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LOS ANGELES BUSINESS JOURNAL
Volume 38, Number 5
THE COMMUNITY OF BUSINESS
February 1 - 7, 2016 • $5.00
TM
Ranked #1
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Volume 38, Number 5
Up Front
THE COMMUNITY OF BUSINESS
Brothers Divided by Air Line Feud Dov Charney
AVIATION: Surf Air co-founder
alleges stake devalued in scheme.
By GARRETT REIM Staff Reporter
How Tessa Young
is amplifying jobs
for women DJs.
February 1 - 7, 2016 • $5.00
TM
While Santa Monica’s Surf Air is flying high
with customers and investors, the airline’s success
has left David Eyerly, the company’s co-founder
and former chief operating officer, out in the cold.
The 31-year-old Eyerly is fighting Surf Air and
several of its investors in court, claiming he was the
victim of a complex scheme that not only caused his
brother and co-founder, Wade Eyerly, to force him
out of the company, but also diluted his ownership
by 94 percent, taking him from a 12.5 percent equity position all the way down to 0.75 percent.
“It was his baby. He was stripped of his stock
and he didn’t even know (the investors) were
Refuses to Fold
doing this,” said David Eyerly’s lawyer, Skip Miller of
Century City’s Miller Barondess. “They did it in the
dark without his knowledge,
Estimated value
consent or participation.”
of Surf Air
Meanwhile, the subscription airline founded by the
Eyerly brothers and several others in 2011 has
become popular among tech entrepreneurs, who
regularly fly its Los Angeles-San Francisco route.
It has raised more than $84 million in investments.
David Eyerly’s legal team values Surf Air at $1 billion and is seeking at least $125 million in damages.
The company’s valuation is built on its appeal
to frequent flyers, offering them the ability to avoid
long Transportation Security Administration security
$1
billion
CLOTHING: Founder to start
rival to American Apparel?
By DAINA BETH SOLOMON Staff Reporter
“I’m not going away,”
OP-ED
insists Dov Charney, the
ousted chief executive of
Dov Charney
American Apparel who
reflects and opines.
saw the clothier slip out of
PAGE 41
his grasp in bankruptcy
court last week.
Vowing to stay in the public eye, he told the
Please see AVIATION page 36
Please see CLOTHING page 34
PAGE 3
SPECIAL REPORT: THE BUSINESS OF ENTERTAINMENT
News &
Analysis
Fresh Money
In Old Shows
TV: Revenue from streaming
alters big picture for some.
By MARNI USHEROFF Staff Reporter
T
he might play the mother of the King of Hell on popular TV show “Supernatural,” but Ruth Connell didn’t
need to strike a deal with the devil to become internationally famous.
Instead, the West Hollywood actress used social media to build her fan base and create both a
market for her own T-shirt line — based on her character in the CW series, Rowena — and to set up lucrative
convention appearances around the world.
Read about how she and other prominent figures in the L.A. entertainment scene are using digital media to
boost their business in this special section focusing on film, TV, theater, music and entertainment law.
V show “Happy Endings” may have
been axed by ABC several years ago,
but the series is living up to its name
after finding a second life on streaming services offered by Hulu and Amazon.com Inc.
And it’s not alone. Lots of programs have
been rising like Lazarus from their graves
thanks to companies such as Netflix, which
allow them to connect to a new audience,
often made up of younger viewers.
The trend is not only changing the entire
entertainment industry (see page 12), but it
also can provide a surprise financial boon to
a number of former cast members, producers
and writers.
Danielle Prunier, a senior vice president of wealth management for Merrill
Lynch in Century City, said she first noticed
the situation three years ago after hearing
from entertainment industry clients as they
watched their old shows become popular on
streaming platforms.
“I was getting phone calls from clients
saying, ‘I can’t believe this but a whole new
generation of kids is watching the show I
created that’s no longer on the air,’” she said.
In one blockbuster deal last year, Santa
Monica’s Hulu acquired the exclusive subscription video-on-demand rights to all nine
seasons of megahit sitcom “Seinfeld” for a
reported $160 million – creating huge new
streams of money.
While the growing value of online deals
is great news for creatives overall – not all of
them are able to reap the rewards.
“If a writer, producer, actor has a profit
BEGINNING ON PAGE 12
Please see TV page 35
More than 1,000
people already
want to buy
the 151 condos in
this DTLA building.
RINGO H.W. CHIU/LABJ
PAGE 6
Real
Estate
Why a oncestruggling El
Monte shopping
center just sold
for a huge price.
PAGE 31
Exec
Style
Social Presence: ‘Supernatural’ actress Ruth Connell connects with her fans online.
TECH’S
NEW STAGES
S
A fashionable
local architect
explains the
crayons in
her bag.
PAGE 38
What it takes to get ahead.
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2 LOS ANGELES BUSINESS JOURNAL
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94
The Los Angeles Business
Journal keeps its finger on
the pulse of the L.A. tech
and startup communities.
I rely on the LABJ to seek
out forward-thinking
business partners.
”
Sabrina Kay
Chancellor and CEO
Fremont College/Fremont Private Investments
The community of business™
with players in TV, film, music, theater and entertainment law on the
growing role of digital content in
showbiz. . . . . . . . . . . . . . . . . . . 12-19
CHARTS: The 25 largest talent agencies
ON THE COVER
AdvancedDesignMFG.com/free
“
PROFILES: Business Journal speaks
CLOTHING: Dov Charney and his
backers look to stitch together a future
in fashion for the founder of American
Apparel.
AVIATION: Lawsuit by Surf Air
co-founder David Eyerly alleges investors schemed to devalue his stake in the
company.
TV: Streaming services can prove a
lucrative new financial channel for old
programs.
UP FRONT
HOSPITALITY: Loews Santa Monica
Beach Hotel looks to shore up its
seaside appeal with a $30 million
makeover. . . . . . . . . . . . . . . . . . . . . . . . . 3
MUSIC: Tessa Young’s Prism aims to
tune up the careers of women DJs. . . . 3
Columns & features: Page 3,
Regional Report 4
in Los Angeles County, ranked by the
number of agents in the county. . . . 20
The 12 largest motion picture distributors in Los Angeles County, ranked
by total domestic box-office receipts
for 2015. . . . . . . . . . . . . . . . . . . . . . .21
FOOD: Here’s the scoop: Artisanal
ice-cream shops find consistent menu
prices pay off in more sales. . . . . . . . . . 8
INTERNET: Revenue surged last year
as SteelHouse and other ad tech firms
continued to click with clients.. . . . . . . 8
Columns & features: Media Watch 9,
Silicon Beach Report 9, #DTLA 10,
Law 10, News of the Week 11
INVESTMENTS & FINANCE
Columns & features: LABJ Stock
Index 24, Econowatch 26, M&A 27
REAL ESTATE
Columns & features: Done Deals 28,
Real Estate column 31
EXECUTIVE STYLE
OFFICE: Architect Patti Baker’s
blueprint for work at KAA Design
includes multiple layers and
menswear. . . . . . . . . . . . . . . . . . . . . . . . 38
COMMENTARY
NEWS & ANALYSIS
FOOTWEAR: Shoes of Prey touts its
customer-designed products as the next
step in connecting with consumers. . . . 5
MANUFACTURING: Mattel’s pickup of
tablet maker Fuhu pushes the right
buttons with investors. . . . . . . . . . . . . . 5
REAL ESTATE: Developer Trumark
Urban is high on prospects in
downtown Los Angeles for its luxury
condos. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
COMMENT: An assemblyman’s
Parking Bill of Rights needs an
important amendment, Charles
Crumpley writes. . . . . . . . . . . . . . . . . . 40
HOUSING: A variety of factors has
opened the door to L.A.’s high costs
for homeowners and renters, writes Ted
M. Handel. . . . . . . . . . . . . . . . . . . . . . . 41
MANUFACTURING: American Apparel’s
ousted founder Dov Charney writes
how the new owners are a poor fit for
the clothing company. . . . . . . . . . . . . . 41
Columns & features: LABJ Forum 40
Los Angeles Business Journal (ISSN 0194-2603) is published weekly. © 2016, Los Angeles Business Journal. Offices are located at 5700 Wilshire
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Los Angeles Business Journal is gathered from sources considered to be reliable, but the accuracy of this information cannot be guaranteed. Neither that information nor any opinion which may be expressed here constitutes a solicitation for the purchase or sale of any securities. Opinions
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Audit Bureau of Circulations. LABJ has been adjudicated Nov. 1985 to be a newspaper of general circulation. POSTMASTER: Send address
changes to Los Angeles Business Journal, PO Box 16825, North Hollywood, CA 91615.
+1 604 278 4604
UP FRONT
FEBRUARY 1, 2016
LOS ANGELES BUSINESS JOURNAL 3
Sea Change: Renovated room at Loews Santa Monica.
Beach Hotel’s
Revamp Aims
For Big Splash
Santa Monica’s Loews
checks into $30 million
renovation project.
Fresh Spin: Tessa Young, founder of Prism DJs, plays records at an event in Griffith Park.
DJ’s Agency
Cues Up Gigs
For Women
Tessa Young’s Prism
looks to turn tables on
male-dominated sector.
While female DJs
rarely receive top billing at
major music festivals, local
entrepreneur Tessa Young
is trying to boost the role of
women in the industry.
The 35-year-old in April
founded Prism DJs, which
quickly became L.A.’s largest
boutique agency consisting
solely of female DJs. Young
estimated that the company,
which counts 15 women on its
roster, has grown revenue by
50 percent in recent months.
“I started the company
because a lot of people were
coming to me and saying,
‘There aren’t that many
female DJs out there.’ And
I said, ‘There are! No one
knows where to find them,’”
Young explained.
While Young had long
played records on her set of
Technics 1200 turntables,
she didn’t set out to become
a pioneering DJ. Previously,
she worked as a paralegal
at downtown L.A. law firm
Sonnett & Associates, which
was acquired by Lewis
Brisbois Bisgaard & Smith,
also in downtown.
But after DJ-ing on
weeknights at downtown’s
Wurstkuche, she said she
eventually left her day job;
drafted a business plan;
and acquired a roughly
$25,000 Small Business
Administration loan
from downtown’s Pacific
Asian Consortium in
Employment, which she used
for equipment, marketing and
startup costs. She has since
booked DJs for companies
including mobile app
developer Flipagram, Google
Inc. and clothiers such as
Lacoste and Free People.
Her DJs typically charge
between $1,500 and $2,500
for corporate events, and
Young’s company gets 20
percent. The stable of DJs
includes, among others,
Marion Hodges of KCRW
(89.9-FM).
But even though the agency
has helped alleviate Young’s
own client overflow, she is
still in demand. Last week, her
schedule included a booking at
the W Hotel in Westwood and
a Saturday-night gig at Sky
Bar in West Hollywood.
Her vision, she said, is
to continue bringing more
women to the forefront of the
DJ industry – and providing
top-notch entertainment for
her clients.
“To push that percentage
up a little higher is a very
exciting thing,” she said. “It’s
very empowering.”
– Natalie Schachar
For the first time in 15
years, the Loews Santa
Monica Beach Hotel is
revamping its rooms –
splashing out $30 million on
a renovation inspired by the
hotel’s seaside location.
Managing Director Paul
Leclerc said
the new design
flourishes and
furnishings in
cool blue, light
tan and bright
white, created
by L.A. designer
Rodrigo Vargas,
aim to evoke
water, sand and
Leclerc
driftwood.
The 347-room hotel is
replacing its wrought-iron
balconies with glass patios
and adding shutters to help
frame views of the Pacific.
Fire pits will be added to
35 rooms and suites that have
outdoor terraces, partly in a
bid to inspire room service
orders from the hotel’s
restaurant, Ocean & Vine.
With the hotel occupancy
rate ranging from the midto high 80 percent range
over the past several years,
Leclerc said it was tricky
to plan a time to launch a
renovation that would keep
a large number of rooms
unavailable for an extended
period. He decided to start
the four-month process in
the winter season, just after
the American Film Market,
which is hosted each
November at Loews.
This “refresh,” as
Leclerc called it, is due to
be completed by the end of
March and will contribute,
along with rising market
rates, to lifting prices by
roughly 5 percent. Rates
currently begin around
$350 a night in times of low
demand or about
$500 in peak
seasons, and
jump as high as
$3,600 a night
for a suite.
Loews last
year completed
a facelift on the
exterior and
the pool deck,
where guests
can treat themselves to ice
cream from L.A. Creamery
and catch live music on
weekends.
Although Loews Hotels,
headquartered in New York,
operates more than 20 hotels
in the United States and
Canada, its spot in Santa
Monica offers a unique
allure.
“We are blessed with
location … right on the
beach beside the Santa
Monica Pier,” said Leclerc.
“It’s very serene and
inviting.”
– Daina Beth Solomon
Passion for Cars Shifts Gears
When Paran Johar
gets ready to drive to
work, he has his pick
of impressive autos:
a Mercedes, Jaguar,
Chevrolet Camaro
convertible and custom
Triumph, among others.
The founder of Mobile
Media Summit caught the
bug for collecting classic
cars 15 years ago.
“Back then I bought
cheap, fun cars I could
drive for a while then sell
and make money,” said
Johar, 45, who enjoys
sprucing up aging models Johar
and racing sports cars.
“Now I tend to buy a car and
special place in my heart.”
keep it, as they all have a
Born in India and raised in
PAGE 3
CHARLES
CRUMPLEY
Montreal, Johar has managed to
blend this passion with his job
of programming conferences
about mobile advertising and
marketing. In April, an event
called Cars and Stars at the
Beverly Hills Hotel will explore
digital strategies that can be
put to use within L.A.’s auto and
entertainment industries.
These days, Johar said he is
more confident about marketing
than racing, recalling a race in
Irwindale several years ago.
“I was invited to race a
NASCAR (vehicle) on a very small
oval with some friends,” he said.
“Not sure if it was the small oval
track, the car or the fact that I’m
responsible now for my baby
daughter, but after teasing my
friends that I would win our race,
I froze and came in dead last.”
Talking Up Podcast
What started as an email
conversation among colleagues
morphed into a monthly
podcast for Jacqueline Liu,
account manager at Pollack PR
Marketing Group in Century City.
Liu, 34, said she and three
other women in the office often
sent each other funny stories or
links and would talk about them
during lunch.
“We’d be
sitting there
eating lunch
and bantering
back and
forth and
realized we
had all the
makings
Liu
of a good
podcast,”
she said.
The podcast, “Reply
All,” started in October and
it even has two “New York
correspondents” – female
employees from the firm’s
Big Apple office who submit
recorded material.
But Liu said podcasting can
be challenging as well
as fun.
“Being on radio is
hard because it’s not
the same as normal
conversation,” she said.
“When we first listened
to it we were laughing
and talking over each
other. That was one thing
we had to learn. (But)
we’re having a great time
and everyone enjoys it.”
Staff reporters Daina Beth
Solomon and Subrina Hudson
contributed to this column.
Page 3 is compiled by Editor
Charles Crumpley. He can be
reached at ccrumpley@
labusinessjournal.com.
+1 604 278 4604
UP FRONT
REGIONAL REPORT
FEBRUARY 1, 2016
News and notes from
communities across
Los Angeles County
California Teachers Study. The five-year NCI
award will fund the CTS program’s approach
of using cloud-based data management and
technology to conduct large-scale epidemiology research.
u TRI-CITIES
PASADENA
Gaining Ground: Lee & Associates, an
Orange-headquartered commercial real estate
services firm, has opened an office in Pasadena, the firm’s 27th in California. The new
outpost, at 155 N. Lake Ave., will be overseen
by Christopher Larimore.
Hitting Road: Jacobs Engineering Group
Inc. of Pasadena has been awarded a contract by the government of Wales to provide
technical advisory services for the upgrades
to sections of the A465 road, a key transportation route in South Wales. Jacobs will provide
environmental impact assessment, and technical and procurement support, among other
services. Financial terms of the contract were
not disclosed.
u WESTSIDE
WEST LOS ANGELES
Dialed In: West L.A. communications firm
FreedomPop has raised $50 million in an
equity round from undisclosed investors.
FreedomPop, which raised $30 million in
a Series B round, plans to use the money
to expand its wireless services throughout
Europe, Asia and South America. Through its
proprietary SIM card technology, the firm offers free voice and data cellphone service up
to a point, then charges for additional usage
or services such as a second phone number
or anonymous Web browsing. The company
also generates revenue by selling cellphone
devices.
CORRECTION
North Hollywood: Multifamily property bought by Bernal Capital Group.
u CENTRAL AREA
u BEACH CITIES
u Regional Report
DOWNTOWN LOS ANGELES
REDONDO BEACH
Bigger Picture: Naritiv, an entertainment
services firm in downtown Los Angeles, has
raised $6.3 million from 32 undisclosed investors, according to a Securities and Exchange
Commission filing. Naritiv sells sponsorships to
brands on behalf of a network of Snapchat stars.
Hooked Up: CapLinked, a Redondo
Beach software firm, has raised $3.5 million
in a round led by Subtraction Capital of San
Francisco. CapLinked’s cloud-based software
facilitates document sharing for the financial
industry.The money will go toward sales and
marketing efforts.
u SAN FERNANDO VALLEY
u SAN GABRIEL VALLEY
NORTH HOLLYWOOD
DUARTE
Apartment Sale: Irvine real estate services
firm Bernal Capital Group has acquired a North
Hollywood multifamily property for $4.9
million from the George Ellis Trust of Granada
Hills. The 19-unit building, at 11040 Hesby St.,
was 100 percent leased at time of sale.
An item in the “New Hires” section of
the Jan. 18 Law column incorrectly stated
when Erin K. Tenner launched her former
law office. She started the firm more than
20 years ago.
•••
An article in the Jan. 18 issue headlined
“Way In on Way Out?” incorrectly stated
Molina Healthcare Inc. obtained an EB-5
loan. A separate entity, Sixth and Pine
Development, received the loan.
Shot in Arm: City of Hope, a Duarte
research and treatment center for cancer and
other life-threatening diseases, has been awarded more than $12 million from the National
Cancer Institute in Bethesda, Md., for the
To be considered for publication, Regional
Report submissions should be e-mailed to:
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Business news from companies in Los
Angeles County or nearby areas is listed on
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basis of company size and the significance
of the announcement. The Business Journal
tries to include as many listings as possible, but some may not be published due to
space limitations.
Please address all inquiries to the e-mail
address above. If you do not receive a
response in a timely manner,
call (323) 549-5225, ext. 223.
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FEBRUARY 1, 2016
NEWS &ANALYSIS
defunct downtown L.A. denim maker Den.m
bar and online shoe company Milk and Honey.
Frances Harder, president of L.A.’s
Fashion Business Inc., a nonprofit serving
fashion firms, said there is a swing toward
customization in the apparel industry –
including footwear – but turning a profit
isn’t easy.
“Custom clothing – that’s very expensive,”
Harder said. “And most couturiers that we
know in L.A. are not too financially well off.
If you’re doing customization, think about
how you would cost that. If you’re worth
$50 an hour and it takes you 20 hours, you’re
already looking at quite an expense (for the
customer).”
Well Heeled: Shoes of Prey’s Jodie Fox among products at the Santa Monica headquarters of the online vendor.
Stepping Out
FOOTWEAR: Shoes of Prey puts design decisions in hands of
consumers while taming added costs of custom-made products.
By SUBRINA HUDSON Staff Reporter
B
UYING clothing off the rack can be
tough – sometimes the fit is off or
maybe the color is terrible.
Jodie Fox faced a similar problem with her
footwear, which led her to co-found Shoes of
Prey in Santa Monica.
The online company, which recently
moved its headquarters from Australia to
Santa Monica, lets shoppers design their
own footwear and customize everything
including heel height, material, color and
embellishments.
It’s joined a handful of other companies,
such as Staub, Acustom Apparel and Left
Shoe Co., that give Angelenos more control
over the design of their garments and shoes.
Fox said the company moved because
of growing consumer demand in the United
States. Increased investment helped.
“We closed a round in late 2015,” Fox said.
“So to date, we’ve raised about $25 million
and the vast majority of that has come out of
the U.S.”
Shoes of Prey received its largest boost of
capital two months ago – $15 million in Series
B funding – to expand its production capability.
Customization is a side of fashion that’s
tough to break into because it’s hard to keep
manufacturing costs low for a series of single
items. Many L.A. companies have set out on
that path only to quickly stumble, such as now-
First step
Jodie Fox said she started custom-making
shoes only for herself.
“I was looking for shoes and I just didn’t
love the things I would find,” she said. “I
found someone I could commission shoe
designs with (and) my girlfriends were, like,
‘Oh, my God, where are these shoes coming
from?’ So, I started making shoes for them as
well. I wouldn’t have thought to turn it into a
business.”
But she was convinced to make a business
of it by her now ex-husband, Michael Fox,
who is the company’s chief executive, as well
as former Google Inc. software engineer
Mike Knapp. They found a manufacturer
willing to make custom shoes and launched
in 2009.
They said the company broke even after
two months and hit the million-dollar revenue
mark by 2011. Jodie Fox declined to disclose
current revenue.
Shoes of Prey now has a staff of 200, with
26 working out of its Santa Monica office.
Fox credits the company’s success to its
ability to let customers have almost complete
control over the final product.
“Customization was kind of only in the
realm of the NikeiDs of the world,” she said
of the Nike Inc. service. “And even then it
was just choosing the colors of your shoe,
not having an input into the entire design. So,
we’re kind of leading that charge.”
Customers are able to pick from 12 shoe
shapes, ranging from ballet flats to wedges.
While viewing a 3-D image of their chosen
shape, shoppers can pick from more than 170
fabrics in various shades and textures as well
as add features such as ribbons and tassels.
Prices start at $129. Customers receive their
shoe in four weeks.
Two years ago the company snagged a
Please see FOOTWEAR page 35
Toymaker’s Tablet Deal Plays Well on Wall Street
MANUFACTURING: New
line of Barbies may also lift
struggling Mattel’s stock.
By SUBRINA HUDSON Staff Reporter
El Segundo manufacturer Mattel Inc. is
making room in its toy box.
The company paid out $21 million last
month to win the battle for El Segundo
children’s tablet maker Fuhu Inc., which filed
for bankruptcy in December.
Mattel made the highest offer for the
manufacturer of Nabi tablets, beating out the
opening bid and auction floor of $10 million
set by Australian golfer Greg Norman’s
holding company Great White Shark
Enterprises.
The news helped push Mattel’s stock up 8
percent to $26.97 for the week ended Jan. 27.
Fuhu launched in 2008 with its core
product, a 7-inch Nabi Android tablet for
kids. It gained national attention for its quick
growth and reported revenue of more than
$195 million in 2013. The company ranked
No. 1 on the Business Journal’s list of 100
Fastest Growing Private Companies in both
2013 and 2014.
But Fuhu bottomed out last year,
attributing its Chapter 11 bankruptcy filing to
supply problems with Taiwanese electronics
company Foxconn Technology Group, its
chief supplier and key investor.
The tablet company now joins Mattel’s
portfolio, which includes Barbie, Fisher-Price,
Hot Wheels and American Girl.
Mattel did not respond to requests for
comment.
It’s unclear what the company’s plans are
for Fuhu. But the timing of the acquisition
comes at a tough time for the world’s largest
toymaker as overall sales have been declining
for the past two years.
Mattel’s most recent earnings, for the
quarter ended Oct. 27, showed revenue fell
11 percent to $1.79 billion, missing analysts’
expectations of $1.89 billion.
In addition, sales of Barbie dolls, which
account for about $1 billion in annual revenue,
fell 14 percent to $302 million for the quarter.
However, Mattel last week announced a
new attempt to resurrect Barbie’s image – and
sales – with three new body types – curvy,
petite and tall – added to its Fashionistas
doll line. The new dolls will also have seven
skin tones, 22 eye colors and 24 hairstyles.
Barbie’s perfect figure has long been criticized
for creating a standard that most girls can
never attain.
S e a n M c G owa n , a n a n a l y s t f o r
Oppenheimer & Co. in New York, has mixed
feelings on whether the new offerings will
help revive the iconic doll’s sales.
“I don’t see this as a groundbreaking
Shape Shifters: New line of Barbies.
innovation or capitulation, but why not?” said
McGowan in a statement. “Why not have
multiple representations that expand the brand
and gives fewer people a reason to say no?”
+1 604 278 4604
Higher Up:
Arden Hearing at
Trumark Urban’s
downtown L.A.
sales gallery
next door to
its Ten50 tower.
Looking Up
Trumark Urban moves into downtown L.A.’s
tight condo market with luxury tower project.
T’LL
Homed In
On Market
Figat7th
110
LOS ANGELES
S.
FL
S.
OW
FI
ER
GR
GU
AN
D
ER
AV
OA
E.
Metropolis
S.
view each unit offers. For comparison, the
be months before the
average cost for a new condo in downtown
drone landing pad is installed
was $803 a square foot in December,
to complete construction of
according to the Mark Co. in San Francisco,
downtown L.A. luxury condo
which tracks condo activity in urban areas.
tower Ten50, but potential
Ten50 will include an elaborate amenity
buyers are already swarming the
deck on the sixth floor complete with a
building.
screening room, private dining
In fact, well
room plus conference and
over 1,000 people
fitness centers. One of the
have registered
LABJ POLL
finishing touches will be a
interest to buy one of the 151
drone landing pad, to provide
units being built at 1050 S.
Would you live in DTLA?
a place for online shoppers
Grand Ave.
to receive packages, should
Considering the strong
shipping companies such
demand for the complex – the
as Amazon and UPS ever decide to start
first batch of new condos downtown in years
delivering orders via drones.
– it’s probably no surprise that units won’t be
cheap.
Potential buyers
The San Francisco developer behind the
Construction of the 25-story tower won’t
project, Trumark Urban, has given the
be finished until October at the earliest, and
Business Journal the prices exclusively – and
the process of taking deposits has not yet
they’re high.
started. But Ten50 is attracting interest from
A 700-square-foot one-bedroom condo
will start in the low $600,000s while a roughly a wide range of potential buyers, according
to Arden Hearing, Trumark Urban’s
1,000-square-foot two-bedroom unit would
cost nearly $1 million. Several penthouses will managing director.
“It really runs the gamut, but the common
be available that could set buyers back more
thread is just people who want to be
than $5 million each.
downtown,” he said. “It’s not just the people
On average, a luxury condo at Ten50 will
who work at the law firms in the big highcost between $900 and $1,000 a square foot –
rises. It really is attractive to a broad swath
but the price will vary based on the particular
I
By CALE OTTENS
Staff Reporter
Staples
Center
Ten50
Oceanwide
Plaza
Map Area
W.
OL
YM
PI
C
BL
VD
.
1/4 mile
LOS ANGELES
5 miles
+1 604 278 4604
FEBRUARY 1, 2016
of people.”
A sales gallery – complete with vignettes
of kitchen and bathroom layouts and video
renderings of the project – is set to open
Feb. 13 at 1045 S. Olive St., next to the
construction site. Sales, however, won’t start
until April 16.
Until then, Greenland USA’s $1 billion
Metropolis project remains the only new
condo development under construction selling
units downtown. However, while sales have
begun there, the first batch of condos aren’t
expected to be available until December – two
months after Ten50 opens.
That lack of competition is poised to create
even more demand for Ten50, especially from
those who want to move in sooner rather than
later – and prefer to own, rather than rent,
Hearing said.
“We have 10,000 new apartments under
construction but if you want a new condo and
you want to move in this year, you almost
have no options,” Hearing said. “It’s really
an unprecedented imbalance of supply and
demand.”
Short supply
Trumark Urban partnered with the Carlyle
Group, a private equity firm in Washington,
D.C., to buy the land in 2014. But plans for
a 25-story condo tower were in place long
before the joint venture took over.
The site’s former owner, Amir Kalantari,
sought to build his own 151-unit complex,
which he got approval for about a decade
ago. But the housing crash put a damper on
those plans.
Trumark Urban eventually acquired the
rights to the $100 million project. And because
the site was already approved for condos, the
developer has been able to move fast.
The firm broke ground on the project in
March. And by last week, construction crews
were scheduled to begin pouring concrete for
the tower’s 14th floor.
Including those at Ten50, about
1,700 condo units are under construction
throughout downtown and an additional
3,000 are approved, according to Polaris
Pacific, a residential sales and marketing
firm in San Francisco.
Though it’s an increase from the condo
activity seen in recent years, it falls well short
of the 7,750 apartments under construction
and the additional 4,820 approved rental units.
Even older, previously owned condos are
in short supply. In December, for instance,
only 94 units were listed on the market,
according to the Mark Co.
At that rate, if the condos continue to sell
at the same pace, the available homes would
vanish within three months, according to
the firm. A six-month supply is considered a
balanced market, meaning neither the sellers
nor the buyers have an advantage.
The lack of supply is largely because
condo developments – much like the one
previously planned on the site of Ten50 –
came to a halt during the recession. Many
developers and investors saw more value
in the strong rental rates downtown, while
lenders became far less willing to finance
such projects, said Erin Kennelly, director of
research at the Mark Co.
But, she added, that has certainly begun to
change in recent years.
