Marc Brutten, founder of Westcore and the redevelopment site (Credit: Google Maps)

Investment firm Westcore Properties has landed a $100-million loan to build a massive car dealership and rental facility at a large industrial property it purchased in Azusa in February.

Bank of America provided the financing.

Westcore wants to build the dealership and rental facility with 188,950 square feet. The site at 555 Danlee Street now includes seven buildings, with 47,000 total square feet of space over 4.4 acres of land. The San Diego-based firm intends to keep the existing structures, though it also applied for a minor use permit.

The company paid $8.8 million for the property, records show. The seller was Heppner Hardwoods Inc., which had used the site for 35 years.

Westcore Properties did not return requests for additional details on the redevelopment plan. The firm was founded in 2000 by Marc Brutten, and now manages more than 20 million square feet of commercial real estate around the country, according to its website.

The overall industrial market in the San Gabriel Valley has been thriving. Earlier this year, Proficiency Capital sold the shovel-ready Canyon City Business Center development in Azusa for $47 million. The project calls for 462,500 total square feet.

Lagunitas Brewing Company is also building a 342,600 square-foot industrial site in Azusa, and last year Rexford purchased a 65,000-square-foot warehouse for $12 million about four miles south.

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

A multifamily developer based in Orange County is making a big bet on Glendale.

Raintree Partners has paid $79 million to acquire a seven-property multifamily portfolio in the region, according to a company announcement released Wednesday.

Property records reveal the seller of the portfolio was Myrna Frame, a Redondo Beach resident who sold the properties through various LLCs.

The portfolio includes 231 units, which will be rebranded as “The Indie Collection” once Raintree completes its improvements on the buildings. Plans call for upgrading the exteriors and amenity areas, as well as other maintenance, Raintree said in the statement.

The largest property in the portfolio is an 80-unit complex at 1435 Stanley Avenue, which records show traded for $50 million on May 13. Its second largest purchase is a 52-unit apartment building, dubbed Justin Oaks Apartments, at 1133 Justin Avenue.

Also included in the portfolio is an eight-unit building on North Everett Street, a 14-unit building on Wilson Avenue, a 33-unit property on Chestnut Street, a 22-unit building on North Columbus Avenue and a 20-unit structure at Burchett Street.

The Los Angeles Business Journal first reported Raintree’s purchase.

The Dana Point-based firm, led by CEO Jeffrey Allen, is also working on two ground-up multifamily developments in Long Beach. Just a few blocks from each other, the projects would include 407 apartments and 17,300 square feet of retail space total.

Clockwise from top left: Starwood Capital Group’s Akshay Goyal, BD Hotels’ Richard Born, HVS president and CEO Stephen Rushmore and Apollo’s Tracey Gamble and the Marriott Marquis

Hotel investors at NYU’s annual hospitality conference say they’re hungry for good deals despite a slowing economy, rising costs and uncertain politics.

Local hotelier Richard Born of BD Hotels tried to capitalize on NYU’s International Hospitality Industry Investment Conference early: After registration on Sunday, Born hosted an exclusive invite-only event at the rooftop bar in his nearby Pod Times Square Hotel, complete with tropical drinks, hula dancers and a live band. Guests included IHG’s Robert Chitty and Proskauer’s Jeffrey Horwitz.

Born’s new head of acquisitions and development, Rani Gharbie, took some of the partygoers on a tour to see the hotel’s micro rooms in a bid to drum up interest from investors as BD is seeking to grow its current portfolio of five Pod Hotels to 50 in the next decade.

HVS president and CEO Stephen Rushmore, Jr. gave attendees in search of their next deal a message of caution.

“Times have been good. If you’ve been in the game, you’ve been doing quite well and congratulations,” he said. “But at some point in time the cycle is going to end. Probably, it’s going to be less than a year at this point.”

Rushmore pressed on: “As you get later in the cycle, [investors] end up really sharpening their pencils to make deals work and when they do that, they sometimes end up cannibalizing themselves.”

He pointed to nightly resort fees, which typically increase the value of assets but are paid for by leisure traveler. The practice pits investors against consumers, he said.

