Los Angeles Exposition Park Mixed User – Retail Hotel and Apartments

I think I’ve started hundreds of posts with ‘large Los Angeles retail mixed use’ because I probably have. Well, here’s another one.

Across the street from the future Exposition Park soccer stadium will be a new mixed use complex named the Fig, that will include 55,000 square feet of triple net Los Angeles retail and restaurant space, 20,000 square feet of incubator / accelerator / co work space. Also planned will be a 21 story hotel and two seven story structures, one with 222 student apartments and the other with 186 mixed income apartments. 82 of the units will be moderate income.

The 21 story hotel would include 298 rooms. I haven’t heard anything yet on branding.

Developer, Spectrum Group Real Estate plans to tear down eight multiunit residential buildings on the 4 1/2 acre site.

This will be a great addition to the south side of the USC campus in Los Angeles and the newly available net lease retail / restaurant space with make Los Angeles commercial real estate agents very happy.

It’s probably a little early for lease up, but if you’re interested, feel free to contact me, Scott Harris Realtor at 310-473-4789, and I’ll see what i can do.

Los Angeles Commercial Properties for Sale or Lease

Pacific Palisades’ New Retail and Office Grove Ready To Groove

New Retail and Office Grove

Rick Caruso, developer of the Grove and Americana at Brand received final approval yesterday from Los Angeles City Council to start immediately on the rebirth of downtown Pacific Palisades to be named Palisades Village. And what I mean by immediately is that they’re starting on relocating storm drains on the 27th of this month, June 2016.

There’s no question that the retail restaurant section of downtown Pacific Palisades is looking pretty bad so according to the Palisades News support is running about 9 to 1 in favor.  Generally NIMBYs are automatically opposed to something this.  No question that the current Pacific Palisades has lost its mid century charm and need a reboot and refresh.

The Project with Sunset on the south and then Monument, Albright and Via de La Paz on the east north and west will encompass three acres.

Included will be eight new buildings and a park, net leased retail, restaurants, offices, community room, specialty grocery, bank, plus restoration of the Bay Theater. There will be three levels of underground parking with 560 spaces.

This is a hugely useful and needed project and I expect a great result given who is the developer. If you’re a retailer or restaurateur and interested in triple net retail or restaurant space, give me a call, Scott Harris Realtor at 310-473-4789

Santa Monica Mixed Use NNN Triple Net Retail and Apartments Approved

Santa Monica Triple Net Retail Restaurant

Santa Monica California Planning Commission voted 6 – 1 to recommend that the full city council approve this seven story 249 market rate apartment with ground floor triple net retail restaurant complex at 5th and Broadway on the old Fred Segal property.

This is sure to upset the fierce Santa Monica commercial real estate NIMBYs who want anything over 32′ in height to go to a public vote so the 6 – 1 vote from the planning commission is quite a surprise. That being said, it hasn’t passed the full city council yet. However, a 6-1 vote from the planning commission is a real good indication that it will.

I think the two factors that helped with the Santa Monica commercial real estate vote was the proximity to the soon to open Santa Monica Expo Line station and the agreement to provide 64 offsite affordable housing units at 1626 Lincoln.

The new complex, 500 Broadway, will include 68,000 square feet of nnn triple net leased retail and restaurant space and the possibility of a grocery store, 249 market rate apartments and an underground parking garage with 524 spaces.

Architects are Koning Eizenberg.

The project is still a ways off, but if you want to get in line for some of the 68,000 square feet of net nnn leased retail space for lease in Santa Monica or restaurant space, I would be happy to help. Contact me, Scott Harris Realtor, at 310-473-4789.

1031 Exchanges – The Four Basic Rules

1031 Exchanges

Given the glut of triple net retail, single tenant, S&P BBB rated or higher, replacement properties that have come on market over the last couple of weeks, we have plenty of net leased Walmarts, Walgreens, CVSs, 7-11s, etc. available, and at decent cap rates with long 10+ year leases.

These are as perfect a 1031 replacement (upleg) property as we find so I thought it might be a good time to go over the four primary 1031 rules.

  • Rule # 1 Both the relinquished property and replacement property must be held for investment purposes or used in a business and be ‘like kind’.
  • Rule # 2 The IRS requires the investor to identify the replacement property or properties within the 45 ‘identification period’. The identification period begins the day of closing of the relinquished property. The replacement properties must be properly identified by the Exchanger.

