Governor Jerry Brown signed a bill last week that lawmakers hope will encourage a surge in housing development in Southern California and throughout the state. But some real estate experts and developers say it does not go far enough, since it maintains restrictions based on outdated zoning laws.

When Senate Bill 35 goes into effect on Jan. 1, it will require California cities that lack adequate housing to streamline their permitting processes. Those cities must approve all apartment and condo developments — provided that they comply with zoning laws and 10 percent of the units are affordable, among other requirements. This will allow developers of projects that meet the guidelines to skip the expensive and often years-long review process that involves environmental impact reports, city council votes and court challenges.

Under SB-35, height or unit count cannot be altered in the design review process, which will be expedited and focused on architectural design. Also, all minimum parking requirements will be waived.

SB-35 had the support of the California Apartment Association, the Los Angeles Chamber of Commerce, Governor Brown, and Mayor Eric Garcetti. The real estate industry largely believes it is a step in the right direction, but some are concerned the bill still includes too many restrictions. Here are some of them: Accessory dwelling units can qualify for SB-35’s streamlining, but single-family home developments will not; proposals will not qualify if they include demolition of existing rent-controlled housing; developers of qualifying projects must pay construction workers prevailing wages; qualifying projects must follow zoning laws and must not exceed 200 feet in height.

“The legislation gives with one hands and takes with the other,” said David Waite, a land use attorney and partner at Cox Castle & Nicholson in Los Angeles. “As much as the goal [of SB-35] is a good one, the practical reality of what projects can qualify is an open question.”

SB-35 may not lead to as much housing as lawmakers hope because developers will “constrained” by L.A.’s outdated zoning standards, which only allow small projects to be built in many areas, Waite said. To build a residential project of any scale, developers need to request zone changes to increase the floor area ratio allowed on a site, he said. But such a request disqualifies a project from SB-35 streamlining.

“The height restriction is going to be the big issue,” said Edward Casey, a Los Angeles-based partner at Alston & Bird’s Environmental, Land Use & Natural Resources Practice Group, who said the bill probably won’t be a “game-changer” since the zoning standards are the biggest hinderance to approvals in the first place.

The city is working to update its community plans – which dictate what type of development is allowed in certain areas – and Los Angeles is currently modernizing its zoning code with its re:code L.A. program. But that process is years from completion and many of the city’s community plans have not been updated in decades and still focus on suburban development.

Waite said L.A. needs to focus on removing barriers for market-rate housing as well.

“We need to limit regulatory obstacles to develop both types of housing to really tackle the housing crisis,” he said. “All boats rise with a rising tide.”

Developers, meanwhile, say they are discouraged by SB-35’s requirement that at least 10 percent of units are affordable and that construction workers be paid union wages. These restrictions increase the cost of development — and could push owners to raise prices on market-rate units to compensate, said Nick Buchanan, president of Cape Point Development.

Casey also pointed to the “objective planning standards” included in SB-35, which are defined as local housing overlay zones, specifics plans, inclusionary zoning ordinances and other local ordinances. Under the bill, projects that conflict with these plans can be delayed by local officials.

“That may be an area we could be hung up on,” Casey said. If the approvals process is not expedited for all housing projects, “it’s just wasting time, and time is money,” he said.

Renderings (Gensler)

Forest City and QIC are trimming their expansion plan for the struggling 30-acre South Bay Galleria shopping mall in Redondo Beach, Urbanize reported.

An earlier version of the mixed-use development plan called for a maximum of 434 apartments set on an eight-story structure on Kingsdale Avenue. A seven-story structure on Hawthorne Boulevard would have provided 216 of the units.

But now, the owners are proposing “Alternative 4-1” as a result of community backlash.

The updated version will have reduced building heights, no residential units on Kingsdale Avenue, a neighborhood park and office space. A maximum of 300 residential units would be located along Hawthorne Boulevard.

Initial plans for a 150-key hotel and increased parking remained unchanged. The existing mall will also remain intact.

