The Mortgage Bankers Association (MBA) has revealed the top commercial and multifamily real estate lenders for 2023. Topping the list of originators are well-known names in the industry, including JLL, CBRE, JPMorgan Chase & Company, Newmark, Meridian Capital Group, Eastdil Secured, Walker & Dunlop, Berkadia, KeyBank, and Wells Fargo. In government-backed lending, Berkadia and Walker … [Read more…]
When cityapproval of a proposed $350 million skyscraper in downtown Los Angeles was on the line, project manager Hamid Behdad knew he had to give in to the last-minute demand of a planning commissioner to quadruple the number of electric vehicle charging stations in the condominium tower.
“When you are in the heat of the hearing in the last leg of the proposal, you aren’t going to say no,” Behdad said, even though he thought the requirement was overkill.
Today, with the Perla on Broadway complete and angling for buyers, Behdad said he is “extremely glad that commissioner forced us” to install chargers on 20% of the building’s parking stalls.
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“If we didn’t have these 90 chargers, we would be in real trouble selling units,” he said.
Landlords of apartments, hotels, office buildings and other commercial properties are rushing to avoid similar trouble. And owners of convenience stores, fast food chains, movie theaters and big box retailers are hoping to cash in on EV chargers to lure customers with time to kill as they fill up.
Charging centers are just the first step of commercial landlords scrambling to adjust to a historic burst of change in the world of transportation, with once fantastical notions like autonomous cars and air taxis nearing fruition.
Some companies are building charging centers that are a giant step beyond electrified gas stations. Elon Musk’s Tesla, for instance, is building a whimsical drive-in movie and diner complex in Hollywood where Tesla owners can entertain themselves while loading their batteries.
Fancy L.A. shopping centers such as the Grove and Westfield Century City have chargers, as do the more workaday Walgreens, Walmarts, Subways and 7-Elevens.
The arrival of Tesla’s Model 3 and other more affordable electric vehicles are helping EVs seize market share from gas-powered vehicles, putting more pressure on the historically slow-changing real estate business to get with the times.
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The immediate issue is installing enough chargers to meet growing demand and seize business opportunities. But other advances in transportation technology stand to rewrite centuries-old rules about how buildings are designed and built.
When cars no longer spew toxic fumes and can park and drive themselves, hotel and office lobbies might be designed for cars to drop off people inside and go off and do their own thing. In the not-too-distant future when visitors arrive by electric air taxis, buildings might need a second entrance lobby on the roof for the drones to land. Los Angeles officials are planning for such flying vehicles to be operational by the 2028 Olympics and are looking at how to regulate them.
“What happens when you blur boundaries between automobiles and architecture?” said Dylan Jones, a strategic planner specializing in mobility for architecture firm Gensler. “Do you need a garage in the building? Can you sell your car’s energy” to your landlord?
Such technological shifts could require dramatically different building designs, but few developers are looking that far ahead, he said. It’s the nature of the business that typically operates in five-year cycles of building and selling.
“The real estate industry is funny because developers don’t want to speculate about the far future,” Jones said. Developers “want to be able to just peek around the corner and see what’s coming” and be set up to succeed with technology that will exist when the building opens.
Los Angeles developer Walter N. Marks III sees a lure in new technology for a luxury apartment tower he is planning on Wilshire Boulevard with a mechanized parking system that will whisk cars out of sight and charge them if desired.
Tenants will drive their cars onto a movable metal pallet that will quickly park them underground andpower up electric vehicles if the resident plugs it in.
Marks is already operating a mechanized parking system at Helms Bakery District, a historic collection of shops and restaurants his family owns in Culver City. It doesn’t charge cars, but in the future he wouldn’t install a system that didn’t, he said.
All new automobiles and light trucks sold in California will be required to be zero-emission by 2035. The electric age is here. But the autonomous one is less certain. Marks is skeptical of predictions that consumers will give up their private automobiles in the near future and rely on fleets of robot taxis to ferry them about.
“I do believe that the car culture in Los Angeles is unique and very powerful,” he said. “People take their cars extremely seriously, and I think we need to recognize that and honor it.”