There are two more identification rules under Rule #2. The exchanger may identify up to three replacement properties regardless of market value (Three Property Rule). Or they may identify unlimited number of properties provided that the total value not exceed 200% of the relinquished property (200% Rule). The minimum requirement is 95% of the value of the relinquished property

  • Rule #3 You must close on the replacement property the earliest of within 180 days of the closing of the relinquished property or the due date of the tax return or file an extension. And this is 180 calendar days … no time off for weekends or holidays.
  • Rule #4 On a delayed exchange, you must work with an IRS approved Qualified Intermediary.

For more detail regarding a 1031 exchange replacement properties, or referral to a Qualified Intermediary, contact me, Scott Harris, 310.473.4789 or 614.905.6614

1031 Buyer Requirement – Triple Net Retail or Absolute Net Retail, National Credit, Single Tenant – $1.3 to $2.6 Million

California exchanger in day 4 of 45 day identification period looking for triple net retail properties for sale or absolute net retail investment.  $1.3 mil needs to be replaced to $2.6 mil under the 200% 1031 rule.

Must be credit tenant, preferably single tenant, NNN, triple net leased retail with at least seven years unexpired left on net lease.   Corporate net leased retail properties for sale such as single tenant 7 Eleven, Circle K, Get Go, Turkey Hill, KFC, Chipotle, Panera Bread, Taco Bell, Walgreen, CVS, Tractor Supply, Auto Zone, NAPA, Advanced Auto, etc. is fine.  Fast food and fast casual fine if corporate lease.

Again, relinquished property closed four days ago the clock is running and will have 41 days left in the 1031 45 day identification period.

California, Los Angeles or Santa Monica commercial real estate agent  / broker /principal with property  that meets above requirement call me, Scott Harris at 310-473-4789, 614-905-6614 or better yet, email to scottharrisrealtor@gmail.com.

Retail Lease Basics

I get questions from both proprietors starting a new concept and looking for a new space to lease and investment buyers looking for net leased retail properties to purchase so I thought it would be a good time to review the basic lease types. I’m certain that most Columbus commercial real estate agents get the same exact questions

The corporate backed, investment grade, single tenant, triple net retail lease has been one of the hottest segments of the market over the last four or five years. So hot in fact that cap rates have plummeted to record lows in just about every market in the country.   Los Angeles commercial real estate agents, buyers and tenants have seen cap rate plummet to sub 4%.   Columbus commercial real estate agents in what little we have to sell here that’s newer, single tenant, net leased, credit tenant are seeing asking caps in low to mid 5% range.

First, what does investment grade or national credit really mean when coupled with single tenant, triple net ? The commercial real estate flavor du jour is a retail, single tenant, single parcel with national credit – meaning S&P BBB or the Moody’s equivalent, Baa3 or higher, long, triple net (NNN) lease. What they are really asking for is an absolute net or bond lease where there are no landlord day to day responsibilities.

But what do these acronyms really mean – NN, double net, NNN, triple net, bond lease, absolute net, modified gross and etc.? Regardless of what the seller or listing agent labels the lease, it is imperative to read the lease thoroughly at the earliest opportunity and have a real estate attorney licensed in the state where the property is located, review the lease. Remember, the devil’s in the details. Also keep in mind that the perfect lease doesn’t exist.

Back to the flavor du jour that I mentioned in the third paragraph – approach the analysis of a triple net leased investment with the idea that the buyer is purchasing the lease rather than the building and land.

Because definition of triple net leases differs, be sure you understand what’s in and what’s not in the lease. Get your hands on the lease as early in the process as possible to save time and money later. If you can get it prior to making the offer or in the offer counter offer stage, that’s even better. Best to find that one paragraph that knocks the property out of contention before you start spending money on due diligence such as inspections, surveys and appraisals.

A net lease generally refers to an arrangement where the tenant pays all or almost all of the property’s operating costs in addition to rent. There are a number of gradations of a net lease so I’ll cover the broad categories from strongest to weakest.

Bond or Absolute Net Lease. The tenant is responsible for everything – all operating expenses, maintenance, repairs and replacements for the building and site without limitation without limitation.

Triple Net (NNN) Lease. These leases follow the above except that capital expenditures, especially toward the end of the lease, are the landlord’s responsibility. You commonly will see leases that are labeled triple net are in fact double net in that the landlord is responsible for roof and structure. As I’ve said above a few times, read the lease and have a real estate attorney licensed in the state where the property is located review the lease.

