From top: 3100 Benedict Canyon Dr, 748 Amalfi Drive, and 2244 Mandeville Canyon (Credit: Zillow)

Maybe it was the leadup to the Labor Day weekend, when home sales usually slow down, especially the luxury variety.

Whatever it was the five most-expensive residential listings amounted to $42.3 million. That’s less than half of the $100 million total that hit the market the week prior.

The priciest home that listed last week was a grandiose Italian Villa-style home on Benedict Canyon Drive in Beverly Hills, seeking $15 million. Despite the No.1 spot, the sellers of the pad were in fact vying for $19.5 million for the 12,500-square-foot mansion when they first listed it last summer.

The data and information was pulled from the Multiple Listings Service and Redfin during Aug. 26 – 31.

3100 Benedict Canyon | Beverly Hills | $15 million

The two-story estate at 3100 Benedict Canyon Drive in Beverly Hills re-listed for $15 million, down $1 million since its most recent price chop in March. There are six bedrooms and 11 bathrooms in the main house. Amenities at the property include a wine cellar, movie theater, infinity-edge swimming pool, outdoor deck and elevator. Records show the home last traded for $15.5 million in August 2017, and listed for sale a year later for nearly $20 million. Phil Seymour of Keller Williams has the listing.

748 Amalfi Drive | Pacific Palisades | $13.9 million

A modern, wood-clad residence in the Pacific Palisades listed for $13.9 million last week. That’s about 11 percent less than when it first hit the market last year for $15.7 million. Spanning 8,270 square feet, the home at 748 Amalfi Drive was built in 2016. It features six bedrooms, eight bathrooms, home theater, swimming pool and spa. Santiago Arana at the Agency has the listing.

634 Brooks Avenue | Venice | $5.7 million

In Venice, a two-story pad hit the market last week for $5.7 million, down from $6.5 million in March. The residence at 634 Brooks Avenue has five rooms in the main house, plus a two-bedroom guest house. There’s also a sprawling roof deck, lush landscaping throughout and parking for four cars. Jalda Hoff of The Bluewave Group has the listing.

2244 Mandeville Canyon Road | Brentwood | $5.6 million

The 6,500-square-foot modern home at 2244 Mandeville Canyon Road listed for $5.6 million last week. It first hit the market a year ago for nearly $7 million. The modern home has six bedrooms, six bathrooms, plus a stone-clad spa, office and a backyard with a swimming pool. Records show the home most recently listed for $5.9 million in April. Mary Beth Woods of Coldwell Banker has the listing.

255 Trino Way | Pacific Palisades | $5.5 million

An oceanfront home in the Pacific Palisades came on the market last week for the first time in two decades. The 3,000-square-foot home, which listed for $5.5 million, has four bedrooms and five bathrooms. In addition to sweeping views that reach Catalina Island, the modern home includes a movie theater, sauna and swimming pool. Marek Swiderski of Sotheby’s International Realty has the listing.

From left: Milos Raonic, Venus Williams, Serena Williams and Novak Djokovic (Credit: Getty Images)

Serena Williams notched her 100th career win at the U.S. Open in front of a jubilant crowd in Flushing Meadows on Tuesday night, but the 23-time Grand Slam champion has also served up some big real estate wins over the years.

The tennis superstar — who will play in the semifinals on Thursday — isn’t the only star player on tour who has lobbed some of her millions at the luxury residential market.

Serena and Venus Williams

In addition to their combined 30 Grand Slam titles and lasting power on the court, the Williams sisters have together and separately crafted some expert real estate plays on both coasts.

313 Grand Key Terrace (Credit: Realtor)

In March, the pair sold their South Florida mansion at 313 Grand Key Terrace, which they built in 2000, for $2.3 million. Four years ago, Serena and Venus — who lost her second round US Open match — also sold their Art Deco-style loft in Manhattan at 28 West 38th Street, for $2.1 million. That netted them $750,000. The pair reportedly never lived at the fashionable Garment District loft — or even furnish the one-bedroom unit — which boasted 11-foot ceilings, a chef’s kitchen and 10 over-size windows.

In April, Serena Williams sold her Bel Air mansion for $8.1 million. While it didn’t fetch the initial $12 million asking price, the sale was nearly $1.5 million more than her 2006 purchase price. The 6,100-square foot mansion sits on a leafy 3-acre estate, with a pool, private hiking trails and a full-service hair salon.

Last year, she also served up a 2.4-acre vacant lot in Jupiter, Florida, for $6 million. The buyer was Patron Spirits CEO Edward Brown and his wife, Ashley. Williams had purchased the land for $4.12 million.

Serena Williams’ Beverly Hills mansion (Credit: Redfin)

And in 2017, Serena purchased a three-story mansion in Beverly Hills for $6 million, in a gated community on a much smaller lot than her Bel Air pad. The Spanish-style mansion has sleek brushed-oak floors and curved doors that open from the kitchen to an expansive veranda, with a pool and a grassy lawn. Williams listed the Bel Air mansion soon after.

Milos Raonic

After bowing out of the 2017 U.S. Open because of a back injury, Raonic

London Terrace Towers at 470 West 24th Street (Credit: StreetEasy)

again withdrew from this year’s competition, citing a wrist ailment. Raonic, who lives in Canada, scooped up a Manhattan condo in April, at London Terrace Towers. He paid $7.55 million for the pre-war penthouse apartment condo at 470 West 24th Street. It comes with two separate stone terraces, a wood fireplace, a windowed walk-in pantry and even a separate wine room. The unit had been listed at various points since 2017; its most recent price was set at $8.4 million in September, according to StreetEasy. The sale was brokered by Elliman’s De Niro team.

