Introduction to LA’s Challenges

LA is not okay, according to developer Rick Caruso, who recently expressed his concerns about the city’s current state. “People are losing hope in their own city and that should concern all of us,” he stated. “It’s time to fix this. It’s time to turn LA around.” These comments were made just a few days after Caruso was a guest speaker at a weekly Pacific Palisades community Zoom meeting, where he also criticized some of the city’s operational efficiencies with respect to rebuilding in areas destroyed by January’s wildfires.

Concerns Cast on LA County Housing Head’s Resume

When Ryan Johnson’s contract as interim CEO of the Los Angeles County Affordable Housing Solutions Agency expires in the fall, he won’t throw his hat in the ring for the permanent position. Instead, Johnson will bow out on the one-year gig as questions swirl around some of the executive’s resume claims, according to a report from the Los Angeles Times. The newspaper reported Johnson’s decision to not pursue the permanent CEO title is because he needs a schedule that affords him time to help take care of a sick family member. The report then went on to raise questions around what Johnson reported in his resume, alleging he inflated certain accomplishments.

Washington Prime to Say “Bye” to Westminster Mall

Washington Prime’s stake in the Westminster Mall is on the market as one of several properties the retail investor is looking to unload. A sale of the Westminster Mall could be just the move needed to push the mixed-use redevelopment vision for the tired property forward. A sale seemed imminent when Morningstar Credit Analytics reported as much last September after an $85 million loan tied to the property went to special servicing earlier that year. Washington Prime then received a six-month extension aimed at working out a sale. Shopoff Realty Investments is already part owner in a portion of the property, after shelling out nearly $50 million to buy the former Sears site, along with the Macy’s building and neighboring parking lot.

Wedbush Center in Downtown Heads to Special Servicing

The owner of one of downtown Los Angeles’ more prominent towers missed out on a deadline to pay off a loan tied to the building in what marks the latest sign of the submarket’s office struggles. Cerberus Capital Management failed to pay the $128 million commercial mortgage-backed security loan from Goldman Sachs, sending the Wedbush Center at 1000 Wilshire Boulevard into special servicing. Occupancy of the office building is 75 percent and it’ll fall even more when Wedbush Securities, the tower’s namesake, leaves for a new Pasadena address after its downtown lease ends in December.

Resi Comings and Goings

This week served up a few big moves in what’s already proven to be a splashy year for agent acquisitions across LA’s residential brokerages. Paul Salazar left Hilton & Hyland after 16 years at the brokerage. He took his four-person team to Compass’ Beverly Hills office, after a few months weighing his options across several brokerages. The team includes agents Kyle Amicucci, Christian Hose and Kate Caffrey, along with director of operations Isabella Franciscovich. News on Salazar was followed by Carolwood Estates’ confirmation that Shana Tavangarian and Emila Tavangarian — daughters to speculative developer Ardie Tavangarian — were joining the Beverly Hills brokerage, along with their marketing and operations manager Harriet Laveau.

Conclusion

In conclusion, LA is facing numerous challenges, from operational inefficiencies to office struggles and concerns over resume claims. Developer Rick Caruso has called for a turnaround of the city, and his comments have sparked chatter about his potential political ambitions. Meanwhile, the city’s real estate market is seeing significant movements, including the potential sale of the Westminster Mall and changes in the residential brokerage landscape.

FAQs

• Q: What is the current state of LA, according to Rick Caruso?
  A: LA is not okay, with people losing hope in their own city.
• Q: Why won’t Ryan Johnson pursue the permanent CEO title of the Los Angeles County Affordable Housing Solutions Agency?
  A: Johnson needs a schedule that affords him time to help take care of a sick family member, and there are also questions about his resume claims.
• Q: What is happening to the Westminster Mall?
  A: Washington Prime’s stake in the Westminster Mall is on the market, which could push forward the mixed-use redevelopment vision for the property.
• Q: What is the occupancy rate of the Wedbush Center at 1000 Wilshire Boulevard?
  A: The occupancy rate is 75 percent, which will fall further when Wedbush Securities leaves for a new Pasadena address.
• Q: What significant moves occurred in LA’s residential brokerages?
  A: Paul Salazar left Hilton & Hyland for Compass, and Shana Tavangarian and Emila Tavangarian joined Carolwood Estates, bringing a $177 million listing with them.