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labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 32 THE COMMUNITY OF BUSINESSTM August 8 - 14, 2011 • $3.00 Up Fitness Company Front Sweats Copycats Happy hour! LEGAL: Beachbody brings in Landmark muscle on DVD counterfeiters. Tom Bergin’s By ALFRED LEE Staff Reporter to reopen soon. From actress Demi Moore to Congressman Paul PAGE 3 Ryan, just about everyone seems to be going crazy for trendy home fitness program P90X these days. But it has also become wildly popular with a group of people that its maker, Santa Monica’s Beachbody LLC, is not happy about: counterfeiters. The fast sales of the DVD training program have led to a rise in pirated copies that even come packaged with company brochures and workout scheduling calendars. It’s no small problem. The company sold $430 mil- News & lion worth of products last year, but estimates that $75 Analysis million was lost to counterfeit sales. In response, Beach- body has had to borrow anticounterfeiting measures often used in the apparel and luxury goods industries.

Please see LEGAL page 35 Business Rips Bill’s

Racking Up Savings: Owner Moshe Tsabag with dress at downtown L.A.’s Velvet Heart. RINGO H.W. CHIU/LABJ Superstore Impact More old theaters are getting a GOVERNMENT: Measure would second act. This one is a new pile on another study for projects. eatery. PAGE 5 Fit for L.A. By HOWARD FINE Staff Reporter Local business groups are lining up against a proposed People Local apparel makers bring production home state law they say would add unfair and unnecessary hurdles before any Wal-Mart-style superstore could open. By ALEXA HYLAND Staff Reporter Moshe Tsabag, founder and chief executive, The union-backed bill, which has passed the state cited two driving forces: the increasing costs of Senate, would require cities to conduct economic HE tags on nearly all the fashionable tops, labor and raw material in China, and the need for impact studies before approving new superstores such pants and dresses manufactured by Velvet quicker turnaround here at home to accommodate as Wal-Mart or Target. The business groups say forc- THeart, a downtown L.A. company that his fast-fashion retailers. ing cities to conduct these studies would delay super- makes apparel for retail chains and boutiques, “There’s a need for faster delivery, and this is store projects that could bring much needed jobs and now read: Made in USA. where Asia is not able to accomplish as much,” may even force superstores to drop expansion plans in It’s a big change at Velvet Heart, which had said Tsabag, who noted that it may take three or Los Angeles and elsewhere throughout the state. been manufacturing mostly in Asia. Only 30 per- four months to get a new item from China. “It’s hard enough to build a superstore in Los cent of its clothing was made in Los Angeles “Here, I can get the fabric in a couple of weeks, Angeles,” said Stuart Waldman, chief executive of the Why Jay Gross- until the beginning of this year. That figure is Valley Industry and Commerce Association, which man, celebrity now up to 95 percent. Please see APPAREL page 33 dentist, works Please see GOVERNMENT page 34 on the homeless. PAGE 15 There’s No Console-ing Game Maker MAIL TO: console games it developed for the last 12 years, and ENTERTAINMENT: Liquid started creating social games for Facebook and drops discs for social, mobile titles. mobile games for smart phones instead. This may not be merely one company’s change By NATALIE JARVEY Staff Reporter in direction but a sign that traditional game developers are starting to see a big future in games for social Pasadena game developer Liquid Entertain- networking and mobile devices, said Billy Pidgeon, ment long made video games that were played on senior analyst with Encinitas consulting and market computers and consoles. In a typical game, players intelligence firm M2 Research. battled enemy forces. “I see Liquid as an early mover into social and But Liquid’s newest title is a Facebook game pro- mobile,” he said. “I do think that it’s the beginning duced with entertainment blog Deadline Hollywood. of a movement.” There are no battalions to marshal; instead, players Actually, Liquid’s change didn’t have an auspicious

pretend they’re making it big in the movie business. RINGO H.W. CHIU/LABJ Liquid has all but stopped making the PC and Please see ENTERTAINMENT page 34 Socialite: Ed Del Castillo at Liquid in Pasadena.

Loans up to $300 million, one business at a time.

2 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011

LOS ANGELES BUSINESS JOURNAL ®

AUGUST 8 - 14, 2011 VOLUME 33, NUMBER 32

The test of time.

RINGO H.W. CHIU/LABJ Page 3: From left, Elliot Dix and Don Schwarz at L.A.’s MountainGate Country Club. Columns & features – Media Watch 10, ON THE COVER Banking & Finance 12, Technology 12, APPAREL – Manufacturing in L.A. is back in News of the Week 14 fashion as production costs continue to rise overseas. PEOPLE LEGAL – Beachbody targets counterfeiters INTERVIEW – Some big-name celebrities Straight talk. Sound counsel. Practical solutions. looking to muscle in on company’s fitness have taken a shine to dentist Jay Grossman’s At Snell & Wilmer, some things never change. tape business. teeth-whitening skill...... 15 GOVERNMENT – Business groups blast state bill that would require another impact www.swlaw.com report on superstore projects. THE LIST ENTERTAINMENT – Liquid Entertainment RANKING – The 20 largest telecommunica- has shelved its console focus and hopes to tion firms in Los Angeles County, ranked by click with online social games. number of county employees...... 18 denver | las vegas | los angeles | los cabos | orange county | phoenix | salt lake city | tucson UP FRONT INVESTMENTS & FINANCE HOSPITALITY – New owner of Tom Columns & features – LABJ Stock Index 421 Bergin’s Tavern hopes to raise the bar for the 20, Econowatch 22 STOCKCROSS aging watering hole...... 3 FINANCIAL SERVICES [email protected] COMMERCE – Business groups are heading REAL ESTATE THE BEST OFFENSE IS A to Cuba to shore up future prospects on the island country...... 3 HOUSING – July fails to bring any summer GOOD DEFENSE...TAX SPORTS – Local golf tourney hopes to swing relief to the market as sales tumble year to with a group of Congressional Medal of year...... 24 FREE MUNICIPAL BONDS Honor recipients...... 3 CHART – A list of July home and condo sales Columns & features – Page 3, by ZIP code...... 24 With the possibility of higher income tax rates right around the corner, it Regional Report 4 Columns & features – Real Estate makes good sense to consider investing in tax-free municipal bonds now! For the last 29 years in Los Angeles, I’ve made the bond market my Column 28 career... and have called the bond market my “home”. I hope to be your NEWS & ANALYSIS go-to man for tax-free municipal bonds, corporate bonds, U.S. COMMENTARY Governments or agencies, mortgage-backed securities, preferred stocks, DINING – Eatery Mohawk Bend offers dinner international and emerging market bonds and closed-end bond funds. I’ve DAVID A.BENDER but no movie at a renovated film theater in COMMENT – Charles Crumpley salutes been there to help build and manage my clients’ portfolios through good Senior Vice President Echo Park...... 5 the late John E. Anderson, who got ahead Private Client Group times and tough times. REAL ESTATE D - 310.432.6985 – Downtown L.A. property by believing in people and doing the P - 888.493.7337 owner Meruelo Maddux gains ground with right thing...... 36 Don’t you think it’s time for you to know what I have to say about the bond investors after bankruptcy...... 5 TRANSPORTATION – David C. Murphy market? “BENDER” is the name and bonds are my game and if you’re a www.stockcross.com STAFFING – On Assignment hopes for a serious investor, you need to call me today for a free review of your current urges Beverly Hills merchants to get on board holdings! - Member - healthy revenue boost by picking up an with a proposed local subway stop...... 37 NYSE SIPC FINRA Atlanta physician placement firm...... 6 GOVERNMENT – John Cox proposes a Established 1971 HOSPITALITY – Slumping IHOP sales have local approach to revamping and resizing state *APY Federal & State *APY Federal & State taken a bite out of parent DineEquity’s share government...... 37 5.00 % Tax Free Bonds** 5.125% Tax Free Bonds** price...... 6 EMPLOYMENT – Brendan Huffman wants California Health San Diego County ADVERTISING – Online ad firm California to clock out of its strict overtime Cedars-Sinai Med Center Waterfront Park ReachLocal is seeing real-world growth laws...... 38 Moodys A2, Fitch A+ S&P AA+, Fitch AA+, Moody’s Aa3 Coupon 5.125% through expansion into new countries. . . . .8 DEVELOPMENT – Bill Dombrowski blasts Coupon 5.00% Matures 2/01/36 @100.00 TRANSPORT – Activists look to rev up a state bill that would pile more impact reports Matures 11/15/2034 @100.00 Yield to Maturity 5.00% Long Beach port’s clean-air program by on superstore projects...... 38 Yield to Maturity 5.00% Callable 2/01/21 @100.00 requiring more truck checkups...... 8 Columns & features – LABJ Forum 36 Callable 11/15/15 @100.00 Yield to Call 4.892% Priced at 99.99 $50,000 Minimum Priced at $101.75 $50,000 Minimum Los Angeles Business Journal (ISSN 0194-2603) is published weekly. © 2011, Los Angeles Business Journal. Offices are located at 5700 Wilshire Blvd., Suite 170, Los Angeles, CA 90036. Periodicals postage paid at Los Angeles, CA and additional offices (USPS #492-930). Subscription Not suitable for all investors. This is not an offer to sell, nor a guarantee of availability or performance. All investments carry prices: 51 issues and special issue, $99.95. For new and renewal subscriptions, call 1-800-404-5225. All other inquiries (323) 549-5225. Single associated risks. You should always carefully consider your financial situation, risk tolerance and investment objectives before copies, $3.00. Mailed copies, $5.00. Back issues, $8.00. Address and subscription inquiries to: Circulation Department, Los Angeles Business Jour- making any investments. Securities are subject to prior sale and other changes. Many municipal bonds are subject to Alternative nal, 5700 Wilshire Blvd. Suite 170, Los Angeles, CA 90036. This newspaper is designed to inform decision-making executives, investors and man- Minimum Tax (AMT). You should consult your tax advisor. Bonds may be called in whole or in part prior to maturity. Bonds agers on the trends, the growth and the ideas important to commerce and industry in Los Angeles County. Information in Los Angeles Business are subject to price fluctuation and if sold prior to maturity, you may receive more or less than the amount of your original Journal is gathered from sources considered to be reliable, but the accuracy of this information cannot be guaranteed. Neither that information nor any opinion which may be expressed here constitutes a solicitation for the purchase or sale of any securities. Opinions expressed in letters to the investment. Payment of principal and interest is subject to the creditworthiness of the issuer and any other entity responsible for editor and commentaries are those of the authors and not necessarily those of Los Angeles Business Journal. Member Audit Bureau of Circulations. payments. You should always carefully read the prospectus or official statement prior to investing. *APY - Annual Percentage LABJ has been adjudicated Nov. 1985 to be a newspaper of general circulation. POSTMASTER: Send address changes to Los Angeles Business Yield.**State tax free if issued in your state of residence. Journal, PO Box 16825, North Hollywood, CA 91615. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 UP FRONT LOS ANGELES BUSINESS JOURNAL 3

second Bush administration. Setting Up Last year, the Obama Cuban administration loosened some restrictions, making trips like Beachhead this possible again. The core part of the trip L.A. business groups will include four days in travel to island with Havana; those who wish can eye on the future. remain another four days and visit towns in the countryside. The U.S. embargo of Cuba Peters Consensus Inc., a down- may have loosened of late, town L.A. company that pro- but not so much as to allow over the years that if Cuba opens motes clients’ projects, and most U.S. companies to do up, there will be significant Lexington Institute of Arling- business there. amount of American investment ton, Va., a free-market think Nevertheless, two local busi- in Cuba,” said chamber Chief tank, are coordinating the trip. ness groups are making their Executive Gary Toebben. “People going on this trip first trip to Cuba next month. “There may well be people will be able to interact with Local business owners and coming on this trip thinking that people involved in the eco- executives from the Los Ange- this will happen in the future.” nomic changes now sweeping les Area Chamber of Com- Most companies are banned across Cuba,” said Phil Peters, merce and the Central City from doing business in Cuba vice president with the Lexing- Association will get a chance to under an embargo in place ton Institute. “They will meet RINGO H.W. CHIU/LABJ learn about the changing econo- since Fidel Castro took power with new entrepreneurs, farm- Traditionalist: Owner Warner Ebbink at Tom Bergin’s Tavern near the Miracle Mile. my on the island nation and in the late 1950s. Only agricul- ers, people who work in state meet some newly minted entre- tural equipment companies and enterprises and people in acad- according to Vodrey. Frank. I would never in a mil- preneurs. After all, they figure, some telecommunications ser- emia. They will even meet Rolling “I think the recession got lion years touch that or the embargo will be lifted even- vices are exempt. The embargo Cubans who are in the business With to me,” he said. “Customers destroy what’s taken 75 years tually. was loosened in the 1990s to of renting out rooms in their weren’t coming in as regular to build,” Ebbink said. “I’m “I know of a number of busi- allow some educational trips, homes to foreign visitors.” Clover because they didn’t have the going to clean it up a bit and ness people who have said to me then tightened again under the – Howard Fine money.” change the image of it outside New Bergin’s owner Enter Warner Ebbink – lit- so it’s not as run-down. The to keep Irish ambience erally. And he’s one guy you menu is what’s going to have Heroes on special spirit to the tournament,” NBC News military analyst and at renovated eatery. want walking into your bar. the biggest overhaul.” said Schwarz, a manager at a Medal of Honor winner. Ebbink, 40, who visited Ebbink’s chef, Brandon The Green RBC Wealth Management in Schwarz said the key to Tom Bergin’s Tavern, a Bergin’s for the first time in Boudet, plans to keep the tradi- Beverly Hills. The event will be rounding up the medal recipients landmark but aging watering years several months ago, has tional Irish dishes, such as Golf tourney to host at MountainGate Country Club was convincing Michael Thorn- hole known for its shamrock- bought and revitalized other corned beef and cabbage, but Congressional Medal near the Getty Center. ton and Tommy Norris to attend. clad walls and horseshoe- older L.A. eateries. make it a steak and chop house of Honor recipients. Schwarz and Dix, who They are Navy SEALs who won shaped bar, needed a little Ebbink was smitten by the with fresh food from local farm- owns D&D Door and Hard- the Medal of Honor for daring Irish luck – and it got some. place years ago. After finding ers markets that will attract the Elliot Dix and Don Schwarz ware in Los Angeles, are co- rescues in Vietnam. The other T.K. Vodrey had operated out that Vodrey wanted to sell Miracle Mile business crowd. are going heavy on medals. chairmen of the Mountain- medal winners followed. the neighborhood bar and now, a deal, for an undisclosed The tavern, which has They’re bringing eight recipi- Gate Veterans Appreciation Dix organizes the event, restaurant at 840 S. Fairfax amount of money, was struck. been closed since July, is ents of the Congressional Medal Tournament, an annual bene- while Schwarz handles fundrais- Ave. just south of the Miracle The plan is to update scheduled to reopen in Sep- of Honor to Los Angeles for a fit for the Wounded Warrior ing. Local sponsors include Mile for 38 years since Bergin’s without losing its tember, with old employees golf tournament next week. Project, which helps injured Mattel Inc. and Macerich Co. acquiring it in 1973 from ambience. Ebbink has previ- offered their jobs back. It will be one of the largest veterans. About 350 people Dix has a particular per- Tom Bergin himself, who ously updated West Holly- Vodrey, 78, said he’s content gatherings of those who have will attend the event Aug. 15. sonal goal for the tournament. founded it 75 years ago. wood’s Dominick’s, Holly- the way it all worked out. won the medals – the highest In addition to golf, the day “My favorite picture hang- That’s a long time for any wood’s 101 Coffee Shop, and “I think at times that things military honor. Only 85 of all will feature presentations by ing in my office shows me bar to be in business and it Los Feliz’s Little Dom’s are to be passed on,” he said. those who have received the high military officials, a fly-over with three Medal of Honor was starting to show, with the restaurants, all of which were “All my friends are playing medal are alive today. by the Condor Squadron of Van recipients,” he said. “I hope to tavern losing a “couple hun- several decades old. golf and have been retired for “When you have 10 percent Nuys, and a color guard and flag improve on that with at least dred thousand” dollars annu- “Bergin’s is in my mind as a long time.” of America’s true national ceremony. The keynote address seven recipients in a photo.” ally over the past few years, iconic as L.A.’s Musso and – Jacquelyn Ryan heroes in one place, it brings a will be delivered by Jack Jacobs, – Joel Russell

Talk About Making It to the Top The bucket list for attorney Gary Nelson, 52, Australia, attended the dose of ethnic humor. just got a little shorter. He climbed Mount Ever- PAGE 3 Anaheim conference, In the legal world, a mistake can cost millions est during a trip from April to June. which included a camp of dollars, but “in improv acting, if you make a He has now climbed five of the tallest seven CHARLES CRUMPLEY for the children, and mistake, the audience may actually appreciate it if summits. But Everest was different. classes with doctors it’s funny,” Chang said. “It was a lot more dangerous and difficult and therapists for the But the two worlds than I thought it was going to be,” said Nelson, a “I think that picture is going to be on the holi- parents. aren’t as opposed in partner at Pasadena’s Christie Parker & Hale. day card with some cheesy slogan, ‘We’ll go to “The bonding is other ways. In fact, the He lost 17 pounds, got sick when fluid filled the top of the world for you,’” Nelson joked. intense,” he said. “It’s 33-year-old Chang led his lungs and fell into a much more over- an acting-for-lawyers crevasse so deep he All Booked whelming, in a good workshop at a legal couldn’t see the bottom Jack Epsteen has planned his summer vaca- Epsteen way, than your regular conference last year, (luckily, Nelson was tions for the next decade. Disneyland vacation.” and has been asked to attached to a safety Epsteen, a vice president and executive pro- The Epsteens’ 18-year-old daughter helped do more. line). ducer at ad agency RPA Inc. in Santa Monica, supervise the children’s activities, an experience Jack “Acting helps with Nelson, who took has a son, Levon, now 4, who was born with a Epsteen believes develops compassion in youth. being a litigator and up mountain climbing a malformed brain. To relieve the boy’s seizures, “Levon’s journey has brought all of us togeth- Chang trial lawyer,” she said. decade ago, started he had a surgery called hemispherectomy in er as a family,” he said. “As an attorney in a training a year before which half the brain was removed. jury trial, it is your goal to get the jury to under- his climb. He went on The Epsteens’ summer vacation last month Funny Lady stand your side of the story. The ability to be per- Nelson on Everest strenuous bike rides was attending the Hemispherectomy Foundation Being a trial attorney is serious business. So suasive, think on your feet, and communicate a around Los Angeles Conference and Family Reunion, and this year it when Cyndie M. Chang, an attorney in Duane compelling story with confidence, eye contact and even climbed a mountain in Ecuador. was in Anaheim. Morris LLP’s downtown L.A. office, needs a and certain mannerisms are really important.” “Certainly, I was in some of the best shape of “I was just talking with my wife and it appears break, she loosens up by performing with a local my life,” Nelson said. this is going to be our summer vacation for the comedy improv troupe. Staff reporters Alexa Hyland, Joel Russell and He had some fun while climbing the foreseeable future,” Epsteen, 43, said. “We’re The group, Cold Tofu, comprises mostly Alfred Lee contributed to this column. Page 3 is Himalayan peak, taking a picture of a golf ball already planning to attend next year in Baltimore.” Asian-Americans and combines the anything- compiled by Editor Charles Crumpley. He can be emblazoned with his law firm’s name. About 70 families, some from as far away as goes mentality of improvisational comedy with a reached at [email protected]. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

4 LOS ANGELES BUSINESS JOURNAL UP FRONT AUGUST 8, 2011

News and notes from communities across REGIONAL REPORT Los Angeles County large commercial clients, has merged with CENTRAL AREA Northridge Insurance Agency, a Chatsworth firm that sells personal and small-business insurance policies. The new entity, temporarily LOS ANGELES named SGB/NIA, will be headquartered at Scanlon Guerra’s Woodland Hills office. Family Bequest: The Jewish Communi- ty Foundation of Los Angeles, a non-profit that works with L.A.-area Jewish philan- SOUTH BAY thropists, has received a $3.4 million bequest from the estate of Raymond J. and Shirley R. Kornfeld. The foundation, on Wilshire LONG BEACH Boulevard just west of the Miracle Mile, will create a fund that supports educational and New Eatery: Gastropub Tavern on 2 has medical causes. opened in Long Beach’s Belmont Shore neighborhood at 5110 E. Second St. The restaurant, with a menu including sandwiches, burgers and WESTSIDE salads made with organic ingredients, is owned by Patrick Parmentier.

WEST LOS ANGELES Regional Report Global Portfolio: CB Richard Ellis To be considered for publication, Regional Group Inc., a West L.A.-based real estate ser- Report submissions should be e-mailed to: vices company, has been named global strate- Long Beach: Customers at new gastropub Tavern on 2, at 5110 E. Second St. gic property portfolio manager for HSBC [email protected] Holdings PLC, a London-based banking and tures, a Menlo Park investment firm. Better- an $86 million interchange in Delaware; a Business news from companies in Los Ange- financial services company. CB Richard Ellis Works plans to use the funding for hiring, expan- $76 million courthouse in Philadelphia; a $54 les County or nearby areas is listed on the will also work as regional transactional partner sion and development of its perks platform. million interchange in Baltimore; another $54 page. Please be sure that press releases for the bank’s properties in Europe, Asia, million interchange in Oshkosh, Wis.; a $40 specify the name of the city and the name of North America and Latin America. HSBC’s million residence hall at Mississippi State the company along with the description of portfolio comprises more than 7,500 properties SAN FERNANDO VALLEY University in Starkville. Also included are a the news. Submissions are evaluated on the in 87 countries, totaling more than 72 million highway project in New York and two build- basis of company size and the significance of square feet. ing projects in California and Mississippi that the announcement. The Business Journal SYLMAR total $85 million. tries to include as many listings as possible, but some may not be published due to space SANTA MONICA Contractor Deals: Tutor Perini Corp., limitations. a Sylmar-based construction firm, has racked WOODLAND HILLS Please address all inquiries to the e-mail Funding Round: BetterWorks, a Santa in contracts on eight projects totaling $395 address above. If you do not receive a Monica developer of an online rewards system million. Tutor Perini will complete the pro- Teamed Up: Scanlon Guerra Burke response in a timely manner, for client companies’ employees, has raised $8 jects, spread among seven states, between Insurance Brokers, a Woodland Hills broker- call (323) 549-5225, ext. 229. million in Series A funding from Redpoint Ven- next July and February 2014. Projects include age that specializes in business insurance for

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AUGUST 8, 2011 NEWS&ANALYSIS LOS ANGELES BUSINESS JOURNAL 5 Raising Curtains DINING: Eatery Mohawk Bend latest L.A. business to roll into old movie theater.

By DENIZ KORAY Staff Reporter two old theaters; in March, the Belasco nightclub opened at the former Belasco Theater in FTER two decades of sitting vacant, the downtown. old Ramona Theater in Echo Park is A back in business. Vaudeville venue But if you go there, you can’t see a Holly- The Ramona doesn’t have the glorious wood blockbuster or even a Woody Allen architectural heritage of the Mayan, but it does movie. You will, however, be able to down a have a historic past. meal of herbed flat bread with mashed avocado It was constructed in 1914 as a venue for and goat cheese. vaudeville acts and called the Garden Theatre, Inside the old shell of Ramona’s is and only later became the Ramona. In the 1960s, Mohawk Bend, a mostly vegetarian and vegan its name was changed again, to Studio One, and eatery that opened last week. the theater showed second-run and Spanish-lan- This isn’t the first new business to be created guage films in the years before it closed. RINGO H.W. CHIU/LABJ in one of L.A.’s historic movie theaters. Over By the time Yanow discovered it last year, Renovated: Executive Chef Randal St. Clair at Mohawk Bend in Echo Park. the past two decades, old theaters have been put the marquee remained but the venue’s interior to new use as nightclubs, jewelry stores, bars had been stripped. Not even the seats Indeed, Mohawk Bend is not small. The first a history buff and general manager of down- and even a branch of Barnes & Noble. remained. floor is more than 6,000 square feet, of which 3,600 town’s Orpheum. However, Ramona’s is perhaps the first to “I know it hadn’t been used since even square feet is devoted to the dining and bar area for Ten still screen movies and 14 host live become a restaurant. And for owner Tony before the Northridge Earthquake,” he said. customers. The second floor contains offices. shows, but nine are used as retail outlets, Yanow, who also runs Burbank pub Tony’s He leased the property from the Lotito fami- Yanow would not disclose what he spent on including several on Broadway, while a Darts Away, the choice was simple. ly, the longtime owners, for five years with four the conversion, but Jerry Prendergast, an L.A. dozen are closed. Nine others are used as “I love that neighborhood, and I wanted to additional five-year lease options. Construction hospitality consultant, said such projects are churches. be able to use an area nearby. This space was on the restaurant took almost 12 months. One relatively cheap compared with alternatives. “There are lots of open theaters,” Kelsey ideal for me because of the location and size,” thing that wasn’t a problem was the theater’s “The cost of renovating an old theater is said. he said. floor, which was flat when Yanow took over. much less expensive than buying out a build- There also isn’t much opposition from his- The conversion of the building at 2141 W. Given the theater’s location in a hip and ing and doing a complete renovation or demol- torical conservationists if a project is done with Sunset Blvd. into a restaurant is the latest young neighborhood – across the street is wine ishing it,” he said. sensitivity, which often is the case with the twist on a trend that began in the late 1980s as bar City Sip and next door is Elf Café, a tiny Mikayel Israyelyan, co-owner of Holly- renovations. developers sought new uses for single-screen vegetarian restaurant – he decided on a menu wood nightclub Playhouse, agreed. “The days of the single-screen theater have theaters driven out of business by modern that is 60 percent vegan; 20 percent vegetarian; “In Hollywood, when nightclubs came back come to pass, and by necessity, they need new multiplexes. and 20 percent fish, bison, pork and duck – but on the scene, we looked at buying old movie uses,” said Ken Bernstein, manager of the Among the most notable was the 1990 no beef, said executive chef Randal St. Clair. theaters because of their size,” Israyelyan said. city’s Office of Historic Resources. “In many transformation into a nightclub of downtown’s And even with all the neighborhood’s new The partners settled on the Fox Theatre, but cases, developers are looking for an authentici- ornate Mayan Theater, a designated cultural residents, he kept many structural elements of it ultimately took five years to get the club ty and beauty that can only be provided by his- landmark built in 1927 featuring pre- the venue, including the marquee, to appeal to opened, including two for construction. toric architecture.” Columbian motifs inside and out. the long-timers. “It cost more than $6 million, but other Meanwhile, Yanow is continuing to Since then, some theaters, including the El “Some residents would drop by and tell us options would have been even more expen- expand his business. Now, he working on Capitan in Hollywood and downtown’s that they watched ‘101 Dalmatians’ or the Beat- sive,” he said. opening Golden Road Brewing, a craft brew- Orpheum Theatre on Broadway, have been les’ ‘Help’ for the very first time,” St. Clair said. ery in Atwater Village. The plan is for Golden renovated and still show movies, but most The marquee now features the restaurant’s More to come Road to serve his Burbank tavern and house new ventures, with nightclubs among name, which alludes to nearby Mohawk Street, There is no shortage of older theaters await- Mohawk Bend, as well as other restaurants. the most common. and the interior reflects its heritage. The origi- ing possible conversions. There are 61 theaters “Hot spots can come and go, but we want to In the past couple of years, Hollywood hot nal brick walls are visible and the dining rooms constructed more than 50 years ago in the city be here and be a real part of the neighbor- spots Supperclub and Playhouse opened at feature unusually high ceilings. of Los Angeles alone, according to Ed Kelsey, hood,” he said. Downtown’s Prospects Pump Up Property Owner ment bank Greif & Co., said the performance New board member Steve Taylor, chairman REAL ESTATE: Meruelo was undoubtedly notable. Meruelo Maddux (Pink Sheets: MMPIQ) of Chicago investment company Taylor Fund Properties Inc. “There is investor interest out there. It’s a long- FRI. CLOSE, PAST 5 WKS L.P., said the rising share price reflects opti- Maddux shares also get Los Angeles 5.0 term bet on downtown’s renaissance,” he said. 4.5 mism in the reorganized company and down- CEO: Martin Caverly Aug. 4: $4.50 Meruelo Maddux, which long boasted of 4.0 town, including the possibility a pro football boost from reverse split. Employees: 86 being downtown’s largest private property 3.5 stadium will be built there. By JONATHAN POLAKOFF Staff Reporter owner, filed for bankruptcy in 2009 after it was Market Cap: $79 million 3.0 “There’s a lot of equity value in the compa- P/E*: 0.47 2.5 unable to make debt payments. 2.0 ny’s real estate,” Taylor said. “Investors may After emerging from bankruptcy and com- In June, after a protracted struggle in bank- EPS: -$10.56 7/1 7/8 7/15 7/22 7/29 be beginning to understand the full magnitude pleting a reverse stock split, Meruelo Maddux ruptcy court, two new outside investors, Glob- *Twelve months trailing. Source: Yahoo Finance of what’s happening in downtown.” Properties Inc. was the surprise top gainer on al Asset Capital LLC of Palo Alto and Greif said that the reverse stock split, given the LABJ Stock Index last week. Mount Kellett Capital Management LLP of downtown. The company sold off some of its the company’s strong underlying real estate And don’t think it’s all about the five-to- New York, acquired a 55 percent interest in the portfolio in bankruptcy to pay off debt, but still portfolio, also may draw institutional interest. one split. company. The firms put up $50 million to buy owned 35 properties, according to a bankrupt- He noted that Meruelo Maddux has announced After the split that took effect at the end of trad- a controlling interest and recapitalize it. cy court filing this year. plans to finance $18.5 million of capital ing July 29, shares of the downtown L.A. property Founder and Chief Executive Richard Its marquee holdings include the Union improvements to developable properties by the owner closed at $5 in the week ended Aug. 3, up Meruelo, as well as all directors, were ousted Lofts apartment building at 325 W. Eighth St. end of next year. 92 percent, adjusted for the split. (See page 20.) in the process. and the company’s headquarters, which are in “If they were coming out of bankruptcy The shares, which trade on the Pink Sheets, Meruelo built up the company he founded a converted warehouse at 761 Terminal St. with no fresh capital and no fresh manage- settled down to close at $4.50 a day later. But some 20 years ago mostly by buying industrial That building also houses the headquarters of ment, it would be a yawner,” he said. “Clearly, Lloyd Greif, president of downtown invest- and warehouse properties on the east side of clothing maker American Apparel Inc. they have a plan of action.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

6 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 8, 2011 Restaurant Chain Wants Extra Helping of Change HOSPITALITY: Parent pins sales recovery on new menu, improved service at IHOP.

