No, children do not personally inherit their parents’ debts. Outstanding debts are typically paid from the parent’s estate before any distributions are made. However, because debts must be settled first, a child’s inheritance may be reduced or even eliminated if the estate lacks sufficient assets after creditors are paid.

Elecor Properties, rebranded from Paramount Group, has secured four leases totaling 149,914 square feet at the two-building One Market Plaza in San Francisco since the beginning of the year. The leases follow Elecor’s announcement of a $250-million investment initiative across its portfolio in New York and San Francisco.

The transactions include a 42,445-square-foot lease by global law firm Davis Polk & Wardwell LLP, and a 33,566-square-foot lease by Willkie Farr & Gallagher LLP. Another global law firm expanded its existing footprint by 11,519 square feet to occupy a full floor and an AI company committed to 62,384 square feet spanning three floors.

“One Market Plaza combines an iconic waterfront location, exceptional connectivity and large-block availability, complemented by a transformative capital improvement program designed to deliver a truly elevated workplace experience,” said Peter Brindley, EVP and head of real estate at Elecor.

JLL’s Chris Roeder, Ted Davies, Tom Doupe, Wes Powell and Teva Myatt represented Elecor Properties in the transactions.

On the last day of your hopefully fun holiday weekend, we’ve got news on Los Angeles leases, special-serviced debt and real estate tussles. Enjoy.

Let’s start downtown, where Paul Hastings wants to sublet its space at City National Plaza, a twin-tower complex in the Financial District, according to a brochure viewed by The Real Deal. 

The very-prestigious law firm tapped CBRE to shop its around three and a half floors, or about 90,000 square feet, at 515 South Flower Street. The real estate is owned by a joint venture of CommonWealth Partners and California Public Employees’ Retirement System, the country’s largest public pension fund. There is $550 million commercial mortgage-backed securities debt on the complex, which has retail and parking, too.

Paul Hastings’ lease is up in August 2032, per the 2026 brochure, which does not include a price-tag. It only says the space is available immediately, with the price negotiable. The company earlier shrunk its space there, per a Fitch Ratings analysis, and now it only occupies about four percent of its peak footprint. Still, per the latest Morningstar Credit data, the complex is 81 percent occupied, better than a lot of downtown offices. 

The law firm has offices in Century City, too, at 1999 Avenue of the Stars. Could it be that Paul Hastings wants to totally ditch downtown and relocate all its people to Century City? Sounds logical, but the firm did not immediately respond to requests for comment. 

A Lot to consider

In other lease happenings, we’re hearing HBO moved out of the Lot at Formosa in West Hollywood earlier this year before its October expiration. The entertainment giant occupied seven soundstages at the CIM studio campus, where CBRE handles leasing. 

HBO now has space at its parent company’s lot in Burbank, and its departure from the Lot at Formosa probably didn’t hurt CIM much. But it likely added to the soundstage business woes while offices at the West Hollywood campus remain 95 percent occupied and busy. A fashion label, repped by Newmark’s Jay Luchs, recently inked a 45,000 square-foot lease for offices at 1041 North Formosa Avenue. And, a post production company just signed on for 5,000 square feet of space at the Lot, where Michael Hackman recently took the stage. 

Matchups

Now, staying in WeHo but moving onto the real estate matchups portion of our program, we’ve got a forfeit. Witkoff, founded by President Donald Trump’s special envoy to the Middle East, Steve Witkoff, handed over the keys to its Edition hotel to the Reuben brothers. 

UK billionaires Simon and David Reuben were mezzanine lenders who had attempted to foreclose on the Witkoff hotel years ago, but Witkoff held them off via a refinancing. That was until the duo purchased J.P. Morgan’s debt. Then, they took over the trendy Sunset Strip hotel at 9040 Sunset Boulevard via a deed in lieu of foreclosure dated April, which put Witkoff’s unpaid debt at $211 million.

Next up is CIM versus a private members club in a landlord-tenant dispute. CIM claims the Gathering Spot owes $828,000 in unpaid rent for a location in Los Angeles’ West Adams neighborhood. But the landlord wants that, plus future rent, attorneys’ fees, interest and more in anticipation of a trial — which comes out to almost $7 million. The CEO of the Black-owned club, Ryan Wilson, disputed CIM’s characterizations and claims. 

