Business
L.A. County to buy downtown skyscraper for new HQ despite a “hell no” from Hahn
The Los Angeles County Board of Supervisors on Wednesday approved the county’s purchase of the Gas Company Tower, one of downtown L.A.’s most prominent skyscrapers, paving the way for the transfer of thousands of workers and public services out of the city’s civic center.
With a 4-1 vote, the supervisors gave county officials the final green light to move ahead with buying the tower for $200 million.
The approval came over vehement objections from Supervisor Janice Hahn, who warned that the purchase would sound the death knell for downtown’s civic heart and shunt the county’s workforce to a “souless” office tower on Bunker Hill.
“None of you here are going to convince me that this is a good idea,” said Hahn, before casting her vote against the purchase with an emphatic “hell no.”
County employees are currently based inside the Kenneth Hahn Hall of Administration, a 1960 building named after Hahn’s father, a longtime county supervisor.
The building is one of several county-owned properties considered vulnerable to collapse in a major earthquake. Officials have estimated that it will cost hundreds of millions to upgrade the buildings, making a new, presumably safer skyscraper an appealing alternative to some on the board.
“If we know this building is not seismically safe, then we have an obligation and a responsibility to take action,” Supervisor Holly Mitchell said from the room inside Hahn Hall where the board holds its weekly meetings.
County Chief Executive Fesia Davenport, whose office spearheaded the sale, promised the purchase “will save the county hundreds of millions of dollars” compared with the cost of upgrading the Hall of Administration and other county buildings.
No supervisors have toured the building themselves, according to a county spokesperson, though several of their staff have visited.
The 52-story tower at 555 W. 5th St. was widely considered one of the city’s most prestigious office buildings when it was completed in 1991. It has nearly 1.5 million square feet of space on a 1.4-acre site at the base of Bunker Hill.
The price is a deep discount from the building’s appraised value of $632 million in 2020, underscoring how much downtown office values have fallen in recent years.
At $200 million, the county would get the Gas Company Tower for about $137 a square foot, still a bargain by historical standards. The county also agreed to pay as much as an additional $5 million in closing costs on the transaction.
“This opportunity will not last forever,” Davenport warned, adding that the county could finance the purchase, in part, from money set aside for capital projects.
Hahn said the transaction was akin to “robbing Peter to pay Paul.”
“The money being used to pay for this purchase is being stolen from the funds that were meant to keep this building alive,” she said from Hahn Hall.
Richard Keating, the architect who designed the Gas Company Tower to appeal to corporate America, said it makes sense for a public entity to take ownership now.
“We’re looking at a decline in need for standard office use, meaning lawyers, architects and accountants are doing things differently” since the pandemic, Keating said. “City and county employees are still hard at work in their office spaces but they’re tired, old, sometimes decrepit and oftentimes no longer up to code in terms of earthquake” safety requirements.
“It’s a perfect time to take advantage of some of these more or less empty office buildings.”
Moving hundreds of county workers into the Gas Company Tower also stands to lift shops, restaurants and other businesses in the nearby blocks by Pershing Square, he said. “I think it’s a good move all the way around.”
In recent years, the downtown office market has turned against landlords as many tenants reduced their office footprint in response to the COVID-19 pandemic, when it became more common for employees to work remotely.
Last year, the owner of the Gas Company Tower, an affiliate of Brookfield Asset Management, defaulted on its debt and the property was put in receivership, in which a court-appointed representative took custody of the building to help creditors recover funds they lent to Brookfield. The building has about $465 million in outstanding loans.
Other major tenants in the Gas Company Tower include law firm Latham & Watkins and accounting firm Deloitte. The county will assume the existing tenant leases as landlord.
When the Gas Company Tower is formally owned by the county it will be removed from the tax rolls. The building’s property tax bill last year was more than $7.1 million, according to real estate data provider CoStar.
Tenants would, however, be required to contribute to the tax rolls by an unspecified amount through a “possessory interest tax” that can be levied on private companies leasing public buildings. Tenants in privately owned office buildings also commonly pay a share of the landlord’s property taxes.
The building is in good condition with “a remaining useful life” of no less than 35 years, according to a recent property condition report prepared for the current owner that was obtained by The Times.
The report also said the tower and the World Trade Center garage at 333 S. Flower St. included in the deal require about $1.3 million to address urgently needed repairs and deferred maintenance. Additional long-term costs to maintain and modernize the properties were estimated at about $48.7 million over 12 years. Projected costs include roof repairs, refurbishing air conditioning systems and updating the elevators.
The county currently occupies about 16.5 million square feet of office space for 38 departments, which comprises 6.9 million square feet of leased office space and 9.6 million square feet of owned office space, Davenport said in a memo to the board recommending the purchase of the Gas Company Tower.
The county spends about $195 million per year on the leased office space and the property it owns “is in poor condition and old,” Davenport said. Nearly half of it is more than 50 years old.
By moving staff from both leased office space and aging buildings in poor condition, the county avoids paying rent and the “significant” costs of seismic retrofits and other needed renovations to old buildings such as aging air conditioning, plumbing and electrical systems, the chief executive’s memo said. Funds earmarked for seismic retrofits and other renovations of old buildings will be included in the payment for the Gas Company Tower.
