Monday Morning Quarterback
(Monday, February 17, 2025)
If a California wildfire is a city-ravaging monster, it is one whose habits are well known. The menace follows an annual pattern. The risk is low in the winter months, when most of the year’s precipitation falls. Then as summer approaches Southern California dries out, temperatures climb, and the incidence of fires ticks upward. The danger really takes off with the arrival of the Santa Ana winds in the fall. These arise sporadically when high pressure over the inland desert pushes masses of dry air westward toward the sea. As the wind funnels through the coastal mountains it becomes warmer and dryer as it descends, creating what UCLA climate scientist Daniel Swain calls an "atmospheric blow-dryer.”?Not only do the Santa Anas steal the last remnants of moisture from the landscape, they fan any existing flames like a bellows. They typically last for anywhere from a day to a week, though in rare cases they can stretch on for up to two weeks. Historically, the danger of wildfire has waned with the arrival of winter rains, but in recent years that pattern has changed. “On average, California’s rainy season is occurring about a month later than it did historically,” Swain says. And that increases both the length and the potential intensity of the fire season. By this time of year L.A. normally should have received 8-10 inches of rain, but it’s only gotten a fraction of that since last July (even with this week’s rain storm), making the period the second-driest in over a century of record-keeping. The trend isn’t limited to Southern California. Climate change has increased the number and severity of wildfires around the world, with higher global temperatures leading to drier weather in some regions. The Russian arctic, which hadn’t historically been prone to wildfire, has started to experience it on an epic scale, while southeastern Australia is burning with new intensity. Europe, too, has seen?a steady increase in wildfires. Last year’s wildfires in Canada choked the eastern U.S. in smoke and painted the daytime red. In other real estate news, let’s explore the world…
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Soboroff Shares His Rebuilding Plans. As the newly appointed “Chief Recovery Officer” for the city of Los Angeles, real estate developer and civic leader?Steve Soboroff?is getting to work on rebuilding all that’s been lost from the fires. In overseeing the city’s recovery efforts at the hands of the devastating wildfires which burned tens of thousands of acres, Soboroff’s job is “to maximize resources and minimize time,” Mayor?Karen Bass?said at a press conference in the Pacific Palisades. Soboroff worked as a senior adviser to former Mayor Richard Riordan during the Northridge Earthquake and was also the former President of the Los Angeles Board of Police Commissioners. He was also responsible for the development of Playa Vista and the Park at Cross Creek in Malibu. His top priority is getting residents back in their homes and people back to work, Soboroff said. “I only have two clients,” Soboroff said at the press conference. “One is the people who live here … who lost their homes … and my other client is the people that work here.” “Every one of them has an individual path back, and there’s a lot of mental health issues that go on through that path back (and) there are financial issues and we want to help each one,” he added. The path to recovery will begin with Phase I, which involves the Environmental Protection Agency going to affected areas and removing hazardous materials such as lithium batteries, asbestos, paints, cleaners and pesticides. Phase II is debris removal and lot clearance. Soboroff said these phases can be on individual timelines, so someone may be in phase two sooner than someone else. “(For) some, (Phase I) is going to be done in a week and some of it may be done in up to three months,” he said.?To access free debris removal services for Phase II, residents should fill out a “Right of Entry Form” with the city of Los Angeles. Residents can also opt out of this service and choose to hire their own approved contractor for the work.