Transferred 

Lastly, to the world of special servicing. Another Jamison loan sponsored by the family patriarch, Dr. David Lee, moved to special servicing, per Morningstar. It is a $30 million loan (originally $37 million) on the Los Angeles Superior Court Tower at 600 South Commonwealth Avenue in the Westlake neighborhood. This is the debt’s second stint in special servicing, and the loan joins Jamison’s about $170 million special-serviced debt on Koreatown and downtown real estate.

It was previously reported that Jamison was planning to turn the offices into apartments, but that may no longer be the case. June servicer commentary, via Morningstar, noted the property is under contract and the buyer needs more time to close. Jamison did not immediately respond to a request for comment.

Read more

Reuben brothers take keys to Witkoff’s West Hollywood hotel

CIM sues private members club over unpaid rent in West Adams to tune of $830K

Koeppel Rosen LLC announced that law firm Fenwick & West, LLP has expanded its office footprint at 902 Broadway with a new 18,200-square-foot lease expansion and extension. Fenwick & West originally occupied 54,600 rentable square feet across three full floors and now occupies a fourth for a total of 72,800 square feet

The expansion arose from Fenwick & West’s need for additional office space as it continues growing its presence in New York City. The new lease carries a term of 11 years, which includes an extension on the existing floors.

Director of leasing Max P. Koeppel of Koeppel Rosen represented ownership. David M. Kleinhandler and Ken Rapp of CBRE represented the tenant.

“We are thrilled that Fenwick & West has chosen to expand its commitment to 902 Broadway,” said Koeppel. “We continue to see strong interest throughout our portfolio from law firms and other professional organizations that value premier locations, efficient floorplates, and a high-quality workplace experience.”

Brokerage giant Compass has said that a strict new Washington state law that prohibits private listings does not apply to properties marketed across its network of agents as “Private Exclusives” or “Coming Soon.”

The new law, which Washington Gov. Bob Ferguson signed in March, took effect on Thursday. It prohibits real estate brokers from marketing properties to an exclusive group of brokers or prospective buyers, unless the property is concurrently marketed to the general public and all other brokers. 

The law, known as SB 6091, carries an exception for listings that could threaten the owner’s health or safety if marketed to the general public.

Compass, the largest residential real estate broker in the country, has built its brand in part on the appeal of Private Exclusives listings, which the company’s marketing materials say allow home sellers to “test price, gather insights, and build anticipation before going public.”

The Compass website advertises a three-step process for sellers to gain gradual exposure for their listings: Private Exclusives, which are shared across the Compass brokerage network; Coming Soon listings, which appear publicly on the Compass website and Redfin; and finally, traditional listings seen widely on public websites.

In a statement to Realtor.com® regarding the Washington law, a Compass spokesperson said: “Compass Private Exclusives and Compass Coming Soons are fully compliant with the new law.”

The spokesperson explained that Compass Private Exclusives “are only private online” and that “consumers and real estate agents from other firms can visit Compass offices to see them.”

Compass in May 2025 launched a service that allows agents from any other brokerage to visit a Compass office and browse a physical or digital book containing the Private Exclusives listings in that specific market.

“The new Washington law preserves homeowner choice. It affirms that homeowners in Washington can market their homes before listing them on the MLS or public portals,” the Compass spokesperson said, referring to the multiple listing service databases where homes are traditionally marketed. (Realtor.com obtains home listing information through direct partnerships with the various regional MLS providers.)

Asked about Compass’ interpretation of the new private listings ban, Mike Faulk, a spokesman for the Washington State Office of the Attorney General, said the AG does not provide legal analysis or opinions to anyone other than state agencies, or through litigation.

“Since it’s a new law, there’s presumably not any case law on this specific policy in Washington I can point you to either,” he said.

Compass in legal battle with NWMLS

The legal change in Washington state comes as Compass is locked in a high-stakes civil lawsuit with the Northwest Multiple Listing Service, the MLS that covers parts of Washington and Oregon.

Compass filed the federal antitrust lawsuit in April 2025, alleging that NWMLS operates as a regional monopolist controlling nearly 100% of Seattle-area housing data, using its rules to suppress innovation and limit consumer choices.

The lawsuit specifically targets NWMLS rules that require any home marketed by a member to be submitted to the MLS within one business day, banning “office exclusives” from later appearing on the MLS.

Compass claims these rules illegally target its proprietary marketing strategy, which relies heavily on Compass Private Exclusives.

A Compass spokesperson told Realtor.com: “NWMLS rules violate state law requirements and are among the most restrictive in the country, limiting the marketing options available to homeowners that are widely available in other states.”