By ALEXA HYLAND Staff Reporter

Faced with slumping sales, DineEquity Inc. is serving up a full plate of changes at its IHOP chain. The Glendale company, which owns IHOP and Applebee’s Neighborhood Grill & Bar restaurants, is developing a plan to better promote IHOP’s low-cost fare, improve the chain’s menu offerings, and make sure diners get their food and bill faster. IHOP last week reported a 2.9 percent decline in same-restaurant sales for the second quarter ended June 30. The sales would have dropped 3.4 percent for the quarter excluding a spike during the Easter holiday. It’s the second consecutive quarter same-restaurant sales have slipped. That reverses the momentum the company had built in the third and fourth quarters of last year, when sales were climbing. DineEquity’s stock was one of last week’s biggest losers on the LABJ Stock Index, RINGO H.W. CHIU/LABJ falling 9.7 percent to $46.86 for the week Overhaul on the Menu: IHOP restaurant on Crenshaw Boulevard in Torrance. ended Aug. 3. (See page 20.) regionally based family-dining chains such as SunTrust Robinson Humphrey, said the “Kids A series of missteps have contributed to Cracker Barrel and Bob Evans, and national DineEquity Inc. (NYSE: DIN) Eat Free” campaign is a smart move because it IHOP’s sales decline, including an “All You chain Denny’s, which launched a value menu Glendale FRI. CLOSE, PAST 5 WKS drives traffic during one of IHOP’s slowest 56 Can Eat Pancakes” campaign that didn’t bring with $2, $4, $6, and $8 items last year. CEO: Julia Stewart 54 time of the day: dinner. in enough customers and a media strategy that IHOP’s weak sales come as the chain Employees: 650 52 “You’ll probably see a higher ticket average 50 didn’t get results, said Destin Tompkins, a announced plans in June to open 40 franchise Market Cap: $785 million because mom and dad feel like they can spend senior vice president at Memphis, Tenn., restaurants in nine Middle Eastern countries, its 48 more because kids eat free,” O’Cull said. P/E*: NA Aug. 3: $46.86 46 investment banking firm Morgan Keegan & first major expansion outside of North America. 44 IHOP is also making some operational changes Co. Inc. who follows DineEquity. It currently operates 1,512 locations worldwide. EPS: -$0.84 7/1 7/8 7/15 7/22 7/29 so customers get their food faster, especially dur- “The media strategy they employed in 2011 *Twelve months trailing. Source: Yahoo Finance ing busy times such as breakfast. At about half of was different than what they used in the past,” Strategy change IHOP’s locations, guests no longer have to pay at Tompkins said. “And judging by the sales Before this setback, the chain increased its mar- Coca-Cola Co. and Burger King veteran the cashier, a server will take the payment and results, they felt like it took them in the wrong ket share in the family-dining segment from 9 per- Natalia Franco to serve as senior vice president bring back change or the credit card receipt. direction and they are going back to the way cent to 18 percent since the early part of the last of marketing. During a conference call with analysts last they’ve done in past years.” decade, said IHOP spokesman Patrick Lenow. “They needed to freshen up the concept’s week, DineEquity Chief Executive Julia Stew- The company didn’t disclose the new To shape its plans, DineEquity will use infor- image,” Tompkins said. “And they needed a art said the company is in the midst of updat- approach it took to buying advertising, citing mation from a 90-day market research study the new slogan to cut through what had run its ing its menu with a “culinary strategy that will competitive reasons. company commissioned earlier this year. course and what consumers weren’t respond- drive innovation.” She didn’t cite specifics. Meanwhile, it hasn’t helped that IHOP has “It’s one of the most extensive we’ve ever ing to in a way they had hoped.” Analysts said Stewart, who has turned been faced with more competition from other done,” Lenow said. “We feel we’ve got more The company is planning to promote more around Applebee’s with restaurant renovations family-dining establishments, and that its key information about our guests and a better under- current menu offerings with advertising that and a menu overhaul, is up to the task of bring- customers, families, are dealing with rising gas standing of what’s important to them. And we highlights its low-price fare. ing back sales at IHOP. and food prices, Tompkins said. are using it to inform how we make decisions.” Analysts also expect IHOP to develop more “She’s got an excellent track record and “We’ve seen more aggressive promotional IHOP has decided to retire its eight-year value-oriented promotions. Currently, the credibility turning brands around and growing activity,” he said. “And consumers are under a lot slogan, “Come hungry, leave happy,” and chain gives kids a free meal from 4 to 10 p.m. brands,” O’Cull said. “She has the ability to fix of pressure, especially lower-end consumers.” replace it with “Make it an IHOP day.” This Christopher O’Cull, an equity analyst at this. And I expect we will see an improving IHOP’s main competition comes from month, the chain also announced that it hired Atlanta corporate and investment banking firm trend at IHOP sooner rather than later.” Employment Firm Making Career Out of Pickups who follows On Assignment. “HCP has a dif- In 2009, the company bought Fox Hill & STAFFING: On Assignment On Assignment Inc. (Nasdaq: ASGN) ferent specialty in the physician staffing indus- Associates, a physician placement business Calabasas FRI. CLOSE, PAST 5 WKS try and a strong business in the southeast area.” specializing in retained and contingent search. acquires doctor placement 12.0 CEO: Peter Dameris Aug. 3: $10.09 11.5 The deal includes a two-year earn-out oppor- Last year, it bought Cambridge Group Ltd., a business to nurse revenue. Employees: 1,123 11.0 tunity of up to $3.7 million for HCP’s owners. Connecticut-based firm specializing in clinical 10.5 Market Cap: $370 million On Assignment will use a combination of cash research, IT and physician staffing, and Lon- By HEEJIN PARK Staff Reporter 10.0 on hand and borrowing to pay for the acquisition. don’s Sharpstream Holdings Ltd., a provider of P/E*: N/A 9.5 9.0 executive search services in life sciences. When On Assignment Inc. bought a physi- EPS: -$0.18 7/1 7/8 7/15 7/22 7/29 Many pickups Earlier this year, the company acquired cian staffing firm last week, it took another *Twelve months trailing. Source: Yahoo Finance HCP is On Assignment’s 10th acquisition Valesta, a Belgian provider of clinical research step on the staffing company’s five-year plan since 1996 and the fourth since last year, when staffing. to build its revenue to $1 billion a year, double year, about 17 percent of the parent company’s On Assignment announced a five-year growth On Assignment reported second quarter net what it takes in now. total. HCP had $20 million in revenue last year, strategy to reach $1 billion in revenue. Rev- income of $5.9 million, compared with net The Calabasas company, which places and On Assignment expects the combination of enue last year was $438 million. income of $900,000 the previous year. Rev- health care and engineering professionals in the two companies will accelerate growth. “As part of our five-year strategic plan, we enue rose 38 percent to $143 million. hospitals and companies, acquired Health- “With this acquisition, Vista now generates plan to acquire about $50 million in revenue a But revenue in its physician staffing unit Care Partners Inc., a privately held physician more than $100 million in annual revenue,” said year,” said James L. Brill, the company’s senior was down nearly 8 percent from the same staffing firm in Atlanta, for $15 million. Peter Dameris, On Assignment chief executive. vice president and chief financial officer. quarter last year. HCP will become a part of On Assign- The company also expects savings of about On Assignment was incorporated in 1985 and More acquisitions could offset slowing ment’s physician unit, Salt Lake City-based $450,000 a year for the next 15 years through a began buying up other companies in 1996. growth in the company’s physician staffing Vista Staffing Solutions, which On Assign- tax classification of the acquisition. Among those acquisitions was the 1998 pickup of unit, analysts said. ment acquired in 2007. HCP’s founders are The purchase adds to On Assignment’s LabStaffers Inc., which boosted On Assignment’s “While revenue guidance for the third quarter expected to stay with the company. repertoire, as HCP does different types of med- life sciences business. On Assignment then of 2011 implies slightly slowing growth, this On Assignment has 1,123 employees and ical staffing than Vista. bought Health Personnel Options Corp. in 2002 to could be muted by potential new acquisitions,” operates 90 branch offices around the world. “This is a good acquisition in terms of a establish a traveling-nurse staffing service. said Jeffrey M. Silber, a managing director of The 41-employee HCP makes physician place- geographic and staffing specialty perspective,” In 2007, the same year as the acquisition of BMO Capital Markets Corp. in New York who ments across 24 states. said Tobey Sommer, an analyst at SunTrust Vista, the company bought Oxford and estab- raised On Assignment’s target price from $13 to Vista reported revenue of $73.6 million last Robinson Humphrey Inc. in Nashville, Tenn., lished its IT and engineering business. $14 last week. Shares closed at $10.09 on Aug. 3. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 7

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8 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 8, 2011 Internet Firm Looks for Real Overseas Presence ADVERTISING: Google deal ReachLocal Inc. (Nasdaq: RLOC) Woodland Hills FRI. CLOSE, PAST 5 WKS fuels ReachLocal’s growth 22 CEO: Zorik Gordon 21 Employees: 1,381 20 into new countries. 19 Market Cap: $486 million 18 17 Aug. 4: $16.71 By NATALIE JARVEY Staff Reporter P/E*: N/A 16 15 EPS: -$0.49 7/1 7/8 7/15 7/22 7/29 ReachLocal has grown from a small Inter- *Twelve months trailing. Source: Yahoo Finance net advertising firm in Woodland Hills to a public company with more than a thousand growing our revenue with generating profitabili- employees. Now the company has its sights set ty,” he said. “Based on that balance, we were on becoming an international force. probably going to be able to expand into one The company already has offices in a handful country a year. The Google deal has some finan- of mostly English-speaking countries, but plans to cial benefits to use for some of our expansion.” accelerate expansion into several new countries ReachLocal’s plans for a secondary offer- thanks to a deal with Google Inc. that expands its ing could also give a boost to the company’s search advertising partnership overseas. growth abroad. Meanwhile, ReachLocal has filed plans with The company filed July 8 with the SEC to the Securities and Exchange Commission to launch sell 6 million shares – 1 million from the compa- a small secondary offering that could eventually ny and 5 million from shareholders – in the raise money to pay for more international efforts. RINGO H.W. CHIU/LABJ offering. The company said it would use pro- The company reported last week that inter- Stretching Out: CEO Zorik Gordon at ReachLocal’s office in 2009. ceeds from the sale of its 1 million shares to fund national operations are the fastest growing part working capital and general corporate expense. of the business, helping it post revenue gains The company is also coming closer to prof- to its first Asian country, also yet to be identi- But Gordon said the money could also be and inch closer to profitability. itability. Its net loss was $949,000, compared fied, during the first quarter of 2012. In the used as part of the company’s development in ReachLocal sells Internet advertising and with a loss of $2.39 million in the second quar- next three years, ReachLocal plans to open new countries. marketing services, such as website design, ter last year. offices in a total of eight new countries. “If we wanted to be really aggressive, we could display and search ads, and social networking, International business brought in $20.7 mil- The company can accelerate its expansion use those proceeds (for expansion),” he said. to small and medium-size businesses. lion, more than 22 percent of total revenue. It thanks to the broadened partnership deal struck The secondary offering also will help International markets could become was also the fastest-growing division within with Google in April. ReachLocal’s stock become more liquid, said ReachLocal’s best bet for growth because the company, with an 86 percent increase over The deal gives ReachLocal the ability to Sidoti analyst Cakmak, who rates the stock a many businesses abroad haven’t yet launched the same quarter last year. offer Google AdWords advertisements, which “buy.” Currently, the company’s shares are local online ad campaigns, said James Cakmak, Zorik Gordon, the company’s chief executive, appear as part of Google’s search results, to concentrated among its initial venture capital an analyst with Sidoti & Co. in New York. said ReachLocal’s domestic business was slug- customers in any market. The company’s pre- investors. “When you look at the international mar- gish this quarter because of the weak economy, vious deal with Google extended to only a few Cakmak doesn’t expect the company to com- kets, they are virtually untapped,” he said. “By but international growth was spurred by healthier international markets. plete its secondary offering until the stock nearly entering these nascent markets, ReachLocal economies in the company’s markets abroad. Every time a business gets a click from an doubles in price to about $30 a share. Shares has the first-mover advantage.” “The economy in North American for small ad on AdWords, the business pays Google and closed down 6.5 percent Aug. 4 to $16.71. ReachLocal has most of its offices in the and medium-sized businesses has been a little ReachLocal gets a cut of the revenue. Individ- “At the appropriate price, doing a sec- United States, but has also established a presence tight,” he said. “Australia and Germany have a ual AdWords advertisements generate insignifi- ondary will help free up shares and open up the in Canada, Australia and the United Kingdom. healthier and more robust economic climate.” cant amounts that eventually add up over time, stock to a broader group of investors,” Cakmak The company opened an office in Germany, its and increasing the AdWords deal will mean said. “But not at this price.” first non-English-speaking country, in February. Growing overseas more money for ReachLocal in the long term. Gordon said the company has no immediate Those international markets were a key fac- ReachLocal, which has more than 750 con- Gordon said the Google partnership will plans to pull the trigger on the secondary offering. tor in the company’s second quarter perfor- sultants working in 54 offices around the bring cash to the company that will allow it to “There is nothing imminent planned at this mance. On Aug. 2, ReachLocal reported sec- world, plans to ramp up its presence abroad by expand more quickly and without slowing it point,” he said. “It gives us the ability, when ond quarter revenue of $92.8 million, up 32 expanding into another European country, yet down on its path to profitability. we deem fit, to execute on a secondary offer- percent from the prior year. to be identified, before the end of the year and “As we’ve gone public, we’ve really balanced ing very quickly.” Activists Drive Maintenance Crackdown at Port TRANSPORT: But trucking companies didn’t like the con- Joshua Owen, president of Ability/Tri- igation, but Lin Perrella said the NRDC’s goal Long Beach cession system and the American Trucking Modal trucking in Carson, said the port’s change is to have a full public discussion on whether officials say trucks already Associations filed a lawsuit against the port. In cut paper work for the companies but didn’t to return to a concession system. 2009, the port and the ATA reached a settle- change real-world maintenance procedures. She called the 2009 settlement a backroom meet clean-air standards. ment that called for converting the Clean He said that large trucking companies such deal that resulted in a system inferior to the Truck Program into a registration system. The as Ability/Tri-Model have their own strict one approved at the Port of Los Angeles, By JAMES RUFUS KOREN Staff Reporter settlement made trucking companies responsi- internal schedules in order to comply with Cal- which bans trucking companies from the com- ble for following local, state and federal laws ifornia Highway Patrol and federal mainte- mon practice of using independent contractors It sounds arcane and white collar: A federal but abandoned the requirements for maintenance regulations. While he admitted that CHP and instead requires them to hire drivers as judge last month ordered Long Beach officials nance plans and logs to be turned over to port and federal government inspectors focus more employees. to conduct an environmental report on their officials. on safety issues, such as brakes, the trucks are Lin Perrella said the NRDC believes large program to clean the air at the city’s port. Dominic Holzhaus, Long Beach’s principal inspected. trucking companies with deep pockets, not But at issue is a very blue-collar question: deputy city attorney who is representing the “There are so many rules and laws and reg- independent owner-operators who might seek how often mechanics will get their nails dirty port in its lawsuit with the environmental ulations outside of the port that we have to fol- to save a buck, should be responsible for main- under the hoods of thousands of new trucks groups, said the registration system still low,” Owen said. taining trucks. However, she added that the operating at the Port of Long Beach. requires that companies maintain their trucks. Thomas Jelenic, the port’s assistant director provision is not at issue in the Long Beach The Natural Resources Defense Council “We’re confident that the facts support of environmental planning, added that the new legal case since the port abandoned the idea and the Sierra Club, which in 2009 sued the what we did,” he said. cleaner-burning trucks won’t function without prior to the 2009 settlement. port over various provisions in its Clean Truck However, U.S. District Judge Christina proper maintenance of their emission-control The ATA and others in the trucking indus- Program, want to ensure that mechanics regu- Snyder was swayed by arguments from the systems. try maintain that the L.A. port plan’s underly- larly inspect the rigs – and now they might get environmental groups, which contended that “You have this filter on your truck, and if ing goal has less to do with any environmental their way. federal and other regulations didn’t stop port you don’t maintain it, it will become clogged,” motive and more to do with the Teamsters’ “A new truck is very quickly going to trucks from falling into disrepair in the past. he said. “It’s like sticking a banana in your goal of unionizing port truckers. The union has become a dirty truck if it’s not maintained,” She ordered the port July 14 to study exhaust. Your truck essentially will not operate. been a big supporter of Mayor Antonio Vil- said Melissa Lin Perrella, a senior attorney with whether changes to the program, including This idea that we can have all these scofflaws laraigosa who has pushed for the L.A. port’s the NRDC’s Southern California Air Project. converting it to a registration system and aban- driving around with modern trucks with emis- Clean Truck Program. The program, which required carriers to doning the maintenance requirements, would sion systems that aren’t operating properly just In fact, the ATA has sued the Port of Los replace thousands of old dirty diesel trucks with result in additional pollution or other environ- ignores the way these systems work.” Angeles over its concession program in a case current models, was passed originally in 2007 mental impacts. The results of the study will be due Feb. 1. that is still tied up in federal court. Snyder, as a concession system; that allowed the port to If the study shows no need for further work, it who is presiding over both port’s cases, upheld block port access to trucking companies if they Real-world maintenance will be presented to the Harbor Commission L.A.’s concession program last year, including didn’t follow the rules. Those rules would have However, at least one local trucking com- and likely to the City Council. If it shows the its prohibition against owner-operators, but the required trucking companies to prepare mainte- pany executive said that the concerns of the need for a full environmental impact report, ATA has appealed her ruling. nance plans for all trucks and make mainte- environmental groups do not reflect how main- work would begin on that document. The ATA did not respond to requests for nance logs available for inspection. tenance is conducted. Any decision could be subject to further lit- comment. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 9

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10 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 8, 2011

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MOVIE BOX OFFICE Weekend Gross Total Gross Rank Title (millions) (millions) Distributor 1 Cowboys & Aliens $36.4 $36.4 Universal QUATEMAN 2 Smurfs 35.6 35.6 Columbia 3 Captain America 25.6 117.4 Paramount 4 Harry Potter 22.0 318.5 Warner Bros. 5 Crazy, Stupid, Love 19.1 19.1 Warner Bros. 6 Friends With Benefits 9.3 38.2 Screen Gems + 7 Horrible Bosses 7.2 96.3 Warner Bros. 8 Transformers 6.1 338.0 Paramount 9 Zookeeper 4.3 68.8 Columbia 10 Cars 2 2.3 182.1 Disney POLSINELLI Weekend ended July 31 Source: Bloomberg News PRIMETIME TV SHOWS Rank Program Network Rating* 1 America's Got Talent (Tues.) NBC 6.6 2 America's Got Talent (Wed.) NBC 6.0 3 NCIS CBS 5.9 4 60 Minutes CBS 5.8 5 Bachelorette ABC 5.4 Week ended July 31 *Each rating point equals 1.1 million homes. Source: Bloomberg News CABLE TV SHOWS Rank Program Network Rating* 1 Pawn Stars (Mon., 10:30 p.m.) History 4.1 2 (tie) The Closer TNT 4.0 2 (tie) NASCAR Sprint Cup ESPN 4.0 4 Rizzoli & Isles TNT 3.9 5 Pawn Stars (Mon., 10 p.m.) History 3.7 Week ended July 31 *Each rating point equals 1.1 million homes. Source: Bloomberg News TOP SELLING ALBUMS Rank Last Week Artist Title Label 1 3 Adele 21 XL Recordings/Columbia 2 New Kidz Bop Kids Kidz Bop 20 Kidz Bop 3 New 3 Doors Down Time of My Life Republic/Universal 4 5 Beyonce 4 Columbia 5 New DJ Khaled We the Best Forever Cash Money Records Week ended Aug. 6 Source: Billboard.com MOVIE RENTALS - DVD/VHS Rank Last Week Title Distributor 1 New Limitless Relativity 2 1 Lincoln Lawyer Lions Gate 3 3 Rango Paramount 4 2 Insidious FilmDistrict 5 6 Arthur Warner Bros. Week ended July 24 Source: Rentrak Comprehensive counsel coast-to-coast. DVD SALES A full spectrum of practice areas and a 540-strong Rank Last Week Title Distributor Suggested Retail 1 1 Rango Paramount $29.99 team of attorneys bring our clients the vast resources 2 New Limitless Relativity $29.99 3 4 Harry Potter: Warner Bros. $28.98 needed in today’s complex legal environment. With Deathly Hallows Part 1 4 2 Lincoln Lawyer Lions Gate $29.95 locations in key markets across the country, and 5 3 Insidious FilmDistrict $30.99 now coast to coast with the addition of Los Angeles – Week ended July 24 Source: Rentrak MOVIELINK DOWNLOADS we’re everywhere you need to be. Rank Title Distributor Suggested Retail 1 Rango Paramount $15.95 2 Arthur Warner Bros. $15.95 3 Lincoln Lawyer Lions Gate $15.95 4 Unknown Warner Bros. $15.95 5 Limitless Relativity $15.95 Week ended Aug. 3 Source: Cinemanow.com

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12 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 8, 2011 Security Software Maker Sheds Chief Exec, Staff

COMPUTERS: Downtown TECHNOLOGY L.A.’s CyberDefender had NATALIE defaulted on its debt. JARVEY T was quite a week for CyberDefender Corp., a downtown L.A. security software I company. First, co-founder and Chief Executive Gary “There are existing websites that make free Guseinov resigned. Then, the company announced software available, but nobody has taken the it had cut a large portion of its staff and had default- approach (for the PC) like the Apple app store.” ed on loan agreements with GR Match LLC. Avenue currently offers about 300 programs CyberDefender and GR Match, a division for download, and Nevolution takes a 25 per- of Santa Monica marketing company Guthy- cent cut of revenue from all software sales. Renker, have agreed to extend payment until Smith said the company is looking to add the end of September. more software programs to Avenue and wants CyberDefender is looking to raise money to to have 1,000 available for download by the help pay off the debt. It has already raised $1.5 end of summer. RINGO H.W. CHIU/LABJ million in a private offering of convertible Plug Pulled: Gary Guseinov at CyberDefender’s downtown L.A. office in July 2010. promissory notes to a small group of investors. Better Money Kevin Harris, chief financial officer, said woman said executives were not available to net loss,” he said. “This is no longer an accept- Santa Monica startup BetterWorks has during the company’s second quarter earnings comment, and no further explanation was pro- able financial model for CyberDefender.” raised $8 million in funding from Menlo Park call last week that CyberDefender is raising vided in the earnings call. venture capital firm Redpoint Ventures. more cash, because the $1.5 million won’t Howard Bain, an independent board mem- Adding Apps BetterWorks, which has developed an cover payment of the debt and costs of com- ber, has been elected chairman. The board is Downloading new programs and games to online employee benefits system, will use the pleting the company’s transition to a new busi- negotiating with Greg Thomas, an adviser to Apple computers and iPhones is as simple as a financing to hire more staff, expand into new ness model: It is no longer developing software, the company since late May, to serve as inter- click on the company’s app store, but it has markets and further develop its technology. but will continue providing live tech support. im chief executive. been more challenging to do the same on Win- “We invested in the BetterWorks team because Harris warned that finding the capital the Shares of CyberDefender fell nearly 14 per- dows-based PCs. of their big vision to build a technology-based company needs won’t be easy. cent to 70 cents Aug. 3 on the news of Now, a Woodland Hills startup is looking solution for the country’s 6 million small and “Although the company is exploring a Guseinov’s resignation. The company’s stock to be the app store equivalent for computers medium-sized businesses who need perks pro- number of sources for the additional financing, has been steadily falling since late last year, that run the Windows operating system. grams to create better work environments,” Satish the company cannot ensure that it will be able and shares could be delisted from Nasdaq if Nevolution LLC launched its software Dharmaraj, general partner at Redpoint who has to secure the necessary financing,” he said. the price stays below $1 for 30 days. marketplace for PC computers in late June. joined BetterWorks’ board, said in a statement. CyberDefender announced Aug. 2 that it will The company last week reported a narrower Called Avenue, it can be downloaded for free The company was founded last year by no longer develop security software products second quarter loss on higher revenue. Net loss to any PC that runs Windows and works simi- L.A. angel investor Paige Craig; “Farmville” and will now license software from other com- narrowed to $6.6 million, compared with a $12 lar to Apple’s app store, offering different soft- creator Zao Yang; and George Ishii, who also panies. The company instead will focus on the million loss the year before. Revenue rose 31 ware programs, such as Microsoft Office or founded L.A.-based genealogy website Geni. LiveTech support service introduced last year. percent to $12.7 million. web browser Google Chrome. BetterWorks has started with sales to L.A. As part of the transition, the company laid Thomas acknowledged during the investor call Matt Smith, chief executive of the six-per- businesses, and plans on expanding into San off employees in its software development that CyberDefender faces a number of challenges. son company, said Nevolution wants to make Francisco and New York later this year. division, but did not say how many. He said his three objectives as interim chief execu- it as easy for PC users to download software as Guseinov, who co-founded the company in tive would be to find capital, reduce costs and put it is on Apple devices. Staff reporter Natalie Jarvey can be reached at 2003, quit Aug. 1. The reason for the resigna- the company on a path to profitability. “People are buying PCs, but can’t install [email protected] or at (323) tion was not disclosed. A company spokes- “For years, this company has operated at a software from a DVD anymore,” he said. 549-5225, ext. 230. Bank’s SoCal Branches Reach Out to ‘Community’ REBRANDING: Banco Small Investor Program, which attempts to to Bloomberg forecasts, the projected 12- BANKING & move distressed assets from failed banks back month yield will rise to over 13.4 percent, Popular hopes new name into the private sector. which would be the second highest among FINANCE Under the deal, “Acorn will provide for the local companies. nets non-Spanish speakers. management, servicing and ultimate disposi- RICHARD tion” of the assets, the FDIC said. Bank Board HAT’S in a name? Well, if you ask CLOUGH Professional Business Bank announced some bank customers, a lot. High Yield last week the launch of an advisory group W Banco Popular, which has 12 PennyMac Mortgage Investment Trust, focused on improving Pasadena’s local econo- branches in Los Angeles County, has found non-Hispanic customers leave. already sporting one of the top five dividend my and promoting community issues. that its name has turned off non-Hispanic “We ended up losing some relationships,” yields among L.A. companies, is giving its The Professional Business Bank Community potential customers, many of whom were Chinea said. shareholders even more bang for their buck. Board will be headed by Mary Lynn Lenz, chief unsure if the bank catered to non-Spanish Last summer, the bank tested the name- The Calabasas real estate investment trust, executive of the bank, and includes 11 promi- speakers. change strategy with a small number of Illi- started by former Countrywide Financial nent members of Pasadena’s business and cul- So, as part of a larger rebranding effort, the nois branches and found an immediate Corp. executive Stanford Kurland, upped its tural communities. Among the board members Puerto Rican bank last week officially changed increase in non-Hispanic customer accounts, dividend to 50 cents a are Scott McKibben, executive director of the the name of its Southern California branches to as well as an increase in the size of new share last week from Pasadena Tournament of Roses Association; Popular Community Bank. accounts. Chinea said the bank wanted to test 42 cents. Bloomberg Bruce Blomstrom, president of the Pasadena “We have seen that the name has been a bit it in a small market to ensure that it would not analysts, meanwhile, Bioscience Collaborative; and Joe Scully, presi- of a hurdle with the non-Hispanic population,” alienate Hispanic customers before rolling it project an additional dent of Financial Guaranty Insurance Brokers. said Manuel Chinea, senior vice president of out in Southern California, where the bank increase to as much as The members each quarter will hold non- the bank’s U.S. retail banking operations. “It has 24 branches spanning Los Angeles, 60 cents a share by public meetings, which the board said in a sounds foreign. The objective behind this Orange and San Diego counties. early 2012 for the fast- statement will foster “an unrestrained exchange (name change) is to be more inclusive.” growing mortgage of ideas on local economic issues, potential To promote the new brand, the bank has Asset Sale investment firm. solutions and new growth opportunities.” launched an advertising campaign; become a The Federal Deposit Insurance Corp. Dividend yield sponsor of the Los Angeles Angels of Ana- announced last week that it has sold a package measures the ratio of C-Suite News heim; and refurbished many of its branch loca- of distressed loans to a group of local investors. dividends paid by a Kurland Pacific Western Bank, headquartered in tions, including adding new signs, paint Acorn Loan Portfolio Private Owner IV company over one year compared with the Los Angeles, has hired Lynda Nahra as presi- schemes and carpeting. Chinea said the bank LLC, an L.A. entity partially backed by Oak- total stock price, or how much stockholders dent of its Central Coast region. … HSBC also launched a Facebook page. tree Capital Management LP, paid $25.6 get back for every dollar invested in the com- Bank USA has appointed Arjan Van Den Banco Popular first entered the L.A. mar- million for a stake in a portfolio of commercial pany. Berkmortel as regional president of commer- ket in 1975 with a single commercial branch, real estate and construction loans with an With a share price just topping $16 a cial banking for the West Coast and Texas. He and expanded its presence beginning in the unpaid principal balance of $158 million. The share, PennyMac had a yield of 10 percent will be based in Los Angeles. late 1990s with a series of acquisitions. But loans had been originated by FirsTier Bank, a prior to upping its dividend. That’s on the executives noticed that after each acquisition, Louisville, Colo.-based institution that was high side even for REITs, which under law Staff reporter Richard Clough can be reached particularly the 2004 purchase of Quaker City closed by regulators. must pay out 95 percent of earnings to share- at [email protected] or at (323) Bank in Whittier, the bank saw many of its The sale was the first under the FDIC’s holders to avoid corporate taxes. According 549-5225, ext. 251. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 13

GOLD AWARD - BEST OF SHOW Best Newspaper, Large Tabloids Yo u r B u s iness Journal is No.1 again. For the third year in a row, the Los Angeles Business Journal was named Best Large Tabloid by the Alliance of Area Business Publications. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

14 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 8, 2011

Last week’s major news from labusinessjournal.com NEWS OF THE WEEK and other sources

Anderson: Dies at 93. RINGO H.W. CHIU/LABJ Dole: Higher net income. Sports Club: To be purchased by Equinox.