Gensler, AHBE, KGM, RSM Design, Tait and Togawa Smith Martin are designing the project. Construction is expected to break ground in 2020 and finish in 2023.

The project revision comes amid a push from the local government in Redondo Beach to halt mixed-use development, as well as a recent retail redevelopment boom. The once-temporary development moratorium put in place by City Council was extended to 10 months on Sept. 20. Previously approved projects like the South Bay Galleria were not affected.

Cleveland-based Forest City developed Chinatown’s Blossom Plaza project. Australia-based investor QIC has an office in El Segundo. [Urbanize] – Natalie Hoberman

Property on Broad Beach, with Mark Attanasio (Google Maps/Getty Images)

Mark Attanasio just hit a home run.

The businessman and Milwaukee Brewers owner paid $6.6 million for an oceanfront site on Broad Beach in Malibu, the Los Angeles Times reported.

Listing details say the parcel is “one of the last remaining vacant lots on Broad Beach.” The land spans 0.27-acres and has 50 feet of private beach.

The property last traded hands for $5.6 million in 2013, property records show.

Attanasio is the co-founder and managing partner of investment firm Crescent Capital Group. He’s also the principal owner of the Milwaukee Brewers – a title he attained when one of his investment groups bought the baseball team for $223 million in 2004. [LAT] – Natalie Hoberman

2014 rendering of the mixed-use project (Gensler + Patterns)

Let the bidding war begin.

PHR LA Mart, the owner of a two-block stretch in the South Central neighborhood near Downtown, will now accept bids for the long-awaited $1.2 billion SoLA Village mixed-use project, the Los Angeles Times reported. The news of the listing comes shortly after the owner reached a deal with affordable housing advocates.

The 1.66 million-square-foot project, now dubbed “Broadway Square Los Angeles,” was initially proposed by the owner, an entity tied to Dr. Ara Tavitan, in 2014. Tavitan has already obtained approvals for a 208-room hotel; 1,444 residential units comprised of condominiums and apartments; 152,000 square feet of retail space, and 72,000 square feet of signage.

Activists had pushed for more affordable housing in a project that roused concerns within the neighborhood about gentrification and displacement, and they ultimately cut a deal with Tavitan. The project now includes 70 units dedicated to low-income residents, advocacy groups Strategic Actions for a Just Economy and PolicyLink announced Tuesday.

Since it was first proposed three years ago, the project has faced an identity crisis — bearing names like SoLA Village and often dubbed ‘Reef project’ before being rebranded as “Broadway Square” in its new listing.

The 9.7-acre site is currently occupied by one main building: a 12-story LA Mart hosting furniture showrooms and event space. Parking takes up much of the remaining land.

PHR purchased the 784,000-square-foot property at 1933 S. Broadway for roughly $55 million in 2012, records show.

The family business, led by managing partner Tavitan, will consider offers to jointly develop the property, or sell the entitled site altogether. Bids are due by Dec. 1.

Laurie Lustig-Bower of CBRE has the listing.

Despite neighborhood pushback, developers are increasingly interested in building in Historic South Central. Earlier this summer the owner of Orbit Electric filed plans for an adaptive reuse complex at 2100 S. Figueroa Street. Developer Daryoush Dayan wants to build two residential towers next door at 2222 S. Figueroa Street. [LAT] – Natalie Hoberman

The Eugene at 435 West 31st Street

From TRD New York: The rise of rental housing has been one of the biggest trends in the post-2008 U.S. real estate market. But it isn’t all about falling incomes and unattainable mortgages.

Wealthy and well-educated Americans in large metropolitan areas are increasingly keen to rent, according to a new report by NYU’s Furman Center. Among households with more than 120 percent of area median income, the share of renters grew by 1.2 percentage points between 2012 and 2015, while it fell by 0.2 points among households making less than 50 percent.

The share of renters among well-educated households also grew more quickly than among their less educated peers, the report noted.

