Press

Sklar Kirsh Moves to 10,000 SF Office

LOS ANGELES-Corporate and real estate transactional law firm Sklar Kirsh LLC has signed a lease for a 10,000-square-foot office space at 1880 Century Park East, GlobeSt.com learns exclusively. The long-term lease is valued at more than $4 million, and is close to the firm’s former location at 1875 Century Park East.

 

“This was a very smooth lease transaction,” says Andrew T. Kirsh, Sklar Kirsh co-founding partner and real estate department chair. Kirsh negotiated the lease on behalf of his law firm. “I’ve handled many lease transactions for clients, and I was impressed with the in-house leasing team and their cooperation throughout the leasing process.”

 

Since launching in February of this year, the firm has grown to 11 attorneys, and needed a larger space to accommodate the growth. The new space, occupying half of the third floor, will also accommodate the firm’s estimated future growth, which includes hiring an additional four attorneys by mid-2014.

 

Held Properties owns the 15-story, class-A building, which currently has a 97% occupancy. “They did everything they could to address our needs. It is not surprising that their tenants are very satisfied in their buildings,” says Kirsh.

 

Held Properties’ high occupancy is no surprise. Century City is a hotbed for class-A office space, but does not offer many residential options. Earlier this year, California Landmark Group purchased the last undeveloped parcel of land for $13 million, which included an option to build 10, 5,000-square-foot homes. The homes will offer employees in the area residential options.

Press

Public Counsel Pro Bono Award Honorees

Public Counsel is proud to announce the Pro Bono Award Nominees to Be Recognized at our Annual Pro Bono Awards Reception

 

Please join us on Wednesday, July 24 at the beautiful Hotel Figueroa in downtown LA to give thanks to some of the nearly 5,000 pro bono attorneys and volunteers who have served over 30,000 clients this past year and to honor the contributions of our Pro Bono Award nominees.

Press

Who’s Who in L.A Law for Los Angeles Business Journal

Having the right real estate attorney can be one of the most crucial business decisions you and your organization make. Real estate transactions can be complex and difficult to navigate without the right legal assistance – a seasoned real estate attorney can walk a business (that is looking to lease, buy or sell) through the legal process for the best possible result. Fortunately, there are some stellar real estate attorneys in Los Angeles. We have profiled this year’s top selections here, along with some basic information about their careers, practice, and some relevant recent successes they’ve achieved.

 

Andrew Kirsh is an experienced commercial real estate transactional attorney, whose clientele includes a broad spectrum of national, regional and local investors, funds, developers, operators, syndicators, private equity providers and lenders. His practice involves all aspects of the real estate industry, including, acquisitions, dispositions, equity investments, syndications, fund formation, development, leasing, financing, note purchases and foreclosures

 

Example of work: Kirsh was lead counsel for the purchase of the historic hotel Two Bunch Palms Resort & Spa in Desert Hot Springs. He represented the buyer, who was a joint venture of real estate investors and Hollywood producers who previously bought Grauman’s Chinese Theater. The buyer purchased Two Bunch from a consortium of banks that had foreclosed on the prior owner. This deal was illustrative of the type of “work-out” transactions that Kirsh has recently focused on.

 

Clients include Lennar Homes of California, Public Storage, Lehman Brothers Holdings Inc

Press

New firm gets former Studio GC

Former Relativity Media LLC general counsel Michael N. Rosner has returned to law firm life at the recently formed Los Angeles-based boutique Sklar Kirsh LLP. Rosner, who started June 1, joins the firm as a partner in the corporate department and brings considerable experience in the commercial financing arena, including film finance. He said the firm, which opened its doors in February was the right place to continue building his practice.

 

“This was a great opportunity to join a very entrepreneurial, up-and-coming firm,” Rosner said. “It offers great value with more flexibility in the structure agreements for clients. Rosner previously served as general counsel for the Beverly Hills-based multimedia studio Relativity Media, which he joined in December 2011 and left roughly six months later in June 2012, according to his LinkedIn profile. After working with the company as outside counsel at Loeb & Loeb LLP for two years, he replaced Relativity’s thengeneral counsel and executive vice president of corporate affairs, Gregory M. Shamo, who moved into the role of co-chief operating office. According to the company website, Shamo once again oversees the company’s legal function.

