C-Suite Quarterly by CSQ Magazine

REAL ESTATE & FINANCE SPRING 2016

LOS ANGELES

Cover

THE REGION’S DISRUPTORS, FASTEST GROWING COMPANIES, BIGGEST EXITS & ACQUISITIONS

MASTER MINERD CSQ.com

GUGGENHEIM’S GLOBAL CIO SCOTT MINERD RETIRED FROM WALL STREET AT 37 AND REEMERGED IN LOS ANGELES TO BECOME ONE OF THE MOST INFLUENTIAL INVESTORS IN THE WORLD

JOHN KILROY LA’S MOST INNOVATIVE OFFICES NADINE WATT SUSTAINABLE INVESTING CROWDFUNDING REAL ESTATE EDWARD G. ATSINGER III FINANCING THE DEVELOPING WORLD

THIS SUMMER’S SENSATION SEQUEL P 179.5FT (54.7M) IS FOR SALE AND FOR CHARTER IN THE MEDITERRANEAN THIS SEASON

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Hughes Marino

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C-Suite /’si- sɥit/ (noun, adj.): 1. A combination of all C-level executives, or officers with “chief” titles, such as CEO, CFO, etc.; 2. The senior executive HQ in a business organization; 3. A title bestowed to the collective of leaders driving economic, policy, and social change.

Profiles

SPRING 2016 - VOL. 8 NO. 2 REAL ESTATE & FINANCE EDITION OPINION

Sustainable Investing: The Rewards of Going Green By Andrei Cherny CEO, Aspiration

51 Crowdfunding:

Real Estate Is Going Mainstream

By Jilliene Helman Founder and CEO, RealtyMogul.com

TOC Features

64Shivani Siroya

Her company, InVenture, is empowering consumers in emerging markets with an alternative to credit scores

66Nadine Watt

72Scott Minerd

Guggenheim Partners’ global CIO gets down to business about finance on the West Coast, his growth as a leader, and what’s next for the world economy

62Keith Wasserman & Damian Langere

A pair of under 40 real estate investors are reshaping the tenant-landlord relationship

63Mark Weinstein

Sensing a student-housing market rife with potential, the Southern California native put his law practice on hold

Watt Companies president discusses the moment she decided the family business was her calling

68John Kilroy

The EY Entrepreneur of the Year discusses a family legacy, taking his company public, and his competitive spirit

130 Closing Bell

Los Angeles World Airports Executive Director Deborah Flint picks up where her predecessor left off

- 8 -

CSQ.COM / SPRING 2016 - Q2

Former Barclays CEO Bob Diamond recalls his role in the Lehman Brothers acquisition and sheds light on his new venture, Atlas Mara

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Contents

SPRING 2016 - VOL. 8 NO. 2 REAL ESTATE & FINANCE EDITION

// Desirables 22 Home Bring your kitchen up to speed 24 Fintech The rise of the robo-advisor 26 Style Seasonal spring selections for any occasion, plus a fashion report from Saks Fifth Avenue’s Eric Jennings 28 Air Salem Media Group CEO Edward G. Atsinger III

founded Sun Air Jets to improve the private flying experience for discerning business travelers – like himself

32 Land The rise of the collector’s garage and three new discerning automotive alternatives 36 Water Size isn’t everything; a closer look at two luxury yacht options from Burgess and Ferretti 38 Buying Time Our picks from the 25th annual SIHH

28 TOC

// Destinations Departments 80 Of Note The ultimate second home

82 New York Minute Our quarterly picks include Wythe Hotel and Shuko 84 Destination: LA

Culver City is thriving. Architect Eric Owen Moss sheds more light

56 // Real Estate & Finance

86 48 Hours & Golf Getaway

Palm Springs, a city with something for everyone, offers world-class golf, hospitality, and entertainment

90 Going Global The stunning beaches of St. Barts are nice, but the tiny island offers much more in terms of commerce and cuisine

48 Of Note A Caruso-CBRE-Gensler

collaboration, the new era of mobile payments, a luxury report on Beverly Hills, and more

52 Breaking Ground CSQ’s 3rd annual report on the notable new developments throughout the region and the players involved 56 Innovative Office A pictorial exploration of creative office space and its effect on corporate culture - 10 -

90 CSQ.COM / SPRING 2016 - Q2

The views looking out are rivaled only by the experiences that live within.

Montage

Between our elegant ambiance, highly personalized service and coveted address â&#x20AC;&#x201D; mere steps from Rodeo Drive â&#x20AC;&#x201D; Montage Beverly Hills helps you capture all of the allure of this legendary city. Enhancing your enjoyment is our signature Forbes Five Star Spa, rooftop pool with panoramic views of the Hollywood hills and renowned culinary offerings. montagehotels . c o m

(310) 860-7800 B E V E R LY H I L L S

D E E R VA L L E Y

K A PA L UA B AY

PA L M E T TO B L U F F

L AGU NA BE AC H

L O S C A B O S ( O p e n i n g L a t e 2 0 17 )

Contents

108 114 // Culture & Taste 108 Of Note American History at

MOCA and The Huntington, men’s fashion at LACMA, plus a CSQ&A with The Broad’s Founding Director Joanne Heyler

110 Lifestyle Report

building the city’s most impressive restaurant portfolio in the process

114 Fine Dining Memorable plates

from The Gadarene Swine, Love & Salt, Otium, and The Rose Cafe

TOC C&T

116 Business Lunch / Happy Hour

Introducing a quarterly analysis of luxury, as told from leaders in three unique industries

Our quarterly picks include Commissary and The Upper West

112 Proprietors’ Profile

117 Required Reading

Husband-wife dream team Josh Loeb and Zoe Nathan are giving everything they’ve got to their hometown, Santa Monica,

How data is driving our lives, the role of AI in finance, and how to maximize the space you work in

93 Opinions and analysis from

tenured professionals and industry leaders in accounting, finance, real estate, and more.

94 Scott M. Sachs, CPA CohnReznick LLP on Crowdfunding 96 Kevin S. Parikh, Esq. Avasant on Digital Transformations 98 Jim Freedman & Jonathan Zucker Intrepid Investment Bankers on Family Offices 100 Bruce Munster Merrill Lynch Private Banking & Investment Group on Global Finance 102 Danone Simpson Montage Insurance Solutions on Employee Benefits 104 Jason Hughes Hughes Marino, Inc. Corporate Real Estate Advisors on Workplace Morale

Departments

14 Masthead 16 Editor’s Note 18 Contributors 119 The Network 128 Issue Index 129 Business Directory - 12 -

In Review:

Sherwood reopens, Bubba wins the Northern Trust Open, and a recap of CSQ’s Visionary Awards in Innovation & Technology

On the Cover: Scott Minerd

Location: Guggenheim Partners West Coast HQ in Santa Monica Photo: Zach Lipp

CSQ.COM / SPRING 2016 - Q2

Saks Fifth Ave SAKS FIFTH AVENUE COLLECTION

Beverly Hills

9634 WILSHIRE BLVD. 310.275.4211

CSQ.COM

Publisher & Editorial Director DAVID WURTH EDITORIAL Managing Editor JASON DEAN Art Director RICARDO GALESIO Associate Editor MATTHEW SEUKUNIAN Copy Editor ALLISON DEAN Automotive Editor TONY PRINCIPE Lifestyle Editor BRITTANY FUISZ Golf Editor RYAN BYERS CONTRIBUTORS Writers KEN BLOCK, TROY BRIARCLIFF, JILL BRUNNER, ANDREI CHERNY, KATE GAGNON, VALERIE HARTMAN, KIRK HAWKINS, JILLIENE HELMAN, ERIC JENNINGS, TESS KRETOWICZ, BRYAN McKRELL, LAUREL MINTZ, JACK NEWTON, LESLIE STEVENS-HUFFMAN, SANDY VAN, WHITNEY VENDT, ANDREA ZARCZYNSKI C-Suite Advisors JAMES FREEDMAN, JASON HUGHES, BRUCE MUNSTER, SCOTT M. SACHS, KEVIN S. PARIKH, DANONE SIMPSON, JONATHAN ZUCKER Photographers DENNIS ROY CORONEL, ZACH LIPP, NEIL G. PHILLIPS Videographer JONATHAN BENAVENTE Illustrators ORLANDO CAICEDO, ASHLE IMBRIALE

Masthead Special Thanks CARLO CACCAVALE

ADVERTISING & MARKETING Account Managers BAACK MEDIA, RITA BISHOP, COLLEEN FAGGIANO, DORIE LEO Director, Marketing & Business Operations DANA SANTULLI-MUHLGAY Manager, Business Development & Partnerships JACK CHANG OPERATIONS Manager, Operations & Finance TIFFANY WEATHERMAN Operations Consultant 1100 MEDIA Accountant STAN ARUTTI Legal STEVEN C. SEREBOFF Regional Distribution RIGHT-WAY DISTRIBUTION Intern HANNAH LUCCHESI INQUIRIES Advertising advertising@csq.com Advisory advisory@csq.com Editorial editorial@csq.com Events events@csq.com Reprints reprints@csq.com Subscriptions csq.com CSQ / C-Suite Quarterly is published four times per year by C-SUITE MEDIA, Inc. It is mailed to C-level executives, business owners, and ultra high-net-worth residential communities as well as distributed at upscale locations throughout Los Angeles and Ventura counties by C-SUITE MEDIA, INC. PO Box 8696 Calabasas, CA 91372 818/225.8168 All rights reserved. CSQ and C-Suite Quarterly are registered trademarks of C-SUITE MEDIA, INC. No articles, illustrations, photographs or any other editorial matter or advertisements herein may be reproduced without permission of copyright owner. C-Suite Quarterly and C-Suite Media, Inc. does not take responsibility for the claims provided herein. Printed in the U.S.A.

- 14 -

CSQ.COM / SPRING 2016 - Q2

LIFE. STYLE.

Autogallery

EDITOR’S NOTE REAL ESTATE & FINANCE

C-SUITE QUARTERLY

Editor’s Note CSQ.com EXCLUSIVE

WIELDING INFLUENCE, FINDING PURPOSE, AND ASSUMING A GREATER RESPONSIBILITY ZAYA YOUNAN Founder & Chairman,Younan Properties Younan Properties’ newest purchase is a French chateau, golf course, and hotel

ach of us is a leader in our own life. Building on this idea, interestingly enough, is the reality that our actions and reactions resonate far beyond ourselves, with every whisper or shout. We all have something to add to the collective conversation; as purveyors of strength and prosperity and with each individual’s dedication to the germination of ideas that can impact thousands, millions – or perhaps billions – of people. What drives us? Is our profession our passion? Does what we do day in and day out measure up to how we would be spending our time if there wasn’t a dollar amount attached? The simple pleasure of producing CSQ is our consistent and enduring connection with those in our community whose engagement extends beyond the perimeter of their business. In fact, there are some exceptional leaders who wield their influence for the purpose of improving life conditions for whomever they chose to work with. Whether reflected in the refurbishing of storied local institutions such as Hollywood (Columbia Square) or the work of Shivani Siroya, whose Santa Monica company InVenture, is helping empower borrowers in Africa and other developing countries, our spring edition is a prime example of the model we have developed for giving our readers a provocative read on the region. If you need more provocation, here’s a taste. Mark Weinstein is giving students a better offering, and as a result, his investors a better return. As a result of his success, he has dedicated a great deal of his time to philanthropic causes, giving and creating opportunities for others to excel. Nadine Watt and John Kilroy, each of

MICHAEL FIORELLI Executive Chef, Love & Salt The Manhattan Beach chef on applying classic techniques to California ingredients

Editor’s Note

- 16 -

EXTENDED This quarter’s destinations

With Greycroft Ventures’ Dana Settle and Thrive Market’s Gunnar Lovelace at CSQ’s Visionaries Awards in Innovation & Technology February 25 at Hyperloop Technologies’ Downtown Los Angeles HQ

whom pursued a different path before joining their respective family business, have become industry leaders after discovering that their true calling was, in essence, preordained. The second year of our pictorial coverage of LA’s Most Innovative Offices is worth some overtime reading. As the office becomes our home away from home, we’ll take you inside some progressive workplaces that are giving the daily grind a fresh spin. When you do pull yourself away from the office, the Palm Springs / La Quinta area offers a staggering 125 golf options just a couple hours away – 7 of which operate under the aegis of PGA West. We give you the lay of the land on three of the top tournament courses in the area. Finally, cover feature Scott Minerd inspires with his intellect and insight on the world economy while providing thoughtful perspective about what

CSQ.COM / SPRING 2016 - Q2

PALM SPRINGS

ST. BARTS

POPULAR Former CSQ cover features Russell Goldsmith City National Bank Anthony Pritzker The Pritzker Group Tom Gores Platinum Equity & The Detroit Pistons constitutes true success. Interviewed at Guggenheim’s illustrious Santa Monica offices one block from the Pacific by Bruce Munster, Scott is a true giant of the financial world and we’re fortunate that he left Wall Street for the West Coast. Cheers!

David Wurth

Beverly West the view to your city, your future

bre no. 01874984 A limited edition collection of 35 designer residences with panoramic views overlooking the Los Angeles Country Club For a personal tour, please call (310) 550-0581 or visit BeverlyWestResidences.com

CON T R I BU TO RS

Jill Brunner is a graphic designer extraordinaire as well as a wordsmith. A proud native of Southern California and current resident of Santa Monica, Jill obtained her bachelor’s degree in advertising and Spanish at Pepperdine University (and half an MBA, just for kicks). After deciding to become the starving artist her parents had always warned her against becoming, Jill attended The Creative Circus in Atlanta for Graphic Design and has since worked on both Web and print designs for companies large and small, including TrueCar, Consumer Reports, Sam’s Club, Dogeared, Munchkin, and USAA. She enjoys traveling, eating exotic things, and posing for photos as if deep in thought. “Palm Springs Eternal,” p. 86

Jilliene Helman is the CEO and Founder of RealtyMogul.com where she is responsible for strategic direction, operations and sits on Realty Mogul’s Board of Directors and Investment Committee. Jilliene has underwritten over $5 billion of real estate and was previously a Vice President at Union Bank, where she spent time in Wealth Management, Finance and Risk Management. Jilliene is a Certified Wealth Strategist®, holds Series 7, 63 and 24 licenses and has a degree in Business from Georgetown University. “Crowdfunding,” p. 51

- 18 -

C -S UI TE QUARTERLY

Andrei Cherny is CEO of Aspiration, an

online financial platform with a conscience that is democratizing access to great financial products. One of Investment News’ “40 Under 40,” Andrei has been an advisor to Fortune 100 companies, a White House aide, a senior fellow at Harvard’s John F. Kennedy School of Government and the Center for American Progress, the co-founder and president of Democracy Journal, a historian, a Navy reserve officer, and a financial fraud prosecutor. He is the author of The Next Deal and The Candy Bombers. He graduated from Harvard College and the University of California Berkeley Law School. “Sustainable Investing,” p. 50

Valerie Hartman is a publishing professional, having worked in marketing for houses such as Oxford University Press, Wiley, and currently Cengage Learning. She attended the University of Toronto, and spent much of her career in NYC and San Francisco before settling down in Providence, Rhode Island. An avid politics buff, she feels lucky to spend her days working with Political Science books. In her spare time, she enjoys all that Little Rhody has to offer. “Credit Where Credit Is Due,” p. 64

Contributors Contributors

Eric Jennings is responsible for

forecasting and communicating seasonal menswear, home and beauty trends for Saks Fifth Avenue. As the voice for upand-coming fashion styles, Eric attends fashion shows in London, New York, Paris, Milan and Asia to scout the latest looks and runway trends. He is also responsible for developing the Saks Fifth Avenue Men’s Collection and other private brands. He has over 20 years of experience in the retail industry, having held positions at Hugo Boss, Giorgio Armani, Nordstrom, and Hickey Freeman. Eric currently resides in New York City, where he is an active member of Fashion Group International and the CFDA. “Complementing Your Surroundings,” p. 26

CSQ.COM / SPRING 2016 - Q2

Laurel Mintz works with prestigious restaurateurs and global brands including Public House, Bassett, iCoffee and Susan G. Komen. She founded Elevate My Brand, a marketing agency, in 2009. She sits on the boards of directors for the American Heart Association and Fender Music Foundationand is a mentor for The Women’s Global Leaders Initiative. Laurel received the LA Business Journal’s 2014 Women Making a Difference Award, Comerica’s 2015 Women of Promise Award, and was nominated for Ernst and Young’s 2015 Entrepreneur of the Year Award. Laurel received her B.A. from UCSB and J.D., M.B.A. from Rutgers University. “When Opportunity Knocks,” p. 63

“What started as a passion for art amounted to a life long endeavor helping collectors in building museum quality collections.” Michael Schwartz CEO and owner of Galerie Michael

a As the founder of Galerie Michael Inc., Michael Schwartz provides expertise from a lifelong career and love of art. His illustrious career as a fine art dealer spans a period of over forty-five years. In 1978 he founded Galerie Michael in Los Angeles, a gallery dedicated to exhibiting four centuries of top-quality European art from Rembrandt to Picasso. His personal interest in providing the highest levels of fine art for collectors led him to realize the need for a world class gallery in Los Angeles- a gallery which would present fine art to the community and provide collectors with an opportunity to study, learn and collect museum quality art at affordable prices. His expertise in building museum quality collections is some of the most highly regarded in the world of fine art.

Galerie Michael

224 North Rodeo Drive Beverly Hills, CA 90210 310.273.3377 art@galeriemichael.com galeriemichael.com Monday to Saturday 10am - 7pm Sunday 11am - 5pm

2016 FEATURED EXHIBITIONS MARCH 5 APRIL 2 MAY 14 JUNE 25

Spring Auction Modern Masters in Color Picasso: Passion + Power Salvador Dalí

If you have interest in building a museum caliber collection contact Michael Schwartz at art@galeriemichael.com or 310.273.3377

etonshirts.com

Eton

BE A NEW GENTLEMAN

395 Santa Monica Place #153 | Santa Monica CA. 90401 | 310-458-6900

Photo: Guillaume Plisson

Desirables Cover Page

DESIRABLES HOME

FINTECH

STYLE

AIR

SILVERYACHTS’ SILVER FAST (p. 36) is the newest in an award-winning line that offers guests – up to 20 of them – indoor / outdoor dining on the main deck with wraparound sliding glass panels for alfresco dining, weather permitting. / silveryachts.com

LAND

WATER

BUYING TIME

DESIRABLES HOME KITCHEN

C-SUITE QUARTERLY

Stealth Kitchen by Resource Furniture

Now you see, now you donâ&#x20AC;&#x2122;t.Your kitchen has never been more organized. / Inquire for pricing Resource Furniture, Los Angeles

DES Kitchen Made Home Furnishings Maximize your space and capitalize on your place with these smartly contained kitchen accessories and appliances

GIGA 5 by Jura

The GIGA 5 offers the highest quality coffee - providing professional technology in the comfort of your home. / $5,599 Sur la Table,The Village at Topanga

24â&#x20AC;? Dual Zone Wine Cabinet by True Residential

Fine wine is equal parts science and art. This Dual Zone system is intended to safeguard both with independent climate zones that offer precise control ensuring your finest vintage stays safe and savory. / Inquire for pricing Snyder Diamond, Santa Monica

Bastille Kitchen Island by Williams Sonoma

An ode to the kitchens of classical France, spruce up your space and entertain, old school. / $4,500 Williams Sonoma, Calabasas - 22 -

CSQ.COM / SPRING 2016 - Q2

BEPREPAREDFORSUCCESS,

NO MATTERWHATTHEDAYMAYBRI NG Li f er ewar dst hos ewhopus houtaheadoft hepackonadai l ybas i s . Feat ur i ngas l eekyetf unct i onaldes i gnandbes ti ncl as sf eat ur es , t heNovomas s agechai r f r om HumanT ouch® i sengi neer edt ohel pyouf eel yourbes t , r egar dl es sofwhet heryou' r ei n t heboar dr oom ort hewei ghtr oom. Mak eNovopar tofyourdai l ypl ant or el ax , r ef ocus , andf i ndt heedgeyou’ vebeens eek i ng.

Human Touch

FEATURES 30Aut oWel l nessPr ogr ams Ex t endi ngFootAndCal fMassage HumanT ouchWar m Ai rT echnol ogy®

3DFul l BodySt r et ch

Cl oudT ouchAcupr essur e Eas yT oUseLCDCont r ol l er Us ePr omoCodeCSQ1 0OFFf or1 0%of fyourNovopur chas e* NoI nt er es tf or24Mont hs * *|www. humant ouch. com/ cs q|8557945660 I ncl udesFr eeShi ppi ngandWhi t eGl oveDel i ver ySer vi ce *Of f erex pi r esJune30, 201 6 * * Subj ectt oqual i f yi ngcr edi tappr oval . I nt er estaccr uesdur i ngt hepr omot i onal per i od, butal l i nt er esti swai ved i ft hepur chaseamounti spai di nf ul l bef or et heex pi r at i onoft hepr omot i onal per i od. Fi nanci ngpr ovi dedbyGr eenSk y®.

DESIRABLES FINTECH

C-SUITE QUARTERLY

FINTECH APPS

Acorns

Roundup purchases and invest your change Father and son duo Jeff and Walter Cruttenden founded Acorns in Newport Beach in February 2012. With the algorithmic help of Nobel Laureate economist Dr. Harry Markowitz, Acorns’ smart portfolio provides a simple entrypoint for anyone to begin investing. MONEY RAISED $32M LARGEST ROUND $23M Series C in April 2015 led by Greycroft Ventures

Robinhood

Commission-free stock trading

Portable Wealth Manager Thanks to the increasing sophistication and smarts of your smartphone, wealth managers, stock brokers, and retirement advisors sit comfortably in your pocket

Built by Stanford roommates Vladimir Tenev and Baiju Bhatt who - after graduation - moved to New York, building trading platforms for the largest financial institutions in the world. After realizing electronic trading firms pay nothing to place trades yet charge investors for each trade, they ventured back to California, aiming to democratize access to the markets.Today, zero-dollar commissions are available for self-directed individual or joint cash brokerage accounts. MONEY RAISED $66M LARGEST ROUND $50M Series B in May 2015 led by New Enterprise Associates

DES- Fintech ROBO ADVISORS

Wealthfront

Big bank expertise, technology-driven With nearly $3B in assets under management, Wealthfront is the largest and fastest growing automated investment service.The management team has previous experience at Vanguard, Facebook, eBay, Microsoft, and other Fortune 500 Companies. With such a diversified background, they offer an equally diversified approach. Wealthfront offers the same financial expertise as a big bank, with technologydriven investment management tools, and a price everyone can afford. MONEY RAISED $129.5M LARGEST ROUND $64M Series D in October 2014 led by Spark Capital

- 24 -

Betterment

Diversified portfolio investing with a twist Founded by Jonathan Stein and Eli Broverman simply because they couldn’t answer friends and family when asked, “How should I invest my money?” Since launching in 2010, Betterment has raked in 9 figures of venture capital and earned a valuation north of $500M. Every dollar invested in Betterment is seamlessly invested in up to 12 different asset classes, optimized for each user’s selected asset allocation. MONEY RAISED $105M LARGEST ROUND $60M Series D in February 2015 led by Francisco Partners

CSQ.COM / SPRING 2016 - Q2

INTRODUCING

L.A.’s MOST EXCLUSIVE BUSINESS AVIATION ADDRESS

C O M I N G S U M M E R 2 01 6

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SALES & ACQUISITIONS | CHARTER & MANAGEMENT | 24-HOUR PRIVATE AVIATION CENTER MAINTENANCE & REFURBISHMENT

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Since starting with a single Learjet in 1968 to now providing the largest business jet fleet on the West Coast, Clay Lacy Aviation is proud to be L.A’s original and best private aviation company. Our new South Campus is designed to offer the highest levels of privacy and security.

Van Nuys Airport – Los Angeles

Watch us grow at claylacy.com/southcampus

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DESIRABLES STYLE

STYLE FOR THE SEASON - SPRING Seasonal menswear, home, and beauty trend-spotter for Saks Fifth Avenue Eric Jennings joins CSQ for a four-installment series in which he provides his insight into styles that will elevate your fashion-based executive decisions.

Complementing Your Surroundings The West Coast and East Coast offer interchangeable spring wardrobe options

BY ERIC JENNINGS

VP Fashion Director Menswear, Home & Beauty

Style, by nature, is perpetually evolving quarter over quarter. In the workplace, there is more flexibility than ever in terms of company standards and how they are reflected not only in dress but in the totality of corporate culture. Hence, dressing for the workplace – here in Los Angeles and across the country – deserves further consideration. For instance, as modern office space becomes more progressive and creative in look, how does that affect workplace fashion? The rule here is simple: The more progressive the decor of the office, the more progressive the fashion. I’m not talking about going too avant garde with your work attire, but I’d certainly recommend wearing clothing from the current season of your favorite brands. (The fit is the telltale sign if something is current!) In terms of trends for 2016, you will be seeing a lot more casual, tailored clothing. That means suits that don’t look like the traditional tailored banker suits (like the classic super-100 wool pinstripe). You’ll be seeing more suits in seasonal fabrics like cottons in spring, linen blends in summer, pinwale corduroy in fall, and perhaps a lightweight flannel in winter. These are great because you can break up the suit and wear them as separates. (Please note, I do NOT recommend breaking up the classic wool suit.) You’ll also be seeing cleaner, dressier sneakers that look great with these more casual suits. You’ll even be seeing dressier leather backpacks that are completely appropriate for a business executive.

DES -Style (Outfits)

- 26 -

When it comes to East Coast business travel, it’s worth the effort in planning to ensure that each item of clothing is essential, has multiple applications, and is based on the weather being forecast for your stay. For instance, you will need an elegant dark navy blue suit, a crisp white shirt and pocket square, and cordovan leather derby shoes and belt. You will also need a trench of some sort as the weather can always be spotty. I’ve got a mid-length tan trench for spring/summer and a long black trench for fall/winter. The trench coat is great because it come in different lengths and weights, so it works well on both the West and East coasts. From my vantage point in New York, it’s clear that LA’s influence on the fashion industry is substantial. You can thank Saint Laurent designer Hedi Slimane for that. By living and designing in LA for the iconic and storied Parisian label, he has created one of the most influential and coveted brands of the moment. I am also seeing more and more young designers like John Elliott coming out of LA who are really tapping into the more casual West Coast culture. The good news is that this look translates well from coast to coast. LA has also become the capital of denim design and manufacturing. Most of the top denim brands come from LA today and they are leading the way with innovative washes, fits, and treatments. CSQ.COM / SPRING 2016 - Q2

C-SUITE QUARTERLY

Two Tone Crewneck Sweater by Bruno Cuccinelli / $695 Saks Fifth Avenue, Beverly Hills

‘EslimE’ | Extra Slim Fit, Cotton Button Down Shirt by BOSS Orange / $125 Hugo Boss, Santa Monica Place

Redford Windbreaker by Ralph Lauren / $1,495 Ralph Lauren, Beverly Hills

Debonair Wool Jacket by Ted Baker / $609 Ted Baker, Beverly Hills

DES -Style (Eric Jennings) Lightweight Luxury As the days get long and the weather warmer, look to earthy tones to stay comfortable and fashionable OUTFITS & ACCESSORIES COMPILED BY TESS KRETOWICZ

The ‘Polacco’ Chukka Boot by Tods / $545 Nordstrom,The Grove

Elliot Oxford by Rag & Bone / $425 Rag & Bone, Brentwood

The Haskell by Warby Parker / From $95 Warby Parker,Venice

CSQ.COM / SPRING 2016 - Q2

Kannon by Oliver Peoples / $450 Wink Optometry, Calabasas

- 27 -

DESIRABLES AIR

DES Air (Ed Atsinger)

From the Airwaves Into Thin Air

Having built one of the most successful U.S. broadcast media companies in Salem Media Group, Edward G. Atsinger III launched his own aircraft charter company, Sun Air Jets, to improve the private air travel experience for busy professionals - such as himself BY KEN BLOCK

verlooking the runway at Camarillo Airport amidst the streamlined surroundings of the Sun Air Jets executive terminal, Edward G. Atsinger III is a model of serene efficiency. A nearby hangar serves as home to many of the aircraft owned and managed by his passion project, Sun Air Jets, including one of their extravagant $40M+ Bombardier Global series aircraft. Sun Air Jets is a private charter company for air travel featuring a fleet of the aforementioned Bombardier jets, complemented by an array of Gulfstream, Hawker, and Challenger models. The company specializes in boutique, - 28 -

turn-key aircraft management for other owners, including aircraft charter, hangar storage, fueling, and jet maintenance. As Sun Air Jets President and COO Brian Counsil explains, “We rent space to airplanes that we don’t necessarily operate that just want to live at the airport, providing rental real estate; then there’s our operational side of the house, where we operate airplanes.” Sun Air Jets boasts a Camarillo campus of more than 11 acres encompassing 131,000 square feet of building space including a 20,000-square-foot executive terminal, a 60,000-gallon jet fuel storage facility, and premium hangar space. The Van Nuys Airport, through a CSQ.COM / SPRING 2016 - Q2

EDWARD G. ATSINGER III Co-founder and CEO, Salem Media Group CEO, Sun Air Jets AGE 76 RESIDENCE Camarillo EDUCATION USC, MA in Communication FAMILY Wife, Mona; son, daughter-in-law, and

3 granddaughters

BOARD MEMBERSHIPS Salem Media Group, National Religious Broadcasters (Chairman, Music License Committee), Oaks Christian School in Westlake Village (founding member)

long-term lease arrangement with Curt Castagna and his Aerolease Associates team, is also home to a Sun Air Jets facility, offering office space and 43,000 square feet of hangar space along with 24-hour aircraft dispatch and support. Although Atsinger is on the Sun Air Jets Camarillo property for roughly 10 hours per week and retains the CEO title, he considers his position as CEO of Salem Media Group to be his “day job.” Counsil runs the company’s day-to-day operations with a relatively high level of autonomy.

Free Speech on the Airwaves

Despite Sun Air Jets’ large centers of operation, Atsinger is perhaps most well

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known as the CEO of Salem Media Group, a publicly traded media conglomerate, with millions of daily radio listeners. It is also a publisher of magazines and books and provider of Internet content. Salem Media Group, which focuses primarily on conservative and Christian audiences, was launched in 1986 and will commemorate its 30-year anniversary on December 31. Today more than half of the company’s 117 radio stations are in the U.S.’s top 25 metropolitan areas and media markets. Many of Salem’s stations focus on faith-based topics like Christian radio and other conservative news such as the Wall St. Business Network. Key on-air personalities associated with the company include Bill Bennett, Michael Medved, and Dennis Prager. Remaining relevant to its targeted conservative audiences is important to the brand’s success, says Atsinger. “[Radio’s] an extremely stable format because once they establish that base of support – it’s almost like an annuity. The longer you’re there, the better that you do.” The company’s audience has evolved organically, with Atsinger and brother-in-law and co-founder Stuart Epperson evaluating the direction each step of the way as “new opportunities presented themselves and as doors opened,” Atsinger says. In addition to Internet properties such as Christianity. com and Redstate.com, roughly 30 percent of Salem Media Group’s 2015 revenue, reported at just over $226M, resulted from book publishing activities featuring conservative-minded authors like Ann Coulter and Newt Gingrich. The roots of what is now Salem Media Group lie in the early groundwork that Atsinger and Epperson put in place as young evangelicals in the ’70s. Atsinger’s sister Nancy married Epperson, whose family was in radio, before FM radio was much of a factor; most stations of any note were AM. California boasted only a small number of FM radio stations, and very few existed overall in the south due to years of reconstruction and lagging economic issues dating all the way back to the Civil War. A USC graduate, Atsinger served as an associate professor of speech and director of forensics at Los Angeles City College for 10 years prior to starting his broadcasting career. He saw an opportunity to get in the back door with a modest proposal to the FCC for a station broadcasting country music in a suburb of Raleigh, North Carolina. He took a sabbatical from his teaching position to

[Radio’s] an extremely stable format because once they establish that base of support – it’s almost like an annuity. The longer you’re there, the better that you do.

launch his first on-air station and soon decided to focus his energy full-time on growing the media empire that would eventually become part of what is now Salem Media Group. Although Atsinger and Epperson owned and operated radio stations separately as well as jointly until they officially formed Salem Media Group in 1986, one of their first joint ventures KDAR in Oxnard, Calif. - could well be considered the beginning of Salem Media Group. “If you want to mark a beginning of Salem Media Group, KDAR was probably one of the milestones." It also confirmed the decision to change focus from country music to conservative Christian broadcasting in 1974. Atsinger learned the radio business, persisted, and grew into the largest metropolitan markets with Epperson - and the rest, one might say, is history. Their

successful partnership is one that both Epperson and Atsinger enjoy to this day. “I’ve been in business with my brotherin-law for 43 years,” Atsinger says. “He brings some skill sets to the table and I bring a lot to the table that complements him. He makes me more effective and I enhance his talents.” Working together effectively with a family member can be difficult, but Atsinger knows from personal experience that “if you get a partner you can work with, it can be much more productive.” Salem Media Group, which went public in 1999, continues to expand and grow to meet the needs of the communities they serve. “We love doing well financially by doing good at the same time – that’s been a guiding principle. We feel that all of our stations are making a positive contribution in the communities they serve.”

Setting His Sights Higher

Atsinger bought his first airplane in 1996, a Hawker 700. As he put it, the plane “flew high and fast” and allowed

DES Air (Ed Atsinger)

SUN AIR JETS

FOUNDED 1999 HQ Camarillo and Van Nuys Airports EMPLOYEES 70 HANGAR SPACE 162,000 sq. ft.

