{"id":24777,"date":"2025-11-22T16:49:45","date_gmt":"2025-11-23T00:49:45","guid":{"rendered":"https:\/\/citystuff.com\/los-angeles\/rexford-co-ceos-out-after-elliott-stake\/"},"modified":"2025-11-22T16:49:46","modified_gmt":"2025-11-23T00:49:46","slug":"rexford-co-ceos-out-after-elliott-stake","status":"publish","type":"post","link":"https:\/\/citystuff.com\/los-angeles\/rexford-co-ceos-out-after-elliott-stake\/","title":{"rendered":"Rexford Co-CEOs Out After Elliott Stake"},"content":{"rendered":"

Introduction to Rexford Co-CEOs Out After Elliott Stake<\/h2>\n

The Rexford takeover rumors seem to have traction. The industrial real estate investment trust indicated as much a couple days ago, after market close, when it announced a chief executive shakeup and a changed capital allocation strategy. <\/p>\n

The dual announcements came months after a report that Paul Singer\u2019s Elliott Investment Management built an active stake in the company. Rexford more recently took the opportunity of an earnings call, to disclose that it had met with the relentless activist investor.<\/p>\n

Executive Changes at Rexford<\/h2>\n

Rexford chief operating officer Laura Clark is now in line to succeed co-CEOs and co-founders Michael Frankel and Howard Schwimmer, the company announced. Chairman Tyler Rose, who recently replaced Richard Ziman, said the \u201ctransition is the culmination of the board\u2019s multi-year succession planning process.\u201d There\u2019s more to it, according to Newport Beach-based industry tracker and data analyst Green Street. \u201cIt appeared Ms. Clark was on the path to eventually succeed Co-CEOs Frankel and Schwimmer upon their retirement, but there is no question that Elliott\u2019s involvement sped up the timeline,\u201d a Green Street analysis read.<\/p>\n

Details of the Transition<\/h2>\n

Frankel and Schwimmer aren\u2019t only dropping their C-suite gigs, but their seats on the board of directors, too, which was characterized as a surprise in a recent BMO analysis. Nonetheless, Frankel and Schwimmer have entered into a transition and separation agreement, each being granted a restricted stock award valued at $22.6 million. That\u2019s more than their $13 million total compensation for 2024. In a separate announcement, Clark said the company would maximize returns by selling assets and reinvesting capital into high-yielding assets and share repurchases. During the latest earnings, the company said it had no planned purchases, only dispositions, a change from its buy-happy days.<\/p>\n

Reversal behind Hudson Pac Reverse Split<\/h2>\n

In other publicly traded, real estate investment trust news: Studio and office owner Hudson Pacific Properties announced a board-approved 1-for-7 reverse stock split that\u2019ll take effect Dec. 1. Reverse stock splits consolidate the number of existing shares into fewer, higher-priced shares and are sometimes done to avoid being delisted \u2014 but the company\u2019s shares are trading under $2 per share, with the $1 mark a red flag for delisting. Still, the announcement comes after the Victor Coleman-helmed company\u2019s losses ballooned to hundreds of millions of dollars.<\/p>\n

Selling Debt<\/h2>\n

Distressed debt, anyone? Eastdil is marketing an offering to purchase the mortgage loan connected to a Brookfield-owned office tower on Bunker Hill. The Downtown Los Angeles property, at 333 South Grand Avenue, includes a 54-story office building, called the Wells Fargo Center \u2014 North Tower, along with a three-story retail asset called the Halo. The roughly $506 million debt on the Wells Fargo Center \u2014 North Tower is in default, but how much the note would fetch, if it trades, is unclear.<\/p>\n

Real Estate Whodunit Solved<\/h2>\n

Cue the Law & Order theme song \u2026 The J.J. Abrams\u2019 Bad Robot building mystery buyer is Teddy Schwarzman\u2019s Black Bear. The independent studio founded by Schwarzman \u2014 son of Stephen Schwarzman, billionaire chairman and chief executive of Blackstone \u2014 purchased the three-story, brick building located in Santa Monica for about $31 million. But will Schwarzman keep Abrams\u2019 esoteric typewriter sign, an inside joke about the Hollywood pro\u2019s personal style and direction choices? Another mystery.<\/p>\n

End of an Era<\/h2>\n

Related California chairman and chief executive Bill Witte is stepping down after more than three decades at the helm. Witte will become chairman emeritus, and two company executives Gino Canori and Ann Silverberg will split the CEO title effective Jan. 1. Canori will head market-rate, mixed-use and commercial with Silverberg in charge of affordable residential developments.<\/p>\n

Conclusion<\/h2>\n

The recent changes in the real estate industry, including the Rexford Co-CEOs stepping down and the Hudson Pac reverse split, indicate a significant shift in the market. The involvement of activist investors like Elliott Investment Management is likely to continue shaping the industry. As companies adapt to these changes, it will be interesting to see how they navigate the challenges and opportunities that arise.<\/p>\n

FAQs<\/h2>\n