VOTE SET: The Los Ange- Management and to Children’s DEAL CLOSED: Down- includes four Sports Club/LA be inserted into the Times and income of $58.3 million, 29.5 les City Council is scheduled Hospital Los Angeles. He town L.A.’s Reliance Steel & locations in Los Angeles and available on news racks. percent higher than a year ear- to vote on a proposed frame- ranked No. 14 on this year’s Aluminum Co. completed Orange counties, and New lier. Revenue fell 19 percent work for a partnership with Business Journal List of the acquisition of Continen- York’s Rockefeller Center, EARNINGS: Amgen Inc. to $2.8 billion. … Staar Sur- developer Anschutz Enter- Wealthiest Angelenos, with an tal Alloys & Services Inc. growing Equinox to 56 clubs reported second quarter net gical Co. reported second tainment Group to build a estimated net worth of $2.59 and certain affiliated compa- in the top eight U.S. markets. income of $1.17 billion, 3 quarter net income of $1.2 billion stadium and billion. In 1956, he launched nies in a deal valued at $415 Separate Sports Club/LA loca- percent lower than the same $862,000, compared with a replace a $275 million wing Ace Beverage, which received million. Continental Alloys of tions in several other markets period a year earlier. Revenue net loss of $1.6 million a year of the Los Angeles Conven- exclusive rights to distribute Houston, which makes high- will continue to be owned and rose 8 percent to $3.89 billion. earlier. Revenue rose 19 per- tion Center. The vote was set Budweiser in Los Angeles. er-margin metals products for operated by former sharehold- … DirecTV Group Inc. cent to $16.3 million. … PS for Tuesday. AEG has The business became the cor- the oil and gas industry, will er Millennium Partners reported second quarter net Business Parks Inc. reported promised to finance Farmers nerstone of Topa, which has operate as a subsidiary of Sports Club Management, income of $701 million, 29 second quarter net income of Field, with the city commit- 33 subsidiaries in beverage Reliance Steel, North Ameri- which bought the clubs in percent higher than a year ear- $11.4 million, 24 percent ting to issue $275 million in distribution, automobile deal- ca’s largest operator of metal 2005 after a management lier. Revenue grew 13 percent higher than a year earlier. tax-exempt bonds to pay for erships, insurance, financial service centers. Continental shakeup. Founded in 1979, to $6.6 billion. … Edison Revenue rose 5 percent to demolition and relocation of services, real estate and manu- and its affiliates had net sales Sports Club/LA was a pioneer International reported sec- $73.2 million. …K-Swiss the center’s West Hall. The facturing, and employs more of about $196 million for the in the urban country club con- ond quarter net income of Inc. reported a second quarter council’s Ad Hoc Committee than 2,300 people. first six months of this year. cept, combining sports and fit- $176 million, 48 percent loss of $20 million compared on the Downtown Stadium ness options with the ameni- lower than a year earlier. with a loss of $15.5 million a and Convention Center unani- NEW BUSINESS: Century ACQUISITION: Westlake ties of a high-end resort. Operating revenue rose 9.5 year earlier. Revenue rose 40 mously recommended the City aircraft leasing company Village online advertising percent to $3 billion. … percent to $65.5 million. … proposal last week. International Lease Finance company ValueClick Inc. FREE NEWS: Times Com- Herbalife Ltd. reported sec- J2 Global Communications Corp. plans to buy aviation announced that Dotomi, a munity News, a division of ond quarter net income of Inc. reported second quarter OBITUARY: Billionaire Bel- parts seller AeroTurbine Inc. Chicago intelligent-display the Los Angeles Times $111 million, 35 percent high- net income of $28.5 million, Air businessman and philan- from Dutch competitor Aer- marketing company, will Media Group, has launched er than a year earlier. Revenue 52 percent higher than a year thropist John Anderson died cap Holdings NV for $228 become a wholly owned sub- weekly free community news- rose 28 percent to $879 mil- earlier. Revenue rose 40 per- July 29 at UCLA Medical million. ILFC, a unit of New sidiary. The deal is valued at papers in Pasadena and the lion. … Dole Food Co. cent to $85.7 million. … Center from complications of York insurer American Inter- more than $295 million, San Gabriel Valley, plus reported second quarter net Tetra Tech Inc. reported fis- pneumonia. He was 93. national Group Inc., said which will be split between expanded coverage for an income of $83 million, 144 cal third quarter net income of Anderson was founder of Cen- AeroTurbine of Miami will 55 percent cash and 45 per- Orange County newspaper. percent higher than a year ear- $23.8 million, about 16 per- tury City holding company enable it to get better value cent common stock. Dotomi The Los Angeles County lier. Revenue rose 10 percent cent higher than a year earlier. Topa Equities Ltd. He and from its fleet of about 1,000 has technology that enables papers, which include the to $1.9 billion. … Aecom Revenue rose 20 percent to his wife, Marion, were major planes as they age. AeroTur- retailers to identify and per- Pasadena Sun, Sunday Valley Technology Corp. reported nearly $674 million. … MPG contributors to his namesake bine provides a sales venue for sonalize their online market- Sun and Coastline Pilot in fiscal third quarter net income Office Trust Inc. reported UCLA Anderson School of parts from ILFC’s aging jets. ing messages to highest-value Laguna Beach, are designed of $73.8 million, 14 percent second quarter net income of consumers. It expects to gen- to provide more opportunities higher than a year earlier. $118 million, compared with erate more than $80 million in for local advertisers and addi- Revenue rose 22 percent to $2 a net loss of $53.5 million a labusinessjournal.com revenue this year. tional local news for Los billion. … Mercury General year earlier. Revenue fell 2 The best source for up to the minute local, national and Angeles Times subscribers. In Corp. reported second quarter percent $86.4 million. … worldwide business news. GYMS MERGE: High-end most of these markets, they’ll net income of $57.3 million, RealD Inc. reported fiscal FREE MORNING UPDATE New York fitness center chain compete with community 222 percent higher than a year first quarter net income of Equinox plans to acquire the papers owned by the Los earlier. Revenue rose 8 per- $9.6 million, 225 percent Prepared by the editors of the Los Angeles Business Journal assets of struggling L.A. com- Angeles Newspaper Group, cent to more than $706 mil- higher than a year earlier. and sent to you by e-mail every business day. Sign up now at Sports Club Co. lion. ... Health Net Inc. Revenue fell 7.7 percent to www.labusinessjournal.com petitor for an parent of the Los Angeles undisclosed amount. The deal Daily News. The papers will reported second quarter net less than $59.6 million.

Advertising Feature

Hirings, promotions and special People on the Move accomplishments in local business

DIGITAL COMMUNICATIONS ACCOUNTING REAL ESTATE To enhance Kforce welcomes Greg Symons as the Dana Brody-Thaw, a multi-family its already- new Market Manager for their Finance investment specialist with over $300 substantial and Accounting operations based million in completed transactions, online and digital in Los Angeles. He will oversee all has joined Commercial Asset Group, capabilities, recruiting and business development Inc. in Beverly Hills as Executive The Phelps activities of all personnel in this Managing Director. Previously she Group (www. location. Greg comes to the firm with was an Associate Vice President thephelpsgroup. 4 years of industry expertise all in the with Grubb & Ellis, where she was com) recently Los Angeles market. He is a graduate the firm’s leading multi-family sales hired two more Kahriman Tsui Symons of Loyola Marymount University. Brody-Thaw professional nationwide. engineers: Deniz Kahriman, online media and Dan Tsui, SEO/web analytics. Both hold master’s degrees from USC — Kahriman in engineering management, and Tsui in electrical engineering/communications sciences. Contact Rosz Murray at 323.549.5225 [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 PEOPLE LOS ANGELES BUSINESS JOURNAL 15

RINGO H.W. CHIU/LABJ Open Wide: Jay Grossman, at his Brentwood office, has several businesses, including his dental practice and a non-profit, Homeless Not Toothless.

Dr. Jay Grossman treats both Hollywood stars and destitute veterans. Did it all start Biting Down when he was fired from McDonald’s?

By ALEXA HYLAND Staff Reporter Question: How did you become a dentist So he was yelling at his manager when he said, to the stars? Jay Grossman “What part of fat and ugly don’t you get?” AY Grossman has worked on the pearly Answer: I had a nanny coming in who worked whites of such celebrities as John Tra- for the Travoltas. She liked the care and told TITLE: Founder and CEO You also worked on the homeless man volta and William H. Macy. In fact, her bosses, and then Kelly Preston came in to COMPANY: Dr. Jay Grossman & Associates who became famous because of his Grossman’s dental practice is so star- interview me and I’ve been taking care of them “golden voice,” Ted Williams? J BORN: New York; 1963 studded that the National Enquirers and TMZs ever since. They’ve been very generous with I get a phone call from Dr. Phil and he said, “I of the world often call his office looking for referrals in the celebrity community. EDUCATION: D.D.S., New York University. have a favor to ask. I’m flying Ted in to inter- dirt – the calls don’t get returned, of course. view and his teeth are a mess.” So Dr. Phil Grossman, 48, may now be the dentist to the Who are some of your other celebrity CAREER TURNING POINT: Starting his sends him in and he was in there for hours and stars, but he didn’t spend his youth around the clients? non-profit, Homeless Not Toothless. I said, “It looks like it’s been a while since rich and famous. He grew up in a 900-square- William H. Macy; his wife, Felicity Huffman; MOST INFLUENTIAL PEOPLE: Peter J. you’ve been to the dentist.” And he goes, “I foot house on Long Island with a salesman Sharon Stone. Daniels, Australian businessman and life don’t know, 20 years.” And I’m looking at his father and homemaker mother who often coach. Dentists Charlie Pillar and Mike mouth and his teeth look like a piece of dyna- argued about money problems. At 10, Gross- Any good stories about them? Leiman, early mentors. mite went off, they are black and broken. man decided he wanted to drive a Cadillac and The first time I met Bill Macy, it was about live in a nice house – like his dentist did. He 10 years ago or so. He was referred by his PERSONAL: Lives in Monte Nido with wife Did you treat him? graduated from the New York University Col- wife, who was a patient of mine at the time. of 24 years, Briar. Couple has adult son and Four hours into it I said, “Ted, are you ready to lege of Dentistry, then moved to California in I’m waiting in the celebrity suite and I hear daughter and one teen-age son. get started (with intensive work)?” He goes, the late 1980s with his wife and baby daughter. Bill outside yelling on the phone, the halls ACTIVITIES: Skiing, playing saxophone. “I’m pretty tired. Can we do this tomorrow?” After two years in the Navy, Grossman started were shaking. As he puts his hand on the The next day I get a call from Dr. Phil and he his own practice in Brentwood. That was 1991, doorknob to open it up, he says, “What part said. “I’d like you to come on the show, Ted has and he has since built it to more than 11,400 of fat and ugly don’t you get?” And he slams he goes, “Let me explain something to you. checked into rehab.” I have not seen him since. patients. Grossman recently sat down with the the phone shut. And just like the great actor When my wife and I met, we decided how Business Journal at his home in the Santa he is, he turns to me and goes, “William H. great would it be to have a relationship where I imagine that tabloids call asking about Monica Mountains between Malibu and Cal- Macy, I’m here for my appointment with Dr. we actually love each other and don’t sleep your clients? abasas – where he parks his Maserati in the Grossman.” with everything that moves because that’s what I get calls all the time, especially when the Tra- driveway and takes care of his chickens in a Hollywood does.” So they decided that their voltas lost their son because he was my patient backyard coop – to talk about his childhood, a How did you react? house help and personal assistants would be for quite some time. I don’t take the calls and I car accident that left him homebound for I go, “I just heard a conversation that was a lit- gay or fat and ugly. So he had called his man- don’t return the calls. Every now and then months and what it’s like to have William H. tle loud and I want to make sure you are in a ager because he needed an assistant, and they Macy as a patient. good space to get your dental work done.” So sent last month’s Penthouse pet of the month. Please see page 16 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

16 LOS ANGELES BUSINESS JOURNAL PEOPLE AUGUST 8, 2011

Continued from page 15

somebody gets through and I say, “Do you really expect to get something out of me? Do you really think a word in your magazine would be worth losing all of my other clients.”

When did you realize you wanted to be a dentist? I was 10 years old.

What sparked your interest in dentistry? Our family dentist, Mike, was about an hour away because it was my mom’s best friend, and we went to him because we didn’t have the money to go to the guy around the corner. I remember when we were walking down the street to his office and everybody was saying hello to him and calling him Dr. Mike, not his last name but his first name. And he had a com- fortable lifestyle. He had enough money that he got a new car every five years, a Cadillac.

Where did you grow up? Long Island. I was raised in a very white town an hour from New York City called Plainview. I was raised in a 900-square-foot house. The house was in a nice neighborhood, but it was probably the smallest house in the neighborhood.

What did your parents do? RINGO H.W. CHIU/LABJ My mom was a stay-at-home mom, which I Tooth Time: Grossman discusses dental treatment with a patient at his Brentwood practice. really give her a lot of credit for because she’s a brilliant woman. My father had one job his entire Where you entrepreneurial growing up? Big Macs on my tray and a bag of fries. My said, “Grossman why don’t you clock out.” I life, it had no bells or whistles or glory to it. He I had a paper route when I was 10. I was work- manager says, “Grossman, come here.” go, “For the day?” He said, “No, forever.” was a salesman for an electronics corporation. ing at McDonald’s in 10th grade. Did you get in trouble? How did that influence you? It sounds like your family was middle class. What was working at McDonald’s like? He said, “What are you doing?” I said, “I’m on I got fired from McDonald’s because the boss My parents were lower middle class. Recently, They have a policy that once you cook food, it my break.” I showed him the time stamp, the was an idiot and didn’t know how to take care I had a conversation with my father asking him can stay in the warming bin for nine minutes food was 11 minutes old. The next day there’s of his employees. I remember saying to myself, why he wasn’t more entrepreneurial and he and then it gets thrown away. If you were a note above the time clock, “New policy, “I will never work for somebody and I will treat said it was the perfect job because it guaran- working a four-hour shift, you got a meal $3.50 limit on food.” I said, “What do you my staff with respect and honor and perks.” teed no traveling and it was 9 to 5. He was break and you could eat any item that was over want me to do with all the food that’s old?” He home every day for breakfast and dinner and nine minutes old. So new management comes said, “Throw it away.” I go, “You would rather How did you end up in Los Angeles? he could give use a bath every night. in, and I’m on my break and I put six or seven throw it away than feed your employees?” He I moved out here with my wife, a 3-week-old

CALL FOR NOMINATIONS

The role of in-house counsel has never been more important or more visible as companies face increasingly complex legal and regulatory challenges. The Los Angeles Business Journal would like to acknowledge the signiﬁcant role that in-house counsel plays in the success of a business enterprise and recognize the accomplishments of leading in-house attorneys within the Los Angeles business community. Candidates in each category will be recognized for exceptional legal skill and achievement across the full spectrum of in-house responsibility, exemplary leadership as evidenced by the highest professional and ethical standards, and for contributions to the Los Angeles community at large.

Nomination Deadline: Luncheon & Awards Ceremony: Friday, September 16, 2011 October 25, 2011 11:00 a.m. - 1:30 p.m. Awards will be presented in the following categories: Millennium Biltmore Hotel • Public Company 506 S. Grand Ave., Los Angeles, CA 90071 • Private Company • Nonproﬁt Company • Government/Municipal/Public Sector PRESENTING SPONSOR: PLATINUM SPONSOR: GOLD SPONSOR: • Rising Star Dykema

To register to attend this event please visit www.labusinessjournal.com/bizevents, or contact Marissa De La Cruz at 323.549.5225 ext. 213 email: [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 PEOPLE LOS ANGELES BUSINESS JOURNAL 17

Left: Grossman, second from left, with his wife and children in May at the Beverly Hills Hotel. Center: With actress Sharon Stone, a patient, who presented him with an award at a North Hollywood event in June. Right: Grossman with his late grandmother, two children and his wife.

baby and no license. I moved in with my in- with a sign that says, “Veteran, will work for there’s a TV playing information about prod- tion. I was on Pacific Coast Highway at a light laws and my father-in-law said, “I think it’s food.” So one day I drove by and handed him a ucts and services and photos introducing the and somebody was going north in the south time to get a job.” And he mentioned the mili- dollar, the next I order a second lunch and patients to the staff and we provide that content. bound lane. I got hit at about 60 mph head on tary. He’s a doctor and he graduated medical when I drove home, I hand him some food. But in my Maserati, which was 11 days old. I’m school and went into the Air Force. So I I thought, “This isn’t making a difference.” Who has been the most influential person glad to be on this side of the dirt. I was uncon- decided to go with the Navy because they in your life? scious, my colon was perforated and they had have nicer uniforms. Have you ever seen their What did you do? Peter J. Daniels. He’s an Australian billionaire to operate and put that back in, my nose was dress whites? They are smoking hot. That was One day I handed him my business card and I who gave me some private coaching sessions. broken and my ribs were busted. I took months the main reason and the second reason is that said, “I just opened my practice down the In his lifetime, he met Martin Luther King Jr. off of work and that was painful not being in you are guaranteed a location on the beach. street, I’ve got tons of time and no patients.” I and Gandhi and he asked them each if they there. My patients were worried and con- said, “Why don’t you come in and see me and could redo their lives, what would they do dif- cerned, and I was worried about the practice. And then? I’ll fix your teeth. And I need you to show me ferently. They both said they would have I got out of the Navy in 1991 and I opened my you are 90 days sober so I need you to go to an dreamt bigger. So he turns to me and says, How did the accident impact your family? practice in Brentwood. I built my practice A.A. program and bring me a 90-day chip and “What are you going to do with your life?” It was really trying on them because for months I through every technique known to mankind. I I’m going to set you up with a work program.” was not functioning at all. I needed around-the- did mailers, I did coupons, I hired staff to walk What was a turning point in your career? clock care and I had no short-term memory. They around with brochures and I did a lot of internal What are your other businesses? Starting my non-profit. I find that as my non- would keep asking me the same questions over marketing. I have 11,420 patients right now. A property management company that man- profit has gained momentum and popularity, and over again and wondering why I was not ages my personal real estate investments, which my practices has taken off. I think that most remembering. I got scared because my photo- Tell me about your charity, Homeless Not my wife and I have made over the last 20 years. people who really love what they do would do graphic memory was something that I relied on. Toothless. I have a business where I provide expert wit- it for free if they could, but everybody has bills My practice is on San Vicente and Bundy and ness testimony for dental malpractice cases. to pay. So for me, it’s the perfect combination. Did you see your life flash before your eyes? the VA is on San Vicente and Wilshire. It’s That takes up almost all Fridays, I’m either in I wasn’t sure for quite some time whether I walking distance. So I used to live in Westch- trial or depositions or prepping for a case. I What has been a life-changing moment? was alive or not, it was a near-death experi- ester and I would drive by the VA everyday founded a company called Waiting Room The- I had a horrible car accident a few months ago ence. It took me months to get past the trauma and there’s always a different guy on the corner ater. When you walk into a dentist office, and I’m just coming out of a lot of rehabilita- of dealing with the fact that I lived through it. 6,109 3,503 2,027 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page 1,959 1,647 18 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011

X NEXT WEEK TELECOMMUNICATION FIRMS The 100 Largest Women-Owned THE LIST Ranked by L.A. County employees Businesses in L.A. County

X EXECUTIVE SUMMARY X THE TRENDS X THE PACESETTER

HE 20 largest telecommunications T&T Inc. maintains its rank as the service companies operating in Los More Cells largest telecom service company T Angeles County employ 15,500 The number of wireless subscribers in the United States continues to grow. A ranked by employees working in people locally. That’s up slightly from a year Los Angeles County. The Dallas telecom ago. 300 giant has more than 8,000 employees locally Telecom service companies offer a wide (in millions) and 260,000 employees worldwide. range of services, including landline phone, 250 AT&T services include wireless and Internet and television. Some companies, 200 landline communication. The biggest such as Platinum Wireless in Los Angeles, trend in telephone technology has been the provide wireless phone devices and acces- 150 increased number of users of smart phones sories. 100 – devices that provide Internet access in The four largest companies are national addition to phone service. AT&T has been companies that have large local operations. 50 the only authorized carrier of Apple’s iPhone Andy Shibley The list is ranked by local employment. 0 smartphone since its debut nearly five years Fourteen of the remaining companies are 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ago. In its most recent quarterly report, the company said 70 percent smaller, local telecom service companies. of new phones sold to wireless subscribers are a type of smart phone Morrow-Meadows Corp. in City of device. Industry ranks No. 5 with 583 local employ- Over the past few years, wireless data usage such as text messag- ees. The woman-owned business provides Tick Tock ing and Internet access has grown exponentially on AT&T’s network. electrical contracting services and has 1,368 Average minutes of use per month per wireless subscriber. As a result, the company has been investing millions of dollars in its employees in nine total offices. infrastructure throughout the Los Angeles area in an effort to add cell Other mid-sized companies that have at 800 phone towers. least 300 employees locally include TelePa- 700 In addition to phone and Internet service, Los Angeles is one of the cific Communications and CSI Electrical 600 markets where AT&T offers its U-verse television service. It began Contractors. offering the service locally five years ago. Nationwide, U-verse has 3.4 Among companies that reported nearly 500 million subscribers, up from 2.5 million last year. 300 employees are J2 Global Communica- 400 – David Nusbaum tions Inc. (298 local employees) and Superior 300 Communications Inc. (293 local employees). 200 – David Nusbaum 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Federal Communications Commission

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AUGUST 8, 2011 THE LIST LOS ANGELES BUSINESS JOURNAL 19

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20 LOS ANGELES BUSINESS JOURNAL INVESTMENTS & FINANCE AUGUST 8, 2011

THE LABJ STOCK INDEX TRACKING LOS ANGELES AREA COMPANIES

WEEKLY TOP GAINERS WEEKLY TOP LOSERS

Meruelo Maddux Properties Inc. Stamps.com Inc. THQ Inc. RealD Inc. $6 $20 $8 $35 Aug. 3, 2011 $17.57 Aug. 3, 2010 $19.67 5 Aug. 3, 2011 7 Aug. 3, 2010 $5.00 18 Aug. 3, 2010 $4.60 30 $10.84 4 6 16 25 Aug. 3, 2010 3 $1.15 5

14 20 2 4

Aug. 3, 2011 12 15 1 3 Aug. 3, 2011 $14.24 $2.46 0 10 2 10 8/10 10/10 12/10 2/11 4/11 6/11 8/11 8/10 10/10 12/10 2/11 4/11 6/11 8/11 8/10 10/10 12/10 2/11 4/11 6/11 8/11 8/10 10/10 12/10 2/11 4/11 6/11 8/11

TOP TEN LOCAL GAINERS BY PERCENTAGE (with closing prices at least $1) TOP TEN LOCAL LOSERS BY PERCENTAGE (with opening prices at least $1) Aug. 3 July 27 Price 1-Wk 52-Wk Aug. 3 July 27 Price 1-Wk 52-Wk Company Close Close Change % Chg. % Chg. Company Close Close Change % Chg. % Chg. Meruelo Maddux Properties Inc...... $5.00 $2.60 $2.40 92.3% 334.8% THQ Inc...... $2.46 $3.20 -$0.74 -23.1% -46.5% Stamps.com Inc...... 17.57 13.78 3.79 27.5% 86.8% RealD Inc...... 14.24 17.90 -3.66 -20.4% -27.6% NCAL Bancorp ...... 9.00 7.25 1.75 24.1% -12.6% Molina Healthcare Inc...... 19.57 23.38 -3.81 -16.3% -5.4% AML Communications Inc...... 2.95 2.45 0.50 20.4% 85.5% Physicians Formula Holdings Inc...... 3.22 3.82 -0.60 -15.7% -13.0% True Religion Apparel Inc...... 33.56 28.41 5.15 18.1% 42.1% Demand Media Inc...... 9.08 10.69 -1.61 -15.1% NA Mission Valley Bancorp ...... 4.75 4.03 0.72 17.9% 13.1% IPC The Hospitalist Co Inc...... 43.45 49.87 -6.42 -12.9% 67.1% Staar Surgical Co...... 5.71 4.86 0.85 17.5% -4.7% Pacific Office Properties Trust Inc...... 1.57 1.80 -0.23 -12.8% -68.6% Skechers U.S.A. Inc...... 16.04 14.30 1.74 12.2% -52.0% CB Richard Ellis Group Inc...... 20.49 22.92 -2.43 -10.6% 20.7% j2 Global Communications Inc...... 30.28 27.26 3.02 11.1% 22.5% MannKind Corp...... 2.97 3.31 -0.34 -10.3% -56.7% Tix Corp...... 2.02 1.86 0.16 8.6% 108.2% DineEquity Inc...... 46.86 51.89 -5.03 -9.7% 30.3%

MARKET DIARY MARKET INDEXES Despite a resolution to the tortuous negotiations to raise the debt ceiling, renewed concerns over the nation’s long-term eco- Aug. 3 July 27 Point 1-Wk 52-Wk nomic outlook rattled investors during the week ended Aug. 3. The Dow Jones industrial average fell more than 3 percent. The Index Close Close Change % Chg. % Chg. LABJ Index fared even worse, falling more than 4 percent as 108 stocks declined and 55 advanced. Video-game publisher THQ Dow Jones Industrial ...... 11,896.44 12,302.55 -406.11 -3.3% 11.8% Inc. was the biggest local loser after reporting a disappointing first quarter loss. Shares of the Agoura Hills company fell more than 23 percent to $2.46. A weak first quarter earnings report also hurt RealD Inc., a Beverly Hills maker of 3-D theater projec- NASDAQ ...... 2,693.07 2,764.79 -71.72 -2.6% 17.9% tion equipment. Shares declined more than 20 percent to $14.24. Stamps.com Inc., an L.A. company providing Internet-based S&P 500 ...... 1,260.34 1,304.89 -44.55 -3.4% 12.5% postage, bucked the trend, reporting better-than-expected quarterly earnings. Shares rose more than 27 percent to $17.57. LABJ Index ...... 118.34 123.71 -5.37 -4.3% 0.0%

MARKET SUMMARY DIVIDEND YIELD MOST ACTIVE STOCKS VOLUME WEEKLY SUMMARY Company Dividend Yield Dividend Weekly Close Walt Disney Co...... 12,593,461 Advances ...... 55 Scope Industries ...... 25.3% $66.00 $261.00 CB Richard Ellis Group Inc...... 8,192,942 Declines ...... 108 Anworth Mortgage Asset Corp...... 13.4% $0.95 $7.11 Amgen Inc...... 8,026,895 Unchanged ...... 17 Stamps.com Inc...... 11.4% $2.00 $17.57 Activision Blizzard Inc...... 7,473,405 New Highs ...... 11 PennyMac Mortgage Investment Trust ...... 10.0% $1.61 $16.19 CytRx Corp...... 7,211,270 New Lows ...... 22 BreitBurn Energy Partners LP ...... 8.4% $1.60 $19.11

LABJ INDEX

LABJ Index, 52 weeks LABJ Index v. S&P 500, 5 days LABJ Index v. S&P 500, 52 weeks 150 1% 25%

0 20 -1 SP 500 15 -2 LABJ Index

-3 10 120 -4 5 Aug. 3, 2011 -5 118.34 SP 500 0 -6 LABJ Index -7 -5

90 -8 -10 A S O N D J F M A M J J A 7/28 7/29 8/1 8/2 8/3 A S O N D J F M A M J J A

Note: The LABJ Stock Index includes all companies on the opposite page and is weighted by market cap.