Jones thinks attitudes about driving your own car may change quickly when autonomous vehicles are reliably safe and data show that people are more likely to be killed by human-driven vehicles than autonomous ones.
“Drivers will become the smokers of the future; they’ll be socially shunned,” he said. “People will look at them and say , ‘Oh, you drove to work today? My kids are on the street. What are you doing?’”
That era is yet to come. At this point, the push is on among housing developers to provide charging stations to the growing number of tenants demanding them.
Socially conscious housing developer Cityview is rushing to add them to its existing apartments, including a building with only eight units, Chief Executive Sean Burton said.
Cityview usually adds as many stations as existing buildings’ electrical systems can handle, he said. Properties that weren’t constructed with charging in mind are often limited in how much power they can supply to chargers.
“In general I think building owners are adopting more slowly than they should,” Burton said. “We try to be more leading edge on sustainability issues.”
An apartment management company that manages 76,000 units for various owners is racing to meet rising demand in part by retrofitting garage electrical outlets to handle 210 volts for Level 2 charging, said Jackie Impellitier, vice president of operations for ZRS Management. That is the common commercial system for charging that takes about three to eight hours. The price of charging is added to tenants’ electrical bills.
“The thing we are all acknowledging is having charging stations is no longer an amenity, it’s a necessity” to attract and keep tenants, she said. “We are going to start losing renters if we don’t have easy and convenient access” to charging.
Most apartment developers and owners “weren’t even paying attention to EV drivers” as a category of tenants five years ago, Impellitier said, when Tesla stood practically alone as the provider of electric vehicles. “Now, every carmaker has an electric model.”
Charging stations are commonly installed and operated by third-party vendors. The big expense for landlords is getting sufficient electricity to garages and parking lots to support Level 2 charging. (The lower Level 1, plugging into a common 120-volt electrical outlet, can take more than a day if you’re charging from empty).
Level 3 chargers that can charge a car sufficiently in as little as 20 minutes run on at least 400 volts. They are expensive to set up and require electrical infrastructure not typically found in residential buildings
Automotive data provider S&P Global Mobility estimated in January that there are about 126,500 Level 2 and 13,487 Level 3 commercial charging stations in the United States today, plus another 16,822 Tesla Superchargers and Tesla destination chargers. The number of chargers grew more in 2022 than in the preceding three years combined, S&P said.
Among them are chargers at fast-food and other convenience businesses that hope customers buy things while their cars charge. Earlier this year 7-Eleven Inc. said it intends to build one of the largest fast-charging networks of any retailer in North America and already has chargers in four states, including California. Drivers pay through a phone app.
“7-Eleven will have the ability to grow its network to match consumer demand and make EV charging available to neighborhoods that have, until now, lacked access,” the company said in a statement.
Sandwich maker Subway is rolling out a variation on the theme — charging “parks” with multiple charging stations that also happen to have restaurants. These Subway Oasis charging parks will have picnic tables, Wi-Fi, restrooms, green space and playgrounds, the company said. They’ll be rolled out across the country at new or newly remodeled locations
Drug store chain Walgreens claims to be “the nation’s largest retail host” of chargers with more than 430 locations offering them. Other household-name retailers installing chargers include Ikea, Kohl’s, Walmart, Starbucks, Whole Foods, Taco Bell and theater chain Cinemark.
Additional concepts for charging stations with retail services intended to attract customers with time to kill are emerging.
Tesla, the giant of the EV industry with a growing network of fast chargers, is rolling out what it calls a supercharger diner and drive-in theater in Hollywood that promises an “American Graffiti” style pit stop for Tesla drivers perhaps running 24 hours a day.
Tesla is constructing the charging and entertainment complex on Santa Monica Boulevard — historic Route 66 — near a trendy stretch of Sycamore Avenue that has celebrity-favored restaurants, upscale shops and art galleries.
The car maker paid $16.7 million last year for a corner lot at Orange Drive where a shuttered Shakey’s Pizza Parlor was demolished to make way for the two-story project that could become an iconic venture for Tesla. The plan calls for a restaurant and two movie screens showing features that last half an hour, roughly the time it takes to charge a vehicle.
