Top Southland Developers to Keep an Eye On in 2001

Across the country, the near-frantic demand is cooling for business space of all sorts: shops, offices, warehouses and the various new-wave facilities housing all those “new-economy” companies.

Although California by most accounts will remain one of the nation’s strongest commercial real estate marketplaces, Southland landlords are likely to feel the decline in demand to some degree in 2001.

The slowdown’s implications for property professionals will be manifold--especially where major new developments and their financing are concerned. Hence, The Times’ annual list of watchable pros is weighted toward developers pursuing speculative commercial projects.

Lenders will debate whether large developments--which can take a year or two to build--might run the risk of missing the demand cycle and encounter financial difficulties.

Meanwhile, many landlords will scramble to fill space once slated for those shrinking “dot-coms.” And investors will need to compensate for the additional market risk, primarily by seeking higher returns through more modest capitalization rates.

The following roster constitutes a sampling of the scores of professionals playing key roles in the Southland’s dynamic commercial real estate arena:

* J. Allen Radford

Principal, JARCO, Santa Monica

Background: Successful shopping center developer continues to pursue one of the most visible and high-impact (and hence controversial) local redevelopment projects ever undertaken--on 40-plus acres in the North Hollywood Arts District.

Why watchable: Nothing seems to come easy for this ambitious project, but 2001 will be the first full year with a completed Metro Red Line station adjacent to the property.

* Jamie Sohacheski,

Robert Flaxman

Chairman and president of Crown Realty & Development, Newport Beach

Background: Developer has continued to follow tenant demand with opportunistic development and redevelopment projects.

Why watchable: Despite the likely slowdown in space absorption and additional competing developments, Crown’s office projects in Burbank and Fox Hills should continue to attract tenants.

* Steve Layton, Phil Belling

Principals, Layton-Belling & Associates, Newport Beach

Background: Low-key developers and asset managers are assembling an impressive portfolio of value-added real estate projects--while paring it with timely dispositions.

Why watchable: Latest fund with longtime partner AEW Capital Management seeks another $150 million worth of Southland commercial properties.

* William Schubin

Vice President--acquisitions and development, Legacy Partners Commercial, Irvine

Background: Oversees powerhouse investment and development specialist’s many Los Angeles-area ventures.

Why watchable: Volume and creativity of Legacy’s current value-added ventures here will keep his activities in the news--as will additional projects and sales of properties the company has improved.

* David Mgrublian, Mike Siam,

Hayden Eaves III

Managing partners, Investment Development Services, downtown Los Angeles

Background: Opportunistic office and industrial investment and development team has numerous local projects in various stages of development.

Why watchable: With real estate capital markets getting even more stingy, IDS’ deep financial relationships should support even more opportunistic moves.

* Robert Ruth

Area president, Trammell Crow Co., Century City

Background: Oversees operations of national property services giant, which has deep roots in speculative office and industrial development.

Why watchable: In addition to wide-ranging service operations, the company is responsible for some of the region’s biggest speculative industrial and office developments now underway.

* Campbell Hugh Greenup

Executive vice president--development, Kilroy Realty Corp., Santa Monica

Background: Oversees development for one of Southern California’s most active office and industrial builders.

Why watchable: Competition for Westside tenants is getting stiffer as Kilroy markets one of the area’s few large office developments (along the Olympic Corridor) and renovates a vacant El Segundo building it just acquired.

* M. David Paul,

Jeffrey Worthe

Principals, M. David Paul & Associates, Santa Monica

Background: Opportunistic office developer came to life as the region’s economy boomed.

Why watchable: Latest big Burbank office development should be barometer of demand in the tri-cities region of Burbank, Glendale and Pasadena; pending sale of MTV-anchored Colorado Avenue property in Santa Monica will say much about Westside values.

* Wayne Brandt

Southern California managing partner, Menlo Equities, downtown Los Angeles

Background: Experienced property professional now helping aggressive Silicon Valley investment and development operation build local presence.

Why watchable: Will lead big speculative Burbank office development and efforts to convert newly acquired downtown Los Angeles office towers to telecommunications uses. Expect other ventures as well.

