Make-A-Wish Greater Los Angeles will honor Nelson and Christopher Rising of Rising Realty Partners at its 2017 Wish Gala. The nonprofit, which grants life-changing wishes for children with critical illnesses, has selected the Risings for their long-time commitment to development and philanthropy in Los Angeles.
By Lauren Herstik | The New York Times
Los Angeles conjures a particular image in the popular imagination: sprawling and spacious, dotted with single-family homes and riddled with traffic. But Angelenos have signaled that they are ready for a change, most recently by voting down a measure that would have slowed new construction for two years.
The effort to slow construction, known as Measure S or the Neighborhood Integrity Initiative, was financed mainly by Michael Weinstein, the president of the Hollywood-based AIDS Health Foundation. Mr. Weinstein’s office is on the 21st floor of a Hollywood skyscraper with a view of the hills, next to the future site of two 28-story mixed-use residential towers.
Mr. Weinstein said that kind of development was out of character for the neighborhood. He and other supporters of Measure S have contended that new luxury developments can contribute to rising rents.
The Measure S campaign pitted slow-growth factions, who called the city’s planning process corrupt, against a coalition of public officials, developers, labor groups and others who conceded that while reform was necessary, so was growth.
Now that the pro-growth group has prevailed, the question is: How does the city move forward? Can it overhaul the planning process, allow innovation and still please the disparate stakeholders within its 503 square miles?
Measure S, which was defeated last month, was the third in a trio of transformative local ballot measures. In November, Angelenos approved a $1.2 billion bond to build affordable housing, along with a half-cent sales tax increase to pay for mass transit.
Taken together, the votes are “a very clear statement from the voters that they’re interested in a different Los Angeles,” said Christopher Hawthorne, who teaches urban and environmental policy at Occidental University and is the architecture critic for The Los Angeles Times.
The city’s mayor, Eric M. Garcetti, who was swept into a second five-and-a-half-year term last month by 80 percent of the voters, heard the statement. He is empowered by these votes, with billions of dollars at the city’s disposal to address homelessness and improve infrastructure. But the vocal minority who fought to curtail development with Measure S still remains and he cannot ignore them.
“That’s L.A.’s biggest and most exciting challenge: How do you harness the momentum, the investment and even the disruption in a way that still addresses social needs?” Mr. Garcetti said.
Mr. Hawthorne has put forth the notion of a “Third L.A.,” a redefined vision of the city. The “First L.A.” was marked by the arrival of water in the 1880s and the city’s first population and real estate booms; it was a city of great civic ambition, public architecture and great experimental multifamily housing.
But it is the “Second L.A.” that is most enduring: the post-World War Two modernist mecca, a patchwork of single-family homes crossed by freeways and defined by the car. It is the city of Julius Shulman’s iconic photos of glass Case Study Houses overlooking suburban sprawl, and David Hockney’s paintings of backyard swimming pools.
“The dream or ambition embodied by the Second L.A. begins to break down into the ’80s and ’90s,” Mr. Hawthorne said.
It is those neighborhoods that are now the focal point of the emerging Third L.A.
Koreatown is well served by mass transit: Three metro stops along Wilshire Boulevard link it to downtown Los Angeles.
“It’s denser and people are choosing to live there because they want to give up some square footage in exchange for more,” Mr. Hawthorne said. That’s more time, access to transit and a pedestrian culture.
Successful development in Koreatown has, in turn, increased interest nearby, said Marqueece Harris-Dawson, councilman for South Los Angeles.
“In a place like South L.A., which investors have systematically avoided, the red lines are just now falling away,” Mr. Harris-Dawson said. “Investors are enthusiastic, bullish, excited about mass transit coming through South L.A., about the opportunities along the main corridor, and excited about the untapped potential.”
Had it passed, the Measure S two-year building moratorium threatened to shut down new opportunity for South Los Angeles and neighborhoods like it. But in simply running the campaign, “S” proponents may have expanded that opportunity, by effectively starting the conversation about how to make Los Angeles’ planning process more transparent and effective.
The mayor signed an executive directive on March 9 establishing a planning task force, banning closed-door communications between planning commissioners and developers, and setting up programs at City Hall to guide development around transit and affordability.
Mr. Garcetti said he planned to eliminate regulations that stymie innovation, “whether it’s the size of units, or the connectivity of transportation modes.”
“We’re writing the rules as we go,” the mayor said, acknowledging “that can be very disruptive to people.” But, he added, “We need to get with it.”
All of this signals a move toward building that Third L.A.
