Canyon Country · Newhall · Saugus · Valencia · Stevenson Ranch · Castaic · Agua Dulce
Santa Clarita Valley Business Journal Santa Clarita’s Only Business Publication
$4.50 · Volume 8 · Number 11
www.scvbj.com
march 2017
SCV Knowledge Exchange:
Marlee Lauffer and Carrie Lujan Page 5
What is the Future of MannKind?
Communications professionals Carrie Lujan,left, and Marlee Lauffer. Dan Watson/The Signal
New Buildings Will Add Much Needed Industrial Space
By Patrick Mullen SCVBJ Editor
M
annKind Corp. has built an in-house sales team that hit the road last month to boost sluggish sales of Afrezza, its inhalable form of insulin. The question the company faces is how much time the new sales team will have to do its job. The Valencia biopharmaceutical company’s stock has traded below Nasdaq’s minimum $1 ■ MannKind Corp CEO Matthew Pfeffer with the per share threshold since August. company’s Afrezza insulin inhaler. Photo by Jonathan Pobre. In September, Nasdaq gave the company notice that it would and ten, thus increasing the value of each delisted unless its stock closed above $1 per share. The company’s market capitalization share for 10 consecutive trading days by is not changed. March 13, 2017. “We cannot and will not allow the comAs that deadline approaches, the compa- pany to be delisted,” MannKind CEO ny has announced plans for a reverse stock Matthew Pfeffer said in a conference call split. That will reduce the number of shares See MANNKIND, page 14 outstanding by a factor of between three
Graded site of the IAC Commerce Center in Valencia. Courtesy photo.
By Patrick Mullen SCVBJ Editor
B
usinesses looking for industrial space in the Santa Clarita Valley will have more options by the second half of this year, thanks to projects that are now under construction in the northwest part of the valley. The new space adds muchneeded capacity to a tight market for commercial space. Exterior walls are going up on three buildings at IAC Commerce Center at the top of Witherspoon Parkway near Valencia Commerce Center. The property is two miles west of the intersection of I-5 and Route 126. The site contains about 70 net acres or three million square feet of land, and will contain up to 1.3 million square feet of space, said Craig Peters, senior vice
president of CBRE Group, brokers for the property’s developer. He spoke at a walltilting ceremony at the site held on Feb. 15. International Airport Centers is developer of the project. Based outside Chicago, the privately held real estate operating company was formed in 1995. It owns or manages 3.2 million square feet of space. This project is part of another 1.7 million square feet under development. While Peters spoke, a crane behind him lowered a 40-ton wall section into its trench, part of a 116,000 square foot building that is one of three in the project’s first phase. Phase One includes buildings of 188,000 square feet (Building One) and 94,000 square feet (Building Two) in addition to the 116,000 square foot Building Nine. IAC bought the property from Sterling See IAC, page 9
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Canyon Country · Newhall · Saugus · Valencia · Stevenson Ranch · Castaic · Agua Dulce
Santa Clarita Valley Business Journal Santa Clarita’s Only Business Publication www.scvbj.com
$4.50 · Volume 8 · Number 11
march 2017
4
Cover SCV Knowledge Exchange: Marlee Lauffer and Carrie Lujan What is the Future of MannKind? New Buildings Will Add Much Needed Industrial Space
Editorial SCVBJ Editor
Patrick Mullen pmullen@signalscv.com 661-287-5509
Features
SCVBJ Managing Editor
Tuition Reimbursement: What’s In It For Me? . . . . . . . . . . . . . . . . . . . 7
Jana Adkins
Consumer Sentiment in LA County Bucks National Trends. . . . . . . . . . . . . . . . . . . . . 7
661-287-5599
jana@signalscv.com
Stonefire Aims to Stay Family Focused With New Investors. . . . . . . . . . . . . . . . . . . . . . . . . . 8
Advertising 661-287-5564
Santa Clarita Extends Film Incentive Program. . . . . . . . . . . . . . . . . . . . . . . . . . 10
Advertising Director
Six Flags Launches “Mixed Reality” VR Coaster. . . . . . . . . . . . . . . . . . . . . . . . . . 10
Steve Nakutin
Local Providers Invest in Technology . . . 11
snakutin@signalscv.com
SoCalGas Aims to Install Fiber Optic Cable to Detect Leaks, Line Breaks. . . . . 12
661-287-5561 Multi-Media Account Executives
City Council Supports Wilk’s Anti-Cemex Bill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Dawn Begley Maureen Daniels
Public and Private Investments Bear Fruit in Newhall. . . . . . . . . . . . . . . . . . . . . . . 14
Toni Sims
LIMS Studio Offers Free Training to Veterans . . . . . . . . . . . . . . . . . . . . . . . . . 15
Administrative Assistant
Valencia Acura Receives Limited-Edition NSX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Courtney Briley
Local Firm to Manage Hart HS Expansion. . . . . . . . . . . . . . . . . . . . . . . . . . 17
Circulation
End of an Era: SCV’s “Appliance Doctor” Retires. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Bank of Santa Clarita to Close Branch. . . . . . 18 Retail Outlets Adjust as Consumer Demand Evolves . . . . . . . . . . . . . . . . . . . . 19 4 Ways to be the Brady and Belichick of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SCV Business Services The List: Aerospace and Defense. . . . . . . . 20 Appointments . . . . . . . . . . . . . . . . . . . . . 21 SCVEDC. . . . . . . . . . . . . . . . . . . . . . . . . 23 VIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 SCV Chamber of Commerce. . . . . . . . . . 25
Real Estate Section Commercial Real Estate. . . . . . . . . . . . . . . . . 26 Residential Real Estate. . . . . . . . . . . . . . . . . . 28
■ Construction progress at the IAC Commerce Center in Valencia. Photo by Patrick Mullen.
Circulation Manager
Pam Conley
From the Editor In this issue, you’ll find evidence of new construction and new uses for existing property. By summer, the three industrial buildings that make up Phase One of IAC Commerce Center will be complete, helping to ease a shortage of such space that has grown more acute as the economy has recovered. Old Town Newhall’s rebirth as an arts and entertainment hub continues. Ground breaks this month on the parking garage at the corner of Ninth and Railroad on the block that will be home to a new Laemmle theater and a mixed-use project. Up the street, the city is turning the former Repertory East Playhouse into “The
661-287-5580 Main,” an arts center. Starting with a conversation between communications professionals Marlee Lauffer and Carrie Lujan in this issue, our Knowledge Exchange feature will bring together pairs of local professionals for conversations about the current state of business here and some thoughts on where things are going. Enjoy.
Art/Production Graphic Design Supervisor
Deborah Runions Photographers
Daniel Watson Katharine Lotze Executive Staff Publisher
Patrick Mullen SCVBJ Editor pmullen@signalscv.com
Charles F. Champion II cchampion@signalscv.com 661-287-5578 Vice President and Editor
15
■ The VET 200 boot camp at LIMS Studios for post-9/11 veterans provides free training for TV and film jobs, including dolly operators and grips. Courtesy photo.
Index of Products and Services
Jason Schaff
Colliers International. . . . . . . . . . . . . 28
LBW Insurance Financial Services. . . . 11
661-287-5515
Exclusive Service Directory Group. . . . 28
Mission Valley Bank . . . . . . . . . . . . . 13
Fast Frame. . . . . . . . . . . . . . . . . . . . . . 4
Newhall Mansion . . . . . . . . . . . . . . . . 2
Henry Mayo Newhall Memorial Hospital. . . . . . . . . . . . . . . . . . . . . . . 17 Hyatt Regency Valencia. . . . . . . . . . . . 4
SCVEDC . . . . . . . . . . . . . . . . . . . . . 15
JD Systems. . . . . . . . . . . . . . . . . . . . . . 6
Valencia Acura. . . . . . . . . . . . . . . . . . . 9
Lawn Kings. . . . . . . . . . . . . . . . . . . . . . .28
Valencia Country Club . . . . . . . . . . . . 2
jason@signalscv.com
Online www.scvbj.com
Signarama. . . . . . . . . . . . . . . . . . . . . . 4
Santa Clarita Valley Business Journal (a Signal publication), © 2017, is published monthly by the Santa Clarita Valley Signal newspaper, Paladin Multi-Media Group, Inc., 26330 Diamond Place, Santa Clarita, CA 91350. The SCV Business Journal is intended to provide business executives with a cross-section of industry news and information, trends and statistics that impact our growing community. Information gathered in the pages of the SCV Business Journal has been collected from what are considered reliable sources, and is believed to be accurate, but cannot be guaranteed. Articles may not be reprinted without publisher’s written permission. For reprint requests, please call 661-259-1234.
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SCV Knowledge Exchange:
Marlee Lauffer and Carrie Lujan By Patrick Mullen SCVBJ Editor
T
his issue marks the debut of a new feature in the Santa Clarita Valley Business Journal: Knowledge Exchange. Each month, we’ll bring together two members of our community who play an important role in the business life of our community. They’ll share insights on their profession, on their thoughts on doing business in Santa Clarita, and on what makes our community unique. Our first participants, Marlee Lauffer of Henry Mayo Newhall Hospital and Carrie Lujan of the City of Santa Clarita, have high-profile jobs by virtue of being principal spokespersons for their organizations. Lauffer joined Henry Mayo in 2015 after more than 20 years with Newhall Land. Lujan is a more recent arrival, having started her job here four months ago after serving in a similar capacity with the City of Santa Monica. Lauffer and Lujan sat down with SCVBJ Editor Patrick Mullen. SCVBJ: Why did you choose communications as a profession? Marlee Lauffer: Growing up I was fascinated with the written word and the ■ Carrie Lujan,left, and Marlee Lauffer. Photo by Dan Watson/The Signal. spoken word, and with communications tactics. I did speech and debate in people are thinking, rather than jumping in and saying, “I high school and college, and was a political science/com- know how to solve that,” when you don’t even know what munications major at UCLA. So I always knew I wanted the issue might be, or what’s been done in the past. to do something involving communications. Lujan: From my background as a reporter, I always ask Carrie Lujan: Growing up I always loved reading and writ- a lot of questions. That’s the best way to find out about ing. When other kids were playing with dolls and games, people personally as well as whatever the issue or topic is. I’d be in my room with books. That’s where I developed my love of storytelling. I worked for the college paper at Lauffer: Carrie, one great thing you’ll find about the Santa Cal Poly San Luis Obispo, and interned at the local NBC Clarita Valley is a great sense of community. When I first affiliate. I love journalism, and worked as a newspaper re- moved here, I made a point of going to all the Chamber porter and as a television reporter. I went into public rela- events and the non-profits and business conferences, to abtions, and traveled the country as a spokesperson for our sorb the community. Everyone was very welcoming. I still clients. I enjoyed that for a time, but realized I could not know this to be a welcoming and active community, with talk about bikinis and coconut shrimp forever. I wanted to a lot of pride. I think as you get around, you’ll see that. do something meaningful. I’d worked with a lot of PIOs, Lujan: I’m already seeing that. Coming from Santa Monipublic information officers, and ca, a much smaller city geographithought that would be a great cally and in population, to Santa career to go into. So I worked Clarita, the third largest city in for the City of Santa Monica Los Angeles County, I expected for three years, and was fortuit to feel big and spread out. I’ve nate to get hired on here by the been amazed at just how strong a City of Santa Clarita. sense of connectedness and community we have and how involved Lauffer: After college, I worked so many people are. I’m trying to for a state legislator, which is make sure I learn my job first betrue grassroots communicafore I jump into all those things. tions. You have to explain what they’re doing in Sacramento SCVBJ: What is the best and take issues from the district part of your job? up to them. Elected officials – Marlee Lauffer Lujan: I love writing, I love social better have good information media, I love video. So for me dowhen they face the voters every ing those things is not really work. few years. It was a great learnI hope my enthusiasm for the work is contagious and that ing opportunity. From there I went to Newhall Land, first as community relations manager and media relations the great team I have feels it too, spokesperson. That evolved into investor relations, com- Lauffer: My favorite part of the job is that every day is a municating with the financial world. Twenty-plus years little bit different. I never quite know what challenges or at Newhall really honed my communications skills. From opportunities might be on my plate. It makes it exciting there, I came to Henry Mayo Newhall Hospital, which is a to come into work. That keeps me engaged and excited. place I’ve always volunteered. And I enjoy the relationships and connections I’ve built by working with people in all different aspects of life in the SCVBJ: You’ve both been in the communications business Santa Clarita Valley. for a while, and now find yourselves in fairly new
“
I expect we’ll have a more expanded business community We’ve put ourselves on the map as a great place to have a corporate headquarters.”
jobs. What’s your strategy when starting a new job? Lauffer: The most important thing you can do when you’re new to something is to listen more than you talk. By listening, you give yourself a chance to find out what
Lujan: I agree with that. Being in communications gives us an opportunity to learn so many stories from so many people. Being in a community that is so close-knit helps
me learn what’s what and who’s who. SCVBJ: What advice do you have for business owners when they have news, good or bad, to communicate? What are some common mistakes you see? Lujan: Transparency is so important working for a local government. Make sure you present the facts honestly. If something has gone wrong, own it, admit what’s happened and say what the next steps are. If you’re going to bring up a problem, be sure to point toward a solution. Make sure you have cohesive messaging with an assigned spokesperson. You don’t want people from different departments or different parts of the company saying things that aren’t on the same page. That will get you in trouble and create a lot of confusion. Lauffer: I agree. Be completely honest on all issues. I’ve seen companies or business leaders get in trouble when they try to spin a little bit or deflect. People are very smart. I give a lot of credit to community residents. They get what’s going on, so be honest with them. Just say, “Our company is facing this problem, or this issue occurred.” Like Carrie said, give as many facts as you can. But never try to spin. Business people also need to put things in perspective. Sometimes things can roll out of control. So it’s important to be able to say, for instance, that 90 percent of companies that manufacture this product will have this failure occur. As long as that’s factual and accurate, if you put a situation in perspective, the community is very smart and will listen. SCVBJ: You both speak to the entire community. How do you talk to different parts of such a broad audience and be understood? Lauffer: We have overriding messages, making sure the community knows what a great resource the hospital is. We have a “we care” attitude that you’ll see throughout a lot of our communications. We do a lot of social media and e-blasts, and we also have a publication that we send to every homeowner in the Santa Clarita Valley. We rely on print media and try to have a good relationship with local media. And we have about 2,000 employees who are great ambassadors. They’re not official spokespeople, but we make sure they’re armed with information, so when their neighbors ask them about things going on at the hospital, they know. See KNOWLEDGE, page 6
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SANTA CLARITA VALLEY BUSINESS JOURNAL
KNOWLEDGE
Continued from page 5 Lujan: With each project or program we have, we identify the target audience. If it is something that is for the whole community, we will push it out on different platforms. Some people prefer to read the news on paper, so we have our Seasons magazine with information from the city manager and city council as well as all the recreational information. For the millennials we’re very active on social media. SCVBJ: What’s different about the Santa Clarita Valley for a city its size? Lujan: I come back to that overwhelming sense of community. We’ve got a lot of people who are dedicated to a number of organizations that improve our community and maintain our high quality of life. I was a bit of a surprise; I’ve never lived in a place that has such a strong sense of being connected. Lauffer: You know what, Carrie, I’ve been here for 25 years and I haven’t seen that sense of community wane at all. Of course the community has changed. It’s grown dramatically. It has many more businesses. We’ve gotten a lot more services, more restaurants and cultural activities. We’ve become more diverse. But throughout the valley, we all want the same things: a safe community, a good educational system, a good place to raise kids, parks and recreation and lots of outdoor activities. The lore is that we’re surrounded by these mountains, so we’re isolated, even though we’re not. We’re part of greater Los Angeles. Visually, when you come over the Newhall Pass and into the valley, I think you take a deep breath and say, “we’re all in this together.” We’re also unusual in that we have one independent community hospital, run by a 15-member community board. So decisions are made by local residents. We’ve also got a great community college and CalArts. So we have local institutions that we can take pride in. Lujan: Our geography also sets us apart in another way. It’s probably one of the few places in the county where a city doesn’t have another city immediately bordering it.