(Camarillo: 120,000; Van Nuys: 42,000)

SALEM MEDIA GROUP NYSE SALM (1999) FOUNDED 1986 HQ Camarillo 2015 REVENUE $263.8M RADIO STATIONS 117

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DESIRABLES AIR

him to go nonstop to and from New York or Washington, DC. But at the time, there weren’t sufficient facilities or services in Camarillo for private aircraft. For travelers with heavy schedules and many stops such as Atsinger, the process needed to be more efficient. One of Atsinger’s more challenging trips included making meetings in four different locations throughout the West Coast in two days’ time, a journey that would have been nearly impossible through commercial airlines. Flying private also allowed him to conduct meetings freely while in the air, something that was also not an option when flying commercial. His ability to speak with his engineer about technical issues after each meeting was critical to improving business and moving more quickly. Thus began Atsinger’s love affair with business aviation. As he continued to reap the benefits of truly efficient private air service, Atsinger realized it was important to open a 24-hour-aday, full-service facility in Camarillo. He founded Sun Air Jets in 1999, and since that time, the overall fleet of aircraft worldwide has continued to grow, increasing by a significant percentage each year between 2000 and 2014. Yet in that same period, very few new airports to handle the larger business aviation fleet have been established nationwide. “The fleet has increased [significantly] in a 10-year period – it just keeps getting bigger.” The planes are also getting bigger, says Atsinger. He points to the example of Gulfstream, which offers premier large-cabin aircraft starting with the G2. Then came the G3, with improvements like a larger wingspan; Atsinger personally owns a G3 (as well as a Hawker 800) purchased in 1999, that “still flies fast and high.” Gulfstream’s line of aircraft continued to evolve, with planes rapidly becoming bigger, faster, and more efficient, as evidenced in more recent models such as the G-V - which can go nonstop to London - and most recently the G650. “These new planes, these 650s, are bigger. They fly faster and longer, and there just haven’t been airport facilities to handle these. That’s the whole point – it’s taken a long time to get there, but now the bigger aircraft are finding there are places to go.”

1/ Atsinger greeting CSQ at the steps of a Sun Air Jet–char tered Bombardier 2/ Sun Air Jets' Camarillo HQ encompasses more than 11 acres

Standard operating process for a lot of [charter] companies was to be exploitive ... I thought, I want to treat other folks the way I want to be treated and be fair.

DES Air (Ed Atsinger)

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The Golden Rule Above the Clouds

Atsinger feels that Sun Air Jets holds a unique place in the market for several reasons. His personal experience, coupled with that of his peers, taught him that many private aircraft owners feel taken advantage of by operators, many of whom lack transparency. “You get these gigantic bills constantly for a new this or that – it was ‘Buyer Beware.’ Standard operating process for a lot of [charter] companies was to be exploitive and there weren’t a lot of options. I thought, I want to treat other folks the way I want to be treated and be fair. I learned everything the hard way.” For example, many private aircraft owners sign contracts to cover their share of charter flights - which inadvertently incentivizes unscrupulous operators to fly faster, take less time, and burn unnecessary fuel. It is unfortunately a common practice to then charge the owner for 10 hours despite making the trip in 9, with a contract in place that still requires the owner to pay for the extra fuel. Sun Air Jets not only protects customers from less reputable operators, but also provides customers with a full range of services, including sound tax planning and strategies. They pride themselves on doing more safety audits than almost CSQ.COM / SPRING 2016 - Q2

any other management company (five bi-annually), on improving efficiency to save money, and on treating customers as they would want to be treated. Salem Media Group benefits from its CEO’s connection to Sun Air Jets, which makes charter aircraft available at a discount to the media company. “Having the charter aircraft available at very attractive rates...has facilitated and advanced [Salem’s] business in ways we couldn’t have even dreamed of,” Atsinger observes. For example, Salem Media Group is co-sponsoring the Presidential debates with CNN and has exclusive radio rights and some of the streaming rights. Atsinger, who personally flies between 100-150 hours annually, is excited about the future of Sun Air Jets and private aviation as a whole. He reminds CSQ that “Right now, you can be [in Camarillo] faster than you can be in Van Nuys, if you live in Malibu. So we’ve watched these airports that are located not necessarily immediately in the middle of the urban areas but adjacent, and we’re very bullish about their future.” The future indeed appears bright - for Atsinger, for his business ventures and for those whose lives are touched by Salem Media Group’s and Sun Air Jets' outreach. 

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Photo: Tony Principe

DESIRABLES LAND

A new trend that has been building momentum in the car collector world over the past few years is the Car Condo. These facilities are dedicated exclusively to car storage and the hobby. Car condos have been springing up all over, from the ultra high-end Park Place near Fort Lauderdale to the private racetrack facilities at The Thermal Club east of Palm Springs, California, the Autobahn Country Club outside Chicago, Monticello Motor Club in upstate New York, and the M1 Concourse in Detroit. These facilities offer a wide range of automobile experiences from exclusive storage space to full-blown racing on their private tracks. These facilities have become the car collector’s ultimate dream. Even with these projects popping up around the country, the Los Angeles area has been relatively ignored from this standpoint due to the scarcity of suitable properties and rising real estate values. Many suitable locations are developed into higher density uses, like multi-story mixed-use projects or creative office developments. The remaining industrial sites are generally too large for the smaller collector to consider. Westlake Village developer T.R. Funding decided to test this market in 2008 by converting a 40,000-squarefoot industrial park in nearby Thousand Oaks into small, saleable units. The development sold out quickly with 26 out of 31 units selling to car collectors throughout the region. These owners each created their own “man caves” that complimented their unique taste and collections. The project was a big success and is thoroughly enjoyed by the owners. “I would have to say that owning a car condo brings a whole new experience to motoring enthusiasts whereas before my cars were simply stored at my home between kids’ sports gear and everything else accumulated over the years,” says Westlake Village resident and car condo owner Chris O’Brien. “By owning

DES Land (Collector Car)

Preferred Parking

Collectible car storage facilities are popping up nationwide where rare automobiles can safely and securely reside BY TONY PRINCIPE

iving in the car capital of the world, it is not uncommon to see an eclectic mix of some of the rarest classic and exotic automobiles in the world at your local coffee shop or restaurant. Not only are these automobiles rare but so are the spaces to store them. Even in the most exclusive Southern California neighborhoods, garage space has become a commodity. Storing these high-dollar toys next to the family SUV and the children’s bicycles is not the ideal scenario.

As these collections grow beyond the extra parking spaces at home, there is a real challenge to find a suitable facility that is both convenient and safe. Many collectors have settled for sharing warehouse spaces in industrial parks mixed with contractors, gyms, and other industrial uses. Unfortunately mixing collector cars and work trucks has not been the best scenario. Others have found shared car storage facilities, but these garages lack the privacy and security of a dedicated space exclusive to your toys and collectibles.

1/ A private auto garage, located in Ventura County 2/ Finish Line Auto Storage, Calabasas 3/ This 1967 Porsche 911 S sold for 3200% higher than its original sticker price

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traditional lease. In addition to providing all of the benefits of ownership, such as depreciation write-off, principal reduction of the loan, potential for appreciation in value and pride of ownership, the buyer can customize the space to their liking without the risk of a landlord jacking up their rent or even worse, kicking them out at the end of the lease term. Financing is readily available from most banks, so the initial capital outlay can be minimal if a buyer elects to go that route.

About half of the buyers at the Thousand Oaks project paid cash for their units and the balance financed their purchases. Car condos give the collector the opportunity to store one appreciating asset in another and enjoy creating a custom environment that compliments the owner’s style and collection. For more information on these car storage facilities, contact Tony Principe at Westcord Commercial Estate Services at 805/497.4557 x236

Scottsdale Motor Trends Collector car auctions enjoyed a banner week last January in Scottsdale, Arizona. Always a highlight are the various Porsche models that continue to appreciate through the years. Beginning in the early 2000s, Porsche – like many other automakers – scaled back production as a way to increase demand and drive up resale appreciation. Photo: Darin Schnabel, Courtest of RM Sotherby’s

a car condo, I now have a separate environment for the culture I love that is dedicated to the love of motoring, perhaps the best second home I could think of with lifestyle built in. In addition you can think of it as a place to house appreciating assets.” Because of the success of the Thousand Oaks project and the continued demand for these specialized collector car storage units, T.R. Funding has made plans to open two Finish Line Auto Storage facilities in Calabasas and Westlake Village and is eyeballing projects in the LA area and other sites further south (finishlineautostorage.com). The Calabasas project is a 33,000-square-foot ground up development and is schedule for a completion date in the summer of 2017. The development will have 23 units ranging from 1,200 sf to 2,000 sf or combinations thereof. The project in Westlake Village is a conversion of an existing 34,000-square-foot facility and has a target completion for the first phase of the third quarter of this year. The second phase will consist of approximately 25,000 sf and will commence in 2017. Both phases will have roughly 40 units once completed. T.R. Funding has an extensive list of interested buyers for both projects and will continue to accept names up to the point of the projects’ opening dates. These new facilities will be exclusively dedicated to car collectors and will provide such amenities as:

DES Land (Collector Car)

Secured gated access Video surveillance cameras Common area restrooms and shower facilities A private clubhouse Designated auto wash and detail areas Dedicated enclosed car trailer for its owners to use The units range in size from 1,200 square feet and up; they have up to 26foot ceilings, abundant power for garage lifts and custom lighting, and complete exclusivity from sharing the space adjacent to the typical heavy industrial uses or the family SUV. The projects will also host special member events such as Cars and Coffee, garage and driving tours, and even viewings of Formula 1 Races or sports events in the exclusive Members Only clubhouse. One of the big attractions of the Car Condo is the ability for the collector to purchase their space instead of the

YEAR

MODEL

ORIGINAL PRICE

AUCTION PRICE

1967

911 S

$6,990

$225,500

RM Auctions

1976

930 Turbo

$34,150

$198,000

Gooding & Company

1989

Speedster

$65,480

$181,500

Barrett Jackson

1997

933 Turbo S

$150,765

$484,000

Gooding & Company

2005

Carrera GT

$440,000

$980,000

Gooding & Company

2015

918 Spyder

$845,000

$1,760,000

CSQ.COM / SPRING 2016 - Q2

AUCTION HOUSE

Barrett Jackson

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DESIRABLES LAND

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HEADS OF CLASS A modern twist on a classic and a pair of newcomers

2017 PORSCHE 911 TURBO S

Debuting at the Northern American International Auto Show in Detroit in January 2016, the 911 Turbo S is available as a coupe and convertible, with both models offering 20 more horsepower than the previous model. MSRP $188,100 ENGINE 3.8 liter twin-turbo six-cylinder TRANSMISSION 7-speed dual-clutch

automatic with manual shifting mode MAX POWER 580 hp at 7,200 rpm 0-60 2.8 secs TOP SPEED 205 mph Rusnak Porsche,Westlake Village

DES Land (New Car) MCLAREN 570GT

The third model in McLaren’s newest Sports Series - intended for day-to-day use and long-distance comfort - the 570FT debuted at the Geneva Motor Show. MSRP $198,950 ENGINE V8 Twin Turbo TRANSMISSION 7 Speed SSG MAX POWER 562 hp at 6,500 rpm 0-60 3.4 secs TOP SPEED 204 mph

McLaren, Beverly Hills

ROLLS ROYCE DAWN

Rolls Royce’s Dawn draws inspiration from 1952’s Silver Dawn - whose name came from Thomas Fuller’s quote,“It is always darkest just before the dawn.” At the time, the world was peering out of the economic austerity of World War II when the Silver Dawn appeared - of which only 28 were produced over a 4-year span from 1950 - 1954. MSRP $320,000 ENGINE 6.6 liter twin-turbo V12 TRANSMISSION Satellite-aided 8-speed ZF MAX POWER 563 hp at 5,250 rpm 0-60 4.9 secs TOP SPEED 155 mph

O’Gara Coach, Beverly Hills & Westlake Village

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CSQ.COM / SPRING 2016 - Q2

Unfortunately, there will still be times when you have to fly

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DESIRABLES WATER

Two if by Sea Wake up on the water at the helm of one of these magnificent vessels

Photos: Guillaume Plisson

BY JACK NEWTON

CRÉME DE LA CRÉME

The newest member of an award-winning line docks in Miami When in college, you could study abroad or you could study at sea. Today, you can live here or there – or everywhere. SILVER FAST, by SILVERYACHTS, is the world’s largest and fastest aluminium motor yacht with conventional propulsion. She is also the fourth and most advanced vessel in an award-winning line of Silver Series vessels. SILVER FAST knows how to make an entrance. Her maiden voyage – 3,200 nautical miles, from Perth, Australia, to Sri Lanka – was completed at an average speed of 17 knots with a fuel consumption of 400 liters an hour. By definition a superyacht, SILVER FAST comes standard with housing for nearly 20 crew. For your guests (be it business or pleasure) she boasts an owner’s apartment, equipped with a lounge, study, and private deck, as well as three VIP guest suites, three twin guest cabins, and a double guest cabin. In addition to the sleeping accommodations, she boasts a jacuzzi, gym, sauna, hot steam room, massage room, and beauty salon. For entertaining, the main deck provides panoramic views and leads aft to a theatre room and winter garden – a glass-screened, air conditioned space that allows for flexible indoor/outdoor dining. The best in luxury and efficiency, SILVER FAST made her debut at Yachts Miami Beach in February and will be exhibited for sale at Watson Island. - 36 -

DES Water

SILVER FAST

LENGTH 252 ft CRUISING SPEED 22 knots MAX SPEED 27 knots STATEROOMS 7 YEAR 2015 BUILDER Hanseatic Marine (Australia) LOCATION Miami, Florida

/ €79,500,000 burgessyachts.com

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SLEEK COMPETITION

The product of more than three decades of Italian craftsmanship Pershing’s “seaborne missiles” have been in production since 1985 and range in length from 50’ to 140’. Easier to digest than her superyacht counterpart on the opposite page, the Pershing 62 is sleek and stylish at first glance. Designed from bow to stern as a slender boat for fast berthing, she has an aggressive profile and sports-oriented personality. With a master cabin at the center of the boat, filled with natural light and a VIP Cabin in the middle with double porthole windows, she looks as good looking in as she does looking out. Crafted in Pershing’s 170,000-plussquare-foot Mondolfo, Italy, workshop, this sleek vessel combines artisan materials and construction methodologies with high performance technology to boast a swift 46-knot top speed. Catering to the personalized desires of its wellheeled clientele, Pershing embodies sleek, futuristic luxury on the high seas. On the occasion of the company’s 30year anniversary in 2015, CEO Alberto Galassi referred to the “Pershing thrill” as the experience of “feeling vibrantly alive,” reminding clients that “a Pershing is not driven; it is piloted. Just like a fighter jet or a racing car.” Indeed, exhilaration knows no boundaries on the open seas.

DES Water

PERSHING 62

LENGTH 62 ft CRUISING SPEED 40 knots MAX SPEED 46 knots STATEROOMS 2 YEAR 2015 BUILDER Pershing (Italy) LOCATION Marina del Rey, California

/ $3,350,000 ferrettigroup.com

HERE TO THERE

PERSHING Newport Beach to Santa Barbara in less than 2 hours at 40 knots SILVER FAST Miami to St. Barts in approximately 48 hours at 22 knots

CSQ.COM / SPRING 2016 - Q2

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DESIRABLES BUYING TIME

NEW FROM THE LAKEFRONT SIHH - the annual convergence of the finest in Swiss watchmaking - revealed its 2016 lineup. Here are our starting six.

DES Buying Time

The Salon International de la Haute Horlogerie, or SIHH for short, took place for the 25th time this past January on the shores of Lake Geneva, with a record number of 24 watch manufacturers showcasing their latest creations. This intimate gathering, much smaller than

Baselworld in March, is the first showcase providing consumers, dealers, and watch collectors with an exclusive preview of the direction the watch world is heading for the next twelve months. These six examples personify the technical and financial health of the industry in 2016.

BY BRYAN MCKRELL

“RM 50-02 ACJ” BY RICHARD MILLE Known for exclusive and distinctive collaborations, the watch manufacturer’s latest with Airbus Corporate Jets does not disappoint. A limited edition of only thir ty pieces is available exclusively at the brand’s boutique stores and offers a visual display that rivals any cockpit. The watch case is secured by 12 Torq Set screws with a distinct slot pattern that are used in jet engine applications to provide maximum security. The detailing displayed on the dial contains an indicator that aler ts the operator if the movement is in the proper position to receive adjustments to the various complications. There is also a distinct indicator that displays the amount of pressure applied to the chronometer’s power barrel, insuring optimal timekeeping. / $1,050,000 Richard Mille, Beverly Hills

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“ROYAL OAK DOUBLE BALANCE WHEEL OPENWORKED” BY AUDEMARS PIGUET One of the most recognizable brands in the world is continuing their focus on technical wizardry matched with subtle design features. The Royal Oak case is an easily recognizable mainstay of the brand but the fully skeletonized movement with red gold accents instantly sets this model apar t. The engineers at Audemars Piguet were able to stack a second balance wheel on the movement, providing significant improvement in the precision of the timekeeping. The brushed stainless steel case with a matte finish provides enough subtlety to balance out the visually impressive openwork movement. This version of the Royal Oak line is sure to stand out just enough in the boardroom. / $44,100 Westime Malibu

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“OVERSEAS ULTRA THIN” BY VACHERON CONSTANTIN The oldest watchmaker in Geneva has presented a new line of ultra-thin movements that continue the company’s push to offer many variations of the same model. Available with three different levels of complications, and thus three different movements, all of the watches contain a 22 carat gold rotor with a sunburst design meant to embody the spirit of overseas travel. The 40 mm cases contain a soft inner iron ring designed to stop magnetic forces from disturbing the accuracy of the movement. Three different band materials are offered along with several color variations on the face. The final step is choosing which configuration suits your personality best. / $55,700 Vacheron Constantin Boutique, Beverly Hills

“TONDO CHRONOR ANNIVERSAIRE” BY PARMIGIANI Known for cutting edge and sometimes flamboyant designs, the watchmaker has presented a more traditional manual winding chronograph to highlight their anniversary. Clasped in a rose gold case with a large date window display, the split second chronograph contains more than 317 parts with a clean white enamel face accented in black and gold. The dark brown alligator strap completes the elegant look of a piece that exudes complicated watchmaking with a classic design. A more modest case size belies the technical savvy of a movement displaying some of the finest hand finishing in the world of luxury timekeeping. / $135,000 David Orgell, Beverly Hills

DES Buying Time

“REVERSO TRIBUTE GYROTOURBILLON” BY JAEGER-LECOULTRE To celebrate the 85th anniversary of the brand’s most iconic design, The Reverso, the engineers at JLC have released a technical masterpiece. This entirely skeletonized, 385-piece movement is highlighted by a rotating tourbillon mechanism that appears to be free floating inside the watch. A second time zone is highlighted on the reverse face of the watch which rotates within the solid platinum case. The modest thickness of the 12.4 mm case reinforces the technical expertise required to design this timepiece. The Reverso is the brand’s most recognizable design and this timepiece is certain to enhance its longstanding reputation. / $270,000 Polacheck’s Jewelers, Calabasas

“HERITAGE CHRONOMETRIE CHRONOGRAPH ANNUAL CALENDAR” BY MONTBLANC A relative newcomer in the world of fine watchmaking, this brand’s latest design emanates from an incredible pedigree. Montblanc purchased the Minerva movement factory, arguably one of the finest in the world, and with that an archive of timepieces with historical significance. This year Montblanc has used this treasure trove to release their first annual calendar with a chronograph function, modeled after a Minerva design from the 1920s. The four sub-dials are symmetrically placed on the face of the watch, which enables a clear display of more than eight individual complications. The stainless steel case, plated in gold, reflects the company’s desire to make the focus of the piece its technical gravitas but not at the expense of its precious beauty. / $18,900 Available July 2016 Feldmar Watch Company, Los Angeles

CSQ.COM / SPRING 2016 - Q2

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LUXURY RESIDENCES

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BEVERLY HILLS

Special Section Cover

PLAYA VISTA

44 UTAH - 40 -

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[BEVERLY HILLS, CALIFORNIA]

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SERVICED RESIDENCE

A Luxurious Homecoming at AKA Beverly Hills AKA Beverly Hills is the first West Coast property from the innovative brand of luxury serviced residences catering to celebrities and affluent international travelers who have come to depend on the visionary brand for a home away from home. Conveniently situated at Crescent Drive and Wilshire Boulevard, AKA provides the luxury of space and anonymity for stays of seven days or more. Designed by LA-based Koning Eizenberg and Asfour Guzy Architects, this exclusive, contemporary residential oasis features 88 stylish and fully furnished one- and two-bedroom suites and townhomes. Architecturally inspired, spacious accommodations offer the privacy of a luxury residence integrated with outstanding hotel-infused amenities, including a sleek lobby with cafe/lounge area serving coffee and tea in the morning; private residents’ cinema; 24-hour front desk assistance and dedicated doormen; TESLA charging stations; AKA bicycles; high-tech fitness center with yoga area and personalized fitness training, and business center and private board room with seating for eight. Residents can unwind on AKA’s serene terrace that features fire pits, lounging areas and spectacular views of the Hollywood Hills. AKA offers exclusive in-suite dining provided by Wolfgang Puck’s legendary Spago, private access to Spago through AKA’s lobby and preferred restaurant seating. AKA Beverly Hills’ LIVE IT! program provides long-stay residents with life-enriching opportunities to enjoy new experiences, learn new skills and develop new talents while residing in Los Angeles. Experiences include surf lessons, horseback-riding through the Hollywood Hills, wine tasting in Malibu, sound healing therapy courses, and Physique 57 barre workouts. AKA is located in other prestigious neighborhoods including New York City’s Central Park, Times Square, Sutton Place, United Nations and Wall Street; Philadelphia’s Rittenhouse Square; the White House district in Washington DC; and London’s West End. stayaka.com

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Located in the heart of Beverly Hills, AKA offers stunning furnished residences with spacious living rooms, full kitchens and hotel amenities, including executive conference room, business center, house car, resident cinema, high-tech fitness center, and tranquil terrace lounge. Private bi-level town homes, penthouse residences and terrace suites steps from Rodeo Drive, with in-suite dining by Wolfgang Puck’s legendary Spago. AKA beverly hills cReScent At WiLSHiRe neW yoRK city WASHington, Dc PHiLADeLPHiA stAyAKA.COM

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CSQ.COM / SPRING 2016 - Q2

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LUXURY RESIDENCES

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[PLAYA VISTA, CALIFORNIA]

S P E C I A L A DV E RTI S I N G S E CTI ON

PRIMARY RESIDENCE

Playa Vista’s New Neighborhoods Appeal to Surge in Tech and Creative Professionals

by Robert Hidey Architects, the homes start from the high $2,000,000s. Innovations in these new neighborhoods include exciting interior specifications, expansive windows, optional creative offices, gourmet kitchens, tech spaces, lofts and private outdoor spaces and decks. The homes’ boomerangshaped floorplan design maximizes interior space and views of the surrounding community and allows for a private two-car garage with an additional guest parking space for each home. In addition to luxury detached residences, two new neighborhoods will introduce stylish single-level attached residences in late spring. Mason features an unconventional mix of modern and traditional that brings a new sense of coastal cool. Thoughtful designs create open spaces that fill with light in these beachy brownstone flats offering up to 2,658 square feet. Anticipated to start from the mid $1,000,000s, the private decks, flex spaces and modern details allow these homes to fit any lifestyle. Cleo’s striking glass and contemporary architecture present sleek coastal flats that are both as inviting as they are impressive. These residences present up to 2,674 square feet and are anticipated to start from the high

Special Brookfield

Playa Vista, the connected urban community on the Westside of Los Angeles, has debuted two of its final new, luxury detached home collections – Everly and Marlowe. Both neighborhoods are built by Brookfield Residential and both join the highly successful 2014 launch of Playa Vista’s newest neighborhoods near The Resort and Runway at Playa Vista.These exciting homes – which energized the Westside real estate market – are among the final new residences ever available at Playa Vista. “Our previous collections of new homes are almost completely sold out,” said Alison Girard, Playa Vista’s director of marketing for Brookfield Residential and developer of the community. “We have responded to market demand with neighborhoods that emphasize smart spaces, style and flexibility. Detached, yet connected to surrounding community amenities, their contemporary, vertical design includes space and privacy within Playa Vista’s vibrant urban environment, with private outdoor space and room options suited to the Westside lifestyle.” Everly is a collection of three-story, luxury detached residences offering up to 2,449 square feet, three to five bedrooms, threeand-one-half to four baths and two-car private garages plus one guest space. Prices start in the $2,000,000s. The homes are designed by Bassenian Lagoni architects. Marlowe is comprised of sophisticated, threestory luxury detached residences offering up to 3,341 square feet. Marlowe offers four to five bedrooms, three-and-one-half baths and two-car private garages plus one guest space. Designed

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“Playa Vista has become the Westside address of choice, both for these companies and for their employees, as well as for entertainment professionals seeking easier commutes and new homes with tech spaces Section and home-office Playa Vista options.”

CSQ.COM / SPRING 2016 - Q2

$1,000,000s. One design offers a three-bay garage – a coveted feature in this urban beachy community. Only a few attached residences remain at Skylar by KB Home. These coastal contemporary flats feature open-concept living with dramatic great rooms, chic exteriors and vaulted ceilings. Experience the height of comfort and class with homes starting from the $2,000,000s. Other new home options include luxury apartments for lease at Runway North & South and Villas at Playa Vista. “The Campus at Playa Vista has attracted titans such as Google, Yahoo, YouTube Space LA and Facebook, along with creative powerhouses 72andSunny and USC Institute of Creative Technologies,” said Girard. “Playa Vista has become the Westside address of choice, both for these companies and for their employees, as well as for entertainment professionals seeking easier commutes and new homes with tech spaces and home-office options.” All new home collections are also walkable to Runway, the Westside’s newest social and retail epicenter, with Whole Foods Market as well as Cinemark Playa Vista and XD theaters, SOL Cocina, Varnish Lab, N’ice Cream, Starbucks, Urban Plates and Hopdoddy Burger Bar, restaurants, and more.

Go Ahead, Have It All New Luxury Home Collections from the Mid $1,000,000s to Over $3,000,000 Sophisticated Apartments Now Leasing

Special Section Brookfield Playa Vista

PLAYA VISTA IS A DESTINATION IN ITS OWN RIGHT. Explore our exceptional residences that seamlessly blend stylish Westside living with an urban beachy appeal. With the booming tech hub featuring Google and Yahoo at The Campus, you’ll find yourself at the center of Silicon Beach. BROKERS WELCOME

PlayaVista.com PLANS, PRICING, SQUARE FOOTAGE, PRODUCTS, AMENITIES AND COMMUNITY/NEIGHBORHOOD INFORMATION ARE SUBJECT TO CHANGE. PHOTOS SHOWN DO NOT REFLECT ACTUAL HOMESITES. © 2016 PLAYA VISTA. ALL RIGHTS RESERVED. CALBRE #00991326.

LUXURY RESIDENCES

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[HEBER CITY, UTAH]

S P E C I A L A DV E RTI S I N G S E CTI ON

SECOND HOME

Tony Burns and Nolan Archibald Developers, Red Ledges, Utah

Red Ledges grew from an inspired vision—a vision that includes dedication and trust based on years of commitment and generations of personal family history. Red Ledges developers Tony Burns and Nolan Archibald are top Fortune 500 businessmen with first-hand knowledge and expertise in developing and running successful businesses. With deep roots in the Heber Valley, these are men with a vested interest in being great stewards of the 2,000 acres that were acquired over a 33-year period with 27 different transactions. Together, these friends and business partners are the heart and soul of Red Ledges.

“Whether building your dream home on your own Special Section custom homesite or Red Ledges choosing between their collection of stylish mountaincontemporary A Grand Haven in the Great Outdoors homes, there are price points to fit every type of family or buyer.” Red Ledges is a private mountain community just minutes from downtown Park City, Utah. Extending over 2,000 acres, it is a natural playground centered around family and lifestyle in an extraordinary setting. Set in the quaint town of Heber City, which was named “Best Value in Second Homes” by The Wall Street Journal and ranked number 5 on the list of “America’s Fastest Growing Small Towns” by Forbes, Red Ledges is a haven for any outdoor lover. The recreation is unsurpassed as families enjoy the multi-award-winning Jack Nicklaus Signature Golf Course, Jim McLean Golf School, top-notch tennis and instruction with the Cliff Drysdale Tennis School, an extensive equestrian program and sprawling acreage for trail rides, hiking and mountain biking, state-of-the-art fitness facilities, pool, gourmet dining at the Juniper Grill, and access to a wealth of pristine places for skiing, fly-fishing, snow-shoeing, snowmobiling, dog-sledding, cross-country-skiing, and more. Red Ledges offers a perfect blend of luxury and comfort with a collection of carefully designed neighborhoods and a wide range of luxury home ownership options. All of its 1,200 homesites have dramatic sweeping views of the fiery red rock landscape, the Jack Nicklaus Signature Golf Course, or the stunning Mt. Timpanogos, which towers in the distance. Whether building your dream home on your own custom homesite or choosing between their collection of stylish mountain-contemporary homes, there are price points to fit every type of family or buyer. Homesites start at $195,000 and luxury homes range from $650,000 to over $2M. Experience this breathtaking community with an exclusive package offered by Red Ledges. Appropriately named the “Discovery Package,” it includes two nights and three days in a luxurious club cabin. The package also includes golf on the Jack Nicklaus Signature Golf Course, dinner for two at Juniper Grill, and member privileges to multiple club amenities. Rate is $695. For more information, visit redledges.com or call 877/733.5334.

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CSQ.COM / SPRING 2016 - Q2

Stay Here, Play Here and discover why Red Ledges is the best Club selection youâ&#x20AC;&#x2122;ll ever make!

Special Section Red Ledges

Red Ledges is a private mountain community just minutes from downtown Park City, Utah. Centered around family & lifestyle in an extraordinary setting, owners at Red Ledges enjoy:

(877) 733-5334 | Heber Valley, Utah | RedLedges.com Exclusively Brokered by Red Ledges Realty, LLC . Obtain the Property Report required by federal law and read it before signing anything. No federal agency has judged the merits or value, if any, of this property. All descriptions, depictions, and renderings are provided solely for illustrative purposes and are subject to change. ÂŠ2016 Red Ledges Land Development, Inc.

CONGRATULATIONS TO OUR 2016 CHAMPION, BUBBA WATSON

NTO

OFFICIAL CHARIT Y

Real Estate & Finance OPINION 50 SUSTAINABLE INVESTING: THE BENEFITS OF GOING GREEN by Andrei Cherny

51 CROWDFUNDING: REAL ESTATE IS GOING MAINSTREAM

Real Estate & Finance TOC

by Jilliene Helman

LIST

52 BREAKING GROUND PICTORIAL

56 INNOVATIVE OFFICE PROFILES 62 KEITH WASSERMAN & DAMIAN LANGERE Gelt & Damuso

63 MARK WEINSTEIN MJW Investments

64 SHIVANI SIROYA InVenture

66 NADINE WATT Watt Companies

68 JOHN KILROY Kilroy Realty Corp. 71 DEBORAH FLINT Los Angeles World Airports A partial view of Los Angeles’ 503 square miles (which, depending on the precision of your measurements, translates to 321,920 acres or 14,022,835,200 square feet) from the Watt Towers (p. 64) in Century City. Photo: Dennis Roy Coronel

72 SCOTT MINERD Guggenheim Partners

REAL ESTATE & FINANCE OF NOTE

BRIEFINGS, UPDATES, AND ANALYSIS

The Shape of Things to Come As technology continues to innovate our environment, including how we transact, real estate enters the mix

A Collaborative Development

Caruso Affiliated, CBRE, and Gensler breathe collective life into the once-dormant Masonic Temple in Glendale Rick Caruso, founder & CEO of Caruso Affiliated (CSQ Cover Visionary in spring 2014), and Lewis C. Horne, President of CBRE for LA and Orange County (CSQ Visionary in spring 2015), have built on a brotherly bond formed while friends in college. In a win-win deal, Caruso Affiliated and CBRE have partnered in reviving the previously abandoned Masonic Temple on Brand Boulevard in Glendale. Built in 1929 and designed by architect Arthur G. Lindley, the temple was used for decades by the Masons.Today, six floors of the nine-story building – purchased by Caruso Affiliated in spring 2015 – are home to CBRE.Those floors had been unoccupied since 1957. The partnership signifies - among other things - the local strength of Caruso Affiliated and CBRE along with LA-based architecture behemoth Gensler who executed the redesign. For Caruso Affiliated, it was their first foray into office space and for CBRE it was an expansion from their Downtown LA regional headquarters. Additionally, it is another step in the reimaging of the workplace. The four floors CBRE occupies accommodate 125 employees and when their additional two floors are finished, the staff size will double. As Horne said, the office is set up so that any employee can access their work from any desk – what he terms “free address.” As another sign of the adaptive reuse movement, the only mystery that remains is what Caruso Affiliated plans to do with the remaining three floors.

Real Estate & Finance Of Note

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Crowdfunding From the Heart

Thousand Oaks-based RKS create LoanGiftingTM - a platform to combat the $1.7 trillion in U.S. student debt From investing in tech-based startups to a diversified real estate portfolio, pooling money for the greater good is the way of the future across industries. Student loans are no exception. In 2014, the crowdfunding site GoFundMe had 140,000 education-related accounts which raised $17.5M, a 280% increase from 2013. In the first seven months of 2015, the site raised more than $20M for education funds. Those numbers pale in comparison to the 70% of bachelor degree recipients who have student loans. In total, there is $1.2 trillion in outstanding student loan debt in the U.S. Taking its lead from crowdfunding, LoanGiftingTM has a solution. Conceived in 2013 as an in-house exploration by Thousand Oaks-based RKS, a design and innovation firm, LoanGifting was imagined as a resource to aid current students, and college graduates - young and old - with the burden of student debt. By 2014 RKS CEO Ravi Sawhney and wife Amalia, RKS’ CFO, partnered with Yakin Patel to bring LoanGifting to life and in October 2015 LoanGifting.com officially launched. LoanGifting works by connecting borrowers (current or former students) directly with their student loan accounts allowing grandparents (or anyone) to ensure their money is going directly to the principal of the student loans and not a beer fund. Eliminating the middleman, LoanGifting takes the stress of connecting with the servicer, a process Sawhney considers “incredibly daunting.” The LoanGifting platform deducts a 3% fee from every gift and a 2.9% fee is deducted by PayPal or other payment methods donors use. While 3% may raise eyebrows on initial glance, that is a lower fee than the 5% GoFundMe charges (on top of the 2.9% PayPal will also charge). / loangifting.com

CSQ.COM / SPRING 2016 - Q2

C-SUITE QUARTERLY

Leave Your Wallet at Home

THREE OF A KIND

Apple and Samsung up the ante and continue to push their digital wallet into the hands of consumers

From ceiling-shattering price tags for sales or renovations, Los Angeles real estate is in fluctuation and flux.