“I see a series of many urban centers along the transportation corridors,” said Nelson Rising, chief executive of Rising Realty Partners, which has worked extensively in downtown Los Angeles.
“Anything near a transit stop will become viable and attractive,” Mr. Rising said. He pointed to specific hubs of density along the purple line, which currently links downtown to Koreatown and is set to extend all the way to Santa Monica with the passage of the transit measure. He also pointed to the Expo Line, which runs parallel to Interstate 10 and connected downtown to Santa Monica in May 2016.
The city planning department has laid the groundwork for these changes. Last year it enacted a mobility plan to diversify transportation modes by 2035, and created a new industrial live-work zone in response to demand from commercial and residential sectors for that kind of multiuse development.
Mr. Hawthorne speculated that the Third L.A. might be a city in which pockets of the First and Second L.A. peek through.
Mayor Garcetti is thinking hard about the look of the city.
“People entrust and elect leaders to take some risks and to be big and bold about the projects we do,” he said.
He said he hoped to turn an eye to the streetscape, to engage Angelenos at street level in a way the city never had to when the car was king.
It is why he has pursued large projects like a stretch of the Los Angeles River planned by the local “starchitect” Frank Gehry, the visually stunning Broad Museum and a forthcoming $1 billion museum by the filmmaker George Lucas. It is also why he is considering bringing in a chief design officer.
Mr. Garcetti said he envisions “a guru who can marshal the forces of the city and look at every bus stop, curb, utility box, every facade, every subway portal: These are moments to inspire and connect.” He added, “We should seize that moment.”
There is a Chinese proverb: “May you live in interesting times”. Whether it is the consistent drip of 140 character tweets from our new President or the ever changing rumors of how the Republican-led Congress will deal with a change in tax code, there is no doubt that we are now living in interesting times. However, as a veteran of over 40 years of investing and operating real estate, there are some things that I look to consistently which help me feel like I have a little more control over our investment decisions. In the spirit of trying to use facts as we know them, rather than conjecture and hyperbole, I outline sources that I look to for information and give you my take in this quarterly Economic Outlook.
The office of 75-year-old developer Nelson Rising has a decidedly un-septuagenarian feel. The space, inside the Beaux-Arts PacMutual building in Downtown Los Angeles, is teeming with millennial energy, as evidenced by the generation’s typical accoutrements, including a Ping-Pong table and open plan layout featuring cement floors.
The latest projects overseen by the chairman and CEO of Rising Realty Partners seem to echo the relationship the developer has to the office — they all involve taking something old and making it feel young again. PacMutual is a case in point. Rising bought it for $60 million in 2012, then stripped it of decades-old drywall, got rid of the dropped ceilings and replaced the carpeting. The redeveloped creative office building attracted “#Girlboss” Sophia Amoruso’s Nasty Gal as a major tenant. The hype allowed Rising to sell it for $200 million in 2015 to Ivanhoe Cambridge and Callahan Capital Properties, though he retains his office there.
Although Rising is among the elder statesmen of Downtown development, he only formed his eponymous real estate investment and operating company in 2011. He has reinvented himself over the years, wearing such varied hats as lawyer, campaign manager and Hollywood movie producer. He has also contributed to the DTLA skyline with structures such as the U.S. Bank Tower.
“His mark is all over Downtown,” said former U.S. Senator John Tunney, who has remained Rising’s friend since Rising ran the senator’s successful 1970 campaign. “With his character, and with his grace, he is able to raise money for all of these projects because people trust him.”
Today, Rising is back where it all began for him — redeveloping the very building where he started his career as a young lawyer in 1970 — the Title Insurance Building at 433 South Spring Street.
The Real Deal recently sat down with him in his hip headquarters to get his insights into DTLA, the challenges of redeveloping historic buildings, and why density is a good thing.
You spent your early childhood on the East Coast. What brought your family west?
I came to L.A. in 1951 because my father worked for the Statler Hotel in D.C. He was the building superintendent, and then he moved out here when the L.A. Statler Hotel, which became the Hilton Hotel, was built in 1951. That site is now the Wilshire Grand. You see it in the skyline. It is truly remarkable. So I am a big believer in Downtown.
How has Downtown changed in your lifetime?
When I was a young lawyer, I lived way out in the Valley. Now, being a young lawyer paid on that same basis, it might be better to live in an apartment Downtown. All of sudden, you gain two hours you would have spent commuting. You have more time to enjoy your life.
When you formed your company, you shifted from ground-up development to historical restorations. What influenced that?
