Orange County Business Journal

OCBJ WEEKLY EDITION

Preferred Outcome

Marketing Programs Behind Growth of Service Provider for Independent HotelsPreferred Hotel Group’s 1,600-point hotel inspection is intense.

By Kari Hamanaka February 15, 2014 midnight   $$ Share

Aggregate Anchors

Centers Turn to Clusters of Restaurants as Drawing Cards

Developers and owners of Orange County’s retail centers are increasingly going small and thinking with their stomachs to attract customers.

Downtown Santa Ana’s Next Act

Food Hall Latest Twist for East End

The developer who’s driving downtown Santa Ana’s makeover is doubling down on dining.

Lyon Communities Reaches Peak in Silicon Valley

REAL ESTATE: Tops price for big OC complexes by $100,000 per unit

A bet on Silicon Valley’s apartment market has paid off handsomely for Newport Beach-based Lyon Communities.

Blizzard Plays Cards Right With Hearthstone

TECHNOLOGY: Free game on pace to bring in $100M in 1st year

Blizzard Entertainment Inc.’s first foray into free-to-play video games is turning into a big moneymaker.

Last Holdout in Recovery: 100,000-SF-Plus Deals

Few Leases for Big Chunks of Contiguous Space This Year

The Orange County Social Services Agency practically has the market to itself as it explores a headquarters move from 888 N. Main St. in Santa Ana.

Retail Market Continues Slow Recovery

Retail sales continued to gradually improve in the second quarter, aiding the U.S. economy as local retail markets kept moving toward a full post-recession recovery.

Office Market Continues on the Upturn

The Orange County office market continued its healthy performance in the second quarter, indicating market stabilization and a positive trajectory, with possibly the most significant trend being the current progression of average asking lease rates.

Industrial Market Posts Healthy Q2

The activity levels for the Orange County industrial market remained healthy in the second quarter, with approximately 2.2 million square feet of gross activity.

Ups & Downs for Allergan; Devil of a Case; Augie on Ice

Last week had some wags wondering if Allergan CEO David Pyott might be forced into an error by spending too much on an acquisition in hopes of putting the Irvine-based drug maker out of reach of hostile pursuers Valeant Pharmaceuticals and New York hedge funder Bill Ackman.

Gallegos Crosses Over for Milk Board’s Campaign

MARKETING: Works on par with Goodby on $20M effort

Grupo Gallegos has crossed over the demographic divide to work hand in hand with one of the best-known agencies in advertising on the California Milk Processor Board’s new $20 million ad campaign.

Entertainment Company Anticipates Reaction to Film

MEDIA: Main Street Films hopeful about latest flick

Main Street Films Inc. had a big weekend.

Security Firm Grows in Anaheim, SD

Anaheim-based Firstline Security Inc. has expanded its facilities in Orange County and San Diego in line with its fast-growing business.

OC Cities Post Population Growth, Irvine Up Nearly 5%

Combine for 1% Increase To About 3 Million Residents

Orange County cities continued growing last year, combining for a net 1% increase in population to about 3 million.

Telecoms Drop Employment After 2 Years of Gains

630 Jobs Lost As Verizon, Time Warner Cut Costs

Two cost-cutting moves fueled a significant drop in local employment among Orange County’s largest telecommunications companies in the past year.

Trace3 Names New Chief Executive

Irvine-based IT consultancy and service provider Trace3 promoted Tyler Beecher to chief executive.

Pennsylvania Firm to Buy Skilled Healthcare

Foothill Ranch-based Skilled Healthcare Group Inc. said it’s being bought in an all-stock deal by Kennett Square, Pa.-based Genesis HealthCare.

Local Companies Honored as ‘Most Trusted’

Several local companies and an executive were honored for being the “best connected to their treasured customer base” at the OC Trust Summit at California State University-Fullerton.

Restaurant Chain Receives Funding

Irvine-based restaurant chain and franchisor LYFE Kitchen received a minority investment from Carlisle Corp. and will move to that company’s Memphis, Tenn., headquarters, according to news reports.

Fastest-Growing Private Cos. Wanted for List

ECONOMY: Centerpiece of Sept. 22 Special Report

We know you’re out there. The Business Journal is producing its annual list of fastest-growing privately held companies, set to appear as the centerpiece of a Special Report in its Sept. 22 issue.

