Douglas Wilson Companies Spring 2018 Newsletter

DouglasWilsonCompanies

Douglas Wilson Companies Spring 2018 Newsletter

NEWSLETTER

SPRING 2018

SPECIALIZED

SERVICES

Court - Appointed Fiduciary

Development Services

IN REAL ESTATE-

RICH CALIFORNIA,

WEALTH TRANSFER

ISSUES LOOM

HOW DO YOU TRANSITION

YOUR ASSETS?

Land Entitlements

Asset/Property Management

Assignment for Benefit of

Creditors

Resort/Hotel Management

Receiverships

Trustee

Brokerage & Disposition

Referee

Forensic Accounting

Due Diligence

Chief Restructuring Officer

Special Master

Liquidating Trustee

Bankruptcy Examiner

Expert Testimony

Trillions in real estate legacy wealth, are now

in play, as the baby boom population ages

out of its “wealth accumulation” phase into

its “wealth transition“ process.

DWC is now assisting some of California’s

most prominent families to proactively

anticipate and resolve business issues

specific to their real estate wealth. Acting as

a real estate resource, DWC is very careful

not to displace the family’s legal or other

fiduciary/financial advisors.

Having served as a court-appointed fiduciary

for decades, the DWC team is highly sensitive

to loyalty and confidentiality issues that are

unique to legacy clientele. Understanding

that the illiquidity of real estate wealth

creates distinct issues, we also recognize the

inclination to maintain it in the same species

of legacy asset.

Based on our deep real estate experience,

in all cycles, we have identified two distinct

philosophies in preserving and enhancing a

legacy portfolio:

THE “AS IS” APPROACH

The focus is purely on cash flow

preservation with limited redirection or

application of new capital or reconfiguration

of the asset base. This philosophy

implements an ongoing attempt to keep

operational costs low, avoiding tenant

turnover, and suppressing property

tax reassessment by minimal capital

improvement to the property. Typically these

portfolios consist of B and C classes where

this is acceptable.

THE VALUE ADD / ENTREPRENEURIAL

APPROACH

To improve portfolio value through a

combination of new capital investment

and active repositioning through a mix of

re-tenanting, re-entitling, refinancing or

reallocation of assets. Typically, these legacy

portfolios consist of more varied assets

including but not limited to class A buildings

and properties in the path of redevelopment.

Each portfolio is unique to its own attributes

and characteristics and to the philosophy

of the family. DWC is careful to collaborate

with stakeholders and their advisors to

appropriately create options and to ultimately

transition real estate assets to the acquiring

generation.

For inquiries on confidential matters

involving asset transition, please contact

John L. Morrell at (619) 906-4330 or

jmorrell@douglaswilson.com.

Highest and Best Use Analysis

DOUGLASWILSON.COM

IN THIS

ISSUE:

ADVISORY SERVICES EXPANSION

With DWC’s long heritage working on complex real

estate matters on a national basis, the current

focus to expand our advisory services platform is

a natural evolution for the firm.

WHITE COLLAR CRIME

Scams and frauds tend to flourish during good

times. Returns flow in nicely, camouflaged by

overall economic prosperity, soaring markets

and record real estate values.

Problem Resolution & Fiduciary Services | Legacy Asset Management | Real Estate Advisory | Real Estate Development | Senior Living | Brokerage


WHITE-COLLAR CRIME THRIVES ON A FROTHY ECONOMY

Problem Resolution & Fiduciary Services

Scams & frauds tend to flourish

during good times. Returns

flow in nicely, camouflaged by

overall economic prosperity,

soaring markets & record real

estate values. Red flags may go

unnoticed until it’s too late.

Since 1990, DWC has

untangled a number of frauds

and Ponzi schemes in its

White Collar Crime

Prosecutions

11,500

8,625

5,750

2,875

role as a court-appointed

Receiver. These crimes don’t

just hurt individuals, families

and businesses, but cause

great harm to the wealth and

resources of the nation.

