UCLA Ziman Center • Winter 2024
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Dear Friends,
Real estate transaction volume has turned downward and the market has slowed, but distress also creates opportunity. UCLA was recently successful in acquiring the former Westside Pavilion, which will be transformed into a state-of-the-art research park. The university also purchased downtown L.A.’s historic art deco Trust Building, and the former Marymount University California Campus in Rancho Palos Verdes, which will become UCLA’s South Bay campus. UCLA is the largest UC by population and the smallest by land size. We’re excited to see how these additions will provide an expanded geographical footprint and much-needed space for UCLA’s research, teaching and service. We join the rest of the UCLA community in and thanking Chancellor Gene Block, who is stepping down as chancellor in July 2024, for his leadership in bringing these acquisitions to fruition.
Sincerely,
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| | Tim Kawahara
Executive Director
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| Monique Lawshe (’90) Elected President of the Los Angeles City Planning Commission
A valued member of the UCLA Ziman Center’s board, real estate executive and UCLA Anderson alumna Monique Lawshe (’90) combines real estate finance and development skills with a deep commitment to educational and social service partnerships. After serving as vice president, Lawshe was elected president of the Los Angeles City Planning Commission in February 2024. “It’s fascinating to imagine the L.A. of the future while staying acutely aware of how the changes will impact specific neighborhoods and the quality of life for all Angelenos,” she says.
Read Lawshe’s Story
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Tied but Triumphant
The invitation-only UNC Real Estate Development Challenge is hosted by the Leonard W. Wood Center for Real Estate Studies at Kenan-Flagler Business School, where 16 teams from the U.S.’s top MBA programs convene to compete. The 2024 case tasked teams with devising a plan for the last four parcels in the 66-acre master redevelopment plan of the old Walter Reed Army
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Medical Center in Washington, D.C. Class of 2025 MBA students Elizabeth Xu, Joselle Civil, Andrew Hemberger and Bill Bettingen proposed a 7-story apartment building, a life sciences building and parking structure on three of the parcels. As the centerpiece of the master redevelopment, the team proposed a large food hall, event halls and a museum. Their plan focused on creating a community-oriented space as well as creative offices and hotel. Congratulations to the Anderson team for tying the Georgetown team for third place!
Read more about the MBA student real estate challenges the Ziman Center supports.
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| Competitive Victory for a UCLA Student Team
In a tough-to-score competition, a UCLA team has once again won the annual Holland & Knight Real Estate Joint Venture Challenge. The JV challenge creates an environment in which six teams of management and law graduate students from UCLA and UC Berkeley must resolve real estate joint venture issues similar to those
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they’ll face in their careers. The 2024 challenge, hosted at UCLA, was particularly competitive because the largest potential point differential between two teams was 90 points, and less than 9 points separated the highest-scoring team from the lowest-scoring team. We congratulate MBA student Rob Schrader (’24) and his Class of 2026 UCLA Law teammates Trevor Atamian and Isaac Da Silva for taking first place!
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UCLA Undergrads Shine in BREA Case Competition
We congratulate the winning team of the ninth annual Bruin Real Estate Association’s Undergraduate Case Competition. They modeled and pitched a value-add industrial opportunity for three single-tenant warehouses in the Inland Empire. Presuming a January 2022 purchase (in which rent hikes were
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unanticipated), they were able to assume high market rent growth, which allowed them to boost net operating income upon the leases’ expirations. Exiting after a hold period of five years, they underwrote this deal to a hypothetical 12.3% levered internal rate of return. Hats off to the winning team of Madelyn Champion (B.A. ’27), Will Barton (B.A. ’25), Matt Feldman (B.A. ’25), Jesus Hernandez (B.A. ’26), Shaan Sridhar (B.A.’27), and Eleas Exarchoulakos (B.A. ’25).
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| The Realest Real Estate Agents
Congratulations to the first-place Ziman Center/Riordan Scholars team in the 2024 Buy vs. Rent real estate case competition! Six high school age teams competed in a challenge using a fictional family’s household profile that listed income, assets, maximum purchase and mortgage assumptions. Analyzing actual Los Angeles properties, the Realest Real Estate Agents presented the best recommendations for their family to buy or rent a home. The Ziman Center administers the annual real
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estate module customized for diverse high school seniors who participate in UCLA Anderson’s Riordan Scholars Program. The Ziman Center’s volunteer alumni instructors include: Alex Valente (’13), principal at Trammell Crow Company; Patrick Devitt (’15), EVP of investments for Regent Properties; Alexander Hawkins (’13), VP and senior investment manager at Corebridge Financial; and 2016 Riordan Scholar Fabrizio Robalino, associate at Thrive Living.
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| Plotting for Profits on the Home-Price Highway
UCLA Anderson Assistant Professor of Finance Gregor Schubert made the cover of Mortgage Banker magazine for his research using data migration to spot home buying trends. As Schubert has shown, large, job-creating superstar cities reliably feed residents to smaller, second-tier cities when the superstar cities experience wage shocks or surges in housing costs. These long-standing worker migration patterns prove a strong predictor of future housing demand.
