A residential agent was the victim of a disturbing attack at an Encino open house on Sunday afternoon. And the whole thing was caught on camera.

Security footage from a camera above the home’s front door shows a man pushing the agent into a bush and then standing over her as she screamed, according to the local NBC affiliate.
After pushing her into the bush, the man grabbed her chest and then ran off. The Los Angeles Police Department is investigating the incident as a battery.

The incident was the culmination of a frightening pattern of behavior. The man had visited the open house before. He asked her to check something behind the washer and dryer, then immediately grabbed her and lifted her up over them, according to NBC-LA. She believes another suspicious man at an earlier open house conspired with her attacker.

On Sunday, she went outside while he was in the house and she said he repeatedly tried to get her come back into the house.

“He tried so many times, and no way I was going inside,” she said.

The woman works for a Keller Williams office in the area. Her team leader, Bob Siegmeth, said he arranged for a self-defense instructor to come to the office on Tuesday.

“You wouldn’t imagine something like this would happen in daylight, especially when a camera is recording,” Siegmeth said. “I think the big thing is to educate our agents and make sure they know what’s going on.”

Open houses are ripe targets. Police charged a Keller Williams agent and an accomplice last month with dozens of counts for a string of burglaries during open houses between 2016 and 2018.

Agents told The Real Deal they make sure someone is watching every part of the house, particularly at large high-end homes, and said jewelry and medication are often targeted by thieves. [NBC-LA]

The tony hillside communities on the Westside recorded four of the top five priciest residential sales in Los Angeles County last week. And all but one sold for below asking, another indicator of the continued softening luxury market.

The Westside was popular, but it was a recently-built mansion in Bradbury that nabbed the highest sale, at $10.5 million. The 14,700-square-foot home was the only one to sell for eight digits over the past seven days.

Combined, the five sales amounted to $41.4 million, well above the previous week’s $32.2 million.

The information was compiled from the Multiple Listings Service and Redfin, from Sept. 17-24.

608 Deodar Lane | Bradbury | $10.5M
This 2016-built neo-classical mansion spans 14,700 square feet and sits on nearly 3 acres of land. It sits within the Bradbury Estates gated community at the southern edge of Angeles National Forest. The eight-bedroom, 11-bathroom home has a maid’s room, library, three fireplaces and an elevator. The sale was well below the original asking price of $13.5 million, when it hit the market in April. George He Gao with RE/MAX Elite Realty had the listing.

106 Winnett Place | Santa Monica | $8.5M
Set just off San Vicente Boulevard, this 9,580-square-foot home sits on about a half-acre, landscaped with fountains, gardens, and walkways. The 2001 home has limestone and wood floors. There are four bedrooms and seven bathrooms, including a master bedroom suite with a fireplace. It hit the market in June asking just under $9 million. Charles Pence with Compass had the listing.

3378 Stone Ridge Lane | Bel Air | $8.3M
Built in 1987, this 9,000-square-foot home is the oldest among the top sales last week. It sits in a gated community off Mulholland Drive near the Stone Canyon Reservoir. A large stone motor court sits at the entrance of the home. Behind it, a landscaped yard leads to the pool, a pool house and a small tennis court. The Bel Air home also hit the market asking around $9 million in June. David Kramer with Hilton & Hyland had the listing.

1557 Tower Grove Drive | Beverly Hills | $7.1M
This modern spec home totals 6,100 square feet and has six bedrooms and bathrooms. Records suggest it was built in 2013. Like many spec mansions that have hit the market in recent years, the home has an open floor plan and retractable glass doors to close off or open up rooms. Floor-to-ceiling glass walls also open to the backyard and pool. It sold for about $50,000 above its August asking price. Drew Fenton with Hilton & Hyland had the listing.

121 N. Canyon View Drive | Brentwood | $7M
This 7,600-square-foot home built last year sold as a pocket listing. The home has six bedrooms and eight bathrooms, a formal dining room, and floor-to-ceiling glass doors between rooms. Vahe Shaghzo had the listing.

One of Los Angeles’ biggest landlords has added a new housing complex in Woodland Hills to its portfolio, as it continues to invest in multifamily properties and shed its office holdings.

Decron Properties paid $79 million for a 250-unit community in the Warner Center section, an area that has seen a surge in recent development. Property records reveal the seller was Pacific Urban Residential.

Called the Alura, the property at 6333 Canoga Avenue includes a mix of studio, one-, two- and three-bedroom units. Decron, which announced the purchase, said it plans to renovate the aging complex, which dates back to the late 1970s.

The building last traded for $19.9 million in 2012, records show.

Gregory Harris, Kevin Green and Joseph Grabiec of Institutional Property Advisors represented Palo Alto-based Pacific Urban.

Earlier this summer, Decron sold a 300,000-square-foot office tower in Huntington Beach to prolific developer Onni Group for $97.3 million. At the time, Decron said it was in the process of unloading some of its commercial assets in California ahead of the potential statewide property tax hike, Proposition 13.

Based in Mid-Wilshire, Decron owns around 8,230 multifamily units in the state. In July, the firm landed a $125 million refinancing loan for its 405-unit community near the Los Angeles International Airport. The company also owns apartment buildings in Westwood, West Hollywood and Koreatown, among others.

House Speaker Nancy Pelosi on Tuesday announced the beginning of a formal impeachment inquiry of President Trump over his conversation with Ukranian President Volodymyr Zelensky.