Novak Djokovic

565 Broome Street (Credit: StreetEasy)

The top-ranked men’s player on the tour, Djokovic bowed out of his round of 16 match on Sunday, but has invested in some ritzy real estate. The Serbian star purchased two Manhattan condos in 2017 at the Renzo Piano-designed 30-story curved glass tower at 565 Broome Street. The units were purchased for an undisclosed price — but the condos in the tower start at $5.4 million for a two-bedroom unit. Penthouses in the luxe SoHo building have 16-foot ceilings, 36- degree views and bathrooms encased in marble. The same year, Djokovic bought a condo, also designed by Renzo Piano, at 8701 Collins Avenue in Miami Beach, for upwards of $8.9 million.

From top left, clockwise: 254 Bel Air Road, 24400 Little Valley Road, 15025 Altata Drive, and 636 Adelaide Drive (Credit: Zillow and Redfin)

The five priciest residential sales in Los Angeles County last week included homes in celebrity-friendly Hidden Hills, the Pacific Palisades and Santa Monica.

Among the group of buyers was actor Jonah Hill, who bought a $6.8 million Southern Colonial from singer-songwriter Jesse Jo Stark. The top five homes sold for a combined $62.3 million, and also featured an estate with elevator.

Price and property details were found through Redfin and public records on PropertyShark.

254 Bel Air Road | Bel Air | $18.1 million
Taking the top spot was this massive Mediterranean estate, situated in the so-called Platinum Triangle. The deal closed at a discount from its $22.5 million asking price in June. The deal for the 10,253-square-foot property pencils out to $1,765 per square feet. The eight-bedroom, 10-bathroom main house includes a dramatic winding staircase and an elevator that serves all three floors — the two main floors and an auto gallery. The estate includes maid’s quarters. The property, situated on over a third of an acre, includes a pool, and a two-story, 1,000-square-foot guest house. It was listed by Mauricio Umansky and Farrah Brittany of the Agency.

24400 Little Valley Road | Hidden Hills | $14.6 million
This new custom-built 13,061-square-foot mansion features Cathedral-Vaulted ceilings. The home has seven bedrooms, nine bathrooms. The sale penciled out to $1,118 per square foot. Situated on 1.7 acres in the gated community, the property includes a pool, spa, patio and guest house and garage able to accommodate eight vehicles. The listing was handled by Marc Shevin and Sara Shevin of Berkshire Hathaway HomeServices California Properties, and Jordan Cohen of RE/MAX One.

15025 Altata Drive | Pacific Palisades | $12.1 million
The six bedroom, six-and-a-half bath East Coast Traditional is on a 13,557-square-foot lot in the Palisades. The deal breaks down to $1,596 per square foot. Built in 2004, the home includes a theater, wine cellar and gym that opens to an outdoor Zen meditation area. There is a pool, spa, lounge area with a wood-burning fireplace and a barbecue. The listing was handled by Marco Rufo of Berkshire Hathaway HomeServices California Properties, and Shamon Shamonki of Sotheby’s International Realty.

241 North Rockingham Avenue | Brentwood | $10.7 million
The seven-bedroom, seven-and-a-half bath Neo Georgian home by Paul Williams came out to $1,092 per square foot. It has seven bedrooms and seven bathrooms across 9,775 square feet. The backyard features a private pool, pool house, bathroom, sauna and canyon views. The listing was handled by Matthew Schwartz and Bjorn Farrugia of Hilton & Hyland and F. Ron Smith of Compass.

636 Adelaide Drive | Santa Monica | $6.8 million
Actor Jonah Hill bought this Southern Colonial-style home and is now reportedly engaged to girlfriend Gianna Santos. The deal breaks down to a hefty $2,182 per square foot. The four-bedroom, 3,100-square-foot home includes 4.5 bathrooms. The property includes a pool and guest house, and faces Santa Monica Canyon. Kendra Wilson of The Agency handled the listing, and Justin Feil of Berkshire Hathaway HomeServices represented the buyer.

33256 Pacific Coast Highway (Credit: Ginger Glass)

Last week, NBC Universal’s Ron Meyer sold his sprawling Malibu estate for $100 million to Whatsapp co-founder Jan Koum. That deal, amid an otherwise lackluster Los Angeles luxury market, may have the motivation for a certain Malibu seller now listing the oceanfront estate he has owned for 25 years.

Michael Flannery, an individual who is connected to real estate and publishing companies, has listed his Guy Dreier-designed home in Malibu Beach for $65 million, The Real Deal has learned. Deed records reveal Flannery has owned the property since 1993.

Chris Cortazzo and Ginger Glass, two star brokers who recently jumped from Coldwell Banker for Compass, are co-listing the home.

It sits on two spacious lots spanning 2.3 acres, a rarity in Malibu. It features granite walls, French limestone floors and floor-to-ceiling windows throughout that give way to ocean views.

The two-story, nearly 5,000-square-foot home includes three bedrooms and four bathrooms. Amenities include a tennis court, aquarium, jacuzzi, pizza oven and 200 feet of beachfront access.

Despite Meyer’s mega-sale, unloading high-end homes in L.A. and Malibu in particular hasn’t been an easy task over the last several months as inventory continues to pile up and buyers become more cautious. Last month, a Ukrainian investor, Vadim Shulman, listed his oceanfront home for $44 million. And a few weeks before that, spec home developer Scott Gillen listed a collection of 13 properties for a combined $500 million.

Compass CEO Robert Reffkin and Realogy CEO Ryan Schneider

Compass created a “dummy job” for a longtime Realogy finance executive last year in order to circumvent his non-compete, a New Jersey judge ruled.

At a hearing last month, Judge Maritza Berdote-Byrne said Realogy had provided “convincing evidence” that the SoftBank-backed firm hired Urvin Pandya even though doing so violated a non-compete with Realogy, according to a transcript for the August 14 court appearance obtained by The Real Deal.

According to the transcript, the judge cited an email exchange between Compass recruiters, in which they described Pandya’s new job as a “dummy job created by Finance to hire Urvin.”

