Rodeo Realty

Luxury real estate is Joe Babajian’s forte, and the Rolodex of clientele the L.A. native has housed and de-homed over the years is hard to match — by which we mean, it includes Beyonce. The Rodeo Realty broker has also bought and sold homes for Harrison Ford, Nicolas Cage, Janet Jackson, Maria Shriver, and the one and only Barbra Streisand.

We spoke with the seasoned agent about Pacific Rim buyers, showing houses to Michael Jackson and L.A.’s rise.

Where did you grow up?

I grew up near Playa del Rey by the beach and went to UC Santa Barbara. Playa del Rey is a whole different world from Bel Air and Beverly Hills where I live now. Growing up in Playa might as well be like growing up in New York and coming to L.A., just totally different worlds.

What areas of L.A. do you prefer?

I really like Beverly Hills and Bel Air, and the west end of the Hollywood Hills — the epicenter of the city.

We’re powering through a serious upcycle that’s giving a lot of love to the Eastside… 

It’s like that whole energy has shifted east. The studios have done the same. Hollywood Boulevard has changed dramatically over last 5 to 10 years, and DTLA, that whole east end. These young hipsters, rich kids who are young and with trust funds, they want to be on the east side in Silver Lake, Los Feliz and Echo Park. That’s not to say Brentwood, Beverly Hills, Palisades aren’t still desirable, but they’re not the only players out there.

You’ve been in the business for 30 years: How has the L.A. market changed? 

There have been four international cities that have garnered the big numbers — New York, Hong Kong, London, Tokyo — places where things sell for $8,000 a foot. They have always been the top-tier of price structures for cities in the world. L.A. has always been an expensive city, but not at that level. What’s happened in the last five years has two schools of thought. One is this is the normal cycle and it will end in a year or two and adjust again. The other thinking is that L.A. is coming into it’s own and will be commanding within the top-tier price structure.

Why now and never before?

We used to be in the middle of nowhere. The east coast had the advantage with being near Europe. Now with the Pacific Rim we have an advantage. Things have changed. The wealthiest in the developing world want to own a place in the U.S. and L.A. has become increasingly attractive. We have a lot of wealthy Indonesian and Chinese buyers. Even with all of America’s problems, a lot of foreign buyers want a residence here because they want their kids to have a place to live when they go to college here. Our government isn’t going to be overthrown so a residential investment is solid.

So international buyers are choosing L.A. over New York? 

The storms have really turned people off from the East Coast.

How much of the Silicon Beach migration are you getting?

The tech presence extends well beyond Silicon Beach. Larry Ellison bought a place is Malibu. His daughter is in the Hollywood Hills. The Minecraft guy (Markus Persson) bought in Trousdale for $70 million. Five years ago that would have been $15 million. Sean Parker bought in Holmby Hills. Eric Schmidt bought on South Mapleton Drive. L.A. has become a huge epicenter of tech moguls.

So the L.A. vs. San Francisco rivalry is of yesteryear? 

There has always been a rivalry between L.A. and the Bay Area. It’s in their DNA to hate L.A. before they even know and see it. But I think the association (between tech) and the entertainment industry naturally has its effect.

What are some under-appreciated areas buyers should consider?

Beachwood (Canyon). The west end of Los Feliz…has great old 100-year-old Hollywood architecture, where lots of high profiles celebs lived. Another area coming into its own is Baldwin Hills. The prices are really low for getting a nice neighborhood with great views. It’s the new hip area to buy and redo. Also, there’s stuff by USC where a lot of homes are significant architecturally — Craftsmen, Spanish, Mediterranean, Victorian from the teens and 1920s.

Who are your favorite architects living or dead in LA?

(Richard) Neutra is one of my favorite architects. There are some really good Paul Williams homes I like too.

I heard you rescue Dobermans. Where do you like to take them hiking?

We’re a group that goes in packs through the canyons. I like Runyon a lot. There are some great trails in Brentwood and the Palisades. I like Temescal, Griffith, and Franklin Canyon too. Our Central Park is the Santa Monica Mountains.

I must ask: what was it like showing homes to Michael Jackson?

He was a real character. He really was like a kid. I showed him a few homes and he’d literally disappear and pop out of nowhere and you’d hear, “You whoooo!”

The reality is you never become best friends with them. Your relationship is with the business manager or the assistant or the lawyer. It’s rare you become part of their inner circle.

