February 23, 2021 an edition of the Long Beach Post lbbusinessjournal.com

In This Issue Long Beach’s aerospace sector reinvigorated by new companies, innovation with an eye on space

Cannabis has been a budget bright spot (Page 2)

Industrial, residential real estate are hot (Page 14)

Rocket Lab’s Electron rocket takes off from the company’s New Zealand complex, Dec. 16, 2018. The ELaNa-19 mission delivered NASA nanosatellites into orbit. Photo by Trevor Mahlmann courtesy of Rocket Lab.

Hollywood homes abound By BRANDON RICHARDSON is now the 220-acre Douglas Company to form the McDon- hour. in Long Beach Senior Reporter Park. Business was booming nell Douglas Corporation, The C-17 operation was (Page 20) due to World War II. At one which continued the city’s shuttered in 2013. Aviation and aerospace point, some 160,000 workers aerospace and aviation lega- Though airplane produc- roots run deep in Long were assembling planes in cy with the production of the tion in Long Beach is gone, Beach—about 80 years to be Long Beach, including many DC-10, the C-17 Globemaster Douglas Park today is home exact. The sector has ebbed “Rosie the Riveters.” III and more. to dozens of industrial build- and flowed through the de- The war’s conclusion led In the mid-1990s, Boeing ings, several of which are cades but has remained a to a cut in government con- bought McDonnell Douglas adding their own chapters to constant force in the city. In tracts and the loss of thou- for $13.3 billion and rebrand- the city’s aerospace history. the past, it was military and sands of jobs. Still, plane ed its airliners. But in 2006, Over the last five years, Long commercial aircraft. Today, production continued in Long Boeing ceased production of Beach has become a growing companies have their sights Beach under the name Doug- its commercial craft in Long hub for rocket manufactur- set higher: Earth’s orbit and las—bombers, Globemasters Beach, leaving only the C-17 ing and small-satellite launch Children’s Village receives beyond. and eventually commercial in production in the city with companies. In 1940, construction be- airliners with the DC-8 and 9. a small fraction of the work- The employment pool in first patients gan on an 11-building Doug- In 1967, Douglas merged force that once pumped out Los Angeles County is high- (Page 6) las Aircraft facility on what with McDonnell Aircraft as many as one aircraft every (Please Continue to Page 10)

Long Beach Business Journal PRSRT STD 211 E. Ocean Blvd., Ste. 400 U.S. POSTAGE Long Beach, CA 90802 PAID www.lbbusinessjournal.com ACHIEVE MORE. Los Angeles, CA PERMIT NO. 447 SET RECORDS. WORK LESS. Strategize your real estate investing Get your property valuation online. with our leading team of Fast. Free. Easy. multifamily brokerage specialists. No contact required. $1.3 Billion sold. Invaluable insight. 424.301.3800 TheBogieGroup.com NEWSWATCH 2 • Long Beach Business Journal • February 23, 2021

One of the bright spots in the midst of city’s budget woes: Cannabis revenue is way up Vol. XXXIV No. 4 • February 23, 2021

PUBLISHER The Long Beach Business Journal is a David Sommers publication of Pacific Community Media. The journal premiered in 1987 as the MANAGING EDITOR Long Beach Airport Business Journal. Melissa Evans The Business Journal is published every other Tuesday, except between Dec. ADVERTISING DIRECTOR 25 and mid-January. Distribution is Andrea Estrada approximately 22,000. Reproduction in whole or in part without written DIRECTOR OF OPERATIONS permission is strictly prohibited unless Dennis Dean otherwise stated. Opinions expressed by perspective writers and guest columnists COMMUNITY ENGAGEMENT EDITOR are not necessarily the views of the Long Stephanie Rivera Beach Business Journal.

SENIOR REPORTER & PHOTOGRAPHER ADVERTISING/EDITORIAL DEADLINES Brandon Richardson Ads: Tuesday prior to publication. Press releases: two weeks prior to SENIOR REPORTER publication. E-mail press releases to Alena Maschke [email protected]. The editorial calendar is available at lbbusinessjournal.com. GRAPHIC DESIGNER Diamond Gomez works behind the counter at Haven Cannabis Dispensary in Long Beach’s Bel- Springwave Studios mont Heights neighborhood. Photo by Thomas R. Cordova.

PUBLISHER EMERITUS LONG BEACH BUSINESS JOURNAL By JASON RUIZ likely be approved Tuesday to backfill a George Economides 211 E. Ocean Blvd., Ste. 400 Staff Reporter $19.7 million deficit from the previous fis- Long Beach, CA 90802 cal year. News tips: (562) 655-7678 Follow us The coronavirus pandemic and result- The banner year enjoyed by the in- Advertising: (562) 912-0161 ing stay at home orders hurt nearly every dustry was not too surprising for retailers @LongBeachBusinessJournal Editorial: [email protected] industry in the city in 2020, however, the in the city, who view their product as an Advertising: [email protected] cannabis market saw one of its best years, alternative to treat a number of medical Follow us @LBBizJourn SUBSCRIPTIONS: adding nearly $10.3 million to the city’s conditions, some of which have been ex- To subscribe, please call (562)912-0161 coffers. acerbated by the pandemic. Follow us @LBBusinessJournal or visit lbbusinessjournal.com/subscribe City projections anticipated a more Adam Hijazi, who manages multiple conservative return of $4 million from locations in the city including The Green the industry in the last fiscal year, as sales Room on Seventh Street, said that his lbbusinessjournal.com of legal cannabis have lagged since voters sales were up about 35% last year. He at- legalized it in November 2016. tributed it in part to the city becoming a However, a number of new retail loca- more cannabis-friendly place to do busi- tions opening, as well as other parts of the ness, but also to storefronts like his hav- MONDAY industry’s supply chain investing in the ing grown their client-base over the last city, helped bring in $6 million more than few years. MORNING what budget analysts predicted. State- “Every single year we’ve increased,” wide, taxes from the industry more than Hijazi said. “There are other locations COFFEE and doubled from the third quarter of 2019 to that have not done the same but overall the same quarter of 2020. there’s been a bump from last year.” BIZBRIEF Legal cannabis, which was met with Long Beach voters approved a law in scorn from law enforcement and some 2016 that allows for up to 32 dispensaries elected officials, helped stave off a larger citywide. According to a city website Sign up at lbbusinessjournal.com for MONDAY MORNING COFFEE and budget deficit caused by the pandemic. tracking cannabis businesses, there are BIZBRIEF, FREE email subscriptions about issues, events and meetings for The city was forced to close a $30 now 30 active storefronts in the city. the week. Monday Morning Coffee is sent out at 6 a.m., and BizBrief is news of million funding gap this fiscal year with There are also dozens more cultiva- the day, sent out periodically around 4 p.m. weekdays as needed. furloughs and service cuts. A separate tion, testing, manufacturing and distribu- withdrawal of emergency reserves will (Please Continue to Page 4) Late-start Spring Classes begin March 8 & April 12 • Hundreds of Classes • Take Courses Safely from Home • Certified Online Instructors •

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(Continued from Page 2) sales have more than doubled over the federal stimulus checks were deposited still carve out more of a share of the re- tion businesses in operation or winding first quarter of last year. into Amercians’ bank accounts. maining illicit market, and that combined their way through the city’s approval pro- The business-bump has been driven He anticipates that could happen with new customers gained through the cess. The City Council voted in 2019 to by casual consumers as well as regulars, again in the coming months as Americans pandemic can continue the industry’s mo- reduce taxes on those non-retail business- he said. The combination of economic continue to grapple with the isolation and mentum. es, dropping their rate from 6% to 1%. uncertainty and the anxiety of a mas- stress of the pandemic. A continued normalizing of the indus- Hijazi said the reduction in taxes like- sive public health crisis not only drew “Mental health is one of the most im- try could help boost its profits in the com- ly made an impact on the sales because in customers who wanted a break from portant parts of life and if cannabis helps ing years, but Hijazi is looking forward prices could be then lowered on the retail the pandemic, but also found themselves you achieve that, we support it,” Lewis to a different normal. He’s hopeful that end. in new working conditions where daily said. a nationwide vaccine rollout could mean “It has increased both the number of commutes were no longer part of the work Will the momentum carry into 2021 the start of an economic rebound and the businesses opening up and the number of day. and beyond? A city analysis expects that return of a vital portion of his business: people wanting to invest in Long Beach,” Lewis said that the stimulus checks “at least a portion” of the increase in sales travelers. he said. also seemed to help. He recounted one of from 2020 will continue and the market “During the summer we depend a lot Elliot Lewis, who operates multiple the biggest business weeks for his shops will stabilize at higher levels. Retail busi- on tourists and tourism wasn’t a factor in cannabis storefronts in the city, said his was in early April, around the time that ness owners are confident that they can last year’s sales,” Hijazi said. Belmont Pool project wins key approval from Coastal Commission space, some of which would serve as a buffer between the project and the beach. However, commission staff pointed out that the city’s plan only accounts for a 5.7-foot sea level rise scenario when projections have put that figure at at least one foot higher by 2100. A staff report said that this could result in the plinth serving as an island if sea levels were to ever rise that high. “It’s still possible the beach could be reduced [by wave activity] and the pool could impact access to the beach,” said Dani Ziff, a coastal program analyst, who suggested a modified beach path could help ensure access to the shore- line. A sand replenishment program like the one the city uses to protect the shoreline on the Peninsula could be a solution to future erosion. A rendering of the proposed Belmont Beach and Aquatics Center courtesy of the city of Long Beach. The project has been held up for a number of years, including challeng- By JASON RUIZ Many commissioners expressed con- concrete plans for how it would make es for a litany of reasons including the Staff Reporter cerns that the pool is located in one of sure the project is accessible to all mem- project’s impacts on birds, trees, park- the city’s most affluent neighborhoods. bers of the public. This request will ing being susceptible to sea-level rise, The Belmont Pool replacement proj- The city will have to prove that it can have to be approved by the whole com- possible accessibility issues for all city ect can move forward after winning accommodate communities outside the mission, likely at the same time that it residents and the height of the pool’s approval from the California Coastal southeast area, one of the key factors considers the city’s building permit for structures blocking views of the beach. Commission on Feb. 11, closing a sev- that the Coastal Commission considers the pool in 2022. Two groups of residents filed sepa- en-year process that began after the clo- with any project along the coast. City officials are hopeful the project rate appeals to the project and argued sure of the Belmont Plaza Olympic Pool City Manager Tom Modica outlined can be completed within the next few that the project should be located some- in 2013. the city’s plans to use shuttle services to years and that it will serve as an asset to where else, suggesting sites like the El- Commissioners voted 10-1 to ap- transport children from 11 parks in dis- the city’s beaches. ephant Lot near the convention center prove amendments to the city’s local advantaged areas in the city to the pool; “I think it will be something that Downtown. coastal plan and approved a permit that the city will also reduce rates for their will bring people to the coast,” Mayor “The first principal for development will allow the city to begin securing entry and create programs for youth. Robert Garcia said during the meeting. on the beach is that it must be a coast- the $85 million it expects it will cost “If you want to go to the Belmont “We want to bring as many people as al dependent activity,” said Jeff Miller, to construct the pool, and find a firm to pool, you can walk to your neighbor- possible to our amazing coastline, and I one of the appellants. “Swimming and build it. But first the city will have to hood park, take that direct connection think this project can do that.” diving is not coastal dependent.” fine tune the design of the pool, which to the Belmont pool and be returned to A previous version of the pool re- Despite the city working to address will require approval from both the City your neighborhood,” Modica said. placement project included a 78-foot- the issues over the years, some thought Council and the commission for a final But some commissioners questioned tall translucent dome that covered an that the changes to the proposed plans building permit, something that’s ex- whether that would be enough. indoor pool complex. That project was were still not enough to deal with cli- pected to happen next year. “You’re not going to bake a whole rejected in part because of its height— mate change, and said some changes The city currently has about $61.5 cake, put all the ingredients in and the original pool building was 60 feet created new problems. million in Tidelands Funds allocated sprinkle a little sugar on top,” Commis- tall—and because of its orientation on “Moving the project north won’t for the project, but will have to work to sioner Effie Turnbull-Sanders said. the shore that would have made it vul- resolve sea-level nor seismic problems close the roughly $20 million funding Commissioner Shelley Luce, the nerable to flooding brought on by pro- and it creates loss of street parking,” gap. only member of the commission who jected sea-level rise. said Ann Cantrell, a member of a local While cost will likely be one of the opposed the project, criticized the proj- The new pool complex will large- activist group Citizens About Responsi- last remaining barriers for the project, ect for continuing the problem of in- ly sit on a 7-foot plinth that will help ble Planning. equitable access and how the city will vesting large sums of public money into raise it above future storm surges. The The original Belmont Plaza Olym- ensure all residents of the city can enjoy wealthy communities. new design also incorporated a family pic Pool was shuttered in 2013 and de- the new pool complex still hangs over The commission asked that the city play area with a zip-line and waterfalls molished the following year because of the project. return to the commission with more as well as 92,000 square feet of green seismic deficiencies. NEWSWATCH Long Beach Business Journal • February 23, 2021 • 5