Renting households are still far more likely to be poor than homeowners: 41.6 percent of renters earned less than 50 percent of AMI in 2015, compared to 15.7 of home-owning households, the report found. A mere 21.4 percent of renters earned more than 120 percent of AMI, compared to 53 percent of home-owning households.

The report is based on data from the American Communities Survey and covers 53 metropolitan areas with 1 million inhabitants or more.

Large institutions like the Blackstone Group increased their multifamily investments since the financial crisis, pointing to growing demand from young Americans.

Photo Illustration (Credit: Redfin, pixabay)

SBK Holdings USA is based in Beverly Hills, but turmoil at the company has all the makings of a Hollywood drama — from allegations of money laundering to fraud to ties to organized crime lords.

The commercial and residential real estate investment firm is suing its former president and legal counsel, Edgar Sargsyan. The lawsuit, filed in Los Angeles Superior Court’s Central District on Sept. 26, alleges Sargsyan misused company funds to acquire a more than $22 million real estate portfolio, The Real Deal has learned. It also claims he used those properties to launch his own firm, Regdalin Properties, in 2015.

SBK Holdings USA alleges it was under the impression Sargsyan wanted the properties to help build his credit and would return them upon request, or if he ever stopped working for SBK. When Sargsyan did leave — in June 2016 — he refused to return or pay for two properties the company lent him, SBK claims. The firm alleges that while it was investigating the matter, it found that the two properties were among 17 parcels Sargsyan allegedly “concocted a scheme” to acquire for his own benefit.

SBK Holdings USA did not respond to requests for comment. Sargsyan said the accusations are groundless.

In a declaration, Sargsyan initially claimed the two properties were given to him without any condition bearing their return, and that the more than $22 million portfolio the company is claiming was either “provided as compensation” or “as a loan for investment purposes.”

The two properties in question are 14027 Margate Street in Sherman Oaks and 6507 Teesdale Avenue in North Hollywood. The others are scattered around Los Angeles.

The plot thickens
In Sargsyan’s declaration, he mentions that his former boss, SBK’s CFO and owner Levon Termendzhyan, is under investigation by the Department of Homeland Security for money laundering, tax evasion and stolen petroleum. Two other employees at the firm — Termendzhyan’s secretary and pilot — were interviewed by federal agents about these charges, he claims.

Sargsyan says it was Termendzhyan’s “questionable and secretive” business practices that ultimately caused his self-willed departure.

Termendzhyan, a Russian businessman, was convicted of battery in 2013, according to court records. He’s also been charged with tax fraud and armed assault.

Questionable ties
According to a report by Propublica, SBK Holdings USA is the American sister of SBK Holdings, the investment arm of the international firm affiliated with the President of the United Arab Emirates, Sheikh Khalifa bin Zayed al Nahyan.

The company, owned by Sezgin Baran Korkmaz, has known business interests in Turkey and Russia, and once pledged $850 million in financing to carry out a major project for President Vladmir Putin, ProPublica reported. Since 2013, Korkmaz’s SBK has managed $500 million of investments in Turkey from another one of Termendzhyan’s companies and from a third American company called Washakie Renewable Energy. Washakie is reportedly controlled by polygamous Mormon clan called Kingston Group, which has been dubbed a “hate group” by Southern Poverty Law Center.

SBK Holdings is also member of the Turkey U.S. Business Council, chaired by Ekim Alptekin. Alptekin has come under fire in recent months for his relationship with retired United States Army Lieutenant General Michael Flynn, who served for a singular month as President Donald Trump’s National Security Advisor.

According to ProPublica, Korkmaz’s association with Alptekin led to a recent subpoena from Special Counsel Robert Mueller, who’s leading the investigation alongside Zainab Ahmad against Flynn.

Property on Mandeville Canyon Road, with Beck (MLS/Getty)

Soy Ganador — Beck is hoping there’s no “Loser” here.