The decision follows the revelation of a whistleblower complaint that was filed in August, which accused Trump of pressuring Zelensky to investigate Democratic presidential candidate Joe Biden and his son, Hunter.

Trump’s ties to the country extend further back than that conversation. They include a connection to a Ukrainian developer who wanted the Trump branding rights for a Moscow tower, and his associates’ efforts to negotiate a possible Russia-Ukraine peace deal. Nothing came of either scheme.

Trump also announced Tuesday that he would authorize the release of a transcript of the conversation with Zelensky, but his administration has declined to provide Congress with a copy of the complaint, the New York Times reported.

“They never even saw the transcript of the call. A total Witch Hunt!” the president tweeted within minutes of Pelosi’s announcement.

Over the past few years, various reports and investigations have untangled relationships between Trump’s development side associates and Ukrainian businesses and politicians. Here are the real estate-related ties to Ukraine that have been revealed so far:

1) Negotiations with Ukraine-Russian developer
Back in 2006, Trump reportedly demanded $20 million to put his name on a proposed high-rise development in Moscow. Ukranian-Russian developer Pavel Fuks met with Trump several times in 2005, and later with his daughter Ivanka and son Donald Jr. to discuss a Trump-branded tower in Moscow, Bloomberg reported earlier this year. Fuks apparently offered the Trump Organization $10 million for the branding rights, but Trump demanded $20 million. Ultimately, no deal was reached.

2) Possible Ukraine-Russia peace deal brokered by Trump associates
Ahead of the 2016 presidential election, Michael Cohen and Felix Sater, former Trump Organization associates, discussed arranging a public meeting between Russian President Vladimir Putin and Donald Trump, according to Special Counsel Robert Mueller’s report. Sater hoped the encounter would give a boost to a $1 billion Trump-branded tower in Moscow — different from Fuk’s proposed project — and elevate Trump’s international profile. Both Sater and Cohen pushed a proposed peace deal between Russia and Ukraine to end what is now a five-year conflict, according to the New York Times. The proposal raised questions because, among other issues, it involved a Ukranian lawmaker with aspirations to oust the country’s then-President Petro Poroshenko.

3) Michael Cohen’s taxi business.
Trump’s former attorney and fixer, Cohen got into the taxi business with the help of his Ukrainian father-in-law, Fima Shusterman. When the FBI raided Cohen’s Manhattan hotel room last year, they were specifically looking for documents related to his taxis. The FBI’s search warrant also named Ukraine immigrant taxi owners Semyon and Yasya Shtayner, who received a $26 million loan from Cohen. In March, Cohen filed a lawsuit against the two, alleging that they’d failed to repay a $6 million loan.

4) Bryan Cohen’s $7M Ukraine connection
Michael Cohen’s younger brother, Bryan Cohen, chief administration officer at Douglas Elliman, served as the liaison for Ukrainian agricultural company, Grain Alliance, and the U.S. market, TRD reported last year. Grain Alliance paid at least $7 million into an LLC registered to Cohen’s home, though it’s not clear if any of the money went to Cohen personally.

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 3:20 p.m. PT

Massive housing community planned at former Carson car dealership. JPI is working to secure approvals for a 20-acre development with 1,000 housing units, 200-room hotel and 15,000-square-foot of retail in Carson. The project, designed by Withee Malcolm Architects, is being called Jefferson on Avalon. [Urbanize]

Edison considers cutting power in SoCal amid fire risk. Nearly 90,000 customers could lose power as Santa Ana winds and temperatures pick up, and the risk of fire grows stronger. Some utility providers, such as PG&E, cut power to about 24,000 customers on Monday night. [LAT]

Scammers sent out numerous phishing emails using Howard Lorber’s address. A Douglas Elliman source confirmed to Inman that multiple recipients had received scam emails that appeared to be from the brokerage’s chairman. It is unclear if Lorber’s account was compromised, or if a scammer simply “spoofed” his email address. [Inman]

Compass’ COO is out. Maëlle Gavet is leaving,the latest in a string of recent exits at the SoftBank-backed residential brokerage. In an email to agents Tuesday, CEO Robert Reffkin described the departure as a “mutual decision.” [TRD]

And Adam Neumann is stepping down as WeWork’s CEO. The startup’s founder is moving into a non-executive chairman position, after facing pressure from investors to resign. Artie Minson, the company’s CFO, and Sebastian Gunningham, its vice chairman, will replace Neumann as co-CEOs; the company said it will not search for an external CEO. [TRD]

Despite low mortgage rates, home-price gains are still slowing down. The deceleration continued for a 16th straight month in July, with home prices in 20 cities tracked by the S&P CoreLogic Case-Shiller index rising just 2 percent, the least since August 2012. Nationwide home prices rose somewhat faster, growing 3.2 percent. [Bloomberg]

Virgin Trains and Fortress Investment push L.A. to Vegas rail project. The Virgin-branded company formerly known as Brightline and the Softbank-owned private equity firm are trying to convince Nevada and California officials that their 170-mile rail line is the future. They bought the project earlier this year and received permission from California to sell as much as $4.2 billion in tax-exempt bonds for the $4.8 billion project. [Bloomberg]

Attack on broker at open house is caught on camera. Surveillance footage showed a man pushing and groping a real estate agent at an open house in Encino. The agent, who was not seriously injured, said she believed the man was trying to lure her into a back room. [NBCLA]