* Bryan Ezralow

Chief executive, Ezralow Co., Calabasas

Background: Moving successful family real estate operation in new directions.

Why watchable: Overseeing three major Southland commercial redevelopment ventures representing investments approaching $500 million.

* Steve Soboroff

Principal, Soboroff Partners, Santa Monica

Background: Veteran retail chain “tenant rep” broker and shopping center owner (and civic workaholic) remains in the running to replace his friend as L.A.’s mayor.

Why watchable: Although Soboroff’s passion extends far beyond his primary industry, the commercial real estate community would presumably be thrilled with one of its own leading City Hall.

* Ben Reiling

Principal, Zelman Cos., downtown Los Angeles

Background: Longtime local commercial real estate developer Why watchable: After years of planning, Reiling and company closed the purchase of those 103 Burbank airport-adjacent acres from Lockheed. Now we’ll watch him actually build the big shopping center on the portion he’s keeping--and perhaps another in San Fernando as well.

* Robert Maguire

Principal, Maguire Partners, downtown Los Angeles

Background: One of the Southland’s most prolific and visible commercial developers dating back to the 1970s.

Why watchable: Just as questions are being raised about future growth in local office markets, he’s finally ready to launch the first Playa Vista buildings and perhaps others in Pasadena and Glendale.

* Mark McCaslin

Principal, McCaslin Co., Century City

Background: Helped Chicago’s JMB Realty buy, build and fill Century City high-rises before forming company to handle same on a for-fee basis.

Why watchable: Will pursue deals with additional tenants--and presumably help secure financing too--now that he’s cut the anchor deal bringing MGM to Century City’s next, and probably last, office high-rise.

* Tom Gilmore

Principal, Gilmore Associates, downtown Los Angeles

Background: Ex-New Yorker has become leading proponent--and practitioner--of historic renovations in the downtown district.

Why watchable: His success rate will demonstrate the financial viability of what many consider risky endeavors. Expect more gutsy moves wherever downtown’s winds blow.

* Jerry Snyder

Principal, J.H. Snyder Co., Los Angeles

Background: Veteran builder remains one of the most active office and retail developers in town.

Why watchable: Snyder and partners didn’t get to develop their planned Burbank office project, but hit a home run with the high-rent lease-up of Water Garden II in Santa Monica. The new financial relationship with wealthy businessman Lou Gonda should keep the Snyder group’s well-conceived retail and office projects coming.

* Gary Toeller

Vice President-development, Opus West Corp., Westwood

Background: Runs new L.A. office for regional affiliate of one of the nation’s most active and well-heeled commercial developers.

Why watchable: Launching speculative office developments in technology-oriented El Segundo and Westlake Village--amid a tech-sector shakeout with unclear implications for various L.A. office sub-markets.

* Jim Brooks

Senior director, Tishman Speyer Properties, Santa Monica

Background: Local go-to guy for leading office property developer, investor and manager.

Why watchable: Challenges ahead include planning and marketing a major commercial development in Fox Hills and re-filling the huge amount of space MGM and other tenants will eventually vacate at Santa Monica’s MGM Plaza, which Tishman purchased last spring.

* Dan Emmett,

Jordan Kaplan

President, principal, Douglas Emmett Realty Advisors, Santa Monica

Background: Started investing heavily in local office properties at the recessionary trough--and kept right on buying as the market recovered.

Why watchable: The nation’s general economic slowdown notwithstanding, institutional investors are still buying quality commercial property, and Douglas Emmett continues to place those allocations into L.A. office buildings. Emmett, Kaplan and their colleagues and clients will keep close watch on rental trends on the Westside, where they have a huge ownership stake.

* Mark Siffin

Principal, Maefield Development Corp., Los Angeles

Background: Veteran developer from the Midwest secured approvals for $250-million mixed-use development billed as a “gateway” to the Sunset Strip.

Why watchable: Aiming to bring a bit of Rodeo Drive retailing to the Strip in time for the next holiday season. Will also be negotiating office leases and an operating agreement (and perhaps development partnership) with a hotelier.