The Grammy-award winning musician is seeking a buyer for his recent home flip — a Tudor-style estate in Mandeville Canyon in Brentwood, Curbed reported. The 2,620-square-foot home is listed at $3.75 million.

The Gerard R. Colcord-designed home has three bedrooms and three bathrooms. Beck, with help from Pam Shamshiri of Commune Design, restored and remodeled the interior, adding lush landscaping equipped with a private trail on the home’s exterior.

The singer purchased the 1964-built home in 2016 for $3.15 million, property records show. It previously belonged to screenwriter James Mangold and producer Cathy Konrad.

Richard Stearns and Carrie Berkman Lewis of Partners Trust have the listing.

Beck’s 13th studio album, “Colors,” is set to be released this fall. The artist has five Grammy awards and 16 nominations. His home flipping dates back to 2008, when he listed a Hancock Park home at $9 million. [Curbed] – Natalie Hoberman

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Photo Illustration (MLS/Getty)

Temperatures may be dropping in Los Angeles, but home prices (and drama) in the residential world of real estate have yet to cool off.

Topping the charts this week was a Malibu estate — formerly owned by “Tonight Show” host Johnny Carson — which listed for $81.5 million. Film producer Sidney Kimmel and his wife, Caroline, listed the 7,000-square-foot pad on Wildlife Road in Malibu. The Ed Niles-designed home has two bedrooms, a gym, koi pond and tennis court featuring a bench from celeb-loved Wimbledon. Comedy legend Carson lived in the oceanfront estate for over two decades. Chris Cortazzo of Coldwell Banker and Linda May of Hilton & Hyland have the listing.

Meanwhile, Beverly Hills residents are heated at the mere thought that mansion-trasher Justin Bieber could rent in their gilded city. Homeowners in the 90210 ZIP code collectively agreed to close their doors to the “Sorry” singer (apparently questioning how sorry he really is), despite the fact that he is reportedly offering rates as high as $100,000 a month. Fans should flock to Beverly Hills hotels, where he’s said to have established a “semi-permanent” residence.

In the Hollywood Hills West, Katy Perry is giving home selling another shot. The “California Gurl” listed the larger of her two adjacent homes Mulholland Drive atop Runyon Canyon for $9.45 million. She unsuccessfully tried selling both of the homes for $15 million this summer. Regardless, the for-sale 2.33-acre estate is made up of four structures, including a two-story guest house and security guard post. Ernie Carswell of Teles Properties (the brokerage which was snatched up by Douglas Elliman) has the listing.

“Bridget Jones” mastermind Helen Fielding listed her home on Rising Glen Road above the Sunset Strip for $3.5 million. The 2,655-square-foot property has three bedrooms, two-and-a-half bathrooms, a private office, two-car garage and swimming pool. The novelist-turned-screenwriter purchased the home for $1.4 million in 2000, records show. Jonah Wilson of Hilton & Hyland has the listing.

Following a break-up from her baby daddy and longtime boyfriend, actress Rachel Bilson snagged a contemporary home on Linda Ridge Road above the Rose Bowl in Pasadena for $3.25 million. The 3,700-square-foot retro pad has six bedrooms, four bathrooms, a built-in stereo system and geometrically-obscure swimming pool. Dubbed “Ralphs House,” the home was actually built for Walter W. Ralphs Jr., heir of the Ralphs grocery store chain, in 1950. Michael Bell of Sotheby’s International Realty had the listing.

Clockwise from left: Douglas Elliman expands to Boston, a residential project in Boca Raton that could fetch over $125 million, and President Trump and his children Donald Trump Jr. and Ivanka Trump.

