The Newest Feature in Haute Living Los Angeles

It’s the start of a new year and here at Haute Living, that also means that it is time to bring our readers a fresh start on our feature articles. In 2010, we are enlightening our audience with a look inside some of the most powerful industries dictating the trends of our times and going behind the scenes with the power players who rule those industries.

We started with our Los Angeles issue where we delve into the world of real estate. In the January/February issue, Stephanie Wilson brings us Q&As from the agents who are dominating the market in Southern California and reveals some of the secrets of their lasting success.

Russ Filice, Jeff Hyland, Joyce Rey, Suzanne Perkins, Bob Chapman, Myra Norman, Tom Iovenitti, Gary Legrand, and Bennett Carr share their dream properties to list, predictions for the local market this coming year, their idea of a perfect Friday night, treasured gadgets that they never leave home without, and much more.

These unstoppable agents continue to dominate southern California’s luxury real estate market. Here, they share the secrets to their lasting success.

Russ Filice
The Visionary

Russ Filice, a realtor with Sotheby’s International Realty, is one of Los Angeles’ most celebrated real estate agents. His successes have been vast; for years, Russ has been the No. 1 earning realtor at the prestigious Sunset Strip office, with career sales totaling in excess of $1 billion. The media often turns to Russ as a trusted source, and he has been named one of the “Top 100 Realtors in America” by the Wall Street Journal. With a degree in accounting and a work history that includes the successful launch of a line of sportswear, Russ has always had an eye for real estate. It was his vision that turned the Sierra Towers in West Hollywood from an unfashionable high-rise to a world-renowned luxury building with units priced upwards of $5 million. His success as a high-rise specialist didn’t go unnoticed, and after a worldwide search, the development team of the new W Hollywood Residences chose Russ as the director of residential sales for their $350 million development on the iconic corner of Hollywood and Vine.

Haute Living Where are you from originally?
Russ Filice I was born and raised Silicon Valley.

HL How long have you lived in Los Angeles? What neighborhood do you live in?
RF I moved to L.A. in 2001. I currently live at the Sierra Towers in West Hollywood, but am looking forward to moving into the new W Hollywood Residences when it opens in early 2010. Many people have asked why I would leave such a glamorous and famous Los Angeles address for a more urban one. See for yourself: www.WHollywoodResidences.com.

HL When did you first become interested in a career in real estate? What about it sparked your interest?
RF I have always been interested in residential real estate. I received my real estate license at the age of 18 while attending Santa Clara University as a way to earn money for school. I never lived in a nice home growing up, so other people’s homes and the way others lived intrigued me to no end. This translated into a drive to help people buy and sell some of the most amazing properties imaginable.

HL What was the first big sale that you closed in the luxury market?
RF In the early years of my career in Silicon Valley, I sold an estate that was listed for $2.5 million. This was in the late 70s when only one other residence was listed above $2 million. Back then, I had never been in a home worth so much money. Interestingly enough, last year I closed the largest sale in Los Angeles. That property was listed at $50 million. How times have changed!

HL Who taught you the tricks of the trade in luxury real estate? What are some of the lessons that you learned?
RF Although I had mentors and have worked with some of the best in the business, much of my career success has largely been based on intuition and instincts, and a personal obsession with marketing. I am a self-proclaimed workaholic and residential real estate is my passion. There is no doubt I’m doing what I was meant to do.

HL What would be your dream property to list and why?
RF I love extremely contemporary properties. Quality is important. I also have a special affinity to high-rise living, because I find views to be inspirational. Homes without spectacular views are rarely a turn-on for me.

HL What is the secret to succeeding in the Los Angeles real estate market?
RF Without a doubt, my success in the L.A. market (I knew no one in L.A. when I moved here in 2001) has been due to my specialization in high-rise properties. Last year, the Wall Street Journal and Lore Magazine ranked me as one of the Top 100 Realtors in America. No one has sold more high-rise condominiums in southern California than I have in the last several years. I am very proud of that accomplishment. Realtors without a niche are like doctors without a specialty, they are a dime a dozen. When you control your niche, you control your destiny.

HL What is it about L.A. that is attractive to those seeking a luxury lifestyle?
RF Los Angeles has always been the land of excess. From clothes to cars to homes, every brand-driven luxury product has a place in the aspirations of Angelenos.

HL What are some annual cultural/social events that would appeal to Haute Living readers?
RF Any of the unlimited number of red carpet events that one could attend in L.A. almost nightly.

HL Where is the first place you would take an out-of-town visitor and why?
RF The Hollywood Walk of Fame and Grauman’s Chinese Theater for sure. These places are iconic worldwide. They never fail to please and excite visitors.