 

Both Rosner and a Relativity Media representative declined to comment on his departure from the company.

 

‘Michael is an extremely seasoned commercial finance attorney, both in the entertainment industry and in traditional finance.’ Jeffrey A. Sklar

 

While at Relativity, Rosner was involved in an estimated $800 million investment in the company by Ronald W. Burkle and his private equity firm The Yucaipa Companies LLC. He also helped guide a $350 million round of debt financing in 2012 for planned expansions and funding future film projects. The studio is known for producing, distributing and financing film, television and digital media projects.

 

Earlier in his career, Rosner spent several years as in-house legal counsel in the finance industry before joining Loeb & Loeb in 2007. While serving as senior counsel at the firm, he helped Relativity seal a landmark licensing deal with Netflix Inc. in 2010 that allowed Netflix to stream the studio’s content during the traditional “pay TV window,” an arrangement requiring content be available exclusively though a particular platform.

 

Looking ahead, Rosner said his experience at Relativity and with other entertainment clients has provided him with an insider’s perspective of the film and television space and positioned him to better serve his entertainment clients.

 

Jeffrey A. Sklar, who co-founded Skar Kirsh LLP and worked with Rosner at Loeb & Loeb, said Rosner fills an important role at the firm.

 

Michael is an extremely seasoned attorney both in the entertainment and in traditional finance, Sklar said. He helps up accomplish our goal as a premier transactional boutique in Los Angeles.

Press

Relativity Media’s Former General Counsel Joins Sklar Kirsh

Michael Rosner joins a new law firm founded in February

 

Michael Rosner, the former general counsel and executive vice president of Relativity Media, is joining Sklar Kirsh in the law firm’s corporate department.

 

The move represents a return to law-firm life for Rosner, who before joining Relativity full-time was a senior counsel at Loeb & Loeb. For the studio headed by Ryan Kavanaugh, Rosner helped close multiple financing rounds. Rosner joined Relativity in January 2012, around the same time that Ron Burkle and his Yucaipa Cos. investment firm put an estimated $800 million into the film and TV company. He left Relativity last year. Greg Shamo, Relativity’s co COO, now oversees the company’s legal function.

 

Rosner is said to be a specialist in structuring financial transactions. At Relativity, the Los Angeles and San Francisco Daily Journals recognized Rosner as one of the 20 leading general counsel in California.

 

Born in Philadelphia and a 1993 graduate of the Boalt Hall School of Law at the University of California Berkeley, Rosner is now headed to a new firm started by Jeffrey Sklar and Andrew Kirsh. The two founding partners opened shop in February.

 

“Michael Rosner brings to Sklar Kirsh several critical strengths: financial expertise, unparalleled knowledge of corporate law, entertainment industry experience and M&A skills,” said Sklar. “His extensive in-house experience, as well as the time he has spent counseling a wide range of business and lending clients at national law firms, has given Michael and insider’s understanding of the needs of the business client.”

Press

Marcus & Millichap Multifamily Forum Panel

Hear from Andrew Kirsh, Founding Partner of Sklar Kirsh on June 12 as he discusses new multifamily development opportunities during the California Dreamin’ panel.

 

Marcus & Millichap Multifamily Forum California focuses on the threats and opportunities to the booming multifamily market across California, with a special emphasis on trends in rents and operations. Don’t miss this opportunity to network with over 350+ multifamily industry players.

