Nathan Hochman’s Victory Signals Shift in California Politics
Nathan Hochman’s campaign had been in celebration mode all day. The former federal prosecutor was about to unseat Los Angeles County District Attorney George Gascón, and anyone invested in real estate in the county was popping the champagne.
Gerald Marcil, Hochman’s biggest donor, and the founder and CEO of multifamily firm Palos Verdes Investments, preferred beer. He was at a South Bay sports bar with friends, where he always watches the results come in.
This New D.A. in Town
The D.A. race was a decisive battle for Marcil, but he appeared cool and collected five days before the general election.
“Jerry,” as the bar owner calls him, has been in the housing business for half a century. He has about 7,000 housing units in his company’s portfolio and is always on the lookout for his next value-add investment, like the one he snapped up earlier this year in Orange County.
Yet, he’s afraid California is on the wrong track.
“No neighborhood is safe anymore,” he said. “My tenants are not living in bad areas, but they’ve become bad.”
Justice on the Ballot
In the wake of George Floyd’s death, Gascón campaigned on a progressive platform aimed at criminal justice reform and won in 2020. Voters, however, appear to grow weary of the experiment amid increased public perception of crime in the county.
An attempt to recall Gascón in 2022 failed. Marcil contributed $1.3 million to the effort, according to the Times.
Proponents of Gascón have long pointed to crime statistics, which appear to be on the decline this year: The L.A. County Sheriff’s Department reported violent crimes up less than 1 percent in the first nine months of 2024 compared to the year-ago period. But property crimes for the same nine-month period rose 2.3 percent.
“What’s more, Marcil made sure Hochman’s campaign was top on the agenda of New Majority, an influential group of about 300 fiscally conservative, business leaders founded in Orange County in 1999. Its political director, Tom Ross, describes the founders as a group of philanthropists frustrated with politics who decided to get involved.
What Doesn’t Kill You
To Marcil, Hochman’s victory was an obvious harbinger of the shifting national mood.
California Gov. Gavin Newsom wasted no time in the following days calling for a special legislative session to “Trump-proof” the state ahead of President Donald Trump’s return to the White House in January.
Marcil found the governor’s antics perturbing. He said he cast his ballot for Trump this year, although he doesn’t broadcast that widely in California. And New Majority, for its part, typically stays out of presidential races.
“I voted for policy over personality,” Marcil said. “It was an easy choice.”
Not a Gold Rush
Palos Verdes’ recent multifamily buy in Anaheim notably isn’t in L.A. but rather Orange County, which has been resilient, with 4 percent vacancy rates.
The purchase also does not seem to have been a vote of confidence in the state.
“It’s very, very difficult to make a housing business work in California,” Marcil said. “Investors are leaving the state.”
Conclusion
Nathan Hochman’s victory signals a shift in California politics, with voters opting for a more conservative approach to public safety. Gerald Marcil, a major donor to Hochman’s campaign, believes that the state’s policies are misguided and that investors are leaving the state.
FAQs
Q: What was the outcome of the Los Angeles County District Attorney election?
A: Nathan Hochman won the election, defeating incumbent George Gascón.
Q: Who is Gerald Marcil and what is his background?
A: Gerald Marcil is the founder and CEO of multifamily firm Palos Verdes Investments. He has been in the housing business for half a century and has a background in philanthropy.
Q: What are Marcil’s views on rent control and California’s housing crisis?
A: Marcil views rent control as a cosmetic fix that does nothing to address the root causes of California’s housing crisis. He believes that the government is “massively stupid” and that its policies are driving away investors and developers.
Q: What does Marcil think about the outcome of the election?
A: Marcil sees Hochman’s victory as a sign of the shifting national mood and a rejection of progressive policies. He believes that the election results will lead to a more conservative approach to public safety in California.