Read the Article
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What Gets Built in Los Angeles?
LABC Institute-funded research co-authored by the Ziman Center’s Stuart Gabriel and CSUN’s Edward Kung made the front page of the Wall Street Journal in December. The article alludes to massive delays in building affordable housing in cities like Dallas and New York, but focuses on Los Angeles. Gabriel and Kung’s study examines why L.A. has long failed to
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keep pace with housing demands of a growing population, especially as costs increasingly exceed what Angelenos can afford. Impediments to approvals and construction of affordable housing are legion in California, where, as WSJ puts it, we get in our own way when trying to solve our most pressing problem.
Read the WSJ Article
Read Gabriel and Kung’s Full Report
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| “De-Risking” the Chinese Economy
After six years of disengagement, the U.S. and China are in discussions to find areas for future cooperation, signaling a cautious shift in economic relations the U.S. Treasury labels “de-risking.” The UCLA Anderson Forecast’s William Yu and Jerry Nickelsburg explore the geopolitical import of China’s years of overinvestment, especially in real estate. If China’s housing bubble is bursting, what kinds of economic imbalances will trouble the country for the next decade or more?
Read the December 2023 UCLA Economic Letter
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Finances in Flames
Ziman’s Stuart Gabriel co-authored research led by Xudong An that investigated how extreme wildfires burn through household wealth and health. With co-author Nitzan Tzur-Ilan, they found novel evidence of elevated spending, indebtedness and loan delinquencies in households far beyond the fire perimeter. The smoke and pollution affecting geographically dispersed populations add appreciably to household financial distress, including among renters.
Read the January 2024 UCLA Economic Letter
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From Global to Street-View Perspectives
The Ziman Center’s fall 2023 board meeting featured several captivating presentations. Mark Spiegel, senior policy advisor at the Federal Reserve Bank of San Francisco and editor of the Journal of International Money and Finance and of Economic Research, provided a high-level briefing on China’s property sector and the Chinese economy’s effects on the global economy. Stanley Iezman, chairman and CEO of American Realty Advisors, offered his perspective on domestic real estate markets and insights on capital markets, open-ended funds and capital formation. A more granular “seen-on-the street” point of view was provided by a panel of Ziman Center board experts who answered audience questions. The panelists included: Edward Cook, co-chief investment officer and co-founder of McCarthy Cook & Co.; Bob Hart, president and CEO of TruAmerica Multifamily; and Jennifer Sung, partner at Goodwin Procter LLP.
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The Ziman Center was also pleased to welcome new board members:
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Fred Esrailian
(Advisory)
Principal
Tenet Holdings
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| Paul Johnson
(Advisory)
Principal and COO
Tenet Holdings
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| Loren Bedolla
(Sustaining)
Vice President
City National Bank
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In Appreciation of Sustaining Philanthropy
The Rosalinde and Arthur Gilbert Foundation renewed their support of the Rosalinde and Arthur Gilbert Program in Real Estate, Finance and Urban Economics at the Ziman Center. The grant provides funding for faculty and researchers to conduct cutting-edge research and thought leadership in the field of real estate. This vital program is multidisciplinary and awards research grants to faculty across the campus in their respective fields of study.
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| Tom (’80) and Laurie (B.S. ’77, ’81) McCarthy renewed their commitment to the Ziman Center by signing a pledge to continue Tom’s leadership as an advisory board member. Thank you to Tom and Laurie for your ongoing support.
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| AREA Industry Night Successfully Connects Students to Jobs
Companies and students gathered for the Anderson Real Estate Association’s annual Industry Night in early March. The event presents students an opportunity to interact with company representatives, making connections for job opportunities. Ziman Center board member Tom McCarthy delivered the keynote in a conversation with executive director Tim Kawahara. Their discussion included insights on the current market and the office sector, reflections on Measure ULA (aka Los Angeles’ “Mansion Tax”), and advice for students who are beginning careers in a challenging market.
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Programming and Events
The additional gatherings the Ziman Center hosted or supported since the last issue:
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- Center for California Real Estate Panel, “Housing 2024: The California Dream in Focus,” January 10
- REAG Board Kickoff Dinner, January 10
- AREA Annual Golf Tournament, February 3
- UCLA Anderson John Wooden Global Leadership Awards, February 20
- NeighborWorks America Symposium, “Co-creating an Equitable Future at the Intersection of Health, Housing, and Community Development,” February 28
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Council for Advancement and Support of Education (CASE) District Annual Conference, March 3-5
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AHAC Board Winter 2024 Mixer, March 4
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REAG Arts District Tour and Happy Hour, March 7
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BREA D48 with Alex Valente (Trammell Crow Company), March 11
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Fielding Center for Healthcare Management’s Paul Torrens Health Forum, “Housing and Health Care: CalAIM’s Funding Opportunity for Health Care and Affordable Housing Providers,” April 3
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“Sometimes the road we travel has bumps, delays and bends. Office landlords in the heart of downtown need tenants, satellites don’t always reach orbit and graduates don’t always receive the opportunity they’ve earned. My first rule of real estate is ‘timing, timing and timing.’ The only certainty in life is change, and patience is a virtue. But be assured, the landlord will find a tenant, the satellite will get into orbit and a great job opportunity will present itself.”