Article courtesy of the Real Deal

Stocks rally Friday to make up some of the week’s losses – It was a volatile week for stocks as oil prices sunk to a 12 year low on Thursday. This pushed stocks down all week as low oil prices hurt economies in oil producing areas, states, countries, and energy companies. On Friday oil prices jumped 11.5%, the largest one day gain since 2009. U.S Crude oil closed Friday at $29.23, which was lower than last week but well above lows 12 year lows on Thursday. Stocks rose about 2% on Friday as oil prices improved. The The Dow Jones Industrial Average rose 313 points on Friday to close the week at 15,973.84, down from 16,204.97 last week. The S&P 500 closed the week at 1,864.78 down from 1,880.05 last week. The NASDAQ closed Friday at 4,337.51, down from 4,363.14 last week.
Bond yields drop – Investors continued to buy bonds this week driving rates down. At one point on Thursday the 10 year bond yield dropped under 1.6%. Yields rose Friday as stocks climbed to end the week higher than Thursday, but down from last week. The 10 year U.S. Treasury bond yield closed Friday at 1.74%, down from 1.84% last week. The 30 year U.S. Treasury bond yield closed Friday at 2.60%, down from 2.67% last week.
Mortgage rates at lowest levels in 3 years and near 50 year lows – The 30 year fixed rates below loan amounts of 419,000 are around 3.5%. 30 year rates for loans above 419,000 are about 3.75%. The 15 year fixed was around 2.875%. The 5 year was around 2.5%.
Retail sales climbed 0.2% in January – January marked the third straight monthly increase in retail sales. American consumers increased spending on automobiles, clothing and online purchases to begin 2016 with strong retail sales results.
Home affordability up slightly in the fourth quarter of 2015 – The California Association of Realtors reported that California’s home affordability index improved to 30% in the fourth quarter of 2015, from 29% in the third quarter. Year over year affordability slipped from 31% in the fourth quarter of 2014. They found that home buyers needed an income of $96,640 to purchase a $483,050 statewide median priced, existing single family home. Lower rates in the fourth quarter and slightly higher wages were attributed to the rise in affordability. Rates in 2016 have dropped over 1/2% so if that trend continues and rates stay at or near current levels affordability should improve, or at least remain at the same levels, even with the escalating price gains we are seeing to start the year!

Have a great weekend!

Daryl Katz, the billionaire owner of the Edmonton Oilers hockey franchise, has bought a house in Bel-Air for $9.1 million. The seller was Henry Morton, the son of hotelier Peter Morton.

Tucked behind chrome gates on about one-third of an acre, the late 1950s Midcentury residence was once owned by Arthur Marx, the son of comedian and actor Groucho Marx.

Entered through a glass front door, the 3,040 square feet of space opens to a formal living room with a wall fireplace. A dining room, a kitchen with a wine refrigerator, a media area, three bedrooms and 4.5 bathrooms complete the open-area living space.

Walls of sliding glass doors open to a loggia, an outdoor living area and a swimming pool and spa. Views take in the downtown cityscape and ocean.

A motor court sits off the entrance to the home.

Josh Flagg of Rodeo Realty was the listing agent. Donovan Healey of John Aaroe Group repped the buyer.

The sale marks the second time the property has changed hands in the past year. Last May, it sold for $8.25 million. Marx, who died in 2011 at 89, sold the home six years ago for $1.685 million, records show.

The house is also nearby the onetime Art Linkletter estate, which Katz acquired last yearfor $34.5 million in an off-market deal. He is currently developing the 4.6-acre estate, according to real estate sources.

Katz, 54, is a Canadian investor and businessman who bought the NHL franchise in 2009. Last year, he partnered with Hollywood producer Joel Silver to form the production company Silver Pictures Entertainment.

His net worth is estimated at $3.2 billion, according to Forbes.

Article courtesy of the LA Times

While everyone’s favorite Target Husk—the one lording over Sunset and Western in East Hollywood—stands accruing graffiti tags and rust (do Targets rust?), city planners have been hard at work trying to figure out how to see the development completed.

This includes, among other things, fundamentally rewriting the city planning documents that govern development on that particular block. Last November, the Planning and Land Use Management Committee announced a recommendation that the City Council amend the Station Area Neighborhood Plan to include higher height-limits. LAist was present at a public comment meeting where East Hollywood Residents weighed in on the Target. While a majority supported the construction, several residents also argued it was irresponsible development.

While the City Council was going to vote on it then, the decision was postponed pending another conflict over a required child-care center, according to the Los Angeles Times.

The city’s Planning Commission voted last November to require that Target provide a nearly 4,000-square-foot child care-center within a mile of the development. Supporting child care is required under city planning law businesses over a certain size. Target Corporation said this was absolutely impractical, but did say that they would be willing to contribute roughly $400,000 to support child-care in the area.

