the next generation through Lunch and Learn events with college students and our outstanding annual event – the NAIOP SoCal Real Estate Challenge, featuring select graduate students from USC and UCLA. I can think of no better way for our community to ensure the strength of its future than by working one-on-one with those who are seeking to make real estate their career.

I hope you plan to attend the NAIOP SoCal USC vs. UCLA Real Estate Challenge to be held on November 20 at Covel Commons on the UCLA campus. Learn more in this edition.

NAIOP Corporate Chairman Jean Kane spent time with us on July 10 talking with our board of directors and joining the chapter at its Jonathan Club Beach BBQ event. During her time with us, Jean shared several main focuses for 2014. We’ve covered some of what she shared.

Finally – one of the best ways to appreciate NAIOP SoCal membership is through our continually sold-out events. We had an outstanding presentation on the under-construction Wilshire Grand, featuring a unique hard hat tour.  NAIOP again had a sold-out field for a day on the course as part of the Los Angeles Golf Event. We also experienced a sell-out for our annual Night at the Fights, where the chapter had almost 1,000 industry professionals at the Irvine Hotel experiencing boxing, MMA, great food and lots of networking.  The event also provides an opportunity for us to support the Building Block Foundation with a donation from the sale of raffle tickets. If you missed Night at the Fights – make plans now to join us in 2015 as we will be celebrating our 25th anniversary!

Looking ahead, we will have our Orange County Golf Tournament on September 23 and our annual Fall Forum on October 16 featuring a leadership discussion on the capital markets.  I look forward to seeing you there!

Jim Proehl
President

Update from NAIOP Chair Jean Kane

NAIOP Chairman Jean Kane visited the chapter in July to connect with members to hear directly on opportunities and concerns as well as provide a high level overview of what the chapter is working on at a national level.

Here’s what Jean shared:

Our vision for NAIOP is clear: we’ll be the leading organization for commercial real estate knowledge, networking and advocacy.  As national Chairman, I have several main focuses for 2014. First, we need to continue our strong advocacy efforts. I believe we have one of the most effective grassroots networks and a terrific team on Capitol Hill.

  • This is a pivotal year for our industry, with mid-term elections this fall and critical legislation on the horizon.
  • I’m proud to share that our legislative team in D.C. has a seat at the table and has been influential in talks surrounding tax, energy and the renewal of terrorism risk insurance.
  • We’ve been a collective voice for our members and the entire industry to urge Congress to act on these critical issues that will help the nation with its economic recovery and stimulate development and investment.

Another strong focus is strengthening diversity within our industry and association.

  • While we’ve made huge progress from where the industry stood a decade ago, minorities are still under-represented (80% male, 92% Caucasian).
  • NAIOP has made a lot of progress with diversity through the Developing Leaders program, and it’s exciting to see new voices represented, both within our NAIOP chapters and in board rooms across the country.
  • We’re looking at how we can continue to engage the next generation, so much so that it’s been included as a focus of the strategic plan that will guide us during the next three years.

Another focus of NAIOP has always been to help prepare its members for opportunities, and this year is no exception. We continue to look at ways of expanding our educational offerings with our national conferences and online offerings. In June, we held our annual I.Con conference. It was highly successful, with record attendance.  Our national conference this October has a remarkable line-up of speakers and terrific project tours and events planned.  I encourage you to look into it.  If you don’t have the time to travel, check out our online offerings.

I also want you to know about the great work our research foundation is doing. The NAIOP Research Foundation just released its annual study on the economic impact of commercial real estate to the federal and state economies.

  • Office, industrial, warehouse and retail construction spending has grown for the third consecutive year, which is no surprise given the level of activity we’re seeing across all property types.
  • More than 363 million square feet of building space was added to the inventory last year – that’s an 18 percent increase over 2012.
  • The full report is currently available online, with our annual video and state cards coming this fall.

In summary, our industry is strong. NAIOP is a reflection of that strength with nearly 2,000 new members joining already this year, bringing our membership tally to nearly 16,000 members.  Thanks for all that each of you to do strengthen our industry and our association!

Jean-Kane-Present

President Jim Proehl presents appreciation gift to Jean Kan

Legislative Update

In this report  … Wage Lien Bill Fails.  Water Bond on November Ballot.  City of Santa Ana Considering Climate Action Plan.  NAIOP SoCal PAC Active in November Elections.  Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues. 

WAGE LIEN BILL FAILS IN LAST HOURS OF SESSION

Thank you to all NAIOP SoCal members who took the time to write the list of targeted State Senators to urge them to oppose AB 2416. This legislation would have allowed employees to record liens against any of the employer’s property located within California for alleged unpaid wages – even if the employer had nothing to do with the wage dispute.

The NAIOP State Council worked with the California Business Properties Association (CBPA) and a large coalition of business and real estate organizations to work for the defeat of this legislation, which was being pushed for passage by labor unions. Click here for an overview of the potential impact of this bill, and here for the opposition letter signed by over 70 organizations.

An article published in the August 12th Daily Journal advocated for passage of AB 2416. On behalf of NAIOP SoCal, Legislative Affairs Committee Member Sean Sherlock with Snell & Wilmer authored a well thought-out response, noting “AB 2416 will impose liability upon, and generate litigation against unwitting commercial property owners who had no role in hiring, supervising, or paying their tenants’ contractors’ workers, who had no idea that the workers were not paid, and who in many cases will have no way to defend themselves against a claim that someone else’s employee was not paid.”  Click here for a full copy of the article.

Despite last-minute efforts in the early morning hours on August 30th, the opposition failed to muster the necessary votes to move the bill off the floor of the Senate, making it essentially dead for the rest of the year.

WATER ISSUES

Water Bond on November Ballot – NAIOP So Cal Supports!

The California Legislature has passed and the Governor has signed a measure to replace the current water bond that is on the ballot with a $7.5 billion bond for voters to approve in November.  CBPA and NAIOP support this measure. For a good description of this bond measure and its importance, click here for Senate Republican Leader Bob Huff’s article.

NAIOP SoCal Supports Bay Delta Conservation Plan

The Bay Delta Conservation Plan has been a multi-year effort that reflects the collaboration of public water agencies, state and federal fish and wildlife agencies, business and agriculture stakeholders, local governments and the public. They have released various alternatives. NAIOP joined with other business organizations in supporting Alternative #4, the twin-tunnel conveyance system that isolates and protects drinking water supplies and helps restore natural flow patterns in the Delta. Click here for a copy of the letter submitted by NAIOP.

$500 Fines Announced for Wasting Water

Everyone is hearing about water conservation these days with the drought. Now, water agencies are faced with implementing new state rules that allow fines as much as $500 for water wasters.  For more details, read the Los Angeles Times report on the new rule.

CITY OF SANTA ANA CONSIDERING CLIMATE ACTION PLAN

NAIOP SoCal is involved with the initial discussions on a proposed Climate Action Plan in the City of Santa Ana. The Chapter was involved in a similar study in the cities of Irvine and Aliso Viejo; however, both of those cities scrapped the plan before adoption. NAIOP members interested in becoming involved in evaluating the city’s plans, please contact Director of Legislative Affairs Vickie Talley.

NAIOP SoCAL PAC ACTIVE IN NOVEMBER ELECTIONS

The SoCal Political Action Committee (PAC) has established priority elections where the Chapter will evaluate candidates and participate in candidate contributions. The PAC will also be evaluating ballot measures. Of particular interest to NAIOP members is the Proposed General Plan Amendment that has to go before the voters of Newport Beach. Watch for more information on the upcoming elections.  NAIOP members interested in becoming involved in the elections, please contact PAC Chair Marty Stradtman or PAC Advisory Vickie Talley.