She also cited a high-level meeting with Realogy executives that Pandya attended before he quit. He was present at the meeting, she said, knowing full well he was about to resign and take a job at Compass. “I do find that that’s proprietary information,” she said.

“We welcome the best talent to Compass everyday, but we never want confidential information from a prior employers,” a spokesperson for Compass said in a statement. “In fact, all employees are specifically instructed not to bring a previous employer’s confidential information or intellectual property to Compass and sign agreements affirming their understanding of those requirements.”

Compass created “dummy job” to avoid Realogy finance exec’s non-compete: judge

The ruling stems from a lawsuit Realogy filed in May, alleging Pandya stole privileged information from Realogy and shared it with Compass. Realogy also claimed Pandya violated his non-compete, which prevented him from working for a rival within 50 miles of Realogy’s New Jersey offices for six months. Officially, Pandya worked in Philadelphia but he reported to Compass’ CFO in Manhattan.

At an initial hearing in June, a New Jersey judge sidelined Pandya from his new job. She upheld that ruling at the August 14 hearing.

During the August court appearance, an attorney for Pandya and Compass disputed they violated Pandya’s non-compete.

“It’s not as if Compass is a company that just thumbs its nose at the non-compete,” he said.

The judge interrupted his argument. “The email attached… admits to creating this dummy position,” she said. “It’s not a smoking gun, but it’s about as close as you get.”

In justifying her decision, she said Compass was “complicit” in accepting privileged information that Pandya shared with brokerage executives. The firm “was very interested in hiring Mr. Pandya, so much so that they were creative in creating a position for Mr. Pandya, a dummy position, and then consciously discussing how to circumvent the 50-mile geographical restriction of the RCA by putting him in Philadelphia.”

The suit is separate from the wide-ranging lawsuit Realogy filed in July, in which it accused Compass of “predatory” poaching and unfair business practices, including attempts at price-fixing. Pandya is one of the examples in that suit, which claims he had “virtually unfettered access to Realogy’s confidential business information.”

Richard Bloom and a rendering of Lowell Farms Cannabis Cafe (Credit: Lowell Farms, iStock)

In a few weeks, Lowell Cafe will open its doors in West Hollywood, claiming to be the nation’s first cannabis consumption lounge. Patrons will be able to eat cannabis-infused delicacies, as well as smoke and vape as they please.

Its menu could also eventually extend to non-cannabis food and alcohol, thanks to an amendment to a state bill under consideration in Sacramento. Those efforts to alter AB 1465 — the law that authorized cannabis lounges — to allow for non-cannabis food and beverages are being opposed by a power labor union, according to WeHoville.

The United Food and Commercial Workers Union claims cannabis lounges shouldn’t be allowed to serve non-cannabis food and beverages, and that Los Angeles won’t be able to agree on the matter “on the designated timeline.”

The amendment, authored by Assemblyman Richard Bloom of Santa Monica, is currently in committee. Lawmakers will have until Sept. 13 to vote on the issue.

Lowell Cafe, which is one of the few businesses that secured onsite consumption licenses in December, is opening an adjacent cafe that will serve non-cannabis sandwiches, coffee and other items.

As recreational cannabis use grows, cities, particularly L.A., are finding it more difficult to crack down on the increasing number of illegal pot shops. Earlier this summer, a cannabis industry group sent a letter to L.A. leaders, urging them to raid unlicensed shops. And earlier this year, the city’s top cannabis regulator said L.A. should should start enforcing the laws it has on the books.  [Wehoville] — Natalie Hoberman

Frances Frei (Credit: Twitter)

Not only is the We Company’s newest board member the person who helped Uber through its leadership crisis in 2017 — she’s also the company’s antidote to criticism over its all-male board.

The WeWork parent company announced Wednesday that it will add Frances Frei to its board of directors ahead of public offering. Backlash arose last month after the company revealed its board members in its S-1 filing, which touted a “culture of inclusivity.”

Frei is a professor of technology and operations management at Harvard Business School whose research focuses on how executives work to make their companies and employees succeed. She is currently working to help launch the Leadership Consortium, a program that aims to improve diversity at senior levels of some of the world’s top companies.

In 2017, Uber tapped Frei as senior vice president of leadership and strategy, where she was charged with helping the company work through a leadership crisis that ultimately saw co-founder and CEO Travis Kalanick step away from the firm.

In an interview with Vox when she left the ridesharing startup in 2018, Frei said, “[Uber] feels for me, given all the bad circumstances, as sanded, and that it is ready to have some education painted on it. My goal is to make this a world-class company that can be proud of itself in the end, rather than embarrassed.”

WeWork declined to comment on Frei joining the board, and Frei did not respond to a request for comment.

Prior to announcing Frei’s appointment, WeWork’s board consisted solely of chairman and co-founder Adam Neumann and six male members: Bruce Dunlevie, Ronald Fisher, Lewis Frankfort, Steven Langman, Mark Schwartz and John Zhao.

The company plans to add another director to its board within one year of its IPO with an eye on increasing its diversity, according to an amended A-1 filing.

But the all-male board was just one of the many controversies that has sprung up around WeWork as it prepares to file an IPO. Observers have also raised concerns about a mismatch between the firm’s cash flow and liabilities and massive loans it has given to Neumann and other executives.