Sears and Kmart stores in Los Altos to close as company liquidates holdings

The Kmart near Bellflower Boulevard and Spring Street is slated to close sometime in April. Photo The Sears in the Los Altos shopping center is closing. Photo by Brandon Richardson. by Brandon Richardson. By JASON RUIZ The Long Beach location, at 2100 Bell- preceded the announcement that the Kmart owner of Broadway Stores turned nearly 50 Staff Reporter flower Blvd., is one of five new closures add- was closing earlier this month. of its stores into Macy’s and Sears locations, ed to Transformco’s growing list of closures Forbes first reported on the closing of according to the Los Angeles Times. The Sears in Long Beach’s Los Altos that includes Sears and Kmart stores. the Long Beach location, as well as the five The Long Beach Sears became the 31st neighborhood was expected to begin closing Transformco, which acquired Sears other Sears stores that were made public. It location in the Los Angeles metro area, but on Feb. 18 as the retailer’s parent company, Holdings in 2019, holds the rights to remain- adds to the 11 Sears stores Transformco slat- after decades of decline and waves of store Transformco, liquidates stores in its hold- ing Sears and Kmarts in the country. Ear- ed for closure just two weeks ago. Stores in closures, the Long Beach location is the lat- ings. lier this month it was reported that the last Illinois, Massachusetts, Louisiana and Colo- est victim of liquidation. An employee confirmed on Feb. 15 that Kmart in Long Beach, located about a mile rado were also reported to be closing. There are now less than 30 Sears left in the store would begin closing, just days after north of the Los Altos Sears, was also head- The store in Long Beach was formerly the country. the company posted listings for temporary ed toward liquidation. a Broadway department store and was con- Transformco did not respond to a re- positions to close the store. Similar postings for temporary positions verted into a Sears in 1995 when the new quest for comment.

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Belmont Shore shuttle project put in park by sagging meter revenue By JASON RUIZ Matt Peterson, a business owner in Bel- there were weeks where there would be no bring transportation programs online that Staff Reporter mont Shore who chairs the Belmont Shore one walking around Belmont Shore, but they should really work with Long Beach Parking and Business Improvement Area, she’s hopeful that future projects like the Transit because we have the expertise,” A proposed electric shuttle program said that while parking revenue is down the shuttle and the return of the Belmont Pool Gold said. that would have run along the business cor- parklets have been an “extremely neces- could turn things around. He added that the agency is expected ridor from Second Street to Alamitos Bay sary” addition to the shopping district for “Since the pool closed, business has to roll out a new line of smaller all-elec- is on pause after the COVID-19 pandemic businesses trying to survive the pandemic. been down for us,” Rossi said. “You had tric neighborhood buses that will service has squeezed its main source of funding: “To me, it’s a price well paid to have people coming down from all parts of shorter routes that connect to bigger streets. parking meters in Belmont Shore. them in the Shore so restaurants can remain town. It really made our area.” During that procurement process it looked Parking revenue in the area is down relevant,” Peterson said. “I wish we were The California Coastal Commission at other types of vehicles like vans that over 50% in the first quarter of the current inside, but we’re not.” approved plans and permits for a new pool could be used for shuttle services in the fu- fiscal year, something that’s not expected Peterson said that there is a will among on Feb. 11, pushing the project over one of ture. to pick up soon. The pandemic has been a business owners to fund a shuttle, but it its last remaining hurdles. Peterson is hopeful things will turn double gut-punch for the revenue stream: would be better from a logistics and liabili- Whether future swimmers and shop- around. Parking revenue should bounce More people are staying home, and the city ty standpoint for the city to operate it, likely pers can travel around the area on a free back after the pandemic, and the ability to took away about 70 spaces to make room in partnership with Long Beach Transit. shuttle will likely rely on parking revenue have events like the Belmont Shore Christ- for parklets to help restaurants make room The shuttle could help alleviate a park- returning to at least pre-pandemic levels mas Parade, Stroll n’ Savor and tenants in for outdoor dining. ing crunch in Belmont Shore and bring but also on Long Beach Transit taking the pipeline to fill vacant storefronts should Parking meter revenue was supposed more foot traffic to a struggling retail dis- some sort of role in operating the shuttles. drive more traffic to the district. to pay for the free shuttles that would have trict. Michael Gold, a spokesperson for Long He doesn’t see the pause on the shuttle connected the bay, Belmont Shore and the Dede Rossi, former head of the Bel- Beach Transit, said discussions with the project as the end of the discussion. retail complex 2nd & PCH, but the sudden mont Shore Business Association, said she city are too preliminary to know what a “I’ve seen lots of final nails in coffins,” sharp decline will not allow for the pro- still supports the project, which has been program like this would cost, but said the Peterson said. “The idea that because we gram to go forward at this time, according talked about for years. Rossi, who recently agency is interested in being a part of it. can’t afford it right now we’re going to give to a recent city memo. left her position at the association, said that “We’ve said that if the city wants to up on this is just silly to me.” Children’s Village opens, first patients arriving this week By BRANDON RICHARDSON marks the beginning of a more convenient Senior Reporter treatment regimen moving forward, Ashley said. Patients and their family members who “We are in Long Beach quite often,” she will utilize the new Cherese Mari Laulhere said. “We have watched this vision of the Children’s Village were joined Friday, Feb. Children’s Village become a reality … as we 12, by numerous elected officials and hos- passed by weekly with excitement.” pital staff to celebrate the ribbon cutting at The four-story, 80,000-square-foot out- the new facility on the Long Beach Medical patient facility began seeing patients on Center campus. Monday, hospital officials announced. In- Patient Derrick Cervantes, 9, addressed patient care will continue to be based in the the small crowd and digital viewers virtually main Miller Children’s & Women’s Hospital during the event, along with his mom Ash- building. ley. Every year, Miller Children’s cares for “Thank you everyone who has been more than 65,000 children through more there for me,” Derrick said. “I’m excited to than 84,000 visits, and having to travel to be a part of this new Children’s Village.” multiple offices for necessary care can take Derrick was born with gastroschisis, a toll on patients and their families, hospital which later led to the development of short officials said. Chris Laulhere, a key donor to the Children’s Village project, cuts the ceremonial ribbon Friday, Feb. bowel syndrome. Due to his condition, Der- The Children’s Village includes 67 exam 12, 2021. Chief Nursing Officer Susan Herman, left, Miller Children’s & Women’s Hospital CEO John rick has required treatment from multiple rooms, one blood-draw station and one spe- Bishop, center, and Chief Medical Officer Dr. Graham Tse, look on. Photo by Brandon Richardson. specialists in several areas, including in- cialty lab for the hematology and oncology at the hospital for 41 years. Jorgensen said Assemblywoman Cottie Petrie-Norris fectious disease, pediatric surgery, endocri- patient care area. Each floor has a shared the facility is different from most hospitals said the Children’s Village is going to be a nology, gastrointestinal, hematology. Most workspace for staff and a small number of and medical offices because of the input “tremendous blessing and a tremendous re- recently, he’s been undergoing a series of private offices for managers. taken into consideration during the design source for the children and families of our weekly iron infusions. The facility also includes multiple indoor phase. community.” While Derrick and Ashley currently and outdoor gyms for various age groups, so “Most of the time, we put in a building Congressman Alan Lowenthal, State have to make numerous trips to different teenagers are not working out in the same and we make it work. But we helped design Sen. Lena Gonzalez, Assemblyman Pat- clinics for care, the opening of the Children’s space as toddlers, said clinical operations this one,” she said, noting that it was not only rick O’Donnell and California Assembly Village—which will house 36 specialties— manager Mary Jorgensen, who has worked hospital staff that gave input. “It’s by fami- Speaker Anthony Rendon also gave virtual lies for families—they were involved in ev- remarks during the ceremony. ery step of the process, too.” Cherese Mari Laulhere, for whom the Many of the rooms throughout the fa- facility is named, died in 1996 while abroad cility feature sliding barn doors as opposed for a semester at sea program. In the years to traditional doors, a feature suggested by since, her parents, Chris and Larry, have do- Maria Andrade, whose son Elias will be a nated money in her name to various projects patient in the new facility. Elias used to be and organizations to the benefit of the Long confined to a wheelchair and Maria noted Beach community. The Laulhere family that trying to hold open a door and maneu- was a key donor to the Children’s Village. ver a wheelchair through is not an easy task. “[During her travels], she was especially The new hospital also includes a family touched by the children of the orphanages resource center, daycare for patients’ sib- and talked about wanting to actually have lings and lactation rooms, all at the recom- an orphanage for children someday,” Chris mendation of families. said of her daughter. “When we first learned During virtual comments, Long Beach about the Children’s Village, I knew in my Mayor Robert Garcia said the facility is an heart that it had to be Cherese’s village so Derrick Cervantes, 9, and his mom Ashley spoke virtually during the ribbon cutting ceremony for the Cherese Mari Laulhere Children’s Village medical facility Friday, Feb. 12, 2021. Derrick will be “amazing contribution to the community, she would be able to help thousands of chil- a patient at the facility in the coming weeks. Screenshot. region and state.” dren every year.” NEWSWATCH Long Beach Business Journal • February 23, 2021 • 7

Analog Record Shop—a retail store turned filming hotspot—closes permanently

Analog Record Shop in Long Beach closed its doors for good. Photo by Brandon Richardson. Thousands of records were sold for $1 during Analog Record Shop’s closing sale. Photo by Bran- don Richardson.