JDS_Half_SCVBJ_0316.indd 1
MARCH 2017
Santa Monica has more of a tourist destination mindset with people coming into the city to work and play. It didn’t have the sense of connectedness I get here. SCVBJ: Where is the Santa Clarita Valley headed? Lauffer: I expect we’ll have a more expanded business community. We’ve put ourselves on the map as a great place to have a corporate headquarters, with Logix coming in, and Sunkist before them. We’ll see additional companies move here. With that comes an array of employees of all different ages. We’re starting to become a destination for younger employees. Laemmle Theater is going to really help with that. We’re seeing ■ Carrie Lujan, communications manager for the city of Santa Clarita. Photo by Dan more independent restaurants and Watson/The Signal. shops. That will create a new level of lifestyle experiences for resiHollywood North. We’ve had a lot of filming here over the dents. We’ve always been a business destination, and over years. We’ve had the pot smoking mom from Stevenson the last 15 years it’s been increasing dramatically. The Eco- Ranch in “Weeds.” We’ve been blown up on “24.” We’ve nomic Development Corporation plays a big role in that, had shootouts on Melody Ranch. One thing about “Santa as does the county. Clarita Diet,” like the show or not, is that it uses our name, Lujan: I agree. There’s been so much revitalization in Old and it pumps a lot of revenue into the community since the Town Newhall with the theater and other new businesses production was done here. It’s not my type of show, but coming in. That will draw a younger crowd. It’s a great if Drew Barrymore and Tim Olyphant want to be here, area to walk around. We have many great events down that’s fine. there, with art events and the Cowboy Festival coming Lujan: The show has been really good for our city’s film up. Businesses want to be here and their employees want department. Any time we get this much publicity, and to live here. Our City Council recognizes the need amid there has been a lot of publicity, it helps get the word out the growth to preserve open space and provide a buffer of to other film productions and TV shows that this is a good green space around the city. place to shoot, and that brings more money into our local economy. As for the topic of the show, I can absolutely see SCVBJ: Have either of you seen the Netflix show that it can rub people the wrong way. But it’s supposed to, “Santa Clarita Diet?” Do you have any thoughts that’s the idea of it, it’s supposed to be shocking. on our emergence on the world stage? Lauffer: We’ve been on the world stage for a while. We’re
SCVBJ: Thank you both. ■
3/15/16 9:07 AM
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Tuition Reimbursement:
What’s In It For Me? Dear Ken Keller, In early January, several employees came to me and asked about our tuition reimbursement policy. Each said that they wanted to go back to college and get their degree at night and on KEN KELLER the weekends. For years I have heard the radio ads, seen the TV ads, and have gotten direct mailers so I am well aware that many universities and colleges offer all kinds of degree programs for working adults. Right now, my company does not have a policy on this. From time to time I have paid for employees to attend various workshops or seminars on specific subjects related to work. I’m not opposed to creating a tuition reimbursement program, but I do have a concern that if I do this, and pay for my employees to get their degrees, they will leave for greener pastures. I told the employees that we did not have a tuition reimbursement policy but I would let them know by the end of March what my decision is. In the meantime, they all signed up and started taking classes. You speak and know a lot of CEOs, business owners and entrepreneurs. What are other companies doing? — Joseph P. Dear Joseph: There are many different dimensions to what you are asking. So let me provide perspective as it impacts your business today and in the future. Many companies offer tuition reimbursement for their employees. Most of these programs include guidelines for the degree sought, minimum grades required to be reimbursed; limitations for book purchases and an annual spending cap.
Your human resources manager or consultant can help you to get those specifics to help you set up your own program. It appears your immediate concern is people having your company pay for their degrees through a reimbursement process and then they depart to work somewhere else. Your company would be more negatively impacted if these same individuals did not go back to school and decided not to improve their skills, or knowledge, or enhance their toolkit, and made a decision to stay working for you. Do you want people working for you who aren’t interested in bettering themselves? What you will then reap is a workforce rapidly falling behind in skills, perspective and thinking. The isolation of working in the same place, day after day, for years, without being exposed to new ideas, learning new skills and accomplishing something more than just doing the minimum to get a paycheck is a recipe for stagnation. It will make your company rapidly less valuable to clients and to potential buyers. When individuals make a decision to go back to school at night and on the weekends, they are making a major life decision. You can be assured that they thought through all the personal ramifications related to themselves and their families. These employees are not just asking you to make a financial contribution. They are asking for your support as their boss, as an investor in their personal and professional future. I had the pleasure, many years ago, of working for a company with a tuition reimbursement program. In fact, even though the policy had been around for a long time, I was the first employee to take advantage of it. From the first class I took, in Production and Operations Management, I was able to make many cost savings implementations in my division. One of my bosses later told me, “No matter how we pay you, it will never be enough.” He said that because he saw the value in what I was learning and applying. I stayed with that employer for more than three years after I earned my MBA.
And, I suspect, having taught working adults in degree programs for ten years, your employees are going to be able to make immediate contributions to how your company operates. One client of mine has an administrative staff member in an evening degree program. This employee has already introduced the CEO to two of her instructors who were then hired to complete several critical projects that were beyond the scope of the current staff. The savings from not having to pay the headhunter fees alone have more than paid for her entire degree program. It is a given that many of your employees will not spend their entire careers with you. You should expect and even encourage them to move on to bigger and better things. Encourage your people to earn their degrees and do such good work that they will be attractive targets to be hired away. In other words, pay it forward. I will assume that you are the sole owner of the business and that you will sell your business someday, for as much as you can get for it. What is very attractive to a potential new owner is an educated and motivated management team. Investing in your employees to get their degrees can earn you many more times that dollar amount when you cash out. ■ Ken Keller is the CEO of Strategic Advisory Boards. Strategic Advisory Boards guides leaders to their desired future through use of peer perspective, best business practices and leadership tools while reducing risk and unnecessary expense. For a complimentary leadership assessment, please visit www.strategicadvisoryboards.com. Keller’s column reflects his own views and not necessarily those of The SCVBJ.
Consumer Sentiment in LA County Bucks National Trends By Patrick Mullen SCVBJ Editor
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os Angeles County residents might have a darker view of where the economy is headed than those who live in other parts of the country, according to a new survey of local consumer sentiment. The first Lowe Institute Los Angeles Consumer Sentiment Index unveiled last month shows a 12 percent decline in the fourth quarter 2016 versus third quarter 2016 results. “This is a notable drop in consumer sentiment, though it is just for one quarter.” said Marc Weidenmier, director of the Lowe Institute of Political Economy at Claremont McKenna College in Claremont on the eastern edge of Los Angeles County. “If the first quarter 2017 results also drop then we can view this as a downward cycle.” The Institute decided that Los Angeles could benefit from its own consumer sentiment survey, given its population of more than 10 million and standing as the third largest metropolitan economy in the world “National consumer sentiment surveys usually have a sample size of 500, and that’s just not enough to be able to say anything useful about Los Angeles,” Weidenmier said. The index is designed to shine a light on future consumption patterns by Los Angeles area residents, which drive prospects for the local economy. Consumption accounts for, on average, 70 percent of all U.S. economic activity.
The institute collected data for six quarters before releasing its first consumer sentiment index. Among the factors that can drive differences from the national survey is Los Angeles’ multicultural and diverse economy that is not reliant on any one industry, its position as a gateway to the Pacific Rim, and other business and economic variables that are distinct to the region. Since the results coincided with the election of Donald Trump as President, Weidenmier said it might reflect a one-time “Trump bump” that reflects three factors. One is the high proportion of Democrats in Los Angeles County, who may have been expressing their surprise at the election results. Second is trade, given Los Angeles’ ranking as one of the world’s busiest ports. “Any Trumprelated trade barriers are going to have a greater impact here” The third factor is immigration. “We have a substantial low-wage legal and illegal immigrant workforce, if barriers to immigration rise, that’s a big issue in LA.” “The Index serves as a timely source of information crucial to assessing the pulse of the local economy but also as an example of how localized knowledge can be captured and utilized to improve forecasting and decision making,” said Robert J. Lowe, founder of the Lowe Institute and chairman of Lowe Enterprises, a national real estate firm based in Los Angeles. “The fourth quarter results bear out the need for Los Angeles County data as the
national consumer sentiment survey showed an uptick during this same period,” Lowe said in a statement. Businesses should be cautious and take a ‘wait and see’ approach before making major inventory commitments, Weidenmier said. For governments relying on sales tax revenue, it’s not time to redraw the budgets but time to pause and consider the potential ramifications if we head into a period of decreased consumption.” The decline in Los Angeles consumer sentiment was across all ethnic groups – African American, Asian, Hispanic, Caucasian and other. The decline was also consistent across most age groups with the exception of senior citizen (65+) respondents. There was a significant uptick with senior citizens and a very small uptick in the 45-54 age group. The survey also asks for respondent’s employment status and includes full-time and parttime employed, self-employed, homemaker/ domestic engineer, students and unemployed. There was a significant decline in consumer sentiment across all six groups. There was a slight uptick in consumer sentiment among retirees. The survey’s random sample of 500 respondents is identified by age, gender, ethnicity, income, and zip code. Respondents answer seven questions about their current situation, perceived future prospects, and spending plans. People are asked to assess whether they see their financial situation getting better or worse over the coming year and how this is linked to their perception of recent business conditions both in
■ Marc Weidenmier, director of the Lowe Institute of Political Economy at Claremont McKenna College. Courtesy photo.
Los Angeles and in the nation as a whole. They are also asked directly whether they think their chances of finding a new job are likely to improve over the coming year and whether they think the next year would be a good time, or a bad time, to buy a new car. Weidenmier said he wasn’t surprised by the results. “I was more surprised by statewide polls showing sentiment moving in a positive direction. We’ll know more when we have the next quarter’s numbers in May.” The survey currently surveys residents of Los Angeles County, with plans to add Orange County later this year. National consumer sentiment has been measured by the University of Michigan since the 1950s and its predictive abilities have led to that survey’s inclusion in the government’s index of leading economic indicators. ■
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
Stonefire Aims to Stay Family Focused with New Investors, Expansion Plans
■ Stonefire Grill plans to add three new restaurants this year. Courtesy photo.
By Paul Parcellin SCVBJ Contributor
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plan was part of his master’s thesis. running as a family business. Mary’s sons Kyle and Justin Lopez, who are now manThe company has dealt with similar identity problems aging the company, were cashiers when the restaurant first earlier in its 17-year history, when it was expanded from opened. two restaurants to four, including two in Orange County. They will continue to run the company, and they plan to At that point the company was not well known in the Los maintain the chain’s home-style, Angeles market, although it was family atmosphere. becoming more recognized. Although the Lopez brothers The first two Stonefire locadid not originally aim to get into tions became profitable without the restaurant trade, when they the benefit of formal promofinished school they had develtions. But making the restaurants oped an appreciation for the famcatch on in Orange County was ily business. These days, Kyle is more of a challenge. Stonefire’s director of operations They had to develop tactics to and Justin manages the compaattract customers at the new lony’s marketing campaigns. cation. The company revised its Before he went off to school, brand to one that could keep the Justin got a first-hand underoriginal locations on track with standing of how the business the customer base and at the – Matthew Calabrese, Stonefire CFO ran. He was a team member same time attracted new customwhen their first location opened ers as the chain grew. in 2000, performing all kinds of jobs, from punching the Until opening the Orange county locations, Stonefire cash register to delivering food. had not needed to spend money on advertising. Not being
ince sisters Mary and Maureen Harrigan started Stonefire Grill in Valencia in 2000, it has grown to eight locations and employs 1,000 workers. Now, a majority investment by a private equity firm, Goode Partners LLC of New York, likely means the business will continue to grow. When they first opened their doors almost 17 years ago, the restaurant was a family business. The Harrigan sisters had pooled their life savings and mortgaged their homes to raise the $350,000 needed to open their first Stonefire Grill restaurant. Within one year the partners had repaid the bank in full and had earned $1 million. By 2008, Stonefire Grill was ringing up more than $30 million in sales. Over the years the company continued to grow, and now plans are in the works to make it expand even more. To make the transition go easier, Stonefire management plans to make the expansion proceed at a moderate speed. Three new locations are planned this year, and they will maintain the same cautious pace thereafter. The goal is to open two to three locations each year. “We aimed to find a great partner with a desire to sup- The Hometown Feel port a deliberate growth model, a bit more rapid than we’ve One issue the managers will face is how to keep a homegrown in past years,” said Matthew Calabrese, Stonefire town feel to the chain when it expands well beyond the Grill’s chief financial officer. place where it started. Many patrons come to expect a level Goode Partners focuses on investment opportunities in of familiarity with the customers that a homegrown busithe retail, restaurant, apparel, direct marketing and brand- ness develops. Once the company begins to employ many ed consumer products sectors. more workers and expand its customer base it’s possible The plan is to stick to the restaurant chain’s successful that the regulars will feel alienated. formula and core values as a family-oriented business as the Anticipating just such a problem, Justin carefully develcompany grows larger. According to Calabrese, “It’s still oped the company’s branding and marketing strategy when business as usual.” he returned to the chain in 2010 following his studies at Under Stonefire’s fast-casual approach, diners place their the London School of Economics – a Stonefire marketing order, pick up drinks and utensils and sit at any open table. The chain does not take reservations. The restaurant focuses on family style dining, designed to accommodate multiple people with different tastes and appetites. It promotes sharing by providing a variety of combined salads, side dishes and entrees to each table. Stonefire serves pizza, pasta, sandwiches & grilled American entrees, plus wine and beer. Stonefire and the new partners have not disclosed how much Goode is investing in the company, or the percent of equity the investors will hold in the company. While the new financial backing of the company is expected to drive growth, the founders plan to keep the operation ■ Mary and Maureen Harrigan, founders of Stonefire Grill. Courtesy photo.
“
We aimed to find a great partner with a desire to support a deliberate growth model a bit more rapid than we’ve grown in past years”
tied to an existing ad message allowed them the flexibility to design a branding strategy that would let the new communities know what Stonefire Grill is like and what they offer.
Finding the Right Help For now, the biggest challenges facing the chain are maintaining the restaurant’s image and hiring help in distant locations that can continue to deliver the kind of service and quality food that the chain was built on. As the chain expands, the focus will be on finding the right people, and the right locations, that will allow Stonefire to continue to produce the dining experience that has made it successful, said Justin. Some of the employees have been with Stonefire since its inception, including those who came from another Harriganmanaged restaurant in Santa Clarita, Rattler’s BBQ, which opened in 1988. Justin said that Stonefire was fortunate to have partnered with a firm that supports moving forward at a slower, more deliberate pace in order to expand responsibly. The goal is to continue investing in people while creating long-term, lasting relationships. Stonefire is committed to be of service to the community, and Justin said that they are lucky to partner with Goode, who shares that commitment. ■
MARCH 2017
IAC
Continued from page 1 Gateway, a limited partnership formed in 1999 by Ted Sterling, who discovered the Castaic Hills oil field in 1951, and who had earlier plans for an industrial park. Sterling’s grandson, Hunt Williams, was on hand for last month’s wall tilting ceremony. The current project could ultimately include fewer than the envisioned nine buildings. Phase Three is slated for four buildings, but that could change if a client wants a building of up to 560,000 square feet built to suit their needs on that part of the property. The buildings can also be subdivided. Peters called them “the most state-ofthe-art industrial buildings in the LA North market,” which includes the Santa Clarita and San Fernando valleys. “We haven’t had buildings like this, with 30-foot minimum clear heights and ESFR fire protection systems.” Such early suppression fast response systems are designed to provide high volumes of water in warehoue buildings with stacked storage. No tenants have been signed yet, but that’s not unusual, said Larry Krasden, IAC’s president and chief investment officer. Prospective tenants will typically wait for construction to be well along rather than pre-lease unbuilt space. Phase One of IAC Commerce Center is expected to be ready for occupancy in the third quarter of 2017, with a caveat usually associated with other parts of the country: weather permitting. The wall-tilting ceremony took place during a sunny interlude between unusually rainy stretches last month that are great news for drought relief but tougher on construction schedules. Once complete, Phase One will add much-needed space to a tight real estate market. One sign of demand outstripping supply has been climbing lease rates for commercial and industrial space in Santa Clarita. Chris Fitzgerald, an associate with NAI Capital, cited a 5,000 square foot industrial condominium on Constellation Road that sold for $238 per square foot in December. “Lease rates have steadily been climbing,” he said, “and that’s a good indicator that the market is tight.” He said average lease rates climbed from 64 cents per square foot in 2014 to 74 cents last year. More broadly, the greater Los Angeles industrial market has seen record low availability levels while demand is ever increasing, according to CBRE. During the current development cycle, construction has averaged 3.2 million square feet a year since 2013, well below the previous peak cycle of 7.2 million square feet between 2004 and 2007. Vacant space in Valencia has been especially limited and rental rates have been steadily rising to reflect this lack of supply, a trend that is likely to continue in the foreseeable future, CBRE said. “One of the major limitations we’ve had in helping bring companies up here is the lack of space, especially in the larger sizes,” said Holly Schroeder, president of the Santa Clarita Valley Economic Development Corp. “So it’s exciting to have this new project here in the Santa Clarita Valley,” she said at the wall tilting event. IAC Commerce is not the only project
SANTA CLARITA VALLEY BUSINESS JOURNAL
that will be ready for tenants this year. Less than a half mile away, the latest addition to Valencia Commerce Center called Industry Gateway is under construction on West Industry Drive. Due for completion by August, the building will add 47,000 square feet of industrial and office space available for sale or lease to the market. It will contain 38,000 square feet of warehouse space on the ground floor and open office space and conference rooms on the first and second floors. The developer is Industry Associates, LLC. Peters and Sonderegger of CBRE are also brokers on Industry Gateway. CBRE Group, based in Los Angeles, is the world’s largest-based world’s largest commercial real estate services and investment firm, based on 2015 revenue. ■
■ Phase one of IAC Commerce center, to the right in this site plan, is under construction. Courtesy rendering.
