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Thursday, December 18, 2014

Nightclub owner flipping Silver Lake restaurant-apartment building

Photo by Jesse Saucedo

It’s been less than a year since Steve Edelson became an owner of the former La Parrilla Restaurant building at the corner of Sunset Boulevard and Westerly Terrace. A lot has happened since the two-story brick building, which includes 10 apartments. sold for $1.3 million last October, including the opening of the new El Diablo Urban Taco Fabricators and a new black and white color scheme. Now, apparently Edelson and partners are looking to cash in on the property, putting it up for sale at an asking price of $2.99 million, according to LoopNet.

The property also includes a 10-space parking lot on the same block.  The marketing materials say rents range from $474.61 for a studio apartment to $8,000 for the restaurant space  (How many tacos do you need to sell to break even at these rents?)

The La Parrilla building was purchased only a few months after Edelson took over the Los Globos nighclub across the street.



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62 comments

  1. What’s with this guy and black paint?

  2. (How many $5 tacos and $7 microbrews do you need to sell to break even at these rents?)

    FTFY

  3. It’s either 1,600 tacos ($5. ), or 1,143 microbrews ($7.).

  4. Assuming two tacos (~$10) + one beer (~$7), at $17 / customer, that’s 470 customers a month, 115 a week, or 17 customers per day.

    This is not taking into account customers who buy more than two tacos, spring for a Maine lobster taco, or a high gravity beer.

  5. That used to be Casa Ybara before it was la Parrillia. Nice paint job.

  6. Definetly a smart Ahole with lots of capitol. There should be an occupy against him…. for taking all the great landmarks and turning them into lame generics… I hope he bought LeBarcitio and turns it into cheese and organic coffee shop

    • I agree completely — except that its not that he’s smart, its just that he gouges and exploits our community.

      How it is helpful to our community to have prices doubled, serving to run out the people who are here? I guess we people who are here should just get out of the way of big money — we are in the way of big rents and doubling the price of real estate so that none of us could ever buy or even afford the rent. To hell with us — we are just here to be exploited.

      • I agree with your sentiment, Nic.

        When I was unemployed for several years back around 2000, La Parilla was my once-a-month ‘nice’ place to eat. A real treat, great food, and the only ‘fancy’ meal I could afford at the time.

      • It’s called Vulture Capitalism. Romney is very familiar with it. It’s a pump and dump scheme.

        • Vulture Capitalist:
          1. A slang word for a venture capitalist who deprives an inventor of control over their own innovations and most of the money they should have made from the invention.

          2. A venture capitalist who invests in floundering firms in the hopes that they will turn around.

          http://www.investopedia.com/terms/v/vulturecapitalist.asp#ixzz25qEURfLA

          So, we know it’s not #1 (unless you have proof otherwise??).
          And if it’s #2 it would infer that the business taken over was failing (which it was).
          So xman, what would be your solution/proposal then??

          • Fleaman -Pedantic blow hard,

            We all enjoyed your hiatus from the eastsider comment board. Please go back to where ever you were before.

            Thanks

          • Wow, an incredibly informative and contributive post there Mr. Blow Hard.

            Oh wait, all you really did is BLOW HARD.

            Oh how ironic. Is this your alternate handle Mr. DJ in a box? It’s very appropriate.

          • Blow Hard–I’m waiting for you to actually address anything I’ve said in this thread.
            (other than just making an actual ‘blow-hard’ post).

          • Fleaman. An incredibly appropriate name for an irritating man-bug.

          • I’m impressed, did you compose and write that one liner all by yourself??
            We now know you’re incapable of actually countering anything I’ve posted here (as you’ve proved), but at least put a little more creative effort into your insults. I’d like to at least get a chuckle out of it rather than a sympathetic sigh.

            We really need more posters like yourself here on the eastsider board, as we have such a shortage of uninformative, non-noncontributing, blow-hard posts here. At least your straight up with your handle.

            You’re such an ASSet here!!

  7. The proprietors of the new eatery may be the coolest people I’d ever hope to meet, but whoever came up with the WAY-overdone “Urban Taco Fabricators” needs to lay off the Red Bull. Or just the bull.

    • That was my thought when I read that the first time.

      • The post is about the owner flipping the building .
        Why drag the proprietors of Diablo and their “wares” in to this?
        I have been to Diablo, and while it was not for me , i wish EVERYONE well with their endeavors.

        • I certainly don’t wish El Diablo ill either, but why not mention them? The post is certainly about the flippin’ owner, but it references the building’s newest tenant, and I find their name over-urbanely “fabricated” enough to keep me from contributing to any success the proprietors might achieve. If I’m not alone in that opinion and El Diablo ends up shuttering due to a lack of sales that might have an effect on Edelson’s ability to sell.

