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