 

As a friend of Andrew Kirsh Save 25% with Promo Code 25KSH

 

Featured Panel:

 

California Dreamin’: Multifamily New Development and Value-Add in 2013

 

With today’s extremely low cap rates on stable core assets, savvy investors are creating their own value, pursuing new developments and re-developments with gusto. With such a tremendous volume of activity underway, what opportunities remain going forward? What regions are most ripe for transitional plays vs. new development? What are very specific examples of recent successful value-ad projects in California? Which amenities and capital improvement choices increase property value the most, and how can they be incorporated into pre-existing projects? Who are the most active players and appropriate capital sources for these deals?

Featured Speaker: Andrew Kirsh, Founding Partner, Sklar Kirsh

 

Andrew T. Kirsh is a founding partner of Sklar Kirsh LLP and is the Chair of the firm’s Real Estate Department. Andrew is an experienced commercial real estate transactional attorney, whose clientele includes a broad spectrum of national, regional and local investors, funds, developers, operators, syndicators, private equity providers and lenders. Andrew’s practice involves all aspects of the real estate industry, including acquisitions, dispositions, equity investments, syndications, fund formation, development, leasing, financing note purchases and foreclosures. Andrew began his career as a real estate attorney in the Los Angeles office of the global firm Latham & Watkins, where he practiced from 2000-2006. He then assisted with the opening of the Century City office of another international law firm, Goodwin Proctor, where he practiced from 2006-2009. Most recently, Andrew was a partner of the Beverly Hills firm, Raines Feldman until 2013, when he opened Sklar Kirsh LLP with co-founding partners Jeff Sklar.

Press

Looking Up – Commentary

SURF Air seemed so promising a year ago. But alas, now that the teensy airline is ready to take off, perhaps as soon as Wednesday, its viability suddenly seems iffy.

 

You may recall last year that Surf Air caught the attention of L.A.’s tech community in particular because of its potential to provide air service between Silicon Valley and Silicon Beach. Tech execs imagined motoring the short distance from the Third Street Promenade to the Santa Monica Airport, handing their keys to a valet, breezing through the general aviation airport with no humiliating TSA pat-down and quickly hopping on a small plane that would land in Silicon Valley.

 

They could fly up in the morning and back in the afternoon. And they may as well fly often, since Surf Air was to offer a Netflix-like, fly-all-you-want-for-$1,000-amonth subscription.

 

Little wonder that Surf Air reportedly got a standing ovation when it made its presentation to investors at the end of its class at the MuckerLab accelerator last year and quickly racked up $4 million in investments. “(Surf Air) could have easily raised three times that amount,” MuckerLab’s president told the Business Journal’s tech reporter, Tom Dotan, at the time.

 

But when Surf Air last week announced that it had gotten approval from the Federal Aviation Administration to take wing, the startup said it will indeed fly to Silicon Valley, but it will be doing so from the Bob Hope Airport in Burbank. There was no explanation of why Santa Monica Airport was not the base. However, given all the protests aimed at the airport – and some local officials’ quest to close it – it’s clear that several more daily flights are not exactly high on Santa Monica’s wish list.

 

The question now: Will tech execs want to rush from the Third Street Promenade and drive the 45 minutes to Burbank? They may figure that LAX, which is more of a hassle but only about 20 minutes away, is more compelling.

 

Oh, and Surf Air’s subscription rate bumped up to $1,650, which is an easy-tocalculate 65 percent increase.

 

Maybe Surf Air will still find its audience. But it may not be the tech community that was so enthusiastic a year ago. • • •

 

What number is so shockingly puny you’d think we were talking about Matt Kemp’s home run total? It’s 31. That’s the number of producers who scored a California tax credit for film projects in the annual lottery last week. That’s 31 for the whole year.

 

That’s 31 of 380 who applied. That figures out to a little more than 8 percent.

 

Eight percent? In the past, we noted that only about 20 percent of those who applied actually got a tax credit, and we thought 20 percent was too low.

 

Several aspects of the film tax credit program need to be updated. For one, producers should be able to sell their tax credits to a third party. (Now, only small-budget, independent films have salable credits.) That would lure more outside producers to California, among other benefits.

 

But the main need is to expand the credit program, which is capped at $100 million. It should be quadrupled or quintupled, but even doubling it would be a help.

