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Our last few posts have focused on the state of the market and the growing opportunities with regard to commercial real estate and office locations. However, it is important for real estate investors and financiers to recognize the trends that could shape real estate development in the near future. Essentially, a recent globest.com article highlighted three related trends. We will describe what they are and how they may influence future projects. Generation specific housing – It’s no secret that the number of people reaching age 65 are growing each month. With that, the number of senior housing and assisted living facilities has to grow as well. Because of this, securing financing for these projects has become a critical aspect of development. Co-urbanism – Real estate development is changing with the changing population needs. This means that more multiuse projects that enable retail, office and living spaces to be in close proximity to each other have become important as working and shopping experiences continue to change. Cyber risk – With more developments touting intelligent technological benefits, including smart grids and automated retail operations, it is essential that these buildings be protected from cyber attacks. Ransomware and other attacks geared towards seizing private information cannot be ignored, and developers must include plans for cyber risk management. Indeed, the guidance and advice from experienced legal counsel can be very helpful as developers secure financing for future projects. But knowing how these three trends may shape future projects can give developers a better opportunity for success. The preceding is not legal advice.

Our last few posts have focused on the state of the market and the growing opportunities with regard to commercial real estate and office locations. However, it is important for real estate investors and financiers to recognize the trends that could shape real estate development in the near future. Essentially, a recent globest.com article highlighted three related trends. We will describe what they are and how they may influence future projects. Generation specific housing – It’s no secret that the number of people reaching age 65 are growing each month. With that, the number of senior housing and assisted living facilities has to grow as well. Because of this, securing financing for these projects has become a critical aspect of development. Co-urbanism – Real estate development is changing with the changing population needs. This means that more multiuse projects that enable retail, office and living spaces to be in close proximity to each other have become important as working and shopping experiences continue to change. Cyber risk – With more developments touting intelligent technological benefits, including smart grids and automated retail operations, it is essential that these buildings be protected from cyber attacks. Ransomware and other attacks geared towards seizing private information cannot be ignored, and developers must include plans for cyber risk management. Indeed, the guidance and advice from experienced legal counsel can be very helpful as developers secure financing for future projects. But knowing how these three trends may shape future projects can give developers a better opportunity for success. The preceding is not legal advice.

As we have noted in a number of our posts, the commercial real estate market is poised to meet a number of expectations as mixed use properties become ever more popular and necessary. The latest example is Blossom Plaza. Set in Chinatown in downtown Los Angeles, the $100 million project will have 237 apartment units (which include 53 low-income rental units) retail space as well as a three level parking garage. Additionally, the property will have direct access to a Metro station, which will be an added perk for residents. Not only is Blossom Plaza the latest addition to downtown LA, it is the latest example of developers rushing “quickly” to acquire cheaper locations in order to develop properties at a reasonable expense. Indeed, land around the Staples Center and LA’s downtown core have become increasingly expensive, so developers had to get creative about locations that would be suitable in bringing a quality product to the public. After all, when a building is built at a lower price point because of lower real estate costs, there are a number of options available to the developer. As a result of this project, and a similar venture entitled Jia Apartments in 2014, upward pressure is being placed on prices per square foot. Yes, it has not reached the magical $1000 per square foot threshold, but they are stark reminders that the growing economy will create additional opportunities. If you have questions about commercial real estate financing, so that prime opportunities do not pass you by, an experienced attorney can advise you.

As we have noted in a number of our posts, the commercial real estate market is poised to meet a number of expectations as mixed use properties become ever more popular and necessary. The latest example is Blossom Plaza. Set in Chinatown in downtown Los Angeles, the $100 million project will have 237 apartment units (which include 53 low-income rental units) retail space as well as a three level parking garage. Additionally, the property will have direct access to a Metro station, which will be an added perk for residents. Not only is Blossom Plaza the latest addition to downtown LA, it is the latest example of developers rushing “quickly” to acquire cheaper locations in order to develop properties at a reasonable expense. Indeed, land around the Staples Center and LA’s downtown core have become increasingly expensive, so developers had to get creative about locations that would be suitable in bringing a quality product to the public. After all, when a building is built at a lower price point because of lower real estate costs, there are a number of options available to the developer. As a result of this project, and a similar venture entitled Jia Apartments in 2014, upward pressure is being placed on prices per square foot. Yes, it has not reached the magical $1000 per square foot threshold, but they are stark reminders that the growing economy will create additional opportunities. If you have questions about commercial real estate financing, so that prime opportunities do not pass you by, an experienced attorney can advise you.

