Refusing to run for cover in a stormy market.

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COMMERCIAL real estate is in a funk. There's no money to be made. And no one is doing any deals anyway. Right? Think again. While a slew of brokerage offices have closed and deal volume is down, the game is not over. In fact, a bunch of players are out there doing business right now, from brokers to investors to financiers. It's folks like Fred Sands, who recently bought a Carson mall and is repositioning it. Or broker Bob Safai who has sold a property for a cash-short investor. Or Jeff Friedman, who's raised a $1.5 billion investment fund. All in all, the Business Journal's Who's Who in Real Estate Special Report for 2009 profiles 14 of these fearless, down-market competitors--in their own words.

Investors

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MANY real estate moguls with a first act on the level of Fred Sands' would not be inclined to give it another go, especially in the current recession.

But nearly a decade after selling his namesake residential brokerage to Coldwell Banker for a "nine-figure" sum, Sands is on a roll again--now with investment and development.

A few months ago, he purchased SouthBay Pavilion, a 1.1 million-square-foot mall next to the San Diego (405) Freeway in Carson, adding it to a growing stable of 13 assets mostly in Southern California.

Sands has big plans for the property he bought for $50 million from Hopkins Real Estate Group. He wants to add a 16-screen movie theater, install large freeway signage and add tenants. He plans to spend as much as $30 million on upgrades; the plan is consistent with Sands' desire to be a "redeveloper" who can add value to aging properties.

"We are buying malls because nobody wants them, but malls aren't going away," he said. "We don't buy property that doesn't cash flow up front. That's why I don't like ground-up development. Ground-up development is a wonderful ego trip."

Sands, 71, started Vintage Capital Group LLC in 2001, shortly after selling Fred Sands Realtors the year before. While Sands has made a variety of moves in the last decade, such as starting a private equity fund that makes non-real estate investments, his focus now is on the real estate arm of Vintage Capital, called Vintage Real Estate. It has allowed him to be a contrarian, first by selling properties in 2006 and now by buying others.

Sands has long been interested in investment, but when he first got into the real estate business he didn't have the capital to pursue it. So, he started his brokerage instead.

"The thought was the brokerage part would be the cash cow to feed my balance sheet. It became a major distraction," said Sands, who grew weary of having his name attached to what became the largest independent residential brokerage in California.

"I was overexposed. Guys would look at me funny when I'd see them in social situations. I got fed up with it," said Sands, who lives with his wife in Bel Air, a short-drive from his-Brentwood offices. "I am not a movie star. It was great getting restaurant reservations but I just wanted to be low profile."

Sands also sold because he said he became convinced a residential crash was coming. It just took longer than expected.

"I thought the market would last maybe another couple years, but I figured it was time to leave on a high," he said. "'I thought that what happened now would have happened sooner; it's amazing how long it lasted."

* FRED SANDS, 71

Founder and Chairman

Vintage Capital Group LLC, Brentwood

The high-profile former residential real estate mogul has changed gears late in his career, founding Vintage Capital which invests in retail properties and has other businesses. He's done some big recent deals, including buying the SouthBay Pavilion in Carson.

Biggest Challenge: Obtaining new financing.

Notable Recent Deals: We recently purchased the SouthBay Pavilion, a 1 million-square-foot mall anchored by Sears, JC Penney, Target and Ikea.

Toughest Recent Deal: Putting financing together on the SouthBay Pavilion. We assembled a small consortium of lenders to complete this transaction.

Secret of Success: We have capital and lenders who like what we do and we are not highly leveraged.

Sage Advice: Having been through numerous real estate cycles in my career I am heeding lessons learned. Know where you are in the cycle. Hope for the best and prepare for the worst.

End of Downturn: We will crawl out of this one. The wealth effect is gone. High levels of credit card debt and the loss of home equity have eliminated the net worth of many consumers.

Recession's Silver Lining: Great opportunities to acquire commercial real estate and notes secured by real estate.

Stress Release: My wife and I love to take a lot of vacations and recently came back from Turkey.

Recent Splurge: Haven't given up much at this point and my wife certainly hasn't. I collect contemporary art and have been acquiring some great pieces by iconic artists at attractive prices.