 

Remember, this program is not a drain on the state’s treasury. That’s because credits basically are taxes that are not paid in the future for economic activity that will occur soon. And that economic activity creates other taxes that are paid.

 

The worst part: Producers who don’t get the credits – as in the 92 percent who lost out in the lottery last week – are likely to go to othe

Press

Pomona defense plant site is getting new manufacturers

The maker of Con-Tact adhesive paper shelf liners, Little Twig baby bath products and other household items will move to a manufacturing and warehouse building being built on the site of a defunct defense industry plant in Pomona.

 

Kittrich Corp. — which also manufactures pens, highlighters and other school supplies — will make the new 240,000-square-foot building its headquarters when it relocates from La Mirada by the end of the year.

 

It will be in the largest building erected in the San Gabriel Valley since the 2010 construction of a manufacturing plant for Huy Fong Foods Inc. in Irwindale, said Craig Furniss of Seventh Street Development in Long Beach. Seventh Street also built the Huy Fong plant, where the popular Sriracha hot sauce is made.

 

The Kittrich building will rise on the site of a General Dynamics Corp. missile plant that closed in 1996. General Dynamics was once Pomona’s largest employer, but it started laying off workers in the late 1980s as the Cold War ended. By the time the defense contractor left Pomona in 1994, about 7,000 jobs had been eliminated.

 

Recent demand for new warehouse and distribution centers in the region put the old General Dynamics site in play. Seventh Street bought land there from the federal government and is erecting industrial buildings for sale or lease in what it calls Mission-71 Business Park for its location at Mission Boulevard and California 71.

 

Other occupants of the business park include industrial sling manufacturing company Lift-It, boiler maker Dawson Co. and Filipino food products distributor Martin Purefoods Corp. There is a shortage of industrial space in the area, real estate brokers said.

 

“No new construction in the past three years has created a significant lack of product, making the San Gabriel Valley industrial market one of the tightest markets in the entire L.A. region,” broker Lynn Knox of CBRE said.

 

The General Dynamics site is one of many that local governments and developers are laboring to redevelop, Los Angeles real estate attorney Andrew Kirsh said.

 

“In Southern California, the defense industry prospered over nearly the entire 20th century,” said Kirsh, who represents a home builder at the former El Toro Marine Corps Air Station now known as the Orange County Great Park. Such obsolete properties offer both headaches and potential rewards.

 

“They take up a lot of land and can become eyesores,” he said, “but are also a great opportunity for developers to invigorate the local economy.”

Press, Corporate, Real Estate

The Internet Brings Unintended Consequences to a Changing Retail Market

What effects has the Internet had on the brick-and-mortar retail market? This question has been discussed, written about, analyzed and debated thousands of times over the past several years. During this time, it has become rather routine for consumers to purchase all sorts of goods on the Internet. From clothing to household items and office supplies, it’s clear there is a generational shift that is affecting one’s buying habits. As a result, vacancies are up and demand is down as fewer transactions are occurring in the physical stores.

 

Other consequences have also emerged as a result of this increase in online shopping. First, shopping centers have become less about a place to make routine purchases and more about a meaningful experience where members of a community can spend several hours on a weekend or afternoon. Landlords are expanding their basic services by providing value-added features that are not easily duplicated online. For instance, shopping centers now provide consumers with personalized services like farmers markets, concerts and holiday-themed events. Centers have quickly become mini-oases, catering to all members of the family with waterfalls, light shows and cartoon characters. The retail tenants that are in demand are those that cannot easily be replicated through a computer transaction, such as movie theaters, restaurants or ones that provide products that consumers do not typically purchase via the Internet, including those found in grocery stores, drugstores and high-end retail locations.

 

Yes, retail is most definitely experiencing a bifurcated market. Cap rates are compressing for properties that are either anchored by a national grocery store or drugstore, or are viewed as a destination centerpiece for a community. Conversely, retail centers that do not offer unique services or have historically relied on retailers whose products are now more often purchased online are experiencing less demand and thus, higher cap rates.

