1. Top Ranked Bank in California*
Equal Housing Lender | Member FDIC
0815
*Bank Director Magazine, 2014. Among Banks with $5 Billion to $50 Billion in
Assets. CVB Financial Corp. is the holding company for Citizens Business Bank.
Banking | Lending | Investing**
**
www.cbbank.com
By STEPHANIE HENKEL Staff Reporter
DTS Inc., an audio technology developer
in Calabasas that typically licenses its products
for commercial and home theater systems,
now wants to expand its share of the car radio
and mobile device markets.
Earlier this month, the company completed
its acquisition of iBiquity Digital Corp., the
sole developer and licenser of HD Radio tech-
nology. DTS paid $172 million using a com-
bination of debt and cash.
HD Radio, a trademarked term, is the only
technology approved by the Federal
Communications Commission to upgrade from
analog AM and FM broadcasting to digital. All
By STEPHANIE HENKEL Staff Reporter
Hospitals face a conundrum with homeless patients.
By law, a hospital must treat emergency situations,
regardless of a person’s ability to pay. But what happens
once the homeless person is out of immediate danger?
Putting the person back on the street, a practice
known as “patient dumping,” has prompted Los
Angeles CityAttorney Mike Feuer to file multiple law-
suits in the last two years against San Fernando Valley
hospitals, including Glendale Adventist Medical
Center and Pacifica Hospital of the Valley.
Enter Hope of the Valley Rescue Mission. The non-
profit is building a Recuperative Care Center in Mission
Hills, a homeless shelter that will specialize in recovery
care for the homeless after discharge from hospitals.
“It’s for people who don’t qualify to go into a stan-
dard shelter because of their condition,” said Ken
Craft, chief executive at Hope of the Valley. “Here, we
are staffed with medical personnel who can care for
them and nurse them back to health before we get them
another level of housing.”
HQBooked
By Educator
EDUCATION: Operator of charter
schools relocates in Lancaster.
NONPROFIT: Mission’s center hopes to
curb dumping of patients on streets.
By MARK R. MADLER Staff Reporter
One of the largest vacant buildings in Lancaster
will be the new headquarters for a charter school
operator that wants to expand through work-train-
ing programs for high schoolers.
Learn4Lifewillmoveintothetwo-storybuild-
ing at 177 Holston Drive early next year, relocating
from three separate offices on 10th StreetWest that
the nonprofit consortium now uses.
But the new location, a former mortgage
lending call center, will be more than just offices.
It will also function as a school with ample space
available for work-related educational programs,
Audio Firm
On the Move
TECHNOLOGY: DTS looks to car,
mobile markets with pickup.
By CHAMPAIGN WILLIAMS Staff Reporter
R
ETAIL developer Caruso Affiliated
plans to grow its presence in Glendale
by expanding across the street from its
Americana at Brand mall.
Earlier this year, the firm announced the pur-
chase of an 18,000-square-foot lot at the northeast
corner of Brand Boulevard and Colorado Street. The
acquisition, from homebuilder Frank De Pietro &
Sons, included the historic Masonic Temple and two
adjacent buildings at 232-38 Brand.
The plan is to revamp the multilevel temple into
a creative office building and to erect a one-story
retail center on the vacant land next door.
Construction has started on the temple project,
which will open in January as an office for L.A.-
based real estate brokerage CBRE Group Inc.
Evan Krenzien, vice president of development
at Caruso, which is headquartered in L.A.’s Fairfax
District, estimated that construction on the retail por-
tion of the development will take about six months.
Please see TECHNOLOGY page 44Please see REAL ESTATE page 43
Please see NONPROFIT page 44
Mall developer grows in Glendale with temple project
Please see EDUCATION page 45
Homeless to GetPlace to Recover
Foot Traffic: Caruso Affiliated will open a
new retail property across the street from
its established Americana at Brand mall.
BUYING IN
PHOTOBYTHOMASWASPER
NOHO RENEWAL: Hotel, apartment and
retail builders are scrambling for land
near the NoHo Arts District. The big prize:
15.6 acres around the Metro train and
bus stations that are still up for grabs.