In a later panel, executives from Starwood Capital Group, Blackstone, Apollo and KHP Capital Partners, painted a picture of hospitality under siege.

For Apollo’s Tracey Gamble, trade wars and immigration policy are “a big concern.”

Immigration reform would likely impact “our labor supply and the types of labor,” she explained. And Apollo does a lot of renovation projects, sourcing materials from China and Mexico, she added.

Joseph Long from KHP Capital Partners echoed the sentiment. In a current project, he said his team ordered all furniture from a manufacturer in Mexico instead of China to avoid the conflict.

“We wake up one day and all of a sudden there’s a tariff on Mexico. We’ve already placed these orders so what do you do?” he asked.

“There’s kind of a long list,” said Scott Trebilco, Blackstone managing director. He pointed to the growing presence and power of unions, a tight employment market more broadly and changes in real estate taxes.

Insurance for extreme weather is also becoming a “huge problem,” according to Starwood’s Akshay Goyal. When it comes to underwriting for natural disasters, he said “that’s something we’re way off on. The one benefit… has always been resort fees. Just keep [adding] more and more resort fees,” he said, chuckling with the rest of the panel.

But the laundry list of challenges doesn’t mean those investment firms are backing off; they’re ready to do riskier deals so long as it fits into their “narrowed” definition of a good bet, according to Trebilco.

Goyal agreed: “It’s just a matter of having enough opportunities to get lucky, because there will be more than enough situations where you’ll get hurt.”

During an afternoon finance panel with top hotel brokers, Lawrence Wolfe, co-head of lodging at Newmark Knight Frank, said “equity is fickle… you need an either great re-positioning story or a significant yield” to get a deal done.

He defined the latter as an asset with cap rates ranging from 5 percent to 9 percent, or a “reasonable” cost per room and a “compelling business plan.”

“I think there’s a lot of frustrated capital out there chasing that high value-add deal that’s hard to find,” said Peter Dannemiller of Hodges Ward Elliott who was also on the panel.

Value-add could range from a renovation to collapsing a ground lease, selling off an attached asset like a parking garage or even restructuring a franchise agreement, according to Apollo’s Gamble.

“More of the return has to get generated out of the value-add component,” said KHP’s Long. “Because so little of the return is going to come from market growth.”

Correction: A previous version of this article incorrectly spelled the name of Proskauer Rose attorney Jeffrey Horwitz.

Arnold Kopelson and the Beverly HIlls estate

A Beverly Hills home owned by late film producer Arnold Kopelson has sold for $9.7 million, following two price cuts, according to the Los Angeles Times.

First listed in November for $13.5 million, house hit the market just as sales at the top end were starting to slow. Around 31 percent fewer luxury homes sold in the first quarter of the year compared to the same period in 2018.

The Mediterranean-style villa, which dates from the 1930s, last had a list price of $10.9 million.

Spanning 10,500 square feet, Kopelson’s former abode has four bedrooms, seven bathrooms, and a library. A grand staircase leads up from the foyer to the second floor, where the master suite alone comes in at 2,500 square feet. It features two bathrooms, closets, and an office space.

The grounds include a front motor court and a landscaped backyard with a pool and spa. A guesthouse is located in the rear of the property.

Kopelson died last year at the age of 83. He’s best known as the producer on “Platoon,” which took home four Academy Awards at the 59th Academy Awards. He produced 29 films during his more than three decade-long career, including “The Fugitive,” “Se7en” and “U.S. Marshalls.” [LAT] —Dennis Lynch 

State Senator Scott Wiener and a Metro Red Line train (Credit: Wikipedia)

Last month, state lawmakers sidelined a bill that would have increased housing in urban and suburban areas, but a new poll shows that more Californians support the same kind of upzoning measures.

A survey by the Public Policy Institute of California found 62 percent of adult respondents support the state forcing local governments to allow multifamily development in single-family areas near transit and jobs, according to the Los Angeles Times.

That measure is the core of state Sen. Scott Wiener’s unrealized SB 50 bill. Last month, Wiener’s colleague representing the Tri-Cities area, Anthony Portantino, put any vote on the bill on hold for the rest of this year’s legislative session.