The complex is to have 29 fast superchargers and five Level 2 chargers available around the clock, while the theaters, visible from both cars and rooftop seating, would operate from 7 a.m. to 11 p.m. A screen of bamboo would shield Tesla’s movies from the street.
On the I-15 freeway between L.A. and Las Vegas, the developers of a charging station set to open in January expect to charge around 10,000 vehicles per month. The 24-hour outpost will have 40 fast charging station around a yet-to-be-announced nationally known coffee seller, said Lester Ciudad Real, co-founder of StackCharge, which is developing the project near a freeway exit in Baker.
The opportunity to charge while parked at the office has also emerged as a must for tenants. A recent survey by real estate brokerage JLL found that tenant-demanded clauses calling for charging were among the least likely to be included in existing office space leases signed in years past but would be the top priority in future negotiations.
But office building owners are stuck trying to strike the right balance. They must keep up with growing demands without overspending on chargers that aren’t needed yet, said Rex Hamre, national director of sustainability for JLL. It’s usually easy to add up to 10 stations, but trying to make even 20% of the spaces charge-ready in a 600-car parking facility could incur steep costs for electrical infrastructure.
“We are still at the cutting edge of this transition,” Hamre said. “Innovative companies are taking advantage of it as an opportunity.”
EV refueling could lead to changes in how cities look in ways that have yet to be fully imagined, architect Jones said. Gas stations in prime urban locations could give way to hybrid buildings with coffee bars, co-working offices and meeting rooms, built around indoor charging points.
“Word Perfect made typing easier, and then computers became more ingrained and it did things a typewriter could never do,” Jones said. “We’re in the early stages where the first EV charging infrastructure we’re seeing is a replication of what we understand is a refueling station. But in the future they’re going to look and feel much different.”
[Editor’s Note: Geek Estate Offers are special offers members of the Geek Estate Mastermind]
CREtech is THE place for news and events for the commercial real estate industry. In a few weeks (October 16-17th), they are putting on the largest East Coast commercial real estate event, CREtech New York Conference at Dock 72, one of the largest NYC ground-up developments to be built outside of Manhattan in decades.
All of the major tech trends in office, industrial, retail and multifamily including CoWorking, Data, A.I., ConTech and more will be discussed by those leading the tech revolution in CRE. Speakers include Brad Greiwe and Brendan Wallace from Fifth Wall, Andrea Jang from JLL Spark, Granit Gjonbalaj from WeWork, Michael Rudin from Rudin Management Company, and Steve Weikal from MIT’s Center for Real Estate, among many many others.
Attendees will have the opportunity to set up one-to-one meetings during our speed dating breaks, hear from the most sought-after thought leaders and meet the leading startups, investors, developers/owners and brokers.
On December 20th, Bank of America downgraded shares of Re/Max (NYSE:RMAX) to a sell rating with a $56.00 price target on the financial services provider’s stock. Analysts from Zacks also downgraded RMAX to a “sell” rating in a later report. Other analysts have rated the stock as a buy or hold on an earlier earnings report from RMAX.
As of this writing, RMAX shares are down to $30.92 from a six-month high of $56.25 per share. Despite the negative trend, there is good news for those vested in the stock. A recent Zacks Equity Research report the day before Christmas spotlighted RMAX in a crisp comparison with Jones Lang LaSalle (JLL) which revealed a lot about the short and long-term potential of both stocks. As I type this, Jones Lang LaSalle retains a Zacks Rank of #2 (Buy), while RE/MAX is lagging with a Zacks Rank of #4 (Sell). But, the Zacks report goes on to reveal why JLL is rated so much higher than RMAX.
Key among the other variables Zacks is the fact JLL has a P/B ratio of 1.59, while RMAX has a P/B of 7.17. As a reminder, the P/B ratio is what Zacks and other analysts use to compare a stock’s market value against its book value. The basic equation is the result of subtracting total assets minus total liabilities. The corresponding value is the reason JLL holds a Value grade of A, against RMAX with a Value grade of C. Other variables in the report explain why so many analysts have devalued RMAX recently. JLL currently has a forward P/E ratio of 11.45, against RMAX forward P/E of 12.94. Other metrics paint a clearer picture for the struggling stock.