By BRANDON RICHARDSON Beach bands over the years, including, most for its closeup but devoid of people. Con- For now, Forsythe is going to focus on Senior Reporter prominently, Repeater, the local aspect was verting the store back to retail was out of his Tustin location but said he could see him- important to Forsythe. the question due to the funds it would take. self coming back to Long Beach to open an- Long Beach has an assortment of record “Long Beach has a great arts commu- Ultimately, Forsythe decided it was time to other business in the future. stores—some that specialize in certain vinyl nity,” he said. “There were already a lot of shutter the shop permanently. “I don’t know about doing another re- such as Toxic Toast’s Japanese imports and record stores but I know that people just love Last week, Forsythe held a “closing cord shop. There are so many good record others that cater to a broader clientele such music in this town.” sale,” selling everything from thousands of shops in Long Beach,” Forsythe said. “I as Fingerprints. But only one record store Retail sales at Analog Long Beach were $1 records to posters to broken and tattered think if I focused on more of the audio stuff, stopped selling records after becoming a plugging along through 2019 but as the year audio equipment to furniture to fixtures. Ev- I could see myself going back into Long hotspot for commercial filming. Now that passed, Forsythe said requests to use his vin- erything had to go, Forsythe said, noting that Beach down the road for sure. Long Beach space, Analog Record Shop, has closed for tage sonic haven for commercial filming and he has no space in his Tustin store to absorb is my home, I love the area a lot.” good. photoshoots became a frequent occurrence. the inventory, furniture or equipment. Alex Forsythe opened Analog at 1322 Some photoshoots and commercial proj- Coronado Ave. in August 2018. It was his ects would close Analog to customers for third record store but his first in Long Beach. a full day or longer, paying more than the He first got into the record business in 2012 store would normally make on record sales. when he opened the original Analog in Cos- Brands such as Ford, Subaru, Amazon and ta Mesa. Next, he opened up shop in Tustin. PacSun, to name a few, have filmed in the He went on to close Costa Mesa a few years space, Forsythe said. later to open in Long Beach, where he had With the photo and film business boom- previously lived for nine years. ing, in January 2020, Forsythe made the “I got into the business kind of impul- decision to shut down the retail aspect of sively,” Forsythe said, noting he had worked his store and focus solely on being an event in retail through most of his 20s. “My dad space for rent. grew me up on records—he still has a huge “I was just going with the flow,” For- collection. And I’ve been a musician my sythe said. “I had every intention of being a whole life.” regular retail record shop but lots of people Forsythe originally opened his Costa were wanting to shoot.” Mesa store selling instruments and acces- Unfortunately, as with everything else sories such as guitar pedals. He had a small in 2020, Forsythe’s new business model was record section that did well, so he abandoned flipped upside down when the pandemic set the instruments in favor of the reemerging in. With COVID-19 dominating headlines, audio format. Forsythe said the marketing industry dried While his Tustin store has a heavy em- up for him. Many companies pivoted their phasis on rock, jazz and blues, the Long marketing to incorporate health and safety, Beach shop featured many local artists, hip- putting the relaxed, record store vibe on the hop, punk and metal genres, along with in- back burner. die rock. Having played in a number of Long Month after month, Analog sat, ready

A wall of posters at the now-closed Analog Record Shop in Long Beach. Photo by Brandon Richardson. NEWSWATCH 8 • Long Beach Business Journal • February 23, 2021

Old City Hall demolition expected to be complete by next year Carey said Texas-based JPI Devel- opment was unable to find funding due to the pandemic but Plenary is in con- tract negotiations with another firm to move the project forward. Christopher Koontz, deputy direc- tor of Long Beach Development Ser- vices told the Long Beach Business Journal in July that the new developer would be building the project under the plans that JPI abandoned. The residen- tial development could take until 2023 to complete. The decision to tear down the old building with no imminent construc- tion plans comes as the old City Hall building, still under city control, has become a public safety issue, according to a city memo. A memo sent to the City Council this month said the building is regular- ly vandalized and building codes will require utilities to be reconnected to the old City Hall if it’s not demolished, which will create a “significant” cost that the city has not budgeted for. Va- cant buildings are still required to meet certain standards under the city’s mu- The old Long Beach City Hall stands in an otherwise empty lot, the future home of the new Lincoln Park. The building is expected to be demolished nicipal code. by next year. Photo by Thomas R. Cordova. Demolition of the building was originally expected to be completed By JASON RUIZ and find a new partner to develop the the old courthouse so the new port and nine months after the city relocated to Staff Reporter “Mid-block” site where the old City City Hall structures could be built. the new building in July 2019. Lincoln Hall is located. “A controlled demolition is pre- Park was originally scheduled to open The complete demolition of the old While the park is expected to be ferred as it not only addresses any haz- in November. City Hall building could take until ear- completed by the end of 2021 “barring ardous material concerns but allows The city will pay up to $1 million ly 2022 as the city’s overhaul of its civ- any unforeseen delays,” the demoli- for the building materials to be prop- of the $8 million the demolition is ex- ic center continues to navigate through tion of the old City Hall building could erly sorted and recycled or disposed of pected to cost. But instead of paying setbacks. stretch into 2022, according to Jenni- properly,” Carey said. Plenary up front, the city’s share will The City Council approved an fer Carey, a spokeswoman for the city’s A plan to develop the mid-block site be deducted from money Plenary owes amendment to its contract with Plena- public works department. into a mixed-use residential housing the city once it sells the mid-block site. ry Properties Long Beach, LLC Feb. Demolition work on the building development with 580 units was ap- Plenary will owe the city about $6.3 16 to speed up the tear-down of the old could begin in the next few months and proved, delayed and then eventually put million after it sells the mid-block site building as Plenary works to complete would likely be a drawn out process on hold after the developer pulled out of to a developer. construction of the new Lincoln Park, like the one the city undertook to clear the project in July.

Eunice Sato, the first woman to serve as mayor of Long Beach, dies at 99

By TIM GROBATY Columbia University. As a teacher, she personality. People should know that City officials decided to focus on Columnist worked in Michigan and then spent she broke barriers, especially for Asian the heart of the city. Sato was mayor in three years as a missionary teaching Americans and women. Our love and 1982 when the Long Beach Plaza shop- Eunice Noda Sato, who served as English in Yokohama, Japan. prayers are with her family.” ping center was built and opened and, the first female mayor and first Asian In 1950, she married Thomas Taka- Former Long Beach Mayor Bob while the Plaza eventually was razed in American mayor of Long Beach from hashi Sato. The couple had a daughter, Foster described the 4-foot, 10-inch 2000, she had said that it had served its 1980 to 1982, died at her home in Long Charlotte, and twin sons, Daniel and Sato as gruff and straightforward. “She purpose in terms of bolstering business Beach Friday, Feb. 12. She was 99. Douglas, before moving to Long Beach was very honest,” he said. “She said in Downtown. The daughter of Japanese parents in 1956. what she thought and damn the conse- After leaving council, Sato contin- Bunsaku and Sawa Maeda Noda, Sato An active Republican, Sato worked quences. ued working on conservative causes. was also the first Asian American in support of the party, while keeping “I really began to know her when I Gov. George Deukmejian appointed her woman to serve as mayor of any major involved with her children’s schools, was running for mayor and trying to get to three state commissions and Presi- American city. PTA’s and serving as president of the her endorsement,” said Foster. “We set dent George H.W. Bush appointed her Sato grew up in the town of Liv- Long Beach Council of Churches. up an interview, and when I got out of to the National Advisory Council on ingston east of the San Francisco Bay. Though she had said she had no there I swear I felt like I’d been through Educational Research in 1991. While in school at Modesto Junior Col- interest in running for office, Sato a medical exam. Let’s just say she was In 2015, Sato was honored by the lege, she and her parents and siblings nevertheless ran for City Council and very thorough.” naming of a new high school in East fled the Bay Area when the government was elected in 1975. She served on the As mayor, Sato found herself lead- Long Beach, when Hill Middle School began interning Japanese immigrants council until 1986, including the two ing a city that was going through some became the Sato Academy of Math and in camps. The family moved to Colo- years when she was mayor, which was difficult financial times and during her Sciences. rado to live with relatives. a part time appointed post at the time. years as mayor she made the decision to There will be a private service for Sato continued her education at the Her death is “terrible news for the focus efforts on Downtown, which had the family. University of Northern Colorado and city,” said Mayor Robert Garcia. “She reached a low point in terms of vibran- later earned her master’s degree from really loved Long Beach and had a huge cy and visitors. NEWSWATCH Long Beach Business Journal • February 23, 2021 • 9

East Village dog salon closes its doors amid a number of challenges By KATE KARP wish Abby all the best!” “Anytime we were told to shut down, it—I know I’ll figure it out,” she said. “I can Staff Reporter In addition to providing personal service I shut down. I couldn’t take the chance of a go back to school and hopefully can start to pets, the salon has hosted fundraisers to family member getting sick, and hurting a homesteading and live sustainably. Norco is On Feb. 17, pet groomer Abigail Gibson benefit organizations like the Animal Re- business is not worth it, either,” she said. “And my stepping stone to that.” picked up her clippers, dryers, blueberry-in- source Team, a nonprofit dedicated to giving it just got harder and harder—it did a number Gibson and her partner already have fused facial concoction, and all the little but- pet owners access to resources to keep their on me.” chickens and a working dog, a Great Pyre- tons and bows she adorned her furry little animals in their homes instead of being relin- Pawsitively’s final reopening was on Feb. nees named Lyra. customers with and closed the door to her quished to shelters. Pawsitively Long Beach 1. Gibson, though, was on overload. Gibson will keep the business’s Facebook salon for the last time. also donated funds and barrels of dog food “We had just gotten open this month, and page active, and she welcomes clients to come Pawsitively Long Beach, located in the to a San Fernando Valley Shelter during the I was crying on my way to work because I out to Norco to get their pets groomed. East Village Arts District at 254 Elm Ave., is Woolsey Fire in 2018. didn’t want to deal with it anymore,” she said. “The one good thing I will say is that the Long Beach’s latest small-business casualty, “I’m from up there—I know a lot of peo- Gibson has no idea what she’ll be doing people of Long Beach have been nothing but pushed out of existence due to a combination ple that were impacted by the fire,” Gibson during the next stage of her life, but she seems supportive,” Gibson said. “They love their of reasons. said. “Even my parents were affected.” to have swept aside her concerns along with pets and are passionate about animals. That’s Gibson, who began her professional A snowball of circumstances led Gib- the dog hair. the one thing I’m most grateful for—people grooming career in Long Beach eight years son to close her salon. One was her parents’ “This is the first time in my life I don’t and their pets.” ago, at Soggy Dog Pet Grooming, opened health. Gibson has been commuting to work know what I’ll be doing, but I’m OK with Pawsitively Long Beach in 2015, taking along from Norco since May 2020 to care for her a good number of her appreciative clients. parents, both of whom are disabled. Her fa- “These are my core, my OGs [original ther, moreover, is terminally ill. guys],” Gibson said. “I went up there [to Norco] originally Pawsitively Long Beach’s quality of ser- to sit out quarantine with them, and then it vice and personal treatment of her clients’ became clear to me that they needed help,” pets won the salon a number of awards from Gibson said. “My apartment wasn’t working media outlets. out for me, so I gave it up and moved there Her community of loyal clients has ex- permanently.” pressed sadness and disappointment at the The pandemic, the city’s response to her business’ closure but also are wishing her concerns, and an unsatisfactory relation- well. ship with the business’ landlord added to the “I have always admired Abby for opening stress, making it intolerable for Gibson to her business at a young age and have loved continue working. When COVID-19 hit, the being able to support them,” said Pamala salon closed in March and remained shut until Machado, whose dog, Sookie had been kept May. Once Gibson reopened, she said that she East Village Arts District pet groomers Pawsitively closed permanently Wednesday, Feb. 17, 2021. “soft and fluffy” since Pawsitively opened. “I repeatedly had to close down. Photo by Thomas R. Cordova. Because your heart matters, we’re here. Don’t delay care.