* MORY BARAK, 30

Co-President

Lion Real Estate Group LLC, downtown L.A.

Barak is among the most active of the younger generation of real estate professionals. He left real estate investment bank Buchanan Street Partners to co-found Lion in October 2007 with the intent to buy and reposition distressed apartment buildings. So far Lion has amassed a portfolio of roughly four buildings with 63 units.

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Biggest Challenge: Managing the market in terms of staying ahead of the economic downturn, keeping our buildings well occupied and keeping cash flowing. The increasing unemployment has hit us, as it has all property owners, in that tenants have lost their jobs or have decided to cut back on their expenditures toward rent.

Secret of Success: First, we operate a lean firm, which allows us to underwrite transactions and make decisions quickly and efficiently. Second, we are fortunate in that we raised a pool of capital that allows us to close deals on an expedited basis. Finally, the principals have experience in multiple disciplines.

Recession's Silver Lining: The game of musical chairs has ended. The market is going through a painful period of deleveraging. (It) was inevitable given the appreciation of values over the course of the past five to 10 years, which were completely out of sync with income growth.

Stress Release: I enjoy spending time with my wife and playing with my daughter, Liana. She loves the swings at the park. I also try to get in some tennis when I can.

Recent Splurge: We still like to go to the movies and out to dinner with friends. We have certainly cut back on things, though. We have cut back on vacations quite a bit.

* JEFF WELLER, 33

Co-President

Lion Real Estate Group LLC, downtown L.A.

Weller co-founded Lion with Mory Barak after leaving CB Richard Ellis Group Inc. in Los Angeles, where he served as a vice president. He also advises other companies and is a Colorado real estate investor.

Notable Recent Deal:

(The purchase of) 920 Wilcox Ave. was a fun deal because there were so many intricacies. We had to acquire the notes all cash and then start the process of foreclosure on an international real estate developer who was known to be a wild card. We ran a risk of being tied up in litigation.

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Secret of Success: We are entrepreneurs at heart. We take in all the facts and pull our head out of the herd and make commonsense decisions. We believe in buying on bad news, and selling on good news.

Sage Advice: My father, who was in the food industry, always told me that people need to eat and a place to live.

Recession's Silver Lining: This is a great time to start a business because you have less competition and more deals to look at. In 2006 we would never dreamed of owning our portfolio of properties at the basis we have today.

Stress Release: I enjoy time with my wife, Christine, and our two children, Caroline and Hayes. I also attempt to play golf when time permits.

Recent Splurge: We still tend to eat out with friends and take our kids out on adventures. That being said, we are conscious of the market and keep our eye on the bottom line.

* JOHN LONG, 61

Chief Executive

Highridge Partners Inc., El Segundo

Long founded Highridge in 1978 and the company has built a portfolio worth more than $7 billion. In the last year, Long has put together a $500 million fund and used it to purchase several residential subdivisions in California.

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Biggest Challenge: The bid-ask spread is extremely wide and creative solutions to bridge the gap must be developed in almost every instance. In most cases, the relationship between debt, equity and the operating sponsor must be restructured and fresh capital committed.

Notable Recent Deal: Buying over 600 finished single-family lots at a fraction of infrastructure costs with the land thrown in for free on occasion.

Secret to Success: Patience; from being on the sidelines since 2002, the itch to jump in too early was tempting. However, solid grounding in research, analytics and rational thinking reined me in.

Waiting Game: Thus far, while we have invested a lot of time and money in due diligence, none of the commercial deals we have been interested in have penciled out. Sellers are still hanging on and the lenders are helping them do so.

Recession's Silver Lining: Common sense has been rewarded. And we have been reminded of what's really of value--our families, our partners and our true friends--things that can't be lost.

Stress Release: Travel, ski, philanthrophy.

Sacrifice: Bought a new hybrid. Given up the desire to drive a gas guzzler.

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Brokers

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EARLIER this month, veteran commercial real estate broker Bob Safai took his first long vacation in 17 years. Unlike some other brokers in town, he actually needed a break.

