Page 1

VISIONARIES IN REAL ESTATE & FINANCE Dorene C. Dominguez Les Hiscoe Christopher C. Martin Paul Scialla &

LOS ANGELES VISIONARY OF THE YEAR Steven F. Udvar-Házy C-SUITE QUARTERLY NEW YORK | LOS ANGELES REAL ESTATE & FINANCE SPRING 2018

A NEW BEGINNING FOR MESA VISTA RANCH by T. Boone Pickens

SECOND HOMES

Western Mexico—from La Paz to Riviera Nayarit—is teeming with residential developments including One&Only’s first foray

THE 2018 NEXTGEN 10 PLUS:

NYCEDC President & CEO James Patchett, innovative offices, notable new developments, the newest from the Contra and Wildair team, & more

Cover

Visionary of the Year

CHARLES S. COHEN The real estate mogul and cinephile continues to expand his portfolio, adding hotels, wine, and men’s fashion to his design-driven collection of luxury brands


Hughes Marino


Hughes Marino


C-SUITE QUARTERLY

IF YOU’RE A BUSINESS OWNER, Those who break the mold redefine how YOU NEED US we live, work and play. ON YOUR SIDE.

2018 Greater Los Angeles judging panel

Chuck Davis

Gabe Greenbaum

Prodege, LLC / Swagbucks.com

Pritzker Group Venture Capital

CEO

Partner

2004 Winner

Eva Ho

Brad Jones

Fika Ventures

Redpoint Ventures

General Partner

Bold leaders are courageous, inventive and determined.

2006 Winner

Brian Lee

Co-Founder & Partner

BAM Ventures Our panel of independent judges for Greater 2014 Winner Los Angeles understands the boldness needed to change our world in the most unexpected Jamie Montgomery ways. They will select the long, next generation of estate brokers have For too corporate real had Managing Director entrepreneurial leaders — the Entrepreneur Of conflicting interests, representing both sidesMarch of Capital Partners The Year® 2018 finalists and winners. lease and purchase negotiations.

Semifinalists will be announced on March 30 and finalists on May 14. Then it’s Awards Gala time!

NO MORE.

Chairman & CEO

Snak King Corporation 2007 Winner

Jason Nazar

Co-Founder & CEO Comparably

Kamran Pourzanjani

Upfront Ventures

ClearRock Ventures

Partner

Hughes Marino

Thursday, June 14way | The Beverly real Hilton Hotelis done. That’s because our corporate estate

Renata Simril

President & CEO Please visit www.ey.com/us/eoy/greaterla to brokers only represent tenants and buyers—never landlords. LA84 Foundation purchase tickets, or contact Think of usAshley as the Evans specialatforces of the commercial +1 213 240 7096 real or ashley.evans1@ey.com. estate world.

WE’RE DIFFERENT.

Barry C. Levin

Kara Nortman

2018 Greater Los Angeles Awards We’re Hughes Marino,Gala and we’re changing the

Follow @EY_EOYUS for the latest news and updates and join the conversation using #EOYGLA.

Founder

Gillian Zucker

President of Business Operations LA Clippers

CEO

2005 Winner

Jeff Stibel

Vice Chairman, Dun & Bradstreet Partner, Bryant Stibel 2013 Winner

To learn more about our judges or the Greater Los Angeles program, visit www.ey.com/us/eoy/greaterla.

Recognized nationally by Fortune and Entrepreneur— and ranked the #1 Best Place to Work in multiple major cities, it’s clear we’re challenging the status REAL ESTATE & FINANCE

quo in an industry ripe for disruption.

AND WE’D LOVE TO TALK. Nationally sponsored by

Find out how our award-winning company can help your business thrive—all with an unprecedented 100% guarantee of service and results.

PR sponsor 1.844.NO.CONFLICT | hughesmarino.com

10 — 2 SPRING 2018

Media sponsor

© 2018 Ernst & Young LLP. All Rights Reserved. ED None.