BEGINNING ON PAGE 15
SPECIAL REPORT
REAL ESTATE QUARTERLY
Up Front
Roma Costume
has skimpy
Halloween garb in
the bag.
PAGE 3
Why homebuilder
Ryland’s employees
in Valley got
hammered.
PAGE 5
How North
Hollywood’s
turnaround could
be replicated
elsewhere in
the Valley.
PAGE 48
Comment
The List
The Valley’s
financial institutions
ranked. Can you
guess No. 1?
PAGE 8
News &
Analysis
Volume 20, Number 21 October 19 - November 1, 2015 • $4.00T H E C O M M U N I T Y O F B U S I N E S STM
LOS ANGELES • GLENDALE • SANTA CLARITA • BURBANK • CONEJO VALLEY • SIMI VALLEY • SAN FERNANDO • CALABASAS • AGOURA HILLS • ANTELOPE VALLEY
Printed and distributed by PressReader
C O P Y R I G H T A N D P R O T E C T E D B Y A P P L I C A B L E L AW
PressReader.com +1 604 278 4604• O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y •

2. “We hope to break ground by the end of
the year and to open by summer of 2016,” he
said. “This is a lot that has been undeveloped
for a long time. We want to enhance the
street-front offering and to continue the same
pattern of street-front retail that you see head-
ing north on Brand.”
The 9,750-square-foot retail building will
house five tenants across the street from
Americana at Brand, Caruso’s upscale shop-
ping and lifestyle center. The project follows a
familiar pattern of expansion for the developer.
“It is common to want to expand around
successful projects (and) Glendale is a very
powerful market,” said Nick Egelanian,
president of retail real estate consulting serv-
ice SiteWorks in Annapolis, Md. “All devel-
opers want successful proprieties, and Caruso
is known for building strip centers. Its early
centers in Westlake Village and Calabasas are
considered some of the best specialty retail in
the country.”
‘Interest begets interest’
Billionaire Rick Caruso has pioneered the
retail and residential experience in Southern
California through his company, one of the
largest privately held retail developers in the
country. Caruso Affiliated owns more than a
half-dozen retail centers in the greater San
Fernando Valley, including the Commons at
Calabasas, the Encino Marketplace and the
Promenade at Westlake.
Its Americana at Brand opened in 2008
across from General Growth Properties’
Glendale Galleria mall. Caruso leveraged the
success of Americana at Brand to launch into
residential development with Excelsior, an
adjacent condo project.
Rick Caruso has a history of enlarging his
footprint in Glendale. In 2011, he purchased
the Golden Key Hotel for $16 million and
another property for $4 million after the city
considered taking them by eminent domain.
The land was turned into a retail space for a
Nordstrom Inc. store, which vacated the
competing Galleria mall.
With Caruso Affiliated’s latest expansion,
the city approved and streamlined the applica-
tion for the one-story retail building in accor-
dance with its Glendale Downtown Specific
Plan, a set of standards for the revitalization
of the area, according to city Public
Information Officer Tom Lorenz.
Glendale has been working to revitalize its
downtown, to increase foot traffic and boost
business and residential density. Philip
Lanzafame, director of community develop-
ment for the city, said Caruso’s plans for the
Masonic Temple and the additional store-
fronts will further the city’s appeal.
“Interest begets interest and vibrancy
begets vibrancy,” Lanzafame said. “You really
have a whole half-block that is now being
developed, and what was fairly underutilized
is now once again productive. That develop-
ment is good on many different levels – from
pedestrian interest to major employers to new
producing property. Those are all positive.”
The 9,750-square-foot retail building will
have spaces that will vary in size depending
on the need of the tenant. Krenzien said ten-
ants will likely include a mix of local retailers
as well as well-known names. The group also
will likely include a barbershop and a coffee
shop, he added.
“We’re targeting a pool of unique street-
front retailers that you may not see every-
where,” he said. “I think we’ll see that it’ll
work really well with the Americana and
existing street-front retail.”
Bill Boyd, senior managing partner of
commercial real estate brokerage Charles
Dunn Co. Inc.’s Tri-Cities office, said that is
a wise approach.