Ex-Anaheim Duck lists Corona del Mar home. Hockey star Corey Perry is asking $6.7 million for the 5,400-square-foot Cape Cod-style home in the coastal Orange County city. The traditional home was built in 2013 and Perry bought it a year later for just over $4.8 million. The 34-year-old Stanley Cup champion spent 14 years with the Ducks, but signed a one-year contract with the Dallas Stars in July. [LAT]

Architect draws up unique edifice for Hancock Park apartment building. Architect Lorcan O’Herlihy Architects designed a twisting facade for an 11-story building for the 7,000-square-foot lot. The firm said the slim design creates more space between the building and its neighboring properties. Metros Capital is developing the property. [Curbed]

The WeWork IPO is just the latest in SoftBank’s long list of problems. SoftBank-backed companies including Uber, its Chinese rival Didi Chuxing, Slack and cancer-test company Guardant Health are all likely to be marked down in the firm’s third-quarter reporting. The odd structure of Softbank’s Vision Fund — in which 40 percent of the capital comes in the form of debt-like preferred stock — poses greater risks in a downturn, and Masayoshi Son’s firm recently took out an unusual three-year loan to pay back its investors, using its stakes in Uber and Guardant as collateral. [WSJ]

Some developers embrace short-term rentals. From a condo project in Nashville marketed for short-term rental use, to hotel-licensed, Airbnb-branded developments in Miami and Austin, developers are taking a new approach to increasing profits and driving sales. They are also taking steps to address safety and regulatory issues which have historically led landlords to shy away from transient uses. [WSJ]

New NAR data shows more brokers abandoning the franchise model. The latest numbers from the National Association of Realtors show that the percentage of brokerages affiliated with a franchise company has fallen to 11 percent from 13 percent two years ago. Keller Williams is the nation’s largest franchise with 153,904 agents, while Berkshire Hathaway saw the most gains over the past two years. [Inman]

U.S. mortgage holders’ home equity has hit an all-time high. With a collective gain of nearly $428 billion in the second quarter, the average mortgage holder saw a $4,900 home-equity gain in just one year. Despite all-time low mortgage rates, few homeowners are tapping into that equity than in the past — perhaps a holdover from the previous housing crash. [CNBC]

Barron Hilton, the former chairman and CEO of Hilton Hotels, died last week at 91. Over his long career in real estate, Hilton successfully expanded his father’s hotel business into gambling and entertainment. Headliners such as Elvis Presley frequently performed at Hilton’s hotels. The hotel magnate also played a pivotal role in shaping the country’s love of football. This video traces the life of one of the most storied figures in the hospitality and entertainment industries. Check it out.

Voice-over by Lucas McGill

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 9 a.m. PT

Back to the market: Hollywood composer wants $1 million an acre for Carmel estate. Alan Silvestri wants $14 million for the sprawling, 14-acre estate complete with a 12,200-square-foot main house and three guesthouses. He put the estate on the market last year for $17 million, but no buyer emerged. Silvestri composed the score for “Avengers” franchise, as well as “Forrest Gump” and “Back to the Future” trilogy. [LAT]

L.A. City Council pulls back on public sleeping ban following contentious meeting. Council members sent the proposal — to revive a city ordinance that hasn’t been enforced since 2007 — back to the homelessness and poverty committee, which is expected to scale back the proposal. Critics of the bill have been vocal about the tangible, negative impacts it would have on the thousands of homeless in the city and the message it sends to Angelenos. [Curbed]

Affordable complex at Vermont/Santa Monica Red Line station shapes up. Metro officials shared new renderings of the 190-unit development for the East Hollywood Metro station. The developer, Little Tokyo Service Center, wants to build a series of six-story buildings with ground-floor retail space. Groundbreaking could come in 2021. [Curbed]

AB-1482: the rent regulations real estate can’t hate. Real estate investors and trade groups got a good deal with the statewide rent measure that Gov. Newsom is soon to sign into law. One trade group even lobbied to have the bill extended to create more certainty for investors. [TRD]

Decron Properties pushes into Warner Center with $79 million multifamily buy. The Mid-Wilshire-based firm picked up the 250-unit Alura apartment complex in Woodland Hills from Pacific Urban Residential. Decron plans to renovate the complex. [TRD]

Adam Neumann is out. Now what? WeWork is in talks with JPMorgan Chase and Goldman Sachs for a new $3 billion loan, contingent on raising significant equity. The office-space company is also looking at closing side businesses, such as WeGrow, and laying off thousands of employees. [Bloomberg]

An impeachment inquiry against President Trump begins. While the House will focus on his discussions with the Ukrainian president, Trump and his associates have a history of dealings in the country, TRD found. [TRD]

A 20-acre spread in the South Bay city of Carson is slated for a massive mixed-use development.

Developer JPI wants to clear two neighboring sites to make way for 1,048 residential units, a 200-key hotel, and 15,000 square feet of retail space, according to Urbanize. The development is being called Jefferson on Avalon.

The larger of the two sites is a triangular lot on the corner of Avalon Boulevard and 213th Street bordering Interstate 405. The other property is west across Avalon Boulevard.

Texas-based JPI wants to build five-story apartment buildings and 40 three-story townhomes, as well as some standalone commercial space — a 12,000-square-foot “food pavilion” and a 2,500-square-foot drive-through coffee shop, according to documents published by Carson.

In August, JPI secured an $80 million construction loan for a 244-unit apartment complex in nearby South Gate. The firm has built a handful of apartment communities in Anaheim.

The project needs several discretionary approvals from Carson city officials. A timeline for the project hasn’t been released, but JPI says the complex would be built in phases, starting with the multifamily housing, according to Urbanize. The 40 townhomes, the hotel, and retail buildings are scheduled for the last phase.

