Beachside seafood restaurant Gladstones in the Pacific Palisades might soon get washed away.

Its lease expires next year, and Los Angeles County, which manages the long-term lease on the state-owned property, is putting plans in motion to encourage investors to spend millions building a new facility. The restaurant’s owner, former Los Angeles Mayor Richard Riordan, said he is in favor of a redo for the 44-year-old site, but did not yet know whether he would undertake the project.

“Certainly if you want to have the nicest building ever you’re going to have to tear it down and put $10 million into a new building,” he said. “It’s something I’ll look at when I get to it.”

The county Board of Supervisors voted last week in favor of creating a lease that would double the current limit of 20 years. The plan now needs approval in the state Legislature – the restaurant sits on land belonging to Will Rogers State Beach.

With a longer lease term on the table, the supervisors want a competitive bidding process that would help assure a long and stable future for the famous site on Pacific Coast Highway overlooking the ocean.

“We’re asking that the property be repositioned,” said Carol Baker, a spokeswoman for the county’s Department of Beaches and Harbors, which manages the site. “Whether it remains with the same operator or not, we’re looking for significant upgrades.”

Beachside structures always require significant maintenance, she added.

Supervisor Sheila Kuehl presented the plan to the board on Tuesday, writing in a motion, “Because the existing facility is seriously deteriorated and outdated, the department desires the successful bidder to construct an entirely new facility.”

The county used to take in about $1.7 million annually in rent from Gladstones, but officials dropped the rate to about $900,000 this year in light of the restaurant’s “financial difficulties,” according to the document.

Riordan bought the 700-seat restaurant about 10 years ago. He noted it appeals to seafood-loving middle-class families who enjoy a view of the waves.

“If you like dolphins, you ought to come there,” he added.

Gearing Up

The 32-story South Park Center in downtown just snagged a new tenant. Engineering firm Simpson Gumpertz & Heger signed a long-term lease for 14,780 square feet and plans to relocate from its current downtown offices, a slightly smaller space at 1055 W. Seventh St., in January. Taking the full 16th floor was the prime attraction, said Ted Simpson, an Avison Young principal who with Scott Steuber represented Simpson Gumpertz.

“A user can stand at one end of the office and see all the way down to the other end, making the work environment more cohesive and collaborative,” Simpson said in a statement.  

Landlord LBA Realty was represented by CBRE brokers John Zanetos and Todd Doney.

USC, whose logo tops the tower, is also a tenant along with Transamerica Corp. and Lynberg & Watkins. The building, designed by modernist architect William Pereira in 1965, was spruced up in a recent $35 million renovation.

Reporting Out

Publicly held real estate companies in Los Angeles touted solid outcomes in their latest quarterly reports.

Ares Management, a Century City asset manager that handles real estate, private equity, and credit investments, reported net income of $38 million (46 cents a share) in the second quarter. That’s more than triple the $12 million it earned in the same quarter last year. Revenue also jumped, hitting $304 million compared with $213 million in the year-earlier period.

The quarter also saw the revenue of downtown’s Colony Capital Inc. rise to $272 million compared with $221 million in the same quarter last year. Net income stayed virtually flat at $103 million. Colony’s second-quarter earnings available for common stockholders – net income less preferred dividends – were 38 cents a share.

Century City-based infrastructure firm Aecom generated $4.4 billion in revenue in its third quarter, a slight drop compared with $4.5 billion in the same period the previous year. Earnings per share were 43 cents in the three-month period ended June 30, based on net income of $67.4 million. Aecom reported a loss of $17.2 million in the same quarter last year

Jacobs Engineering Group Inc. of Pasadena reported $2.7 billion in revenue for the third quarter of fiscal 2016, a dip compared with the $2.9 billion it generated in the same quarter last year. Its earnings for the three-month period ended July 1 amounted to $95 million (78 cents a diluted share) compared with $121 million in the year-earlier quarter. Jacobs plans to move some operations to Dallas by the end of 2019 before eventually moving its headquarters there, according to documents posted online by the Dallas City Council.

Staff reporter Daina Beth Solomon can be reached at [email protected] or (323) 549-5225, ext. 237.