Santa Monica’s Week In Business

Michael Rosenthal

   It’s BAAACK!
   It looks like the Los Angeles economic engine is back at work. One of the more startling aspects of 9/11. was the emptiness of our skies as planes, helicopters, passenger jets et al were grounded. During the last couple of weeks, traffic along the coast highway was almost tolerable. But when I went outside for a breath of fresh air last night, I saw a seemingly endless number of jets queuing up at LAX and dozens of blinking lights in the sky signaling the return of air traffic. And this morning, I saw thousands of glistening lights on PCH as cars were once again stuck in gridlock caused by the interminable sewer replacement project on our coast highway.

   Court sides with landlords
   Santa Monica landlords won a small victory in court the other day. At issue was the rule governing security deposits paid by tenants and held by landlords in interest bearing accounts. Under the last ruling, approved in January of 1999, landlords were to pay 3% interest on those accounts. Problem was the accounts were bearing far less, in some cases as low as .5%, with the landlords forced to pick up the difference. The 3,200 residential landlords renting 28,000 units within the city claimed the total cost to them was approximately $770,000 out of pocket, each year. The Action Apartment Association brought suit and the 2nd District Court of Appeals eventually sided with them.
   Santa Monica based Macerich Co., owner of the Westside Pavilion and Santa Monica Place, has officially sold the Villa Marina Marketplace for a reported $99 million to San Francisco-based M&A Realty Partners.
   Most home and condo prices in Santa Monica have seen a steady increase in the past year. In November of 2001, 12 condos were sold in the 90405 zip code for an median price of $550,000, 12 homes in the same zip code were sold for an median of $500,000. The most expensive neighborhood in Santa Monica is zip code 90402, where nine homes sold for an median of $1,675,000 and two condos for a median price of $1,013,000. The lower interest rates make houses less expensive as monthly payments are lowered significantly. Plus Santa Monica remains one of the more desirable places in the world to live.
   The Santa Monica-based RAND Corporation was awarded a $70,000 contract from Los Angeles City Attorney Rocky Delgadillo to study the vulnerability of high-rises and private landmark buildings. The money is coming from business and union allies, including $10,000 from the Staples Center, which recently underwent $1.5 million in security renovations and upgrades. Had the money come from public coffers, the findings would have to be made public, undermining the whole intent of securing vulnerable properties. Downtown and Century City office buildings will be the major focus of the study.
   Santa Monica-based Intelligent Systems Technology, Inc. is expected to receive $700,000 from the U.S. Defense budget in year 2002 for its Knowport software program geared at making battlefield decisions more efficient. An additional $400,000 is in the works. Azad Madni, Chief Executive of Intelligent Systems, said “we expect to grow Knowport as a whole business area. We are in a position to win additional sizeable contracts in this arena. The firm, established in 1994, employs approximately 20.
   Santa Monica-based Anworth Mortgage Asset Corporation announced at the end of December the pricing of its follow-on public offering of 3.5 million shares of common stock at $8.30 per share. Net proceeds to the Company will be $31.3 million before offering expenses. The Company intends to use the net proceeds from the sale to acquire mortgage-related assets consistent with its investment policy. Anworth Mortgage Asset Corporation is a mortgage real estate investment trust (REIT) which invests in mortgage assets, including mortgage pass-through certificates, collateralized mortgage obligations, mortgage loans and other real estate securities. The Company generates income for distribution to shareholders based on the difference between the yield on its mortgage assets and the cost of its borrowings.
   Santa Monica-based Your Mobile Networks, a wireless multimedia provider, announced it has entered into a three-month promotional service with Canadian specialty channels MuchMusic and MusiquePlus, and Microcell Solutions Inc., to produce, package and deliver special feature ringtones through Fido, Microcell’s brand. Fido customers are now able to purchase and download MuchMusic and MusiquePlus-branded monthly ringtones for their mobile phones at www.fido.ca. The Canadian market uses major music brands to deliver personalized ringtones to consumers with the participation of a major wireless service provider. Bryan Biniak, COO, YourMobile Networks said, “Our relationship with Fido has helped YourMobile establish dominance in the Canadian wireless media market, where wireless entertainment has been met by consumers with as much enthusiasm as it has in markets worldwide. We are pleased to be working with three Canadian market leaders in a deal that exemplifies the way in which a wireless service provider, music networks, and a wireless media provider can pull their resources together to deliver rich media services to mobile phone users.”