Wiener plans to pick up the bill again next year. It was designed to address the housing crisis through development and do so near transit to reduce Californians’ dependency on cars.

SB 50 would allow four- to five- story multifamily projects within walking distance of transit and allow up to fourplexes in many single-family neighborhoods. It would upzone around 40 percent of developable land in the city of L.A. and around 6 percent of single-family parcels.

At least 60 percent of respondents in every region of the state supported upzoning in single-family neighborhoods. Almost 75 percent of Democrats support such a measure, while only 36 percent of Republicans do.

Opponents say it would fuel real estate speculation and gentrify neighborhoods because it does not have enough protections for vulnerable, lower-income populations living in areas that would be upzoned communities. [LAT] — Dennis Lynch 

Mexico Beach, Florida, in the aftermath of Hurricane Michael in 2018 (Credit: Getty Images)

Fitch Ratings will include natural disaster risks into its ratings of residential mortgage-backed securities, a sign that the industry is beginning to acknowledge the financial risks of climate change.

Fitch is the first of the three major U.S. credit ratings agencies to consider environmental risk for RMBS, which are securities backed by the interest paid on residential mortgages. The change adds a new penalty to existing risk metrics that look at more conventional finance risks.

The inclusion of natural disasters is designed to make investors more aware that certain mortgage pools that could be exposed to natural disasters, according to Reuters. In particular, those pools with high concentrations of mortgages are in Florida and California.

The announcement comes after damages from natural disasters pile up. Over the past two years, Hurricanes Florence and Michael resulted in a combined $49 billion in damages, according to the National Oceanic and Atmospheric Administration, Reuters reported. In California, wildfires last year cost $24 billion, a record figure.

The new measure will apply to ratings that have already been issued. That means Fitch does not expect it to affect any of its ratings currently outstanding, according to Reuters.

The impacts of natural disasters and climate change are increasingly impacting the way real estate investors make decisions. In South Florida, many property insurers have left the market because of the risks of hurricanes.

[Reuters] — Keith Larsen

R3 Lofts

Amid the push for more housing in Los Angeles, one developer wants to add a few more units onto its existing apartment complex.

California Landmark Group opened its 68-unit R3 Lofts condominium project in Del Rey three years ago, which has since been converted to rentals.

Now, the Westside firm wants to add another nine units at the six-story building at 4091 Redwood Avenue, including three affordable units. CLG filed plans for the unusual move this week.

The developer needs approval for a density increase, increased height, and floor area to add the units, suggesting the additional units could get stacked on top of the existing building.

The complex includes creative office space on it lower levels, as well as a gym and a rooftop pool. It’s situated between Venice and Culver City, both core neighborhoods of Silicon Beach, where developers are racing to build housing and office space to meet demand from tech and media companies, and their employees.

Around the corner from R3 Lofts, Sares-Regis is nearing approval for a mixed-use, 658-unit project at the site of the Marina Marketplace shopping mall.

The neighboring Hotel MdR sold last year to London & Regional Properties for $127 million.

HCIDLA General Manager Rushmore Cervantes

Los Angeles’ ever-dwindling supply of rent-regulated buildings make it difficult for tenants to know whether their apartment qualifies for the protections. And following the defeat of Proposition 10 last November, there is still no statewide rent control law, though another affordability referendum may make its way to the statewide 2020 ballot.

In recent months, L.A. city and county officials and some surrounding municipalities have been trying in recent months to create initiatives to protect more tenants from rising rents.

Now, the L.A. Housing and Community Investment Department has unveiled a text messaging program that to help tenants determine whether they qualify under the Rent Stabilization Ordinance, according to MyNewsLA. Renters send their street address and ZIP code, and they will receive a reply.

According to the city ordinance, apartments can be subject to rent control protections if the property was built on or before October 1978. Other newer apartments built after July 2007 could be protected as well if they replaced rent-stabilized units.