Safai, 47, has been involved in the sales of L.A. properties owned by Louis Gonda, a one-time Wealthiest Angeleno whose fortune in American International Group Inc. stock was wiped out when the insurer nearly went bankrupt last year.

In one deal, Safai handled the $44 million sale of a Miracle Mile-area office complex, one of the biggest commercial real estate transactions of the year in Los Angeles.

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Safai, who co-founded brokerage Madison Partners in 1996, said that while business is down this year, he still could complete $200 million in deals. Pretty good for one of the worst real estate slumps in decades, though just a fraction of the $2 billion he cleared in one year at the height of the boom.

"It feels fine. Hey, them are guys doing nothing," said Safai in a phone interview from the French Riviera, where he was vacationing. "Perspective is a great thing. If you did $2 billion of business and didn't put any money away and save for this happening, tough luck. But if you did, and you are passionate about the game, you are going to be in it."

Safai specializes in investment sales, though during the downturn he has begun to do more leases, which he calls "the bread and butter" of the brokerage business. It's something he had experience with early in his career. The Glendale native graduated from USC in 1986 with a degree in business administration and finance, and one of his first jobs was with Beitler Commercial Realty Services, where he brokered lease deals. But an investment deal he completed in 1990 whetted his appetite for what would later become his main line of work.

'I found what I wanted to do," said Safai. "Any broker that is in real estate loves the hunt."

The Gonda sale is emblematic of the "hunt" and the business Madison Partners has become known liar after a decade of solid growth. (The company now has 22 brokers spread between offices in Century City and Brentwood.)

Safai got the listing and was later about to sell the property at 6310 and 6330 San Vicente Blvd. to a joint venture of PRP Real Estate Advisors and Cambra Realty because of longstanding relationships with both sides of the deal. He also marketed the property to only a select group of real estate players who'd be able to close on the purchase.

Still, the decision to sell by Gonda, who received his AIG stock nearly 20 years ago in the sale of an airplane leasing company he co-founded, gives Safai pause.

"It's all very scary; forces beyond nature have affected many people in this downturn," he said. "Some of the smartest guys that have created wealth have lost massive amounts of wealth. You try to be cautious."

* BOB SAFAI, 47

President

Madison Partners, Brentwood

Founded brokerage Madison Partners in 1996 and has sold several high-profile buildings during the recession, including a large office property for former billionaire Louis Gonda.

Biggest Challenge: There is an educational process in which sellers and buyers need to come to an understanding of where market values are. The lack of data points in a downturn often creates difficulty in bridging this gap.

Toughest Recent Deal: 6310-6330 San Vicente Blvd. (Gonda buildings that sold for $44 million). Although these buildings had existing financing, they also had 40 percent of the project due to roll over within an 18-month period. This, coupled with a four-and-a-half-month loan assumption process, made it extremely challenging to close this transaction.

Secret of Success: The greatest teacher in real estate has been history. Real estate goes in cycles and history tends to repeat itself.

Recession's Silver Lining: Having more time to spend with my family and not working on the weekends.

End of Downturn: I think we are two years in on a five-year turnaround.

Stress Release: While others play golf as a stress reliever, when I played golf, it created more stress for me. I choose to play poker as my hobby to take my mind off the stresses of work. It's a very challenging game, and a metaphor for life.

Recent Splurge: With age comes the realization that needs and wants are completely different. My desire for things I want has diminished because I've been fortunate to have been provided with all that I need.

CARL MUHLSTEIN, 55

Executive Vice President

Cushman & Wakefield Inc., downtown L.A.

The veteran real estate broker has completed several notable leases in the past year, including restructuring the lease of KTLA (Channel 5) at the Sunset Bronson Studios in Hollywood.

Biggest Challenge: Developing contextual information to assist clients making tough decisions. A lack of market comparables, sales activity and tenant movement creates new challenges.

Toughest Recent Deal: There is no such thing as a tough transaction. We are in a service business. Every transaction is important and a cookie-cutter approach will not lead to repeat business.

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Leasing Pitfalls: Too many brokers are process driven and don't fully understand their client's business in light of the property and capital markets. It's not just rent. Tenants are more interested in what their work environment can do for their competitive advantage, branding, employee retention, GAAP and tax impact, and future flexibility.