At Dignity Health – St. Mary Medical Center, we understand that your health has never been more important. And that includes taking care of your heart. From education, prevention and diagnostic procedures to advanced treatment and rehabilitation, our cardiovascular specialists are here and ready to safely put their heart into caring for yours. Learn more or find a cardiologist near you at DignityHealth.org/StMaryMedical/Heart. AEROSPACE 10 • Long Beach Business Journal • February 23, 2021

Virgin Orbit’s LauncherOne rocket—carrying a payload of 10 small satellites—deploys from Cosmic Girl, the company’s modified 747, Jan. 17, 2021. Photo courtesy of Virgin Orbit. Park Development. In 2017, the Long “Scientists and students had spent With the successful launch and Beach facility transitioned to be- years developing these satellites, so delivery of multiple satellites, Virgin LB aerospace come the home of Virgin Orbit, a new the sense of responsibility was pretty Orbit is pushing forward, Hart said. branch of the company dedicated to heavy on the team,” Hart said. “It was The company has three more flights a new method of launching smallsats a lot of work—long hours, solving slated for 2021 and Hart said he ex- reinvigorated into orbit. lots of problems along the way. But pects to double the number of mis- (Continued from Page 1) Virgin Galactic continues its oper- as the flight works out, knowing we sions in 2022. ly desirable for tech companies. Long ations outside of Long Beach. are traveling somewhere, getting to Depending on demand, Hart said Beach, with a university of its own While most rockets launch from a space, it’s an incredible combination Virgin Orbit’s current capability is and its rich aerospace history, is an stationary ground platform, the Vir- of fatigue and euphoria. about 20 launches per year, which ideal location for these up-and-com- gin Orbit team has developed a meth- “When we released all 10 satel- is only hampered by manufacturing ing companies. Also, industrial real od similar to military aircraft weap- lites in perfect orbit, everyone on the limitations. If demand were to exceed estate is virtually nonexistent across ons systems: The company mounts its team had this incredible grin on these those limitations, Hart said, the com- the county, particularly in the South 70-square-foot LauncherOne rocket tired faces,” Hart added. “It was real- pany could tap into other resources Bay area, so the redevelopment of under the wing of the firm’s Boeing ly beautiful to behold.” to “easily” double production. Other Douglas Park was able to draw in 747 jet, aptly named Cosmic Girl. many companies looking to expand. When the plane reaches 35,000 feet, “I’m proud to see the growth that LauncherOne is deployed, propelling our aerospace, rocket and satellite in- itself through the Earth’s atmosphere dustry has had over the last several to deliver its smallsat payload. years in Long Beach,” Long Beach The company’s first launch at- Prepare for unexpected Mayor Robert Garcia said. “There’s tempt on Memorial Day last year power outages with no doubt that investment in support- failed because of a breach in a ing this industry in the months and high-pressure line carrying cryogen- a Generac standby years ahead will help us strengthen ic liquid oxygen, causing the engine generator and build back the Long Beach and to stop providing thrust. But Virgin regional economy.” Orbits’ second attempt was another Here is a look at four innovative story. REQUEST A FREE QUOTE! aerospace operations that now call “It was unbelievable,” President Long Beach home. and Chief Executive Dan Hart said in 8664911176 an interview. “Absolutely superb.” Virgin Orbit Cosmic Girl’s second mission was 7-Year Extended Warranty* In 2015, Virgin Galactic—the not merely a test flight, Hart said. Af- FREE A $695 Value! human spaceflight and transporta- ter much discussion with NASA, the O er valid February 15 - June 6, 2021 tion arm of Sir Richard Branson’s company upped the mission’s ante empire—moved into its new home and put a 10-satellite payload into its *To qualify, consumers must request a quote, purchase, Special Financing Available install and activate the generator with a participating dealer. in one of the first phases of Douglas LauncherOne system. Subject to Credit Approval Call for a full list of terms and conditions. AEROSPACE Long Beach Business Journal • February 23, 2021 • 11 than manufacturing limitations, the only other cap on LauncherOne mis- sions is the number of times a 747 can take off each year, Hart said. In a Jan. 18 tweet, Former Assis- tant Secretary of the U.S. Air Force Will Roper said the Virgin Orbit tech- nology is “the satellite equivalent of keeping an ace up your sleeve.” “This is a big disruptor—and hopefully a deterrent—for future space conflicts,” he tweeted. Virgin Orbit has a wide array of contracts with various missions at- tached to each. The Department of Defense, NASA, the Royal Nether- lands Air Force, a consortium of Pol- ish universities and numerous other public and private organizations have all signed on with Virgin Orbit, Hart said. Most of the company’s contracts are for missions to deliver payloads into Earth’s orbit, Hart explained. But the firm is working with one group on a potential mission to Mars and has had some discussions about a Venus mission, he said. When Virgin Orbit was first es- tablished in Long Beach, the compa- ny had about 230 employees in one building. Since then, the firm has Virgin Orbit’s LauncherOne attached to the company’s modified Boeing 747 prior to its first successful mission in January 2021. Photo courtesy of Virgin Orbit. expanded into a second building and boasts more than 500 employees. propelling smallsats into orbit at hy- Yaney said his team has made ogies to deliver payloads into space, “Long Beach has been an aero- personic speeds. strides in technology development Rocket Lab is using traditional rock- space center for many years,” Hart SpinLaunch relocated its head- and advancement of its launch fa- ets built in Long Beach and launched said of the company’s decision to be quarters to Long Beach in Janu- cilities over the last year. While not from land-based pads in Virginia based in the city. “There is such tal- ary 2019, where it took over a new ready to share details of its progress, and New Zealand. Combined, both ent. We have brought in a number of 140,000-square-foot industrial and Yaney said the company will soon complexes are licensed for up to 130 people right out of school or early in office building with about 30 employ- be announcing milestones associat- launches per year. their career. And it’s wonderfully di- ees and grand plans. ed with its Spaceport America-based In 2017, the company launched verse, energetic, creative and youth- “Long Beach has become an im- suborbital launch platform. one rocket. In 2018, three rockets. In ful. It’s a unique place to live.” portant hub for … aerospace, inno- Aside from the ability to expand, 2019, six. vation,” Yaney said, noting that the Yaney said he was drawn to Long “[We were] on track to maintain SpinLaunch move has allowed him to expand his Beach because of the area’s work that cadence in 2020 before COVID-19 One Long Beach aerospace com- company in a region where industrial pool, Douglas Park’s proximity to led to statewide and New Zealand na- pany is pioneering a new method of real estate is hard to come by. Long Beach Airport and walkable tional lockdowns, which temporarily smallsat ground launch that would Over the last two years, thanks amenities such as dining and shop- halted launch operations,” the compa- literally hurl its payload into space to various investors and funding ping. ny said in an email. Still, the compa- using kinetic energy. Founded in 2014 sources, including a recent $45 mil- “[The city] has historically played ny managed seven launches in 2020. by Chief Executive Jonathan Yaney lion contract with the Department of a key role in Southern California’s Rocket Launch has 12 launch- in Sunnyvale, the company is devel- Defense for a prototype, Yaney said history of aviation and aerospace and es slated for 2021, including a moon oping a ground-based launch system SpinLaunch has quadrupled its staff is experiencing a rebirth with New mission for NASA. that uses a large electrical mass ac- as it pushes forward with develop- Space,” Yaney said of the industry’s “The only other people who celerator to provide the initial thrust, ment. recent commercialisation after years launch more than us are countries,” of governmental monopoly. Beck said. Over the course of 17 missions, Rocket Lab Rocket Lab has successfully deliv- Long Beach’s most seasoned rock- ered more than 97 satellites into or- et manufacturer, Rocket Lab, was bit, Beck said, including the Nov. 19 founded in 2007 by New Zealand “Return to Sender” mission, which engineer Peter Beck. The aerospace deployed 29 smallsats. manufacturer became a U.S. company “We have a private mission to Ve- in 2013, setting up its headquarters in nus and a bunch of other interplane- Huntington Beach. tary missions that we get to announce But the Orange County beach city soon from various customers,” Beck was too far removed from prospective said. employees in Los Angeles County, In addition to its successful pay- Beck said, which was a major fac- load delivery, “Return to Sender” tor for the company’s move to Long marked Rocket Lab’s first attempt at Beach at the start of 2020. Addition- “first stage recovery.” After the first ally, like Virgin and SpinLaunch, the stage of rocket flight, a portion of the company signed a lease for a brand rocket separates as it enters the sec- new building in Douglas Park and ond phase. Rocket Lab successfully was able to build out the interior to retrieved the first stage component, their specifications, Beck said. which represents a major milestone in Stargate is a 3-D printing system developed by Relativity Space used to print 95% of its rockets. While Virgin and SpinLaunch are making its Electron a reusable rocket The system uses lasers to melt a metal also developed by Relativity into each component. Photo using—or developing—new technol- courtesy of Relativity Space. (Please Continue to Page 12) AEROSPACE 12 • Long Beach Business Journal • February 23, 2021