HL Where are the best luxury shopping venues in L.A.?
RF I like Neiman Marcus and Rodeo Drive in Beverly Hills, although I must confess, I am not really a shopper.

HL The last place you went for fine dining?
RF Mr Chow in Beverly Hills.

HL You never leave home without…
RF My BlackBerry.

HL Your favorite Friday night out?
RF My favorite Friday night out is a Friday night at home with my dogs, without exception!

HL Describe Los Angeles in three words:
RF Bustling, intoxicating, motivating

HL If you weren’t in real estate sales, you would be…
RF A photographer. I am fascinated by a photographer’s ability to tell a story without speaking.

HL When not selling properties, what is your favorite pastime?
RF I love to travel. When not traveling, I am a voracious reader.

HL What is something that people would be surprised to find out about you?
RF That I strongly dislike garlic. No vampire jokes, please!

HL What are your predictions for the local market in 2010?
RF Without a doubt, 2010 will be the beginning of a slow recovery in residential real estate. If you didn’t buy in 2009, you most likely have missed the bottom.

Real Estate Royalty

FROM LEFT : Crosby Doe ; Chris Cortazzo; Russ Filice

Crosby Doe
COMPANY: Crosby Doe Associates
COMPANY’S SPECIALTY: Architecture and historic properties
REAL ESTATE PHILOSOPHY: Architecture is to general real estate as [famed Abstract Expressionist] Sam Francis lithographs are to gift wrap.
HIGHEST SALE: $9 million
YEARS IN THE BUSINESS: 35
FAVORITE CAREER MOMENT: It was the simple joy of seeing the [Richard Neutra-designed] Barsha Residence restored from near-total destruction. Like the Kaufmann Desert House by Neutra, the house ad been significantly degraded by alterations and additions that almost completely hid the quality and magic of the residence.

Chris Cortazzo
COMPANY: Coldwell Banker Previews International
COMPANY’S SPECIALTY: Malibu real estate sales
REAL ESTATE PHILOSOPHY: If you don’t have integrity and a strong work ethic you shouldn’t be in the business. It’s the backbone of my success.
HIGHEST SALE:Representation of both buyer and seller of a Malibu bluff property listed for $27.5 million
YEARS IN THE BUSINESS: 16
FAVORITE CAREER MOMENT: My first sale—it was a $5 million property that I sold to a celebrity client. I realized then no matter what the price is, buying and selling a home is a diffi cult and trying time for everyone involved. I felt a tremendous sense of satisfaction when I handed over the keys. I knew then this was the career for me.

Russ Filice
COMPANY: The Filice Group at Sotheby’s International Realty
COMPANY’S SPECIALTY: Luxury high-rise buildings
REAL ESTATE PHILOSOPHY: I believe to be successful in real estate, you must not only have an area of expertise, you must make every effort to be the very best at it. Follow your passion and make your brand synonymous with it. Control your niche, and you’ll control your destiny.
HIGHEST SALE: $32 million
YEARS IN THE BUSINESS: 27
FAVORITE CAREER MOMENT: Being asked to spearhead sales at the W Hollywood Residences

FROM LEFT : John McMonigle; Jeffrey Hyland; Stacy Gottula

John McMonigle
COMPANY: McMonigle Group
COMPANY’S SPECIALTY: Luxury residential sales
REAL ESTATE PHILOSOPHY: “In a successful organization, no detail is too small to escape close attention.”—Lou Holtz, legendary college football coach
HIGHEST SALE: $32 million
YEARS IN THE BUSINESS: 17
FAVORITE CAREER MOMENT: Hearing my 11-year-old son say he might want to be a “realestator”

Jeffrey Hyland
COMPANY: Hilton & Hyland
COMPANY’S SPECIALTY: Luxury estates from Beverly Hills to Malibu
REAL ESTATE PHILOSOPHY: It’s not location, location, location, it’s timing, timing, timing.
HIGHEST SALE: $35 million
YEARS IN THE BUSINESS: 25-plus
FAVORITE CAREER MOMENT: Sale of a 122-acre estate in Beverly Hills to Paul Allen, cofounder of Microsoft and owner of the Seattle Seahawks and Portland Trail Blazers

Stacy Gottula
COMPANY: Coldwell Banker Previews International
COMPANY’S SPECIALTY: High-end luxury homes and estates
REAL ESTATE PHILOSOPHY: If you refuse to accept anything but the best, you very often get it. Hard work, drive and being authentic seem to be the keys that open many doors.
HIGHEST SALE: $18 million for the Hugh and Kimberley Hefner estate, a sister property to the Playboy Mansion
YEARS IN THE BUSINESS: 5-plus
FAVORITE CAREER MOMENT: Listing Le Belvédère— one of the most expensive homes in the US—for $72 million and selling the Hefner estate

By Nadja Brandt

Feb. 23 (Bloomberg) — Starwood Hotels & Resorts Worldwide Inc. is trying to burnish its W brand, after lenders took back two properties last year, with a $350 million hotel whose future may hinge on Hollywood’s revival as an entertainment hub.