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
Santa Clarita Extends Film Incentive Program By SCVBJ Staff
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anta Clarita City Council last month extended the city’s film incentive program through June 30, 2018, the end of the city’s next fiscal year. The program is aimed at retaining and increasing feature and television production in the city of Santa Clarita and the Santa Clarita Valley by subsidizing permit fees, in addition to reducing costs of safety personnel as much as possible. Since launching the incentive program in 2009, the city has refunded more than $396,000 to more than 100 locally-based, recurring, and state film credit-approved productions. For each of the last three years, the city’s film office has issued more than 500 filming permits and seen more than 1,300 filming days. Filming pumped an estimated $33 million into the local economy last year, said Evan Thomason, director of the film office and economic development associate for the city. “We work hard to be a film-friendly city,” he said. “We’re in the 30-mile zone, we benefit from the California Film & Television Tax Credit Program, and we offer a wide variety of locations that can double for almost anywhere in the world.” Disney’s “A Wrinkle in Time,” directed by Ava DuVernay, has been filming in Santa Clarita since November. It is the highest-budget film to date to receive state film tax credits. According to the California Film Office, it will bring $85 million in qualified spending to California and receive an incentive of $18 million from the state. To date, location filming from productions that have received city tax incentives has resulted in an estimated $85.2 million in economic impact to the Santa Clarita Valley. The program offers refunds of basic film permit fees
■ Ava DuVernay is directing “A Wrinkle in Time,” which has been filming in Santa Clarita and has received state and city tax credits. Courtesy photo.
and portions of hotel occupancy taxes to qualifying productions and has a subsidy cap of $75,000 per fiscal year. Applications are accepted and subsidies allocated on a first come, first served basis. Productions based in the city are given first priority. Productions have saved more than $210,000 on services provided by Los Angeles County Sheriff Deputies for traffic control and safety during filming within city limits. In 2010, the City began offering its contract rate to productions, providing a savings of up to $22 per hour when compared to private entity rates. The process of ordering and paying for LA County Sheriff services was streamlined with
all aspects being handled by the Santa Clarita Film Office as part of the permitting process. For locally based recurring productions, the city will refund basic film permit fees to productions based at an approved location in the SCV for a minimum of four consecutive, or that pull at least four city permits for location shooting. Eligible productions include: feature length films, episodic television series, television pilots, television movies/ miniseries, commercials, and music videos. The city will also refund a portion of its hotel occupancy tax for productions that buy at least five room nights in a given month. ■
Six Flags Launches “Mixed Reality” VR Coaster By Patrick Mullen SCVBJ Editor
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musement parks have competed for decades to see who has the fastest, highest, scariest roller coasters. Now that arms race is increasingly moving from the physical to the virtual world. The latest twist for visitors to Six Flags Magic Mountain involves a new version of virtual reality headset that lets them enter a world of “mixed reality.” This will let them fly a jet, traverse a wormhole, fire weapons, and save the planet from an alien drone invasion. They’ll do all this while strapped into the New Revolution Galactic Attack roller coaster. Originally opened in 1976 as “The Great American Revolution,” to coincide with the American Bicentennial, it was the first coaster in the world with a vertical loop. Last year, the park overhauled the coaster with VR sensors along the track and new VR-enabled trains, making New Revolution North America’s first virtual reality roller coaster. As of late last month, Magic Mountain and Six Flags Discovery Kingdom near San Francisco are the first two Six Flags parks to add a gaming component to their VR coasters. “Our strategic partnership with Six Flags enables millions of consumers to experience virtual reality for the first time by bringing Gear VR to real roller coasters at theme parks across the country,” said Marc Mathieu, Samsung Electronics America’s chief marketing officer. The key to the new ride is the Samsung Gear VR headset. Its pass-through camera allows wearers to see their realworld surroundings along with virtual images. The ride gives riders wearing the headset the ability to fire virtual weapons during parts of the ride. Samsung developed Gear VR in 2015 with Oculus, a virtual reality vendor bought in 2014 by Facebook for $2.3 billion. “Six Flags is proud to be partnering with Samsung to
develop the newest, most innovative thrill ride experience in the theme park industry,” said Brett Petit, senior vice president of marketing and sales. “This mixed reality technology is truly groundbreaking and like nothing our guests have ever experienced. Six Flags and Samsung changed the game last year with VR on twelve roller coasters and now we are breaking new ground yet again.” During the coaster’s initial climb, typically the least engaging part of the ride, a heads up display overlay will show data like current status of weaponry, time codes, fuel ■ Six Flags Magic Mountain - The New Revolution. Photos by Greg Grudt/Mathew Imaging. cells, and a countdown clock. The ride’s mixed reality view changes to a completely ride. Several sets of headsets will be used in rotation. This immersive, virtual reality environment during the ride’s will give them time to be cleaned and recharged and to cool first high speed drop. The ride’s software allows for three down, as they tend to heat up in use. Samsung has set an age limit of 12 and up to use the VR different experiences. The virtual images are closely synchronized with the headsets, not out of concern with content but because the movement of the roller coast train. “If you’re in the sec- VR experience might be too much for younger children, ond row and I’m in the tenth row, you will see the virtual Carpenter said. VR is free with park admission, and riders images a fraction of a second before I do,” said Sue Car- can decline the headset and experience the ride in what penter, Six Flags spokeswoman. “The train’s movement is used to be the only kind of reality. perfectly synced with the headsets.” One advantage of VR technology is that it can be reproThe sensors and VR technology are made by VR Coastgrammed to give riders different experiences on the same er, based in Kaiserslautern, Germany. Six Flags Magic ride, thus providing a greater incentive for return visits. For Mountain is one of about two dozen amusement parks example, over the holiday season, New Revolution’s theme around the world that have installed the technology. The headsets use anti-microbial leather and have an ex- was changed to Santa’s Wild Sleigh Ride. ■ A version of this story was published in The Signal on Feb. 11. tra chinstrap to make sure they don’t fall off during the
MARCH 2017
SANTA CLARITA VALLEY BUSINESS JOURNAL
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Local Providers Invest in Technology By Patrick Mullen SCVBJ Editor
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ocal health care providers are making substantial investments in medical technology to provide better inpatient and outpatient care in the Santa Clarita Valley. Last month, neurosurgeons at Henry Mayo Newhall Hospital showcased the hospital’s newest technology: the Zeiss Pentero 900 microscope. “It’s very special technology that we’re really happy to provide to the community,” Neurosurgeon Dr. Mark Liker said. “We are able to provide top-level neurosurgery… and we provide it in our patients’ backyard.” The $500,000 Zeiss microscope and its add-ons allow surgeons to navigate the brain through a computer, differentiate between brain tissue and tumors, work alongside assistants and ultimately save patients’ lives. “We made a significant investment in this microscope,” said Patrick Moody, Henry Mayo Newhall Hospital’s director of marketing and public relations. “This will help our surgeons.” According to Liker, the hospital is one of three facilities in Los Angeles to own the technology. “That indicates both the level of commitment of the hospital to neurosurgery here, and that the hospital realizes the community is growing and needs this,” he said. The main benefit of the microscope is the ability for neurosurgeons to differentiate between healthy brain tissue and tumors, especially ones that form intrinsically within key areas of the brain. In the past, Liker said the neurosurgeons would be less aggressive removing tissue in order to protect areas of the brain that are important to daily function, like speech and movement. “The problem with many of these tumors… is that sometimes it’s very difficult to differentiate the bad tumor from the good brain,” Liker said. “In cases where the tumors are in these very eloquent areas, we tend to hold back and resect (cut out) where we can, where we know there are tumors, but we don’t go beyond that.”
Real time view With the Zeiss Pentero 900, Liker and his fellow neurosurgeons are able to see the differences in tissue in real time using a dye called Yellow 560 and fluorescent lighting. “We inject a dye into the vein and that dye travels to only brain tumor,” Liker said. “We use a filter in the microscope to be able to identify that the dye is present in the tissue that tells us that it’s brain tumor.” So, if the dye travels to an area, surgeons know it is a tumor, but if not, surgeons know it is healthy tissue. The colorization and identification through the microscope has already been used to remove brain tumors from individuals in the area, like renowned physicist Dan Gillespie who was the first individual operated on with the technology Nov. 4, 2016. “Everything fell into place. I feel honored,” said Gillespie, whose tumor was located in the left temporal region of his brain. “I am proud of myself and the doctor and the hospital for providing the equipment.” Two and a half months after the surgery, Gillespie was able to give an honorary speech at the Gordon Research Conference where he spoke for 35 minutes. Liker said Gillespie’s quick recovery after a surgery in a vital area of the brain was unusual. “This is a paradigm shift for us to resect brain tumors in eloquent areas, in areas that are critical for brain function,” Liker said. Liker and fellow neurosurgeon Dr. Parham Yashar said they look forward to being able to treat patients from the area and make procedures, like brain surgery, a little easier on patients and their families. “This is the best scope around, it really is top of the line,” Liker said. “People no longer have to go over the hill to be treated; we can treat them right here.” Henry Mayo has invested another half million dollars in a Stryker NAV3i surgical navigation system due to arrive in the next three months. The system provides high definition imaging during surgery. Hip replacement surgery is also being transformed
in part because of new technology. Both Henry Mayo and Providence Health and Services have purchased special surgical tables, known as Hana Tables, designed to facilitate a less invasive surgical approach that avoids cutting through thick muscles. Each table costs $70,000 to $120,000. Health care providers are seeking a competitive advantage by shortening or eliminating hospital stays, which reduces the risk of infection, reduces costs, and boost patient satisfaction. With hip replacement, or arthroplasty, a key difference that eliminates the ■ Neurosurgeon Dr. Mark Liker center, looks on as brain surgery patient Dan Gillespie, PhD, looks the optical head of Henry Mayo Newhall Hospital’s new Zeiss Pentero 900 microscope need for a hospital stay “is through which allows for advanced brain scans. Dan Watson/The Signal going in from the front,” said orthopedic surgeon provides more direct access to the patient and the ability Alon Antebi, D.O. to reposition the patient during surgery. Every facility he In December, Antebi performed the first same-day operates at has bought the table, which costs $70,000 to hip replacement ever done in the Santa Clarita Valley $120,000. The table is radiolucent, rendering it invisible at Providence Summit Surgical Center in Valencia. The to X-rays. recipient of the new hip was retired LA County deputy The first ambulatory surgical center opened in 1970. sheriff Michael Savoie. Today, there are more than 5,300 Medicare-certified cen“When I told friends about it, their reaction was, ‘Hey, ters in the United States, according to the Ambulatory Surwait a second, did you say same day?’” Savoie said. gery Center Association in Alexandria, Va. “The traditional method is to cut through the gluteus According to the Centers for Disease Control and Premaximus, the butt muscle, then through three or four tendons,” Antebi said. The front, or anterior, approach, vention, 332,000 Americans have total hip replacements in instead allows the surgeon to go in between muscles. “The the United States each year. ■ Christina Cox contributed reporting to this story. anterior approach is the shortest route, and cuts the least amount of tissue,” he said. In addition to working with Providence, Antebi, who has replaced several thousand hip joints, is on staff at Henry Mayo. He is chief of the orthopedic department at Antelope Valley Hospital in Lancaster and chief of the Joint Program at Ridgecrest Regional Hospital in Ridgecrest. Hip replacement surgery is intended to restore a patient’s range of motion and relieve pain, most often from arthritis. The surgeon removes the patient’s worn out ball and socket joint and replaces the joint with one made of an artificial socket. More than 300,000 Americans have hip replacement surgery each year. The first same-day outpatient hip replacement was performed at New York University in 2015. The procedure is growing Commercial Lines Insurance in popularity, though it’s not for everyone. “This Workers Compensation procedure is appropriate as long as you have a native Employee Benets or virgin hip,” Antebi said. Financial Services / 401(k)* “It’s not for those having an artificial hip replaced with a Life, Disability, LTC new one.” 28055 Smyth Drive | Valencia CA 91355 High Net Worth Personal Insurance Most commercial insurCA Insurance License#0785905 ers cover the same-day procedure, but so far, Medicare *Advisory services offered through Capital Analysts or Lincoln Investment, Registered Investment Advisors, Securities offered does not. through Lincoln Investment • Broker/Dealer • Member FINRA/SIPC www.lincolninvestment.com. L/B/W Insurance & Antebi uses a special Financial Services, Inc. and the above firms are independent and non-affiliated. 11/16 surgical “Hana table,” that
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
SoCalGas Aims to Install Fiber Optic Cable to Detect Leaks, Line Breaks
■ In some installations, the fiber optic cable is attached to the pipeline. SoCalGas is placing cable about one foot above pipes. Courtesy photo.
By Paul Parcellin SCVBJ Contributor
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ight-transmitting fiber optic cables, long the backbone of high-bandwidth internet networks, are finding another use in Los Angeles County: making natural gas lines smarter. Fiber optic cable laid in pipe trenches can detect breaks in pipelines, distinguish between leaks, ruptures to a pipe, or heavy trucks riding over a pipeline. It can even pinpoint the location of a trouble area. Those movements or leaks change the nature of the light passing through the cable, said Mike Bermel, director of major projects for SoCalGas. It changes in frequency and amplitude, and that signals the monitoring computer that there is a change in temperature or vibration of some sort. Southern California Gas Co. is among the first utilities in the country to adopt the technology, but at a cost of about $100,000 per mile of pipe, rollout of the new technology will be strategic. “We’re only going to put it in our larger pipes,” said Bermel. “We’ve got 100,000 miles of pipe, and we’re only
■ Fiber optic cables provide early warning of leaks or ruptures in natural gas pipes. Courtesy photo.
going to put it on the largest 1,000 to 2,000 miles. That’s and 12 inches above the pipelines. SoCalGas has done advance test work on the technolbecause the cost is prohibitive and you want to have it on the largest pipelines where it will do the most good, par- ogy at its facility in Pico Rivera. The company plans to spend $1.2 million installing cable in the San Joaquin Valticularly in a congested area.” A computer monitors signals running through the ca- ley later this year, with other installations planned in 2018 ble and alerts utility personnel if there’s a leak by reading and 2019. The utility also plans to install above-ground temperature changes or ground movement that causes the methane sensors as part of its pipeline safety program, and is testing them now. cable to vibrate, move or strain. Santa Clarita won’t have the fiber optic cable system in “If you read that and interpret it effectively you can tell the immediate future. SoCalGas has if somebody is digging or if a long-term plan to replace a major there’s a gas leak within 15 to line running through the area, but 20 feet,” said Bermel. “It can that won’t be for at least another distinguish between a car drivfive years, he said. ing by on the road and someFiber optic cable won’t be debody pounding and digging ployed in most residential neighover the pipeline.” borhoods, either. It will most likely The network can also transbe installed along rights of way, mit an acoustic signal, and leaks adjacent to power lines and induscan be detected through sound. trial areas, rather than in residential “If we wanted to put a camera – Mike Bermel, tracts. on (the cable) we could do that, director of major projects In addition to installing the cabut there’s no intent to do that for SoCalGas ble, monitoring stations will cost now,” said Bermel. about $500,000. Bermel said a The cable sensing equipment will be used to provide faster response to a recurring prob- monitoring station might cover five miles or it might cover lem. Every year, excavations by contractors damage gas 50 miles, depending on the nature of the pipe. The primary purpose of installing cable is to improve lines, but the problem can go undetected or unreported. “Sometimes people gouge a pipe while digging and they safety, and any savings that SoCalGas might realize from don’t report it – they cover it back up,” said Bermel. “We’ll its investment in fiber optic technology is difficult to have the forensics on all that and know where someone calculate. “The system is not intended to save our operational might have hit our pipe.” SoCalGas, which services 21.6 million customers in cost,” said Bermel. “It’s to prevent dig-ins and damage to more than 500 communities, is moving forward with a our pipelines. So it would be in the context of over the lifeplan to deploy fiber optic cable along new pipelines that time of our system how many times we prevent someone are 12 inches and greater in diameter and more than one from digging into the pipe, and the consequences associated with that.” mile long. So far, the system is being used in South America and In addition, the company will install fiber optic cable whenever work is performed on existing pipelines that Europe, but it’s not widely used in the United States. “I meet those minimum dimensions. The fiber optic cables don’t want to say we’re the first, but we’re one of the piowill be installed approximately 36 inches below ground neers with it,” said Bermel. ■
“
We’ve got 100,000 miles of pipe, and we’re only going to put it on the largest 1,000 to 2,000 miles.”
MARCH 2017
SANTA CLARITA VALLEY BUSINESS JOURNAL
City Council Supports Wilk’s AntiCemex Bill By Kevin Kenney
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anta Clarita City Council last month unanimously voted its support for a state bill at the heart of the battle to keep Cemex out of Soledad Canyon. To the surprise of no one, the Council voted 5-0 to support and sponsor state Sen. Scott Wilk’s SB 146 – designed to keep the giant Mexican mining company from opening operations in the Santa Clarita area. As Cemex’s long-pending bid to start sand and gravel mining in Soledad Canyon has been vigorously opposed by Santa Clarita-area officials at all levels, the Council’s action was expected to pass unanimously, and that’s exactly
■ Cemex site from Soledad Canyon Road. Photo by Katharine Lotze.