In 2014, a court ruling ordered the development’s construction halted. A lawsuit filed by the La Mirada Homeowner’s Association—argued by notable land-use attorney Robert P. Silverstein—pointed out the City Council violated height limits in the neighborhood. Where the Husk stands 74-feet-tall, it stands on a block with a 35-foot height limit as established by the neighborhood’s planning documents.

But aside from the height limits, the proposed Target also failed to meet certain requirements for parking—it didn’t have enough—nor did it adequately support local centers for child-care.

Obviously this is still a mess. And it doesn’t get better when you consider that the litigious-happy La Mirada Homeowners Association is still around, waiting for the city to make significant action before probably suing again.

If the city does officially modify the Station Area Neighborhood Plan, you can practically hear Silverstein’s opening statement, on behalf of the La Mirada Homeowners Association, as he argues the city failed to conduct proper environmental review before modifying the plan.

As Doug Haines, a member of the Association said to the Times, “Instead of reconfiguring the building to conform with the law, they’re trying to reconfigure the law to conform to the buildings.”

A Metro presentation posted on the Fans of L.A. Metro Rail Facebook page reveals that the transit agency might soon begin experimenting with a more thorough paid parking system at some rail-station parking lots.

While paying for parking is nothing new—a preferential permit system has been in place for some time now—Metro is looking for more ways to build revenue. The agency faces a $36.8 million dollar deficit for the 2017 fiscal year, and what better way to close that deficient than to charge people for parking at some of the 25,000 spaces scattered throughout the agency’s rail network?

The outline for the parking scheme shows a two-tiered rate, charging one rate for transit users, and another for people who just want to park in the lot. Where transit users can expect to pay $2 – $3 for the privilege of parking in a Metro lot, non-transit users will be looking at paying anywhere from $15 – $25 for a space.

For example, at the Universal City lot, a person who parks their car and takes the Red Line to work in downtown would pay $3 for the spot, while a tourist visiting Universal Studios for the day would shell out $25.

The nine stations where Metro will introduce parking fees.

Overall, Metro expects the pilot program to generate about $600,000 for the agency, while providing some evaluation points as the agency looks to further monetize its parking lots. The $600,000 value would grow if the pilot program was expanded.

According to L.A. Magazine, the pilot program will likely begin this May when the Expo Line extension to Santa Monica is widely rumored to open. Along with the North Hollywood and Universal City Red Line stations, the program will include stations-lots along both the Gold and Expo Line.

Those who already hold monthly passes at some of the more crowded stations, notably North Hollywood and Universal City, will continue to enjoy preferential privilege. Incidentally, despite the large parking lots, most Metro users do not drive to the station. As Curbed LA points out, fewer than 15 percent of train users arrive at their initial station by car.

Article courtesy of the LAist

The stock market suffered its second consecutive steep loss Monday in a volatile session that featured a seemingly odd turn of events.

Even as crude oil dropped back below $30 a barrel amid fears of a worldwide economic slowdown, the shares of oil giants Exxon Mobil Corp. and Chevron Corp. jumped in price.

That’s because after weeks of seeing the market fall sharply, many investors are shifting their focus toward shares with stable growth prospects and hefty dividend yields — including the big oil companies — and away from once high-flying stocks, especially those in the tech sector, analysts said.

“There is a shift from go-go momentum growth stocks to old-school stuff,” said David Dietze, chief investment strategist at Point View Wealth Management Inc.

It’s what Wall Street dubs a “rotation” and it means investors are seeking safer investments in the face of the overall market’s decline and volatility.

That volatility was evident again Monday as the market initially plummeted — with the Dow Jones industrial average down 400 points — before a late-afternoon rally pared its losses.

The Dow finished with a loss of 177.92 points, or 1.1%, at 16,027.05. The broader Standard & Poor’s 500 index fell 26.61 points, or 1.4%, to 1,853.44 and the Nasdaq composite index, which is laden with technology shares, dropped 79.39 points, or 1.8%, to 4,283.75.

The losses followed steep declines Friday and added to the substantial damage the market has incurred this year.

The S&P 500 is down 9.3% year to date and the Nasdaq composite index has tumbled 14.5%, well beyond the 10% pullback that’s known as a market “correction.”

One reason: Tech shares were pounded again Monday, especially companies with high price-to-earnings multiples, on grounds that they had become too expensive relative to their growth prospects even if those prospects remain strong.

Fitbit Inc., the maker of activity tracking devices, tumbled 8.6% on Monday and has plunged 51% this year. Amazon.com Inc. and Netflix Inc. are both down about 27% year to date.