“Over the past 20 years, downtown has
evolved from an edgy alternative for urban
pioneers into one of L.A.’s great residential
neighborhoods,” Kennelly said. “I think
the pendulum will swing back toward
condominium development.”
Strong demand
With nearly 68,600 apartment units
available downtown – and the average asking
rent for a two-bedroom at $2,130 a month,
according to real estate information firm
CoStar Group Inc. – it simply made less
sense for investors to develop condo projects
downtown instead of apartments.
But demand for condos has finally grown
NEWS & ANALYSIS
to the point where it’s much more viable to
build for-sale residences to compete with the
popular rental market.
The average cost for a unit in the
Metropolis megadevelopment – which will
include three towers of condos, a boutique
hotel plus retail and restaurants – is about
$1,100 a square foot.
But perhaps more importantly, the units are
selling.
Of the 308 condo units under construction
in the first Metropolis tower, which went
on sale in April and are expected to be done
by the end of this year, 235 – or 76 percent
– were under contract as of last month,
according to Polaris Pacific. In addition,
since the 520 units in the second tower hit the
market in October, 30 have been claimed.
Meantime, Beijing developer Oceanwide
Real Estate Group plans to add about
500 units to its $1 billion mixed-use large
development Oceanwide Plaza. That project
broke ground in April but its condos have not
yet gone on sale.
On Way Up:
Exterior of
Ten50 luxury
condo building.
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Senior Vice President, Hughes Marino, Inc.
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SAN FRANCISCO
SILICON VALLEY
T E N A N T R E P R E S E N TAT I O N | C O N S T R U C T I O N M A N A G E M E N T | L E A S E A U D I T S E R V I C E S | L E A S E A D M I N I S T R AT I O N
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NEWS & ANALYSIS
FEBRUARY 1, 2016
Prices Often Hottest Topic for Ice-Cream Shops
FOOD: Businesses look to
balance expenses with mix
of low-, high-cost flavors.
By DAINA BETH SOLOMON Staff Reporter
As more gourmet ice-cream shops open
across Los Angeles, the key to success in the
scoop wars is consistent pricing.
Flavors such as olive with goat cheese and
rosemary with butterscotch vary in production
cost but the businesses that are thriving and
expanding say nailing a single price is crucial.
“It would be really confusing for folks
to have multiple prices for the same size but
different flavors,” said Leo Neveux of Neveux
Artisan Creamery on Melrose Avenue. “It’s
not worth doing.”
He knows because he once tried to charge
extra for cherry saffron ice cream because
saffron is pricey, but customers couldn’t
understand the cost bump.
This strategy of keeping prices level across
the board, no matter the expense of a recipe’s
ingredients, appears to have paid off for a
growing number of local artisan ice-cream
parlors.
Sweet Rose Creamery has opened five
shops in five years. Salt & Straw just opened
its second L.A. store and plans to launch two
more this year. Neveux Artisan Creamery is
considering expansion to a second location.
And L.A. Creamery sells pints to various
grocery stores including Albertsons and
Bristol Farms Inc.
Eventually, the cheaper flavors – as long as
they are popular – subsidize the costlier ones.
“We’ll lose on some and win on others,”
said Jon-Patrick Lopez, co-founder of
Wanderlust Creamery, which launched last
summer in Tarzana.
Rolling dice
But there’s always a risk that calculations
will go awry. What if customers shun the
cheaper fare in favor of the most expensive
flavors?
“If everyone comes in and gets pistachio,
we’ll be kind of screwed,” said Lopez.
He needs a pound of Sicilian pistachios
costing $30 to $35 to produce a gallon of
pistachio ice cream, while the earl grey tea
flavor, for example, requires just a few bucks.
Wanderlust and other gourmet parlors
average out costs across their offerings to set
prices. While the world’s largest ice-cream
Heating Up: Employee serves up a scoop at the Venice location of Salt & Straw, which plans to open two more L.A. stores.
chain, Baskin-Robbins, charges $2.49 for one
scoop, or about 4 ounces, artisan shops charge
more for the same size, $3.75 at Neveux, $4 at
Wanderlust, $4.50 at Sweet Rose and $4.90 at
Salt & Straw.
Neveux, who opened his shop in 2011, got
a jump on L.A.’s artisanal ice-cream boom.
Now, he is feeling local competition bite into
his sales and wants to open a second spot. He
said he would keep overheard relatively flat by
operating a single kitchen.
That’s what Salt & Straw has done with its
6,000-square-foot site in Boyle Heights, which
serves both its L.A. locations. From there, nine
people prepare ingredients by hand, laboring
three or four days on each batch before
delivering the final product to Salt & Straw’s
shops in Larchmont Village and Venice.
Salt & Straw, which offers several new
flavors every month along with about a
dozen standbys, plans to double the size
of its kitchen staff when it opens locations
in Studio City and downtown L.A.’s Arts
District later this year.
Co-founder Kim Malek said she didn’t
want to ship ice cream from the company’s
home base in Portland, Ore., where it launched
three shops before branching into Los Angeles.
She wanted instead to create a made-in-L.A.
product – even at a cost of more than $1 million
to open the kitchen.
Picking produce
Some ice-cream makers shape their menus
around the availability of produce from local
farmers who are at the whim of the seasons.
Shiho Yoshikawa of Sweet Rose, speaking
after a trip to the Santa Monica Farmers Market
last week, said she had selected passionfruit,
mangos, guavas, cherimoyas and citruses to
convert into new flavors.
She even uses the peels, trying to squeeze
out as much value as possible from expensive
organic fruits. To make sure she stays on
budget, Yoshikawa plans her flavors a month
in advance.
“We have a very strict labor-costs target
that we adhere to,” she said. “Sometimes it’s
a higher cost and other times it’s a super-low
cost. But I do have to watch that.”
The flavors now sell for $4.50 a scoop, a
price that went up 50 cents this year to account
for increasing cost of ingredients and the rising
minimum wage. Sweet Rose employs 60
people.
Yoshikawa has found that one of her best
sellers – fresh mint chip – is also one of the most
expensive and labor intensive to create. Each
week, the recipe requires 50 pounds of mint
picked and cleaned by hand, mixed with 100
pounds of Guittard chocolate from the Bay Area.
So she can understand the frequent lament
among ice-cream makers – of having invented
a flavor that is pricey yet delicious. They often
say: I wish I never created this flavor, but I have
to do it because it’s so popular.
L.A.’s Ad Tech Firms Connected With Healthy 2015
ONLINE: SteelHouse, others
saw revenue soar with help
of ‘programmatic’ process.
By CALE OTTENS Staff Reporter
Several local advertising technology
companies are posting big gains in sales.
First off, there’s Culver City’s SteelHouse,
which said last week that it estimates its 2015
revenue will add up to $130 million based on
run rate – a jump of 170 percent compared
with its previous year’s total.
Then there’s OpenX of Pasadena, which
announced in January that it generated more
than $140 million in revenue last year, a 40
percent increase compared with the prior
year. Meanwhile, Playa Del Rey’s Rubicon
Project Inc. made more than $64 million in
revenue during the three months ended Sept.
30, doubling its total from the same period a
year earlier, though it’s still not profitable.
Steelhouse, however, has been profitable
since October 2013, according to
Chief Executive Mark Douglas.
“Advertisers are gravitating
to buying ads programmatically
because it’s cheaper and faster,”
Douglas said. “It’s that simple.”
More than 400 brands –
including Foothill Ranch’s Oakley
Inc. and Seattle’s Getty Images –
subscribed to SteelHouse’s services
last year to manage where and how Douglas
they reach consumers online.
The company expects its revenue and
network of customers will more than double
again this year.
“We bring on somewhere between two and
three new brands every calendar day,” said
Douglas. “It’s all about momentum.”
What’s more, Douglas said he plans to hire
86 employees this quarter alone, which would
bring his staff up to about 240.
SteelHouse, OpenX and Rubicon are
among a growing field of ad tech companies
to offer so-called “programmatic” buying
options, which allow advertisers to purchase
digital ads using automated
software that can efficiently target
specific consumers and eliminate
negotiations with human sales
representatives.
The method has quickly
become a driving force in the
advertising industry, according to
a report published last week by
Brian Nowak, an internet analyst
at New York financial services
firm Morgan Stanley.
“The programmatic shift is among the most
powerful trends in online display as advertisers
and agencies look for better real-time price
discovery, a more efficient ad-buying process
and the ability to better link ad spend to actual
transaction dollars,” Nowak wrote.
About 44 percent of digital ads last year were
purchased through some kind of programmatic
service, according to Nowak, who expects that
rate to reach 69 percent by 2020.
Despite the anticipated growth in the
programmatic market globally, it could be
extremely challenging for smaller ad tech
firms to break through. That’s largely because
Facebook Inc. and Alphabet Inc. – Google
Inc.’s parent company – dominate the market,
accounting for a combined 61 percent of the
market last year, according to the report.
But Douglas, who launched SteelHouse in
2010, said he views the tech giants as partners
rather than competitors because his customers
buy a large chunk of their ads from Facebook
and Google.
Plus, Douglas said his programmatic
buying service is merely one component of a
much larger business. The main thing that sets
SteelHouse apart from other ad tech firms is
that it works directly with brands and not just
the team tasked with placing ad orders.
Specifically, brand marketing executives
can use SteelHouse’s software to design and
purchase digital ads, track user engagement and
keep tabs on how the marketing budget is used.
“Media buying has been very focused on
high-volume purchases in the past,” he said.
“We’re focused on providing tools to find the
right audience. We’ve created a new tier in the
advertising space.”
+1 604 278 4604
FEBRUARY 1, 2016
NEWS & ANALYSIS
Online Subprime Lender
Banks on Diverse Hiring
EMPLOYMENT: Women
Z
ESTFINANCE is trying to increase its
employee diversity and the company
wants the world to know why.
“You can do this for moral or political
correctness, but for us diversity matters
because you get more perspective,” said
ZestFinance Chief People Officer Sonya
Merrill. “With more perspective you get better
decisions, which yield better business results.”
The Hollywood firm is a rapidly growing
online subprime lender that uses sophisticated
computer algorithms to assess borrower risk.
As such, the company said it is continually
recruiting employees with technical skills.
Yet, it has also made its mission to recruit
candidates in underrepresented categories
such as women, minorities, veterans
and people with
disabilities.
As part of the
effort to recruit more
women, ZestFinance
announced a familyleave policy last
month, which includes
six months of paid
time off for primary
caregivers, with an
Merrill
option to work part
time for six additional
months with full benefits, as well as three
months of paid time off for new secondary
caregivers.
Women represent 42 percent of
ZestFinance’s 100 employees, but the
company is aiming to push that number to 50
percent by the end of the year.
“It’s hard enough to find that amazing
female engineer in the first place,” said
Merrill. “That is where our family-leave
policy can be very helpful.”
While many businesses balk at the cost of
paid family leave, Merrill said it makes good
financial sense.
“The business case should not be around,
Oh, my gosh, how much is it going to cost to
have this benefit? What companies should ask
is: How much is it going to cost us to not have
this benefit?” she said. “Recruiting, training and
retaining is way more expensive than offering
great benefits up front. A lot of companies are
shortsighted in how they look at it.”
Still, ZestFinance also acknowledges
increasing female representation will be
difficult.
“There are fewer female candidates for
technical roles,” said Merrill. “Dramatically
fewer.”
So instead of looking for women
candidates with specific technical skills, such
as knowledge of the programming language
Ruby, the company looks for candidates
with skills in closely related programming
languages and the aptitude to learn.
“We’ll teach them Ruby and we’ll expect
that they’ll have a three- to four-month
learning curve,” said Merrill. “It requires
you to change your forecasting and hiring
practices a little bit.”
Individuals who are open to developing new
skills also fit into ZestFinance’s culture, she said.
u MOVIE BOX OFFICE
Title
Revenant
Star Wars: Force Awakens
Ride Along 2
Dirty Grandpa
The Boy
5th Wave
13 Hours
Daddy’s Home
Norm of the North
Big Short
Weekend Gross
(millions)
$16.0
14.1
12.5
11.1
10.8
10.3
9.0
4.9
3.8
3.2
Total Gross
(millions)
$119.2
879.1
58.6
11.1
10.8
10.3
32.8
138.5
14.0
56.4
Distributor
20th Century Fox
Disney
Universal
Lions Gate
STX
Sony
Paramount
Paramount
Lions Gate
Paramount
Weekend ended Jan. 24
Source: Rentrak
u PRIMETIME TV SHOWS
Rank
1
2
3
4
5
SILICON BEACH
REPORT
GARRETT
REIM
MEDIAWATCH
Rank
1
2
3
4
5
6
7
8
9
10
engineers particular focus
in hiring for ZestFinance.
Doing Deals: CEO Jonathan Skogmo at
Culver City’s Jukin Media in May 2014.
“At the end of the day women and diversity
candidates want the same things as everyone
else,” she said. “They want the opportunity to
do interesting and challenging work, where
they feel valued and appreciated.”
Jukin Inks HuffPo Deal
Online video firm Jukin Media of
Culver City has signed a deal to supply
licensed user-generated videos to New York’s
Huffington Post.
The company will provide videos for all
15 international editions of the news website.
Jukin will also work with HuffPo editors to
provide user information and story notes,
including first-hand accounts from the owners
and stars of the videos.
Jukin, headed by founder and Chief
Executive Jonathan Skogmo, scans websites
such as YouTube looking for potential hits it
can license. The company’s software alerts
its broadcast partners about what new content
might be a good fit for their shows so that
the producers don’t have to do research on
their own. The company has long licensed
popular viral clips for television, such as a
video of a car crashing on an icy road, a valet
driver taking a Ferrari for a joy ride and a
flight attendant helping a woman give birth
midflight.
“Huffington Post covers a lot of topics
and luckily we curate content across dozens
of categories from viral videos to kids, pets,
weather, world events, etc., so we’re uniquely
positioned to service their team,” said Chief
Growth Officer Cameron Saless. “Because
this deal is also global in nature we can expect
to also cater our acquisitions to local markets
with feedback from their editorial teams.”
Using other people’s content to generate
traffic has been a hit strategy for other viral
media-focused companies, such as BuzzFeed
of New York. The deal with Jukin is part of
Huffington Post’s effort to scale back live
video, partly in favor of lower-cost licensed
content that plays well on social media.
Rebooting
Tongal of Santa Monica, a crowdsourced
content studio that connects independent
filmmakers with brands, has named Amanda
Malko chief marketing officer. Malko
previously was chief marketing officer at New
York marketing agency 360i. … Software
services company Akana Inc. of Brentwood
has named Mark Tapling chief executive.
Tapling was previously chief executive of
PacketVideo, a San Diego company that sells
multimedia software to wireless operators.
Program
NFC Championship (Arizona vs. Carolina)
NFC Championship Postgame
X-Files
NCIS
American Idol (Thurs.)
Network
Fox
Fox
Fox
CBS
Fox
Rating*
20.0
11.5
7.8
3.1
3.0
Source: TVbytheNumbers.com
*In millions of viewers; 18-49.
u CABLE TV SHOWS
Rank
1
2
3
4
5
Program
NBA Basketball (Golden State vs. Cleveland)
Love and Hip Hop
Gold Rush
Toni Braxton: Unbreak My Heart
WWE Monday Night Raw
Network
TNT
VH1
Bravo
Lifetime
USA
Rating*
1.9
1.9
1.8
1.7
1.7
Source: TVbytheNumbers.com
*In millions of viewers; 18-49.
u TOP SELLING ALBUMS
Rank
1
2
3
4
5
Last Week
New
2
3
1
5
Artist
Panic! at Disco
Adele
Justin Bieber
David Bowie
Twenty One Pilots
Title
Death of Bachelor
25
Purpose
Blackstar
Blurryface
Label
WEA/Fueled by Ramen
Columbia
Def Jam
Columbia
WEA/Fueled by Ramen
Week ended Jan. 29
Source: Billboard.com
u DVD RENTALS
Rank
1
2
3
4
5
Title
Sicario
Minions
Hotel Transylvania 2
Ted 2
Maze Runner: Scorch Trials
Distributor
Lions Gate
Universal
Sony
Universal
20th Century Fox
Week ended Jan. 17
Source: Rentrak
u DVD SALES
Rank
1
2
3
4
5
Title
The Martian
Star Wars Trilogy
Star Wars Prequel Trilogy
Sicario
Distributor
Fox
Sony
20th Century Fox
20th Century Fox
Lions Gate
Week ended Jan. 17
Suggested Retail
$29.98
30.99
95.90
95.90
29.95
Source: Rentrak
u VIDEO ON DEMAND
Rank
1
2
3
4
5
Title
The Martian
Sicario
The Visit
Hitman: Agent 47
Week ended Jan.17
Distributor
Fox
Sony
Lions Gate
Universal
20th Century Fox
Source: Rentrak
u OUTTAKE OF THE WEEK
TRUTH STILL OUT
THERE
Fox’s revival of sci-fi drama
“The X-Files,” with Gillian
Anderson, unearthed big
ratings in its return – with
a little help from its playoff
football lead-in. The numbers
have already sparked
speculation that the network
may conspire to keep the
show on the air beyond this
six-episode run.
Staff reporter Garrett Reim can be reached at
[email protected] or (323) 5495225, ext. 232.
+1 604 278 4604
NEWS & ANALYSIS
FEBRUARY 1, 2016
Downtown Renaissance Coming In on the Money
ECONOMY: Area boosters
#DTLA
tout bright financial picture
beyond pricey real estate.
OMAR SHAMOUT
D
L.A.’s renaissance has
spread well beyond residents moving
into high-price apartments and is now
boosting the entire economy.
That’s the conclusion of a report from
Westchester’s Beacon Economics released
late last month at a downtown economic
summit sponsored by the Central City
Association and the Downtown Center
Business Improvement District.
The report notes that downtown’s growth
in employment, construction permits, total
property value and office-space absorption
have all outpaced other areas of the city and
Los Angeles County.
“The whole downtown area is on
the rise,” said Christopher Thornberg,
founding partner of Beacon and the principal
author of the report. “Sure, restaurant and
hotel employment has been growing like
gangbusters, but there’s also been steady
growth in professional services, technology
firms, insurance and other sectors.”
Among the eye-popping statistics from
the report: Total annual gross receipts from
downtown businesses reached $28.9 billion in
2013, up 25 percent from 2006; total assessed
property value reached $24.8 billion as of
June of last year, up a whopping 72 percent
from 2006; and the median price of a condo
downtown was $531,000 in 2014, 25 percent
higher than the rest of the county.
Thornberg said the only weak spot amid
all the positive trends is the lack of a high-end
retail district.
“Downtown New York has its Fifth
Avenue, downtown Chicago its Michigan
Avenue, but downtown L.A. still has no
“At the end of the day, I’ve met so many
great people doing interesting things out
there,” Demby said about Los Angeles. “Food,
clothing, making interesting design products,
doing interesting things with nonprofits,” he
said. “Even the real estate developers have
interesting ideas.”
OWNTOWN
Growing Scene: Home of Alameda Produce Market near the Arts District.
equivalent,” he said. “That’s the next thing
they have to put downtown.”
Separately, the Downtown Center BID
released the results of its fifth annual survey
of more than 3,800 area residents, workers
and consumers-visitors. Among the findings:
80 percent believe downtown is moving in the
right direction; the median household income
of the respondents is $99,000, nearly twice the
countywide median; and more than 80 percent
of respondents said it was important to them
to either live close to or shop close to where
they work.
“We found a community knowledgeable
and passionate about DTLA – educated,
affluent and active individuals with a broad
belief that DTLA is moving in the right
direction,” said Carol Schatz, chief executive
of the business improvement district.
Flea And Food
If retail is what’s missing downtown, help
could be on the way.
New York’s Atlas Group and Runyon
Group of Culver City are redeveloping
Alameda Square, a 30-acre complex south
of the Arts District, into what they’re calling
Row DTLA, which is expected to open this
summer. The massive project will consist
of 100 merchants, 15 restaurants, about 1.3
million square feet of creative office space as
well as eight gardens and large open spaces
for cultural programming.
And the development just got another big
boost. Smorgasburg, an extremely popular
New York flea and food market that will make
its first appearance on the West Coast. The
open-air market will occupy five acres within
the more than 421,000-square-foot Alameda
Produce Market complex. It will feature more
than 100 vendors from the worlds of design,
craft and food every Sunday beginning June 19.
But the wholesale produce market’s
grittiness won’t completely vanish, said Eric
Demby, Smorgasburg’s co-founder.
“I think maybe some cosmetic
improvements, interesting tents, pop-ups for
the day to make it feel more like a market, to
make it feel more sophisticated,” said Demby
of his and co-founder Jonathan Butler’s
plans. “Nothing drastic.”
Demby said the duo envisions having as
much success with the L.A. venture as they’ve
had with two similar markets in Brooklyn, the
first of which launched in 2011. The East Coast
versions often draw more than 10,000 visitors.
New CEO on Skid Row
Skid Row’s Midnight Mission has a new
chief executive.
G. Michael Arnold took over the position
and joined the nonprofit’s board this month
after the retirement of Larry Adamson, who
had served as chief executive for the past 18
years. Adamson will remain on the board.
Arnold, who is only the fourth leader
of the 102-year-old human services
organization, had previously served as
the executive director of the Los Angeles
Homeless Services Authority.
Midnight Mission is funded by public
donations and provides more than 1 million
meals each year to homeless individuals and
families, along with numerous short- and
long-term support services.
“I look forward to working with the
outstanding board of directors and staff of the
Midnight Mission, and with the community
at large as we all work together to end
homelessness in Los Angeles,” said Arnold in
a statement.
Staff reporters Howard Fine and Natalie
Schachar contributed to this column. #DTLA
is compiled by Managing Editor Omar
Shamout. He can be reached at oshamout@
Boutique Firm Rules in Favor of Youthful Hires
STAFFING: Wilkinson Walsh
founders hope to make their
case with younger associates.
N
boutique law firm Wilkinson
Walsh + Eskovitz is banking on
youth. While all six of the firm’s
founding partners are under the age of 53,
they don’t lack for experience, having together
tried more than 100 cases to verdict.
EW
LAW
OLGA GRIGORYANTS
“We represent a new generation of legal
talent, with formidable trial experience and
skills,” said Sean Eskovitz, 45, who will be
the sole member of the firm’s L.A. office.
Eskovitz said he is working out of his home
for the time being but looking for office space
on the Westside.
The firm’s five other partners will work in
Washington, D.C.
All of them are on the lookout for
associates to join the team.
“We are uniquely situated to empower
younger attorneys,” added Eskovitz, who
successfully defended Philip Morris USA in
a consumer class-action suit involving “light”
cigarettes while serving as a litigation partner
at downtown L.A.’s Munger Tolles & Olsen.
Another founder, Alexandra Walsh, noted
that the practice is also one of the first top trial
firms launched by two women.
counsel for Covington and
Burling, also in Washington.
Some of the firm’s
clients include the National
Football League, Major
League Baseball, Pfizer,
Altria, Medtronic and
Koch Industries subsidiary
Georgia-Pacific.
Pro Bono Boost
Leading litigator
Linda Smith of DLA
Piper became nationally
recognized for representing
high-profile clients such
as Paramount Pictures
Fresh Firm: Wilkinson Walsh + Eskovitz’s six founders. and Warner Bros.
Entertainment Inc.
But her current clients are reluctant to even
“That gives us a new and critical
include their names in a lawsuit because they
perspective in serving our clients, mentoring
entered the country illegally.
younger lawyers and running a law firm,” she
“The reason we wanted to get into the case
said in a statement.
is because illegal immigrant moms would not
Walsh and Beth Wilkinson both left the
have an ability to be heard otherwise,” said
Washington office of Paul Weiss Rifkind
Smith, who is a mother of two children. “Even
Wharton and Garrison before launching
disclosing their names would result in their
Wilkinson Walsh. Together they won cases
deportation.”
for health care giant Pfizer Inc., tobacco
Smith is representing immigrants, including
conglomerate Altria Group Inc. and Internet
families from Los Angeles, in a case known as
firm Kynetic. Wilkinson was also a lead
Deferred Action for Parents of Americans and
prosecutor in the case against Oklahoma City
Lawful Permanent Residents, which concerns
bomber Timothy McVeigh.
the legality of President Barack Obama’s
Eric Liebeler, who recently oversaw
executive action to lift the threat of deportation
litigation at engineering and manufacturing
against more than 4 million people.
conglomerate Siemens Corp., will work as
The U.S. Supreme Court has decided to
managing partner of the new firm. Its two
hear the case. If Smith’s side succeeds in
other partners are Brant Bishop, a former
court, immigrants who entered the United
partner at Kirkland & Ellis in Washington,
States illegally and parents of U.S. citizens
and Brian Stekloff, who worked as a special
who are not citizens themselves would be
allowed to live and work in the country legally
provided they haven’t committed any crimes.
Smith pointed out that global law firms such
as DLA Piper can attract national attention to
such issues by taking on high-profile cases.
“It’s important that large firms with money
and resources can handle these cases,” she
said. “You need major law firms to help these
people.”
Partner Promotions
Corporate attorney Christopher R.
O’Brien, a former in-house counsel at Mattel
Inc. and former partner at Polsinelli, has joined
Venable as a partner in the L.A. office. …
Peter Benudiz has joined Sidley Austin as
a partner in the L.A. office and will be a coleader of the firm’s real estate practice. He was
previously with Milbank Tweed Hadley &
McCloy. … Elkins Kalt Weintraub Reuben
Gartside has named Matthew J. Mahan,
Shai N. Halbe and Michael D. Schmitt
partners. … Sue Junn and Raina Richter have
joined Morris Polich & Purdy as partners. ...
Christopher R. O’Brien has joined Venable
as a partner. … Christopher Hazuka has
joined Latham & Watkins as partner from
Orexigen Therapeutics in La Jolla. Hazuka
focuses on advising life-sciences companies
in structuring and negotiating transactions.
Downtown L.A.’s Hueston Hennigan has
promoted Allison Libeu to partner. … Joseph
Byrne and Lauren Stickroth have joined Best
& Krieger, also in downtown, as partners.
Staff reporter Olga Grigoryants can be
reached at ogrigoryants@labusinessjournal.
com or (323) 549-5225 ext. 226.
+1 604 278 4604
FEBRUARY 1, 2016
NEWS & ANALYSIS
NEWS OF THE WEEK
PASSENGER INCREASE:
Los Angeles International
Airport officials have
announced that the airport
saw a second consecutive
year of record-setting
passenger volume. Yearend statistics show the
airport served 74.9 million
passengers in 2015, 6 percent
greater than the 2014 record.
Also, a record 20.7 million
passengers were aboard
international flights, almost
9 percent higher than the
previous year. Last year’s
record 54.2 million domestic
passengers marked an
increase of 5 percent year to
year. Other records were set
in cargo processing, landings
and takeoffs.
The best source for up to the minute local, national and
worldwide business news.
FREE MORNING UPDATE
Prepared by the editors of the Los Angeles Business Journal
and sent to you by e-mail every business day.
Sign up now at www.labusinessjournal.com
NEW GUIDELINES: The
Academy of Motion Picture
Arts and Sciences adopted
new guidelines last week,
including the elimination
of lifetime membership
in Hollywood’s exclusive
professional association. The
New York Times reported that
the new provision is drawing
backlash from longtime
members. The new rules
stipulate that many members
of the 6,200-member film
academy will attain lifetime
status only if they work on
at least a single film in each
of three 10-year periods. The
academy has been criticized
for a lack of diversity among
its Oscar nominations.
Last week’s major news
from labusinessjournal.com
and other sources
OLYMPIC LOCATIONS:
Mayor Eric Garcetti
and Los Angeles 2024, a
nonprofit agency leading
L.A.’s bid for the 2024
Garcetti
Summer Olympics and
Paralympic Games, has
announced that local
universities are playing a
major role in the proposal.
UCLA is the planned
location of the Olympic
Village, where thousands of
athletes, coaches and staff
would be housed during the
games. USC would host
the global press at a media
village on its campus. The
plan to convert a former
railway yard between
the Los Angeles River
and L.A. County-USC
Medical Center, originally
proposed in August, was
shelved due to the high costs
involved with cleaning up
and redeveloping the land,
estimated at $2 billion.
SELLING MANNKIND:
MannKind Corp., a
Valencia manufacturer
of inhaled insulin drug
Afrezza, reportedly is
exploring strategic options,
including the possible
sale of itself, according to
Reuters. Earlier this month,
France’s Sanofi terminated
its agreement to sell Afrezza
for MannKind after poor
sales, and the company’s
stock has since dropped
40 percent. MannKind has
stated that it is developing
a new marketing and sales
strategy and pursuing other
partnerships. It also brought
in a new chief executive,
Matthew Pfeffer, to replace
Alfred Mann, who remains
chairman.
Advertising Feature
People on the Move
ADVERTISING
DeMiero
Saatchi & Saatchi’s fully integrated
premium, luxury and aspirational
brand agency Team One appointed
former Razorfish digital leader
W. Joe DeMiero as management
director. DeMiero brings more
than 15 years of digital expertise
to Team One’s integrated agency
teams, and will focus on innovative
digital integrations.