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Convicted Arsonist Busted Driving Fake Firetruck Into Palisades Fire. In 2017, this very same guy, Oregonian Dustin Nehl was sentenced to five years in prison?for what authorities in the city of Woodburn called a five-year arson spree that targeted a multitude of locations in that community.?Not to be outdone, last month, the ex-con and his wife, 44-year-old Jennifer Nehl were arrested on suspicion of impersonating firefighters and unauthorized entry of an evacuation zone after they drove a fake fire truck through a Palisades fire checkpoint, Los Angeles County Sheriff’s Department officials report.?The couple was spotted during the fires by an LAPD patrol unit, which contacted the LASD after they observed a fire truck that did not appear to be legitimate. "Deputies tracked the truck down on Sunday as they attempted to enter an evacuation zone." Both were wearing turnout gear and told authorities that they were volunteer firefighters for a nonexistent department: “Roaring River Fire Department” in Oregon, which was written across the front of a decommissioned firetruck once owned by the state of California.?In addition, the Nehls were wearing CAL-Fire t-shirts under their turnout gear, helmets, and carrying radios tuned into official channels. Nehl's five-year prison sentence was followed by 3 years’ post-prison supervision. It is unclear if he remains on probation in Oregon. Of course, the Nehls, who a fire official confirmed acquired a free hotel room with their ruse, are not the first people to be arrested for impersonating firefighters. At a press briefing last week, Los Angeles Police Chief Jim McDonnell said officers apprehended a looter in Malibu dressed as a firefighter.?
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Mysterious Land Purchase Within Joshua Tree National Park Worries Locals. The vistas are sprawling and unspoiled. Mountains rim blue-sky horizons, and scrub brush scattered across the rocky desert hills sustain mule deer, bighorn sheep and other wildlife. Known as “Whispering Pines,” this roughly 2-square-mile wildland within the boundaries of Joshua Tree National Park was once dotted with rustic vacation cabins. Most are gone now, wiped away by wildfire, floodwaters or simply the passage of time, making it a quiet refuge within the park. Now, however, a spate of construction activity and lot sales with links to a Connecticut-based real estate investment firm called “Darkhorse Tactical Investments” (“Darkhorse”) has alarmed nearby residents and environmentalists, who worry about how potential development might affect the fragile desert environment. A New York Times review of online and public records found that people and entities linked to Darkhorse have acquired more than 100 acres in and around Whispering Pines since 2021. Several of those involved in the land purchases have ties to the hotel and hospitality industry, the records show. All of them either declined to talk to The Times or didn’t respond to requests for comment. Hotel industry consultants say Whispering Pines’ location within park boundaries makes it an enviable spot for lodging. Annual visits to Joshua Tree reached nearly 3.3 million in 2023, more than double what it was a decade before, making it among the 10 most popular?national parks in the U.S. What’s more, Joshua Tree has no lodging besides campgrounds within its borders, unlike other popular national parks including Yosemite, Yellowstone and the Grand Canyon. But the prospect of any development in the area has raised fears of environmental degradation and water table depletion in one of the most ecologically sensitive corners of the park. At an elevation of roughly 4,600 feet, the Whispering Pines area is considered a climate refuge where certain plants and animals may be able to survive even as the surrounding environs become too hot and dry.
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Toyota’s Futuristic Woven City Is Ready For Its First Residents. Toyota’s futuristic “Woven City,” which is being built on the site of a former car factory in Japan, is almost ready for its first residents. At CES this week, the Japanese auto giant updated the public on the progress of the $10 billion project, which is said to be a “living laboratory” where people can live while also testing out futuristic projects. Toyota said it completed “phase 1” of the construction, with the official launch planned for 2025. “Woven City is more than just a place to live, work, and play,” Toyota Chairman Akio Toyoda said during today’s press conference at CES. “Woven City is a place where people can invent and develop all kinds of new products and ideas.?It’s a living laboratory where the residents are willing participants,?giving inventors the opportunity to freely test their ideas in a secure, real-life setting.” Toyota first announced Woven City at CES in 2021. At the time, the company said it would be a “prototype city of the future” where it can test autonomous vehicles, innovative street design, smart home technology, robotics, and new mobility products on a population of real people who would live there full time. Now move-in day is quickly approaching. In fall 2025, Toyota said it will welcome the first 100 residents to Woven City, all of whom will be employees of Toyota or its subsidiary, Woven by Toyota. The community will gradually expand to include “external inventors and their families” who will be invited to relocate to the new city. In total, the first phase of the city will eventually house 360 residents, Toyota says. Toyota dubs these first residents “Weavers,” adding that they are people who “share a passion for the ‘expansion of mobility’ and a commitment to building a more flourishing society. Through their participation in co-creation activities, Weavers will contribute to realizing the full potential of Woven City.”