YPG Update

The 2nd annual YGames was a huge success with 135 commercial real estate professionals showing up for the challenge.Everyone enjoyed a day filled with games, food, drinks and camaraderie. This year’s participants included 81 YPGers, 9 NAIOP SoCal board members and 38 young commercial real estate professionals.

top

The winning team included USC alumni led by YPG Advisor and Past President Tom Sherlock. Team members included Jason Matthews (co-captain), Alvin Zhu, Colin Hooper, Chad Manista, Mike Breiman, Aaron Goldstein and Christopher Yamashita (’15).

Events included a kayak race, football toss, chipping, blindfolded trike race, basketball toss and the ever popular water balloon launch. Points were also given for best team costume which was awarded to the Fun Police (who also took 2nd place Silver Medal overall) led by Captain Pam Westhoff and Co-Captain Alison Ramsey (‘08). The Bronze Medal was awarded to Risky Deeds with Kevin Jennings serving as Captain and Andrew Bennett (’12) as Co-Captain. Check out the latest YPG news for photos of the fierce competition.

This year’s Y Games also provided an opportunity for participants to give to Working Wardrobes. The non-profit empowers men, women, veterans and young adults overcoming difficult challenges to confidently enter the workforce and achieve success. Clients participate in career training, job placement assistance and professional wardrobe services in an environment of dignity and respect. During the event, nearly 400 pieces of clothing and accessories were received. In particular they collected a large volume of men’s attire – one of their biggest needs!

Finally, if you are looking for how you and your organization can support the next generation, consider being a YPG Sponsor. Special thanks to the following companies who have already committed: LBA Realty at Platinum, and Silver Sponsors Bank of America, CIBC, JP Morgan, Ware Malcomb and U.S. Bank. Your financial contribution makes the YPG program elements possible and provides a way for us to outreach to more of our real estate community. For more information, contact committee chair Darren Foster via email at dfoster@auction.com or phone at (949) 208-8506.

Brian Baker
2014-15 YPG Alumni Committee Chair

USC vs. UCLA Real Estate Challenge Returns

2014 REC Header

Join NAIOP SoCal on November 20 as student teams from the Lusk Center for Real Estate at USC’s Marshall School of Business and Price School of Public Policy and UCLA’s Ziman Center for Real Estate at the Anderson School of Business develop their comprehensive development proposals in a head-to-head competition on a local real estate site. It’s a night to celebrate the next generation of real estate leaders and to cheer on your favorite school.

For 2014, we’ve brought back our popular event emcee James “Watty” Watson, CEO and President of CT Realty. The Challenge also welcomes Cade McNown as an honorary team captain for the UCLA student team and color commentator on the upcoming USC vs. UCLA football game.

McNown attended UCLA, and played for the UCLA Bruins football team from 1995 to 1998. He became the starting quarterback as a true freshman, three games into the season, ranking first among all freshmen quarterbacks in many statistics. McNown is the only quarterback from either school to go 4-0 against their cross-town rival in the UCLA/USC game. Stay tuned for more on our soon-to-be-announced USC guest athlete who will join McNown.

It’s a night to celebrate rivalries, cheer your favorite teams, and support the graduate students who give it their all each and every year. Make plans to attend. Great sponsorships are still available – registration officially opens October 1st.

Programs – What’s Coming Up, What You Missed

Mark your calendars now for our Fall Forum Capital Markets Update, scheduled for Thursday, October 16th, at the prestigious California Club in downtown Los Angeles.  This annual event will feature industry experts discussing the latest activity in capital markets – what deals are getting done and where debt and equity markets are heading.   Full details and registration information will be sent soon, but mark your calendars now!

Fun in the Sun – Orange County BBQ Bash

programs_top

Fun in the Sun – Aloha Summer BBQ

programs

Members in the News

JLL Completes 115,494 SF Industrial Lease in Brea

JLL represented Wurth Louis and Company in a five-year, 115,494 square-foot industrial lease renewal at 895 Columbia Street in Brea for its corporate headquarters. JLL Orange County team members Louis Tomaselli and Garrett McClelland represented Wurth Louis and Company. The landlord, Louis Investment Company, was represented by Doug Himes of Lee & Associates.

PCCP, LLC Provides $43.1 Million Senior Loan to Provident Real Estate Ventures, LLC for the Renovation and Repositioning of Mayo Clinic Square in Minneapolis

PCCP, LLC announced it has provided a $43.1 million senior loan to Provident Real Estate Ventures, LLC for the renovation and repositioning of Mayo Clinic Square, a 217,354 square-foot mixed-use project in the heart of downtown Minneapolis, formerly known as Block E.

CBRE Represents Buyer and Seller in Acquisition of Inland Empire Industrial Park

Guthrie Development Company acquired Airport Distribution Center, a 221,171 square-foot industrial park in the Inland Empire region. The buildings sold for a total of $20.25 million. Located at 1500, 1550, and 1590 Milliken Avenue in Ontario, the park is comprised of three buildings and 30 units. Barbara Emmons, Darla Longo, and Michael Kendall of CBRE represented both the buyer, Guthrie Development Company, and the seller, Panattoni Development Company.

Snyder Langston and Ware Malcomb Part of Team Donating Services to Build the First USO Center at John Wayne Airport

Staffed by volunteers, the new USO center will provide much-needed services to the military members and their families who travel through John Wayne Airport each year. The center will feature a canteen, movies, travel assistance and Wi-Fi. Active and reserve members and their dependents will be welcome, as well as military retirees on a space-available basis. All services are complimentary for troops and guests.

JLL Completes Largest Infill Industrial Lease in Los Angeles History

JLL has completed a new lease with 99¢ Only Stores for the entire 615,000 square-foot Garfield Corporate Center located at 6100 Garfield Avenue in Commerce, California. The agreement marks the largest industrial infill lease ever signed in Los Angeles County. The building represents the largest free-standing building to be constructed in the Greater Los Angeles area in the past 10 years. JLL Los Angeles‘ team members Barry Hill, Paul Sablock, Tim O’Rourke, Mike Fowler and Zac Sakowski represented the landlord, KTR.

Shea Properties Buys 10 Acres

Shea Properties has acquired 10.5 acres in downtown Alhambra with plans to build a mixed-use complex with 140,000 square feet of retail and dining space and 260 luxury apartment units, aptly named Alhambra Place. The seller of the land site as well as the investment costs are undisclosed.

NAIOP SoCal Welcomes New Members!

NAIOP SoCal would like to welcome 90 new members to the chapter between April 8th and August 20th. We look forward to seeing each of them at our upcoming events!

