Deal Over a Meal

During the year-end holidays, all I can think about is food. So I was thinking about some of my favorite places around Los Angeles that I love to eat at. If you are involved in real estate, you know that many deals have been made over a meal. It seems that it is a tradition to do business over a breakfast, lunch, and sometimes even dinner. Sitting at a table and breaking bread seems to make a deal feel better.

Back in the early 1990's, my brother Jeff and I were selling the old Orbach's Department store (an RTC property) to our old client Mehdi Bolour. We had our offer accepted at $10.5M and delivered a signed agreement with a $500,000 non-refundable deposit. Our client invited us to lunch at the Pacific Dining Car to tell us that he as the buyer and payer of our commission was going to cut us from 4% to 3%. This was the first hundred thousand dollar lunch I ever had. The worst part was I paid for the lunch too! The Dining Car serves great steaks by the way, but I love their eggs benedict for breakfast… the BEST.

The rest of the story is also eye-opening: the RTC had the right to reopen the bids. So we were kicked out of escrow and had to rebid. We had leases ready to go with a health club for the basement, a supermarket for the ground floor and a clothing retailer for the second floor. This was a “home run” deal. Our client was willing to bid $14M and would still come out okay.

Well, greed got the better of him and he only bid $10.9M. Cedars Sinai Hospital bid $11M and the State of California and Petersen Automotive Museum bid $11.1M. I guess you can tell who had the inside info? Not us.

Needless to say, I have mixed emotions whenever I go to any event at the Peterson.

Breakfast can be hard to do well, and as I said, the best place for breakfast is the Dining Car in Downtown LA. It’s open 24 hours and the one in Santa Monica is good too. For really good pancakes you have Jacks N Joe and of course the Pantry. The Pantry has the absolute best coffee. When I was a kid my dad took me to Vickman's, where I also went when I first started working Downtown. That was the place to go to see all of the Produce District people and other manufacturers.

At Vickman's, I met many of my clients that I still have relationships with 26 years later. I met Harry Lumer of Joe's Parking there and became their broker for many years. At the time they were the largest owner of land in Downtown. I continue to do business with the Fleischman family, who had one of the biggest janitorial supply companies prior to the Home Depot age. The business is long gone and father Art has passed, but the son still manages their real estate holdings in the Arts District.

The art of meeting people might be lost on most of the population, but having a sit down meeting is still the best way to do business. Seeing someone's reaction to the discussion back and forth is more telling than an email. So I still like to meet over food.

The best Chinese food in Los Angeles is Yang Chow on Broadway in Chinatown. The Slippery Shrimp is to die for, but if you need to be authentic, then a short 15 minute drive to the famous 888 in Monterey Park is great too.

Being Jewish, deli's are a big part of the food thing. I like most of them, but here are a few of my favorites:

1. Canters: simply the best chopped liver, potato salad and an amazing barley bean soup.
2. Izzy's at 15th & Wilshire in Santa Monica has the best kishka.
3. Langer's on Alvarado St. has the best pastrami sandwich.
4. Jerry's: chicken soup = YUM!
5. Philippe the Original is not a deli per say, but it’s still fantastic for a French dip sandwich. Here’s a tip: the lamb is heaven in a double dip roll.

A little dive that is also amazing is El Colmao on Pico Blvd near Vermont Ave. Now if you’re not a city guy, it can be a little scary in the parking lot, but this Cuban restaurant is golden. If you like Versailles or just Cuban food in general, get here fast.

Another sleeper that has been a Los Angeles staple is Harold and Belle’s, which was recently in the paper because the ownership got a free loan from the city. They serve the most amazing Creole food. The Chicken Creole and the giant lobster tail is the best.

Other great Downtown places are the Palm, Roys, the Farm, Bottega Louie, and Freebirds World Burrito at Figueroa and Jefferson by USC.

If you like quality wine, another secret gem is the San Antonio Winery. Nestled in northeast Downtown, this oasis winery also has very good food (cafeteria style) and is perfect for a long lunch. The wine is top tier.

A great place to eat Mexican food is in East Los Angeles at El Tepeyac Café. The food is very tasty, not spicy, and they serve huge portions. This place is a deal closer.

If you want Italian, the best spaghetti in America is Andre’s at 3rd and Fairfax. It has been simply the best for decades.

For the more dressy fancy dinner meetings I like Morton’s, but then I might venture to Beverly Hills and do the old fashioned Spago. It is a wonderful dining experience and a place to be seen. My favorite restaurant for beef is Lawry’s the Prime Rib on La Cienega Blvd, home of the “Beef Bowl” competition between the two Rose Bowl teams.

I look forward with optimism and hunger to a fantastic 2012!