For more information please contact: Data provided by Bloomberg, a source considered to be reliable. However, the information in this feature may not be complete James Hillman, Managing Director (213) 553-9748 and cannot be guaranteed. The information provided in this feature does not constitute the provision of investment advice. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 INVESTMENTS & FINANCE LOS ANGELES BUSINESS JOURNAL 21

THE LABJ STOCK INDEX TRACKING LOS ANGELES AREA COMPANIES TOP GAINERS TOP LOSERS Company Aug. 3 1-Wk YTD 52-Wk P.E. Mkt. Cap Company Aug. 3 1-Wk YTD 52-Wk P.E. Mkt. Cap Name Ticker Close % Chg % Chg % Chg Ratio (millions) Name Ticker Close % Chg % Chg % Chg Ratio (millions)

AEROSPACE/DEFENSE RadNet Inc. RDNT $3.27 -5.2% 16.0% 59.5% NA $122.0 Aerovironment Inc. AVAV $29.87 3.4% 11.3% 25.8% 25.8 $658.9 VCA Antech Inc. (L) WOOF 18.62 -7.3% -20.1% -9.3% 13.2 1,609.2 AML Communications Inc. (H) AMLJ 2.95 20.4% 120.1% 85.5% 26.8 31.7 INSURANCE Ducommun Inc. DCO 21.30 -1.4% -2.2% 3.4% 13.7 224.4 Mercury General Corp. (L) MCY 37.67 0.6% -12.4% -8.5% 18.2 2,065.3 Flamemaster Corp. FAME 4.05 0.0% -17.3% 1.3% 8.7 5.1 Unico American Corp. (H) UNAM 10.60 2.5% 16.0% 21.0% 19.3 56.5 Northrop Grumman Corp. NOC 57.11 -8.9% -2.8% 6.8% 8.8 15,879.8 INTERNET Teledyne Technologies Inc. (H) TDY 52.99 7.4% 20.5% 27.1% 15.0 1,946.2 Bidz.com Inc. BIDZ 0.99 4.2% -18.4% -33.6% NA 19.2 APPAREL Boingo Wireless Inc. WIFI 9.46 7.5% NA NA NA 313.2 American Apparel Inc. APP 1.01 -1.9% -39.2% -32.2% NA 83.6 CrowdGather Inc. CRWG 0.63 53.6% -59.9% -37.6% NA 36.9 Cherokee Inc. (L) CHKE 15.11 -5.9% -19.7% -21.5% 16.4 128.5 J2 Global Communications Inc. (H) JCOM 30.28 11.1% 4.6% 22.5% 12.9 1,392.4 Guess? Inc. GES 37.60 -2.1% -20.5% 10.2% 12.6 3,481.5 ReachLocal Inc. RLOC 17.87 -2.5% -10.2% 27.6% NA 521.6 Hot Topic Inc. HOTT 7.47 1.6% 18.8% 39.4% 124.5 334.3 Spark Networks Inc. (H) LOV 3.68 4.2% 23.9% 11.2% 28.3 75.8 Joe's Jeans Inc. JOEZ 0.80 -1.2% -48.6% -58.8% 26.7 51.9 Stamps.com Inc. (H) STMP 17.57 27.5% 32.6% 86.8% 22.8 251.9 K-Swiss Inc. KSWS 10.23 -4.1% -18.0% -12.1% NA 361.9 United Online Inc. UNTD 5.78 -4.0% -12.4% -9.0% 7.5 512.3 People's Liberation Inc. PPLB 0.10 -9.1% -9.1% -9.1% NA 3.6 ValueClick Inc. VCLK 16.52 -7.2% 3.1% 48.2% 14.8 1,299.8 Skechers U.S.A. Inc. SKX 16.04 12.2% -19.8% -52.0% 37.3 798.7 MANUFACTURING True Religion Apparel Inc. (H) TRLG 33.56 18.1% 50.8% 42.1% 17.7 864.2 Avery Dennison Corp. (L) AVY 29.99 -5.2% -29.2% -18.0% 10.0 3,205.2 AUTOMOTIVE/PLASTICS/METALS BioSolar Inc. (L)(H)(S) BSRCD 4.00 2.6% 38.9% -21.6% NA 21.4 Motorcar Parts of America Inc. MPAA 12.68 -5.3% -2.8% 96.6% 12.2 157.9 Cereplast Inc. CERP 4.08 -8.9% -1.4% 27.5% NA 64.3 Reliance Steel & Aluminum Co. RS 45.65 -3.3% -10.7% 13.3% 12.3 3,415.6 Dole Food Co Inc. DOLE 13.60 0.7% 0.7% 24.4% 151.1 1,204.6 Superior Industries International Inc. SUP 19.55 -2.8% -7.9% 34.9% 9.7 527.2 Ever-Glory International Group Inc. EVK 1.98 2.5% -6.2% -28.3% 3.7 29.2 US Auto Parts Network Inc. PRTS 7.22 1.1% -14.0% -8.3% 72.2 220.5 Farmer Bros Co. FARM 7.95 2.7% -55.3% -53.0% NA 128.8 BIOMEDICAL/PHARMACEUTICAL Jakks Pacific Inc. JAKK 16.95 -3.3% -7.0% 6.5% 17.1 461.0 Amgen Inc. AMGN 53.32 -0.9% -2.9% -2.5% 11.1 49,573.2 Mattel Inc. MAT 25.73 -3.7% 1.2% 21.5% 13.6 8,822.6 Arrowhead Research Corp. ARWR 0.53 3.9% -40.8% -52.3% NA 38.1 OSI Systems Inc. OSIS 38.99 -6.5% 7.2% 39.7% 23.9 742.8 CytRx Corp. (L) CYTR 0.43 5.9% -57.5% -53.9% NA 63.9 Overhill Farms Inc. OFI 5.18 -0.2% -10.1% -1.3% 15.7 82.0 Iris International Inc. IRIS 10.18 1.8% -0.5% 9.8% 66.1 181.2 Reed's Inc. REED 1.96 1.6% -2.5% -8.0% NA 21.2 MannKind Corp. (L) MNKD 2.97 -10.3% -63.2% -56.7% NA 388.1 Virco Manufacturing (L) VIRC 2.44 -7.3% -7.6% -13.5% NA 34.7 Obagi Medical Products Inc. OMPI 10.44 1.9% -9.6% -10.5% 15.1 193.1 MEDIA/LEISURE/ENTERTAINMENT Oxis International Inc. OXIS 0.08 -19.2% -44.8% -20.0% NA 15.3 Crown Media Holdings Inc. (L) CRWN 1.64 -7.9% -37.4% -21.2% 16.4 589.9 Physicians Formula Holdings Inc. FACE 3.22 -15.7% -14.4% -13.0% 161.0 43.8 Daily Journal Corp. DJCO 69.81 -0.9% -3.0% -1.3% 12.2 96.4 Response Genetics Inc. RGDX 2.60 -4.4% 4.8% -13.3% NA 47.7 Demand Media Inc. (L) DMD 9.08 -15.1% NA NA NA 755.5 Staar Surgical Co. STAA 5.71 17.5% -6.4% -4.7% NA 202.9 Derycz Scientific Inc. DYSC 2.90 -1.7% 9.4% 218.7% NA 48.8 COMPUTERS/PERIPHERALS/ELECTRONICS DirecTV DTV 49.47 -3.8% 23.9% 32.8% 18.2 37,982.3 Aura Systems Inc. AUSI 0.69 -2.8% -8.0% -1.4% NA 46.0 DreamWorks Animation SKG Inc. DWA 20.95 -5.1% -28.9% -34.3% 4.1 1,749.4 International Rectifier Corp. IRF 24.54 -7.5% -17.3% 24.5% 12.9 1,711.9 DTS Inc. (L) DTSI 33.47 -5.4% -31.8% -9.5% 34.9 582.4 Ixia (L) XXIA 9.55 -5.0% -43.1% -13.3% 39.8 656.1 Entravision Communications Corp. EVC 1.86 0.0% -27.6% -16.6% 37.2 158.9 MRV Communications Inc. MRVC 1.42 2.2% -20.7% 10.1% 20.3 223.6 Image Entertainment Inc. DISK 0.15 0.0% 7.1% -25.0% NA 38.3 PC Mall Inc. MALL 8.00 0.0% 5.7% 85.2% 11.8 99.2 Lions Gate Entertainment Corp. LGF 7.05 0.3% 8.3% 7.5% NA 966.8 Power-One Inc. (L) PWER 7.34 3.7% -28.0% -39.1% 5.9 760.6 Live Nation Entertainment Inc. LYV 10.66 -4.1% -6.7% 11.2% NA 1,938.6 Qualstar Corp. QBAK 1.80 -2.7% 6.5% 7.1% NA 22.1 NeuMedia Inc. MNDL 0.72 -7.9% 148.3% 105.7% NA 30.0 Semtech Corp. SMTC 22.52 -6.3% -0.5% 27.8% 17.2 1,472.1 Point.360 PTSX 0.65 -2.3% -26.1% -60.6% NA 7.0 Taitron Components Inc. TAIT 1.04 -5.5% -34.2% 4.0% NA 5.8 Provision Holding Inc. PVHO 0.04 4.8% -26.7% -12.0% NA 2.0 Trio Tech International TRT 3.49 -6.2% -16.3% -12.8% 15.2 11.6 Reading International Inc. RDI 4.18 -3.2% -17.2% -9.5% NA 99.5 Vitesse Semiconductor Corp. VTSS 3.49 -4.4% -16.7% -35.4% 3.4 85.3 RealD Inc. (L) RLD 14.24 -20.4% -45.1% -27.6% NA 771.9 CONSTRUCTION/ENGINEERING Salem Communications Corp. SALM 3.15 -3.1% -0.6% -6.3% 28.6 76.4 Aecom Technology Corp. ACM 23.72 -6.0% -15.2% -5.7% 11.2 2,827.4 Sports Club Inc. SCYL 0.15 0.0% -40.0% -51.6% NA 3.2 Ameron International Corp. AMN 85.04 0.1% 11.4% 41.4% 100.0 771.2 Stratus Media Group Inc. SMDI 0.55 -8.3% -14.1% -51.8% NA 35.3 Jacobs Engineering Group Inc. JEC 38.08 -4.4% -16.9% 2.3% 14.9 4,857.2 Tix Corp. (H) TIXC 2.02 8.6% 62.9% 108.2% 11.9 62.9 KB Home (L) KBH 8.01 -7.5% -40.6% -29.3% NA 616.8 Walt Disney Co. DIS 37.43 -5.3% -0.2% 9.4% 16.3 70,748.5 Ryland Group Inc. (L) RYL 13.91 -7.1% -18.3% -14.8% NA 617.3 MISC. SERVICES Tetra Tech Inc. TTEK 20.78 -5.5% -17.1% -2.2% 15.7 1,295.5 Air Lease Corp. AL 23.37 -5.5% NA NA NA 2,342.1 Tutor Perini Corp. (L) TPC 14.94 -5.5% -30.2% -19.4% 8.1 704.0 Cadiz Inc. CDZI 10.25 -5.4% -17.6% -20.0% NA 141.7 ENERGY/UTILITIES Electro Rent Corp. ELRC 15.78 -1.7% -2.4% 12.7% 18.8 378.4 American States Water Co. AWR 34.26 1.1% -0.6% -4.1% 16.5 639.4 Enova Systems Inc. ENA 0.74 -2.0% -41.9% -19.9% NA 23.5 BNK Petroleum Inc. BNKPF 4.34 -5.3% 26.5% 109.6% NA NA Korn/Ferry International KFY 20.11 -6.4% -13.0% 38.3% 15.5 946.8 BreitBurn Energy Partners LP BBEP 19.11 0.0% -5.1% 17.3% 40.7 1,128.3 National Technical Systems Inc. NTSC 5.83 -1.9% -27.8% -31.7% 58.3 59.8 Capstone Turbine Corp. CPST 1.39 -6.7% 44.8% 43.7% NA 360.4 NetSol Technologies Inc. NTWK 0.85 2.7% -54.4% -2.0% 4.7 47.2 Edison International EIX 36.88 -5.1% -4.5% 9.2% 11.2 12,015.9 On Assignment Inc. ASGN 10.09 -1.5% 23.8% 86.2% 72.1 373.0 Occidental Petroleum Corp. OXY 94.23 -7.1% -3.9% 19.8% 13.1 76,597.2 Rentech Inc. RTK 0.98 0.9% -19.6% -0.2% NA 218.5 U.S. China Mining Group Inc. SGZH 2.85 3.6% -55.2% -39.7% 3.0 53.9 Scope Industries SCPJ 261.00 0.0% 102.3% 102.3% 80.8 260.7 FINANCIAL SERVICES UTi Worldwide Inc. UTIW 15.59 -6.4% -26.5% 5.6% 22.3 1,600.3 1st Century Bancshares Inc. FCTY 3.76 3.6% -8.3% 17.1% NA 35.0 REAL ESTATE American Business Bank AMBZ 23.50 0.0% 5.5% 8.2% 11.1 102.7 Alexandria Real Estate Equities Inc. ARE 76.57 -6.8% 4.5% 6.3% 25.6 4,729.2 Anworth Mortgage Asset Corp. ANH 7.11 1.7% 1.6% 1.7% 8.1 899.7 CB Richard Ellis Group Inc. CBG 20.49 -10.6% 0.0% 20.7% 24.7 6,659.0 Bank of Santa Clarita BSCA 7.55 4.1% 8.6% 20.6% 62.9 16.6 Douglas Emmett Inc. DEI 18.96 -4.1% 14.2% 16.2% NA 2,359.0 Beach Business Bank BBBC 6.05 0.8% 21.0% 21.0% NA 24.5 HCP Inc. HCP 34.46 -5.9% -6.3% -4.6% 25.3 14,031.4 Broadway Financial Corp. BYFC 2.02 -9.4% -16.9% -26.5% NA 3.5 Hudson Pacific Properties Inc. HPP 15.02 -0.8% -0.2% -10.1% NA 504.1 California United Bank CUNB 12.20 -0.4% -1.2% 10.9% NA 60.2 Intergroup Corp. INTG 24.02 -3.5% 11.2% 58.2% 6.3 57.5 Cathay General Bancorp CATY 13.81 -3.0% -17.3% 15.2% 14.4 1,085.9 Kennedy-Wilson Holdings Inc. KW 11.75 -1.4% 17.6% 18.2% NA 528.5 Center Financial Corp. CLFC 6.08 -2.7% -19.8% 17.8% 12.7 242.7 Kilroy Realty Corp. KRC 36.49 -5.8% 0.1% 10.2% 405.4 2,133.4 City National Corp. CYN 52.25 -2.1% -14.8% -9.0% 17.7 2,778.6 LTC Properties Inc. LTC 24.82 -8.3% -11.6% -3.0% 22.4 752.9 Colony Financial Inc. CLNY 17.26 -2.5% -13.8% -5.1% 11.8 565.0 Macerich Co. MAC 49.67 -6.0% 4.9% 17.4% 150.5 6,501.8 East West Bancorp Inc. EWBC 19.25 2.1% -1.5% 18.9% 13.3 2,862.8 Meruelo Maddux Properties Inc. (H)(S) MMPID 5.00 92.3% 257.1% 334.8% NA 88.1 Farmers & Merchants Bank FMBL 4250.00 0.0% 7.1% 1.8% 9.7 556.4 MPG Office Trust Inc. MPG 3.35 4.7% 21.8% 0.3% NA 164.3 First California Financial Group Inc. FCAL 3.76 -0.8% 34.3% 35.3% NA 106.8 Pacific Office Properties Trust Inc. (L) PCE 1.57 -12.8% -62.4% -68.6% NA 30.4 General Finance Corp. GFN 2.85 8.4% 43.9% 141.5% NA 62.7 Portsmouth Square Inc. PRSI 24.01 0.0% 4.4% 37.2% 6.3 17.6 Great American Group Inc. (L) GAMR 0.08 -62.4% -83.9% -91.2% NA 2.4 PS Business Parks Inc. PSB 55.85 -1.4% 0.2% -4.5% 31.6 1,380.3 Green Dot Corp. GDOT 31.38 -0.8% -44.7% -27.0% 33.4 1,554.7 Public Storage PSA 117.08 -1.8% 15.4% 15.5% 41.4 20,958.6 Hanmi Financial Corp. HAFC 1.03 0.0% -10.4% -24.8% 20.6 155.8 Kaiser Federal Financial Group Inc. KFFG 12.41 1.9% 7.2% 3.6% 13.2 118.6 Santa Fe Financial Corp. SFEF 14.75 0.0% 11.7% 25.5% 163.9 18.3 Malaga Financial Corp. (L) MLGF 14.38 -3.2% -5.7% -7.2% 7.8 83.9 Thomas Properties Group Inc. TPGI 3.10 -6.1% -26.5% -18.0% NA 157.8 Manhattan Bancorp MNHN 3.65 0.0% -29.1% -18.9% NA 14.6 RESTAURANTS/RETAIL/GROCERY Mission Valley Bancorp MVLY 4.75 17.9% 26.7% 13.1% NA 21.4 99 Cents Only Stores NDN 19.22 -2.7% 20.6% 15.6% 18.0 1,353.8 Nara Bancorp Inc. NARA 7.87 -2.2% -20.1% 9.8% 14.8 299.1 Arden Group Inc. ARDNA 90.10 0.5% 9.2% -6.2% 15.3 276.7 NCAL Bancorp NCAL 9.00 24.1% -10.0% -12.6% NA 21.2 Big 5 Sporting Goods Corp. BGFV 8.27 -1.7% -45.8% -37.3% 9.7 181.8 Pacific Commerce Bank PFCI 3.25 0.0% 8.3% -7.1% NA 7.9 Cheesecake Factory Inc. CAKE 28.30 -4.1% -7.7% 19.2% 19.0 1,634.3 PacWest Bancorp PACW 19.57 -3.3% -8.5% -7.6% 38.4 694.0 DineEquity Inc. DIN 46.86 -9.7% -5.1% 30.3% 22.9 869.4 PennyMac Mortgage Investment Trust PMT 16.19 0.9% -10.8% -2.8% 9.5 449.5 Grill Concepts Inc. GLLC 0.28 0.0% -3.4% -20.0% NA 2.5 Preferred Bank PFBC 8.59 3.9% -2.4% -7.6% NA 113.3 Jerry's Famous Deli Inc. DELI NA NA NA NA NA NA Saehan Bancorp SAEB 0.25 0.0% -35.9% -58.3% NA 47.3 Sport Chalet Inc. SPCHB 2.05 -4.7% -45.2% -11.6% NA 27.8 SearchMedia Holdings Ltd. IDI 1.90 2.2% -38.9% -36.7% NA 39.6 SOFTWARE Wilshire Bancorp Inc. WIBC 3.30 1.2% -56.7% -55.9% NA 235.3 Activision Blizzard Inc. ATVI 11.82 -0.8% -5.0% 2.5% 16.2 13,524.0 HEALTH CARE Cornerstone OnDemand Inc. CSOD 16.66 -1.2% NA NA NA 792.0 Health Net Inc. HNT 26.28 -7.9% -3.7% 6.7% 10.8 2,378.2 CyberDefender Corp. (L) CYDE 0.70 -17.5% -77.1% -79.5% NA 19.7 Herbalife Ltd. (H) HLF 61.06 7.0% 78.6% 122.3% 21.6 7,226.4 Guidance Software Inc. GUID 7.51 1.9% 4.5% 45.3% NA 190.1 Imaging3 Inc. IMGG 0.08 0.0% -47.7% -73.4% NA 30.4 Peerless Systems Corp. PRLS 3.75 -0.3% 19.0% 30.7% 19.7 13.0 IPC The Hospitalist Co Inc. IPCM 43.45 -12.9% 11.4% 67.1% 26.5 714.0 Simulations Plus Inc. SLP 3.47 3.9% 29.0% 47.7% 19.3 53.9 Molina Healthcare Inc. MOH 19.57 -16.3% 5.4% -5.4% 12.9 901.5 THQ Inc. (L) THQI 2.46 -23.1% -59.4% -46.5% NA 168.1

NOTES ON STOCK TABLES (H) Stock hit new 52-week high (L) Stock hit new 52-week low (S) Stock split during week 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

22 LOS ANGELES BUSINESS JOURNAL INVESTMENTS & FINANCE AUGUST 8, 2011

Staying Subscribe today. ECONOWATCH L.A.COUNTY As part of your subscription, you still isn’t will also receive access to %± from the daily electronic Los Angeles GENERAL INDICATORS Latest Previous previous Year %± from Business Journal, unlimited on-line period period period ago year ago an option access to our archives, Employment (000’s) (June)1 ...... 4,237.6 4,284.5 -1.1% 4,233.7 +0.1% and the Book of Lists published Unemployment (000’s) (June)1 ...... 600.2 574.0 +4.6% 601.5 -0.2% at the end of the year. Film Production Days (2nd qtr.)2 ...... 11,260 11,604 -3.0% 11,134 +1.1% Bankruptcies Chapter 7 (June) ...... 3,504 3,371 +4.0% 3,724 -5.9% Chapter 11 (June) ...... 36 46 -21.7% 30 +20.0% Call toll-free 1.800.404.5225 Trade3 Exports (mils.) (May) ...... $10,355.5 $10,397.0 -0.4% $9,270.8 +11.7% Imports (mils.) (May)...... $22,344.6 $20,031.9 +11.5% $20,273.6 +10.2% Air cargo4 LAX (June)...... 164.6 155.3 +6.0% 167.0 -1.4% Burbank (May) ...... 7.4 7.3 +1.4% 7.7 -3.9% Container volume5 (000’s) Long Beach (June) ...... 554.3 536.7 +3.3% 520.1 +6.6% Los Angeles (June)...... 640.8 692.9 -7.5% 730.3 -12.3% REAL ESTATE Los Angeles CPI (June) ...... 232.3 233.4 -0.5% 225.9 +2.8% PUBLIC AUCTION* %± from REAL ESTATE Latest Previous previous Year %± from period period period ago year ago FOR SALE Construction lending (mils.) (May) ...... $160.5 $121.9 +31.7% $111.1 +44.5% Property acquisition lending (mils.)6 (May) ...... $1,729.1 $1,698.8 +1.8% $2,226.5 -22.3% Refinance lending (mils.) (May)7 ...... $3,139.8 $3,716.4 -15.5% $3,290.7 -4.6% Approximately 107,834 Square Feet Foreclosures Number (May) ...... 2,487 2,309 +7.7% 2,942 -15.5% M-Zoned Property* Value (mils.) (May) ...... $691.7 $604.4 +14.4% $914.8 -24.4% Building contracts (mils.) at 1810 East 25th Street, Vernon, CA Residential (June) ...... $190.3 $162.6 +17.0% $174.3 +9.0% Nonresidential (June) ...... $515.9 $103.1 +400.4% $331.0 +55.9% By: Alameda Corridor Transportation Authority Building permits (mils.) Residential (June) ...... $227.4 $401.7 -43.4% $273.5 -16.9% Public Auction at 2:00 p.m., on Nonresidential (June) ...... $288.8 $290.6 -0.6% $266.4 +8.40% Housing start permits (June) ...... 541 1,567 -65.5% 716 -24.4% August 18, 2011 Home sales (June)8 ...... 3,867 4,641 +4.2% 5,710 -15.0% One Civic Plaza, Suite 350 Home prices (000’s) (June) ...... $340 $340 0.0% $350 -2.9% Condo sales (June)8 ...... 1,564 1,785 +9.5% 2,156 -9.3% Carson, CA 90745 Condo prices (000’s) (June) ...... $285 $297 -4.0% $305 -6.6% Apartments (2nd qtr.) For information and to register to bid at the Gross occupancy ...... 94.2% 93.9% +0.3% 93.9% +0.3% public auction, visit ACTA’s website at: Avg. sq. ft. rent ...... $1.90 $1.93 -1.6% $1.89 0.5% Avg. monthly rent ...... $1,643 $1,637 +0.4% $1,595 +3.0%

www.acta.org Office vacancy rates (2nd qtr.) or call Charles Fornelli at (310) 816-0460 Downtown Los Angeles ...... 15.4% 15.0% +2.7% 15.7% -1.9% San Fernando Valley ...... 17.6% 18.5% -4.9% 19.0% -7.4% The property is comprised of: West L.A...... 15.7% 16.6% -5.4% 15.4% +1.9% Parcel A = approximately 68,231 Square Feet* South Bay ...... 18.9% 19.3% -2.1% 17.8% +6.2% Parcel B = approximately 39,603 Square Feet* Countywide ...... 16.5% 16.9 -2.4% 16.6% -0.6% Industrial vacancy rates (2nd qtr.) Downtown/Central ...... 2.2% 2.1% +4.8% 2.4% -8.3% South Bay ...... 3.0% 3.1% -3.2% 2.8% +7.1% San Gabriel Valley ...... 3.5% 3.5% 0.0% 3.8% -7.9%

%± from TOURISM Latest Previous previous Year %± from month month month ago year ago Hotel occupancy rate (May) ...... 74.7% 73.9% +1.1% 70.7% +5.7% Room rate (May)...... $147.3 $149.6 -1.5% $139.5 +5.6% Passengers LAX (000’s) (June) ...... 5,631.6 5,476.2 +2.8% 5,311.4 +6.0% Burbank Airport (000’s) (May) ...... 360.3 355.7 +1.3% 383.5 -6.0%

FOOTNOTES 1. Not seasonally adjusted. 5. 20-foot equivalent unit. 2. Music, television, film and commercials quarterly. 6. Apartment and residential combined 3. Through Los Angeles Customs District. 7. Includes refinancings, second mortgages and equity mortgages 4. In thousands of tons. 8. Adjusted for selling days.