Allen Matkins Leck Gamble Mallory & Natsis LLP Jason Perscheid
Alvarado Smith Benjamin Benumof
Arizona Commerce Authority Peter Ruiz
Auction.com Robert Drury
Auction.com Matthew Pipkin
Auction.com Tristan Tams
Banc of California David Ghannadi
Bixby Land Company Mark Belknap
Cal Poly Pomona Andrew Park
California State University Fullerton Justin Monroy
Casco Contractors Inc. Cheryl Osborn
Cash Mach Inc. Harwood Hamilton
CBRE Blake Bokosky
CBRE Zach Faber
CBRE Derek Fitch
CBRE John Green
CBRE Carter Haslam
CBRE Joseph Hulston
CBRE Melissa May
CBRE Allison McDuffie
CBRE April Rodgers
CBRE Eric Roy
CBRE Phillip Ruhl
CenterPoint Properties James Shields
Chapman University Hayley Chandler
Commonwealth | Lawyers Title Amy Sitzman
Commonwealth | Lawyers Title John Ursini
Concordia University Matthew Turcutto
DCT Industrial Collin Phillips
Farmers & Merchants Bank Tony Craig
G & J Construction Management LP Martin Gilbert
GE Capital Real Estate Stephen Santacroce
Gibbs Giden Jeffrey Love
Green Street Advisors John Bejjani
Green Street Advisors Joseph Reagan
HFF Derreck Barker
JOA Group Steve Chaky
JPMorgan Chase Bank N.A. David Bruni
KB Home Aubree Green
KBS Realty Advisors Inc. Lori Lewis
Kimley-Horn Associates Michael Choi
Mariners Escrow Jillian Foell Braverman
Mark IV Capital Inc. Evan Slavik
Marsh Risk & Insurance Kyle Richards
Marvin F. Poer and Company Scott Donald
NAI Capital Inc. Philip Attalla
NAI Capital Inc. Richard Horn
new city advisors llc Lili Wang
Nossaman  LLP Elinor Eizdi
Nossaman  LLP Caroline Kim
Nossaman  LLP Karla MacCary
Opus Bank Robert Opeka
P3 Consulting Eric Iravani
Parkcrest Construction Andrea Sehremelis
Ploutus Advisors Adnan Tapia
SCI Energy Gregory Simon
Signal Hill Petroleum Inc. Ashley Schaffer
Spectrum Group Real Estate John Booty
Trader Boys Office Furniture Stephanie Allington
Trader Boys Office Furniture Brian Clinch
Trader Boys Office Furniture Cameron Rayner
TransAmerican Escrow Greg Hansen
Transwestern Michael Smith
U.S. Bank Paul Lewis
University of Arizona Austin Metzger
University of California Los Angeles David Boethin
University of Southern California Bruce Bearer
University of Southern California Michael Breiman
University of Southern California Jared Brenner-Goldstein
University of Southern California Willis Chin
University of Southern California Matthew Driscoll
University of Southern California Aaron Goldstein
University of Southern California Colin Hooper
University of Southern California Junhyung Ihm
University of Southern California Josef Jonathan
University of Southern California Adam Lang
University of Southern California Riley Lewis
University of Southern California Chadwick Manista
University of Southern California Catherine Michalek
University of Southern California Vyacheslav Mikhalevich
University of Southern California Donggoo Min
University of Southern California Minjoo Na
University of Southern California Terrence Pallend
University of Southern California Justin Perocco
University of Southern California John Pinnell
University of Southern California Catherine Randall
University of Southern California Alison Teitel
University of Southern California Alvin Zhu
ValueRock Realty Partners Jonathan Prystasz
Voit Real Estate Services Nick Velasquez

A Message from NAIOP SoCal President Jim Proehl

Proehl Jim HeadshotEach day I’m reminded of the growing impact of our chapter, an impact that resonates positively across so many aspects of the commercial real estate industry. Here are a number of recent examples.

We have an outstanding collection of firms that have chosen to support the chapter and its work as a Corporate Sponsor. There are almost 90 companies on that list, many choosing to increase their commitment level. It’s gratifying to see how these firms have made NAIOP SoCal an important investment in their company’s business development efforts. Thank you. There is little we can accomplish without your support each year.

Our partnership with the Center for Real Estate at UC Irvine’s Paul Merage School of Business continues to evolve. I recently helped put together the January CRE Breakfast panel “Transforming How We Live, Work and Play: Improving our Cities through Creative Redevelopment.” Our speakers – Larry Lukanish Vice President, Investments, SARES•REGIS Group; Steve Schafenacker, Senior Vice President, Shea Properties; and Tom Wulf, Senior Vice President, Lowe Enterprises Real Estate Group – shared projects in the works and gave us all a good idea of where the market is headed for 2014 and beyond.

I would also like to thank and recognize the hard work of our programs committee in putting together the chapter’s Kick Off event at Edwards Big Newport Theatre. What a dynamic setting for our “Five Star” panel: Moderator Lewis Horne, Executive Managing Dir. So. CA Region, CBRE, and Panelists: Brandon Birtcher, Chief Executive Officer, Goodman Birtcher North America; Steve Briggs, Principal, LBA Realty; Steven Case, Executive Vice President, Irvine Company Office Properties; and John Hagestad, Managing Director & Principal, SARES•REGIS Group.  We had a sellout crowd to hear icons of the real estate industry share their vision for the future, once again proving the value of our events to the industry.

Our legislative impact and focus continues to be demonstrated at the local, state and national level. It was an honor to travel to Washington D.C. with some of our members to discuss relevant industry and business issues with our elected officials. There’s no better way to feel the power of our organization than when sharing the jobs and economic impact of the real estate industry with our national government leaders. Our legislative efforts continue to protect and support the commercial real estate industry as we create more and more jobs every year.

If you or your organization is not familiar with YPG – I encourage you to get to know this group. NAIOP SoCal’s Young Professionals Group (YPG) is a proactive, committed and growing group of young leaders who prove that our industry has a very bright future. With the current graduating class, YPG’s alumni now numbers more than 300. Congratulations to all who have taken this important career step to become part of the new leaders in Southern California commercial real estate.

To connect our emerging professionals with the senior leaders in commercial real estate, NAIOP enters the third year of its mentoring program, matching 25 emerging leaders with senior real estate professionals throughout Southern California.   The mentoring program allows our leadership the opportunity to give back to the young real estate professionals by sharing their successes and failures and offering invaluable career advice.

Finally, I encourage you to make plans to be at the Hotel Irvine on May 15, 2014 for our annual Night at the Fights event. As the largest commercial real estate networking effort in Southern California, the event is fun, great for business development and an important fundraiser for our chapter and the charities we support. I look forward to seeing you there.

 

– Jim Proehl, President

A Successful Retreat in Washington, D.C.

NAIOP SoCal representatives to the annual leadership meeting in Washington D.C. in early February experienced worthwhile educational sessions and a successful morning on Capitol Hill, visiting with ten members of Congress and or their staff.  Joining Chapter President Jim Proehl were Board Members Tom Wulf, Jeff Moore, Kevin Ivey, Kevin Jennings and Brian Baker.  Stephane Wandel was present in his capacity as a NAIOP Corporate Board Member.  Executive Director Cynthia Fusco, Director of Marketing & Events Melissa Zehner and Assistant Director of Legislative Affairs Peter Herzog also attended.  Local and regional issues as well national topics of interest to commercial real estate and NAIOP members were discussed, including the following:

  • Federal Clean Air standards and SCAQMD are killing economic growth.
  • Need for reduced spending and the national deficit.
  • California’s infrastructure, transportation and goods movement, 241 Toll Road extension.
  • The consequences of Split Roll.
  • Tax Reform and Tax Extenders including: carried interest, 1031 exchanges, commercial building energy efficiency tax deduction, internet tax, tenant improvement depreciation schedule return to 15 years vs. 39 years, Terrorism Risk Insurance Act reauthorization, and brownfields remediation cost expensing in current year.
  • National Infrastructure and Transportation Act reauthorization.
  • Environmental and Land Use Issues – stormwater regulations, wetlands, endangered species reform.

You can learn more about each of these issues from our website:

NAIOP Federal Agenda 2014
Regional SoCal Issues 2014

  • Congresswoman Waters

Sherman NAIOP photo

Our Best Client Networking Event: Night at the Fights

Each year NAIOP SoCal brings together almost 1,000 real estate professionals to experience an evening of amazing industry networking, high-powered championship boxing and MMA, and live entertainment.

