Joint ventures such a partnerships in real estate development can be complex in Los Angeles. However, an attorney can help people to address the many facets of real estate investment partnerships. The types of projects in which investors can benefit from an attorney’s assistance include office buildings, mixed-use projects, hotels, residential housing and industrial parks.

An attorney may help with integrating deal documents related to investment partnerships. Proper legal guidance can also be helpful for analyzing all of these documents from the start of a real estate project to see if they are in compliance with the lender’s requirements. These documents are furthermore checked to make sure that they comply with other contractual requirements.

Other areas in which legal assistance can prove useful are the dispositions or acquisitions of commercial real estate. You can also receive guidance on real estate development agreements or property management agreements. Any partnership disputes may additionally be handled with an applied understanding of the law.

When people are developing real estate investment partnerships, an attorney can go over the tax ramifications of these partnerships as well. You can also receive guidance through the challenges and complexities of different funding vehicles, as needed, such as mezzanine financing, subordinated project debt and development loans. Even though partnerships in real estate can be complicated and involve a great deal of risk in Los Angeles and elsewhere in California, seeing the big picture of liability with the help of a lawyer can help to ensure that your contracts make possible a coordinated enterprise.

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A real estate attorney can ensure that the provisions in your real estate contract will protect you. You can also have a claims strategy designed that mitigates losses and maximizes your ability to get insurance coverage in the future, even in a challenging market. Unfortunately, not all real estate transactions go smoothly. If a real estate dispute occurs in Los Angeles, the right legal assistance can help you navigate the litigation process.

Some issues you may need help addressing include adverse possession or easement and boundary disputes. Other problems include broker malpractice and breach of contract. Still other issues that may be challenging to address  include construction defects, foreclosure disputes and failure to disclose.

Litigation may also be necessary with regard to disputes involving purchases and sales, subdivision issues and title problems. Escrow and title insurance issues, along with restitution claim-related problems, may also crop up. In addition, you may find legal representation necessary if you are dealing with claims about real estate fraud. For example, perhaps a real estate broker or agent misrepresented property features or failed to disclose construction defects.

The real estate industry is complicated, and if you do not understand the law, you could be taken advantage of during a real estate dispute. This can be costly financially and emotionally. A Los Angeles attorney can help you to draft and review your initial transaction documents, provide risk management solutions that will benefit you long term and help to resolve litigation in a way that protects your best interests.

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A commercial lease serves as a contract between a business and a landlord for the rental of real property. Many businesses decide to rent property rather than buying it since this does not require as much capital. In Los Angeles and elsewhere, commercial leases are more complex than their residential counterparts. As with residential properties, though, the terms can be negotiated and vary from one lease to the next.

One important aspect of a commercial lease is that this type of lease offers fewer legal protections compared to a residential one. Commercial leases also have varied terms since every tenant has different needs. The length of the lease is typically longer than that of a residential lease as well, and it is also typically negotiable.

Important terms of a commercial lease to scrutinize include the rental amount and any rent increases provided for in the contract. It may be necessary to negotiate with a landlord to institute a cap on the increase, which is typically based on an annual percentage rate. Other important terms to review to ensure that they meet one’s business needs include the lease’s length, the security deposit amount and the use clause (meaning the permissible uses for the property). Contracts may also address whether a tenant is allowed to engage in subletting or assigning the lease to a different tenant.

Before signing a commercial lease, understanding the terms defining each party’s responsibilities and rights is essential. An applied understanding of the law may help individuals to effectively review commercial leases to ensure that their best interests are protected. Proper legal guidance can also help individuals in Los Angeles to navigate the intricacies of drafting leases.

Source: Findlaw, “Commercial Lease Agreement Overview“, Accessed on Nov. 15, 2016

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The buying and selling of private and commercial properties is an integral part of the economy in Los Angeles and throughout California. Regardless if they are investors looking to improve and re-sell, average families searching for a dream home, or business owners scouting out the perfect locations for their companies, the ebb and flow of the real estate market affects many people in various ways. When a real estate dispute arises, litigation is sometimes the only way to successfully resolve the issue.

Many developers find themselves facing challenges regarding purchase and sales agreements, zoning and entitlements. Lenders, on the other hand, are no strangers to disputes surrounding loan commitments, collateral recovery or defaults. Any of these situations may have both immediate and long-term negative effects if steps are not taken to find solutions in swift and economically feasible manners.