CONSTRUCTION
Skanska, one of the world’s leading
construction and development firms,
announced Jason Groshart has
been promoted to vice president of
business development for its building
construction unit.
With more than 20 years of
experience, Groshart has spent the
last 10 years with Skanska, most
Groshart
recently as an account manager. A
California native with an extensive
network and knowledge of the Los Angeles and
Southern California markets, Groshart has a diverse
portfolio of project experience in the healthcare,
education, aviation and commercial sectors.
Hirings, awards, promotions and special
accomplishments in local business
INSURANCE
FINANCE
Hub International, a leading global
insurance broker, announced the
promotion of Sara Owens to Senior
Vice President, Engagement, of its
Los Angeles operations. HUB Los
Angeles is a $50 Million operation
with 250 employees, and provides
personal, business and health
insurance and risk services. Owens
Owens
will be responsible for engaging
key constituents including but
not limited to: community leaders, business owners,
professional associations, strategic partners, clients
and employees. In addition, she will aid in identifying
and nurturing insurance brokerage acquisition
opportunities. HUB International congratulates Sara
Owens on her outstanding accomplishments and
contributions. www.hubinternational.com.
1st Century Bank is happy to
welcome Sadegh Farhadi to their
Business Development Team at
the Bank’s headquarters located
in Century City. Sadegh joins the
bank as a Relationship Manager
in the Business Banking Center.
Sadegh has been a member
of Barclay’s Wealth and UBS
Farhadi
Wealth Management, where
he successfully marketed and
managed a portfolio of high net worth clients. For
more information, visit www.1cbank.com.
ENGINEERING
Alyce Morris Winston, CEO and
Founder of The Jeffrey Foundation
announced today that Marvin
Espinoza will be Chief Operating
Officer (COO) as of January 15,
2016. Mr. Espinoza joins The
Espinoza
Jeffrey Foundation with over 20
years of working with children,
youth, families and communities. More recently,
he worked as Senior Program Officer at First 5
LA—a leading early childhood advocate working
collaboratively across L.A. County.
The Jeffrey Foundation has been in the community
for 44 years providing services to children with special
needs and families and the wealth of experience,
leadership, and vision Marvin brings will ensure we
continue with this legacy, said CEO and Founder
Alyce Morris Winston. Mr. Espinoza holds a master’s
degree in education and undergraduate degrees in
child development.
The Jeffrey Foundation’s mission is to improve the
quality of life for special needs and at-risk children
through community-based educational, therapeutic,
recreational, and counseling programs. To learn
more about The Jeffrey Foundation, visit
www.thejeffreyfoundation.com
Orozco
CH2M recently promoted Gerard
Orozco to Key Account Manager of
the Los Angeles office. Mr. Orozco
is one of only seven executives
handpicked to lead the firm’s
most important Los Angeles region
accounts. Mr. Orozco will focus on
cross business opportunities in areas
such as water, transportation, energy,
technology and manufacturing.
LOBBYING
Brandenburg
Brownstein Hyatt Farber Schreck
is pleased to announce its
newest policy director, Katherine
Brandenburg, who joins its
Sacramento office. A veteran lobbyist
and trusted public policy advisor,
Brandenburg has more than 30
years of experience in the political
arena, including 20 years as an
advocate in the California State
Capitol.
REAL ESTATE
Lombard
Kenneth T. Lombard, formerly vice
chairman, partner and head of
investments for Capri Capital Partners,
LLC, has joined MacFarlane Partners
as president. At MacFarlane Partners,
Lombard will lead the company’s
real estate investment management
business, serve on its investment and
senior management committees, and
assist with its expanding real estate
development business.
NONPROFIT
The Jeffrey Foundation Hires Chief
Operating Officer
ACCOUNTING
Zarney
Olga Zarney, CPA, MST, is now a
Senior Tax Manager at NSBN LLP,
CPAs & ADVISORS. Olga provides
tax compliance and planning for
individuals, real estate professionals,
partnerships, closely-held businesses,
corporations and nonprofit
organizations. She also advises on
trust, estate, and gift tax returns.
NSBN will be moving soon from
Beverly Hills to Century City.
Announce your hirings,
awards, promotions
and other moves.
Contact Rosz Murray
323.549.5225 ext. 215
[email protected]
+1 604 278 4604
TECH’S NE
PHOTO COURTESY OF SONY PICTURES ENTERTAINMENT
+1 604 278 4604
BUSINESS OF ENTERTAINMENT
• FEBRUARY 1, 2016
SPECIAL REPORT
New World: Clockwise
from left, actress Ruth
Connell; lawyer Joe
Calabrese; opera singer
and rock manager
Summer Watson
with Ulyseas; Geffen
Playhouse theater’s
Gil Cates Jr., left, and
Randall Arney; and
film producer John
Cohen, left, with actors
Josh Gad, Peter Dinklage
and Jason Sudeikis.
W STAGES
L
By SANDRO MONETTI
PHOTOGRAPHED BY RINGO H.W. CHIU
OS
Angeles has long been the center of the
entertainment business, but the industry
is having to adapt like never before.
That’s because the digital
age has led to a proliferation of online content, which
is upending the traditional production and distribution
models of media companies.
Over the next few pages, we’ll hear from a range of
successful professionals in entertainment law, film, theater,
TV and music about how they are facing the challenges in
their particular field and staying on top in an era of rapid
innovation and continually evolving technology.
ALSO IN THIS
SECTION:
Interviews with
entertainment
insiders.
The List:
Agents and
distributors.
PAGES 14-19
PAGES 20-21
+1 604 278 4604
SPECIAL REPORT
FEBRUARY 1, 2016
as well as exciting new companies that are
redefining how we’re entertained, such as
Netflix, Snapchat, Maker Studios, Crackle and Hulu, each of which was born here
or has a sizable presence in L.A. Legendary
Entertainment is another great example. It
owns film, television, digital, data analytics
and comics divisions, and just this month
sold a majority stake in the company to China’s Dalian Wanda Group. We’re very proud
that Legendary, a company I’ve advised
since its inception, was chosen by China’s
most forward-thinking media company to
be its first entry into the U.S. entertainment
content market.
What does it say about the industry in
L.A. that China’s biggest bet so far on
the U.S. entertainment industry was a
local company?
The deal speaks to the vibrancy of the Los
Angeles creative and business community as
well as the global appetite and audience for
their content. The bottom line is that clients
from around the world still look to L.A. and
a hometown firm like Latham & Watkins to
handle their biggest deals. L.A. remains the
most sophisticated and interesting place to
practice entertainment law.
How have you personally adapted to
the changes of the digital era to stay
successful?
Making Case for Chinese Market: Joe Calabrese at the Century City office of law firm Latham & Watkins.
Entertainment Law
J
Calabrese works on major entertainment deals around the world out of law firm
Latham & Watkins’ Century City office. Last month, he advised Legendary Entertainment in a deal that saw the Burbank company, which has co-produced and co-financed movie hits such as “Jurassic World” and “The Dark Knight,” sell a $3.5 billion controlling stake to Chinese media giant Dalian Wanda Group. He spoke to the Business Journal
about how the transactions he handles increasingly hinge on negotiating rights across varied
media platforms.
OE
JOE CALABRESE
Advises clients on distribution and
licensing agreements, mergers and
acquisitions and structured finance
transactions.
Clients he has recently represented
include the Hollywood Foreign Press
Association, Warner Bros., San
Francisco Giants and Anaheim Ducks.
Question: How has the rise of
streaming content changed the way
you do business?
Answer: Technology hasn’t just changed
the playing field – it’s become the playing
field. The rise of the digital age has affected
everything we touch from a legal perspective.
Just about every media and entertainment
deal involves a digital application and the
negotiation of rights to exploit content across
platforms. Given the trend toward viewers
making decisions about when and how to
engage with content (as compared to the
need to follow the schedule of a central linear
programmer), the agreements we forge now
speak to when and how content will be delivered and at what price. All sides are adapting
to this new dynamic and we’ve seen some
ground-breaking agreements in our practice.
the-top, Internet-delivered global broadcast
network. Or take the deal for last month’s
Golden Globe Awards, where we spent
more time discussing the social media and
digital rights than the conventional network
broadcast. Nielsen estimates more than 10
million people saw one or more of the 1.7
million tweets sent about the show, coupled
with 18.5 million U.S. television viewers.
I remember being assigned in 1982 to work
on a deal to acquire Andre Blay Home Video.
As a young lawyer who didn’t spend much
time at home, I first had to ask, “What’s a
home video?” But in many ways, it was the
beginning of consumer-controlled consumption of content. That evolved from a rental
model to the sell-through model with the
invention of the DVD, and a whole new set
of economics. Next came VOD and SVOD
on conventional television sets. Today, it’s
smartphones and tablets, and in a few years
we could be using virtual retinal display or
other technologies not yet on the drawing
board. In each case, business and legal teams
need to delve into the economics, rights and
obligations involved in these technologies.
I’ve seen different hot technologies come and
go, but the exercise remains the same.
What is the biggest challenge facing
your area of the business right now and
how do you plan to combat it?
Changing technologies are behind the greatest challenges and greatest opportunities for
legal work in the entertainment business.
Content is flowing in different directions and
consumers are engaging with it in a number
of ways and on a variety of platforms. Place
‘The rise of the digital age has
affected everything we touch from
a legal perspective.’
— JOE CALABRESE, Latham & Watkins
The world is changing very fast and it’s hard
to know what the media landscape is going
to look like in 2018, let alone in 2032.
Can you give some examples?
Is Los Angeles still the entertainment
capital of the world or have these
changes moved a lot of the work
elsewhere?
A year or so ago, we advised the International Olympic Committee in a $7.75 billion
deal with NBCUniversal to broadcast the
Olympics across all television platforms
through the 2032 Games. Now we’re
advising the IOC in developing its own over-
Absolutely yes on L.A.’s standing. Amid
all the technological advances and global
growth of media, Los Angeles has solidly
remained the creative capital of audiovisual
content production. That includes the traditional movie studios and television networks
that against the global backdrop where, for
example, countries like China and India
have a huge potential audience for consuming content and strong ambitions to
be leaders in the entertainment business,
and you can see how our work has gotten
more global and complex. We address the
challenges this creates by focusing on the
business goals of our clients, regardless of
the deal at hand. Where do they want to go
and how do we get them there in the most
efficient, protected and profitable way?
When we answer that question, we’re on a
good path toward a successful deal.
+1 604 278 4604
THE BEST
PLACE IN
L.A. TO SEE
STARS
This is where individuals rise,
and through them, we all do.
See how CSUN graduates impact
the region at CSUN.EDU/RISE
+1 604 278 4604
FEBRUARY 1, 2016
Film
J
OHN Cohen might not be a household
name but the Hollywood movie producer is a megastar in the animation
community. Having produced 2010 blockbuster “Despicable Me” and worked on a
string of other animated hits from “Ice Age”
to “Alvin and the Chipmunks,” he spoke to
the Business Journal about producing one of
2016’s most anticipated films, “The Angry
Birds Movie,” based on the wildly popular
mobile game.
JOHN COHEN
His movie will explain just what makes
the Angry Birds so angry – a question
that players of the game have wanted
answered for years.
He cast Jason Sudeikis, Josh Gad
and Peter Dinklage to voice the main
characters in the film, Red, Chuck and
Mighty Eagle.
“The Angry Birds Movie” will land
in movie theaters May 20. Culver City’s
Sony Pictures Entertainment will be the
global distributor for the film.
PHOTO COURTESY OF SONY PICTURES ENTERTAINMENT
SPECIAL REPORT
Question: How has the way you do
business changed in the digital age?
Answer: So many creative conversations are
held via video conference now. On “Angry
Birds,” our production hub is here in Los
Angeles but we have offices in different cities
and the company behind the game, Rovio
Entertainment, is based in Helsinki. Our
daily editorial sessions, animation-asset reviews and even production meetings include
multiple locations. But the technology we
have in place really makes it feel like we’re
all working under the same roof. With the
time-zone difference, my days usually start
very early in the morning.
What does your job as a producer on
this huge movie involve?
My involvement began with the inception
of the story, which our core creative team
collaborated on starting back in 2012. Then
developing that outline into a screenplay
with our writer, Jon Vitti. Every step of
the process has been a close collaboration
with Rovio and Mikael Hed, chairman of
Rovio Animation, including casting, design
and music. Together with (fellow producer)
Catherine Winder, I assembled the entire
creative and production team and built a
new studio, which is based both in Los
Angeles and Vancouver. The studio houses
our directors, production and character
designers, editorial, storyboard artists and
operational staff. We’ve partnered with
Sony Pictures Imageworks Inc. to do the
animation, and they’re located in Culver
City and Vancouver. My involvement
continues all the way through the marketing and distribution of the film, which is
released in the States in May.
How do you plan to get the game’s builtin audience to see the movie?
“Angry Birds” has been downloaded over 3
billion times, which is a staggering number.
We are always approaching our creative decisions in “The Angry Birds Movie” from the
perspective of the fans. They’re on our minds
through every step of the filmmaking process.
Cartoon Slate: ‘Angry Birds’ producer John Cohen, who has worked on the ‘Despicable Me’ and ‘Ice Age’ film franchises.
We are going to be giving the players of the
games the first access to all kinds of cool new
content over the next few months. Our goal is
to honor the fans’ loyalty and reward them for
continuing to play. The target demographic is
the broad audience with a focus on families,
teens and fans of the games.
How did you get started in the
entertainment business?
My start was film school at New York University’s Tisch School of the Arts. That led
to my first job after college as an assistant to
producer Scott Rudin in New York. Working for Scott was where I really began to
understand the entertainment business – from
creative development to production and marketing. I consider those two and a half years
as grad school.
How did you get involved with the
creation of “Despicable Me”?
After moving to Los Angeles, I worked at
20th Century Fox Animation for seven
years under Chris Meledandri. Our films at
Fox included “Ice Age,” “Robots,” “Ice Age:
Meltdown,” “Alvin and the Chipmunks” and
“Dr. Seuss’ Horton Hears a Who.” In 2007, I
joined Chris at Illumination Entertainment
and one of the first projects we developed
was “Despicable Me.”
How surprised were you by that film’s
huge, franchise-fueling, box-office
performance?
It’s been so exciting to see how passionately
audiences have embraced “Despicable Me”
and the characters from the film. The longevity of the franchise is a testament to the
talent of the creative team that continues to
nurture and develop those characters, led by
Chris Meledandri and others. Having been
lucky enough to play a role in the creation
of a few ongoing franchises, I look forward
as a fan to each new film in the “Ice Age,”
“Despicable,” “Alvin” and “Dr. Seuss”
universes.
What’s the biggest business lesson
you’ve learned in Hollywood?
Hard work and a lot of preparation will
always give you a competitive advantage.
animated projects, the sheer number of films
in the marketplace really puts the onus on
differentiating your film to stand out – having
your own unique comedic and dramatic
sensibility, a concept and characters that can
connect with people around the world, and a
distinct visual style.
What are you doing to overcome that
challenge?
We are always challenging ourselves to
distinguish the film – make the movie as
funny as possible, the characters as compelling and relatable as they can be, and find
opportunities to make the story surprising in
‘Hard work and a lot of preparation
will always give you a competitive
advantage.’
— JOHN COHEN, film producer
The most successful people I’ve met simply
work harder than others. You’ll be much
more productive if you go into meetings and
creative conversations with a strategy and
desired outcome.
new and unexpected ways. I’m a big believer
that passion leads to the strongest creative
results. This movie is truly a passion project
for me and for all of the members of our core
creative team.
animation producers today?
What advice would you offer anyone
going into the entertainment business?
I think the biggest challenge also happens to
be the greatest opportunity – there are a lot of
animated movies currently being created and
released. While there are so many interesting
Be a cinephile. Watch as many movies as
possible. And, when you can, try to see movies in a theater – you can learn so much from
hearing an audience’s reaction.
+1 604 278 4604
SPECIA
SPE
SPECIAL
CIAL
L REPO
R
REPORT
EPORT
RT
FEBRUARY 1, 2016
Otherworldly Influence: ‘Supernatural’ actress Ruth Connell, who saw her number of social media followers skyrocket after joining the CW drama.
Television
E
IGHTEEN months ago, West Hollywood actress Ruth Connell was struggling to get auditions, let alone roles. But everything changed when she was cast as powerful witch
Rowena in the popular CW television series “Supernatural,” quickly becoming a fan
favorite with viewers. Connell, who was born in Scotland, spoke with the Business Journal
about how she’s using social media to boost her profile and business prospects.
RUTH CONNELL
Grew up on her family’s farm in “the
middle of nowhere” in Scotland.
Was a huge fan of U.S. TV shows and
moved to Los Angeles to be part of that
world.
Played Captain Hook on the L.A. stage
in acclaimed 2013 play “Peter Pan: The
Boy Who Hated Mothers.”
Watched 14 episodes of “Supernatural”
back to back over a weekend as
preparation to audition for the show.
Question: How has this job changed
your life?
Answer: It’s wonderful to be a solvent
actress. I’m getting paid to do what I love and
have trained hard to do. When I read for “Supernatural,” it was my first U.S. TV audition
in over two years. It was with lovely casting
director Robert Ulrich, who doesn’t just audition actors from the top-tier agencies, and I
wanted to make that chance count. I’ve had a
few near breakthroughs in my career, this felt
like make or break and it’s gone as splendidly
as I could have hoped for. The people I work
for seem happy with my contribution and I
get messages from our fans from all over the
world. It thoroughly boggles my mind.
How have streaming content and social
media helped you grow that fan base?
Our show has been on for 11 seasons and
we have fans who have watched it from the
start and others who have discovered it much
more recently, largely thanks to “Supernatural” having now appeared on Netflix. Social
mediawise, I’ve gone from pretty much zero
to almost 300,000 followers in 18 months. I
love that William Shatner even tweets about
my character, Rowena, and checks in on me
occasionally to see how I’m doing. I’m always
updating my social media and love interacting with our fans online. It pays dividends in
terms of opportunities in that I’m attending a
convention next month in New Zealand just
as a result of some Twitter interaction.
How can a television series regular like
yourself use their fame to make extra
income?
I’m still trying to work that one out fully!
Via convention appearances is an obvious
answer, with genre shows especially. Also,
through my involvement with the merchandising company Creation Stands, there is
now a Rowena T-shirt. One of the nicest
parts about being involved with the merchandising is that I’m able to help support
the breast cancer charity My Hope Chest
through donating part of the profits and
raising awareness of the practical support
they offer women.
How much do you think about the
business aspect of your showbiz
career?
The business aspect of my career is important
to me. I see it as part of what needs to be done
well so that I can have as many and great artistic opportunities as possible. I’ve produced a
few plays and short films. I hope to direct and
produce more in the future once I have gained
greater experience in front of the camera.
You live in Los Angeles but your show
is filmed in Canada. Why do you, and so
many other local performers, have to
travel there for work?
Partly because the U.S. dollar goes a lot further in Canada by the time you exchange the
sums it would take to make a season of a TV
show or a movie. There are also labor-based
tax incentives in British Columbia where
we shoot. That and there’s lots of space and
great crews. I brought a bit of Canada home
with me by buying my favorite picture – a
painting of a cow that had Canadian maple
leaf material woven into it. I find that uplifting and humorous.
actresses in Los Angeles today?
Oh, Lordy! That we have lived in a patriarchal society for a couple thousand years.
Things are shifting as I hope are our own
glass ceilings. I’m trying to overcome it by
working on myself and my own attitudes and
confidence. Life is an inside job. In a theater
company I used to run my only stipulation
was that there were just as many parts for
women as men. Not more than, just the same
as – equal.
What advice would you offer anyone
going into the entertainment business?
Have as strong a support system around you
as possible, however you build it. Some have
families, some have friends, some have a
shrink. Whatever works.
How has “Supernatural” survived
and thrived for 11 seasons while so
many other shows have fallen by
the wayside?
I feel that the conventions and the relationship
the actors have with the fans has been a big
factor. There is a fantastic production team
who continue to write imaginative, varied
episodes with more than a splash of humor.
The producers’ and writers’ great attitudes
filter down through the ecosystem. I’m just
privileged to have joined in on the ride.
Your character was seemingly killed off
in a recent shock episode. Is this really
the end of Rowena?
They say no one is ever really dead on “Supernatural.” No one is safe either. I can’t say
anything. But it’s nice that a bring-back Rowena campaign has been trending on Twitter.
+1 604 278 4604
SPECIAL REPORT
FEBRUARY 1, 2016
Music
connecting them with the right opportunities
so they control their own careers rather than
waiting to be found. As a manager, nothing
beats nurturing and protecting talent and to
see people’s dreams come true.
UMMER Watson has studied as an
opera singer at London’s prestigious
Royal College of Music, scored a
No. 1 album on the U.S. classical charts and
performed for royalty and celebrities on the
world’s leading concert stages. Now, the
native Englander’s launching the next generation of musical talent in her new home of
Los Angeles. Watson spoke with the Business
Journal about managing up-and-coming
local rock band Ulyseas, whose path to
success she sees running right through L.A.’s
booming tech scene.
How would you describe the current
state of the music scene in Los Angeles?
S
Currently, there is an explosion of events
happening, and it’s such an exciting time here
now that many international artists view L.A.
as the hub of the music industry, not just the
film industry. There’s a melting pot of artists
here. Great new venues are creating the
infrastructure for amazing events, Placido
Domingo is at the L.A. Opera, and now you
have all the tech companies here starting to
work with bands.
What opportunities does the tech scene
in L.A. present for musicians?
SUMMER WATSON
Has sung to an immense TV audience
of 1.3 billion in China.
Was signed to a $1.4 million recording
contract by Sony Classical.
Recorded her album “Summer” at
famed Abbey Road Studios in London.
Question: How and why did you pivot
from singing to management?
Answer: I’m still a singer and performer
first, but I love the business side of things,
too, and, having functioned in both
segments, feel I can advise clients based
on my own experiences and create a plan
for them to execute their talent. It’s about
Venice and Santa Monica is where the tech
world is now meeting the music world. With
the tech scene so strongly established here,
I think it’s an exciting time for musicians to
link their music with different applications.
Tech apps are reaching out to artists like
Ulyseas, who write their own music, to write
music for their content.
performing, which then builds interest for
them to have a strong audience for touring.
Building their own strong social media
profile allows them to create a platform they
can control from both a creative and business
aspect. As for music releases, it is increasingly the trend to have three to six tracks
rather than a typical 12-track album and that
enables artists to release product more often.
What are your future plans for them?
What challenges does all this present
and how are you facing them?
Navigating the never-ending platforms to
create an online presence for artists is a
Artists such as these can attach their music
to film and television and sell their music not
only as performers but as library content.
Meanwhile, with apps such as Periscope and
Meerkat, the world is fascinated with how
people conduct their lives. So now, bands like
my clients have the exciting opportunity to be
filmed creating their music, rehearsing and
We will be launching their EP in the summer, and they will be performing in carefully selected venues throughout Southern
California. Touring is key for a band such
‘Venice and Santa Monica is where
the tech world is now meeting the
music world.’
— SUMMER WATSON, singer and rock band manager
challenge, so I’m building a team from the tech
world who specialize in following trends. I also
talk to other managers and experienced people
in the entertainment business for advice.
How do you make money?
How else can music acts generate
revenue in an era when record sales
are down?
being a fresh experience for the alternative
movement. They’re all good friends in their
20s, and instead of addressing popularity
like many modern artists, they’re authentic
and very much in touch with their own love
and passion for their music, which is very
refreshing in a disposable society. They’re
also dashingly handsome.
By continuing to perform as a classical crossover artist, running my vocal studio, producing new artists who need tracks produced and
released on iTunes, and implementing performance opportunities for my managed acts.
Tell us about the rock group you
manage and why they are a good fit
with you?
Ulyseas is a hard-rock band with many facets
reminiscent of the ‘60s and ‘70s while also
as Ulyseas. Each member of the band writes
and they will be composing for film and television soundtracks. We will be connecting
them with various brands to build their brand
identity. The lead singer, Ray Castro, will
also be modeling internationally.
And your own future plans?
Personally, I will be recording an EP to be
released this spring of 2016, working with a
wonderful young film composer, Taras Tkachenko, with whom I have produced tracks
for other artists. I want to extend my artist
roster, seek out new talent eager to record
and have tracks produced and released. Also
to nurture Ulyseas and to continue coaching
the next generation of talent.
Music Makers: Summer Watson with band Ulyseas.
+1 604 278 4604
SPECIAL REPORT
FEBRUARY 1, 2016
Playing Up Theater: Gil Cates Jr., left, and Randall Arney at Westwood’s Geffen Playhouse.
How can theater generate revenue in
the Internet age?
RA: While part of the charm of theater is that
I’ve since been a big believer in artistically
doubling down at every opportunity.
it is antithetical to digital content, there are
ways in which the live experience might be
enhanced by new technology. Historically,
OW does an old-fashioned form of entertainment such as live theater survive and thrive we have used the program to give each play
in an era when so many consumers stream their entertainment at home and on mobile context, but now we have the ability to reach
out (digitally) to our audiences before and
phones? That’s the challenge being met by the two most senior figures at Westwood’s
Geffen Playhouse. Artistic director Randall Arney, who mainly handles the creative side, and after each production to possibly elaborate on
executive director Gil Cates Jr., who oversees financial matters, spoke to the Business Journal or enhance what they’ve seen. Ideally, digital
media can widen the audience that craves the
about those challenges as the popular theater celebrates its 20th anniversary year.
live experience. More people, more tickets,
more revenue.
your business?
GC: Trying to balance the art and business.
Theater
H
GIL CATES Jr.
RANDALL ARNEY
He was a co-producer on the movie “Jobs,”
in which Ashton Kutcher played Steve Jobs.
He has taught acting and directing at UCLA
and held master classes in Tokyo.
His late father produced the Oscars a
record 14 times.
He was previously artistic director of
Chicago’s Steppenwolf Theatre.
He is a cousin of actress Phoebe Cates.
In addition to overseeing the Geffen’s
creative direction since 1999, he has
directed more than 10 plays there including
the recent “Outside Mullingar.”
He directed an episode of Matt LeBlanc’s
“Friends” spin-off series, “Joey.”
Question: How do you two work as
a duo to keep the Geffen Playhouse
thriving?
Answer: RA: The key is that each must re-
spect the other’s needs and goals. This means
that as the artistic party, I need to exercise a
certain amount of fiscal responsibility, and
as the financial body, Gil must recognize the
need for artistic risk. I think we both strive to
create this balance and we’re having a really
good time and great success working together.
GC: Randy has years of experience both as
a director and artistic director and my experience producing film, television and theater,
and with fundraising, makes a good yin to
his yang. We did disagree about whether we
should put nameplates on the office doors but
we agreed to each pick bigger battles.
Everyone thinks of L.A. as a
movie town, what challenges does
that attitude present to you as
a theater?
GC: It’s a blessing and a curse. Blessing in
that what we do is so unique and that the
shared live experience of seeing a show
on stage can affect you unlike something
on screen. A curse in that the revenue that
comes from the film and television business
most often trumps that of the theater, so
the perception that money equals quality,
like box-office results, can sometimes be
misleading.
GC: I think there is an unexplored path to be
developed here both in terms of audience and
revenue. Sharing theater, streaming theater
and raising the curiosity of thousands, if not
millions of people, while simultaneously keeping what is beautiful about the live experience
in tact … and then hopefully driving new
audiences to come experience it in person.
What was the lowest point of your
career here and how did you turn things
around?
RA: In 2008, after the Geffen underwent a
huge renovation, the bottom fell out of the
economy. Afraid that we were going to have
to close our doors, we were narrowly saved
by a very generous gift from an anonymous
donor. In the wake of that tumultuous time,
we witnessed theaters around the country
select work that seemed safer, or carried
less fiscal risk. Gil Cates Sr., the theater’s
founder, had a completely different point of
view and believed that the only way to thrive
was to continue to stretch ourselves artistically, to take risks, to continue to do plays
with large casts and big designs. He was
entirely right. That was an enormous period
of growth for the Geffen and moved us onto
the national theater scene in a new way.
Taking calculated risks. Also audience
development. Introducing the richness of
theater and keeping it relevant to our current
audience, while building and curating a new
and younger generation of theatergoers.
What are you doing to combat that
challenge?
RA: I think the most effective way to appeal
to young audiences is to tell their stories. We
are focused on cultivating relationships with
young writers who are storytelling in ways
that are representative of their generation of
theatergoers. There’s an element to which we
are responsible for educating our audiences
and introducing them to diverse perspectives.
If we want to continue to expand the body
of work we produce, we have to make sure
our subscribers are invested in that as well,
and that might mean more discussion, more
preparatory materials, any number of ways
of building their desire to see something new
and different.
GC: Broadening our approach and appeal.
Creating a more robust and innovative
social media approach, and looking at ways
to create and generate new content on the
stage and on the Internet. I’m also a fan of
the grass-roots approach to counteract the
more traditional marketing and advertising
approaches.
What is the future of theater in
Los Angeles?
GC: Very bright, very challenging and very
exciting. … I wouldn’t want to be anywhere
else in the world right now.