For 2014, the annual black-tie event will be held on May 15 from 5 pm to 12 midnight at the Hotel Irvine. We’re going nautical with this year’s theme ALL ABOARD!, with our main event featuring cocktails, a delicious gourmet dinner, premium wine and cigar options, along with high-caliber boxing and MMA bouts.  New this year is our Ring Sponsorship which is being underwritten by HFF.  The NAIOP SoCal Round 2 After Party, presented by Auction.com, will follow with “The Yacht Club” and include live music, casino games and specialty entertainment.

All Aboard

yacht club round 2 logo

 

 

 

“Night at the Fights represents the most important fundraiser for our chapter and provides a fantastic way for our sponsors and members to network, build business contacts, and celebrate the real estate industry,” said Kevin MacKenzie, Senior Managing Director, HFF, and Night at the Fights Chairperson. “This year we’ve added a nautical twist. So I hope to see my industry colleagues out in their best sailing attire – and black tie.”

A portion of the proceeds raised through Night at the Fights goes to NAIOP SoCal’s political action committee, as well as raising funds for the Building Block Foundation Fund, a philanthropic organization for the commercial real estate industry that brings together real estate professionals to give back in an organized and meaningful way for the long-term future of Orange County.

A number of high-profile, brand-building sponsorship opportunities are available. General registration opens April 1 at $650 per ticket. For more information on sponsorships or tickets, go to www.naiopsocal.org or contact the chapter office at 714-979-9131.

A YPG Update and Final Thoughts from Zach Niles

ZachNilesHeadshotFinalYPG wrapped up its ninth year by welcoming the Class of 2013-2014 into its ranks at a graduation ceremony held on March 20th at Seasons 52 restaurant. The 34-member YPG class now puts the program’s alumni base to over 300.

The evening’s attendees included NAIOP SoCal board members, industry veterans, program sponsors, YPG instructors and members of YPG’s Alumni Committee, which runs and governs the 12-month professional and leadership development program geared towards educating, developing, connecting and elevating today’s emerging commercial real estate leaders.

DSC_9080

The commencement included a special tribute and thank you to YPG’s founders Tom Sherlock, Al Beaudette, Jim Camp and Sayres Dudley.

Another key moment of the night was the presentation by Russ Parker of the John B. Parker Developing Leader Award. This award, voted on by fellow students, is presented to the student who has best exhibited Leadership, Teamwork, Communication and Growth during their year together. The 2014 recipient was Jake Loughridge.

Parker DL Awd

The Capstone Cup is the award given to the winning YPG team for their final project presentation.  The winning team included Scott Wetzel, JLL; John Norton, LBA Realty; Mathew Howell, PM Realty Group; Mark Hill, Oltmans Construction Co.; Shea Milligan, KPMG, LLP; Cendy Lin, CBRE; and Xavier Colombi, Lincoln Property Company.

Parker DL Awd

Since this ends my term as YPG Chair, I’d like to make some final comments:

First and foremost, congratulations to the Class of 2013-2014 and welcome to the ranks of the YPG alum. As Chair of the program during a year that would bring YPG’s alumni base to over 300 strong, I couldn’t help but look back on the several years I’ve been involved with the program since graduating in 2009. Without question, I recognize the significant impact the program has had on me both personally and professionally. I would be remiss, however, if I didn’t also recognize that the program couldn’t have made such an impact without the commitment of so many that I’ve had the privilege of serving and working alongside over the years.

From our 35-member alumni committee to our chapter board, sponsors, advisors, educators, industry speakers, Cynthia, Becky, Melissa, and YPG’s four founding fathers that conceived YPG back in 2003, there’s a certain reality that YPG would not exist without each and every individual within each of these elements playing a key role.

As the old proverb says, “It takes a village!” And while words can’t accurately express the extent of my gratitude to each of you serving in these roles, please know that I truly appreciate the commitment you’ve made to ensuring that YPG continues to have the same impact on every new YPG’er as the program has had on me.

 

– Zach Niles, 2013-14 YPG Alumni Chair

Legislative Alerts, Updates & Monthly Reports

Having problems with government? Perhaps NAIOP SoCal can help.  Contact Director of Legislative Affairs Vickie Talley.

 

Split Roll Update

There are at least two bills introduced in the State Legislature dealing with property tax and the potential of taxing commercial real estate at a higher or more frequent rate than residential.  Any amendments to Proposition 13 to allow a “Split Roll” where commercial real estate would be taxed differently than residential would have to be approved by the voters of California.  It is unlikely that this will be brought to the voters until next year.  However, it is important that all NAIOP members go on record opposing split roll by going to Californians to Stop Higher Property Taxes and click on “Join the Coalition”!  Thank you!  Your support is important.

 

Los Angeles County Resurrects Congestion Mitigation Fee

Some things never go away!  NAIOP and the Los Angeles business community have been fighting a proposal by LA Metro to impose a congestion mitigation fee since 2008.  It went away for a while, but it is back.  The focus continues to be on charging the fee only on new developments.  Our argument is that it is not only new development that is causing traffic congestion; therefore, there is a lack of nexus to target new construction.  For more information, contact Assistant Director of Legislative Affairs Peter Herzog.

 

450 of Over 2,500 New Bills Introduced Could Impact Commercial Real Estate!

NAIOP’s representative in Sacramento, California Business Properties Association (CBPA), has identified 450 proposed bills that could impact commercial real estate.  NAIOP members will be participating in evaluating these bills, which fall into issues such as ADA, CEQA, Environmental, Green Building, Water, Green House Gas, Landlord Tenant, Land Use, Electric Vehicle Issues, Regulatory Reform, Taxes, and Proposition 13/Property Taxes and Transportation.  For specific information on bills being tracked by NAIOP and CBPA or to review and comment on these bills, please contact Director of Legislative Affairs Vickie Talley.

 

SCAQMD Challenging ITE High Cube Warehouse Trip Numbers

The South Coast Air Quality Management District (SCAQMD) has taken issue with the Institute of Traffic Engineers’ truck trip numbers for high cube warehouses and has decided to conduct its own studies.  The agency recently announced the completion of its collection of trip count data at high cube warehouses and is making the data available to NAIOP and other members of the “Warehouse Working Group Stakeholders.”  NAIOP’s traffic engineer is currently analyzing the information and would appreciate any input from members with expertise in this area.  Contact Assistant Director of Legislative Affairs Peter Herzog for additional information.

 

Interested In Legislative Issues?

Join NAIOP SoCal’s Legislative Affairs committee!

Programs & Events: What’s Coming Up, What You Missed

USC Takes Home The Silver Shovel!

The question of how best to develop the SeaPort Marina Hotel property in Long Beach was the subject of last Fall’s Real Estate Challenge. Located at 2nd and PCH, one of the city’s business intersections and also the subject of much debate, student teams from the UCLA Ziman Center for Real Estate and the USC Lusk Center for Real Estate and Price School of Public Policy went head-to-head with their proposals for the highest and best use of the 11-acre site. USC was victorious with its proposal for “Belmont Yards” which proposed replacing the hotel with new retail, a permanent farmer’s market and a pedestrian bridge from the development to the nearby marina. Kudos to USC for a job well done!

REC 2014 Winners

Plans are already underway for the next USC vs. UCLA Real Estate Challenge, set for November 20, 2014, on the UCLA campus. The committee is now actively exploring possibilities for this year’s Challenge.  This is a great opportunity to have a top-level and thorough analysis done by gifted teams from two of the top real estate graduate programs in the country. If  you’re interested in having your project considered as a Challenge topic, contact Cynthia Fusco at the Chapter office.