Every day, The Real Deal rounds up Los Angeles’ biggest real estate news. We update this page in real time, starting at 9 a.m. PT. Please send any tips or deals to tips@therealdeal.com

This page was last updated at 3:15 p.m. PT

Another high-end home in Bel Air has hit the market. The $18.9 million listing belongs to producer James Robinson, behind hits like “Ace Ventura: Pet Detective.” The amount is nearly $5 million less than it first listed for two years ago. [LAT]

After backlash, WeWork added a woman to its board. The office-space provider’s parent company, the We Company, is adding Frances Frei to its board ahead of its public offering. Frei is a professor of technology and operations management at Harvard Business School, and has consulted the We Company since March of this year. The company faced public scrutiny for revealing an all-male board in its S-1 filing with the U.S. Securities and Exchange Commission. [Reuters]

Alicia Keys has a new home in La Jolla. The singer and her music producer husband, Swizz Beatz, paid $21 million for the iconic “Razor House.” Designed by William Cunningham, the home is said to be the inspiration for Tony Stark’s pad in “Iron Man.” [WSJ]

L.A.’s affordable housing incentives program is challenged. A group called Fix The City filed a lawsuit last week claiming the popular Transit-Oriented Communities program is illegally rezoning areas. It also contends the city hasn’t lived up to obligations to promote higher wages for construction workers as laid out in Measure JJJ. [LAT]

Phil Spector’s infamous Alhambra mansion gets a price cut. The home where the now-incarcerated record producer fatally shot actress Lana Clarkson in 2003 has relisted at just below $5 million. The 2.7-acre property went on the market earlier this year for $5.5 million. The 8,600-square-foot home was built in 1925. Spector paid $1.1 million for the home in 1998. [LAT]

Fredrik Eklund (right) and John Gomes (Photos by Guerin Blask)

Douglas Elliman’s Eklund and Gomes team take a leap with national expansion. The team, led by “Million Dollar Listings New York” stars Fredrik Eklund and John Gomes, has expanded its team six-fold over the last two years. Their launch in L.A. late last year came as the residential market hit (and continues to be in) a lull. Some question if their model can sustain itself, but others say they’re more than ready to go national. [TRD]

A rendering of the Carthay project (credit: Office Untitled)

A 10-story mixed-use project is planned for Carthay. The developer, Beverly Hills Suites LLC, wants to build 45 apartments, a 110-room hotel, and around 6,300 square feet of ground floor commercial space on a 30,000-square-foot property on West Pico Boulevard. [Urbanize]

Uber CEO Dara Khosrowshahi buys in Venice. Khosrowshahi paid $6.8 million for the former home of architect Marmol Radziner. The seller was actress Natasha Gregson Wagner. Radziner designed the 4,000-square-foot home for himself in 2007. [Variety]

WeWork’s IPO roadshow could start next week. The office-space company is aiming to sell about $3.5 billion in shares in the much-hyped event, and already has secured a commitment from major banks for a $6 billion credit facility. [Bloomberg]

Foreign investors are fleeing the U.S. For the first time since 2013, overseas investors sold $13.4 billion in commercial real estate — more than they acquired last quarter. The trend comes as the U.S. bull market matures and uncertain geopolitics have diminished confidence in the local market. [WSJ]

Contactually clients feel abandoned after Compass acquisition. The startup, which provides a customer relationship management tool, has recently told existing clients that it has limited ability to support them, as the majority of its resources have been diverted to building technology for Compass. [Inman]

FROM THE CITY’S RECORDS:

An 86-unit TOC project is in the works for 10341 S. Graham Avenue in Watts. Roughly one in three units will be set aside for low-income renters. The developer, Watt Station LP, also wants to have 7,600 square feet of ground floor commercial space. [LADCP]

A 21-unit TOC project is planned at 9300 W. Exposition Boulevard in Palms near Culver City. The six-story project would replace a single-family home and a duplex. [LADCP]

An aerial view of damage caused by Hurricane Dorian in the Bahamas (Credit: Getty Images)

As the Bahamas begins its long recovery process after Hurricane Dorian ravaged Grand Bahama and the Abaco Islands, the country faces an uphill battle rebuilding hotels and its tourism industry.

“The Bahamas is the most tourism-dependent country in the Caribbean and perhaps the world,” said Rick Newton of Resort Capital Partners, a Charlotte, North Carolina-based real estate investment advisory firm focused on the resort and hospitality market in the United States, the Caribbean and Latin America.

Tourism accounts for about 50 percent of the country’s gross domestic product, according to the Bahamian government’s website, and most of the nation’s workers are employed in some aspect of tourism, as well.

The dependance on hotels and tourism makes the rebuilding process even more difficult for the Bahamas, after the hurricane made landfall over Labor Day weekend, bringing wind speeds of more than 180 miles per hour to two of the country’s largest population centers, Grand Bahama and the Abacos.

The hurricane, fortunately, missed the country’s capital city Nassau, along with Paradise Island, where the largest resorts and hotels are located, including Baha Mar and Atlantis, Paradise Island.

Frank Comito, CEO of the Caribbean Hotel and Tourism Association, said the hotels and resorts in Nassau were not impacted by the hurricane and never closed.

The Abaco Islands and Grand Bahama have a much different hotel landscape than Nassau.

An aerial view of damage caused by Hurricane Dorian in the Bahamas (Credit: Getty Images)

“They have a large vacation home business. A lot of it is rental and timeshares and lot of single-family, high-end homes in the Abacos,” Comito said.

The Abaco Islands and Grand Bahama have a total of about 2,250 hotel rooms, which equates to 15 percent of the total hotel inventory in the country, according to Newton.

Recently the Bahamas has experienced a boom in its hotel industry, growing at a much faster rate than the rest of the Carribean.

Hotel occupancy jumped 19 percent in the first half of this year, compared to the same period of the previous year, according to the hotel-data firm STR. Meanwhile, revenue per available room was up 27 percent to $231 in the first half of this year.

The sizable upswing was due to the completion in 2018 of Baha Mar, a 2,300-room resort and casino.

Experts say that as repair and construction companies start heading to the affected islands in the Bahamas, hotels in Nassau and other nearby areas could see a bump in revenue and occupancy as repair workers need a place to stay.