Silver sponsors


VISIONARIES IN REAL ESTATE & FINANCE Dorene C. Dominguez Les Hiscoe Christopher C. Martin Paul Scialla &

NEW YORK VISIONARY OF THE YEAR Charles S. Cohen C-SUITE QUARTERLY LOS ANGELES | NEW YORK REAL ESTATE & FINANCE SPRING 2018

A NEW BEGINNING FOR MESA VISTA RANCH by T. Boone Pickens

SECOND HOMES

Western Mexico—from La Paz to Riviera Nayarit—is teeming with residential developments including One&Only’s first foray

THE 2018 NEXTGEN 10 PLUS:

NYCEDC President & CEO James Patchett, innovative offices, notable new developments, Jon Shook and Vinny Dotolo, & more

Cover 2

Visionary of the Year

STEVEN F. UDVAR-HÁZY The remarkable story of an immigrant from communist Hungary turning a childhood passion for airplanes—symbolic to him of freedom—into an entrepreneurial dream and two billion-dollar companies


THE MAGNIFICENT MARTHA ANN This majestic superyacht boasts the highest Northern European pedigree along with impeccable design credentials. Her elegantly opulent interior displays beautifully crafted millwork, lavish use of marble and silk carpets creating a stunning living environment. Accommodation for up to 18 guests (maximum 12 on charter) in seven staterooms includes a duplex master suite with his and hers bathrooms and private observation lounge. Special features include a cinema, a large gym, a glass elevator serving four decks and a spectacular swimming pool with swim-up bar. A proven oceangoing voyager with a range of 6,000 nautical miles, MARTHA ANN is an exceptional purchase opportunity and is also offered for charter in the Mediterranean this summer. OFFERED FOR SALE AND CHARTER BY BURGESS AS CENTRAL AGENTS

Burgess

NOT FOR SALE OR CHARTER TO US RESIDENTS WHILE IN US WATERS

THE SUPERYACHT SPECIALISTS: SALE & PURCHASE | CHARTER | NEW CONSTRUCTION | MANAGEMENT


LENGTH OVERALL: 230ft (70.1m) BUILT: 2008 (refit 2016) Lürssen, Germany

EXTERIOR DESIGN: Espen Øino Design INTERIOR DESIGN: François Zuretti GUESTS: Up to 18 in 7 staterooms (maximum 12 on charter)

ASKING PRICE: USD 79,000,000

Burgess

BEVERLY HILLS

+1 310 424 5112

NEW YORK

+1 212 223 0410

MIAMI

+1 305 672 0150

LONDON

+44 20 7766 4300

MONACO | DUBAI | HONG KONG | MOSCOW | PALMA | ATHENS | SINGAPORE | SHANGHAI | TOKYO ENQUIRIES@BURGESSYACHTS.COM

WWW.BURGESSYACHTS.COM


C O N S P I C U O U S W I T H O U T

T H E 2 0 1 8

A L L

A L L L U X U R Y

T H E

C O N S U M P T I O N

N E W G R E E N

R E V E R O

C A R

O F

T H E

Y E A R

Karma Automotive

W hen yo u fin ish a hea d of Pors c h e, BM W, Lex u s and Cadilla c , there’s on ly on e th i n g to do.

Be proud.

K A R M A A U T O M O T I V E . C O M


Karma Automotive

AT L A N TA

·

DENVER

NEWPORT BEACH

·

·

DETROIT

NEW YORK

·

·

FORT WORTH

PALM BEACH

·

·

LOS ANGELES

PHILADELPHIA

·

·

MIAMI

TORONTO

·

MONTREAL ·

VANCOUVER


Blade


Blade


Features Spring 2018—Vol. 10 No. 2 Los Angeles & New York Real Estate & Finance

VISIONARIES Los Angeles

VISIONARIES New York

54 DORENE C. DOMINGUEZ is a second-generation real estate executive whose company— Vanir Group of Companies— has delivered over $23B in real estate projects

58 PAUL SCIALLA, founder & CEO of Delos, is disrupting and redefining real estate—a $180 trillion asset class—by placing an emphasis on the nation’s fastest growing industry: health and wellness

56 CHRISTOPHER C. MARTIN, the third-generation leader of 113-year-old AC Martin, is committed to maintaining his family legacy which has played a pivotal role in building Los Angeles—from City Hall to now the tallest building in the Western U.S., the Wilshire Grand