+1 604 278 4604
SPECIAL REPORT
2
FEBRUARY 1, 2016
THE LIST
THE PACESETTER: Creative
Artists Agency is the largest
talent agency with 415
agents in the L.A. area. The
Century City-based agency
was founded in 1975 and
represents many of the
top actors, directors and
producers in Hollywood
such as Will Smith, George
Clooney, Reese Witherspoon
and Steven Spielberg. It also
has a sports division and
represents athletes such
as soccer star Cristiano
Ronaldo.
ACQUISITION: Last year,
United Talent Agency
acquired the Agency Group,
a music agency that counted
95 total agents in seven
offices worldwide including
Los Angeles, New York, and
London.
RaNK
14%
Commercials
42%
Television
32%
Others
300
’10
’11
’1
’12
’112
’13
’1
’14
’114
*Excludes sound stage and studio back-lot.
Source: FilmL.A. Inc.
Top Executive
• year
• NaMe
fouNded
• titLe
• phoNe
1975 Richard Lovett
President
(424) 288-2000
2
WME
9601 Wilshire Blvd.
Beverly Hills 90210; wmeentertainment.com
216 Oprah Winfrey, Ben Affleck, Denzel Washington, Matt Damon,
Hugh Jackman, Adele, Drake, Mark Wahlberg, Maroon 5,
Martin Scorsese, Tina Fey, Rihanna, Steve Carell, Sam Smith
2009 Patrick Whitesell/Ariel Emanuel
Co-CEOs
(310) 285-9000
3
UNited TaLeNt AgeNcy
9336 Civic Center Drive
Beverly Hills 90210; unitedtalent.com
210 Johnny Depp, Harrison Ford, Owen Wilson, Gwyneth Paltrow,
Judd Apatow, Coen bros., Wes Anderson, Alfonso Cuaron,
Channing Tatum, Angelina Jolie, Delta Air Lines
1991 Jeremy Zimmer
CEO
(310) 273-6700
4
APA
400, 405 & 417 S. Beverly Drive
Beverly Hills 90212; apa-agency.com
188 Gary Oldman, Kim Basinger, Wesley Snipes, Eddie Izzard,
Louis C.K., Lewis Black, Kevin Hart, Aziz Ansari, Amy
Schumer, David Gilmour, 50 Cent, Brand New
1962 James H. Gosnell Jr.
CEO, President
(310) 888-4200
5
ICM PartNers
10250 Constellation Blvd.
Los Angeles 90067; icmpartners.com
150 Beyonce, Ellen DeGeneres, Samuel L. Jackson, Chris Rock,
Shonda Rhimes, Sofia Coppola, Christoph Waltz, Kendrick
Lamar, Jerry Seinfeld, Vince Gilligan, Celine Dion
1975 Board of Directors
(310) 550-4000
6
Gersh AgeNcy
9465 Wilshire Blvd., Sixth Floor
Beverly Hills 90212; gersh.com
90 Kristen Stewart, Werner Herzog, Tom McCarthy, J.K.
Simmons, Patricia Arquette, Drew Carey, John Goodman,
Jeffrey Tambor, Debra Messing, Allison Janney, Adam Driver
1949 Bob Gersh/David Gersh
Co-Presidents
(310) 274-6611
7
ParadigM
360 N. Crescent Drive, North Building
Beverly Hills 90210; paradigmagency.com
80 Julie Bowen, Adrien Brody, Coldplay, Laurence Fishburne,
Mark Harmon, Imagine Dragons, Ed Sheeran, Shailene
Woodley
1993 Sam Gores
Chairman, CEO
(310) 288-8000
8
INNovative Artists TaLeNt & Literary AgeNcy
1505 Tenth St.
Santa Monica 90401; innovativeartists.com
39 WND
1986 Scott Harris
President
(310) 656-0400
9
AbraMs Artists AgeNcy
9200 Sunset Blvd., 11th Floor
Los Angeles 90069; abramsartists.com
34 Jacqueline Bisset, Chandra Wilson, Michael Emerson, Chris
Sarandon, Judith Ivey, Kellie Martin, Ron Liebman, Michael
Richards, Mel Harris, Malcolm Jamal Warner
1977 Harry Abrams
Chairman, CEO
(310) 859-0625
CuNNiNghaM Escott SLeviN Doherty TaLeNt
AgeNcy
10635 Santa Monica Blvd., Suite 130
Los Angeles 90025; cesdtalent.com
22 WND
1967 Paul Doherty
Co-Owner/Head of LA Office
(310) 475-2111
11
KazariaN/Measures/RusKiN & Associates
11969 Ventura Blvd., Third Floor
Studio City 91604; kmrtalent.com
18 Jane Lynch, Adam West, Wink Martindale, Bob Eubanks,
Chuck Woolery, Yvette Nicole Brown, Melissa Peterman,
Steve Yuen, Harry Hamlin, Angela Kinsy
1957 Cynthia Kazarian, CEO
Mark Measures, President
Alicia Ruskin, Sr. V.P.
(818) 769-9111
12
Coast To Coast TaLeNt Group
3350 Barham Blvd.
Los Angeles 90068; ctctalent.com
13 WND
1987 Jeremiah Doryon/Elyah Doryon
Principals
(323) 845-9200
13
AMseL EiseNstadt Frazier & HiNoJosa INc.
5055 Wilshire Blvd., Suite 865
Los Angeles 90036; aefhtalent.com
12 Fred Willard, Danny Trejo, Dee Wallace, Joe Piscopo, Dave
Thomas, Micky Dolenz
1992 Michael Eisenstadt
President
(323) 939-1188
14
Brady BraNNoN & Rich TaLeNt
Los Angeles 90036; bbrtalentagency.com
11 WND
1981 Pat Brannon, President
Daniel Mullenix, COO
(323) 852-9559
15
CLear TaLeNt Group
10950 Ventura Blvd.
Studio City 91604; cleartalentgroup.com
11 WND
2003 Tim O'Brien
President
(818) 509-0121
16
DoN BuchwaLd & Associates INc.
Los Angeles 90048; buchwald.com
11 Juliette Lewis, Joss Stone, Howard Stern, Norman Reedus
1977 Julia Buchwald
President
(323) 655-7400
17
AKA TaLeNt AgeNcy
6310 San Vicente Blvd., Suite 200
Los Angeles 90048; akatalent.com
10 WND
1999 Doug Ely/Mike Abrams/Pamela
Porter, Owners, Agents
(323) 965-5600
18
MavricK Artists AgeNcy
Beverly Hills 90211; mavrickartists.com
10 WND
2011 Brad Diffley
CEO
(323) 931-5555
CoMMerciaL TaLeNt
12711 Ventura Blvd., Suite 285
Studio City 91604;
commercialtalentagency.com
9 WND
1998 Neil Kreppel, CEO
Sheila Di Marco, President
(818) 505-1431
20
SuttoN Barth VeNNari
Los Angeles 90036; sbvtalent.com
9 WND
1978 Rita Vennari
President
(323) 938-6000
21
TaLeNtworKs
3500 W. Olive Ave., Suite 1400
Burbank 91505; talentworksla.com
9 WND
WND Harry Gold
President
(818) 972-4300
22
OsbriNK AgeNcy
4343 Lankershim Blvd., Suite 100
Universal City 91602; osbrinkagency.com
9 WND
1993 Cindy Osbrink/Scott Wine
Owners
(818) 760-2488
23
McDoNaLd/SeLzNicK Associates
953 Cole Ave.
Hollywood 90038; msaagency.com
7 Kenny Ortega, Jamie King, Napoleon & Tabitha Dumo, Mark
Kanemura, Bryan Tanaka, Ashley Everett, George Chakiris,
Shannon Holtzapffel, Alison Holker
2000 Julie McDonald/Tony Selznick
Owners/Senior Agents
(323) 957-6680
24
DattNer Dispoto aNd Associates
10635 Santa Monica Blvd., Suite 165
Los Angeles 90025; ddatalent.com
6 WND
1987 Bill Dispoto, President
Fay Dattner, Founder
(310) 474-4585
MoveMeNt TaLeNt AgeNcy
4605 Lankershim Blvd., Suite 340
North Hollywood 91602; movementagency.com
5 Tina Landon, Liz Imperio, Bonnie Story, Sascha Radetsky,
Glenn Douglas Packard, AC Ciulla, JT Horenstein
2012 Jim Keith
President
(323) 462-5300
25
288
ProfiLe
(partiaL List)
415 George Clooney, Cristiano Ronaldo, Jennifer Lawrence,
Bradley Cooper, JJ Abrams, Lady Gaga, Melissa McCarthy,
Steven Spielberg, Will Smith, Brad Pitt, Reese Witherspoon
34
32
NotabLe CLieNts
• L.A. CouNty
Creative Artists AgeNcy
2000 Avenue of the Stars
Los Angeles 90067; caa.com
38
36
AgeNts
• NaMe
1
Source: California State Bar
Production Days
Number of on-location shooting
days in Los Angeles.*
(in thousands)
AgeNcy
• website
19
12%
Features
Ranked by number of L.A. County agents
• address
10
Screen Shot
The types of shoot days for L.A.
productions through the third quarter.
 NEXT WEEK
The Largest Credit Unions and
Financial Institutions in L.A. County
TALENT AGENCIES
N/A - Not Applicable WND - Would Not Disclose
Note: Information on this list was provided by representatives of the agencies themselves.
To the best of our knowledge, this information is accurate as of press time. While every
effort is made to ensure the accuracy and thoroughness of the list, omissions and
typographical errors sometimes occur. Please send corrections or additions on company
letterhead to the Research Department, Los Angeles Business Journal, 5700 Wilshire
Blvd., Suite 170, Los Angeles 90036. ©2016 Los Angeles Business Journal. This list may
not be reprinted in whole or in part without prior written permission from the editor.
Reprints are available from the YGS Group, (800) 290-5460 ext. 100.
Researched by David Nusbaum
+1 604 278 4604
THE LIST
THE PACESETTER: Universal
Pictures Distribution tops
the list of the largest film
distributors ranked by
domestic box office revenue
with $2.45 billion last year,
giving it 21.3 percent market
share. The studio claimed
the top spot led by “Jurassic
World,” which grossed $652
million domestically. Other
top films included “Furious
7” and “Minions,” which
generated more than $300
million each domestically
last year.
Rank
1
2
3
4
5
6
7
Domestic Dollars
Domestic box office receipts by
year. (in billions)
8
9
11.2
10
10.9
10.6
11
10.33
12
10.00
9.77
’11
’12
’1
Source: Box Office Mojo
’13
’1
’14
’1
’15
’1
MOTION PICTURE DISTRIBUTION COMPANIES
Ranked by total domestic box office receipts for 2015
Distributor
2015 Results
Top-Grossing Film
• name
• box-office receipts1
• name
• address
• films released
• website
• market share
Universal Pictures Distribution
100 Universal City Plaza
Universal City 91608; universalpictures.com
Walt Disney Studios Motion Pictures
500 S. Buena Vista St.
Burbank 91506; disney.com
Warner Bros. Domestic Theatrical Distribution
4000 Warner Blvd.
Burbank 91522; warnerbros.com
Twentieth Century Fox
10201 W. Pico Blvd.
Los Angeles 90035; foxmovies.com
Sony Pictures Releasing
10202 W. Washington Blvd.
Culver City 90232; sonypictures.com
Paramount Domestic Distribution
5555 Melrose Ave.
Hollywood 90038; paramount.com
Lions Gate Entertainment
2700 Colorado Blvd., Suite 200
Santa Monica 90404; lionsgatefilms.com
New Line Cinema Inc.
4000 Warner Blvd.
Burbank 91522; newline.com
Weinstein Co.
345 Hudson St., 13th Floor
New York 10014; weinsteinco.com
Fox Searchlight Pictures
10201 W. Pico Blvd.
Los Angeles 90035; foxsearchlight.com
Focus Features
1540 Second St., Suite 200
Santa Monica 90401; focusfeatures.com
Relativity Media
8899 Beverly Blvd., Suite 510
West Hollywood 90048; relativitymedia.com
$2,445
23
21.3%
2,280
15
19.8
1,603
38
13.9
1,303
24
11.3
966
20
8.4
675
16
5.9
674
27
5.9
337
6
2.9
302
14
2.6
119
11
1.0
118
12
1.0
74
6
0.6
Parent Company
SPECIAL REPORT
FEBRUARY 1, 2016
Top Distribution Executive
• name
• 2015 gross
1
• title
• phone
Jurassic World
$652
NBCUniversal
Star Wars: The Force
Awakens
863
American Sniper
350
Walt Disney Co.
The Martian
227
News Corp.
Spectre
199
Sony Corp.
Mission: Impossible Rogue Nation
195
The Hunger Games:
Mockingjay - Part 2
280
San Andreas
155
Viacom Inc.
Paddington
76
N/A
The Second Best Exotic
Marigold Hotel
33
Insidious Chapter 3
52
News Corp.
The Woman in Black 2:
Angel of Death
27
N/A
1
In millions.
Note: Distributors are ranked by total domestic box-office receipts for the play period Jan.
1, 2015 - Dec. 31, 2015. The information on this list was supplied by Box Office Mojo.
Additional information was provided by representatives of the distributors. To the best of
our knowledge, this information is accurate as of press time. While every effort is made to
ensure the accuracy and thoroughness of the list, omissions and typographical errors
Time Warner Inc.
N/A
Time Warner Inc.
NBCUniversal
Nicholas Carpou
President, Domestic Distribution
(818) 777-1000
Alan Bergman
President, Walt Disney Studios
(818) 560-1000
Daniel Fellman
(818) 954-6000
Chris Aronson
President, Distribution
(310) 369-1000
Adrian Smith
(310) 244-4000
Steve Siskind
President, Domestic Marketing
(323) 956-5000
Richard Fay
(310) 449-9200
Toby Emmerich
President
(818) 954-6000
Erik Lomis
(646) 862-3400
Stephen Gilula/Nancy Utley
Presidents
(310) 369-4402
Jim Orr
(424) 214-6360
Kyle Davies
President, Worldwide Distribution
(310) 724-7700
sometimes occur. Please send corrections or additions on company letterhead to the
Research Department, Los Angeles Business Journal, 5700 Wilshire Blvd., Suite 170, Los
Angeles 90036. ©2016 Los Angeles Business Journal. This list may not be reprinted in
whole or in part without prior written permission from the editor. Reprints are available
from the YGS Group, (800) 290-5460 ext. 100.
Researched by David Nusbaum
We have
one goal:
A world
without
blood cancers.
WJTJU
MMT
P
SH
D
BMTP
P
SD
BMM
)
&
1
4
+1 604 278 4604
22
DATA BANK
u CONVENTIONS
u CALENDAR
Monday, Feb. 1
Public Speaking Lunch Meeting
Sponsor: Broads and Beaus Toastmasters Club
Noon
Palmdale Auto Mall
412 Auto Vista Drive, Palmdale
Free
(661) 974-9904
Friday, Feb. 5
Thursday, Feb. 18
Using Improv to Succeed in Business
Co-Sponsor: LAX Coastal Chamber of Commerce
11:30 a.m.
9100 S. Sepulveda Blvd., Westchester
Free
(424) 290-8745
Connections Luncheon
Sponsor: Sherman Oaks Chamber of Commerce
11:30 a.m.
Panzanella Ristorante
14928 Ventura Blvd., Sherman Oaks
$35
(818) 906-1951
Tuesday, Feb. 9
Outlook on Economy and Monetary Policy
John C. Williams, Federal Reserve of San Francisco
Sponsor: Town Hall Los Angeles
11:30 a.m.
City Club
555 S. Flower St., downtown Los Angeles
$75
(213) 628-8141
• Black College Expo
Feb. 6
(877) 427-4100
Big Social Media Marketing Mistakes
Sponsor: Santa Monica Chamber of Commerce
11:45 a.m.
1234 Sixth St.
Free (Registration required)
(310) 393-9825
After Hours Social Mixer
Sponsor: Pasadena Chamber of Commerce
5 p.m.
ChapCare
455 W. Montana St., Pasadena
$10 (Reservation required)
(626) 795-3355
• JobKoreaUSA Job Fair
Feb. 26
(213) 384-1004
Wednesday, Feb. 10
Project Whispering
Sponsor: RICS
6 p.m.
Ernst & Young
725 S. Figueroa St, downtown Los Angeles
Free
(646) 771-5726
Good Afternoon Long Beach
Sponsor: Long Beach Area Chamber of Commerce
11:30 a.m.
Parkers’ Lighthouse
435 Shoreline Village Drive, Long Beach
$35
(562) 436-1251
Wednesday, Feb. 3
Public Speaking Breakfast Meeting
Sponsor: Bunker Hill Toastmasters
7:30 a.m.
City Club
555 S. Flower St., Los Angeles
Free
(424) 272-0289
Luncheon Alliance
11:30 a.m.
Brookside Golf Club
1133 N. Rosemont Ave., Pasadena
(626) 795-3355
Art of Storytelling for Mediators and Lawyers
Sponsor: California Lawyers for the Arts
5:30 p.m.
Kirkland & Ellis
333 S. Hope St., downtown Los Angeles
$50
(310) 998-5590
Who Is Hiring & How to Land the Job
Sponsor: Challenger Networking Group
Noon
Sumo Asian Buffet
21610 Victory Blvd., Woodland Hills
$12.50 lunch
(818) 992-4270
• LA Cookie Con
Feb. 5-6
(818) 495-5732
• Abilities Expo
Feb. 5-7
(310) 450-8831, ext. 3
• Los Angeles Boat Show
Feb. 25-28
(714) 633-7581
• International Gem & Jewelry Show
Feb. 26-28
www.intergem.com
• L.A. Golf Show
Feb. 27-28
(206) 484-5284
• Beauty Expo
March 12-14
(310) 680-7367
Friday, Feb. 19
Thursday, Feb. 11
House-Flipping Workshop
Sponsor: Flipping Network
Noon
Beverly Hills Bar Association
9420 Wilshire Blvd., Beverly Hills
Free
(323) 365-1004
Breakfast Connection
7 a.m.
Courtyard by Marriott
180 N. Fair Oaks Ave., Pasadena
(626) 795-3355
Thursday, Feb. 4
Networking Lunch
Sponsor: Santa Monica Chamber of Commerce
11:30 a.m.
Seasons 52
1501 Ocean Ave., Santa Monica
$35
(310) 393-9825
Multifamily Wealth Seminar
Sponsor: Berzack Property Investment Advisors
6 p.m.
Sportsmen’s Lodge Event Center
4234 Coldwater Canyon Ave., Studio City
Free (RSVP required by Jan. 22)
(818) 993-0331
Business Introductions
Sponsor: eWomenNetwork Calabasas
9 a.m.
Etiquette Academy
86-B Long Court, Thousand Oaks
$85
(818) 800-0752
Networking at Night
Sponsor: Greater San Fernando Valley Chamber of
Commerce
5:30 p.m.
Valley Presbyterian Hospital
15107 Vanowen St., Van Nuys
$15
(818) 989-0300
Wednesday, Feb. 17
Young Stars: Social Entrepreneurs
Sponsor: thinkLA
6:30 p.m.
Atom Factory
10351 Washington Blvd., Culver City
$55
(310) 876-0650
FEBRUARY 1, 2016
Drone Use for Filmmaking
Sponsor: California Lawyers for the Arts
7 p.m.
Ken Edwards Center
1527 Fourth St., Santa Monica
$25
(310) 998-5590
Trade & Transportation Luncheon
Sponsor: Long Beach Area Chamber of Commerce
11:30 a.m.
Hyatt Regency Long Beach
200 S. Pine Ave.
$50
(562) 436-1251
Monday, Feb. 22
Public Speaking Lunch Meeting
Sponsor: Broads and Beaus Toastmasters Club
Noon
Palmdale Auto Mall
412 Auto Vista Drive, Palmdale
Free
(661) 974-9904
• Home and Garden Show
March 18-20
(951) 681-0644
• WonderCon
March 25-27
www.comic-con.org/wca
• Rug Show
April 3-5
(310) 701-1590
• AutoCon
April 23
www.autoconevents.com
• RuPaul’s DragCon
May 7-8
www.rupaulsdragcon.com
Wednesday, Feb. 24
Network Connection Breakfast
Sponsor: Greater San Fernando Valley Chamber of
Commerce
7:15 a.m.
Braemar Country Club
4001 Reseda Blvd., Tarzana
$30
(818) 989-0300
Calendar listings should be submitted at least
three weeks in advance of the event. Send listings
by email to [email protected] with
• AdultCon
May 14-15
(310) 859-6900
• Ultimate Women’s Expo
May 21-22
(866) 618-3434
• Dwell on Design
June 24-26
www.la.dwellondesign.com
L.A. Convention Center, (213) 741-1151, ext. 5340
u BANKRUPTCIES
Osher and Osher Inc.
16060 Ventura Blvd., #110321
Encino 91436
Chapter: 11
Doc# LA16-10069-MT
File-Date: 01/11/16
Raymond H. Aver
(310) 473-3511
GTS Franchising LLC
P.O. Box 11354
Marina del Rey 90292
Chapter: 11
Doc# LA16-10403-SB
File-Date: 01/13/16
Rachel S. Milman
(818) 528-7700
Georgina LLC
5339 Vanalden Ave.
Tarzana 91356
Chapter: 11
Doc# LA16-10140-MB
File-Date: 01/18/16
Raymond H. Aver
(310) 473-3511
MFPM Inc.
1308 W. Alondra Blvd.
Compton 90220
Chapter: 7
Doc# LA16-10429-RK
File-Date: 01/13/16
Young K. Chang
(310) 229-1234
PAO Inc.
5300 E. Beverly Blvd., #C
Los Angeles 90022
Chapter: 7
Doc# LA16-10476-ER
File-Date: 01/14/16
Liphan A. Lee
(626) 375-9393
Fengschmidt International Inc.
28635 Hazelridge Drive
Rancho Palos Verdes 90275
Chapter: 7
Doc# LA16-10476-RK
File-Date: 01/18/16
Charles J. Brash
(661) 254-5100
JMJ Inc.
224 Mira Mar Ave.
Long Beach 90803
Chapter: 7
Doc# LA16-10636-BR
File-Date: 01/19/16
Caroline A. Dye
(213) 368-5000
Alliance Funding Mortgage LLC
2025 Camden Ave.
Glendale 90025
Chapter: 7
Doc# LA16-10718-SB
File-Date: 01/20/16
Pro-per.
Furniture2Go Inc.
506 W. Broadway, #227
Glendale 91204
Chapter: 7
Doc# LA16-10665-BR
File-Date: 01/19/16
Andrew S. Bisom
(714) 643-8900
Boom Stone Inc.
1237 E. 58th St.
Los Angeles 90001
Chapter: 7
Doc# LA16-10756
File-Date: 01/21/16
John Eom
(213) 568-3256
Chapter 7: a “straight” liquidation bankruptcy involving an appointed trustee to sell all assets by auction or other means to pay creditors and trustee fees.
Chapter 11: a process which allows a business to gain temporary relief from paying debt in order to
attempt a successful reorganization. The debtor remains in control of the business during the bankruptcy and the business continues to function.
Chapter 13: a bankruptcy plan available to individuals whose “income is sufficiently stable and regular
to enable such individual to make payments under a plan.” The debtor makes payments to a trustee
who disburses the funds to creditors.
Involuntary bankruptcy: the debtor is forced into bankruptcy by secured creditors whose claims total
at least $220,000. Involuntary bankruptcy may be filed under Chapter 7 or 11.
AKA: also known as
DBA: doing business as
FDBA: formerly doing business as
FKA: formerly known as
FAW: formerly associated with
+1 604 278 4604
FEBRUARY 1, 2016
MALIBU | 21660 Pacific Coast Highway
3BD/3.5BA | web: 0308526 | $11,750,000
Sunset Strip Brokerage
Jennice Ann Tronciale 310.613.3532
HOLLYWOOD HILLS | 1650 Marmont Avenue
6BD/4.5BA | web: 0027284 | $8,000,000
Beverly Hills Brokerage
Catherine Marcus 310.795.8521
PALISADES | PalisadesCountryEstate.com
7,700 ± sq. ft., .93 ± acre | web: 0343840 | $7,995,000
Pacific Palisades Brokerage
James Respondek 310.488.4400
BEVERLY HILLS | 3200 Toppington Drive
5BD/7.5BA | web: 0308551 | $6,500,000
Tracey D. Clarke, John Giddins 310.666.6365
MALIBU | 3320 Sumac Ridge Road
5BD/5BA | web: 1300149 | $5,750,000
Malibu - Point Dume Brokerage
Michael Gardner 310.699.8428
LOS ANGELES | 2217 Duxbury Circle
4BD/5BA | web: 0308565 | $4,199,000
Marc Noah 310.968.9212
HANCOCK PARK | 248 South Van Ness Avenue
5BD/4.5BA | web: 0286455 | $3,988,000
Los Feliz Brokerage
Bryant, Foreman 323.854.1780
BRENTWOOD | F.L. Wright Auction Feb. 21
web: 0027362 | Est. $2,500,000-3,000,000
B. Sloane 310.786.1844, M. Silver 310.809.4656
WESTWOOD | 10833 Wellworth Avenue
3BD/2BA | web: 0343864 | $1,495,000
Pacific Palisades Brokerage
Tom Hackett 310.400.4140
WEST LA | Exquisite Beloit Beauty
3BD/3.5BA | web: 0355541 | $800,000
Brentwood Brokerage
Shamon Shamonki 310.713.4492
WEST HOLLYWOOD | Pristine Palm Redux
2BD/2BA | web: 0355540 | $665,000
Brentwood Brokerage
Ari Wintraub 310.428.5045
WILSHIRE CORRIDOR | Penthouse with Great Views
3BD/3.5BA | web: 0027367 | $23,000/month
Joan Cohen 310.386.4001
SOTHEBY’S INTERNATIONAL REALTY, GREATER LOS ANGELES BROKERAGES
Beverly Hills | Brentwood | Los Feliz | Malibu | Pacific Palisades | Pasadena | Santa Monica | Sunset Strip
FRANK SYMONS | Executive Vice President/Chief Operating Officer, Western Region | 310.724.7000
sothebyshomes.com/losangeles
Visit onlywithus.com to discover the
benefits available through us alone.
Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used
with permission. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International
Realty, Inc. are independent contractor sales associates and are not employees of Sotheby’s International Realty, Inc.
+1 604 278 4604
THE LABJ STOCK INDEX
FEBRUARY 1, 2016
TRACKING LOS ANGELES AREA COMPANIES
u WEEKLY TOP LOSERS
u WEEKLY TOP GAINERS
MannKind Corp.
California Resources Corp.
$1.2
Kite Pharma
NantKwest
$12.75
$57
$1.75
Jan. 20
$56.29
Jan. 27
$1.05
Jan. 27
$1.22
Jan. 20
$12.48
$0.9
$11.75
$52
$1.25
Jan. 20
Jan. 27
$0.97
Jan. 20
$0.6
1/20
1/22
1/25
1/26
1/20
1/27
1/21
1/22
1/25
1/26
1/20
1/27
TOP TEN LOCAL GAINERS BY PERCENTAGE (with closing prices at least $1)
1/21
1/22
1/25
1/26
1/20
1/27
1/21
1/22
1/25
1/26
1/27
TOP TEN LOCAL LOSERS BY PERCENTAGE (with opening prices at least $1)
Jan. 27
Close
Jan. 20
Close
Price
Change
1-Wk
% Chg.
52-Wk
% Chg.
MannKind Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.05
California Resources Corp.. . . . . . . . . . . . . . . . . . . . . 1.22
Capstone Turbine Corp. . . . . . . . . . . . . . . . . . . . . . . . 1.28
Marathon Patent Group . . . . . . . . . . . . . . . . . . . . . . . 1.81
Second Sight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.66
TrueCar Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.48
Capricor Therapeutics . . . . . . . . . . . . . . . . . . . . . . . . 2.33
VCA Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.10
MRV Communications Inc. . . . . . . . . . . . . . . . . . . . . 11.19
Boingo Wireless Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 6.04
$0.79
0.97
1.05
1.49
4.14
5.83
2.14
47.00
10.31
5.59
$0.26
0.25
0.23
0.32
0.52
0.65
0.19
4.10
0.88
0.45
32.9%
26.0%
21.9%
21.5%
12.6%
11.1%
8.9%
8.7%
8.5%
8.1%
-83.5%
-73.3%
-90.2%
-76.3%
-51.3%
-63.2%
-64.2%
-1.1%
12.5%
-29.0%
Company
$10.79
$10.75
$47
$0.75
1/21
Jan. 27
$48.49
$0.79
u MARKET DIARY
Jan. 27
Close
Jan. 20
Close
Price
Change
1-Wk
% Chg.
52-Wk
% Chg.