When Apple Pay launched in the Fall of 2014 with the release of Apple’s iPhone 6 line, excitement – and skepticism – were palpable. The growth of the platform was evident from the get go and today, more than 18 months into the birth of a new transactional platform, Apple and Samsung have paper and plastic transactions trending downward, while the power of one’s pocket is at an all-time high. Likely inspired by the success of mobile transacting, luxury brands are throwing their hat in the ring. At the Mobile World Congress in Barcelona in February, Mastercard and WISEKey announced a partnership with a selection of luxury timepiece brands - including Hublot and Bulgari - that will allow consumers to shop securely and protect their payments through their timepieces.

$285M

Tutor Perini was awarded a contract to expand Pechanga Casino and Resort in Temecula by more than 500 rooms.

$475M

A sign of the times, Runway Playa Vista, a mixed-use project that was fully finished in October of 2015 - sold to a Dallas investment firm. Runway “only” cost about $300M to develop.

A Brief History of Contactless Payment Tracing the rapid growth of the digital wallet OCTOBER 2014 Platform is announced NOVEMBER 2014 Apple Pay accounts for

$500M

1% of digital payment dollars, Google Wallet

accounts for 4% JANUARY 2015 Apple CEO Tim Cook announces that Apple Pay accounts for 2 out of 3 dollars of contactless payment MARCH 2015 Apple has 700,000 vendors signed up for Apple Pay OCTOBER 2015 16.6% of iPhone users have used Apple Pay - compared to 7% in November 2014 FEBRUARY 2016 Samsung announces it has 5 million registered Samsung Pay users and has transacted more than $500M FEBRUARY 2016 Apple and Samsung enter the China market where 358 million people - more than the population in the US - already purchase goods and services via mobile phone

Real Estate & Finance Of Note

High atop the hills of Bel Air, the most expensive mansion in history is being built. Overseen by Nile Niami the home will be more than 100,000 sq. ft, twice the size of the White House. When finished in 2017 it will be equipped with five swimming pools, a casino, nightclub, and a lounge with jellyfish tanks in lieu of walls and ceilings.

AN ECONOMIC UPDATE

Benchmarks of progress in residential and commercial real estate

10000

SINGLE-FAMILY HOME GROWTH

The number of singlefamily home permits issued in LA County Source: U.S. Department of Commerce

500

FOR SALE?

8000

Median year-end home price in LA County (in thousands) Source: California Association of Realtors

6000 4000 2000 2010

BROKERING DEALS

The value of deals brokered by LA County’s 25 largest commercial real estate firms (in billions) Source: Los Angeles Business Journal

2011

2012

2013

50 40 30 20 10 2012

200 100 2010

RECESSION IN THE REARVIEW

2011

300

2014

2010

400

2013

2014

Post-recession growth in construction by LA’s biggest developers (in millions of sq. ft.) Source: Los Angeles Business Journal

CSQ.COM / SPRING 2016 - Q2

2011

2012

2013

2014

8 6 4 2 2010

2011

2012

2013

2014

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R EA L ESTATE & FINANCE OP- E D

C-SUITE QUARTERLY

SUSTAINABLE INVESTING

THE REWARDS OF GOING GREEN

Real Estate & Finance Opinion (Cherny)

High Road companies are profiting by doing the right thing

BY ANDREI CHERNY

CEO, Aspiration

ustainable investing is booming. Between 2010 and 2014 alone, total funds in socially conscious investing strategies nearly doubled from $3.7 trillion to $6.5 trillion – and they have continued to grow ever since. Is this just a feel-good fad or are there reasons to believe that sustainable investing is here to stay? The signs point to sustainable investing as a durable and growing core strategy for investing – it fits the times and it has been proven to work. Today’s consumers – especially younger Millennials in their 20s and 30s – see the link between their money and their morals. They think about the larger impact of their purchasing decisions when they buy clothes, coffee, or cars. It should be no surprise that they are seeking ways to bring that approach to investing. Yet, for a long time, the conventional wisdom held that pursuing profits meant ignoring responsibility, and that when companies considered their people and the planet they lost focus on the bottom line. The evidence shows that is wrong. - 50 -

As is true for us as individuals, businesses face the daily choice of taking the high road or the low road. High Road Businesses are ones that care about the environment, their employees, and their reputation — and who put policies in place to reflect this. They are more likely to be innovative, attractive to top talent, and conscious of risks than Low Road Businesses who do not share these policies. Recently, a team of Harvard Business School professors looked at the performance of 180 companies over the course of 16 years. Of these, 90 were High Road companies that had actively adopted significant and relevant environmental, social, and governance policies. There were also 90 similar firms in the same sectors that had statistically identical size, capital structure, operating performance, and growth opportunities. These Low Road companies were much less likely to have embraced such approaches. For example, the High Road companies were about twice as likely to link

executive pay to environmental performance, three times as likely to keep track of the number of fatalities in the workplace, and nearly two and a half times more likely to give the Board of Directors specific responsibility around sustainability. Their study found that $10,000 invested in a High Road company would, sixteen years later, be worth $283,600, but that same $10,000 invested in a similar Low Road company would only have grown to $146,000. And an investment in High Road companies would have had less volatile ups and downs along the way. The challenge now is to democratize access to these sustainable investing strategies. Up to now, they have largely only been accessible to the very wealthiest investors. Today, 89% of sustainable investments are in the hands of institutional investors, money managers, and other investment institutions. Everyday investors have been on the outside looking in. At Aspiration, we are changing this. In strategic partnership with UBS Asset Management, we have made best-inclass sustainable investing available at a $500 minimum investment. And we seek to not only offer a sustainable product, but live by those values as a company. We’re a certified B Corp that works with a Pay What Is Fair business model where we trust the customer to choose our fee. And we donate 10% of our revenue to charities helping low income Americans transform their lives. Whether through Aspiration or other more traditional financial firms such as Morgan Stanley and Goldman Sachs, sustainable investing strategies are showing they have a customer base and a growing track record that indicates they are here to stay.

Between 2010 and 2014 alone, total funds in socially conscious investing strategies nearly doubled from $3.7 trillion to $6.5 trillion.

CSQ.COM / SPRING 2016 - Q2

R EA L ESTATE & FINANCE OP- E D

C-SUITE QUARTERLY

CROWDFUNDING

REAL ESTATE IS GOING MAINSTREAM You, too, can own a hotel in California, an apartment building in Texas, or a shopping center in Washington, D.C.

First and foremost, real estate crowdfunding gives investors the opportunity to invest in transactions they previously had no access to. Not only that, the minimum required investment amount can be as low as $5,000. Live in California and want to invest $5k in a building in Florida? You can do that online. Historically, finding these deals and investing in them required connections and a lot of effort and time – it was basically a full-time job. With crowdfunding platforms, you no longer have to be a part of the local country club to gain access to high-quality deals, and your money works for you around the clock without the stress of hands-on management.

Real Estate & Finance Opinion (Helman)

BY JILLIENE HELMAN

Founder and CEO, RealtyMogul.com

Access

[Y]ou no longer have to be a part of the local country club to gain access to highquality deals, and your money works for you around the clock without the stress of hands-on management.

nline crowdfunding has been around for a while. Using websites like Kickstarter, Indiegogo, and Tilt, individuals have been raising and investing money in products, businesses, and ideas for a few years now. It’s quite a simple concept – the crowd (people like you and me) pools money to fund ideas it likes, allowing the people who come up with these ideas to have quicker, more efficient access to capital. It’s all about connecting the right people to the right ideas, creating a winwin situation. And the numbers don’t lie: global crowdfunding more than doubled in 2014 and then again in 2015, going from $6B to more than $34B over that period.1 $34B is an impressive number to crowdfund, but imagine how the magnitude of this number changes when you bring crowdfunding into the largest asset class in the U.S., real estate, valued at almost $40 trillion dollars according to a 2014 Federal Reserve report (that’s about 1.5 times larger than the next largest class, the U.S. stock market – all of it!).2 If you are an investor that believes in real estate and asset diversification, you should consider allocating a piece of your portfolio to real estate crowdfunded investments. Here’s why.

Ease of Use

Access is not always enough. You have to make the process easy and user-friendly. Crowdfunding platforms simplify investing and potentially offer investors a smooth and frictionless investment process. The online functionality appeals to all investor skill levels, from first-timers to veteran investors. In just a few clicks, investors can potentially access various real estate transactions across multiple property types and locations. The best platforms have clear and transparent investor dashboards to keep a real-time pulse on investments. They vet investments, perform due diligence inhouse, and provide their investors with tools to make investment decisions that are right for them. Traditionally, pulling together portfolio-wide insights required hours of manual data aggregation and a team of analysts. On crowdfunding platforms, the ability to harvest data is potentially easier and quicker than before. Due to the availability of data, investors are able to track and analyze information, uncover trends, and make more informed decisions. CSQ.COM / SPRING 2016 - Q2

Opportunities for Every Risk Appetite

Real estate crowdfunding isn’t just for niche risk seekers. Institutional investors and individual investors alike see the value in these platforms and the streamlined access to investment opportunities. This is potentially driving mainstream adoption. Investors have the opportunity to choose the level of risk they would like to take since crowdfunding platforms offer both debt and equity products. The power of the platform is exactly that ability to act as a one-stop-shop3 where investors can (again) choose what’s right for them. Additionally, real estate potentially offers a hedge against inflation, as properties with tenant occupancy generate cash flow that rises with inflation and can potentially cushion against market crashes. Like any investment, however, real estate carries its fair share of risk. Returns of any sort aren’t guaranteed. And there’s no assurance your principal will be preserved. One thing is sure: real estate crowdfunding platforms are going to get crowded as a more diverse group of investors get involved. Easy access on the internet, minimal time commitment, and lower investment amounts are all potentially driving younger generations to join their parents and step up to the real estate plate. It’s happening. Real estate crowdfunding is going mainstream. Will you be part of it?  1 Massolution Crowdfunding Industry Report 2 Federal Reserve 3 dealindex.co - 51 -

R EA L ESTATE & FINANCE BR E A KI NG G RO UND

BREAKING GROUND

LEGEND Scope

As domestic and foreign investment in Los Angeles hits an all-time high, the skyline is in perpetual motion. Projects of interest and intrigue are popping up from Santa Barbara to the South Bay, with notable imprints Downtown and in Hollywood. Los Angeles is gearing up for the future and hopefully the Summer of 2024.

Usage Art & Culture

Hotel

Addition

Civic

Mixed Use

New Development

Office

Residential

Renovation

Medical

Retail

Real Estate & Finance Breaking Ground Ford Factory

Row DTLA

ARTS DISTRICT

Ford Factory SCHEDULED COMPLETION Late 2016 COST $37M SIZE 300,000 sq. ft. ARCHITECT Rockefeller Partners Architects DEVELOPER Shorenstein Company DID YOU KNOW The factory, originally built in 1912,

went through phases of renovations up until 1996. shorenstein.com

Row DTLA SCHEDULED COMPLETION Late 2016 COST Undisclosed SIZE 2 million sq. ft. ARCHITECT Rios Clementi Hale DEVELOPERS Atlas Capital Group // Runyon Group DID YOU KNOW The adaptive reuse project is

redeveloping six buildings that are nearly a century old. runyongroup.com

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333 La Cienega

Four Seasons Private Residences Los Angeles

SoHo Warehouse

Four Seasons Private Residences Los Angeles

SCHEDULED COMPLETION 2017 COST Undisclosed SIZE Six stories, 30,000 sq. ft., 16 hotel rooms ARCHITECT Undisclosed DEVELOPER Undisclosed DID YOU KNOW The SoHo expansion comes on the

SCHEDULED COMPLETION Late 2017 COST Undisclosed SIZE 1.3 acres, 59 luxury condominiums ARCHITECT RTKL DEVELOPER Genton Property Group DID YOU KNOW The condos are expected to be

BEVERLY GROVE

BEVERLY HILLS

333 La Cienega

Beverly Center

SCHEDULED COMPLETION Late 2019 COST $155M SIZE 19 stories, 154 residential units ARCHITECT MVE & Partners // Hetzel Design DEVELOPER Caruso Affiliated DID YOU KNOW The site that 333 La Cienega

SCHEDULED COMPLETION 2018 COST $500M SIZE 886,000 sq. ft. ARCHITECT Massimiliano Fuksas DEVELOPER Taubman Properties DID YOU KNOW As part of its revamp, will

heels of an aggressive global expansion financed by a $383M investment from billionaire owner Ron Burkle. sohohouse.com

sits on was the first land ever developed by Caruso Affiliated more than 25 years ago. carusoaffiliated.com

CSQ.COM / SPRING 2015 - Q2

the most expensive in Southern California, with a penthouse suite priced at $50M. gentonproperty.com

introduce nine new restaurants and a food hall to be helmed by celebrity chef Michael Mina. taubman.com

C-SUITE QUARTERLY

Waldorf Astoria Beverly Hills SCHEDULED COMPLETION 2017 COST Undisclosed SIZE 170 guestrooms, 5,000 sq. ft. spa, 6,300 sq. ft.

meeting space

ARCHITECT Gensler // Perkins+Will // PYR DEVELOPER Waldorf Astoria Hotels & Resorts DID YOU KNOW The Waldorf Astoria on Fifth

Avenue in New York City opened its doors in 1983. waldorfastoriabeverlyhills.com

SIZE 5.2 acres, 150 hotel rooms, 200 apartments,

75,000 sq. ft. of retail space, 200,000 sq. ft. of office space ARCHITECT Cuningham Group DEVELOPER Lowe Enterprises DID YOU KNOW A rail station since the 1800s, the site was originally named Ivy Park Substation on the steam-powered Los Angeles and Independence Railroad. ivystationculvercity.com DOWNTOWN LOS ANGELES

J.W. Marriott L.A. Live

CENTURY CITY

Westfield Century City SCHEDULED COMPLETION 2017 COST $800M+ SIZE 8 acres of outdoor space, 70 restaurants and

shops, 4,700 parking spaces, 1.2 million total sq. ft.

ARCHITECT Rios Clementi Hale

SCHEDULED COMPLETION 2018 COST $500M SIZE 36 stories, 755 guest rooms, 17,800 sq. ft. retail

space, 170,000 sq. ft. conference space

ARCHITECT Gensler DEVELOPER AEG

DEVELOPER Oceanwide Real Estate Group DID YOU KNOW A 32,000-sq.-ft. LED ribbon – the

largest on the West Coast – will wrap the building’s podium along Figueroa between 11th and 12th Streets. chinaoceanwide.com

Ten50 SCHEDULED COMPLETION Summer 2016 COST $100M SIZE 24 stories, 151 units ARCHITECT HansonLA DEVELOPER Trumark Urban DID YOU KNOW No nook of Downtown LA was bit

by the real estate bug harder than South Park, where ten50 is one of several dozen projects proposed or in development. ten50.la

United States Courthouse

Real Estate & Finance Breaking Ground Westfield Century City

J.W. Marriott L.A. Live

DEVELOPER Westfield DID YOU KNOW When complete, Westfield will

have spent more than $1B in renovations since acquiring the property in 2002. westfield.com

Oceanwide Plaza DID YOU KNOW When complete, the J.W. Marriott

complex will be the second-largest hotel in California with 1,756 total rooms. lalive.com

Metropolis Los Angeles CHINATOWN

Blossom Plaza SCHEDULED COMPLETION Spring 2016 COST $100M SIZE 2 acres, 19,000 sq. ft. retail, 237 apartments ARCHITECT Johnson Fain DEVELOPER Forest City Enterprises DID YOU KNOW Blossom Plaza serves as the main

pathway from Chinatown’s Historic District and the MTA Gold Line Station. forestcity.net

SCHEDULED COMPLETION 2018 COST $1B+ SIZE Four towers ranging from 18 to 56 stories; 2

million total sq. ft.

ARCHITECT Gensler // HED Architects DEVELOPER Greenland USA DID YOU KNOW Since its establishment in 1992, The

Greenland Holding Group has grown to become the leading real estate enterprise in China and a Fortune Global 500 Company. metropolislosangeles.com

Oceanwide Plaza

CULVER CITY

Ivy Station SCHEDULED COMPLETION 2018 COST Undisclosed

Ten50

SCHEDULED COMPLETION 2018 COST $1B SIZE 4.6 acres, 150,000 sq. ft. of commercial space,

37,000 sq. ft. open-air deck, 183 hotel rooms, 504 condominiums ARCHITECT RTKL Associates

CSQ.COM / SPRING 2015 - Q2

SCHEDULED COMPLETION July 2016 COST Undisclosed SIZE 633,000 sq. ft. ARCHITECT SOM DEVELOPER U.S. General Services Administration

(GSA)

DID YOU KNOW The project is one of the

nation’s safest buildings with regard to bomb threats and earthquakes due to an innovative structural engineering concept that allows a large volume of building to “float” over a stone base protected with hardened-concrete sheer walls. som.com

The Village at USC SCHEDULED COMPLETION 2017 COST $650M SIZE 30 acres ARCHITECT HED DEVELOPER USC DID YOU KNOW When completed, the site will

provide 3 million sq. ft. of new student housing, amenities, retail, and academic spaces. harleyellisdevereaux.com

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R EA L ESTATE & FINANCE BR E A KI NG G RO UND

W Los Angeles Downtown SCHEDULED COMPLETION Early 2019 COST Undisclosed SIZE 32 stories, 250 rooms, 15,000 sq. ft. of event

space

ARCHITECT Gensler DEVELOPER Shenzhen Hazens Real Estate Group DID YOU KNOW The W Los Angeles Downtown is

the first phase of a proposed larger complex, which will include 650 condominiums and 80,000 sq. ft. of retail space. starwoodhotels.com

Wilshire Grand SCHEDULED COMPLETION 2018 COST $1.1B SIZE 73 stories, 900 four-star hotel rooms, 400,000 sq.

ft. office space

ARCHITECT Gensler DEVELOPER Hudson Pacific Properties DID YOU KNOW The building will rise 260 feet

above grade along Sunset Boulevard; a series of terrace levels would gradually taper the building’s height moving north, allowing for landscaped courtyards on multiple floors. hudsonpacificproperties.com

ICON at Sunset Bronson Studios SCHEDULED COMPLETION Late 2016 COST $150M SIZE 14 stories, 323,000 sq. ft. office space, 90,000-sq.-

ft. production building

Academy Square

ARCHITECT Gensler DEVELOPER Hudson Pacific Properties DID YOU KNOW In August 2015 Netflix signed a

SCHEDULED COMPLETION Early 2018 COST $300M SIZE 3.5 acres, 280,000 sq. ft. of retail and office space,

INGLEWOOD

23-story tower ARCHITECT Joey Shimoda DEVELOPER Kilroy Realty DID YOU KNOW The project’s name is a nod to a plan by the Academy of Motion Picture Arts and Sciences (AMPAS) to build a museum on the property. kilroyrealty.com

ARCHITECT AC Martin

lease at ICON and will be occupying a little more than 200,000 sq. ft. of the building. hudsonpacificproperties.com

Los Angeles Rams NFL Complex SCHEDULED COMPLETION 2019 COST $2.66B SIZE 298 acres, 70,240 seating capacity ARCHITECT HKS Architects

Real Estate & Finance Breaking Ground W Los Angeles Downtown

Academy Square

DEVELOPER Korean Air DID YOU KNOW The largest concrete pour in

history happened onsite in 2015 when workers poured 21,200 cubic yards of cement in 18 hours. wilshiregrandcenter.com HOLLYWOOD

5550 Hollywood Boulevard SCHEDULED COMPLETION 2017 COST $100M SIZE 280 apartments, 12,600 sq. ft. retail space ARCHITECT PSL Architects DEVELOPER Wood Partners DID YOU KNOW The development will also

incorporate the facade of Falcon Studios, a two-story brick structure from the 1920s which served as a rehearsal studio during Hollywood’s golden age. woodpartners.com

5901 Sunset Boulevard SCHEDULED COMPLETION 2017 COST Undisclosed SIZE 1.5 acres, 18 stories, 274,000 sq. ft. of office

Columbia Square

Argyle Hotel SCHEDULED COMPLETION 2018 COST Undisclosed SIZE 16-story tower, 220 guest rooms ARCHITECT ACRM Architects DEVELOPER Kimpton Hotels DID YOU KNOW The Argyle will be Kimpton’s third

in the LA area, following Hotel Wilshire and Hotel Palomar. kimptonhotels.com

DEVELOPER Stan Kroenke // Stockbridge Capital DID YOU KNOW The stadium is one component of

a much larger mixed-use complex that will allow for up to 2,500 residential units, 890,000 sq. ft. of retail space, 780,000 sq. ft. of office space, and a 300-room hotel. Speculation is that Kroenke’s proposed mixeduse complex will serve as a West Coast home for the NFL – hosting the NFL Network, NFL Hall of Fame, NFL Combine, and more. nfl.com PACIFIC PALISADES

Columbia Square

Palisades Village

SCHEDULED COMPLETION Spring 2016 COST $400M SIZE 500,000 sq. ft. of retail and office space, 200

SCHEDULED COMPLETION Late 2017 COST Undisclosed SIZE 2.8 acres ARCHITECTS Marc Appleton // Elkus Manfredi DEVELOPER Caruso Affiliated DID YOU KNOW Caruso Affiliated will be adding a

apartments

ARCHITECT Rios Clementi Hale DEVELOPER Kilroy Realty DID YOU KNOW In its heyday, Columbia Square

is where stars like Jack Benny and Orson Welles recorded their best-known works. columbiasquare.com

space, 26,000 sq. ft. of retail

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Palisades Village

CSQ.COM / SPRING 2015 - Q2

five-screen movie theater to simulate the iconic Bay Theater, originally designed by S. Charles Lee. carusoaffiliated.com

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PLAYA VISTA

SANTA MONICA

WESTWOOD

The Brickyard

Marriott & Hampton Inn Suites

UCLA Teaching and Learning Center for Health Studies

SCHEDULED COMPLETION 2017 COST Undisclosed SIZE 425,300 sq. ft. ARCHITECT Michael Maltzan // Gensler DEVELOPER Tishman Speyer DID YOU KNOW Playa Vista’s emergence as a hub

SCHEDULED COMPLETION Spring 2016 COST Undisclosed SIZE 279 hotel rooms, 5,000 sq. ft. of restaurant and

for tech companies of all shapes and sizes was made evident when Google purchased 13 acres in 2015. tishmanspeyer.com

commercial space

ARCHITECT Gwynne Pugh Urban Studio DEVELOPER OTO Development DID YOU KNOW Both hotels are slated to open in

SAN PEDRO

conjunction with the completion of the Metro Expo Line, which ends at the intersection where both hotels are located. otodevelopment.com

San Pedro Public Market

WEST HOLLYWOOD

SCHEDULED COMPLETION 2020 COST $100M SIZE 30 acres

SCHEDULED COMPLETION Late 2016 COST $120M SIZE 110,000 sq. ft. ARCHITECT SOM DEVELOPER UCLA

DID YOU KNOW The David Geffen School of Medicine has more than 2,000 full-time faculty, 1,300 residents, more than 750 medical students, and almost 400 Ph.D. candidates. ucla.edu

Sunset La Cienega SCHEDULED COMPLETION Late 2016

Real Estate & Finance Breaking Ground The Brickyard

San Pedro Public Market

ARCHITECTS Tim J. Delaney Design // TFO

Architecture

DEVELOPER Ratkovich Company // Jerrico

Westlake Village YMCA COST $300M+ SIZE 4.54 acres, two city blocks, 157,000 sq. ft. of retail

component of the revitalization of the LA Waterfront, in which the Port has invested $600M since 2004 and plans to invest an additional $400M by 2026. ratkovich.net

and office space, multiple hotels ARCHITECT SOM // Lorcan O’Herlihy Architects DEVELOPER CIM Group DID YOU KNOW When complete, the property will be home to the first West Coast location of the luxury boutique James Hotel chain. sunsetlacienega.com

SANTA BARBARA

WESTLAKE VILLAGE

Rosewood Miramar Beach Montecito

Westlake Village YMCA

Development

DID YOU KNOW The Public Market is a key

SCHEDULED COMPLETION 2018 COST $185M SIZE 15.7 acres ARCHITECT Marc Appleton DEVELOPER Caruso Affiliated DID YOU KNOW The property will boast an

oceanside bar and restaurant, a signature restaurant, two swimming pools, state-of-the-art fitness center, members-only beach club, indoor / outdoor event spaces, and more. carusoaffiliated.com

SCHEDULED COMPLETION 2017 COST Undisclosed SIZE 60,000 sq. ft. ARCHITECT Wimberly Allison Tong and Goo DEVELOPER Matt Construction DID YOU KNOW A large part of the project’s

funding was provided by David Murdock. sevymca.org

UCLA Teaching and Learning Center for Health St.

BREAKING GROUND BY THE NUMBERS Total Projects

New Developments Renovations Additions

Mixed Use Hotel Office Arts & Culture Residential Retail Medical Civic

5 4

2 1 1 DTLA 8

Hollywood DTLA Arts District

CSQ.COM / SPRING 2015 - Q2

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R EA L ESTATE & FINANCE INNOVATI V E O F F I CE

NOW THIS IS WORKING Across industries, the business environment is evolving to accommodate the Millennial mindset. From the transition toward transparency as evidenced in the prevalence of glass-encased conference rooms to the phasing out of isolation-inducing cubicles in favor of communal workspace, progressive companies of all stripes

are waking up to the fact that the way to keep employees engaged and motivated is to enhance comforts and offer flexibility in the name of increased productivity and creativity. Following are six companies and two shared workspace concepts in the region that are advancing this new ideology.

Real Estate & Finance Innovative Office

SONOS INDUSTRY Wireless Consumer

Electronics LOCATION Santa Barbara COMPLETED April 2015 DURATION 6 months ARCHITECT Shubin + Donaldson SQ. FT. 28,000 FEATURES An “all hands” area sound

wall features Sonos’ products and has integrated color LED lighting that can be synchronized with music. CORPORATE CULTURE Sonos provides employee incentives to bike to work and has a fleet of bikes at all of their office locations for employees to use to get from one office to another.

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Tim Cadogan, CEO, OpenX

“The most important part of the design process for our headquarters was creating a space that reflected the energetic, unified, and creative culture that defines OpenX.The office design replicates the fast-paced yet laid-back atmosphere rooted in our foundation as a tech startup.”

OPEN X INDUSTRY Digital Advertising LOCATION Pasadena COMPLETED November 2012 DURATION 4 months ARCHITECT Wolcott Architects &

Interiors SQ. FT. 50,000 LEED CERTIFICATION Gold FEATURES Walls made of recycled

Real Estate & Finance Innovative Office

Photos: Joshua Targownik

skateboards and faux climbing ropes, collaborative meeting spaces from rock formations, an outdoor patio that converts into a basketball court.

Billy Rose CEO,The Agency

THE AGENCY INDUSTRY Real Estate LOCATION Beverly Hills COMPLETED Fall 2013 DURATION Approx. 1 year ARCHITECT Belzberg Architects SQ. FT. 8,600 FEATURES A-frame seating pods

“We designed the space to ... foster and nurture our culture.We kept things open by using glass walls to enable visual communication, and by creating ‘Central Park,’ which serves not only as a meeting spot, but also as a place for the accidental collision of ideas.”

fabricated from CNC-milled mediumdensity fibreboard lacquered white on the outside and lined with felt in The Agency’s corporate crimson.

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Photos: Ar t Gray

R EA L ESTATE & FINANCE INNOVATI V E O F F I CE

FRAMESTORE LABS INDUSTRY Video Production LOCATION Culver City COMPLETED May 2013 DURATION ~ 2 years ARCHITECT David Howell and RAC

Design Build SQ. FT. 12,000 FEATURES A converted aircraft facility / warehouse with a tower addition, tower access via stairs in blackened steel, walnut, and steel mesh

Real Estate & Finance Innovative Office

WHAT MAKES A WORKSPACE INNOVATIVE?

 Active lifestyle concepts (elevators stopping at every other floor)  Fully stocked kitchen  Health awareness (yoga, massage studio)  High ceilings  Mobile work areas (no hardwiring)  Natural lighting  Open floorplan  Recreation activities (ping pong tables, billiards, etc.)  Sit / stand workspace  Shower and resting areas  Stadium seating

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Photos: Eric Laignel

AVERY DENNISON INDUSTRY Consumer Goods

Packaging LOCATION Burbank COMPLETED March 2014 DURATION 18 months ARCHITECT HOK SQ. FT. 4,000

LEED CERTIFICATION Gold FEATURES Stadium seating, glass koi pond, interactive workspace

Real Estate & Finance Innovative Office STEELCASE WORKLIFE CENTER LOS ANGELES

INDUSTRY Workplace Furnishings LOCATION Downtown COMPLETED January 2015 SQ. FT. 11,000 LEED CERTIFICATION Gold DURATION 9 months

ARCHITECT Shimoda Design Group FEATURES Offering a 360-degree

Photos: Fotoworks/Benny Chan

panoramic view of Downtown Los Angeles, the showroom is the most advanced example of Steelcase workplace philosophy and technology insights.

CSQ.COM / SPRING 2016 - Q2

Joey Shimoda Shimoda Design Group

“Each design we produce is a mirror of our client’s brand but more importantly, a springboard to augment and inspire their workforce.The evolving workforce is changing perceptions and expectations of how a workplace should function.The single biggest inﬂuence on the changing landscape of workplace is our relationship with technology.”

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R EA L ESTATE & FINANCE INNOVATI V E O F F I CE

Fred Walti CEO, LACI

“By pulling world-class programs, advisory services, and a [business] network together under one spectacular roof, we have the only place we know of that builds new ideas, new leaders, companies, products, a workforce, and a marketplace – all in a single location, all dedicated to one thing: cleantech innovation.”

Real Estate & Finance Innovative Office

LA CLEANTECH INCUBATOR (LACI)

LOCATION La Kretz Innovation Campus, Downtown Arts District COMPLETED March 2016 DURATION 2½ years ARCHITECT John Friedman Alice Kimm Architects SQ. FT. 60,000 LEED CERTIFICATION Platinum FEATURES A living wall of 2,100 plants in the lobby; 175-kilowatt solar array over parking lot that feeds into a 50-kilowatt microgrid of batteries (first in the City of LA) and UV gray-water filtration system (first of its kind in the country) CLEAN CONVERGENCE Founded in 2012, LACI is a nonprofit partnership between public, private, and educational sectors. Funded by the Community Redevelopment Agency of Los Angeles and LA Department of Water and Power, LACI has raised $70M in investment capital to date while creating 840 jobs, according to Facilities & Operations VP Ben Stapleton. CLEANTECH COMPANIES INCUBATED 47 (32 active) NOTABLE TENANTS Arids Land

Institute, Autodesk, Chai Energy, LADWP, Lyft, Pick My Solar, Repurpose, Wilson Sonsini laincubator.org

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720 NORTH CAHUENGA OWNER Robert Herscu, HQ Creative Office LOCATION Hollywood COMPLETED February 2016 DURATION ~ 1 year ARCHITECT Shubin + Donaldson SQ. FT. 33,000 FEATURES 30-foot bow-truss ceilings, subway tile showers, yoga studio, full bar NOTABLE TENANTS Mashable, Lunchbox, Animal Logic, Scopely hqcreativeoffice.com

Real Estate & Finance Innovative Office

Russell Shubin Shubin + Donaldson

“We’re bringing precision, articulation of materials, and sense of craft together and we’re approaching [ofﬁce space] seamlessly as we do a residence, where it’s the inside out and the outside in.… Even though it’s perforated corrugated metal and ﬂat-plate steel coming together instead of marble and wood, there’s still the same intentionality in the detailing.” CSQ.COM / SPRING 2016 - Q2

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R EA L ESTATE & FINANCE BU SI NE SS PRO F I L E

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[LOS ANGELES]

PRODUCING PROPERTY PROSPERITY

BY SANDY VAN

t the height of the 2008 housing crisis, the devaluation of subprime mortgages and housing prices was at a historical high — serving as the perfect opportunity for Keith Wasserman and Damian Langere to make their entry into a tumultuous industry shaken to its core. Close cousins from a young age, the pair of entrepreneurs would further their bond through the formation of Gelt, Inc., a multimillion-dollar company focused on acquiring value-add multifamily properties implementing significant renovations and strong management, thereby repositioning the properties and yielding

to the mix. Specializing in older properties built in the ’70s and ’80s, Langere shared their joint goal of obtaining more than 10,000 housing units in the future. Native to Los Angeles, the two attribute their success in part to their close ties with investors, continuing mentorship from others such as their dads, and the decision to avoid turning to institutional capital — from insurance companies and big banks — as a source of funding, retroactively initiating their “own crowdfunding,” Wasserman joked. “I treat everyone like a partner. They grow with us over time, and I think that’s been part of our success.” One issue that soon became apparent to the founders of Gelt, Inc., had affected them personally early on: the high cost of moving in for many renters. As a result, the company Domuso was created by the co-founders of Gelt, Inc. and Michael Lightfoot in 2013. This online digital platform provides renters with assistance by cushioning the costly blows associated with moving in by providing flexible financing for their move-in costs. Likening the concept to eBay’s “Bill Me Later,” the founders furthered that Domuso is greatly rooted in and marketed toward a millennial generation that does not care to purchase a home; thus, renting is an attractive alternative despite the rising costs of moving in. “Truly, it’s an incredible thing, and we live in an age where we see ourselves taking advantage of the social aspects of technology,” Langere says. Since the nascent rise of Gelt, Inc., the company has developed vast philanthropic goals, which include supporting charitable religious organizations such as Jewish Big Brothers & Sisters of Los Angeles, American Jewish Univerity, and the Jewish Federation. However, these goals do not stray far from the founders’ own personal ventures or the company’s namesake, which takes after the Yiddish word for “giving.”