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World's Highest Penthouse Can Be Yours For A Mere $51 Million. What's hailed as the world's highest penthouse has hit the market for a cool $51 million – and for that price you'll even have to provide your own furniture. Located in the world's tallest building, the Burj Khalifa, the residence comes with a ridiculous amount of floor space and of course, unmatched views of the area. The condo is being sold by local firm Invest Dubai Real Estate, which asserts that it's the world's highest penthouse suite and says it's situated at "over 1,300 ft" above the city streets. This is indeed extremely high up, nose-bleed territory. Accessed from the Burj Khalifa's only private elevator, the residence is spread over two stories and has a floorspace of roughly 226,000 sq ft, so it's massive, making it the largest residence in Downtown Dubai. It comes with floor-to-ceiling windows, a private swimming pool, entertainment areas, multiple bedrooms, and amenities including an exclusive lounge, fitness center, Japanese gardens, and dedicated 24-hour concierge service. The total lack of furniture is hailed as an opportunity to make it your own. Rather than heading down to IKEA like the rest of us, the owner will probably want a custom architect-designed interior that makes the most of its expansive layout. Dubai has announced a huge amount of major architecture projects in recent months, from the world’s tallest residential tower?to plans to transform the scorching metropolis into a walkable city. In fact, from the vantage point that this apartment, the owner will have a unique view of the changing landscape below. But if you’re interested, don’t contact me – call Invest Dubai Real Estate.?
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There Is An Asteroid Barreling Towards Earth. I have some bad news, fellow Earthlings: Don’t look now, but a newly discovered asteroid, called “2024 YR4,” is heading for our planet. Fortunately, the risk is neither great nor urgent, but very real. The chance of impact, which would happen on Dec. 22, 2032, is estimated?at only about 2.3% (but increasing). The worst-case scenario, though not world-ending, is still horrific. The asteroid is estimated to be between 130 and 330 feet long, and its impact could easily devastate a major city or, through a tsunami, coastline. For purposes of contrast, the space object that hit Siberia in 1908?is estimated to have been 130 feet long, and it decimated almost 800 square miles of forest. Worse, an asteroid strike today could cause a chemical, gas or nuclear accident. We will know more when the asteroid does another pass around the earth in late 2028. Then again the risk could go away altogether. But if it remains, the asteroid could cause personal stress — and if it grows or even becomes likely, global financial panic. There is also a collateral risk related to dis- and misinformation. There has never been such an event in the age of social media, there could be all sorts of “fake news” about 2024 YR4. A possibility of 2.3% is not as low as it might sound at first. The chance of drawing three of a kind in a standard five-card poker game, for example, is about 2.9%. Three of a kind is hardly an unprecedented event. Fortunately, the US does more to track and monitor asteroids than in the past, as illustrated by the information we already have about 2024 YR4. But there needs to be a more systematic initiative to develop asteroid defenses. When does it make sense to launch a nuclear weapon at an asteroid, or try to break up an asteroid into a smaller number of little pieces? Or is that unwise, because the fragments could be more deadly? At any rate, 2024 YR4 is a wake-up call, even though it is likely to give us Earthlings a wide berth. The current push for space exploration has some very real upsides for humanity. But we need to make sure it can also protect us against crashing asteroids, one of the most extreme downsides imaginable.