In court filings, NWMLS strongly rejects these allegations, maintaining that its rules are inherently pro-competitive because they ensure an open, transparent marketplace where all buyers and brokers have equal access to all listings.

In a counterclaim filed in April 2026, NWMLS accused Compass of executing a “deceptive scheme” designed to conceal housing inventory from the general public. NWMLS alleges that by “wiping the slate clean” when a property transitions from Private Exclusives to the active MLS, Compass artificially resets the property’s price history and time on the market, hiding valuable information from prospective buyers.

Compass denies those counterclaims. The litigation is currently moving through federal court.

For its part, NWMLS actively supported SB 6091, the Washington state ban on private listings.

“NWMLS has proudly championed market transparency for decades, with members sharing all listings with all brokers and all consumers,” NWMLS CEO Justin Haag told Realtor.com in a statement.

“Senate Bill 6091 simply codifies that standard—ensuring that when a home is marketed for sale, it is available to all buyers and all brokers,” he added. “NWMLS members already comply with the new law, as our existing rules reflect a longstanding commitment to full transparency and equal access to listings. NWMLS rules and the new law ensure an open, fair, and comprehensive marketplace for residential properties that promotes competition and fair housing.”

A new state law that allows denser housing development near major transit stops goes into effect in July, opening the door to construction of more than 1 million new units in California’s urban centers.

The law forces cities to approve taller apartment and condominium complexes around rail stops, ferry terminals and rapid transit bus stops, overriding local restrictions that might have stopped development in the past.

The Abundant and Affordable Homes Near Transit Act, also known as Senate Bill 79, is one of the most aggressive measures state legislators have taken to address California’s housing shortage in recent years.

Real estate developers are already cautiously planning to take advantage of the eased regulations and plan to announce new projects after the law goes into effect.

The bill was introduced in 2025 by Sen. Scott Wiener (D-San Francisco), who emphasizes that the state needs to take immediate action to address California’s housing shortage.

“This removes a bunch of uncertainty” about whether proposed projects will get approved, said Chief Executive Sean Burton of Cityview, one of the largest apartment developers in the state. “We’re very excited about it.

“This law limits the ability of local governments and officials to block new housing projects as long as you live within the parameters of the bill,” Burton said. “This should really accelerate the production of new housing in Los Angeles and beyond.”

The law preempts local control to legalize midrise and high-rise multifamily housing, unlocking zoning for up to 1.5 million new units in major cities, including Los Angeles. Developers may build housing up to nine stories tall for buildings adjacent to certain transit stops, seven stories for buildings within a quarter-mile and six stories for buildings within a half-mile.

Height limits are based on tiers. Tier 1 zoning, which includes heavy-rail lines such as the L.A. Metro B and D lines, allows six- to nine-story buildings, depending on the proximity to the transit hub. Tier 2 zoning — which includes light-rail lines such as the A, C, E and K lines, as well as bus routes with dedicated lanes — allows for five- to eight-story buildings.

Single-family neighborhoods within a half-mile of transit stops are subject to the new zoning rules.

The bill applies only to counties with at least 15 passenger rail stations, leaving eight: Los Angeles, Orange, San Diego, Alameda, San Francisco, San Mateo, Santa Clara and Sacramento.

The biggest effect probably will be felt in Los Angeles, which has an estimated 150 transit stops covered by the bill, according to the city’s preliminary assessment.

Los Angeles architecture firm SPF:architects has designed two proposed residential projects in Southern California that will be unveiled when the new law goes into effect July 1, said Renzo Pali, director of operations. He said he doesn’t want to name the exact locations yet to avoid tipping off officials who might try to stop them.

The bill allows cities to delay the new zoning law until 2030 if they add density on their own terms. If they haven’t adopted a density plan by July 1, they must abide by the terms of SB 79 until they have one. Proposals submitted before the plan is complete would still be subject to the bill, so there may be a rush of plans submitted to cities to get in under the wire, Pali said.

“Every city is now going to have some form of transit-oriented development plan, whether it is what SB 79 prescribes outright, or their own version of it, he said.

Los Angeles is among the cities that have moved to at least temporarily blunt the requirements of SB 79 after opposing it in a resolution last year that said the bill “undermines local governance, circumvents local decision-making processes and imposes unintended burdens on communities.”

In March, the City Council adopted a strategy to delay the effects of SB 79 citywide by upzoning 55 single-family and low-density areas, allowing four- to 16-unit buildings up to four stories tall. The 55 areas are mostly in Central L.A., West L.A., the Eastside and the San Fernando Valley.