The details of disputes involving real estate are often complicated. Individual state laws may have significant bearing on the outcomes in many cases. Because real estate law is complex, it is advisable to seek clarification before pursuing any sort of formal legal action in court. In such circumstances, an experienced real estate attorney would likely prove valuable as resource for support.

Goodkin & Lynch, LLP serves clients in Los Angeles and Orange counties, as well as all other areas throughout California. We rely on our vast experience and proved record of success when addressing a real estate dispute. Our dedicated team of attorneys is committed to applying the same skill and effective representation that we have successfully demonstrated in some very high-profile cases to each and every client who comes to us seeking solutions to real estate problems.

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There may be good news for those who are looking to invest in downtown Los Angeles. The real estate market seems to be flourishing, and residential and commercial leases are becoming a hot commodity. The recent purchase of a prestigious 15-story building by a group of local investors brought top dollar, and real estate brokers see this as positive evidence of the revitalization of the once stagnant downtown area.

In the 1970s, overbuilding left Los Angeles with a glut of skyscrapers and plummeting rents. Developers had demolished the dilapidated Victorian mansions in Bunker Hill and replaced them with office-building skyscrapers which they struggled to fill. At times over the past few decades, vacancy rates averaged over 17 percent. One of the smaller of those high rises just sold for over $50 million, the largest amount for which a downtown office building has sold in over a decade.

Millennials are now moving into downtown residential properties, and public transportation in Los Angeles and beyond is expanding and improving. These elements make the downtown area attractive for local, national and international commercial investors. Mixing commercial and residential properties is a growing trend in many cities because of the convenience it provides.

The family who purchased the high rise has long term plans for the property. While those plans have not been made public, they may include residential or commercial leases. Those who are eager to participate in the downtown real estate surge, or any real estate transaction, can consult their attorneys for the best advice based on years of experience.

Source: Los Angeles Times, “‘A very, very hot market’: Downtown L.A. high-rise sells for $50 million as residential building booms“, Andrew Khouri, Sept. 30, 2016

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To most eyes, the property seems like a lavish, eight-acre estate in the peaceful hills of central Los Angeles. However, those who know better understand that the pristine convent is at the center of a prolonged real estate dispute involving the most unlikely opponents: the Sisters of the Most Holy and Immaculate Heart of the Blessed Virgin Mary and pop diva Katy Perry. The dispute began over a year ago and shows no evidence of ending soon.

Two sisters bought the property for their community in the 1970’s and claim it is theirs to sell. However, the Archdiocese of Los Angeles says that the rule of the religious order to which the sisters belong relinquishes ownership of all the sisters’ assets to the Church. Because of this, the archdiocese asserts the right to sell the property. The archdiocese accepted an offer from pop star Katy Perry for $14.5 million. Before the deal was settled, the nuns sold the property to a restaurateur for $15.5 million.

A county judge ruled that the nuns were wrong to have sold the estate without consulting the archdiocese. However, a superior court ruling overturned that decision saying that the Los Angeles County judge overstepped her discretion by denying the nuns a fair opportunity to gather information. Another hearing is scheduled in the near future to determine the status of the litigants before the case continues.

While not every real estate dispute involves nuns and archbishops, many can be just as complex and important to each side. Having an experienced attorney to guide one through the process is invaluable. Disputes involving property can potentially take many months to resolve, and a dedicated lawyer will stand by a client to protect his or her interests.

Source: laist.com, “Katy Perry Still Isn’t Able To Buy The Los Feliz Convent She So Dearly Wants”, Matt Tinoco, Oct. 1, 2016

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It is no secret that the sharing economy has put a burden on housing markets across the country, most notably through Airbnb and other short-term rental exchanges like it. As small-time investors snatch up spaces for the sole purpose of using them as short-term rental properties, housing markets have suffered.

The Los Angeles-area housing market has felt the impact of the sharing economy through severe shortages and rapidly rising rental rates, as noted by the Los Angeles Times last year. But how has the sharing economy affected the hotel industry?

Still Strong, But Vulnerable To Disruption

Although some companies are reporting little to no effect, recent research shows that traditional space providers across the country are vulnerable to disruption by the sharing economy. As real estate demands shift, hotels seem to be among the sectors most threatened.

For now, however, the hotel industry in Southern California continues to do well. As of July, hotels in Los Angeles had nearly double the occupancy rates of Airbnb rentals in the area. Showing further resilience, hotels in LA experienced positive growth of more than 8 percent, while Airbnb saw negative growth.