 

Although the Internet has predictably affected the retail real estate market, it has perhaps unexpectedly increased the demand for industrial real estate. During the recent recession, industrial properties suffered greatly due to the rapid decline in economic activity. Recently, however, retailers that account for a large percentage of their business online are requiring large distribution centers and warehouses in order to rapidly distribute their products to consumers. As such, the market for infill industrial properties is extremely tight, with occupancy rates at record highs and cap rates on the steady decline.

 

The Internet does not necessarily mean doom and gloom for the real estate market. Granted, it has made it pretty convenient for people to buy the latest best-seller while sitting on the couch in their pajamas. Those landlords evolving and willing to make the necessary expenditures, however, are witnessing growth and a valuation increase in their properties across the retail and industrial sectors.

Press, Real Estate

Expert: Maybe Too Much Apt. Development

LOS ANGELES-Following the day-long RealShare LA event, GlobeSt.com headed over to the Sklar Kirsh LLP Reception and joined approximately 35 industry folks at Chef David Myers’ newest restaurant, Hinoki & The Bird. Partner Andrew Kirsh, who had moderated the development panel at RealShare L.A., gave us a few more thoughts on the market, his panel, and more about the new law firm and its “unique vantage point.”

 

According to Kirsh, “The asset classes where we see the most demand are multifamily, mixed-use and creative office, especially projects that are concentrated around transit-oriented districts, as evidenced by my panel today,” says Kirsh.

 

Development is in full force.” Kirsh tells us that there is sufficient capital to build is demand from the consumer to purchase or lease the real estate that is being built. In fact, he says, “several of the panelists voiced their concern that there may be too much development in the multifamily space, which is unbelievable to hear since just a couple years ago there was literally no development occurring.”

 

The RealShare conference series is produced by ALM’s Real Estate Media Group, which also publishes GlobeSt.com and Real Estate Forum.

 

When we asked more about how things are going with his new law firm, which he founded with corporate transactional attorney Jeff Sklar in February, he tells us that the firm is focusing solely on real estate and corporate transactions. “We have an intimate vantage point as to what deals are getting done,” he says. He explains that, “We have about 50% of our client base doing deals in California, but the other 50% are Development is in full force says, Andrew Kirsh (l), pictured here with Jeff Sklar. Approximately 35 industry folks gathered at Chef David Myers’ newest restaurant, Hinoki & The Birdoing deals throughout the US, including Arizona, Nevada, Texas, Florida and even Iowa. Because there is so much demand in the coastal regions, in order to get better cap rates, our clients are purchasing real estate outside of California.”

 

In addition to multifamily, here in Los Angeles, he says, the creative office market, which caters to tech companies, is extremely active. “We have closed several deals recently where institutional capital joint ventured with local operators to purchase value added deals in the office sector,” he says. “With the influx of ‘Silicon Beach’ tenants into the market place, we are seeing a sea change in the type of office product that is currently in demand with the creative office sector.”

 

When asked about teaming up with Kirsh, Sklar tells GlobeSt.com that “Andrew and I saw this as a perfect opportunity to join forces. High-net-worth individuals, investment funds, family offices and emerging and large companies alike are finding it is now a good time to put their money to work, whether it is forming a new business, financing one, buying or selling real estate or other assets, or growing through merger-andacquisition activity. We knew we could put together a team to handle these complex corporate and real estate transactions at reasonable pricing. It is definitely an example of one and one equaling three.”

 

As GlobeSt.com previously reported, Kirsh was among the 40 rising stars Real Estate Forum editors selected from among more than 250 nominations. Read more in the October 2012 issue of Real Estate Forum.

  • “Closing real estate deals takes an enormous amount of focus on the operators' part. We rely heavily on the expertise of the Sklar Kirsh team and are confident that our best interests are being met 100% of the time.”
    — Eddie Ring, New Standard Equities, Inc.

This testimonial does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.