As today’s frothy economy

starts to inevitably abate, DWC

is gearing up for an uptick in the

discovery of white-collar crime.

0 -1

1990 1995 2000 2005 2010 2015

*Shaded areas indicate recession

3%

2

1

0

Leading Index for the U.S.

Large-scale financial fraud

in health care is of particular

concern, with Medicare and

Medicaid malfeasance in

the crosshairs of federal

prosecutors. Likewise, we see

criminal justice resources

focusing on opioid fraud and

abuse detection.

Also emerging as a threat to

the integrity of the country’s

financial system is the illegal

manipulation of securities

markets. Some of the most

damaging cases involve a

scheme called “spoofing”: the

illegal practice of placing an

order for a futures contract

that the trader does not intend

to execute.

RECENTLY, THE DEPT.

OF JUSTICE CHARGED

EIGHT INDIVIDUAL FOR

MANIPULATING FUTURES

MARKETS AND BROUGHT THE

LARGEST FUTURES MARKET

CRIMINAL ENFORCEMENT

ACTION IN HISTORY.

Earlier this year in San Diego,

Deputy Attorney General Rod

Rosenstein addressed the

American Bar Association’s

National Institute on White

Collar Crime who spoke on

such issues. DWC was honored

to attend as newly inducted

members of the National

Association of Federal Equity

Receivers (NAFER).

CONNECTING

DWC Team on the Move

FOCUS ON EXPANDING OUR ADVISORY SERVICES PLATFORM

Real Estate Advisory Services

DWC CEO Douglas P. Wilson

and President John L. Morrell

have been formally inducted

into the National Association

of Federal Equity Receivers

(NAFER), an elite organization

for receivers and legal counsel

dealing with remedies for

white-collar crime that are

subject to federal jurisdiction.

DWC Chief Operating Officer

Nicholas Wilson has been

appointed as a director of the

California Receivers Forum,

Los Angeles/Orange County

chapter.

DWC Senior Managing Director

Michele Vives was showcased

as one of the Most Influential

Female Professionals in

San Diego County by The

Daily Transcript, San Diego’s

weekday newspaper focused

on business and real estate

news since 1882.

With DWC’s long heritage

working on complex real

estate matters on a national

basis, the current focus to

expand our advisory services

platform is a natural evolution

for the firm. Our clients have

varied over the years and

have included family offices,

REITs, private foundations,

banks, special servicers and

private equity firms. Upon

historic review, we have found

that the following three areas

are at the center of most

assignments.

ENTITLEMENTS

The ability to navigate

the increasingly complex

process of securing and/or

preserving entitlements is the

foundation of any real estate

project. Great value is created

(especially in California) when

entitlements are approved

which is typically a long

process that combines the

ability to manage a process

that often involves a dozen

different city, county and

federal agencies. Additionally,

local planning groups are

often a key part of the

process as their support

helps on all levels from

staff support to political

endorsement.

MANY LOOK TO DWC AND OUR

INDUSTRY LEADING TEAM OF

EXPERTS TO PROVIDE VALUE

TO THEIR PROJECTS.

ENVIRONMENTAL

There are few projects that

do not have some form of

environmental issue. This

is particularly relevant on

urban properties that are in

the path of new development.

Our extensive experience

with coordinating the proper

professionals to evaluate

an environmental situation

and devise and monitor the

appropriate remediation plan

continues to be an active part

of our advisory services.

NAVIGATING AGENCIES

An active part of the majority

of our assignments has been

the ability to coordinate the

variety of governmental

agencies that are often

involved in our assignments.

Understanding how to deal

with the various agencies

requires the ability to respect

their process but to remain

focused on achieving the

desired end result.

For additional information

on DWC’s Advisory Services,

please contact Douglas Wilson

at (619) 641-1141 or

dwilson@douglaswilson.com.

SPRING 2018 | DOUGLAS WILSON COMPANIES


REAL ESTATE TRANSACTIONS

Brokerage

DWC’s brokerage team remains focused on brokering unique assets for public and private

entities. Three recent transactions illustrate the team’s capabilities in sell/leaseback, taxdeferred,

multi-market property exchanges.