Assuming there’s no pushback from Sacramento, the plan adopted by the City Council will allow L.A. to kick the proverbial can down the road, delaying SB 79 implementation until 2030.

Developers are miffed by the delay, Burton said. “You hear from the City Council that they want more housing, but then they oppose the laws that would create more housing.”

He does expect that new state laws, including SB 79 and last year’s partial rollback of the California Environmental Quality Act — known as CEQA — that made it easier to win approval for real estate developments, will lead to growth.

“You’re going to see a lot more additional housing built in California,” Burton said, “but I think a lot of that is gonna unfortunately skip Los Angeles city because of Measure ULA. That remains the major barrier to new housing development.”

Known as the “mansion tax,” Measure ULA levies an additional real estate transfer tax on high-value property sales that developers say limits their ability to build profitably.

“I think you’ll see Santa Monica benefit and Culver City benefit and Pasadena and Glendale benefit and West Hollywood benefit,” from new housing created through SB 79,” Burton said. “I don’t know how much benefit you’re going see in the city of Los Angeles because they didn’t deal with the biggest issue, the mansion tax.”

The Southern California Assn. of Governments recently released a preliminary map of transit hubs that would be included in the bill that follows Metro’s rapid transit map through Los Angeles County.

Reluctance among leaders of some California cities to intensify density around transit hubs shows why state intervention is warranted, said Jonathan Curtis, head of Glendale multifamily housing developer Cedar Street Partners.

“We’ve got a housing crisis on our hands, and other things haven’t worked,” Curtis said. “Cities may not like it, but the state mandates make sense.”

Billions of dollars have been spent on rail, he said, and “what’s missing is the density at rail stations. If you don’t take advantage of the transit stations, it’s just another lost opportunity.”

Times staff writer Jack Flemming contributed to this report.

The Durst Organization said Thursday that national law firm Taft signed a lease at 1155 Ave. of the Americas for the entire 16,563-square-foot 24th floor to launch its New York office. Taft plans to scale its New York presence to more than 100 lawyers over the next five years, consistent with its size in existing primary markets, and will join law firms Perkins Coie and Jenner & Block as tenants at the 42-story office property.

“New York was the biggest missing piece for Taft as we continue to build a firm that truly serves clients nationwide,” said Taft Firmwide Chairman and Managing Partner, Robert J. Hicks. “This is the perfect spot for us to get started in New York and establish a strong foundation for continued growth.”

The Durst Organization was represented in-house by Tom Bow, Rocco Romeo and Nora Caliban. Taft was represented by Sheena Gohil, Andrew Urban and Jack Senske of Colliers.

Downtown Los Angeles’ U.S. Bank Tower scored two major lease transactions totaling 53,146 square feet, speaking to the building’s draw from professional service firms.

The deals include new space for King & Spalding, the Atlanta-based law firm, and Zurich Insurance, expanding both companies’ presence in the city’s central business district, the Commercial Observer reported. Silverstein Properties, which acquired the 72-story circular skyscraper in 2020, announced the leases.

The landlord has spent $60 to reposition the tower as a luxury office address that, in the words of Silverstein Vice President Harlan Strader, offers “unparalleled quality, luxury and prestige” that gives tenants a competitive edge in attracting talent. The building’s transformation has focused on hospitality-style amenities, including upgraded lounges and wellness spaces.

King & Spalding added 18,971 square feet to its footprint in the building and now occupies 42,663 square feet on the 15th and 16th floors.

Zurich North America entered into a new 10-year lease at the property for 10,483 square feet on the 20th floor. The insurer will move from its current offices at 777 Figueroa Street.

The new leases follow a 24,416-square-foot full-floor deal signed in March with Wilson Elser, another law firm, underscoring the tower’s growing appeal among legal and financial tenants. The property’s roster already includes U.S. Bank, KPMG, McKinsey & Company, Marsh McLennan, Lincoln International and Sompo International, creating a concentration of blue-chip business service firms.

Located at 633 West Fifth Street, U.S. Bank Tower remains one of the tallest and most recognizable buildings on the West Coast. Its leasing momentum reflects a broader trend of flight to quality in Los Angeles’ office market, where tenants are consolidating into premium properties.

John Izard, Carla Williams and Eric Duncanson of Cushman & Wakefield represented King & Spalding in lease negotiations. JLL’s Scott Becket represented Zurich. JLL’s Jaclyn Ward, James Malone, Marin Turney and Sarah Hancock represented Silverstein, according to the Commercial Observer.

– Joel Russell

Read more

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