Carson has another big project in the pipeline. Private equity firm Energy Capital Partners wants to build an 80-acre sports complex with 52 tennis courts, eight soccer fields, and other facilities. Golf superstar Tiger Woods’ organization TGR Foundation is signed on to lead an academic center planned on the campus. [Urbanize] — Dennis Lynch

If AOC had her way, landlords would feel the pain. The big ones, anyway.

On the heels of Sen. Bernie Sanders’ $2.5 trillion housing plan, the firebrand New York congresswoman just released her own $16.5 billion plan on Tuesday, and it’s not pretty for institutional landlords.

Though any landlord with five or more properties would be subject to her overall housing proposal, Alexandria Ocasio-Cortez is really taking aim at “market-controlling landlords,” whom she defines as owners with more than 100 properties in a single metropolitan area, 1,000 rental units nationwide or rental units in three states.

“It’s time that we stop commodifying the housing market because it is not a speculative investment, it is a basic right for all Americans,” she said at a rally earlier this month.

Under her housing plan — which she said is premised on transparency, fairness and justice — large institutional landlords would have to provide quarterly data to the Secretary of Housing and Urban Development. The “market-controlling landlords” would have to disclose the median rent in their units, any vacate orders, copies of current leases, the identity of the landlord, and list the company’s three largest shareholders, she said.

It would be up to tenants to enforce these measures by filing civil actions, or state attorney generals to file in U.S. district courts for damages.

AOC’s plan would include the lowest cap yet on annual rent increases for landlords with at least five properties. The “Place to Prosper Act” would limit increases to 3 percent of the average rent or the consumer price index, whichever is greater. The proposed rent cap is smaller than both the rent control measure passed by California last week — which would cap rent increases at 5 percent plus the consumer price index — and Oregon’s statewide cap of 7 percent plus inflation passed earlier this year.

AOC’s plan would also include a “good cause” eviction provision, versions of which have passed in California and Oregon, but notably failed in New York. In Ocasio-Cortez’ federal version, evictions would be restricted to cases where a tenant has not paid their rent for two months or landlord occupancy of a unit.

Ocasio-Cortez’ bill would not prevent states from enacting stricter limits on rent increases or placing additional obligations on landlords. The bill would also provide $6.5 billion for the next decade to fund tenants’ right to counsel for eviction proceedings, echoing a measure already in place in New York City.

The congresswoman proposed $10 billion over the next decade for lead abatement. In her own district, the New York City Housing Authority is embroiled in a lead-based paint crisis that led to the poisoning of hundreds of children between 2012 and 2016. A federal monitor was appointed earlier this year.

The bill also seeks to amend the Fair Housing Act and crack down on discrimination of tenants on federal rent subsidy programs. Under the proposed legislation, the definition of source of income as a protected class would be expanded to include Section 8 housing vouchers and social security benefits.

The bill would also make significant changes to mortgage-backed securities for landlords who repeatedly engage in tenant harassment or foreclose on 40 percent of their occupied properties. The proposal would prohibit federal agencies from issuing or purchasing securities backed by those landlords.

Check back in the coming days for more analysis on her plan.

An investment firm co-founded by a former HFF broker is beefing up its portfolio of retail properties, and it’s starting with shopping centers.

Irvine-based Space Investment Partners paid $18.4 million to acquire a fully-leased Westport Plaza & Square shopping center in Costa Mesa, the firm said Wednesday.

Wohl Investment Co. was the seller. The firm had owned the 39,000-square-foot complex for more than two decades.

Mark Moshayedi, founder of MSM Global Ventures, and former HFF broker Ryan Gallagher teamed up to create Space Investment last year. The firm specializes in developing and managing multifamily, office and retail property in the $15 million to $200 million range.

Though large owners of shopping malls have been trying to redevelop and repurpose their struggling properties, smaller shopping centers in the Los Angeles area have been in demand over the last year.

Westport Plaza, at 369 East 17th Street, includes tenants Etoile, Plums Cafe and Catering, Shunka Sushi and others. The 45-year-old complex was renovated last year.

Philip Voorhees, Jimmy Slusher and Sean Heitzler of CBRE represented the seller.

In the beginning there was Adam Neumann.

Now, WeWork is facing a future without its energetic leader — who raised billions and opened hundreds of office-space locations, but ultimately led the company astray.

“I had so much respect for him when I got there,” said one former executive. “And I had zero when I left.”

The bitter sentiment is shared by many. In recent years, Neumann’s behavior — which included smoking marijuana on an international flight and expressing a desire to become the world’s first trillionaire — became a constant blight on a business many WeWork employees believed in.

In interviews with The Real Deal, eight current and former WeWork executives described a circle of top staff around Neumann who enabled his actions and feared running afoul of the charismatic CEO. Those criticisms extend to a board accused of being complicit in allowing Neumann to take total control of the company and appeased Neumann’s worst management instincts rather than impose strict corporate standards.

“We were making workspace accessible to people and helping people create business,” said a former executive, who, like others, spoke on the condition of anonymity because they have signed non-disclosure agreements. “But there were a lot of distractions.”

Among the most concerning disclosures involved Neumann’s purchase of buildings financed with loans from WeWork, which he later leased back to the company. Others included taking out almost $1 billion in loans and cashing out stock options, and a $5.9 million payment to Neumann for providing WeWork with the right to use the word “we.”