BOLDFACE INDICATES UPDATED FIGURES Sources: California State Employment Development Department (employment figures); FilmL.A. Inc. (film permits); U.S. Bankruptcy Court, Central District of Calif., Los Angeles (bankruptcies); Census.gov (exports, imports); City of * ACTA will be accepting bids for the sale of the parcels, separately or combined, on an “AS IS” condi- Los Angeles Airport Department (LAX passenger traffic and air cargo); Burbank-Glendale-Pasadena Airport Authority tion and basis with all faults pursuant to the Terms and Conditions of the Auction and the sale of the (Burbank passenger traffic and air cargo); Bureau of Labor Statistics, Los Angeles (Los Angeles consumer price Property will be subject to the terms of a Purchase and Sale Agreement and Joint Escrow Instructions, index); Office of Economic Research at California State University, HomeData (home sales, home prices, condo each of which may be obtained by contacting ACTA. ACTA makes no representations, warranties, sales, condo prices); F.W. Dodge Division, McGraw-Hill (building contracts); Construction Industry Research Board promises, covenants, agreements or guaranties of any kind or character whatsoever with respect to the (housing start permits, building permits); M/PF Research Inc. (apartments); Grubb & Ellis (office and industrial Property including, without limitation, the zoning and size of the Parcels. vacancy rates); PKF Consulting (hotel occupancy rate, room rate). – Compiled by Deniz Koray 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 DATA BANK LOS ANGELES BUSINESS JOURNAL 23

CONVENTIONS Evening With the Mayor After Hours Mixer CALENDAR Sponsor: Beverly Hills Chamber of Commerce Sponsor: Alhambra Chamber of Commerce 5:30 p.m. 5:30 p.m. • West Coast Expo Tuesday, Aug. 9 Greystone Mansion Platt College Aug. 12-14 100 S. Fremont Ave., Alhambra Alternative Project Delivery 905 Loma Vista Drive, Beverly Hills (323) 905-1306 $15 Sponsor: Southern California Development Forum $45 (626) 282-8481 7:15 a.m. (310) 248-1000 Hemp Con Luxe Hotel • Aug. 26-28 11462 Sunset Blvd., Brentwood Saturday, Aug. 20 Thursday, Aug. 25 $45 (626) 961-6522 1-Day Real Estate Boot Camp Amazing Pub Crawl (310) 422-5186 Sponsor: thinkLA Sponsor: UCLA Extension Exxxotica Expo 9 a.m. 6 p.m. • Networking Lunch 31Ten Lounge Aug. 26-28 Extension Lindbrook Center Sponsor: Long Beach Area Chamber of Commerce 3110 Main St., Santa Monica (215) 462-8800 10920 Lindbrook Drive, Westwood 11:30 a.m. $500 $165 Parkers’ Lighthouse (310) 823-7320 435 Shoreline Village Drive, Long Beach (310) 206-1555 • Senior Clean Air Fair $30 (RSVP required) Sept. 15 (562) 436-1251 Survival in a Bad Economy Friday, Aug. 26 (909) 396-2221 Sponsor: VEDC Project Management Wednesday, Aug. 10 4 p.m. Sponsor: Federal Technology Center • Wizard World Comic Con All About Business Loans 5121 Van Nuys Blvd., Van Nuys 9 a.m. Greater Lakewood Chamber of Commerce Sept. 24-25 Sponsor: VEDC $10 (646) 380-2475 4 p.m. (818) 907-9922 24 Lakewood Center Mall 5121 Van Nuys Blvd., Van Nuys Free (866) 382-7822 Fall Home and Garden Show $10 Sunday, Aug. 21 • (818) 907-9922 Sept. 30 Casino Night Saturday, Aug. 27 (800) 999-5400 Sponsor: Beverly Hills Bar Association Barristers Friday, Aug. 12 Alternative Energy in Global Business 5 p.m. Sponsor: UCLA Extension Ultimate Women’s Expo Networking Breakfast Capital Grille • Sponsor: Beverly Hills Chamber of Commerce 9 a.m. 8614 W. Beverly Blvd., Los Angeles Oct. 1-2 8 a.m. UCLA Extension Building (866) 618-3434 InterContinental Hotel $60 10995 Le Conte Ave., Westwood 2151 Avenue of the Stars, Century City (310) 601-2423 $165 $30 (310) 206-5075 • Grow (310) 248-1000 Monday, Aug. 22 Oct. 1-2 Business Technology Expo Tuesday, Aug. 30 [email protected] Tuesday, Aug. 16 Sponsor: Hispanic Engineers Business Corp. Speed Networking Jobs in Health Care 8 a.m. Sponsor: Santa Monica Chamber of Commerce • Green Festival L.A. Sponsor: Challenger Networking Group California State University, Los Angeles 5:30 p.m. Oct. 29-30 Noon Golden Eagle Conference Center 1234 6th St., Santa Monica (800) 584-7336 Zen Buffet 5151 State University Drive, Los Angeles $25 21610 Victory Blvd., Woodland Hills $25 (RSVP required) (310) 393-9825 Blogworld & New-Media Expo $11 (for lunch) (626) 683-9725 • (818) 992-4270 Nov. 2-5 (858) 366-2962 Wednesday, Aug. 17 Wednesday, Aug. 24 To be considered for publication, Calendar listings Business Plan Workshop should be submitted at least three weeks in advance Entertainment Law West Coast Franchise Expo Sponsor: Beverly Hills Chamber of Commerce of the event. Listings can be submitted by e-mail to • Sponsor: Beverly Hills Bar Association Nov. 4-6 5:30 p.m. [email protected] or by mail to: Noon (201) 881-1658 Lawry’s Mercedes-Benz of Beverly Hills Los Angeles Business Journal 100 N. La Cienega Blvd., Beverly Hills 9250 Beverly Blvd., Beverly Hills Calendar $125 $25 5700 Wilshire Blvd. #170 (310) 601-2423 (310) 248-1000 Los Angeles, CA 90036 L.A. Convention Center, (213) 741-1151, ext. 5340

Chapter: 7 L.A. 90016 Onyx Development LLC Assets: N/A BANKRUPTCIES Assets: $1,668,456 Chapter: 11 (Single-asset real estate) Debts: N/A Debts: $2,393,314 Assets: N/A 5632 Van Nuys Blvd., #234 Doc# LA11-39429-EC Bardi Properties LLC Doc# LA11-38776-BR Debts: N/A Van Nuys 91401 File-Date: 07/08/11 (Business type N/A) File-Date: 07/05/11 Doc# LA11-39225-BB Chapter: 7 Blake Lindemann 23278 Park Basilico Daren M. Schlecter File-Date: 07/07/11 Assets: N/A 310-279-5269 Calabasas 91302 310-553-5747 M. Jonathan Hayes Debts: N/A Chapter: 7 818-882-5600 Doc# SV11-18217-AA Montana Media Inc. Assets: N/A Living in Lugano LLC File-Date: 07/07/11 (Media buying agent) (Single-asset real estate) 11601 Wilshire Blvd., #500 Debts: N/A Colmaco Inc. Pro-per. Doc# SV11-18061-VK 2800 Olympic Blvd., 2nd Floor DBA: Cerritos Izusu Suzuki L.A. 90025 Santa Monica 90404 Chapter: 7 File-Date: 07/01/11 (Dealership) Santa Clarita Salsa LLC Stephen L. Burton Chapter: 7 10944 S St Assets: $3,551 Assets: $42,500 DBA: La Salsa Debts: $458,976 818-501-5055 Cerritos 90703 (Business type N/A) Debts: $103,000 Chapter: 7 Doc# LA11-39465-BR 25512 Chase Ave. Doc# LA11-38908-EC Assets: $0 File-Date: 07/08/11 MMK Investments LP Stevenson Ranch 91381 File-Date: 07/05/11 Debts: $2,551,644 Henry Glowa DBA: Highland Hills Apartments Chapter: 7 (Single-asset real estate) James R. Selth Doc# LA11-39070-EC 323-525-2700 Assets: 0 P.O. Box 3770 310-207-1494 File-Date: 07/06/11 Debts: $122,239 Beverly Hills 90212 Bryan T. Gonzales Edward Transit Express Inc. Diamond Jewelry Inc. Doc# LA11-39360-BB (Freight-forwarder) Chapter: 11 323-540-0999 (Business type N/A) File-Date: 07/08/11 1448 S. Santa Fe Ave. Assets: $2,000,001 6320 Canoga Ave., 15th Floor Compton 90221 Debts: $1,416,149 Melange LA Inc. Samuel Price Woodland Hills 91367 Chapter: 7 Doc# LA11-38680-RN DBA: Minx Restaurant and Lounge 661-290-2991 Chapter: 7 Assets: $200 File-Date: 07/02/11 (Restaurant) Assets: N/A 300 Harvey Drive Cobalis Corp. Debts: $372,800 Charles Shamash Debts: N/A Doc# LA11-39550-BR 310-205-3400 Glendale 91205 (Business type N/A) Doc# SV11-18114-AA Chapter: 7 14462 Allegen St. File-Date: 07/11/11 File-Date: 07/05/11 Assets: $39,000 Whittier 90604 Chris Gautschi Farmer’s Direct LLC Kenneth Jay Schwartz Debts: $699,132 Chapter: 11 949-294-5497 DBA: Farmers Choice 818-226-1205 (Business type N/A) Doc# LA11-39076-PC File-Date: 07/06/11 5625 Windsor Way, #208 Troy Builders Investment Trust Henrik Mosesi Bankruptcy information is supplied by Timely Info of Los Angeles, Jack Vaughn (323) 664-4423. Culver City 90230 (Business type N/A) 818-433-7590 Chapter 7: a “straight” liquidation bankruptcy involving an appointed trustee to sell all assets by Chapter: 7 6644 Balboa Ave. auction or other means to pay creditors and trustee fees. Assets: $6,940 Van Nuys 91406 Chapter 11: a process which allows a business to gain temporary relief from paying debt in order to Debts: $255,157 Chapter: 7 VG Properties Inc. attempt a successful reorganization. The debtor remains in control of the business during the bank- Doc# LA11-38707-PC Assets: N/A (Business type N/A) ruptcy and the business continues to function. File-Date: 07/05/11 Debts: N/A 3211 Colony View Circle Chapter 13: a bankruptcy plan available to individuals whose “income is sufficiently stable and reg- Tiffanie Q. Spivey Doc# SV11-18157-AA Malibu 90265 ular to enable such individual to make payments under a plan.” The debtor makes payments to a 310-590-4578 File-Date: 07/05/11 Chapter: 7 trustee who disburses the funds to creditors. Bus type N/A. Alfred J. Verdi Assets: N/A Involuntary bankruptcy: the debtor is forced into bankruptcy by secured creditors whose claims 818-845-3100 Debts: N/A total at least $220,000. Involuntary bankruptcy may be filed under Chapter 7 or 11. Delta Fresh Fruit Inc. Doc# SV11-18201-MT AKA: also known as FKA: formerly known as (Produce company) NACO Inc. File-Date: 07/06/11 DBA: doing business as FAW: formerly associated with 1225 Wholesale St. (Single-asset real estate) Daniel King FDBA: formerly doing business as L.A. 90021 2645 Crenshaw Blvd. 213-388-3887 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

24 LOS ANGELES BUSINESS JOURNAL REAL ESTATE AUGUST 8, 2011 Wary Buyers Still Giving Summer the Cold Shoulder HOUSING: July home Market Highlights sales down from last year amid sputtering economy. MOST EXPENSIVE HOMES 7/11 7/11 7/10 ZIP Home Median Median Even the typical summer sales spike wasn’t Community Code Sales Price Price Change enough to wrench Los Angeles County’s hous- Santa Monica 90402 8 $2,640 $2,125 24% ing market in July out of the grip of the strug- Beverly Hills 90210 12 2,430 1,675 45% gling economy. L.A./Westwood 90024 3 2,375 1,280 86% Home sales rose since June but were still L.A./Brentwood 90049 11 2,051 1,526 34% off 7.4 percent to 4,164 units compared with a Pacific Palisades 90272 14 1,882 1,386 36% Malibu 90265 10 1,560 1,306 19% year earlier, according to figures provided by San Marino 91108 14 1,294 1,378 -6% Home Data of Hicksville, N.Y. Manhattan Beach 90266 40 1,235 1,668 -26% After holding steady at $340,000 in April, Topanga 90290 6 1,138 842 35% May and June, the median price of a home rose La Canada Flintridge 91011 32 1,129 1,100 3% $5,000 – but that was still off by 1.4 percent from a year earlier. MOST EXPENSIVE CONDOS 7/11 7/11 7/10 “I think we are looking at a market that is ZIP Condo Median Median continuing to sort of be buffeted by the ebb Community Code Sales Price Price Change and flow of all the things that are happening in Manhattan Beach 90266 3 $1,389 $982 41% the economy, where there’s a great deal of L.A./Bel-Air 90077 4 1,098 982 12% uncertainty,” said Robert Kleinhenz, deputy Hermosa Beach 90254 9 1,072 915 17% chief economist at the California Association Beverly Hills 90210 3 1,030 500 106% of Realtors Beverly Hills 90212 2 902 N/A N/A . Santa Monica 90405 9 849 912 -7% Condo sales struggled as well, with the Venice 90291 4 842 830 1% average price plummeting nearly 10 percent L.A./Mid-Wilshire 90036 7 824 390 111% since last year to $275,000 and sales falling 3.1 L.A./West Hllywd 90038 4 722 448 61% percent to 1,583 units. Pacific Palisades 90272 6 671 649 3% However, wealthier neighborhoods, largely Topanga: Median prices in the canyon hit $1.14 million, up 35 percent. on the Westside, continued to perform better HOME PRICE LOSSES than the market as a whole, a trend that began 7/11 7/11 7/10 ZIP Home Median Median L.A. COUNTY MEDIAN HOME PRICES several months ago. Community Code Sales Price Price Change $500 In the 15 ZIP codes with median prices top- L.A./Bel-Air 90077 3 $760 $5,500 -86% ping $1 million, there was a 5.9 percent growth Long Beach 90804 6 168 375 -55% 480 Long Beach 90814 8 370 740 -50% in sales to 215 homes compared with a year 460 earlier. Likewise, the average of those median Glendale 91202 9 440 809 -46% prices rose nearly 20 percent to nearly $1.5 Pasadena 91106 9 775 1,270 -39% 440 L.A./West Hllywd 90069 3 830 1,295 -36% million. Santa Monica posted the highest medi- 420 L.A./Rancho Park 90064 14 800 1,224 -35% an at $2.64 million. L.A./Hancock Park 90004 7 510 780 -35% 400 “There’s a lack of supply, and some Lawndale 90260 8 274 410 -33% 380 $330 $345 demand now, and that’s throughout the prime Valley Village 91607 9 480 705 -32% $340 Westside markets,” said Michael Libow, a bro- 360 ker at the Beverly Hills office of Coldwell CONDO PRICE LOSSES 340 Banker. 7/11 7/11 7/10 ZIP Condo Median Median 320 Still, for the market as a whole, there was Community Code Sales Price Price Change pessimism. In fact, the Realtors association Valley Village 91607 8 $257 $570 -55% 300 expects to adjust its sales forecast downward L.A./Windsor Square90020 8 190 408 -53% by 4 percent for the remainder of the year. Huntington Park 90255 10 110 235 -53% 280 Now, about 291,000 homes are expected to L.A./Los Feliz 90027 3 390 806 -52% 260 Hacienda Heights 91745 5 200 403 -50% change hands statewide. 240 “Sales haven’t perked up the way we P.V. Estates 90274 3 290 560 -48% Canoga Park 91304 11 141 260 -46% 220 (In thousands) thought they would,” Kleinhenz said. “We Tujunga 91042 3 212 382 -45% are … looking at lower sales than we had Rowland Heights 91748 5 155 278 -44% 200 JAS0NDJFMAMJ J A S ONJFMAMJJ D anticipated.” L.A./West Adams 90018 3 229 395 -42% – Jacquelyn Ryan 2009 2010 2011 Sale price in thousands Source: HomeData, www.homedata.com Source: HomeData Corp.

July 2011 New and Existing Home Sales in L.A. County Condo Sales

Median Price Median Price Home Sales Percent (thousands) Percent Condo Sales Percent (thousands) Percent Community ZIP Code 2011 2010 Change 2011 2010 Change 2011 2010 Change 2011 2010 Change Los Angeles County 4,164 4,498 -7% $345 $350 -1% 1,583 1,634 -3% $275 $305 -10% Acton 93510 6 10 -40% 328 350 -6% 0 1 N/A N/A 107 N/A Agoura Hills 91301 24 12 100% 572 622 -8% 5 2 150% 281 212 33% Alhambra 91801 4 7 -43% 482 430 12% 9 11 -18% 388 370 5% Alhambra 91803 4 8 -50% 425 438 -3% 1 4 -75% 418 554 -25% Altadena 91001 26 27 -4% 517 595 -13% 0 3 N/A N/A 317 N/A Arcadia 91006 24 23 4% 756 750 1% 5 8 -38% 485 510 -5% Arcadia 91007 17 15 13% 900 910 -1% 14 14 0% 607 404 50% Artesia 90701 7 8 -13% 340 320 6% 0 0 N/A N/A N/A N/A Azusa 91702 17 17 0% 270 285 -5% 9 8 13% 165 188 -12% Baldwin Park 91706 29 29 0% 262 250 5% 13 14 -7% 210 185 14% Bell/Bell Gardens 90201 16 16 0% 248 243 2% 7 7 0% 275 276 0% Bellflower 90706 26 27 -4% 320 340 -6% 8 11 -27% 172 190 -9% Beverly Hills 90210 12 11 9% 2,430 1,675 45% 3 1 200% 1,030 500 106% Beverly Hills 90211 2 5 -60% 979 1,075 -9% 1 2 -50% 1,125 650 73% Beverly Hills 90212 2 0 N/A 921 N/A N/A 2 0 N/A 902 N/A N/A Burbank 91501 4 7 -43% 485 652 -26% 7 0 N/A 375 N/A N/A Burbank 91502 1 0 N/A 260 N/A N/A 1 0 N/A 575 N/A N/A Burbank 91504 11 11 0% 556 699 -20% 5 4 25% 249 316 -21% Burbank 91505 21 16 31% 415 552 -25% 3 5 -40% 335 295 14% 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 REAL ESTATE LOS ANGELES BUSINESS JOURNAL 25

July 2011 New and Existing Home Sales in L.A. County Condo Sales

Median Price Median Price Home Sales Percent (thousands) Percent Condo Sales Percent (thousands) Percent Community ZIP Code 2011 2010 Change 2011 2010 Change 2011 2010 Change 2011 2010 Change Burbank 91506 18 15 20% $450 $543 -17% 1 3 -67% $445 $455 -2% Calabasas 91302 22 12 83% 898 915 -2% 6 9 -33% 355 328 8% Canoga Park 91303 9 5 80% 245 275 -11% 8 3 167% 150 130 15% Canoga Park 91304 21 18 17% 400 430 -7% 11 4 175% 141 260 -46% Canyon Country 91351 16 14 14% 302 312 -3% 13 12 8% 170 208 -18% Canyon Country 91387 24 24 0% 402 478 -16% 18 16 13% 198 255 -22% Carson 90745 18 20 -10% 290 325 -11% 10 11 -9% 185 235 -21% Carson 90746 8 19 -58% 328 360 -9% 2 1 100% 232 285 -19% Castaic 91384 23 21 10% 400 400 0% 7 2 250% 275 340 -19% Cerritos 90703 15 26 -42% 532 558 -5% 3 4 -25% 215 230 -7% Chatsworth 91311 27 22 23% 421 428 -2% 17 14 21% 252 310 -19% City of Commerce 90040 2 3 -33% 234 304 -23% 1 3 -67% 330 275 20% Claremont 91711 16 20 -20% 475 497 -4% 2 2 0% 392 384 2% Compton 90220 24 41 -41% 187 189 -1% 7 3 133% 246 253 -3% Compton 90221 25 40 -38% 195 213 -8% 2 4 -50% 207 193 7% Compton 90222 21 23 -9% 175 160 9% 3 4 -25% 115 183 -37% Covina 91722 19 26 -27% 265 308 -14% 3 4 -25% 200 241 -17% Covina 91723 9 4 125% 325 346 -6% 2 1 100% 308 238 29% Covina 91724 16 9 78% 398 473 -16% 2 2 0% 180 235 -23% Culver City 90230 9 9 0% 572 575 -1% 12 12 0% 320 330 -3% Culver City 90232 5 8 -38% 799 702 14% 1 1 0% 770 1,007 -24% Diamond Bar 91765 25 18 39% 535 490 9% 16 21 -24% 328 308 6% Downey 90240 22 17 29% 400 453 -12% 2 4 -50% 244 308 -21% Downey 90241 24 20 20% 372 392 -5% 3 3 0% 283 385 -26% Downey 90242 17 17 0% 335 340 -1% 4 1 300% 223 225 -1% Duarte/Bradbury 91010 17 14 21% 290 368 -21% 0 1 N/A N/A 293 N/A El Monte 91731 5 11 -55% 370 280 32% 2 1 100% 324 318 2% El Monte 91732 11 21 -48% 303 290 4% 5 4 25% 262 212 24% El Monte/South El Monte 91733 9 13 -31% 329 273 21% 1 2 -50% 215 361 -40% El Segundo 90245 7 5 40% 700 800 -13% 5 6 -17% 526 582 -10% Encino 91316 9 16 -44% 502 504 0% 17 18 -6% 239 225 6% Encino 91436 12 8 50% 862 995 -13% 0 4 N/A N/A 339 N/A Gardena 90247 8 12 -33% 314 289 9% 9 8 13% 192 206 -7% Gardena 90249 15 12 25% 350 335 4% 3 6 -50% 155 188 -18% Glendale 91201 9 7 29% 400 565 -29% 3 1 200% 299 399 -25% Glendale 91202 9 9 0% 440 809 -46% 4 9 -56% 248 275 -10% Glendale 91203 2 0 N/A 205 N/A N/A 5 0 N/A 237 N/A N/A Glendale 91205 3 2 50% 411 590 -30% 8 0 N/A 296 N/A N/A Glendale 91206 4 7 -43% 665 650 2% 9 12 -25% 300 318 -6% Glendale 91207 8 6 33% 670 772 -13% 2 1 100% 390 325 20% Glendale 91208 10 17 -41% 629 699 -10% 0 5 N/A N/A 565 N/A Glendale/La Crescenta 91214 22 16 38% 597 682 -12% 6 5 20% 446 542 -18% Glendora 91740 12 10 20% 350 324 8% 1 4 -75% 183 265 -31% Glendora 91741 11 14 -21% 460 483 -5% 2 9 -78% 365 428 -15% Granada Hills 91344 37 37 0% 380 407 -7% 4 1 300% 286 175 63% Hacienda Heights 91745 25 34 -26% 332 472 -30% 5 6 -17% 200 403 -50% Harbor City 90710 9 7 29% 350 425 -18% 6 8 -25% 180 264 -32% Hawaiian Gardens 90716 5 1 400% 174 280 -38% 0 3 N/A N/A 125 N/A Hawthorne 90250 18 28 -36% 322 362 -11% 5 4 25% 335 282 19% Hermosa Beach 90254 9 8 13% 900 1,050 -14% 9 5 80% 1,072 915 17% Huntington Park 90255 12 18 -33% 274 242 13% 10 3 233% 110 235 -53% Inglewood 90301 9 7 29% 240 209 15% 4 4 0% 188 174 8% Inglewood 90302 8 7 14% 232 222 5% 5 6 -17% 145 132 10% Inglewood 90303 8 5 60% 280 251 12% 1 1 0% 288 321 -10% Inglewood 90305 6 10 -40% 312 355 -12% 3 1 200% 224 275 -19% L.A. 90011 24 26 -8% 210 217 -3% 8 6 33% 274 166 65% L.A. 90062 9 11 -18% 260 272 -4% 2 3 -33% 296 265 12% L.A./Baldwin Hills 90008 7 9 -22% 370 390 -5% 5 5 0% 289 215 34% L.A./Baldwin Hills 90056 3 6 -50% 595 660 -10% 1 0 N/A 145 N/A N/A L.A./Bel-Air 90077 3 3 0% 760 5,500 -86% 4 2 100% 1,098 982 12% L.A./Brentwood 90049 11 16 -31% 2,051 1,526 34% 12 13 -8% 558 575 -3% L.A./Brooklyn Heights 90033 3 1 200% 216 198 9% 1 3 -67% 333 215 55% L.A./Chesterfield Square 90047 42 35 20% 245 245 0% 1 2 -50% 157 255 -38% L.A./City College 90029 7 1 600% 325 392 -17% 2 1 100% 288 411 -30% L.A./City Terrace 90063 16 17 -6% 188 212 -11% 3 3 0% 158 240 -34% L.A./Civic Center 90012 1 1 0% 340 300 13% 12 11 9% 282 240 18% L.A./Crenshaw District 90016 25 18 39% 255 346 -26% 6 5 20% 260 210 24% L.A./Eagle Rock 90041 7 8 -13% 367 410 -10% 2 0 N/A 299 N/A N/A L.A./East L.A. 90022 24 17 41% 262 255 3% 6 3 100% 268 325 -18% L.A./East L.A. 90023 13 9 44% 203 235 -14% 3 2 50% 336 330 2% L.A./Echo Park 90026 12 16 -25% 565 476 19% 7 9 -22% 450 395 14% L.A./El Sereno 90032 18 19 -5% 254 263 -3% 4 4 0% 168 253 -34% L.A./Exposition Park 90037 12 21 -43% 245 245 0% 1 5 -80% 253 233 9% L.A./Hancock Park 90004 7 9 -22% 510 780 -35% 6 3 100% 427 390 9% L.A./Highland Park 90042 26 21 24% 378 315 20% 9 9 0% 230 290 -21% L.A./Hollywood 90028 1 2 -50% 810 594 36% 1 3 -67% 413 605 -32% L.A./Hollywood Hills 90068 29 21 38% 856 698 23% 10 4 150% 315 280 13% L.A./Koreatown 90005 1 5 -80% 815 481 69% 11 10 10% 336 372 -10% L.A./Koreatown 90006 7 7 0% 319 340 -6% 6 17 -65% 316 314 1% L.A./Lincoln Heights 90031 3 7 -57% 220 320 -31% 13 4 225% 215 292 -26% L.A./Los Feliz 90027 8 9 -11% 1,027 940 9% 3 3 0% 390 806 -52% 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

26 LOS ANGELES BUSINESS JOURNAL REAL ESTATE AUGUST 8, 2011

July 2011 New and Existing Home Sales in L.A. County Condo Sales

Median Price Median Price Home Sales Percent (thousands) Percent Condo Sales Percent (thousands) Percent Community ZIP Code 2011 2010 Change 2011 2010 Change 2011 2010 Change 2011 2010 Change