After Hurricane Irma damaged parts of the Florida Keys in September 2017, the Miami region saw double-digit increases in occupancy, revenue and demand. In October 2017, Miami area hotel occupancy was at 74.5 percent, up 11.2 percent from the same month of the previous year.

Rebuilding in the affected areas in the Bahamas, however, is likely much more challenging than after a hurricane in the Keys or South Florida. In the Bahamas, there are only a few institutionally owned properties in Abaco Islands and Grand Bahama that can afford to make repairs and rebuild dilapidated hotels, according to Newton.

Similarly, the Bahamas can’t tap into federal resources to rebuild infrastructure, like Puerto Rico did after hurricanes Irma and Maria. Following the hurricanes, Puerto Rico quickly sought to take advantage of the Opportunity Zones program.

The federal program designated almost the entire territory of Puerto Rico as an Opportunity Zone, which means that investors who build new real estate projects or redevelop an existing property could get substantial tax breaks. The Island’s governor said that the program could bring more than $600 million in new investment to Puerto Rico, and some investors are already taking advantage of this tax benefit.

In the Bahamas, however, it’s hard to see this same scenario playing out, according to Newton.

Real Estate Investment Trusts will likely be hesitant to put money into the Bahamas, because there is less of an exit strategy than putting the money into the United States, he said. So the bigger question is who will pay to rebuild properties that are torn down?

”Where will the capital come from?” he asked. “It’s not coming from insurance companies. I hope it’s private capital.”

LA Mayor Eric Garcetti and the Metro Gold Line (credit: Global Climate Action Summit via Flickr)

Los Angeles’ Transit-Oriented Communities program has put thousands of affordable units in the pipeline across the city, but one group of Angelenos is no fan of the two-year-old program.

A group called “Fix The City” sued the city last week over the development incentives program, claiming it violated city and state laws and should have been approved by the City Council before it went into effect in the fall of 2017, according to the L.A. Times.

The group wants to put the program on ice, effectively putting mixed market rate and affordable development in the city on hold.

The TOC program is a package of incentives to encourage developers to add affordable units to developments near mass transit options. Adding affordable units allows the developer to build more market-rate units, exceed local height limits, and reduce setbacks, among other incentives.

Developers have embraced the program, filing for hundreds of TOC projects totaling nearly 20,000 units, around 3,900 of them affordable. Mayor Eric Garcetti has called it “an incredible weapon” in the uphill battle to address the city’s affordable housing crisis. By some counts, L.A. County is short half a million affordable homes.

The program was created through the 2016 ballot item Measure JJJ. One of Fix The City’s leaders, Laura Lake, said the city is providing density bonuses and other incentives that exceed what voters approved in 2016.

“We want [TOC] halted and we want the planning department to start all over again with due process, public hearings and do what the voters approved,” Lake told the Times.
The group has sued the city over other programs and was one of three organizations that successfully defeated the Hollywood Community Plan Update in 2013, which would have allowed for an increase in dense development in the neighborhood.

Laura Raymond, Director of the Alliance for Community Transit, was a major proponent of Measure JJJ. She criticized the suit and called Fix the City a “notorious NIMBY group,” according to the Times. [LAT] — Dennis Lynch

Fredrik Eklund (left), Julia Spillman and John Gomes (Photo by Guerin Blask)

It’s been more than a decade since Fredrik Eklund and John Gomes first crossed paths.

In the years since, the Douglas Elliman star agents have been among the top producers in New York, where they have built a following and fan base through appearances on “Million Dollar Listing.”

Last year, their team closed more than $720 million in sell-side deals across Manhattan, Brooklyn and Queens, making them tops in The Real Deal’s annual ranking of broker teams. Nationwide, they claim to have closed about $1.5 billion in sales nationwide. Over the past 24 months, the Eklund-Gomes team has been in expansion mode, adding four new offices in three U.S. cities and grew its team from nine agents to more than 64.

With Eklund’s recent relocation to Los Angeles, and an expansion into L.A. and Miami, the dream team is placing some big bets on their future. Read on for the top 5 takeaways from The Real Deal’s September issue cover story.

1. Eklund has a very Hollywood side gig. Sigge Eklund, Fredrik’s brother, is a best-selling author in Sweden who has also recently relocated to Beverly Hills. The brothers Eklund are apparently writing screenplays together — and while Fredrik declined to comment on the plot, he confirmed that a major studio is reviewing the script.

2. The go-forward strategy of divide and conquer. Following Eklund’s July announcement via Instagram that he would be relocating his family from Tribeca to Los Angeles, Gomes is now taking the lead in New York. “It’s my base to cover,” Gomes said. “His base is Los Angeles.” Julia Spillman, the Eklund-Gomes team CEO and the “mastermind” behind the expansion, will run daily operations including hiring and budget decisions. At the same time, the team will continue to grow nationally: It’s expected to reach 70 agents by early September, with another 30 more in the months to come.

3. How they’ll tackle Los Angeles. In the past year, L.A. County saw $6.8 billion in condo sales, compared to $20 billion in Manhattan co-ops and condos alone during the same time period. “Vertical living is finally happening here,” Eklund said in his Instagram post about moving to L.A. He also he planned to go after luxury home listings. The team also said it had closed 40 deals since launching there last fall. But Gomes and Eklund have scrambled to learn the market over the past year, saying they’ve spent “hundreds of thousands on flights” going back and forth between coasts.

4. Co-listing and referral fees factor into Miami and L.A. growth. Eklund and Gomes deny being fed business from Douglas Elliman or Howard Lorber. ”More than 90 percent of our new development business comes from our own clients,” Gomes said. They will now be working with partners to find a foothold, and are offering to take over listings for Elliman and non-Elliman agents in exchange for 25 to 30 percent referral fees. According to Pietro Belmonte, who runs the teams seven-agent Miami office, they’ll be going in 50-50 on co-listings as well.