Our last post voiced a word of caution with regard to commercial real estate. Essentially, with higher vacancy rates, prospective over-building and jitters in the commercial mortgage back securities market, signs pointing to a major downturn are visible in Southern California as well as other regions of the country. Nevertheless, as one form of real estate seems vulnerable, another shows signs of phenomenal growth. The latest investments in Anaheim are among the largest in the United States. According to a GlobeSt.com report, nearly $6 billion in investments are taking shape around Disneyland and Angel Stadium of Anaheim. Specifically, the addition of a Star Wars themed land at Disneyland was announced earlier this year. Also, four new luxury hotels and other lodging venues are under construction. This is in addition to the expansion of the Anaheim Convention Center. The new investments reflect the ongoing success of “destination investment” given that more people are willing to pay for quality entertainment experiences. This also compliments the ongoing need for space to host conventions. Further, there are new homes, a shopping center, restaurants and office space being planned around the Platinum Triangle area around Angel Stadium. This area was once littered with warehouses and industrial venues. Now it is re-emerging as an ideal place to live, work and play. It is drawing comparisons to L.A. Live in downtown Los Angeles, and the East Village in downtown San Diego. These types of multi-billion dollar investment plans require the guidance and expertise of experienced real estate attorneys. Contact a skilled lawyer who can help make ideas reality.

Our last post voiced a word of caution with regard to commercial real estate. Essentially, with higher vacancy rates, prospective over-building and jitters in the commercial mortgage back securities market, signs pointing to a major downturn are visible in Southern California as well as other regions of the country. Nevertheless, as one form of real estate seems vulnerable, another shows signs of phenomenal growth. The latest investments in Anaheim are among the largest in the United States. According to a GlobeSt.com report, nearly $6 billion in investments are taking shape around Disneyland and Angel Stadium of Anaheim. Specifically, the addition of a Star Wars themed land at Disneyland was announced earlier this year. Also, four new luxury hotels and other lodging venues are under construction. This is in addition to the expansion of the Anaheim Convention Center. The new investments reflect the ongoing success of “destination investment” given that more people are willing to pay for quality entertainment experiences. This also compliments the ongoing need for space to host conventions. Further, there are new homes, a shopping center, restaurants and office space being planned around the Platinum Triangle area around Angel Stadium. This area was once littered with warehouses and industrial venues. Now it is re-emerging as an ideal place to live, work and play. It is drawing comparisons to L.A. Live in downtown Los Angeles, and the East Village in downtown San Diego. These types of multi-billion dollar investment plans require the guidance and expertise of experienced real estate attorneys. Contact a skilled lawyer who can help make ideas reality.

The next time you go through the theatre district in Los Angeles and see a retail store in its place, you are not lost or hallucinating. It is the sign of the times when it comes to real estate. Essentially, developers have become very creative when it comes to making old, dilapidated properties new again. Because moviegoers have long since shown their preference for new IMAX enabled metroplexes over historic, single screen theatres, landlords have had to find alternative uses for such large venues. With that, what was once home to some of the iconic venues for movie houses is becoming home to churches, hotels and especially retail outlets. According to a recent LATimes.com article, the Rialto Theatre has become home to Urban Outfitters, a Philadelphia-based clothing retailer. The 10,000 square foot building was repurposed in 2013. Similarly, the United Artists building on Broadway was revamped and transformed into the Ace Hotel in 2014. Indeed, the city is eager to see old buildings revitalized, so it should not be surprising that the historic Olympic Theater will be renovated to make way for COS; a higher brand of H&M. As we noted in a prior post, an iconic property can bring the attention and foot traffic that businesses covet. However, a renovation contract must have the appropriate safeguards to protect investors. An experienced real estate attorney can help with the nuances and critical language to ensure such protections. With so much money required (and so much to be made) nothing should be left to chance.

The next time you go through the theatre district in Los Angeles and see a retail store in its place, you are not lost or hallucinating. It is the sign of the times when it comes to real estate. Essentially, developers have become very creative when it comes to making old, dilapidated properties new again. Because moviegoers have long since shown their preference for new IMAX enabled metroplexes over historic, single screen theatres, landlords have had to find alternative uses for such large venues. With that, what was once home to some of the iconic venues for movie houses is becoming home to churches, hotels and especially retail outlets. According to a recent LATimes.com article, the Rialto Theatre has become home to Urban Outfitters, a Philadelphia-based clothing retailer. The 10,000 square foot building was repurposed in 2013. Similarly, the United Artists building on Broadway was revamped and transformed into the Ace Hotel in 2014. Indeed, the city is eager to see old buildings revitalized, so it should not be surprising that the historic Olympic Theater will be renovated to make way for COS; a higher brand of H&M. As we noted in a prior post, an iconic property can bring the attention and foot traffic that businesses covet. However, a renovation contract must have the appropriate safeguards to protect investors. An experienced real estate attorney can help with the nuances and critical language to ensure such protections. With so much money required (and so much to be made) nothing should be left to chance.