    • I know. Does a “fabricated” taco even sound tasty?

  8. Nas and Ben….you may have neglected to factor in the overhead in labor, taxes, supplies, and yes, the food to be cooked for people to eat.
    I knew little about the place so I read the Yelp coverage (you learn how to parse the reviews) and this place doesn’t sound like it has much of a future.
    There are a lot of 5 star glowing reviews but left me thinking of Meg Ryan’s emoting in When Harry Met Sally…
    I hope for the sake of those that live there that rent control protects them.

    • People, look into the prices of the food you eat. I know that many of you shop at farmers markets, buy organic and support fair wages. How then can you expect every new restaurant that opens in this neighborhood to offer you food at ridiculously cheap prices? Doesn’t make sense. It seems like none of you have any idea of what it takes to open and run a business.

      • eastsidearts is correct. Guarantee that none of the posters ever opened a restaurant, and likely even a retail store.

        If it was relatively easy to offer good quality food at cheap or even reasonable prices AND make a profit (the whole point of a business), then why not do themselves? Seems like a no brainer, lol.

  9. I hope you are right about rent control. I’m sorry — but I find flipping against nature. And I wish they’d all go away. The houses in my neighborhood have been flipped until 2008 and now are languishing. Stop destroying neighborhoods.

    • flipping is merely taking advantage of a market imbalance… There is nothing more natural.

      By definition, things sell for what people are willing to pay for them. Appraisals are meaningless unless someone is willing to pay the price.

      What really should frustrate you is cash buyers pushing occupant home buyers out of the bidding process… other than that, flippers are just leveraging their ability to fix up buildings cheaper than you or I could, with a bigger cash store than you or I have… also taking more risk that you or I could.

  10. Don’t get the rational that he “gouges and exploits our community”.

    The community will either support, i.e.—eat, pay rent or buy the property at his ‘gouging’ prices, or it WON’T.

    Period.

    If it was that easy to “gouge and exploit” for easy $$$, then we would ALL do it.
    Yet, if it really is gouging exploitation, then the community will vote with it’s $$ and the establishment will fail (like most do).

    He’s taking a risk and many of these risks don’t pay off. There’s a good chance he’ll lose big time on this, it happens WAY more times than not. That’s the risk of entrepreneuring, and last I checked, it’s the American way.

    I’m not siding with the guy, I’m indifferent actually, but I can’t help but notice the amount of hypocrisy and lack of forethought that goes into some of the comments here. No doubt many of the posters making these comments unknowingly shop and patron establishments that were also the result of someone like Edelson making investments. How about Dusty’s across the street? Or the Coffee Table? Malo? I could go on and on, and I bet they’ve eaten there or even worse, frequent regularly.

    Just saying.

    • Word.

      They’d also do well to remember that when you go to a restaurant you’re mainly paying for rent, AC, service etc. the cost of food is pretty minimal.

      If you want cheap food, buy a tamale out of a grocery cart.

    • You are totally right. Ive seen the same behavior In Venice on Abbot kinney///miracles happen……..in the end it is still a creative process. puro

    • The problem is that the community as a whole suffers when people just come in to make a quick buck and then move on. Having long term tenants and owners make a big difference in the quality of the neighborhood.

      • What do you propose xman?

        There’s no such thing as a guaranteed ‘quick buck’ in anything. There’s risk in any venture and Edelson isn’t exempt from that risk anymore than anyone else that’s doing what he’s doing.

        Are you inferring that Edelson has some sort of ‘secret advantage’ vs any other investor/entrepreneur? Perhaps he hypnotizes the helpless owners of these properties to sell to him well under market value? Then, instead of just flipping for a ‘quick profit’, he then invests MORE $$ into the property with contracting/upgrades/work (regardless of whether one likes his taste or not), rents out the commercial space for WAY over market value (which he gets by hypnotizing a potential tenant), then throws the property up for way over market value—which he will get by hypnotizing everyone that see’s his listing on the MLS.

        Is that how he does it?

        Again, I don’t know the guy, am indifferent to him or this property. But I just don’t get what it is you’re inferring and/or what you propose???

  11. And yes, rent control protects residential apts built before a certain time period (something like 1978?), so this building way qualifies.

  12. Not to mention, Mr. Edelson (and partners) should be criminally prosecuted for scrapping the classic Los Globos sign. And replacing it with some cheap digital print job, to boot.

  13. Especially funny that the new, trying-too-hard “urban taco fabricator” is right next to an actual real LA taco stand.