YOUR SUCCESS IS OUR MISSION
SB 146 would require that the Water Resources Control Board re-open any cases that have been pending for at least 25 years. what happened – without comment from any Council member or member of the public. The Council’s action directs city staff “to work with Senator Scott Wilk, other Members of the Legislature, appropriate legislative committee members and staff, State Water Resources Control Board members and staff, the Governor’s office, and other interested parties to secure enactment of Senate Bill 146.” Wilk’s bill has bipartisan support in the state Legislature. Wilk is a Republican representing parts of Santa Clarita, and Sen. Henry Stern, a Democrat who also represents the city, is a co-sponsor of the bill. SB 146 would require that the Water Resources Control Board re-open any cases that have been pending for at least 25 years – as has the Cemex matter – and reconsider water-rights issues. The future of Cemex in Soledad Canyon currently rests in the hands of a federal-court panel. But Wilk’s bill would offer a legal loophole that’s designed to bring at least the water aspect under some measure of local control, perhaps slamming the brakes on Cemex opening for business here if the federal panel ultimately gives its approval. It is estimated that Cemex would draw about 105 million gallons of water annually from the Santa Clara River. The federal Bureau of Land Management has terminated two contracts with Cemex, but that decision is under appeal. ■ This story was published in The Signal on Feb. 15.
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
Public and Private Investments Bear Fruit in Newhall By Patrick Mullen SCVBJ Editor
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he economic redevelopment of Newhall, Santa Clarita’s oldest community, is picking up pace with public and private investments in spaces that open this month. The city is spending $165,000 over three years to lease the former Repertory East Playhouse on Main Street. By renting the space for arts and entertainment events, the city hopes to recoup part of its $4,600 monthly rent. Private investment is also taking place. This month, a new True Value Hardware store and long-awaited branch of the U.S. Postal Service will open on Lyons Avenue. They will be joined later this year by Santa Clarita’s first Burgerim gourmet mini-burger outlet. The chain was founded in Israel (its name means “many burgers” in Hebrew) and came to Southern California last year. A groundbreaking ceremony this month marks the start of construction on a $15.6 million parking structure that will have 372 spaces at the corner of Ninth Street and Railroad Ave. It is part of a mixed use development that will include a Laemmle Theater, for which the city provided a $3.4 million subsidy. The project also features Newhall Crossing, with 47 residential units and 20,000 square feet of retail and restaurant space. The city’s decision to lease the 81-seat theater, which the city has renamed “The Main,” is the latest step in decades of efforts to bolster Newhall’s standing as the valley’s arts and entertainment district. The city provided grants in the late 1990s to help Santa Clarita Repertory Theater move into the building and Canyon Theatre Guild to set up shop, also on Main Street. Santa Clarita’s Arts Master Plan, adopted a year ago, included a call for a community arts center in Newhall. “There is consensus that Old Town Newhall is the cultural heart of the city but also a desire to have cultural activities available in other areas,” according to the master
■ Construction is underway on a 372-space parking structure in Old Town Newhall. Courtesy photo.
MANNKIND
Continued from page 1 with investors last month. The company scheduled a special shareholders’ meeting for late February to give the board permission to execute the reverse stock split. MannKind has had a rocky few years. Founder Alfred Mann handed over the reins as CEO to Hakan Edstrom in January 2015. Less than a year later, Edstrom, who had worked for Mann since 2001, suddenly resigned. Mann returned as interim CEO. In January 2016, the company withdrew an offer to Duane DeSisto to serve as CEO due to a non-compete clause he had with a previous employer. Pfeffer then took the helm. Mann died in February 2016 at age 90. MannKind and French drugmaker Sanofi launched a joint marketing agreement in August 2014 that held the prospect of Afrezza emerging as a blockbuster drug. Under terms of the agreement, MannKind received an upfront payment of $150 million and potential milestone payments of up to $775 million. But those milestone payments were triggered by specific
plan. “Planning participants consistently identified Old Town Newhall as the area of the city most associated with culture and the place that should be further developed into a vibrant cultural district.” “The space will be available for companies or nonprofits to rent out to use as a theater,” said Jason Crawford, the city’s economic development director. “The city is using it as an art gallery and art space. We’ve been renting places for the many events we do in Newhall, and now we’ll be able to do them all in ■ The former Repertory East Playhouse is now The Main, an arts center run by the City of Santa one spot.” A report to City Coun- Clarita. Courtesy photo. cil from Richard E. Gould, This month will also see the official opening of Newhall the city’s director of Recreation, Community Services, Arts True Value at 23736 Lyons Ave., next to the new postal and Open Space, says “Operating this venue as a multi-arts branch. center will enable the potential for incremental revenue The need to install storm water mitigation filters under with the goal of fully offsetting operating expenses by the the parking lot delayed the opening, said Paul Palmer, the third year of operation.’’ building’s owner. The hardware store will occupy nearly The city already uses the space, as a per diem renter, for 10,000 square feet. Except for one existing wall in back, the monthly “10 by 10” variety night events, and for the monthly “Note by Note” singer/songwriter nights, which the building is new. The site has a long retail history as the former location are part of the Thursdays@Newhall series. The space is also of Caston’s TV and Appliances, which closed in 2011. Beused during the city’s annual Cowboy Festival. fore that, it was home to a Country Cousin market, run by Former Councilman TimBen Boydston, executive diPalmer’s father. rector of the Canyon Theatre Guild, knows the demands “We’re shooting for a mid-March grand opening with of running a theater. Mayor Smyth cutting the ribbon,” said Chris Smalley, coI think it’s great the City of Santa Clarita understands owner of Newhall True Value. “We see this as a great addithe value of the arts,’’ Boydston told The Signal in January. “I’m not certain how many hours it will take to run that fa- tion to the neighborhood. We needed a hardware store on cility, but it will be a good number of hours. … I do know this side of town.” “We’re in a cooperative arrangement with True Value,” that running a facility like that is a time-consuming job.” Mayor Cameron Smyth said the three-year lease will he said. “We own stock in the company, and buy most provide a good test period, without tying the city down of our inventory through them. They’ve been fantastic to work with.” long term if the venture fizzles. That inventory will reflect the community, with an “It was important, as we continue to revitalize the downequestrian department and a range of farm and ranch suptown area, that that property remain, hopefully, an arts facility,’’ Smyth told The Signal. “But my greater concern plies. “We’ve got a fair number of ranches nearby, and we was that the property owner would lease it out to anoth- want to serve those customers,” Smalley said. The store will er client that would want to turn it into something that also have a large paint department, a wide tool selection, doesn’t fit into our idea of revitalizing the downtown. So, automotive parts, and a small lumber department. The store’s 30 employees include recent Hart High and I saw the merits of stepping in, at least in the short term.’’ The Main will host a community showcase at the end College of the Canyons graduates and senior citizens. To of this month to kick off its new chapter and show off help the owners of the many older homes in the neighborcosmetic upgrades. hood, the store will conduct home-repair classes. ■ regulatory and development targets, as well as sales thresholds. None of those targets were hit, and the two companies dissolved their partnership after only seventeen months. “The product never met even modest expectations, and we do not project Afrezza reaching even the lowest patient levels anticipated,” Sanofi said in a statement to Bloomberg News in January 2016. The end of the Sanofi agreement forced MannKind to scramble to relaunch Afrezza with a new sales team. “By July we had an admittedly modest contract sales force out in the field selling MannKind-branded Afrezza,” Pfeffer said. “It was necessarily modest to get it out there quickly,” he said, adding that during that stretch, “we were working somewhat on fumes financially.” “We were looking at many months of sales declines, and we were able to turn that around and get the sales curve pointed upward again.” Now the company has hired its own sales force. “We’ve hired well over 80 people over the last four weeks,” said Michael Castagna, MannKind’s chief commercial officer on the conference call. “Their diabetes knowledge is deep and our bench strength is strong,” he said. The company will add another ten to twelve positions. The company also points to improved contracts with
payers as a positive sign. Managed care contracts were “a major roadblock when the product was launched,” because of prior authorization restrictions that made the drug hard to get and expensive, Castagna said. He said that MannKind has new contracts with two major national payers that have removed prior authorization requirements. The company is talking to other insurers. MannKind has also changed how it packages Afrezza to make it easier for physicians to prescribe it and to offer patients greater dosing flexibility and lower copayments. It also added diabetes nurses who provide patient counseling to try to increase patient compliance, and is boosting the company’s social media outreach. The company received a cash infusion of $16.7 million last month by selling some of its former real estate holdings to a real estate investment trust. But all these changes won’t matter unless Afrezza sales pick up significantly. “The cash situation at MannKind remains troublesome,” said Spencer Osborne, who follows MannKind’s stock on the investment blogging site Seeking Alpha. He said his conservative estimate has the company spending $10 million a month on operations and that it could exhaust its available cash and lines of credit by the end of the year. ■
MARCH 2017
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LIMS Studio Offers Free Training to Veterans By SCVBJ Staff
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local trade school wants to put up to 200 military veterans through a different sort of boot camp, one aimed at landing them jobs in TV and film production. LIMS, the Lifton Institute of Media Arts & Sciences, is looking for post 9/11 vets for the free 10-week entertainment industry training program at its four-acre complex. The facility on Fantastic Lane in Castaic includes six sound stages, post-production facilities and screening rooms. LIMS is offering free job training to military veterans because they have proven to be especially suited for jobs in film and TV production due to their military training, said Jimmy Lifton, LIMS Studios founder and president, in a statement. “The men and women coming out of the military already have the mindset, work ethic, desire and ability to work as a team, which is also imperative in production. I just find that military veterans have so much of the built-in gumption that makes an excellent crew member.” “Certainly, if something breaks, they don’t sit there and worry about it,” he added. They fix it or work around it. And that’s a perfect movie crew member. That’s what they do.” Once accepted, VET 200 students pay nothing out of pocket for their free job training. Tuition is funded by the U.S. Department of Labor. It took 18 months for LIMS to secure all required approvals from local, state and federal job placement authorities. The school works with U.S. Vets, AMVETS, the Salvation Army, Volunteers of America, Goodwill Industries, and state and local WorkSource centers, Lifton said. Since starting the program for vets in 2015 with 50 students, LIMS says it has placed more than 80 percent of graduates in industry jobs in their chosen fields. Guided by instructors, students work on production of a real 90-minute feature film for 8-10 hours daily five days a week for two and a half months – a fairly typical production timeframe – gaining first-hand experience and developing immediately marketable skills. Students choose a department that suits their skills and passion, including camera/ lighting, stunts, art, visual effects, production management, picture editorial, audio editing, wardrobe, and makeup and hair. The program is designed to create stability for veterans, especially homeless veterans, by offering immersive hands-on training, job placement, and a path toward financial independence, while fulfilling the industry’s ongoing need for a dependable production workforce. “We put up the money for people to actually work on a real feature film and give them enough time on the film to mess things up and fix the mistakes,” Lifton said. “With that kind of completely hands-on training, they can walk into a paid job position.” Lifton’s goal is to increase enrollment
to 300 and build student housing on land next to the studio. Students can come from anywhere, have to live in the Los Angeles-Hollywood-Santa Clarita Valley area during the boot camp. The school helps with transportation and provides meals to students. Interested veterans can attend a free orientation at the studio weekdays at 10 a.m. before making a final decision. ■ This story was published in The Signal on Jan. 25.
■ The VET 200 boot camp at LIMS Studios for post-9/11 veterans provides free training for TV and film jobs, including stunts. Courtesy photo.
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
Valencia Acura the First Dealership in the Nation to Receive the Limited-Edition NSX Hybrid Electric Supercar
■ Test drives were available by reservation for the new 2017 Acura NSX , hybrid electric sports car with three electric motors, a 3.5-liter V-6 engine and a combined output of 573 horsepower at Valencia Acura in Valencia last month. Dan Watson/The Signal
By Patrick Mullen
“It’s the only every day supercar on the market,” said Russ Stevenson, Valencia Acura’s service manager and NSX specialist, noting that drivers won’t get beat up drivalencia Acura on Creekside Road was the first dealing it, as can be the case with some high-performance cars. ership in the nation to receive the limited-edition The new NSX revives a famous automotive nameplate. NSX hybrid electric supercar, of which only 700 Acura sold the original version, the first mass-produced will be built this model year. The dealer held a test-drive car with an all-aluminum body, from 1990 to 2005. It event last month. was based on the NS-X concept car, which stood for “New Sportscar eXperimental,” designed to compete with Ferrari. A local owner of a firstgeneration NSX had lent it to Valencia Acura, where it sits in the showroom next to the new model. Stevenson said the NSX was 10 years in the making. Acura’s parent, Honda Motor Co., announced plans for a second-generation as far back as 2007, but production was delayed. The company said the initials now stand for “New Sports eXperience.” Road and Track magazine named the NSX its 2017 Performance ■ Valencia Acura Service Manager Russ Stevenson, center, goes over the controls of the new Car of the Year. 2017 Acura NSX with Santa Clarita Valley Signal Executive Vice President Russ Briley, before Unlike the first-generation he takes a test drive in the hybrid electric sports car at Valencia Acura. Dan Watson/The Signal
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NSX, which was manufactured in Japan, the new NSX was designed and engineered in Marysville, Ohio at Honda’s plant, by designer Michelle Christensen and chief engineer Ted Klaus. The new NSX is a hybrid sports car powered by 3.5 liter twin-turbo V6 engine and three electric motors, with an all-wheel drivetrain capable of 573 horsepower. It employs a space frame design made from aluminum, ultra-high strength steel, and other rigid and lightweight materials. “Every single person who drove the car came back with a smile on their face,” said Valencia Acura co-owner Cheri Fleming. “And we had people driving the car from 9:30 in the morning to 9:30 at night.” Her husband and partner Don Fleming noted that the NSX is available in Valencia Red Pearl, though he admitted the name is a coincidence. Test drivers included Bryan Herda, Valencia resident and owner of Bryan Herda Autosport, which won the 2011 Indianapolis 500 with driver Dan Wheldon in its second Indycar Series start. Herda drove in the Indy 500 six times, finishing third in 2005. Russ Briley, The Signal’s executive vice president of community relations and audience development, also took the car for a spin “I have never driven a car that comes anywhere close to this car with regards to handling, speed and performance,” he said. “What a thrill!” Expect to see at least one NSX on local streets. A Santa Clarita resident pre-ordered the $200,000 car more than five years ago. He was one of 14 individuals who put their name on a waiting list for the new car. ■ Thios story was published in The Signal on Feb. 18.
MARCH 2017
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Local Firm to Manage Hart HS Expansion By Patrick Mullen SCVBJ Editor
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alencia-based Lundgren Management will serve as construction manager for a new classroom wing
at Hart High School and projects in two nearby cities, according to the firm. The Hart High project will add a two-story, 23,431-square-foot classroom building, two new tennis courts and campus-wide infrastructure improvements. “Since 2012, school construction has picked up, and we don’t foresee a dip for the next seven years,” said Shawn Fonder,
academic support services. “There’s something particularly rewarding about working on school projects such as these that help ensure students have the best possible facilities where they can prepare for the future,” Fonder said. Celebrating its 30th anniversary, Lundgren Management is a full-service construction management firm with 50 employees. It has offices in Valencia, Bakersfield, and in the Inland Empire. ■ This article was published in The Signal on Feb. 1.
■ Rendering of new classroom wing at Hart High School. Lundgren Management will be construction manager. Courtesy photo.
Lundgren’s vice president of program and client services. He said local school and community college districts have passed bond issues in recent years that have made up for reductions in state funding. Flewelling & Moody Architecture designed the Hart High addition, which is being funded by voter-approved Measure SA. The building will replace temporary
“
classroom space.
Since 2012, school construction has picked up, and we don’t foresee a dip for the next seven years” – Shawn Fonder, Lundgren’s vice president of program and client services.