(Continued from Page 11) and allows the company to increase launch frequency. But 2020 wasn’t all success for Rocket Lab. In addition to the turbu- lence brought on by the COVID-19 pandemic, the company’s Fourth of July mission that featured payloads from Canon Electronics, among oth- ers—and dubbed “Pics or it Didn’t Happen”—failed to reach orbit and deliver its payload of seven satellites. A single faulty electrical connection was determined to be the cause of the failure. Rocket Lab has about 100 pro- duction and assembly staff in Long Beach to build its rockets and staff its mission control. But among multiple facilities around the world, the com- pany has 530 employees. Rocket Lab, unlike the other Long Beach-based companies, has also branched out beyond launches and is producing components for the satel- lites themselves. The latest addition to the satellite division came in March A section of Rocket Lab’s Electron rocket separates as it enters a new phase of its “As the Crow Flies” mission in October 2019. Photo courtesy of 2020, when Rocket Lab announced Rocket Lab. the acquisition of Toronto-based Sin- clair Interplanetary. les. Like Rocket Lab, Relativity is in duction, Relativity has taken it a step sions. Relativity Space the business of producing traditional further. Sales for Relativity’s service have The new kid on Long Beach’s rockets used for smallsat deliveries. “We’re currently building the Ter- been “robust,” Schenewerk said, not- proverbial space block is Relativity But while 3-D printing has been used ran 1, which is the first entirely 3-D ing two recent contracts with NASA Space, founded in 2015 by Tim El- by Rocket Lab and the aerospace in- printed rocket,” said Caryn Sche- and global security and aerospace lis and Jordan Noone in Los Ange- dustry at large for years in parts pro- newerk, the company’s vice presi- company Lockheed Martin. dent of regulatory and government The company moved into its new affairs. “We’re building humanity’s home at Douglas Park last summer, multi-planetary future.” while the pandemic was wreaking To print entire rockets, Relativity havoc on most industries. But most of created Stargate, a system that uses the company’s employees were well laser beams to melt metal wire and equipped to work at home, Schenew- form each component. The wire is erk said, giving the company time to made of a metal developed by Rela- work on the build-out of its new fa- tivity. cility and to bring its printers online. Whereas Virgin Orbit and Rock- The flexible work environment et Lab’s vehicles can carry payloads stemming from the pandemic, Sche- of smallsats between 500 kg (about newerk said, also has helped the com- 1,100 pounds) and 300 kg (about 660 pany handle its quickly multiplying pounds) respectively, the Terran 1 is growth at its new home. capable of delivering payloads of up “We’ve more than doubled in size to 1,250 kg (about 2,756 pounds). The in the last year,” Schenewerk said, rocket will still be carrying smallsats, noting that the company has grown but they will be on the larger side of from around 100 employees before its the spectrum, sometimes nearly 500 move to Long Beach to around 280 kg. now. “We’ll be in the 500-employee Relativity is still in the develop- range by the end of this year is the ment phase, with tests of its engines expectation.” taking place at NASA’s Stennis Space To accommodate its growth, Sche- Center in Mississippi. The company newerk said the company is working is constructing its launch site at Cape with city officials to identify oppor- Canaveral in Florida and is slated for tunities for expansion within Long its first launch later this year, which Beach but would not disclose any de- will be a demonstration mission, tails. Scherewerk said. Schenewerk did say that the com- Schenewerk said Relativity also is pany is working with Pacific Gateway, working to set up a second launch site Long Beach’s workforce development at Vandenberg Air Force Base on the arm, to tap into the area’s diversity. West Coast within the next year. “We’re building rockets but we’re For the next few years, Relativi- also trying to build a company that ty’s missions will remain in the single thinks about the inclusive future of digits, Schenewerk said. But with the aerospace for the workforce that is en- capability of building a vehicle from gaging in these exciting endeavors,” start to finish in 60 days, she said the she said. “Long Beach has a long histo- company will be positioned to be part ry of aerospace and aviation and there of a rapid response launch, a term is a great opportunity to work with used by Space Force to describe rap- the city to continue that history.” idly deployed craft for various mis- AEROSPACE Long Beach Business Journal • February 23, 2021 • 13

In spite of pandemic shutdowns, report finds aerospace added jobs this year

Rocket Lab’s Electron rocket takes off in New Zealand for the company’s “As the Crow Flies” mission in October 2019. Photo by Andrew Burns and Simon Moffatt courtesy of Rocket Lab.

By BRANDON RICHARDSON manned by few people, with others join- Long Beach over the years has made in its workforce, however; it is older, ed- Senior Reporter ing in remotely from other rooms and a deliberate push to attract aerospace ucated men, with a high concentration locations. “Pretty much all the rooms companies in Douglas Park after com- of White and Asian workers. But at least It’s been a tough economic year for had one or two people.” panies such as Boeing and Northrop one company, Relativity Space, is try- just about every business sector, espe- However, the recent report noted, Grumman Corp. relocated to other re- ing to be more inclusive in its hiring, cially in the hospitality-heavy city of many of the aerospace companies in gions. Schenewerk said, noting the company Long Beach. the Los Angeles area are positioned The city, fueled by the new additions is working with Pacific Gateway, Long But one of the industries that has to focus more on space technology—a of Virgin, Rocket Lab, SpinLaunch and Beach’s workforce development arm, to emerged unscathed has been aerospace, chunk of which is funded through gov- Relativity Space in Douglas Park, has tap into the area’s diversity. which managed to add a few thousand ernment contracts—instead of aircraft positioned itself as a hub for the boom- Industries that cater to a younger jobs between September 2019 and Sep- production. ing space industry. more diverse workforce were far harder tember 2020, according to a February Early on in the pandemic, Virgin The industry across the region ini- hit by restrictions put in place to stem report compiled by the Los Angeles Orbit and its sister company Virgin Ga- tially lost about 1,400 jobs in March and the spread of the coronavirus. County Economic Development Corpo- lactic even pivoted their business mod- April, but quickly rebounded, adding The LACEDC report found arts, en- ration. els to focus on helping produce crucial about 3,000 jobs from May to October, tertainment and recreation and accomo- “We’re a community that tends to medical and personal protective equip- the LACEDC report found. dation and food services were the two double-down when we have challeng- ment, which at the time was in short Relativity Space, for example, near- hardest-hit industries by the pandemic, es,” said Dan Hart, president and CEO supply. ly tripled its staff from around 100 at the losing 39.5% and 28.2% of their work- of Long Beach-based Virgin Orbit. “We “Out engineers started to tinker and start of 2020 to around 280 as of ear- force, respectively, from September put our heads down and we drive.” we … decided to take on building a ven- ly February, according to Caryn Sche- 2019 to September 2020. Employment in aerospace through- tilator,” Hart said. “A couple months lat- newerk, the company’s vice president More than 25,000 waiters and wait- out the Los Angeles basin rose 6% er, we had delivered 600 ventilators to of regulatory and government affairs. resses alone lost their jobs during that year-over-year, with companies hiring the state of California. A couple weeks The newest addition to Long Beach’s time period, and roughly 55% of all un- software developers, industrial and after that, we gave the design to outfits reemerging aerospace sector, Relativity employment claims were filed by those aerospace engineers, machinists and in South Africa, South Asia and the expects to reach around 500 employees under the age of 44. mechanical engineers. Caribbean so they could produce it for by the end of the year, Schenewerk add- But while the outlook for hospitality The coronavirus pandemic did im- their populations.” ed. and other service-based industries re- pact the commercial aerospace industry The Jet Propulsion Laboratory in These jobs tend to be higher-paying, mains bleak, aerospace firms continue as flights were limited for much of the Pasadena similarly produced a NA- too. pushing forward. year due to stay-at-home orders. SA-designed COVID-19 ventilator. While the average county wage is “There’s a huge amount of innova- “We did have to redesign how we Virgin Galactic, meanwhile, began $67,100 annually, aerospace jobs pay tion,” Hart said. “By and large, it’s a operate,” Hart said, noting that normal- manufacturing face helmets and face more than $100,000 on average. pretty darn exciting time. We’re seeing ly bustling mission control rooms were shields, Hart said. The industry is not extremely diverse a renaissance happening in orbit.” REAL ESTATE 14 • Long Beach Business Journal • February 23, 2021 Less office space, more e-commerce warehouses: Lockdown continues to dictate real estate market third quarter of the year, the last published for new hires. “You can’t learn the culture by the real estate brokerage and investment working remotely.” management firm. Brick-and-mortar, non-restaurant retail Residential will remain in a tough spot, as it has been for Whether remote working arrangements years, Morris projected. prevail on a large scale will also have an “It’s difficult for the small retailers to impact on the residential real estate market, succeed right now,” he said. “Some of these said Phil Jones, managing partner at Cold- guys—they just got absorbed by the inter- well Banker Coastal Alliance. net.” Some homebuyers, with the anticipation of working from home moving forward, Office have set their sights toward the mountain The future of office space, another prob- ranges and beyond. More affordable markets lem child of the commercial real estate mar- outside of LA County, where single-family ket during the pandemic, remains uncertain. homes currently fetch an average price of The overall vacancy for office space in Downtown Long Beach increased from 19.5% at the end For the time being, the numbers reflect $709,500 according to the California Asso- of 2019 to 22.1% at the end of 2020, according to reports by Cushman & Wakefield. Photo by a fear among companies to commit to addi- ciation of Realtors, have become even more Brandon Richardson. tional office space in Downtown and subur- attractive to buyers as a result of the pan- ban Long Beach. demic. By ALENA MASCHKE Retail Lease rates have remained stable at “People being sheltered at home, work- Senior Reporter The yin to industrial real estate’s yang is $2.52 and $2.61 per square foot, with land- ing from home, realized that the home wasn’t found in the retail sector, where a move to lords offering other perks such as rent-free enough for them,” Jones said. In search of a Despite the ongoing vaccination effort online shopping and mandated closures has months or improvement allowances instead better deal, some are heading east, to the In- and subsequent reopenings currently un- many businesses struggling—causing more of lowering the asking rent, according to land Empire for example. “You’ll start see- derway in Long Beach, the local real estate inventory to come online and less demand Dave Smith, senior vice president at CBRE’s ing a flight to more affordable housing areas, market is still operating under the cloud of to absorb it. South Bay office. out of the coastal cities,” Jones said. COVID-19. “The transaction flow is pretty darn ane- Net absorption for both Long Beach sub- But the sheer lack of inventory means The demand for office space is low, as mic for now,” said Toliver Morris, CEO of markets, however, reflects the low interest in the local market for single-family homes many companies continue their work-from- William Morris Commercial, which holds office space at the moment. Both the down- has remained as hot as ever, with a single home policies, in turn driving up demand over 500,000 listings in the Long Beach town and suburban market have seen nega- listing attracting as many as 20-30 offers, in the residential market as stuck-at-home area. tive net absorption last quarter, at -8,924 and Jones said. As of Feb. 15, there were 247 sin- workers grow tired of the four walls they’ve But the reopening of outdoor dining and -26,866, respectively, according to CBRE. gle-family homes and 250 condominiums been surrounded by for almost a year or re- the upcoming spring and summer seasons How this submarket will fare in the fu- on the market in Long Beach, a number that quire more room for a home office. provide a glimmer of hope that is reflected ture will depend largely on whether com- is subject to fast-paced change, as the aver- As those stuck at home order apparel, in a slight uptick in inquiries for restaurant panies will continue remote work policies age home currently spends only 10 days on tech gadgets and even groceries online, an spaces, Morris said. beyond the restrictions of the pandemic. the market. uptick in e-commerce has kept the industrial “We’re starting to see sprouts,” he said. “Those who have found that they no The year-over-year development in sector flourishing, while the rest of the com- The growth, he noted, will likely happen longer need a traditional office space are home prices reported by the state’s Real- mercial real estate market has suffered. in properties that are already set up for gas- looking to either downsize or get rid of their tors association is equally indicative of de- tronomy use, many of which have become office space,” Eddy said. mand—buyers in December 2020 paid an Industrial vacant as the economic pressure of the pan- Further, many companies have spent average 10.6% more for their home than they The industrial sector is “the darling in demic became too much for their previous significant amounts of money to make sure did the previous year. the market right now,” said Robert Garey, occupants to bear. their employees were equipped with the And high prices didn’t slow down sales senior director at Cushman & Wakefield in “Existing infrastructure spaces are get- right technology and furniture to work from in LA County either—or anywhere in Long Beach. ting lots of attention,” Morris said. Spaces home. “They’re invested in the home office Southern California. Sales in the LA area Vacancy rates in the South Bay and that need a lot of upfront investment—not now,” he added. were up 30.5% year-over-year, second only ports region are still at record lows, despite so much. Garey, of Cushman & Wakefield, pro- to the 39% increase in home sales in River- a slight uptick over the past year, with Lee & “The savvy restaurateurs have had a jected that the office market will bounce side County. Associates reporting a vacancy rate of only rough year,” he noted. “They’re dealing with back, albeit with some changes. “I don’t The competitiveness of the market fa- 1.7% for the last quarter of 2020. their existing locations.” think that office is dead,” he said. vors wealthier buyers who are able to make Most companies leasing industrial spac- Instead, the market offers opportunities But, companies are likely to reimagine concessions, such as allowing the previous es have remained in operation throughout for those hoping to try out new concepts, and possibly cut down on their office space, owner to stay in the home rent-free for a the pandemic, with some experiencing without putting up the money to build out a turning it into a space where company cul- while or waiving appraisals meant to protect significant growth as a result of the e-com- restaurant from scratch. ture is created, maintained and passed on, their financial interests. merce boom. The site of the now-shuttered Rock Bot- Garey said. “It’s that competitive,” Jones said. “It’s “The vitality of the tenants is by far the tom Brewery as well as the former Burger- “Companies have cultures and those not a buyer’s market by any stretch of the strongest,” said John Eddy, executive vice IM location in Downtown Long Beach are cultures need to be nourished,” he said, imagination.” president at Coldwell Banker Commercial examples of sites that have generated some something that will be especially relevant BLAIR WESTMAC. “Many have actually interest, according to Morris. flourished.” Because of the sheer volume of small re- But, Eddy pointed out, there’s a cap on tail spaces—many of them owned by inde- growth in this subsector in the Long Beach pendent landlords—it’s difficult to find com- area because of the scarcity of land on which prehensive data on the status of the retail real new industrial property can be developed. estate market in Long Beach, Morris said. “The South Bay is really hamstrung According to Colliers’ reports on the re- from a growth standpoint,” Eddy said. tail real estate market in the Los Angeles ba- The limited inventory and high demand sin, vacancy rates saw the widest increases for warehouses, distribution centers and of the past three years during the pandemic, other industrial properties near the nation’s reaching a 6.2% vacancy rate for the Greater largest port complex has kept vacancies low LA region in the second quarter of 2020. and demand high, experts say. Since then, vacancy rates have slowly Trucks navigate the narrow streets of Long Beach’s industrial Westside near the port, Thursday, decreased again, coming in at 5.9% in the Feb. 18, 2021. Photo by Thomas R. Cordova. REAL ESTATE Long Beach Business Journal • February 23, 2021 • 15