Secret of Success: I am known to brainstorm and collaborate with a Wide variety of government officials, architects, contractors, lenders, attorneys, owners, tenants and competitors. There is no monopoly on intelligence in these trying times. Devoting personal time for reading is helpful, too.

Stress Release: Nothing beats a solo road bike ride along the coast and over the Santa Monica Mountains or deep into the Conejo Valley on a clear early morning. Dancing on pedals up a hill soothes the nerves.

Recession's Silver Lining: The real estate industry was starting to develop overcapacity and with that, looser business practices and mediocre work product. This isn't amateur hour.

Recent Splurge: This first-born of European, Depression-era and WWII survivor parents learned to control his splurges early on. (But) life is too short to give up fine wine, chocolate, great food and a custom-fitted Colnago (road bike).

* KEVIN SHANNON, 50

Vice Chairman

CB Richard Ellis Group Inc., Torrance

The veteran real estate broker has spent the better part of three decades in the business, with a focus on investment sales. He is CB's top West Coast producer for three years running.

Biggest Challenge: To convince capital to get off the sidelines. A lot of capital is trying to time the bottom. I truly believe the buyers that are stepping up today on the few deals being sold are getting great long-term value.

Notable Deals: The $73 million sale of the Ford Design Center is the second largest office sale in Orange County in 2009. The pending 2 North Lake office sale in Pasadena may be the largest in Los Angeles year-to-date when it closes in September.

Secret of Success: I do deals all over the West Coast and I think that the macroview of the capital markets is frequently an advantage. I also have a great sales team that does a great job of making me look good. This business is about hard work, teamwork, integrity and a little bit of Irish luck.

Reliable Advice: The best time to be greedy is when everyone has the most fear.

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Stress Release: I'm the new president of Lunada Bay Little League, which I clearly have more time for in this current environment. I've been able to go to every summer ballgame and club soccer match my 9-year-old son has played in. I love taking the family to Dodger and Galaxy games as well.

Recession's Silver Lining: I've gotten to spend more time with my family, which is great. I have four children, ages 9, 7, 5 and 3, so there is always plenty to do on the home front.

Recent Splurge: I haven't cut back on any of the family indulgences, though my closing-party and limo tabs are off by over 80 percent. My office manager is rooting hard for those expenses to go up.

LEGAL

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TRANSACTIONAL real estate attorney Steven Lurie has handled $1 billion in deals over the last year. The big number surprised even him.

However, a willingness to adapt his practice to the changing climate has helped the 47-year-old partner at Greenberg Glusker Fields Claman & Machtinger LLP weather the storm.

Lurie, who's spent his entire career at the firm, brushed up on the sort of skills he used in the downturn of the early 1990s--such as loan modification strategies and deed-in-lieu agreements.

"I had to sharpen up on those kinds of things," he said.

It has also helped that Lurie has built a solid client roster, which includes industrial real estate developer Majestic Realty Co., shopping center developer J.S. Rosenfield & Co. and commercial real estate company Transpacific Development Co.

Big-name clients such as those have been fruitful for Lurie. In the last year he has helped those clients close large transactions, including representing Majestic in the refinancing of more than 20 loans totaling in excess of $225 million.

"I think I'm fortunate that I've got relationships, longstanding relationships," Lurie said. "I've represented them for a long time and am fortunate enough that they have the chance to take advantage of opportunities in these times."

Before the slump, most of Lurie's business focused on what he called "the good economy stuff," such as acquisition financing. While he still has clients who are positioned to buy real estate, handling loan workouts, in which borrowers and lenders hammer out new loan terms, has steadily become a larger part of his practice. Lurie estimated that 20 percent of his business now centers on workouts.

In one recent loan workout, Lurie handled the restructuring of one client's loan on a golf course it owned in Northern Nevada. The golf course, which closes during the winter, wasn't generating enough cash to make its monthly payments, so Lurie negotiated unique new terms with the lender that allow for the borrower's loan payments to be lowered during the winter.

"From the lender's standpoint, it is looking at this and saying, 'What's the best way to keep the value of its security strong and keep it operating'?" The owner gets some time. It's a win-win," Lurie said.

