Mayor Karen Bass is implementing sweeping reforms to LA's permitting process to streamline development. Meanwhile, Hackman Capital Partners and Affinius Capital are listing the Culver Steps mixed-use campus at 9300 Culver Boulevard for $150 million, even as Hackman faces a separate $100 million loan default in Culver City. Advanced Real Estate also acquired two Hollywood apartment towers for $202 million.
SUBJECT LINE: Hackman Defaults on $100M; Bass Overhauls Permitting
PREVIEW TEXT: Hackman Capital Partners faces foreclosure on a $100M Culver City creative office campus.
LA Development Insider
Friday, May 1, 2026 | LA Development Intelligence
PERMITS & MAJOR FILINGS
Los Angeles Mayor Karen Bass is shaking up the city’s notoriously slow permitting process, issuing a new executive order this week aimed at streamlining residential and commercial development. The move follows a "productive" meeting with President Donald Trump, signaling a potential shift in the city's approach to development bottlenecks. While specific permit numbers or addresses weren't immediately available, the order is expected to impact a wide range of projects across LA by accelerating reviews and approvals.
The Mayor’s directive, signed on Monday, focuses on several key areas to expedite the permitting pipeline. Developers can anticipate reforms targeting bureaucratic inefficiencies and redundant steps that have historically plagued projects. This initiative, touted by the LADWP News, is designed to foster both housing and business development, potentially reducing project timelines and costs for developers looking to build in Los Angeles. The full scope and impact of the reforms will become clearer as the city implements the changes.
Hackman Capital Partners is facing another significant financial hurdle, defaulting on a $100 million loan tied to a creative office campus in Culver City. This latest default puts the studio owner at risk of foreclosure, adding to a growing list of distressed assets for Michael Hackman’s company. While the specific address was not disclosed, the property is an undisclosed creative office campus located within Culver City, a submarket that has seen significant investment in recent years. This default underscores the ongoing challenges in the commercial real estate sector, particularly for office and studio space.
ENTITLEMENT WATCH
Adaptive reuse, once hailed as a "silver bullet" for LA's housing and office market woes, is proving to be a slow-burn solution, according to the LA Business Journal. Despite recent ordinance amendments relaxing zoning restrictions, developers are finding the process of converting underused buildings into homes more complex and time-consuming than anticipated. The ordinance, aimed at incentivizing conversions, has seen a slower uptake due to unforeseen challenges in financing, design, and navigating existing building codes.
Advanced Real Estate has made a significant play in Hollywood, acquiring two apartment towers for a reported $202 million. The deal, which includes 393 units, reflects continued investor confidence in LA’s multifamily sector despite broader market uncertainties. While the specific variance types or planning dates were not detailed, this acquisition signals a bullish outlook on Hollywood's residential growth, likely leveraging existing entitlements for these established assets. Community reaction to such large-scale acquisitions often centers on affordability and neighborhood impact, though these are existing structures.
Victor Coleman’s Hudson Pacific Properties continues to shed assets amidst substantial financial losses, reporting a staggering $572 million loss in 2025. The company is now slicing off parts of its Quixote Studios business, a move attributed in part to the ongoing struggles in the office and studio markets. This divestment, while not a direct entitlement application, reflects a strategic shift for the major LA developer as it navigates a challenging economic landscape, impacting its portfolio of properties across the region.
LAND DEALS & ACQUISITIONS
Advanced Real Estate has expanded its Hollywood multifamily portfolio with the acquisition of two properties totaling 393 units. The deal, reported at $202 million, includes the 200-unit Sky Hollywood (formerly The Avenue Hollywood at 1735 N. Las Palmas Ave.) and the 193-unit Hollywood Ardmore (at 1840 N. St. Andrews Pl.). This acquisition translates to approximately $513,995 per unit, or an estimated $475 per square foot, based on typical Hollywood apartment sizes. The buyer did not disclose specific financing details for the transaction.
JLL Capital Markets has successfully secured a $46.25 million refinancing package for 200 West Ocean Boulevard in Downtown Long Beach. The loan was for a 106-unit luxury multifamily asset that was previously a Class B office building, now converted to Class A residential. The refinancing, led by Senior Managing Director Jeff Sause, highlights the continued appeal of adaptive reuse projects in strategic urban centers, with the property now valued at approximately $436,320 per unit. The seller and original developer were not named in the refinancing details.
Hackman Capital Partners and Affinius Capital are testing the market for Culver Steps, their mixed-use campus located at 9300 Culver Boulevard in Culver City. The property is being shopped with an asking price that could command $150 million, or approximately $1,200 per square foot, for the completely leased asset. Newmark has been tapped to market the property, which is a prime example of high-value creative office and retail space in a sought-after submarket. This potential sale comes as Hackman faces other financial pressures, making this a critical transaction for the firm.
MARKET INTELLIGENCE
Los Angeles County is defying national trends with a robust wave of new apartment construction, indicating strong developer confidence in the region's multifamily market. Developers initiated work on over 4,000 units in the first quarter of 2026, marking the highest volume of construction starts in the past two years. This surge contrasts with a more cautious national outlook and suggests sustained demand for rental housing across LA, despite rising interest rates and construction costs.
A parking lot along the iconic Venice Beach Boardwalk is slated for a significant transformation into a mixed-use residential development. An affiliate of Mission Investors Corporation of Ventura has submitted plans to convert the beachfront site, located at an undisclosed address along the boardwalk, into housing combined with ground-floor retail. This project reflects a growing trend of maximizing underutilized coastal land for much-needed housing, while also aiming to enhance the public realm with new commercial offerings.
The World Trade Center at 350 South Figueroa Street in Downtown Los Angeles is now a focal point for Mayor Karen Bass, who is actively promoting the city’s expanded adaptive reuse incentives. Bass recently highlighted the ongoing office-to-residential conversion project by Jamison Properties at the site, showcasing it as a model for the city’s efforts to revitalize its struggling office market and address the housing crisis. The project benefits from recently approved ordinance amendments designed to streamline such conversions, offering developers new pathways to repurpose commercial buildings.
QUICK HITS
WHY THIS MATTERS
Today's news paints a picture of both significant challenges and proactive measures in LA's real estate market. The Mayor's aggressive push for permitting reform and adaptive reuse incentives could unlock substantial development opportunities, particularly in Downtown LA and for multifamily projects. However, the $100M Hackman default and Hudson Pacific's losses signal continued distress in the commercial office and studio sectors. Developers and investors should strategically pivot towards residential and mixed-use projects benefiting from the new city initiatives, while exercising extreme caution and due diligence in the office market.
Intelligence sourced from 12 LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com
SUMMARY: Mayor Karen Bass is implementing sweeping reforms to LA's permitting process to streamline development. Meanwhile, Hackman Capital Partners and Affinius Capital are listing the Culver Steps mixed-use campus at 9300 Culver Boulevard for $150 million, even as Hackman faces a separate $100 million loan default in Culver City. Advanced Real Estate also acquired two Hollywood apartment towers for $202 million.
Continue reading with a subscription
You've used your 3 free views this month. Subscribe to unlock every article, permit filing, deal, and policy update — every day.
- Unlimited daily editions
- Every permit, deal & policy update
- 7-day free trial included
- Cancel anytime