  14. I dunno, I’ve eaten at both and neither is trying to do what the other is.

  15. He is a slash and burn guy and has operated this way around the city for many years. I have had many run ins with him and how he operates his business.

  16. seems like the building was definitely a bargain at 1.3 million.
    10 apts, plus a retail space, at a cool location.
    wish i had seen it, and could have done it.
    smart move.

  17. Leave the tacos out of this. They’re delicious.

  18. Painting the building black is really not that nice for the neighborhood. Especially since there’s already another black building across the street. It’s not attractive in an aesthetic way, although it might attract a certain type of clientelle.

  19. At least the building looks nice now.

  20. You guys need to work 18 hrs a day then complain. What we have in hand is a creative revolution. This block (from westerly to silverlake0 will be epic by next year. I promise you. Ive known Edelson for over twenty years, and he WILL MAKE THIS BLOCK EPIC. cheers to that. SO NOW LETS GET TO WORK AND SUPPORT THIS SINCE YOUR PROPERTY WILL ONLY GO UP IN VALUE as this is this will become the new ABBOT KINNEY…..trust me on this…..salud

    • ‘course that only works for those who already own properties.

      Those who’re renting or planing to buy property in the near future will be more f*#$@ck if your predictions plan out….

    • Abbot Kinney ? hahahhahahahahhahahah.
      Who goes to Abbott Kinney ?

    • Gentrification does not equate to creativity.

      A neighborhood/community is not about making money, primarily. It’s about living a good life in a safe neighborhood with family and friends.

  21. Was there a fist pump implied with that EPIC?

  22. It’s a great property. We have great new tenants and still have great potential to move some old tenants to increase rent on the apartment.

    Here is a link to the listing package:

    http://maninvestmentgroup.com/in-house-listings/for-sale/3123-sunset-blvd-mixed-use-restaurantapartments-2999000/

    Feel free to contact us if you have any questions call our office and ask for my manager: Jonathan 626-872-6622 or via email jhua@maninvestmentgroup.com

    • “still have great potential to move some old tenants to increase rent on the apartment.”
      gross. at least you’re honest.

      • Alex,

        Your government would have you believe that housing should be a right and landlords/ business owners do not have the right to make a profit. And, whilst they try their hardest to over regulate and even steal properties through LAHD programs like “REAP”, business owners are smarter and will prevail.

        What is “gross” is that you think that housing should be subsidized by a private entity…

      • They can’t move tenants that don’t want to move. They can offer a large relocation sum, but the tenants don’t have to bite.

        It’s a rent controlled building.

        There are other more extreme ways, but it’s usually cost prohibitive to the landlord.

  23. Edelson is a guy thats playing the recovery hope card and losing. I dont know how much money he has to fall back on but i know he bought many overpriced dilapidated motels in Ojai only to see that breaking even would be a dream. He’s buying Ojai properties like they are on a Monopoly board and my bank informant tells me Ojai is not a honey hole for Edelson. I walked in one motel called Capri with two large lobby wall paintings that looked like some kids painted for a high school Halloween party that were scare faces orange and black. It was called it “art by a local artist” Really?? anything can be called art I guess but if you think its good because its “local” I would say you are insulting Ojai’s real artists , that “art “is mostly only seen in spook houses for kids and taken down after a week. Why would someone put it in the lobby of their Motel? To give the finger to real local artists or customers ?

  24. Please delete my previous comment that is in moderation now due to false and inaccurate statements I have now discovered just arent true …….Thanks

  25. Steve is a great guy, he actually is great at keeping area’s wanted and appreciated !!

    I hope you appreciate that too !!

    He is my friend, and a real nice man !!

    Thank you !!

    Best Eve

  26. If I could write a book on everything that’s happened in n around that place
    I would .I can only tell it .lol.All about profit,he chose blk paint due to taggers easier to cover the tags..

    • Uhm, last I checked, the point of a business is to make a profit.

      If not, then it is a ‘non-profit’.

      You can have different strategies (long term, short term profit, etc), but ultimately ‘profit’ is the main motivation.

      Of course it isn’t a given he will make a profit, but if he does, it was his risk, venture, and right to do so (assuming he followed all laws, regulations, etc., etc.).

      The previous enterprise failed. No need to speculate the hows/whys, but it did. So anyone with the guts, means (internal or external), and the highest bid can take on such a venture if they want (along with the wrath of a community that will never be 100% satisfied no matter what is done). In this case it was Edelson that won out.

      History will show he was either a smart business man (made a net profit) or not (lost his ass) on this property. Either way, I don’t get the comments from those who want the property to be developed to their liking when they have no stake in it at all (meaning, they have nothing to lose).

  27. It’s wut the customers like actually.The customer’s always right they say.lol

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