KEITH WASSERMAN Co-Founder & President, Gelt, Inc.; Founder, Domuso AGE 31 RESIDENCE Sherman Oaks EDUCATION B.A., USC

DAMIAN LANGERE Co-Founder, Gelt; Co-Founder & President, Domuso AGE 35 RESIDENCE Brentwood EDUCATION B.A., UCSB

Real Estate & Finance Profile (Wasserman)

I treat everyone like a partner. They grow with us over time, and I think that’s been part of our success. a high return on investment. Noticing an opportunity at their fingertips, Langere first approached Wassernan about the purchase of a fourplex in East Bakersfield. “People thought we were crazy — there were high interest rates, foreclosures everywhere, and no buyers to be seen,” Langere commented, as a result of the recession. Yet this was only the start. They would soon acquire more than 4,200 housing units and amass a $400M portfolio over the span of six to seven years. Major southwestern cities such as Denver, Phoenix, Reno, and Salt Lake City soon became their primary housing market, though they plan on one day adding Seattle, Los Angeles, and Portland - 62 -

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GELT, INC.

FOUNDED December 2008 HQ Tarzana EMPLOYEES 12 PORTFOLIO 4,200 units INVESTORS 200+ FUNDS RAISED > $100M

DOMUSO

FOUNDED 2014 HQ Santa Monica EMPLOYEES 15 PORTFOLIO 200,000 units

Wasserman, who graduated from the Marshall School of Business at the University of Southern California in 2007, leads the charitable giving program at Gelt, Inc. He serves as a big brother for the Jewish Big Brothers Big Sisters of Los Angeles, a local organization dedicated to encouraging mentorship and youth development, and was one of three honorees during their 100-year anniversary in 2015. He is also a part of the Moriah Society for Real Estate Professionals. Graduating from the University of Santa Barbara in 2004, Langere believes that Gelt, Inc. has given him a chance to build a successful business while empowering both renters and investors alike. Recognizing the early dynamics of holding a piece of real estate, the co-founder said, “I think it’s a great time to be an entrepreneur. The possibilities are endless.” 

Photo: David Sprague

Native Angelenos Keith Wasserman and Damian Langere connect renters and investors through technology

R EA L ESTATE & FINANCE MA R K W E I NSTE I N

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MARK WEINSTEIN President and Founder, MJW Investments AGE 57 RESIDENCE Santa Monica FAMILY Wife, three kids EDUCATION B.S., UCSB; J.D., Loyola

Law School

NETWORKS YPO, WPO, Real Estate Professional Organization, Jewish Federation, AIPAC

MJW INVESTMENTS

HQ Santa Monica 2015 REVENUE $100M ASSETS MANAGED $500M SQUARE FEET IN PORTFOLIO

4 million

EMPLOYEES 15

[SANTA MONICA]

WHEN OPPORTUNITY KNOCKS

Real Estate & Finance Profile (Weinstein)

Growing with his niche market – college student housing – has given Mark Weinstein a new lease on a balanced life BY LAUREL MINTZ

off-campus housing structures began to take form near schools across the nation. With growth comes expansion, so Weinstein accepted the challenge to expand eastward. Because of different regional requirements and institutional cultures, Weinstein considers certain factors when it comes to choosing a school with which to partner, including proximity to the institution, atmosphere of the community, and institutional codes of conduct. Weinstein believes that community involvement is an important part of his career and considers philanthropy as a driving force behind his life’s decisions. He is satisfied with his level of involvement in his family and philanthropic endeavors. The 57-year-old professional is also part of various venture philanthropy groups, which contribute to the community through charitable donations and mentorship programs. These groups, known for serving low-income communities and the elderly, include the Young Presidents’ Organization, the Real Estate Professional Organization, the Jewish Venture Philanthropy Fund, and the Guardians. “[Real estate] afforded me the opportunity…to be a major force in philanthropy in LA while I was also building my business,” he says. The father of twins, Weinstein now looks back on his career path and is glad he established the business he intended to start. Being able to wake up with, dine with, and play with his children, Weinstein considers himself fortunate to live his life balancing his work, family, and aspirations. 

t all started with one four-unit hunch. After scraping enough money together to invest in a single building, Mark Weinstein began to develop a keen eye for property investment, in hopes of establishing a successful philanthropic enterprise. As the founder and president of MJW Investments, Weinstein and his associates have acquired more than 4 million square feet of property. During his time at Loyola Law School, Weinstein realized that his dedication to his prospective profession was lacking heart. He wanted to make a positive impact and create real change in the world. While he enjoyed studying law, he foresaw difficulty devoting time to philanthropy while taking on the commitment necessary to become a successful lawyer. The pragmatic Weinstein recognized that in today’s society, making real change requires real funds, and a generous amount, at that. “I was 21 years old, and I had an epiphany that being a lawyer would be a great thing and I could do good things in the world,” says Weinstein. “But if I really wanted to have a major impact in the

world, I needed to make more money somehow.” Real estate is where he saw his opportunity. Today, Weinstein’s entrepreneurial spirit - which has made him a key player in large development projects in Los Angeles - overshadows his lack of formal business training. A Southern California native, his understanding of Los Angeles’ housing crisis is hard-wired, which pushes him to incorporate an aspect of affordability into his projects. One of his greatest accomplishments was the refurbishing of DTLA’s Santee Court, an experience that pushed Weinstein and his associates to tackle grander projects. The 550-unit mixed-use complex includes a number of recreational amenities as well as plenty of retail and restaurant space for residents to enjoy. To continue building innovative structures, Weinstein set his sights on the stable student housing market around 2007. He was able to apply his experience with hospitality, customer service, innovative design, and multi-use complexes to student housing. From Oregon to Michigan to Texas, Weinstein’s amenity-rich, CSQ.COM / SPRING 2016 - Q2

[Real estate] afforded me the opportunity… to be a major force in philanthropy in LA while I was also building my business.

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R EA L ESTATE & FINANCE SH I VA NI SI ROYA

[SANTA MONICA]

CREDIT WHERE CREDIT IS DUE Shivani Siroya’s fintech brainchild InVenture is harnessing cellphone data to empower emerging markets BY VALERIE HARTMAN

wo-point-five billion. It’s a big number, and one that is top of mind for InVenture CEO and Founder Shivani Siroya. This is how many people across the world don’t have a credit score or access to formal markets or formal financial systems, and it’s this number that Siroya and her Santa Monica–based company are working to chip away at each day, with efforts currently focused on the emerging markets of East Africa and Southeast Asia. Founded in 2012, InVenture is a mobile technology startup that has developed software providing these very people with

a real-time financial identity, providing a credit score as well as loans to people in emerging markets who would never have been provided access otherwise. Its founder Siroya, 32, originally from India and raised in the U.S., always knew she wanted to do something with emerging markets. After finishing grad school studying econometrics at Columbia, she headed to the world of investment banking, where she got a firsthand education on how formal markets worked. She also learned where there was a gap. Banks and institutions have not created credit products for populations in developing countries, as people in these countries are perceived to be risky since there is no record of their financial history. This is because everything they spend is in cash, in a system based on trust. So Siroya set out on a mission while working at the UN Population Fund: She was going to try to understand what was happening in terms of the movement of money in these markets. “I became a walking QuickBooks,” she says, shadowing people from morning to night to see how much they were spending each day, and what they were spending it on. It’s a reoccurring theme with Siroya; exhaustive, extensive research fueled by passion.

Real Estate & Finance Profile (Siroya)

LinkedIn to a Solution

Photo: Neil

Starting a company was never Siroya’s goal. “I didn’t do this to start a company. I did this to solve a problem.” Her approach was to learn as much about this problem as she possibly could, which began with sending 1,500 messages on LinkedIn.

SHIVANI SIROYA Founder, CEO, InVenture

Photo: Neil G.Photo: Philips Neil G. Philips

AGE 32 EDUCATION Wesleyan (B.A.,

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CSQ.COM / SPRING 2016 - Q2

government and international relations), Columbia (M.P.H., finance and health econometrics RESIDENCE Santa Monica FAMILY Husband, Chet NETWORKS / ORGANIZATIONS

The Stellar Development Foundation, TuesdayNights

INVENTURE

FOUNDED 2012 HQ Santa Monica OFFICES Manila, and Nairobi EMPLOYEES 35 INVESTED $11M

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/ Siroya speaking at the 2016 TED Conference in Vancouver, British Columbia, Canada in February

“I talked to anyone and everyone who would talk to me.” After a few of these phone calls she knew she had something big on her hands, with people telling her, “This is a problem. We agree with you. You should start it!” And so she did, with Chris Sacca coming on board as one of her first investors. Fast forward a few short years and InVenture already has 40% of the Kenyan market in its system, or 18 million people. The software collects data points that discerns whether someone would be a good borrower, taking into account things like what time of day someone makes the most phone calls to how many contacts that person speaks to on a regular basis. “This is daily life data,” she says. “This isn’t the way that FICA works in terms of looking only at your previous payment history from three or five years ago. This is about what you did yesterday.” In fact, this is what makes InVenture’s solution so compelling. So compelling, Siroya says, that “governments are now starting to wake up as a result of the work we are doing,” and she has been asked her opinion by someone presenting to the U.S. Treasury on how regulations about credit scoring should be changed here. “I do think that as companies like ours show that outside the U.S. these types of credit scoring methods are more fair and working just as well, then governments will change them.” Siroya is grateful that InVenture is based in Santa Monica, with its mix of tech and lifestyle. In fact, InVenture’s CTO recently left Apple to join the company. “People in San Francisco are starting to realize that it’s really expensive to live there,” she says, while Santa Monica is a great place to live where “there is really cool,

[G]overnments are now starting to wake up as a result of the work we are doing.

somebody on the team is called out with a workout,” she says. “It’ll say, ‘John, ten burpees,’ and he has to get up from his desk and do ten burpees right at that moment. Then someone else gets called out, with ten sit-ups.” Individuality of employees is also highly valued. “Our team is really quirky… you’ve got an engineer that plays the guitar and sings, and another who is a badminton champion.” Everyone in the office is working toward the same goal: giving people around the world a voice. In fact, one of the comments on the InVenture website’s Wall of Love, an unfiltered place for customer feedback, read, “This is the Kenya we want.” “To hear that kind of praise doesn’t have to do with the service we are providing,” she says. “It has [more] to do with the fact that you feel heard and you feel seen by our product.” And that, she says, is gratifying. “This is that mix of how you can use technology and really serve a local need and make it feel like this is theirs and not a Western company coming in and trying to fix a problem.” Still, there is certainly a learning curve starting a new company. “The biggest challenge is doing this for the first time and applying best practices and depending on reliable sources who are close to you,” she says. Siroya is undaunted by gaps in her knowledge; she surrounds herself with those with applicable experience. “I’ve had to level up,” she acknowledges. “I‘ve had to go and get a coach. To grow a company you need people who have seen it before.” Enter Jacqueline Novogratz, who started the Acumen Fund, whom Siroya considers to be a personal hero. “I loved seeing what her background was. She went from investment banking to working in emerging markets and coupling those two experiences together to start what she does now,” Siroya explains. “I know that influenced my career direction and what we do.” The Indian native is just as passionate now as she was when the company was founded, and she will keep going until the problem is solved. “What gets me super excited is that we actually see that our customers’ lives are changing,” she says. As an added bonus, Santa Monica provides a lovely backdrop to the important work being done. “The sunsets lately have been ridiculous, so the fact that we can walk out of our office, and look at that …we are pretty lucky that we get to work here.”

Real Estate & Finance Profile (Siroya) innovative stuff...happening.” It was not a foregone conclusion that her company would get its start when it did. Elizabeth Clarkson, Managing Director/COO of SAP Ventures, gave her some of the best advice she received when starting out. When Siroya was ready to leave her day job and go full force into InVenture, she got her to step back and think about practical matters. Clarkson told her, “You can’t put all of your time and resources into starting this if you’re also worried about living.” She took Clarkson’s advice and made sure to have enough to cover a full year’s rent.

Westside Workplace Values

Times have changed, and InVenture is making its mark in the world. All four of its offices – Santa Monica HQ, the Philippines, Nairobi, and Manila - embrace the company’s credo that includes four core values: care, individuality, speed, and experimentation. You can see this in the company’s hires as well as its day-to-day workings. “We do little things as a startup, including peer bonuses,” says Siroya. She adds that all offices are focused on prioritizing a healthy lifestyle despite long hours. To that end, the Slack app has become a valuable asset. “Every ten minutes CSQ.COM / SPRING 2016 - Q2

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R EA L ESTATE & FINANCE NA D I NE WAT T

[LOS ANGELES]

RISING TO THE CHALLENGE Third-generation real estate exec Nadine Watt is adding breadth to the family business while breaking new ground as the first-ever female chair of the Los Angeles Business Council BY WHITNEY VENDT PHOTOS BY DENNIS ROY CORONEL

adine Watt, president of Watt Companies and granddaughter of company founder Ray Watt, originally had no intention of joining the family business. Like many offspring of entrepreneurs, she wanted to make her own way in the world, to explore and find her passion. Through this search, she became inspired to carry on the family legacy in her own way. She has gone on to make her mark on the city as the first-ever female chairperson of the Los Angeles Business Council. Watt’s journey began when she moved to Europe with her family as a youngster. It inspired her to pursue a career in the foreign service as a diplomat or politician, so she became fluent in French, Greek, and Italian, and completed a degree at Georgetown. But after spending time in politics, she decided to switch careers to pursue her love of filmmaking. She returned to LA and earned a degree from USC’s film school and went on to work in the entertainment business for seven years. There she combined her language skills and her filmmaking business savvy working for a distributor preselling film rights in foreign territories. “I wanted to be Sherry Lansing,” she tells CSQ. “I wanted to run a studio and I definitely thought I would end up in the entertainment business.” But the 24/7 nature of the business was unappealing, so when the distributor went bankrupt in 1999, she found herself again doing some soul searching. Her father, Scott Watt (now CEO of Watt Companies) suggested she come back to the family

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Real Estate & Finance Profile (Watt)

business – not as an employee, but just to soak in what she could. Nadine had worked at Watt Companies every summer as a youth, running switchboards and doing filing. “[As a kid] I thought it was boring. I had to go to all the sites with my dad and I just didn’t get the global picture of what real estate was,” she tells us. As an adult with realworld business experience, however, she saw things differently and eventually asked to be put on a project, just to keep busy. Then a second project came along, and another, until she was hooked. ”Now I could see where my skills applied from the film and development business, so I took that decision and ran with it.” CSQ.COM / SPRING 2016 - Q2

NADINE WATT President,Watt Companies AGE 47 RESIDENCE Beverly Hills FAMILY Husband, Andrew Jameson;

two daughters, Keira and Reese EDUCATION Georgetown, USC

NETWORKS / ORGANIZATIONS

LABC, USC, City of Hope, ULI, California Science Center

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In 2001 her decision crystallized in a profound way. Ray Watt was being honored at a City of Hope banquet as a real estate icon and visionary. Not only was the entire family there, the room was a veritable Who’s Who of industry power players. “In my grandfather’s acceptance speech, he said ‘…and my granddaughter Nadine is here and she’s going to take over the business someday.’ He didn’t single anybody else out, and I was in the room with the Dick Zimans and the Rick Carusos of the world. And I thought, ‘Okay, he thinks I can do it; he’s announced to everybody I can do it … I bet I can do it.’ And I decided ‘This is where I want to be; I’m going to step up.’ Then I got really excited and passionate about it and I started to embrace it and I said, ‘This is me now.’” Nadine has been in real estate for seventeen years. As President she oversees Watt’s commercial division with a core portfolio containing about 50 anchored retail centers. She keeps an eye on the company’s office and industrial portfolio – about a million square feet of office between Watt Plaza, their headquarters in Santa Monica, and a recently acquired office in Culver City. She also oversees the company’s debt and acquisitions business. Historically the company started out in the areas where Ray Watt built homes in the 1940s. “My grandfather, Ray, started the company 70 years ago for GIs returning from the war. He knew returning soldiers were going to need places to live, so he started building homes and communities where people could live and work.” Many of the company’s retail centers still cater to mom and pop shops. To this day, Watt sees a lot of the future in multi-family. “Retail’s going to change a lot, but people will always need a place to live.” The decision to invest in multi-family is part of a strategic restructuring the company went through in 2011 – one that required careful decision-making at the executive level. “The impetus was really the downturn in 2008. If the company was to continue to grow, we realized we would have to revisit our strategy.” The decision was made to outsource their property management business and concentrate on real estate. It was a difficult decision, but one Nadine believes was the right move. “It’s paid off. We’re doing very well because of the decisions we made at that time.” Watt has taken that success and worked to pay it forward. “What inspires

I was in the room with the Dick Zimans and the Rick Carusos of the world. And I thought, ‘Okay, he thinks I can do it; he’s announced to everybody I can do it … I bet I can do it. me is that I think I can make a difference. I can mentor and educate and get women and minorities to the table in the real estate world.” This forward-thinking attitude is especially crucial to her work as Chair of the LA Business Council (LABC). The opportunity to join the LABC came in 2002, when real estate icon Dick Ziman (Rexford Industries) invited her grandfather to join. Ray Watt had worked as Undersecretary of Housing and Urban Development (HUD) in the 1960s, so it seemed a natural fit. Instead, Ray recommended Nadine take his place. “It was a sink-or-swim moment,” she recalls. “But honestly, I feel like, without my knowing it, they had been grooming me for the past twelve-plus years.” In July 2015, Nadine became the first female chairperson of the LABC. The LABC currently focuses on four major policy areas: housing,

transportation, sustainability, and workforce development. And, Watt would add; “I couldn’t end this conversation without talking about homelessness. My family has a tradition now on Christmas Eve to go to the mission and feed the homeless. The USC School of Social Work is doing a big project on how to end homelessness, the Mayor is working on it, and the VA is talking about veteran homelessness, so it’s something LA really needs to concentrate on.” Watt dreams of a future LA that is a business-friendly, viable, and sustainable place to live and work. “I have two small children,” she points out. “I want to be a role model for them – a mom who works, who’s productive, and who’s trying to make a difference in the world.” That’s quite a high standard, but if Watt’s record has proven anything, it’s that she excels at rising to the challenge.

Real Estate & Finance Profile (Watt)

WATT COMPANIES

YEAR FOUNDED 1947 FOUNDER Ray Watt HQ Santa Monica EMPLOYEES 90 2015 REVENUE $165M SHOPPING CENTERS 50 RESIDENTIAL HOMES BUILT

>100,000

SQUARE FEET 8 million

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R EA L ESTATE & FINANCE JO H N KI L ROY

[LOS ANGELES]

RIDING A WAVE OF SUCCESS John Kilroy’s competitive spirit is translating into big wins on land – Kilroy Realty is contributing to Hollywood’s grand makeover – and at sea BY JASON DEAN

early 10 years after taking Kilroy Realty Corporation public, CEO John Kilroy recalls having a pivotal conversation with his senior employees while at a San Diego real estate conference. The country was in the midst of an economic recession—with the realty industry being hit especially hard—and the forecast for the future was a looming sense that the situation would continue to deteriorate. The year was 2008. Kilroy gathered his team together and told them, “This is going to be one of the greatest opportunity periods for Kilroy Realty ever and we need to prepare for

being ready to face challenges when adversity strikes – coupled with a dogged determination and forward-thinking philosophy – that has elevated the 67-year-old realty mogul’s game and positioned him as one of the region’s most successful real estate professionals. A 2015 winner of EY’s Entrepreneur of the Year award, Kilroy has taken the business his father founded in 1947, Kilroy Industries, and revolutionized it by anticipating trends while deftly adapting to the existing environment. One example is the company’s integration of LEED (Leadership in Energy and Environmental Design) certification standards into its business model. In 2010, “six percent of our portfolio was LEED certified,” he explains. “Today, we are the Number 1 company across all the different types of real estate in North America two years running and Number 5 in the world. Everything we do is gold and platinum.” To ensure that this statement is not construed as hyperbole, he repeats, “Everything.”

Real Estate & Finance Profile (Kilroy) Photo: Neil

Here, There, and Hollywood

JOHN KILROY CEO, Kilroy Realty Corporation AGE 67 EDUCATION USC RESIDENCE Ross, CA FAMILY Wife, Catherine; six children, ages 10 to

33 (Lauren, Conor, Caitlin, Chloe, Liam, Sadhbh)

KILROY REALTY CORPORATION NYSE KRC FOUNDED 1947 FOUNDER John Kilroy, Sr. HQ Los Angeles EMPLOYEES 232 PORTFOLIO 13 million sq. ft. 2015 REVENUE $581M

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it.” Turns out he was right. “I came away enthused at a period that was the absolute depths,” recalls Kilroy. By selling off non-strategic assets and acquiring and developing with an opportunistic edge, the company weathered the storm. With developments previously concentrated in Southern California, Kilroy branched out to two areas where he saw great potential: San Francisco and Seattle. By 2010, the geographic expansion and the changing scale of the company were already having a positive effect on the Kilroy Realty Corp. balance sheet. It’s that eternal sense of optimism and CSQ.COM / SPRING 2016 - Q2

In addition to venturing outside Southern California, Kilroy sharpened his focus in the region, looking for opportunities that offered promising investment prospects. In talking with technology companies in the Bay Area and south, he realized that the demand for content, much of which originates in Hollywood, was higher than ever. Smartphones, for example, have opened an expansive avenue for delivery of entertainment content. “Hollywood is becoming a major hub and we recognized that earlier than anyone else,” he says. The advent of new technologies has created what Kilroy calls a virtuous cycle for the area. “Smart people, technology, entertainment, and the other things that go on in Los Angeles are creating an environment where we’re drawing in more and more Millennials,” he says. “And we’re creating jobs for them in highpaying industries that pay lots of taxes, which are good for the overall economy.” Contemporary corporate culture has given rise to a new breed of workforce that is more empowered than ever before, according to Kilroy. No longer does the physically imposing, cold granite building representing the all-powerful corporation hold sway over employees. Meritocracies are commonplace. Physical barriers that once distinguished the professional environment have been

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taken down in the name of open collaboration. And it has become standard practice for companies to promote a more relaxed atmosphere via ping-pong tables, comfortable alternative seating, and catered lunches. The mixed-use workplace represents the new direction of the company. “We’ve gone away from doing one-off buildings,” Kilroy states. Columbia Square, an ambitious project at the corner of Sunset Boulevard and Gower Street to be completed this spring (see pg. 53), is a shining example of this philosophy. The 4.7-acre mixed-use development includes luxury residential, retail, creative office, studio and media facilities, as well as historical reuse. It’s also just a block away from LA Metro’s Red Line, allowing for a more seamless connection between home, work, and the rest of the city. It’s all part of the ongoing trend away from the personal automobile and toward public transportation. “I know that sounds weird for LA, but it’s happening,” he says.

Kilroy Was Here

Never get complacent. Don’t ever think something can’t be done, because when you do, you’re going to miss opportunities.

when I was a kid.” Kilroy is upfront about his father’s positive traits and influence early in his life (“a brilliant guy, terrific in math, great salesman, taught me a lot about character”), but their relationship is fractured and the two have not spoken in the past few years. “I worked with him much longer than I should have,” Kilroy acknowledges. While it was never his goal to join the family business, Kilroy’s work ethic was shaped by aspects of his father’s business since the age of 10. He swept warehouses, worked as a watchman at a building owned by Kilroy Industries during high school and cleaned the bottoms of boats in shipyards after high school. While in college, Kilroy realized he had higher ambitions. He was contemplating a career in corporate law, so he began working with his dad in the office and learned a lot about the business. That same year, he did his first million-dollar deal. “In today’s terms it would probably be a $30 or $40 million deal.” From that point on, he was hooked on real estate. Kilroy, Sr. remained non-executive chairman of the business until stepping down in 2013, but it was his son who drove the decision to go public, evolving the company into Kilroy Realty Corporation, shifting the scope of priorities and rolling in Kilroy Industries as a part of the larger entity. The IPO was based on Kilroy’s desire to have “a company that was more diversified geographically [and] productwise, more diversified and capable from an overall management standpoint and [with] a much more conservative balance sheet and the kinds of discipline that are really important to have in creating a world-class entity.” He looks back on this period as his biggest professional challenge.

Real Estate & Finance Profile (Kilroy)

Kilroy’s father, John Sr., was a 19-yearold assistant chief inspector at Douglas Aircraft Company when the U.S. became involved in World War II. “My father wrote a paper on the correlation between the rate of rejection and the workplace environment, [pointing out] simple things like good lighting, ventilation, picking up stuff and having it organized and what not,” recalls Kilroy. This paper landed on the desk of company founder Don Douglas, Sr. “He asked to speak to this Kilroy guy and in walks this skinny, six-foot-three, 19-year-old kid.” It was the beginning of a lifelong friendship. After the war ended, Kilroy, Sr. realized that many big corporations that had been dedicated to the war effort were going to need facilities if they were going to stay in California. So he became a real estate broker and formed Kilroy Industries, cobbling together various connections to invest in constructing industrial buildings. “He always had the theme that you’ve got to follow technology because that’s the future,” recalls Kilroy. “So I grew up in that kind of household where it was always a discussion about the fact that the future would hold a lot of changes and you’ve got to be adaptable. That’s a very common theme now with schools because they think kids are going to have multiple jobs [throughout their careers] but that was not such a common theme

Smooth Sailing Ahead

Weathering the transition from private to public company plays into a couple of the Southern California native’s guiding principles. “Never get complacent. Don’t ever think something can’t be done,” he says, adding, “because when you do, you’re going to miss opportunities.” It’s no coincidence that some of Kilroy’s comments sound as if they were ripped from the motivational playbook of a competitor in the sporting world. In fact, he’s a world-class sailor, having won nine world championships with

CSQ.COM / SPRING 2016 - Q2

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I N N OVATION SUSA N WOL F - IR A E PST E I N

1/ Kilroy speaking at the Ernst & Young Entrepreneur of the Year Awards in 2015 2/ Kilroy with his EY trophy 3/ Father and son Liam are both world-class sailors

Real Estate & Finance Profile (Kilroy)

his sailing team while setting records in some of the world’s great ocean races. “I’ve sailed with some of the best people in the world,” he says, “and what you realize is that character traits really transcend everything. [Things like] being part of a team, being calm when it’s required, working hard, listening to others, critically evaluating your performance … but more than anything, I love competition. “Sailing is Chutes and Ladders,” he continues. “You want the ladders to be as long as possible and the chutes to be as short as possible, but you’re constantly having to make adjustments. It makes you very aware in the ‘now,’ as well as planning for what’s coming around the corner.” While Kilroy’s nautical accomplishments are undoubtedly impressive, his 12-year-old son Liam is already poised to surpass him. “He started at 10,” says Kilroy. “By the time he was 11, he was beating me 40 percent of the time. Now we’re neck in neck.” The family has six sailboats docked around the world to keep up with their exploits - two each in San Francisco, Florida, and Europe. “He is doing something that no one has ever done at his age at this level,” Kilroy enthuses. “He’s competing against Olympians and world-class sailors [and] he’s become one of the best sailors in one of the most competitive classes in the world. He’s in the sixth grade and he’s kicking everybody’s tail!”

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In early March, at the helm of his sailboat Wildman, Liam Kilroy and his team won the overall 2015/16 Miami Winter Series title. Among those that succumbed to Wildman? His father’s Samba Pa Ti. Like many high-achieving leaders, Kilroy finds a strong correlation between business and physical activity. “Some of my best thinking is when I’m doing sport, because I’m not thinking about business consciously, but my subconscious is coming up with amazing ideas that otherwise I found unsolvable.”

Connecting the Dots

Kilroy is proud of the executive team he has built over the years, many of whom have been with the company for more than three decades. COO Jeffrey C. Hawken started as an intern when he was 17. “One of the things I’m most proud about is I really believe in mentoring people and giving them the runway to become all they can be,” he says. “I tell young people when we hire them today, ‘You should want my job. And I will help you in every way I can to make you as good as you possibly can be,’” says Kilroy. “I recognize that if you’re going to attract really great people, most great people are not just about money. Money’s important, but they’re about wanting to be part of something that is big, that hopefully is fun and, culturally, that they’re in an

CSQ.COM / SPRING 2016 - Q2

environment that they really like and appreciate.” Kilroy made the tactical decision to move to Northern California in 2014, but his company is still headquartered in Los Angeles and he remains committed to solving the problems the area faces as they relate to transportation and accommodating the population. Asked about the “Stop Manhattanwood” billboard campaign that is opposed to increased development in Hollywood, Kilroy is unapologetic while pointing out the underlying issues at hand. “[Los Angeles has] a massive shortage of both housing and affordable housing,” Kilroy points out. “Antidevelopment means more homelessness, longer commutes, [and] more stress on the transportation system, degrading the air much further. You cannot be a world-class city without a world-class transportation system. And we don’t have it.” Kilroy mentions some notable exceptions - the Red Line from Hollywood into all the other entertainment centers and the new Expo Line to Santa Monica - but there is much work to be done and decrying development that is intended to either centralize or connect communities is misdirected. Whether the focus is real estate or navigating the high seas, Kilroy prefers to dwell on what is possible. “I hate it when people say, ‘You can’t do that.’ Because who knows? Maybe you can.” 

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R EA L ESTATE & FINANCE FL A SH F O RWA R D

In spring 2014 CSQ connected with Los Angeles World Airports (LAWA) then–Executive Director Gina Marie Lindsey on her successful undertaking of a multi-billion-dollar facelift to Los Angeles International Airport (LAX) – the largest public works project in L.A. history. Lindsey retired in early 2015, and CSQ connected with her successor for a progress update and to learn more about LAWA’s new leadership and the status of the nation’s second-busiest airport, LAX. Q2 2014 Issue 23

[LOS ANGELES]

AN UPWARD TRAJECTORY New Executive Director Deborah Flint intends to build on a $1B investment from select U.S. airlines and continue to modernize Los Angeles World Airports

passenger traffic while transitioning ONT to its new local authority, and continuing to position VNY as a vital community partner. Over $8.5B for capital improvement investment through Fiscal Year 2019 at LAX are now being used to improve passenger safety, and security, while enhancing the overall guest experience at all of the airport’s terminals. As the former primary executive responsible for the operations, management and business development of the Oakland International Airport, Flint successfully delivered a $480M BART Airport Rail project among other feats. Inspired by the unpredictability of her job, Flint maintains a “keep it real, and make it happen” approach to life. Grounded by her family and the Golden State Warriors, she is passionate about connecting with like-minded community leaders, including Mayor Eric Garcetti. “Mayor Garcetti is a native Angeleno who is just as excited as I am to make the airport experience feel like it should as the gateway to LA.”

Real Estate & Finance Flash Forward (Flint)

BY ANDREA ZARCZYNSKI

“N

Access Modernization Program (LAMP) to offer guests a first-class experience by way of an Automated People Mover (APM) connecting three on-site stations to Metro Rail and transit services to provide seamless connection to public transportation. A new consolidated Rent-a-Car center and two Intermodal Transportation Facilities (ITFs) will offer additional parking, meeter-greeter activities, and roadway improvements. The influx of public transportation across greater Los Angeles has also shifted LAWA priorities. Flint said that the establishment of a public transportation link to LAX is vital to survival among leading airports around the world. Metro has agreed to build a 96th Street Station as part of LAMP that will feature a rail and bus link to the airport. LAWA has also agreed to build an APM station above the planned 96th Street Metro Station to allow for quick, seamless transfers to LAX. “Our objectives are for high-quality best in class facilities that will serve us for decades,” Flint says. “It is really challenge versus opportunity – LAX is poised to recreate the passenger experience, but first the facilities have to be modernized. Tom Bradley International Terminal is a hallmark on par with a global experience for travelers, but there is still so much more to do.” Flint’s greatest challenge now at LAX is implementing LAMP by year 2023. She plans to make the locale a firstclass neighbor by acting honestly and transparently throughout planning, which will include studying life cycle and total ownership and controlling costs to move forward. In managing the LAX Capital Development program, Flint will also build on ONT’s 2015 increase in

o one doubts the importance that LAX has played through the Jet Age,” says LAWA Executive Director Deborah Flint. “Now we have the opportunity to change, transform, and bring LAX into the modern era for the modern traveler.” Those who have ventured to LAX with any regularity over the past five years no doubt are aware that long strides of progress have been made. Recently upgraded Terminal 2 is already on a new trajectory, and select U.S. airlines plan to collectively invest more than $1B toward additional terminal renovations. In addition to LAX, LAWA Airports also presides over LA/Ontario International (ONT) and Van Nuys Airport (VNY). Today’s savvy airline passenger has certain expectations of what a quality airport experience should entail. In response, Flint is focusing on guest experience and a seamless integration of new technology at LAX. A new hospitality mindset among staff will not compete with functional, safety, and security standards. Frustration over traffic congestion and sub-par airport experience is a national aviation issue, according to Flint. LAWA’s solution is a new Landside

CSQ.COM / SPRING 2016 - Q2

Now we have the opportunity to change, transform, and bring LAX into the modern era for the modern traveler.

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R EA L ESTATE & FINANCE SCOT T MI NE R D

Real Estate & Finance Cover (Minerd)

SCOTT MINERD Global Chief Investment Officer, Guggenheim Partners

[SANTA MONICA]

AGE 56 HOMETOWN Connellsville, PA RESIDENCE Los Angeles FAVORITE LOCAL RESTAURANT

A FORMIDABLE FIGURE After achieving incredible wealth on Wall Street, Scott Minerd retired at 37 to live the California dream. Nearly two decades later, the Guggenheim Partners global chief investment officer has achieved a new level of success, motivated by a broader set of objectives.

The Firehouse, Venice

FAVORITE BAND Linkin Park

GUGGENHEIM PARTNERS FOUNDED 2000 HQ Chicago, New York # OF OFFICES 22 worldwide # EMPLOYEES ~150 in LA,

~2,500 worldwide

ASSETS UNDER MANAGEMENT

$240B

BY KIRK HAWKINS AND JASON DEAN PHOTOS BY ZACH LIPP

Just weeks after the conclusion of this year’s World Economic Forum in Davos, Switzerland, Guggenheim Partners Chairman of Investments and Global Chief Investment Officer Scott Minerd sat down with CSQ C-Suite Advisor and Private Wealth Advisor Bruce Munster for a conversation about life, success, and his first attempt at retirement. He also shares plenty of insight on what’s next for the financial markets. As one of the world’s most respected minds in investment matters and macroeconomics, when Minerd speaks about global financial issues, people listen. Following is a summary of that conversation.