One executive said Neumann was “no financial guru” yet “surrounded himself with yes people.” Until this week, he had majority voting power.

“They created the monster,” the executive said.

A spokesperson for Neumann and his wife, Rebekah Neumann, said the couple “want nothing more for the company than to succeed. They are going to let management do its job, they are not going to be in the way.” WeWork declined to comment.

Neumann’s removal as CEO Tuesday was a stunning blow for one of the world’s most-hyped startups, which has seen its reported value plunge by at least two-thirds from its once lofty $47 billion. Alongside co-founder Miguel McKelvey, the 40-year-old Israeli opened the firm’s first workspace in Soho in 2010 and has since raised $12 billion to scale the company. It has locations in 111 cities and is the largest tenant in New York, central London, Washington, D.C., and other markets.

The company has postponed its IPO indefinitely as its new leadership seeks to reassure investors that can survive forthcoming huge losses and eventually be profitable.

“Neumann’s energy and style was critical,” said one executive. “It’s what allowed the company — even its good parts — to be what it was.”

But his removal came to be seen as necessary for the public offering to succeed. In announcing Neumann’s demotion to non-executive chairman, the firm said CFO Artie Minson and Sebastian Gunningham, a vice chairman, would become co-CEOs. However, those who worked alongside them said the pair were among the people who tolerated Neumann’s poor corporate practices.

“Artie was supposed to be the adult,” one executive said of Minson, who joined WeWork after leaving his post as deputy CFO at Time Warner. Another said he was Neumann’s “biggest enabler.”

Given Minson’s track record of corporate success, his lack of intervention surprised some executives. They ascribed it to his desire to keep his job and not fall out of line with Neumann.

“It’s a company of survival,” said one person.

One person defended Minson, saying the chief financial officer had in fact crossed Neumann on multiple occasions and “paid a price for it.” One such episode led to Minson’s shift from COO to CFO, according to the person, who added, “Adam runs very hot and cold on people, and then finds a new shiny object.”

But Minson and other executives who remain at the company benefited greatly from relationships with Neumann. Minson received multimillion-dollar loans, not to mention a $600,000 loan that was forgiven (other loans have been repaid). Board member Lew Frankfort and COO Jen Berrent also received millions of dollars in loans, company documents show.

Former executives also cast blame on WeWork’s largest investor, SoftBank, whose CEO Masayoshi Son formed a tight bond with Neumann but ultimately pushed for his ouster.

“Providing Adam with a lot of money and then blaming him for not spending it in the way they thought he should is not fair,” said one former executive. “What did they think was going to happen?”

It was Neumann’s image as a loose cannon and visionary leader that attracted exorbitant investments in the first place, in particular from Son, who once told Neumann he was not being “crazy enough.”

In fact, Neumann’s ambition knew few limits. He often said WeWork’s office space was merely the beginning, akin to Amazon’s book sales and Google’s search bar, said the executives. But his attempts to expand WeWork into other offerings — wave pools, co-living and food companies — failed or proved to be distractions. Few have generated much revenue.

Neumann’s wife Rebekah, who stepped away Tuesday from her position as chief brand officer, contributed to the tension in management decisions, the executives said. In addition to launching an elementary school, WeGrow, Rebekah was later given the title co-founder, and reportedly pushed out the former chief brand officer, SoulCycle co-founder Julie Rice earlier this year.

More recently, it was upon Rebekah’s insistence that the company’s IPO prospectus declared “we dedicate this to the energy of we — greater than any one of us but inside each of us.” The bizarre inclusion to a traditional regulatory filing unsettled some of the executives.

Tuesday’s announcement marked the beginning of WeWork’s attempt to reshape a narrative that had become decidedly negative. In statements, its new co-CEOs spoke of a “new journey.” Board member Frankfort said he was “thrilled” about the “new phase” of the company.

Other changes at the company could include an end to WeWork’s notorious party culture, which has included multi-day outdoor festivals to daily happy hours. (One executive recalled an office party where a glass wall in Neumann’s office was smashed.)

Another issue is a human resources department in disarray. One executive recalled waiting weeks before getting administrative staff; others said they worked without a title for extended periods.

What WeWork’s next chapter will look like remains to be seen. Early reports point to mass layoffs, possibly in the thousands, and the shuttering of secondary business lines.

With Neumann as non-executive chairman of a board overseeing two internal CEOs, and without plans to search for a single chief from outside the company, hope is faint that much will change at WeWork, the former executives said.

One source said that the company in the next few days expects to lay off executives who were seen to be Neumann’s “enablers,” including those who were aware of his more erratic behavior. The source would not provide more details.

Some former executives remain bitter about what they see as a self-absorbed leader and compliant followers costing WeWork a chance to finish reshaping the commercial office industry.

“I don’t know why anyone was paying him for the word ‘we,’” said one. “The only word he knew was ‘I.’”

As demand for Los Angeles County multifamily properties remains strong, one investor is sensing the time is right to cash out.

A 63-unit apartment complex in Glendale that was purchased two years ago is again on the market.

An entity tied to investor Jin Woo Lee has listed the building for $25 million, $5 million more than he paid for it in 2017, records show. The complex, called 1001 Melrose, is at 303 W. Glenoaks Boulevard, on the corner of Melrose Avenue.

Lee is connected to a number of real estate entities including JinLee Properties. He bought the complex from Bascom Group in a deal that worked out to $318,000 per unit. Lee could not be immediately reached for comment.

The complex dates from 1963, and was originally a hotel before it was converted to an apartment building several decades ago. Bascom bought it in 2013 and sunk $1.3 million into the property on renovations.

