Edited by Jodi Summers
What’s old is new again. The Expo line traces a historic route through Los Angeles. Although its tracks, signals, and power lines are all new, much of the light rail line’s right-of-way dates to 1875, when the first rail link between downtown L.A. and the Westside opened and gave birth to the city of Santa Monica.1875 drawing of Santa Monica. The Los Angeles and Independence Railroad’s western terminus was a wharf, which extended into the Pacific Ocean at the mouth of the Santa Monica Arroyo.
In 1874, silver baron John P. Jones partnered with sheep rancher Robert S. Baker to develop a seaside resort town on Rancho San Vicente y Santa Monica. Perched atop picturesque bluffs and cooled by an ocean breeze, the town was favorably located — except that it was a long stagecoach journey from the region’s population center in Los Angeles. To make the town marketable, Jones – Santa Monica’s first mayor – built a 16-mile rail line between the Santa Monica Bay waterfront and downtown Los Angeles. He named it the Los Angeles and Independence Railroad. It was only the second railroad built in Los Angeles; the first was the Los Angeles and San Pedro, which opened in 1869.In the 1890s, the Southern Pacific built a wharf into the Pacific Ocean near Santa Monica and attempted to build a commercial shipping harbor there. Freight traffic along the Los Angeles and Independence skyrocketed until the federal government chose San Pedro as the site of the region’s harbor in 1897.
The Expo Line is a light-rail line running between Downtown Los Angeles and Culver City, with service to Santa Monica (Phase 2) planned to begin in 2015. The line is named “Expo” as it follows Exposition Boulevard for most of its route.
The line is being built in two phases; the first phase comprises the 8.6-mile section between Downtown Los Angeles and Culver City began in early 2006 and most stations opened to the public on April 28, 2012. Design and construction on the 6.6-mile portion between Culver City and Santa Monica started in September 2011, with the opening of the City’s three stations anticipated in 2015.Southern Pacific excursion trains, shown here in a circa 1900 photo, regularly brought beachgoers and to Santa Monica.
The Expo LRT to Santa Monica was incorporated in the City’s Land Use and Circulation Element (LUCE), and are part of an integrated citywide strategy to reduce greenhouse gases and achieve no net new evening peak trips. The Expo Line currently operates from approximately 5 a.m. to 12:30 a.m. on weekdays and until 2 a.m. on Fridays and Saturdays. As of June 2013, trains run approximately every 12 minutes during the daytime, every 10 minutes during the evening, and every 20 minutes after midnight.Though Jones planned to extend the line to Inyo County, the Los Angeles and Independence was never extended past its downtown L.A. terminal at San Pedro and Fifth.
In the 1890s, the Southern Pacific built a wharf into the Pacific Ocean near Santa Monica and attempted to build a commercial shipping harbor there. Freight traffic along the Los Angeles and Independence skyrocketed until the federal government chose San Pedro as the site of the region’s harbor in 1897.Detail of a circa 1912 map of the Pacific Electric interurban rail system. The Santa Monica Air Line is highlighted in aqua.
At the mouth of the Santa Monica Arroyo, where Interstate 10 meets with Pacific Coast Highway today, a wharf — forerunner to today’s Santa Monica Municipal Pier — extended into the ocean. There, ships could dock and unload freight onto rail cars. Heading east, the railroad passed through the future communities of Palms and Culver City before crossing the marshy cienegas of the Ballona Creek plain and then turning north to its terminal at San Pedro and Fifth streets in downtown Los Angeles.A Santa Monica Air Line car travels eastbound on Exposition Boulevard in front of USC’s Mudd Hall.
The Los Angeles and Independence helped make Santa Monica palatable to real estate speculators and prospective residents, but Jones, who was politically well-connected as a U.S. senator from Nevada, had grander plans for the railroad. Intending to connect the line with the town of Independence in the Owens Valley, and from there to a silver mine he owned in the Panamint Mountains, Jones optimistically included “Independence” in his railroad’s name. Later, Jones hoped, he could extend the line still further east to Salt Lake City and create a transcontinental line to rival the Southern Pacific.A Santa Monica Air Line car travels west through Culver City at Venice and Robertson.
But luck did not favor the railroad — or Jones — in its early years. Workers had surveyed the entire route and begun grading a path through the Cajon Pass when Jones’ silver mine unexpectedly played out in 1876.A Red Car traveling on the Santa Monica Air Line crosses over Motor Avenue.
