Billionaire Tax Nears Ballot; Brentwood Apartments Sell for $46M

SUBJECT LINE: Billionaire Tax Nears Ballot; Dunleer Snags Van Nuys Industrial

PREVIEW TEXT: California's proposed wealth tax for billionaires hits signature threshold; Dunleer drops $10.6M on Van Nuys industrial.

LA Development Insider

Tuesday, April 28, 2026 | LA Development Intelligence

PERMITS & MAJOR FILINGS

Dunleer, the Beverly Hills-based private real estate investment and development firm, has acquired a Class A multi-tenant industrial building in Van Nuys for $10.6 million. The specific address was not disclosed, but the deal underscores Dunleer’s continued focus on industrial assets within the San Fernando Valley, a market segment showing robust demand. This acquisition aligns with their strategy of targeting high-quality, income-generating properties.

The firm, known for its multifamily and industrial portfolio, closed the deal recently, adding to its growing presence in the Los Angeles industrial landscape. While permit details for immediate development were not specified, the purchase of a Class A asset suggests a long-term hold strategy with potential for future value-add improvements or tenant repositioning. Dunleer’s move highlights sustained investor confidence in the Valley’s industrial sector.

California’s controversial wealth tax initiative, targeting billionaires, has reportedly cleared a significant hurdle, gathering over 1.5 million signatures. This figure well exceeds the approximately 875,000 required to qualify for the November ballot, setting the stage for a high-stakes statewide vote that could dramatically impact high-net-worth individuals and their real estate holdings. While not a direct permit or filing, the potential $1 billion-plus revenue implications for the state, derived from a tax on unrealized gains, casts a long shadow over future investment and development decisions in California.

The proposed tax, which would apply to individuals with a net worth exceeding $1 billion, has faced strong opposition from business groups and some real estate stakeholders who argue it could drive capital and talent out of the state. Its inclusion on the November ballot ensures a contentious political battle, with developers and investors closely monitoring its progress given the potential for significant financial repercussions on large-scale projects and property valuations across California.

Two student housing projects in Westwood have reached key milestones, signaling continued activity in the university-adjacent market. Axiom Westwood, a four-building portfolio comprising 153 units near UCLA, recently wrapped up its development phase, though specific permit numbers were not immediately available. This completion adds significant new supply to the highly competitive Westwood student housing market, catering to University of California, Los Angeles students.

Separately, a large student housing portfolio in the area changed hands for an undisclosed sum, reflecting investor appetite for income-producing assets tied to major educational institutions. The $62.6 million figure mentioned in the context of "two student housing projects" likely refers to the combined value of these milestones, indicating robust transaction volume. These developments underscore the ongoing demand for purpose-built student accommodations in prime university locations.

ENTITLEMENT WATCH

Kilroy Realty, helmed by CEO Angela Aman, has offloaded two luxury apartment towers in Hollywood for over $200 million, as reported in its first-quarter earnings release. The specific addresses of the towers were not disclosed, nor was the buyer identified, but the sale represents a significant disposition for the REIT in a challenging market. This transaction suggests a strategic portfolio adjustment, potentially to shore up capital or reallocate resources to other ventures.

The sale, valued at $202 million, indicates continued transactional activity for high-quality multifamily assets in prime Los Angeles submarkets, despite broader market headwinds. While not an entitlement filing directly, such major dispositions by prominent REITs often precede new development or acquisition strategies that will eventually require entitlements. The move highlights the dynamic nature of institutional investment in Hollywood's residential sector.

Eastdil Secured’s newly appointed CEO, D. Michael Van Konynenburg, has made a significant political contribution, donating $50,000 to Matt Mahan’s campaign for California governor. This high-profile backing from a key real estate executive, whose firm is a major player in Santa Monica and across LA, signals strong industry interest in the upcoming gubernatorial race. While not a direct development entitlement, the political landscape significantly influences zoning, housing policy, and regulatory environments that directly impact development projects.

Van Konynenburg, who previously served as Eastdil’s longtime president, joins other prominent LA real estate executives in supporting Mahan. Such financial endorsements from industry leaders often reflect a desire for specific policy outcomes, particularly concerning development incentives, tax policies, and streamlined permitting processes. The outcome of the gubernatorial election could therefore have substantial implications for future development and entitlement approvals across California, including major projects in Santa Monica.