Most of the units are studio and one-bedroom, according to marketing materials from CBRE. There are a handful of two- and three-bedroom units as well. Rents are between $1,669 per month and $2,650 per month. Amenities include a rooftop gym, pool, and recreation room.

Orange County-based investor Raintree Partners recently made a multifamily play in Glendale, purchasing a seven-property portfolio for $79 million. The seven buildings have 231 units total.

Millionaires aren’t what they used to be.

The global population of individuals worth at least $30 million saw their net worth shrink in 2018 for the first time in three years — even as their ranks grew, according to a new report by research firm Wealth-X. Following the downward trend of billionaires’ fortunes, their collective wealth has dropped 1.7 percent to $32.3 trillion last year, amid stock market volatility and concern over the U.S. and China’s trade war.

As a result, the demographics of where the world’s wealthy live have changed. Notably, New York City is once more the world’s capital of millionaires, bumping out the former top city, Hong Kong. The Chinese city saw a 10.6 percent dip in high-net worth individuals, and of those folks, their wealth shrunk by 9 percent. That’s largely a reflection of the trade war, according to one of the report’s authors, Maeen Shaban, director of research and analytics.

On a global level, 31 percent — or about 81,000 high-net worth individuals — were living in the U.S. last year, between either New York, Los Angeles, Chicago, San Francisco, Washington, D.C. or Dallas. The Big Apple had nearly 9,000 ultra-high net worth residents, a 1.3 percent increase from the previous year.

It’s unclear what that means for New York City’s real estate market, which is struggling with a flood of condo inventory and deals only closing after hefty price cuts.

But decline in net worth and recession fears could lead to cutbacks on lavish spending on assets such as “yachts, private aviation, [and] luxury property” among other major purchases, according to Shaban.

Just over a fifth of this ultra wealthy population, which totals around 265,000 worldwide, are interested in pouring their money in real estate for personal or investment reasons, according to the report. Alternative assets, including real estate, accounted for 6 percent of this tier’s holdings last year.

More broadly, international buyers are retreating from U.S. residential markets in droves. Between April 2018 and March 2019, foreign buyers spent $77.9 billion, down from $121 billion a year earlier.

And though brokers say wealthy domestic buyers, who either inherited their fortunes or made them through working in technology, have largely stepped in to the New York market, they’re buying slowly, if at all.

“There are billions of dollars on the sidelines,” said Compass’ Kyle Blackmon, speaking at an event in August.

WealthX’s findings support that assertion. The report notes that many high net worth individuals focused on wealth preservation last year and approached 2019 with “some trepidation.”

“Developments over the first half of the year largely justified this sense of caution,” authors wrote, concluding that “the near-term prospects are therefore not especially favorable.”

But appraiser Jonathan Miller noted that a downturn in the market can also represent “a period of opportunity” for flush buyers. And there’s been historic trades in recent months by billionaire buyers such as Ken Griffin and Jeff Bezos. In June, the market had its best month on the books — but that was largely thanks to buyers trying to beat a looming transfer tax.

“The question is will they continue to invest?” Miller continued.

Write to Erin Hudson at ekh@therealdeal.com

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 9 a.m. PT

LA Councilman moves to block Starwood’s Porter Ranch subdivision. Councilman John Lee said the development site for Starwood Land Advisors’ 285-acre Hidden Creeks Estates and Preserve project should be maintained as open space. The website for the project says Starwood would set aside half of the housing site for parks and open space. [LADN]

Elon Musk aimed high for his Brentwood home sale, but fell to Earth. Musk, who sold the home for $3.9 million, never lived in the 3,000-square-foot pad. He listed the four-bedroom, five-bathroom home in February for $4.9 million, around the same time he bought a larger home in Bel Air for $6.4 million. [Variety]

South Bay cities wants Metro funding for…fiber optic internet? A coalition of 16 cities in the South Bay want to build a fiber optic network and have a creative $4.4 million pitch for Metro officials. They say the network is a way to reduce congestion by allowing government employees to telecommute and would help synchronize traffic lights. Critics say Metro directors should delay a decision or deny the request. [LAT]

LA wants U.S. Supreme Court to let it enforce sidewalk camping policies. Los Angeles and a Venice community group filed briefs in support of a request by Boise, Idaho, to overturn a lower court ruling that bars cities from clearing sidewalk campers. The argument is that the earlier ruling hamstrings local officials. [LADN]

WeWork execs slam Nuemann and his enablers. In interviews with TRD, eight current and former WeWork executives described a culture of impunity at the co-working giant, where Nuemann’s inner circle is said to have enabled his actions and feared running afoul of the charismatic CEO, who stood down this week under pressure from investors. [TRD]

Millionaires’ fortunes are shrinking. Across the world, the net worth of people worth at least $30 million shrunk in 2018 for the first time in three years. It’s unclear what the decline means for the real estate industry, which is grappling with an oversupply of luxury inventory, but insiders say cutbacks on lavish spending could hurt the market. [TRD]

WeWork’s cash flow problems are deepening. The company is losing millions each day, and may only have enough cash to last until next Spring, according to a new report. [Bloomberg]

Multifamily investor lists Glendale apartment complex for $25 million. Jin Woo Lee bought the 63-unit complex in 2017 for $20 million. The complex dates from the early 1960s and is built around a courtyard with a pool. [TRD]

FROM THE CITY’S RECORDS:

