Santa Monica’s Week In Business

Michael Rosenthal

   Santa Monica-based Douglas Emmett Realty Advisors appears to be increasing its holdings in the San Fernando Valley. Warner Center, just off Topanga Canyon Blvd. in Woodland Hills, was put on the market last year for a reported $400 million. Some of the nation’s top property owners were said to be interested, including Equity Properties and Trammel Crow. In the end, two local real estate firms won the bidding, and the property will be divided accordingly. Emmett appears to have won the bid for the six high rises and Voit Properties, the original developers of the business park, seems set to reacquire that portion. Emmett already owns several properties on Ventura Blvd., including the recently renovated Sherman Oaks Galleria.
   Meanwhile, in Santa Monica, commercial vacancies continue to rise, with some reports showing the vacancy rate as high as 20% in the fourth quarter of 2001 up from 8% in the first quarter of 2000. If there is any good news in all this, it is that sub rent space can be had CHEAP, with some class A space going for as low as $1.95 a square foot.
   Joe Edmiston of the Santa Monica Mountains Conservancy tells me it will be a long time before the Soka (SGI) property adjacent to Malibu Creek State Park will become the headquarters for the Santa Monica Mountains National Recreation Area. Soka has repeatedly lost in court in its attempts to turn the pristine open space into a university campus. But Soka refuses to sell the property to the land trust which would turn it over in perpetuity for the common good and eventually integrate it into the National Recreational Area. Instead, Soka plans on continuing to operate its language school at the site. It has a beautiful new campus in South Orange County and opened a dramatic new auditorium in Santa Monica at Wilshire Blvd. and Sixth St. last year. It’s a fine organization with its heart in the right place, so the hope is that it will make some sort of deal to turn over this major parcel of parkland that is so sorely needed in our highly developed metropolis.
   Santa Monica-based Boingo Wireless, 2120 Colorado Ave., has opened for business. The firm, created by Earthlink founder Sky Dayton, will provide high-speed wireless Internet service in major hotels, airports, coffee shops and other venues. Boingo is aiming to provide its customers, mostly business travelers, with access to more than 750 public locations through the Boingo Wireless service.
   Douglas Burke, formerly of Sutro and Co., has joined Santa Monica based Digital Coast Partners where he will help tech and software companies find capital.
   Activision, 3100 Ocean Park Blvd., increased its market share in the U.S. console market to a record high of 10.1% in November 2001, as compared to 7.7% for the same period last year.
   Santa Monica-based Macerich Co. expects to realize a gain of $24 million on the sale of the 448,000 square foot shopping center Villa Marina Marketplace. The company is currently exploring ways to reconfigure the Santa Monica Place as a mixed use property with the huge parking structures placed underground, allowing prime retail frontage on Broadway and Colorado. Housing can be placed on the top floors with the possibility of new movie theatres being built on the ground floors. The best scenario would include an open-air pedestrian corridor allowing for unimpeded movement between the Promenade and the new Civic Center Plaza.
   Dick Clark, host of the American Music Awards, is suing Michael Green head of Santa Monica-based National Academy Recording Arts and Sciences (NARAS), and sponsor of the Grammys for $10 million. The suit revolves around Green’s refusal to allow Michael Jackson to perform at both award events.
   Santa Monica-based Converge Global, Inc. has signed a letter of intent that could result in TeleWrx, Inc., a Florida corporation, becoming a wholly owned subsidiary. Converge Global has completed preliminary due diligence and the parties have agreed to work toward closing the transaction within the next few weeks. Imran Husain, President of Converge Global said, “We are very fortunate to have come to an understanding with TeleWrx, Inc. and its President Michael Brown. We believe that TeleWrx, Inc., as part of a public company, with additional financing, has the potential for very dynamic growth.” TeleWrx is a communications company specializing in the sales and marketing of telecommunications products and services through the utilization of network marketing. The Company offers residential and small business long-distance, Internet dialup (56K), calling cards, toll-free service and wireless services including WAP (wireless application protocol) devices.
   Santa Monica-based Anworth Mortgage Asset Corporation announced that it has filed a registration statement with the Securities and Exchange Commission to sell 4,000,000 shares of the Company’s common stock to the public. The Company intends to use the net proceeds from the sale of its shares to purchase mortgage-related assets consistent with its investment policy. Friedman Billings Ramsey & Co., Inc., Advest, Inc. and Wedbush Morgan Securities, Inc. will act as underwriters of the offering, and will be granted a 30-day over-allotment option to purchase up to 600,000 additional shares of common stock from the Company.
   Venture West Funding, Inc. , a Southern California-based mortgage brokerage firm, announced that it has arranged an $8 million loan on Fireside Plaza, a Santa Monica retail center. The 21,767 square foot complex is an upscale “street retail” shopping center located at 1401-1427 Montana Avenue. Fireside Plaza was renovated in the first quarter of 2001. Major tenants include Peet’s Coffee and Wild Oats Market, a gourmet grocery supermarket. The building is fully leased. Brian Horner of Venture West arranged the financing with Santa Monica based First Federal Bank of California for owner PW/Christina-Fireside Plaza, LLC.
   Intervisual Books, Inc.of Santa Monica announced today that it has signed a Stock Purchase Agreement with Intervisual Partners, LLC (Investors). Under this agreement, the Company sold 396,825 shares of its voting convertible Series A preferred stock for $500,000 and the Investors put into escrow an additional $1.6 million for release to the Company at a second funding. At the second funding, the Company expects to sell 1,269,841 additional shares of its voting convertible Series A preferred stock. Each share of Series A preferred stock currently converts into two common shares with a current conversion price of $0.63 per share.