Double Net (NN) Lease. Follows the above except that landlord is responsible for structural components of the building such as roof and load bearing walls, but also could include parking lot, plumbing and electrical.

Modified Gross Lease. The tenant pays its own utilities, interior maintenance, janitorial, small repairs and insurance and the landlord pays everything else.

Santa Monica’s No Growth is Forcing Tech Firms Out

Santa Monica has a very active bunch of NIMBYs who will shut your new project down if they don’t like it, and that’s generally the case.

Tech industry has become the source for 25% of Santa Monica’s jobs and they’re doing their best to drive them out.

Google and Yahoo have already given up and are moving on to ‘greener pastures’ in Venice, Culver City and Playa Vista.   Santa Monica growth has stalled out as high tech firms search for rare office space and housing for their workers. As a result, rents have shot up.

In the past decade or so, the city has only approved 67,000 square feet on non-residential space and 230 multifamily units. Santa Monica’s NIMBYs are quite proud that they’ve shut down the long debated Bergamot Transit Village which would have brought 375,000 square feet of office space and 427 badly needed apartment units adjacent to the new Expo Line.

How long have they been working on the 2010 Zoning Code Update? They’re saying that they are going to wrap up discussions in February, but didn’t say what year.

Just keep it up folks until you’re back in decline as you were 30 years ago or so before the rousing success of Third Street Promenade.

 

 

New Six Story Culver City / Palms Mixed Use

West Los Angeles net leased retail and apartmentsBetter late than never is the story with this new ground floor net leased retail mixed use building with 131 apartment units above.  It’s on the northwest corner of Washington Blvd and Hughes Avenue in Palms, bordering Palms and Culver City.

Developed by NMS Properties with Architects Killefer Flammang in Santa Monica.  The building will feature 12,500 square feet of ground floor retail with a 131 market rate one, two and three bedroom luxury units above complete with fitness center, community lounge and theater, just like all the rest of what’s getting built.

This West Los Angeles mixed use retail / residential building was approved back in 2012 and was originally to be completed in spring of 2014, but that slipped to just opening in 2014.  Now it’s sometime in 2015.

They’re likely very busy given that they have 38 apartment communities in Southern California http://www.nmsproperties.com/Apartments/module/properties/

It’s all good though because the one thing we desperately need in Los Angeles, and especially West Los Angeles, is more apartments to keep a bit of a lid on rents.

 

New Whole Foods for Burbank in 241 Unit Mixed Use Apartment Complex

Burbank apartments and net leased retailIt took developer Michael Cusumano two years to get this through Burbank’s planning commission and city council, and despite the objections of Burbank’s mayor, the project finally got approved. Residents complained as always that the project will jack up traffic flow.

The developer will have to drop $250,000 to go toward ‘traffic calming’ measures and the city council voted to chip in another $750,000 on top of that. Approved is a mixed use building in Burbank’s Media District of 241 luxury apartments units to be named Talaria with ground floor net leased retail with a polished casual restaurant and of course the new Whole Foods as major tenants, and maybe the only tenants. Plus, a new parking garage for 751 vehicles and walking distance to Warner Brothers and NBC Studios.

Any questions or interest in a net lease retail location in Burbank, feel free to contact me, Scott Harris Realtor at 310-473-4789

Retail and Restaurant Tenant Credit Ratings

This one is for my triple net retail investors. Net leased retail buyers desiring leverage know that national credit retailers’ credit ratings with S&P and Moody’s are hugely important for getting a loan at decent rates and terms or even getting the loan at all.

Investment grade credit is S&P BBB or above. Once in a while you can get a BBB- rated retailer done by the big lenders, including life companies. For non rated local retailers, restaurants, etc., a local bank with whom you have an existing banking relationship is your best choice.  And better to be non rated than have a B- or a C rating.

I created a credit rating chart a couple of years ago with the then current ratings of the major net lease national retailers. I just updated the chart with current ratings. See the link below.

If you have any questions or need info on a major retailer not listed, call me, Scott Harris Realtor at 310-473-4789 or 614-905-6614

Tenant-Credit-Ratings

Net Lease Retail Cap Rate Compression for First Quarter 2014

Cap rates fell 40 basis points and net lease retail product quality also falls in the first quarter of 2014.

