Expect to see more of a hands-on approach from the founders of Irvine-based land brokerage O’Donnell/Atkins, with homebuilding entering a “transitional” phase in Southern California.
Craig Atkins and Mackey O’Donnell said this month that they are resuming their roles of co-presidents, along with the chief executive position they also have shared.
Part of the change is out of necessity. Randy Teteak, the retired Marine and high-energy president of the company, recently left.
Teteak, who joined O’Donnell/Atkins in 2002, could end up working for a developer, according to Atkins.
As the housing market cools, the founders said a more active role in the company was needed. O’Donnell/Atkins brokers the sale of lots and other land from developers to homebuilders.
“A lot of people got into the business when the market was doing well,” Atkins said. “Now, it’s a matter of survival of the fittest. People want to go to the people with a proven track record.”
The company, which has brokered land for big local projects such as San Clemente’s Talega and Bosa Development Corp.’s condominium towers in Irvine, has been busy opening offices in Indian Wells and Northern California’s Roseville this year.
Now is the perfect time, Atkins said, to add to the company, which employs about 70 people.
“In the past 90 days, we’ve done more business than ever,” he said.
Business is brisk in San Diego, he said, even though the county has seen the biggest drop in housing and land prices in Southern California since its peak in June 2005.
There are a lot of motivated buyers and sellers, according to Atkins. Some lenders and developers are worried that the market will drop even further. They want to get out while they’re ahead, he said.
On the other side, a number of hedge funds and other investors are eager to get into the game, thinking some of the downturn is an overreaction.
What’s on tap for the Orange County market?
“That’s the $64,000 question right now, whether it will follow San Diego, or (right) itself,” Atkins said.
Rent Money
Orange County remains a great place to buy if you’re an apartment investor, according to Irvine-based brokerage Sperry Van Ness Commercial Real Estate Advisors.
The company cites OC as the second best market in the country for apartment investors, trailing only the Inland Empire, in a recent report on the national apartment market.
The high ranking largely is due to the fact that home prices will continue to keep ownership beyond the reach of most residents. Additionally, local employers are expected to add more than 22,000 jobs in the next year, a 1.5% increase in the county’s job base.
Apartment vacancies in OC are expected to fall 20 basis points in the next year to 3.2%, according to Sperry Van Ness. That’s the lowest rate of any of the top 10 markets on the company’s list.
Matthew Heslin, president of Heslin Holdings Inc., has bought himself a fixer-upper.
The Newport Beach-based acquisition and development company recently bought Pico Plaza, a 2.5-acre shopping center in Pico Rivera.
A $10 million redevelopment is planned.
It will take more than a new coat of paint to get the property up to snuff,the shopping center has been nearly vacant for the past decade.
The company describes the property, which holds a former Albertsons store, as “dilapidated.”
Construction for the project is set to start next month and should be done by May. Heslin already has signed on Starbucks and Rite Aid as tenants.
Heslin teamed with Retail Holdings LLC of San Diego for the deal. It’s the second big deal the two companies recently have partnered on.
Last month, the companies paid $68 million for several properties totaling 370,000 square feet. The acquisitions included six Albertsons buildings totaling $40 million.
Two OC-based Albertsons, on Katella Avenue in Stanton and Orangethorpe Avenue in Fullerton, were part of the August deal. Heslin since has leased those two to Kroger Co.’s Food 4 Less.
Olson Adds Exec
Irvine-based R.D. Olson Construction has a new president.
Joe Kilar, previously a regional general manager for Turner Construction Co. of New York, is taking over the position from R.D. Olson founder Robert Olsen, who is retaining his chief executive title. Olson had held both positions the past three years.
R.D. Olson, which employs 175 people, has a number of construction projects on the books, including housing, hotels, country clubs, restaurants and apartments.
Larger deals include the $38 million Renaissance ClubSport in Aliso Viejo, the $23 million Marriott Residence Inn in Burbank and the $12 million Residence Inn by Marriott in Oceanside.
Kilar, who lives in Ladera Ranch, will be in charge of corporate finance, marketing and customer relations for the company, which was founded in 1979.