The AIDS Healthcare Foundation, the same activist organization that backed Prop 10, is already campaigning for an initiative that would allow any residential property built after 2005 to qualify for rent control. [My News LA] — Natalie Hoberman

CEO Michael Barker and the property

Barker Pacific Group has acquired a three-property self-storage portfolio in Inland Empire, which remains the country’s most active industrial market.

The seller was Aim All Storage, whose properties totaled 334,966 square feet, according to CBRE. The complex includes 2,253 self-storage. The deal includes properties at 11215 Indiana Avenue in Riverside; 25093 Bay Avenue in Moreno Valley and 859 Desert Lawn Drive in Beaumont. CBRE’s Nick Walker and Trevor Roberts represented Aim All Storage.

Los Angeles-based Barker Pacific, an investment and development firm, focuses on self storage acquisition, development and management through its affiliate Storage Solutions. It also manages commercial and residential properties throughout the state, and in South Florida, Houston Phoenix.

There is a tight supply for self-storage in Southern California and demand for space has been on the rise, according to CBRE. In Downtown L.A., World Class Capital Group is building a 188,600-square-foot self-storage facility with 2,036 units.

The Inland Empire has also been the most active spot in the country for industrial real estate.

Jonathan Gray, Michael Dell and Boca Raton Resort (Credit: Booking)

Billionaire Michael Dell paid $461.6 million for the waterfront 1,047-room Boca Raton Resort & Club in one of the largest hotel sales in South Florida in recent years.

Property records reveal the Blackstone Group sold the 337-acre resort, at 501 East Camino Real, to Dell’s MSD Partners for nearly $441,000 per room. Goldman Sachs provided a $170 million deal to MSD Partners to finance the purchase.

The companies announced the property was under contract earlier this year, but declined to provide a purchase price at the time.

The resort, which was developed in 1926, includes two 18-hole golf courses, a 50,000-square-foot spa, seven swimming pools, 30 tennis courts, a full-service 32-slip marina, 13 restaurants and bars, and 200,000 square feet of meeting space. It’s managed by Hilton under the Waldorf Astoria Hotels & Resorts brand.

Jeffrey Davis and Gregory Rumpel of JLL represented Blackstone in the deal.

Blackstone invested more than $300 million into renovating the resort since it purchased it 15 years ago. It was designed by Addison Mizner.

Blackstone bought the Boca Raton property in 2004 in a $1.25 billion deal that also included Bahia Mar and Pier 66 in Lauderdale, as well as two resorts in Naples.

MSD Partners is an investment adviser that was formed in 2009 by the Dell Technologies founder, as well as principals of his private investment firm, MSD Capital.

Dell was also rumored to be the buyer of 1 Hotel South Beach, a deal that fell through. The Miami Beach hotel ultimately sold to Host Hotels for $610 million, or $1.42 million per room, in February.

Blackstone made headlines this week when it paid $18.7 billion for warehouse properties spanning 179 million square feet across the U.S. It was one of the largest industrial real estate deals in history.

Brokers Scott Tamkin, Melinda Tamkin, and a rendering of Senderos Canyon

As the luxury real estate community was whispering about the record-breaking ask on the Mountain of Beverly Hills, the seller of another swath of undeveloped land was gearing up to market his crown jewel atop Bel Air. But at a much more feasible price.

Senderos Canyon — which spans a whopping 258 acres — has been relisted for $75 million, down from its original $125 million ask in 2013, Bloomberg reported. That translates to about $291,000 per acre.

The property was taken off the market three years after first listing. Its brokers, Scott and Melinda Tamkin of Compass, told Bloomberg that there were no real offers at the time because the pricing was unrealistic.

Unlike some of the other land-only listings circling the market, Senderos Canyon comes with zero entitlements. It would take any buyer years to secure permits to build anything on the property, which encompasses three separate assessed parcels.

Building a large compound, or many McMansions, might also be more difficult now that Bel Air has passed laws cracking down on the sprawling properties. The wealthy city passed its own stricter version of the Baseline Mansionization Ordinance in 2017, limiting the amount of dirt that could be removed from a property to 6,000 cubic yards. For comparison, developer Nile Niami’s 100,000-square-foot home dubbed “The One” removed about 47,000 cubic yards from the hillside.