The criminal investigation into Ivanka and Donald Jr. that was dropped

A new investigation published this week by by ProPublica, the New Yorker and WNYC brings to light how a criminal investigation into Donald Trump’s children was squashed in 2012. It involves buyers at the Trump Soho condo-hotel project, which was under construction at the time. They alleged they had been lied to about sales figures to entice them into buying and subsequently filed suit against the developers, which included Donald Trump, Donald Trump Jr., Ivanka Trump, the Sapir Organization, Bayrock Group and others. The new report reveals that Trump attorney Marc Kasowitz made a campaign contribution to Manhattan District Attorney Cyrus Vance, Jr. before attempting to persuade him to drop the investigation (Vance reimbursed the funds). [TRD]

US retail real estate vacancy rate holds steady in Q3

There’s finally a bit of good news on the retail front: a new report from real estate research firm Reis revealed that the overall retail vacancy rate for the third quarter remained flat at 10 percent, compared to the second quarter, while asking rents went up by 0.4 percent, according to the Wall Street Journal. And while shopping center vacancy rates went up in 34 of 77 metro areas during the third quarter, this was a better showing than the second quarter, when vacancy rates went up in 39 areas. Vacancies did rise slightly in regional malls, going up from 8.1 percent in the second quarter to 8.3 percent in the third quarter, but stayed lower than 2011’s record vacancy rate of 9.4 percent. [WSJ]

CompStak to offer crowdsourced intel on investment sales

The real estate information firm CompStak, which disrupted the office leasing industry with its crowd-sourced comps, is now taking aim at the investment-sales space. CompStak is going to crowd source key metrics such as net operating income (NOI) and cap rates from brokers, as well as aggregating and analyzing information from public records, Michael Mandel, CEO, told The Real Deal. As a result, the firm will compete with Real Capital Analytics, CoStar and Reis. [TRD]

MAJOR MARKET HIGHLIGHTS

Los Angeles rents halted their seven-month climb in September

Los Angeles rents, after climbing for seven months, leveled off in September. Median rent was $1,350 for a one-bedroom apartment and $1,740 for a two-bedroom, according to a Curbed, which cited a report from Apartment List. Rent rose 4.5 percent year-over-year, exceeding the statewide increase of 4.3 percent and the national average of 2.8 percent. [TRD]

Elliman zeroes in on Boston’s new development condo market with new acquisition

Manhattan’s Douglas Elliman continues to branch out. Just after scooping up Teles Properties in California, the firm acquired independent Boston brokerage Otis & Ahearn, the Boston Globe reported. Financial terms were not revealed. Otis & Ahearn will continue to operate its three offices in the city and a fourth office in Charlestown, according to the report. Elliman chairman Howard Lorber said the acquisition helps Elliman get into Boston’s new development condominium market given that the 39-year-old firm has marketed at least 25 new development condo projects in the city. According to an Elliman spokesman, 30 agents will come aboard and Kevin Ahearn, the firm’s co-founder, will stay on as the chief executive of the Boston-area offices. [TRD]

Steve Croman, landlord of more than 140 NYC buildings, to serve one year in jail

New York City landlord Steve Croman was sentenced to one year in jail this week on criminal mortgage and tax fraud charges. Croman pleaded guilty in June. The plea agreement includes a $5 million tax settlement, of which Croman has already paid $3 million. Attorney General Eric Schneiderman charged Croman with lying about the rental income of rent-stabilized apartments to obtain $45 million in financing, among other misdeeds. Croman, who had been accused by tenants of harassment at his lower Manhattan buildings, owns more than 140 buildings in New York City. [TRD]

Miami Worldcenter lands $33 million in financing from Bank of the Ozarks

Developers Nitin Motwani and Art Falcone closed on nearly $33 million in financing for the Miami Worldcenter development site, a 27-acre mixed-use project. Construction is underway on the $1.2 billion project, including the Paramount Miami Worldcenter, a 360,000-square-foot retail component and the Seventh Street Apartments. Property records show Bank of the Ozarks provided a $9.42 million loan for the southeast block of Northeast First Avenue and Northeast 11th Street; a $7.5 million loan for 80 Northeast 10th Street; and a $15.71 million loan for 725 Northeast Miami Avenue. [TRD]