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cott Minerd’s first job out of college was an education in itself. His career path, he quickly realized, could go one of two ways: He could either work harder or work smarter. He tried the former, then opted for the latter, with magnificent results. After earning a Bachelor of Science degree in Economics at the University of Pennsylvania’s Wharton School, Minerd’s first job at PriceWaterhouse gave him the opportunity to analyze hundreds of financial statements. The experience also gave him valuable perspective starting out that influenced the rest of his career. He CSQ.COM / SPRING 2016 - Q2

used the formal rigorous process of analyzing large companies as an accountant from the inside as a foundation for future business success. “I couldn’t afford to get an MBA so a CPA, I thought, was a good professional credential,” he recalls. However, working up to 80 hours a week, for just $15,000 a year, Minerd said the life of a CPA got old and wasn’t providing the intellectual stimulation he had hoped for. He watched his friends from Wharton working smarter, not harder, on Wall Street and jokes that they worked far less and made exponentially more income; plus, they had luxurious perks

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[Y]ou can get information all over the place. It just matters if you’re paying attention and listening to it.

Real Estate & Finance Cover (Minerd) that included expense accounts and car service. “You realize if you could do that for somebody else, you could do that for yourself,” he says. “I feel my perspective on work was definitely colored going forward.” Upon completing graduate work in econometrics at the University of Chicago Graduate School of Business, Minerd followed his friends to Wall Street. Minerd settled into a position as a bond trader with Merrill Lynch. Working the markets, he said, was a practical way to take economics and apply it to the real world.

Following the Currency of World Events

When the reunification of Germany in late 1990 led to the European currency crisis a couple years later and plunged Europe into a deep recession, Minerd was busily advancing through the ranks of Morgan Stanley to run credit trading in Europe. “Watching that and being involved in it firsthand really gave me a lot of insight [into] how one country’s policy can so dramatically influence other countries,” he states. “The Germans followed

their own domestic agenda and did so without regard to the rest of Europe. It essentially set off a cascade of dominoes across the continent.” Later, during the 1993 European exchange rate crisis, Minerd helped orchestrate the successful restructuring of the Eurobond debt in Italy. By employing the largest debt exchange offer ever executed by a G7 country, Italy was able to re-establish itself as a credible capital markets borrower, avoiding an appeal to the IMF for financial relief. While still in his early 30s, Minerd had ascended to become the global head of fixed income at Credit Suisse, working for Bob Diamond. Despite his incredible success, Minerd decided to move to LA, buying a beach house and making plans to retire at age 37. “Wall Street paid pretty well, especially in those days,” he says. “I told people I didn’t need 23 houses and 37 automobiles. I saw the opportunity to take all my chestnuts and go away. I really didn’t think I would work again.” He appreciated LA’s casual lifestyle, the weather, and the economics: He could purchase CSQ.COM / SPRING 2016 - Q2

a 2,200-square-foot home for the same price as a one-bedroom apartment in New York City. At the same time, Minerd continued to help friends raise money for various projects. One of those projects was a specialty finance in Chicago called Liberty Hampshire. But after a brief stint in retirement, Minerd got bored and opened an office in his new hometown. Two years later, Minerd met members of the Guggenheim family and in 2000 became one of the founders of Guggenheim Partners. “I guess you could call it my retirement project,” he says with a chuckle. Little did he know that the company would become a $240B-asset juggernaut with 2,500 staff in 22 cities throughout the U.S., Europe, and Asia. Minerd is one of the firm’s eight managing partners and oversees global asset management.

Finding Meaning in Success

Regardless of the stratospheric rewards his financial acumen yields, Minerd’s core values remain grounded. “Most people think success is achieving some status - 73 -

R EA L ESTATE & FINANCE SCOT T MI NE R D

in society or accumulating some amount of wealth,” he says. “I think real success is being motivated by trying to create something that will live on beyond you. Something that really will make a difference and impact society. I don’t know that I’ve reached it. I don’t think I have. I think that’s the real definition of success.” What distinguishes Minerd as an investor is he tends to be patient and methodical in his analysis and doesn’t make snap judgments. “We tend to marry views for long periods of time. I prefer to look at big underlying trends or themes and we take those themes and play them out.” Minerd meets with his research team every Monday morning at 5 a.m. He actively listens to everyone on his team as well as friends in the industry and even people he meets on the street. “My view is that you can get information all over the place. It just matters if you’re paying attention and listening to it.” Case in point: During his first visit to California in 1987, Minerd’s cab driver shared his real estate investment strategy as they drove from the airport to Minerd’s hotel. The cabbie said he bought one house, refinanced to take money out to buy another house and continued the pattern. Minerd inquired, “Does the rent of all these houses cover mortgage payments?” The cabbie said it wasn’t the rent that covered the mortgage, it was the appreciation in the house that made the money. Minerd knew the cab driver’s story was a sign that the late 1980s were going to be a hard time for real estate. A naturally imposing presence, Minerd’s reputation as a big thinker is warranted. But he’s not the blustery type, and he is thoughtful and contemplative when deciding on a course of action. “I’m the greatest self-doubter of all,” he acknowledges. “The minute I come to a conclusion about an investment, I start to try to look at things to refute it.” And once Minerd has convinced himself, there’s practically no one who will convince him to change his mind. Former Barclays CEO Bob Diamond, who worked with Minerd at Credit Suisse and Morgan Stanley, observes, “[Scott] would not answer anything quickly. He would take his time. No matter how unimportant or important the question was, he would always give a thoughtful, careful response.” Diamond said in 30 years of banking, “I’ve never met anyone who is a better judge of credit or a better structurer of transactions. He’s the best chief investment officer that I’ve ever seen.”

We accept the fact today that accumulating assets on the balance sheets of central banks is an orthodox monetary policy. Ten years ago we would have thought it was crazy.

Real Estate & Finance Cover (Minerd)

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Stressing the System

In a published commentary, “Storm Clouds Over Davos,” Minerd recently quoted William White, head of the Organization for Economic Development (OECD), as saying that stresses on the financial system are “worse than it was in 2007.” Offering more specifics as to what White may have meant, Minerd explains, “Corporate bonds and Treasury debt have more than doubled since the end of the financial crisis in terms of the amount of debt outstanding. The size of dealer balance sheets to trade those bonds is less than 20 percent of the size they were in 2007.” These factors are producing an increase in volatility, according to Minerd. “As people have had to rebalance their portfolios to make the adjustments, we have found markets are not very deep and it takes big changes in price to elicit the amount of demand it takes to get price stability,” he says. “What it’s doing is forcing capital into narrow channels [that] people perceive to be safe.” Two of those channels are commercial real estate and government bonds. Regarding commercial real estate, he says, “As cap rates continue to fall and people continue to chase returns, we’re starting to see commercial CSQ.COM / SPRING 2016 - Q2

real estate values get very extended.” With government bonds, “There’s a real bubble here in sovereign credit. Someday these capital imbalances will have to be readjusted.” Minerd is quick to clarify that markets that get overvalued and become even more overvalued are called bull markets. We are indeed in a bull market in commercial real estate, he explains. What many accept as being “normal” monetary policy were really solutions invented to address a variety of economic problems in developed countries. “We accept the fact today that accumulating assets on the balance sheets of central banks is an orthodox monetary policy. Ten years ago we would have thought it was crazy. I remember speaking before and during the financial crisis to groups of people and I would get this glazed-over look because whoever cared about negative interest rates.” The financial system is so fragile, Minerd says, that once inflation takes off, wages grow too rapidly, and the Federal Reserve and other central banks explore an adjustment. “We are likely to find that even modest changes in monetary policy have very adverse consequences on asset prices,” he says. “I think that will end up cuffing the hands of the Central Banks

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and forcing them to remain accommodative way too long and there will be eventually adverse consequences as a result of too much accommodation.” The Fed needs to start adjusting short-term interest rates as employment continues to fall over the next two years, he continues. “I think the Fed is going to realize it can’t push short-term rates too high. It’s a pretty fine hair trigger that the Central Bank has the U.S. economy on. I think it has to move. But I think it has to move very slowly and cautiously.” As the Fed continues to tighten and other central banks (i.e., European Central Bank, Bank of Japan) go further into Negative Interest Rate Policy (NIRP), the U.S. dollar (USD) should continue to climb. The problem is, the Chinese renminbi (RMB) is pegged to the USD and both currencies have climbed significantly, making the export-driven Chinese economy uncompetitive. Minerd said Chinese government announcements to expand funding as part of a new fiscal stimulus plan are buying them time for currency devaluation. Minerd said the Chinese have to become more competitive because their neighbors have depreciated their currencies. “If the Chinese would just devalue, the initial impact would be pretty tough for the financial markets to withstand for the first couple of weeks. Ultimately it would allow commodity prices to rise. The first couple of weeks it could be pretty difficult. But in the course of six months to a year, the markets would do pretty well.”

but that would still not be an argument for the end of a bull market in gold. We’re in a generational bull market here which is punctuated with these very abrupt downturns.” Minerd adds that while investors shouldn’t put all their money in gold, it is a good place for investors to have a 5- or 10-percent portion of their portfolios. Running a global firm requires extensive travel. In 2015, Minerd spent time in the United Arab Emirates, Singapore, South Korea, Japan, and other countries. His favorite travel destination is his beachfront home in Los Angeles: “If I can get the opportunity to be at home, I look forward to it. I already have a beach house, I just don’t get to spend any time there.” When he is on the road, Minerd follows a detailed regimen that includes a full arsenal of supplements such as Zicam (a cold remedy) and Pedialyte to prevent dehydration during his intense travel schedule. The entire time, he keeps his must-have “football” close. While the President of the United States is always accompanied by a military aide carrying a “football” including launch codes for nuclear weapons, Minerd’s “football” comes in the form

of his Bloomberg Terminal, allowing him to monitor, analyze, and trade from wherever he happens to be at the time.

Charitable Bonds

Spending time with Minerd and hearing his thoughtful remarks, it’s no surprise that the 56-year-old Pennsylvania native is actively involved in nonprofit organizations, including The Union Rescue Mission. “What [the Mission is] really committed to is not just getting people a meal, or getting people off the street, but to work with them on the issues in their lives that lead for them to homelessness,” Minerd points out. “The goal is to eventually get them to their own private space.” One of Minerd’s recent donations kept the doors of Hope Gardens Family Center open. Minerd said the transitional housing facility in the foothills of the Angeles National Forest helps reintegrate 80 percent of the women and children who live there back into society. “I’ve come to believe I’ve benefited a lot from being in this country,” he says. “I think there’s an obligation to give back and provide public service.”

Real Estate & Finance Cover (Minerd)

A Prescient Keynote Address?

As the closing keynote speaker for CSQ’s 2014 LA Investor Conference, Minerd proposed that the European Central Bank (ECB) could one day buy gold. At this point, Munster revisits Minerd’s comments and reintroduces the question: Is this still a possibility and what is your outlook for gold? Europeans aren’t concerned about the adverse consequences of negative interest rates, replies Minerd, and they are running out of things to buy in an environment that is helping reduce fragmentation. “It looks a lot like what we went through in the mid-1970s after we left the Bretton Woods agreement,”1 he points out. “Gold went from $35 to approximately $250 and then came crashing down before climbing to $900. I reminded people back when gold was around $1,900 that a retracement to $1,100 was very possible

CSQ.COM / SPRING 2016 - Q2

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C-SUITE QUARTERLY

R EA L ESTATE & FINANCE SCOT T MI NE R D

Prayer is his bookend when he wakes up and before he goes to bed. “I’m grateful for the blessings the Lord has given to me,” he says earnestly. “I realize, like all people, I fall short. I like to recommit daily to place myself in His care and live by His guidance.” Minerd acknowledges Guggenheim Partners has been successful beyond any of his expectations. “I can’t believe it’s by our own smarts that we’ve gotten here. It’s by some divine purpose.” One guiding principle that Minerd holds close is the idea that “Acceptance always comes before understanding.” Minerd explains, “The thing that we need to do as people is learn to accept things whether that’s circumstances that we’re in or the behavior of other people. Because until you learn to accept them, you don’t really have an opportunity to understand them. Everybody cries out for understanding. But when you turn it around and you talk to people, at their core, what they really want is to be accepted.” Minerd’s professional and philanthropic passions are driven by purpose. He remains grounded by the fact that half of Guggenheim’s clients are insurance companies, with an average policy size of $60,000. This serves as a constant reminder of how important it is to deliver results. “I think it really is trying to recognize what to do that’s right. If you try to treat people fairly and justly and be a good steward of the things that you’re given, you’ll find that the rewards will follow. Most people focus on the rewards. I think the world appreciates people trying to do the right thing,” Minerd said. Minerd’s beautiful mind, big heart, and compassionate soul have elevated him to a level of success that’s far beyond the reach of most. It is striking to see his evolution from a young man driven by money to one of the great financial minds of this generation, motivated by service. 

Real Estate & Finance Cover (Minerd) 1/ Guggenheim has 2,500 employees in 22 offices worldwide

If you try to treat people fairly and justly and be a good steward of the things that you’re given, you’ll find that the rewards will follow.

2/ Minerd giving the closing keynote at CSQ’s 2014 Investor Conference 3/ With C-Suite Advisor Bruce Munster 4/ With Rwandan President Paul Kagame 5/ With U.S. Ambassador to Japan Caroline Kennedy 6/ Guggenheim’s Santa Monica HQ is located on several floors on the corner of Wilshire and Ocean

While Minerd is an avid collector of a variety of art, it is the iconic art of Charles M. Schulz that especially touches him. Schulz’s work is revolutionary because the cartoonist addressed subjects such as therapy and midlife crisis and gave human qualities to animals. “Schultz was very inventive about finding a way to get below the radar screen,” says Minerd. “He - 76 -

was able to take on a lot of serious issues, whether they were social causes or life issues or even issues of faith.” You would think that someone who has had such an enormous impact and presence at pivotal moments in history would have an oversized ego. But Minerd exhibits an additional layer of depth when asked about his daily routine. CSQ.COM / SPRING 2016 - Q2

The Bretton Woods agreement developed at the United Nations Monetary and Financial Conference in New Hampshire in 1944 pegged currencies to gold and got the United States away from the gold standard. By 1973, though, the Bretton Woods system was replaced by the Nixon Administration as part of a series of measures referred to as the Nixon Shock based on freely floating flat currencies.

R EA L ESTATE & FINANCE C- SUI T E Q UOT E D

C-Suite

QUOTED

C-SUITE QUARTERLY

Practical advice and anecdotes from this edition’s Visionaries in Real Estate & Finance

“We love doing well financially by doing good at the same time – that’s been a guiding principle.” Edward G. Atsinger III

“Real estate afforded me the opportunity to be a major force in philanthropy in LA while I was also building my business.” Mark Weinstein

“As is true for us as individuals, businesses face the daily choice of taking the high road or the low road.” Andrei Cherny

“I want to be a role model for them – a mom who works, who’s productive, and who’s trying to make a difference in the world.” Nadine Watt

“I recognize that if you’re going to attract really great people, most great people are not just about money. Money’s important, but they’re about wanting to be part of something that is big that hopefully is fun, and culturally, that they’re in an environment that they really like and appreciate.” John Kilroy

C Suite Quoted

“I think real success is being motivated by trying to create something that will live beyond you. Something that will impact society.” Scott Minerd

“I wanted to be Sherry Lansing. I wanted to run a studio and I definitely thought I would end up in the entertainment business.” Nadine Watt

“We live in an age where we see ourselves taking advantage of the social aspects of technology.” Damian Langere

“I didn’t do this to start a company. I did this to solve a problem.” Shivani Siroya

“LAX is poised to recreate the passenger experience, but first the facilities have to be modernized. Tom Bradley International Terminal is a hallmark on par with a global experience for travelers, but there is still so much more to do.” Deborah Flint

“Global crowdfunding more than doubled in 2014 and then again in 2015, going from $6B to more than $34B over that period.” Jilliene Helman

CSQ.COM / SPRING 2016 - Q2

“I’ve come to believe I’ve benefited a lot from being in this country. I think there’s an obligation to give back and provide public service.” Scott Minerd

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800 Wilshire Blvd. www.crosscamp.us

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87 N. Raymond Ave.

Destinations Cover Page

DESTINATIONS

OF NOTE

NEW YORK MINUTE

DESTINATION: LA

The Ritz-Carlton Rancho Mirage (p. 86) is built into a 650-foot bluff within the Santa Rosa Mountains, offering guests breathtaking views of palm trees and snow-capped mountains. The choice is yours. / ritzcarlton.com

48 HOURS /GOLF GETAWAY 86

GOING GLOBAL

DESTINATIONS OF NOTE

C-SUITE QUARTERLY

SECOND HOMES

Inside and Out This year, turn the purchase of a second home into a sound investment financially – and personally – as you revel in the amenities on the land where you stake your claim

Aspiring for More in Aspen {Dancing Bear} Aspen, Colorado

Destinations Of Note

Country Road, Take Me Home {Whitetail Club} McCall, Idaho

Every season is Aspen season when you’re going “home” to Dancing Bear. The private residence club is nestled in the historic red-brick heart of downtown Aspen, steps away from world-class shopping and dining, the shoreside seclusion of a trout stream, Wagner Park and the Silver Queen Gondola. The way to experience Aspen is through Dancing Bear. Ownership comes with myriad activities and activity spaces such as a private movie theatre, game room, owners’ wine cellar, and a private rooftop terrace with 360-degree views of your surroundings. / dancingbearaspen.com

When Tom McCall founded the town of McCall, Idaho, he was likely smiling - ear to ear. The town (home to approximately 3,000) rests on the southern shore of shimmering Payette Lake. Nestled alongside the town is Whitetail Club. The Club is home to turnkey cabins and custom homes, a lakeside resort, The Cove (an award-winning spa), and an Andy North-designed golf course that was ranked one of the 100 best resort courses in the nation by Golf Digest. The 1,300-acre property provides access to a Fish & Swim Club, a trout pond in the summer and ice rink in the winter, tennis and fitness center, restaurant, and more. Located minutes from McCall airport and two hours from Boise, you will be afforded the small town Americana feel you’ve been yearning for. / whitetailclub.com

This Montage Is No Mirage

{Montage Residences Kapalua Bay} Maui, Hawaii Offering the best of both worlds (old and new, that is), the Montage Residences at Kapalua Bay are less than two years old, yet sit on the historic site of the legendary Kapalua Bay Hotel.The property offers residents access – among other things – to a pair of golf courses (one of which hosts the PGA Tour’s Hyundai Tournament of Champions) and direct access to Kapalua Bay Beach, once named “America’s Best Beach” by the Travel Channel. Each residence is three or four bedrooms and comes fully equipped with a private lanai and one-of-a-kind, expansive ocean view. Ownership affords you luxurious amenities, superior 24-hour service and security, and on-site authentic cuisine, celebrating the Hawaiian culture. / montageresidenceskapaluabay.com

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CSQ.COM / WINTER 2016 - Q2

TravelStore

DESTINATIONS NEW YORK MINUTE

C-SUITE QUARTERLY

New York Minute When you find yourself back in New York refer to our quarterly picks to make the most of your experience BY BRITTANY FUISZ

Wythe Hotel {Brooklyn}

CLASSIC

Industrial meets luxe in Brooklyn at the Wythe Hotel. Located on the Williamsburg waterfront with 72 rooms that offer floor-to-ceiling windows, the Wythe is just a short 10-minute taxi ride from downtown Manhattan. Once a textile factory, it has now taken ‘local’ to the next level with handmade ice cream in the expertly sourced minibars and Brooklyn made soaps in the bathrooms. Reynard restaurant, located on the bottom floor of the hotel, serves wood-fired seasonal dishes from 7am until midnight and is considered the focal point of the hotel and a meeting place for both Brooklynites and traveling guests. A glass rooftop bar offers more incredible views and a great place for live music or a drink with friends. / wythehotel.com wythehotel

Photo: Matthew Williams

STAY

Destinations NY Minute EAT

Shuko

{Lower Manhattan}

NEW

Nick Kim and Jimmy Lau spent time at the three Michelin starred Masa before launching their own enterprise, Shuko. Sitting at the bar is a must. While they offer two tables, it’s not nearly the same experience. Rap music and a clientele so fashionable they look like they’ve walked out of Jeffrey’s create a backdrop for the coolest omakase in Manhattan, and maybe the world. Choose between the sushi omakase ($135) or the sushi kaiseki ($175) and sit back and enjoy the show. Expect to see only the best quality ingredients with modern pairings that take your breath away with every bite. Be sure to finish with the unexpected apple pie à la mode. / shukonyc.com shukonyc

SHOP

Illesteva {Soho}

NEW

For handmade Italian shades that will keep you looking on trend, head to Illesteva in Soho. White-washed brick and modern wooden displays hold a wide range of frames from minimalist to the classic horn rim. A favorite among celebrities, pop by the store to see why. / llesteva.com illesteva

DESTINATION: ONLINE Visit csq.com/nyminute to find out about additional New York Minute selections.

EAT

SHOP

STAY

{Midtown} / milos.ca estiatorio_milos

{Nolita} / larssonandjennings.com larssonjennings

{Downtown} / riffdowntown.com

Milos

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Larsson & Jennings

Riff Hotel

CSQ.COM / SPRING 2016 - Q2

Wink

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DESTINATIONS DESTINATION: LA

DESTINATION: LA CULVER CITY

East Meets West Stretching from Lincoln to La Cienega, the Culver City of old has been reborn thanks to some of LA’s best new restaurants, innovative startups, and a real estate development boom driven by the Metro’s Expo Line

BY THE NUMBERS 4.99 Square miles 36.6 Median age 47.6% Residents with a bachelor’s degree or higher 17,168 Households 38,000 Population $78,488 Average household income $793,600 Median home value

Then and Now In 1917, Harry Culver officially incorporated Culver City and added the now famous slogan,“All roads lead to Culver City.” Quicker than a Kansas tornado, Culver City became the center of the entertainment industry. Today, Sony Pictures Studios and The Culver Studios continue the legacy created by studio greats such as Cecil B. DeMille, Louis B. Mayer, and Lucille Ball and Desi Arnaz. In addition to a rich film history, the area is also home to a variety of entertainment networks including NPR and the NFL Network. Apart from the entertainment industry, Culver City has always been at the forefront of innovation, serving as the birthplace of Howard Hughes’ famous Spruce Goose. Today, the area is home to numerous creative businesses and cutting-edge companies such as Atom Factory, Beats by Dre, Crackle, Jukin Media, Maker Studios, Scopely, SnackNation, and more.

TOP EMPLOYERS

Destinations LA (Culver City)

WHERE TO EAT MAPLE BLOCK MEAT CO.

Maple Block Meat Co. pays respect to the deep roots of American Barbecue. Specializing in authentic, wood-smoked meats prepared with classic techniques that incorporate modern flavor profiles, Maple Block meats are some of the city’s best. / mapleblockmeat.com LUKSHON

Brought to life by one of the city’s under-theradar restaurateurs, Sang Yoon, Lukshon offers guests a modern take on authentic Southeast Asian Cuisine. From spicy chicken pops and Bhutanese red rice to cured lamb belly and Hawaiian Butterfish, Yoon has concocted one of the city’s best menus. / lukshon.com PICNIC

Opened in December 2015, PICNIC comes to Culver City via Brad Zioans (an early investor in Lemonade). Serving up locally sourced, seasonal cuisine that evolves with the micro-seasons of Southern California, no two PICNIC meals will be the same. / picnic.la

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CSQ.COM / SPRING 2016 - Q2

COMPANY

EMPLOYEES

Sony Pictures Entertainment

2,500

Westfield

1,500

City of Culver City

1,193

NFL Media

450

Maker Studios

350

C-SUITE QUARTERLY

WHERE TO DRINK CITY TAVERN

Putting the power in the pourer’s hands, City Tavern is California’s first establishment to offer patrons the ability to pour their own beer via a computerized draft beer dispensing system. / citytavernculvercity.com FATHER’S OFFICE

Also courtesy of Sang Yoon, Father’s Office is acclaimed and adored for the “Office Burger,” one of the nation’s best (LA Weekly, Esquire). We suggest you give the craft brew selection of over 55 local and small-batch varieties a try. / fathersoffice.com BLIND BARBER

Bitten by the Manifest Destiny Bug, the Blind Barber Culver City headed out west - leaving its sisters behind in Manhattan and Brooklyn. An actual barbershop, the real fun lies in back - which is accessed through an unmarked door at the barbershop’s rear. / blindbarber.com

WHAT TO SEE HELMS BAKERY DISTRICT

Anchoring the nearly 1 million square feet of construction underway in Culver City is Platform - opening this spring. Comprised of 120,000 square feet and five buildings, Platform will be home to specialty boutiques, world-class chefs, and creative agencies. / platformla.com

Photo: Katie Gibbs

Eric Owen Moss Eric Owen Moss Architects

work here with the premise that architecture itself could be a draw in the area. The area was a dump and a mess. It had a life and a history that went away, and the future was a question mark. The Smiths answered the question with architecture. Beats moving in was the exclamation point on the sentence. Another exclamation point was the Expo Line.

Destinations LA (Culver City)

A family-owned bakery in 1931 known for daily deliveries - the Helms Bakery remains, cherished as an architectural and local landmark.Today, as Sang Yoon prepares to reopen the Bakery, the Helms Bakery District boasts a unique collection of design and home furnishing stores as well as award-winning restaurants. / helmsbakerydistrict.com PLATFORM

Native Angeleno Eric Owen Moss opened his practice in 1973 in Santa Monica, but for more than two decades, the architect has worked closely in Culver City with husband-and-wife duo Frederick and Laura Samitaur Smith. While the Smiths are responsible for the ideas for revitalizing Culver City, it is Moss who has executed them. CSQ How has Culver City changed over the years, and why do you think it has become such a hotspot? Eric Owen Moss Culver City was a dying industrial and manufacturing zone when we started working here 20 years ago.… [T]he occasion was, we were in Santa Monica and rent started going up pre–Silicon Beach. We found a big warehouse in Culver City and that brought us over here. If you look at the area … and what’s going on near National, Venice and Washington [boulevards] with all the restaurants...it’s a very, very different place. What started to happen over a period of time was that you had Nike, Converse, AOL, Ogilvy, Kodak, Anonymous Content and I think the kicker was when Dr. Dre and Beats came in here and Apple bought them. When that happened the whole thing was 179 degrees from where it was before, and that happened over a period of 20 years. Frederick and Laurie Smith started to CSQ.COM / SPRING 2016 - Q2

CSQ How do you see Culver City continuing to evolve over the next 5 or 10 years? EOM I think there is room for further expansion. The scale of the projects is what has changed and the iffy-ness of the area has gone away. It’s a confirmed destination. The case has now been made and in some ways that’s certainly good in a business sense. What we don’t want it to do is take the edginess away. The scale will change and the projects will get bigger. The area is likely to become more desirable; new buildings will replace old buildings. There is, however, a pedigree here of rehabbing existing buildings and adding to them. We’ve done some of that, but we’ve done more new work. CSQ Your work has a very distinctively style. From where do you draw inspiration? EOM I’ve never known how to answer that question. Things inspire me. [The shooting at] Charlie Hebdo inspired me and the death of Alan Kurdi inspired me. I don’t want to emulate anything literally but the spirit of interrogating your life applies to architecture. I like the idea of not being intimidated by idiocy. We’re looking and wondering and wandering. - 85 -

DESTINATIONS 48 HOURS / GOLF GETAWAY

Palm Springs Eternal A mere two hours from Los Angeles, the Coachella Valley endures as a modern oasis rich with history that offers year-round leisure steeped in sports and entertainment BY JILL BRUNNER

efore there were lively casinos and world-class museums and decadent luxury resorts, there were untouched thermal springs and majestic canyons traversed by resilient Native Americans. Fortunately for today’s visitors, the pristine nature and historical legacy have been preserved, yet the Coachella Valley area remains a worldclass travel destination that offers guests every modern convenience. The Coachella Valley’s first inhabitants were ancestors of today’s Agua Caliente Band of Cahuilla Indians, more than 2,000 years ago. In 1884, Judge John Guthrie McCallum of San Francisco arrived in Palm Springs with his family after hearing of the warm, dry climate and the healing properties of the “Agua Caliente” hot springs. McCallum, who dreamed of starting a desert colony, hired a surveyor to plan the town of “Palm City” and purchased land from Southern Pacific to build an elaborate aqueduct. His work to bring water to the Coachella Valley spurred its cultivation as a rich agricultural region. By the 1890s, Palm Springs and the surrounding area were effectively branded as a recreational oasis, and in the 1900s it began drawing tourists afflicted with conditions that required dry heat for treatment.

within two hours from the studio in case of last-minute film/photo shoots. The biggest stars of the 1940s, ’50s and ’60s— Frank Sinatra, Bob Hope, Marilyn Monroe, Cary Grant, Elizabeth Taylor—stayed and purchased hideaway homes in Palm Springs; the allure remains strong to this day, as Oscar winner Leonardo DiCaprio’s 7,000-sq.-ft. spread is available to rent, starting at $4,500/night. Numerous notable public figures were regulars at the former Annenberg Estate, now called Sunnylands. Located in Rancho Mirage, which declared it an historic site in 1990, the 200-acre property served as Walter and Leonore Annenberg’s winter retreat beginning in 1966. Check out the public visitor center, a 17,000-square-foot building that offers educational and historic information as well as nine acres of desert gardens, including more than 70 species and 53,000 individual plants. Known as the West Coast Camp David, eight U.S. presidents have visited the estate, including the Annenbergs’ close friends Ronald and Nancy Reagan, who celebrated every New Year’s there for 18 years. sunnylands.org

décor. Nestled within the Santa Rosa Mountain range, this esteemed luxury resort is a sumptuous retreat where both palm trees and snow-capped mountains comprise the enchanting visuals. More enchanting still is the attentive service guests receive from the welcoming hotel staff. From the glass of champagne upon check-in to the attractively packaged s’mores ingredients delivered to your terrace fire pit, this exceptional hotel takes every opportunity to surprise and delight visitors. Guest rooms and suites feature private balconies and patios, cast-iron soaking tubs, and billowy cotton linens, while a full-service salon and spa offer decadent treatments. Guests seeking a heightened level of opulence, exclusivity, and personalized service will appreciate the continuous daily culinary offerings and dedicated concierge offered by The Ritz-Carlton Club® Lounge. ritzcarlton.com Those seeking additional avenues for artistic appreciation should make a beeline to the heart of downtown Palm Springs, where the Palm Springs Art Museum’s sophisticated collection rivals that of larger metropolitan museums, with works by Chagall, Picasso, Warhol, Lichtenstein, Rauschenberg, and more. psmuseum.org The Palm Springs Air Museum is dedicated to educating the public about the role air power played in preserving the American way of life, with a focus on aircraft from World War II as well as the Korean and Vietnam wars. Many docents are even veterans willing to share their experiences with visitors. palmspringsairmuseum.org

Destinations 48 Hours (Palm Springs)

Celebrity Magnet

Since the 1920s, Palm Springs has been Hollywood’s desert playground for the glitterati to relax and escape from the stresses of showbiz. The legendary “TwoHour Rule” of Hollywood studios put Palm Springs on the map as a perfect getaway; contracted actors had to be available - 86 -

Ritzy Architecture Meets Natural Beauty

Early on, architectural modernists flocked to Palm Springs with commissions from the stars, using the city to explore architectural innovations and exotic back-tothe-land experiences. Buildings today still echo the region’s distinct architectural heritage. The Ritz-Carlton, Rancho Mirage pays tribute to the hotel’s desert surroundings, incorporating elements of stone, wood, and fire into their elegant CSQ.COM / SPRING 2016 - Q2

C-SUITE QUARTERLY

Entertaining All the Options

A calendar of events, from world-class golf and tennis events to multi-weekend music festivals, has ensured the Coachella Valley’s relevance for Millennials. The Palm Springs International Film Festival is held every January, but celebrities such as Clint Eastwood, John Travolta, and Anne Hathaway frequent the area year-round, keeping it in vogue. With more golf courses than any other region in California - the 100th course was opened in 2001 - Coachella Valley is the state’s most popular golf vacation destination, which is unsurprising given the median resident age of nearly 52 years old. The area is also home to the PGA Tour’s Humana Challenge in partnership with the Clinton Foundation (formerly the Bob Hope Chrysler Classic), the LPGA’s ANA Inspiration, and the Canadian Tour’s Desert Dunes Classic. Nostalgia buffs will appreciate Big League Dreams Sports Park, which features scaled-down replicas of famous ballparks such as Boston’s Fenway Park and Chicago’s Wrigley Field. If baseball isn’t your thing, hit the soccer fields or playground, or have a meal in the Stadium Club, which keeps armchair Olympians entertained with 12 televisions to watch the big game, a perfect view of all three stadiums, and an arcade. bigleaguedreams.com The Coachella Valley Music and Arts Annual Festival, and Stagecoach Country

Music Festival are responsible for three consecutive weekends of sweeping sonic bliss. Between the two festivals, more than 220 musical acts perform, drawing myriad music fans to the area. Coachella runs for two weekends in mid-April, and Stagecoach returns to the Empire Polo Club in Indio for its 10th year April 29–May 1. All that film watching and festival going can really work up an appetite, and the Palm Springs dining scene does not disappoint. Palm Springs Desert Resorts Restaurant Week is held every June, featuring 10 days of dining at over 100 restaurants in the Coachella Valley. Culinary standouts include The Ritz-Carlton’s State Fare Bar + Kitchen, where the avocado fries and mouth-watering State Fare Prime Burger are not to be missed, and The Edge steakhouse, an elegant cliffside fine dining option featuring its own dry aging room and a stellar international wine list. For animal lovers and conservationists of all ages, the Living Desert Zoo houses a diverse selection of African and North American species, including cheetahs, armadillos, wolves, bobcats, and wild dogs. Participate in one of the twice-daily giraffe feedings or take a camel ride to get closer to the animals than you could at a typical zoo. livingdesert.org Cheetahs are known to be fast, but drivers at the BMW Performance Driving School might (insert pun here) give them a run for their money. Put your skills to the test with team of expert BMW driver

training instructors and a state-of-theart test track. Choose from the Drivers program, Teen school, M school or Motorcycle. bmwusa.com/standard/content/ explore/experience/pds The most incredible view of the Coachella Valley is undoubtedly from the top of the Palm Springs Aerial Tramway. The journey starts in Chino Canyon, where you begin with a thrilling (or harrowing, depending on your proclivity) ride in the world’s largest rotating aerial tramcar (cable car). Experience a condor’s eye view of the greater Palm Springs area during the surprisingly swift ascent, soaring 6,000 feet up a steep incline to Mountain Station (8,516 feet elevation). Passengers glide through five unique life zones, from the Mexican Sonoran Desert to an Alpine wilderness, to reach the top and access Mt. San Jacinto State Park’s 14,000 acres of pristine land and 54 miles of hiking trails. pstramway.com 

Destinations 51.6 71 48 Hours (Palm Springs) 1/ Poolside with a view at the Ritz-Carlton, Rancho Mirage 2/ The hotel offers the business guest more than 16,000 sq. ft. of state-of-theart meeting space 3/ Nearly all guest rooms feature a private balcony 4/ Room layouts offer six different tiers of luxury

PALM SPRINGS BY THE NUMBERS Median age

Average high temperature, January

108 Average high temperature, July 46,281 Population (as of 2013)

FESTIVAL SEASON COACHELLA MUSIC FESTIVAL

April 15-17, and April 22-24 More than 165 acts, including Ellie Goulding, Guns ‘n’ Roses, Ice Cube, LCD Soundsystem, Lush, Sia, Silversun Pickups, Sufjan Stevens, The Chainsmokers, The Kills, Pete Yorn / coachella.com STAGECOACH COUNTRY MUSIC FESTIVAL

April 29–May 1 More than 60 acts, including Luke Bryan, Eric Church, The Doobie Brothers, John Fogerty, Emmylou Harris, Little Big Town, Old Dominion, Carrie Underwood / stagecoachfestival.com

ONLINE 3

Visit csq.com for the author’s extended look at Palm Springs and the surrounding desert.