Nearby, the sellers of The Mountain have been struggling to sell its 157 acres of prime Beverly Hills dirt. After listing it at $1 billion, the owners chopped another $350 million six months later. They have since filed for bankruptcy protection, making any potential sale even more of a challenge. [Bloomberg] — Natalie Hoberman

Mortgage rates are still falling (Credit: iStock)

Mortgage rates fell for the sixth straight week, hitting their lowest point since September 2017.

The 30-year fixed-rate average slid to 3.82 percent and the 15-year rate hit 3.28 percent this week, according to new data from Freddie Mac reported in the Washington Post.

Rates have been on a steady decline since November, when they topped out near 5 percent and pushed mortgage applications to a four-year low.

But lower rates prompted a surge in mortgage applications this week, with a 1.5 percent increase in the market composite index over last week, according to the Mortgage Bankers Association. Real estate stocks and homebuilder activity also have rebounded in concert with the lower rates.

Mortgage rates are bound to the U.S. bond market, where investors steadily bid up the prices of Treasury notes this spring. President Donald Trump’s Friday announcement he would raise tariffs on Mexican goods gave buyers yet another reason to shift their money from stocks to bonds, one analyst said.

But observers said mortgage rates could rise again if Friday’s employment report kicks off a stock market rally. [Washington Post] — Alex Nitkin

Realtor.com Chief Economist Danielle Hale and San Francisco

Housing has become “more affordable” in some major metro areas across the country over the last year, including some unlikely places like the notoriously expensive San Francisco Bay Area.

But what does affordable mean?

In Silicon Valley and the Bay Area, it means that higher incomes among top earners have made purchasing a high-priced home more of a reality, according to Mansion Global, citing date from Realtor.com.

Activity in the housing market surged earlier this year as buyers looked to lock down a purchase before others flooded in.

The biggest rise in affordability was in San Jose-Sunnyvale, California, where the median asking price was $1.17 million. Next on the list was Des Moines, Iowa, which was substantially lower at $288,000. And third was the San Francisco Bay Area, whose median asking price was $954,000.

Dallas and Austin also saw rises in affordability despite rising prices. That was to lower mortgage rates, higher wages, and high inventory, according to Realtor.com Chief Economist Danielle Hale.

Meanwhile, home prices have stagnated and in some cases dropped over the last few months in the Los Angeles area. The median price in L.A. County dropped about 3 percent from February to March, to $525,520.

Housing remains unaffordable across most of the country. As of March, the average annual wage was not enough to afford a median-priced home in more than 70 percent of U.S. counties. [Mansion Global] — Dennis Lynch 

1500 Gilcrest Drive (Credit: Coldwell Banker)

A Beverly Hills mansion has listed for $46.8 million, adding to the substantial number of luxury properties in the $40 million to $50 million range that hit the market over the last year.

The newly-built home at 1500 Gilcrest Drive appears to be tied to executive Kent Kresa, former chairman of aerospace giant Northrop Grumman. Listing agent Jade Mills of Coldwell Banker Residential Brokerage did not respond to requests for comment.

The LLC tied to the buyer — 512 Perugia Way — paid $4.7 million to acquire the land in May 2010, property records show.

Designed by architect Tim Morrison, the 11,000-square-foot home includes five bedrooms and nine bathrooms. There’s also an infinity-edge swimming pool with spa, gym, gardens, four-car garage and walls made out of shell stone. The two-story home sits on a three quarters of an acre.

Kresa is chairman of MannKind Corp., a biopharmaceutical company based in Westlake Village. Before that, he served as CEO of both Northrop Grumman and General Motors. In 2013, he sold a 14,000-square-foot Spanish Revival home in Beverly Hills for $27.5 million.

The most recent listing on Gilcrest Drive adds to the growing list of luxury properties available for sale. Last week, Malibu Real Estate Investments put a $50 million spec home in Malibu on the market. The 13,000-square-foot home sits on 17 acres.

And last month, Ellen DeGeneres and wife, actress Portia de Rossi, were revealed as buyers of Adam Levine’s $45 million Beverly Hills mansion.