For additional information, contact Alan Scott at (619) 906-4356 or ascott@douglaswilson.com

Sell/Leaseback Industrial Complex

San Diego, California

Recently SOLD! DWC brokerage

worked with one of San Diego’s

premier arts organizations to handle

a sell-leaseback on a 37,316-square

foot building, ripe with redevelopment

potential.

Pitney Bowes Presort Services Building

Omaha, Nebraska

Utilizing its expertise in tax-deferred,

multi-market property exchanges, DWC

is working with a long-term client to

market and exchange a 92,992-square

foot complex.

Premier Commercial Nursery Property

San Marcos, California

Recently SOLD! A turnkey state-of-theart

125,000-square foot greenhouse

operation on four acres within San

Diego County.

AAA Net Leased Facility

San Francisco Bay Area, California

DWC is currently marketing

this single-tenant, NNN leased

investment, with potential for future

medical or retail uses.

Las Vegas

330 E Warm Springs Road

Suite B43

Las Vegas, NV 89119

Phoenix

502 South College Avenue

Suite 300

Tempe, AZ 85281

San Diego

1620 Fifth Avenue

Suite 400

San Diego, CA 92101

San Francisco

50 California Street

Suite 1500

San Francisco, CA 94111

SIENNA AT OTAY RANCH - AN UPMARKET SENIOR

HOUSING COMMUNITY

Senior Living

Washington, D.C.

1200 G Street NW

Suite 800

Washington, DC 20005

For the past few years, DWC has been creating new business platforms to respond to

opportunities created by the aging population: America’s “silver tsunami.”

In addition to its Legacy Asset Management division, DWC has introduced a new series

of upmarket senior housing in partnership with a best-in-class operator, Milestone

Retirement Communities, LLC.

This fall, the first of these long-term hold assets - Sienna at Otay Ranch - will open on a vibrant

infill site in Otay Ranch in the city of Chula Vista. Sienna will offer 111 units of contemporary

living, including 85 apartments for assisted living and 26 units for memory care.

Sienna is now accepting reservations and you can find out more at

otayranchseniors.com

For more information on senior living please contact Michele Vives at

(619) 906-4376 or mvives@douglaswilson.com.

For More Information Contact:

John L. Morrell

jmorrell@douglaswilson.com

(619) 906 - 4330


San Diego • Las Vegas • Phoenix • San Francisco • Washington, D.C.

SPRING

2018

A MESSAGE

FROM OUR

CHAIRMAN

& CEO

As we enter the second quarter, our focus continues

to be on opportunities and challenges presented by the

aging population. We are busy meeting with families

(and businesses) now grappling with the imminent

transition of legacy assets, much of it acquired through

real estate investments.

Our experience as a fiduciary makes us an ideal partner

for high net-worth individuals who require absolute

confidentiality. It’s fascinating to take a deep dive into

venerable real estate portfolios that will soon be in the

hands of adult children who may or may not know how

to preserve and maintain these holdings.

In this capacity, we are honored to join existing

teams of trusted advisors in the legal, accounting

and trust professions.

By the end of the year, we will open the doors to the

first in a series of senior housing communities

throughout the Western region. We’re smart enough

to know what we don’t know, so we have an excellent

partner in Milestone Retirement Communities, LLC,

who will handle management and operations.

We thank you for your ongoing relationship with

Douglas Wilson Companies and wish you a

prosperous year ahead.

Sincerely,

Douglas P. Wilson

FIND OUT MORE AT

DOUGLASWILSON.COM

PROBLEM RESOLUTION & FIDUCIARY SERVICES | LEGACY ASSET MANAGEMENT

REAL ESTATE ADVISORY | REAL ESTATE DEVELOPMENT | SENIOR LIVING | BROKERAGE

1620 Fifth Avenue, Suite 400

San Diego, California 92101

DOUGLASWILSON.COM

(619) 641- 1141

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