In November 2008, 60.6 percent of voters in the Hart district approved a $300 million school facilities general obligation bond for the construction of new school facilities and the improvement of existing facilities. The largest project funded by the bond measure is buying and developing a high school site in Castaic and building that school. Other projects include improvements at Placerita and Sierra Vista, and new auditoriums at Canyon High and Saugus High Schools. Lundgren will also act as construction manager for the Santa Barbara Unified School District’s Peabody Stadium project at Santa Barbara High School, and for a new Academic Commons Building at Antelope Valley College in Lancaster. Last November, Santa Barbara voters approved bonds to replace the grandstand at 90-year-old Peabody Stadium and renovate the facility with new classroom, team room, weight room and press box. At Antelope Valley College, a new Academic Commons Building is due to open in 2020 next to the library and SOAR High School. It will centralize and expand Skip - Business Journal.indd 1
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MARCH 2017
End of an Era: SCV’s “Appliance Doctor” Retires By Patrick Mullen
“Many times, customers would tell me how much they liked the girl I had working in the office,” Don said with a chuckle. anta Clarita is new enough as a city to have businesses Meanwhile, Don established a reputation for reliabilstill run by their founders that predate its founding ity and results. “I love what I do and I’m good at it.” He in 1987. But now it’s been around long enough that prided himself on stocking his truck with enough parts to some of those businesses are passing into history. handle most repairs in a single service stop. While Moody’s Appliance Repair may People know they can trust him, Chris technically have been a sole proprietorship, said. “That’s why he knows so many home it was a classic American mom-and-pop opsecurity codes and the locations of every eration, with Don Moody crisscrossing the hidden house key in the valley.” He revalley keeping our labor-saving devices in mains grateful to his customers, many of good repair, while wife and partner Chris whom are now friends. Moody ran the back office. Don’s career spans vast changes in apAfter 37 years, the Moodys decided that pliance product quality and technology. it’s time to retire. The man known as DocManufacturers admitted to him that prodtor Don, the appliance doctor, is hanging ucts once made to last 15 years or more are up his tool belt. now designed to last a decade. “The mind is still there but the body is The advent of electronic controls is now starting to go,” Moody said, noting that giving way to smart web-connected applihe’s had both knees and a hip replaced. His ances. “They’ve got fridges now that will wife and business partner Chris Moody was tell an app on your phone when you need quick to point out “they left in the stubto buy milk,” he said. But while the techborn part.” nology is promising, he said he wouldn’t When the Moodys went into business in buy one just yet. 1980, Don told The Newhall Signal and Another thing that’s changed, Chris Saugus Enterprise that he would limit his said, is the Valley itself. “It can take as long business to the Santa Clarita Valley and had to drive across the valley on some days now no intention of moving. After all, he’d just as it used to take to drive to Northridge expanded his Canyon County home. and back to do some shopping.” He’s been a man of his word on both Two married sons, seven grandchildren counts. The couple moved up the hill 10 and two great-grandchildren all live in the years ago, but still live in Canyon Counarea, and will keep the Moodys in Canyon try, where they can see their old street and ■ Don Moody will keep the truck but remove the magnets promoting his appliance repair Country. Otherwise they’d be tempted to business, as he is retiring after 37 years in business. Photo by Patrick Mullen. “watch Cowboys football for free,” though move back to Arkansas. Why? “High propbinoculars might be helpful. erty taxes here and low land prices there,” Tom grew up in Arkadelphia, Arkansas, and served in could make money for myself.” Don said. “When we moved here, it was a nice quiet town,” Chris the Marine Corps from 1958 to 1962. His career path has So this fall, readers of The Signal will have to find a new its roots during his service in the Corps repairing radar- recalled. “The biggest store was a Woolworth’s and it was a winner for 2017’s Best of the Santa Clarita Valley’s appliguided Hawk surface-to-air missiles while serving in Twen- boon when a K-Mart opened.” ance repair category. Three-time winner and 2016 awardee Over the years, Chris ran the back office, mapped out Don Moody will not be defending his title. “We want to tynine Palms. “That was a pretty good base assignment for Tom’s daily series of service stops, handled the books and thank everyone in the valley for all their loyalty and wish a young single guy.” Sears, Roebuck & Co. hired Tom in 1963, and he met set up reservations. Only twice in 37 years did customers them well,” Chris said. Don nodded in agreement. “I miss it already.” ■ Chris, who grew up in Southern California, in 1967. She not pay their bill, she said.
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worked in the Sears human resources department and interviewed him for a job promotion. “That’s where I got him, out of the Sears catalogue,” she said. “I thought he was pretty cute.” The couple moved to Canyon Country in 1978 and soon decided to start their own appliance repair business. “I figured that if I could make money for Sears,” he said, “I
Bank of Santa Clarita Closes Branch By Jana Adkins SCVBJ Managing Editor
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ollowing trends by many in the banking industry, the Bank of Santa Clarita officially closed its branch office on Golden Valley Road. The outlet, located at The Plaza at Golden Valley, had not been open to the public save to occasionally meet customers to sign documents on transactions. The bank had been using the branch for administrative reasons, according the bank’s chief officer. “Previously it had been a branch, a limited branch, three years ago,” said Frank D. Di Tomaso, executive chairman and CEO for the Bank of Santa Clarita. “For the last two years we just used it for administrative purposes.” Use of the branch has gradually dropped over the years until the bank decided that in light of its growing mobile banking services, it should just close the branch altogether, he said. The bank took a charge of $379,000 in early termination costs for the remaining lease, according to its annual earnings report. The lease is good for two more years, according to Di Tomaso. Closure of the branch comes on the heels of the bank’s launch of a mobile banking app for customers last fall. “Now people can transfer money online via their cell phone,” he said. “The mobile app gives customers the ability to transact business on internet and cell phones.”
Di Tomaso also points to studies showing advances in conducted at ATMs. Today those numbers have nearly technology leading to the downsizing in the number of flipped, he said. Ironically, as mobile banking has become more widely branches in the industry. In one banking news report, it was announced that accepted, some studies show ATM usage has peaked as Wells Fargo expects to close 400 branches – or five per- well, with customer traffic numbers going down, he said. Founded in October 2004, Bank of Santa Clarita is the cent of its locations – through 2018 to address “changes to customer behavior” as customers increasingly shift to only full service commercial bank headquartered in the Santa Clarita Valley. ■ automated systems and online banking. This story was published in The Signal on Feb. 4. Locally, in 2008 18 banks operated 54 branches in the Santa Clarita Valley, Di Tomaso said. Today, 14 banks have 45 branches in the region. In 2015, Mission Valley Bank closed its Valencia branch on W. Avenue Stanford for the same reasons, citing customers migrating away from brick and mortar locations to transact business. Customer traffic patterns are morphing as a result. At one time some 80 percent of a bank’s business was in-store, Di Tomaso said, and some 20 percent was ■ Bank of Santa Clarita’s former branch on Golden Valley Road. Courtesy photo.
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Retail Outlets Adjust as Consumer Demand Evolves By Paul Parcellin SCVBJ Contributor
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anta Clarita’s retail market remains strong, and so far hasn’t been hit as hard as other parts of the country by forces that are leading traditional retailers like Macy’s and Sears to close stores and lay off workers. Still, in an era when commercial landlords demand to see a retail outlet’s business plan before agreeing to lease a property, businesses must stay sharp to interpret, and be able to respond to signs of consumer interest or boredom. Competition is making retailers think about paring down their square footage, said Travis Dunn, managing director of Newmark Grubb Knight Frank, a commercial real estate advisory firm. Big box stores are shifting resources to their virtual storefronts, their websites. “The big box retailers are changing,” Dunn said. “The discount guys seem to be doing OK, and the others are struggling. Macy’s and Sears are an example.” “Having a bigger online presence is extremely important.” Retailers like Macy’s and Sears have been shuttering locations, often in malls built in the 1960’s or center city locations. Competition from discount chains like TJ Maxx and online retailers like Amazon have cut into their sales. Are merchants in Santa Clarita turning away from large stores in favor of smaller retail and dining establishments? Not yet, said Patti Kutschko, vice president of Daum Commercial Real Estate Services in Valencia. Overall, she maintains that local commercial real estate is in good shape. “The Santa Clarita Valley is a very strong retail market,” she said. “Our problem is we don’t have enough inventory to cover the demand.” Kutschko said that she’s seeing a lot of interest from grocery stores, restaurants and fitness tenants. “One of the highest demands we have is for second-generation restaurant spaces. Restaurant spaces are expensive to build out and need more parking than standard retail users, so this particular use is always in demand but difficult to find.” She said that opening a restaurant in a space that’s already had one makes startup easier. It’s the sewer fee, the hood and ventilation, the grease trap, the city approval, and the headache of not having to re-invent the wheel to meet health code approval.
Beyond restaurants, traditional retail storefronts won’t be going away anytime soon. “Good real estate is always in demand,” Dunn said. “That includes strong power centers and good co-tenancy. Also always in demand are large, national brand tenants.” His firm is currently working in Stevenson Ranch with InvenTrust Properties, a national landlord with 250 properties. “In neighborhoods, and Stevenson Ranch is an example of it, we like to see a good strong grocer, fitness, and discounttype retailers,” he said. Some of the changes Dunn is currently seeing in retail are: • More entertainment is being incorporated in retail, and not just in the big box stores. ■ Shoppers at Valencia Town Center. Photo by Dan Watson/The Signal. • Interactive events and store demonstrations are becoming more popular. A occupy some of the less desirable spaces. party store Dunn has worked with has a playground for kids. It • In recent years, nail salons, day spas and massage therapy fits into a neighborhood setting, he said. spots have done very well. “Some you want in your shopping • Participatory eateries are back in style. Consumers wants center and some you don’t,” said Dunn. to be involved in their food. Chains like Benihana have long • Medical centers seem to pop up regularly among retail put on tableside shows cooking your food, and at Shabu Shabu outlets. Urgent care facilities are typically very good, stable you do your own cooking. This trend can also be seen in the tenants that occupy anywhere from 3,000 to 5,000 square open kitchen design employed by chaines such as Chipotle and feet. “A lot of landlords really like them. They come with good Blaze Pizza. financials, as well.” The move toward live entertainment is happening here. • Dental offices continue to be a regular presence in retail Canyon Club will open its fifth live music and dining venue at settings. Optometry and other medical-type uses do well in Valencia Town Center mall this fall. The 1,100-seat space will that environment. occupy space that includes the former site of Red Robin, which Dunn maintains that dental offices are successful in more opened a standalone location nearby. than 90 percent of the cases when you look at an initial base Also, the kinds of businesses that are coming into retail set- term of 10 years. Restaurants, on the other hand, fall into the tings are evolving, too: 30-40 percent success range. • More frequently, quick-serve, healthy cuisine is being ofAs for the overall health of retail, Dunn says that activity fered as an alternative to traditional fast food burgers and fries. has been very good. “As good as it was during peak times • Fitness centers, which landlords used to consider less than in 2006-2007,” he said. “The difference is we’ve seen tendesirable tenants, are now in greater demand. Different kinds ants be very prudent in negotiating and finalizing their deals. of fitness offering, including yoga, Pilates, and spinning classes Tenants are taking their time and being cautious. That’s can be good tenants. And they’re often able to successfully probably a healthy thing.” ■
4 Ways to be the Brady and Belichick of Business By Eliot Burdett
T
he New England Patriots, Tom Brady and Bill Belichick just won a record-breaking fifth Super Bowl together. In doing so, they cemented their legacy as the greatest player and coach tandem in NFL history and arguably in all of sports. In an NFL era defined by parity, their success over 17 years is worth examining for business leaders. After all, Brady is not the most physically gifted quarterback and the Patriots have turned over more than 57 percent of their roster in the last two seasons alone. Fact is, being successful in sports, in business and in life, requires many of the same traits. In my work, I help world-class companies build their teams, and there are many correlations between how great business leaders run their company, how great coaches run their sports team, and how a great quarterback like Brady leads his players. Here are four tips to become the Brady and Belichick of business: 1. Culture trumps raw talent. Belichick knows that maintaining the culture within the Patriots’ locker room is critical to winning championships. He is famous for prioritizing a player’s fit within the team and alignment with core values possessed by the organization, over raw skill and talent. This is a critical lesson that business leaders can apply to their hiring practice – hiring the best person on paper will not necessarily produce “wins” if their culture fit hasn’t been measured. In fact, the result of poor culture fit due to turnover can cost an organization between 50-60 percent of the person’s annual salary, according to the Society for Human Resource Management. 2. Never give up on yourself. The Patriots held the lead for
exactly zero minutes and zero seconds during the Super Bowl. With eight minutes and thirty seconds left in the third quarter, they were down 28-3 against the most potent offense in the NFL. Yet, they found a way to win. Most business leaders have experienced similar hardships – take Thomas Edison as an example. He failed more than 1,000 times before inventing a viable electric light bulb. But when asked about it, Edison famously replied, “I didn’t fail 1,000 times. The light bulb was an invention with 1,000 steps.” Anybody can lead during prosperous times; it’s when tough times hit that an executive’s true colors and leadership abilities are put on display. The ability to persevere during these times is what makes good leaders great, and mediocre companies highly profitable. 3. Be financially sound. This season Brady was the fifthhighest paid player in the NFL and Belichick was the thirdhighest paid coach. When you consider their winning pedigree, they could have each demanded to be the highest paid in the league for their respective roles. But because the Patriots organization engaged in sound financial planning and organizational design, they not only had the funds necessary to retain both stars, but were able to recruit and build the best possible team around them. Business leaders can apply this discipline and restraint when building their teams by not overspending on a candidate who simply meets the mandatory minimum and fills a vacant seat. Save the Porsches for the A-players, because they will earn you a Lear jet. 4. Reward team play. Following the game and MVP trophy, Brady said that teammate James White deserved to be the Most Valuable Player. Though an overused cliché, I would be remiss not to point out that the Patriots have a culture of “we” not a culture of “me.” While most companies boast of a corporate culture that rewards teamwork, many only reward
individual performers when the time comes for promotions and bonuses. While recognizing individual contributions is critical to keeping employee morale high, rewarding your best teams, not just your star players is the best way to foster teamwork. Michael Schrage, a research fellow at MIT Sloan School’s Center for Digital Business, recommends leaders embrace the 5 A’s if they really want to facilitate a transformation in teamwork incentives: Acknowledge, Attribute, Assign, Award, Assess/Analyze. ■ Eliot Burdett is an author, sales recruiting expert and cofounder and CEO of Peak Sales Recruiting, a leading B2B sales recruiting company launched in 2006. Eliot co-wrote “Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast.”
■ Tom Brady and Bill Belichick. Photo by Winslow TownsonUSA TODAY Sports.
20
SANTA CLARITA VALLEY BUSINESS JOURNAL
THE LIST
MARCH 2017
Aerospace and Defense (Ranked by Total Employees)
Company Name
Top Executive
Title
Address
Employees
Woodward Inc
Carl Moffitt
Vice President & General Manager
25200 Rye Canyon Rd Santa Clarita
725
Aerospace Dynamics International
John Wall
VP and General Manager
25540 Rye Canyon Road Santa Clarita
705
PPG Aero
Barry Gillespie
CEO
24811 Ave Rockefeller Valencia
530
Wesco Aircraft
Dave Castagnola
President & CEO
27727 Avenue Scott Valencia
487
ITT Aerospace Corporation
Melissa Metz
HR Director
28150 Industry Drive Unit S Valencia
420
Regent Aerospace Corporation
Reza Soltanian
President
28110 W Harrison Pkwy Valencia
316
Bayless Engineering & Manufacturing
Earl Bayless
President
26100 Avenue Hall Santa Clarita
256
Esterline TA Aerospace
Jason Childs
President
28065 Franklin Pkwy Valencia
250
Stratasys Direct Inc
Joe Allison
President
28309 Avenue Crocker Valencia
240
Crissair, Inc.
Mike Alfred
President
28909 Avenue Williams Valencia
223
Forrest Machining, Inc.
Joanne Butler
President
27756 Avenue Mentry Valencia
220
B & B Manufacturing
Fred Duncan
President
27940 Beale Court Santa Clarita
220
ASC Process Systems
Dave Mason
President
28402 Livingston Ave Valencia
200
RAH Industries Inc
Ronald Hansen
CEO
24800 Avenue Rockefeller Valencia
200
Triumph Actuation Systems
Randy Lebetsamer
President
28150 Harrison Pkwy Valencia
194
Novacap
Mark Skoog
25111 Anza Drive Valencia
181
Fralock Corp
Scott Tucker
CEO
28525 W. Industry Dr Valencia
170
Del West Engineering Inc.
Al Sommer
President
28128 Livingston Ave Valenci
151
Lamsco West, Inc.
Steve Griffith
President
29101 The Old Road Santa Clarita
150
SGL Technic Inc
Brian Green
28176 N. Avenue Stanford Valencia
145
Classic Wre Cut Company Inc.
Brett Bannerman
President
28210 Constellation Rd Valencia
142
Donaldson Company Inc.
John Fuger
Plant Manager
26235 Technology Dr Valencia
139
Adept Fasteners
Gary Young
Owner
28709 Industry Dr Valencia
135
Stoll Metalcraft Inc
Gunter Stoll
President
24808 Anza Dr Valencia
100
Curtiss-Wright Controls
Tom Cuda
Branch Manager
28965 Avenue Penn Santa Clarita
100
True Position Technologies Inc
Allen Sumian
President
24900 Avenue Stanford Valencia
96
HarcoSemco
Keith Caruso
Director of Operations
25700 Rye Canyon Road Valencia
80
Sunvair, Inc.
Kerry Jarandson
President
29145 The Old Road Valencia
80
Flight Line Products Inc
Elle Manoukian
HR Manager
28732 Witherspoon Pkwy Valencia
75
Cicoil LLC
Howard Lind
President and CEO
24960 Avenue Tibbitts Valencia
75
National Technical Systems Inc.
Eric Hofmann
General Manager
20970 Centre Pointe Pkwy Santa Clarita
65
HRD Aero Systems, Inc.
Tom Salamone
President
25555 Avenue Stanford Valencia
65
Quantech Machining
Riad Hussein
Owner
25647 Rye Canyon Rd Valencia
55
Applied Companies, Inc.
Betsy Klinger
President & Owner
28020 Avenue Stanford Valencia
51
Whitmor Wirenetics
Michael Weiss
President
27737 Avenue Hopkins Santa Clarita
50
Cosmic Plastics Inc
Lillian Luh
President
28410 Industry Dr Valencia
50
Troll Systems Corporation
Michele Scott
President
24950 Anza Dr Valencia
40
Tri-Tek Electronics USA
Jim Gillson
President
25358 Avenue Stanford Valencia
40
Galaxy Die and Engineering Inc
Hamid Baig
CEO
24910 Avenue Tibbitts Valencia
40
Aero Engineering & Mfg Co
Dennis Junker
President
28217 Avenue Crocker Valencia
38
Performance Machine Technologies, Inc
Dennis Moran
President
25141 Avenue Stanford Valencia
38
Paragon Precision, Inc.