The W at Hollywood Boulevard and Vine Street, which opened Jan. 15, is designed to draw tourists and movie-industry customers at a time room demand is falling and the area is struggling with fewer visitors. The hotel, co-owned by Gatehouse Capital Corp. and run by Starwood, is the W’s “flagship,” said Carlos Becil, a North American vice president for the chain.

“When we come out of this down cycle we’ll own the upswing with all these newer hotels,” Becil said in an interview.

Revenue per available room at U.S. luxury hotels plunged 24 percent in 2009, the most of any industry segment, as travelers pared spending, according to Smith Travel Research Inc. in Hendersonville, Tennessee. In California, the number of hotel foreclosures more than quadrupled last year to 62, Atlas Hospitality Group said last month. Defaults jumped sixfold, said Atlas, an Irvine, California-based company that specializes in selling hotels.

Starwood, based in White Plains, New York, has been letting go of assets to cut long-term debt of $2.96 billion as of Dec. 31. It agreed in July to sell the W San Francisco for $90 million to Keck Seng Investments (Hong Kong) Ltd.

Two Setbacks

Lenders took over the W San Diego in June after owner Sunstone Hotel Investors Inc. was unable to modify the terms of its $65 million securitized mortgage. The W New York Union Square, bought by Dubai World in 2006, was auctioned in December to a mezzanine lender after the state-run holding company missed a loan payment.

A $65 million senior loan and $5 million junior loan backed by Dubai World’s W Washington D.C. were 30 days delinquent this month and a debt servicer was working with the borrower, according to Steve Kuritz, a senior vice president at Realpoint LLC, a Horsham, Pennsylvania, credit-rating company.

Dubai World, through a spokesman, declined to comment.

“I don’t think brands are as important as they used to be,” said Lewis Wolff, co-chairman of San Clemente, California- based Sunstone. “Price is the biggest factor, and although the W is a good solid brand, it is expensive to build and maintain.”

Still, the W chain was Starwood’s best performer in the fourth quarter as revenue per available room fell 2.3 percent, compared with a 7.2 percent decline systemwide. Starwood, the third-largest U.S. lodging company, aims to expand the brand to more than 50 hotels by next year from 36.

Profit Beats Estimates

Starwood Hotels earlier this month reported profit before one-time items that was double analysts’ estimates and raised its revenue forecast. The company, which has been cutting costs to counter a slump in travel spending, said demand improved in the quarter as bookings for groups and business travelers rose.

Its shares have more than tripled in the past year, closing today at $37.78, giving the company a market value of $7.07 billion. That compares with a 99 percent increase by Bethesda, Maryland-based Marriott International Inc., the largest U.S. hotel chain, and a sixfold jump at Wyndham Worldwide Corp. of Parsippany, New Jersey.

Starwood owned, managed or franchised 992 hotels as of Feb. 16. The company’s management fees from operating properties, which also include the Sheraton, Westin and St. Regis brands, fell 12 percent in the quarter from a year earlier to $104 million.

It owns 10 of the Ws, a chain that began with one location in Manhattan in 1998 under then-chairman Barry Sternlicht. Sternlicht, who left the company in 2005, is chief executive officer of closely held investment firm Starwood Capital Group LLC, which he founded in 1991. He’s also chairman and CEO of Starwood Property Trust Inc. Both companies are based in Greenwich, Connecticut.

1940s Hollywood

The company is counting on glamorous touches to attract visitors to the 305-room W Hollywood, where a red carpet to the front desk and a round marble staircase to the sunken lobby evoke visions of the movie capital in the 1940s and stars such as Rita Hayworth and Clark Gable.

The W Hollywood will stage live music, film screenings and Oscar-themed parties, and its top two floors are equipped for the media junkets studios use to promote movies, said general manager Jim McPartlin.

Standard rooms at the hotel, part of a $600 million retail and residential complex above a subway station, average $250 a night. Suites start at $400.