Lurie, who grew up in West Los Angeles and went to UC Berkeley and later the university's Boalt Hall School of Law, said that he enjoys the exciting nature of real estate law.

"I just like doing deals," he said. "You are solving problems, usually at a fast pace. It's negotiating and overcoming obstacles and figuring out ways to get things done."

* STEVEN LURIE, 47

Partner

Greenberg Glusker Fields Claman & Machtinger LLP, Century City

The real estate attorney has a prominent developer- and investor-based transactional real estate practice. He recently represented Majestic Realty Co. in the refinancing of more than $225 million in debt on more than 20 industrial and retail properties.

Biggest Challenge: By far, the unprecedented frozen credit market.

Notable Recent Deal: Represented Transpacific Development Co. in the $73 million purchase of 270,000-square-foot One and Three Premier Place, home to corporate headquarters of Taco Bell and Ford Motor Co. in Irvine.

Secret of Success: I see myself as mere than just an attorney. I try to look at the big picture for my clients.

Sage Advice: From the time I went to his basketball camp as a kid, I've been an admirer of John Wooden. One of his famous quotes that I like is: "Things turn out best for the people who make the best of the way things turn out."

Stress Release: I play basketball, including in a competitive lawyers league. Also, over the last eight years, I have thoroughly enjoyed coaching many of my son's and daughter's basketball, baseball and soccer teams.

Recent Splurge: I have a standing Tuesday lunch with some friends for the $1 taco day at a local restaurant. I have given up ordering anything else on the menu.

* LEWIS FELDMAN, 53

Managing Partner/L.A. Chair

Goodwin Procter LLP, Century City

A partner in the law firm's business law department, specializing in real estate, capital, Feldman keeps active on both sides of the market: pushing through deals and helping lenders take back projects from failing developers.

Notable Recent Deal: Emerson College's $85 million Hollywood Campus. This is an ongoing transaction that involves establishing and building a Thomas Mayne-designed entertainment education campus.

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Tough Recent Deal: The foreclosure of the Chinatown Blossom Plaza project in downtown Los Angeles for Prime Property Fund II. (A fully entitled mixed-use development in Chinatown.) When the developer failed to obtain necessary financing and then declared bankruptcy, we successfully defeated the bankruptcy and obtained the property for the client. The good news is that the project will move forward as credit markets stabilize.

Secret of Success: I do my best to be a true counselor, a consigliere and an accomplished technician. Although references to the Mafia are probably risky to make, I still admire Robert Duvall's character, Tom Hagen, in "The Godfather."

Sage Advice: I focus on Winston Churchill's simple statement during the bombing of London by the Nazis: "Never give up. Never, ever give up."

Recession's Silver Lining: I think that our professional services and investment banking communities became more bloated than Moby Dick at an all-you-can-eat fish buffet at the Vegas Venetian. As people became wealthy, they became arrogant and actually believed their own bullshit.

Stress Release: I hang with my 11-year-old identical twin boys, and we fish and camp. We just came back from a week of fishing on the Kenai River in Southwest Alaska.

Recent Splurge: Our family is pretty conservative that way. I have young kids, college tuition in the future, parents and in-laws to be mindful of, and my plastic surgery savings account to fund as I begin to look more and more like a shar pei.

* CHAUNCEY SWALWELL, 45

Partner

Stroock & Stroock & Lavan LLP, Century City

The veteran real estate attorney at Stroock & Stroock has managed to stay active during the downturn, handling more than $500 million in loan workouts and restructurings.

Biggest Challenge: Helping clients understand and deal with the continuing paralysis in the market, especially on the debt side. Many clients are particularly frustrated with what they perceive as a lack of focus and willingness by many lenders to work through problem Properties.

Tough Recent Deal: one deal that just closed: a borrower's purchase of its own senior debt from a commercial mortgage-backed securities trust at a severe discount. It involved months of negotiations with the special servicer. It was a shopping center property and we are purchasing the notes for less than 10 cents on the dollar.

Secret of Success: The ability to "cut to the chase" to find creative solutions. I'm also not afraid to look to the simplest solutions first; many lawyers have a tendency to make things complicated.