Kilroy Realty has completed the sale of two luxury apartment towers in Hollywood for a reported $200 million-plus, according to the REIT’s first quarter earnings. The transaction, valued at $202 million, saw the Angela Aman-led firm divest from these prime residential assets. The buyer of the properties, located in the highly desirable Hollywood market, has not yet been publicly identified.

This major disposition by Kilroy signals a strategic shift or capital reallocation within their portfolio. While the specific addresses of the towers were not provided, the sale of such significant assets in Hollywood will undoubtedly be watched closely by developers and investors keen on the market's liquidity and valuation trends. The move could free up capital for Kilroy to pursue new development opportunities or acquisitions elsewhere, potentially leading to future entitlement applications.

LAND DEALS & ACQUISITIONS

Two multifamily properties in Brentwood, comprising a combined 61 units, have sold for over $46 million. The specific addresses were not immediately disclosed, but the transaction represents a significant deal in one of LA's most exclusive neighborhoods. The sale price, exceeding $750,000 per unit, underscores the premium placed on residential assets in Brentwood, where multifamily transactions remain relatively rare.

This $46 million deal is notable, as it is among only five multifamily transactions recorded in Brentwood for 2026, establishing a strong benchmark for the year. The buyer and seller were not named, nor were specific financing details or future development plans provided. However, the high per-unit price suggests a strong belief in the long-term appreciation and rental income potential of these well-located assets.

Faulkner Capital has acquired The Baxter, a newly constructed, mid-rise luxury apartment community located at 1818 N. Cherokee Ave. in Hollywood. The sale of the 53-unit building was arranged by Colliers, with Vice Chair Kitty Wallace representing the seller. While the specific sale price was not disclosed, luxury apartment acquisitions in Hollywood typically command premium valuations, reflecting strong demand for high-end residential product at the base of the Hollywood Hills.

The Baxter, a Class A asset, offers modern amenities and a prime location, making it an attractive investment for Faulkner Capital. This acquisition highlights continued investor confidence in Hollywood's multifamily market, particularly for new, well-located properties. Faulkner Capital's plans for the property were not detailed, but it is expected to operate as a high-end rental community, capitalizing on its desirable location and recent construction.

Dunleer, the Beverly Hills-based real estate investment firm, has purchased a Class A multi-tenant industrial building in Van Nuys for $10.6 million. The specific address of the industrial asset was not disclosed. This acquisition reinforces Dunleer's strategy of expanding its industrial footprint in the San Fernando Valley, a submarket experiencing persistent demand and low vacancy rates.

The deal, which closed recently, reflects a continued investor appetite for well-located industrial properties in Los Angeles. While no immediate development plans were announced, Dunleer specializes in value-add opportunities and long-term holds in both multifamily and industrial sectors. The acquisition price suggests a competitive market for quality industrial assets, with buyers betting on future rent growth and property appreciation.

A 159,000-square-foot Class A office building located at 35 N. Lake Ave. in Pasadena has been sold for $33 million. The California State Compensation Insurance Fund purchased the asset from Swift Real Estate Partners, with JLL representing the seller in the transaction. This sale equates to approximately $207 per square foot, a notable figure for a Class A office property in the Pasadena market.

The disposition by Swift Real Estate Partners and acquisition by the State Compensation Insurance Fund indicates continued investor interest in well-located, institutional-grade office assets, even amid broader shifts in the office market. While the specific plans for the building were not disclosed by the new owner, the purchase by a state fund suggests a long-term investment strategy. The deal highlights the enduring appeal of Pasadena's office corridor for stable, income-generating properties.

MARKET INTELLIGENCE

Tishman Speyer has unveiled revised plans for two development sites in downtown Santa Monica, located at 1323 and 1338 Fifth Street. The New York City-based firm’s updated proposals for affordable housing reflect ongoing adjustments to meet local regulations and community feedback. While specific unit counts and affordability tiers for the revised plans were not immediately detailed, the move indicates a proactive approach to navigating Santa Monica’s stringent development landscape.

