CRE Represented Among LA Mayoral Hopefuls
Though the election for Los Angeles’ next mayor isn’t until next year, commercial real estate is already shaping up to play a role in the race with two industry professionals eyeing bids.
Real estate owner Asher Luzzatto of The Luzzato Co., which has creative office projects in West Adams and Santa Monica, has launched a campaign for mayor, The Real Deal reported Monday.
Luzzato's platform includes plans to eliminate all commercial zoning, seize the Baldwin Hills Crenshaw Plaza by eminent domain to remake it with a more community-focused vision, and invest over $580M in Black and Latino-owned businesses in the area.
The Fairfax-based company is active in South LA. The Luzzatto Co. secured $55M in financing to fund a creative office project in Jefferson Park called The Depot, according to Commercial Observer. It bought 3317 Exposition Place, which is leased to online retailer The RealReal, for $22.5M in April.
Luzzatto, formerly a real estate lawyer, told TRD that it would take “somebody from the outside” to change the way the city operates, framing his lack of political experience as a plus.
Luzzatto isn’t the only CRE player with an eye on City Hall.
Mall mogul Rick Caruso has been rumored as a possible contender, and though he has yet to formally announce his candidacy, Caruso is seriously considering a run, a spokesperson confirmed to Los Angeles magazine.
Caruso, best known for his outdoor retail centers including The Grove and Americana, hired heavy-hitting political consultants to run his campaign, the magazine reported in late October. This month, screenshots were shared on Twitter of an online focus group survey asking about public opinions on Caruso and his appeal as mayor over other already-announced candidates.
Central City Association President and CEO Jessica Lall announced she was joining the race in September, looking to address homelessness and change zoning rules to facilitate the production of affordable housing, according to her campaign announcement.
The race for Los Angeles’s next mayor is already being closely watched by the commercial real estate industry. Industry groups and developers who spoke with Bisnow in October about their hopes for the next mayor all voiced a desire for change — change in the red tape that it takes to move ahead with projects, in the status quo, in City Hall’s attitude toward developers.
“We are part of the fabric of LA,” NAIOP SoCal CEO Tim Jemal told Bisnow last month. “To not have a substantial role in designing the future, I think, would be a mistake — it would be a mistake not to include commercial real estate in those discussions.”