5. This is not the beginning of a breakup. Both brokers said the expansion or changes do not reflect an intention to part ways with Elliman. The pair added they have been offered — and declined — “millions” to move their team to another firm. Gomes said that he has been approached by executives, from Corcoran Group CEO Pam Liebman to Ori Allon at Compass. Eklund, better known for his star power, says he has not fielded comparable offers.

Bottom line: “We do not have any interest whatsoever in starting our own real estate firm,” Gomes said. “We have the support of Douglas Elliman, they figure out all the infrastructure, [and] we follow them. I can tell you, we’re retiring at this firm.”

Julia Spillman (Photo by Guerin Blask)

Before there was Julia Spillman, the Eklund-Gomes universe was, well, a little disorganized.

Spillman joined the team in 2016 as the sales director for the 98-unit condo 1 Seaport and quickly began combing through the team’s project database. “It was really messy,” but the team was “sitting on a gold mine of data,” she recalled, noting that she wanted to use it to target former clients who might be ready to trade up.

Read the full story: The Eklund and Gomes roadshow

It worked. More than 75 percent of the tower’s units were pre-sold, she said. And in 2017 — after taking on more and more jobs for the team’s two leaders, John Gomes and Fredrik Eklund — she was named the group’s first CEO.

In the time since, the Kentucky native — who started her career in the residential lending divisions of HSBC and Merrill Lynch in Tampa before relocating with her husband to New York and joining Ariel Cohen’s team at Douglas Elliman — has been credited with getting the team’s back office into shape.

She is now a partner and oversees daily operations, budgets and hires. Oh, and she’s also the mastermind behind the team’s current national expansion plan.

“I call her a superwoman and genius,” said Fredrik Eklund. “Without her, we could never, ever have done this.”

And Spillman is clear about her role: “John and Fred have basically made me the queen of Eklund-Gomes,” she said.

When she took over, her goal was to push the team to crack $1 billion in annual sales nationally — a target that she says it exceeded.

To get the team organized, Spillman tapped her network of web developers and consultants from her banking days and outsourced the creation of a custom CRM (aka customer relationship management) system. She also streamlined the team’s database to feed leads to its resale agents.

At the time, Eklund and Gomes were separately gearing up for newborns — they each now have twin toddlers. Spillman did much of the legwork preparing to pitch their expansion plan to Elliman Chair Howard Lorber.

Like Eklund and Gomes, she is compensated based on commission splits from the team. And the three say they all must agree on major decisions.

Hunie Kwon, an agent who’s worked on the team since 2010, recalled how high the team turnover used to be.

“What Julia brought was that structure,” she said. “Now it’s essentially a business within a business. And it’s run very much like a corporation.”

Renzo Piano and Thom Mayne of Morphosis are among the architects vying to redevelop the Parker Center site (Credit: Wikipedia, RPBW Architects, Morphosis)

Some of the biggest general contracting and architecture firms made the city’s shortlist of three development teams vying to build the $700 million office tower to replace downtown’s Parker Center.

The L.A. Bureau of Engineering released its recommended list for the Los Angeles Street Civic Building Project, according to Urbanize. The teams include giants like Clark Construction and Webcor Construction, and designers that include Skidmore, Owings & Merrill and Renzo Piano Building Workshop.

Whichever team the city ultimately awards the contract will be expected to develop a roughly 750,000-square-foot tower for 3,200 city employees.

The teams are:

*DTLA Civic Partners, LLC, consisting of equity members Meridiam and Edgemoor Infrastructure & Real Estate; lead contractor Clark Construction; lead designer Skidmore, Owings & Merrill; and operations manager ENGIE Services Inc.

*LAC 3 Partners, consisting of equity members Macquarie Financial Holdings and JLC Infrastructure; lead contractor Hensel Phelps Construction; lead designer Morphosis; and operations and management provider Honeywell International.

*Plenary Collaborative Los Angeles, consisting of equity member Plenary Group; lead contractor Webcor Construction; lead designers Smith Group and Renzo Piano Building Workshop; and operations and management provider Johnson Controls.

The city also wants the new building, expected to rise roughly 27 stories, to have up to 65,000 square feet of ground floor retail and parking for 1,200 vehicles. The new building will house offices of several city agencies.

The city first issued a Request for Qualifications for the Parker Center redevelopment in April. The 1955 Parker Center, former home of the L.A. Police Department, was demolished earlier this year following several unsuccessful efforts to halt its redevelopment.

The short-listing can be appealed until Sept. 13. [Urbanize] — Dennis Lynch 

From left: Katerra COO Paal Kibsgaard, Softbank CEO Masayoshi Son, and Katerra CEO Michael Marks (Credit: Katerra, Getty Images, and iStock)

Construction startup Katerra has announced the acquisition of UEB Builders and Fortune-Johnson General Contractors, just one month after hiring former oil-industry executive Paal Kibsgaard as its new chief operating officer.

Under the acquisition, both UEB Builders, a general contractor with offices in Arizona, Washington and Texas, and Fortune-Johnson, a construction company specializing in multifamily projects in the Southeast and Mid-Atlantic, will be folded into Katerra — strengthening the startup’s reach into other U.S. markets.

It is unclear how much the company paid for the acquisitions. A representative for the company declined to disclose any financial details.

“The UEB and Fortune-Johnson teams share a commitment to delivering increased value to customers by embracing technology and innovative methods,” a representative said.

Founded in 2015, Katerra is a technology company that offers general contracting, engineering, design and other building services. Since its launch, the company has secured more than $1 billion in venture capital funding from SoftBank and other investors.

The company has more than 8,500 employees, according to a representative. Katerra has inherited 320 new employees in the latest acquisitions.

In August, Kattera announced its new COO, Paal Kibsgaard, who was previously the CEO of Schlumberger Ltd., a major oil company.