We’re thinking retail right about now as the national ICSC Global Retail Real Estate Convention is just around the corner running through May 18-20 and over 30,000 net lease retail professionals converge on Las Vegas. This is the biggest event of the year for the retail industry and while the mood at the 2013 could be described as optimistic, 2014 is expected to be better yet due to increasing retail sales and lower cap rates.

Consumer retail sales are the most important indicator of the health of the retail segment of the overall economy and drives nearly every retail commercial real estate decision in the sector. According to Abigail Rosenbaum, a senior economist at CBRE Econometric Advisors, Total sales using total annualized percentage change was up 14.5 percent in March to $434 billion. This is a 3.8 percent increase year over year. This sounds great, but sales are only now approaching historical averages.

Overall, the figures indicate that consumers are shopping with increased confidence and higher retail consumer sales will lead to higher rents from net leased retail tenants to landlords.

The national retail availability rate is now under 12% according to CBRE, the best since 2009 and 60 basis points lower than last year. Only the Chicago retail market has softened a bit with the availability rate rising to over 14 percent last quarter. Nationally, space availability is trending lower despite the trends toward online and smaller store formats.

A big problem for those of us in the retail commercial real estate brokerage industry is triple net retail product availability, especially for those of us who do a large volume of 1031s. A 1031 exchanger comes out of a relinquished property that they bought a few years ago at a 8 CAP and then are forced to go to a more expensive property with possibly a lower quality tenant at lower caps to maintain their NOI. There are plenty of buyers and debt is readily available, but there’s so little to buy.

I primarily work two markets: Central Ohio including the Columbus commercial real estate for sale and lease market and the Southern California including the Los Angeles triple net retail market and I’m certainly seeing the above in both of these markets. Further, I see the above situation for buyers in almost all of the American markets.

If 2014 proves to be a difficult year, it won’t be for lack of buyers or net leased retail tenants.  If you have off market or pocket listings, I would be happy to hear from you

1031 Exchange – Retail – Client Requirement $1.6 to $3.2 Million

IRS Section 1031 need for replacement property. Exchanger in day 4 of 45 day identification period from closing relinquished property looking for triple net retail or absolute net retail, $1.6 mil to $3.2 mil.

Exchanger prefers California triple net commercial real estate for sale , but will consider out of state. Must be credit tenant, preferably single tenant, NNN, triple net leased retail with at least seven years unexpired left on net lease. The further the property is from West LA the stronger the preference for absolute net. Corporate leased, triple net, single tenant 7 Eleven, Circle K, KFC, Chipotle, Panera, Taco Bell, Walgreen, CVS, Tractor Supply, Auto Zone, NAPA, Advanced Auto, etc. is fine. Fast food and fast casual fine if corporate lease or large franchisee.

Again relinquished property closed 4 days ago so have 41 days left in the 1031 45 day identification period.  As always, pocket listing or off market would be most welcome

California, Los Angeles or Santa Monica commercial broker / agent /principal with product that meets above requirement call me, Scott Harris at 310-473-4789 or better yet, email to scottharrisrealtor@gmail.com.

Client Need for West Los Angeles Office building for Purchase

Client buyer need for office building in the $5,000,000 to $12,000,000 range to buy with fast close. Client needs to owner occupy 1,500 to 2,000 square feet of the building with the remainder net leased or modified gross office.

Looking west from downtown Los Angeles, west of the Harbor Freeway (110), preferably west of the San Diego (405), and south of the Santa Monica Mountains, Malibu, Westwood, Pacific Palisades, Culver City, West LA, El Segundo, Venice, Beverly Hills, Marina Del Rey, Rancho Park, Palms, Mar Vista, Playa Del Rey, Beverly Hills, West Hollywood, Belair, or Brentwood. South Bay also fine.  Pocket listings and/or off market would be most welcome.

Los Angeles or Santa Monica commercial broker / agent /principal with product that meets above requirement call me, Scott Harris Realtor at 310-473-4789

Update Regarding Measure R2 Draft Proposal For Los Angeles Transit Projects

Los Angeles commercial real estate for sale and leaseI’m getting off of the topic of Los Angeles commercial real estate for sale and lease a bit.  Transportation in and around Los Angeles is of extreme importance if we’re going to have a thriving commercial real estate market well into the future when the population of LA county is expected to rise by another two million.