Kite Pharma. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48.49
NantKwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.79
A-Mark Precious Metals. . . . . . . . . . . . . . . . . . . . . . 16.01
Puma Biotechnology . . . . . . . . . . . . . . . . . . . . . . . . 43.03
Rentech Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.93
Tutor Perini Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.55
Arrowhead Research Corp. . . . . . . . . . . . . . . . . . . . . 3.64
Simulations Plus Inc. . . . . . . . . . . . . . . . . . . . . . . . . 10.33
Unico American Corp.. . . . . . . . . . . . . . . . . . . . . . . . . 9.44
Staar Surgical Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.54
$56.29
12.48
18.30
47.58
2.12
12.68
3.98
11.25
10.26
7.07
-$7.80
-1.69
-2.29
-4.55
-0.19
-1.13
-0.34
-0.92
-0.82
-0.53
-13.9%
-13.5%
-12.5%
-9.6%
-9.0%
-8.9%
-8.5%
-8.2%
-8.0%
-7.5%
-35.2%
NA
57.0%
-81.0%
-84.2%
-48.5%
-46.2%
60.7%
-19.5%
13.1%
Company
u MARKET INDEXES
Stocks finally gained some ground during the week ended Jan. 27 as crude oil prices reversed course, rising above $30 a barrel.
The Dow Jones industrial average gained 1.1 percent to end the week at 15,944, and the S&P 500 rose 1.3 percent to 1,883. The
Nasdaq slipped 0.1 percent to close at 4,468. The LABJ stock index inched up 0.3 percent, but still ended the week flat at 213,
with 89 stocks advancing and 60 stocks declining. The week’s top gainer, inhalable insulin-maker MannKind Corp., saw its shares
spike 33 percent on speculation that the beleaguered Valencia firm might be looking for a buyer. Santa Monica biotech firm Kite
Pharma Inc. saw its shares sink 14 percent after a small government study showed positive results for a rival cancer therapy.
Jan. 27
Close
Index
Jan. 20
Close
Dow Jones Industrial . . . . . . . . . . . . . . . . . . . . . . .15,944.46 15,766.74
Nasdaq . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,468.17 4,471.69
S&P 500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,882.95 1,859.33
LABJ Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.40
212.77
Point
Change
1-Wk
% Chg.
52-Wk
% Chg.
177.72
-3.52
23.62
0.63
1.1%
-0.1%
1.3%
0.3%
-8.3%
-4.6%
-7.2%
-1.3%
u DIVIDEND YIELD
u MARKET SUMMARY
MOST ACTIVE STOCKS
WEEKLY SUMMARY
VOLUME
Company
Advances . . . . . . . . . . . . . . . . . . . . . .89
Declines . . . . . . . . . . . . . . . . . . . . . . .60
Unchanged . . . . . . . . . . . . . . . . . . . . . .4
New Highs . . . . . . . . . . . . . . . . . . . . . .0
New Lows . . . . . . . . . . . . . . . . . . . . . .7
Walt Disney Co. . . . . . . . . . . . . . . . . . . . . . . . . . 11,205,580
California Resources Corp.. . . . . . . . . . . . . . . . . 10,145,850
Activision Blizzard Inc. . . . . . . . . . . . . . . . . . . . . . 7,526,147
KB Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,827,008
MannKind Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 6,361,247
Dividend Yield
Dividend
Anworth Mortgage Asset Corp.. . . . . . . . . . . . . . . . . .14.6%
PennyMac Mortgage Investment Trust . . . . . . . . . . . .14.5%
TCP Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.9%
Tix Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.0%
Colony Capital Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.6%
Weekly Close
$0.60
1.88
1.44
0.20
1.60
$4.11
12.94
13.27
2.01
16.73
u LABJ STOCK INDEX
LABJ Stock Index, 52 weeks
LABJ Stock Index v. S&P 500, 5 days
LABJ Stock Index v. S&P 500, 52 weeks
250
3.5%
15%
3.0%
12%
240
S&P 500
LABJ Stock Index
2.5%
9%
230
2.0%
220
Jan. 27
6%
1.5%
213.40
3%
1.0%
210
0.5%
200
0%
0.0%
190
-3%
-0.5%
180
S&P 500
LABJ Stock Index
-1.0%
-6%
-1.5%
170
J
F
M
A
M
J
J
A
S
O
N
D
J
-9%
1/20
1/21
1/22
1/25
1/26
1/27
J
F
M
A
M
J
J
A
S
O
N
D
J
Note: The LABJ Stock Index includes all companies on the opposite page and is weighted by market cap.
For more information please contact:
James Hillman, Managing Director (310) 551-7660
Data provided by Bloomberg, a source considered to be reliable. However, the information in this feature may not be complete
and cannot be guaranteed. The information provided in this feature does not constitute the provision of investment advice.
+1 604 278 4604
FEBRUARY 1, 2016
THE LABJ STOCK INDEX
Jan. 27
Close
AeroVironment Inc.
AVAV
Ducommun Inc.
DCO
Flamemaster Corp.
FAME
10.50
0.0%
0.0%
15.4%
22.5
13.2
Teledyne Technologies Inc.
TDY
77.23
0.8%
-12.9%
-21.5%
14.4
2,737.2
Wesco Aircraft Holdings Inc.
WAIR
10.83
4.6%
-9.5%
-17.1%
12.1
1,060.6
1-Wk
% Chg.
YTD
% Chg.
52-Wk
% Chg.
P.E.
Ratio
$24.87
0.5%
-15.6%
-2.6%
14.04
2.0%
-13.4%
-47.9%
Mkt. Cap
Ticker
Jan. 27
Close
1-Wk
% Chg.
Molina Healthcare Inc.
MOH
$54.39
-1.6%
-9.5%
RadNet Inc.
RDNT
5.87
6.5%
-5.0%
WOOF
51.10
8.7%
-7.1%
Mercury General Corp.
MCY
44.80
1.8%
Unico American Corp.
UNAM
9.44
-8.0%
(millions)
Company
Name
68.2
$580.3
40.6
155.6
VCA Inc.
AEROSPACE/DEFENSE
APPAREL
p
YTD
% Chg.
52-Wk
% Chg.
q
TOP LOSERS
P.E.
Ratio
Mkt. Cap
3.7%
19.9
$3,050.3
-27.8%
29.8
270.7
-1.1%
24.2
4,120.8
-3.8%
-23.3%
26.6
2,471.4
-5.5%
-19.5%
NA
50.3
224.6
(millions)
INSURANCE
q
INTERNET
American Apparel Inc. (L)
APPCQ
0.01
-57.2%
-43.3%
-98.3%
NA
2.5
Cherokee Inc.
CHKE
14.30
5.7%
-17.1%
-20.1%
13.8
124.7
Guess Inc.
GES
17.47
0.5%
-7.5%
-12.8%
15.6
1,463.5
Joe’s Jeans Inc.
JOEZ
0.21
18.8%
24.4%
-43.1%
NA
14.4
Skechers U.S.A. Inc.
SKX
27.47
-0.2%
-9.1%
36.4%
18.2
4,292.1
MPAA
32.33
-1.8%
-4.4%
7.0%
19.5
592.2
p
AUTOMOTIVE/PLASTICS/METALS
Motorcar Parts of America Inc.
p TOP GAINERS
TRACKING LOS ANGELES AREA COMPANIES
Ticker
Company
Name
Reliance Steel & Aluminum Co.
RS
53.62
3.6%
-7.4%
0.7%
11.3
3,841.4
Superior Industries International Inc.
SUP
17.88
3.7%
-2.9%
-4.6%
19.8
470.1
US Auto Parts Network Inc.
PRTS
2.67
2.7%
-9.5%
21.4%
NA
91.0
Boingo Wireless Inc.
6.04
8.1%
-8.8%
-29.0%
NA
CRWG
0.02
-7.2%
-29.6%
-74.4%
NA
2.2
J2 Global Inc.
JCOM
69.49
-4.5%
-15.6%
16.8%
26.5
3,371.9
ReachLocal Inc.
RLOC
1.65
5.1%
0.0%
-45.4%
NA
48.5
Rubicon Project
RUBI
13.54
-5.2%
-17.7%
-14.7%
NA
600.9
Spark Networks Inc.
Stamps.com Inc.
p
BIOMEDICAL / PHARMACEUTICAL
LOV
3.35
2.1%
-13.0%
-9.0%
20.6
86.1
STMP
94.94
2.4%
-13.4%
105.1%
30.4
1,576.1
TrueCar Inc.
TRUE
6.48
11.1%
-32.1%
-63.2%
NA
535.8
United Online Inc.
UNTD
10.02
1.2%
-15.0%
-27.8%
11.9
148.5
Virtual Piggy
VPIG
0.19
5.8%
2.8%
-69.4%
NA
21.7
5,438.8
MANUFACTURING
Amgen Inc.
AMGN
150.47
-2.9%
-7.3%
-5.3%
q
Arrowhead Research Corp.
ARWR
3.64
-8.5%
-40.8%
-46.2%
NA
217.0
AVY
59.70
1.2%
-4.7%
14.0%
17.0
p
Capricor Therapeutics
CAPR
2.33
8.9%
-24.2%
-64.2%
NA
37.9
Farmer Bros Co.
FARM
26.98
0.7%
-16.4%
-11.5%
35.0
449.9
Ceres Inc.
CERE
0.25
0.0%
-23.1%
-84.9%
NA
3.7
Jakks Pacific Inc.
JAKK
7.27
-0.1%
-8.7%
19.0%
15.1
162.7
CytRx Corp.
CYTR
1.82
4.0%
-31.3%
-34.1%
NA
121.0
Mattel Inc.
MAT
26.97
8.0%
-0.7%
1.7%
23.8
9,152.4
Immunocellular Therapeutics
IMUC
0.25
-0.1%
-31.0%
-65.0%
NA
22.1
Nova Lifestyle Inc.
NVFY
1.26
-3.1%
-30.0%
-31.9%
12.1
30.3
Kite Pharma
KITE
48.49
-13.9%
-21.3%
-35.2%
NA
2,351.1
OSI Systems Inc.
OSIS
76.25
-5.9%
-14.0%
6.5%
26.1
1,503.8
175.9
q
17.0 114,093.9
WIFI
CrowdGather Inc.
Avery Dennison Corp.
Lion Biotechnologies
LBIO
5.98
4.0%
-22.5%
-26.8%
NA
286.0
Real Industry
RELY
6.25
-0.3%
-22.2%
NA
NA
p
MannKind Corp.
MNKD
1.05
32.9%
-27.6%
-83.5%
NA
450.1
Reed’s Inc.
REED
4.65
2.4%
-13.6%
-14.2%
NA
61.1
q
NantKwest
NK
10.79
-13.5%
-37.7%
NA
NA
876.4
Virco Manufacturing
VIRC
3.11
3.7%
-6.6%
29.6%
9.5
46.6
q
Puma Biotechnology
PBYI
43.03
-9.6%
-45.1%
-81.0%
NA
1,395.7
Ritter Pharmaceuticals Inc.
RTTR
1.29
0.8%
-24.1%
NA
NA
10.1
p
Second Sight
EYES
4.66
12.6%
-20.9%
-51.3%
NA
167.1
q
Staar Surgical Co.
STAA
6.54
-7.5%
-8.4%
13.1%
NA
260.9
Xencor Inc.
XNCR
11.57
-4.3%
-20.9%
-31.9%
NA
468.3
MEDIA/LEISURE/ENTERTAINMENT
Activision Blizzard Inc.
COMPUTERS/PERIPHERALS/ELECTRONICS
p
Emcore
EMKR
5.75
1.0%
-6.2%
10.6%
NA
148.5
Ixia
XXIA
9.69
1.0%
-22.0%
-5.2%
89.4
776.0
MRV Communications Inc.
MRVC
11.19
8.5%
-8.4%
12.5%
NA
78.1
PCM Inc. (L)
PCMI
8.14
-6.8%
-18.0%
-13.1%
23.9
96.8
Qualstar Corp.
QBAK
0.75
11.9%
-2.6%
-46.8%
NA
9.2
Semtech Corp.
-1.8%
-12.0%
66.4%
23.0
24,911.4
4.32
-6.7%
-23.0%
30.9%
13.8
1,553.8
Daily Journal Corp.
DJCO
190.00
4.5%
-5.9%
0.8%
251.7
262.3
Demand Media Inc.
DMD
4.77
-1.2%
-13.3%
12.0%
NA
95.7
DreamWorks Animation SKG Inc.
DWA
25.36
-4.2%
-1.6%
28.0%
NA
2,179.7
DTS Inc.
DTSI
21.20
3.2%
-6.1%
-29.7%
55.6
366.0
Entravision Communications Corp.
EVC
7.33
0.4%
-4.9%
10.7%
24.8
646.0
Global Eagle Entertainment
ENT
10.19
2.1%
3.2%
-34.4%
NA
800.1
Lions Gate Entertainment Corp.
LGF
27.10
-2.1%
-16.3%
-7.6%
28.8
4,027.6
SMTC
18.76
5.5%
-0.8%
-29.8%
52.7
1,217.5
LYV
22.00
2.1%
-10.5%
-13.4%
NA
4,451.7
TAIT
0.99
0.0%
1.2%
-2.0%
NA
5.5
Live Nation Entertainment Inc. (L)
MGM Holdings Inc.
MGMB
76.50
0.0%
0.0%
3.0%
NA
4,114.4
Trio Tech International
TRT
2.55
0.4%
-8.6%
-12.7%
9.8
9.0
Point.360
PTSX
0.83
-3.8%
-6.0%
72.4%
NA
10.4
RDI
10.62
-1.1%
-19.0%
-11.8%
7.5
251.7
521.8
Reading International Inc.
Aecom
ACM
26.04
3.6%
-13.3%
-2.3%
20.2
3,969.9
RealD Inc.
RLD
10.18
-3.1%
-3.5%
-8.9%
NA
Jacobs Engineering Group Inc.
JEC
37.46
1.8%
-10.7%
-4.2%
11.5
4,610.2
Research Solutions Inc.
RSSS
0.54
0.0%
-10.7%
-34.9%
NA
9.9
Tetra Tech Inc.
TTEK
23.91
0.9%
-8.1%
-1.9%
14.6
1,407.8
Salem Media Group Inc. (L)
SALM
3.78
-1.9%
-24.1%
-47.8%
15.4
96.2
Tutor Perini Corp. (L)
TPC
11.55
-8.9%
-31.0%
-48.5%
7.3
566.8
Tix Corp.
TIXC
2.01
1.5%
-6.5%
57.0%
7.2
36.5
Walt Disney Co.
DIS
94.32
1.9%
-10.2%
0.4%
ENERGY/UTILITIES
American States Water Co.
AWR
41.25
2.8%
-1.7%
0.0%
25.2
1,515.0
BNK Petroleum Inc.
BNKPF
0.15
44.3%
-12.6%
-42.7%
NA
23.8
BreitBurn Energy Partners LP
BBEP
0.68
35.5%
1.5%
-90.2%
0.4
144.1
p
California Resources Corp.
CRC
1.22
26.0%
-47.6%
-73.3%
NA
472.8
p
Capstone Turbine Corp.
CPST
1.28
21.9%
-8.6%
-90.2%
NA
21.9
EIX
60.50
2.5%
2.2%
-11.5%
14.2
19,711.6
Edison International
1st Century Bancshares Inc.
FCTY
7.54
0.4%
9.3%
14.2%
A-Mark Precious Metals
American Business Bank
32.8
AMRK
16.01
-12.5%
-15.1%
57.0%
10.0
111.6
AMBZ
31.15
-2.4%
-3.4%
7.6%
16.9
184.9
Anworth Mortgage Asset Corp.
ANH
4.11
5.7%
-5.5%
-21.4%
5.4
411.4
Ares Management
ARES
11.93
6.0%
-7.7%
-38.9%
NA
2,524.4
Air Lease Corp.
p
77.8
q
AL
24.65
1.4%
-26.4%
-29.6%
9.2
Cadiz Inc.
CDZI
5.16
-3.0%
-1.9%
-45.8%
NA
92.2
Electro Rent Corp.
ELRC
8.00
7.5%
-13.0%
-39.6%
29.7
193.0
Korn/Ferry International
KFY
29.79
-0.6%
-10.2%
2.5%
15.3
1,527.9
Marathon Patent Group
MARA
1.81
21.5%
13.1%
-76.3%
NA
26.9
Medbox Inc.
MDBX
0.02
-19.4%
-25.6%
-99.6%
NA
2.6
NetSol Technologies Inc.
NTWK
6.81
5.4%
-12.2%
59.1%
NA
70.3
On Assignment Inc.
ASGN
36.73
-0.1%
-18.3%
5.2%
23.6
1,939.3
RTK
1.93
-9.0%
-45.2%
-84.2%
NA
44.4
Rentech Inc.
Alexandria Real Estate Equities Inc.
ARE
77.82
1.8%
-13.9%
-21.6%
42.6
5,641.7
American Homes 4 Rent
AMH
14.89
0.7%
-10.6%
-11.5%
NA
3,080.6
CBRE Group Inc.
CBG
27.74
-1.0%
-19.8%
-16.5%
16.4
9,269.8
Douglas Emmett Inc.
DEI
28.67
4.4%
-8.1%
-3.1%
79.0
4,208.2
25.26
6.4%
-10.2%
-23.0%
NA
2,260.6
26.00
-4.6%
2.0%
40.9%
12.3
62.0
10.49
6.8%
-14.9%
-13.9%
11.6
968.0
KW
20.10
5.3%
-16.5%
-24.9%
NA
2,301.4
KRC
56.99
5.1%
-9.9%
-24.4%
24.5
5,255.6
LMRK
13.35
0.6%
-8.8%
-20.3%
27.9
241.5
43.67
0.0%
1.2%
-9.2%
21.4
1,553.4
RILY
9.50
-4.5%
-4.0%
-1.0%
13.0
155.1
Bank of Santa Clarita
BSCA
10.05
1.5%
1.5%
8.1%
NA
22.1
BBCN Bancorp
BBCN
14.47
-3.7%
-16.0%
4.8%
12.3
1,151.1
Broadway Financial Corp.
BYFC
1.50
2.1%
-0.7%
16.3%
10.7
43.6
Cathay General Bancorp
CATY
26.73
-1.3%
-14.7%
8.7%
13.4
2,165.2
Hudson Pacific Properties Inc.
HPP
Colony Capital Inc.
CLNY
16.73
2.1%
-14.1%
-34.7%
30.9
1,868.3
Intergroup Corp.
INTG
Commonwealth Business
CWBB
10.85
-2.7%
-7.9%
-7.5%
8.1
87.0
KB Home
KBH
Kennedy-Wilson Holdings Inc.
Kilroy Realty Corp.
CU Bancorp
CUNB
22.19
-3.1%
-12.5%
5.8%
20.1
378.0
East West Bancorp Inc. (L)
EWBC
34.00
-1.7%
-18.2%
-9.4%
12.3
4,892.6
Farmers & Merchants Bank
FMBL
6125.00
-0.4%
-1.8%
2.6%
12.3
801.9
Landmark Infrastructure
General Finance Corp.
GFN
4.02
6.3%
0.8%
-49.8%
NA
104.6
LTC Properties Inc.
LTC
Green Dot Corp.
GDOT
17.18
4.6%
4.6%
-13.3%
19.9
898.1
Hanmi Financial Corp.
HAFC
20.20
-1.5%
-14.8%
-3.8%
11.7
645.9
HLI
23.11
-2.4%
-11.8%
NA
NA
1,511.5
MLGF
23.00
4.3%
4.5%
5.0%
12.3
134.2
Malaga Financial Corp.
Mission Valley Bancorp
MVLY
9.00
-2.7%
0.0%
42.9%
NA
22.5
NCAL Bancorp
NCAL
0.72
60.0%
60.0%
26.3%
NA
1.7
Oaktree Cap Group
OAK
43.15
4.2%
-9.6%
-21.1%
NA
6,644.6
2,504.0
REAL ESTATE
B. Riley Financial Inc.
Houlihan Lokey
18.3 154,839.2
MISC. SERVICES
FINANCIAL SERVICES
q
34.07
CRWN
Taitron Components Inc.
CONSTRUCTION/ENGINEERING
q
ATVI
Crown Media Holdings Inc.
Macerich Co.
MAC
76.39
1.5%
-5.3%
-8.5%
7.5
12,094.7
Marcus & Millichap
MMI
23.58
-1.2%
-19.1%
-33.1%
14.6
875.2
Portsmouth Square Inc.
PRSI
51.07
-1.1%
-2.0%
79.2%
NA
37.5
PS Business Parks Inc.
PSB
84.98
2.5%
-2.8%
-3.3%
17.0
2,295.6
Public Storage
PSA
248.18
3.3%
0.2%
21.3%
41.6
42,973.8
Rexford Industrial Realty
REXR
15.76
1.9%
-3.7%
-5.0%
6175.5
876.0
RESTAURANTS/RETAIL/GROCERY STORES
Pacific Commerce Bank
PFCI
NA
0.0%
NA
NA
NA
29.0
PacWest Bancorp
PACW
36.06
5.6%
-16.3%
-17.8%
12.3
4,334.5
Big 5 Sporting Goods Corp.
BGFV
11.66
6.8%
16.7%
-7.7%
16.6
256.2
PennyMac Mortgage Investment Trust
PMT
12.94
-0.3%
-15.2%
-42.8%
10.1
954.6
Cheesecake Factory Inc.
CAKE
46.24
1.5%
0.3%
-15.1%
19.9
2,274.5
Preferred Bank
PFBC
31.31
3.4%
-5.2%
15.0%
14.3
415.5
DineEquity Inc.
DIN
81.88
1.5%
-3.3%
-24.3%
16.0
1,525.7
TCP Capital
TCPC
13.27
7.4%
-4.7%
-16.6%
8.2
648.5
Smart & Final
SFS
15.45
-4.2%
-15.2%
0.9%
26.8
1,139.2
Wilshire Bancorp Inc.
WIBC
9.98
-2.0%
-13.6%
6.3%
12.5
784.4
SOFTWARE
Cornerstone OnDemand Inc.
CSOD
30.98
-0.8%
-10.3%
-10.1%
NA
1,687.1
Health Net Inc.
HNT
66.15
-0.4%
-3.4%
17.9%
27.9
5,113.0
Guidance Software Inc. (L)
GUID
4.56
-3.6%
-24.3%
-31.9%
NA
139.6
Herbalife Ltd.
HLF
45.19
-2.1%
-15.7%
44.0%
9.5
4,181.6
Simulations Plus Inc.
SLP
10.33
-8.2%
4.2%
60.7%
39.7
175.3
HEALTH CARE
q
NOTES ON STOCK TABLES (H) Stock hit new 52-week high (L) Stock hit new 52-week low (S) Stock split during week
+1 604 278 4604
ECONOWATCH L.A.COUNTY
u GENERAL INDICATORS
Employment (000’s) (Nov.)1 . . . . . . . . . . . . . . .
Unemployment (000’s) (Nov.)1 . . . . . . . . . . . . .
Film production days (3rd qtr.)2 . . . . . . . . . . . .
Bankruptcies
Chapter 7 (Nov.) . . . . . . . . . . . . . . . . . . . . . . .
Chapter 11 (Nov.) . . . . . . . . . . . . . . . . . . . . . .
Latest
period
Previous
period
%± from
previous
period
4,705
284.6
9,510
4,694
295.5
9,396
+0.2%
-3.7%
+1.2%
4,670 +0.7%
400 -28.9%
9,162 +3.8%
1,168
12
1,214
24
-3.8%
-50.0%
1,254
13
$9,367
$24,917
-3.5%
-3.6%
183.8
4.8
-2.2%
-12.5%
183.7
4.3
-2.2%
-2.3%
619.7
710.0
245.7
-3.8%
-11.8%
-0.1%
567.2
658.6
240.5
+5.1%
-4.9%
+2.0%
Trade3
Exports (mils.) (Nov.) . . . . . . . . . . . . . . . . . . . . $9,042
Imports (mils.) (Nov.). . . . . . . . . . . . . . . . . . . . . $24,026
Air cargo4
LAX (Nov.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179.7
Burbank (Nov.) . . . . . . . . . . . . . . . . . . . .
4.2
Container volume5 (000’s)
Long Beach (Dec.). . . . . . . . . . . . . . . . . . 596.4
Los Angeles (Dec.) . . . . . . . . . . . . . . . . . 626.3
Los Angeles CPI (Dec.) . . . . . . . . . . . . . . . 245.4
Year
ago
%± from
year ago
-6.9%
-7.7%
$10,394 -13.0%
$23,789 +1.0%
u REAL ESTATE, continued
Latest
period
Previous
period
%± from
previous
period
Apartments (3rd qtr.)
Gross occupancy . . . . . . . . . . . . . . . . . . . . .
Avg. sq. ft. rent . . . . . . . . . . . . . . . . . . . . . . .
Avg. monthly rent . . . . . . . . . . . . . . . . . . . . .
94.8%
$2.46
$2,088
94.1%
$2.41
$2,041
+0.7%
+2.1%
+2.3%
94.6%
$2.28
$1,939
+0.2%
+7.9%
+7.7%
Office vacancy rates (4th qtr.)
Downtown Los Angeles . . . . . . . . . . . . . .
San Fernando Valley. . . . . . . . . . . . . . . .
Westside . . . . . . . . . . . . . . . . . . . . . . . .
South Bay . . . . . . . . . . . . . . . . . . . . . . .
Countywide . . . . . . . . . . . . . . . . . . . . . .
17.9%
13.0%
13.2%
20.5%
15.5%
18.2%
14.0%
14.5%
21.0%
16.1%
-1.6%
-7.1%
-9.0%
-2.4%
-3.7%
18.7%
13.4%
13.7%
21.6%
16.2%
-4.3%
-3.0%
-3.6%
-5.1%
-4.3%
Industrial vacancy rates (4th qtr.)
Downtown/Central. . . . . . . . . . . . . . . . . .
South Bay . . . . . . . . . . . . . . . . . . . . . . .
Countywide . . . . . . . . . . . . . . . . . . . . . .
2.6%
1.9%
2.2%
2.5%
2.1%
2.5%
+4.0%
-9.5%
-12.0%
2.5%
2.9%
3.0%
+4.0%
-34.5%
-26.7%
Previous
month
%± from
previous
month
Year
ago
%± from
year ago
Year
ago
%± from
year ago
u TOURISM
u REAL ESTATE
Latest
period
FEBRUARY 1, 2016
Previous
period
Construction lending (mils.) (Oct.) . . . . . . . . . $543.7
$313.3
Property acquisition lending6 (mils.) (Oct.). . . . . . . . $2,907.9 $2,968.5
Refinance lending (mils.)7 (Oct.) . . . . . . . . . . . $5,836.1 $5,658.9
Foreclosures
Number (Oct.). . . . . . . . . . . . . . . . . . . . . . . .
331
425
Value (mils.) (Oct.) . . . . . . . . . . . . . . . . . . . . $144.9
$159.1
Building contracts (mils.)
Residential (Nov.) . . . . . . . . . . . . . . . . . . . . . $373.8
$557.8
Nonresidential (Nov.) . . . . . . . . . . . . . . . . . .
$86.0
$802.9
Home sales (Dec.) . . . . . . . . . . . . . . . . . . . . . .
4,612
3,378
Home prices (000’s) (Dec.) . . . . . . . . . . . . . . .
$519
$502
Condo sales (Dec.). . . . . . . . . . . . . . . . . . . . . .
1,461
1,139
Condo prices (000’s) (Dec.) . . . . . . . . . . . . . .
$420
$419
%± from
previous
period
Year
ago
%± from
year ago
+73.5% $234.3 +132.1%
-2.0% $2,779.4
+4.6%
+3.1% $4,748.6 +22.9%
-22.1%
-8.9%
301
$97.8
+10.0%
+48.2%
-33.0%
-89.3%
+36.5%
+3.4%
+28.3%
0.0%
$295.4
$190.2
4,029
$500
1,366
$390
+26.5%
-54.8%
+14.5%
+3.8%
+7.0%
+7.7%
Latest
month
Hotel occupancy rate (Oct.) . . . . . . . . . . . . . . . . 85.3%
Room rate (Oct.) . . . . . . . . . . . . . . . . . . . . . . . . $191.52
Passengers
LAX (000’s) (Nov.) . . . . . . . . . . . . . . . . . . . . . 5,956.6
Burbank (000’s) (Nov.) . . . . . . . . . . . . . . . 337.6
FOOTNOTES
1. Not seasonally adjusted.
2. Music, television, film and commercials quarterly.
3. Through Los Angeles Customs District.
4. In thousands of tons.
82.3%
$185.12
+3.6%
+3.5%
83.9%
$180.73
+1.7%
+6.0%
6,374.5
343.5
-6.6%
-1.7%
5,380.4
325.5
+10.7%
+3.7%
5. 20-foot equivalent unit.
6. Apartment and residential combined.
7. Includes refinancings, second mortgages and
equity mortgages.
BOLDFACE INDICATES UPDATED FIGURES
Sources: California State Employment Development Department (employment figures); FilmL.A. Inc. (film permits); U.S. Bankruptcy Court, Central District of Calif., Los Angeles (bankruptcies); Census.gov (exports, imports); City of Los Angeles Airport
Department (LAX passenger traffic and air cargo); Burbank-Glendale-Pasadena Airport Authority (Burbank passenger traffic and
air cargo); Bureau of Labor Statistics, Los Angeles (Los Angeles consumer price index); Office of Economic Research at California
State University, Redfin (home sales, home prices, condo sales, condo prices); Dodge Data (building contracts); M/PF Research
Inc. (apartments); Jones Lang LaSalle Inc. (office and industrial vacancy rates); PKF Consulting (hotel occupancy rate, room rate).