Allan Smith
President
25620 Rye Canyon Rd Ste A Valencia
35
Schrey & Sons Mold Co Inc
Tom Schrey
Partner
24735 Avenue Rockefeller Valencia
35
Certified Thermoplastics
Robert Duncan
President
26381 Ferry Ct. Santa Clarita
30
MARCH 2017
SANTA CLARITA VALLEY BUSINESS JOURNAL
THE LIST
21
Aerospace and Defense (Ranked by Total Employees) cont.
Company Name
Name
Title
Address
Employees
A and M Electronics Inc
Ron Simpspn
President
25018 Avenue Kearney, Valecia
30
Advanced Technology Machining
Joe Howton
Vice President
28210 Avenue Crocker, Ste 301, Valencia
30
Aircraft Component Repair Co
Dennis Mack
25058 Anza Drive, Santa Clarita
29
Air Frame Mfg & Supply Co Inc
Yoshi Kawamura
CEO & Founder
26135 Technology Dr., Valencia
28
Next Point Bearing
John Burroughs
President
28364 Avenue Crocker, Santa Clarita
28
Meschkat Precision Machining
Bodo Meschkat
Owner
27555 Avenue Scott, Valencia
26
Pacific Metal Stampings
Donald Schlotfelt
President
28415 Witherspoon Pkwy., Val;encia
26
Hamby Corporation
Nanette Hamby
President
27704 Avenue Scott, Valencia
25
SOURCE: Santa Clarita Valley Econommic Development Corp.
Appointments
Bruce Fortine
John Musella
Lynne Steinman, Ph.D.
Appointed: Board of Directors, Paladin Multi-Media; Director of Civic Engagement, The Signal Formerly: Member, College of the Canyons Board
Appointed: 2017 Board President, Santa Clarita Valley Chamber of Commerce Remains President, The Musella Group
Appointed: President-Elect, Los Angeles County Psychological Association Remains in practice in Santa Clarita
Submit Hirings, Appointments and Promotions to pmullen@signalscv.com with “SCVBJ Appointments” in the Subject line.
Looking to Data
By Holly Schroeder
I
n a world where we must verify whether we are reading real or “fake” news and
where opinion is shared as fact, I find it reassuring to look at actual data to draw my own conclusions about what is really happening in the world around us. Fortunately, the Santa Clarita Valley Economic Development Corporation hosts an annual
Economic Outlook Conference that gives us real data about the Santa Clarita Valley. This year’s conference is on March 30, and will present a forecast for the Santa Clarita Valley in terms of future population, demographics, and growth. As I have written before, the Santa Clarita Valley is growing and changing. We are now the third largest city in Los Angeles County, and our business community has grown stronger and more varied in recent years. So, in anticipation of the conference next month, I looked at the data to see what it might tell us about the Santa Clarita Valley and our future. 1) Job growth in the Santa Clarita Valley outpaces that of the rest of LA County and that of the nation. Like much of Southern California, a high percentage of this job growth is in hospitality and leisure sectors, but the SCV is also strong in professional and business services and healthcare. The SCV
has remained a bright spot in the manufacturing sector, where we have been adding jobs over the past several years, contrary to statewide trends. 2) Contrary to popular belief, we aren’t building enough housing. That’s true across California and it’s true in SCV. California has added only one new housing unit for every 2.64 persons added in population. In the past five years, SCV has fared worse than that, adding a new unit for every 6.5 persons added to our population. 3) Over 26 percent of SCV’s population falls into the millennial generation, now between the ages of 18-34. This large population generation will drive consumer and economic trends, just as the baby boomers did before them. SCV needs housing, jobs, and activities that appeal to this generation if we are to continue to thrive economically. 4) At the same time, SCV is seeing the senior population reach new heights, as the
boomers age. In fact, this age group will see the highest rate of growth – nearly double the pace of the broader population. The stereotype that people reaching this age automatically leave California does not appear to be the only story. Again, SCV needs to think of housing and service needs of this group, which increasingly wants to age-in-place. This is an exciting time in the development and maturation of the Santa Clarita Valley. The growth ahead, facilitated by exciting new advances in technology, transportation, and automation, will be an economic engine for decades to come. No other community in Southern California has the opportunities we have. We can manage and prepare for the future growth effectively by looking to the data and planning accordingly. ■ Holly Schroeder is President and CEO of the Santa Clarita Valley Economic Development Corporation.
22
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
SCV BUSINESS VOICES
Think Strategically When Upgrading Your Workstations By James Deck CEO, JD Systems
With technology growing at a pace faster than most businesses can keep up with, organizations have to continuously upgrade to maintain any semblance of modernity. Without a team dedicated to this important task, it’s hard to prioritize necessary technology upgrades. Viruses and malware attempt to take advantage of weaknesses in your software and operating systems’ source code and infiltrate it. To ensure optimal security for your organization, you need to implement periodic updates. Without updates, a weak infrastructure will ultimately allow these threats to force their way into your network, putting your data at risk. Software patches and system updates issued by the software developer often address system flaws, but tackling the updates in a timely fashion can be a real challenge. Managing all software updates is easier said than done – especially without a dedicated IT department watching over your technology. Regular maintenance often gets pushed to the back burner, and dangerously close to being forgotten by all. The best way to ensure that your systems are prepared to handle the threats found in today’s computing environment is to make
upgrading your technology a priority for your organization.
the server to ensure that all users are protected and up-to-date.
Software Updates
Hardware Updates
Software updates aren’t limited to your workstations’ operating systems. The fewer unnecessary security flaws that can be found in your IT infrastructure, the safer your information will be. Furthermore, users who are working with top-notch, optimized technology will be far more productive than they would be if they were using sluggish, bogged down computers. It makes little sense to let your employees use machines that prevent them from achieving their maximum productivity. However, before making drastic changes to your business’s software infrastructure, we always recommend that you consult with a professional technician.
Older hardware that’s been around the block eventually starts to show signs of age. Hardware failure grows more likely with age and you run the risk of losing information due to the degradation of your technology. This is why monitoring your systems for faulty tech (and periodically upgrading to more recent models) is preferable, if not necessary. Considering all of the software and hardware upgrades that your business might need can certainly seem overwhelming. However, solutions like remote monitoring and maintenance, designed to administer patches to your mission-critical systems remotely, can help ensure that your organization’s systems are always up-to-date. James Deck is the Chief Executive Officer of JD Systems and an innovator in the information technology field for nearly two decades specializing in Managed Services, Cloud Solutions, and mobile and web application development. The content for this article is produced by Directive. James can be reached at jdeck@jdsystemsinc. com or (626) 486-9330.
Antivirus Updates Your antivirus solution is often also a software solution. However, it’s worth mentioning antivirus protection for its own merits. Without proper maintenance of your antivirus and other security software, it’s like “leaving your keys in the front door!” Be sure to manage your antivirus solution on all workstations. Better yet, manage antivirus solutions centrally from
SCV BUSINESS VOICES
Acura Earns 5-Year Cost to Own Luxury Brand Award By Cheri Fleming Valencia Acura
Twenty years ago, husband Don and I embarked on an entrepreneurial journey with the purchase of Valencia Acura at a time when the dealership ranked dead last nationally in sales and customer satisfaction. Add to that, the Acura brand was still in its infancy having only been around 10 years. Since that time, not only has Valencia Acura strived to infuse a friendship culture over the past two decades of treating customers the way we ourselves want to be treated, but we are so fortunate and privileged to have such amazing vehicles to sell and service each and every day. History shows that Acura not only redefined the luxury car, it permanently changed the luxury marketplace from a slow evolution among a handful of brands to fierce competition between many. When purchasing or leasing a vehicle, there are factors beyond style, price and performance to consider. There’s the cost of vehicle ownership – cost of fuel, financing, insurance, depreciation, and scheduled maintenance and repairs – that should
factor into a purchase decision. With that in mind, we are thrilled to report that for the second year in a row, Acura earned the prestigious 5-Year Cost to Own Luxury Brand award presented by Kelley Blue Book. The honor highlights vehicles with the lowest projected ownership costs, based on Kelley Blue Book’s 5-Year Cost to Own data for new cars in the initial five-year ownership period. In addition to winning the overall luxury brand award, the Acura lineup placed first or second in more than half of the seven total 5-Year Cost to Own factors, which include the upfront cost of the vehicle, depreciation, finance and insurance fees, expected fuel costs, maintenance and repair costs, and state fees. According to Kelley Blue Book, while value and luxury are often seen as mutually exclusive concepts, much of Acura’s appeal can be attributed to the fact that it delivers both. Further, Acura models are priced lower than segment alternatives from competitive brands. They also hold their value incredibly well. “If you’re looking for the prestige and tradition that distinguish European luxury brands, you’re going to have to pony up. But if you’re instead more interested in the practical advantages of a premium-priced vehicle — a quieter cabin, more comfortable seats, higher-quality interior appointments and
such — Acura delivers for less,” Kelley Blue Book states. “A reputation for trouble-free, low-cost ownership is another key draw. Combined with the typically superior dealership experience, warranty and fringe benefits that further differentiate the luxury segment nowadays, it’s clear that Acura delivers serious bang for the buck.” Now in its 30th year, it is clear that the exceptional quality and reliability of Acura products leads the luxury segment. Today, most of Acura’s lineup is engineered and manufactured in North America. Celebrating 20 years of friendship, Valencia Acura is now one of Acura’s highest ranking dealerships in customer satisfaction, and one of the highest in the nation for customer loyalty. Stop by and see for yourself what all the excitement is about. Celebrating 20 years serving the community, Valencia Acura is a local, family-owned car dealership located at 23955 Creekside Road in Valencia. Valencia Acura has been recognized as a prestigious Acura Precision Team Dealer of Distinction for 11 years, awarded Acura’s Council of Excellence for 13 years, and voted Santa Clarita’s Best New Car Dealership for 13 years by The Signal newspaper. Owners Don and Cheri Fleming can be reached at (661) 255-3000. Visit www.ValenciaAcura.com.
SCV BUSINESS VOICES
Looking to Purchase, Refinance or Renovate Commercial Real Estate? By Robert Scott Mission Valley Bank In today’s competitive financing market there are a number of options available to business owners seeking funding. When it comes to the purchase, refinance or renovation of commercial real estate, borrowers owe it to themselves to look at all of the possibilities, including the Small Business Administration’s 7(a) Loan Program. While not widely known or understood outside the lending industry, the SBA 7(a) Loan Program offers borrowers up to 90% financing for the purchase of owner/user commercial real estate that is fully amortized with no balloon payments. For the purpose of the loan program, owner/user is defined as occupying a minimum of 51% of total occupancy. With a maximum loan amount of $5,000,000 and terms as long as 25 years for commercial real estate acquisition, construction or refinance, the 7(a) Program could serve as a real solution to many borrowers.
Due to the inherent nature of SBA financing, in some instances qualifying for an SBA loan may actually be easier than qualifying for other, more traditional forms of financing. SBA programs generally allow for a higher loan to value ratio, longer amortization periods and may even consider the projected income of the business and not just historical cash flows when making a credit decision. These factors can be extremely helpful, particularly to a rapidly growing company. SBA 7(a) loans can be used by qualifying borrowers to purchase, renovate or refinance real estate, additionally these loans can also be used for acquiring fixed assets, such as heavy machinery or other equipment, restructuring current debt, working capital and in some cases can even be used to fund the acquisition of a new business. It is important to understand that the SBA does not make loans directly to small businesses. Rather, the SBA sets the guidelines for these loans, which are then made by the SBA’s lending partners. Because the SBA guarantees the lender that a portion of the loan will be repaid, it significantly lessens the risk to the lending partners. So when a business applies for an SBA
loan, it is actually applying for a commercial loan that is structured according to SBA requirements with an SBA guaranty. SBA loan guaranty requirements and practices can change as the Government alters its fiscal policy and priorities to meet current economic conditions. Therefore, you can’t rely on past policy when seeking assistance in today’s market, which makes it all the more important that you work with a lender that will help guide you through the process and identify what type of program may best fit the needs of your company. SBA 7(a) loans and other types of specialized lending make it possible for qualified businesses to get the financing they need, often times with much more flexible terms than more conventional loan options. Two resources to help you learn about SBA and other forms of specialized lending are available at www.sba.gov or www.MissionValleyBank.com. Robert Scott is executive vice president and chief credit officer of Mission Valley Bank, a full-service, independent, commercial bank with Preferred SBA Lender status serving the San Fernando and Santa Clarita Valleys. Bob can be reached at (818) 394-2300.
MARCH 2017
SANTA CLARITA VALLEY BUSINESS JOURNAL
Economic Development Corporation Santa Clarita Valley
Content provided by
26455 Rockwell Canyon Road | UCEN 263 | Santa Clarita, CA 91355 | (661) 288-4400 | www.scvedc.org
SCVEDC Voices
Henry Rodriguez Owner & CEO SCV State Farm Insurance
The SCV is a community that is truly business friendly, family orientated and dedicated to quality of life. My Agency thrives because of all the resources available to businesses of all sizes and most importantly, my two little boys have a bright future with the outstanding school systems our community offers. Santa Clarita certainly lives up to its nickname of Awesometown!
Nancy Lulejian Starczyk
Philip M. Hart
Lance Williams
SRAR/Realty Executives Santa Clarita
Owner Williams Homes
COO Logix Federal Credit Union
Being a part of the great City of Santa Clarita is like being part of a family. I’ve heard it repeatedly: “It feels like a small town.” There’s something for everybody! It’s a great place for business, great for families, has outstanding schools, sage leadership, and strong community. This City has a sense of pride felt by everyone. It fulfils the promise of the great American Dream! Can you tell I love this City?
I have been to cities all over the United States and none compare to Santa Clarita. Our beautiful scenery, thriving business environment, community spirit and high quality of life make it a great place to live and work.
Santa Clarita has provided opportunities to my family and my workplace, Logix Federal Credit Union. The residents and businesses are committed to making it the best place to live and work. It is because of their desire to improve and grow the area that the city is so successful and so many people appreciate living here.
Santa Clarita Economic Outlook Forecast, March 30
E
ach year, the Santa Clarita Valley Economic Devel-
economists, will provide an in-depth forecast of our na-
also receive tickets to an exclusive, pre-event luncheon
opment Corporation and College of the Canyons
tional and local economies, as well as discuss global mega-
with special guest speaker Terry Paulson, a Ph.D. psy-
host the spring release of the Santa Clarita Econom-
trends. This is the only event of this kind with information
ic Outlook Forecast. This year’s event is March 30 at the Valencia Hyatt. Mark Schniepp, Director of the California
specific to the Santa Clarita Valley. Additionally, sponsorship opportunities of various levels, including Platinum, Gold, Silver and Bronze are
chologist, award-winning professional speaker, national columnist, and author. The 2017 Santa Clarita Economic Outlook Confer-
Economic Forecast, and Mark Vitner, Managing Direc-
still available. Along with reserved tickets, promotion
ence is sure to sell out, so be sure to register now! www.
tor, Senior Economist at Wells Fargo, this year’s featured
and marketing, Platinum and Gold level sponsorships
scvedc.org/outlook
Econo Watch Santa Clarita Valley
Source: Santa Clarita Valley Economic Development Corporation
Q4 ’16
Q3 ’16
Q2 ’16 Sq Ft
Commercial Vacancy Rates Office Space
10.70%
10.60%
514,965
Industrial Space
2.00%
2.30%
377,386
Retail Space
4.90%
4.90%
621,465
Total Marked Sq. Ft. Vacancy Percentage Office Space - as a % of Vacancy
34.02%
32.58%
N/A
Industrial Space - as a % of Vacancy
24.93%
27.98%
N/A
Retail Space - as a % of Vacancy
41.05%
39.44%
N/A
Jan ‘17
Dec ‘16
Jan ’16
Commercial/Industrial Building Permits
1
4
0
Residential Building Permits
10
6
9
Building Permits
Local Company Stock Prices Bank of Santa Clarita (BSCA) Mannkind (MNKD) California Resources Corp California United Bank Carnival Corp. (CCL) Mission Valley Bank (MVLY) Six Flags (SIX) Woodward (WWD) Lennar (LEN)
Jan ‘17 11.85 0.7 21.42 36.25 55.38 10.6 59.58 69.64 44.89
Dec ’16 11.6 0.64 21.29 35.8 52.06 10.5 59.96 69.05 42.93
% Change 2.16% 9.37% 0.61% 1.26% 6.38% 0.95% -0.63% 0.85% 4.57%
Unemployment Rates Santa Clarita Palmdale Lancaster Glendale LA County California
Dec ‘16 Noc ‘16 % Change 4.3% 4.4% -2.27% 6.4% 6.5% -1.54% 5.3% 5.4% -1.85% 4.6% 4.7% -2.13% 4.7% 4.8% -2.08% 5.0% 5.3% -5.66%
23
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
Valley Industry Association 25030 Avenue Tibbitts | Suite K | Valencia, CA 91355 | (661) 294-8088 | www.via.org | Content provided by VIA
Why Join VIA?
