Introduction to Douglas Elliman’s Portfolio Escrow Claws Back in Court
Here we go again. When William Grasska, the founder of Douglas Elliman’s Portfolio Escrow and his former firm last year settled their dueling lawsuits against one another, it was all quiet in California — up until this past week. Last year’s lawsuits brought out the mudslinging, dragging the Altman Brothers Team into Grasska’s complaint (the agents were not defendants), while Portfolio raised the idea that its founder had been involved in a kickback scheme with an unidentified reality TV star later reported to be the Oppenheim Group’s Jason Oppenheim (also not a defendant).
Ongoing Legal Drama
Similar allegations involving the high-profile dealmakers reared their heads once again in a pair of lawsuits, one filed Monday and the other on Friday, as the legal drama marches on.
On CEQA
With the passage of the latest exemptions to the California Environmental Quality Act, it’s now a guessing game to see which developers and markets stand to benefit the most. Many are looking at the coastal areas where development typically sees plenty of challenges as a possible recipient of a ramp in projects. Time will tell. As Affirmed Housing President Jimmy Silverwood tells it, the latest CEQA changes are “exciting,” but developers have spent years trying to figure out how to make projects work. Affordable housing developers like Affirmed have many tools in the toolbox to bolster their projects with certainty that they can be pushed through the approval process without headwinds that add time and money onto a project.
Malibu Movement
Malibu’s resi market seems to have been on vacation of late. Dealmaking is off from what the coastal city saw last summer in blockbuster deals that included what is now the state’s priciest ever listing with the reported $210 million sale of a Malibu estate sold by Oakley founder Jim Jannard. Still, this week’s $49.8 million trade of 29130 Cliffside Drive is certainly nothing to sneeze at and is one of the larger closings in L.A. County of late in what’s become a relatively quiet period for eyebrow-raising deals, particularly in Malibu.
Pelican Crest Rising
Newport Coast’s high end continues to chug along. Fresh off Orange County’s priciest deal this year in May with the $42 million closing of 1 Pelican Crest Drive in Newport Coast, another big listing has hit the market in 22 Pelican Crest Drive. The property, which the listing describes as a “pie-shaped” lot, is asking nearly $30 million. The more recent market movement in Newport Coast’s ritzy Pelican Crest neighborhood, which sits close to the Pelican Hills Golf Club and Resort at Pelican Hill, appears to be aided in part by dental executive Amir Neshat’s reworking of his OC real estate portfolio.
Another Score for Condo Conversions
Miami developer Crescent Heights would like to turn its Century City high-rise into condominiums. There are two takeaways here. One is the continued buzz around Century City. It’s been characterized as the new downtown, even within the pages of The Real Deal’s most recent monthly magazine, as law firms and other office tenants flock to ink leases there. The other point is that the 40-story tower, called Ten Thousand, could be viewed as another notch in the belt of L.A.’s condo market, suggesting that sales talk around high-rise living isn’t just empty marketing speak.
Shopoff Nabs Win, While Irvine Co. Hits Snag
Expect to see more housing go up in Fountain Valley. Shopoff Realty scored a win in the Orange County city, where it’s now armed with the approvals to build residential on some 18 acres that will be developed into Euclid + Heil. Lennar and National CORE are partners on the project, located at 16300 Euclid Street. When completed, Fountain Valley will see 304 market-rate apartments and 83 affordable units, in addition to triplexes and townhomes.
Conclusion
The ongoing legal drama surrounding Douglas Elliman’s Portfolio Escrow and the latest developments in the California real estate market, including the potential benefits and drawbacks of the latest CEQA exemptions, signify a complex and evolving landscape. As the market continues to shift, with notable deals and projects in Malibu, Newport Coast, and Century City, it’s essential to stay informed about the trends and legal implications that could impact the future of real estate in California.
FAQs
- What is the current status of the legal disputes involving Douglas Elliman’s Portfolio Escrow? The disputes are ongoing, with new lawsuits filed, reigniting the legal drama.
- How might the latest CEQA exemptions affect California developers? The exemptions could benefit developers by reducing barriers to projects, especially in coastal areas, but the full impact is still being assessed.
- What significant real estate deals have recently occurred in Malibu and Newport Coast? Malibu saw a $49.8 million trade, and Newport Coast had a $42 million closing, with another big listing asking nearly $30 million.
- What is the significance of Crescent Heights’ plan to convert its Century City high-rise into condominiums? This move indicates continued interest in high-rise living and could be a significant notch in the belt of L.A.’s condo market.
- What are the implications of Shopoff Realty’s win in Fountain Valley and the Irvine Co.’s potential snag with the Oak Creek Golf Club project? These developments suggest a mixed bag for housing projects in Orange County, with some moving forward and others facing potential hurdles.