In making the announcement, co-founder Michael Marks said Kibsgaard’s role would involve organizing and better integrating the companies Kattera had recently acquired.

In May of 2018, Katerra acquired Hoboken-based Fields Construction Company.

1723 N Wilcox Avenue (Credit: Google Maps)

Hotel construction is all the rage in Los Angeles and particularly Hollywood, where Relevant Group alone has four boutique projects planned or under development near the same intersection.

Now, a developer who had filed plans for a 68-unit rental building last year has switched course and wants to build his own boutique hotel instead.

Acting through NBK LLC, Nathan Korman has filed to build an 81-key hotel at 1723 Wilcox Avenue, according to a filing with the city Department of City Planning. He is requesting a conditional use permit to allow for a commercial project in a residential zone, the filing shows.

The seven-story structure would include two floors of underground parking, as well as a 1,900-square-foot rooftop restaurant.

Korman first purchased the land for $500,000 in 1994, property records show. He could not be reached for comment.

A filing from Aug. 1 shows the city terminated his original plans after Korman failed to supply the necessary documents for entitlements.

If approved, the project will add to the many hotels popping up in Hollywood, led by Relevant Group, which is building a mini-empire nearby, on the corner of Selma and Wilcox avenues.

And earlier this summer, the developers behind the CitizenM hotel chain added 25 rooms to their proposed project in the area. The Gensler-designed property will now have 240 rooms, up from 216 in the original version.

Zillow CEO Richard Barton (Credit: iStock)

Zillow Group is seeking more than $1 billion in cash amid its “bold expansion.”

The company announced earlier this week two offerings of convertible senior notes — a $600 million offering due in 2024 with a fixed interest rate of 0.75 percent and a $500 million offering due in 2026 at a fixed rate of 1.375 percent, Inman reported. The sale is expected to close on September 9. When the notes mature, the company will repay investors in cash or shares of its Class C capital stock.

In a release, Zillow said it would be using the cash injection for “general corporate purposes,” which could include “working capital, sales and marketing activities, general and administrative matters and capital expenditures.”

On the company’s last earnings call, CEO Rich Barton compared Zillow’s bet on its instant homebuying service, Zillow Offers, and mortgage business to a “moon landing.” Both bets drove revenue in the second quarter and the CEO said it was evidence of the “early stages of a bold expansion” of Zillow. Based on second quarter results, Barton said Zillow Offers was on track to hit an annualized run rate of $1 billion in revenue.

The week before, portfolio manager Steve Eisman, who famously shorted the subprime market, said Zillow is one of his largest short positions. He told The Real Deal that he believed the company has run out of ideas. He described Zillow’s mortgage and iBuying businesses as proof that their “basic business” of making money off its traditional listings platform “was faltering or slowing.”

“In a recession, you’re going to get your head handed to you,” he said. [Inman] — Erin Hudson

A rendering of Del Rey Pointe and a map of the project site (Credit: LADCP)

Playa Vista is home to Google’s massive Spruce Goose campus, as well as offices leased by Facebook and Yahoo, among other tech giants.

Now, an industrious apartment building developer wants to build a bridge to get closer to that action.

The 236-unit proposed Del Rey Pointe project would rise on a 2.7-acre peninsula between Ballona and Centinela creeks, according to Curbed.

The developer, locally based entity 5000 Beethoven, LLC, wants to build a bridge over Centinela Creek to connect the complex with Beethoven Street in Playa Vista, where numerous tech companies have set up shop over the years.

Del Rey Pointe is planned as six stories and 235,000 square feet in total. A total of 38 units would be set aside for varying low-income categories. The Albert Group Architects is designing the complex.

The developer also wants to build a pedestrian and bike bridge to connect the property to the Ballona Creek Bike Path, which runs seven miles from the Coast Bike Path and north to Culver City. [Curbed]

A timeline for the project isn’t clear, but the bridge would take around 30 months to complete and the apartment complex itself around two years, according to Los Angeles Department of City Planning documents.

The developer is working with the Army Corp of Engineers and L.A. County’s Flood Control Department to work out approvals for the project because they have some jurisdiction over the waterways.

Every day, The Real Deal rounds up Los Angeles’ biggest real estate news. We update this page in real time, starting at 9 a.m. PT. Please send any tips or deals to tips@therealdeal.com

This page was last updated at 2:10 p.m. PT

Sandstone Properties wants government aid. The developer is requesting a financial incentive package for help in building 730 hotel rooms near the Los Angeles Convention Center, an area severely lacking hotels. In the past, city officials have awarded assistance to projects similar to Sandstone’s “Albany,” which is slated to bring in $11 million in annual tax revenue. [Urbanize]

One unlucky seller lost $10M on a Bird Streets home sale. Tech entrepreneur Lynda Weinman paid $27 million for a 12,530-square-foot mansion in 2016. Now, she’s sold it to billionaire Rockstar energy drink founder Russ Weiner for $16.5 million. Weinman had first listed the home for $29 million before lowering its ask to $22 million. [Variety]

The Fed is gearing up for another rate cut. The Federal Reserve is reportedly planning another rate cut — likely to be a quarter percentage point — as Donald Trump’s trade war continues to escalate. [WSJ]

The We Company CEO Adam Neumann and Softbank CEO Masayoshi Son (Credit: Getty Images)

WeWork is considering slashing its valuation to $20B. After weeks of criticism over the company’s business model, its parent the We Company is reportedly considering delaying its planned IPO and slashing its valuation to $20 billion. [TRD]

Online brokerage Dwellowner wants to raise $7M through a token offering. Eric Eckardt, a former Purplebricks executive, is seeking $7 million to $10 million to help grow his new cloud-based brokerage, Dwellowner, via a security token offering. [TRD]

The Del Rey Pointe project site (Credit: L.A. Department of City Planning)

