Small Tenants Have Big Impact
As intrepid fans of the commercial real estate community, we've got more on our minds than just whether LA will finally see the return of NFL football. That's why we're excited to host Bisnow's 5th Annual LA State of the Market, Wednesday, Jan. 14, at the JW Marriott at LA Live, starting at 8am. (Sign up here.)
Among our speakers will be Rising Realty president Chris Rising, who's looking forward to the opening of the Cross Campus co-working facility at his property in Pasadena (87 N Raymond). The collaborative, on-demand work space and business event venue will occupy close to 20k SF on four floors for its second SoCal location. RRP's office complex, located across from the train station in the heart of Old Pasadena, is fully leased. Chris also reports the firm's PacMutual campus in DTLA had an extremely strong 2014 in terms of tenant interest and deals. It was a year that showed you can have a lot of activity and absorption with small tenants, attracted by Downtown's density, transportation network and vibe, Chris adds. The firm, founded by Chris and father Nelson Rising, is continuing a legacy of nurturing young stars. We had a great sit-down with Chris this month.
Another top speaker: Liberty SBF managing director Alex Prombaum (snapped with Golden State Warriors star Stephen Curry) tells us his company is making a push to be one of the biggest hotel lenders in the country. The firm just closed a sizable line of credit with Capital One to make SBA 504 loans--one of the most popular programs by which hotel owners finance their properties--on a nationwide basis, with incentives to referral sources. Last year, the firm did about $100M in direct financing--up 50% from the previous year--tripled its staff and opened several new production offices across the country. Liberty, which now has four products, has a target to do $400M in financing deals this year. When he's not thinking about loans, Alex sometimes moonlights as a singer in a cover band.
Allen Matkins partner Tony Natsis (with wife Demetra, son Niko and Niko's fiancée Nicola Kronstadt) says 2015 should be another busy year. He'll interview Kilroy Realty CEO John Kilroy at the event. Tony says the more robust players on the West Coast--Kilroy obviously being one--are following their game plans and not slowing down. That said, their playbooks have evolved over the past several years. Clients now are more focused on value-add and development opportunities, as opposed to buying existing, well-leased product, and everybody is trying to expand to the additional hot markets. If you were killing it in S.F., Tony says, you're expanding your geography to Seattle/Bellevue. (In the middle of the last decade, folks debated even going to Seattle, a market that's now time-tested.)