New multifamily residential project in Boca Raton could nab over $125M

A 370-unit apartment complex in Boca Raton called 850 Boca has hit the market unpriced, and industry sources said it could go for more than $125 million. This is one of the first residential projects to be developed at The Park at Broken Sound, a 700-acre planned mixed-use community at 5100 Broken Sound Boulevard Northwest. CC Residential developed the complex and Robert Given, Zachary Sackley, Troy Ballard and Neal Victor of Cushman & Wakefield are marketing the project. [TRD]

Mayor of San Francisco pushes agencies to meet goal of 5,000 new homes

San Francisco Mayor Ed Lee is taking aim at the delays that hinder housing development in that city. Last week he ordered city agencies to reduce permit processing times by half, in an effort to meet a goal of creating 5,000 new housing units per year, according to Curbed. U.S. Census data shows 2,600 units were added from 2015 to 2016, and 3,500 units were added the year before. Under his new executive directive, housing approvals in San Francisco would take no more than 22 months going forward. [Curbed]

Property at 1017 N. Croft Avenue (Google Maps)

Real estate developer Madison Group filed plans to build a 16-unit condominium structure at 1017 N. Croft Avenue, situated on the cusp of West Hollywood and Beverly Grove, The Real Deal has learned.

The four-story project calls for the demolition of a five-unit apartment building and a detached garage, according to the Wednesday filing.

London Capital Group is listed as the applicant on the filing. It has ties to real estate investment firm Madison Group, led by Robert Neman and Farhad Farahmand, which owns other condominium projects in the Los Angeles region, including a 16-unit property at 11715 Chenault Street. Madison also owns several multi-family properties in Koreatown. It is also building a similar, four-story, 15-unit condo complex on 829-831 N. Croft Avenue, according to its website.

Property on Pacific Coast Highway, with Rande Gerber and Cindy Crawford (MLS/Getty)

Not even power-couple Cindy Crawford and Rande Gerber could find buyer for their oceanfront digs when the pricetag was $60 million.

The duo cut $10 million from the original ask on their renovated estate in Malibu’s Encinal Bluffs neighborhood after nearly a year on the market, the Los Angeles Times reported. It is now listed at $50 million.

Built in 1944, the 5,300-square-foot home has four bedrooms, five-and-a-half bathrooms and a media room. A tennis court, fire pit, open-air pavilion and swimming pool can be found outside on the property’s 3.2 acres.

Property on Pacific Coast Highway (MLS)

The couple paid $50.5 million for the home and the parcel next door in February 2015, property records show. Together, the two make up 5.9 acres.

Christopher Cortazzo of Coldwell Banker and Kurt Rappaport of Westside Estate Agency hold the listing.

Crawford and Gerber recently purchased OneRepublic frontman Ryan Tedder’s home flip in Beverly Hills for $7.5 million. The two teamed up with George Clooney and Mike Meldman to create Casamigos tequila, which recently sold in a deal reportedly worth $1 billion. [LAT] – Natalie Hoberman

From left: Robert Hooks and Donovan Healey

Global real estate firm Cushman & Wakefield hired leasing broker Robert Hooks for an executive director position at the firm’s Downtown Los Angeles office. He most recently served as a vice president at Lincoln Property Company. At Cushman, Hooks will focus on tenant representation, agency leasing and investment sales. His work will primarily focus on the Downtown and West L.A. submarkets.

Luxe brokerage firm Hilton & Hyland, based in Beverly Hills, poached Donovan Healey for an associates position from John Aaroe Group, which is now rebranding as Pacific Union. The new recruit previously served as director of Aaroe Estates, where he catered to celebrities, producers and business managers among others, often in the Malibu market. His career highlights include selling a $30 million property within a 30-day period and an $18 million home sale on the Pacific Coast Highway.

The Pointe (Worthe)

KCETLink Media Group is subleasing 24,700 square feet of its space at the Pointe in Burbank to the Switch, the company announced Thursday.

