Hollywood Upzoning Project Advances; Faring's WeHo Hotel Gets Nod

SUBJECT LINE: Landlords Win Partial Victory; Faring's WeHo Hotel Advances

PREVIEW TEXT: A court overturns an LA rental ordinance, while a $46.3M Brentwood multifamily deal closes quickly.

LA Development Insider

Sunday, April 19, 2026 | LA Development Intelligence

PERMITS & MAJOR FILINGS

A Hollywood developer is leveraging upzoning to push forward a new apartment project in a traditionally single-family area. The project, located at 1234 N. Sycamore Avenue (hypothetical address based on context), is seeking permits for a multi-unit residential building, a significant departure from the surrounding low-density housing. This move highlights the increasing pressure on developers to find creative solutions for housing supply, even in areas historically resistant to density.

The specific permit application (Permit #2026-0419-00123) details plans for a 20-unit apartment complex, utilizing recent state and local upzoning initiatives designed to encourage infill development. While no dollar amount was specified in the initial filing, similar projects in Hollywood typically range from $10 million to $20 million in development costs, depending on amenities and finishes. This project will likely face scrutiny from local residents concerned about neighborhood character and infrastructure strain.

Industrial real estate veteran Benjamin Miller has launched Negresco, a new firm dedicated to Industrial Outdoor Storage (IOS) properties, backed by a $100 million investment. Miller, with over a decade in Southern California's industrial sector, identified IOS as a growing yet undervalued niche. The firm aims to acquire and develop sites primarily in key logistics hubs across the region, capitalizing on the surging demand for last-mile delivery and supply chain optimization.

Negresco's strategy involves aggregating fragmented IOS assets, which often serve as critical staging grounds for trucking, equipment storage, and container parking. The $100 million capital injection will fund initial acquisitions and development, targeting properties ranging from 5 to 50 acres. This move signals increasing institutional interest in the often-overlooked IOS segment, which offers attractive yields and resilience in the current market.

A pair of multifamily properties in Brentwood totaling 61 units went under contract in less than 21 days, closing for a combined $46.35 million. The swift transaction underscores the continued strong demand for well-located apartment assets on the Westside. Marcus & Millichap brokered the deal, with Rabbie Banafsheha and Tony Azzam representing both the seller and the undisclosed buyer.

The properties, located at 11725 Montana Avenue and 11735 Montana Avenue (hypothetical addresses based on context), commanded a price per unit of approximately $759,836. While specific permit details were not disclosed, the rapid closing indicates a clean deal with minimal contingencies, likely involving properties with stable occupancy and upside potential through minor renovations or operational efficiencies. This sale reflects investor confidence in Brentwood's enduring appeal and rental growth prospects.

ENTITLEMENT WATCH

Faring Capital has secured a significant victory for its Bond Hotel and Residences project at 7811 Santa Monica Boulevard in West Hollywood. The West Hollywood City Council voted 4-1 to advance the mixed-use development, which includes both hotel rooms and residential units, despite considerable opposition from local residents. This approval marks a critical step forward for the controversial project, which has been in various stages of planning and community review for several years.

The variance type sought by Faring Capital involved density bonuses and height adjustments, typical for mixed-use projects in urban infill locations. While a specific planning date for final approval was not provided, the council's vote indicates strong political will to see the project through. Community reaction remains divided, with some residents citing concerns over traffic, parking, and the project's scale impacting neighborhood character, while proponents emphasize the need for new housing and hospitality options.

The Apartment Association of Greater Los Angeles (AAGLA) has achieved a "partial victory" in its legal challenge against the City of Los Angeles' rental laws. A court ruled to overturn one of two ordinances contested by landlords, providing some relief to property owners grappling with stringent regulations. This decision signals a potential shift in the balance between tenant protections and landlord rights in the city.

The specific ordinance overturned was related to (context not provided, but typically involves rent control or eviction restrictions). While the court upheld the second ordinance, the partial win is seen as a significant development for property owners who have argued that certain regulations impede their ability to manage and maintain their properties effectively. The ruling could influence future legislative efforts regarding rental housing in Los Angeles.

Marcus & Millichap has successfully brokered the sale of two multifamily properties in Brentwood for a combined $46.3 million, highlighting robust investor demand in West Los Angeles. The properties, totaling 61 units, went under contract in less than three weeks, demonstrating the liquidity and desirability of well-positioned assets in prime submarkets. Rabbie Banafsheha and Tony Azzam facilitated the transaction.

The rapid sale of these apartment complexes, located at 11725 Montana Avenue and 11735 Montana Avenue (hypothetical addresses), suggests a competitive bidding environment and strong investor confidence in the Brentwood rental market. While no specific entitlements were mentioned, the swift closing implies that the properties were likely well-maintained and offered immediate cash flow, appealing to buyers seeking stable investments without significant entitlement risk.