Ed Killingsworth on the beach: Home he designed on the Peninsula is on the market for $5.179 million By TIM GROBATY on both floors, with the top floor designed Columnist around an open-air courtyard patio. The master suite features sliding doors to the out- A two-story beach house at 2 Laguna door patio, wood ceilings, built-in wardrobe Place on the Peninsula is on the market for closets and a master bathroom with vanity, the second time since world-renowned Long dual sinks, and a separate bathtub and walk- Beach architect Edward Killingsworth de- in shower. signed it in 1956 for its original owners, Dr. The home also has an elevator and a two- Thomas Kiddie and his wife Mary. car garage. The listing tag of $5.18 million puts the The upgrades, coupled with the home’s house in the pricing stratosphere of Long setting, makes it one of the most opulent Beach homes. Currently, there are just two properties in town right now, though it might other homes listed at a higher figure: An not fly off the shelf at $5-million-plus. “Once Alamitos Bay-front five-bedroom, five-bath you get over the $5 million mark, you’re sepa- at 5565 Naples Canal, for $5.7 million, and rating the men from the boys,” Realtor Muir- another Peninsula home, a four-bedroom, head admits. “You need a lot of millions.” seven-bath oceanfront home on the board- The home, as it stands now, isn’t so much walk at 5601 E. Seaside Walk for $5.199 mil- an authentic Killingsworth as it is a home in- lion. spired by Killingsworth. He wasn’t an archi- The Kiddie family got its money’s worth This upgraded Edward Killingsworth-designed home on the Peninsula is at the top end of the tect who thought too highly of people mon- out of the house over the decades. Thomas market, listed at $5.179 million. Listing photo courtesy of Keith Muirhead. keying around with his original plans, and Kiddie was a pathologist at St. Mary Hospital when a home he designed was significantly, and both he and his wife were championship sworth design, for $2.6 million. nature. or oftentimes insignificantly, altered, it was anglers. He was president of the Southern According to listing agent Keith Muir- The landscaping isn’t as graceful as Kill- generally dead to him and he wrote it off as a California Tuna Club as well as president of head, the new owners spent at least $1 mil- ingsworth generally preferred, but perhaps child gone hopelessly bad, leaving him both the Long Beach Medical Association. To- lion on remodeling the house, transforming the eternal expanse of the Pacific visible broken-hearted and resigned to the loss. gether they raised two boys and two girls in it from a homey, family beach house into throughout the house was more than enough Which isn’t to say there’s anything wrong the beachfront home. Thomas died in 1994, something a few levels more glamorous and for the architect who invariably integrated the with the house—and for many people’s taste but the house remained as the center for fam- upscale. inside of his houses with the outside environ- it’s vastly improved and perhaps warrants its ily get-togethers for another 23 years, when There are still major Killingsworth fea- ment. price tag. Mary died at home, surrounded by her chil- tures, including the generous use of glass, The sellers have obviously put a lot of It’s a gem if you’re looking for the ulti- dren, as the sun and the year were setting, on his floating stairs, the nice touches of Cata- money into the house, with new window mate beach pad, but if you’re a Killingsworth Dec. 30, 2017. lina Island-quarried stone that gives it a solid trimming, a kitchen with top-dollar applianc- purist, wait around for one of the other couple Five months later, in May 2018, the home mid-century look, as do the post-and-beam es and modernized bathrooms. dozen Long Beach homes that he’s designed was purchased, still in its original Killing- ceilings, a Killingsworth/Mid-Modern sig- The home retains its wide-open layouts to come on the market.

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Safe at home—Bluff Park and the Beans House JUST LISTED of Long Beach that was annexed by UNDER CONTRACT the city in 1906 and is the city’s second neighborhood to be designated as a his- toric district. The area runs along Ocean Boule- vard between Loma and Junipero av- enues, with Broadway as its northern boundary. 425 40TH STREET, SAN PEDRO, CA Naturally, the homes on Ocean are 4-Units, Point Fermin location in some ways the most desirable, with unimpeded views of the Pacific thanks to Bluff Park itself, which runs along the entire length of the district on the south side of Ocean. But First Street (formerly Park Boulevard), too, is lined SOLD with what could be considered more beautiful homes laid out along an ex- tra-wide street with little traffic and quite noticeably quieter than the boule- vard just one block to its south. The homes in Bluff Park are pre- dominately Craftsman, though the whole range of architecture can be 3939 ATLANTIC AVENUE, LONG BEACH, CA 822 W. WILLOW, LONG BEACH, CA found, from Tudor and Spanish Re- 54,000 SF Office Building in Bixby Knolls Killingsworth Architectural Design vival to Cape Cod and Mediterranean, to Mid-Century and Modernist and Post-Modernist. Bluff Park is where the city’s early wealthy residents, as well as monied people from Los Angeles and Pasade- FOR SALE na, chose to make their home or sum- PRICE REDUCTION mer cottage: Members of the Buffum’s family (including Dorothy Buffum, later Dorothy Buffum Chandler), Gov. An Irving Gill-designed Modern home on Ocean Boulevard in Bluff Park Historic District. Photo by Thomas R. Cordova. Frank Merriam, oilman A.T. Jergins By TIM GROBATY and heiress Elizabeth Millbank Ander- AVAILABLE PROPERTIES Columnist son. 3414 E. 7TH STREET, LONG BEACH, CA Anderson, who split her time be- Mixed-Use on High Traffic Corridor 249 OCEAN BOULEVARD LONG BEACH • FOR LEASE Home buyers who can afford to tween Long Beach and New York, built Seller Carryback Financing Available a home on the south side of Ocean at Renovations Underway • City & Ocean Views live in the pricier parts of town mostly On-Site Cafe, Car Rental Service, Car Wash, flock to the coastal areas in the south- Kennebec in 1912 for the ungodly sum and Security Guard • Easy Access to Fwys east part of town: the canals of Naples, of $100,000. The 15-room Craftsman Monument Signage Available • Charter Busi- ness Cable • Full Elevator Modernization the beachfront homes of the Peninsula, would later become the Long Beach (: Noel Aguirre/ Jeff Coburn or they’re drawn to the quieter euca- Museum of Art. FOR SALE lyptus-lined estates of Los Cerritos’ Early filmmakers and stars became 3080-3090 EAST 29TH STREET 4300 LONG BEACH BOULEVARD Country Club Drive. Those with more enamored of Bluff Park, and bought or LONG BEACH • FOR LEASE LONG BEACH • FOR SUBLEASE of a taste for mid-century luxury a few rented the homes along Ocean. Among notches above the Cliff May homes in them were the Horkheimer brothers, East Long Beach will always show high who ran Balboa Studios, and stars Ros- interest in Park Estates. coe “Fatty” Arbuckle and Theda Bara. But sometimes overlooked by peo- W.C. Fields rented the “Weathering ple willing to write a million-dollar Heights” home at 3065 Ocean Blvd. for 2011 PACIFIC AVENUE, LONG BEACH, CA check or more for a house is Bluff Park, about a dozen years in the 1930s, and CORONA AVENUE, LONG BEACH, CA 4 Unit, Mixed Use Invesment Opportunity ±13,420 SF Industrial Buildings • 16’ Clear Unit 510 - ±1,921 SF • Sublease Thru 3/31/23 the original high-dollar neighborhood (Please Continue to Page 18) 4-Units, Double Wide Lot in Belmont Shore Two Buildings With Private Yard 5th Floor Office w/ 5 Private Offices • Retail One Truck High and Six Ground Level Doors & Restaurant Amenities Within Walking Distance (: Garrett Massaro / Brandon Carrillo (: Dimitre Petrov / Dylan Espley-Jones

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562.354.2500 www.cbcblair.com | (562) 495-6070 5000 E. Spring St. Suite 600 | Long Beach, CA 90815 © 2020 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. www.lee-associates.com | DRE Lic # 01069854 All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All information contained herein is from sources deemed reliable and is submitted without any warranty or representation, express or implied, as to its accuracy or completeness. We assume no liability for errors or omissions The Long Beach Museum of Art is the former home of heiress Elizabeth Millbank Anderson. Photo of any kind. Corporate BRE #01330395 by Thomas R, Cordova. COMMERCIAL PROPERTIES FOR SALE & LEASE | LOCAL EXPERIENCE. GLOBAL STRENGTH.