The county inspected the building and will buy it “as-is,” Davenport said. The Department of Public Works reviewed a seismic report for the tower and agreed with it findings. A county spokesperson said the findings will remain confidential until the deal closes.
If the county elects to complete a seismic retrofit and other improvements to the Gas Company Tower, the county can realize a future return on its investment by selling the building when the market recovers, Davenport said.
Southern California Gas Co. said in September that it is planning to move from its longtime headquarters in its namesake tower, where it has been a primary tenant since the building was completed, to another skyscraper a block north at 350 S. Grand Ave.
The utility signed a long-term lease for nearly 200,000 square feet on eight floors in the Grand Avenue building on Bunker Hill often known as Two California Plaza, its new landlord said, and is expected to move by spring 2026 after building out the new offices. The Gas Company will also have an office on the ground floor to serve customers.
The luxury shopping center in Pacific Palisades will reopen next month after more than $100 million in renovations forced by the January 2025 wildfire that devastated the Los Angeles neighborhood.
Palisades Village will reopen Aug. 15, owner Rick Caruso announced Wednesday. The outdoor center survived the blaze that destroyed homes and other businesses but needed refurbishment to eliminate contaminants that the fire could have spread.
Crews are putting finishing touches on mall buildings after tearing them down to the studs, treating the wood and rebuilding the walls, Caruso said.
“Everybody’s working, and stores are moving their products in,” he said. “It’s a really cool feeling that people have really locked arms and are working together.”
An electrician installs lighting for a restaurant at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
Pacific Palisades resident Allison Polhill, who is rebuilding the home of 30 years that her family lost in the blaze, said she is “thrilled” at the prospect of returning to the mall she used to frequent. Its comeback is a boost for the community, she said.
“Every single step that we make to reopen our commercial corridors is going to bring more people back into the Palisades,” said Polhill, who expects to move back into her home at the end of August.
A total of 6,822 structures were destroyed in the Palisades fire, including more than 5,500 residences and 100 commercial businesses, according to the California Department of Forestry and Fire Protection.
Caruso previously attributed the mall’s survival to the hard work of private firefighters and the fire-resistant materials used in the mall’s construction.
The $200-million shopping and dining center opened in 2018 with a movie theater and a roster of upmarket tenants, including Erewhon, which may be the only grocer in the heart of the fire-ravaged neighborhood when it opens.
Caruso’s company was able to fill the mall with tenants despite the long shutdown.
Palisades Village is 99% leased, with the majority of tenants returning, said Jackie Levy, chief financial and revenue officer. Nearly one-third of the shops and restaurants are new to the property.
A firefighter carries a hose back to his rig while walking through a destroyed home from the Palisades fire in Pacific Palisades on Jan. 7, 2025.
(Genaro Molina / Los Angeles Times)
Last year, Pacific Palisades-based fashion designer Elyse Walker said she would reopen her eponymous store in Palisades Village after losing her 25-year flagship location on Antioch Street to the inferno.
Other neighborhood shops destroyed in the fire that are reopening at the mall include K Bakery and Loomey’s Toys, which caters to children up to age 12 and used to be across the street from Palisades Elementary Charter School.
“It’s been a journey and I’m excited because I wasn’t sure that there was going to be a place to come back to,” said toy store owner Amanda Rastegar. “Hopefully we can bring some of that magic back.”
Rastegar’s home in the Palisades survived but was damaged by the fire. The family returned about eight weeks ago. Her last memory of the fire was a burning supermarket.
“I just couldn’t wrap my brain around what was happening,” she said. “By the time I left, Gelson’s was on fire.”
Among the returning tenants is Angelini Ristorante & Bar. Well-known Los Angeles chef Gino Angelini said he will be in the kitchen next month for a return of the Italian restaurant.
“We won’t do a big celebrity open,” he said. “We want to have a very soft opening and see our customers come back.”
Construction takes place at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
An elaborate celebration would not feel “correct for me,” Angelini said, because the devastation has been “very sad” for so many.
Other new tenants include local chef Nancy Silverton, who has agreed to move in with a new Italian steakhouse called Spacca Tutto. Women’s activewear retailer LESET will open its first West Coast location.
Caruso said he is optimistic that customers will return to the center, even though many Pacific Palisades residents are still dispersed. One tracking system estimated that about 30% of the Village’s customer base was impacted by the fire, he said.
“That means 70% did not get impacted, so there’s a lot of customers still left out there,” Caruso said. Historically, the center drew customers from as far away as Beverly Hills and Calabasas, as well as Malibu, Brentwood and Santa Monica.
He also hopes many will be inspired to visit the revived mall.
“I believe in the goodness of people and I believe that people are going to want to support the Palisades,” he said. “They’re going to want to be there and support the businesses that have had the courage and the heart to reopen.”
Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.
The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.
The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.
Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.
Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.
“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.
According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.
The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.
Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.
The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.
“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”
The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.
The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.
Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
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