Meanwhile, excursion trains brought beach-going day-trippers, but Santa Monica’s population stagnated in the midst of an economic depression, and the town struggled to compete with San Pedro as a shipping center. In dire financial straits, Jones reluctantly sold the Los Angeles and Independence to Collis P. Huntington’s Southern Pacific Railroad on July 1, 1877 for $195,000. Decades later, Jones wrote to his wife: “If you only knew how my heart ached when I was obliged by stress of circumstance to part with the RR, which together with matters connected with it was the pet project of my life.”A barn served as the Los Angeles and Independence’s Santa Monica station in the railroad’s early years.
**Named after the Ivy Park housing development, the Ivy station stop along the Santa Monica Air Line served present-day Culver City.
CALIFORNIA’S REAL ESTATE BILLIONAIRES – EDWARD ROSKI, JR. BUILT HIS FORTUNE IN INDUSTRIAL REAL ESTATEDecember 2, 2014 on 9:24 pm | In Bravo, Charts + Statistics, Fascinating Information, Funny...Money, Uncategorized | No Comments
#445 Edward Roski, Jr.
Net Worth: $3.8 Billion
President and Chairman, Majestic Realty, Co.
Source Of Wealth: real estate
Residence: Los Angeles, CA
Citizenship: United States
Marital Status: Married
Education: Bachelor of Arts / Science, University of Southern California
Edward Roski, Jr. on Forbes Lists:
- #466 Billionaires
- #159 in United States
- #363 in 2013
- #143 Forbes 400
You may think of Edward Roski Jr. was pivotal in the construction of the Staples Center in downtown Los Angeles, and one of the key figures attempting to bring football back to L.A., but he is so much more than that. Roski oversees Majestic Realty, the commercial and industrial real estate company his father founded in 1948. Majestic Realty owns more than 70 million square feet of real estate, most of which is industrial buildings in Southern California, but the complete portfolio spans from Los Angeles to Atlanta.
Majestic is completely family-owned. Roski helped build Staples Center in 1998 with local mogul Phil Anschutz.
A University of Southern California alumnus, he and his wife pledged $23 million to his alma mater’s fine arts school in 2006 and he currently serves as chairman of the USC board of trustees. Roski is an avid cyclist and mountain climber and has climbed to base camp at Mt. Everest, K2 and Mt. Kilimanjaro.
And now for something completely different > Industrial Art. Specifically, the Detroit Industry Murals by Mexican muralist Diego Rivera (1886–1957). A series of 27 fresco panels, covering 447 square yards, the Detroit Industry fresco cycle was conceived as a tribute to the city’s manufacturing base and labor force of the 1930s. It was completed with the support of Henry Ford in eleven months, from April 1932 to March 1933. It is considered the finest example of Mexican mural art in the United States, and the artist thought it the best work of his career.
In this epic industrial mural which surrounds the Rivera Court at the Detroit Institute of Arts, Rivera captures men of differing skills and ethnicity all toiling together in a cavernous automobile factory to achieve the same end result: putting America on wheels and down the road. It’s a snapshot of a day in the life of 1930′s industrial America.
Rivera was a controversial Mexican artist — both praised for his rich, storytelling murals and frescoes, and criticized for his left-leaning politics. He often depicted the heroism and struggle of the worker, and preferred public murals as his medium for their ability to bring art to the masses.
The two main panels on the North and South walls depict laborers working at Ford Motor Company’s River Rouge Plant. Other panels depict advances made in various scientific fields, such as medicine and new technology. The series of murals, taken as a whole, represents the idea that all actions and ideas are one.
Rivera believed that art belonged on public walls rather than in private galleries. He found his medium in the fresco, where paint is applied to wet plaster. Its vast size allowed him to explore grand and complex themes, which would be accessible to a large audience.
In the mural, Rivera depicts the workers as in harmony with their machines and highly productive. This view reflects both Karl Marx’s begrudging admiration for the high productivity of capitalism and the wish of Edsel Ford, who funded the project, that the Ford motor plant be depicted favorably. Enjoy.
SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT – NOVEMBER 2014 >INDUSTRIAL REAL ESTATE NEEDS TO GO THE LAST MILE FOR THE HOLIDAYSNovember 1, 2014 on 12:29 am | In Charts + Statistics, Economy, Fascinating Information, Problem Solving, Uncategorized, world | 3 Comments
“I consider the major challenge for the industrial sector to be what’s known in the industry as ‘the last mile,’” astutely observes Bill Waxman, executive vice president of CBRE’s Global Port Logistics Group. Recently, he sat down for a series of interviews with GlobeSt.com to talk about the changes in the industrial real estate market. Here are some highlights…
How is the industrial real estate sector changing?
Waxman: I consider the major challenge for the industrial sector to be what’s known in the industry as ‘the last mile.’ Last Christmas, UPS and FedEx were overwhelmed by the huge demand from companies like Amazon and Target and, as a result, weren’t able to deliver packages on time.
Consumers, however, are demanding quick and reliable service. Think about when you go the grocery store and you breeze through the aisles and fill your cart quickly but get to the checkout and find only two cashiers and very long lines.
That’s the comparison for the issue that logistics and delivery services today are faced with. If consumers get in that line and it’s a negative experience, they either won’t come back or will purchase less goods the next time around. However, ‘the last mile’ issue is being addressed and many companies, including our clients, are working hard to improve the process.
How do you deal with the unknown?
Waxman: It’s not so much an issue for the investors and owners as it is for the occupiers. However, developers and owners have done a good job of taking older buildings and converting them to meet the standards needed to be a key player in the e-commerce world.
Similarly, new buildings that are being constructed are thought of in terms of e-commerce capabilities. In this day and age, development is not just about bricks and mortar, but also about how the building and layout will “perform” for different types of users.
Developers and owners are doing a great job of thinking from the perspective of the occupiers and really taking into account the end use. Instead of just acting as landlords, many owners are serving as partners not just landlords to their tenants, which is an integral part of real estate health.
Manufacturing? Distribution? What will be the sectors to watch?
Waxman: The industry should definitely keep an eye on the e-commerce sector. In the larger markets, including New York, Los Angeles, Chicago, and Seattle, we’re seeing quick growth in same-day and next-day delivery.
Companies like Fresh Direct, Blue Apron, Peapod, and even Amazon that deliver groceries and prepared food to the home are major contributors to this trend in the e-commerce space. Technology supply, pet supply, home goods, and hardware companies are also keeping up with the trend in these larger cities.
The key areas to watch are the regions where this trend is still up and coming. In the near-term, we can expect to see an influx of same-day and next-day deliveries in the Houston, Dallas, Phoenix, and Denver markets. After that, we’ll likely see further expansion into areas such as Oklahoma City, Kansas City, Cincinnati, and Memphis.
For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – email@example.com or 310.392.1211, and let us move forward together.
Man may now be aware of global warming, but we’ve been melting ice caps for more than 150 years. A NASA-led team of scientists has uncovered strong evidence that soot from a rapidly industrializing Europe caused the abrupt retreat of mountain glaciers in the European Alps that began in the 1860s, a period often thought of as the end of the Little Ice Age.
The research, published September 2013 in the Proceedings of the National Academy of Sciences, reveals that in the decades following the 1850s, Europe underwent an economic and atmospheric transformation spurred by industrialization. The use of coal to heat homes and power transportation and industry in Western Europe began in earnest, spewing huge quantities of black carbon and other dark particles into the atmosphere.
This NASA photo from the summer of 2012 looking south into the Bernese Alps shows how air pollution in the Alps tends to be confined to lower altitudes, with the deposits of soot and dust on the lower slopes. At center left in the picture, a glacier can be seen extending from a high-altitude snow field, above the pollution layer, down into the valley where its lower reach is bathed in pollutants.
Scientists have concluded that black carbon is the strongest sunlight-absorbing atmospheric particle. When these particles settle on the snow blanketing glaciers, they darken the snow surface, speeding its melting and exposing the underlying glacier ice to sunlight and warmer spring and summer air earlier in the year. This diminishing of the snow cover earlier in each year causes the glacier ice to melt faster and retreat.
The Little Ice Age, loosely defined as a cooler period between the 14th and 19th centuries, was marked by an expansion of mountain glaciers and a drop in temperatures in Europe of nearly 1.8 degrees Fahrenheit (1 degree Celsius). The curious thing is, that between 1860 and 1930 temperatures continued to drop, yet large valley glaciers in the Alps abruptly retreated by an average of nearly 0.6 mile (1 kilometer). Glacier records note this rate of retreat had not been seen in the previous few hundred years. Glaciologists and climatologists have struggled to reconcile this apparent conflict between climate and glacier records…until now.