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www.cbcblair.com | (562) 495-6070 © 2020 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates.

All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All information contained herein is from sources deemed reliable and is submitted without any warranty or representation, express or implied, as to its accuracy or completeness. We assume no liability for errors or omissions of any kind. Corporate BRE #01330395 REAL ESTATE 18 • Long Beach Business Journal • February 23, 2021

The Weathering Heights home in Bluff Park was once rented by W.C. Fields and Clark Gable and Carole Lombard. Photo by Thomas R. Cordova.

(Continued from Page 16) pression that he has just spit out a hand Clark Gable and Carole Lombard vaca- grenade.” tioned in the house. When a pro ballplayer complained Other notable homes in the area in- that Beans cussed him out, he was as- clude the Loynes House, built by Long sured that it was just Beans’ way of Beach Yacht Club co-founder Dick saying hello. Loynes and his mother in 1928 at 2501 Beans’ career included umpiring six E. Ocean Blvd.; the Heartwell/Lowe World Series games and three All-Star House, a Colonial Revival at 2505 E. games in his 24 years of officiating in Ocean Blvd.; the Raymond House, at the mid-1920s through 1949. He was 2749 Ocean Blvd., designed by archi- featured and memorialized in a Norman tect Irving Gill, often called the father Rockwell painting, titled “Tough Call,” of modern architecture, in 1918; and the or “Game Called Because of Rain,” that Milton Baird House, built for the pio- placed him on the cover of the Saturday neer settler of Long Beach and styled Evening Post on April 23, 1949. The after an 18th-century French town- original painting is in the collection of house, at 2515 Ocean Blvd. the National Baseball Hall of Fame. Today, another house of fame is “I heard that when the house was on the market at 2721 E. Ocean Blvd. sold, there was a big barrel of auto- The residence, listed by Mollie Beck graphed baseballs in it,” said Realtor of Coldwell Coastal Alliance, features Beck. two separate homes, and the second, Reardon’s unquenchable love for rear house is much more than an af- beer was also legendary. A dedicated terthought mother-in-law shack. The drinker of Budweiser, he would walk two-story, two-bed, three-bath rear re- out of a bar if it didn’t carry his brand. treat was completed in 2018 and is full That loyalty paid off when Budweis- of top-line fixtures. er offered him a job as spokesman for The front, primary residence is the brand. Beans took his affinity for the one with a history. The unimpos- Bud a step further in 1946, when he ing three-bed, three-bath one-story bought the Budweiser distributorship brick house was the former residence in Long Beach, which led to him buy- of famed Major League umpire John ing a home in Bluff Park. He ran the “Beans” Reardon, a colorful, quotable distributorship until he sold it in 1967. and rough-talking ump who was the Beans died in 1984 at the age of 86. sort of person who could step in and The Beans two-house compound is out of a Damon Runyon yarn. A sports- listed at $2,998,750. It would be a steal writer once wrote of Beans, “When Mr. if the barrel of autographed balls came Reardon speaks you are under the im- with it.

The Beans Reardon house at 2721 E. Ocean Blvd., with a second home in the back, is on the market for nearly $3 million. Photo by Thomas R. Cordova. REAL ESTATE Long Beach Business Journal • February 23, 2021 • 19

A rare chance to buy a loft penthouse in the historic Ebell Club for $878,000

By TIM GROBATY others and they range in size from 1,200 to Columnist 2,200 square feet, and they don’t go on the market very often, with an average of one The Ebell Club at Cerritos Avenue and unit selling per year. Third Street in Alamitos Beach continues to Currently, the true penthouse of the preside over its neighbors like a grand and complex is for sale, listed by Nate Cole of moneyed matron just as it had when it first Unique California Properties. opened in 1924. In recent times, Realtors have termed The Spanish Renaissance-style build- virtually every unit higher than the lobby a ing was constructed for the club by Charles penthouse, and all of the second-floor con- T. McGrew, a notable Long Beach build- dos at the Ebell are called penthouses, but er whose company C.T. McGrew & Sons Unit #201 is the jewel of the Ebell, the pent- earned the nickname as “the firm that built house of the penthouses. the Long Beach skyline.” Priced at $878,000, the condo features That might have been a bit over the top over 1,800 square feet of living space with in terms of praise, but McGrew’s company 18-foot ceilings in the unit’s main level with did compile an impressive list of building its living area, main bedroom, a bath and a achievements that include the Pacific Coast kitchen. Club, the First Congregational Church, the Swirl your way up on the industrial spi- Press-Telegram Building and several small- ral staircase to the second floor of the loft er buildings including private residences and where you’ll find a guest bedroom or office A penthouse loft is for sale at the historic Ebell Club. Listing photo by Cody James. the Alamitos Branch Library. and a half bath. Go through the sliding glass Less than a decade after its completion, Beach promoted women’s education through Today, the Ebell Club is enjoying a new doors to your own, private outdoor patio, the the $250,000 clubhouse was damaged in the study groups, lectures, music, books, travel life as a quality elegant event space, as well only such amenity in the complex, though March 10, 1933 quake. A loan of $101,200 and poetry, while the club’s theater made as an 11-unit loft condominium complex re- all units come with their own balcony, a ra- was secured for the rebuilding, and, to help money screening feature films. purposed in 2005 at the building’s eastern re-enough feature for loft units. in the cause, satirist Will Rogers moseyed The club reached its peak in the mid- end by preservationist and developer Jan The rooftop patio provides a bit of a peek into Long Beach to give a talk before a sold- 1950s and 1960s when its membership grew van Dijs, who bought the building in the ear- at the ocean to the south, says Cole. out crowd at the Municipal Auditorium, to around 3,000 members. ly 2000s. Amenities include two secure parking hauling in $1,148 toward the rebuilding ef- But societal changes caused member- Events promoter Alan Dunn purchased spaces with additional storage available, as fort. ship to dwindle as more women entered the Ebell in 2016 and totally revamped the well as access to the gym and exercise room. The building, in fact, has outlived the the workforce. By 2002, it had a mere 100 events space, but left the condos remain as Trash, sewer and water fees are included in club itself. Founded by Adelaide Tichenor members remaining and the club formally van Dijs designed them. the association fee of $619 a month. and 17 other women in 1896, Ebell Long dissolved in 2013. Each residential unit is unique from the

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Country Club Drive is Long Beach’s Hollywood boulevard Gibbs was the initial master planner of Cal State Long Beach, before Killing- sworth took over the role in 1962. While the house attracts its right- ful share of architecture aficionados, it is perhaps even more of a draw from the cult followers of “Donnie Darko.” “People come by and say they’re ‘Donnie Darko’ fans and ask if they can take a picture of themselves in front of the house,” says Patterson. The interior of the home impresses visitors as soon as they enter, with a grand foyer with a sweeping staircase. Other features, as you venture inside, include a thoroughly upgraded kitch- en, a formal dining room, living room, and a massive family room highlighted by a hand carved custom marble man- tle and grand fireplace. An elevator provides an alternative to the sweep- ing staircase to access the upstairs bedrooms and master suite with its marble master bath. Though “Donnie Darko,” starring Jake Gyllenhal, with Patrick Swayze A home in Bixby Knolls that was featured in the movie “Donnie Darko” in Long Beach. Photo by Thomas R. Cordova. and Drew Barrymore, is the home’s biggest role, it has also been used for By TIM GROBATY several commercials and smaller parts Columnist in the TV shows “CSI: Miami,” and “Joan of Arcadia,” and the feature Hollywood homes abound in Long films “The Girl Next Door” and the Beach, a city frequently visited and spoof “Not Another Teen Movie.” employed by film companies who find The upper-class Los Cerritos neigh- it handy for its acting ability to por- borhood includes several houses with tray any town of any size in the U.S. film careers, most famously the Fer- convincingly, as well as its proximity ris Bueller House from “Ferris Buel- to Southern California movie studios. ler’s Day Off,” at 4160 Country Club Long Beach’s waterfront proper- Drive. The “Ferris” house also had a ties can pull off a perfect portrayal of turn in “The Girl Next Door,” as well such places as Miami and other Florid- as a bloody scene in “Red Dragon,” the ian waterfront cities, and its Country prequel to “Silence of the Lambs.” Club section of Los Cerritos can play The “American Pie” house, at 4153 virtually Anytown, USA (as long as Cedar Ave., played the East Great Falls cinematographers can keep palm trees residence of Jim Levinstein (Jason from photobombing the scenes), where A home in Bixby Knolls that was featured in the movie “Ferris Bueller’s Day Off” in Long Beach. Biggs), where the titular pie makes its middle class families inexplicably live Photo by Thomas R. Cordova. ham-fisted appearance. Farther away in homes that, at least in Long Beach, from Los Cerritos, Poly High was sell for well over a million dollars. “Darko” role as a home in Middlesex, “It is notable for being the name of the used to portray East Great Falls High One such home, which played the Virginia. In fact, the house was so main city in the film ‘Donnie Darko,’ School’s interior scenes, while across- residence of Donnie Darko in the film credible in its supporting acting role though the movie was filmed entirely town’s Millikan High was used for ex- of the same name, is on the market it more or less put Middlesex on the in California.” teriors. The Cedar house was featured now, and if you doubt the house’s act- pop-cultural map. Google the town The star home, at 4225 Country in “American Pie’s” two sequels as ing chops, consider that it played that and all Wikipedia can say about it is, Club Drive, is listed by Realtor Jason Patterson of RE/MAX College Park well. In fact, “Pie 2” used a couple of Realty for $3.15 million—and it’s in other Los Cerritos homes, one at 4165 great shape. The hole in the roof where Country Club Drive, and the other at Since 1985 Same Ownership a jet engine came crashing through in 3925 Cedar Ave. The 2001 “Risky Business” spoof INTERNATIONAL CITY ESCROW, INC. the movie is totally gone now, due to the fact that it never happened in real “Not Another Teen Movie” slyly used life; just another bit of Hollywood a few previously filmed teen movie trickery. residences, including an impressive PATREECE COBURN Tudor mansion at 4252 Country Club COMMERCIAL ESCROW OFFICER The residence is as stately as any other on Country Club Drive, the most Drive, where athlete Jake Wyler lived. SPECIALIZING IN elegant of any street in the city, featur- The home also served as the residence COMMERCIAL TRANSACTIONS ing one eye-popping old-money man- of the Patrick Swayze character, moti- BULK SALES sion after another. vational speaker Jim Cunningham, in ABC LICENSE TRANSFER The Colonial-style house was de- “Donnie Darko.” EXCHANGES John Robinson, whose company LEASE OPTIONS signed by the famous Long Beach AND ALL YOUR ESCROW NEEDS architect Hugh Gibbs, with a later ad- Long Beach Locations, which rep- dition designed by the equally famed resents several houses in Los Cerritos, WWW.ICESCROW.COM architect Edward Killingsworth. It says the neighborhood is most appre- 562249779777 wasn’t the first time the two men had ciated because of its appearance and 5000 E. SPRING ST. SUITE 120 AN INDEPENDENT ESCROW CORPORATION. ability “to portray a suburban neigh- LONG BEACH, CA 90815 LICENSED BY THE DEPT. OF BUSINESS OVERSIGHT worked back-to-back on a project. borhood in any Midwestern city.” REAL ESTATE Long Beach Business Journal • February 23, 2021 • 21