We felt — and we were correct in feeling — that there were opportunities to take the wonderful historical buildings Downtown and bring them into this different time period. There was great demand for that.
What are some of the challenges of historic restorations, and how have you overcome them?
The biggest challenge is the seismic stability. Some historic buildings can easily be restored, and others cannot. So you have to pick the right building, which we’ve done. You also have to hire the best people, which we do.
You are redeveloping the building where you began your law career. What are your plans for it?
Offices. And we’ll probably have a restaurant on top. I have fond memories there. I went to UCLA Law School, and through my second and third year, I was a clerk at O’Melveny & Myers, at 433 South Spring Street. Then I graduated and passed the bar and had a permanent office there.
Who was influential in your life during that time period?
My mentor at O’Melveny was Warren Christopher, a wonderful man. He was chairman of the John Tunney campaign for the Senate. The campaign wasn’t going in the right direction, and he called me one day and said, “Would you like to be my campaign manager?”
How did your campaign experience come into play when you were producing the movie “The Candidate”?
When the movie was over, Robert Redford said, “I want you to come up with a way to encourage Frank Wells and Ted Ashley at Warner Brothers to spend money on promoting the movie.” So I said, “We are going to run Senator-elect Bill McKay [Redford’s character in the film] for president. We are going to start with a whistle-stop train tour from Jacksonville to West Palm to Miami, where there will be a convention.”
You took a fake candidate to the actual Democratic Convention?
Yes. The Fontainebleau was the convention hotel. We had some of the most beautiful young ladies you have seen, as far as the eye could see. The movie did very well.
You recently bought the Garland Center, a fully leased data center. How does that play into your strategy? Are you trying to diversify beyond historic projects?
It is not quite that scientific. You have to be opportunistic. It came on the market and we felt we had the skill set to manage it and improve it. If we find things that are complicated, and we have a solution, we can probably pay less than somebody who couldn’t figure it out.
When you were building the U.S. Bank Tower, was there any sense of competition with Donald Trump, who was then trying to build the nation’s tallest building in L.A.?
Oh, no. We were ahead of the game. And also, the site [Trump was vying for] is a long way from Downtown. So it would have been a tower built with nothing around it, at the same density as Downtown.
There’s a lot of contention in L.A. about how much density we should have, and where we should have it. What’s your take?
Density is a good thing, if it is properly planned. It leads to civilized living. When L.A. was being developed, we built farther and farther out. So guess what? It took you longer and longer to get to work. Density is the way around that. There are those who say that there is too much density. Why? Well, traffic. And you don’t have to have traffic if you have transit. I’d argue that the density is better than urban sprawl.
What is your son Chris’ role in the company?
Chris is the president. He has a very hands-on and active role in managing the company an brings an innovative perspective towards unlocking the value in properties such as PacMutual.
If you had no obligations for a weekend, what would you do?
I’d be on the golf course, at the L.A. Country Club, or I’d be in the desert at the Vintage Club in Indian Wells.
By Hannah Miet | Los Angeles Business Journal
Nelson Rising is a man on a new mission – on his old turf. Having spent much of his career leading the development of some of the biggest new skyscrapers in downtown Los Angeles, the 74-year-old real estate veteran is now watching that area transform, and much of it by his own hand. For he has shifted the focus of his company, Rising Realty Partners, to adapting old buildings there into high-end creative office projects. For example, his firm acquired One Bunker Hill last month in a partnership with Houston real estate investment firm Lionstone Investments. We sat down with Rising at his downtown office to talk about his legacy and future plans, his passion for politics and even what it’s like to play golf with Donald Trump.
By Kelsi Maree Borland | GlobeSt.com
LOS ANGELES—In the wake of the Fed’s decision to leave interest rates alone, the industry has erupted in a debate about whether the move was good for the economy or not. Nelson Rising, the chairman and CEO of Rising Realty Partners and the former chairman of the San Francisco Federal Reserve Bank, wasn’t surprised by the decision based on past legislation that requires the economy be in a position of maximum economic growth.
By Elliot Golan | Bisnow
If you ask the economist crowd what they think about the Fed's decision to keep interest rates where they are, you'll hear all about trouble in China, the eurozone and a number of other global concerns. But what does it mean for the local developer? Bisnow chatted with LA legend and Rising Realty Partners CEO Nelson Rising (here with Alan Greenspan) to find out.
Rising Realty Partners is seeing a total transformation in what tenants are looking for in the way of office space and so much of it relates to technology. In this day in age, you need lots of connectivity.