OPINION 40 LUXURY DRAWN FROM DESIGN by Chris Godfrey Principal, HBA Residential 42 NEW YORK CITY DOUBLES DOWN by James Patchett President & CEO, NYCEDC

60 LES HISCOE, CEO of Shawmut Design and Construction— a 1,300-person, $1.2B company—works side-by-side with entrepreneurs and visionaries across industry—from retail to academia and healthcare—as the builder of their dreams

68 62 56 42 TOC - Visionaries

VISIONARIES OF THE YEAR

Los Angeles

New York

STEVEN F. UDVAR-HÁZY immigrated from communist Hungary where a passion for airplanes (which, to him, symbolized freedom) led him to pioneer airplane leasing. He has purchased more than 3,000 commercial jet airplanes since 1973 and is executive chairman of Air Lease Corporation, a company he founded with $16B in AUM.

CHARLES S. COHEN has built on his family’s legacy, expanding his real estate portfolio—including the Pacific Design Center in West Hollywood—as owner, president, and CEO of Cohen Brothers Realty Corporation. Beyond real estate, Cohen has an unwavering passion for independent and foreign language cinema, men’s fashion, wine, and design.

10


Clay Lacy

The ultimate jet charter program. New York, LA and nationwide. From coast to coast, Clay Lacy Preferred is the simplest, most cost-effective charter program, with exclusive benefits and our legendary InFlight service. • Fly anytime with guaranteed availability, priority scheduling and preferential rates • Free yourself from long-term contracts, membership fees and blackout days • Choose spectacular jets from one of America’s largest charter fleets 800.423.2904 | claylacy.com/preferred

W O R L D ’ S M O S T E X P E R I E N C E D O P E R AT O R O F P R I VAT E J E T S

Charter | Management | Jet Sales | Maintenance | FBO

© 2018 Clay Lacy Aviation All rights reserved.


21

Contents

DESIRABLES

35 REAL ESTATE & FINANCE

22 Cigars Four of the finest from the Dominican Republic 24 Style A selection of suggested clothing and accessories for spring plus an update on Louis Vuitton’s new men’s artistic director, Virgil Abloh

28

26 Air News from Boeing and Spike Aerospace plus BLADE expands to LA 28 Land The latest from BMW, Ferrari, Jaguar, and Porsche

30

TOC - Desirables 50

30 Water A pair of yacht debuts from Dynamiq and Flying Flipper 32 Buying Time New releases from Breguet, Hublot, Richard Mille, and Zenith

32 50 NextGen 10 Our first class of movers and shakers under 40 in Real Estate & Finance

Departments 14 Masthead 16 Editor’s Note 18 Contributors 114 C-Suite Advisors™ Index 133 The Network 144 Editorial Index 145 Advertiser Directory 146 C-Suite Quoted

12

46 Breaking Ground Insight and analysis on some of the largest and most prestigious new developments in Los Angeles and New York 44 Innovative Office The CEO’s guide to the office of the future at the Masonic Temple in Glendale, CA— home to CBRE—and Delos’ New York digs


75

Our C-Suite Advisors™ tackle branding and design, HR management, cryptocurrency, residential real estate trends, digital marketing and more

117

C-SUITE ADVISORS™

DESTINATIONS

CULTURE & TASTE

90 James Harwood CoAdvantage

76 The City Suite An inside look at the best of the best: The Pierre Hotel and the NoMad Los Angeles’ finest—and largest—suites

118 Exhibits & Performances Notable spring programming at venues around town

92 Aramis Hernandez & Adam Bohn INC Technologies 94 Jim Freedman & Lauren Antion Intrepid Investment Bankers 96 Geoffrey R. Berlin J.P. Morgan Private Bank 98 Brian K. Werdesheim The Summa Group of Oppenheim & Co. 100 Stacy D. Phillips Blank Rome LLP 102 Sander C. Zagzebski Ervin Cohen & Jessup LLP 104 Charlie Ittner The Darien Group

78 Op-Ed T. Boone Pickens narrates a photographic tour of Mesa Vista Ranch—his $250M estate that he is offering for sale 82 Mexico With more rental and second home offerings than ever before, CSQ bounces around Mexico’s western region—visiting La Paz, Cabo San Lucas, and Riviera Nayarit—for a look at some of the residential projects reshaping the country’s tourism footprint