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Planters Is Looking For 'Peanutters' To Drive The NUTmobile. Have you ever dreamed of driving a giant peanut? Well, Planters might have just the nutty job for you.?Hormel Foods, the makers of Planters, is hiring three full-time crew members to travel across the U.S. in a 26-foot-long peanut-shaped vehicle: the NUTmobile?chosen candidates (referred to as "Peanutters") will represent the peanut brand in media interviews and community events across the country.?“We’re thrilled to announce that applications are now open for our fourth class of Peanutters,” Planters marketing director Patrick Horbas said in a statement. “As energetic ambassadors of the brand, our Peanutters travel the country, spreading smiles and joy to millions of people each year.” Here are the nuts and bolts: Applicants must be college graduates with a bachelor's degree — preferably in public relations, communications or similar media-related fields. Additionally, Planters is looking for those with "an appetite for adventure and proficiency in nut-related puns." Peanutters will be responsible for "planning and executing over 200 events annually." Other responsibilities for the paid positions include creating content for the NUTmobile's social media channels and frequent consumer interaction.?The starting salary for "Peanutters" is $45,000 annually, plus all the peanuts you can eat. Hormel Foods touts a "strong benefits package including medical, dental, vision, prescription drug coverage, 401(k)and match, Wellness Program, life insurance, tuition reimbursement, paid time off, and more." The Nutmobile,?Mr. Planters' official ride, has been around since 1935.?Over the years, it has evolved from a singular peanut car to a fleet of vehicles, though there is currently only one active NUTmobile on U.S. highways.
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Out-Of-State Investing Summit. Why buy one house for $800,000 in Los Angeles (with negative cash flow) when you can buy eight houses (or more) in another state for the same amount of money, and enjoy positive cash flow without any of the landlord headaches? If you appreciate the significance of this question, you must attend our 6th Annual “Out-of-State Investing Summit.” Each year, the Los Angeles County Real Estate Investors Association evaluates the strongest cities in the United States for dynamic job and population growth, along with affordability, landlord-friendly laws, renter desirability, low prices, and positive cash flow. We then identified the most respected turnkey operations in each of these cities. Companies that buy distressed properties at substantial discounts, renovates the properties efficiently, makes them rent-ready, finds qualified tenants, sells them to investors like you, and then manages the properties for you professionally. The marvelous thing about turnkey companies is that they do all the work and then send you a check every month. This is why the theme of this year’s Summit is “Be an Investor – Not a Landlord.” Saturday, February 22, 2025, 9:00 am to 2:00 pm. Iman Cultural Center, 3376 Motor Avenue, Culver City, CA. $99.00 per person. Don’t miss it.?This is the ultimate cashflow strategy. RSVP: www.LARealEstateInvestors.com.
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Vendors Expo Returns!?Our world-famous "Vendors Expo"?returns in 2025, on Thursday night,?March 13, 2025. The Vendor Expo opens starting at 6:30 pm. We'll have 30+ of the finest vendors featuring real estate products and services you will want to utilize as a successful investor. Our Vendor Expo will be held at the Iman Cultural Center, 3376 Motor Avenue (between National and Palms), Culver City CA.?FREE Admission.?Please RSVP at our website, LARealEstateInvestors.com.
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March LAC-REIA Meeting. Our special guest for March is the "Maverick Investor" Paul Finck. Maverick investing means stepping outside your comfort zone, breaking the traditional rules of investing, and master the art of contrarian real estate investing. Paul will be showing us how to challenge the status quo. Thursday night, March 13, 2025, 6:30 to 9:30 pm, Iman Cultural Center, 3376 Motor Avenue, Culver City, CA 90034. Free admission. RSVP: www.LARealEstateInvestors.com.
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This Week. Investors will continue to look for additional guidance from Fed officials on their plans regarding future monetary policy and non-existent rate cuts. The detailed minutes from the January 29 Fed meeting will be released on Wednesday. For economic reports, it will be a light week highlighted by the housing sector data. Housing Starts will be released on Wednesday and Existing Home Sales on Friday. Markets will be closed on Monday for Presidents Day.
Weekly Changes:
10-Year Treasuries:?????????????Flat????000 bps
Dow Jones Average:???????????Rose??400 points
NASDAQ:????????????????????????????Rose??400 points
Calendar:
Wednesday (2/19):??????????????Housing Starts
Wednesday (2/19):??????????????Fed Minutes
Friday (2/21):???????????????????????Existing Sales
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For further information, comments, and questions:
Lloyd Segal
President
Los Angeles County Real Estate Investors Association, LLC
310-792-6404
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