O
ver the past three and one-half decades, VIA has collaborated with regional organizations to form strategic partnerships that expand its focus and networking capabilities. By strengthening areas of influence, VIA at times has reached beyond the valley’s borders, all for the purpose of creating
greater value for members. It may not be rocket science (although VIA has several scientists within its ranks), but it makes good business sense to allocate limited marketing dollars where you get the most “bang for your buck”. Depending on the size of your business or organization, VIA
membership can be less than $1 per day. As a member, you receive special member rates for programs, training and events, and discounts on sponsorships at VIAbranded signature events. Perhaps more importantly, you’ll have the ability to realize a competitive advantage in developing business within the area’s industrial centers. ■
Top Seven Reasons to Join VIA Today 1. Visibility. The expression “out of sight means out of mind” has never been more relevant than now during this postrecession era. VIA members who attend events and participate in business-related activities maintain visibility with business professionals in the community. The more others know about your business, the better informed they are on ways to support your company. 2. Access to Community Leaders and Elected Officials. When joining VIA and taking the next step to become actively involved, you’ll soon discover that meeting prospects who may have an interest in your company or who can refer you to the key contacts you’re trying to reach is a huge benefit of membership. Whether volunteering to serve on a committee or attending specific events where prospects are likely to be, you’ll find yourself in situations where you can identify and meet decision makers face-to-face. 3. Ongoing Training, Education & Professional Development. VIA offers leadership training for members through
its Leadership Academy and sales training through the Sales Academy. VIA offers additional training and education periodically throughout the year on a variety of topics. Sensitive to the time constraints every business person has, VIA keeps members updated, informed and educated on issues affecting the local business community in the most concise and timesaving ways possible. 4. Networking. VIA offers a variety of venues and opportunities to meet new people and always maintain visibility. From seminars, monthly luncheons, the VIA B2B Show, VIA Rocks Networking Mixers, the annual VIA Bash gala, membership referrals and various business committees, there’s ample ways to meet new contacts, referrals and people who can help you with ideas and additional ways to increase the visibility and goals of your company. 5. Low cost advertising opportunities. Whether you have a large or small marketing budget, VIA offers a wide range of affordable advertising options
and sponsorship packages to fit almost every budget. VIA offers news and advertising opportunities through its web and digital assets, newsletter, marketing flyer opportunities at the monthly luncheon, sponsorship opportunities at various events, and exhibitor opportunities to showcase your business at the annual VIA B2B Show. 6. Advocacy. VIA researches, lobbies and routinely discusses with local and regional government units, politicians and the media issues that are relevant to the needs, goals, and challenges of the business community. VIA keeps their membership up-to-date on central issues of importance pertaining to its membership and the community. 7. Credibility. As a member of VIA, your business will be viewed as a reputable and professional organization that is connected to its business community. To learn more about membership, contact Kathy Norris at (661) 294-8088 or visit www.VIA.org.
VIA Luncheon Planning Calendar 2017 As a resource connecting business and industry, VIA’s luncheon program on April 18, 2017 will feature a speaker discussing the change in statutes affecting building in California. Visit VIA. org for details and reservations. For more information related to the city permit process, visit ThinkSantaClarita. com or contact the city of Santa Clarita Economic Development staff at (661) 255-4347.
SPEAKER SERIES Luncheons begin at 11:45 a.m. at the Valencia Country Club, 27330 North Tourney Road in Valencia unless otherwise noted. Business professionals interested in attending should plan to reserve their seat well in advance. Reservations and payment can be made at www.VIA. org/Calendar or by contacting the VIA office at (661) 294-8088.
Tuesday, March 21, 2017 TO BE ANNOUNCED Tuesday, April 18, 2017 Change in statutes affecting building in California
MARCH 2017
SANTA CLARITA VALLEY BUSINESS JOURNAL
25
SCV Chamber of Commerce 27451 Tourney Road | Suite 160 | Santa Clarita, CA 91355 | (661) 702-6977 | www.scvchamber.com | Content provided by the SCV Chamber
How to Market Amid Changing Demographics By Lois Bauccio President and CEO
A
conversation that often takes place among our Chamber business members when they meet for networking has to do with how the changing market and clientele is affecting their business. Let’s face it: nobody likes “change”. However, we must also face the fact that the change is already here, and we are experiencing the simple fact that we can’t reach a customer we don’t understand. At a recent Western Association of Chamber Executives conference which I attended, one of the keynote speakers, Kelly McDonald, gave a very informative talk about changing demographics and how we should be reshaping our sales and marketing techniques accordingly. She has written two books on the subject, “Crafting the Customer Experience for People Not Like You,” and “How to Market to People Not Like You.” My article this month is essentially a book report on the marketing book, which I found to be an excellent read. The reality about “changing” demographics is, of course, that the change is already upon us. Unfamiliar customers include differences in age (so much has been written about the various “Gens”!); women as singles,
heads of household, working moms, home-schooling moms, etc.; immigrants, ethnic groups; sexuality and gender differences; special interests; political spectrum differences; urban vs. suburban; military vs. civilian; vegetarian/vegan vs. carnivores, etc. The list seems endless, and in fact it is growing. So, what
Fabulous Chamber Mixer as Galpin Motors Unveils New Impreza
are we to do when our marketing and sales messages have grown to be too limited and not inclusive enough? McDonald posits that the answer to this question rests with the notion of getting out of our “comfort zone” and entering into a new territory – a territory which requires that we read everything we can about our new target group or groups. Attend events, meetings and other gatherings where our new potential prospect group might go. Find out what’s on their minds. Understand their values, tastes, needs and concerns. Listen to complaints, and understand how they prefer to communicate – probably not phone or letter but rather by text or Facebook, etc. Hire from the target group if possible. Most of all, we need to understand that while there is no one size that fits all, and no one said it would be easy, the process of understanding our new target groups will force us to create relationships that will help us succeed and improve our businesses. Who knows, it might even help us create a less fractured/fragmented client base as we move further forward into the current century. That would be great for everyone. I recommend How to Market to People Not Like You, “Know It or Blow It,” by Kelly McDonald, John Wiley & Sons, Inc., 2011. P.S. Don’t forget to attend the largest and longestrunning networking opportunity in Santa Clarita, Good Morning SCV, the Chamber Business Breakfast on the second Wednesday of every month at TPC, 7:00 a.m. – 9:00 to try out your new marketing skills! Register at www.scvchamber.com.
26
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
REAL ESTATE SECTION – Commercial, Industrial, Retail & Land Retail Buildings
Sq. Ft.
Sale/Lease
23154 Valencia Boulevard
10,300
Lease
Price $1.25 SF/MO/NNN
Valencia Mart
25830-25848 McBean Parkway
1,999 - 2,800
Lease
2,552
Lease
$1.25 SF/MO/NNN
Golden Oak Plaza
26477-26557 Golden Valley Road
916, 922, 1,022, 1,239
Lease
$2.00 SF/MO/NNN
Centre Pointe Marketplace
18597 – 18607 Soledad Canyon Road
2,250 - 3,500
Lease
$1.50 - $2.00 SF/MO/NNN
Canyon Square
25739 Wayne Mills Place
1,061
Lease
$3.00 SF/MO/NNN
The Shops at Tourney
20605 Soledad Canyon Road 23323 - 23453 Lyons Avenue
1,500 2,575, 2,280
Lease Lease
Negotiable $1.50 - $3.25 SF/MO/NNN
Old Orchard Shopping Center Patti Kutschko (Daum Commercial) 661-670-2003
23542 - 23546 Lyons Avenue 23452 - 23560 Lyons Avenue
731 - 1,409 450 - 4,000
Lease Lease
$1.72 SF/MO/NNN $1.10 SF/MO/NNN
11,057
Lease
$2.00 SF/MO/NNN
500 – 6,000 1,110 1,550 2,058
Lease Lease Lease Lease
$2.00 SF/MO/MG $1.75 SF/MO/NNN $1.50 SF/MO/NNN $2.00 - $2.50 SF/MO/MNN
Matt Sreden (NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661-705-3569
27510 The Old Road
Yair Haimoff (NAI Capital) 818-203-5429, Randy Cude (NAI Capital) 661-705-3553, Steve Body (NAI Capital) 818-852-9255
24254 Main Street 24171 Main Street 24406 Main Street 22520 Lyons Ave; Laemmie Theatre
Old Town Newhall Properties
23120 – 23130 Lyons Avenue
900 - 3,250
Lease
$1.25 - $1.60 SF/MO/NNN
Wayman Court
25065 - 25067 Peachland Ave 26865 – 26889 Sierra Highway
1,830 1,350 – 2,265
Lease Lease
$1.90 SF/MO/MG $2.35 SF/MO/NNN
Riverview Plaza
25269 The Old Road
1,300 – 2,442
Lease
$1.50 - $1.75SF/MO/NNN
Sunset Pointe Plaza
24003 Newhall Ranch Road
3,053
Sub-Lease
$3.00 SF/MO/NNN
Bridgeport Village
25810 Hemingway Avenue
1,298 - 2,330
Lease
$2.00 - $2.25 SF/MO/NNN
Stevenson Ranch Plaza
23740 Lyons Avenue
1,848
Lease
$2.50 SF/MO/NNN
Lyons Plaza Tim Crissman (RE/Max Crissman Commercial Services) 661-295-9300
27737 Bouquet Canyon Road, Suite #115 Suite # 118 Suite # 126 Suite # 132
1,040 1,747 850 2,191
Lease Lease Lease Lease
Negotiable Negotiable Negotiable Negotiable
8,090 - 11,090
Lease
$1.95 SF/MO/NNN
Yair Haimoff (NAI Commercial) 818-203-5429
28207- 28313 Newhall Ranch Rd.
Gateway Village
28112 - 28136 Newhall Ranch Rd.
1,195 - 3,650
Lease
$2.75 SF/M0/NNN
Highridge Crossing
27923 – 27959 Seco Canyon Rd.
1,600
Lease
$2.50 SF/M0/NNN
Seco Canyon Village
27015 McBean Parkway
1,000 - 54,000
Lease
Negotiable
The Promenade
SEC Newhall Ranch Rd. & Rye Canyon Rd. 1,500 - 10,000
Lease
$2.50 - $3.25 SF/MO/NNN
Copper Ranch Plaza
26441 Bouquet Canyon Road
1,692
Lease
$4.00 SF/MO/NNN
Bouquet Shopping Center
27530 Newhall Ranch Road. Suite #109
1,750
Lease
$3.00 SF/MO/NNN
Valencia Village
27647 Bouquet Canyon Road
1,200 - 12,000
Lease
$2.50 SF/MO/NNN
Bouquet Canyon Plaza
23922 Summerhill Lane
1,195
Lease
$2.75 SF/MO/NNN
Summerhill Village
27544 Newhall Ranch Road
1,500
Lease
$2.50 SF/MO/NNN
Plaza Del Rancho John Cserkuti (NAI Capital) 661-705-3551
19971 Soledad Canyon Road 18517 Soledad Canyon Road
Sale Sale
27630 The Old Road 24300 – 24305 Town Center Drive 24510 Town Center Drive
1,700 – 7,000 997 – 8,565 660 – 2,337
Lease Lease Lease
Negotiable $2.20 -$3.50 SF/MO/NNN $3.00 SF/MO/NNN
24048 Newhall Avenue 27516 The Old Road
7,200 2,000 - 6,500
Sale Lease
$283.00 SF/$2,040,000 Negotiable
27737 Bouquet Canyon Road
1,084- 2,191
Lease
$1.70 SF/MO/NNN
18926 - 18932 Soledad Canyon Road
1,080 - 2,280
Lease
$1.75 SF/MO/NNN
Cody Chiarella (CBRE) 818-502-6730
Yair Haimoff (NAI Capital) 818-203-5429
$56.00 SF/$65,000 $117.00 SF/$129,000
Andrew Ghassemi (NAI Capital) 661-705-3039, Randy Cude (NAI Capital) 661-705-3553, Yair Haimoff (NAI Capital) 818-203-5429 Knoll Shopping Center
24250 Lyons Avenue
1,200
Sub-Lease
$2.00 SF/MO/NNN
The Moss Center
28111 Bouquet Canyon Road
850 - 3,000
Lease
$1.35 - $2.50 SF/MO/NNN
Santa Clarita Place
26111 Bouquet Canyon Road
1,000 - 3,000
Lease
Santa Clarita Plaza
Sale/Lease
1,250, 1,692, 3,000
Lease
18560 Via Princessa 19981 Soledad Canyon Road 27532 - 27538 Sierra Highway 26234 Bouquet Canyon Road 27737 Bouquet Canyon Road
Price $2.25 SF/MO/NNN
$1.75 - $2.00 SF/MO/NNN
700 940 920 - 1,200 1,000, 1,692, 2,800 582 - 2,191
Lease Lease Lease Lease Lease
$4.29 SFMO/NNN $1.50 SF/MO/NNN 2.00 SF/MO/NNN $2.25 SF/MO/NNN $1.70 SFMO/NNN
Randy Cude (NAI Capital) 661-705-3553
Office/Commercial Buildings
Sq. Ft.
20605 Soledad Canyon Road 28005 Smyth Drive
1,500 8,946
27770 N. Entertainment Drive
5,000 - 10,000
Sale/Lease
Price
Sale/Lease $2.00 SF/MO/NNN/$825,000 Sale TBD
Kevin Tamura (Daum Commercial) 661-670-2001, Ron Berndt (Daum Commercial) 661-670-2000, Patti Kutschko (Daum Commercial) 661-670-2003
Lease
Allen Trowbridge (CRESA) 818-825-4141
22777 Lyons Avenue, Suite #219 22777 Lyons Avenue, Suite #100
402-1,700 1,350
Lease Lease
$2.25 SF/MO/FSG $1.30 SF/MO/MG $1.30 SF/MO/MG
The Lyons Building Andrew Ghassemi (NAI Capital) 661- 705-3039, Yair Haimoff (NAI Capital) 818-203-5429
28159 Avenue Stanford Suite, #200 5,673 Lease Suite, #224 1,414 Lease Suite, #226 1,084 Lease Suite, #170 2,829 Lease
$1.70 SF/MO/MG $1.50 SF/MO/MG $1.75 SF/MO/MG $1.70 SF/MO/MG
Rexford Valencia Industrial Park Richard Ramirez (CBRE) 818- 907-4639, Robert Valenziano (CBRE) 818- 907-4663, Craig Peters (CBRE) 818- 907-4616
25044 Peachland Avenue 23556 - 23560 Lyons Avenue 23548 - 23560 Lyons Avenue
805- 832 280 - 1,320 450 - 2,623
Lease Lease Lease
$1.85 SF/MO/NNN $1.65 SF/MO/NNN $1.68 SF/MO/NNN
25,200 2,332 5,562 3,460
Foe Sale Lease Lease Lease
$258 SF; $6,500,000 $1.15 SF/MO/NNN $1.55 SF/MO/NNN $1.15 SF/MO/NNN
Matt Sreden (NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661-705-3569
25322 Rye Canyon Road 26320 Diamond Place, Suite # 170 26320 Diamond Place, Suite # 200 26330 Diamond Place, Suite # 140
Yair Haimoff (NAI Capital) 818-203-5429, Matt Sreden(NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661-705-3569
25129 The Old Road, Suite # 105 1,629 Lease Suite # 110 2,300 Lease Suite #207 1,273 Lease Suite #210 2,338 Lease Sunset Pointe Plaza 24001 Newhall Ranch Road Suite, #210/#211 488 Lease 26491 Summit Circle 2,397 Lease
$2.50 SF/MO/FSG $2.50 SF/MO/NNN $2.50 SF/MO/NNN $2.50 SF/MO/NNN $2.40 SFMO/NNN $1.75 SF/MO/NNN
Tim Crissman (ReMax/Crissman Commercial Services) 661-295-9300
28494 Westinghouse Place
552 - 2,208
Lease
$2.15 SF/MO/MG
Valencia Atrium
27200 Tourney Road
2,181 - 22,919
Lease
$2.20-$2.55 SF/MO/FSG
Tourney Pointe
25129 The Old Road
2,300
Lease
$2.35 SF/MO/FSG
Sunset Pointe Plaza
23822 Valencia Blvd.
857 - 4,104
Lease
$2.25 SF/MO/FSG
Valencia Oaks
23929 Valencia Blvd.
1,114 - 2,923
Lease
$2.35 SF/MO/FSG
Bank of America Tower
27202, 27220 & 27240 Turnberry
1,866 - 10,965
Lease
$2.15 SF/MO/FSG
Summit at Valencia
25600 Rye Canyon Road
645 - 910
Lease
$1.50 SF/MO/MG
Executive Center Valencia Kevin Fenenbock (Colliers Int.) 661-253-5204
27451 Tourney Road 3,392 28480 Avenue Stanford 6,187 Suite, # 255 1,755 Suite, # 260 1,940 Suite, # 285 2,728 Suite, # 295 1,133 25061 Avenue Stanford Suite, # 100 Ind/Flex 5,687 25020 Avenue Stanford Suite, # 100 Ind/Flex 943 Suite, # 200 Ind/Flex 3,131
Sublease Sublease Lease Lease Lease Lease Lease Lease Lease
$2.35 SF/MO/FSG $1.50 SF/MO/FSG $1.85 SF/MO/FSG $1.85 SF/MO/FSG $1.85 SF/MO/FSG $1.85 SF/MO/FSG $1.10 SF/MO/Gross $1.10 SF/MO/Gross $1.10 SF/MO/Gross
Paragon Business Center John Erickson (Colliers Int.) 661-253-5202
24501 Town Center Drive, Suite # 103
1,150 1,100
Sarkis Ghazaryan (NAI Capital) 661-705-3561
Sq. Ft.