 

Showtime 2014 – A Real Estate Blockbuster

In January, our blockbuster panel of industry leaders took center stage at the historic Edwards Cinema in Newport Beach to talk about the state of commercial real estate. They discussed the big picture: where the market is headed this year and what trends we can expect to see, and the local lineup: what deals are getting done and how.

Moderated by Lew Horne, Executive Managing Director of the SoCal Region for CBRE, our speakers were Brandon Birtcher, CEO of Goodman Birtcher, Steve Briggs, Principal with LBA Realty, Steven Case, Executive Vice President of Irvine Company Office Properties, and John Hagestad, Managing Director and Principal at Sares Regis Group.

 

Spring Program – An Insider’s Look at the Wilshire Grand Center

Hailed as the tallest building west of the Mississippi, the 73-story Wilshire Grand Center will be changing the LA skyline in 2017. Join us on April 23rd for the inside story on this new West Coast landmark being developed by Korean Air. Hear from the key players and view the progress of the construction from Elevate Lounge, a 21st-story hotspot with a great view of the project.

We’ll also be taking a limited number of guests on a special hard-hat site tour prior to the program – stay tuned for details.

Ready to register? CLICK HERE!

2013-2014 NAIOP-CRE Fellowship Award Recipient

Kurt StuartNAIOP SoCal and the Center for Real Estate at UC Irvine’s Paul Merage School of Business have named Kurt Stuart as the 2013-14 recipient of the NAIOP SoCal-CRE Fellowship, a combined learning experience and financial award designed to develop and prepare future real estate industry leaders.

Stuart is a director, North American Lending, at GE Real Estate. In this role he sources and originates commercial real estate loans throughout the Southwestern U.S. He began his career in GE’s Financial Management Program in Kansas City, MO in 2005, and has since worked in a number of capacities for the firm.

The $7,500 scholarship award will be used to support Stuart’s studies at UC Irvine’s Merage School. He began the MBA program in September 2013. One of the benefits of the Fellowship is that Stuart will also attend meetings of the NAIOP SoCal Board of Directors where he will have the opportunity to network with a 40-person board comprised of some of the region’s top real estate executives.

“Kurt has already built a strong resume of experience at GE Real Estate. He epitomizes the goal for this program – to select an up-and-coming real estate leader who is looking to build upon their foundation by adding to their educational and professional commercial real estate experience,” said Jim Proehl, NAIOP SoCal President.

The Merage School is ranked among the top 5% of accredited business schools in the U.S.  The Executive MBA program is ranked among the top 25 in the U.S., according to U.S. News & World Report’s 2013 ranking of EMBA programs. The Full-Time MBA program is ranked 9th among public universities and 26th in the U.S overall, according to Financial Times’ 2013 Global MBA ranking report.

“I’m honored to be associated with NAIOP, the premier commercial real estate organization in Southern California. This chapter offers thoughtful programming throughout the year that provides unparalleled opportunities to network and learn from high-quality professionals in all facets of the industry. I’m grateful for the additional opportunities that the Fellowship provides and look forward to utilizing my academic experience at UCI to contribute in a meaningful way that furthers the efforts of the NAIOP organization,” said Stuart, who has been a NAIOP SoCal member since 2007.  He graduated from the NAIOP SoCal YPG program in 2009.

Fran Inman Named to National Freight Advisory Committee

Inman.FranA long-time NAIOP SoCal Board member, Fran Inman, senior vice president for governmental relations and community affairs for Majestic Realty Co. and a member of the California Transportation Commission, has been named to serve on the U.S. Department of Transportation’s National Freight Advisory Committee (NFAC). The 47-member citizens committee was established to advise the U.S. Secretary of Transportation on matters related to freight transportation in the United States.

According to the U.S. Department of Transportation (DOT) website, the NFAC will focus on:

  • Implementation of the freight transportation requirements of the Moving Ahead for Progress in the 21st Century Act;
  • Establishment of the National Freight Network;
  • Development of a National Freight Strategic Plan;
  • Development of strategies to help states implement State Freight Advisory Committees and State Freight Plans;
  • Development of measures of conditions and performance in freight transportation;
  • Development of freight transportation investment, data, and planning tools; and
  • Making legislative recommendations.

“This is a tremendous honor and opportunity for Majestic to work hand-in-hand with the DOT on developing innovative programs and strategies necessary to drive the transportation infrastructure investments industry in the years and decades ahead,” said Inman.  “Our company has been an outspoken advocate for transportation infrastructure funding, and we look forward to the opportunity we’ve been given to be an instrumental voice and leader in these critical important transportation issues for many years to come.”

Giving Back to Kidworks Helps Our Local Communities

One of NAIOP SoCal’s initiatives is to make a positive impact on local communities by giving back. For some time now, our members have been contributing their time, talent and dollars to KidWorks Community Development Corporation, a Santa Ana-based non-profit organization focused on helping at-risk kids, families and communities. This organization is certainly one that is needed. The City of Santa Ana was identified by the Nelson A. Rockefeller Institute as the hardest place to survive in America due to poverty levels, crime, employment opportunities, transportation and health conditions.

KidWorks was founded in 1993 and accelerated in 2002 with the support of the ‘ole Tea House Gang’ (Bob Howard, John Parker, Bob Campbell, and Dan Donahue) to support Ava Steaffens, President & CEO of the organization, and the KidWorks mission.  Today, KidWorks is a successful, life-changing community organization that continues to be supported by the Southern California commercial real estate community’s volunteerism and financial contributions.

NAIOP SoCal has been active on a number of fronts. For the past year, Emily Mandrup, as NAIOP YPG Community Outreach Chair, has been leading YPG Alumni in providing regular bi-weekly after-school tutoring with KidWorks youth.

Kidworks 001

YPG and the NAIOP SoCal Community Service Committee have been providing Kidworks advisory support for the organization’s real estate needs as part of its long-term expansion vision. This real estate advisory group, led by Zachary Niles, JLL and YPG Alumni Chair, includes: Russ Parker, Parker Properties, NAIOP SoCal Community Service Chair; Malcolm Johnson, JP Morgan Chase, former YPG Chair; Brian Baker, Centerline Capital, YPG Alumni Vice Chair; Emily Mandrup, Pacific Industrial, YPG Community Outreach Chair; and David Salisbury, U.S. Bank, YPG Advisor.

“NAIOP SoCal has helped us to break down our growth plans into bite-sized portions, helping us plan for some short-term needs as well as future goals,” says Steaffens. “The team includes architects, contractors and real estate experts who have helped us define our expansion plans more clearly. We are learning how we can make our dreams happen in a practical manner based on financing, entitlements, and property acquisitions. Ultimately, this NAIOP team has helped us strategize on how we can better reach the community and double the amount of people we are currently helping.”

Steaffens added that the NAIOP resources have been invaluable. The organization wouldn’t have been able to afford this level of talent in order to formulate and execute its Strategic Plan.

The KidWorks Strategic Plan entails a need and an opportunity for the physical growth of its main facility at 1902 W. Chestnut Avenue, as well as an option to purchase/lease another facility two blocks away for a sports center. Some of the services NAIOP SoCal is helping with include: charting the course to achieve their Strategic Plan, implementing and managing the process, brokerage, space planning, architecture, development, entitlement and finance. To learn more about KidWorks, visit www.kidworksonline.org

NAIOP SoCal Members Continue to Make Headlines

PCCP, LLC and Mountain Development Corporation Acquire and Reposition 10-Story Office Building

A joint venture of PCCP, LLC and Mountain Development Corp. (MDC) have acquired One Harmon Plaza, a 192,000-square-foot Class A office tower in Secaucus, NJ. One Harmon Plaza is a 42 percent leased, 10‐story office building that features efficient, 22,000-square-foot floor plates with panoramic views, an all‐black glass façade and existing amenities that include structured parking and on‐site banking services.