An Evolving Industry

The emergence of the sharing economy has certainly made waves in national and local commercial real estate markets. Hotels continue to prosper for the moment. Clearly, however, Airbnb and similar services are offering up some competition that is difficult to ignore.

Recent partnerships between major travel management companies and Airbnb – as well as Airbnb’s recently increased lobbying presence in Washington, D.C. – may be indicative of a further-changing market that could challenge hotels to adapt sooner than later.

Another factor is the fact that local government regulation short-term rentals in response to the rise of Airbnb and other sharing sites remains a highly contentious subject. As we noted in our July 28 post, these local rules are – well, to use the obvious pun – up in the air, not only in Los Angeles but across the country.

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The historic Ford Factory building in downtown Los Angeles has undergone many transitions since its construction over a century ago. Its recent metamorphosis into an office building with retail space has been slow in catching on, and the owners have been trying to close on commercial leases for the building for two years. Many leasing agents understand that closing one substantial tenant is often the catalyst that propels a massive project toward success.

Agents and brokers in the Arts District had been optimistically monitoring negotiations between the owners of the Ford Factory and Buzzfeed, which expressed interest in a large office space in the newly renovated building. Owners of nearby commercial buildings had been hoping for a significant lease that would create a ripple effect in the district, attracting clients to smaller properties in close proximity. When the entertainment company backed out of the deal, many thought the plans for the Arts District would fail.

Finally, the building’s owners closed a 13-year deal with Warner Music Group to lease 257,000 square feet of office space in the converted factory. The lease is the largest in the downtown area so far this year, and the first with a notable tenant. Almost immediately, other businesses began inquiring about property and offices in the Arts District to be close to Warner Music. Agents say entertainment companies and retailers will have more confidence in acquiring space now that the music giant has made a commitment.

The prospects for downtown Los Angeles are exciting as thousands of Warner employees will be looking for places to work, live, eat and relax. Business owners wanting to be a part of the positive changes coming to the Arts District find advice and guidance from an experienced real estate attorney. Commercial leases can be complex and involve a significant investment, and a skilled attorney will protect one’s interests and make the process as smooth as possible.

Source: therealdeal.com, “Warner Music lease is already having ripple effect on Arts District“, Cathaleen Chen, Oct. 10, 2016

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In a prior post, we highlighted the notion of “what’s old is new again” as a redevelopment plan in Los Angeles’ theatre district has revitalized that section of the city. However, making old new again may not be enough to accommodate the growing number of residents and transplants to the city. According to an estimate by UCLA’s Ziman Center for Real Estate, an estimated 300,000 people will move to the region in the next few decades.

This has caused a new discussion over upzoning; the process and practice of changing the zoning rules in a particular area to accommodate higher population density. Upzoning typically involves zoning changes from strict residential use to mixed use (i.e. combinations of retail, office and residential use). Given the popularity of mixed use properties, and the burgeoning need for new housing, upzoning appears to be a good idea that would garner wide support.

However, this support may not be universally shared. After all, higher population density may not be desired by everyone; especially those who have grown accustomed to having smaller numbers of neighbors. This presents a problem given how upzoning commonly occurs in areas with smaller shares of single family homes. More people commonly means more traffic, and a much more difficult time getting around. For those who already loathe traffic, upzoning would not be a welcome sight.

As such, developers who have development plans that require upzoning could benefit from experienced real estate attorneys who understand the legal and political issues, as well as the environmental concerns that come with a project.

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In a number of our posts, we have highlighted how the commercial real estate industry has shown signs of optimism, both in the construction of new facilities and the creation of mixed use facilities that incorporate retail, office and residential living spaces.

Given this prospective, it would seem that any new mixed use project would be successful, but that simply is not the case. Indeed, developers and investors alike must consider several factors before moving forward with a proposed development. This post will highlight a few of them.

Consider the retailer – The type of retailer is important in considering the development. The location must be conducive to the retailer needs and what residents expect in the retailer. For example, it residents expect a Starbucks to be close to where they live, but not necessarily a Sam’s Club.

What type of traffic is expected – When the location is conducive to foot traffic, as opposed to vehicular traffic, smaller, boutique like retailers should be considered as tenants. Conversely, when customers will primarily be coming by car, a larger retailer could be considered.

The type of community – The retailers included in a development must reflect the overall spending habits and culture of the community the retailers will serve. Essentially the retailers must be unique enough to offer a distinguishable shopping experience, but popular enough to attract a large clientele.

Even in light of these factors, having the guidance of an experienced real estate attorney to create language within various agreements to protect your legal interests is critical to the success of such a project.

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