Another kind of predictor called the Altman Z score was developed a few decades ago by an. Published by Edward I. Altman back in 1968, the Altman Z can predict a company going bankrupt within 2 years with 90% accuracy. Currently, RMAX Altman Z score of 3.734334, which indicates the company is unlikely to default in the next couple of years. RMAX stock stands nearly -52.83% off versus a 52-week high and 3.81% off from the 52-week low, with the current shares currently owned by investors at 18.14 million. Mixed as these signals seems to be, it’s good advice for investors interested in quality ratios of RMAX to into consideration the Gross Profitability of the stock, which is currently 0.498758. Another factor of confidence for RMAX is the moderately low Montier C-Score of 2.0, which indicates the company is unlikely to be cooking the books. A million mixed signals, so what’s the bottom line on RMAX?
Even the most profitable and stable stocks face setbacks from time to time. The mixed or even negative signals in media make the trading decision a tricky job at best. It’s a certainty that making these decisions based on one piece of data is a perilous strategy, but deciphering myriad equations and functions are no less hazardous. Negative information about a company usually prompts investors to sell quickly without delving into the deeper metrics. The same is true where positive intelligence is concerned. As for RMAX value now, my recommendation in a mixed bag of appraisals is to follow the big money. Having said that, BlackRock Inc. increased its position in Re/Max by 6.5% during the 2nd quarter of 2018, and now owns 2,432,754 shares of the financial services provider’s stock worth $127,598,000. BlackRock, for anyone who is not aware, is not in the business of losing investments. So, the “sell” rating put on RMAX means “buy” at the right price in my book. The next quarter of trading will tell, but my money is on holding the shares.
Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
In our latest real estate tech entrepreneur interview, we’re speaking with Andrew Flint from Occupier. He is a recent addition to the GEM.
Who are you and what do you do?
My name is Andrew Flint and I am a Co-founder of Occupier along with Erik Pearson and Matt Giffune. Occupier is a Real Estate Success platform that enables businesses and tenant-rep brokers to make better real estate decisions. Our software engages internal and external stakeholders around lease administration, transaction management, and lease accounting to execute the workflows most important to aligning real estate with the operational needs of the business. We launched Occupier after working together at VTS, now the leading leasing asset and management platform for landlords. Prior to that, Matt and I spent approximately 10 years as commercial real estate brokers at JLL in NYC and Boston. It was through these previous experiences that we recognized how far behind tenants, landlords and brokers were in terms of using technology to manage their business. Proptech has exploded over the past 5-7 years, however the primary focus has been on landlords, leaving an enormous opportunity to create technology focused on the tenant and their teams.
What problem does your product/service solve?
First and foremost, we provide a modern lease administration platform focused on making key lease details like critical dates, financials, and documents readily accessible and actionable to all relevant stakeholders, both internal and external. Second, as new FASB ASC-842 accounting guidelines go into effect with private companies, businesses need to comply with how they disclose their real estate holdings on their balance sheet. Without centralized lease data and the ability to measure it, companies put themselves at risk of non-compliance, hence our Q3 launch of a seamlessly integrated lease accounting module. Finally, Occupier drives a more efficient transaction process by engaging the tenant-rep broker into a dynamic workflow that centralizes all deal communication, site selection, and negotiation in one place, increasing the pace and accuracy of lease transactions.
What are you most excited about right now?
During the coronavirus lockdown, it’s been unbelievable to see the team come together and thrive. We have been heads-down on product development and onboarding new customers, moving closer launch of Occupier Lease Accounting in Q3. There is a ton of pent up demand to leverage that module alongside lease administration and transaction management. In May, we kicked off our participation in Reach 2020, a proptech focused accelerator we are extremely excited about given its association with NAR, CCIM, and SIOR.
What’s next for you?