A 236-unit apartment complex is planned on a sliver of land in Playa Vista. The six-story Del Rey Pointe complex would rise on a small wedge of land between Ballona and Centinela creeks near the Marina Freeway. The developer plans to build a bridge over Centinela creek to connect the complex to Playa Vista proper. [Curbed]

Scott Disick lists Hidden Hills home, looks to double his investment. The “Keeping Up With the Kardashians” star listed his 5,600-square-foot home for $6.9 million, nearly twice what he paid for it last year. The five-bedroom home was remodeled with a more open floor plan. [LAT]

City shortlists three development teams for $700 million redevelopment at old LAPD headquarters. The city wants to build a roughly 750,000-square-foot office tower for over 3,000 city employees at the site of the former Parker Center. Each team has multiple design, contracting and equity members. Morphosis, Renzo Piano Building Workshop, and SOM are the designers their respective teams. [Urbanize]

33256 Pacific Coast Highway (Credit: Ginger Glass)

Guy Dreier-designed Malibu manse hits market asking $65 million. Longtime owner Michael Flannery has listed a 2.3-acre property in Malibu Beach that overlooks the Pacific. The main home spans 5,000 square feet and the grounds feature a tennis court, aquarium, pizza oven, and perhaps most important of all, 200 feet of beachfront access. [TRD]

Real estate billionaire Sam Zell criticizes WeWork. Real estate mogul Sam Zell has criticised WeWork’s business model ahead of the co-working giant’s initial public offering in September, stating in an interview that “every single company in this space has gone broke.” [Business Insider]

Canadian department store chain Hudson’s Bay struggles to find younger audience. A plan to scoop up multiple stores left vacant by Sears Canada seemed like a good one back in 2017, but two years down the line, the CEO of Hudson Bay has expressed regret over the strategy as the Canadian company struggles to attract younger consumers. At least Saks Fifth Avenue is doing alright. [Bloomberg]

Jeffrey Epstein’s address book lists more than 1,000 names. An anonymous man identified in records associated with Jeffrey Epstein has filed a motion to fight the release of his name, arguing it could cause severe reputational damage. “There are hundreds of other people implicated in dockets,” said Jeffrey S. Pagliuca, an attorney involved in the litigation — suggesting more cases could be on the horizon. [NYT]

The world’s most liveable cities. If you haven’t been to Vienna, now’s the time to go. The Austrian capital was named the world’s most liveable city for the second year in a row this week. Others in the top 10 included, Sydney, Melbourne, Osaka, Tokyo and Copenhagen. New York placed 58th, and London 48th. [Bloomberg]

FROM THE CITY’S RECORDS:

Developer Nathan Korman is switching out plans to build an apartment complex in the Hollywood Hills in favor of building an 81-key hotel. He first planned apartments at 1723 N. Wilcox Avenue last year. The new hotel filing also includes a 1,900-square-foot rooftop restaurant. [LADCP]

A developer wants to build a 15-unit Transit-Oriented Communities apartment building at 1073 W. Exposition Boulevard near Exposition Park. Two units would be reserved for “extremely low-income” renters. [LADCP]

From left: Fran Flanagan, Rustin Mork, Danny Reaume and Troy Wooten

Compass has poached another team from Coldwell Banker, this time the Fran Flanagan Group. The move comes less than a month after Compass lured two of Coldwell’s biggest stars, Chris Cortazzo and Ginger Glass to join its ranks.

The three-person team is led by Fran Flanagan, a veteran agent who works primarily in Pacific Palisades and Brentwood. Among her biggest deals was selling Eddie Albert’s former home for $19.5 million in Pacific Palisades two years ago. Flanagan is also bringing her daughter Liz Jones and Jill Newhouse Calcaterra, who had recently joined Coldwell. The team started at Compass’ Brentwood office this week. Combined, Compass has recruited 21 agents and staff from Coldwell within the last month.

L.A.’s industrial market has remained hot, and brokerages are paying attention. Last week, JLL hired industrial specialists Rustin Mork and Danny Reaume as senior vice presidents. The team, which focuses on the San Gabriel Valley and L.A., both had served as directors for Binswanger Realty Advisory Group. At JLL, they will represent landlords and tenants, as well as advising investors and developers. They are based in the firm’s Downtown Los Angeles office.

Farther down the coast, Newmark Knight Frank tapped Troy Wooten to serve as senior managing director at the firm’s office in Newport Beach. Wooten founded BroadStreet Real Estate Group in 2010, and has served as the company’s managing principal until joining Newmark. His focus will be on sales and leasing for industrial and flex properties.

Eric Wu, co-founder and CEO of Opendoor

Following the announcement of its new home lending program, iBuyer Opendoor has acquired title and escrow company, OS National.

OS National specializes in residential and commercial title and settlement services. Its 500-member team will join Opendoor’s 1,300 employees in offices around the country.

The announcement marks the latest in a series of steps the SoftBank-backed iBuyer, most recently valued at $3.8 billion, has taken toward owning different parts of the buying and selling process. Its new lending program, Opendoor Home Loans, launched in Texas and Arizona last week.

“Consumers are confused about the status of the close and timeline, overwhelmed by hundreds of documents to understand and sign, and frustrated by the delays due to multiple parties coordinating,” said Eric Wu, co-founder and CEO of Opendoor, in a statement.

The acquisition was meant to make title and escrow “feel less like a barrier” in the home-buying process, he added.

Launched in 2014 and headquartered in San Francisco, Opendoor operates in 20 cities across the country. It recently laid off 50 staffers and asked up to 300 remaining employees to move to its Phoenix office, where it planned to double its staff headcount over the next year.

In recent months, the company has also scaled back its free-lunch policy, however it said it would continue to offer subsidized lunches in its offices with more than 100 people.

The iBuyer secured $300 million in its latest funding round from investors including SoftBank’s $100 billion Vision Fund — bringing its total equity funding to more than $1 billion.