John and Gwen Lindahl, owners of a small office building on Pico Boulevard in Santa Monica, are leading a charge that might ultimately change the way street parking is divvied up.

After the city placed two-hour restrictions on curbside parking adjacent to their property, except for residents with permits, the building’s tenants were caught in a bind: move their cars every two hours or face a $38 ticket.

“Because of that, they’re now having trouble renting space in the building,” said Kathy Dodson, president of the Santa Monica Chamber of Commerce. “It’s really unfair what happened to them.”

The Lindahls, who have retained influential local attorney Tom Larmore, appealed to councilmembers earlier this month and persuaded them to consider issuing preferential permits to employees of businesses without adequate parking.

“It does seem like something that is reasonable to address where we have districts with sufficient space,” said City Councilman Ken Genser. “It seems reasonable to help businesses where we can.”

It’s not just Santa Monica. In many areas of Beverly Hills, West Hollywood, Pasadena and Los Angeles, business owners complain that restricted street parking discourages visitors during the daytime hours, when merchants need them most.

“It would seem to make sense to use the streets during the day and have residents use them at night,” said Michael Sullivan, owner of the L.A. Car Guy, a family of dealerships that includes three in Santa Monica.

“The problem is when the two clash,” he said. “There’s going to be an overlap in the mornings and evenings when either side needs the parking.”

The problem is exacerbated at auto dealerships. Manufacturers are increasingly demanding more space on the lot, which in turn has crowded out customer and employees parking at many older dealerships on smaller, urban parcels.

Sullivan said he doesn’t believe the changes to preferential parking will be made any time soon, though. “I guess I wonder what’s the reality of any of this happening?” he asked.

City planning officials are now studying whether it’s feasible to issue permits to employees. The results of the assessment will be given to the City Council, which will decide whether or not to move forward.

Genser said some residents are already taking note. “There’s some concern that people who don’t live in the neighborhood might hang out by their cars and disturb residential neighborhoods,” he said.

Dodson, however, believes planners will find there are districts where it’s possible to share parking.

“For the most part, when they do their studies they realize residents don’t use the street parking during the days,” she said.

Lender Leasing

Two Orange County-based mortgage lenders have signed large lease deals in another sign of continuing strength in the subprime lending industry.

Start-up mortgage company Residential Mortgage Assistance Enterprise LLC has leased 80,000 square feet at an office building under construction in Brea. The company, which goes by the name ResMae Mortgage Corp., is set to move from its 40,000-square-foot headquarters at 3350 E. Birch St. in

Brea in about a year’s time.

The company plans to double its local workforce to 350 people in the next few years.

Newport Beach-based Olen Properties Corp. is developing the 130,000-square-foot office building at 6 Pointe Drive. The value of the deal was not disclosed, but sources said it would begin at about $2 per square foot per month and rise to nearly $2.40 in the next 10 years, with the average around $2.15 or so.

Sixty percent of the building is spoken for more than a year before Olen is set to finish construction.

In the other subprime lease, a unit of Orange-based Ameriquest Capital Corp. is set to take 90,000 square feet in Irvine.

Olympus Mortgage Co. is leasing several floors at 2600 Michelson Drive near John Wayne Airport in an expansion and relocation from Orange, sources said.

Orange County Business Journal

Seaside Hotel Upgrades

Two coastal resorts are spending $100 million on big renovations amid heightened competition for Orange County’s seaside hotels.

Host Marriott Corp. is spending $60 million to spruce up the Newport Beach Marriott in Fashion Island. The hotel is managed by Marriott International Inc.

Down the coast, the 20-year-old Ritz-Carlton Laguna Niguel is in the midst of a $40 million makeover. Chicago-based Strategic Hotel Capital LLC, which owns the hotel, is funding the upgrades.

The 3-year-old St. Regis Monarch Beach Resort & Spa in Dana Point has emerged as a formidable rival to the Ritz-Carlton for upscale travelers and meetings.

The Newport Beach Marriott faces competition from the Hyatt Newporter, which is nearing the end of a $13 million makeover and is renaming itself Hyatt Regency Newport Beach.

Orange County Business Journal

Valley Deals

United Grocers Cash & Carry, a wholesale division of Smart & Final Stores, has leased a 21,516-square-foot space in Van Nuys with plans to open its first Southern California store in January.

United Grocers Cash & Carry has 47 stores in Northern California, Oregon and Washington and plans to open more stores in Southern California. Stu Leibsohn, a broker with Delphi Business Properties, represented the landlord, W & A; Fleisher, in the 10-year deal valued at $2 million. Matt Ceragioli, a broker with NAI Capital Commercial, represented the tenant

Cushman & Wakefield Inc. has been tapped to manage the Summit at Valencia, a 177,603-square-foot campus style office development.

The property, at Interstate 5 and State Highway 26 was acquired recently by McMorgan & Co’s real estate fund, Mirefi LLC.

San Fernando Valley Business Journal

Staff reporter Andy Fixmer can be reached at (323) 549-5225, ext. 263, or at

[email protected]

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