CSQ.COM / SPRING 2016 - Q2

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DESTINATIONS 48 HOURS / GOLF GETAWAY

A Short Drive to Golfer’s Paradise The desert has its share of seasonal draws in the form of festivals that celebrate music, food, film, and more, but golf is what makes the area a consistent destination

Destinations Golf Getaway (Palm Springs)

BY RYAN BYERS

ith upwards of 120 golf courses – and more in the works – the Coachella Valley (which includes Palm Springs, Palm Desert, and La Quinta) harbors one of the highest concentrations of golf courses in the world. With all of these options comes the task of deciding where you want to tee it up. Talk about first-world problems. However, if your visit is limited to a long weekend, here are three courses that should not be missed. Designed by the one and only Arnold Palmer, SilverRock Golf Course has been challenging top-tier golfers since opening for play in 2005. The course, set against the breathtaking backdrop of the Santa Rosa Mountains, is quite lengthy from the furthest set of tees, stretching out to 7,578 yards. The course offers six different sets of tees to accommodate different skill levels. With massive native bunkers, numerous large water hazards, and quick tiered greens, SilverRock will challenge your game while you are enjoying the natural beauty of the course. Don’t be surprised if a gallery made up of bighorn sheep - 88 -

2 CSQ.COM / SPRING 2016 - Q2

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3 1/ The 17th hole at PGA West Nicklaus Tournament Course 2/On approach at The La Quinta Resort & Spa 3/ The 11th hole at Silver Rock

designer, Pete Dye himself, “Golf is not a fair game, so why build a golf course fair?”pgawest.com After experiencing some of the greatest golf the California desert has to offer, take a short drive down the road and you will arrive at a truly relaxing desert hideaway, The La Quinta Resort and Spa. Rich in history, La Quinta Resort was built in the early 1920s by San Francisco businessman Walter H. Morgan. The lush, 45-acre grounds are set at the foot of the Santa Rosa Mountains, offering spectacular views from around the entire resort. Along with the championship golf courses, La Quinta is one big playground, with world-class tennis, fine dining, and blissful spa experiences. With 41 different pools, including a 21-and-over adult pool, you are sure to find your perfect hideaway to relax in the sun. There are three phenomenal options for dining on the resort. If you are looking for authentic Mexican cuisine, Adobe Grill is a must try. Famed for its award-winning tamales and signature margaritas, Adobe Grill also offers live entertainment on its sprawling outdoor patio. Open for breakfast, lunch as well as dinner, TWENTY6 is more of your traditional American cuisine. With a very relaxed indoor-outdoor atmosphere, this modern American bistro uses locally sourced, seasonal ingredients to create a fantastic menu. Morgan’s in the desert is La Quinta’s out-of-this-world signature dining venue. Award-winning chef Jimmy Schmidt uses local ingredients, fusing them with contemporary flair to create a unique dining experience. Set in a comfortable and stylish environment, with both indoor and outdoor seating, Morgan’s offers the finest meats, fish, and chicken dishes that the Coachella Valley has to offer. With nightly entertainment at the piano bar and a cozy outdoor patio with a large fire pit, you might find yourself lingering long after your meal has ended. Your visit is not complete until you visit the world-class Spa La Quinta, which offers a variety of unique indoor and outdoor treatments including specialized treatments such as the PGA WEST Golf Massage. After your treatment, enjoy a private garden tub, pool, steam, and sauna. Chances are good that you’ll leave Spa La Quinta rejuvenated and completely relaxed. With its world-class golf courses, tennis facility, spa, and fine dining, it is no wonder that La Quinta Resort and Spa continues to be a favorite getaway for travelers around the world, as well as Hollywood’s elite. laquintaresort.com

Destinations Golf Getaway (Palm Springs)

4/The 8th hole at TPC Stadium Course at PGA West

gathers to watch you play. The bighorn sheep graze the mountainsides and often wander onto the course. Owned by the City of La Quinta and managed by Landmark Golf Management, SilverRock hosted the PGA Tour’s Bob Hope Classic from 2008-2011. As of now SilverRock sits on its own as an 18-hole course, but plans are underway for another 18-hole championship golf course, a world-class practice center, retail venues, and boutique hotels. silverrock.org Golf legend Jack Nicklaus’ phenomenal play on the PGA Tour is matched by his challenging golf course designs, which are known to include an abundance of forced shots over water, a liberal smattering of bunkers, and multiple riskreward holes. The PGA West Nicklaus Tournament Course lives up to his reputation. At just over 7,200 yards, the Nicklaus Tournament Course features two island greens, large rolling fairways, and many multi-tiered putting surfaces. The enormous green that is shared between the 9th and 18th holes features huge undulations and is surrounded by bunkers and a large body of water, making for spectacular views from the state-of-theart clubhouse that sits in the background.

The PGA West Nicklaus Tournament Course has played host to The Grand Slam of Golf, Wendy’s Tree Tour Challenge, The Humana Challenge (formerly known as the Bob Hope Classic), and is home to the PGA’s Tour Qualifying School. pgawest.com Finally, TPC Stadium Course at PGA West offers a formidable finish to our short list of must-play courses. Designed by Pete Dye, the course earned the distinction of being the 4th toughest course in America in Golf Digest’s “Top 50 Toughest Courses in America.” The 7,300-yard course has an extremely high course rating at 76.1. The Stadium Course delivers highly demanding approach shots to the greens that get very tricky if you fail to end up on the putting surface. As you strategize yourself around the course, there seem to be adrenaline rushes around every corner, none as big as when you enter the par 3, 17th-tee box. The hole is named Alcatraz as the green is an island. It is not an overly long par 3 at just under 170 yards, but it is quite intimidating; if you miss the green, you’re in the water. Bring your patience as well as a lot of golf balls when you come to play TPC Stadium Course as it is one of golf’s greatest tests. In the words of the course’s CSQ.COM / SPRING 2016 - Q2

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DESTINATIONS GOING GLOBAL

A Small Slice of Island Life

Arrival in Style

Offering the best in luxurious downtime, the tiny Caribbean enclave of St. Barts may just have you coming back for seconds BY BRITTANY FUISZ

After landing at St. Maarten’s Princess Juliana International Airport (SXM), the adventure begins. Book a private plane or a small charter to take you on a short 10-minute flight to St. Barts. You’ll likely hold your breath as you come in for landing if you fly; due to a shorter airstrip, only small planes are allowed to land on the island. The descent is steep but beautiful, offering your first view of this Caribbean wonderland. Luxury accommodations are plentiful on the island. Le Sereno is the perfect property for those looking for a private, serene hotel experience. The exclusivity begins at SXM, where a VIP agent arranged by the hotel greets you. The agent seamlessly handles your baggage transport, personally escorting you past the customs line and directly onto your next flight. Transferring flights has never been easier. The vast majority of the 37 suites and villas at the Le Sereno are beachfront, and many boast their own terrace overlooking the sea. The hotel is situated on Grand Cul de Sac Lagoon, one of the most ideal spots on the island. Start your morning with heavenly eggs in your room or in the open-air, beachfront restaurant. When you have had your fill of ocean fun, the pool is just warm enough to feel like a treat and offers postcard-worthy oceanfront views. The hotel’s spacious suites sport contemporary, minimalist decor by Parisian designer Christian Liaigre. Villa rentals are another fantastic option. Perfect for families, larger groups or couples wanting more privacy and a personalized island holiday, there are 400 villas available for rent with the assistance of the seasoned villa specialists at WIMCO. For over 30 years, WIMCO has been helping travelers organize the quintessential St. Barts stay. No request is too small or too grand for this team. From flights to and from the island, to an in-villa Apple TV or treadmill, to gourmet breakfast delivered daily, WIMCO is devoted to ensuring the client is satisfied. Larger villas are perfect for company retreats, offering the group a private place for meetings, entertainment, and activities. Villa WV CMA is a sprawling property in Petit Cul de Sac with six bedrooms, two of which are master suites, furniture from B&B Italia, a gym, a screening room, and stunning vistas from every room. Perfect for a family of four, Villa VW ECO is one of the most beloved villas on the island. Close to the popular Gouverneur

Destinations Going Global: St. Barts

ach time I vacation on St. Barts, I repeatedly answer the question, “Where are you from?” And each time, I am met with the now-familiar look of surprise and the comment, “You come all the way from LA?” I do, and it is absolutely worth the trip. This is one journey worth repeating. Where else can one find warm turquoise waters, world-class restaurants, over-the-top shopping with an abundance of designer stores like Hermes and Cartier, and French culture? It may be a seven-plus-hour flight with a brief stop in Miami, but the couple extra hours in the air are worth the trip to paradise. High season runs from the middle of - 90 -

December through April. It’s when the eight-mile-square island is the busiest and East Coasters flee the harsh winter for the warm waters of the Caribbean. While it’s the more lively time to visit the island, it is also more expensive. Prices double over New Year’s as super yachts and celebrities compete for the best real estate. There is a reason that, for decades, jet setters have chosen French-speaking St. Barts as their island utopia. White sand beaches are an escape even for celebrities like Cindy Crawford, who calls Malibu home. Mariah Carey, Gisele Bundchen, Tom Cruise, Harrison Ford, Beyoncé Knowles, and Jay-Z are just a few of the island’s frequent visitors. CSQ.COM / SPRING 2016 - Q2

C-SUITE QUARTERLY

ONLINE Visit csq.com to discover for the author’s extended look at St. Barts culinary and outdoor adventures. Beach and not far from town, clients never want to leave this home built into volcanic rock with sculptural walls and desert gardens. For a smaller group, Villa VM MBA is a two-bedroom home located in quiet Pointe Milou, known for its spectacular sunsets. Mention CSQ upon arrival to receive a special amenity.

Incredible Island Cuisine

Dining on the island is an affair to remember. Lunches are casual, often with your feet in the sand and a glass of rosè in hand. The Le Toiny Beach Club is a new destination on the eastern side of the island. Complete with a boutique, a gorgeous restaurant perfect for lunch, and hammocks for lounging the day away, the club also serves vegetable crudités with three homemade dips and mahi mahi that might be the best you will ever taste. Indigo on the Beach is a new addition to the Le Gunahani Hotel. Relaxed but chic, the restaurant has views of the ocean from every angle. A club sandwich three tiers high is perfectly executed with a side of thick, salty fries, while a side of baked eggplant and tomato is an unexpectedly creamy, decadent accompaniment. Just a few minutes from Saline beach sits newcomer Tamarin. Named after the stunning Tamarin tree that welcomes you to the lush greens of lily pads and parrots, this secret garden is an island must. Perched high above the island’s capital Gustavia sits the Peruvian hotspot Bonito. Overlooking the harbor, Bonito welcomes visitors from all over the world who delight in their ceviches, tiraditos, and hand-crafted cocktails to the beat of a live DJ. While the entire menu is incredible, do not miss the sea bass for a main entree. La Guérite has only been open a few short months and is already an island favorite. Modeled after the original location near Cannes, La Guérite brings Greek gastronomy to the port of Gustavia, beside small fishing boats and mega yachts alike. The atmosphere is casually elegant, with all-white traditional décor that is welcoming but fun.

everything from bathing suits to spices to linens. For 30 years, Ligne St. Barth has been creating beautiful bath products that epitomize the island spirit, help heal sunburns, and make for great gifts. La Casa del Habano offers 100% Cuban cigars and Rivieras Leisure Shoes’ newly opened boutique will have you looking as effortlessly comfortable and chic as you feel. The beauty of St. Barts has the ability to appeal to every type of traveler. Whether you are traveling with your significant other, family and friends, or seeking a solo adventure, the island is sure to provide the ideal mix of tranquility and fun.

ST. BARTS GETTING THERE Major airlines offer flights to Juliana Airport in Dutch St. Maarten where you then fly into St. Barts (SBH) MILES FROM DTLA 3,570 HISTORY Colonized in 1648, St. Barts has been an independent overseas collectivity of France since 2003. POPULATION 9,000 CURRENCY Euro exchange rate 1.3 USD to 1 euro (as of April 1, 2016) GDP €179M in 1999 TOURISM 200,000 visitors per year

Destinations Going Global: St. Barts 2

3 1/ Overlooking the sea at dusk from Le Sereno 2/ Le Sereno offers private beachfront suites and villas 3/ The swimming pool at Villa Casa Del Mar on St. Barts

Shopping Spots

Shopping in St. Barts is easily the best island shopping in the world, and all at duty free prices. Big brands like Louis Vuitton, Bulgari, and Ralph Lauren are lined up along Gustavia’s main stretch and most brands offer items exclusive to the island. Local boutiques add color, specializing in

4/ The Lomo Saltado at Bonito is a braised beef tenderloin with a yellow potato cake and quail eggs 4

CSQ.COM / SPRING 2016 - Q2

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ACCOUNTING

94 Solid Fundamentals Point to Another Strong Year for Commercial Real Estate SCOTT M. SACHS, CPA

REGIONAL MANAGING PARTNER – WEST REGION COHN REZNICK LLP Los Angeles, CA

BUSINESS SERVICES

96 Harnessing the Opportunities of Digital Transportation KEVIN S. PARIKH, ESQ.

GLOBAL CEO & SENIOR PARTNER AVASANT El Segundo, CA

CSA TOC

FINANCE

98 It’s a Family Affair JIM FREEDMAN

CHAIRMAN & MANAGING DIRECTOR

JONATHAN ZUCKER

HEAD OF CAPITAL MARKETS GROUP INTREPID INVESTMENT BANKERS Los Angeles, CA

100 Fundamentals, Technicals, and Revisiting the Queen BRUCE MUNSTER

MANAGING DIRECTOR - PRIVATE WEALTH MANAGEMENT MERRILL LYNCH PRIVATE BANKING & INVESTMENT GROUP Los Angeles, CA

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102 Growing Pains Are Real DANONE SIMPSON

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104 Love in the Workplace JASON HUGHES

PRESIDENT & CEO HUGHES MARINO, INC. CORPORATE REAL ESTATE ADVISORS Los Angeles, CA

For information on becoming a C-Suite Advisor, please contact us at advisory@csq.com CSQ.COM / SPRING 2016 - Q2

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ACCOUNTING BUSINESS

| REAL ESTATE |

Solid Fundamentals Point to Another Strong Year for Commercial Real Estate Solid job growth and the continued influx of Millennial Money leave reason for optimism

Scott M. Sachs, CPA

Regional Managing Partner West Region CohnReznick LLP Los Angeles, CA Mr. Sachs’ career includes significant experience in both initial and secondary public offerings, debt and equity financing, and acquisition and divestiture analysis. He is actively involved in such organizations as the Boys & Girls Club of the West Valley, the Los Angeles Jewish Home, the Girl Scout Council, The Entrepreneurship Institute, and Junior Achievement. Scott is also a member of the Ernst & Young LLP Alumni Association of Southern California board of directors. A graduate of the University of California at Berkeley, Mr. Sachs is a member of Cer tified Public Accountants and the California Society of Public Accountants.

2015 was a banner year for U.S. commercial real estate whether you were an investor, developer, owner/ operator, or construction contractor. Through the first half of 2015, the U.S. saw $232 billion of investment sales across property types, outpacing peak, pre-recession investment levels from 2007. Seven of the 10 most active global markets for investment sales were in the U.S. Through the first half of 2015, $54.1 billion in commercial real estate investment capital was raised from 96 separate funds. North America focused funds raised $20 billion, constituting roughly 46% of all volume. With Foreign Investment in Real Property Tax Act (FIRPTA) relief signed into law last December, there should be more foreign capital entering the U.S. markets, particularly with the relief provided to foreign pension funds. Of the $78 billion in foreign investment (approximately 16% of U.S. investment activity), only $7.5 billion was from foreign pensions. Despite all of this positive news, the industry continues to have some insiders suggesting that a “significant” market correction may occur in 2016. Here is why, we believe, they are wrong.

of the estimated 22 million households that will be formed from 2010-2030, 59% will rent and 41% will own. Today, 64% of American families own their homes (although this number has been steadily dropping). Multifamily fundamentals today have never been better. Nationwide, occupancy rates are at 94.6%. Renewal rates for third quarter 2015 were 5.4% higher than the previous year. Effective rents grew by 5.9%. At the end of the second quarter last year, there were 421,000 multifamily units under construction with multifamily starts at the highest level since the late 1980s. None of the major rental markets are seeing systemic over-building, and rental demand and absorption continue to outpace supply. On the investor side, we saw a huge shift toward institutional investors in 2015 fueled by institutional property managers, REITs, pension funds, and private equity funds. Nearly three million rental units are currently owned by institutional investors.

CSA Scott Sachs

PHONE

818/205.2609 EMAIL

scott.sachs@cohnreznick.com WEBSITE

cohnreznick.com ADDRESS

1900 Avenue of the Stars 28th Floor Los Angeles, CA 90067

Multifamily: Strong and Getting Stronger

The multifamily sector has, for several years, been a shining star for commercial real estate. This should be the case once again in 2016 as millennials continue to be the catalyst for America’s fundamental shift away from home ownership and towards renting. The Harvard University study, “State of the Nation’s Housing 2015,” reports that,

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CSQ.COM / SPRING 2016 - Q2

Continued Job Growth Will Fuel Office Sector

According to the Bureau of Labor Statistics, nearly 2.7 million jobs were created in 2015. As both the economy and the job market continue to improve, so should the prospects for the office sector in 2016. With occupancy rates and rents in many markets reflecting increases, foreign demand for acquisitions of US office properties had increased by 57% through the middle of 2015 to the highest level seen since 2007. Chinese and South Korea investors accounted for most of the activity, focusing on key urban hubs

such as New York, Boston, Seattle, and Washington, DC. But with secondary markets trading at discounts of 200 basis points to primary markets, the office sector is also hot in markets like Atlanta, New Jersey, Philadelphia, San Diego, and Phoenix, with the focus being on core Class A assets.

Net Lease Activity Will Continue Its Ramp-Up

Through the third quarter of 2015, the net lease sector was up 16% year over year in transaction volume with 2015 on pace to be the highest transaction volume on record. REITs have typically been the largest buyers of net leased assets. However, institutions were twice as active as REIT-buyers year to date. Retail sale leasebacks increased 179% year over year, which is reflective of monetization strategies being adopted by retailers. Foreign investment in net leased segment quadrupled since 2013. Spain, South Korea, UK, Brazil and Australia are the most active.

Fed’s Conservative Monetary Policy Will Calm Investors

To no one’s surprise, the long-anticipated hike in interest rates finally happened on December 16, 2015. The Federal Reserve raised its key interest rate from a range of 0% to 0.25% to a range of 0.25% to 0.5%. While an interest rate increase is always of concern to the real estate markets, funds had been anticipating a modest increase for some time– and prepared for it. Investors’ return expectations were addressed, investment strategies were strategically modified, and capital raising goals and sources were likewise reexamined and adjusted, when necessary. For the commercial real estate industry, despite some global turmoil and market uncertainty, 2015 turned out to be a year of growth and a year in which most expectations were met—a year in which opportunities recognized and seized yielded phenomenal benefits to savvy operators and entrepreneurs. While caution is always prudent, there is no reason not to remain optimistic looking forward into 2016.

CSA Scott Sachs / Socal IP

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CSQ.COM / SPRING 2016 - Q2

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BUSINESS SERVICES MANAGEMENT CONSULTING

| DIGITAL TRANSFORMATION |

Harnessing the Opportunities of Digital Transformation Organizations need the right strategy and solutions to drive revenue growth through digital technology

Kevin S. Parikh, Esq.

Global CEO & Senior Partner Avasant El Segundo, CA Kevin Parikh is a noted exper t and thought leader on digital and business transformation. He has published numerous widely-distributed white papers, ar ticles and texts on the subject and authored a book on digital enterprise transformation. Kevin also advises both private and public sector clients on risk management, corporate governance, and service and vendor negotiations. Prior to joining Avasant, Kevin led the Global Sourcing practice for Gar tner Consulting. He has a bachelor’s degree in Economics and Political Science from the University of California Davis and received his J.D. from American University.

Businesses have traditionally embraced new technology in order to create efficiencies and lower costs. However, the stakes and rewards are significantly higher in the digital era. Companies have an unprecedented opportunity to increase revenue by engaging digitally savvy consumers at every touchpoint across the customer experience lifecycle. At this point, going digital is no longer optional, it’s essential for survival. If established companies want to stay in business, executives need to adopt new strategies and technologies or risk obsolescence. If your organization does not have a clear digital strategy, there’s no time to lose. Here are some important things to consider as you create a roadmap for your transformational journey.

Survey the Competitive Landscape

Scanning the market and benchmarking your organization against your peers can reveal ways to advance and elevate your company’s position. In fact, companies often uncover untapped opportunities to spur innovation and grow margins by altering business processes and models. For example, investing in digital technology could help you leapfrog a competitor that lacks the capabilities to nurture relationships with digital customers. Or, it could drive down the cost of materials and improve core supply chain functions. Of course, you will not know where you stand unless you take a deep dive into your competitors’ costs, offerings, and processes. A trained expert can help you select the appropriate metrics and run scenario analysis to examine what changes would create the best impact and align with overarching business objectives.

CSA Kevin Parikh

PHONE

310/643.3030 310/643.3032 EMAIL

jemie.saekoo@avasant.com WEBSITE

avasant.com ADDRESS

1960 East Grand Ave. Suite 1050 El Segundo, CA 90245Los Angeles, CA 90067

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Understand Your Customers’ Needs and Expectations

At 83 million strong, Millennials not only represent the largest share of our workforce, they spend approximately $600 billion on goods and services annually. Whether they are engaging with friends, retailers or employers, this digitally entrenched generation craves and expects a fluid, interactive experience. Identifying what matters to Millennials and other target audiences is the first step in creating value-enhancing digital relationships that drive loyalty and engagement. The process of identifying customer preferences helps companies recognize key business drivers and create detailed, well-defined requirements to act on.

CSQ.COM / SPRING 2016 - Q2

Choose the Right Tools and Technology

In the fast-moving world of digital, selecting the right technical solutions, partners, and tools can be challenging. Executives need to consider the interplay of cost, capabilities and overall alignment with business strategy when selecting a solution. In a nutshell, you can’t simply invest in the latest tools and processes and expect instant adoption from both internal and external stakeholders. To facilitate internal acceptance and longevity, a plan for implementation and ongoing governance must be outlined. To drive user engagement, digital tools must create positive outcomes by

Recognize Strategic Opportunities

Companies have an unprecedented opportunity to increase revenue by engaging digitally savvy consumers at every touchpoint across the customer experience lifecycle.

answering questions, solving problems or facilitating improved interaction. Moreover, business leaders need to overlay risk and compliance issues when conducting a cost benefit analysis since migrating data and apps to the cloud or digitizing customer records could raise privacy, legal, and security issues. For instance, providing discharged patients with a wristband to monitor their vital signs may help shorten

hospital stays, ensure recovery and lower readmission rates. But the data must be transmitted and stored in a manner that is regulatory compliant. Having a better technical tool is not enough; a digital solution must improve the user experience and create efficiencies, both internally and externally. Executives need a revised set of criteria to evaluate, select and implement digital technology that is truly transformative.

To navigate a successful transition to digital, executives must be able to recognize and seize opportunities to create competitive advantages and valueenhancing experiences for customers by evaluating their situation objectively. A trusted advisor can provide an outside view that helps you see beyond your current approach and better understand your offerings and processes from new perspective. The digital era marks the first time in history that companies have an opportunity to make technology investments that both lower cost and increase revenue. It also brings an unpreceded opportunity to revisit your legacy business processes and transform to meet future business demands. And staying one step ahead of the evolving needs of your customers, and initiating transformational change to enhance their experience, can be the difference between a company that stagnates and one that flourishes for years to come.

CSA Kevin Parikh Corporate Strategies

CSQ.COM / SPRING 2016 - Q2

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FINANCE INVESTMENT BANKING

| FAMILY OFFICE |

It’s a Family Affair Jim Freedman

Chairman & Managing Director

Jonathan Zucker

Head of Capital Markets Group Intrepid Investment Bankers Los Angeles, CA Jim Freedman is a Founding Partner and Chairman of Intrepid Investment Bankers, a specialty investment bank that provides M&A, capital raising and strategic advisory services to middle-market companies across various industry sectors. He has more than 30 years of investment banking and corporate finance experience and is an expert on the financial aspects of corporate strategy. Jonathan Zucker is the Head of the Capital Markets Group at Intrepid. His transactional record includes capital raises for companies across a diverse set of industries, including digital media, SaaS, consumer electronics, nutritional supplements, apparel, and household products. PHONE

310/478.9000 EMAIL

jfreedman@intrepidib.com jzucker@intrepidib.com WEBSITE

intrepidib.com ADDRESS

11755 Wilshire Boulevard Suite 2200 Los Angeles, CA 90025

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The family office is a new kind of financial partner

What do Weight Watchers and Togo’s Eateries have in common? Aside from offering dining options, the two companies count well-known family offices as their latest investors. For the entrepreneur who has spent a lifetime building a business and is now looking for a major liquidity event, while hoping to retain a minority stake in the company, the family office acquirer offers an intriguing and highlydifferentiated alternative to institutional private equity (PE) investors and strategic buyers. Oprah Winfrey’s family office (OW Management, LLC) bought a significant stake in the publicly-traded Weight Watchers last October. Two months later, Sam Nazarian’s family office (Nimes Capital) bought Togo’s from PE firm Mainsail Partners. The Togo’s transaction exemplifies the growing trend of family offices becoming viable players in middle-market M&A.

There are an estimated 2,500 to 3,000 SFOs nationally holding over $1.2 trillion in total assets. Notable U.S. SFOs include the Pritzker Group, run by Anthony and J.B. Pritzker; Bill Gates’ Cascade Investment; and Google’s Eric Schmidt’s family office, Hillspire. There are about 150 multi-family offices (MFOs) nationally, which operate similar to traditional private wealth management practices with multiple clients2. They hold an estimated $400 billion in assets under management and range in size from $36 million to $52 billion.2 Recognizable U.S. MFOs include the Geller Family Office Services, Athena Capital Advisors, and BNR Partners. Unlike PE funds, family offices don’t need to raise sequential funds or create liquidity within a specified timeframe. They are not bound by the need for an exit in five to seven years and may better align interests with the entrepreneur. If it’s not the right time to sell, the family office is not compelled to do so to return money to its limited partners. Many family offices have stated goals to hold

CSA Intrepid

Family Offices Are Becoming Viable Players in Middle-Market M&A

Beyond managing the family assets, family offices have evolved into sophisticated organizations that also oversee the personal affairs and philanthropic aspirations of families. Historically, family offices focused their direct investments in real estate and public securities, with exposure to private company investing achieved through limited partner interests in PE and venture capital funds. For a variety of reasons, including dissatisfaction with the Two and Twenty fee structure,1 public markets’ volatility, and desire to have a more hands-on role in their investments, family offices have increasingly pursued direct investment in privately-held companies, often taking controlling interests. Single-family offices (SFOs) are known for serving one wealthy family and range in size from $51 million to $2.1 billion.2

CSQ.COM / SPRING 2016 - Q2

For the entrepreneur ... the family office acquirer offers an intriguing and highly-differentiated alternative to private equity firm investors and strategic buyers ...

the company investment for many years. Since family offices don’t have to satisfy outside investors with near-term internal rate of return or cash-on-cash returns, they tend to offer more flexible deal structures. In addition to attractive economic terms and deal structures, family offices may also provide other real strategic benefits to entrepreneurs. This is especially the case when the source of the family office’s wealth was a liquidity event in the same industry as the company in which they are investing. Under this scenario, the investor often brings experience, strategic insight and key relationships that can have a direct impact on the company’s bottom line. From the family office’s perspective, an investment in a familiar space can give the family an outlet for the passion and entrepreneurial spirit that led it to build the business that created its wealth in the first place. For example, Microsoft Co-Founder Paul Allen’s Vulcan Capital recently participated in reality startup Magic Leap’s $793 million Series C, after investing in its Series B in late 2014. Magic Leap aims to completely redefine the world of computing as we know it, and it may give Allen the opportunity to reinvent the tech industry once again.

will focus on finding great investments, without the distraction of raising capital or harvesting a portfolio to facilitate a new fund raise.

From an Investment Banker’s Perspective

Family offices on investor lists have gone from an afterthought to being a significant part of the M&A and capital raise process. In order to provide optimal alternatives to our clients, we need to constantly monitor and maintain relationships with emerging family offices looking for private company investments. We educate our clients on the relative benefits and drawbacks of going the family office route versus more traditional paths. In a recent engagement, we advised a leading digital marketing and advertising agency seeking a partner that would provide not only liquidity, but an edge that would help the company win new business and generate incremental revenue from its existing Fortune 500 client base. Our client had the option to team up with the ‘usual suspects’—large New York and London-based agency holding companies—but was hesitant to do so due to a strong desire to maintain its independent culture, which gave it a big advantage in winning business. We were able to bring our client the best of both worlds: a family office whose source of wealth came from the advertising industry with C-level connections at all the right target clients and whose patient capital and hands-off approach would allow the company to remain fiercely independent, but with the capitalization of a much bigger player. While many of our clients appreciate the PE strategy of less patient capital, which motivates everyone to grow the company and realize additional liquidity in the foreseeable future, the family office is another viable option. As wealthy baby boomers exit their businesses and establish new family offices with more modern, hands-on approaches and existing family offices remain disenchanted with management fee structures and global market uncertainty, entrepreneurs seeking capital will continue to benefit from a plethora of increasing options in their search for liquidity and partnership.

CSA Intrepid / Montage

“New Money” Families Are Focused on Deal Flow

Many family offices have evolved from small teams of investment managers that sourced private company investments through proprietary channels, to outfits resembling full-fledged institutional funds with proportional marketing efforts and aimed at firms which control deal flow in the M&A market. This seems to be especially prevalent among “new money” families, like those who have built their wealth in the past few decades in areas like technology and media, including entrepreneurs Allen, Winfrey and Michael Dell. MSD Capital, Dell’s family office, employs 80 people, including professionals who focus on sourcing private deal flow and participate in investment banking auction processes. For family offices with more than $500 million to invest, it’s not hard to see the benefits of foregoing the Two and Twenty model and instead using those management fees to pay an internal team that

1 Traditional management fees of private equity funds: 2% fee of total fund commitments annually plus 20% of any profits earned. 2 Financial Planning: “The Rise of the Multi-Family Office.”

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FINANCE PRIVATE WEALTH

| GLOBAL FINANCE |

Fundamentals, Technicals, and Revisiting the Queen While a China-induced global recession is possible, economic optimism should be more abundant domestically and abroad

Bruce Munster

Managing Director – Private Wealth Management Merrill Lynch Private Banking & Investment Group Los Angeles, CA Bruce Munster is a principal of the MPF Private Wealth Management Group, an M&A-focused advisory practice within the Private Banking and Investment Group at Merrill Lynch. Located in Los Angeles, the MPF Private Wealth Management Group manages more than $1.1B for 50 families, as of April 30, 2015. Bruce has garnered a number of national honors as a Financial Advisor. On Wall Street named him to its 2014 list of the “Top 40 Advisors Under 40” (#7 nationally). The Financial Times distinguished Bruce as one of the Top 400 Financial Advisors in 2014. And REP Magazine honored Bruce as one of the Top 40 Wirehouse Advisors Under 40 in 2014 (#11 nationally). Bruce earned his B.S. in Business Management and Marketing from Cornell University. He and his family support several charitable organizations including Children’s Hospital Los Angeles, Woodbury University, Food on Foot and Cornell University Wrestling. Bruce lives in Pacific Palisades with his high school sweetheart, Therese, and their three children: Samuel, Bruce Jr., and Haifa.