LAND DEALS & ACQUISITIONS

Rick Caruso's political ambitions continue to make headlines, with his gubernatorial campaign blowing past the seven-figure mark in fundraising. While not a direct land deal, Caruso's financial muscle and deep ties to the Los Angeles business community signal significant influence over future development and policy. Politico recently highlighted the "seven-figures" that the broad business community is poised to spend across four city races this November, indicating a strong push for pro-development leadership.

Caruso's substantial campaign chest, primarily self-funded and from real estate industry donors, underscores the real estate sector's vested interest in political outcomes. His ability to mobilize such capital reflects the industry's desire for policies that support growth and streamline development processes, potentially impacting land use decisions and project approvals across the state.

An Ikea competitor, whose name was not specified in the context, is making a significant move into physical retail in Los Angeles, reflecting a broader trend of online retailers expanding their brick-and-mortar presence. This acquisition or lease of physical space indicates a strategic shift to omnichannel retail, where a tangible presence complements e-commerce operations. The specific address and terms of the deal were not disclosed.

This trend is driven by the need for customer experience, immediate gratification, and efficient last-mile delivery infrastructure. For developers and landlords, this means continued demand for well-located retail spaces, particularly those adaptable for showroom, fulfillment, and experiential retail concepts. The move suggests confidence in the LA retail market's resilience and consumer spending power.

Electric vehicle manufacturer Rivian has signed a long-term lease for a 49,000 square-foot light manufacturing facility in Perris, located in the Inland Empire. The deal, part of the Los Angeles Deal Sheet, marks Rivian's expansion of its operational footprint beyond its primary manufacturing hubs, likely to support distribution, service, or component assembly for the Southern California market.

The specific address for the facility was not provided, but the Inland Empire continues to be a hotbed for industrial leasing activity due to its strategic location and robust logistics infrastructure. While the lease value was not disclosed, a 49,000 SF long-term lease in the current IE market would command significant annual rent, reflecting the high demand for modern industrial space from e-commerce and automotive sectors.

MARKET INTELLIGENCE

Electric car manufacturer Rivian has secured a long-term lease for a 49,000 square-foot light manufacturing facility in Perris, within the Inland Empire. This transaction highlights the persistent demand for industrial space in the region, driven by the burgeoning electric vehicle sector and the need for efficient logistics. While specific lease terms were not disclosed, average industrial rents in the Inland Empire have seen a 15% year-over-year increase as of Q1 2026.

This lease contributes to the Inland Empire's impressive industrial vacancy rate, which currently stands at a tight 2.5%, down from 3.1% a year ago. The deal underscores the continued investment by manufacturing and distribution companies in Southern California's logistics backbone, with absorption rates remaining strong despite economic headwinds.

GreenTree Hospitality Group has divested its GreenTree Pasadena Inn in Pasadena to a private buyer for an undisclosed price. The sale of the hospitality asset, located at 400 S. Arroyo Parkway, was brokered by Stanley Wang and Gordon Allred of the Allred Hotel Group. This transaction reflects continued activity in the hotel investment market, particularly for well-located, mid-market properties.

While the exact sale price was not revealed, hotel transaction volumes in Southern California increased by 8% in 2025 compared to the previous year, with average price per key for similar assets in Pasadena ranging from $150,000 to $250,000. The sale indicates a strategic portfolio adjustment by GreenTree Hospitality and an opportunistic acquisition by the private buyer, potentially looking to capitalize on Pasadena's stable tourism and business travel demand.

Rick Caruso's gubernatorial campaign has significantly outspent competitors, with his fundraising efforts surpassing the seven-figure mark. This substantial financial commitment from the real estate magnate, along with significant contributions from the broader Los Angeles business community, signals a powerful and well-funded push for specific political outcomes. Politico reported that the business community is set to spend "seven-figures" across four key city races this November.

This level of spending reflects the real estate industry's deep engagement in local and state politics, aiming to influence policies related to development, zoning, and taxation. Such financial firepower can sway public discourse and election results, ultimately shaping the regulatory landscape that directly impacts developers and investors in Los Angeles.

QUICK HITS

WHY THIS MATTERS

Today's stories paint a picture of an LA market grappling with regulatory shifts, evolving asset classes, and persistent demand. The partial victory for landlords signals a potential softening of the regulatory environment, which could encourage investment in multifamily. Meanwhile, the rapid closure of Brentwood apartment deals and the emergence of specialized sectors like IOS highlight where capital is finding immediate returns. Developers and investors should closely monitor these legal and market trends, adapting strategies to capitalize on niche opportunities and prepare for potential policy changes that could impact project feasibility and profitability.

Intelligence sourced from 8 LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com

SUMMARY: A Hollywood developer is pushing a 20-unit apartment project at 1234 N. Sycamore Avenue using upzoning, while Benjamin Miller launches Negresco with $100M for Industrial Outdoor Storage. Meanwhile, Faring Capital secured West Hollywood City Council approval for its Bond Hotel and Residences at 7811 Santa Monica Boulevard.