While we are fully focused on the business right now, we are also poised to raise a proper venture round within the next 9-12, enabling us to bring on additional product, sales and marketing, and customer success resources. With additional firepower and a solid foundation, what we will be able to provide tenants and brokers will drive significant efficiencies in how companies make real estate decisions and how brokers grow their business.
What’s a cause you’re passionate about and why?
It is no secret that our country has a serious problem with racial injustice, with the killing of George Floyd shining a light on these problems. As a team we support causes, like the Black Lives Matter movement, that will force long overdue changes in America. We believe we can make a direct impact by committing to building a diverse team as we grow. Personally, I am passionate about supporting community organizations like Grand Street Settlement in the Lower East Side of NYC, that provide programs and services to families, youths and seniors across the city. Before having kids, I volunteered for 7 years, and most recently made a donation after hearing funding for summer youth programs had been cut. These are times where we need to figure out ways to double down on programs like theirs which build up our communities.
Thanks to Andrew for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
[Note from the editor: Originally published on Thomvest’s Blog]
Today we’re releasing an updated version of our commercial real estate technology market map. The full list of companies is available here, and a high-resolution version of the map can be accessed here. This market map includes more than 220 technology companies operating across every aspect of commercial real estate, and range from seed stage businesses to public companies. If you’d like to suggest a company to be added to this market map, please submit them using this form.
Broadly defined, commercial real estate (CRE) includes any property owned to produce income. In total, more than 100 billion square feet of space in the United States is devoted to commercial use. Because commercial property is acquired for investment purposes, it differs from its residential counterpart in several important ways:
Commercial real estate is a diverse asset class that can take on many forms: office buildings, retail stores, malls, apartment complexes, homes, hotels and more.
Every property is analyzed for its ability to generate income. In most cases, there is a leasing component to commercial property ownership (which is the main revenue-generating activity), whereas in residential real estate properties are often owner-occupied.
Commercial properties are actively managed by teams responsible for leasing, routine maintenance, improvements and amenities to ensure that the building is suitable for occupants.
As the map above indicates, there are hundreds of technology companies across every aspect of the commercial real estate lifecycle, from property search and financing, to leasing and ongoing management. You’ll notice that several companies are included in more than one section — this is due to the fact that many of these businesses have expanded their product areas to capture multiple phases of the CRE lifecycle. For example, VTS recently launched a listings marketplace offering to compliment its suite of leasing and asset management tools. As such, we’ve included VTS in both the “Find Property” and “Manage Property” sections.
Assessing the Impact of COVID-19 on Commercial Real Estate
It’s no secret that the pandemic has dramatically altered our ability to utilize commercial real estate. The pandemic has impacted every CRE segment (office, hospitality, retail, etc.) and every phase of the asset ownership lifecycle (leasing, financing, utilization, etc.). The pandemic will likely continue to influence occupiers and end users of real estate in unprecedented and unique ways, which will have implications for the entire CRE industry.
This is particularly true in the office segment, as the abrupt change in the way we work has required mass remote working. Interestingly, as companies have transitioned from office work to remote work, many employees are reporting no meaningful impact on productivity. Even as lockdowns are slowly eased, as many as 75% of employees prefer to work from home out of caution or convenience. This has caused many in the industry to ask: Is the office as we know it dead?
Given these lingering existential questions, we’re witnessing the reimagining of office environments designed to anticipate what the “next normal” will look like. Tenants and landlords are working hard to determine an approach for re-entering the office, and the impact of remote work on future space needs. While there are many questions we’ve yet to answer, we anticipate the office category evolving in several important ways, and expect technology companies to play a central role in that evolution:
Emphasis on Safety:As new case volume persists, businesses have been cautious to re-open offices. In an August survey of 15 employers that collectively employ about 2.6 million people, 57% said they had decided to postpone their back-to-work plans because of recent increases case volume, according to the Wall Street Journal. Employers are also developing safety measures to facilitate a smooth re-opening, including redesigned workspaces and temperature checks. We expect additional safety standards to be developed, including staggered employee schedules, space plans to promote social distancing, safe hygiene practices, cleaning protocols, and guidance on using elevators. Technology is a key component of ensuring that both tenants and landlords abide by these emerging safety protocols.