Developer SMV Housing LP wants to build a 187-unit affordable housing complex at 1015 N. Vermont Avenue in East Hollywood. The project would make use of Transit-Oriented Communities density bonuses. [LADCP]

Fabric importer and developer Neman Brothers & Associates wants to turn a Hollywood warehouse into creative office. An entity tied to the developer filed plans for 54,870 square feet of creative office space and a 1,400-square-foot restaurant at 5721 W. Santa Monica Boulevard. [LADCP]

San Pedro property eyed for 56-unit TOC project. A developer named Mitchell Lindsay with Lauri Group wants to build the apartments at 420 W. 9th Street. [LADCP]

An entity called Beverly Rampart LLC wants to build a 24-unit TOC apartment building at 214 S. Rampart Boulevard in Echo Park. [LADCP]

UPDATED, Sept. 26, 2019, 1:37 p.m.: WeWork is clearing house of Adam Neumman’s closest allies.

At least two executives were told Wednesday night that their tenure with the company is up, people familiar with the matter told The Real Deal. While a source said some of the execs were still at WeWork as of Thursday afternoon, another source said the company was in the process of negotiating their exit packages.

The executives, who are seen to be aligned with former CEO Adam Neumann, include vice chairman Michael Gross, VP of operations and special projects Zvika Shachar, and director of development Roni Bahar.

Earlier this week, Neumann, WeWork’s charismatic co-founder and leader, stepped down from his role following a month of scrutiny from investors and an embarrassing attempt to take the company public. He ultimately caved to pressure from the company’s largest investor SoftBank, which had invested $10 billion in the company and had supported his departure.

Neumann is now non-executive chairman of the board.

WeWork declined to comment, and declined to make the three departing executives available for comment.

The trio are the latest in a string of high-profile departures at WeWork in recent months. In particular, they were seen as being staunchly aligned with Neumann; Shachar was a childhood friend. The executives were first reported to be under scrutiny by Bloomberg.

A TRD report Wednesday cited interviews with other former executives who described how Neumann surrounded himself with “yes people” who enabled his actions and feared running afoul of him. Blame was also directed at the company board, investors and the current co-CEOs, Artie Minson and Sebastian Gunningham.

Before Neumann announced his demotion Tuesday, at least half a dozen others left the company in preceding months, including New York real estate veteran Wendy Silverstein, who co-led WeWork’s property investment vehicle ARK.

Clarification: This story has been updated to include further details of the executives’ employment status.

UPDATED, Sept. 26, 11:20 a.m.: Neman Brothers & Associates wants to give new life to a set of warehouse properties next to a cemetery where some of Old Hollywood’s biggest legends are buried.

An entity tied to the fabric importer and developer filed plans with Los Angeles to convert the warehouses on Santa Monica Boulevard into creative office space for what appears to be an office campus. The location is next to Hollywood Forever Cemetery, where Silver Screen legends like Rudolph Valentino, Judy Garland, Mickey Rooney and others are buried.

A representative for the firm could not be immediately reached for comment.
The plans describe a conversion of a two-story warehouse at 5743-5763 W. Santa Monica Boulevard into 55,000 square feet of creative office space. It also calls for a 1,400-square-foot restaurant. A parking structure would be built next door.

Neman Brothers also wants to renovate existing buildings on the next block, although the filing does not detail the anticipated square footage of that space.
The existing buildings total around 116,000 square feet, and until recently were leased by Omega Cinema Props. The showbiz company moved to a Rexford-owned warehouse in Downtown L.A. in July.

Separate entities tied to the Neman Brothers’ corporate office in DTLA’s Fashion District acquired the properties for at least $43 million in May, property records show.

Correction: A previous version of this article incorrectly stated that Neman Brothers & Associates is connected to Morad and Hersel Neman.

The Venezuelan government is looking to seize the homes of Venezuelans living abroad as it seeks to capitalize on the four million people who have left the impoverished country.

Venezuelan leader Nicolás Maduro ordered a census this month to look at how many homes in Venezuela are empty, according to the Miami Herald.

In the last two decades, the Venezuelan government has seized billions of dollars in land and other assets of private companies, the Herald reported. Dozens of buildings have already been taken over by groups that support the regime.

There are concerns among Venezuelans that there is a government program called “Locate Your House,” where groups backed by the government are identifying vacant properties.

Earlier this decade, many Venezuelans bought properties in South Florida, especially in Doral and Coral Gables’ Cocoplum neighborhood. Between 2012 and 2015, condo buyers from Venezuela represented roughly 25 percent of Latin American real estate sales in Miami, according to Craig Studnicky, principal and owner of ISG. In February, he said that figure was essentially down to 1 percent.

Some of the country’s top officials have purchased condos and high-end real estate in South Florida, including units at the Porsche Design Tower in Sunny Isles Beach, and multi-million dollar houses in Cocoplum. Some of those assets have been seized by the U.S. government as part of a money laundering investigation.

[Miami Herald] — Keith Larsen

That was fast.

WeWork is selling the private plane used by Adam Neumann days after the co-founder stepped down from his post as CEO.

The company bought the two-bedroom Gulfstream G650 last year for $60 million for Neumann’s use, but the purchase immediately raised concern among investors and frustrated employees, according to Business Insider. The sale comes on the heels of mounting criticism of the co-founder that led to his removal as CEO on Tuesday.

Internal strife began as staff customized the luxury aircraft for Neumann while multiple employees say they were denied bonuses or salary raises due to a lack of resources.