The impact is especially acute in the super congested Westside / Santa Monica commercial real estate markets where I mostly work.   We are on full in this hot market and anything that adds new triple net retail is welcome.

As always, contact your Westside or Santa Monica commercial realtor / agent for more details.  Most of us pay pretty close attention to these developments.  Of course you can contact me, Scott Harris at (310) 473-4789.

Anyway, back to the topic, Move LA conducted its Transportation Conversation Annual Conference a couple of weeks ago and the topic this year was ‘Imagining Measure R2’.  The conference was covered by multiple media outlets including the LA Times.

A proposal named Move LA’s strawman R2 Proposal was introduced that day as a draft for discussion.  Change is very likely before the measure for another 1/2 cent sales tax increase for 45 years goes on the ballot in 2016.

Remember that measure R for a 1/2 cent increase in sales tax for 30 years was narrowly approved by the required 2/3rd majority in 2008.

Measure R2 county-wide is anticipated to produce $90 billion in revenue over the 45 years

It’s proposed that that half of the of the 20% of revenue dedicated toward highways be used for a  “Grand Boulevards” program.  The other half would be used for Los Angeles County Freeways.  Grand Boulevards would upgrade larger streets with existing bus service to become more complete Boulevards with a mix of transit, bike, pedestrian and car usage. Upgrades would include:

  • Street resurfacing
  • Signal synchronization
  • Landscaping
  • Bicycle and Pedestrian features
  • Bus service enhancements: “better safer bus stops with real time digital information” and bus-only lanes “where appropriate.”
  • Incentives for new mixed-use and mixed-income development

Los Angeles and Santa Monica commercial real estate fro sale and lease

 

 

 

 

 

 

 

 

 

 

http://la.curbed.com/archives/2014/04/heres_the_amazing_la_rail_map_that_measure_r2_could_fund.php#more

http://la.streetsblog.org/2014/04/03/move-l-a-s-measure-r2-draft-proposal-including-their-rail-fantasy-map/

Los Angeles MSA Massive List of Upcoming Mass Transit Projects

This is a link to an older post from Curbed LA dated January 2013, but since these projects can take a decade or even decades to be completed, it’s still very much relevant.   Although some of the proposed projects won’t be completed until 2040, they will drive Los Angeles commercial real estate investment decisions going forward.  The big plus is that they will bring much needed new multi family, office and triple net retail in the metro area.

There are 40 of them believe it or not from ones currently under construction to projects that are just dreams of Los Angeles region’s urban planners.  The most expensive will be the $6 billion Purple Line from downtown LA to Westwood that’s currently under pre construction.

The most ambitious is the San Fernando Valley to the Los Angeles Westside tunnel that will cost $10 billion total and cold start in the next two to three years and take four to five years to build.  Eventually the tunnel could be extended all the way to Sylmar to the north and LAX to the south.  This is an amazingly ambitious project and I think the only way to cure the traffic problem on the 405 that’s been an issue for several decades.   Given that the 405 sees over 300,000 vehicle per day a project like this is almost a guaranteed success.

The tolls that drivers would pay could vary depending on the time of the day, but during the worst of the commutes the tolls would likely be a wash versus what gas is consumed being stuck in the Sepulveda pass for an hour or more.   And of course there would be big environmental benefits getting cars on and off of the 405 much quicker.

The great thing is that the project would leave the 405 relatively free of disruptions during the construction since it will almost all be underground.

This idea has been discussed for years, but now looks like it could be a reality.

The totality of the Los Angeles metro projects will be fantastic for those of us in the Santa Monica, Westside and Los Angeles commercial real estate for sale or lease business and of course for the 10 million plus Los Angeles residents.

Contact your Los Angeles commercial realtor / agent for more details as they break or contact me, Scott Harris, KW Commercial, at 310-473-4789.

