The race for the California governor’s office is seeing a significant influx of capital from the real estate sector, with gubernatorial hopefuls Matt Mahan and Steve Hilton both drawing from high-profile property backers.
Steve Hilton, the former Fox News host, has recently received a contribution of just over $39,000 from Dave Dollinger of Silicon Valley-based Dollinger Properties, which maintains assets throughout Southern California. Dollinger joins a group of donors who have each contributed $39,200 to Hilton’s campaign, including Steven Craig of Craig Realty Group, multifamily developer Geoff Palmer, and Frank Suryan Jr., the chairman and chief executive of Lyon Living. There is a possibility these donors may double their contributions to the maximum of $78,400.
While Hilton is currently polling higher, Matt Mahan has secured more total funding from real estate sources. The two candidates also share a common donor in Google cofounder Sergey Brin, although Brin has provided more financial support to Mahan than to Hilton. Brin also recently made a donation to Chad Bianco.
As political funding surges, the Los Angeles commercial real estate market is experiencing a period of volatility, particularly within the “creative office” segment—a studio-office hybrid that has struggled recently. Redcar Properties recently handed back the keys to three properties located at 1620, 1630, and 1650 Euclid Street in Santa Monica to its lender, Bank OZK, following a $50 million debt.
Despite the broader trend, some high-value transactions continue to occur. Teddy Schwarzman’s Black Bear purchased 1221 Olympic Boulevard from J.J. Abrams’ Bad Robot at a price of approximately $1,200 per square foot.
Other developers are pivoting toward residential solutions. Jamison, led by founder Dr. David Lee, has secured a $60 million loan for an office-to-residential conversion project at 3424 Wilshire Boulevard in Los Angeles’ Koreatown. While the mayor has praised Jamison’s conversion efforts in downtown and Koreatown, the family company is navigating a leadership change and mounting pressure regarding its debt obligations.
In the corporate sector, Rexford’s new CEO, Laura Clark, has clarified the company’s relationship with activist investor Elliott. Clark noted that while a succession plan was already established, discussions with Elliott “impact timing” regarding her move into the role. She described the interactions with the investor last year as “friendly.”
Regarding the current status of the relationship, Clark stated that Elliott’s current ownership is unclear and they may no longer be a shareholder. While the REIT is not engaged in regular dialogue with them, Clark confirmed that Rexford has spoken with Elliott in 2026.
Looking ahead, the industry will focus on the ICSC conference in Las Vegas, centered on deals and relationship building. A confirmation hearing for Oceanwide Plaza is scheduled for next week, which could potentially seal the fate of the project.