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Sage Advice: Take the work and your clients' problems seriously, but never take yourself too seriously.

Recent Splurge: Flowers for my wife of 20 years.

Recession Cutback: Any hope of retiring any time soon!

FINANCE

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SINCE Jeff Friedman co-founded Mesa West Capital in 2004, almost everything has changed for the West L.A. commercial real estate lender--from its business model to its competition.

The days of doing deals with 75 percent loan-to-value ratios are long gone. So are the competitors, who have been driven to the sidelines or out of the business by the global recession. Indeed, Friedman's company, backed by investments from public pension funds, is one of the few private lenders doing deals.

That Friedman, 47, is still able to make loans is a testament to the foresight he exhibited when the commercial real estate lending business went into overdrive. Friedman watched as real estate values soared and loan-to-value ratios spiraled up to around 90 percent. It didn't feel right.

"Our views were contrary to the popular belief that there was systematic change in real estate values and leverage," said Friedman, who co-founded his company with Mark Zytko, a former colleague at financial services company Credit Suisse First Boston. "The way we adjusted to it was by not participating at the same level of most our competitors."

The decision proved to be a smart one; when the market collapsed, Mesa West was less exposed to bad loans.

The company's first $207 million fund, which it leveraged up to $1 billion using credit lines with commercial and investment banks, was invested from 2005 to 2007. Friedman said that the fund is still marginally exposed to the collapse. The company owns four properties through foreclosure and also is doing "a ton of workouts" to restructure loan terms.

Still, the company has begun lending from a second fund of about $420 million, which has a total of $1.5 billion in lending capacity.

The company generally makes loans of $10 million to $50 million with interest rates of 8 percent to 10 percent on only about 60 percent to 65 percent of a property's underlying value. Both funds have focused on short-term, first mortgage bridge loans on performing office, multifamily, retail, industrial and hospitality projects.

Friedman is used to difficult situations. In 2000, after his stint with Credit Suisse First Boston in New York, the L.A. native and UCLA graduate moved back home to work for L.A. real estate developer Robert Maguire.

His friends told him he was crazy to take the job; Friedman has a reserved personality that contrasts with Maguire's reputation as a fiery businessman. However, he said the job worked out well, as he focused on transactions, the company's debt obligations and its 2003 initial public offering.

"I learned a lot from Rob. He does have a great vision. He is very bright and he's a leader," Friedman said. 'I went there at a time when Gas Co. Tower was in bankruptcy, and we had a bunch of other debt that was coming due. People that knew me and knew Rob thought I was crazy. For me the opportunity was tremendous."

* JEFF FRIEDMAN, 47

Co-Chief Executive

Mesa West Capital LLC, West L.A.

The veteran real estate player co-founded Mesa West in 2004 to make commercial real estate loans. The company recently raised $420 million in institutional capital for its second fund, giving it $1.5 billion of lending capacity.

Big Challenge: Closing this ($420 million fund) earlier this year was brutal. We had a group of state pension funds who had circled our fund, but getting them closed was no less difficult than moving a mountain.

Notable Recent Deal: We provided the Magellan Group with a $25.6 million first mortgage loan for the recapitalization of Grace Place, a half-million-square-foot industrial complex in Commerce. There was a tremendous amount of documentation and Magellan needed to close the deal in 30 days.

Sage Advice: This is a great time to hang out with the old-school guys. Contrary to the popular view during the past few years, we have once again learned that there is no new paradigm in real estate investing. Real estate markets-as well as all markets--are cyclical.

Recession's Silver Lining: There is a great expression that is appropriate in these times: when the tide comes in everyone appears clothed, when the tide goes out you can see who is naked.

Stress Release: Chasing around my 9- and 6-year-old kids ... and letting my wife catch me. Our children are at that wonderful age of innocence. I also love sailboat racing and fortunately my financial well-being does not depend on my accomplishments on the water.

* MARK ZYTKO, 42

Co-Chief Executive

Mesa West Capital LLC, West L.A.