“Something was missing from the equation,” said Thomas Painter, a snow and ice scientist at NASA’s Jet Propulsion Laboratory in Pasadena, Calif., who led the study. “Before now, most glaciologists believed the end of the Little Ice Age came in the mid-1800s when these glaciers retreated, and that the retreat was due to a natural climatic shift, distinct from the carbon dioxide-induced warming that came later in the 20th century. This result suggests that human influence on glaciers extends back to well before the industrial temperature increases.”
To help the scientists understand what was driving the glacier retreat, Painter and his colleagues turned to history. The researchers studied data from ice cores drilled from high up on several European mountain glaciers to determine how much black carbon was in the atmosphere and snow when the Alps glaciers began to retreat. Using the levels of carbon particles trapped in the ice core layers, and taking into consideration modern observations of how pollutants are distributed in the Alps, they were able to estimate how much black carbon was deposited on glacial surfaces at lower elevations, where levels of black carbon tend to be highest.
The team then ran computer models of glacier behavior, starting with recorded weather conditions, then adding the impact of the lower-elevation pollution. When this impact was included, the simulated glacier mass loss and timing finally were consistent with the historic record of glacial retreat, despite the cooling temperatures at that time.
“We must now look more closely at other regions on Earth, such as the Himalaya, to study the present-day impacts of black carbon on glaciers in these regions,” said Georg Kaser, a study co-author from the University of Innsbruck, Austria, and lead author of the Working Group I Cryosphere chapter of the Intergovernmental Panel on Climate Change’s upcoming Fifth Assessment Report.
“This study uncovers likely human fingerprints on our changing environment,” said co-author Waleed Abdalati, director of the Cooperative Institute for Research and Environmental Sciences (CIRES) at the University of Colorado Boulder. “It’s a reminder that the actions we take have far-reaching impacts on the environment in which we live.”
Ask the industrial real estate experts, they’ll tell you, Los Angeles is a crucial market because of its ports…and the Los Angeles industrial market is highly dependent on the twin ports of Los Angeles and Long Beach.
Currently, the twin ports account for more than 40% of all the container traffic entering the nation. When the wider channel of the Panama Canal opens at the end of 2015, competition will be fierce with the East Coast Ports. In preparation, our ports have allocated approximately $5 billion on port infrastructure upgrades from 2012 to 2017.
In an effort to maintain dominance in the segment, the Port of Los Angeles and Burlington Northern Santa Fe Railway are pushing for a $500 million rail yard near the port that would prevent the need for trucks to carry containers nearly 25 miles inland to Commerce before being loaded on trains.
It is expected that the ability for post-Panamax ships to reach Houston, Miami and the New Orleans port complex will certainly put a dent into operations in Southern California.
Owners with port-related tenants may consider more secure assets. Although many tenants are likely to remain in the county, leases that expire in 2016 could potentially be renewed at lower rental rates as available space heightens competition.
It’s a good time for owner/users, as interest rates on SBA loans are still low.
Marcus and Millichap’s Industrial Market Outlook for the 2nd half of 2014 keeps Los Angeles as the top industrial real estate market for the following reasons:
■ Employers in the metro will expand payrolls by 2% in 2014 as 81,000 positions are added. (In 2013, 76,900 jobs were created in the market.)
■ The pace of development will slip to 1.7 million square feet in 2014, down from 2.9 million square feet last year.
■ Vacancy will dip to 4.7% in 2014.
■ As vacancy falls below the 5%, operators will elevate asking rents 5.1% to $7.27 per square foot by year-end 2014.
■ Redevelopment of the Warehouse District could gain steam for investors as the new rail yard near the ports moves forward. Owners in the area may consider divesting to developers seeking to reposition assets.
“The overall state of the industrial market has continually improved since last year, though national asking rents are about the same,” concludes Bill Waxman, executive vice president of CBRE’s Global Port Logistics Group. “There hasn’t been a spike improvement but, rather, slow and steady improvement in leasing demand, development, and investment.”
For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – firstname.lastname@example.org or 310.392.1211, and let us move forward together.
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