The San Fernando Valley Development Boom
Even if you've never met real estate attorney Richard Close, you very likely know who he is. Although Richard works in Santa Monica as a partner in Gilchrist & Rutter, he's been involved in development activity in the San Fernando Valley for a couple of decades now.That's why we're thrilled he'll be moderating one of our all-star panels at Bisnow's 3rd annual Future of the Valley, Thursday, Oct. 1 at Corporate Pointe at West Hills, starting at 8am.
Richard (with grandsons William and Sam along with some friends) sees tremendous development taking place, especially in the Valley's eastern half. He says it's all tied to the growth in entertainment production for companies that need content (think Netflix and similar streaming services), as well as tech companies that work with the various studios in the Valley. Along with this comes a need for new Class-A office buildings, retail and residential. Upscale restaurants are opening in both the West and East Valley, signaling an increase in well-heeled residents in search of some trendy eats.
Here's Richard meeting the Pope. (John Paul II, not the one who just visited back East). As some of you may recall, Richard played key roles in such revolutionary movements as Prop 13, Prop U (LA's 1986 downzoning ordinance) and, yes, the SF Valley secession effort of the late 1990s. Over the next few years, Richard's crystal ball sees even more development in the Valley. And luckily, developers are finding it much less expensive to develop there because land costs are lower than south of Mulholland. Coupled with high demand from the entertainment industry, that's a winning combo for those in the development business.
Richard (with wife Sally, daughter Abby, son Matthew and their spouses and kids) also has a specialty niche in mobile home park redevelopment. Since the demise of California's redevelopment agencies, he says, it has become difficult to assemble large parcels of land, so developers throughout the state are turning their sights to mobile home parks. From the cities' perspective, mobile home parks aren't the highest and best use for the land, nor do they generate the most tax revenue or employment opportunities. (To say nothing of the fact they often were built as temporary uses.) "Most of them were built in the 1970s as 20-year investments, so their useful life probably expired 10 years ago," he says, adding the SF Valley alone has about 44 parks.
Richard and Sally just came back from a trip to St. Petersburg, Russia (above). Richard first went there 31 years ago, when he assisted Jewish emigres who were trying to leave the Soviet Union. The contrast between the days of Communism and the Putin days of today is striking, he says. Back then, it was like the US during the Great Depression. "Now, St. Petersburg is like Paris." In spite of tough times because of low oil prices, he notes, the Russians love their president (but aren't too keen on ours). To meet Richard and the other power hitters at our event, join us Thursday for Bisnow's Future of the Valley at Corporate Pointe at West Hills (8411 Fallbrook Ave in West Hills), starting at 8am. Sign up here!