L.A./Mar Vista 90066 20 30 -33% $770 $688 12% 7 3 133% $499 $380 31% L.A./Mid-City 90019 16 24 -33% 428 482 -11% 7 4 75% 323 482 -33% L.A./Mid-Wilshire 90036 12 8 50% 975 832 17% 7 2 250% 824 390 111% L.A./Mt. Washington 90065 22 22 0% 422 443 -5% 2 4 -50% 383 218 76% L.A./Palms 90034 7 10 -30% 678 665 2% 5 5 0% 349 420 -17% L.A./Rancho Park 90064 14 17 -18% 800 1,224 -35% 2 7 -71% 364 425 -14% L.A./Silver Lake 90039 14 16 -13% 540 648 -17% 4 5 -20% 355 400 -11% L.A./South Figueroa 90007 5 5 0% 360 346 4% 2 1 100% 368 332 11% L.A./South L.A. 90001 13 19 -32% 155 190 -18% 8 6 33% 195 220 -11% L.A./South L.A. 90003 26 29 -10% 208 200 4% 11 7 57% 220 221 0% L.A./South L.A. 90044 29 41 -29% 227 185 23% 5 7 -29% 265 305 -13% L.A./South L.A. 90061 7 9 -22% 200 180 11% 0 2 N/A N/A 130 N/A L.A./South L.A. 90248 5 4 25% 354 416 -15% 0 0 N/A N/A N/A N/A L.A./South Park 90015 1 3 -67% 280 290 -3% 8 7 14% 364 395 -8% L.A./South Robertson 90035 7 12 -42% 884 913 -3% 6 5 20% 544 565 -4% L.A./Watts 90002 35 28 25% 180 160 13% 3 5 -40% 140 220 -36% L.A./West Adams 90018 17 27 -37% 250 260 -4% 3 3 0% 229 395 -42% L.A./West Hollywood 90038 1 4 -75% 208 429 -52% 4 6 -33% 722 448 61% L.A./West Hollywood 90046 18 14 29% 1,004 777 29% 16 14 14% 472 490 -4% L.A./West Hollywood 90048 12 10 20% 1,046 888 18% 7 5 40% 440 425 4% L.A./West Hollywood 90069 3 6 -50% 830 1,295 -36% 19 13 46% 430 515 -17% L.A./West L.A. 90025 4 2 100% 670 1,012 -34% 21 17 24% 523 521 0% L.A./Westchester 90045 19 24 -21% 605 714 -15% 7 3 133% 265 347 -24% L.A./Westwood 90024 3 8 -63% 2,375 1,280 86% 11 7 57% 526 554 -5% L.A./Willowbrook 90059 24 28 -14% 151 160 -6% 4 2 100% 180 248 -27% L.A./Windsor Hills 90043 17 32 -47% 315 270 17% 1 2 -50% 35 280 -88% L.A./Windsor Square 90020 1 1 0% 820 759 8% 8 24 -67% 190 408 -53% La Canada Flintridge 91011 32 29 10% 1,129 1,100 3% 0 0 N/A N/A N/A N/A La Habra 90631 31 32 -3% 380 372 2% 10 15 -33% 124 165 -25% La Mirada 90638 32 17 88% 344 365 -6% 2 3 -33% 249 240 4% La Puente 91744 41 45 -9% 235 250 -6% 4 6 -33% 216 235 -8% La Puente 91746 15 21 -29% 260 305 -15% 4 0 N/A 196 N/A N/A La Verne 91750 28 24 17% 442 408 8% 2 4 -50% 118 312 -62% Lake Hughes 93532 1 1 0% 48 110 -56% 0 0 N/A N/A N/A N/A Lakewood 90712 22 21 5% 350 395 -11% 0 0 N/A N/A N/A N/A Lakewood 90713 21 20 5% 380 402 -5% 0 0 N/A N/A N/A N/A Lakewood 90715 8 6 33% 311 338 -8% 4 1 300% 218 219 0% Lancaster 93534 32 46 -30% 106 98 8% 12 6 100% 88 101 -13% Lancaster 93535 66 103 -36% 118 113 4% 15 11 36% 94 92 2% Lancaster 93536 79 96 -18% 180 210 -14% 13 7 86% 150 96 56% Lawndale 90260 8 7 14% 274 410 -33% 8 9 -11% 378 310 22% Lennox 90304 7 0 N/A 286 N/A N/A 3 0 N/A 234 N/A N/A Littlerock 93543 14 11 27% 111 110 1% 2 1 100% 121 80 51% Lomita 90717 10 4 150% 455 468 -3% 4 5 -20% 486 480 1% Long Beach 90802 1 3 -67% 195 455 -57% 35 33 6% 191 218 -12% Long Beach 90804 6 13 -54% 168 375 -55% 17 15 13% 269 172 56% Long Beach 90805 37 48 -23% 240 250 -4% 9 7 29% 256 295 -13% Long Beach 90806 14 14 0% 310 317 -2% 2 6 -67% 394 252 56% Long Beach 90807 16 28 -43% 462 410 13% 4 7 -43% 228 133 71% Long Beach 90808 31 28 11% 429 478 -10% 1 3 -67% 620 450 38% Long Beach 90810 19 20 -5% 249 272 -8% 4 5 -20% 124 56 121% Long Beach 90813 6 13 -54% 240 260 -8% 11 14 -21% 200 131 53% Long Beach 90814 8 4 100% 370 740 -50% 2 9 -78% 462 510 -9% Long Beach 90815 23 18 28% 460 464 -1% 5 9 -44% 280 300 -7% Long Beach/Belmont Shore 90803 14 14 0% 690 643 7% 14 10 40% 310 312 -1% Lynwood 90262 20 29 -31% 217 250 -13% 1 1 0% 420 290 45% Malibu 90265 10 10 0% 1,560 1,306 19% 6 1 500% 526 350 50% Manhattan Beach 90266 40 32 25% 1,235 1,668 -26% 3 2 50% 1,389 982 41% Maywood 90270 4 9 -56% 238 180 32% 0 1 N/A N/A 159 N/A Mission Hills 91345 11 12 -8% 285 314 -9% 3 3 0% 186 250 -26% Monrovia 91016 15 17 -12% 450 570 -21% 6 3 100% 302 510 -41% Montebello 90640 14 24 -42% 340 335 1% 10 7 43% 304 228 33% Monterey Park 91754 11 7 57% 418 531 -21% 5 6 -17% 400 424 -6% Monterey Park 91755 8 10 -20% 442 494 -11% 8 7 14% 382 390 -2% Montrose 91020 1 4 -75% 530 485 9% 1 2 -50% 429 492 -13% Newhall 91321 15 16 -6% 347 360 -4% 12 13 -8% 202 185 9% North Hills 91343 14 20 -30% 354 369 -4% 13 14 -7% 190 160 19% North Hollywood 91601 6 17 -65% 428 380 13% 6 11 -45% 298 375 -21% North Hollywood 91602 11 7 57% 685 735 -7% 6 3 100% 349 323 8% North Hollywood 91605 19 18 6% 285 333 -14% 4 3 33% 284 287 -1% North Hollywood 91606 16 24 -33% 291 324 -10% 4 4 0% 202 226 -11% Northridge 91324 9 14 -36% 370 416 -11% 7 1 600% 310 220 41% Northridge 91325 16 18 -11% 585 502 17% 6 6 0% 188 322 -42% Northridge 91326 15 24 -38% 610 620 -2% 7 10 -30% 385 403 -4% Norwalk 90650 45 64 -30% 275 295 -7% 5 7 -29% 239 228 5% Pacific Palisades 90272 14 16 -13% 1,882 1,386 36% 6 5 20% 671 649 3% Pacoima 91331 45 33 36% 265 263 1% 10 21 -52% 118 141 -16% Palmdale 93550 64 95 -33% 106 125 -15% 8 8 0% 103 132 -22% Palmdale 93551 65 70 -7% 210 226 -7% 5 7 -29% 175 156 12% Palmdale 93552 54 67 -19% 148 155 -5% 9 6 50% 150 134 12% Palmdale 93591 5 9 -44% 62 70 -11% 0 3 N/A N/A 90 N/A 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 REAL ESTATE LOS ANGELES BUSINESS JOURNAL 27

July 2011 New and Existing Home Sales in L.A. County Condo Sales

Median Price Median Price Home Sales Percent (thousands) Percent Condo Sales Percent (thousands) Percent Community ZIP Code 2011 2010 Change 2011 2010 Change 2011 2010 Change 2011 2010 Change Palos Verdes Estates 90274 9 20 -55% $925 $1,084 -15% 3 3 0% $290 $560 -48% Panorama City 91402 19 24 -21% 275 244 13% 18 25 -28% 124 140 -11% Paramount 90723 13 11 18% 215 250 -14% 10 10 0% 130 165 -21% Pasadena 91101 2 0 N/A 512 N/A N/A 5 0 N/A 348 N/A N/A Pasadena 91103 11 8 38% 359 408 -12% 2 7 -71% 431 412 5% Pasadena 91104 27 22 23% 549 540 2% 6 4 50% 330 234 41% Pasadena 91105 9 10 -10% 835 802 4% 4 1 300% 652 770 -15% Pasadena 91106 9 7 29% 775 1,270 -39% 12 12 0% 386 488 -21% Pasadena 91107 13 20 -35% 610 710 -14% 7 3 133% 370 480 -23% Phillips Ranch 91766 35 43 -19% 206 230 -10% 7 12 -42% 180 202 -11% Pico Rivera 90660 38 30 27% 287 300 -4% 4 0 N/A 265 N/A N/A Playa del Rey 90293 3 2 50% 841 911 -8% 8 13 -38% 321 386 -17% Pomona 91767 33 22 50% 225 220 2% 9 7 29% 185 160 16% Pomona 91768 23 31 -26% 186 200 -7% 6 1 500% 182 97 88% Rancho Palos Verdes 90275 34 23 48% 947 920 3% 5 7 -29% 366 455 -20% Redondo Beach 90277 13 7 86% 1,050 875 20% 10 12 -17% 596 677 -12% Redondo Beach 90278 23 18 28% 610 712 -14% 17 26 -35% 580 578 0% Reseda 91335 24 35 -31% 295 325 -9% 10 14 -29% 238 222 7% Rosemead 91770 16 16 0% 384 394 -3% 1 4 -75% 600 455 32% Rowland Heights 91748 22 29 -24% 406 430 -6% 5 3 67% 155 278 -44% San Dimas 91773 32 23 39% 340 359 -5% 2 3 -33% 286 230 24% San Fernando 91340 13 16 -19% 240 262 -8% 0 2 N/A N/A 215 N/A San Gabriel 91775 15 18 -17% 530 618 -14% 1 4 -75% 240 470 -49% San Gabriel 91776 8 13 -38% 486 470 3% 4 2 100% 512 425 20% San Marino 91108 14 16 -13% 1,294 1,378 -6% 0 0 N/A N/A N/A N/A San Pedro 90731 16 20 -20% 365 325 12% 0 8 N/A N/A 340 N/A San Pedro 90732 8 4 100% 448 602 -26% 8 4 100% 242 410 -41% Santa Clarita 91350 24 31 -23% 360 415 -13% 13 7 86% 260 240 8% Santa Clarita 91390 15 16 -6% 435 412 6% 1 3 -67% 225 250 -10% Santa Fe Springs 90670 7 7 0% 330 302 9% 9 1 800% 309 280 10% Santa Monica 90402 8 4 100% 2,640 2,125 24% 2 2 0% 770 1,855 -58% Santa Monica 90403 3 0 N/A 775 N/A N/A 8 0 N/A 570 N/A N/A Santa Monica 90404 2 2 0% 371 733 -49% 2 7 -71% 602 515 17% Santa Monica 90405 12 14 -14% 865 920 -6% 9 6 50% 849 912 -7% Sherman Oaks 91403 15 10 50% 815 879 -7% 7 4 75% 320 360 -11% Sherman Oaks 91423 14 14 0% 749 775 -3% 7 9 -22% 309 355 -13% Sierra Madre 91024 12 11 9% 687 769 -11% 2 1 100% 467 515 -9% Signal Hill 90755 3 5 -40% 435 600 -28% 8 7 14% 238 350 -32% South Gate 90280 35 48 -27% 245 250 -2% 4 4 0% 295 249 18% South Pasadena 91030 9 9 0% 907 740 23% 4 10 -60% 520 503 3% Stevenson Ranch 91381 16 16 0% 578 612 -6% 5 4 25% 300 296 1% Studio City 91604 17 19 -11% 869 750 16% 6 5 20% 448 300 49% Sun Valley 91352 23 34 -32% 300 302 -1% 3 7 -57% 242 212 14% Sunland 91040 14 22 -36% 338 389 -13% 1 2 -50% 207 221 -6% Sylmar 91342 41 40 2% 298 325 -8% 23 25 -8% 216 190 14% Tarzana 91356 11 10 10% 720 855 -16% 10 15 -33% 272 205 33% Temple City 91780 24 13 85% 552 558 -1% 6 5 20% 411 465 -12% Topanga 90290 6 8 -25% 1,138 842 35% 1 1 0% 49 320 -85% Torrance 90501 18 6 200% 494 448 10% 9 8 13% 532 468 14% Torrance 90502 2 6 -67% 331 345 -4% 11 12 -8% 161 209 -23% Torrance 90503 10 10 0% 608 632 -4% 6 14 -57% 522 580 -10% Torrance 90504 13 15 -13% 468 450 4% 5 3 67% 350 435 -20% Torrance 90505 10 11 -9% 629 615 2% 8 6 33% 410 412 0% Tujunga 91042 17 18 -6% 300 332 -10% 3 6 -50% 212 382 -45% Valencia 91354 21 19 11% 385 475 -19% 18 17 6% 312 357 -13% Valencia 91355 28 22 27% 405 450 -10% 13 11 18% 240 257 -7% Valley Village 91607 9 11 -18% 480 705 -32% 8 3 167% 257 570 -55% Van Nuys 91401 23 17 35% 430 460 -7% 7 6 17% 230 284 -19% Van Nuys 91405 7 10 -30% 325 350 -7% 4 18 -78% 162 158 3% Van Nuys 91406 22 31 -29% 324 350 -7% 9 12 -25% 265 202 31% Van Nuys 91411 7 8 -13% 459 522 -12% 1 2 -50% 335 239 40% Venice 90291 14 13 8% 1,105 815 36% 4 1 300% 842 830 1% Vernon 90058 1 0 N/A 120 N/A N/A 0 0 N/A N/A N/A N/A Walnut 91789 29 28 4% 683 682 0% 3 3 0% 486 290 68% West Covina 91790 24 15 60% 320 339 -6% 6 2 200% 245 342 -28% West Covina 91791 15 9 67% 410 490 -16% 6 4 50% 325 293 11% West Covina 91792 16 12 33% 336 360 -7% 6 5 20% 242 207 17% West Hills 91307 14 17 -18% 428 462 -7% 4 1 300% 334 564 -41% Westlake Village 91361 19 13 46% 770 640 20% 2 1 100% 508 260 95% Westlake Village 91362 25 23 9% 698 601 16% 7 17 -59% 395 439 -10% Whittier 90601 14 19 -26% 422 490 -14% 4 5 -20% 191 186 3% Whittier 90602 9 9 0% 300 366 -18% 4 3 33% 344 435 -21% Whittier 90603 10 13 -23% 345 385 -10% 2 13 -85% 155 417 -63% Whittier 90604 26 21 24% 314 360 -13% 1 3 -67% 230 175 31% Whittier 90605 25 20 25% 310 340 -9% 1 0 N/A 250 N/A N/A Whittier 90606 14 10 40% 285 282 1% 3 3 0% 269 250 8% Wilmington 90744 17 13 31% 220 265 -17% 1 4 -75% 280 134 109% Winnetka 91306 20 27 -26% 302 350 -14% 15 4 275% 219 228 -4% Woodland Hills 91364 19 28 -32% 690 537 28% 4 2 100% 461 192 140% Woodland Hills 91367 16 27 -41% 510 520 -2% 18 28 -36% 270 283 -5% 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

28 LOS ANGELES BUSINESS JOURNAL REAL ESTATE AUGUST 8, 2011 Google’s Santa Monica Offices Click With Buyer ACQUISITION: $10 million mark. The condos have been on Real estate the market for more than two years. REAL investment trust picks up The unit is a 5,700-square-foot penthouse ESTATE with four bedrooms and six-and-a-half baths, building for $22 million. as well as a walk-in wine closet and terraces with panoramic views. JACQUELYN UDSON Pacific Properties Inc. has Residences at the Montage range from RYAN acquired the Santa Monica offices of 1,900 square feet to 5,700 square feet and have H Google Inc., as the local real estate two to five bedrooms. They are priced from investment trust seeks to expand on the $4.6 million to $16.8 million, and are on the the 100,146-square-foot building last month Westside. top three floors of the eight-floor, 201-room from Behringer Harvard, an Addison, Last month, Hudson bought the nearly hotel, operated by Montage Hotels & Resorts Texas, commercial real estate investment 46,000-square-foot three-story building at 604 LLC of Laguna Beach. company. Arizona Ave. from Noncom Properties, a All residences receive concierge services It’s the second deal closed this year by the group of undisclosed local investors who as well as access to the hotel’s spa, fitness L.A. company owned by Dr. David Y. Lee, a acquired it in 2004. center, restaurant and bar. Among the resi- Korean immigrant who has been acquiring Financial terms were not disclosed, but Santa Monica: Offices acquired. dents of the condos are embattled Los Angeles properties since 1995 but had curbed purchases industry sources pegged the deal at roughly Dodgers owner Frank McCourt and local since the downturn. $22 million. The building sold for $12 million since 2005, but the Silicon Valley search firm developer Larry Field. “The market has clearly benefited from an in 2004, and was assessed at $12.9 million in has signed a lease to move in April into the But Stephen Shapiro, chairman of luxury increase in trade and port traffic in Long 2009. Hudson declined comment through a Binoculars Building designed by Frank Gehry residential brokerage Westside Estate Beach and Los Angeles,” said Kevin Shan- spokesman. on Venice’s Main Street. Agency, said that most of the buyers so far non, vice chairman of CB Richard Ellis This will be the 14th addition to Hudson’s Leasing the space shouldn’t be a problem, have been out-of-towners. Group Inc. in its Torrance office, who repre- portfolio, which comprises 4 million square though, as Santa Monica was the only city in “The nature of the buyer at the Montage is sented the buyer and the seller with colleague feet of creative- and tech-focused buildings Los Angeles County to post a vacancy rate that they don’t slive in L.A., (but want a pres- Louay Alsadek. from San Francisco to San Diego, including below 10 percent last quarter. In fact, Hudson ence here) and want all the amenities,” he said. Built in 1982, the six-floor building at 211 Hollywood’s Sunset Gower Studios and Sun- has already received four proposals from com- Despite the high price of the sale, Shapiro E. Ocean Ave. is 81 percent leased to six ten- set Bronson Studios. However, until now, the panies seeking to lease the space when Google said little should be read into it about overall ants, including anchor tenant Designory, a cre- REIT only had two Westside properties: a moves out, Wilson said. market conditions. ative ad agency. three-story office building with two sound Noncom Properties was represented by Lee “I don’t think it means anything other than Jamison manages and leases more than stages in Culver City and a six-story office & Associates West Los Angeles broker a very wealthy person found what they wanted 100 commercial building throughout South- building in Beverly Hills. Andrew Wilson, the brother of Hudson’s rep- and they bought it,” he said. ern California and a handful in Texas for a “The buyer is getting involved with West- resentative. Joy Denton of Sotheby’s International total portfolio of 22 million square feet. The side creative properties because they already Realty in Beverly Hills represents the Montage. highest concentration of properties is in run proper studios further east,” said broker Top-Dollar Condo L.A.’s Koreatown. David Wilson of Lee & Associates West Los In the priciest L.A. condo sale of the year, a Dr. Lee in Long Beach Jamison representatives did not return calls Angeles who represented Hudson. “We think unit in the Montage Beverly Hills sold for In the largest office deal in Long Beach this requesting comment. the building is the best overall creative build- $13.8 million, or $2,400 per square foot, last year, a six-story office building known as Down- ing in Santa Monica. The rub to the deal is that month to an undisclosed buyer. town Plaza traded hands for $12.8 million. Staff reporter Jacquelyn Ryan can be reached Google’s lease expires in a year.” It was the 11th of the five-star hotel’s 20 Jamison Realty Advisors, one of the at [email protected] or (323) 549- Google has occupied the entire building condos to sell and the third to sell above the largest property owners in the county, bought 5225, ext. 228.

EVENT Is your CFO one of the best in Los Angeles?

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Award Categories: PLATINUM SPONSORS: • Private Company • Public Company • Government/Public Sector • Nonprofit

Awards Luncheon: Wednesday, September 7, 2011 GOLD SPONSORS: Community Bank PricewaterhouseCoopers Millennium Biltmore Hotel, 506 S. Grand Ave., Los Angeles, CA 90071 Moss Adams LLP Wedbush Bank For sponsorship information, For more information or to nominate, please visit call your account representative www.labusinessjournal.com/bizevents at 323.549.5225 or email [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 29 Investment Properties For Sale COMMERCIAL RESIDENTIAL

2 101 W. 3rd FOR SALE Dodger 5 FOR SALE WILSHIRE Stadium 38 UNITS FREE STANDING RETAIL BLVD. DOWNTOWN LONG BEACH 10 • 4 blocks to the beach ◆ Daryl Ellison • Near Queen Mary & LOS ANGELES COUNTY VENTURA COUNTY FIGUEROA ELLISON REALTY Convention Center FLOWER Santa 10 OFFICE: (562) 439-5433 • Owner may carry 1st

Clarita ALAMEDA 60 CELL: (562) 883-1887 • $3,950,000 110

118 OFFICE Simi 2 • Over 2,000 SF on Busy Valley Northridge Corner Next to Taco Bell Burbank 170 DESIGNER OFFICE • Use Code – Retail Stores, Agoura 5 Hills 101 Rear Parking For 8 Hollywood Pasadena 210 FOR LEASE Calabasas Glendale 405 Alhambra 10 West Steve Warshauer Covina LOS ANGELES Pomona 888-895-7535 Ext 225 1 Santa Monica Montebello 3 Malibu Venice Culver City Whittier LOS ANGELES COUNTY Marina Del Rey Lynwood 5 RETAIL FOR SALE ORANGE COUNTY El Segundo 31,900 SF, MULTI-TENANT Hawthorne NNN RETAIL INVESTMENT Manhattan Beach • Free Standing 3,303 SF, 5 miles Hermosa Beach Single Level Torrance 1 Redondo Beach Anaheim • Floor to Ceiling Windows Carson 2 throughout – Central Atrium Long

Rancho Palos Huntington Santa Ana Verdes LONG Beach Steve Warshauer BEACH San Clemente Irvine LEGEND LOS ANGELES HARBOR 888-895-7535 Ext 225 HARBOR Ferguson: # 1 heating and plumbing distributor in the world Office Costa Mesa Goodwill: New 10-year lease with 3% annual increases California Patio: One of the largest outdoor furnishings retailer in So CA Residential Signalized Intersection Location Need more information 2 Blocks from The River Entertainment Center Commercial 72014-72060 Highway 111, Rancho Mirage, CA on advertising your Industrial Contact: William B. Asher Investment Property? 949.585.7684 • [email protected] Land DRE License #01318078 Call Rosz Murray • 323.549.5225 ext. 215

LEASING GUIDE

OFFICE

RETAIL SPACE & EXECUTIVE SUITES Bank Site - LA’s Premier Address Available Space: 3,200 sqft.+++ (signalized corner) LOWERED ADDRESS: 2137 W 182nd St, Torrance CA 90504 TO 750K Term Length: 3-10 years (negotiable) Lease Type: Bank branch site Rate Type: NNN Available Space: 1039 sqft Location: Nijiya Plaza Also - ofﬁ ce/retail from 3.50 Available: Immediately Term Lease: 4 year Rate Type: NNN Contact: Arun Bhumitra, Armitra Properties Email: [email protected] Phone: (310) 994-7400 Useage: Optometrist, Acupuncture, Beauty Salon, Barber Shop, Liquor Store, Etc ADDRESS: 23211 Hawthorne Blvd., Torrance, CA Available: Immediately- Last One Left Originally 15 Million - property can now be purchased for 9.5 Million! ADDRESS: 2161 W 182nd St #103, Torrance CA 90504 Available Space: 533 sqft Rate Type: Gross Lease COMMERCIAL Available: Immediately Lots of Visibility, Corner Ofﬁ ce/Building Contact: Patsy Palos 310-532-2111 ext 3039 Email: [email protected] COMMERICAL PROPERTY FOR LEASE ADDRESS: 22905 S Vermont Ave, Torrance CA Showcase your property in the Available Space: 15,500 sqft Supermarket Building ++ 10,000 sqft available LEASING GUIDE section of the Term Length: 20 year Rate Type: $1.99 sqft + NNN Useage: Supermarket, Drug Store, Automotive Super Store, Los Angeles Business Journal. Medical Use Potential, Etc. Lots of Potential Available: Immediately Contact: Patsy Palos 310-532-2111 ext 3039 Email: [email protected] Call Rosz Murray • 323.549.5225 ext. 215 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

30 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011 BUSINESS MARKETPLACE EMPLOYMENT OPPORTUNITIES BUSINESS SERVICES

SuperbTech, Inc. a 13year old boutique Stafﬁ ng Firm specializing in Permanent & Con- tract Stafﬁ ng Services is looking to hire a top gun Outside Account Representative! Are you a natural born hunter that loves the challenge of closing a deal? Are you a phenomenal relationship builder that endears people to you? Do you possess a determined entrepreneurial spirit and are self-driven? Would it excite you to have a wide open territory with no limits? If your responses are yes with no hesitation, you could be exactly what we are looking for!

The profi le suited to this opportunity consists of the following: • Prior Sales experience in a commission environment • College Degree preferred • 2-5years maximum Professional Sales experience • Stellar References • Track Record to “boast” about • Staffi ng Experience Preferred , Technical(school and/or hands-on) or Hotel Sales • Excellent writing, speaking, and pre- sentation skills The position is based out of our Culver City Offi ce. Salary + commission.

Send resume to [email protected] for immediate consideration. No calls please.

INVESTMENT OPPORTUNITIES An Iconic Australian Wine Direct To You

Robertson of Clare Wines is a bou que producer from the Clare Valley with a very limited quan ty of the Iconic 2005 MAX V Super Bordeaux Style Blend (5 varie es) reserved for the US market. The wine has won 5 Gold Medals and has been awarded a 95/100 from James Halliday, Australia’s top wine cri c and an 18/20 from UK MW Jancis Robinson. Not yet rated by Parker so you be the ﬁ rst to cellar its poten al.

Buy direct from the producer’s LA Oﬃ ce at US $58/bo le plus local delivery charges. Minimum order 1 dozen, maximum 2 doz.

See www.rocwines.com.au for full details and send your order request to [email protected]. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 31 BUSINESS MARKETPLACE FINANCIAL SERVICES REAL ESTATE SERVICES

BULK CONDO SALES

15 UNITS (100% Complete) - SOUTH PASADENA, CA 22 UNITS (100% Complete) - THOUSAND OAKS, CA 61 UNITS (90% Complete) - SANTA MONICA, CA 85 UNITS (100% Complete) - SALEM, OR 110 UNITS (Land) - RANCHO PV, CA 138 UNITS (Land) - SPARKS, NV 320 UNITS (Land) - BULLHEAD, AZ

Visit www.wjmpropertylist.com

CAREER SERVICES

Get Noticed.

Showcase your ad in the BUSINESS MARKETPLACE section of the Los Angeles Business Journal

Call Rosz Murray 323.549.5225 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

32 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011 BUSINESS MARKETPLACE AIRCRAFT CHARTER LEGAL SERVICES

Aircraft Charter Service Aircraft Sales Aircraft Management 13 Years Established Worldwide Service No Membership Fees 24 / 7 Personal Service (310) 379-4448 ALTITUDEAVIATION.COM L.A. LAW GUIDE DBA BUSINESS LITIGATION FAMILY LAW INVESTMENT LAW MICHAEL KELLY FAMILY LAW Wittenberg Law, APC SUSAN BARILICH P.C. Fictitious Name Statement Divorce and Family Law Have you lost money in an investment? LITIGATION . TRIALS . ARBITRATION for Business Professionals. You may have a legal claim to recover File No. (2011062122) your money if you act promptly. The following company is doing business as Tobacco Free Org, 8117 W 30 yrs. experience. State & Federal Courts Our experience includes success- Manchester Ave, Suite 500, Playa del Rey, CA, 90293. This business is being Downtown Los Angeles. fully litigating against the major family Are you considering a new investment conducted by Foundation for a Smokefree America, 8117 W Manchester Ave, Suite law ﬁ rms in Los Angeles. We prevail opportunity? A prudent investor would 500, Playa del Rey, CA, 90293.This statement was filed with the County Clerk of 213-996-8340. [email protected] through fair negotiation or litigation. seek sophisticated investment counsel 41 year ﬁ rm, 33 attorneys & staff. Los Angeles on July 12, 2011. Published on, 7-25-11, 8-1-11, 8-8-11, 8-15-11. FURTHER INFO: www.barilichlaw.com before investing. Be a prudent investor.