A partnership is the foundation of many California businesses. In order for those collaborations to be successful for all involved, Forbes offers some advice about what makes for strong partnerships in business. While there are millions of kinds of businesses, partnerships, investment projects and various kinds of business litigation disputes in Los Angeles alone, just about all business matters share one thing in common: contracts. A partnership starts with an agreement, and that partnership agreement should be thoughtfully, lawfully and formally created. Partnerships and businesses can and do fail due to the weakness of a contract. Effective documentation is the basis of a successful, protected business entity. Therefore, legal support that is experienced in protecting business and partnerships is an important ally for entrepreneurs to adopt right away. Beyond solid, foundational partnership documents, there is the important matter of whether the partnership is a promising idea in the first place. Forbes suggests that the separate parties think honestly together about the following questions: What are the other party’s/parties’ expectations of the business and the partnership overall? Do the expectations match, and do the expectations jive together? What does the other entity have to offer from a partnership perspective? Does the other party bring something to the big picture that is needed in order for the business to better succeed? Are both or all parties benefiting each other and the overall success of the business? If not all are benefiting from a partnership deal, not all parties will feel positively about the business venture. Discontent can make for an unsatisfying business relationship and less secure business. A clear mind and confidence can help a business and partnership succeed. Experienced and knowledgeable business lawyers can help provide entrepreneurs with both. They will know what makes a solid contract and what questions potential partners should think about and discuss before taking on a new business venture.

A partnership is the foundation of many California businesses. In order for those collaborations to be successful for all involved, Forbes offers some advice about what makes for strong partnerships in business. While there are millions of kinds of businesses, partnerships, investment projects and various kinds of business litigation disputes in Los Angeles alone, just about all business matters share one thing in common: contracts. A partnership starts with an agreement, and that partnership agreement should be thoughtfully, lawfully and formally created. Partnerships and businesses can and do fail due to the weakness of a contract. Effective documentation is the basis of a successful, protected business entity. Therefore, legal support that is experienced in protecting business and partnerships is an important ally for entrepreneurs to adopt right away. Beyond solid, foundational partnership documents, there is the important matter of whether the partnership is a promising idea in the first place. Forbes suggests that the separate parties think honestly together about the following questions: What are the other party’s/parties’ expectations of the business and the partnership overall? Do the expectations match, and do the expectations jive together? What does the other entity have to offer from a partnership perspective? Does the other party bring something to the big picture that is needed in order for the business to better succeed? Are both or all parties benefiting each other and the overall success of the business? If not all are benefiting from a partnership deal, not all parties will feel positively about the business venture. Discontent can make for an unsatisfying business relationship and less secure business. A clear mind and confidence can help a business and partnership succeed. Experienced and knowledgeable business lawyers can help provide entrepreneurs with both. They will know what makes a solid contract and what questions potential partners should think about and discuss before taking on a new business venture.

People in Los Angeles love the Runyon Canyon Park. It is estimated that 1.8 million people visit the 136 acre park each year for the hiking trails, the areas where dogs can roam off-leash, and of course, the Hollywood sign. However, catering to the masses costs money. This is why the city’s Recreation and Parks Department’s partnership division has allowed private donor to sponsor maintenance projects. One such project has raised the ire of park users. An LA Times.com report highlighted the story of a private company’s sponsorship and construction of a retaining wall and basketball court that was initially approved by the city in November. Nevertheless, public outcry over the company’s logo on the basketball court has caused city officials to rescind its approval. Ironically, the rescission will cost the city nearly $210,000 because much of the work on the project has already been completed. Park users were apparently unaware of the project before the end of March, when the park was being closed to repair aging water pipes. The park was scheduled to be closed for four months while the retaining wall and basketball court were being built. This caused opponents of the project to dominate a recent council meeting and inundate the councilman responsible for approving the project with phone calls. While the council has yet to officially halt the project through a vote, it is a virtual certainty that it will be halted. The project is a cautionary tale for private entities working with city officials. It is helpful to have an experienced real estate attorney to help navigate the administrative process so that a project can be successful.

People in Los Angeles love the Runyon Canyon Park. It is estimated that 1.8 million people visit the 136 acre park each year for the hiking trails, the areas where dogs can roam off-leash, and of course, the Hollywood sign. However, catering to the masses costs money. This is why the city’s Recreation and Parks Department’s partnership division has allowed private donor to sponsor maintenance projects. One such project has raised the ire of park users. An LA Times.com report highlighted the story of a private company’s sponsorship and construction of a retaining wall and basketball court that was initially approved by the city in November. Nevertheless, public outcry over the company’s logo on the basketball court has caused city officials to rescind its approval. Ironically, the rescission will cost the city nearly $210,000 because much of the work on the project has already been completed. Park users were apparently unaware of the project before the end of March, when the park was being closed to repair aging water pipes. The park was scheduled to be closed for four months while the retaining wall and basketball court were being built. This caused opponents of the project to dominate a recent council meeting and inundate the councilman responsible for approving the project with phone calls. While the council has yet to officially halt the project through a vote, it is a virtual certainty that it will be halted. The project is a cautionary tale for private entities working with city officials. It is helpful to have an experienced real estate attorney to help navigate the administrative process so that a project can be successful.