 

Google Capital Invests in Auction.com

Auction.com is the recipient of a $50 million investment from Google Capital. As part of the deal, one representative from Google Capital will join the Auction.com board of directors, and another will take a board observer position. “Google is the world’s greatest Internet company and we’re thrilled to have the opportunity to work closely with them,” said Jeff Frieden, CEO and co-founder of Auction.com.

 

Prologis Acquires 10-Acre Carson Parcel

Prologis acquired a 10-acre industrial land parcel located at 21038 Wilmington Ave. in Carson from Hunter Woodworks for $14.2 million. “Prologis has been interested for quite some time and we were able to facilitate a deal very quickly, effectively meeting the needs of both parties,” says David Bales, a principal at the Lee & Associates Los Angeles-Long Beach office who represented both the buyer and the seller in the transaction.

 

Mitsubishi Electric Automotive America’s Move Illustrates Continued Demand for OC Industrial

JLL represented Mitsubishi Electric Automotive America in a new 10-year, 167,778-square-foot industrial lease at 5800 Skylab Road in Huntington Beach.  Mitsubishi Electric Automotive will occupy the space for its regional headquarters and United States west coast manufacturing and distribution.  JLL Orange County team members Louis Tomaselli and Mitch Lundquist represented Mitsubishi Electric Automotive America.  The landlord, Morgan Stanley, was represented by CBRE.

 

JLL Team to Market Office Campus in Hollywood

J.H. Snyder Company has started construction on 959 Seward, a two-building creative office campus encompassing approximately 245,000 square feet of space in Hollywood.  Completion is scheduled for the first quarter of 2016. Leading the marketing effort for 959 Seward are JLL Los Angeles team members Patrick Church and Anneke Greco.

 

Stirling Capital Investments Kicks Off 2014 with a Series of Leases and Spec Office Build-Out

Stirling Capital Investments announced a series of leases and spec office build-out activity at the Southern California Logistics Centre (SCLC), a 2,500-acre industrial and commercial complex in Victorville. Solar City Corporation signed a new four-year, 7,359-square-foot lease. Existing tenant Pacific Aviation Group extended and expanded its existing lease to 119,128 square feet of space for six years, and Southern California Aviation renewed its long-term lease of a 55,000-square-foot space for an additional five years.

 

JLL Adds Top Brokerage Talent in Los Angeles

JLL has hired industry veteran Tom Cherry as a broker based in Los Angeles who will focus on corporate solutions, tenant representation and complex land and building sales. Cherry joins JLL as a Managing Director and is joined by Nick Niemann who will serve as associate. The duo will focus on providing leasing services to corporate occupiers of real estate in Los Angeles as well as regionally and nationally.

Join Us In Welcoming the Newest Members of NAIOP SoCal!

NAIOP SoCal would like to welcome 109 new members to the chapter between November 6th and April 7th. We look forward to seeing each of them at our upcoming Spring events. Be sure to say hello when you see them!

Company New Member
Individual Nelson Bran
Individual Nicholas Svendsen
Albert A. Webb & Associates Robert Berndt
Albert A. Webb & Associates Sandy Chandler
Albert A. Webb & Associates Scott Hildebrandt
Allen Matkins Leck Gamble Mallory & Natsis LLP Nisha Verma
The Alison Company Mishal Patel
American Realty Advisors Brian Anderson
American Realty Advisors Ray Kivett
Asset Avenue David Manshoory
Auction.com Robert Anderson
Bank of America Merrill Lynch Colin Bagwell
Bentall Kennedy (U.S.) LP Scott Morse
BFC – SBA Lending Carly Naples
Bixby Land Company Paul Miszkowicz
BlackRock Realty Advisors Inc. Justin Loiacono
Buchanan Street Partners Bradford Farmer
Cantor Fitzgerald Conrad Wicker
The Carson Companies Daniel Darnell
CBRE James Crocenzi
CBRE Keith Greer
CBRE Geoffrey Koopman
CBRE Max McDonald
Chapman University Evanthia Destunis
Citibank James Gibson
Clark Construction Group LLC Kwaku Gyabaah
Coldwell Banker Commercial Alliance Michael Dorsey
Colliers International Reid Wilbraham
Cornerstone Development Sissi Del Valle
CT Realty Investors Chris Coetzee
CT Realty Investors Kenny Liu
Cushman & Wakefield of California Inc. Shawn Lawrence
Cushman & Wakefield of California Inc. Jeff Sanita
Cushman & Wakefield of California Inc. Jason Ward
Donahue Schriber Realty Group Zach Mikelson
DPR Construction Inc. Brandon Risk
Farmers & Merchants Bank Stephanie Traeger
Fidelity Commercial Funding Anthony Yaghjian
Fidelity National Title Ryan Bailey
Fidelity National Title Brian Lewis
Fulcrum Resources Environmental Don Kellar
George Smith Partners Inc. Ryan Parker
The Goetzman Group Ian Vishnevsky
Goodman Birtcher Graham Wahlberg
Gordon Kemper LLP Marcia Gordon
Grandbridge Real Estate Capital Kelly Chou
Greenburg Traurig Dana Treister
Hager Pacific Properties Corri Nicol
Hall & Foreman Inc. Matthew Kunkle
HBI Incorporated Andy Last
HFF Nicholas Foster
HFF Jeff Sause
Hines Andrew Huffman
Irvine Company Office Properties Laura Drachman
JMG Security Systems Inc. Blake Bender
JLL Jeffrey Ingham
Keystone Mortgage Corporation John Sullivan
KOTRA Sungjin Park
Langan Engineering & Environmental Services Keith Gilbert
Law Office of Joseph W. Haney III Joseph Haney
LBA Realty Bradley Johnson
LBA Realty Kavita Mistry
Lincoln Property Company Kevin Hayes
Lockton Insurance Brokers LLC John Tomlinson
Lone Oak Fund LLC Alexa Mizrahi
Marvin F. Poer and Company Nick Muros
McCarthy Building Companies Inc. Michael Benford
McCarthy Cook Todd Macklin
MetLife Real Estate Investors Ted Morefield
Miller Starr Regalia Paul Mosley
Millie and Severson Incorporated Brian Andrew
Millie and Severson Incorporated Nick Shaffer
Mission Capital Advisors Chad Coluccio
NAI Capital Inc. Rachel Howitt
PdM Consulting Inc. Pieter de Monchy
Piedmont Office Realty Trust Dan Cote
PM Realty Group Shane Flanigan
PNC Bank Jason Lamport
RGA Environmental David Silveri
Rialto Capital McCay Major
Rutan & Tucker LLP Vijay Pai
Sentinel Development Erica Hansen
The Sliding Door Company Sheryl Hai-Ami
Snyder Langston Pamela Santos
Studley Inc. Paul Jones
Studley Inc. Bradley Schmitt
Summit Development Corporation Donna Shin
Ticor Title National Commercial Julie Holmes
Ticor Title National Commercial Doug Murphy
TMC Financing Briana Carter
TMC Financing Ron Coomes
Trammell Crow Company Neal Holdridge
Transwestern Dan Patterson
U.S. Bank Ken Ebilane
U.S. Bank Alan Fox
U.S. Bank Calvin Neiswanger
U.S. Bank Tony Park
University of Southern California Zhi Li
University of Southern California Jason Matthews
Vantage Property Investors Brent Ozenbaugh
Voit Real Estate Services Greg Battersby
Voit Real Estate Services Brian Beaudette
Voit Real Estate Services Jason DiRocco
Voit Real Estate Services Eric Smith
Ware Malcomb Jonathan Thomas
Warmington Properties Inc. David Clark
Warmington Properties Inc. Michael Vaughan
Wells Fargo Real Estate Group Jack Boyl
Wheaton College Maurice Paur

President’s Message

presidentAs we wrap up 2013, NAIOP SoCal continues to work hard to deliver great value to its members.