It’s easier than
ever to find
The Community
of Business.
TM
+1 604 278 4604
FEBRUARY 1, 2016
MERGERS & ACQUISITIONS DECEMBER 2015
RANKED BY VALUE
Announced
Date
Transaction
Status
Merged/Acquired
Business
Business Description
Sellers
Buyers/Investors
Deal Structure
Dec. 12
Announced
Trina Solar Limited,
Changzhou, Jiangsu
Province, China
Integrated solar-power
products manufacturer and
solar system developer in
China, Europe, the United
States, and other Asia Pacific
regions.
Oaktree Capital
Management,
Los Angeles; Franklin
Resources, Inc.,
San Mateo, Jiangsu
Jiuzhou Investment
Group, China
Shanghai Xingsheng
Equity Investment &
Management Co., Ltd.,
China
Acquisition of Majority Stake;
Cash Merger; Going Private
Transaction; Leveraged Buy Out
(LBO); Management Buyout;
Management Participated; Minority
Shareholder Increasing Ownership
Stake
Dec. 3
Announced
American Residential
Properties, Inc.,
Scottsdale, Ariz.
Real Estate Investment Trust
J.P. Morgan Investment
Management Inc.,
New York, S copia
Capital Management,
New York; and others
American Homes 4 Rent,
Agoura Hills
Stock Merger
1,405.5
Dec. 7
Announced
Wilshire Bancorp Inc.,
Los Angeles
Holding company of Wilshire
Bank.
BBCN Bancorp Inc.,
Los Angeles
Merger of Equals; Stock Merger
1,021.2
Dec. 7
Closed
One Channel Center
and adjacent parking
garage
Office property
Ares Management,
Los Angeles;
CV Properties,
Southport, Conn.
Tishman Speyer
Properties, New York
Cash Merger
316.5
Dec. 14
Announced
United Artists Corp.,
Century City
Motion picture producer and
distributor.
Hearst Corp., New York
Metro-Goldwyn-Mayer Inc.,
Beverly Hills
Acquisition of Joint Venture Interests;
Acquisition of Minority Stake; Majority
Stake; Majority Shareholder
Purchasing Remaining Shares
233.9
Dec. 13
Announced
Inventus, Dallas
Litigation support services
Quabbin Capital Inc.,
Boston; Clearlake
Capital Group,
Santa Monica
RPX Corp., San Francisco
Cash Merger
232.0
Dec. 18
Closed
Bank of America Plaza,
Tampa Bay, Fla.
Office building
MetLife Real Estate
Investments, New York
Oaktree Capital
Management,
Los Angeles; Banyan
Street Capital, Miami
Cash Merger
195.0
Dec. 8
Closed
Portfolio of five
properties, France
Real estate
Alpha Pyrenees Trust,
Guernsey,
United Kingdom
Colony Capital Inc.,
Los Angeles
Cash Merger; Cross-Border
155.2
Dec. 1
Closed
Sofitel San Francisco
Bay Hotel, Redwood
City
Hotel
CBRE Global Value
Investors, Los Angeles
Prudential Real Estate
Investors, Newark, N.J.;
Lodging Capital Partners,
Chicago
Cash Merger
154.5
Dec. 18
Closed
Village Lake
Apartments,
Mountain View
Apartment complex
Braddock & Logan
Services Inc., Danville
Colony Capital Inc.,
Los Angeles; Fortbay,
Los Gatos
Cash Merger
145.6
Dec. 9
Announced
149-unit multi-family
apartment complex,
Mountain View
Apartment complex
Lennar Multifamily
Communities, Aliso
Viejo
R&B Realty Group,
Los Angeles; Mapletree
Investments Pte. Ltd.,
Singapore
Cash Merger; Cross-Border
110.0
Dec. 18
Closed
Ilara Apartments,
Milpitas
Apartment complex
Shea Properties Inc.,
Aliso Viejo; Resmark
Apartment Living,
Los Angeles
JB Matteson Inc.,
San Mateo
Cash Merger
102.0
Dec. 3
Closed
Leftfield
Entertainment,
New York
TV production company
ITV Studios America Inc.,
Los Angeles
Acquisition of Minority Stake; Majority
Stake; Majority Shareholder
Purchasing Remaining Shares
100.0
Dec. 6
Announced
Fuhu Inc., El Segundo
Children's electronic tablet
manufacturer
Global Brain Corp.,
Tokyo
Mattel Inc., El Segundo
Bankruptcy Sale; Cash Merger
95.0
Dec. 28
Closed
Three-property
portfolio
Real estate
Griffin Capital Corp.;
Griffin Capital
Essential Asset REIT
Inc., El Segundo
CNL Financial Group Inc.,
Orlando, Fla.
Cash Merger
93.7
Dec. 31
Closed
Allister North Hills
Apartments, Raleigh,
N.C.
Apartment complex
Kane Realty Corp.,
Raleigh, N.C.; Federal
Capital Partners, Chevy
Chase, M.D.
Los Angeles County
Employees' Retirement
Association, Pasadena
Cash Merger
93.5
Dec. 18
Closed
RSM Plaza,
Minneapolis
Office property
Golub & Co., Chicago;
Oaktree Capital Group,
Los Angeles
United Properties Corp.,
East Meadow, N.Y.
Cash Merger
78.4
The chart features the largest deals with disclosed values that involved
sellers, investors or buyers in Los Angeles County. Local companies
and holdings boldfaced.
Value
(in millions)
$2,426.2
All data is provided by S&P Capital IQ, a business unit of the McGraw Hill Financial, Inc. and a leading
provider of multi-asset class data, research and analytics to institutional investors, investment advisers
and wealth managers around the world. For more information visit www.capitaliq.com.
+1 604 278 4604
REAL ESTATE
DONE DEALS DECEMBER 2015
28
FEBRUARY 1, 2016
Major commercial real estate
transactions in Los Angeles County,
including leases and sales.
u OFFICE SALES
Property Address
Property Name
SF/
Bldg. Class
Year
Built
Buyer
Buyer Broker
Seller
Sale Price
(millions)
Seller Broker
604, 650 Pine Ave.
Long Beach
604-650 Pine
190,110
B
2013,
2014
Angelo, Gordon & Co.
6th & Pine Development
9033 Wilshire Blvd.
Beverly Hills
Archway Medical Plaza
49,663
A
1957
UBS Realty Investors
Arch Next 33
Eastdil Secured
75.1
9090, 9150 Wilshire Blvd.
Beverly Hills
Wilshire Palm
132,859
A
1986,
1990
Carlyle Group
LNR Partners
Eastdil Secured
66.5
1023-1031 S Broadway
Los Angeles
ANJAC Fashion Bldg
240,678
B
1925
Onni Group
Highgate Holdings
Eastdil Secured
55.0
425 W. 11th St., 1051 S.
Grand Ave.
Los Angeles
The Desmond + Parking Lot
82,000
B
2016
AEG
Lincoln Property Company
48.5
3452 E. Foothill Blvd.
Pasadena
Gateway Metro Center
121,627
A
1969
Panda Restaurant Group
Inc.
Gateway Metro Center
44.6
83,600
A
1925
1060 Broadway Hotel
30.0
1060 S. Broadway
Los Angeles
$82.5
403 W. 8th St.
Los Angeles
Garfield Office Bldg
102,219
B
1929
Botach Management
23.4
6400 Canoga Ave.
Woodland Hills
Warner Atrium
128,148
A
1981
Kw Warner Atrium
20.6
26650 The Old Rd.
Valencia
Westridge Executive
Plaza
66,253
B
2004
TIC Westridge 1
16.0
SF/
Bldg. Class
Year
Built
420,151
B,C
1972,
74, 77
Ryan
Prologis
Cushman & Wakefield, Inc.
$50.8
3000 E. Via Mondo
Compton
119,919
B
1966
Prologis
Scholle Corporation
Cushman & Wakefield, Inc.
42.8
16400 Knott Ave.
La Mirada
278,000
A
1996
Lanting Family
Knott Avenue Owner Inc.
Intertex Properties
u INDUSTRIAL SALES
Property Address
20500 Belshaw Ave
(11 properties)
Carson
Property Name
Multi-Property Sale
Buyer
3155 Bandini Blvd.
(3 properties)
Los Angeles
Multi-Property Sale
242,589
C
1964,
65, 73
Parkman Holdings
4510 W. Vanowen St. (part of
multi-property sale)
Burbank
Multi-Property Sale
100,000
B
1975
Strategic Realty Investors, Inc.
12623 Cisneros Lane
Santa Fe Springs
Bldg E
125,000
A
2003
Industrial Property Trust
172,420
B
1974
1065 E. Walnut St.
Carson
Buyer Broker
CBRE
Seller
Horowitz Group
Sale Price
(millions)
Seller Broker
34.9
CBRE
22.0
Young Industrial Properties
LLC
Heger Industrial
20.1
Mia's Fashion Mfg.Co. Inc.
Heger Industrial
18.2
Rexford Industrial
Asset Management
Consultants Inc.
CBRE
16.7
5200 S. Alameda St.
Vernon
Sara Lee
125,643
C
1989
5252 Alameda St.
Earthgrains Vernon
16.7
8830 E. Slauson Ave. (part of
multi-property sale)
Pico Rivera
Peterbilt
59,569
C
1971
Rush Truck Centers
Lateer Family Trust
14.3
128,176
C
1985
Alere Property Group
IDG
14.1
7261-7271 E. Slauson Ave.
Commerce
+1 604 278 4604
FEBRUARY 1, 2016
REAL ESTATE
u MULTIFAMILY SALES
Property Address
Property Name
Building
SF
Year
Built
Buyer
Buyer Broker
Seller
Sale Price
(millions)
Seller Broker
21021 W. Erwin St.
Woodland Hills
The Motif
474,000
2015
TruAmerica Multifamily
Warner 2 D/E/P
4735 Sepulveda Blvd.
Sherman Oaks
The Grand
271,757
1988
Alliance Residential Co.
Northwestern Mutual Life
Insurance
81.0
28100 Smyth Drive
Valencia
Hills of Valencia
273,936
2003
Sentinel Real Estate Corp.
IMT Capital Valencia
62.9
26705 Bouquet Canyon Road
Santa Clarita
Bouquet Canyon Senior
256,086
1999
Vintage Housing
Bouquet Canyon Seniors
36.0
10435 Lindley Ave.
Northridge
Village at Granada Hills
149,400
1970
FSC Realty
Granada Hills Associates
1915-1945 Batson Ave.
Rowland Heights
Rowland Heights Terrace
133,632
1973
2132 Blossom Lane
La Verne
Shadow Mountain
78,856
1972
NNC Apartment Ventures
390-400 N. Madison Ave.
Pasadena
The Bungalows on
Madison
44,935
1955
Winstar Properties Inc.
7,352
1910
Olymptern Property
57,062
1969
Building
SF
Year
Built
975 S. Manhattan Place
Los Angeles
Sherman Oaks
Century House
Moran & Company
$163.0
Madison Partners
34.2
Rowland Heights
Preservation
Marcus & Millichap
23.0
Redfern Family Trust
Marcus & Millichap
16.8
NNC Madison
Marcus & Millichap
15.9
15.7
Keller Williams Commercial
Santa Monica
15.6
u RETAIL SALES
Property Address
Property Name
Buyer
Buyer Broker
Seller
Seller Broker
Sale Price
(millions)
400 N. Rodeo Drive
Beverly Hills
Chanel S.A.
11,500
1955
Chanel Inc.
Rodeo-Brighton
312 Arizona Ave.
Santa Monica
Third Street Promenade
52,981
1924
American Realty Advisors
Criterion Santa Monica
21851-21857, 21737-21841
Ventura Blvd.
Woodland Hills
Warner Plaza
92,828
1975,
1990
Retail Opportunity Investments Corp.
Plaza International
76.3
10,911
1941
1718 Vine St.
38.2
79,224
1975
HCP Burbank Towne Center
35.2
8500 Fallbrook Ave.
Canoga Park
22,400
1920
Village At The Valley
Condos I
28.0
6301-6327 Laurel Canyon
Blvd.
North Hollywood
60,304
1965
Sf1 Valley Plaza-North
Hollywood
27.0
31,207
1991
Duesenberg Investment Co.
25.3
5251 E. Second St.
Long Beach
13,688
1950
Khedr Family Trust
7500-7516 Melrose Ave.-Los
Angeles
15,921
1997
M. David Family Holdings
Melrose
1714-1718 N Vine St.
Los Angeles
3800-3830 W. Verdugo Ave,
511, 513-537, 551
N. Hollywood Way
Burbank
2384-2390 Westwood Blvd.
Los Angeles
Burbank Tower Center
The Westside Center
Balboa Retail Partners
Par Commercial Brokerage
Inc.
5251 Associates Ltd.
$152.0
Eastdil Secured
96.3
CBRE
20.5
FEFOS
19.8
+1 604 278 4604
REAL ESTATE
FEBRUARY 1, 2016
u OFFICE LEASES
Property Address
Property Name
Tenant
Tenant Broker
Owner
Owner Broker
SF
Leased
The Water Garden
2425 Olympic Ave.
Santa Monica
Sony
Savills Studley
JP Morgan Chase
CBRE
62,000
City National Plaza
515 S. Flower St.
Los Angeles
Boston Consulting Group
JLL
CommonWealth Partners
CommonWealth Partners
45,476
L.A. Corporate Center
1200 Corporate Center
Monterey Park
Synermed
CBRE
Equity Office
Charles Dunn
40,742
Santa Monica Business Park
2850 Ocean Park Blvd.
Santa Monica
Tennis Channel
JLL
Equity Office
CBRE
28,510
L.A. Corporate Center
1200 Corporate Center
Monterey Park
AT&T Services Inc.
C&W
Equity Office
Charles Dunn
26,619
KPMG Center
550 S. Hope St.
Los Angeles
Gilbert, Kelly , Crowley & Jennet
LBA Realty
CBRE
21,896
South Bay Centre
1515 West 190th St.
Gardena
Maxim Healthcare Services, Inc
C&W
Equity Office
CBRE
19,762
The Water Garden
1620 26th St.
Santa Monica
Allsteel
JLL
JP Morgan Chase
CBRE
16,440
Broadway Plaza
425 W. Broadway
Glendale
Transportation Insurance
Brokers
NGKF
12777 W. Jefferson Blvd.
Playa Vista
Facebook
15,870
Vantage Property Investors
LA Realty Partners
15,000
u INDUSTRIAL LEASES
Property Address
Property Name
20301 E. Walnut Drive
City Of Industry
Tenant
Tenant Broker
Owner
Owner Broker
SF
Leased
Furniture of America
Lee & Associates
Misco Distribution
Heger Industrial
350,000
Maran Inc.
Sperry Van Ness
CBRE Global Investors
CBRE
141,600
BV World Inc./NA Trading Co.
Westgate Industries Properties
Ryzman Family Trust
Lee & Associates
140,509
Bar Logistics dba Santa Fe
Warehouse
JLL
Terreno Garfield
Cushman & Wakefield
115,954
Capitol Distribution Co.
Colliers International
Prologis
Prologis
101,410
Apollo Apparel
LAREM
Appel Sheldon
Cushman & Wakefield
92,395
6000-6040 Bandini Blvd #6040
City of Commerce
Eco-Modity dba Blue Marble
CBRE
5000 Bandini
CBRE
58,704
605 Eighth St.
San Fernando
Cockram Construction
Cresa
Rexford Industrial Realty
CBRE
55,715
13450 Imperial Highway
Santa Fe Springs
Rover 3PL
JLL
FDC Partners
Fremont Associates
55,160
15160 Spring Ave.
Santa Fe Springs
Tasman Group
ComRef So CA Ind Sub G
52,272
2323 Pacifica Place
Rancho Dominguez
Rancho Pacifica Ind Park
6021 Malt Ave.
City of Commerce
3416 Garfield Ave.
City of Commerce
Garfield Business Center
13930-13950 Mica St.
Santa Fe Springs
6635 Caballero Blvd.
Buena Park
CommerceCentre@BuenaPark
©2015 Source: Jones Lang LaSalle and Los Angeles Business Journal research. The information contained in this document has been compiled from
sources believed to be reliable. Neither Jones Lang LaSalle nor any of their affiliates accept liability or responsibility for the accuracy or
completeness of the information contained herein, and no reliance should be placed on the information contained in this document.
Note: Ranked by square footage unless
information is not available. SF =
square footage
+1 604 278 4604
FEBRUARY 1, 2016
REAL ESTATE
Auto Dealerships Helped Drive Deal for Center
SALE: Decron gives credit
the most recent tenant, said Amos, a vice
president at downtown L.A.’s CBRE. But by
the time it sold the building last month – after
transforming it into creative office space –
Beantown had already moved out.
Langdon, which was represented by CBRE’s
Matthew Perlmutter, plans to further renovate
the space in hopes of appealing to technology,
media and entertainment companies looking for
creative space, Amos said.
to broad tenant lineup for
$84.5 million transaction.
D
ECRON Properties, an L.A. real estate
and management firm that made a
$30.3 million wager on a struggling
shopping center in the San Gabriel Valley
nearly two decades ago, has seen its bet pay off.
The company just sold the El Monte
Shopping and Automotive Center last month
to San Francisco’s Merlone Geier Partners
for a whopping $84.5 million.
REAL
ESTATE
CALE OTTENS
But the 473,000-square-foot retail center
off the 10 freeway looked far different when
it traded hands last month than it did when
Decron bought it in 1998.
Today, Penske Motor Group’s Longo
Lexus and Toyota dealerships – among the
highest-volume dealerships in the country
– are the center’s primary anchors. But that
was not the plan Decron had in mind when
it bought the property, said Chief Executive
David Nagel.
“There was always an auto element in that
the purchase included a portion of the Longo
dealerships, but it was always separate from
the rest of the center,” Nagel said.
At the time, HomeBase Inc., a nowshuttered home improvement store, anchored
the property. Another large space was vacant,
Sold: El Monte shopping complex.
Nagel said, until Decron inked a deal with
Kmart shortly after it bought the center.
“It was the first time a national department
store had elected to go to the city of El Monte,”
he said. “It was very exciting at the time.”
But after Sears Holdings Corp. merged
with Kmart, the El Monte store was converted
into a Sears store, which Nagel said was
far less successful. Around the same time,
HomeBase got out of the home improvement
business, leaving a large hole in the property.
That’s when Decron decided to intensify
its focus on the center’s auto element.
“The idea came up as a result of an issue,”
Nagel said. “Longo was this extremely
successful anchor to the level where we almost
couldn’t control the parking. We constantly
had overfill because of all the people visiting
Longo and parking in our retail center.”
So Decron opted to allow Penske to use the
former HomeBase location for its auto body
shop and collision repair center.
“We decided to embrace them by allowing
them to expand further,” Nagel said.
Decron also replaced an old gas station
with Union Bank and Jamba Juice, he said,
noting that it added even more value to the
property.
“We felt we created as much value as we
could,” he said. “That’s why we decided to sell.”
Hollywood Ending
In one of the most lucrative deals to
be inked in Hollywood recently, L.A.’s
Beantown Productions received $7 million
for a creative office building on Melrose
Avenue last month.
Beverly Hills real estate investment firm
Langdon Street Capital paid about $674 a square
foot for the 10,390-square-foot office building at
5707 Melrose in an all-cash transaction.
“The $7 million closing price absolutely
surpassed expectations,” said Andrew Riley,
an associate broker at CBRE Group Inc. who
represented Beantown alongside Rob Waller
and Patrick Amos. “On a price-per-squarefoot basis, this was among the top-five sales
in Hollywood for office buildings larger than
10,000 square feet.”
Beantown, an independent company
focused on TV advertising, marketing and
postproduction, first bought the building in
2004 for about $3.2 million, or $307 a square
foot, according to real estate information firm
CoStar Group Inc.
The Hollywood production company was
Upgrades Pay Off
Coastline Real Estate Advisors Inc., a
boutique real estate firm in El Segundo, has
sold the Biarritz apartment complex in Santa
Monica for $13 million.
Mitra Ghanadian, a private investor
in Brentwood, bought the 22-unit Class-C
complex at 316 San Vicente Blvd. for nearly
$591,000 a unit, according to CoStar. That’s
well above the average sale price – about
$435,000 a unit – others paid for similar
properties in Santa Monica within the past year.
But Coastline, which acquired the property
for $9 million in 2013, had upgraded 10 of the
units with marble countertops, stainless-steel
appliances, French oak-stained hardwood
flooring, new European-style ventless washers
and dryers, and other amenities, according to
Calabasas brokerage Marcus & Millichap
Inc., which represented the buyer and seller.
“Most of the multifamily buildings nearby
are under long-term ownership and haven’t
been renovated,” said Ron Harris, who
brokered the deal with Marcus & Millichap’s
Paul Darrow and Michael DiSimone. “The
Biarritz has 10 apartments that have been
upgraded to achieve rents on par with units
closer to the beach on Ocean Avenue.”
Staff reporter Cale Ottens can be reached at
[email protected] or (323) 5495225, ext. 221.
2016 Spotlight on Real Estate
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estate industry in changing the face of Los Angeles and making an economic impact to our
communities. The Business Journal is committed to providing the leaders of Los Angeles with
information on important real estate related topics. We are dedicated to informing readers
of important issues such as development and land use, vacancy rates and brokerage, and
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FEBRUARY 1, 2016
PROPERTIES FOR SALE & LEASE
2906-2910 GILROY ST
• 2 Adjoining Parcels
FOR SALE
• LAMR1 Zoning
• 10K Sq Ft. Prime LA • $2M Offering Price
River Property
• Enterprise Zone
• 3,600 RBA
Benefits
4410 GAGE AVE
0.28 Acres; 2,800 SF Building
Commercial Zone
[email protected]
[email protected]
phone: 310-431-5411
phone: 310-488-1789
MIXED USE DEVELOPMENT
SITE DTLA $14.5M
• 50,000 SF of
Highly Desirable
Development Land
• 290’ Frontage on
Prime 7th St. with
Downtown Skyline
Views
• Large Rectangle
Lots, C2-2 Zoning
• 6-1 Far - 300,000
SF Development
Construction
Available
• Clean Phase 1 & 2
• 92% Walk Score
• Above Ground
Parking Project. No
Costly Subterranean
City of Bell (323) 588-6211
FOR SALE
4400 GAGE AVE
0.45 Acres; 7,000 SF Building
FOR SALE
FOR SALE
6302 - 6306 BEACH BLVD.,
BUENA PARK, CA 90621
10.37% IRR
6082 ATLANTIC AVE. LONG BEACH CA
• Street Retail + 2bd/1ba apartment
• Two Contiguous buildings totaling 5,225
SF on two parcels
• Currently Owner/User
• Request offering memorandum for details
Commercial Zone
[email protected]
[email protected]
phone: 310-431-5411
phone: 310-488-1789
City of Bell (323) 588-6211
FOR SALE
FOR SALE
LAX ADJACENT
PRIME VENICE
• 5 unit multi-tenant building
• NNN long term leases
• 77% Occupied
John Gessford
949-930-6292
John Gessford
949-930-6292
[email protected]
[email protected]
BOUQUET CANYON POWER CENTER – SPACES FOR LEASE
Features
• Join a National Tenant Anchored Shopping Center
(±150,000 SF)
• ±3,000 SF – Endcap – Former Restaurant
• ± 1,600 SF & 1,286 SF Retail
• Join Co-tenants CVS, Ross, and Vons
• Located at One of the Busiest Intersections in
Santa Clarita with Over 90,000 ADT
• NNN Multi-Tenant Retail
• $9,100,000
• 8 Unit Apartment Building
• $4,250,000
C. Holland / P. Sheekey
(310) 478-7700
[email protected], BRE #00923779
Demos: Population (Average HH Income)
1 Mile: 12,198 (Average HH Income $105,762)
C. Holland/P. Sheekey/L. Palmo
(310) 478-7700
EXCLUSIVE LEASING AGENT
818.501.2212
Todd Nathanson x101
• National and Regional Retail Synergy
Kyle FIshburn x 109
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Property
illicre.com
LEASING
PROPERTY MANAGEMENT
Carter Andrews x 132
Matthew Essex x 117
INVESTMENTS
Get seen, get leased, get sold
We can help you showcase your properties each week
Contact Rosz Murray • 323.549.5225 ext. 215 • [email protected]
+1 604 278 4604
FEBRUARY 1, 2016
BUSINESS MARKETPLACE
INVESTMENT OPPORTUNITIES
Established online digital media show looking for
partnership or possible acquisition deal.
The digital content market is booming! Our show has quality
content for all ages — kids, teens and adults as well.
For more info on the show go to cenkids.com.
For inquiries please email
[email protected].
BUSINESS SERVICES
EMPLOYMENT OPPORTUNITIES
Production Manager for online retailer. Must
have MSc in Industrial Technology or HR
Development & relevant experience. Send
resume to Just Fabulous, Inc. (Attn: Alvina Ng)
800 Apollo Street, El Segundo, CA 90245 or
email to [email protected].
Production Manager for online retailer. Must
have MSc in Industrial Technology or HR
Development & relevant experience. Send
FINANCIAL SERVICES
International Tax Contractor
(CPA)
10 years experience with
Big 4 and Fortune 100
companies
Round out your tax team
with the best! Great quality
and great rates!
Send inquiries to:
[email protected]
Expertise: Forms 5471,
8858, 1040NR, FTC, E&P,
disclosure statements
PERSONAL INJURY
resume to Just Fabulous, Inc. (Attn: Alvina Ng)
800 Apollo Street, El Segundo, CA 90245 or
email to [email protected].
Mr. Papell is an AV rated attorney
with 30 years experience
AVP; Consultant - Apps Prog. sought by Bank of America. Reqs:
BS & 7 yrs exp or if unrltd BS, emplyr will accpt an addtnl yr of rltd
exp; & exp w/Operational Data Store mdlng, design & dvlpmnt;
SQL query & SQL DB solution; ETL & data anly; Wrkng on pltfrms
such as SQL srvrs, iSeries, & Oracle; Wrkng w/large amnt of
data, cndctng ad hoc anly, & dvlpng reports; SQL & SSIS based
frmwrks; Data mining; Microsoft Excel incl VBAs. Job site: Agoura
Hills, CA. Ref # 89HVVA & submit resume to Bank of America
NY1-050-03-01, 50 Rockefeller Plaza, New York, NY 10020. No
phone calls or e-mails. Must be legally authorized to work in the
U.S. w/o sponsorship. EOE.
representing victims in settlement
and trial who have been injured
through the fault of others
including automobile, motorcycle
and trucking accidents as well as
slip/trip fall incidents and other
matters.
Repeatedly recognized as a
southern California super lawyer.
REQUESTS FOR BIDS
ADVERTISEMENT FOR BIDS
All cases handled confidentially
and on a contingency fee basis.
Sun Valley CARE Development Inc.
Phase I – Site Works
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Date:
January 11, 2016
Email: [email protected]
Location:
9000 Sunland Blvd.,
Sun Valley CA 91352
Visit our informational website:
Sun Valley CARE Development Inc., a non-profit agency located at 9000 Sunland
Blvd. in Sun Valley, CA has issued a Request for Proposals (RFP) for General
Contractors for the construction of the Sun Valley Nursing Training Facility EDA Award
No. 07-01-06230 (“Project” or “Contract”) Phase 1 – Site Works.
The Project includes site-work to accommodate a future 7,693 sq. ft. of program
space of which 1,648 sq. ft. is new addition. The site-work program will consist of
approximately 10,217 sq. ft. of new parking, hardscape, landscape and water management basins. The project site is located at 9000 Sunland Blvd. in Sun Valley, CA
91352. This Project is partially funded by a federal grant from the U.S. Department
of Commerce.
To request a copy of the RFP document please contact Aaron Romo by email at
[email protected] or by phone at (818) 660-9454.
A mandatory Pre-Proposal meeting and job walk for this Project is scheduled for
Tuesday, February 2, 2016 at 10:00 am at the project site 9000 Sunland Blvd., Sun
Valley, CA 91352. RSVP by emailing Aaron Romo, limit 2 reps per company. Copies
of the Bidding Documents can be obtained during the meeting for a fee of $100.00.
Call me and I will tell you more.
Final date for “Request for Clarification” to the Architect will be Tuesday, February 23, 2016.
Rosz Murray
Reponses to this RFP must be submitted in sealed Bids to the Owner at the Project Site
no later than Tuesday, March 1, 2016 at 3:00 pm PST. Bid opening will occur at 3:00PM,
the same day. Bids shall be valid for 60 calendar days after the bid closing date.
323.549.5225 ext. 215
Award of Contract is scheduled for approximately Tuesday, March 15, 2016.
[email protected]
Telephone: (310) 477-4775;
Substantial Completion for Phase I Construction is scheduled for no later than
Tuesday, July 26, 2016.
rmplaw.com
NOTICES
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Bank Co, Ltd. has
submitted an application
to close its Los Angeles
Branch on or prior to
July 31, 2016, subject
to regulatory approvals.