“It sort of works itself out that the kind of
tenants that want to be in a mall aren’t the
kind of tenants that want to be on the street
anyway,” he said.
Boyd said typical asking rents for street
retail in the area are between $3 and $3.50 a
square foot on a net basis, but that these loca-
tions might be a little higher.
“Because of the costs involved, rents may
have to be in excess of $4,” he said, referring
to expenses associated with purchasing the
land and developing the site.
Still, SiteWork’s Egelanian said the develop-
er might find it challenging to get shoppers to
go from the Americana to the added storefronts.
“The challenge would be connecting the
project in some way and getting shoppers to go
from theAmericana project to this adjacent
project,” he said. “I’m sure they’re working hard
on creating a successful flow for customers.”
Historic value
While the retail building will be new con-
struction, the temple project involves a regis-
tered historic building. The Masonic
Temple was designed by architect
Arthur Lindley and erected in the
late 1920s. It housed a number of
Masonic organizations, but during
the past several decades has
remained mostly vacant, except for
occupancy by small theater company
A Noise Within that leased part of
the space in 1992 before relocating
to Pasadena in 2011.
The creative-office rehab is
expected to be completed in
January, with CBRE taking the
majority of the space. The com-
mercial real estate services firm
will relocate from its office in
Universal Studio and occupy four
floors, according to Liz Jaeger,
senior vice president of public
relations at Caruso.
The conversion to creative
office requires a commitment to
restore the building to its former
look, a condition of the purchase
of the property.
“Essentially, the whole façade is
being rehabilitated to what it once
looked like,” Caruso’s Krenzien
said. “It has fallen into kind of
a little bit of disrepair over the
years, so we’re restoring all of
the windows, replacing glass
where it is needed, repairing and repaint-
ing frames of the windows, and putting
back some of the grillwork that was lost.”
CBRE will take the fifth through
eighth floors of the temple; the first floor
will include space for a restaurant.
That said, there are concerns over
parking for building employees and
patrons who will frequent the additional
retail locations along Brand.
Caruso filed a parking exception with
the city in September because its pro-
posed retail project will not meet the min-
imum parking requirements. As required
by the downtown specific plan, three
parking spaces should accompany every
1,000 square feet of floor area. According
to those standards, the new building
should have 43 on-site parking spaces,
instead it will have nine. Caruso’s appli-
cation for exception was approved.
“There has got to be a plan that
addresses those parking issues, that retail has
great traffic and great visibility,” Boyd said.
“What I think is interesting about what Rick
is doing is that no one can point to anything
Rick hasn’t done well yet. You have a mar-
ket that knows what he does will be a quali-
ty effort – but we just can’t figure out how
it’s going to be parked.”
In other news, Caruso Affiliated also
plans to implement its corporate concierge
service at the former temple building. The
program offers around-the-clock personal
assistance to employees with services
including grocery shopping, car washes,
refueling as well as dry cleaning and tailor-
ing delivery and pickup. Caruso launched
this program at its corporate offices in Los
Angeles with more than 200 employees and
has received positive feedback.
“We are doing things like this to make the
employees’ work life more productive,” said
Julie Jauregui, senior general manager of the
Americana. “We’re really excited about this
marriage with CBRE. The full concierge staff
will be located at the base level and the
(employees) will be able to request these
services via an app. It’s something that really
is unprecedented in the office space.”
Real Estate: Mall Owner Mounts Temple Project
OCTOBER 19, 2015 SAN FERNANDO VALLEY BUSINESS JOURNAL 43
Continued from page 1
Upward Mobility: Caruso Affiliated’s Evan Krenzien and Julie Jauregui in front of the former Masonic Temple in Glendale.
PHOTOS BY THOMAS WASPER
Vertical: Artist’s conception of final project.
Rehab: Top, a web of scaffolding fills the interior
of the temple project’s penthouse floors. Above,
rendering of the creative office space with retro
architectural beams after the remodel.
Printed and distributed by PressReader
C O P Y R I G H T A N D P R O T E C T E D B Y A P P L I C A B L E L AW
PressReader.com +1 604 278 4604• O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y • O R I G I N A L C O P Y •