In October, the chapter held its 4th annual Leadership Symposium, a roundtable discussion for senior leaders of our chapter’s Platinum Sponsors.  This year’s event was moderated by Christian Redfearn, Associate Professor at the USC Price School of Public Policy and Director of the Masters in the Real Estate Development Program.  The roundtable also included Rex Hime, President of the California Business Properties Association, NAIOP SoCal’s industry representative in Sacramento, and Tom Bisacquino, President of NAIOP Corporate.  The attendees engaged in an open roundtable discussion on many of the issues that are affecting our industry today.

Immediately following the Leadership Symposium, the NAIOP Programs Committee put together a fabulous panel for the organization’s Fall Forum.  Moderated by Pat Jackson with Sabal Financial Group, the panel of  Chip Fedalen from Wells Fargo Real Estate Banking Group, Bo Mills with Jones Lang LaSalle, Len O’Donnell from USAA Real Estate Company and Scott San Filippo with Greenlaw Partners, discussed a wide range of topics relating to the current state of capital markets.

The year of events will conclude on November 21, 2013, with the annual Real Estate Challenge pitting student teams from USC and UCLA against each other as each team presents a development plan for this year’s project. The 2013 challenge site is a unique redevelopment opportunity in the City of Long Beach. The site today is the SeaPort Marina Hotel which has a wonderful history, but now represents a greater opportunity as a potential gateway development for the City. I look forward to hearing what the students will propose and invite you to join me in cheering them on.

After having the privilege of working with so many of you as President this past year,  I’d like to thank all our sponsors, board members and NAIOP members for their on-going involvement and support of this chapter.  Without all of you and your commitment to NAIOP SoCal, the Chapter would not be able to provide the networking and educational opportunities that are so important to the growth of our members, nor would it be able to positively impact the legislative agenda both locally and in Sacramento.

Thank you for the opportunity to serve as your President this past year.  It has been a privilege and experience that I will always remember.   You can rest assured that the experienced and energetic leadership of NAIOP SoCal is already preparing for an active and successful 2014.

Best wishes to all,

Lang Cottrell

UCLA vs USC Real Estate Challenge on November 21st

Join NAIOP SoCal for the most unique real estate competition in Southern California. Once a year, top graduate student teams from the Ziman Center for Real Estate at UCLA’s Anderson School of Business and the Lusk Center at USC’s Marshall School of Business and Price School of Public Policy meet to match creativity and real estate knowledge on a unique real estate site.

The 2013 subject site is an 11-acre location at the corner of Pacific Coast Highway and Second Street that has the potential to be one of the greatest development opportunities in the City of Long Beach. This trophy site is the current location of the SeaPort Marina Hotel. Our student teams will develop the best land use, density, and building mass for the site as well as determine how the site can serve as a vital entry statement for the City of Long Beach.

Our judging panel of industry leaders will review the student presentations and make their decision on the winning proposal and ultimately the winner of the Silver Shovel.

This year, the challenge welcomes back Event Emcee James “Watty” Watson, CEO and President, CT Realty Investors. Plus we’ll share some of the history of the challenge! If you’ve witnessed the evolution of this event, then you know our sites have included some amazing Southern California real estate locations with exciting and unique student ideas and outcomes.

Be there on November 21 to cheer on the students and schools.

NAIOP SoCal’s Annual Fall Forum

fall_forumOn Thursday October 17, 2013, NAIOP SoCal held its annual Fall Forum at the Balboa Bay Club. More than 200 industry professionals were in attendance to listen in as our power panel shared their thoughts on what is driving investment today.

The panel featured moderator Pat Jackson, CEO & Founder, Sabal Financial Group along with panelists: Charles “Chip” Fedalen, Jr., Executive Vice President & Group Head, Real Estate Banking Group, Wells Fargo & Company; Bo Mills, Managing Director, Head of Industrial Capital Markets – Western US, Jones Lang LaSalle; Len O’Donnell, President & CEO, USAA Real Estate Company; and Scott San Filippo, Partner/Acquisitions, Greenlaw Partners.

The commentary was broad-based, covering how each company is managing risk and where they think cap rates are headed. During the introductions, USAA’s O’Donnell shared that the company is planning to be a net seller. He stated that the world is awash in capital, with investors -all seeking the same thing – core properties in the best locations in gateway cities. For this reason their strategy is to look to more development.

Wells Fargo’s Fedalen said that there isn’t a lot of real estate lending going on outside of the US, adding that we are now in the accelerated phase of the cycle. They see tremendous activity on the brokerage side, an activity level that is similar to 2005 to 2006, in that it is not yet peak but close. He also noted that a good third of their business is construction, which is encouraging.

When asked about their appetite for transitional assets, the panelists agreed that it’s a heavy execution bet if you’re considering a transitional asset in a less then desirable area, acquired for below replacement cost. USAA shared that they manage their risk by really looking at the fundamentals. The question they will ask before they buy any asset is, who will lease this property and why.

When commenting on the current cycle there was overall agreement that there is a very fundamental change today. Twenty years ago, there was more private, entrepreneurial equity in the game. Today it is very rare not to have institutional equity in one form or another in a transaction, which provides a different discipline, noting that all of us behave differently when you have limited or no skin in the game.

Community Outreach Working Wardrobes

Operation Interdependence 003

Legislative Update

Need for Balancing Economic and Environmental Issues

Logistics facilities and warehousing are a key part of the goods movement sector which makes up a large portion of the Southern California economy, and is vital to moving goods to the rest of the country.  The Southern California Association of Governments (SCAG) has indicated that in the next 20 to25 years, there will be demand for an additional 400 million square feet of warehousing to meet the needs of the region and nation.  NAIOP is committed to meeting this challenge and improving the economy of this region, particularly for the middle class who are thus far being left out of the current economic “recovery.”  The types of jobs the logistics industry brings are vital if we are to have a balanced recovery for all people in the region.  Moreover, the daily and luxury goods needed by residents and businesses are all transported on a local, regional, national and international level by the logistics industry.

There is no doubt we are all interested in improving our environment, and NAIOP members are at the forefront of building and operating facilities that incorporate and expand upon state-of-the-art green/environmentally sensitive technologies and design.  Yet, the South Coast Air Quality Management District (SCAQMD) has been using CEQA to take a far more aggressive approach regarding new proposed warehouse development and goods movement facilities, which is making it very difficult to build the needed infrastructure.  Since 2010, the SCAQMD has sent out 51 CEQA comment letters on 33 projects, and testified on 9 of those projects. Additionally, SCAQMD recently filed a CEQA lawsuit opposing the $500 million privately funded Southern California International Gateway (SCIG) project near the Ports. This project would be the greenest intermodal facility in the United States by including more than $100 million in green technologies, clean trucks and funding for zero emissions research, and many other amenities. This project demonstrates that it’s possible to achieve air quality and health risk improvements and keep the international trade industry in Southern California moving forward.