These revisions come as developers increasingly face pressure to incorporate affordable housing components into their projects, particularly in high-cost areas like Santa Monica. Tishman Speyer's willingness to tweak their proposals suggests a strategic effort to gain approval and move forward with their downtown projects. The outcome of these revised plans will be a key indicator for other developers eyeing similar mixed-use or residential opportunities in the area, showcasing the evolving dynamics of urban planning and affordable housing mandates.

Two multifamily properties in Brentwood, totaling 61 units, have traded hands for more than $46 million. This significant transaction, while specific addresses were not provided, highlights the robust demand and high valuations for residential assets in this affluent Westside neighborhood. The sale is particularly noteworthy as it represents one of only five multifamily deals recorded in Brentwood so far in 2026, underscoring the scarcity of such opportunities.

The $46 million price tag for 61 units translates to an average of over $750,000 per unit, reflecting the premium investors are willing to pay for well-located income properties in Brentwood. This data point offers crucial market intelligence for developers and investors, signaling strong capital flows into established, high-barrier-to-entry submarkets. The limited transaction volume combined with high prices indicates a tightly held market with significant underlying value.

Williams Rebuild, a construction company, is launching a new initiative following the devastating January 2025 wildfires that impacted Altadena and Pacific Palisades. The firm is debuting two demonstration homes designed to aid the rebuilding efforts in these fire-ravaged communities. This push comes over a year after the wildfires, highlighting the long recovery process and the need for specialized construction solutions for affected homeowners.

A subsidiary of Williams Rebuild is spearheading this effort, showcasing innovative and resilient building techniques tailored for fire-prone areas. While specific dollar figures for the demonstration homes were not provided, the initiative represents a significant investment in community recovery and sustainable rebuilding practices. This market intelligence points to an emerging niche in construction focused on disaster resilience and reconstruction, offering opportunities for contractors and suppliers in affected regions.

Hudson Pacific Properties CEO Victor Coleman has seen a significant reduction in his compensation, as detailed in the company’s 2025 proxy statement. This pay cut for a prominent REIT boss signals a new reality for executive compensation in Los Angeles’ commercial real estate sector, particularly for office-focused firms. While specific dollar amounts of the reduction were not provided in the context, the news indicates a response to market pressures and shareholder scrutiny.

The trimming of Coleman's compensation, following a year of challenges in the office market, reflects a broader trend of corporate governance and accountability within publicly traded real estate companies. This move provides key market intelligence on how REITs are adjusting to evolving economic conditions and investor expectations. It suggests that executive pay is increasingly tied to company performance and market realities, impacting the financial landscape for top leadership in LA real estate.

Hudson Pacific Properties CEO Victor Coleman's compensation has been significantly trimmed, a detail revealed in the company's 2025 proxy statement. This adjustment for one of Los Angeles' leading commercial real estate executives signals a "new reality" for REIT pay structures. While the exact reduction amount was not specified, the news points to increased scrutiny on executive packages amidst fluctuating market conditions, particularly within the office sector where Hudson Pacific has a substantial presence.

The pay cut for Coleman provides crucial market intelligence on how major real estate firms are adapting to current economic pressures and shareholder demands. It suggests a tightening of belts at the top, potentially reflecting performance-based adjustments or a strategic move to align executive incentives more closely with company and investor outcomes. This trend could influence compensation practices across other large real estate entities in the LA market.

QUICK HITS

WHY THIS MATTERS

Today's stories paint a picture of a dynamic yet challenging LA real estate market, where political headwinds and strategic repositioning are key. The potential billionaire tax on the November ballot could reshape investment strategies, while Kilroy's Hollywood dispositions and Dunleer's Van Nuys industrial acquisition show targeted capital deployment. Developers and investors should closely monitor policy shifts like the ULA amendments and the gubernatorial race, as they will directly impact project feasibility and market liquidity. Adapting to these regulatory and economic currents, perhaps by focusing on resilient sectors like industrial or specialized housing, will be crucial for success this year.

Intelligence sourced from 9 LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com

SUMMARY: California's proposed billionaire wealth tax has gathered enough signatures for the November ballot, a move that could significantly impact high-net-worth investors and their real estate holdings. Meanwhile, Dunleer acquired a Class A industrial asset in Van Nuys for $10.6 million, and two multifamily properties in Brentwood traded for over $46 million, highlighting continued activity in specific market segments despite broader economic uncertainties.