The W Hollywood was developed by Gatehouse Capital, a Dallas real estate investment firm. Gatehouse owns it in a venture with Norwalk, Connecticut-based HEI Hotels & Resorts, in affiliation with the Los Angeles County Metropolitan Transportation Authority.

‘Long-Term’ View

Buyers signed up to purchase about a third of the property’s 143 apartments, Russ Filice, sales director at Sotheby’s International Realty representing the residences at W Hollywood, said last month while giving a tour of the one-, two- and three-bedroom units, some with direct views of the internationally recognized Hollywood sign. Occupancy at the hotel runs 50 percent, compared with about 62 percent for Starwood brands overall in the fourth quarter.

The development “is a very long-term project,” Marty Collins, chief executive officer of Gatehouse, said in an interview. “Ten years from now, will this be an iconic project or was it a flash in the pan?” Gatehouse has developed four Ws, and now is an owner of the W Dallas along with the W Hollywood.

The area, located seven miles (11 kilometers) northwest of downtown Los Angeles, is undergoing a makeover after becoming known more in the 1980s and ‘90s for crime and homelessness than for its roots in the early days of the movie business.

“Our challenge is to expose customers to the revival of Hollywood and the new attractions and restaurants,” said Bruce Gorelick, general manager at the Renaissance Hollywood Hotel & Spa, which opened at the end of 2001 as part of the Hollywood & Highland complex about 10 blocks away.

Hollywood Makeover

Los Angeles enacted the Hollywood Redevelopment Plan in 1986 to encourage building in the district that is home to Grauman’s Chinese Theatre, the Walk of Fame and the Kodak Theatre, where the Academy Awards will be handed out March 7.

Business has perked up from the days when women in his office wouldn’t step outside for lunch, said Jack Kyser, founder of the Kyser Center for Economic Research at the Los Angeles Economic Development Corp.

Crime in Hollywood declined 16 percent this year through Jan. 30, according to the Los Angeles Police Department. The crime rate of 27 offenses per 10,000 residents remained above the citywide average of 22, the data show, and an economy with unemployment near a 26-year high has hampered tourism, Kyser said.

“The revitalization is going to take awhile,” he said.

The 632-room Renaissance hotel, a Marriott International brand, saw occupancy slide 10 percent and group bookings decrease 30 percent last year, Gorelick said.

People Watching

The owners of the W Hollywood anticipate features such as its Drai’s Hollywood rooftop lounge and pool bar, and a 30-foot screen that can play music videos to accompany concerts, will lift occupancy to about 70 percent this year.

Attracting people for a night on the town may not help the hotel fill its rooms, said Sunstone’s Wolff.

“You may want to hang out at a busy bar to people-watch,” Wolff said.

Even so, the Hollywood mystique may help the W foster its own, according to Gorelick.

“Hollywood history — nobody can replicate it,” he said. “Everybody wants a piece of that action.”

–With assistance from Zainab Fattah in Dubai. Editors: Josh Friedman, Larry Edelman

To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net.

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net.

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Marty Collins
president/CEO

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one arts plaza
1722 routh street, suite 200
dallas, texas 75201
t 214.922.4310
C 214.616.2133
www.gatehousecapital.com

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Barbara Boyle, Pacific Palisades
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Steve Hancock, Jackson Hole
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Mon Ling Landegger, East Side Manhattan
Catherine Marcus, San Francisco
Eva Mohr, East Side Manhattan
Beate Moore, Bridgehampton
Frank Newbold, East Hampton
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“Interior Illusions incorporates the idea of telling a story when staging a home. Mike Valles and his team really creates an exceptional product with every home they stage and I highly recommend them” – Russ Filice

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1-877-4-INT-ILL. Interior Illusions offers staging packages that don’t just
accommodate you, but your budgets as well. You may also log onto
our website and click on the SERVICES page. There you can
browse through a gallery of homes designed and staged by the company.

Interior Illusions – “where only the best is good enough.”

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Congratulations on being named on of the nation’s premiere real estate professionals! Your ranking among the Wall Street Journal/Lore Magazine’s Top 400 in the Top 100 Individual by Sales Volume is a distinctive honor that truly distinguishes you as one of the country’s leading producers.

Your notable achievement is all the more impressive given the unprecedented nature of last year’s market. Your resolve, commitment and dedication are critical components of your success and aspects which I deeply admire. You serve as a role model not only for our company but for our industry.

Collectively, NRT sales associates secured 102 of the 400 spots in this year’s ranking, a most impressive statement about our company, and one that makes me so proud to have you as part of the NRT family. I wish you continued success in all your endeavors.

Sincerely,
Bruce Zipf
President and CEO, NRT LLC.