Richard S. Ziman
Founder, UCLA Ziman Center for Real Estate, and
Co-Founder and Chairman, Rexford Industrial Realty
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April 8, 2024 @ 6:00 p.m. (by invitation only)
Bruin Real Estate Association D48 with Jed Lassere (Partner, PCCP)
UCLA Luskin Conference Center
April 9, 2024 @ 2:00 p.m.
UCLA Anderson Forecast, UCLA Ziman Center and UCI Paul Merage School of Business present:
“2024 Orange County Regional Economic Outlook”
University of California, Irvine
Register
April 11–12, 2023 (by invitation only)
UCLA Ziman Center, ESCP Business School, Tel Aviv University’s Alrov Institute for Real Estate Research, and the University of Madison-Wisconsin School of Business present:
“2024 Conference on Low-Income Housing Supply and Housing Affordability”
UCLA Anderson School of Management
April 15, 2024 @ 12:00 p.m. (by invitation only)
UCLA Ziman Affordable Housing Advisory Council Spring Board Meeting
UCLA Anderson School of Management
April 15, 2024 @ 6:00 p.m.
UCLA Real Estate Law Association’s Annual Investiture, Honoring Stevens A. Casey, J.D., Partner, Holland & Knight
UCLA Luskin Conference Center
April 16, 2024 @ 11:30 a.m.
UCLA Bruin Professionals and UCLA Real Estate Alumni Group present:
“Market Update with Victor Coleman”
Hudson Pacific Properties
April 18, 2024 @ 5:00 p.m.
UCLA Real Estate Alumni Group, UC Berkeley Real Estate Alumni Association and USC Alumni Association present:
“Survive to Twenty-Five (2025)” Panel Session
UCLA Anderson School of Management
April 29, 2024 @ 11:30 a.m. (webinar)
cityLAB-UCLA and UCLA Ziman Center’s Housing as Health Care Initiative and Levine Program in Housing and Social Responsibility present a UCLA Housing, Neighborhood and Health Series webinar:
“Place2Be: Non-Traditional Services for Wellbeing Among Unhoused Angelenos”
Register
April 30, 2024 @ 11:00 a.m. (by invitation only)
UCLA Ziman Center Spring Board Meeting
UCLA Anderson School of Management
May 6, 2024 @ 12:00 p.m.
UCLA Anderson Center for Impact and UCLA Ziman Center present a Climate Change Brown Bag Research Seminar:
“The Effects of Extreme Wildfire and Smoke Events on Household Financial Outcomes”
UCLA Anderson School of Management, Entrepreneurs Hall C.303
May 6, 2024 @ 6:00 p.m. (by invitation only)
Bruin Real Estate Association D48 with Brian Good (CEO, iBorrow)
Plateia Restaurant, UCLA Luskin Conference Center
May 8, 2024 @ 6:30 p.m. (by invitation only)
Bruin Real Estate Association “History of LA” presentation
UCLA Anderson School of Management
May 9, 2024 @ 12:00 p.m.
UCLA Luskin School, UCLA Ralphe J. Bunche Center for African American Studies, UCLA Lewis Center for Regional Policy Studies, and UCLA Ziman Center present:
Student Professional Development Lunch: “Advancing Diversity and Inclusion in Housing Development”
UCLA Anderson School of Management
May 9, 2024 @ 5:30 p.m.
UCLA Luskin School, UCLA Ralphe J. Bunche Center for African American Studies, UCLA Lewis Center for Regional Policy Studies, and UCLA Ziman Center present:
UCLA Luskin Lecture Series: Housing Development in Black Communities - “Housing for Black People by Black People”
National Center for the Preservation of Democracy, Japanese American National Museum
Register
May 10, 2024 @ 8:00 a.m.
22nd Annual Mayoral Housing, Transportation and Jobs Summit:
“Solutions for a More Livable Future”
UCLA Luskin Conference Center
Register
May 13, 2024 @ 6:00 p.m.
Bruin Real Estate Association’s Annual Industry Night
UCLA Anderson School of Management
May 16, 2024 @ time TBA
California Housing Consortium (CHC) 2024 Policy Forum
UCLA Ziman Levine Affordable Housing Development Program Panel: “Supporting the Next Generation of Leaders in Affordable Housing”
UCLA Luskin Conference Center
June 6, 2024 @ time TBA
UCLA Anderson Forecast and UCLA Ziman Center present:
“2024 Real Estate Economic Outlook”
UCLA
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