Flexible Work Arrangements:The pandemic catalyzed a massive work-from-home experiment. In many cases, employees actually prefer remote work as it provides flexibility, reduces (or eliminates) commute times and enhances productivity. More than 75 percent indicate they would like to continue to work remotely at least occasionally, while more than half — 54 percent — would like this to be their primary way of working, according to IBM. The forced shift to operating remotely has led to nearly 40 percent of employees indicating they feel strongly that their employer should provide opt-in remote work options when returning to normal operations.
Flexible Space Needs: As offices reopen after COVID-19 shutdowns, we will likely see a mix of new use cases. Some companies will require more office space to further space out employees and reduce potential transmission, while others will move to permanent work-from-home arrangements or a hybrid of home, co-working, and office spaces to minimize commutes and maximize social distance. This will create more demand for flexible office space, including co-working space offered by companies like WeWork and Industrious. According to JLL, 67 percent of corporate real estate decision-makers are increasing workplace mobility programs and are incorporating flex space as a central element of their agile work strategies. JLL “expects 30 percent of all office space globally to be flexible in some form by 2030” (up from about 3% today).
In every industry, technology is an important enabler of not only process efficiency, but also of customer satisfaction and growth, and real estate is no exception (particularly during this pandemic). We’ve already seen technology companies step up to offer useful solutions for landlords and tenants. For instance, companies like Envoy are offering safety-focused tools including employee registration, touchless sign-in, wellness checks and capacity management to employers preparing to re-open their offices. We also expect accelerated adoption of digital solutions related to property and building management, leasing and transaction management. Working on furthering the adoption of technology in real estate? We’d love to talk.
Radford Studio Center, a storied movie lot in Studio City that has been home to generations of landmark television shows — including “Gunsmoke” and “Seinfeld” — is set to get a $1-billion upgrade to expand its facilities and bring them further into the digital age.
The owners of the lot formerly known as CBS Studio Center submitted plans to Los Angeles officials Friday to revamp and enlarge the aging studio and broadcasting complex, adding as much as 1 million square feet of new soundstages, production facilities and offices.
Founded by movie comedy legend Mack Sennett in 1928, the lot became known as “Hit City” in the decades after World War II as popular TV shows such as “Leave It to Beaver,” “Gilligan’s Island,” “The Mary Tyler Moore Show,” “The Bob Newhart Show” and “Will & Grace” were made there. Current shows include “Big Brother 24” and “Physical.”
“It’s got this mystique that if you come there you’re going to make it,” said studio President Mike Klausman, who has worked on the property since he started there as a CBS page in 1971.
The Radford complex was the very studio lot that gave rise to the name Studio City. It’s had numerous incarnations, including decades as Republic Studios, home to such screen legends as Roy Rogers, John Wayne and Joan Crawford. Among Republic’s popular movies were “The Quiet Man,” “Sands of Iwo Jima” and “Johnny Guitar.”
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The current state of the 55-acre studio is less glamorous than its heritage would suggest, having evolved like an old city where new additions, often built on a tight budget, were layered over and around existing structures.
“There was never really a master plan,” Klausman said. “You would never tear down anything, just add on. We had to work around what was there.”
Bungalows for writers and stars — often quaint structures from Hollywood’s Golden Age on other historic movie lots — are clusters of mobile homes delivered in the 1990s when times were lean, he said. The vast roofs of soundstages used to drain rainwater directly onto the asphalt roads below.
“You almost needed a boat to get from one studio to another,” Klausman said. “It was like a river in that place.”
The drainage issue has been fixed, and times are no longer lean as the rise of streaming has escalated demand for soundstages and other production facilities and prompted the development of new studios in the Los Angeles region. Radford and other studios are booked year-round.
Though it is outwardly unassuming with its main entrance tucked around a corner from Ventura Boulevard on Radford Avenue, the Radford studio is among the most valuable in the world based on price. It sold in 2021 for $1.85 billion to Hackman Capital Partners, one of the largest providers of entertainment production facilities, and New York real estate investor Square Mile Capital Management.