Multimillion-Dollar Mobile Homes New Beachfront Niche

Most Potential Buyers Live Within 75 Miles of Coast

The waterfront home on North El Camino Real in San Clemente boasts all the accoutrements buyers expect from a house with a million-dollar-plus price tag: It has direct access to the beach, hardwood floors, exquisite tile work in the kitchen, high-end stainless appliances, a luxurious spa-like master bath, and floor-to-ceiling windows in the living room that frame the blue of the ocean just steps from the brand-new brick deck.

ADDENDUM

Other items of interest Orange County Business Journal Vol. 37, No. 34

Wet Seal Inc. has until Feb. 17 to get its shares above $1 for 10 consecutive days or face delisting by Nasdaq, the exchange warned in a letter to the Foothill Ranch-based retailer.

OCBJ Calendar

Aug. 25-Sept. 3, 2014

This week's business and other event listings.

Analyst Sees ‘Smooth Transition’ for New Allergan CFO

Personal Decision Prompts Move, New CFO Praised

Irvine drug maker Allergan Inc. has a new chief financial officer as it works to fight off hostile suitor Valeant Pharmaceuticals International Inc.

Wet Seal Sings ‘Fifth Harmony’ in New Campaign

Features Fashions Inspired By Girl Pop Music Group

Look for harmony in Wet Seal Inc.’s upcoming marketing campaign—Fifth Harmony, that is.

New Social Networking Site Aims to Pay It Forward

Allocates $1M to Award Money, Resources to Users

A software entrepreneur in Irvine has launched a social networking site to make users’ dreams become reality through crowdsourcing.

Real Estate Deals

Sales and leases of offices, industrial buildings, retail space and apartments

Tustin Building Gets Pharma Tenant, Creative-Office Plans

CapRock Buys Property From Western Realco

A portion of an industrial building in Tustin just off Jamboree Road near the Santa Ana (I-5) Freeway is being eyed for a creative-office development following its sale to a local investor.

Tasty Brews to Satisfy New Appetites

MANUFACTURING: Rising craft-beer sector part of US trend

Craft beer is briskly bubbling toward the surface of Orange County’s economy as a small but growing sector catering to increasing tastes for locally made food and beverages.

Green Grows OC Pot Sector

Businesses Sprout to Support Burgeoning Industry

The Green Rush has hit Orange County. Several local companies, from packaging makers to grow-kit specialists, are aiming to cash in on the recreational and medicinal marijuana market that’s booming across the country despite a hazy regulatory environment.

Surfwear Brand Makes Fresh Wave in Industry

APPAREL: Sector vet’s startup ‘deep set’ on making its name

Depactus debuted last month at the Agenda trade show in Long Beach, and it appears the San Clemente-based brand focused on young male adventurers has carved a spot for itself in the local surf apparel industry.

Hostile Bid for Allergan Hits Additional Hurdles

HEALTHCARE: 2nd FTC request for info could greatly slow, even kill deal

The hostile takeover attempt for Irvine-based Allergan Inc. by Valeant Pharmaceuticals International Inc. is moving into deeper regulatory waters, something likely to add additional months to the battle and that could even scuttle it.

Social Services Lease Would Top Year’s List

REAL ESTATE: OC’s biggest public agency in talks to move to Orange

The Orange County Social Services Agency is expected to move its headquarters from Santa Ana to Orange in what would be OC’s largest new office lease of the year.

Q&A

“Affiliation” continues to be more than a buzzword in Orange County’s hospital world. The latest affiliation happened this month when St. Joseph Hoag Health and Children’s Hospital of Orange County said they were creating an accountable care organization. CHOC and St. Joseph Hoag Health are going to share in the financial and medical responsibilities of managing and providing care to patients. The institutions said the affiliation’s goals include improving quality, enhancing patients’ experience, and creating “efficiencies through collectively attending to patients’ needs and avoiding unnecessary treatments.”

HMOs’ Membership Up, PPOs’ Numbers Down 3%

Kaiser Leads HMOs List, Anthem OC’s Biggest PPO

Health maintenance organizations had a year of growth in Orange County.

Dental HMO, PPO Memberships Drop 1% to 2M-Plus

Delta Dental Plans Still At Top of List of 13 Plans

Managed dental care plans saw a slight drop in their Orange County membership during the past year.

Insurance Firm Grows With Healthcare Partnerships

Takes On UnitedHealthcare Plans, Networks for Growth

A business unit of Orange-based Word & Brown Cos. has teamed up with a health insurance behemoth as a way to fuel growth.

Health System Increases Oversight Due to Reform

Audit Unit; Punishment For Noncompliant at CalOptima

Orange-based CalOptima is intensifying its work with providers to tackle a tighter government regulatory landscape.