Linked below are updates from last year regarding the other 39 projects.

http://la.curbed.com/archives/2013/01/here_are_socals_40_planned_transportation_projects.php

Buyer Need for Triple Net Leased Retail – 1031 exchange

IRS 1031 exchange in 45 day Identification period looking for $3 to $4 million, national credit, preferably single tenant, NNN, triple net leased retail with at least five unexpired years left on net lease.  Prefer absolute net.  Corporate, single tenant 7 Eleven is fine.  Fast food and fast casual fine if corporate lease or large franchisee.  Chipotle or similar is fine

Looking West Los Angeles, west of the Harbor Freeway (110), preferably west of the San Diego (405),  and south of Mulholland in Santa Monica, Malibu, Westwood, Pacific Palisades, Culver City, West LA, El Segundo, Venice, Marina Del Rey, Rancho Park, Palms, Mar Vista, Playa Del Rey, Beverly Hills, West Hollywood, Belair, or Brentwood.   South Bay also fine

About to close relinquished property so have full 45 days left in 1031 45 day identification period.

Los Angeles or Santa Monica commercial broker / agent /principal with product that meets above requirement call me, Scott Harris at 310-473-4789

Owners Holding Contest to Give Away Santa Barbara Restaurant

This is a very creative thing to do with your business if your kids aren’t interested in taking over.

A Santa Barbara restaurant named Pace, will be given away to the applicant who can convince owners’ Jeff and Kim Snyder that they can breathe new life into the two year old Pace Food + Drink located on  State Street.

The plans were to have their two sons eventually take over the restaurant, but the sons had other plans so the owners will hold a contest for the restaurant with the winner announced on June 1st.  Winners will receive all fixtures, trade name, liquor license,  one year paid lease, $20,000 to cover some expenses plus mentoring from Jeff Synder who has 35 years in the business.

Serious applicants must pay $500 to enter the contest and submit a YouTube video explaining why they are the best fit to take over the restaurant.  They also must submit a detailed proposal of potential plans.  A group of ten finalists will be narrowed down to five by the Snyders and panel of food industry judges.  The five finalist will travel to Santa Barbara for interviews, walk – through and a cooking session.  The winner will be announced on June 1st.

http://la.eater.com/archives/2014/02/18/pace_owners_holding_contest_to_give_away_their_rest.php

Client Need for Net Leased Retail – 1031 exchange – 45 Identification Period

IRS 1031 Exchanger in 45 Identification period looking for $3.5 to $5 million, national credit, preferably single tenant, NNN, triple net retail with at least seven unexpired years left on net lease.  Prefer absolute net.  No gas or 7 Eleven.  Fast food and fast casual fine if corporate lease or large franchise.

Looking West Los Angeles, west of the Harbor Freeway, preferably west of the San Diego, north of the Century Freeway and south of Mulholland in Santa Monica, Malibu, Westwood, Pacific Palisades, Culver City, West LA, El Segundo, Venice, Marina Del Rey, Rancho Park, Palms, Mar Vista, Playa Del Rey, Beverly Hills, West Hollywood, Belair, or Brentwood.

Have 30 days left in 1031 45 day identification period.

Los Angeles or Santa Monica commercial broker / agent /principal with product that meets above requirement call me, Scott Harris at 310-473-4789

Los Angeles Commercial Real Estate for sale or Lease

It probably goes without saying, if you’re interested in Santa Monica or Los Angeles commercial real estate for lease, especially in the project I just posted, contact me because the net leased commercial retail space available will be leased up quickly.

I’ll be happy to be your Los Angeles commercial real estate agent.  Good Los Angeles commercial Realtors are difficult to find and I’ll happily take great care of you and your needs.   Same applies if you’re looking for Santa Monica or Los Angeles commercial real estate for sale.  Whether you’re planning on a 1031 exchange, buying for investment, or interested in a Los Angeles commercial net lease,  I’m here to help.

Contact Scott Harris Realtor at 310-473-4789

Large Mixed Use Project for West Hollywood

Los Angeles Commercial Real Estate for leaseDeveloper Avalon Bay Communities and architects MVE partners will be building a 371 unit apartment complex over 32,300 square feet of net leased retail on the site of the old Movietown Plaza, which was demolished a month ago at Santa Monica Blvd. and Poinsettia.

Included will be two market rate and one income and age restricted buildings. The two market rate buildings will be built to LEED Silver certification and the income and age restricted building to LEED Gold certification all over ample underground parking.

New West Los Angeles commercial real estate for lease will fill quickly and likely will be leased up completely before the project is finished.  The net lease retail center will also included a 14,500 square foot specialty market place.

Frankly, this project has been on and off so many times that I’ll believe it when I see it coming out of the ground, but given the Los Angeles commercial real estate environment plus the general lending environment, this time I’m more inclined to believe it’s going to happen.  It will be a great project if and when it does.