Last year’s Spring Edition introduced “Queen TINA and King Dollar” which predicted the changing market dynamic in 2015. Our CIO and BofA Merrill Lynch Global Research teams nailed it by focusing on two key facts - equities were nearing the top decile of valuation and the knock-on effects of the strong US Dollar would weigh on the already slow global economic growth - insights that hopefully helped CSQ insiders understand what was driving markets and ideally helped them improve their respective portfolio asset allocations.

dollar denominated debt outside of the United States. Imagine the challenge to foreign companies that have to service debt in US Dollars while earning revenue in significantly depreciated currencies. When there are no alternatives, markets can be volatile. By February 11, 2016 the average stock as measured by the Value Line Arithmetic Index was down more than 20% from the highs in April 2015 and many pundits have called the US markets as entering a bear market. The surging US Dollar and the depreciation of the Chinese

CSA Bruce Munster

PHONE

310/407.4960 EMAIL

bruce.munster@ml.com WEBSITE

ml.com

ADDRESS

2049 Century Park East Suite 1100 Los Angeles, CA 90067

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The US economy remains strong and the problems overseas are having more of a psychological effect on Mr. Market rather than a real impact on Main Street USA. Embracing the “There Is No Alternative” (TINA) mentality helped fuel a massive debt expansion in emerging markets (EM) and “Queen TINA” reigned because the (least bad) best alternative was to over-allocate to higher yielding risk assets in favor of bonds and cash as global interest rates remained at historically low levels. However, in the second half of 2015 King Dollar trumped the Queen. Seen through the lens of U.S. multi-nationals, the challenge of a stronger USD is clear: weaker profit growth. However, less obvious but still important is the impact on the roughly $9 trillion (according to a BIS report) of

CSQ.COM / SPRING 2016 - Q2

currency have unnerved markets but fundamentally the US economy remains strong and the problems overseas are having more of a psychological effect on Mr. Market rather than a real impact on Main Street USA. Despite the bear market headlines, over the long term the single most important determinant of long-term returns has been valuation, which typically explains 60-90% of returns over a 10-year time horizon.1 While fundamentals drive long-term outcomes, market technical can drive short-term volatility. Investors have been trained to focus on short-term volatility by benchmarking performance

each quarter and through convenient apps that allow us to check our accounts anytime. The hyper focus on short-term movements causes more harm than good as it increases the risk that investors lose composure which causes them to abandon long-term goals and make poor investment decisions by chasing performance. However, technical price movements in stocks can present opportunities for long-term investors to rebalance portfolios. For example, several market technicians have called for the S&P500 stock index to test lower levels as the fear of a China-induced global recession takes hold. Historically, recessions tend

I sincerely appreciate all of the support we received from our clients and friends. After one year at PBIG, the best portfolio advice I have received is to have a plan in place to weather nearterm volatility and focus on investing for the long-term as valuations may soon become compelling enough to wake the Queen from her slumber. Any opinions expressed herein are given in good faith, are subject to change without notice, and may only be correct as of the stated date of their issue. The investments or strategies presented do not take into account the investment objectives or financial needs of particular investors. It is important that you consider this information in the context of your personal risk tolerance and investment goals. Due to

The hyper focus on short-term movements causes more harm than good as it increases the risk that investors lose composure which causes them to abandon long-term goals and make poor investment decisions by chasing performance.

CSA Bruce Munster / Ad PROVIDING

to be rather short lived, and we think investors with a long horizon should view the lower prices in a near term recession as an opportunity to purchase assets at attractive prices. According to the BofAML Equity Strategy Team, the S&P500 index could rise to 3500 in 10 years’ time. While stocks are likely more volatile, we think the return premium potential is worth it in a low inflation world. For those curious to know how we are doing...last year as “Queen TINA and King Dollar”2 was being published I was in the thick of transitioning my business to the elite Private Banking and Investment Group (PBIG) at Merrill Lynch in Century City. I am pleased to report we transitioned more than 90% of our clients.

the time sensitive nature of the content and because investment opinions may have changed since the time any comments were made by research analysts, the latest Merrill Lynch investment opinion and investment risk rating for any particular security discussed should be reviewed, including important disclosures, before making any decision. Past performance is not a guarantee of future results. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker dealer and Member SIPC, and other subsidiaries of Bank of America Corporation. The Private Banking and investment Group is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Investment products are not FDIC insured, are not bank guaranteed, may lose value 1 Bank of America Merrill Lynch U.S. Equity Strategy Year Ahead Different hats: same conclusion: stick with S&P 500 Nov. 24, 2015 2 Queen TINA and King Dollar CSQ.COM March 26, 2015

CHIROPRACTIC WELLNESS CARE, ACUPUNCTURE, PHYSICAL THERAPY, AND MASSAGE FOR THE ENTIRE FAMILY.

818-222-1120 22554 Ventura Blvd. Suite 130 Woodland Hills CA 91364 818-226-9925 20944 Sherman Way Suite 207 Canoga Park CA 91303 310-641-0222 8610 Sepulveda Blvd. Suite 204 Los Angeles CA 90045

www.elitesportsdc.com CSQ.COM / SPRING 2016 - Q2

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INSURANCE HUMAN RESOURCES

| EMPLOYEE BENEFITS |

Growing Pains Are Real Managing the costs of employees through providing safe and healthy workplaces

Danone Simpson

President & CEO Montage Insurance Solutions Woodland Hills, CA Danone Simpson has more than 17 years experience in all lines of insurance. Danone has built an agency focused on employee benefit and proper ty & casualty programs for the commercial and nonprofit sectors. Under Danone’s leadership the firm has par tnered with over 100 carriers in order to find the perfect insurance solutions for their clients. Danone has been presented multiple awards in the Los Angeles and San Fernando Valley Business Journals, including being selected a Trusted Advisor in Insurance and one of the Top Twelve Women Owned Businesses in Los Angeles. Recently Danone was selected by Forbes magazine to be represented in the Women of Power series for Southern California. She sits on the Valley Village Board of Directors and Make-A-Wish and was honored as a founding member of Women for Wishes. Danone received her Masters of Business Administration from the Graziadio School of Business at Pepperdine University.

It is an election year so while the presidential candidates have town hall meetings, so must employers. Growth is apparent and costly, advises Gerry Schauer, CFO and trusted advisor—so let’s look at what we can do to get ahead of the cost curve on employee costs. First and foremost, the cost of turnover is a great place to cut costs, by creating a strong culture where employees want to stay. The Department of Labor (DOL) reported December 2015 offered 201,000 job openings, with a quit rate that rose more than eyebrows. Stronger candidates are becoming available, so capitalize on hiring the right people. Employee training has suffered in past years and is imperative in today’s fast growing environment. Making sure our trainers are ready to train new hires and blending them into a strong culture is an important focus to cut costs.

Employee Engagement

Keeping employees present and wanting to come to work takes resources; however if we could swing the negative costs of high claims into healthier environments, providing language training, proper education, a great place to work and growth in job opportunities, employees will stay. Efficiencies in processes and procedures are taking claim as more and more highly educated employees are flooding the marketplace. Disorganization is being cleaned up and bringing employees along with new ideas and technologies has a profound impact on keeping workers engaged. Workers are aging, keeping benefits longer as they are catching up on retirement planning, so this should be a focus. One of my favorite case studies was on BMW and their approach to keeping

CSA Danone Simpson

PHONE

818/676.0044 EMAIL

danone@montageinsurance.com WEBSITE

montageinsurance.com ADDRESS

5550 Topanga Canyon Blvd. Suite 310 Woodland Hills, CA 91367

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The assembly line was inspired into being more productive by being allowed to have proper tools to help them work faster. They were a part of the solution.

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their workers. With a shortage of younger employees coming into the workforce they held committee meetings asking employees what they needed. They put in large magnifying glasses the employees could move around to help them see the intricate parts they were working on. They put in stools so workers could sit while working. The assembly line was inspired into being more productive by being allowed to have proper tools to help them work faster. They were a part of the solution. Translate this into your place of work.

Wage Hikes

Minimum wage increases are here and deserved. Keeping the costs of turnover down in manufacturing, leisure, and hospitality and services will offset higher costs due to health care, workers’ compensation, as well as wage and hour compliance. We are seeing change happen — improving employees’

environments, getting them involved with safety training, routine exercises to improve WC claims, and overall health.

Corporate Wellness

Providing healthier choices in the workplace if snacks are available by vending machines is one way to communicate commitment to employee well-being. Allowing vendors to come in to promote wellness, give flu shots, and biometric screenings also sends the message that you are fully invested in your most valuable asset. Creating employee appreciation and proper incentive programs results in the following net benefits for a business: Promotes a safe environment Keeps workers compensation claims at a minimum Reduces fraud by communicating the employer cares Creates appropriate workflows with the proper staff

Immigrants are important to the workforce in Southern California and diversity is our way of life. Understanding the cultures of our employees is becoming increasingly important. Details such as festive colors in the kitchen, having a locker available to store personal belongings, offering benefits with proper education on how to use wellness benefits, and allowing employees adequate time to get their wellness treatments all contribute to having healthier employees. The flu seasons and disability costs must be reduced with healthier and safer workplaces. Managing the negative impact on disengaged workers by cutting through negative employee relations must be addressed and replaced. Businesses are coming out of a tough few years and will be able to keep their best workers and let the others go, hire carefully and create a Best Place to work.

CSA Danone Simpson / Ad

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REAL ESTATE OFFICE

| WORKPLACE MORALE |

Love in the Workplace

It’s not happening enough. We need more of it. Way more.

Jason Hughes

President & CEO Hughes Marino, Inc. Corporate Real Estate Advisors Los Angeles, CA Jason Hughes is president, CEO, and owner of Hughes Marino, a tenant representation company with offices in Los Angeles, Orange County, San Diego, and the Bay Area. Hughes Marino is committed to only representing tenants in their lease and purchase transactions of commercial space throughout California. Jason founded Hughes Marino in 2011 and previously was president of Irving Hughes for over 20 years. In 2013, Jason helped draft California’s real estate broker agency disclosure bill which was signed into law and states commercial tenants must now be advised in writing when a broker represents both tenants and landlords, creating a potential conflict of interest.

As CEO of the largest family-owned tenant-representation company in California, I’ve had the opportunity to observe thousands of different workplace offices over the past three decades. Our clients have included hundreds of law firms, life-science laboratories, technology start-ups, insurance firms, distribution centers, and a sampling of nearly every other industry on the planet. Top companies hire us to find and negotiate their corporate real estate, ensuring them the most cost-effective and beneficial occupancy possible. We do that very well. But final decisions are made by the clients. And while many companies get it right, it’s alarming how homogeneous and sterile a majority of the workplaces end up being for their respective teams.

ones out. And as a result, their team gives their all for their leader. It’s a great video viewed nearly 4.4 million times. I think Mr. Sinek may be onto something.

The Starbucks Model

What made me feel especially good was that our broker said, “This [message] absolutely describes what you’ve created at Hughes Marino. Thank you.” Wow. Nearly blew me away. And certainly made me tear up. While I didn’t know it years ago, messages like that are what I live for. I figure that if this is how I am helping to make our team feel, then they are helping to make our clients feel the same. And that is powerful stuff. Even industry changing. So you might be thinking, “Enough of the Kumbaya. What’s the point? And how the heck does this relate to real estate?” The point is: love in the workplace is lacking. Many business leaders still believe love belongs at home. But more progressive leaders, like Howard Schultz of Starbucks, believe it’s the soul of a company. Having grown Starbucks from 6 to 22,519 stores in 35 years, thereby creating one of the most successful companies on the planet, I’d say he’s someone we should all listen to. You see, details matter. Being “cheap” costs way more to a company than the actual expense. And it isn’t very indicative of a loving environment. Unfortunately, far too many decision makers focus on themselves rather than their team. Expenses rather than revenues. Sterile workspaces are built without love or soul.

CSA Jason Hughes Leading by Example

PHONE

213.689.3211 310.277.3211 EMAIL

jason@hughesmarino.com WEBSITE

hughesmarino.com ADDRESS

555 West Fifth Street 31st Floor Los Angeles, CA 90013 11150 Santa Monica Blvd. Suite 1055 Los Angeles, CA 90025

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While I don’t consider myself an amazing leader, I do aspire to be one. As a result, I’m constantly reading and thinking about how to build a worldclass company in an industry stuck in yesteryear, riddled with conflicts and bad habits. I was originally going to write about that. But moments before I sat down to write this article, one of the top brokers at our firm sent me a video of a TED Talk by Simon Sinek titled, “Why Good Leaders Make You Feel Safe.” Mr. Sinek’s premise was that good leaders put their team first – always. They make them feel safe – not just in the literal sense, but in a figurative sense too. They feed them first. Pay them first. Love them first. Good leaders are the first ones into danger and the last

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This exacerbates a struggling culture and inhibits the ability to thrive.

The Google Effect

Google has exemplified love in the workplace. They build their spaces to inspire their team, creating a place where team members look forward to spending time and working hard. A past article of mine discussed the hundreds of millions of dollars firms like Google, Apple, and Facebook are investing into their workspaces, using vast sums of data to support their investment, in order to amplify their corporate results. More business leaders should follow their lead. I have. Each of our locations is an example of some of the best office space youâ&#x20AC;&#x2122;ll find. We have top-of-the line furniture and equipment. Beautiful artwork. Amazing attention to detail. And it just so happens our team is top level too. Coincidence? While not every company can afford

a beautiful office in a Class A building in a safe location, supported by fitness centers, gourmet restaurants, and pet walkers, every company can spend more time thinking about how to make their office as wonderful as possible. Does it need fresh paint? Do the carpets need to be cleaned? Is it

time for new ergonomic furniture? How is the art? It is important that business leaders elevate the importance of having a great workspace. Your team will be happier. Your business will do better. And the soul of your company will flourish.

Google has exemplified love in the workplace. They build their spaces to inspire their team, creating a place where team members look forward to spending time and working hard.

CSA Jason Hughes / Snacknation

HEALTHIER SNACKS

DELIVERED. Makes Your Team Happier, Healthier and More Productive.

For a Free Sample Box, Visit:

SnackNation.com/CSQ

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The Culinary Answer to Happiness TM MENTION “CSQ” WHEN YOU PRE-BOOK YOUR HOLIDAY PARTY BY JUNE 30TH AND GET BACK A $150 GIFT CARD FOR EVERY $1000 IN FOOD & BEVERAGE. EMAIL: RANDY AT RALLISON@THEDISTRICTBYHA.COM or CALL 310.278.2345

The District

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Photo: Sierra Prescott

Culture & Taste Cover Page

CULTURE & TASTE

EXHIBITS / PERFORMANCES 108

LIFESTYLE REPORT

110

PROPRIETORS’ PROFILE 112

FINE DINING

114

The vision of former Thomas Keller prodigy Timothy Hollingsworth, Otium (p. 114) sprouted up next to The Broad in fall 2015.

BUSINESS LUNCH / HAPPY HOUR 116

REQUIRED READING

117

CULTURE & TASTE OF NOTE

EXHIBITS & PERFORMANCES

A Broad Spectrum of Culture BY HANNAH LUCCHESI

Style of the Centuries

{Los Angeles} Los Angeles County Museum of Art April 10–August 21 Fashion is not confined to the fairer sex. Reigning Men: Fashion in Menswear, 17152015, examines how fashion trends throughout the centuries have been shaped by men’s dress as much as women’s. The exhibition looks at five thematic sections: Revolution/Evolution, East/ West, Uniformity, Body Consciousness, and The Splendid Man. The 200 pieces are drawn from LACMA’s own collection of costume and textiles curated by Sharon S. Takeda, Kaye D. Spilker, and Clarissa M. Esguerra. Exhibit highlights include a French Revolutionary period aristocrat’s at-home robe (banyan) and an authentic 1940s zoot suit that took over a decade to find. / lacma.org

Culture & Taste Of Note Pop Art Star

Park Life

Pop Art began in the mid-1950s as a reaction to an increase of production and consumerism. Marcel Duchamp was a strong influence on Pop Art and one of the leading artists of the movement. This exhibition contains 40 artworks, 13 of them being Duchamp works; the others pay tribute to his genius and impact. Warhol’s Jackie Kennedy II hangs across from Duchamp’s L.H.O.O.Q. or La Joconde, the Mona Lisa with a mustache. These well-known faces show how both artists were captivated with the concepts of pop culture and identity. Curatorial Associate Tom Norris organized Duchamp to Pop and many events will accompany the exhibit. / nortonsimon.org

The Huntington Library is doing an admirable job commemorating the 100th birthday of the U.S. National Park Service. Geographies of Wonder takes a look at how the National Parks have had an impact on American life while attracting tourists, adventure-seekers, and scientists. A highlight of the exhibit is the 1873 photo album by photographer William Henry Jackson; his photos of Yellowstone will be on display. The pieces will also look at the treatment of Native Americans who inhabited the land of the National Parks. / huntington.org

{Pasadena} The Norton Simon Museum Through August 29

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{San Marino} The Huntington Library, Art Collections, and Botanical Gardens May 14–September 3

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Left Handed Guitarist by Evan Holloway

20th Century Memories {Los Angeles} MOCA Through July 11

Don’t Look Back: The 1990s at MOCA offers a look into the decade and its key ideas and movements. The exhibit is divided into six thematic sections: Installation; The Outmoded; Noir America; Place and Identity; Touch, Intimacy, and Queerness; and Space, Place, and Scale. Many of the pieces are being shown for the first time since their original installation and include artists such as Catherine Opie, Cady Noland, Sarah Sze, and Paul McCarthy. The exhibit was organized by MOCA Chief Curator Helen Molesworth who aimed to showcase the large-scale installation technique of artists of the 1990s. / moca.org

&A Joanne Heyler Founding Director, The Broad Since opening last September, The Broad has become the latest landmark destination to enhance Downtown LA’s status as a cultural hotspot. Founding Director Joanne Heyler, who has enjoyed a nearly three-decadelong relationship with Eli and Edythe Broad, offers her insight on what visitors to the 120,000-square-foot, $140M building can expect to see on the interior.

CSQ What is your philosophy in terms of curating what visitors see at The Broad, and how does that mesh with the philosophy of the Broads? JH We want to be engaging and accessible to a wide audience. In the lead up to opening the museum I kept hearing that people often feel intimidated by contemporary art and the art museum experience in general. We are interested in changing that through the shows we curate and how visitors engage with the art on view. For example, our app allows visitors to learn about the work on view before they visit. While developing our exhibition calendar, I think about whose work will really resonate—what will feel timely and fresh—and what we can do that reveals something new about art and ourselves.

Culture & Taste Of Note CSQ What do you feel was the key to building the respect and trust that led you to be appointed founding director at The Broad? JOANNE HEYLER I think one of the reasons the Broads and I have fostered such a successful working relationship is that, like the Broads, I’m an optimist. We worked hard to avoid dogmatic thinking about how museums operate, and that requires a bit of cynicism about the status quo, a lot of optimism, and a high tolerance for risk.

CSQ Eli Broad has said that you operated with a level of autonomy in assembling the inaugural installation and programming. What were your primary considerations in putting together what you felt would be the best representation of artwork while honoring the couple’s overall vision? JH Eli and Edye were excited to share their collection with the public—as much of it as possible. My goal in curating the inaugural installation was to introduce a wide public to the breadth of the collection, which can be tricky when one of our main collecting philosophies is to collect artists in great depth. A chronological overview seemed like the best introduction, and now our special exhibitions, which launch this summer, will explore artists in greater depth. CSQ.COM / SPRING 2016 - Q2

CSQ How have you tried to “reinvent” the museum experience for visitors? JH The Diller, Scofidio+Renfro’s designed building radically changes the traditional museum experience, and that was engineered very intentionally in consultation with me and the Broads. The key features are the views visitors gain into our artwork storage from the third floor galleries and within the central stairwell that really illuminate the “back of house” functions of a museum, which are typically quite mysterious to the average museum-goer. CSQ How do you see The Broad evolving in the coming years? JH We are still evaluating and reacting to the plans that were hatched before the museum was open. We are seeing what we got right and we are seeing areas that we would like to improve upon. The public’s reception of The Broad has been so overwhelming, but we can’t let that go to our heads, so we are strategizing about how to keep that enthusiasm and excitement going well past the opening year. / thebroad.org - 109 -

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CULTURE & TASTE LIFESTYLE REPORT

The CSQ Lifestyle Report Insights from the top

Ever wish you could know what your favorite brands are thinking? Now you can. Introducing The CSQ Lifestyle Report, where every quarter, we will bring you the perspective of local leadership from your favorite brands and properties.

Culture & Taste Lifestyle Report Keith Goldberg GM, Rusnak Porsche, Westlake Village

“When factoring in the illustrious history of Porsche, the bar in Westlake Village is set at the highest level. All of our staff members make a concerted effort to determine and meet the customer’s needs. It is paramount that everyone is made to feel like a member of our family. With Porsche having won the most races in history, we came up with the idea that every customer gets a Pit Crew along with the purchase or servicing of their vehicle.The entire staff of our dealership, from the general manager on down, is the Pit Crew for every client.”

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Moji Shahkarami GM, Eton, Santa Monica

“For the past 82 years of Eton’s history which formed in Sweden, making high-end luxury shirts, CRM has been the motto of the company and we are resonating and implementing the message through the Eton store in Santa Monica.Through CRM, Customer Relations Management, value proposition is one of the key components of our drive to excellence, offering competitive prices, unparalleled customer care, after-sale services, and years of experience in styling and taking care of our client’s wardrobe needs.”

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Terri Haack President,Terranea Resort, Palos Verdes

“Terranea provides an unmatched opportunity for whole ownership of the few remaining pieces of oceanfront property on national monument land. Situated on the Palos Verdes Peninsula, one of Southern California’s most scenic and coveted coastlines,Terranea is LA’s only oceanfront resort. The extraordinary site allows villa owners to be part of the prestige of the peninsula, cared for by worldclass staff, with award-winning amenities and curated experiences. An opportunity communicated by storytelling, marketing initiatives and through brand ambassadors.”

Malibu Country Mart 3835 cross creek road, m alibu, ca | w w w .m alibucountrym art.com

CULTURE & TASTE PROPRIETORS’ PROFILE

Our thing has never been to replicate, which is boring. We live in Santa Monica and we were born and raised here. We want to do things … because if we want it, these people will want it.

business the only way a toddler can – while alternately eating and deconstructing a frosted sugar cookie. Splitting their attention between parenthood and the business – a skill at which they have obviously become well-versed – Josh and Zoe takes turns delineating what it means to strive for success in the world of baked goods and slow braises. Success, according to Zoe, means “being able to be with our family and be with each other … building a business and partnering with people we become happy for.” Quantifying his wife’s point, Josh notes that families will experience Rustic Canyon “nine or ten times a week” between trips to properties that include Esters Wine Shop & Bar, Milo & Olive, Rustic Canyon, Sweet Rose Creamery, Huckleberry, or LA’s hottest restaurant, Cassia. While the roster is impressive, and the fruits of their labor have been undeniably succulent, the labor was just that: labor. Josh, like Zoe, grew up on Los Angeles’ Westside (specifically Rustic Canyon, nestled discretely in the Pacific Palisades), ultimately majoring in English at Berkeley before heading across the country to work for magazines such as Maxim and Vibe. In his free time, Josh became familiar with “local food places,” as he called them. Whether at a French bistro or a Moroccan cafe, he was learning by osmosis. But Josh was looking for more. More stimulation, more culture, more California. Returning to his home state in his mid-20s, Josh took to hosting informal dinners for a handful of friends. As word spread, his dinners of note expanded to include up to 16 guests, some of whom were (former) strangers.

Photo: Emily Hart Roth

Culture & Taste Proprietor’s Profile Full-Flavored Generosity From Huckleberry to Cassia, the husband-and-wife restaurateur team of Josh Loeb and Zoe Nathan has grown the Rustic Canyon brand into a Westside tastemaker – one street corner at a time BY MATTHEW SEUKUNIAN

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t’s a typical California winter morning; the sun is saturating the Santa Monica sidewalks and a fresh ocean breeze hints that spring is right around the corner. Josh Loeb and Zoe Nathan, the dream team behind the Rustic Canyon Group, are sitting at an outside table at their crave-inducing Huckleberry Bakery & Cafe, dispelling myths and imparting wisdom. “[The restaurant business] shouldn’t just be about making money,” Josh explains. “That should come with it.” Not missing a beat, Zoe adds her perspective. “The minute you use words like ‘concept’ or say something like ‘I know this market,’ you’re doomed,” she says. Tallula, the couple’s middle child, also in attendance, appreciates Mom and Dad’s CSQ.COM / SPRING 2016 - Q2

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1/ Vietnamese Sunbathing Prawns at Cassia 2/ The bar at Milo & Olive Photo: Rick Poon

3/ The morning selection at Huckleberry Bakery & Cafe 1

Photo: Rick Poon

As the old adage goes, one thing led to another. Josh went from self-contained home chef to host at the Broadway Deli, eventually running the million-dollar wine program at Capo in Santa Monica. He would eventually open Rustic Canyon in December 2006. Six months in, sensing that Rustic Canyon was in dire need of a talented pastry chef, Josh’s mother intervened. Aware of Zoe’s talent, she facilitated a job interview. Previously, Zoe had spent time in the back of the house at Mario Batali’s Lupa in New York, Joe’s in Venice, and famed San Francisco co-op bakery Tartine. The interview went well. Recalls Josh: “We hired her, and within the next couple months we fell in love and have done everything together from that point.” A culinary power couple was born. A second brand, Huckleberry, opened two years later. Tracing its origins to a lengthy dessert menu at Rustic Canyon, then Saturday morning breakfast, the concept was driven by Zoe’s desire to do something “where pastry was the star of the show,” explains Josh. Six years later, as we sit at the sidewalk storefront watching the door open and close like the turnstile at a pastryladen Disneyland, Josh proudly asserts that “Huckleberry took off and became something really desired by the neighborhood and by the community … people resonated with Zoe’s generosity and love for the food.” More endeavors would follow their early successes: Sweet Rose Creamery (in 2010 with partner Shiho Yoshikawa, whom Zoe met at Tartine), Milo & Olive (in 2011), Cassia (in June 2015 with partners Bryant and Kim Ng), and Esters Wine Shop & Bar (in July 2015 with partner and long-time Rustic Canyon employee Kathryn Coker). While the trend of one-off and seemingly unrelated properties connected to the same brand has emerged throughout the food scene, it is a particular passionate point for this dynamic duo. They have always put the community first, from ideation to execution, honing in on ideas they think are practical, desired, and able to bring about positive change in their neighborhood. With six brands and three children under their proverbials belts, Zoe and Josh are resisting the urge to keep expanding – for now. “We want to make money and be successful, but we’ve turned down a lot

JOSH LOEB AND ZOE NATHAN Owners, Rustic Canyon Group RESIDENCE Santa Monica FAMILY Three children, Milo, Tallula, and Felix

RUSTIC CANYON GROUP EMPLOYEES ~400 PROPERTIES

Rustic Canyon (opened in 2006) Huckleberry Bakery & Cafe (2009) Sweet Rose Creamery (five locations; first opened in 2010) Milo & Olive (2011) Cassia (2015) Esters Wine Shop & Bar (2015)

Culture & Taste Proprietor’s Profile 3

of opportunities … people want to open Huckleberry everywhere.” It’s apparent that growth purely for the sake of expanding is incongruous to Rustic Canyon values. “Being local isn’t just shopping at the Santa Monica Farmer’s Market. It’s about growing up somewhere and understanding the area,” Josh says. Since inception, whenever asked, “Why the Westside?” Zoe’s answer is simple but not simplistic. “My mom is here and [Josh’s] mom is here; I went to elementary school four blocks away. This is our family.” As Josh finishes his account of their progression, he hints at what lies ahead, concluding by saying, “Our thing has never been to replicate, which is boring. We live in Santa Monica and we were born and raised here. We want to do things … because if we want it, these people will want it.” Ten years in, their homegrown philosophy rings true. Josh and Zoe have achieved tastemaker success and a fully functional work-life balance. Today, the Rustic Canyon Group offers its nearly 400 employees continuing education, full healthcare coverage, and CSQ.COM / SPRING 2016 - Q2

a comfortable, family-like environment. A nurturing and attentive mother, Zoe nonetheless has the work ethic of a drill sergeant. “In my kitchen, you have to work hard. That’s not an option. But,” she promises, “if you work hard, you can talk shit and it can be a slumber party, as long as your hands are moving.” Beyond promoting education and providing healthcare, Zoe and Josh preach what they practice, noting that, despite the related stigmas, “you can strive for a balance and we push all of our employees to do that,” adding that “we will do anything we can to make this a lifestyle for [employees].” As we rise to say our goodbyes, a passerby recognizes Josh (Zoe and Tallula have already departed), apologizes for interrupting, and explains that her daughter and entire family are big fans of all of his restaurants. Graciously receptive, Josh spends a minute chatting with her about what’s to come on the spring menu. If it wasn’t clear before this interaction, it certainly is now. Rustic Canyon is as much a part of the Westside as the Westside is a part of Rustic Canyon.  - 113 -

Photo: Sierra Prescott

CULTURE & TASTE FINE DINING

Otium

Downtown Los Angeles Redefined American Cuisine Nestled at the back of an inviting plaza adjacent to the Broad Museum dotted with 100-year-old olive trees, this contemporary gem showcases award-winning chef Timothy Hollingsworth’s rich culinary heritage. Refined by his work with chef Thomas Keller at the French Laundry in Napa Valley and competitive stints in international cooking competitions, Hollingsworth’s culinary chops are unmistakable and noteworthy. Otium serves vibrant seasonal dishes brokered by knowledgeable servers in an environment of sophisticated rusticity. The restaurant’s name, which is derived from Latin, indicates a place where leisurely social activities can be pursued, and Otium lives up to its billing. With an open kitchen that merges indoor and outdoor space – satisfying Hollingsworth’s desire to “take away the boundaries and have the kitchen as a centerpiece of where guests would dine, like in my home kitchen” (as expressed on Otium’s menu) – the restaurant uses a wood fire grill to bring out the flavor of sustainable ingredients grown in their mezzanine garden. From the verdant floor-to-ceiling mural in the bright bar area that opens onto an open-air patio to the relaxed ambiance of the wooded main dining area, Otium has perfected elegant yet rustic cuisine. Selections include the Otium Garden Salad with fresh herbs and shaved carrots; the Beef Short Rib encrusted with sunflower seeds, poppy seeds and dried onion; and the Banana Cream Grand Macaron. / otiumla.com

Culture & Taste Fine Dining

The Soul of Spring Dining Welcoming, airy atmospheres contribute to the ambient flavor that these inspired establishments serve up, where even the vegan appetite shall be nourished BY ALLISON DEAN

ONLINE Visit csq.com to discover more dining options and read an exclusive interview with Love & Salt Chef Michael Fiorelli.

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CSQ.COM / SPRING 2016 - Q2

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1/ Cod served with burnt onions, clams, and sea beans 2/ Smoked rigatoni with ricotta, escarole, parmesan brodo, and little rabbit meatballs 3/ Gadarene Swine’s owner Phillip Frankland Lee - was a contestant on Season 13 of Top Chef

Photo: Pascal Shirley Photo: Andrea D’Agosto

4/ With more than 30 years of history inside the alls, Jason Neroni reopening Rose Cafe was a welcome sign to Venice locals and Angelenos everywhere

Love & Salt

Manhattan Beach Italian

The Gadarene Swine Studio City Vegetarian

Rose Cafe & Restaurant Venice Beach Southern California Cuisine

Culture & Taste Fine Dining

Experience Chef Michael Fiorelli’s refined take on Italian bistro classics at Love & Salt, a contemporary restaurant where inspired fare with California soul is served in a modern dining room under a domed ceiling. The philosophy behind this delightful addition to the Manhattan Beach dining scene is that food needs only two ingredients to be fantastic: love and salt. Established on the site of Fiorelli’s previous collaboration with father and daughter duo Guy and Sylvie Gabriele, the iconic Cafe Pierre, and based on the same philosophy of providing great food and great service, the neighborhood favorite features a varied menu of tapas-style options. As Chef Fiorelli pointed out to CSQ, “Everything is about hospitality…” Start with the homemade English muffins, served with rosemary cultured butter and sea salt. Move on to a savory duck egg pizza or try a caramelized onion pizza with black grapes, blue cheese, and wild arugula. The cavatappi with bone marrow is a house special and diner favorite. The wine list offers myriad selections and the cocktails are outstanding; try the Forbidden Fruit and Jimmy Conway. For dessert, the deliciously tart lemon and marionberry sorbet is made in-house, and the brown sugar pudding with creme fraiche and cacao nibs is amazingly smooth and creamy. / loveandsaltla.com

This charming high-concept vegan eatery elevates vegetables to a level rarely discovered in the food world. With a rainbow of fresh vegetables grown on site, The Gadarene Swine offers a tempting array of creative, flavorful plates at the direction of chef Phillip Frankland Lee of Scratch Bar. A 10-course tasting menu is available, as is an à la carte menu. The unpretentious restaurant features a well-curated wine list and inventive cocktail selection accented with fresh fruit and vegetables. The attentive staff knows the menu well and will take time to explain dishes as well as adapt the tasting menu to your particular needs or desires. With inviting tables set with tree-rung plates dotted around the intimate interior, The Gadarene Swine reveals divine flavor combinations that may surprise those less accustomed to eating their vegetables. Dip sourdough into crushed tomato oil puree and savor the roasted garlic and thyme popcorn to start, then sample numerous delectable vegan combinations such as blackened cauliflower and vegetables in a box. For dessert, savor the coconut pudding with mojito granita, streusel and strawberries in a mason jar or a deconstructed pear tart with pecan ice cream and glazed pear. / thegadareneswine.com

CSQ.COM / SPRING 2016 - Q2

The recent remodel of this posh, bohemian all-day eatery transformed the iconic Rose Cafe into a sprawling, spacious restaurant with two patios, a bar and bakery. Delicious rustic Californian fare, created with chef Jason Neroni (Superba, Catch & Release) at the helm in partnership with Sprout LA Restaurant Collaboration, brings seasonally-influenced cuisine with a global flair to the heart of Venice. With basket-weave light fixtures hanging high above on the large covered patio and various open seating areas just a block from Venice beach, the Rose Cafe & Restaurant is ideal for business gatherings or private parties as well as relaxed dining with family and friends. The bakery brings back some of the original Rose classics, reconceptualized with innovative techniques employed by pastry chef team Jacob Fraijo and Christina Hanks (Quince/Cotogna, SF), while celebrating American classics. Start with the fresh homemade baguettes with cultured butter or schmaltz butter, gleaned from the rotisserie chicken drippings in the open kitchen both made in-house. Add black truffles to any of the perfectly prepared pastas for a flavor kick. End your meal with the black sesame panna cotta with pomegranate arils and white chocolate, a not-to-miss indulgence accented with passionfruit and lime sorbet (churned daily in-house). / rosecafevenice.com

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CULTURE & TASTE BUSINESS LUNCH / HAPPY HOUR

ONLINE

Spring Arrangements

Visit csq.com to find out about additional meeting locations.