You can still buy a lot in Naples for $4 million; throw in a house for $4.2 million out having to duck under the bridges of Naples. Elsewhere in town, there’s anoth- er sweet vacant parcel for sale on the corner of Kennebec Avenue and the eternally bucolic and inviting First Street in the Bluff Park Historic Dis- trict. Purchase this lovely 8,500-square-foot lot for $1.5 mil- lion and you’ll run the peril of alien- ating your neighbors who have en- joyed this bit of green space as a sort of de facto park for years and might not be overly pleased if you put up a mini-compound of three two-story Mediterranean style units, each with its own rooftop deck. Construction documents, including construction drawings, survey, geotechnical re- port, grading plans, structural plans, landscaping plans, and mechanical, electrical and plumbing plans for the buildings are included in the pur- chase price. The property includes an ancient and stately evergreen tree, which is the highlight of the corner and I, for one, intend to riot, along with near- This rare Naples vacant parcel has been on the market for more than 1,000 days. It is listed at $4 million. Photo by Thomas R. Cordova. by neighbors, if the future owner monkeys around with that tree. Work By TIM GROBATY to twist an ankle in a gopher hole. 45-foot open-water boat deck giving around it, or buy the Naples lot in- Columnist Throw a tent up on this lot and you you access to the bay or ocean with- stead. could live happily the rest of your When you’re talking real estate, life. you’re talking land. Sure, houses After 1,000 days and a month, the are nice and sometimes eye-catch- lot is still listed for sale, obviously ing; sometimes they are the stuff of by a considerably less-than-motivat- which covetousness and bitter envy ed seller. is made; sometimes they do little “We’ve had offers for as much as more than providing basic shelter. $3.5 million, but the seller’s pret- But the money’s in the land. Burn ty stuck on $4 million,” said listing down a house, or knock it over and agent Keith Muirhead. you’ve still got the property on which Is the lot worth $4 million? Prob- to rebuild. ably not. Maybe someday, but right And, when you’re talking land, now the average price of a home in you’re talking location. It’s why you Naples is still under $2 million, and, maybe can’t afford to buy an extraor- while the more attractive properties dinarily rare vacant lot in Naples, overlooking Alamitos Bay and other but you can snap up a plot in the mid- waterfront homes can easily go for dle of town with little more than your double that amount, perhaps the best good looks and excellent credit. way to gauge the vacant lot’s value When I embarked on writing is by the fact that right next door to about real estate in Long Beach at it, the lot’s owner has listed a fairly the beginning of 2019, one of the spectacular house he owns for $4.2 first things I wrote about was a va- million. cant waterfront lot on Rivo Alto Ca- It’s like, pay $200,000 more for nal in Naples, which was on the mar- the lot and they’ll throw in a two-sto- ket for $4 million. ry house with a high-dollar kitchen As vacant lots go, this one was featuring a six-burner Gaggenau top-shelf: A premier corner over- stove top that’ll make you throw sized lot on Naples Island at the riv- away your cheesy Viking, plus a erine intersections of the Rivo Alto walk-in pantry and a walk-in laundry Canal, the Colonnade Canal and Na- room. ples Canal, and just steps from the The four-bedroom, four-bath Colonnade itself, the center of the opens grandly into full-on views Neapolitan universe. of Alamitos Bay and virtually dai- It’s a vacant lot with its own boat ly spectacular sunsets. The sec- dock that runs the entire 68 feet of ond-floor living quarters sports a the lot’s frontage; typically, a vacant large balcony, cathedral ceilings in lot doesn’t come with a place to moor the master suite and a sitting room your yacht. with a fireplace. In short, it’s not the vacant lot of For your means of transportation, our youth, where kids would have there’s a three-car garage and room dirt-clod fights while trying not for additional vehicles outside, and a REAL ESTATE REAL ESTATE 22 • Long Beach Business Journal • February22 • Long 23, Beach 2021 Business Journal • February 23, 2021

Long Beach-based company develops app to help mom-and-pop landlords and their tenants First, they will be focusing on direct bank payments and PayPal, but eventually, their plan is to add mobile-driven payment ser- vices like Venmo and Apple Pay. “Our pitch would be: This is going to help you organize all your payment systems,” Morgan said. For renters, adding mobile pay- ment platforms would make it easier to pool funds for rent between roommates or family members. The first version of the app is scheduled to launch this week in mobile app stores. A city as diverse as Long Beach, Morgan and Bronson say, is the perfect place to test the waters and gauge interest from landlords. “It’s a really wonderful place to test the market, because you have access to so many different groups of people,” Morgan said. Down the line, the two are also planning to add more functionalities to Rentado, from managing and documenting maintenance re- Justin Morgan, left, and Mike Bronson have created an app called Rentado for renters and proper- ty managers, Wednesday, Feb. 10, 2021. Photo by Stephen Carr. quests to notifications about street sweeping and trash collection schedules. By ALENA MASCHKE difficult,” Morgan said. “I remember think- “Things that cause a lot of animosity be- Senior Reporter ing back then: This should be so much eas- tween the renter and the landlord,” Bronson ier.” said. About seven years ago, in October 2013, The 39-year-old has since settled down There’s still plenty of work ahead, but Justin Morgan and his wife had just celebrat- and started a family just across the street A demo of the Rentado app interface. according to Bronson, getting a preliminary ed the arrival of their newborn son. When from his alma mater, Cal State Long Beach, version of the app into the hands of users was temperatures began to drop rapidly a month but the experiences he made as a renter in his equal process,” Morgan said about the com- a priority for them. later, the couple wanted to turn on the heat 20s stuck with him. pany’s mission. The app, Morgan and his With the help of Wade Martin and the in their apartment, only to find out that the To be clear: Morgan didn’t blame his business partner Mike Bronson hope, will rest of the team at the CSULB Institute for heater didn’t work. landlord. provide more transparency and accountabili- Innovation & Entrepreneurship, the two Morgan, who at the time commuted “When you have smaller landlords, they ty between landlords and their tenants. Long Beach grads were able to narrow down from Long Beach to Los Angeles, remem- just simply don’t have the time,” he said, For now, Morgan and Bronson are fo- their vision and get started on their project, bers feeling stressed out. pointing out that for many small-property cused on setting up a mobile, contactless rent receiving feedback from other successful en- “You go into this protective mode when owners, rental revenue is often just additional payment system called Rentado to avoid the trepreneurs in the real estate tech space and you have a newborn,” he recalls. income next to a full-time job. need for hand-delivered checks, which is still working with a development team to turn The couple texted their landlord, who So together with an old friend from his a monthly reality for many renters, especially their ideas into reality. said they had to get a subcontractor involved, CSULB days, Morgan decided to develop an at the lower end of the rental market. “Long Beach really did provide the in- the whole process would take about a week. app to help improve communication between “Everything is moving to the phone,” frastructure for us to start,” Morgan said. “I “Everything in terms of maintenance small-property landlords and their tenants. Bronson said. “Everything is moving toward think it’s a wonderful place to develop new requests and communication was incredibly “It’s about creating a fair process, an contactless payment.” technologies.”

Downtown luxury apartments will become moderate-income housing under new pilot program By JASON RUIZ million in tax revenue over the course of Staff Reporter the pilot program. All tax collecting bodies are anticipated to lose about $43 million. The Oceanaire apartment complex “This is currently the only option for in Downtown will become an affordable providing moderate income housing units,” housing project for middle-income earners said Patrick Ure, a manager in the city’s de- for at least the next 15 years under a new velopment services department, who laid pilot program approved by the Long Beach out the risks of the project for the council. City Council on Feb. 16. The city can force a sale of the property Rents in the building will be locked into after 15 years, but a financial analysis car- an agreement that will keep rents lower ried out for the site suggests that it would for households making between 80% and be better for the property to be sold after 120% of area median income for potential- 30 years. Still, a city staff memo noted that ly as long as 30 years. It’s expected that full “there are likely situations where the city conversion of the 216 units in the building and other taxing bodies do not recover fore- will take four years. gone property tax or make a profit” when Under the agreement, 87 units (80% of A pilot program will transform the Oeanaire apartments in Downtown into moderate-income hous- that sale happens. the median income), 43 units (100%) and ing. Photo by Thomas R. Cordova. The city’s subsidizing of the project by 86 units (120%) will receive varying de- foregoing property taxes normally collect- grees of rental reductions. ter into an agreement with the California Greystar Real Estate Partners would ed will mean that services elsewhere in the A two-bedroom apartment for a house- Statewide Communities Development Au- be brought in as the property manager and city will need to be reduced. hold earning $72,080 would cost $2,366, thority to issue bonds for the purchase of the city would receive the public benefit of The Oceanaire opened in 2019 as the while the same apartment would cost a the Oceanaire from its current operator, having more affordable units added to its city’s newest luxury apartment complex, household making $108,120 annually about Waterford Property Group. inventory, but it will come at a cost. and a spokesperson said in early 2020 that $3,550 per month. The market rate for a The acquisition by the development Because the project will exempt the it’s expected to be near 90% capacity by the two-bedroom unit in the Oceanaire is about authority is expected to cost about $144 building from property taxes, it’s expected summer. As of January, only about 71% of $3,529 per month, according to a presenta- million in real estate and ongoing main- to cost the city, the county and schools in the units were occupied, according to a city tion to the council. tenance, administration and management Long Beach about $1.5 million in year one. report. To accomplish this the city will en- fees. The city alone is expected to lose about $8

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