The primary argument being raised by the SCAQMD is NOT that the facilities themselves harm the environment, but that there will be trucks coming to the facilities. Essentially, it is arguing that the facility attracts trucks/pollution, so it is up to the facility to mitigate all the claimed pollution effects of the trucks.  A few examples of the suggested mitigation measures include retrofitting nearby residences with new windows and air filters, and far greater setbacks.  Another major issue is how far from the project must the mitigation be effective: half -a mile, a mile, or more?

NAIOP is working very hard with a wide variety of business interests in Southern California to try to ensure that the SCAQMD fully appreciates the necessity of achieving a proper balance between environmental protection and serving the economic and other needs of the region’s 17 million plus people.  Your input and assistance is important to making this a successful effort.  Please contact Peter Herzog at 949.380.3300 or peter@talleyassoc.com.

YPG Update

Our current YPGers are now more than halfway through their program year and are just days away from receiving their final team project assignments.  Stay tuned for more details as they get their projects underway.

A LITTLE Time Brings BIG Smiles

Big for a Day 9-21-13

On September 21st, 22 volunteers from NAIOP SoCal, including board members and YPG alumni, came together to support Big Brothers Big Sisters Orange County by hosting Big for a Day at Boomers in Irvine. Our volunteers spent the day with 25 kids who are on the waiting list to be matched with a “Big” through the program.

“This year’s event was a blast! Bigs and Littles enjoyed a fun morning of unlimited mini golf, go-cart racing, laser tag and bumper boats – just to name a few. There are more than 200 children on the Big Brothers Big Sisters waiting list, and thousands in the community, wishing for the positive influence of a Big Brother or Big Sister.”

–          Emily Mandrup (YPG Community Outreach Chair, YPG ’06)

This was the third annual Big for a Day and, needless to say, the event was a fun, memorable experience for all! If you’d like to learn more about how you can support Big Brothers Big Sisters Orange County, CLICK HERE.

 

Be Part of YPG: The Next Class is Almost Here

It’s that time again: we will soon be accepting applications for the 2014-2015 YPG class. The tenth year of our twelve-month, seventy-hour YPG program will be kicking off next April with a mandatory retreat, followed by monthly classroom sessions along with ongoing reading, group projects and application of skills and ideas learned during the coaching sessions.

35 candidates under the age of 35 will be selected to be part of our industry-leading professional development and leadership program designed to educate, develop, connect and elevate the commercial real estate industry’s emerging leaders. The program offers instruction in critical components of the real estate industry, personal and professional development coaching from MBA-level instructors, extensive networking and relationship-building activities, and guidance from leading industry executives through an intimate speaker series exclusive to YPG.

Think you have what it takes to complete the YPG program and join our nearly 300 successful alumni? The application period opens in mid-November – watch your email for details!

Membership and Sponsor Campaigns for 2014 Underway

Know someone who would benefit from being a member of NAIOP SoCal?  Anyone joining now will have their membership effective through the end of next year – that’s 14 months for the price of 12!  Those interested can check out the details at www.naiopsocal.org or contact the Chapter office for a full information packet.  Spread the word to your colleagues to join today!

btn-learnmore

 

 

The 2014 Sponsorship Campaign is also now underway.  Renewal information has been sent to our current Corporate Sponsors, and the early-payment incentive is in effect once again – those who sign up or renew by December 31, 2013 and remit payment by January 31, 2014 will receive a 5% discount off the sponsor level.  Being a Corporate Sponsor of NAIOP SoCal adds value to your career, your business and the industry as a whole.  There is no better return on your investment – be a part of it! 

btn-learnmore

NAIOP SoCal Welcomes New Members

NAIOP SoCal would like to welcome 26 new members to the chapter between September 4th and October 5th. We look forward to seeing each of them at our upcoming events!

 

Company New Member
Bank of America Merrill Lynch Neshan Charshafjian
BRC Advisors Sandra Park
CBRE Maurice Nieman
CBRE Ian Schroeder
Champion Real Estate Companies Greg Beck
CIP Real Estate Cecilia Pined
City National Bank Richard Garvin
ConAm Inc Ryan Hill
First American Title Insurance Company Matt Daniels
Greenburg Traurig Bruce Fischer
HBI Incorporated Gordon Winn
HFF L.P. Ryan Martin
Howard Building Corporation Allison Mocilnikar
Johnson Capital Cliff Carnes
KPRS Construction Services Angel Barrera
MIG Real Estate LLC Daniel Prendiville
Nebo Capital Nathan Whigham
NorthMarq Capital Inc. Mark Dodson
Old Republic Title Company Ragnar Lifthrasir
Plaza Bank Sam Overton
Sabal Financial Group LP Benjamin Elsen
Starwood CPG Operations L.L.C. Brett Anderson
Transwestern Mary Yee
University of Arizona Daniel Kramer
University of Washington Anastacio Martinez
Wind Water Realty Advisers Travis Forster

Members In The News

Jones Lang LaSalle Completes 16,898 SF Office Lease with Perkins+Will

Jones Lang LaSalle represented Perkins+Will in a lease renewal for 16,898 square feet of office space on the top floor at 617 W. 7th St., a 12-story high-rise building in Downtown Los Angeles. Perkins+Will currently occupies the space for its Los Angeles regional office. Jones Lang LaSalle team members Darren Eades, Maureen Hawley and Tony Morales represented Perkins+Will in the transaction. The landlord, The Swig Company, was represented by CBRE.

Jones Lang LaSalle Adds Top Brokerage Talent in Los Angeles’ Tri-Cities

Jones Lang LaSalle has hired industry veterans Patrick Church and Anneke Greco as agency leasing brokers focused on the Tri-Cities submarket. Church joins JLL as a Managing Director and Greco joins as a Vice President. The duo will focus on leasing services to institutional landlords and property owners in Burbank, Glendale and Pasadena with plans to broaden geographic coverage as needed by clients.

Stirling Capital Investments Partners with Charter Business Communications
Stirling Capital Investments has entered into a partnership with Charter Business Communications to bring optical fiber services to Global Access in Victorville. The optical fiber solutions will be employed at the Southern California Logistics Centre (SCLC), a 2,500-acre industrial and commercial complex at the former George Air Force Base. The only business park in the city to offer Charter optical fiber, Southern California Logistics Centre will provide optimized Internet connectivity and data networking capabilities for its valued corporate tenants.

PCCP Provides $11 Million Senior Loan to Finance the Construction of 393,188 SF Mixed-Use Tower

PCCP, LLC has provided a $118 million senior loan to TMT Development to finance the construction of Park Avenue West, a 393,188 square foot mixed-use tower in the heart of Portland’s central business district. Financing was arranged by HFF, working on behalf of TMT Development. The new 30-story mixed-use tower will feature 15 floors of apartment units, 13 floors of Class A premier office space and two floors dedicated to retail, for a total building height of 460 feet. The building will also include a six-level underground parking garage, adding 260 parking spaces to downtown.

Snyder Langston Expands Healthcare Division Naming Lee Watkins as Vice President

Snyder Langston is proud to announce the expansion of its healthcare division, naming Lee Watkins as Vice President. Mr. Watkins will focus on growth in the health systems sector of Snyder Langston’s work.

Lee Watkins brings 13 years of construction experience to his role with Snyder Langston, with the past seven years dedicated exclusively to healthcare construction. He brings a track record for successful project deliveries and solid client relationships to the firm along with an in-depth knowledge of systems and overcoming the challenges commonly encountered in healthcare construction.