Trendy establishments for negotiating a deal over a drink or a meal BY TROY BRIARCLIFF

BUSINESS LUNCH BELCAMPO

HAPPY HOUR JOEY

Santa Monica / belcampo.com

Woodland Hills / joeyrestaurants.com

BUSINESS LUNCH

Photo: Food Steez

Photo: Audrey Ma

COMMISSARY

TERRINE

Koreatown

Los Angeles

THE VIBE Housed in a greenhouse beside a shimmering pool in the Line Hotel, pleasant light streams in to illuminate the greenery in this peaceful yet social environment fostered by executive chef Diego Echavarria. THE BITE Savory avocado toast with goat cheese, chilies, and cured salmon; shrimp po’boy with pickled onions, spicy mayo, and fries; seared black bass with brown sauce and buttered peas. THE SIP Served from the greenhouse bar, try the refreshing Pimp’s Cup [sic], made with Bombay Sapphire, rhubarb, cucumber, and ginger. OUTDOOR SEATING? Yes PRIVATE MEETING SPACE? Yes; the Line Hotel has approximately 12,000 square feet of unique indoor and outdoor meeting and event space that can accommodate up to 800 attendees. / thelinehotel.com/dining/commissary

THE VIBE With Chef Kris Morningstar at the helm, Terrine cooks up soulful French classics with seasonal California flair. THE BITE Onion soup with comte, beef jus, and croutons; half roasted Mary’s chicken with chermoula; moules frites (P.E.I. mussels, white wine, creme fraîche, and fries); Terrine burger with truffled butter, aioli, cured tomato, and sottocenere (with optional foie gras). THE SIP Try the Lion’s Bane (Tequila Ocho Reposado, lime, grenadine, Luxardo bitters) or the French 75 (Beefeater gin, lemon, prosecco). OUTDOOR SEATING? Yes PRIVATE MEETING SPACE? Yes; up to 50 guests can be accomodated upon request / terrinela.com

Culture & Taste Business lunch HAPPY HOUR

THE UPPER WEST

THE GALLERY RESTAURANT

Santa Monica

Westlake Village

THE VIBE Classic movies play on the one wall while patrons are embraced by Chef Nick Shipp’s take on comfort food. THE BITE Ethan’s Mac & Cheese (asiago, goat cheese, Irish white cheddar, mozzarella, tarragon, tasso ham, parmesan) is superb and named for Shipp’s son; Lamb Nachitos (BBQ braised lamb, black bean puree, yellow corn-olive tapenade, sweet pickled jalapeno, jack and cotija cheeses) are also a house favorite. THE SIP Choose from sublime seasonal cocktails and an excellent selection of craft beers and wine. Try the Honey Rye (Old Overholt rye, Barenjager honey liqueur, orange bitters, on the rocks with an orange peel) or the Basil Icelander (Bombay gin, Brennivin, lemonade, grapefruit bitters, fresh basil). OUTDOOR SEATING? Yes PRIVATE MEETING SPACE? Yes; the front patio can be made available for gatherings of up to 50. / theupperwest.com

THE VIBE This upscale eatery is known for its fresh fish, raw oysters, and juicy chops. Casually elegant, The Gallery specializes in new American cuisine prepared with the freshest ingredients, whether it be locally sourced herbs or handselected fish straight from the source. THE BITE Tandoori chicken pita flatbread (roasted red pepper, mozzarella, cheddar, scallions, yogurt, cilantro); tacos with braised short rib, dijon aioli, cabbage, queso fresco or ahi tuna tartare, sesame, chili oil, sriracha, crispy wonton shells; roasted bone marrow splits with jalapeno, bread crumbs, and crostini. THE SIP The Out of Fashion (lavender simple syrup, black walnut bitters, Woodford Reserve bourbon whiskey), Violet Moon (Fords gin, creme de violette, lemon juice, caramelized orange wheel), or the Vesper (Tito’s vodka, Bombay dry gin, Lillet Blanc, flamed orange twist) are all solid options. OUTDOOR SEATING? Yes PRIVATE MEETING SPACE? Yes / thegallerywestlake.com

HAPPY HOURS 5-7pm every day and all night Monday

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HAPPY HOURS 3:30-6:30pm, M–F

CSQ.COM / SPRING 2016 - Q2

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CULTURE & TASTE REQUIRED READING

Analyzing Trends and Reconfiguring Office Space Four books to maximize your creative real estate and your profit margin BY KATE GAGNON

Humans Need Not Apply: A Guide to Wealth and Work in the Age of Artificial Intelligence Jerry Kaplan Yale University Press 241 pp. THE PLOT Written

Superforecasting: The Art and Science of Prediction

Philip E. Tetlock and Dan Gardner Crown Publishers 342 pp. THE PLOT A

from the perspective of a technology entrepreneur, a close examination of our current tech world today – as we face off against volatile labor markets and income inequality. Includes a call to action for public policies that this “tsunami of new technology” demands.

crystal clear account of forecasting, interwoven with the incredible story of ordinary people who may be more adept at predicting global events than the 20,000+ intelligence analysts we have in the U.S.

Change Your Space, Change Your Culture: How Engaging Workspaces Lead to Transformation and Growth Rex Miller, Mabel Casey, Mark Konchar Wiley 270 pp.

Culture & Taste Required Reading

THE MEAT Kaplan contemplates the future as a “struggle of assets against people” and delves into how we can best manage serious technological advances, along with the risks they carry. He proposes innovative, free-market adjustments to circumvent looming social turmoil. A beautifully written, finely crafted book that serves as a great companion on the airplane or as a contemplative listen in the car. THE TWIST A unique, dazzling inquiry into how today will mold our humanity. Selected as one of the 10 best science and technology books of 2015 by The Economist.

THE MEAT A

government-funded “forecasting tournament” led to the creation of The Good Judgment Project – a group of average Janes and Joes catapulted to “Superforecaster” status as they predict tough, real-world questions with astounding accuracy. This extensive scientific study arrived at a practical understanding of the techniques and habits that underpin our ability to predict the future. Seeing what tomorrow brings comes down to thinking a certain way. As the authors state, “Foresight isn’t a mysterious gift bestowed at birth. It is the product of particular ways of thinking, of gathering information, of updating beliefs.” Includes “Ten Commandments for Aspiring Forecasters” – and you can join the effort! Develop your own forecasting skills while also helping science at goodjudgment.com.

THE TWIST

THE PLOT A compelling, practical guide to our “era of employee engagement.” Through 30 thought leaders, and from innovative companies like Google, Autodesk, and CBRE, we learn the intricacies of this markedly new era, and gain an incredible bird’s-eye view of how physical space impacts innovation.

THE MEAT Environment is a powerful entity and can inspire dread or enthusiasm, distraction or focus, collaboration or isolation. Leaders must therefore carefully design workspace to achieve the desired culture and workflow – otherwise important initiatives, training programs, etcetera, will suffer. It’s time to combat the grim statistics of workplace dissatisfaction (“70% of the workforce either hates their job or just goes through the motions”) and wasted space (50% of our offices is dead space). The authors propose direct, costeffective ways companies can pull the lever and positively shift culture. And it definitely doesn’t take the enormous operating budget of Google. THE TWIST Cultures of disconnection may prevail in our typical workplaces today, but here’s the enlightened path to our more engaged future. Best line from the book: “Design and Culture are both now part of a powerful new algorithm for effectiveness.”

CSQ.COM / SPRING 2016 - Q2

Other People’s Money: The Real Business of Finance John Kay Public Affairs Books 338 pp.

THE PLOT A tour of the financial world and its evolution, authored by a leading economist with vast experience in both the practical and the academic worlds. THE MEAT A lucid exploration of the nature of finance, including discussion of how the finance sector has grown to dominate the economy, a matter Kay terms, “financialisation.” This is a brilliant and timely treatise on refocusing finance – moving it away from the appropriation of other people’s money to the best contributions it can make to society and to the economy. The essential functions finance provides as described here are payment systems, connecting lenders to borrowers, managing our personal finances across our lifetimes and between generations, and managing risks. Kay outlines a reform strategy, which includes: reducing complexity, lowering costs, enhancing stability, and facilitating the flow of information between savers and borrowers. Kay also discusses the need for an entirely new regulatory philosophy. THE TWIST In arguments a layperson can understand, Kay probes the incredibly important question, “What is finance for?”

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Every child is a start-up. Invest now! Since 1922, Woodcraft Rangers has been one of Los Angeles’ most innovative and successful providers of expanded learning. Over 1.1 million youth and their families have received support since its inception. In the last year alone, more than 14,000 young people (ages 6-18) beneﬁted from NVISION After-School and Summer Programs, all infused with STEM. We work with at-risk students at over 65 public elementary, middle, and high schools throughout the Greater Los Angeles region. In today’s economy, funding these exceptional programs is getting tougher every day, and we pledge to never sacriﬁce quality for cost.

Woodcraft Rangers

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WOODCRAFT RANGERS 340 E 2nd Street, Suite 200 Los Angeles, CA 90012 www.woodcraftrangers.org

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NETWORK

The Network Cover Page

120 VISIONARIES AWARDS IN INNOVATION & TECHNOLOGY 123 BOYS & GIRLS CLUB’S A NEW CHAPTER FOR CHANGE 124 NORTHERN TRUST OPEN 126 SHERWOOD COUNTRY CLUB’S GRAND REOPENING

THE NETWORK C-SUI T E A DVISORY

VISIONARIES SERIES

CSQ’S VISIONARIES IN INNOVATION & TECHNOLOGY CSQ’S 2016 Q1 WINTER INNOVATION & TECHNOLOGY COVER FEATURE ROB LLOYD, CEO OF HYPERLOOP TECHNOLOGIES, INC., WAS THE PRIMARY HONOREE AT THE WINTER EVENT HELD AT HYPERLOOP’S DOWNTOWN LOS ANGELES HEADQUARTERS ON FEBRUARY 25.

HYPERLOOP TECHNOLOGIES, INC. DOWNTOWN LOS ANGELES Every Winter CSQ spotlights one of the region’s hotbeds of economic success and cultural acclaim – the tech space. Whether a startup on the Westside, an incubator in Pasadena, or an idea with global implications in the Arts District Downtown, Los Angeles is home to some of the world’s finest minds and wildest ideas, many of whom were on hand and honored at the event. In recognition of his leadership at the head of a billion-dollar idea with potential for trillions of dollars in impact, CSQ honored cover feature Rob Lloyd as its primary honoree with a Visionary Award in Innovation & Technology. In addition to Rob Lloyd, CSQ recognized three individuals whose determination to succeed and willingness to take chances paid off. Chuck Davis (CEO, Swagbucks), Jason Nazar (founder, Crew32), and Dana Settle (partner, Greycroft Ventures) were also honored as Visionaries in Innovation & Technology. Also awarded was CSQ 2015 Disruptor of the Year - Thrive Market, whose honor was accepted by founder and co-CEO Gunnar Lovelace - and the 2016 NextGen 10, an annual feature profiling up-and-comers at notable companies. On hand to accept awards from the NextGen 10 were Cosmo Scharf (founder, Virtual Reality Los Angeles) and Max Aram (founder, Pick My Solar). In addition to the honorees, programming included introductions from CSQ partners and

contributors Howard Marks (StartEngine) and Ben Kuo (socalTECH.com). Also on hand to introduce Rob Lloyd was Hyperloop Board Member Emily White. Attendees included leadership from AECOM, Hyperloop Technologies, Inc., Clay Lacy Aviation, Bank of America Merrill Lynch, Majestic Realty, Hudson Capital, Defy Media, Avasant, Fox11, and more. The evening was made possible thanks to the host, Hyperloop Technologies Inc., who graciously opened their doors to CSQ and our guests. The event’s supporting sponsors were Bank of America Merrill Lynch, Clay Lacy Aviation, Latham & Watkins LLP, Marathon Coach / Prevost, and Wells Fargo Private Bank. The patron sponsor was Ernst & Young. Guests in attendance received a private tour of Hyperloop Technologies Inc.’s 2.5acre campus, as well as signature Macallan scotch and Tequila Avión tastings and specialty cocktails, Hollywood Smoke cigars, an interactive Lensley Automatic photo booth, and much more. Additional brand partners of the evening included American Tea Room, Food Forward, socalTECH, Sugarfina, and Wilshire Media Systems. Entertainment was provided by DJ Richie Rich and hors d’oeuvres provided by Monrose Catering.

Emily White

The Network Visionaries in Innovation

PHOTOGRAPHERS

Dennis Roy Coronel, Neil G. Phillips EVENT CONTACT

Dana Santulli-Muhlgay, dana@csq.com

Susan Hirasuna, Jemie Sae Koo - 12 0 -

Ben Kuo, Jason Nazar

Dana Settle, Gunnar Lovelace CSQ.COM / SPRING 2016 - Q2

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Howard Marks

Afshin Pishevar, Sanjaya Krishna

The Network Visionaries in Innovation Chuck Davis

David Wur th, Nick Desai, Carolyn Yashari Becher, Joanna McFarland, Sean Kelly

Stacey Olliff, Chuck Davis, Reon Roski CSQ.COM / SPRING 2016 - Q2

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THE NETWORK C-SUI T E A DVISORY

VISIONARIES SERIES

Joana JoannaQue, Que,Alex AlexVoxman Voxman

Max Aram, Rob Lloyd

The Network Visionaries in Innovation

Tara Roth, Craig German

Rich Halvorson, Lindsey Burris, Maria Mejia, Jason Jaggard - 12 2 -

Leroy HughesEvans, II, Ashley Evans, Brian Chung Leroy, Ashley BAML CSQ.COM / SPRING 2016 - Q2

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PARTNERSHIP

A NEW CHAPTER FOR CHANGE MONTAGE BEVERLY HILLS BEVERLY HILLS, CA ORGANIZATION Boys

and Girls Club of Metro LA enable all young people, especially those who need us most, to reach their full potential as productive, caring, responsible citizens. NOTABLE SPEAKERS Denzel Washington (National BGCA Spokesperson), Jim Clark (President & CEO of BGC of America), George Brown (Interim BGCMLA Chair), Marlene Garcia NOTABLE ATTENDEES Stanley Black, Wendy Garen, Matt Johnson, Larry Jones (FOX Sports), Marty Pichinson, Martin Sensmeier, Eric Shanks, Renata Simril EVENT HIGHLIGHTS Marlene Garcia gave a wonderful testimony to the power that the Boys and Girls Club has had on her life. Marlenne has been a club member for three years. During her time at the club she has become a leader among her peers and a valuable role model. Marlenne is a freshman at California Academy of Mathematics & Science Academy where she continues to excel academically. Although she is young she wants to attend Harvard University after high school to pursue a career as a corporate lawyer or systems engineer. MISSION To

Jennifer Price-Letscher, Wendy Garen, Mindy Jones, Jim Clark, Carrie Harlow

The Network Boys & Girls Club

Marje Johnston, Cal Johnston, Stanley Black, Joan Ashton

Allan Young, Guest

EVENT CONTACT

Marlene Garcia

Andrew Tanenbaum, Eric Shanks, Lydia Randolph, Connie Heldman

Renata Simril, Cal Johnston

Jeff Carr, jeff.carr@bgcmla.org

Denzel Washington, Mar tin Sensmeier CSQ.COM / SPRING 2016 - Q2

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C-SUI T E A DVISORY THE NETWORK

PARTNERSHIP

2016 NORTHERN TRUST OPEN RIVIERA COUNTRY CLUB PACIFIC PALISADES ORGANIZATION The

Northern Trust Open is one of the longest-running tournaments on the PGA TOUR. Debuting in 1926 at LA Country Club, the event had been staged at various courses throughout the Los Angeles area before permanently settling at The Riviera Country Club in 1973. The Northern Trust Open boasts an impressive list of past champions that includes 25 World Golf Hall of Fame members such as Sam Snead, Ben Hogan, Arnold Palmer, and Phil Michelson. City of Hope was named the official charity of the Northern Trust Open beginning with the 2013 event. The total generated for Los Angeles charities since the event’s inception in 1926 is now more than $60M.

COMPETITORS Fans were treated to a thrilling tournament featuring the likes of Rory McIlroy, Adam Scott, Matt Kuchar, Fred Couples, Luke Donald, Ernie Els, Sergio Garcia, Padraig Harrington, Dustin Johnson, Jordan Spieth, and Bubba Watson. ATTENDEES The

The Network Northern Trust Open

weekend also drew celebrities from music, TV, and film. The English Beat entertained fans after play on Saturday, and the likes of Mark Wahlberg, Chris O’Donnell, and U.S. Men’s National Soccer Team players were in attendance.

Michele L. Havens, Dustin Johnson, Janet Gretzky

Bubba Watson

SPONSORS In addition to title sponsor Northern Trust the Northern Trust Open is sponsored by MasterCard, Mercedes Benz, Grey Goose, United Airlines, Tiffany and Co., City of Hope, and the FedEx Cup. CSQ was the tournament’s official executive publication. EVENT HIGHLIGHTS For the second time in just three years, long-hitting Bubba Watson tamed The Riviera Country Club and won his second Northern Trust Open by one shot over Jason Kokrak and Adam Scott. Watson brought his own star power to Hollywood, collecting his ninth PGA TOUR victory against a field of the PGA TOUR’s best, including Rory McIlroy, who made his first start at the Northern Trust Open. With Watson’s unique blend of power and shot making, he proved to once again be the man to beat at The Riviera Country Club. PHOTOGRAPHER

Jeremy Fletcher, jfdisenos7@gmail.com EVENT CONTACT

James Jackson, jamesjackson@pgatourhq.com

Dee Ellis, Richard Olmstead, Rober t Stone, Kristin Ber tell - 12 4 -

CSQ.COM / SPRING 2016 - Q2

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Accounting for the past, planning for the future.

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PARTNERSHIP

SHERWOOD COUNTRY CLUB GRAND REOPENING SHERWOOD COUNTRY CLUB THOUSAND OAKS, CA Honor Flight Southland Sherwood Country Club EVENT HIGHLIGHTS The evening star ted at 4:00pm with a ceremonial tee shot by Jack Nicklaus, Dennis Haysbert, Craig T. Nelson, and Nick Dallas (tenured member’s son), followed by cocktails and hors d’oeuvres in the brand new Grove Bar. The Grove Bar is a halfway house and comfor t station in the middle of an oak grove between the 9th green and 10th tee box. The Grove Bar includes two fully stocked bars, TVs, seating area, fire pit, and lounge chairs. At 6:00pm, members were invited to the ballroom for a dinner par ty and celebration, in which Jack Nicklaus discussed the restoration project and the many improvements made to the golf course. The evening also featured a panel of exper ts including Jack Nicklaus, Neil Edwards (Director of Agronomy at Sherwood Country Club), Chris Cochran (Senior Design Associate for Nicklaus Design), and the emcee for the evening, Dennis Haysber t. CHARITY

ORGANIZATION

Craig T. Nelson, Jack Nicklaus, Dennis Haysber t, Nick Dallas

The Network Sherwood Country Club PHOTOGRAPHER

Paul Lester

EVENT CONTACT

Aaron West, awest@sherwoodcc.com

Jack Nicklaus

Patricia Maischoss, Caitlyn Jenner, Jon Lovitz, Karen Friedman

Richard Zeilenga, Jack Nicklaus - 12 6 -

Junior golfers with Jack Nicklaus CSQ.COM / SPRING 2016 - Q2

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ENTERTAIN CLIENTS PLAY WITH A PGA TOUR CHAMPION JUST SIT BACK & RELAX RESERVE YOUR SPACE NOW!

FOR MORE INFORMATION, CONTACT ALEX MALLEN AT (805) 258-1324 OR ALEXMALLEN@PGATOURHQ.COM

OCTOBER 26-30, 2016 SHERWOOD COUNTRY CLUB

REAL ESTATE & FINANCE INDEX

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Who’s In? An index of editorial content for this issue PEOPLE Allen, Paul ......................................68 Atsinger III, Edward G. ..................28 Baiju, Bhatt .....................................24 Bennett, Bill....................................29 Broad, Edythe ...............................109 Broad, Eli ......................................109 Broverman, Eli ...............................24 Burkle, Ron ....................................52 Cadogan, Tim ................................. 57 Caruso, Rick .............................48, 67 Casey, Mabel .................................117 Castagna, Curt ................................28 Cherny, Andrei...............................50 Clarkson, Elizabeth ........................65 Coker, Kathryn .............................112 Cook, Tim .......................................48 Coulter, Ann ...................................29 Counsil, Brian.................................28 Cruttenden, Jeff..............................24 Cruttenden, Walter ........................24 Dell, Michael ..................................98 Diamond, Bob .........................71, 130 Douglas, Sr., Doug .........................69 Duchamp, Marcel ........................109 Dye, Pete ........................................88 Echavarria, Diego ..........................116 Elliot, John ......................................26 Epperson, Stuart ............................28 Esguerra, Clarissa M.....................108 Fiorelli, Michael ............................114 Flint, Deborah ................................ 71 Fraijo, Jacob ...................................115 Frankland Lee, Phillip ..................115 Gabriele, Guy ................................115 Gabriele, Sylvie .............................115 Galassi, Alberto .............................. 37 Garcetti, Eric .................................. 71 Gardner, Dan .................................117 Gates, Bill........................................98 Geithner, Timothy ....................... 130 Gingrich, Newt ...............................29 Goldberg, Keith ............................ 110 Haack, Teri ................................... 110 Hanks, Christina ...........................115 Hawken, Jeffrey C ..........................70 Helman, Jilliene ............................. 51 Herscu, Robert ............................... 61 Heyler, Joanne..............................109 Hollingsworth, Timothy ...............114 Horne, Lewis C. ..............................48 Jackson, William Henry ..............108 Jennings, Eric .................................26 Kaplan, Jerry .................................117 Kay, John .......................................117 Keller, Thomas ..............................114 Kennedy, Caroline .........................76 Kilroy, John ....................................68 Kilroy, Sr., John..............................68 Kilroy, Liam ...................................70 Kim, Nick .......................................82 Konchar, Mark ..............................117 Langere, Damian............................62 Lansing, Sherry ..............................66 Lau, Jimmy .....................................82 Lee, S. Charles ................................52 Lightfoot, Michael ..........................62 Lindsey, Gina Marie....................... 71 Loeb, Josh ......................................112 Markovitz, Harry............................24 McCal, Tom.................................... 80 McCarthy, Paul.............................108 Medred, Michael ............................29 Miller, Rex .....................................117

COMPANIES

Mina, Michael.................................52 Minerd, B. Scott .............................. 72 Morningstar, Kris ..........................116 Munster, Bruce ............................... 72 Murdock, David .............................55 Nathan, Zoe ...................................112 Neroni, Jason .................................115 Ng, Bryant ......................................112 Ng, Kim..........................................112 Nicklaus, Jack ................................88 Noland, Clay .................................108 North, Andy................................... 80 Novogratz, Jacqueline ....................65 O’Brien, Chris.................................32 Opie, Catherine ............................108 Owen Moss, Eric ............................85 Palmer, Arnold...............................88 Patel, Yakin.....................................48 Prager, Dennis................................29 Pritzker, Anthony ..........................98 Pritzker, Jeanne .............................98 Rose, Billy .......................................58 Sacca, Chris ....................................68 Sawhney, Amalia ...........................48 Sawhney, Ravi................................48 Schmidt, Eric ..................................98 Schultz, Howard.............................98 Schulz, Charles M. .........................76 Shahkarami, Moji......................... 110 Shimoda, Joey ................................59 Shipp, Nick ....................................116 Shubin, Russell ..............................56 Silmane, Heidi................................26 Siroya, Shivani................................64 Smith, Frederick ............................85 Smith, Laura Samitaur ...................85 Spilker, Kaye D. ............................108 Stapleton, Ben ................................60 Sze, Sarah .....................................108 Takeda, Sharon S..........................108 Tenev, Vladimir .............................24 Tetlock, Philip E. ...........................117 Thakkar, Ashish........................... 130 Walti, Fred ......................................60 Wasserman, Keith..........................62 Watt, Nadine...................................66 Watt, Ray ........................................66 Watt, Scott ......................................66 Weinstein, Mark.............................63 White, William............................... 74 Yoon, Sang ......................................84 Yoshikawa, Shiho..........................112 Ziman, Dick....................................67 Zioans, Brad....................................84

Acorns............................................. 24 Acumen Fund................................. 67 Aerolease Associates...................... 28 The Agency......................................57 Airbus Corporate Jets ..................... 38 Animal Logic ...................................61 Apple......................................... 49, 67 Arids Lands Institute ......................61 Aspiration ....................................... 50 Atlas Mara ......................................130 Atom Factory.................................. 84 Audemars Piguet............................ 38 Autodesk .........................................61 Avery Dennison ............................. 59 Barclays ...................................74, 130 Barrett Jackson ............................... 33 Beats by Dre ................................... 84 Betterment ..................................... 24 Blind Barber ................................... 85 The Broad ..................................... 109 Bruno Cuccinelli .............................27 Bulgari............................................. 49 Caruso Affiliated ............................ 48 CBRE ............................................... 48 Chai Energy .................................... 59 City of Hope ................................... 66 City Tavern ..................................... 85 Commissary .................................. 116 Crackle ............................................ 84 Credit Suisse ....................................72 Diller, Scofidio+Renfro ................ 109 Domuso .......................................... 62 Eric Owen Moss Architects ........... 85 Eton ................................................ 110 Father’s Office ................................ 85 Ferretti .............................................37 Finish Line Auto Storage................ 32 Framestore Labs ............................. 58 Francisco Partners ......................... 24 The Gadarene Swine ..................... 115 The Gallery Restaurant ................. 116 Gelt Inc ........................................... 62 Gensler ........................................... 48 GoFundMe ...................................... 48 Gooding & Company...................... 33 Google ............................................. 54 Greycroft Ventures ......................... 24 Guggenheim Partners .....................72 Helms Bakery District ................... 85 Hublot ............................................. 49 Hugo Boss ........................................27 The Huntington Library............... 108 Illesteva........................................... 82 InVenture................................ 64, 130 Jaeger-LeCoultre ............................ 38 Jukin Media .................................... 84 Jura .................................................. 34 Kilroy Realty Corporation ............. 68 LA Cleantech Incubator (LACI)....... 60 LADWP ........................................... 60 The La Quinta Resort and Spa....... 88 Le Sereno ........................................ 90 Lehman Brothers ..........................130 Liberty Hampshire..........................73 LinkedIn ......................................... 64 LoanGifting..................................... 48 Los Angeles Business Council ....... 64 LACMA.......................................... 108 Los Angeles World Airports ........... 71 Love & Salt ..................................... 115 Lukshon .......................................... 84 Lunchbox.........................................61 Lyft ...................................................61

Maker Studios ................................ 84 Maple Block Meat Co. .................... 84 Mashable .........................................61 Mastercard ...................................... 49 McLaren .......................................... 34 Merrill Lynch...................................72 MJW Investments .......................... 63 Montblanc ...................................... 38 MOCA ........................................... 109 Netflix ............................................. 54 New Enterprise Associates ............ 24 NFL Media ...................................... 84 NFL Network .................................. 84 The Norton Simon Museum ........ 108 NPR ................................................. 84 Oliver Peoples .................................27 OpenX..............................................57 Otium............................................. 114 Parmigiani ...................................... 39 Pick My Solar ................................. 60 Picnic ............................................. 84 Platform .......................................... 85 Porsche ..................................... 33, 34 Price Waterhouse ............................72 Rag & Bone ......................................27 Ralph Lauren ...................................27 RealtyMogul.com ............................51 Repurpose ...................................... 60 Resource Furniture ........................ 22 Richard Mille .................................. 39 The Ritz-Carlton, Rancho Mirage .... 86 RKS ................................................. 48 RM Auctions ................................... 33 Rolls Royce .................................... 34 The Rose Cafe & Restaurant ......... 115 Rusnak Porsche ............................ 110 Rustic Canyon Group ................... 112 Salem Media Group........................ 28 Samsung ......................................... 49 SAP Ventures .................................. 66 Scopely ......................................61, 84 Shuko .............................................. 82 SilverYachts .................................... 36 SnackNation ................................... 84 Sonos .............................................. 56 Sony Pictures Entertainment ........ 84 Spark Capital .................................. 24 Steelcase Worklife Center LA ....... 58 Sun Air Jets ..................................... 28 T.R. Funding ................................... 32 Ted Baker .........................................27 Terranea Resort ............................. 110 Terrine ........................................... 116 Tod’s.................................................27 True Residential ............................. 22 Tutor Perini .................................... 49 The Upper West ............................ 116 Vacheron Constantin ..................... 39 Warby Parker ..................................27 Watt Companies ............................. 64 Wealthfront .................................... 24 Westfield......................................... 84 Williams Sonoma........................... 22 Wilson Sonsini ............................... 60 WIMCO ............................................91 WISEKey ........................................ 49 Wythe Hotel ................................... 82

Business / People Directory

COMING IN SUMMER 2016

VISIONARIES IN SPORTS & ENTERTAINMENT BE A PART OF THE CONVERSATION. GO TO CSQ.COM FOR MORE INFORMATION OR EMAIL ACCESS@CSQ.COM

Note: Bold numbers indicate starting page of extended article. - 1 28 -

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BUSINESS DIRECTORY

ADVERTISERS DIRECTORY The Auto Gallery theautogallery.com Avasant 310/643.3030 310/643.3032 avasant.com

Cross Campus 310/395.3500 crosscampus.us Digital Synergy Consulting 818/647.9900 dsc.la

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The District by Hannah An 310/278.2345 thedistrictbyha.com

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Burgess Yachts 310/452.5112 burgessyachts.com City National Bank 213/673.8787 cnb.com Clay Lacy Aviation 818/989.2900 claylacy.com CohnReznick LLP 818/205.2609 cohnreznick.com

Ernst & Young 213/240.7096 ey.com

The Mammoth Institute 760/934.0604 mammothinstitute.com Montage Beverly Hills 855/499.9902 montagebeverlyhills.com

Eton 310/458.6900 etonshirts.com

Montage Insurance Solutions 818/676.0044 montageinsurance.com

Galerie Michael 310/273.3377 galeriemichael.com

Northern Trust Open 310/573.5889 northerntrustopen.com

gish SEIDEN, LLP 818/854.6100 gishseiden.com

Socal IP Law Group LLP 805/230.1356 socalip.com Stay AKA 310/597.4287 stayaka.com Sun Air Jets 805/389.9301 sunairjets.com Travel Store 310/752.9165 business.travelstore.com Wells Fargo Private Bank 310/285.5929 wellsfargoprivatebank.com

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Corporate Strategies, Inc. 800/914.3564 corpstrat.com

Powershares QQQ Championship 805/258.1324 pgatourhq.com

Hughes Marino 213/689.3211 310/277.3211 hughesmarino.com

Prevost Marathon Coach 800/837.0895 marathoncoach.com Red Ledges, Utah 877/733.5334 redledges.com

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Woodcraft Rangers 213/249.9293 woodcraftrangers.org

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Jim Freedman Jonathan Zucker Intrepid Investment Bankers 310/478.9000 jfreedman@intrepidib.com jzucker@intrepid.com intrepid.com Jason Hughes Hughes Marino 213/689.3211 310/277.3211 jason@hughesmarino.com hughesmarino.com

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- 129 -

CLOSING BELL BOB DIAMOND

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Closing Bell

Banking on the Future

Former Barclays CEO Bob Diamond is mining Africa’s potential with Atlas Mara, his latest venture BY JASON DEAN

ob Diamond refers to it as “the perfect intersection between doing good and doing well.” In 2013, the New York banker teamed up with Ugandan entrepreneur Ashish Thakkar with the bold ambition of building the leading financial services institution in sub-Saharan Africa. The continent represents a huge source of potential: According to the World Bank, just 34 percent of African adults have bank accounts, compared with 94 percent of adults in developed countries. Atlas Mara Ltd., publicly traded on the London Stock Exchange (ATMA), is earnestly trying to level the playing field on the continent. In its first 18 months, the company acquired eight banks in seven countries, “and we’re in the process with two or three transactions as we speak,” said Diamond, reached by phone as he boarded a flight from Paris to New York in early March. “We are investing time, money, and effort … in an area where the more successful we are, the more we’re helping to create jobs and economic growth in a very important area of the world.” Interestingly, Diamond considers Africa’s lack of traditional banking infrastructure to be an advantage. Technology that is available today “can leapfrog the developed economy banking, which is so branch- and paperreliant,” he points out. Eighty percent of African people have never even walked into a local bank branch, he says, adding that half of the money movements that happen by mobile phone every day originate in Africa. Technology has effectively supplanted the brick-andmortar financial institution in developing countries.

- 13 0 -

Diamond is familiar with Santa Monica startup InVenture, which is using technology to allow banks to give more lending to African consumers and African small businesses (see p. 64). “We have to find new and innovative ways to discover who is an appropriate credit risk and who isn’t,” he says. “We don’t have the data, the files and the credit cards [to create credit profiles] that you have here in the U.S.,” he says. It was just eight years ago that Diamond orchestrated the acquisition of the fourthlargest investment bank in the U.S., Lehman Brothers. Founded more than a decade before Abraham Lincoln became president, the financial institution became a symbol of troubled financial times when it filed for Chapter 11 bankruptcy

Lehman Brothers as well as with the Secretary of the U.S. Treasury [Henry] Paulsen and with President of the New York Fed [Timothy] Geithner the acquisition of Lehman Brothers by Barclays.” Diamond says the deal ended up saving 10,000 jobs in New York, as well as salvaging the pensions of employees of all levels, some of whom had put in 40 years of service or more. A native of the Boston area, Diamond began his career as a professor at the University of Connecticut. He figured teaching was his calling, but he was soon introduced to the world of finance and eventually joined Morgan Stanley, working his way up the ranks. He counts many mentors who were instrumental in helping him develop his management

Closing Bell

It’s so gratifying to be investing time, money, and effort … in an area where the more successful we are, the more we’re helping to create jobs and economic growth in a very important area of the world.

protection on September 15, 2008. At the time, Diamond was president of Barclays. (He would go on to serve as group chief executive from 2011-2012.) “It was probably one of the most unbelievable two-week periods of my life,” recalls Diamond. “With a small group of my team and with the full support of our CEO and board ... we discussed with CSQ.COM / SPRING 2016 - Q2

ability and interpersonal skills, but in terms of “falling in love with the markets,” as he puts it, that happened naturally. “The financial markets are incredible,” he says. “They force you to learn about the world [and] they’re a great judge of talent. They don’t favor anyone; sometimes they’re harsh but they’re also fair.”

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