Any questions may be
directed to the office
above, phone (626)
363-1866. Office hours
are from 9 am to 5 pm
Monday through Friday.
+1 604 278 4604
FEBRUARY 1, 2016
PHOTO COURTESY OF DOV CHARNEY
Reflecting on Career: American Apparel founder and former Chief Executive Dov Charney on June 18, 2014, his last day in charge of the downtown L.A. clothing maker.
Clothing: Axed CEO May Fashion Another Firm
Continued from page 1
Business Journal, “I can’t just be robbed like
this and turn away.”
In fact, the 46-year-old entrepreneur
could make a fresh mark as the creative
force behind a new company, said Chad
Hagan of Roswell, Ga.’s Hagan Capital
Group, whose $300 million takeover bid
for American Apparel was rejected by the
company in bankruptcy proceedings.
“He’s going to come back with a fury,”
Hagan said. “We’re not wanting to replicate
American Apparel. We’re wanting to beat
American Apparel.”
But Charney declined to discuss the
prospect of launching another company.
“I have no comment on what I’m
planning to do,” he said, stressing his deep
disappointment in losing the company
that prided itself on L.A. manufacturing
and social activism. Ever since American
Apparel fired Charney in 2014 for alleged
misconduct, he has battled fiercely to regain
control.
In bankruptcy court recently, he told a
judge that the company’s new management
thwarted his multiple attempts to return to
the business he founded 25 years ago.
“There was no chance I could ever have
a fair shot,” Charney said in reportedly
animated testimony, wearing a gray suit
and white sneakers. “I’m a merchant, I’m
a creative artist, I’m a photographer, I’m a
marketer, I’m an industrialist.”
Judge Brandon Shannon appeared
sympathetic to Charney’s devotion to the
brand, but said the allegations of his wrongful
firing did not factor into selecting the best
way for American Apparel to exit bankruptcy,
which it entered in October amid weak sales
and heavy debt.
“I have no doubt that he wants only the best
for American Apparel and especially for its
thousands of employees,” Shannon said.
American Apparel’s reorganization will
take the company private, wiping out the stock
and leaving shareholders, including Charney,
empty-handed.
Charney said he would not appeal.
According to bankruptcy attorney David
Kupetz of downtown’s SulmeyerKupetz,
an appeal would have little chance of
succeeding since American Apparel’s major
stakeholders had already vouched full support
of the company’s plan to exit Chapter 11. Plus,
stalling the restructuring plan would require
Charney to post a bond worth millions of
dollars to cover possible harm to the business.
Charney will have more days in court,
however, both pursuing and fighting off
lawsuits involving American Apparel. In a suit
filed in June, he accused company officials and
hedge fund New York’s Standard General of
forcing him out of the company and reportedly
sought $100 million in damages.
L.A. plan
According to Hagan, the new venture with
Charney, still unnamed, would manufacture
clothes in Los Angeles to take advantage of
the L.A. and Long Beach ports that can easily
ship to Asia. It would also consider selling
its creations in department stores rather than
just its own shops. Furthermore, Hagan’s firm
would partner Charney with “experts” who
would steer the company’s growth.
“There are parts of his business that are
probably more burdensome to him, that aren’t as
exciting and inspirational as other parts,” Hagan
said. “We would look to empower the artist.”
Hagan said the new brand would eventually
seek to merge with American Apparel and
possibly go public. But any growth would be
carefully controlled, he said, aiming to avoid
American Apparel’s missteps.
“Dov was really young when he founded
the company,” Hagan said. The T-shirt brand
then exploded in growth as it went from a
basement operation to a manufacturer backed
by hedge funds.
“We want to limit the shell shock that
can go with these major changes, which can
distract an individual like Dov who’s been so
wrapped up in the company,” said Hagan.
Starting anew might be Charney’s best
chance at success, said veteran L.A. investment
banker Lloyd Greif.
“What he needs to do is what true
entrepreneurs do – dust himself off and get
back in the ring,” Greif said. “We’ll see if he
has that in him.”
He doubted that Hagan, a firm lacking retail
experience, would be an ideal partner. But he
said it’s unlikely that many investors would
want to team up with someone who lost his
job after being accused of misusing company
funds and sexually harassing employees.
“He is an entrepreneur with baggage,”
Greif said.
A new company would need to be careful
to not repeat American Apparel’s mistakes, he
added, pointing to the company’s insistence
on L.A. manufacturing as its downfall. Under
American Apparel’s new leadership, Greif
said he expects the company to move at least
some of its production to less-expensive cities.
Reinventing himself
Another challenge for Charney would be
reinventing himself in the competitive teen
apparel market, an industry that rotates the
latest fashions on and off store hangers at a
breakneck pace.
“If he is creative and has the fashion sense
that people have credited him with, he could
certainly do it,” said Ira Kalb, an assistant
professor of clinical marketing at USC’s
Marshall School of Business.
But new designs would have to strongly
stand out from American Apparel’s legion of
multicolored T-shirts, leggings and dresses.
“When you’re the copy, you’re never as
good as the original,” he said.
Bruce Dobb, chief executive of L.A.
advisory firm Concerned Capital and who
has worked with American Apparel in the past,
said he expected the L.A. garment industry to
be open to Charney’s latest efforts, especially
if they were to generate new jobs.
“There’s always room for new entrants,”
he said. “Isn’t L.A. the place where people
reinvent themselves all the time?”
+1 604 278 4604
FEBRUARY 1, 2016
TV: Old Shows Make Big Splash, Money Online
participation in a show, then yes, the second
or third life of a TV series on Netflix or
Hulu can mean a lot of money to them,” said
entertainment attorney Chad Fitzgerald, a
partner at Kinsella Weitzman Iser Kump
& Aldisert in Santa Monica. “It depends on
how the studio accounts for that money.”
There’s one thing that those who do get new
money from their show’s resurrection should
not do, advises Merrill Lynch’s Prunier: go
on a shopping spree.
“You have to treat it as sacred money,” she
said. “When you get additional money you’re
not counting on from work you did a long,
long time ago, the best thing to do with that
money, if you’re not financially complete,
is to take control of your future earnings by
adding to it.”
Piece of pie
Unionized actors get residuals or rerun
payments when their old TV episodes air
in syndication or are distributed on DVD,
according to Richard Marks, a partner at
Beverly Hills entertainment law firm Point
Media. While those can be lucrative, Marks
added that the Screen Actors Guild and the
American Federation of Television and
Radio Artists has yet to hammer out terms
to compensate them for streaming.
Terms related to digital distribution were
one of the primary issues leading to the
Writers Guild of America strike that began
in 2007.
In general, it’s the writers and showrunners who created a program, as well as the
big-name actors and lead performers who
contributed to a show’s success, that tend to
get a share of the profits.
“The actors on ‘Friends’ likely had no
participation until they renegotiated in the third or fifth year,”
Marks said as an example.
“Right now you have to be one
of the participants who have a
back end, meaning a piece of the
modified adjusted gross receipts,
in order to get a bump from
streaming.”
He further explained that a
show’s deal size on a streaming service is determined by
the program’s success when it
first aired as well as how many
episodes were made.
“I would say generally the
Netflixes of the world are not
paying a per-episode fee, but it’s
certainly tied to the amount of
time that they can give to their
subscribers,” Marks said.
But opaque studio accounting practices often make it
tough to calculate a ballpark
figure for how much an artist
with ownership might profit,
he added. For instance, those
payments are typically not
Beefed-Up Income: Wealth manager Danielle Prunier at Merrill Lynch’s office in Century City.
doled out until a studio or netthe money and invest wisely.
“This particular industry is volatile, it’s
work recoups expenses such as overhead or
Martha Henderson, who heads the enunpredictable, and when you have an opporproduction costs.
tertainment division at downtown L.A.’s City
tunity to work and earn money, it’s so imBut once it does, the stream of money
National Bank, said she would also advise
portant to save more than you need because
back to the talent can be impressive.
a client to treat this new revenue stream conyou don’t know when the next opportunity
“It’s a significant new source of reveservatively, as would many of the managers
will be,” she said.
nue,” said Merrill Lynch’s Prunier, citing an
with whom she interacts. Her bank works
It’s not like other professions, such as a
unnamed client who created a TV show that’s
with more than three-quarters of all business
lawyer or doctor, where it’s feasible to work
been in syndication and is now generating
managers in California.
into their 70s or 80s, she added.
income from Netflix.
“They really want to invest this in bonds
“An actor really depends upon the right
or something that’s going to be there for them
role out there for them and sometimes has to
Save vs. spend
in the future,” she said. “Use it as an opportake a role that doesn’t pay, but to improve
When her clients do get that extra money,
tunity to invest money for long-term financial
status as an artist,” said Prunier, who’s been
Prunier said she’s been telling them to save
health, not to go buy a car.”
telling clients to pretend they never received
or invest it.
Footwear: Shoemaker Customizes Business Plan
partnership with Seattle department store
chain Nordstrom, which now has an equity
stake in Shoes of Prey, to create a shop-inshop experience at five Nordstrom locations,
including at Fashion Island in Newport
Beach.
Fox said it was a whole new challenge to
create an offline experience, but one that’s
paid off so far.
“When you’re online and you look at a
customer’s journey, you can architect every
single bit of that,” she said. “When you’re
offline, you can architect it but then you have
to train your sales staff really well (and) you
have to anticipate so many needs.”
Scaling up
But meeting customer demand is not easy
when a company must build one item at a time
– and it can be difficult to find a manufacturer
willing to do it. Most prefer producing in bulk
as it’s more efficient and profitable.
But Shoes of Prey found a way around that
by building its own manufacturing facility in
China in September 2014.
“There’s just no one in the world that
knows how to make one pair of shoes at a
time,” Fox said. “Manufacturers aren’t interested in making one at time of anything because they don’t know how to do it efficiently.
So growing the business to the point where
we could build our own factory and create our
own supply was really exciting because that
solved the problem immediately.”
Most manufacturers are set up to make one
item repetitively. Since her captive factory is organized to make products one at a time, it’s not
become the norm. What’s more, custom-made
In fact, technology is another big reason
disruptive to do so. That helps drive down costs.
apparel and shoes avoid the costs that result
Fox said she thinks the high manufacturing custom apparel and shoemakers can keep
from production overruns.
costs down. By transmitting digital images
cost is the reason her two biggest competitors
“Traditional retailers are having a tough
– Milk and Honey and Upper Street London – from a body scan directly into manufacturing
time,” he said. “Other than our samples, everymachines, it bypasses the need for tailors and
might have closed down.
thing is made based on an order and we take
pattern makers and such.
Jamal Motlagh, co-founder and chief
cash up front – unlike a traditional fashion
Body scanners have already been used by
executive of Acustom Apparel in New York,
brand that has to make all their product well
many manufactures and major brands, includsaid finding a way to make its custom men’s
in advance of knowing demand and hope they
ing Acustom, to customize products.
garments also posed a big problem. The label
sell it or discount it if they don’t. We don’t
Motlagh added that as technology imrecently opened a West Hollywood shop,
have those same economics.”
proves, custom clothing will increasingly
sharing a Melrose Avenue space with custom
footwear maker Left Shoe
Co. of Helsinki.
“For our casual pants
like denim and chinos, it
was almost impossible to
find an existing manufacturer that could do what
we wanted,” Motlagh said.
“Most of them wanted to
charge a sample fee, which
is usually the retail cost of
the product you’re trying
to sell.”
Acustom, such as Shoes
of Prey, decided to set up
a small factory within an
existing denim plant in
China to make its casual
pants. The company pays
a flat monthly rent, so its
costs are the same whether
it fulfills 20 orders or 200.
Fashion Business’s
Harder said customization
requires organization and
technology, such as 3-D
body scanners, to help
meet demand and reduce
Arch Appeal: Jodie Fox at Santa Monica’s Shoes of Prey, which lets customers design their own
footwear through its website.
production costs.
+1 604 278 4604
FEBRUARY 1, 2016
‘If the allegations are true, this is another example
of people not treating each other well in the tech industry.’
LUAN TRAN, Lee Tran & Liang
Aviation: Brother’s Air Line Fight Lands in Court
lines and take advantage of unlimited flights
to 11 destinations in California and Las
Vegas. The airline, which has about 2,400
subscribers, charges a monthly fee of $1,950.
However, determining a private company’s
true value is tricky, especially in the tech
industry, said Andrea Belz, director of the
innovation node at USC’s Viterbi School of
Engineering.
“Valuation is not a perfect science,” she
said. “In the end, valuation is people’s expectations for the future.”
Surf Air and investors Anthem Venture
Partners, Velos Partners and Base Ventures are named as defendants in the lawsuit
filed in November in Los Angeles Superior
Court. The suit claims breach of fiduciary
duty, fraudulent concealment and four other
allegations.
Surf Air declined to comment for this
story. Anthem, Velos and Base did not
respond to multiple requests for an interview.
Wade Eyerly did not want to comment.
Tough road
No matter how it looks on the surface,
proving David Eyerly’s case in court might be
difficult, said legal experts.
That’s because complex financing rounds
in the hurried world of technology startups
often leave co-founders vulnerable to drastic
stock dilution, and that doesn’t necessarily
mean something nefarious has taken place,
said Bryan Springmeyer, an attorney for
Springmeyer Law of San Francisco, who is
not involved in the case but reviewed it for the
Business Journal.
“It can’t just be an unfortunate story,” said
Springmeyer. “There has to be a transaction
you can point to where you can see this is
where the illegal act happened.”
But if David Eyerly is able to prove that he
was the victim of a scheme to steal his stock,
it would fit into a larger pattern of legal disputes in the tech industry, said Luan Tran, a
partner at downtown L.A. law firm Lee Tran
& Liang, who represented ousted Snapchat
Inc. co-founder Reggie Brown in a similar
battle concerning ownership in the Venice
mobile app developer, which is now valued at
roughly $12 billion.
“If the allegations are true, this is another
example of people not treating each other
well in the tech industry,” said Tran, who’s
not involved in the Surf Air case. “We have
seen this script way too many times now,
unfortunately.”
In a twist of fate, one of Velos’ co-founders is Eduardo Saverin, a co-founder of
Facebook Inc. who sued Mark Zuckerberg
as the alleged victim of an illegal dilution
scheme, a saga made famous in 2010 film
“The Social Network.” Saverin and Facebook
wound up settling out of court.
Family business
David Eyerly became Surf Air’s chief
operating officer after its launch, while his
brother Wade stepped into the chief executive
role. Each had a seat on the board.
As the company grew, David helped guide
it through Federal Aviation Administration
regulatory approval and even piloted one of
the company’s planes. Wade, meanwhile, met
with investors, raising more than $11 million
by 2013. Surf Air started flying passengers in
June 2013.
According to David’s lawsuit, that’s about
the time the airline’s lead Series A and B
investors started to hold secret board meetings
during which they plotted David’s removal
Flight Path: Surf Air co-founder Wade Eyerly, above, at Santa Monica Airport in 2012 when the firm was getting off the ground.
from the firm and the dilution of his stock.
“They saw Surf Air’s projections and
potential. They wanted (David’s) equity and
upside for themselves,” claims the lawsuit.
“They viewed David as young, vulnerable
and unsophisticated in matters of finance.”
Surf Air also needed additional financing
in mid-2013 as the purported scheme was
taking place. Its investors offered the company a bridge loan that David’s lawsuit claims
allowed them to convert their debt into stock
at an artificially low valuation, which did not
reflect the health of the company.
David objected to the loan and wanted to
seek alternative financing.
Miller, David’s attorney, said he thinks the
bridge loan was worth about $8 million and
claimed it was not approved by an independent board director. Critically, the bridge loan
would only be granted if David was terminated from Surf Air.
In November 2013, Wade asked David
to come to his house. It was there he told
David that he had to fire him at the behest
of the board, according to the lawsuit. Wade
allegedly told his brother not to fight the
termination and promised him that he would
retain his 12.5 percent equity stake.
David left Surf Air and the bridge loan
went through.
David later received a letter from Surf Air,
written by Wade, confirming that he would
retain 12.5 percent ownership of Surf Air and
asking him to return his stock certificate. In
exchange, he was promised a new certificate
reflecting the stake, according to the lawsuit.
“David did not receive a stock certificate
in return,” the lawsuit reads. “David asked
consistently and repeatedly for his stock certificate. For approximately a year, Surf Air
ignored his requests.”
A few months later, in February 2014,
Wade was ousted from Surf Air and replaced
as chief executive by Jeff Potter, former chief
executive of Denver’s Frontier Airlines.
“While we went through some growing
Turbulence: Co-founder David Eyerly who has sued over his stake in the business.
pains, as all startups do, the company has
never fallen on hard times,” Wade said to the
Wall Street Journal at the time. “What this is
about is the fact that Jeff Potter was available.”
When Wade left Surf Air, the airline had
been flying for nine months with three planes
in operation and 430 subscribers. By that
August, Surf Air had 900 members and had
obtained a $65 million secured credit facility
from San Francisco’s White Oak Global
Advisors to buy 15 additional aircraft. The
company also raised an $8 million Series C
round that same month.
In November 2014, the lawsuit states,
David received a stock certificate that reflected only a .75 percent ownership in Surf Air,
which David’s lawyer said he assumed was
the result of the bridge loan converting to
equity. Surf Air explained to David in a letter
the dilution was the result of a stock split at
the Series C round, according to the lawsuit.
Winning the lawsuit will likely require
David to prove that he was fraudulently
induced to sign off on terms that ultimately
led to his dilution or that the company’s Series
C down round or bridge loan didn’t reflect
the company’s health, said Springmeyer, the
outside attorney.
That might require David to prove the
oral agreement and letter detailing the 12.5
percent ownership his brother allegedly gave
him on behalf of Surf Air was a contract not
kept by the company.
“Most of the time people act consistently
with the agreement they made previously,
before they decide to screw their partner,”
said attorney Tran. “There’s always a moment
where things turn.”
+1 604 278 4604
FEBRUARY 1, 2016
INDEX
‘I was looking for
shoes and I just
didn’t love the
things I would
find.’
‘It’s really an
unprecedented
imbalance of
supply and
demand.’
JODIE FOX,
Shoes of Prey,
on co-founding business
PAGE 5
ARDEN HEARING,
Trumark Urban,
on downtown L.A.’s
condo market
PAGE 7
PEOPLE
D
Darrow, Paul . . . . . . . . . . . . . . . . . . . . 31
Demby, Eric . . . . . . . . . . . . . . . . . . . . . 10
A
DiSimone, Michael . . . . . . . . . . . . . . . 31
Adamson, Larry . . . . . . . . . . . . . . . . . . 10 Dobb, Bruce . . . . . . . . . . . . . . . . . . . 1/34
Amos, Patrick . . . . . . . . . . . . . . . . . . . 31 Douglas, Mark . . . . . . . . . . . . . . . . . . . . 8
Arney, Randall . . . . . . . . . . . . . . . . . . . 19
E
Arnold, G . Michael . . . . . . . . . . . . . . . . 10 Eskovitz, Sean . . . . . . . . . . . . . . . . . . . 10
Austin, Sidley . . . . . . . . . . . . . . . . . . . 10 Eyerly, David . . . . . . . . . . . . . . . . . . 1/36
Eyerly, Wade . . . . . . . . . . . . . . . . . . 1/36
B
Baker, Patti . . . . . . . . . . . . . . . . . . 38/39
Belz, Andrea . . . . . . . . . . . . . . . . . . 1/36
Benudiz, Peter . . . . . . . . . . . . . . . . . . 10
Bishop, Brant . . . . . . . . . . . . . . . . . . . 10
Brien, Christopher . . . . . . . . . . . . . . . . 10
Brown, Reggie . . . . . . . . . . . . . . . . . 1/36
Bush, Jeb . . . . . . . . . . . . . . . . . . . . . . 40
Butler, Jonathan . . . . . . . . . . . . . . . . . . 10
Byrne, Joseph . . . . . . . . . . . . . . . . . . . 10
F
Fitzgerald, Chad . . . . . . . . . . . . . . . . 1/35
Fox, Jodie . . . . . . . . . . . . . . . . . . . . 5/35
Fox, Michael . . . . . . . . . . . . . . . . . . 5/35
C
Calabrese, Joe . . . . . . . . . . . . . . . . . . . 14
Castro, Ray . . . . . . . . . . . . . . . . . . . . . 18
Cates Jr ., Gil . . . . . . . . . . . . . . . . . . . . 19
Charney, Dov . . . . . . . . . . . . . . . . . . 1/34
Cohen, John . . . . . . . . . . . . . . . . . . . . 16
Connell, Ruth . . . . . . . . . . . . . . . . . . 1, 17
H
Hagan, Chad . . . . . . . . . . . . . . . . . . 1/34
Halbe, Shai . . . . . . . . . . . . . . . . . . . . . 10
Harder, Frances . . . . . . . . . . . . . . . . 5/35
Harris, Ron . . . . . . . . . . . . . . . . . . . . . . 31
Hazuka, Christopher . . . . . . . . . . . . . . 10
Hearing, Arden . . . . . . . . . . . . . . . . . . 6/7
Hed, Mikael . . . . . . . . . . . . . . . . . . . . . 16
COMPANIES,
ASSOCIATIONS, ETC.
1-9
20th Century Fox Animation . . . . . . . . . 16
A
Academy of Motion
Picture Arts and Sciences . . . . . . . . . 11
Acustom Apparel . . . . . . . . . . . . . . . 5/35
Akana Inc . . . . . . . . . . . . . . . . . . . . . . . . 9
Alphabet Inc . . . . . . . . . . . . . . . . . . . . . 8
Altria Group Inc . . . . . . . . . . . . . . . . . . 10
Amazon .com Inc . . . . . . . . . . . . .1/35, 6/7
American Apparel . . . . . . . . . . . . . . 1/34
Anthem Venture Partners . . . . . . . . . 1/36
Anthropologie . . . . . . . . . . . . . . . . 38/39
Atlas Group . . . . . . . . . . . . . . . . . . . . . 10
B
Base Ventures . . . . . . . . . . . . . . . . . 1/36
Baskin-Robbins . . . . . . . . . . . . . . . . . . . 8
Beacon Economics . . . . . . . . . . . . . . . 10
Beantown Productions . . . . . . . . . . . . . 31
Bernal Capital Group . . . . . . . . . . . . . . . 4
Best & Krieger . . . . . . . . . . . . . . . . . . 10
Beverly Hills Hotel . . . . . . . . . . . . . . . . . 3
Bl-nk London . . . . . . . . . . . . . . . . . 38/39
Bristol Farms Inc . . . . . . . . . . . . . . . . . . 8
BuzzFeed . . . . . . . . . . . . . . . . . . . . . . . 9
C
CapLinked . . . . . . . . . . . . . . . . . . . . . . . 4
Carlyle Group . . . . . . . . . . . . . . . . . . . 6/7
Cartonnier . . . . . . . . . . . . . . . . . . . 38/39
CBRE Group Inc . . . . . . . . . . . . . . . . . . 31
Central City Association . . . . . . . . . . . . 10
City National Bank . . . . . . . . . . . . . . 1/35
City of Hope . . . . . . . . . . . . . . . . . . . . . . 4
Coastline Real Estate Advisors Inc . . . . 31
Cole Haan . . . . . . . . . . . . . . . . . . . 38/39
Concerned Capital . . . . . . . . . . . . . 1/34
CoStar Group Inc . . . . . . . . . . . . . 6/7, 31
G
Garcetti, Eric . . . . . . . . . . . . . . . . . . . . 11
Gatto, Mike . . . . . . . . . . . . . . . . . . . . . 40
Ghanadian, Mitra . . . . . . . . . . . . . . . . . 31
Greif, Lloyd . . . . . . . . . . . . . . . . . . . 1/34
Henderson, Martha . . . . . . . . . . . . . 1/35
N
Hodges, Marion . . . . . . . . . . . . . . . . . . . 3 Nagel, David . . . . . . . . . . . . . . . . . . . . 31
Neveux, Leo . . . . . . . . . . . . . . . . . . . . . . 8
J
Norman, Greg . . . . . . . . . . . . . . . . . . . . 5
Johar, Paran . . . . . . . . . . . . . . . . . . . . . 3
O
Junn, Sue . . . . . . . . . . . . . . . . . . . . . . 10
Obama, Barack . . . . . . . . . . . . . . . . . . 10
K
O’Brien, Christopher . . . . . . . . . . . . . . 10
Kalantari, Amir . . . . . . . . . . . . . . . . . . 6/7
P
Kalb, Ira . . . . . . . . . . . . . . . . . . . . . . 1/34
Kennelly, Erin . . . . . . . . . . . . . . . . . . . 6/7 Perlmutter, Matthew . . . . . . . . . . . . . . 31
Knapp, Mike . . . . . . . . . . . . . . . . . . 5/35 Pfeffer, Matthew . . . . . . . . . . . . . . . . . 11
Potter, Jeff . . . . . . . . . . . . . . . . . . . . 1/36
L
Prunier, Danielle . . . . . . . . . . . . . . . . 1/35
Larimore, Christopher . . . . . . . . . . . . . . 4
R
Leclerc, Paul . . . . . . . . . . . . . . . . . . . . . 3
Riley, Andrew . . . . . . . . . . . . . . . . . . . . 31
Libeu, Allison . . . . . . . . . . . . . . . . . . . 10
Ritcher, Raina . . . . . . . . . . . . . . . . . . . 10
Liebeler, Eric . . . . . . . . . . . . . . . . . . . . 10
Rudin, Scott . . . . . . . . . . . . . . . . . . . . . 16
Liu, Jacqueline . . . . . . . . . . . . . . . . . . . 3
S
Lopez, Jon-Patrick . . . . . . . . . . . . . . . . . 8
Saless, Cameron . . . . . . . . . . . . . . . . . . 9
M
Saverin, Eduardo . . . . . . . . . . . . . . . 1/36
Mahan, Matthew . . . . . . . . . . . . . . . . . 10 Schatz, Carol . . . . . . . . . . . . . . . . . . . . 10
Malek, Kim . . . . . . . . . . . . . . . . . . . . . . 8 Schmitt, Michael . . . . . . . . . . . . . . . . . 10
Malko, Amanda . . . . . . . . . . . . . . . . . . . 9 Scully, Tami . . . . . . . . . . . . . . . . . . . . 6/7
Mann, Alfred . . . . . . . . . . . . . . . . . . . . 11 Shannon, Brandon . . . . . . . . . . . . . . 1/34
Marks, Richard . . . . . . . . . . . . . . . . 1/35 Shatner, William . . . . . . . . . . . . . . . . . . 17
Merrill, Sonya . . . . . . . . . . . . . . . . . . . . 9 Smith, Linda . . . . . . . . . . . . . . . . . . . . 10
Miller, Skip . . . . . . . . . . . . . . . . . . . . 1/36 Springmeyer, Bryan . . . . . . . . . . . . . 1/36
Motlagh, Jamal . . . . . . . . . . . . . . . . 5/35 Standard General . . . . . . . . . . . . . . . 1/34
Coty Inc . . . . . . . . . . . . . . . . . . . . . . . . . 4
I
Covington and Burling . . . . . . . . . . . . 10 Illumination Entertainment . . . . . . . . . . 16
Crackle . . . . . . . . . . . . . . . . . . . . . . . . 14
J
Crayola . . . . . . . . . . . . . . . . . . . . . 38/39 J . Crew . . . . . . . . . . . . . . . . . . . . . 38/39
Creation Stands . . . . . . . . . . . . . . . . . . 17 Jacobs Engineering Group Inc . . . . . . . . 4
Jamba Juice . . . . . . . . . . . . . . . . . . . . 31
D
Jukin Media . . . . . . . . . . . . . . . . . . . . . . 9
Decron Properties . . . . . . . . . . . . . . . . 31
K
Diane von Furstenberg . . . . . . . . . . 38/39
DLA Piper . . . . . . . . . . . . . . . . . . . . . . 10 KAA Design . . . . . . . . . . . . . . . . . . 38/39
Kate Spade New York . . . . . . . . . . 38/39
Downtown Center Business
Kinsella Weitzman Iser
improvement District . . . . . . . . . . . . 10
Kump & Aldisert . . . . . . . . . . . . . . 1/35
Kirkland & Ellis . . . . . . . . . . . . . . . . . . 10
E
Koch Industries . . . . . . . . . . . . . . . . . . 10
Elkins Kalt Weintraub
Reuben Gartside . . . . . . . . . . . . . . . 10 Kupetz, David . . . . . . . . . . . . . . . . . . 1/34
Entertainment Inc . . . . . . . . . . . . . . . . 10 Kynetic . . . . . . . . . . . . . . . . . . . . . . . . 10
L
F
L .A . County-USC Medical Center . . . . . 11
Facebook Inc . . . . . . . . . . . . . . . . . . . . . 8 L .A . Creamery . . . . . . . . . . . . . . . . . . 3, 8
Fashion Business Inc . . . . . . . . . . . . 5/35 Lacoste . . . . . . . . . . . . . . . . . . . . . . . . . 3
Flipagram . . . . . . . . . . . . . . . . . . . . . . . 3 Langdon Street Capital . . . . . . . . . . . . 31
Foxconn Technology Group . . . . . . . . . . 5 Latham & Watkins . . . . . . . . . . . . . . . 10
Free People . . . . . . . . . . . . . . . . . . . . . . 3 Lee & Associates . . . . . . . . . . . . . . . . . . 4
FreedomPop . . . . . . . . . . . . . . . . . . . . . 4 Lee Tran & Liang . . . . . . . . . . . . . . . 1/36
Frontier Airlines . . . . . . . . . . . . . . . . 1/36 Left Shoe Co . . . . . . . . . . . . . . . . . . . 5/35
Fuhu Inc . . . . . . . . . . . . . . . . . . . . . . . . . 5 Lewis Brisbois Bisgaard & Smith . . . . . . 3
Loews Hotels . . . . . . . . . . . . . . . . . . . . . 3
G
Loews Santa Monica Beach Hotel . . . . . 3
Geffen Playhouse . . . . . . . . . . . . . . . . . 19 Los Angeles 2024 . . . . . . . . . . . . . . . . 11
George Ellis Trust . . . . . . . . . . . . . . . . . 4 Louise et Cie . . . . . . . . . . . . . . . . . 38/39
Getty Images . . . . . . . . . . . . . . . . . . . . . 8
M
Google Inc . . . . . . . . . . . . . . . . 3, 5/35, 8 Maker Studios . . . . . . . . . . . . . . . . . . . 14
Graf & Lantz . . . . . . . . . . . . . . . . . 38/39 MannKind Corp . . . . . . . . . . . . . . . . . . . 11
Great White Shark Enterprises . . . . . . . . 5 Marcus & Millichap Inc . . . . . . . . . . . . 31
Greenland USA . . . . . . . . . . . . . . . . . 6/7 Mark Co . . . . . . . . . . . . . . . . . . . . . . . 6/7
Mattel Inc . . . . . . . . . . . . . . . . . . . . . 5, 10
H
Medtronic . . . . . . . . . . . . . . . . . . . . . . 10
Hagan Capital Group . . . . . . . . . . . . 1/34 Merlone Geier Partners . . . . . . . . . . . . 31
Hueston Hennigan . . . . . . . . . . . . . . . 10 Merrill Lynch . . . . . . . . . . . . . . . . . . 1/35
Huffington Post . . . . . . . . . . . . . . . . . . . 9 Midnight Misison . . . . . . . . . . . . . . . . . 10
Hulu . . . . . . . . . . . . . . . . . . . . . . 1/35, 14 Milbank Tweed Hadley & McCloy . . . . 10
‘I lived in colder
cities before, so I
just like the
layered look.’