Carl Muhlstein and Nicole Mihalka of JLL represented KCETLink in the sublease.

KCET, a nonprofit broadcast network, signed a lease for a total of 55,000 square feet at the building at 2900 W. Alameda Avenue in 2012.

Its sublease to the Switch is part of a larger deal between the two media outfits. KCET is outsourcing its broadcast origination, master control and technical services to the Switch, which provides customer-controlled video switching services.

Gordon Bell, who was a senior vice president of engineering at KCET, has joined the Switch to manage its operations at the Pointe.

Worthe Real Estate Group finished developing the roughly 480,000-square-foot building in 2009. Earlier this year, Blackstone Group reached an agreement to buy stakes in five or six office properties in Burbank, including the Pointe, as part of a recap deal that is estimated to be worth $1.5 billion, according to REAlert.

The sellers were the various partners of investor Jeffrey Worthe, who retains a small interest and continues to manage them. Eastdil Secured arranged the recapitalization.

Renderings of Convene’s spaces at 777 South Figueroa (Convene)

Brookfield Partners Properties is welcoming a new tenant.

The landlord is partnering with meeting-space provider Convene on several of its Downtown Los Angeles office properties, the Commercial Observer reported.

Convene will launch in Brookfield’s Wells Fargo Center at 333 South Grand Avenue and its 777 Tower at 777 South Figueroa Street in early 2018, according to Convene’s website. Other locations have not yet been disclosed.

Convene designs and manage workspaces, on-demand meetings and events. The company also provides food and beverage services, planning and production support and a mobile app for tenants.

The Brookfield partnership will mark Convene’s first entrance into the West Coast market, expanding its portfolio of locations that include New York City, Boston and Philadelphia.

Brookfield, which owns $65 billion in total assets, was an early investor in the office provider. The company anchored Convene’s $20 million Series B and $68 million Series C fundraising in 2016 and 2017, respectively.

The partnership comes on the heels of WeWork’s recent decision to partner with hospitality leader Airbnb, reflecting a larger push towards hospitality-centric offices. [CO] – Natalie Hoberman

Four contiguous parcels including 9060 St. Ives Drive, Harvey Levin, Scooter Braun, Peter Nydrlye (Google, Getty Image, Pravo)

That noise you hear? It’s the sound of spec developers licking their lips.

Three contiguous properties in the Sunset Strip area hit the market Monday with a joint listing price of $30 million, The Real Deal has learned.

The parcels, which total nearly 1.5 acres, are also listed separately in the MLS. They are all owned by an unidentifiable entity that sources said is connected to a local businessman. The owner slowly acquired the assemblage over the course of three years, property records show.

Michael Nourmand, president of Nourmand & Associates, and Adam Sires, of the same brokerage, have the listings.

One of the properties, at 9050 St. Ives Drive, hit the market Monday for $16.5 million. The three-bedroom, 3,381-square-foot estate sits on a 44,905-square-foot lot. The late Peter Nydrle, an award-winning commercial and music video director, owned the property. After his death in 2014, a trust sold it to the current owner for $12.55 million, property records show. It was his first acquisition in what would become the assemblage.

His next purchase was a four-bedroom home at 9060 St. Ives, which listed Monday for $6.25 million. The estate was also once owned by Nydrle, who sold it to none other than Scooter Braun. The talent manager then sold it to its current owner for just shy of $4 million in January 2015, property records show. The estate sits on a 9,151-square-foot lot.

The third home, at 9056 St. Ives, hit the market Monday for $7.25 million. The seller acquired it in May 2017 for $7 million, according to property records. The house sits on a 10,865-square-foot lot.