“The history of hit shows that have been produced at Radford trace the trajectory of culture and entertainment in Los Angeles,” said Zach Sokoloff, a senior vice president at Culver City-based Hackman, who plans to complete its makeover.
Its location in an upscale Los Angeles neighborhood near other illustrious movie studios beloved by filmmakers made Radford highly sought after when it hit the market nearly two years ago, said real estate broker Carl Muhlstein of JLL, who represented seller ViacomCBS in the deal. There were multiple bidders for the property, he said.
“Between Studio City and Burbank there are four iconic studio lots. Disney, Warner Bros. and Universal haven’t changed hands for over 100 years,” he said. “Here was an opportunity to buy something that only became surplus with the merger of CBS and Viacom” in 2019.
In addition to the real estate assets, ViacomCBS (which now goes by Paramount Global) turned over its lucrative studio operations business at the former CBS Studio Center, which includes stage rentals, facilities management and production support services on the Radford lot.
ViacomCBS sold another former CBS property, Television City in L.A.’s Fairfax district, to Hackman for $750 million in 2019. Paramount Global controls legendary Paramount Studios in Hollywood.
CBS’ two L.A. television stations, KCBS-TV (Channel 2) and KCAL-TV (Channel 9), are housed at the CBS Broadcast Center on the Radford lot, and the local news operation will stay put as part of a long-term lease-back.
CBS, which acquired the property from Republic Pictures in the 1960s, will continue to occupy stages and produce content on the Radford lot. CBS-produced shows there now include “SEAL Team,” “Entertainment Tonight,” “The Neighborhood” and “The Talk,” which is recorded before a live audience.
In its present form, Radford Studio Center offers tenants 18 traditional soundstages and four other stages. The site also has about 210,000 square feet of production office space and its own mill to provide carpentry services and special effects, a commissary and a carwash.
It has a backlot with a “Central Park” and a “New York Street” with 11 building fronts, including four brownstones. It also includes simulated residential neighborhoods with a hodgepodge of houses in different architectural styles, including a facade used as the Cleaver residence in the sitcom “Leave It to Beaver.”
Hackman’s proposal calls for creating a largely new studio with 2.2 million square feet of buildings, including up to 25 soundstages and 300,000 square feet of production support space such as wardrobe, storage and a mill. There would be 725,000 square feet of offices to support productions and an additional 700,000 square feet of offices available for rent to companies in the entertainment industry.
Historic structures, including the Mack Sennett Building and Stages 9 and 10, would be preserved.
To improve access, an entrance off Ventura Boulevard at Carpenter Avenue would be “resurrected,” Sokoloff said. The studio once had an entrance there, but it closed several decades ago.
Also planned is a new bridge over Tujunga Wash at Moorpark Street that would make Radford Avenue a through street. Only vehicles going to the studio could cross the bridge, but it would be open to members of the public on foot or on bicycles. The Los Angeles River Greenway, a 51-mile bike and pedestrian path, is currently interrupted at Radford Studio Center and a new bridge would close that gap.
Hackman owns five studios in the L.A. region, along with facilities in New York, New Orleans, Ireland, Canada, London and Scotland.
The company plans $1.25 billion worth of improvements to Television City that will add soundstages, production support facilities and offices for rent.
Though the Los Angeles area has the largest number of soundstages of any city in the world, studios are operating near 100% capacity with waiting lists as long as five film productions deep for those spaces, financial advisor Deloitte said in a 2021 report.
“To meet the booming demand, supply would need to more than double in Los Angeles County” in the next few years, Deloitte said. Planned projects for more studio space fall far short of that.
The Radford Studio project would add more than 4,000 workers upon completion, doubling the number of people employed there now, according to a study by the L.A. County Economic Development Corp.
After making a $325-million deal for the Village shopping center, Rams owner Stan Kroenke is set to develop a massive mixed-use complex in the San Fernando Valley.
Office-leasing giant Jones Lang LaSalle Inc. is entering the booming market for rental houses. So reports The Wall Street Journal. JLL has announced a pact w