Paul Manafort and 29 Howard Street (Credit: Getty Images)

Federal authorities have put Paul Manafort’s Soho loft up for sale with an asking price of more than $3 million.

The fourth-floor loft at 29 Howard street is part of a $22 million real estate portfolio that the federal government seized as part of a deal that President Trump’s former campaign chairman cut when he pleaded guilty to a pair of conspiracy charges last year.

The U.S. Marshal service put the Soho condominium up for sale with an asking price of $3.66 million, the New York Post reported. According to testimony from Manafort’s federal trial, the campaign chief told his daughter and son in law to pretend they had been living in the condo, when in reality it was being rented out on Airbnb.

Halstead agent Ari Harkov told the Post that, based on photos from the condo’s listing, the $3.66 million price tag may be more than buyers are willing to pay.

He said the unit’s dropped ceilings and “suburban”-looking kitchen don’t fit the taste of Manhattan loft buyers.

“It’s fine, it’s livable, but it probably needs some work,” Harkov told the publication.

The Soho condo is part of a portfolio feds seized including a Carroll Gardens brownstone at 377 Union Street that could sell for $3.7 million, an apartment at Trump tower valued at an estimated $2.4 million and a loft near the border of Chinatown and Little Italy at 123 Baxter Street that could go for $3.8 million.

Halstead’s Harkov, who has sold units at the Baxter Street building, said that the Manafort name may turn buyers away. He pointed to shoppers who said they didn’t want to buy a Williamsburg property owned by Jared Kushner because they didn’t want to put money into his family’s pocket.

“I think there are buyers who wouldn’t buy it or would be less interested because of it,” he said.

Manafort was sentenced in March to 73 months in prison – a term he could serve out in federal prison in Pennsylvania or the jail complex on Rikers Island. [NYP] – Rich Bockmann

Elliott Management’s Paul Singer (Credit: Wikipedia and iStock)

Struggling bookseller Barnes & Noble has agreed to sell to hedge fund Elliott Management Corp. for $475 million in cash, following a Thursday auction for the company.

Paul Singer’s distressed debt hedge fund was the top bidder at the auction. The deal is valued at around $683 million, including the assumption of debt, according to the Wall Street Journal. The future of the bookseller’s 627 U.S. stores remains murky.

Elliott will pay $6.50 per share for all shares of the company. Barnes & Noble stock shot up 30 percent to $5.96 after the Journal reported a deal was imminent. The company’s stock hit a low of $4.32 yesterday afternoon before any reports of a deal surfaced.

Barnes & Noble has lost $1 billion in market value over the last five years, according to CNBC. As of last year, Amazon — which started as strictly an online bookseller — accounts for nearly half of all new book sales.

But Barnes & Noble’s struggles are part of a larger retail softening brought on by shifting consumer trends toward e-commerce. From January to April this year, U.S. retailers had already closed 6,000 stores nationwide, more than the total closures throughout 2018.

Some retailers have significantly shrunk footprints nationwide. Last month, clothing retailer Dressbarn closed all of its 650 stores around the country.

Sales, though, have breathed new life into some struggling retailers. Sears shuttered hundreds of stores over the last few years, but its February purchase saved over 400 Sears and Kmart locations, and now more are opening.

Like many other major retailers, Barnes & Noble has tried to reinvent itself to meet consumer demands. Last fall, the bookseller opened a concept store in Chicago that’s more a café and gathering space than a traditional bookstore. [WSJ] — Dennis Lynch 

Adam Neumann, Arash Gohari, and one of their new offices in Santa Monica

WeWork is expanding its “headquarters by WeWork” platform, signing lease deals for locations in Los Angeles, San Francisco, New York and Seattle. The three spaces in L.A. mark an entrance for its headquarters service, which caters to mid-size companies without WeWork branding, the company announced Friday.

The headquarters by WeWork spaces are typically smaller than traditional WeWork sites, aimed at companies with up to 250 employees. The leases bring the total square footage under WeWork’s headquarters brand to 1 million square feet. All of the new locations are expected to be open by this fall.

WeWork — a subsidiary of We Company — has been in rapid expansion mode in L.A., and now has 1.6 million square feet in the city.