PATTI BAKER,
KAA Design
PAGE 38
Stekloff, Brian . . . . . . . . . . . . . . . . . . . 10
Stickroth, Lauren . . . . . . . . . . . . . . . . 10
Sulmeyer, Kupetz . . . . . . . . . . . . . . . 1/34
T
Tapling, Mark . . . . . . . . . . . . . . . . . . . . . 9
Thornberg, Christopher . . . . . . . . . . . . 10
Tkachenko, Taras . . . . . . . . . . . . . . . . . 18
Tran, Luan . . . . . . . . . . . . . . . . . . . . 1/36
U
Ulrich, Robert . . . . . . . . . . . . . . . . . . . . 17
V
Vargas, Rodrigo . . . . . . . . . . . . . . . . . . . 3
Vitti, Jon . . . . . . . . . . . . . . . . . . . . . . . 16
W
Waller, Rob . . . . . . . . . . . . . . . . . . . . . 31
Walsh, Alexandra . . . . . . . . . . . . . . . . 10
Watson, Summer . . . . . . . . . . . . . . . . . 18
Weiss, Paul . . . . . . . . . . . . . . . . . . . . . 10
Wilkinson, Beth . . . . . . . . . . . . . . . . . . 10
Winder, Catherine . . . . . . . . . . . . . . . . 16
Y
Yoshikawa, Shiho . . . . . . . . . . . . . . . . . 8
Young, Tessa . . . . . . . . . . . . . . . . . . . . . 3
Z
Zuckerberg, Mark . . . . . . . . . . . . . . 1/36
Miller Barondess . . . . . . . . . . . . . . . 1/36
S
Mobile Media Summit . . . . . . . . . . . . . . 3 Salt & Straw . . . . . . . . . . . . . . . . . . . . . 8
Morris Polich & Purdy . . . . . . . . . . . . . 10 Sanofi . . . . . . . . . . . . . . . . . . . . . . . . . 11
Munger Tolles & Olsen . . . . . . . . . . . . 10 Screen Actors Guild and the
American Federation of Television
N
and Radio Artists . . . . . . . . . . . . . 1/35
Naritiv . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Sears Holdings Corp . . . . . . . . . . . . . . 31
National Football League Baseball . . . 10 Shoes of Prey . . . . . . . . . . . . . . . . . 5/35
NBC Universal . . . . . . . . . . . . . . . . . . . 14 Siemens Corp . . . . . . . . . . . . . . . . . . . 10
Netflix . . . . . . . . . . . . . . . . . 1/35, 14, 17 Sky Bar . . . . . . . . . . . . . . . . . . . . . . . . . 3
Neveux Artisan Creamery . . . . . . . . . . . . 8 Snapchat Inc . . . . . . . . . . . . . . . . 1/36, 14
New York University . . . . . . . . . . . . . . . 16 Sony Pictures Imageworks Inc . . . . . . . 16
Nike Inc . . . . . . . . . . . . . . . . . . . . . . 5/35 Spa Ojai . . . . . . . . . . . . . . . . . . . . . 38/39
Nordstrom . . . . . . . . . . . . . . .5/35, 38/39 Springmeyer Law . . . . . . . . . . . . . . 1/36
Staub . . . . . . . . . . . . . . . . . . . . . . . . 5/35
O
SteelHouse . . . . . . . . . . . . . . . . . . . . . . 8
Oakley Inc . . . . . . . . . . . . . . . . . . . . . . . 8 Subtraction Capital . . . . . . . . . . . . . . . . 4
Ocean & Vine . . . . . . . . . . . . . . . . . . . . . 3 Surf Air . . . . . . . . . . . . . . . . . . . . . . 1/36
Oceanwide Real Estate Group . . . . . . 6/7 Sweet Rose Creamery . . . . . . . . . . . . . . 8
OpenX . . . . . . . . . . . . . . . . . . . . . . . . . . 8
T
OPI Products . . . . . . . . . . . . . . . . . . . . . 4 Toms . . . . . . . . . . . . . . . . . . . . . . . 38/39
Orexigen Therapeutics . . . . . . . . . . . . 10 Tongal . . . . . . . . . . . . . . . . . . . . . . . . . . 9
P
Pacific Asian Consortium
in Employment . . . . . . . . . . . . . . . . . . 3
PacketVideo . . . . . . . . . . . . . . . . . . . . . . 9
Paramount Pictures . . . . . . . . . . . . . . 10
Penske Motor Group . . . . . . . . . . . . . . 31
Pfizer Inc . . . . . . . . . . . . . . . . . . . . . . . 10
Phillip Morris USA . . . . . . . . . . . . . . . . 10
Point Media . . . . . . . . . . . . . . . . . . . 1/35
Polaris Pacific . . . . . . . . . . . . . . . . . . 6/7
Pollack PR Marketing Group . . . . . . . . . 3
Polsinelli . . . . . . . . . . . . . . . . . . . . . . . 10
Prism DJs . . . . . . . . . . . . . . . . . . . . . . . 3
Trumark Urban . . . . . . . . . . . . . . . . . . 6/7
U
UCLA . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Union Bank . . . . . . . . . . . . . . . . . . . . . 31
UPS . . . . . . . . . . . . . . . . . . . . . . . . . . 6/7
USC . . . . . . . . . . . . . . . . . . . .1/34/36, 11
V
Velos Partners . . . . . . . . . . . . . . . . . 1/36
Venable . . . . . . . . . . . . . . . . . . . . . . . 10
W
W Hotel . . . . . . . . . . . . . . . . . . . . . . . . 3
Wanderlust Creamery . . . . . . . . . . . . . . 8
Warner Bros . . . . . . . . . . . . . . . . . . . . . 10
White Oak Global Advisors . . . . . . . . 1/36
R
Rifkind Wharton and Garrison . . . . . . . 10 Wilkinson Walsh + Eskovitz . . . . . . . . 10
Rovio Entertainment . . . . . . . . . . . . . . 16 Writers Guild of America . . . . . . . . . 1/35
Royal College of Music . . . . . . . . . . . . 18 Wurstkuche . . . . . . . . . . . . . . . . . . . . . . 3
Rubicon Project Inc . . . . . . . . . . . . . . . . 8
Z
Runyon Group . . . . . . . . . . . . . . . . . . . 10 ZestFinance . . . . . . . . . . . . . . . . . . . . . . 9
These indexes list the people, businesses, associations, organizations, schools, etc ., that are named in this week’s issue . The numbers refer to the page on which the name is found . Numbers with slashes refer to pages on which lengthier articles are located that contain the name .
+1 604 278 4604
FEBRUARY 1, 2016
EXECUTIVE STYLE
Coated
In Layers
Diane von Furstenberg
navy blazer. Cost: about $450.
‘We’re selling high-end
d
design so the
e
focus should be on the
presentation not
what I’m wearing.’
PATTI BAKER, KAA Design
Kate Spade New York
stone-accented necklace.
Cost: about $100.
Bl-nk London scarf.
carf.
Cost: about $70.
Louise et Cie Finch
oxford. Cost: about $139.
M
ENSWEAR-inspired
clothing with a pop of bright color
is the preferred style of Pattii Baker, director at
gn in Marina del Rey.
architecture firm KAA Design
Baker said she first cultivated the look in college when
she started wearing blazers and pairing shorts with loafers –
even high-heeled loafers.
“I was always into scarfs, jackets and menswearinspired (clothing),” she said. “I lived in colder cities
before, so I just like the layered look.”
But sometimes her love of jackets can be a challenge.
For example, while working on a job site she
accidently rubbed against a wall that was being
waterproofed. The sticky substance got on her jacket and
she was never able to get it ooff.
think Do I
“You kind of have to think,
love this jacket so much that I’m going
to wear it on the job site?” said Baker, 45.
“I do struggle a bit. There’s days when I need to go to the
job site and then I’ll need to come into the office and have a
client meeting.”
On days like that she’ll often do a quick outfit change,
she said, which might involve starting out the day in her old
patent leather Cole Haan shoes but changing into dressier
footwear and a jacket for meetings.
Baker said she’s perfected the art of balancing her two
looks, but dressing appropriately for client meetings is
harder than you might think.
“You don’t want to outdress your presentation,” she
said. “If we’re doing a beach project, I may wear jeans and
more whites. We’re selling high-end design so the focus
should be on the presentation not what I’m wearing.”
Baker’s favorite shops, Nordstrom, J. Crew and
Anthropologie, are handy because she can pick up items
for work as well as casual wear. Anthropologie is where
Baker found the bright orange Cartonnier pants she wore
for the Business Journal.
“I prefer to wear pants that are colored,” she said. “I
don’t know why, but it seems to work into an outfit better.”
– Subrina Hudson
PHOTOS BY THOMAS WASPER
+1 604 278 4604
Market your
executive style.
Crayola crayons. “I have
a 5-year-old and I can’t go
somewhere without those.”
Pens. “I always
have pens with
me. Usually,
every two weeks
I have to purge
them because I
end up with 20.”
Toms sunglasses.
“My new favorite sunglasses.
They’re kind of a fun color.
As soon as I saw the color I
had to have these, and I think
Toms is a great company for
what they stand for.”
What’s in
your bag?
Scale. “Always have
to have a good scale
for meetings.”
Graf & Lantz
eyeglass sleeve.
“I am over 40 so I
always have to have my
readers. I’m kind of
lost without those now.”
Spa Ojai lotion.
“Ojai’s my favorite
place to go as a
family. We go up
there a lot. You feel
like you’ve left L.A.,
which is such an
amazing feeling.”
For more information,
please call 323.549.5225
+1 604 278 4604
COMMENTARY
Parking Up the Wrong Tree
40
Y
in Los Angeles and you know exactly what it is:
may have heard that Assemblyman
Those maddeningly confusing and contradictory
Mike Gatto of Los Angeles recently
parking signs.
proposed what he called a “Parking Bill
You park in what appears to be a perfectly fine
of Rights” to bring some relief to long-abused
spot and walk up to read the parking
motorists. When I read that, my heart
sign, just to be sure it’s OK. You
started racing. I was a little unsure of
see not one or even two signs, but
what to do since it’s been more than
maybe three, four or six signs. They
200 years since we last dealt with a
give you contradictory instructions.
Bill of Rights, but I was immediately
One sign, for example, says “2 hour
ready to petition the Continental
parking, 10 a.m. to 6 p.m., Sunday
Congress or do whatever you need
through Friday” but another sign
to do these days to get a bill of rights
directly above it, in red letters, says
ratified.
“No parking anytime.”
But alas, when I read more about
If you think I’m making that up,
Gatto’s bill, I sunk back a bit. What
you’ll
a picture of that very stack
he wants to do is alright, I suppose.
COMMENT of signsfind
posted on LAist. That outlet
But it just isn’t radical enough.
asked readers 1 ½ years ago to send
His bill proposes to:
CHARLES
photos of complicated or confusing
l Prohibit cities from ticketing
parking signs, and readers obliged.
motorists who park at broken
CRUMPLEY
I mean, you’re just parking
meters. The current law
your car to meet someone for
prohibiting this (authored by
Gatto in 2013) expires at the end of the year. lunch or to stop at a shop and suddenly you’re
faced with a puzzle that’s roughly equivalent to
l Require cities to make spaces available
decoding hieroglyphics. You see people all the
immediately after street-sweeping has
time standing in front of these signs scratching
concluded.
their heads, looking more baffled than Jeb Bush
l Require cities, when installing new highseeing his latest poll numbers. Didn’t the Geneva
tech meters, to allow demand-based
Convention outlaw this form of torture?
pricing. Motorists should not be required
The city loves the confusion because it gets
to pay the same fare at 11 p.m. that is
a lot of money from parking tickets (reportedly
required at 11 a.m.
more than $160 million in 2014). It’s a big growth
There are a couple other items in that vein,
area of city revenue.
and, like I said, it’s OK stuff, I suppose. But
I know the Los Angeles City Council last year
Gatto doesn’t touch the big problem with parking
OU
started experimenting with new parking signs
downtown that are simpler. They’re like a chart
depicting when you can and can’t park. Eventually,
those easier-to-figure signs are supposed to replace
the old ones across the city. But I’m skeptical.
Since the city has become addicted to parkingticket money, the city will probably slow-walk the
roll out. Or devilishly put those old “No parking
anytime” signs above the new charts, just to
make it so that you can still get a $73 ticket at any
moment. After all, this is the same city that tried to
rescind Gatto’s 2013 bill so police could still ticket
those who park at a broken meter.
Of course, L.A.’s retailers and small offices
complain about parking all the time. The scarcity
of parking spots, plus the likelihood that anyone
could get a ticket at any moment, tends to scare
off customers or make them not want to linger.
Honestly, if the city put those rational and easyto-figure parking charts everywhere and left them
alone, it could lead to a boom in commerce.
Like I said, Gatto’s bill is OK, I suppose. But
honestly, which would you rather see: demandbased pricing on parking meters or a permanent
ban on those confounding signs?
Until Gatto attacks the really important issue
of the intentionally contradictory parking signs,
he shouldn’t use such a grandiose name as a
“Parking Bill of Rights.” Maybe something more
like a “Parking Bill of OK Stuff. I Suppose.”
Charles Crumpley is editor of the Business
Journal. He can be reached at ccrumpley@
FEBRUARY 1, 2016
LOS ANGELES
BUSINESS JOURNAL
®
PUBLISHER & CEO
MATTHEW A. TOLEDO
[email protected] | ext. 207
EDITOR
CHARLES CRUMPLEY
MANAGING EDITORS
SANDRO MONETTI
OMAR SHAMOUT
NEWSDESK EDITOR
TOM HICKS
REPORTERS
HOWARD FINE
ELYSE GLICKMAN
OLGA GRIGORYANTS
SUBRINA HUDSON
CALE OTTENS
GARRETT REIM
NATALIE SCHACHAR
DAINA BETH SOLOMON
MARNI USHEROFF
CHIEF EDITORIAL PHOTOGRAPHER
RINGO H.W. CHIU
RESEARCH DIRECTOR
DAVID NUSBAUM
VICE PRESIDENT OF ADVERTISING
ERIC BRUNELLI
ASSOCIATE SALES MANAGER,
DIRECTOR OF EVENTS
DARRIN SENNOTT
ADVERTISING ACCOUNT MANAGERS
HELYA ASKARI
u LABJ FORUM
EVA JUSE
On Road
To Future
The city of Los Angeles has cleared the way
for the ridesharing UberX service at Los
Angeles International Airport. So the Business
Journal asks:
Will this change
anything for you?
MICHELLE LIMA
KOLLENE MCGINLEY
MONICA MULCAHY
JIM SLATER
u BRISSA SOTELO-VARGAS
Public and Governmental Affairs Manager
Tesoro Corp.
I may experiment with it, depending on the
price. I either drive to the airport or take the
flyaway to the airport now.
u JUDY JOHNSON
Chief Marketing and Communications Officer
Caruso Affiliated
I think consumer choice is great in every
industry. It recalibrates the marketplace and
challenges players once in a monopoly position. I
am not a consistent user of taxis or Uber, but now
that this has opened up, I would surely take an
Uber to the airport over a cab.
u VIVIAN RUTHERFORD
Chief Executive
Ronin Staffing/
Ronan Veteran Services
Yes, I will use ridesharing services to and from
the airport if it is convenient at the time. I believe
in fair competition and if it is more of economical
and convenient, why not?
u PAUL LITTLE
Chief Executive
Pasadena Chamber of Commerce
We are in Pasadena, so we avoid LAX if possible,
and use Burbank or Long Beach, which are more
convenient. If we do use LAX, we have a transponder
and drive using the carpool lanes and park in long-
term parking. I don’t see us changing our behavior
because of anything Uber might do at this point.
u JAMES E. MOORE II
Director
USC Transportation
Engineering Program
I likely will at some
point exercise the UberX
option at LAX, but first I
am going to have to find my
Apple password so I can
Moore
download the Uber app. I am
very pleased to see the market barriers around
transportation services being diminished. It is a
long-overdue public policy improvement.
NATIONAL ADVERTISING SALES MANAGER
ELLEN MAZEN
[email protected] l ext. 240
CLASSIFIED SALES MANAGER
ROSZ MURRAY
ADVERTISING COORDINATOR
MARIA SANTIZO
EVENTS MANAGER
JENNIFER HAKIM
EVENT COORDINATOR
JESSICA HAKIM
PRODUCTION DIRECTOR
SALLY JONES
ART DIRECTOR
JENNIFER RZEPKA
PRODUCTION ARTIST
KRISTIN SKAGGS-KIRBY
Los Angeles Business Journal Poll
UberX now can pick up passengers at Los
Angeles International Airport. Will this change
anything for you?
Yes. I will use
ridesharing
services to and
from the airport
now.
Maybe.
I might
experiment
with it.
14%
AUDIENCE DEVELOPMENT DIRECTOR
STEPHANIE CHENG
CIRCULATION MANAGER
ZAINABU BRYANT
CONTROLLER
NANCY SCHWARTZ
ACCOUNTS RECEIVABLES SPECIALIST
ELFLEDA DiPIETRO
ACCOUNTING ASSISTANT
ILANIT GLUCKOWSKY
48%
38%
ASSISTANT TO THE PUBLISHER
ELISE LOVETT
RECEPTIONIST
DENISSE RUIZ
No. I will stay
with my triedand-true method.
Online results for week ended Jan. 27.
5700 WILSHIRE BLVD., SUITE 170,
LOS ANGELES, CA 90036
(323) 549-5225 FAX 549-5255
www.labusinessjournal.com
Customer Service: (855) 293-9394
+1 604 278 4604
FEBRUARY 1, 2016
COMMENTARY
Costs Hit Too Close to Home
L.A. housing grabs bigger chunk of
owners’, renters’ income than other
more famously high-price areas.
Whatever the
city, more dollars spent
on rent means less
to buy groceries, pay car
expenses or
subway fares, obtain
insurance, and
have a little left over for
discretionary
activities or savings.
By TED M. HANDEL
A
FFORDABLE housing – an oxymoron tormenting virtually every prospective homeowner or tenant scrambling
to find a decent place to live in Los Angeles. If you
think it is tougher to become a homeowner in San Francisco
or San Jose, think again. And if you believe it is relatively easier on the pocketbook to be a renter here than New York, you
would be equally wrong.
Statistics paint a dismal picture of the L.A. housing market.
UCLA’s Luskin School of Public Affairs released a study in
August titled “Impacts of the Widening Divide: Why Is L.A.’s
Homeownership Rate So Low?” The authors point out, “The
Los Angeles metro area … has the lowest homeownership
rate among metropolitan areas in the U.S.” The percentage
of people who own their homes in Los Angeles County is 46
percent, while in New York it is 52 percent and 54 percent in
the Bay Area. It is also considerably below the national average of 64 percent. In addition, the UCLA study comments that
the metropolitan statistical area of Los Angeles “has the highest average housing burden and new owner costs.”
Local renters face an increasing financial burden, too. In a
press release published last year, Zillow indicates that in the
second quarter of 2015, local tenants paid 48.9 percent of their
income in rent, as opposed to 35.6 percent between 1985 and
2000. In contrast, for tenants living in the New York-Northern
New Jersey area, the figures were 41.3 percent for the same
quarter in 2015 and 25.3 percent for the period between 1985
and 2000.
Whatever the city, more dollars spent on rent means less to
buy groceries, pay car expenses or subway fares, obtain insurance,
and have a little left over for discretionary activities or savings.
Upward pressure
A variety of factors have contributed to this housing crisis.
Stagnant wages is a key one. A Los Angeles Times editorial, “How to get more affordable housing in Los Angeles,”
Actual Affordable Housing: Development in Boyle Heights.
observed in August that “Housing prices in Los Angeles have
grown four times faster than incomes since 2000. Similarly,
the UCLA study cited above notes, “Since 1970, renters in
Los Angeles, particularly those in the bottom income quartile,
have been severely burdened, paying more than 30 percent
and increasingly 50 percent of their income in rents.”
Land-use regulations also play a significant role. As planner and professor Gregory D. Morrow described in a Times
op-ed piece in July, “For much of the last 40 years, planning
in Los Angeles has been guided by the idea that growth is
bad, that more people mean more congestion, pollution and
social ills. The city has emphasized ‘downzoning’ – reducing
the number of units allowed to be built on properties – to
actively curb growth. It hasn’t worked. … Since 1970, half a
million more people have moved to Los Angeles than were
planned for. Housing supply simply has not kept pace with
growth, so it should be no surprise that L.A. has become the
least affordable city in the country.”
With 2016 being an election year, the forecast is for continued handwringing by candidates about the L.A. housing
crisis. Once the electorate has spoken in November and public
officials feel momentarily motivated to demonstrate their capacity to act, perhaps the scarcity of new housing development
initiatives will be replaced with those actually leading to more
affordable single-family homes and apartments being built.
This includes adoption of inclusionary zoning ordinances for
market-rate residential developments and enactment of state and
federal tax incentives to promote housing. For those looking for
a clean, decent, safe place to put their feet up after a hard day at
work, the hope is that speeches are replaced with real change –
beginning now.
Ted M. Handel is an attorney specializing in real estate, corporate and nonprofit matters at Valensi Rose in Century City.
Ex-CEO Says Unique Approach Powered American Apparel
By DOV CHARNEY
T
confirmation last week of American Apparel Inc.’s
plan of reorganization in Delaware Bankruptcy Court,
handing over control of the company to a consortium
of bondholders, was an outcome that I, as the company’s
founder and largest shareholder, had been working for nearly
two years to avoid. Much of the media attention has focused
on the corporate drama surrounding who would end up controlling the company, but there are important elements of this
story as well as implications of the bankruptcy court decision
that have been overlooked.
Since relocating American Apparel to Los Angeles in the
late 1990s from South Carolina, I have been a leading advocate of Made in USA apparel manufacturing. Many people
challenged and ridiculed the logic of my business model, since
widespread offshoring to take advantage of cheaper overseas
labor was the dominant trend. American Apparel was one of
the only companies that shattered the sweatshop paradigm
by manufacturing in the United States, paying fair wages and
doing so at scale. By the time American Apparel went public in
2007, it was running the largest apparel manufacturing plant in
operation in the United States. Today, domestic manufacturing
has become a fashionable topic, but for many years I was a solitary voice promoting its merits.
Many observers claim that the historical financial performance of American Apparel is a poor one. The truth is that
until I was removed as CEO in 2014, American Apparel had
posted positive earnings before interest, taxes, depreciation and
amortization in nine of the previous 10 years. That is to say
that American Apparel, as a business, generated positive cash
flow from operations.
I believe American Apparel had been successful for so long,
and as a brand captured the imagination of so many people,
because our organization respected and celebrated creativity
and unorthodox thinking. Having defended the company’s
unique business model for so many years, I knew that if it
abandoned the contrarian logic that had made it successful, the
company would no longer be profitable. A vertically integrated
HE
domestic manufacturer had to approach business in a fundamentally different manner than that of other retail and apparel
companies.
Turnaround interrupted
When I was first terminated in June 2014 (with false allegations of misconduct as the pretense), I was midway through
a successful turnaround of American Apparel’s business, after
a disastrous move of the company’s distribution operations
from downtown Los Angeles to La Mirada. This project had
been spearheaded by the company’s chief financial officer,
with support of the company’s board of directors, despite my
strenuous objections. After bringing the company back on
track to achieve its EBITDA earnings guidance of $40 million
for 2014, I was asked to relinquish my positions as CEO and
chairman, as well as the voting rights of my stock. The bondholders were pressuring the directors to sell the company and
could not do so while I was involved.
I first entered into partnership with the hedge fund Standard
General in June 2014 because of their stated desire to reinstall
me as CEO of the company. I was attempting to regain control
of the company because of my concerns that American Apparel was still in a very vulnerable position with its turnaround
not yet complete. I feared that new management, not understanding what made American Apparel successful in the first
place, would try to run the company in a more “conventional”
but ultimately unsuccessful and unprofitable manner. When
Standard General did not deliver on its promises to reinstall
me as CEO by late summer 2014, I made numerous offers to
buy out Standard General as well as the company. All of those
transactions would have resulted in superior recoveries to the
company’s stakeholders.
In December 2014, the board rebuffed a buyout offer of
$1.30-$1.40 a share from a private equity firm, claiming that
it significantly undervalued the company. Instead, the board
pursued a path where only a year later the shareholders are
receiving zero. The recent offer made in conjunction with
Hagan Capital to purchase the company at a valuation of $300
million was just one in a long list of similar offers. There was
no reason to believe that the Hagan offer would end any differently, given the powerful forces steering the company toward a
reorganization where the bondholders would end up owning the
company. While many parties close to me feared that this would
be the outcome of my partnership with Standard General, and
even the hedge fund’s ultimate goal, even they could not fathom
its deception.
Leaving Los Angeles?
I firmly believe the path being followed by the company’s
management is a road to ruin. The financial results of plummeting sales and EBITDA thus far support this. Management’s
attempts to explain away their abysmal financial performance as
the result of inadequate liquidity, but the truth is that they misunderstand the unique business model that American Apparel must
pursue as a vertically integrated domestic manufacturer. Management is surely evaluating moving its operations out of Los
Angeles and into nearby areas such as Vernon and Commerce to
avoid recently passed minimum-wage ordinances. This is what
a company does when it is run by purely financial actors like
hedge funds, and cannot count on innovation and creativity to
generate a compelling brand story and grow its sales.
I plan to vigorously pursue my legal cases over the fraudulent manner in which ownership of American Apparel was
taken from me, but I worry for the manufacturing workers
and the L.A. apparel industry who are collateral damage in
this bankruptcy. Many of the company’s loyal vendors will
recover only cents on the dollar of what they are owed. The
company’s workers, faced with current management’s inability to generate sales, face a highly uncertain future. American Apparel has ranked as one of the largest private-sector
employers in Los Angeles now for many years. As a long-term
resident of downtown, the company brought over 4,000 jobs
into the area, sparking a renaissance of industrial activity and
a revitalization of the area. While I will certainly be back, Los
Angeles is a clear loser as this chapter of the story closes.
Dov Charney is the founder of American Apparel and was the
company’s chief executive until mid-2014.
+1 604 278 4604
FEBRUARY 1, 2016
“Banking with First Republic is a wonderful
experience – I forgot this level of service existed
anywhere.”
P A U L TA Y L O R ’ S A M E R I C A N M O D E R N D A N C E
Paul Taylor, Choreographer
(855) 886-4824 or visit www.firstrepublic.com New York Stock Exchange Symbol: FRC
Member FDIC and Equal Housing Lender
+1 604 278 4604

Ranked #1 - DLA Piper

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