120 David Kohler chats with CSQ about the new Kohler Experience Center in West Hollywood, CA 122 Proprietors’ Profile [LA] Jon Shook and Vinny Dotolo, who have two expansions on their plate in 2018, sat down to discuss their partnership, the secret to their success, and where they like to eat across Los Angeles

TOC - Advisory

124 Proprietors’ Profile [NY] Jeremiah Stone and Fabián von Hauske—two of New York’s best young chefs—are introducing Una Pizza Napoletana to their Orchard Street portfolio along with Michelin Star Contra and Wildair 126 Fine Dining We stop by debuts in Downtown LA while checking in on a trio of Manhattan classics and something new from Chef Masa 130 Required Reading and Listening A trio of new books and a pair of podcast suggestions

82

106 Mike Schaffer Echo-Factory 108 Brian A. Sidman & Michael Packman Keystone National Properties 110 Jack Turturici, Jr. & Michele Turturici Equity Advisors Real Estate 112 Shay Hughes Hughes Marino

CSQ SPRING 2018

13


LA Cover Steven F. Udvar-Házy Location Century City, CA

NYC Cover Charles S. Cohen Location West Hollywood, CA

Photos Dave Suchanek Adam Bussell

C-SUITE QUARTERLY

CSQ.COM

Publisher & Editorial Director David L. Wurth

Graphic Design & Illustrations Maxim Zudilkin Olesya Plugovenko

CONTENT Managing Editor Matthew Seukunian Editor-at-Large Jason Dean Art Director Dima Kuzmichev Senior Editor Allison Brunner Editorial Assistant Gabriela Capasso Contributing Editors Ben Bloch Ryan Byers Brittany Fuisz Bryan McKrell Contributing Writers Jessica Ferguson Gioia Giacomelli Chris Godfrey Subrina Hudson James Patchett T. Boone Pickens Whitney Vendt David R. Weiss Andrea Zarczynski Photographers Adam Bussell Albert Evangelista Tim Hans Dave Suchanek

14

C-SUITE ADVISORY™ C-Suite Advisors™ Lauren Antion Geoffrey R. Berlin Adam Bohn Jim Freedman James Harwood Aramis Hernandez Shay Hughes Charlie Ittner Michael Packman Stacy D. Phillips Mike Schaffer Brian A. Sidman Jack Turturici, Jr. Michele Turturici Brian K. Werdesheim Sander C. Zagzebski

ADVERTISING & MARKETING

INQUIRIES

Manager, Sales & Marketing Dana Santulli-Muhlgay

Advertising advertising@csq.com

Marketing Assistant Chris Coronel

Advisory advisory@csq.com

OPERATIONS

Editorial editorial@csq.com

Masthead

Special Thanks Brianne Chan Tim Greenleaf Karine Joret Matthew Swift Nadine Watt

C-SUITE MEDIA ADVISORY BOARD Larry Braun Diana Derycz-Kessler Jim Freedman Paul Kessler Steve Lehman Robin Richards James Segil Irv Zuckerman

Manager, Operations & Finance Tiffany Weatherman Operations Consultant 1100 Media Accountant Stan Arutti Legal Scott Barlow Steven C. Sereboff Distribution Right-Way Distribution

Events events@csq.com Reprints reprints@csq.com Subscriptions subscriptions@csq.com

CSQ / C-Suite Quarterly is published four times per year by C-SUITE MEDIA, INC. It is mailed to C-level executives, business owners, and ultra high-net-worth residential communities as well as distributed at upscale locations throughout Los Angeles and New York CIty by C-SUITE MEDIA, INC. PO Box 8696 Calabasas, CA 91372 818/225.8168 All rights reserved. CSQ, C-Suite Advisors™, C-Suite Advisory™, and C-Suite Quarterly are registered trademarks of C-SUITE MEDIA, INC. No articles, illustrations, photographs or any other editorial matter or advertisements herein may be reproduced without permission of copyright owner. C-Suite Quarterly and C-Suite Media, Inc. does not take responsibility for the claims provided herein. Printed in the U.S.A.


