It had been a day filled with joy and elation in Nathan Hochman’s campaign quarters. This former U.S. prosecutor was on the threshold of a significant political victory, ready to outfox George Gascón for the position of District Attorney of Los Angeles County. Realty mavens in the area had already begun their early celebrations. Among them, Gerald Marcil, the top donor to Hochman’s campaign and a prominent figure in the local real estate scene, was reveling in what looked like a successful campaign.
Marcil, who founded and currently heads Palos Verdes Investments, a multifamily firm, has a long-established tradition of being in a local South Bay bar with his close allies, watching the electoral results roll in. He demonstrates a resilient presence in the real estate industry, accumulating over five decades of experience. As the owner of a portfolio consisting of approximately 7,000 housing units, he is continuously on the move, scouting for prospective real estate ventures.
Earlier this year, Marcil bolstered the portfolio of Palos Verdes Investments by acquiring a residential community of 254 units in Anaheim, demonstrating his knack for savvy investments, even outside of L.A. Regardless of his successful business strides, he is apprehensive about the direction in which the state of California is being steered.
The surprising victory of Hochman seems to have initiated an abrupt political shift, diverging from the earlier election of the progressive-leaning Gascón. This change is all the more startling when considering that Californians recently shot down another progressive cause, reopening deliberations on rental control. Although it would be too hasty to extrapolate this into a more substantial shift towards conservatism, the election’s outcome suggests a rise in property owners’ influence in the state’s political landscape.
Making a name for oneself in Southern California’s volatile housing market is not for the weak-hearted, an aspect Marcil is incredibly familiar with. In his view, conscientious investment and redevelopment in B areas could pave the way for profitable outcomes, by garnering strong tenants.
Marcil has established a solid reputation in his hometown, Torrance; a site of his birth in 1953 and where he presently serves on the local YMCA board. Aside from his real estate pursuits, he has displayed a strong commitment to local education institutions, contributing to the area’s school district, and being a considerable donor to the Switzer Center, a special needs private school.
Just before the general election, despite having a lot at stake on account of Hochman’s election, Marcil appeared composed and resolute. The overall property sector rejoiced at Hochman’s successful campaign. Residential agents, upscale developers, and commercial landlords all rang in agreement with Hochman’s victory.
Marcil’s support for Hochman took center stage at the meetings of New Majority, a group composed of about 300 business-oriented conservative leaders established in Orange County in 1999. Today, this organization has become California’s top-ranking Republican political action committee, and Marcil has served as chair of the L.A. County chapter for a decade.
The ascension of Hochman to the role of District Attorney was not merely based on promises. Hochman voiced an intent to restore conventional checks and balances to the county’s justice system, winning the election comfortably with 60 percent of the votes on November 5.
Previous political landscapes looked different. After George Floyd’s death, the past District Attorney Gascón had effectively campaigned on a liberal policy emphasizing the need for criminal justice reform and secured a win in the 2020 election. However, a shift in public perception about crime dynamics in L.A. County contributed significantly to his declining appeal among voters.
Assuming the District Attorney role, Hochman now heads a team of nearly 1,000 deputy district attorneys responsible for prosecuting serious crimes across the county. To Marcil, Hochman’s win signifies a shift in the national sentiment.
Marcil’s personal experience, transitioning from the role of a machinist to a property developer, has been instrumental in shaping his political leanings. He sees rental control as a superficial remedy that fails to address the structural issues driving California’s housing crisis, primarily resistance to development.
Despite demonstrating a successful business venture, he is critical of the state’s current fiscal disarray, which he believes is a primary contributor to the exodus of investors out of California, often attributed to a challenging business environment.
Simultaneously, he recognizes the imbalance between demand and supply in the housing market, a significant driver of escalating housing crisis. However, he also indicates that an atmosphere of excessive regulatory opposition can constitute a deterrent to investors, thereby exacerbating the supply-demand problem by discouraging the provision of more housing.