26441 Bouquet Canyon Road
Soledad Entertainment
$2.50 - $3.00 SF/MO/NNN
Granary Square
21515 Soledad Canyon Road
Retail Buildings cont.
2,810
Lease
$2.30 SF/MO/NNN
1814 - 9,501
Lease
$1.80 SF/NNN
Craig Peters (CBRE) 818-907-4616, Sam Glendon (CBRE) 818-502-6745, Cody Chiarella (CBRE) 818- 502-6730
25102 Rye Canyon Loop Suite, # 120
Mann Biomedical Park Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607
26650 The Old Road
915- 3,060
Lease
$2.65 - $2.80 SF/M0/FSG
Westridge Executive Plaza Richard Ramirez (CBRE) 818-907-4639, Craig Peters (CBRE) 818-907-4616
25152 - 25154 Springfield Court
1,187 - 20,000
Lease
$2.75 SF/MO/FSG
The Commons at Valencia Gateway
25350 - 25360 Magic Mountain Parkway 1,500 - 8,000
Lease
$2.85 SF/MO/FSG
Gateway Plaza
24200 Magic Mountain Parkway
1,300 - 6,000
Lease
$2.25 SF/MO/NNN
VTC IV David Solomon (CBRE) 818-907-4628
27201 Tourney Road
2,389
Lease
$2.35 SF/MO/FSG
Valencia Executive Plaza Branson Brinton (SCV Commercial) 818-414-7657
21704 Golden Triangle Road
200 - 850
Lease
Hillside Professional Center
Dan Robinson (Archer Real Estate) 661-255-0154
$1.75 SF/MO/FSG
MARCH 2017
SANTA CLARITA VALLEY BUSINESS JOURNAL
27
REAL ESTATE SECTION – Commercial, Industrial, Retail & Land (cont.) Office/Commercial Buildings cont.
Sq. Ft.
Sale/Lease
Price
24001 Newhall Ranch Road Suite, #260
486
Lease
$3.65 SF/MO/FSG
Bridgeport Marketplace Craig Peters (CRRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607
25115 Avenue Stanford
1,273 - 7,189
Lease
$1.75 SF/MO/FSG
Industrial Buildings cont. 26346 Ferry Court 28486 Westinghouse Place. Suite # 110 28452 Constallation Road
Sq. Ft.
Sale/Lease
6,263 7,513 3,180
Lease Lease Lease
Yair Haimoff (NAI Capital) 818-203-5429
Valencia Park Executive Center Richard Ramirez (CBRE) 661-907-4639, Robert Valenziano (CBRE) 818-907-4663
28348 Constellation Road
28470 - 28490 Avenue Stanford
24820 Avenue Tibbitts
1,230 - 11,627
Lease
$2.75 SF/MO/FSG
Valencia Corporate Plaza Craig Peters (CBRE) 818-907-4616, Richard Ramirez (CBRE) 818-907-4639
28546 Constellation Road
5,734
Lease
$0.90 SF/MO/NNN
23734 Valencia Boulevard
1,523 - 1,860
Lease
$1.95 SF/MO/FSG + J
Richard Ramirez (CBRE) 818-907-4639, Craig Peters (CBRE) 818-907-4616 Valencia Financial Center
23838 Valencia Boulevard
1,110 - 2,674
Lease
$2.25 SF/MO/NNN
Atrium Medical Building Yair Haimoff (NAI Capital) 818-203-5429, Matt Sreden (NAI Capital) 818-742-1660, Andrew Ghassemi (NAI Capital) 661-705-3039
23502- 23504 Lyons Avenue
692 - 5,710
Lease
$1.55 SF/MO/FSG + J
Lyons Plaza
23542- 23560 Lyons Avenue
450 - 4,000
Lease
$1.10 SF/MO/NNN
Plaza Posada Cameron Gray (NAI Capital) 661-705-3569
26491 Summit Circle
2,397
Sale/Lease $742K; $1.75 SF/MO/NNN
Summit Circle
Price $0.95 SF/MO/NNN $216.00 SF/$1,540,000 $0.85 SF/MO/NNN
Michael Corbin (DAUM Commercial Services) 661-670-2004, Kevin Tamura (DAUM Commercial Services) 818-449-1631
13,045
Lease
$0.75 SF/MO/NNN
Tim Crissman (Re/Max Crissman Commercial Services) 661-295-9300
28368 Constellation Road, Bldg C - Suite, # 360 4,017 26074 Avenue Hall Suite, # 20 3,082 Suite, # 15 6,164 Suite, # 1 7,444 28079 Avenue Stanford 25,130 25570 Rye Canyon Road, Suite K 2,500 28650 Braxton Avenue 52,260 26943 - 26951 Reuther Avenue Suite, A 2,812 Suite, C 1,535
Sale Lease Lease Lease Lease Lease Lease Lease Lease
$205.00 SF/$825,000 $0.95 SF/MO/Gross $0.95 SF/MO/Gross $0.95 SF/MO/Gross $0.70 SF.MO/NNN $1.10 SF/MO/Gross $0.65 SF/MO/NNN $0.95 SF/MO/Gross $0.95 SF/MO/Gross
John Erickson (Colliers Int.) 661-253-5202, Chris Erickson (Colliers Int.) 661-253-5207
25158 Avenue Stanford 28486 Westinghouse Place Suite, # 120 28334 Industry Drive
44,548 6,255 35,310
Sale Sale Lease
$132.00 SF/$5,880,000 $209.00 SF/$1,307,000 $0.59 SF/MO/NNN
Matt Dierckman (CBRE) 818-502-6752
24971 Avenue Stanford
20,415
Sale
$135.00 SF/$2,800,000
24303 Walnut Street
200 - 770
Lease
$2.00 SF/MO/MG
Mark Sokolowski (NDKF) 310-491-2075, 818-497-8815, Sean O’Leary (NDKF) 310-491-2010
27955 Smyth Drive
800 - 850
Lease
$1.90- $2.00 SF/MO/FSG
Craig Peters (CBRE) 818-907-4616, Sam Glendon (CBRE) 818-502-6745
Tim Crissman (Re/Max Crissman Commercial Services) 661-295-9300 Rebel Suites
25050 Avenue Kearny
1,500
Lease
$1.65 SF/MO/FSG
Rebel Professional
25128 Avenue Tibbitts
2,833 - 5,666
Lease
$2.25 SF/MO/MG
Randy Cude (NAI Capital) 661-705-3553
Office/ Medical Buildings 25775 McBean Parkway 25880 Tournament Road
Sq. Ft.
Sale/Lease
1,201 - 6,682 1,043 – 4,559
Lease Lease
Price $2.76 SF/MO/NNN Negotiable
Cody Chiarella (CBRE) 818-502-6730, Troy Pollet (CBRE) 818-907-4620
22777 Lyons Avenue
150 - 1700
Lease
$0.11- $2.33 SF/MO/MG
The Lyons Building Andrew Ghassemi (NAI Capital) 661-705-3039, Yair Haimoff (NAI Capital) 818- 203-5429
25050 Peachland Avenue
800 - 4,000
Lease
$1.95 SF/MO/NNN
24832 Avenue Rockefeller
16,897
25159 Avenue Stanford
79,701
Sale Sale
$159.00 SF $115.00 SF/$9,200,000
Todd Lorber (NAI Capital) 818-933-2376
27772 Avenue Scott
22,565
Lease
$0.80 SF/MO/NNN
Yair Haimoff (NAI Capital) 818-203-5429, Randy Cude (NAI Capital) 661-705-3553
28210 N. Avenue Stanford 28903 Avenue Paine 25161 Rye Canyon Loop Building, #61
109,379 146,000 23,292
Lease Sale Lease
$0.58 SFMO/NNN $142 SF + 1.8 ac. Land $0.60 SF/MO/NNN
Mann Biomedical Park
25110 Rye Canyon Canyon Loop
8,384
Lease
$0.76 SF/MO/NNN
Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607
26374 Ruether Avenue
2,680
Lease
$1.15 SF/MO/MG
Bernards Centre Point Park
Plaza Posada Medical Center Matt Sreden (NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661-705- 3569
25110 Rye Canyon Canyon Loop
27420 Tourney Road; Suite #220
Tim Crissman (ReMax/Crissman Commercial Services) 661-295-9300
550
Lease
$5.00 SF/MO/NNN
Yair Haimoff (NAI Capital) 818 - 203-5429
Land (Commercial, Industrial & Retail) Acres
Sale
SWC Golden Valley Rd./Centre Pt. Pkwy.
Sale
1.5
Nigel Stout (JLL) 818-531-9685
23600 Sierra Highway 23658 Sierra Highway Placerita Canyon Sierra Highway SEC Castaic Road/Parker 49637 Gorman Post Road 3251-014-016 Peace Valley Road 3251-014-019 Peace Valley Road
10 6 10 30,000 21,195 47,996 2 1
Price $35.20 SF/$2,300,000
Sale $14.35 SF/$6,250,000 Sale $18.00 SF/$4,700,000 Sale $57.00 SF/$25,000,000 Sale $20.00 SF/$599,000 Sale/Lease $56.60 SF/$1,200,000/$8,500 MO Lease $2,500 MO SaleLease $19.40 SF/$2,000,000/$10,000 MO Sale/Lease $45.90 SF$1,500,000/$8,333 MO
Randy Cude (NAI Capital) 661-705-3553
NEC Bouquet Canyon Road & Plum Canyon Road 1.86 NWC Bouquet Canyon/Madrid Road 3.71
Sale Sale
$25.00 SF/$2,025,000 $30.00 SF/$4,848,000
17129 Sierra Highway 24605 Railroad Avenue 15112 Sierra Highway
3 10,743 149
Sale Sale Sale
$16.00 SF/$2,199,000 $55.75 SF/$599,000 $.60 SF/$3,900,000
1.19 1.9 2.29 2.67 3.86 4.96 6.15
Sale Sale Sale Sale Sale Sale Sale
$21.00 SF/$1,100,000 $23.00 SF/$1,900,000 $21.00 SF/$2,100,000 $21.00 SF/$2,500,000 $21.00 SF/$3,500,000 $21.00 SF/$4,500,000 $21.00 SF/$5,600,000
John Z. Cserkuti (NAI Capital) 661-705-3551
Yair Haimoff (NAI Capital) 818-742-1659
SWC Soledad Canyon Rd/Golden Valley Rd Valley Business Center Valley Business Center Valley Business Center Valley Business Center Valley Business Center Valley Business Center
Kevin Tamura (Daum Commercial) 661-670 -2001, Ron Berndt (Daum Commercial) 661-670-2000
Industrial Buildings
Sq. Ft.
Sale/Lease
28110 Avenue Stanford
5,456
Lease
$0.90 SF/MO/NNN
26245 Technology Drive
60,068
Lease
$0.63 SF/MO/NNN
Richard Ramirez (CBRE) 818-907-4639 Doug Sonderegger (CBRE) 818-907-4607
28313 Industry Drive 26027 Huntington Lane; Suite F 28920 Avenue Penn
2,786 4,119 4,100 - 6,299
Lease Lease Lease
20655 Soledad Canyon Road, Suite # 41 Suite, # 17 Suite, # 24 Suite, # 42 Suite, # 25 17645 Sierra Highway 28939 Avenue Williams
4,598 - 5,588 1,360 3,032 - 4,865 990 1,833 - 4,865 2,090 - 4,180 58,394
Lease Lease Lease Lease Lease Lease Sub-Lease
Sam Glendon (CBRE) 818- 502-6745
Price
$1.05 SF/MO/NNN $0.90 SF/MO/NNN $1.12 SF/MO/NNN $1.75 SF/MO/NNN $1.49 SF/MO/NNN $1.49 SF/MO/NNN $1.57 - $1.85 SF/MO/NNN $1.49 SF/MO/NNN $1.44 SFMO/NNN $.79 SF/MO/Gross
8,384
Sub Lease
$0.64 SF/MO/NNN
Mann Biomedical Park
28939 N. Avenue Williams
58,395
Sublease
$0.79 SF/MO/IG
Valencia Gateway Business Park Matt Sreden (NAI Capital) 818-742-1660, Yair Haimoff (NAI Capital) 818- 203-5429
24700 Avenue Rockefeller
45,269
Lease
$0.68 SF/MO/NNN
Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607
21515 Centre Pointe Parkway
16,773
Sale
$215.00 SF/$3,606,000
Chris Jackson (NAI Capital) 818-933-2368,Todd Lorber (NAI Capital) 818-933- 2376, Matt Ehrlich (NAI Capital) 818-933- 2364
28545 Livingston Avenue 28454 Livingston Avenue
173,000 134,287
Lease Sub-Lease
$0.65 SF/MO/NNN $0.65 SFMO/NNN
Chris Jackson (NAI Capital) 818-933-2368,Todd Lorber (NAI Capital) 818-933- 2376
27756 Avenue Hopkins 28348 Constellation Road
21,884 4,857
Lease Sale
$0.64 SF/M0/NNN $216.00 SF/$1,100,000
Richard Ramirez (CBRE) 818-907-4639
28251 & 28255 Kelly Johnson Parkway
26,318
Lease
$0.85 SF/MO/NNN
Craig Peters (CBRE) 818-907-4616, Richard Ramirez (CBRE) 818-907-4639
Future Industrial Projects
Sq. Ft.
Sale/Lease
Price/Occupancy
VCC; West of I-5/NE SR 126
Gateway V IAC Commerce Center (Phase 1)
60,923, 88,752, 105,407 93,600, 116,740, 187,880
Lease Lease
TBD;1Q 2017 TBD; 1Q 2017
Sierra Highway/Newhall Avenue/East/SR14 Freeway
Needham Ranch (Phase 1)
16,000 - 223,530
Sale /Lease
TBD; 3Q 2017
Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607, Richard Ramirez (CBRE) 818-907-4639
28608 Hasley Canyon Road Avalon Business Center
44,162 20,499, 23,668
Lease Lease
$0.72 SF/MO/NNN $0.74 SF/MO/NNN
James Ebanks (Realty Advisory Group Inc.) 661-702-8880 x 12, Lauren Ebanks (Realty Advisory Group Inc.) 661-702-8882 x 18
28510 Industry Drive
46,778
Sale
$142.50 SF/$6,665,865
Gateway Industrial Doug Sonderegger (CBRE) 818-907-4607, Craig Peters (CBRE) 818-907-4616
Future Office Projects 27770 N. Entertainment Drive
Sq. Ft.
Sale/Lease
100,000 SF (5,000-10,000 SF) Sublease
Price $2.25 SF/MO/NNN
Allen Trowbridge (Cresa) 818-223-0073 The Real Estate Section of the SCVBJ is the most comprehensive database of Commercial, Industrial, Retail and Land Listings in the SCV. Note: Parties interested in properties should contact listing broker(s) or agent(s) for more information. To list here:
James E. Brown, Manager Business Attraction, SCVEDC, 661-288-4413, JimBrown@scvedc.org
28
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2017
REAL ESTATE SECTION – Residential Housing Stats - Santa Clarita Valley
SCV Median Home Value SCV Median Condo Value SCV Home Sales SCV Condo Sales SCV Avg. # of Days on Market (SF) SCV Single Family Home Inventory December Sales
Jan ‘17
560,000 360,000 123 69 94 427
Dec ‘16
Jan ’16
555,000 530,000 340,000 306,500 198 113 84 55 104 93 413 443
Source: Santa Clarita Valley Economic Development Corporation.
Acton New Listings. . . . . . . . . . . . . . . . 8 Total Active Listings . . . . . . . . . 41 New Escrows Closed. . . . . . . . . . 6 Median Sale Price. . . . . . $425,000
Newhall New Listings. . . . . . . . . . . . . . . 33 Total Active Listings . . . . . . . . . 49 New Escrows Closed. . . . . . . . . 24 Median Sale Price. . . . . . $370,000
Agua Dulce New Listings. . . . . . . . . . . . . . . . 8 Total Active Listings . . . . . . . . . 21 New Escrows Closed. . . . . . . . . . .4 Median Sale Price. . . . . . $605,000
Saugus New Listings. . . . . . . . . . . . . . . 55 Total Active Listings . . . . . . . . . 70 New Escrows Closed. . . . . . . . . 30 Median Sale Price. . . . . . $500,500
Canyon Country New Listings. . . . . . . . . . . . . . . 63 Total Active Listings . . . . . . . . 101 New Escrows Closed. . . . . . . . . 42 Median Sale Price. . . . . . $428,000
Stevenson Ranch New Listings. . . . . . . . . . . . . . . 23 Total Active Listings . . . . . . . . . 28 New Escrows Closed. . . . . . . . . 10 Median Sale Price. . . . . . $725,000
Castaic New Listings. . . . . . . . . . . . . . . 29 Total Active Listings . . . . . . . . . 34 New Escrows Closed. . . . . . . . . 15 Median Sale Price. . . . . . $455,000
Valencia New Listings. . . . . . . . . . . . . . . 80 Total Active Listings . . . . . . . . . 89 New Escrows Closed. . . . . . . . . 61 Median Sale Price. . . . . . $500,000 Source: Southland Regional Association of Realtors. Jan. 1 - 31, 2017
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