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AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 33

‘We are getting calls every day from brands saying, “We want to shift our production back to the United States.” Financially, it works; logistically, it works. It’s a trend now.’ DAVID PERRY, DSP Group

PHOTOS BY RINGO H.W. CHIU/LABJ Shaping Up: Left, Michael Kane at his family’s Karen Kane in Vernon. Right, owner Carlo Gholami at his Couture the Clothing Co. in downtown Los Angeles. Apparel: Pattern Developing in Local Production labor and raw material costs. Perry of DSP percent increase. 1993. His apparel is made at a 10,000-square-foot Continued from page 1 Group said labor costs alone rose 20 percent But Tsabag believes retailers and shoppers factory on Pico Boulevard a few blocks from Sta- last year and are on track to go up another 20 are willing to pay extra for Made in USA cloth- ples Center, and sold at his Melrose Avenue retail (have the apparel made) in three weeks and get percent this year. A burgeoning middle class in ing. He’s now using the label as a selling point. store and boutiques nationwide. it in the stores in five weeks.” China is driving factories there to make more “There is more appeal now for clothes to be The recession took a toll on Gholami’s Tsabag isn’t the only one boosting manu- clothing for their own people. And the weaker made in U.S.A. than in any foreign countries,” business, so more than a year ago he started facturing in Los Angeles. dollar hasn’t helped local manufacturers said Tsabag, an Israeli immigrant who Couture Production Service, which provides “We are getting calls every day from because foreign goods effectively have launched Velvet Heart after successfully grow- product development, fabric cutting and brands saying, ‘We want to shift our produc- become more expensive. ing and selling two other apparel brands, Yes sewing, and merchandising to other apparel tion back to the United States,’ ” said David Perry said one of his local clients two years Inc. and Hot Kiss. companies. Perry, founder of apparel design, sourcing and ago paid $35 for each motorcycle jacket from Velvet Heart, which employs 17 and is on Gholami said he’s seen an 8 percent to 10 production firm DSP Group in downtown. China, not including shipping costs. But now track to generate revenue of $6 million this year, percent increase in business since the begin- “Financially, it works; logistically, it works. the cost is $48 – the same cost as one made in makes fashion-forward clothes for 20-some- ning of the year, especially from smaller It’s a trend now.” Los Angeles. things that retail for $48 to $98 at Nordstrom, apparel brands that first went overseas to make For more than a decade, the apparel manu- At the same time, there’s been a change Anthropologie and more than 1,500 boutiques their garments but ran into problems, including facturing industry in Los Angeles County had domestically. The U.S. fast-fashion industry, nationwide such as Fred Segal and Kitson. Chinese demands for large orders. lost jobs to global competition. Companies which is dominated by local players such as “They have to face huge minimums and started moving garment production to factories Forever 21 Inc., Love Culture and Papaya, Inspecting everything long delivery dates, which a small manufactur- in Mexico after the North American Free have conditioned shoppers to see fashionable Meanwhile, Karen Kane Inc. is manufac- er cannot survive,” Gholami said. “Also Trade Agreement went into effect in 1994. apparel on store shelves much sooner than in turing the majority of its collections for the fall there’s the quality of the sewing, which you Many jumped to China when quotas on appar- the past. Twenty-somethings who spot new and holiday seasons in Los Angeles this year don’t have any control over when it’s thou- el goods from there were phased out from fashions in a magazine now expect to see those after price increases and quality issues pushed sands of miles away.” 2002 to 2005. Before then, companies couldn’t tops, dresses and pants on store shelves in a the Vernon apparel company to significantly There are challenges to local production, take advantage of labor costs, which were so few weeks, not months. That means apparel cut back on its use of overseas factories in the however. L.A. apparel contractors, which low that the savings more than compensated makers – if they want to be successful – are last year. About 80 percent of Karen Kane’s operate the smaller knitting, cutting and for transport costs. forced to make trendy clothing locally because line is now made locally, compared with 50 sewing factories that produce garments, are As a result, the number of workers in the they can’t afford to wait for overseas produc- percent in the past. finding it increasingly difficult to hire workers county’s apparel manufacturing industry tion and long shipping times. Michael Kane, director of marketing at who have both needle-and-thread skills and plunged 54 percent, from 104,300 in 1996 to That trend also has encouraged consumers Karen Kane and son of founders Lonnie and authentic working papers. Contractors also 48,300 last year, according to the state’s to visit shops more frequently. Karen Kane, said the company used to inspect need better access to financing to purchase Employment Development Department. About “A retailer tries to keep the stock moving in 10 percent of its goods before shipping to new, more efficient equipment. 98 percent of all apparel sold in the United the store so the buyers will continue to return retailers. That increased to nearly 100 percent “The whole thing is tied around immigra- States is imported now, with 40 percent com- every couple of weeks,” said Nancy Sidhu, after quality of the company’s Chinese-made tion and industrial training,” said the California ing from China, according to the American chief economist at the Los Angeles Economic garments started to slip. Fashion Association’s Metchek. “And to com- Apparel & Footwear Association. Development Corp. “It requires continuous “It became so difficult for us to work over- pete, you need high-speed, versatile machines reorders and new merchandise and that’s more seas in terms of the quality and turnaround that can make chiffon one day and cotton Quickening pace difficult to handle at a distance.” times that it made more sense to do more another. But how you get that financed is a But the landscape is changing. Now, “Fast-fashion is now a fact of life,” said Ilse things here,” Michael Kane said. “The quicker huge problem.” employment in L.A.’s apparel manufacturing Metchek, executive director at the California turnaround times and more faith in what you And for L.A.’s apparel manufacturing sector is increasing for the first time in more Fashion Association, a non-profit organiza- will be receiving are costs that aren’t in set dol- industry to continue its growth trajectory, than a decade. tion in downtown that represents the state’s lars, but they are very costly in the end.” insiders believe city government needs to help Employment in the industry grew 1 percent apparel and textile industries. She estimated Karen Kane, which was founded in 1979, by streamlining processes for business growth. from 47,900 workers in 2009 to 48,300 last that about 65 percent to 70 percent of the sells its tops, dresses and bottoms for women “One thing that will nip this in the bud is if year, the first year-over-year increase for the clothes sold at Forever 21 and Love Culture at major department stores such as Blooming- the city doesn’t get behind this,” Perry said. county’s apparel manufacturing industry since stores are made in Los Angeles. dale’s, Nordstrom and Macy’s for an average “Red tape, financing, taxes, affordable rents, the mid-1990s, according to the state’s “Waiting three or four months for a gar- retail price of $85. permits, whatever it is the city has to say we Employment Development Department. ment was regular, and you went to Mexico if The company, which employs 150, produces will help you do this.” And the pace appears to be quickening. you wanted it in two months. Now you want it its samples, or prototypes, in-house at its And in an ironic change, now that China’s Apparel manufacturers employed 52,900 people in three weeks,” Metchek said. 130,000-square-foot factory and then contracts growing middle class has become a major con- this June, up 6.2 percent from last June. By com- Tsabag of Velvet Heart also realized that with local factories for mass production – sewing, sumer of luxury goods, shoppers there want to buy parison, the country’s overall manufacturing sec- his production costs would not be too far out of finishing and other manufacturing services. clothes made in Europe or even the United States. tor grew less than 1 percent over that same span. whack if he started manufacturing locally. For One local apparel veteran is capitalizing on the “China’s middle class is rapidly expanding, What’s driving the growth? example, a dress made in China cost him $8.50 increasing attractiveness of domestic production. and when the middle class gets money, it doesn’t It’s not as cheap these days to produce gar- to manufacture and import. To make that same Carlo Gholami has been making men’s clothes buy cheap,” Perry said. “That’s going to help our ments in China, which is facing increasing dress in Los Angeles, it costs him $10, a 17 at his company, Couture the Clothing Co., since business steam roll in the next two years.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

34 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011 Entertainment: Game Maker Plays by New Rules

Continued from page 1

start. Liquid released its first social networking title on Facebook last summer with gaming website InstantAction. Called “Instant Jam,” the game required users to play the notes of a popular tune, similar to “Guitar Hero,” using a keyboard or “Guitar Hero” controller. But InstantAction filed for bankruptcy in November, shutting the game down with it. Meanwhile, Liquid continued developing its more traditional games. “Thor: God of Thunder,” a game published by Sega for Xbox 360 and PlayStation 3, came out in May. But Ed Del Castillo, the company’s president, said Liquid now plans to focus on social and mobile games. He sees the switch as a way to keep Liquid relevant to gamers as their interests change. “We’re fools if we ignore what’s happening on mobile and social,” he said. “Being a businessman, I have to look at where the business is.” Del Castillo would not disclose revenue, but said Liquid is profitable. The mobile and social game industry has seen significant growth in the last few years. Developers of Facebook and iPhone games have proliferated; the games are easier to make and distribute than the traditional games sold through retail. While social and mobile games have boomed lately, the retail video game business has struggled. June sales of packaged games and consoles totaled $1.03 billion, down 10 percent from $1.15 billion in the same month last year, according to NPD Group in Port Washington, N.Y. Because of slowing retail sales, the industry’s biggest publishers have cut down on the

number of games they produce. That’s resulted RINGO H.W. CHIU/LABJ in the shuttering of both in-house and indepen- Facebook Friendly: Ed Del Castillo, president of Liquid Entertainment, at the video game maker’s headquarters in Pasadena. dent development studios. such as director or producer, with the goal of games are distributed to players. When the lenging for a small developer to finance its first Going casual becoming a Tinsel Town power player. company made titles for consoles or PCs, it few games, said Chris Ulm, a video game vet- The 45-person company, which Del Del Castillo said the company is develop- had to find a publisher to distribute the game. eran who now heads Carlsbad mobile game Castillo founded with Mike Grayford in 1999, ing more complicated games for social net- As a result, the majority of the revenue from company Appy Entertainment. got its start with a computer game called working sites and mobile phones that would the sale of the game went to the publisher. “Being properly capitalized in this market- “Battle Realms” in 2001. Liquid’s first con- attract a similar audience as its PC and con- Now, Liquid can put a game on Facebook place is not easy,” Ulm said. “One of the ongo- sole game, “Rise of the Argonauts,” hit sole games. Liquid will launch a Facebook or a cell phone app store without the help of a ing challenges is how to grow your business shelves in 2008. The titles follow a story line game for the “Dungeons & Dragons” fran- publisher. Social games are initially free to and be clever about keeping your costs con- and ask players to make decisions that affect chise with Atari later this year and plans to play, generating revenue from when players tained.” how the game continues. create a mobile game using the characters make small purchases as they play for items Liquid is accustomed to making changes. Most games for Facebook and mobile from “Battle Realms.” such as an accessory for a character or a boost The company shifted from PC games to con- phones, however, are casual games, which have “I believe there’s an entire group of people to help complete a challenge. sole titles a few years ago. Del Castillo said it’s a less complicated structure. For example, in who want to play more complex games in Meanwhile, mobile games can be distrib- all part of diversifying the company so it can iPhone hit “Angry Birds,” players use virtual casual places,” Del Castillo said. uted on an iPhone or Android app store for survive as the market changes. slingshots to hurl animated birds at evil pigs. The change in Liquid’s direction isn’t free or for a nominal fee, typically between $1 “If you looked at the tools we were using to So far, Liquid has launched only casual definitive, however. Del Castillo said that the and $5. The app store then takes a percentage build games 10 years ago and what we use games for the social and mobile markets. The company could make a console game if the of the revenue, typically about 30 percent. today, it’s just night and day,” he said. “If “Deadline Hollywood” game, which is in a right circumstances presented an opportunity. That means more money for Liquid in the there’s one thing that’s true about our business, testing phase, lets players pick a career path, One benefit for Liquid is the way social long term, but it could also make it more chal- it’s ever changing.” Government: Could State Bill Sack Superstores?

small neighborhood stores, forcing many of duct economic impact studies for all projects should,” Vargas said in a press conference Continued from page 1 them out of business. They believe those issues where the store is at least 90,000 square feet and introducing his bill in February. should be taken into consideration before sells a wide range of items. However, the bill But business groups say cities already have represents business interests in the San Fernan- development approvals. exempts discount warehouses and membership sufficient means of dealing with superstores. do Valley. “This bill would make it virtually “Supercenters don’t create net new jobs,” stores, such as Issaquah, Wash.’s Costco The California Environmental Quality Act impossible.” said Caitlin Vega, lobbyist for the California Wholesale Corp. and Wal-Mart Stores Inc.’s requires environmental impact studies, includ- Waldman pointed to a Sun Valley site that he Labor Federation, which is backing the Sam’s Club stores. The bill will likely go to the ing traffic studies, of major projects such as said could remain vacant for superstore bill. “Rather, full Assembly floor around Labor Day. superstores; in many cases, cities also require years if the law passes. they displace existing additional traffic studies on such projects. Atlanta-based Home Depot COMMENTARY higher-wage jobs at inde- San Diego battle If an economic impact study were Inc. tried to build a store pendent stores and shut Vargas drew up the legislation after the San required, it would mean the developer would President of retailers association there, but was blocked by down a lot of competing Diego City Council backed down in a fight with have to spend additional time and money. opines on proposed law. PAGE 38 local opponents. The law businesses.” Wal-Mart. Last year, the council voted to (The law would require cities to have the could further discourage any Claims that Wal-Mart require economic impact reports for any new studies done but developers to pay.) But of new efforts. and other big-box discounters kill local busi- Wal-Mart stores, but the Bentonville, Ark.- more concern: The studies could bog down “That’s a site that’s ready and available nesses aren’t new; they’ve surfaced repeatedly based retail giant started collecting signatures to projects by giving opponents ammunition to and, if built, a store could be generating hun- over the last two decades. Numerous academic force a ballot referendum on the measure. The oppose a store, much like CEQA has thwart- dreds of jobs,” he said. “With this bill, that site studies have been published on both sides of council repealed its ordinance rather than face a ed many developments. could remain vacant for the next 20 years.” this dispute. multimillion-dollar ballot fight over the issue. Randy Gordon, chief executive of the Long Union and small-business proponents of the The bill – SB 469 by Sen. Juan Vargas, D- “If the San Diego City Council won’t stand legislation say superstores often hurt sales at San Diego – requires cities and counties to con- up to Wal-Mart, the state of California Please see DEVELOPMENT page 35 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL 35

‘We ... thought we could just scare them off with a few letters. We realized it would take a lot more. These people want to steal from us.’ JONATHAN GELFAND, Beachbody LLC Legal: Fake Workouts Frustrate Fitness Company tigators he made $5,000 a month selling the Continued from page 1 DVDs. The information was forwarded to local authorities who arrested the men, who “At first we were naïve and thought we also allegedly were gang members. could just scare them off with a few letters,” The Los Angeles Police Department did said Jonathan Gelfand, the company’s general not provide more information about the arrests. counsel. “We realized it would take a lot more. Also this year, an investigator in China These people want to steal from us.” hired by the company tracked down counter- The company has brought in an in-house feiters to a factory in Shenzhen. After the com- team of attorneys and staffers, as well as out- pany tipped off the Chinese government, side investigators in the United States and authorities there raided and shut down the China, to track the illegal activity. Both groups operation. About 50,000 fake Beachbody kits perform sting operations in which they buy were discovered there. If each one sold for and examine knockoffs for possible civil or $100, it would total $5 million. criminal action. Gelfand cited Nike Inc. and local premium The resulting numbers are impressive: Since denim maker True Religion Apparel Inc. as the beginning of last year, the company has filed companies that are fighting back and which 21 U.S. lawsuits, assisted with nearly a dozen Beachbody models itself after. criminal investigations, sent nearly 3,000 cease- “These are companies that aren’t taking a and-desist letters, and taken down over 1 mil- defeatist attitude,” he said. lion online links that either advertised or made pirated material available for download. Heading to Washington RINGO H.W. CHIU/LABJ In addition, the company sends employees to Flexing Muscle: From left, Beachbody’s Squellati and Gelfand with fake products. The number of seizures of counterfeit mer- ports around the country to teach customs inspec- chandise by U.S. Customs and Border Protec- tors how to spot fakes. It also has hired a team of about half of the company’s total sales last At the company’s Santa Monica office, tion went up 34 percent last year, and was four lobbyists to press legislators in Washington, year. It has become popular from Hollywood piles of fake kits are stacked up in several times higher than in 2001. D.C., for heavier penalties and tighter regulations. to Washington, where some congressmen have rooms. Employees spend all day scouring the The problem has become so bad that before Altogether, the company’s anticounterfeit- organized P90X workouts. Internet for counterfeit products advertised on last year, U.S. Customs officials didn’t even ing budget runs in the millions. Despite its “extreme” appellation, the 90- sites such as Amazon, eBay and Craigslist, specifically track fake exercise equipment, but “Considering the company thinks this costs day program doesn’t need much equipment which have made it exponentially easier to buy now officials say it accounts for 2 percent of $75 million a year, I’m not tied down on get- beyond a chin-up bar and exercise bands. And and sell counterfeit goods. all seizures by Customs officers. ting what I need,” Gelfand said. that has been part of the problem. Often, price-conscious customers searching As the problem has exploded beyond footwear, Beachbody’s fight comes as counterfeiting Unlike home fitness equipment such as for the best deal online can purchase counterfeit apparel and luxury goods makers, businesses have continues to rise and expand outside traditional Nautilus Inc.’s Bowflex, Beachbody’s pro- goods without even knowing it. Some counter- also stepped up their lobbying for stricter regula- industries. The growth of China, a major grams mostly consist of DVDs while the equip- feiters purchase online advertisements so that tions and enforcement. Beachbody spent at least exporter of counterfeit goods, and the rise of ment, such as the exercise bands, can be cheaply their own links appear next to Google search $170,000 on federal lobbyists last year. online marketplaces that directly sell goods to acquired from scores of manufacturers. results when customers search for a product. Under pressure from American businesses, consumers are two major factors. As a result, even though Beachbody sells When Beachbody’s employees spot a pos- the Obama administration in 2009 appointed The company’s aggressive stance isn’t P90X kits for $120, counterfeiters can package sible fake, they buy it and send it to one of sev- an intellectual property czar, Victoria Espinel, uncommon among apparel and luxury goods the DVDs, instructions, a nutrition plan, calen- eral addresses around the country to hide the to battle intellectual property theft. The move companies, but for the moment, Beachbody dar and the bands for a fraction of the price. company’s identity as the purchaser. From was cheered by businesses as an acknowledg- stands out within the home fitness industry, (The bars are often not included, since they there, the merchandise is forwarded to head- ment of the growing problem. said Kris Buckner, owner of Investigative cost more to ship.) quarters for examination. Currently, anticounterfeiting lobbyists are Consultants, a Torrance company that spe- Many fakes are shipped from China, home After verifying the products are pirated, the focusing on trying to pass the Protect IP Act, a cializes in intellectual property investigations. to the world’s biggest counterfeiting industry, marketplaces are notified to take down the list- bill in Congress that would deny access to “You don’t see too many home fitness and resold here. Last year, China was the ing. The company has also had several thousand “rogue” or “pirate” websites, especially those businesses being that aggressive,” he said. “I source of 66 percent, or $124 million, of all websites shut down by reporting them to their outside the United States. Beachbody has lob- would say they are probably the primary folks counterfeit seizures, according to U.S. Cus- respective Internet service providers or hosts. bied for its passage and sent a letter of support. on that front.” toms. Other pirates are domestic and simply The stings can lead to criminal investiga- At least one other home fitness company, copy and sell only the DVDs. tions as well. This year, investigative consul- Hallandale Beach, Fla.’s Zumba Fitness Busy bodies “I would say about 90 percent originate tant Buckner was hired to perform a sting LLC, began implementing serious anticoun- Aided by word of mouth and ubiquitous from China one way or the other,” said David operation on two alleged counterfeiters. Buck- terfeiting procedures earlier this year. The infomercials, Beachbody has sold more than Squellati, the company’s intellectual property ner’s investigators bought allegedly counterfeit company has also set up an in-house team to $400 million of its signature P90X product counsel. “The other 10 percent comes from P90X DVDs from two men in Los Angeles, take down online links, and to pursue civil and since introducing it in 2005. It accounted for people in their garage burning DVDs.” and videotaped the exchanges. One told inves- criminal action against counterfeiters. Development: El Monte Chamber Backs Wal-Mart

levels,” he said. “To add an additional set of downtown retail district that has been strug- a lasting negative impact on these members.” Continued from page 34 requirements is patently absurd.” gling for years.” One of the few business groups supporting In El Monte, chamber officials are con- Local business leaders dismissed claims the Vargas bill is Small Business California, Beach Area Chamber of Commerce, called cerned that if the bill passes and goes into that small, local family-owned businesses are a San Francisco-based organization with about the bill a way to “artificially stymie” develop- effect Jan. 1, it could derail a Wal-Mart store hurt by superstores. 1,200 members throughout the state. ment of large retail facilities. planned for the downtown area. Negotiations “What the bill’s proponents don’t under- Scott Hauge, the group’s president, said Other local business groups opposed to the between Wal-Mart and the city have dragged stand is that superstores bring more overall that council members need to carefully consid- Vargas bill include the Redondo Beach on for years and the project faces a lawsuit customer traffic into the area,” said Ruben er competition issues before granting approvals Chamber of Commerce, the South Bay from nearby residents. Guerra, chairman and president of the Latin for superstores. Association of Chambers of Commerce, the The proposal could go to a City Council Business Association. “Some of that traffic can “Some small businesses have been put out Latin Business Association, the El Monte- vote in November or December. stop at other nearby stores and it’s up to those of businesses after superstores move in,” said South El Monte Chamber of Commerce and But if the council doesn’t vote by the end of stores to market and position themselves to Hauge, who acknowledged superstores in the the Central City Association. the year, chamber officials are concerned the take advantage of this.” right location can provide a boost to local com- The Los Angeles Area Chamber of Com- Vargas bill could be a death knell for the project. Guerra said Wal-Mart and other superstores munities. But he noted that poorly placed merce has not taken a position on the bill, have been a boon to minority communities superstores can adversely affect existing busi- though Chief Executive Gary Toebben told the ‘Lost opportunity’ because of the chains’ diversity programs in nesses and lead to a net jobs loss. Business Journal last week that the chamber “This legislation would either slow down hiring, contracting and sourcing. “Sure, it may take a little more time to do will likely vote to oppose the bill at an upcom- the Wal-Mart or halt it altogether,” said “Some of our members have grown their this type of study,” Hauge said. “But it seems ing board meeting. Richard Nichols, executive director of the El companies because they sell to Wal-Mart or logical to stop for a moment and look at what a “There are already enough regulations for Monte-South El Monte chamber. “If that Home Depot,” he said. “Stopping the growth superstore will do to existing stores and the major project approvals at the state and local happens, it would be a lost opportunity for a of those stores in our communities could have economic health of the community.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

36 LOS ANGELES BUSINESS JOURNAL COMMENTARY AUGUST 8, 2011 LOS ANGELES BUSINESS JOURNAL ® Business of Doing the Right Thing 5700 WILSHIRE BLVD., SUITE 170, LOS ANGELES, CA 90036 UPER-successful business people tend to be Of course, he graduated first in his law class. He stayed humble and was noted for driving a Sub- (323) 549-5225 FAX 549-5255 brilliant, hard working, optimistic. And a Most beginning lawyers have their hands full aru he got from one of his dealerships. Of course, www.labusinessjournal.com subset of the super-successful – the special with their new career. But that just wasn’t enough the graduate management school at UCLA is S PUBLISHER & CEO and few ones – also are generous, humble and for him, so he taught taxation and corporate law named for Anderson, thanks to the $15 million gift MATTHEW A. TOLEDO strive to empower others. mornings and evenings at Loyola. from him and his wife, Marion, in 1987. They fol- [email protected] | ext. 207 Los Angeles lost one of those spe- He co-founded a local law firm in lowed that up this spring with a $25 million gift, cial few July 29 when John E. Ander- 1953, which started his amazing the largest in the school’s history. EDITOR CHARLES CRUMPLEY son died at age 93. entrepreneurship phase. He soon was The Business Journal named Anderson its Busi- [email protected] | ext. 208 Anderson was born in Minneapo- offered a struggling Hamm’s beer dis- ness Person of the Year in 2004, the third person to DESIGN DIRECTOR ROBERT LANDRY lis to a barber and an immigrant tributorship, which he bought with a get that honor. [email protected] | ext. 243 mother who had spent time in an loan, and turned it into a success. He When we caught up with him two-and-a-half MANAGING EDITOR LAURENCE DARMIENTO orphanage. He came here in 1936 bought numerous other beverage dis- years ago for our annual Special Report about [email protected] | ext. 200 during the Great Depression to attend tributorships (including a local older workers named Eight Over 80, we asked him DEPUTY MANAGING EDITOR UCLA on a hockey scholarship. Anheuser-Busch distributorship), got why he hadn’t retired. “I enjoy working,” he said. STEVE SILKIN From those humble beginnings, he involved in real estate, car dealerships, “I look forward to it every day. I own and operate [email protected] | ext. 229 NEWSDESK EDITOR ended up a billionaire. COMMENT financial services – dozens of enter- 42 companies, and each and every one of them is TOM HICKS Brilliant? Well, consider that he prises in all. This self-made man had a making money. I especially enjoy working with [email protected] | ext. 223 was valedictorian of his high school net worth of $2.59 billion last spring, other people.” REPORTERS CHARLES RICHARD CLOUGH and graduated Phi Beta Kappa from when he ranked No. 14 on the Busi- He allowed that he had slowed down a bit: He [email protected] | ext. 251 CRUMPLEY DEBORAH CROWE UCLA, which helped him get another ness Journal’s List of Wealthiest no longer worked more than eight hours a day, [email protected] | ext. 232 scholarship – to Harvard Business Angelenos. although he still logged five- and six-day work- HOWARD FINE School, where he earned his M.B.A. A lot of his success came from his abiding weeks. His age at the time: 91. [email protected] | ext. 227 ALEXA HYLAND When he graduated, World War II was under belief in people. Many of his managers got no The most unsurprising part of that interview [email protected] | ext. 235 way, so he went into the Navy. This is where his salaries but a cut of the profits. According to a came when we asked him what advice he’d give. NATALIE JARVEY [email protected] | ext. 230 work ethic began to define his days. He passed his 2004 article in the Business Journal, five general “Work hard,” he said. “Also, I believe very JAMES RUFUS KOREN CPA exam while in the military. When he returned managers at Anderson’s car dealerships at the strongly that you should always be ethical in your [email protected] | ext. 225 ALFRED LEE to Los Angeles, he began work at the Arthur Ander- Thousand Oaks Auto Mall got to keep an unusual- business. Always do the right thing.” [email protected] | ext. 221 sen accounting firm, but went to Loyola Law School ly generous 20 percent of their net profits. “It’s JONATHAN POLAKOFF almost like they are partners,” one executive was Charles Crumpley is editor of the [email protected] | ext. 239 at night, where he later recalled, he studied in the JOEL RUSSELL library so late every evening that the dean finally quoted saying in that article. Business Journal. He can be reached at [email protected] | ext. 237 JACQUELYN RYAN gave him the keys to the place so he could lock up. His favorite saying was “Do the right thing.” [email protected]. [email protected] | ext. 228 REPORTING INTERN DENIZ KORAY [email protected] | ext. 263 LABJ FORUM VISITING FELLOW HEEJIN PARK [email protected] | ext. 241 CHIEF EDITORIAL PHOTOGRAPHER Matt Karatz was recently named job czar for What do you RINGO H.W. CHIU the city of L.A., charged with smoothing the think of efforts [email protected] | ext. 256 Business RESEARCH DIRECTOR permit process, among other business-friendly to improve the DAVID NUSBAUM improvements. So the Business Journal asks: permit process? [email protected] | ext. 236 Friendlier? VICE PRESIDENT OF ADVERTISING JOSH SCHIMMELS [email protected] | ext. 218 ASSOCIATE SALES MANAGER ELLIA THOMPSON LOUIS DIENES thing in its power to help businesses, not creating DARRIN SENNOTT Attorney Partner more obstacles. The current process is tedious, [email protected] | ext. 220 ADVERTISING ACCOUNT CA Land Use Professionals LLP TroyGould PC inconsistent and time-consuming – so much so that MANAGERS The city’s plan must provide Time is money. Making the permit and devel- projects can run out of money and go over budget JESSICA ANNAS [email protected] | ext. 240 enough case managers to han- opment process faster and easier means more while waiting on the city to act. NAZ BAYAZIT dle the load. If each case man- money in the local economy sooner. [email protected] | ext. 253 LATOYA KNIGHT ager is saddled with dozens of ROBERT BRAUN [email protected] | ext. 214 cases, the logjam will continue. STUART WALDMAN Partner BILL MOIR President Jeffer Mangels Butler & Mitchell LLP [email protected] | ext. 216 Likewise, the city needs an ade- ROSZ MURRAY quate number of hearing offi- Valley Industry and Commerce Association I think it would make a huge difference, but I [email protected] | ext. 215 JIM SLATER cers and associate zoning The city of Los Angeles must do something to think it’s unlikely to happen. Changing the rules is [email protected] | ext. 209 administrators to decide cases improve its permit and development process. In easy; changing the mind-set of the people who Thompson SPECIAL EVENTS/ in a timely manner. this economy, government should be doing every- process the rules is hard. ADVERTISING COORDINATOR MARISSA DE LA CRUZ RON BURKHARDT [email protected] | ext. 213 Managing Director PRODUCTION ARTISTS SALLY FOSTER Newmark Knight Frank [email protected] | ext. 212 PATTY TSAI-CHU Businesses highly depend on having their new [email protected] | ext. 242 offices open on time or early. This is critical, espe- CIRCULATION DIRECTOR cially if they are hiring new employees. It looks MICHAEL LEVINE extremely bad when a jurisdiction in greater Los [email protected] | ext. 247 CUSTOMER SERVICE Angeles delays the permit and development process. LE MILLHAUSER [email protected] | ext. 245 ZAINABU BRYANT Los Angeles Business Journal Poll [email protected] | ext. 244 NEW BUSINESS DEVELOPMENT L.A. City Hall administrators are still trying to REPRESENTATIVE make the permit and development process JEFF LYON [email protected] | ext. 210 faster and easier. Do you think: CONTROLLER Our local The permit NANCY SCHWARTZ economy process is [email protected] | ext. 202 depends basically ACCOUNTS RECEIVABLE on it. OK. SPECIALIST PATRICIA A. BENSON 56% [email protected] | ext. 231 ASSISTANTS TO THE PUBLISHER 10% BETH THERIAC [email protected] | ext. 249 PAUL KNEZEVIC [email protected] | ext. 203 34% RECEPTIONIST It's unlikely ERIN SCHAUER that anything [email protected] | ext. 270 will change.

CITY BUSINESS JOURNALS Online results for week ended Aug. 3 NETWORK 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 COMMENTARY LOS ANGELES BUSINESS JOURNAL 37 On the Right Track Beverly Hills merchants should know other cities’ high-end retail centers have benefited from subway access.