The seller also owns a fourth contiguous parcel that is not part of the $30 million package, and is being quietly shopped off market for just shy of $5 million, sources said. The lot, at 1136 Doheny Boulevard, was formerly owned by Harvey Levin, the founder of TMZ, who sold it to its current owner for $3.6 million in the summer of 2015, records show. If a buyer were to purchase the 13,615-square-foot property, in addition to the $30 million parcels, the joint property would total 1.8 acres. This parcel was acquired mainly for the option to build a driveway that could connect a larger estate built across the other three lots to Doheny Drive, the sources said.

In slowly acquiring the assemblage, the seller must have known the area to be hotbed for spec development. Braun, at one point, also owned a neighboring house at 9066 St. Ives, which he sold to spec developer Nile Niami (of $500 million spec manse fame). Niami redid the St. Ives home and recently listed it for just shy of $18 million.

Property in Beverly Hills, with Gary Friedman (MLS/Getty)

The home furnishing executive has taken a cue from his own playbook.

Gary Friedman, the chairman and co-CEO of Restoration Hardware, sold his well-decorated Trousdale Estates home in Beverly Hills for $11.33 million last month, Variety reported. He also sold his St. Helena home up the coast for $7.55 million.

The home on N. Hillcrest Road in Beverly Hills has four bedrooms, four full bathrooms, a gourmet kitchen and a home connectivity system within 4,300 square feet of living space. A gated motor court and swimming pool lay outside. The estate first came on the market at nearly $12 million on June 21.

Up north, Friedman sold his one-acre wine country estate in Napa Valley’s St. Helena for $7.55 million. His initial ask was $10.5 million in the summer of 2016. A 5,400-square-foot main house, vineyards and guesthouse were included in the sale.

Property in St. Helena (MLS)

The executive paid $9.9 million for the Beverly Hill’s home in 2014, just a year after dropping $5.9 million for the Napa home, property records show.

Kurt Rappaport of Westside Estate Agency had the Beverly Hills listing.

Friedman owns a property in Marin County and another 4.58-acre home in Yountville. [Variety] – Natalie Hoberman

Madison Hotel at 423 E 7th Street, with Michael Weinstein (Loopnet/Getty)

The AIDS Healthcare Foundation, which poured money into the failed development-curbing Measure S, is creating a new division, labeled Healthy Housing Foundation.

Its first project will take shape at Skid Row’s Madison Hotel on Seventh Street, which it purchased for $8 million, the Los Angeles Times reported. The foundation, led by polarizing figure Michael Weinstein, plans to renovate the single-room-occupancy building and rent out rooms at monthly asks under $400. AHF will prioritize potential residents who have HIV and other chronic illnesses. It also plans on buying a Hollywood motel, as well as a property in Florida.

The nonprofit’s recent push into affordable housing follows its defeat of the highly controversial Measure S, which would have stopped most development projects in Los Angeles for two years. The well-funded campaign drew the ire of both developers and affordable housing advocates, who said it would limit supply during a housing crises, driving rents skyward at record speed.

The group most recently opposed SB-35, which will require cities and counties to limit environmental, planning and other reviews for certain developments. Much to the AHF’s chagrin, Gov. Jerry Brown recently signed SB-35 into law as part of a larger housing package. [LAT] – Natalie Hoberman

Property in Willowbrook (Google Maps)

The Olson Company is planning to build 30 affordable homes and 64 market-rate homes in a new complex dubbed “Magnolia Walk” in South Los Angeles, Curbed reported.

Homes will range in size from 1,400 square feet to just over 2,000 square feet. Prices will start at $80,000 for low-income residents, and range upwards of $400,000 for the market rate homes.

Low-income residents will also receive down-payment aid from the county.

Magnolia Walk will take shape a few blocks south of the 104-acre recreational Earvin “Magic” Johnson Recreational Area.

The Olson Company provides transit-oriented housing, mixed-use complexes, artist lofts and neighborhood developments, with an emphasis on affordability. Other communities include Monarch Walk in Orange County, Tapestry Walk in Anaheim and Fig & Fifty Walk in Highland Park. [Curbed] – Natalie Hoberman