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Zytco, co-founder of Mesa West Capital with partner Jeff Friedman, has more than two decades of experience in real estate, previously having headed Credit Suisse First Boston's West Coast region, where he originated on-balance sheet debt and equity, commercial mortgage-backed securities and mezzanine loans.

Secret of Success: Mesa West probably did less sexy deals than many of our competitors during the hyperliquidity cycle, but as a result of choosing our borrowers and our deals carefully, we have the incredible opportunity to capitalize on deals in this time of lower property prices and premium yields.

Sage Advice: We have always said, "Would you or I do this with our own money?" rather than, "is everyone else doing this?"

Recession's Silver Lining: During the last few years, anyone who could get in the way of a deal could make money, not because they executed well but because the market was pushing further out of control.

End of Downturn: The causes are different this time but look at the recession in the 1990s. The recession began in 1990 and we didn't have real strength until 1998 or so. This cycle is still in the first few innings. We may see the bottom or beginnings of recovery in 2011, but that real strength won't be seen until 2012 and beyond.

Stress Release: I spend time with my wife and 4-year-old twin boys to recharge and soak up their energy and zest for life. I like fly fishing because it is a true getaway, and a quiet place where I can think and relax.

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DEVELOPMENT

* STEVE SOBOROFF, 61

Chairman and Chief Executive

Playa Vista, Playa Vista

An adviser to Richard Riordan during his term as mayor of Los Angeles, Soboroff joined the Playa Vista development team in 2001 after his own unsuccessful run for mayor. He's been far more successful at the 1,100-acre master-planned Westside community, where construction goes on and residents continue to arrive despite the recession.

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Biggest Challenge: Getting banks to make secure loans to willing Playa Vista homebuyers. (it) takes new residents longer to get their loans completed. Banks now look at the buyers' income from salary as a very important factor versus the security of the real estate.

Chief Frustration: The government has put so much money into the banking system, and the banks have used the money to bolster their capital ratings versus lending it out.

Signs of Progress: Incredible new parks have opened (at Playa Vista). A small market has opened. A farmers' market on Saturdays is incredibly popular. A K-5 elementary school was approved by the school board (and) an urgent care center opened. The No. 1 NBA draft pick, Blake Griffin, lives in Playa Vista.

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Still to Be gone: We are completing the entitlement package for the remaining 90 acres of the original 1,100 Howard Hughes airport acreage and then that will be sold.

Sage Advice: Historically, in tough times, better to work smart hours than long hours.

Recession's Silver Lining: There has been a healthy re-evaluation of what we really need and how much it is worth.

Stress Release: Family: five kids, one wife, five dogs. Drive: Tesla Roadster. Read: Kindle owner. I collect typewriters that were owned by famous people--Ernest Hemingway, Jack London, Tennessee Williams, John Lennon, Jim Murray and George Bernard Shaw. Hike, golf and sleep!

* SONNY ASTANI, 55

President

Astani Enterprises Inc., Beverly Hills

The longtime apartment developer swung for the fences with his most ambitious project-Concerto, a planned 629-unit condominium complex in two downtown high-rises and one loft building. He has struggled to keep the project afloat, but unlike other developers has not abandoned his effort; construction is wrapping up on one tower and the lofts.

Biggest Challenge: Trying to finish and sell a $300 million multiphase, high-rise mixed-use project in downtown L.A. all while expecting that my construction lender may be taken over by the FDIC any Friday at 6 p.m.

Notable Deals: I was very fortunate to have refinanced a half-dozen of our larger apartment buildings with Freddie Mac before the meltdown occurred.

Secret of Success: We are a small, flexible and lean operator. We are one of a few groups in L.A. that is an owner, developer, builder and manager of multifamily properties and condominiums.

Sage Advice: I usually talk to my wife, she knows everything.

Stress Release: I have practiced martial arts, tai chi and yoga for the past 20 years. But I have recently taken up wrestling and ocean swimming, which is an indication of my state of mind: "survival."

Recession's Silver Lining: People in general are more reasonable and easier to work with, the exception being my kids and my bank.

End of Downturn: Sadly it will come to an end when we have become so accustomed to it that we stop asking the question.

Recent Splurge: (On) trainers and shrinks. I have given up spontaneous and impulsive shopping.

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