Those tech stocks, along with many financial and healthcare stocks, were “the last bastion of the outperforming parts of the market,” said James Paulsen, chief investment strategist at Wells Capital Management Inc.

Major banks and other financial stocks also have taken a beating amid concerns about the banking systems and economies in Europe and Asia, said Art Hogan, chief market strategist at Wunderlich Securities.

Bank of America Corp. has skidded 27% this year, Wells Fargo & Co. is down 14.5% and Visa Inc. has declined 12.6%.

“There is a fear that there may be some sort of a global contagion” that could spread to the U.S. banking system even though “it’s probably not true,” Hogan said.

True or not, the financial stocks “are just catching up with the problems in those [overseas] credit markets,” said Bill King, chief market strategist at M. Ramsey King Securities.

And although many economists don’t see a U.S. recession on the horizon, for those who do fear an economic slowdown “the last thing you want to own is a bank stock,” Paulsen said.

So investors are looking at other market sectors they see as so-called defensive or value plays. Those include the utilities, telecommunication firms and consumer staples companies such as food and beverage firms.

The S&P utilities and telecom indexes are each up 7% this year.

And now Big Oil is starting to move back up, partly due to the companies’ dividends and partly because some investors are betting that even if oil prices drop lower, the companies’ long-term prospects remain solid.

Exxon Mobil, for instance, climbed $1.08 to $81.16 a share Monday, giving the stock a dividend yield of 3.6%. Chevron’s yield is nearly 5%. Both yields are well above the 1% or less available on many savings accounts and the less than 2% yield now available on the 10-year Treasury note.

As stock prices have tumbled, many investors have bought up Treasuries, sending the securities’ prices higher and their yields lower. The yield on the 10-year Treasury, which began the year around 2.2%, fell to 1.75% on Monday.

In the oil market, benchmark light U.S. crude oil fell again Monday, losing $1.20 to $29.69 a barrel on the New York Mercantile Exchange.

Oil prices could fall further and again send energy stocks lower, “but a lot of people are looking at the energy stocks as being the first ones in” when the stock market nosedived “and they will be the first ones out” — or jump in price — when oil markets stabilize, Dietze said.

And for investors looking for other positives, Paulsen said he’s encouraged that “the popular stocks in tech and healthcare, which were leading the market late last summer, are finally capitulating.”

“That’s a good sign that we’re at the latter end of this [decline] rather than at the start,” Paulsen said.

hen it comes to nearby desert hiking, Joshua Tree and its namesake national park deservedly come to mind. At over two hours away, it makes for a great getaway. But such a distance can be an impediment for a desert day hike where starting and ending the day in the comfort of your own home is what you’re feeling. Luckily, Los Angeles County shares a swath of the Mojave Desert in the Antelope Valley and that means Joshua trees, wildflowers, and some sweet looking geology are within reach. Here are six classics:

Vasquez Rocks Natural Area in Agua Dulce (Photo by Rennett Stowe via Creative Commons on Flickr)

VASQUEZ ROCKS

It’s stood in as the home of Vulcans and the Flinstones in popular culture, and, in real life, Tataviam Indians and outlaw Tiburcio Vasquez, for which the site is named after. Today, the uplifted, folded angular slabs of sandstone are part of a county park just off the 14 freeway in Agua Dulce. It’s not a huge spot, but you can get in over three miles of hiking on its trails, or for something longer, take on a small segment of the 2,300-mile Pacific Crest Trail that passes through the park. It’s also a fun spot to explore, scramble on the rocks and picnic. Alcohol is not allowed, but there are two wineries in the neighborhood—Agua Dulce Winery and Reyes Winery—both which allow you to bring in food to picnic.

Vasquez Rocks Natural Area, 15101 Lancaster Road, Lancaster.

Stroll the pathways of this city preserve in Lancaster. (Photo by Zach Behrens)

PRIME DESERT WOODLAND PRESERVE

Take a relaxing meander through the nearly three miles of trails in this island of habitat rich in Joshua trees, juniper, and creosote. While not exactly a rugged and remote hike, this 100-acre city park—nestled among suburban development—is a true joy, especially with plenty of jackrabbits hopping about. Bring your binoculars, take in the informative wayside signs and you could easily be here for hours geeking out and becoming an amateur desert naturalist. And since all the trails are wide, flat and graded, it’s a great spot for those using strollers and wheelchairs.

Prime Desert Woodland Preserve, 43201 35th Street West, Lancaster.