By DAVID C. MURPHY

OME Beverly Hills merchants and building owners expressed concern in the July 11 issue of the Business Journal about the S effect the Wilshire-Rodeo subway station would have on the neighborhood (“Subway to the Sea? Don’t Stop at Rodeo Drive.”). While I strongly share the desire to protect this world-famous district, I believe these fears are unnecessary, and that the subway will be a great asset for Beverly Hills businesses, commuters and residents. An examination of luxury shopping districts in other cities around the world with subway systems is instructive. Before moving to Beverly Hills, I grew up in Chevy Chase, Md., close to a subway stop on the Washington Metro system. What kind of effect did the subway station there have? Far from destroying the affluent neighborhood, the area around the station instead has blos- somed in the 26 years since it opened. Affluent residents want to live near the subway station so they can easily commute to law firms and well-paying jobs downtown; the average household income within one mile of the subway station is $192,474. Others from around the region can easily use the subway to RINGO H.W. CHIU/LABJ come to the area and shop. In fact, a few years ago, a develop- Foot Traffic: Visitors to Two Rodeo Drive in Beverly Hills’ Golden Triangle shopping district. ment opened near the subway stop that the Washington Post described as Washington’s answer to Rodeo Drive. Literally less than 400 feet from the subway station escalators, Bulgari, No, a subway station need not be the end of an affluent busi- Retailers and restaurants should see more business; by mak- Dior, Gucci, Jimmy Choo, Louis Vuitton, Max Mara, Ralph ness district. In fact, it can be quite an asset. As Beverly Hills ing it easier to get here, professionals from Century City or Lauren, Cartier and Tiffany & Co. all set up shop. Councilman John Mirisch rightfully pointed out, parking in the downtown will be more likely to come to Beverly Hills for Office landlords have benefited, too: The Ritz Carlton Hotel Co. Golden Triangle is a problem that the subway can help mitigate. lunch meetings. Landlords will see increased leasing demand in moved its corporate headquarters there, and Microsoft rented space. But while the subway will serve retail workers and help the the long term, as the subway will help attract high-end tenants Meanwhile, another affluent part of the Washington area – transit dependent, the fact is that a properly built-out subway sys- who want to make commutes easier for workers. Georgetown – suffers without a subway station. Parking is a tem will also attract white-collar and affluent riders. On a grid- I would even posit that Rodeo Drive merchants’ revenues chore. Luxury retailers that Angelenos associate with Rodeo locked route such as this, the subway will be much faster than the will actually increase as tourists and SoCal residents can easily Drive have chosen Chevy Chase, not Georgetown, for their car. Riders can whiz under cars stuck in gridlock on the streets, get to Rodeo Drive to spend their dollars. Less time in gridlock Washington-area locations. traveling underground at speeds of 30 to 70 miles an hour. equals more time for shopping! Merchants and landlords should Might Washington be a fluke? Surely the subway has Time is money. Beverly Hills residents could dine at Scar- embrace the station as a way to gain an advantage over compet- destroyed luxury areas in other parts of the world? Well, the petta or Bouchon Bistro for a pretheater meal before a relaxing ing local shopping districts. Paris Louis Vuitton flagship on Champs-Élysées is adjacent to ride downtown to the Music Center in half the time it takes to We simply cannot let well-intentioned, but I believe unneeded, the Métro’s George V station (the station opened in 1900 and fight traffic in a car. Professionals commuting to downtown fears about the subway sidetrack this station. As seen in cities from doesn’t seem to have spelled doom for the area). The Four Sea- jobs will take the subway in droves. Many drivers who don’t Washington to Paris to London, subway stations need not be the sons Hotel George V, ranked among the world’s finest hotels, is think they’d take public transit actually will ride this new sub- destroyers of luxury shopping communities. Stations bring enormous a short walk down the street. Elsewhere in Paris, the Ritz, and way route when they see how it can cut their travel time com- value to businesses, land owners, commuters and residents, and I perfumeries and boutiques around plaza Vendôme are sur- pared with gridlock at its everyday worst. believe we will come to greatly value ours here in Beverly Hills. rounded by not one but six subway stops within a five- to 10- The subway will be the single biggest improvement to quali- minute walk. In London, Slone Street and Bond Street luxury ty of life for Beverly Hills residents and commuters in decades. David C. Murphy is a Beverly Hills resident and is president of shopping areas are surrounded by Tube stops. And, I believe, it will be a significant benefit for businesses. Angelenos Against Gridlock. Neighborly Approach Would Help State Government

By JOHN COX bers of the Senate and Assembly – yes, there would be a lot of monied interests seem to hold the most power, would come them – would each get a nominal stipend of $1,000 per year and back into the public debate. It would be reasonable to expect UR once-Golden State is in financial crisis, dragging our actual expenses reimbursed. Members of the working commit- more people to register and vote, reversing a turnout trend that great metropolitan areas like Los Angeles down with it. tees – both Senate and Assembly – would each receive $10,000 has been abysmal of late. O Our state is overwhelmed by debt, which is ever per year plus actual expenses (limited to $100 per day). This, Who would run for these positions? The evidence from New increasing with continual deficits. Regulations have multiplied plus savings in staff and offices, erases almost $200 million per Hampshire (where there are 400 representatives – paid $100 per along with the burden of taxation on business. year from the budget. year – for approximately 1,32 million people) suggests that many The economy struggles, proportionately more people are unem- How would the Legislature work? Contact with the electorate retirees would run, bringing experience and wisdom, along with ployed in California than in the rest of the country and businesses would be predominantly local, and – just as it is in businesses businessmen and -women, who would be able to fit the part-time are fleeing. The Los Angeles County Economic Development today – there would be extensive use of the Internet for the func- activity into their schedules, given their expertise at multitasking Corp.’s 2011-12 “Economic Forecast and Industry Outlook” says tioning of legislative business. Neighborhood representatives and collaborating over the Internet. Maybe some young people unemployment in the county will be “painfully high” through 2012. could bring concerns to their working committee member and would run, especially the unemployed who have a right to be The dismal performance of the state represents the symptom since it is a small number required to elect a working committee angry at the current incumbents and what they are doing to the of the problem; the cause lies in its political structure. Today, member, there would be much greater responsiveness. The state’s job prospects. Certainly, representation would be more there are 80 Assembly members and 40 state senators for working committees will form the same types of subcommittees local and more responsive to local business issues than today’s approximately 39 million inhabitants. That’s almost a half-mil- the Legislature currently has – but the volume of bills would be highly paid professional politicians in Sacramento. lion people per representative and 1 million per senator. To less without campaign donors dictating what goes on. People would serve for the honor and duty involved in public compete and win an election requires great amounts of money service, not for career gain or money. Isn’t that how our country to fund an army of ground troops as well as an advertising cam- ‘A lot of them’ was formed and intended to operate? The public agrees with us – paign. Currently, we elect fundraisers, not policymakers, and The working committees would do what the Legislature we have done initial surveys and this proposal is favored by 60% special interests, not good policy, rule the debate. does now – hold hearings, draft legislation, etc. Bills that pass of participants, a sizable number given it is such a new idea and We propose to change this by dividing up each of the existing the working committee of each house would then have to be has had little in the way of discussion in the media. Senate and Assembly districts (large districts) into about 50 submitted to the neighborhood representatives for passage with We are a group of concerned residents who want to see our “Neighborhood Districts,” which would consist of 20,000 persons no amendment. The entire Legislature (working committees great state not only survive but thrive in the years ahead. We per Senate seat 10,000 per Assembly seat. Each year, these 50 sen- and neighborhood representatives) would serve for the same have run this idea by academics and activists on both sides of ators and Assembly members elected from each large district terms with the same term limits as currently exist. the partisan divide and they are greatly supportive. You will see would hold a convention where they would select from their num- Look at Los Angeles County, home to approximately 10 that much smaller districts will make our representatives more ber one member each of the Senate and Assembly working com- million individuals. It would elect about 1,000 neighborhood accountable, more devoted to solutions and truly return power mittees. These working committees would be the same size as the representatives for the Assembly and 500 for the Senate. Many to the people. current Legislature, but with a very big difference; they would be local areas and ethnic groups would be able to elect their own elected without running expensive and time-consuming campaigns. representative, giving them a voice for the first time. Those John Cox is president of Rescue California Educational The neighborhood representatives would be elected mem- who are turned off by the current system, in which the big Foundation Inc. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

38 LOS ANGELES BUSINESS JOURNAL COMMENTARY AUGUST 8, 2011 Driving the Overtime Debate Carmaggedon’s traffic-free weekend points out the need to revisit state laws that hinder work schedules.

By BRENDAN HUFFMAN Despite labor’s EVERAL lessons can be learned from Carmageddon 1, success at blocking among them that when Angelenos are faced with the flexible workweek S need to adjust to emergency situations, we do. We did it after the collapse of two major freeways following the 1994 schedules in Northridge Earthquake, and during the Rodney King riots and California, more O.J. Simpson’s infamous drive through Westside neighbor- employees are hoods in 1994. requesting alternative The other lesson is that when commuters take the day off from work, our congestion is noticeably reduced. workweek schedules I happened to be on the Ventura (101) Freeway west of the from their bosses – San Diego (405) Freeway on the two afternoons preceding the and being denied. Sepulveda Pass shutdown. On Thursday afternoon, the freeway was more congested than usual with what I suspect were hordes of people running errands and traveling away from Los Angeles before the closure. However, on Friday afternoon, the 101 resembled what we regularly see on Sunday mornings – far fewer cars making for a pleasant ride. Obviously, many commuters took Friday off from work to Clear Sailing: San Diego (405) Freeway during July 16-17 weekend. avoid the potential headaches, while many employers closed early to give their employees time to get home in case of a mad rush on local freeways. All of this got me thinking again about California’s unique Even though many unions, such as public safety personnel, nurs- muters could work one day less per week, that could result in daily overtime laws and how the Legislature resists efforts to es and entertainment guilds, have negotiated contracts that allow thousands of cars not idling along the Sepulveda Pass. join rest of the country and make them friendly for commuters them to work more than eight hours in a day without overtime (in Working parents could spend one day per week with their and families. return for other concessions from employers), the labor move- kids or volunteering in classrooms, school libraries, local parks As most California business people know, the state is one of ment as a whole opposes giving exemptions to nonunion employ- or other places in need of support. just two that require employees to be paid overtime after work- ees. Instead, they would prefer that these workers organize and Air quality would improve with fewer cars on our freeways ing eight-hour days instead of 40-hour workweeks. These over- negotiate with their employers under labor’s umbrella. and better traffic flow. time laws were enacted generations ago, long before California Productivity would increase in the workplace as employees became a diverse economy, more recently evolving into a ser- Schedules denied got to work a little sooner and with less stress. vice sector economy. In those days, many of California’s jobs Despite labor’s success at blocking flexible workweek Economic activity would increase as workers with the day were physically draining, such as in agriculture or in manufac- schedules in California, more employees are requesting alterna- off would probably run a few errands and spend some money, turing, and Sundays were often the only day off. tive workweek schedules from their bosses – and being denied. perhaps buying lunch somewhere, getting a pedicure, purchas- Today, California is different. Of course, there are many Under California’s daily overtime laws, flexible workweek ing something to make for dinner. jobs that can suck the life out of you after just a few hours, but schedules are only allowed if two-thirds of the affected employ- So why not allow employees to request a four-day, 10- an increasing number of us now work in sectors where we can ees vote via secret ballot to do so, and workers are scheduled to hours-a-day workweek without necessitating a two-thirds vote take a few minutes to zone out and confidentially update Face- work for not more than 10 hours in a 24-hour period nor more of the entire work force? book or play solitaire on the company’s computer system. than 40 hours in a week. Around the country, such workweeks have been good for More and more of us are commuting from even farther distances As you can imagine, not too many companies have been able working parents, traffic flow, emission reduction and employee to work as the price of housing and the allure of larger backyards to implement an alternative workweek schedule because of the morale. We don’t need to wait for the next Carmageddon to has attracted us to communities such as Simi Valley and Valencia. two-thirds vote rule (which, interestingly enough, was not modi- enjoy less congested roads on weekdays, do we? Every year, legislation is introduced to make it easier for fied after labor backed Proposition 25 last year, which now allows employees to request alternative workweek schedules without the budget to be passed with a simple majority). Furthermore, Brendan Huffman is the owner of Huffman Public Affairs, a triggering overtime and adding costs to their employers. And individual workers cannot request their own alternative workweek Studio City-based firm specializing in association management every year, these bills never pass out of the first legislative com- schedules even if their employers want to accommodate them. and strategic communications. He also hosts “Off the Presses” mittee hearings. The unions hate these bills. Now, back to Carmageddon. Just think what a four-day, 10- on LATalkRadio.com, which features in-depth conversations From labor’s standpoint, California’s eight-hour day is sacred. hours-a-day workweek would do to relieve traffic. If com- with office holders, journalists and other opinion leaders. State Measure Would Box In Local Communities on Growth

By BILL DOMBROWSKI analysis and found several issues with SB 469 and reported its tives. The analysis found that SB 469 is so over-reaching that it findings in “Analysis of SB 469,” June 2011. Specifically, they extends to “the issuance of any entitlement, including, but not HERE is legislation moving through the Legislature that found that not only is this bill not needed, but also it just won’t limited to, a building permit.” For example, if a superstore would harm communities seeking to draw large-scale work. desires to retrofit its building by installing solar power systems T retail business as a means of helping boost local revenue. The study concludes: “The greatest obstacles to the satisfac- and other sustainable improvements to help reduce greenhouse Senate Bill 469 would add a layer of regulation to business by tion of the proposed bill include the vagueness and overly broad gas emissions, SB 469 would require a complex and very requiring another economic and community impact analysis nature of some of the required elements, an uncertain threshold expensive economic impact report and a public hearing, just to report on top of the current requirements under the California of accuracy, the potentially subjective nature of some of the pull a permit – which would be a disincentive to ever make any Environmental Quality Act and extensive public hearings for required assessments, and the likely exposure of all parties to sustainable retrofit improvements. That’s exactly the wrong retail developments that are 90,000 square feet or larger. litigation and delays associated with agreement on findings and way to promote environmentally sound policies, particularly Angelenos may be familiar with this type of policy, as SB fulfillment of the proposed law, SB 469.” here in Southern California. 469 mandates a similar economic impact study to what the city The Kosmont study found several major problems with the But here is the most surprising thing about this whole of Los Angeles has in place for approving large-format stores way the bill is written, and each red flag poses major challenges debate: Local governments like Los Angeles already perform over 100,000 square feet. And cities have the authority and the to the effectiveness of this bill. economic impact statements and carefully vet these superstores right to do what is best for their communities. Unfortunately, First, the bill proposes vague requirements and subjective before they are built. Why would the state government need to this legislation is not only poorly written but it would remove assessments. The excessively vague nature of SB 469 and its interfere? local governments’ authority to do what is best for its citizens many subjective assessments may create burdensome hurdles When SB 469 was introduced, we believed it to be bad busi- and install a one-size-fits-all law that may not be best suited for and will foster an environment of litigation. ness legislation. However, with this study, we know it is not just each community. For example, the “approval” of the economic impact report bad for business, it’s bad for California and it’s bad for Los While elected officials, business leaders and community is undefined and provides no clear direction. There is no men- Angeles. groups already believe this bill to be unnecessary bureaucracy, tion of who the approval needs to be from; it does not indicate I encourage legislators to look hard at SB 469 and determine the California Retailers Association commissioned an indepen- by what process the approval must be done; it does not indicate whether their districts need another ambivalent law to decipher, dent study to analyze the practical effects of SB 469 on Califor- what criteria is needed for the approval or what decision-mak- another policy that is actually a disincentive and more duplica- nia communities. ing entity determines whether the economic impact report is tive policies that inhibit economic opportunity. Downtown L.A.-based Kosmont Cos., a trusted network of adequate. In other words, the bill calls for an economic impact analysts with expertise in land-use, urban decay and net/fiscal report but gives no guidance for how it should completed. Bill Dombrowski is president of the California Retailers impact analyses on behalf of project proponents, performed this Second, the bill actually provides environmental disincen- Association. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

AUGUST 8, 2011 INDEX LOS ANGELES BUSINESS JOURNAL 39

‘It was a lot more ‘Acting helps with ‘Have you ever dangerous and being a litigator seen their dress difficult than I and trial lawyer.’ whites? They are thought it was CYNDIE M. CHANG, smoking hot.’ going to be.’ Duane Morris LLP, Dr. JAY GROSSMAN, GARY NELSON, Christie on her improv training, Dr. Jay Grossman & Parker & Hale LLP, on PAGE 3 Associates, climbing Mount Everest, on joining the Navy, PAGE 3 PAGE 17

PEOPLE Dharmaraj, Satish ...... 12 I N St. Clair, Randal ...... 5 Dienes, Louis ...... 36 Ishii, George ...... 12 Nahra, Lynda ...... 12 Dix, Elliot ...... 3 Israyelyan, Mikayel ...... 5 Nelson, Gary ...... 3 T A Dombrowski, Bill ...... 38 Nichols, Richard ...... 1/34 Taylor, Steve ...... 5 Anderson, John ...... 14 J Norris, Thomas ...... 3 Thomas, Greg ...... 12 E Jacobs, Jack ...... 3 Anderson, Marion ...... 14, 36 Ebbink, Warner ...... 3 O Thompson, Ellia ...... 36 Jelenic, Thomas ...... 8 Thornton, Michael ...... 3 B Epsteen, Jack ...... 3 O'Cull, Christopher ...... 6 Bain, Howard ...... 12 Epsteen, Julie ...... 3 K Owen, Joshua ...... 8 Toebben, Gary ...... 1/34, 3 Epsteen, Levon ...... 3 Tompkins, Destin ...... 6 Bernstein, Ken ...... 5 Kane, Michael ...... 1/33 P Espinel, Victoria ...... 1/35 Tsabag, Moshe ...... 1/33 Blomstrom, Bruce ...... 12 Kelsey, Ed ...... 5 Parmentier, Patrick ...... 4 Boudet, Brandon ...... 3 King, Rodney ...... 38 F Perry, David ...... 1/33 U Braun, Robert ...... 36 Franco, Natalia ...... 6 Kleinhenz, Robert ...... 24 Peters, Phil ...... 3 Ulm, Chris ...... 1/34 Brill, James L...... 7 Kurland, Stanford ...... 12 Pidgeon, Billy ...... 1/34 Bronson, Richard D...... 37 G Prendergast, Jerry ...... 5 Brown, Jerry ...... 37 Gelfand, Jonathan ...... 1/35 L V Buckner, Kris ...... 1/35 Gholami, Carlo ...... 1/33 Lee, David Y...... 28 R Van Den Berkmortel, Arjan ...... 12 Burkhardt, Ron ...... 36 Gordon, Randy ...... 1/34 Lenow, Patrick ...... 6 Reid, Harry ...... 37 Vargas, Juan ...... 1/34 Gordon, Zorik ...... 8 Lenz, Mary Lynn ...... 12 Ryan, Paul ...... 1/35 Vega, Caitlin ...... 1/34 C Grayford, Mike ...... 1/34 Libow, Michael ...... 24 Vodrey, TK ...... 3 Cakmak, James ...... 8 S Greif, Lloyd ...... 5 Lin Perrella, Melissa ...... 8 Castro, Fidel ...... 3 Grossman, Jay ...... 15/16 Schwarz, Don ...... 3 W Scully, Joe ...... 12 Chang, Cyndie M...... 3 Guerra, Ruben ...... 1/34 M Waldman, Stuart ...... 1/34, 36 Chinea, Manuel ...... 12 Shannon, Kevin ...... 28 Guseinov, Gary ...... 12 McKibben, Scott ...... 12 Wilson, Andrew ...... 28 Craig, Paige ...... 12 Shapiro, Stephen ...... 28 H Meruelo, Richard ...... 5 Sidhu, Nancy ...... 1/33 Wilson, David ...... 28 D Harris, Kevin ...... 12 Metchek, Ilse ...... 1/33 Silber, Jeffrey M...... 7 Dameris, Peter ...... 7 Hauge, Scott ...... 1/34 Mirisch, John ...... 37 Simpson, O.J...... 38 Y Del Castillo, Ed ...... 1/34 Holzhaus, Dominic ...... 8 Moore, Demi ...... 1/35 Smith, Matt ...... 12 Yang, Zao ...... 12 Denton, Joy ...... 28 Huffman, Brendan ...... 38 Murphy, David C...... 37 Sommer, Tobey ...... 7 Yanow, Tony ...... 5

COMPANIES, Cornerstone Apparel Inc...... 1/33 Huffman Public Affairs ...... 38 Morgan Keegan & Co. Inc...... 6 Sega Corp...... 1/34 Costco Wholesale Corp...... 1/34 MPG Office Trust Inc...... 14 Sierra Club ...... 8 ASSOCIATIONS, ETC. I Couture the Clothing Co...... 1/33 Small Business California ...... 1/34 CyberDefender Corp...... 12 IHOP ...... 6 N International Lease Finance Corp...... 14 Natural Resources Defense Council . . . . .8 Sotheby's International Realty ...... 28 A D Investigative Consultants ...... 1/35 Nautilus Inc...... 1/35 South Bay Association Ability/Tri-Modal ...... 8 D&D Door & Hardware Co...... 3 NBC Universal Inc...... 3 of Chambers of Commerce ...... 1/34 Acorn Loan Portfolio Deadline Hollywood ...... 1/34 J Nevolution LLC ...... 12 Sports Club Co...... 14 Private Owner IV LLC ...... 12 DineEquity Inc...... 6 J2 Global Communications Inc...... 14 Newmark Knight Frank ...... 36 Staar Surgical Co...... 14 Aecom Technology Corp...... 14 DirecTV Group Inc...... 14 Jamison Realty Advisors ...... 28 Nike Inc...... 1/35 SunTrust Banks Inc...... 6 Aercap Holdings NV ...... 14 Dole Food Co...... 14 Jeffer Mangels Noncom Properties ...... 28 SunTrust Robinson Humphrey Inc...... 7 Butler & Mitchell LLP ...... 36 AeroTurbine Inc...... 14 Dotomi ...... 14 Northridge Insurance Agency ...... 4 Supperclub ...... 5 American Golf Corp...... 3 Dr. Jay Grossman & Associates . . . .15/16 Jewish Community Foundation Northrup Grumman Corp...... 3 American Trucking Associations ...... 8 DSP Group ...... 1/33 of Los Angeles ...... 4 T O Amgen Inc...... 14 Duane Morris LLP ...... 3 K Target Corp...... 1/34 Anheuser-Busch Cos. Inc...... 36 Oaktree Capital Management LP ...... 12 Tavern on 2 ...... 4 E Karen Kane Inc...... 1/33 On Assignment Inc...... 7 Anschutz Entertainment Group ...... 14 Taylor Fund L.P...... 5 Edison International ...... 14 Kosmont Cos...... 38 Apple Inc...... 12 Tetra Tech Inc...... 14 El Monte-South El Monte K-Swiss Inc...... 14 P Applebee's Neighborhood Grill & Bar . . . . .6 Pacific Western Bank ...... 12 Times Community News ...... 14 Appy Entertainment Inc...... 1/34 Chamber of Commerce ...... 1/34 L Employment Pasadena Bioscience Collaborative . . . . .12 Tom Bergin's Tavern ...... 3 Atari Inc...... 1/34 LAC Basketball Club Inc...... 3 Pasadena Tournament Tony's Darts Away ...... 5 Development Department ...... 1/33 Latin Business Association ...... 1/34 of Roses Association ...... 12 Topa Equities Ltd...... 14 B Equinox ...... 14 Lee & Associates West Los Angeles . . . . .28 Banco Popular ...... 12 PennyMac Mortgage TroyGould PC ...... 36 F Lexington Institute ...... 3 Investment Trust ...... 12 Beachbody LLC ...... 1/35 Liquid Entertainment LLC ...... 1/34 True Religion Apparel Inc...... 1/35 Behringer Harvard ...... 28 Facebook Inc...... 3 Playhouse ...... 5 Tutor Perini Corp...... 4 Federal Deposit Insurance Corp...... 12 Los Angeles Area Popular Community Bank ...... 12 Belasco ...... 5 Chamber of Commerce ...... 1/34, 3 BetterWorks Inc...... 4, 12 Financial Guaranty Insurance Brokers . . . .12 Popular Inc...... 12 U Forever 21 Inc...... 1/33 Los Angeles City Council ...... 14 Port of Long Beach ...... 8 BMO Capital Markets Corp...... 7 U.S. Digital Gaming ...... 37 Los Angeles Daily News ...... 14 Professional Business Bank ...... 12 G Los Angeles Economic UCLA Anderson C PS Business Parks Inc...... 14 Golden Road Brewing ...... 5 Development Corp...... 1/33 School of Management ...... 14 CA Land Use Professionals LLP ...... 36 Google Inc...... 8, 28 Los Angeles Kings Hockey Club LP ...... 3 R California Association of Realtors ...... 24 V GR Match LLC ...... 12 Los Angeles Newspaper Group ...... 14 RBC Wealth Management ...... 3 California Fashion Association ...... 1/33 Valley Industry and Greif & Co...... 5 Los Angeles Times ...... 14 ReachLocal Inc...... 8 California Labor Federation ...... 1/34 Guthy-Renker LLC ...... 12 Los Angeles Times Media Group ...... 14 RealD Inc...... 14 Commerce Association ...... 1/34, 36 California Retailers Association ...... 38 Love Culture LLC ...... 1/33 Redondo Beach ValueClick Inc...... 14 CB Richard Ellis Group Inc...... 4, 28 H Chamber of Commerce ...... 1/34 Velvet Heart ...... 1/33 Central City Association ...... 1/34, 3 Health Net Inc...... 14 M Redpoint Ventures ...... 4, 12 W Children’s Hospital Los Angeles ...... 14 HealthCare Partners Inc...... 7 M2 Research ...... 1/34 Reliance Steel & Aluminum Co...... 14 Christie Parker & Hale LLP ...... 3 Hemispherectomy Foundation ...... 3 Macerich Co...... 3 Ronald Reagan UCLA Medical Center . . . .14 Wal-Mart Stores Inc...... 1/34 City of Long Beach ...... 8 Herbalife Ltd...... 14 Mattel Inc...... 3 RPA Inc...... 3 Walt Disney Co...... 3 Coldwell Banker ...... 24 Home Data ...... 24 Mercury General Corp...... 14 Westside Estate Agency ...... 28 Condor Squadron Officers Home Depot Inc...... 1/34 Meruelo Maddux Properties Inc...... 5 S Wounded Warrior Project Inc...... 3 & Airman Association ...... 3 HSBC Bank USA ...... 12 Mohawk Bend ...... 5 San Diego City Council ...... 1/34 Consensus Inc...... 3 HSBC Holdings PLC ...... 4 Montage Beverly Hills ...... 28 Scanlon Guerra Burke Z Continental Alloys & Services Inc...... 14 Hudson Pacific Properties Inc...... 28 Montage Hotels & Resorts LLC ...... 28 Insurance Brokers ...... 4 Zumba Fitness LLC ...... 1/35

These indexes list the people, businesses, associations, organizations, schools, etc., that are named in this week's issue. The numbers refer to the page on which the name is found. Numbers with slashes refer to pages on which lengthier articles are located that contain the name. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

40 LOS ANGELES BUSINESS JOURNAL AUGUST 8, 2011 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

DIGITAL EDITION USERS GUIDE | TABLE OF CONTENTS Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your ﬁngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.

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DIGITAL EDITION USERS GUIDE | NAVIGATION TOOLBAR Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your ﬁ ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.

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Reading Instructions (start here if you have already downloaded the Digital Edition into your browser)

1. Save the Los Angeles Business Journal Digital Edition in an easily accessible folder on your computer. We suggest creating a Digital Edition folder in your Documents Folder where you can save each issue of the Digital Edition. 2. Go do the folder with the Digital Edition, locate the Digital Edition icon and the Digital Edition will open in Adobe Reader. If you don’t have a copy of Adobe Reader on your computer, go to www.labj.com/digital and download a free copy of Adobe Reader. 3. As the Digital Edition opens inside Adobe Reader you will be asked to allow the Digital Edition to open in the full screen mode. 4. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:

Previous Page, 2-Page Spread, 1-Page View, Thumbnails, User Guide, Front Page, Table of Contents, Zoom-in, Zoom-out, Next Page

There are addition links embedded in the Digital Edition (and described in the User Guide) which are intended to enhance your reading experience.

Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page

DIGITAL EDITION USERS GUIDE | DOWNLOAD INSTRUCTION FOR iPAD Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your ﬁngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.

We recommend you read the very brief CBJ Digital Edition User Guide which you can download right now at:

http://www.cbjonline.com/a3sdbj/resources/Digital-Edition-InstructionsONLINE.pdf

The User Guide will help you get the most out of the many enhancements incorporated into the Digital Edition.

To read the Digital Edition on either your iPad please follow the instructions below;

To Download: 1. Click on the below listed URL: www.labj.com/digital 2. Click on the edition you wish to download (the editions for each paper are represented by an icon which appears on the Web page you access with the browser). 3. Wait as the selected edition is downloaded into your browser. Download progress is marked by a blue thermometer indicator in the URL bar of the browser. 4. The downloaded edition will appear in your browser

Reading Instructions (start here if you have already downloaded the Digital Edition into your browser) 1. To read the Digital Edition you must move the Edition from your browser to a digital reader. 2. Move the downloaded edition into the iBooks digital reader (iBooks is a standard app delivered on all iPads. The app is available free on in the Apple app store should you need to download a copy of the app) by tapping in the center of the page until you see the "open in" button appear in the upper right-hand corner of the page. 3. Tap on the "open in" button. A list of apps will appear. Select iBooks. After a delay of a few moments, the digital edition will appear on a bookshelf in the iBooks app. 4. Tap on the image of the digital edition shown on the bookshelf and the edition will open in iBooks. 5. Use the tools at the top of each page of the digital edition in combination with the built in tools in iBooks to read and navigate the edition. 6. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:

Thumbnails, User Guide, Front Page, Table of Contents

7. Enjoy reading your weekly digital edition of the Los Angeles Business Journal 8. Please give us feedback by sending me an email at: [email protected]

Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices.