Los Angeles commercial real estate is seeing a wave of shifts, from executive stock sales at Rexford Industrial Realty to high-profile office relocations and studio debt defaults. Former Rexford co-CEO Michael Frankel has sold over $3.5 million in company shares in recent months, while PricewaterhouseCoopers has confirmed a move from downtown to Century City. Meanwhile, developer Michael Hackman faces loan defaults on major studio properties, and the legal battle over the stalled Oceanwide Plaza continues.
Michael Frankel Divests Rexford Holdings
Former Rexford co-CEO Michael Frankel has offloaded more than $3.5 million worth of company stock since mid-March, according to Securities and Exchange Commission filings. In early July, Frankel proposed the sale of approximately 59,000 shares valued at $2 million. This followed a June proposal to sell 21,500 shares worth over $750,000, and a March sale of 23,000 shares totaling more than $800,000. Rexford stated that Frankel is no longer on the board or executive team and does not comment on individual shareholder activity. Conversely, current executive Laura Clark purchased over 5,000 shares in February, an investment valued at $200,000.
PwC Relocates to Century City
PricewaterhouseCoopers (PwC) will vacate its 100,000-square-foot office at 601 South Figueroa in downtown Los Angeles for a new 150,000-square-foot space at the Irvine Company’s 2121 Avenue of the Stars in Century City. The 15-year lease is valued at approximately $200 million, according to the Los Angeles Times. The move, slated for 2028, highlights a significant spread in market value: Class A office space in Century City commands roughly $8 per square foot monthly, compared to about $4 per square foot in downtown’s Financial District. If the downtown space were leased at current Century City rates, the deal value would be halved to under $115 million.
Michael Hackman Faces Studio Debt Defaults
Hackman Capital Partners has defaulted on loans tied to several major studio assets, including Radford Studio Center, MBS Media Campus, and Television City. The firm currently carries approximately $1.9 billion in debt across its real estate portfolio. A company spokesperson stated they are in active discussions with lending partners regarding the path forward for Television City. Despite these defaults, the firm maintains ownership of other properties, including Culver Studios and Raleigh Studios, the latter of which secured $165 million in refinancing last summer. Culver Steps, another property in the firm’s portfolio, is currently on the market with an asking price of $1,200 per square foot.
Oceanwide Plaza Bankruptcy Stalls
The redevelopment of the bankrupt Oceanwide Plaza in downtown Los Angeles remains in legal flux. In March, a venture between Dr. Kali Chaudhuri’s KPC and contractor Lendlease proposed a $470 million credit-heavy bid to acquire the site. The city of Los Angeles has since objected to the plan, citing a lack of necessary information regarding financing and development strategies. KPC recently responded to these objections, arguing that the certainty provided by bankruptcy court approval is required before additional details can be finalized. The project’s future remains subject to upcoming bankruptcy hearings.
FIGat7th Retail Center Sale
Records reveal that Brookfield’s FIGat7th retail center in downtown Los Angeles traded for $67 million in late May to Newport Beach-based JH Real Estate Partners. The transaction incurred nearly $4 million in city taxes, including the Measure ULA property transfer levy. Financial records indicate that JH Real Estate Partners secured a $48 million loan from Wells Fargo alongside a $4 million line of credit to facilitate the acquisition.
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