“The company was spending $60 million on an airplane, and I can’t get a decent raise? It felt like it was ‘We over me,’ unless me was Adam. And We was Adam,” one mid-level employee told Business Insider.

The personal touches added to the plane for Neumann included the build-out of two bedrooms and installation of a central computer system with multiple televisions.

Staff members told BI that they spent “three days straight” downloading thousands of movies and TV shows onto the plane’s media system. Neumann also often hosted meetings with employees as he travelled.

“I know of instances where people got on the plane, flew across the country, and flew commercial home,” according to the report, citing an anonymous executive.

Neumann’s behavior came under scrutiny after the company filed paperwork for an IPO in August, which disclosed the personal loans, credit and other income that We issued to its co-founder.

Former and current WeWork executives told The Real Deal they hold the company’s board, investors and two new CEOs responsible for the company’s troubles of late. They charge that group enabled Neumann but should have implemented corporate governance standards.

“They created the monster,” said one of the executives. [BI] — Erin Hudson

Mounting speculation about WeWork co-founder Adam Neumann leaving his role as CEO ended when the company made his departure official earlier this week. But the move gave rise to new uncertainty about the two executives named to replace him and how they would reverse the office-space giant’s deteriorating fortunes.

With Neumann relegated to the role of non-executive chairman, WeWork CFO Artie Minson and Sebastian Gunningham, a vice chairman, take over as co-CEOs. WeWork declined to make Minson and Gunningham available for comment, but in a statement shortly after their appointments, the executives said it was “an incredible honor to lead WeWork during this important moment in the company’s history.”

“Important” is an understatement. The company’s planned initial public offering went horribly awry this summer, raising questions about how WeWork will meet its massive lease obligations in the months ahead and eventually turn a profit. Moreover, it has been plagued by a series of executive departures. On Wednesday night alone pink slips were drawn up for vice chairman Michael Gross, VP of operations and special projects Zvika Shachar and director of development Roni Bahar.

Other recent departures include Wendy Silverstein, the co-head of real estate; Jennifer Skyler, the chief communications officer; and Sarah Pontius, the global head of real estate partnerships.

Despite the turmoil, Minson and Gunningham have been described as steadying presences and capable. In a letter to employees reported by Bloomberg, they said they anticipate “difficult decisions ahead” at the company and want employees to focus on their day-to-day work.

Here’s what you need to know about the new executives:

Artie Minson
The 48-year-old Minson will oversee the financial, legal, human resources, real estate, communications and corporate-development functions at WeWork. He is a graduate of Columbia Business School whose previous jobs include COO at AOL and CFO at Time Warner Cable. He joined WeWork in 2015 as president and COO.

Minson was initially tasked with expanding WeWork’s global presence and managing its business development and administrative functions. He became the company’s CFO in June 2016, and sources have described him as a calm and level-headed worker with a reputation for being “the adult in the room.”

He told Business Insider this spring that WeWork was different from startups like Uber and Airbnb in that it faced few issues with government regulations and community resistance. He also expressed confidence that the firm could continue its rapid growth.

“If you look at the 82,000 desks we opened this quarter, those desks will generate $9 billion of revenue over their life and $2 billion of profit,” he said.

He expressed similar confidence about the company’s growth prospects in a CNBC interview in May, urging investors to view losses as “investments” after WeWork reported $264 million in red ink during the first quarter.

Sebastian Gunningham
Gunningham, 57, will focus on product, technology, design and marketing. He grew up in Argentina and attended Stanford University, and his background is mostly in technology companies. His prior jobs include vice president at Apple, CEO of Peace Software and senior vice president of Amazon Marketplace, where he worked before joining WeWork last year.

Gunningham was a very close adviser to Amazon CEO Jeff Bezos while at the company and became part of his elite group of top lieutenants known as the “S-team,” according to CNBC. At WeWork he was responsible for making the leasing process more technologically friendly and eventually had more than 1,000 people under him.

Employees were reportedly relieved when Gunningham joined the firm because he was seen as a competent professional with a logical approach to problems.

Like Minson, he was viewed as an “adult” at the company. One former executive told Business Insider that his appointment as co-CEO was not a surprise.

“We always kind of assumed [that] pre-IPO, Adam would step down and Sebastian would step up as CEO,” the former employee said.

Paul George and DeAndre Jordan now have a lot more in common.

Less than two months after George was traded to the Los Angeles Clippers, he paid $16 million for Jordan’s Pacific Palisades home, according to Variety. Jordan spent 10 seasons with the Clippers.

The seller was Curtis Macnguyen, a hedge fund manager.

George, a six-time NBA all-star whose nickname is “PG-13,” also owns a home in the Hidden Hills. He paid $7.4 million for the 16,000-square-foot pad in 2016.

Spanning 10,000 square feet, the home features seven bedrooms and 10 bathrooms. There’s also a swimming pool, temperature-controlled wine cellar, elevator, putting green and of course, half-court basketball court.

Developer Ramtin Ray Nosrati built the property on Amalfi Drive in late 2014. Jordan, who now plays for the Brooklyn Nets, bought the pad for $12.7 million roughly a year later. He then sold it to Macnguyen for $1 million less than what he paid.

The property is about nine miles from the future home of the Clippers in Inglewood.

Steve Ballmer, who owns the team, is in the midst of securing final approvals to build a 900,000-square-foot stadium that will hold all of the team’s operations under one roof. As of now, they play in the Staples Center in Downtown Los Angeles but practice in Playa Vista. [Variety] — Natalie Hoberman