At the L.A. sites, the co-working giant signed a deal with Venice Investments for 11,050 square feet at 8305 Sunset Boulevard on the Sunset Strip; and in Santa Monica, with Maxxam Enterprises for 14,430 square feet at 1453 3rd Street Promenade; and with Langdon Street Capital for 5,800 square feet at 1547 9th Street.

In New York, where it has multiple headquarters locations, WeWork secured a deal with JPMorgan for 38,000 square feet across six floors at 525 Broadway. In San Francisco, it snagged another 22,940 square feet at 28 2nd Street with Kensington Investment Group.

And in Seattle, it signed a lease with Hines for 14,500 square feet at 10885 Northeast 4th Street.

The expansion comes as We Company gears up for a highly anticipated initial public offering. Late last month, news circulated that the company was in discussion with banks to secure a $2.75 billion credit line.

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If an expected economic slowdown comes, the flexible-space industry will be well-poised to capitalize, top players in the space and brokerage executives said at The Real Deal’s 12th annual showcase.

Bruce Mosler, Chairman of Global Brokerage at Cushman & Wakefield, said that the demand for flexible space “is going to grow because it’s what corporates have wanted for a long time”. Brad Hargeaves, CEO of co-living firm Common, noted that his field may still be in its infancy.

“Some of the trends are similar to co-working,” he said, such as the sense of shared community it can provide.

Barry Gosin, CEO of Newmark Group, said too much dedicated co-working space in a single property isn’t ideal.

“I’m not a big fan of a co-working space taking more than 15-20 percent of a building, because I think then you diminish the credit quality of a building,” he said. Jamie Hodari, CEO of flex-office firm Industrious, agreed, saying the “holy grail” of co-working would involve a mix of long-term, middle-term and flexible leases within a single property.

Garry Marshall and 22440 Pacific Coast Highway (Credit: Getty Images and Zillow)

The children of the late filmmaker Garry Marshall, the man behind Hollywood hits like “Pretty Woman” and “The Princess Diaries,” sold their family’s Malibu home, The Real Deal has learned.

Kathleen, Lori and Scott Marshall unloaded the home in Malibu’s Carbon Beach for $14.2 million. The 3,190-square-foot house sold at a 20-percent discount from its original asking price of $18 million last June. The price was cut in October to $15.9 million.

The Marshalls sold the property through various trusts, listing broker Tony Mark of Compass confirmed. Mark shared the listing with Russell Grether, also at Compass. The buyer was not identified.

Located on the Pacific Coast Highway, the oceanfront estate has five bedrooms and four bathrooms, a swimming pool and 40 feet of beach frontage.

Records show the property has been in the Marshall family since at least 2003. All three of Gary Marshall’s children are in the entertainment industry.

Marshall, who died in 2016, was a producer and director, who was also known for creating the sitcom “Happy Days.” Other credits include “Runaway Bride,” “Raising Helen” and “New Year’s Eve.”

Amid a softening luxury market, sellers in Malibu have been struggling to unload their homes at original asking prices, prompting a wave of discounts. The owners of “Il Pelicano,” for example, recently chopped 40 percent off their cliffside estate, re-listing it for $35 million. It first hit the market less than a year ago for nearly $60 million.

Here are a couple of real estate events coming up next week.

On June 11, the Los Angeles County Bar Association is hosting an event on Retail Leasing Evolution at its headquarters, 1055 West 7th Street, from 12:30 p.m. to 1:30 p.m. Attend to hear a panel discussion examining the changing retail environment. Speakers include Mitchell Regenstreif of DLA Piper and Pam Westhoff of Sheppard Mullin.

On June 13, Opus Connect is holding its Los Angeles Cannabis Summit at Buchalter, 1000 Wilshire Boulevard from 1:30 p.m. to 7 p.m. This event will include discussion on the real estate investment opportunities that the cannabis industry has to offer. Richard Acosta of Inception REIT and Erik Murray of Oak Investment Funds will be among the speakers at the event.

To search for future industry events or browse past ones, click here. And to submit more industry events, please reach out to events@therealdeal.com.