Hikers walk among flowers on the Lighting Bolt Trail in April 2014 (Photo by Zach Behrens)

ANTELOPE VALLEY CALIFORNIA POPPY RESERVE

The internationally-regarded poppy fields here attract throngs of people to the High Desert. On a good wildflower year, when the western Antelope Valley is carpeted with orange, this place is slammed. Luckily, the reserve boasts several miles of trails (map, .pdf), which means there are opportunities to get away from the crowds if you’re willing to put your feet to work. There are two main outer loops: combine the Poppy Trail north and south loops for a little over two miles or hit all three of the park’s vista points by combining the Lighting Bolt, Antelope Butte, and Antelope Trail South Loop for a four-mile trek. You could also combine these two for about six miles total. It should be noted that off-trail travel in this park is strictly prohibited for obvious reasons.

If the bloom is peaking (keep an eye out on the Bloom Status section of this page for updates), other good flower spots are found along 110th Street between Avenues G and D (some call this the “Boulevard of Poppies”) and at the intersection of Munz Ranch and Lake Elizabeth roads for a scene that looks like this.

And while you’re up there, why not take a ride on the musical road?

Antelope Valley California Poppy Reserve, 15101 Lancaster Road (parking fee in effect all year), Lancaster.

A more wild experience in this state park. (Photo by Zach Behrens)

ARTHUR B. RIPLEY DESERT WOODLAND STATE PARK

Like Prime Desert Woodland Preserve, this small state park lacks the mileage and elevation challenges other trails offer. Yet Ripley lets you walk through a wild juniper and Joshua tree forest that’s mostly pristine (except those non-native grasses), allowing you to perhaps experience the landscape as Native Americans and explorers saw it before it was plowed to make way for farming. Arthur B. Ripley was a farmer himself, but preserved this 500-acre site, willing it to the state. It’s a quiet, off-the-radar park and you can easily have it to yourself (I have twice now). Visit for a nice sunset walk after enjoying the flowers at the aforementioned poppy reserve, a 10-minute drive away.

Arthur B. Ripley Desert Woodland State Park, Lancaster Road (park here between 195th Street W and 210 Street W by the State Parks sign and gate), Lancaster.

A view of Saddleback Peak from the Little Butte Trail. (Photo by Zach Behrens)

SADDLEBACK BUTTE

The most far flung hike in this list, but one of the coolest. Walk among a Joshua tree forest on a 4.5-mile hike to the top of Saddleback Butte and back (start on the Little Butte Trail and connect to the Saddleback Butte Peak Trail—here’s a map on page four of his .pdf). When the winter rains are just right, the place can burst with wildflowers, namely yellow coreopsis, as the above photo from 2014 shows. The 360-degree view from the top shows you just how expansive and open the desert can be, and when the San Gabriel Mountains to the south are blanked in snow, that view is much more breathtaking. If you like the setting enough, campsites are available on a first-come, first-serve basis.

And a bonus for film nerds: that extremely violent wedding scene in Quentin Tarantino’s Kill Bill series was filmed nearby at The Sanctuary Adventist Church. If it’s a weekend, also consider visiting the very funky Antelope Valley Indian Museum down the road.

Saddleback Butte State Park, East Avenue J/170th Street East (parking fee in effect year round), Lancaster.

A rock formation at Devils Punchbowl. (Photo by JefferyTurner via Flickr)

DEVIL’S PUNCHBOWL

This is an all-time classic Southern California hiking spot at the edge of the desert where it meets the San Gabriel Mountains. And it comes with a number of hiking options, the easiest of which is an amazing one-mile loop 300 feet down into the punchbowl itself, a product of seismic folding just like Vasquez Rocks (this area is an earthquake rift zone, after all). The rock formations you walk among and the meandering Punchbowl Stream here make up for the incredibly short length of the trail. Don’t rush through here; take time to scramble and explore the area. I especially loved following the stream off-trail.

For something longer, trek the seven-and-a-half miles roundtrip to Devil’s Chair, a vertigo inducing vista spot overlooking the eastern bowl. Devil’s Punchbowl is also the start/finish for longer day hikes or backpacking trips in the San Gabriels, including the one-way, 27-mile High Desert National Trail.

If you’re interested in learning more about the geology here, Ranger David Numer, who has stood guard over this park for over 40 years, gives talks most Sundays at 1 p.m. (call ahead to make sure). The tour ends with a little drive outside the park to where the San Andreas Fault crosses the road, located nearby on Pallet Creek Road. Take joy in jump skipping between the North American and Pacific tectonic plates!

Devil’s Punchbowl Natural Area, 28000 Devil’s Punchbowl Road, Pearblossom.

Article courtesy of the LAist