Pelican Hill


EDITOR’S NOTE

10 Years in the Books. Next Up, New York. In 2008 we launched CSQ. Enter The Great Recession. My editor’s note for our debut edition was built upon the lobster shell analogy discussed in temple during the High Holy Days in 2007 (a little irony there). The basis of the concept is that lobsters are confined to the structure and size of their shell. That said, as they grow, they become very uncomfortable. The shell cannot expand. When the lobster gets big enough, it breaks the shell, leaving itself exposed to nature and the risks that come with a lack of protection until the shell grows back – bigger than before. Rinse and repeat. Needless to say, this is about as accurate a metaphor for entrepreneurship, or life in general, as there is. We business owners essentially brave the unknown (though there are plenty of networks, mentors, wells of content, and bar talks out there to conjure up some real advice and tutelage). Despite those helping hands and curious minds, we set out on this journey alone. It’s hard and it’s uncomfortable, and every minute of every day requires growth. While some days are a little easier and some days a little more challenging, this cycle of growth is what invigorates us as we strive for bigger and better, like the lobster. Starting with this edition, we celebrate 10 years of hard work, struggle, success, support, challenges, and lessons learned. Through it all we’ve managed to strive in a world of counterintuition related to anything in print, and built one heck of a community regaling the folks in the so-called upper rung, along the way. Our connection to these men and women—the hardest in the world to access—has afforded us an opportunity to share their stories and inspire through action. And they have. We are proud to be the platform that supports these efforts of dealmaking, prospecting, partnering, donating, and overall exposing the noteworthy individuals and organizations making a difference, and leading by example. As we toast to the past decade and our expansion to New York, we also take time to celebrate those in this edition, as we always do, who now represent both Los Angeles and New York. It is these Visionary and NextGen leaders who inspire us yet again through their bodies of work professionally and the care they exhibit for their communities personally. Gracing our Los Angeles cover is Steven F. Udvar-Házy, whose story of entrepreneurial success was built on the dream of a better life—built around freedom, not communism—and a childhood passion. Udvar-Házy has spent the better part of four decades not just championing an industry, but pioneering one. His passion for aviation, coupled with his intuition for the business, has fueled his journey as he has founded and run a pair of billion-dollar companies.

Editor’s Note

On the New York front, we have Charles S. Cohen, a real estate mogul who has quadrupled the size of the company’s portfolio since taking control, owning and operating commercial real estate and design centers in New York, Miami, Houston, and Los Angeles (the Pacific Design Center). Beyond his real estate acumen and success, Cohen is passionate about cinema—specifically the independent, foreign, and classic varieties—and has turned that passion into a mini media empire via The Cohen Media Group. Beyond real estate and cinema, Cohen has noted passions for hotels, wine, and men’s fashion, all of which fit perfectly under the umbrella of his Curated Lifestyle Collection. Udvar-Házy and Cohen are two salient examples of what CSQ identifies and acknowledges. Leaders of industry and champions of the community, they are but two of the many men and women within this edition—on both coasts—making a difference in the world for so many around them.

David L. Wurth david@csq.com

1. Charles S. Cohen in the Red Building at the Pacific Design Center 2. Steven F. Udvar-Házy at Air Lease Corporation’s Century City HQ 1

16

2


Officine Gullo


Contributors

ADAM BUSSELL is a director and photographer originally from Detroit, Michigan. He has been working with CSQ since Winter 2018. He has a primary background in music video, commercial, and live event production. A resident of Los Angeles, you can usually find him at the movies or on a basketball court.

CHRIS GODFREY is an RIBA chartered architect with over 20 years experience producing highly considered and finely crafted residences for very discerning clients. Prior to becoming Principal, Godfrey was Creative Director at 1508 London, an internationally renowned, high-end residential design studio. At 1508 London, Godfrey helped develop the company from formation and oversaw the architecture and interior Ddsign teams. In 2000, Godfrey established SCAPE Architects, a highly regarded residential design studio which he ran for over a decade. SCAPE’s work has been published extensively and the studio was voted one of the top 20 young practices in the world by Wallpaper* Magazine. He has also lectured in Interior and Spatial Design at Chelsea College of Arts.

Visionaries of the Year, p. 62 & p. 68

“Luxury Drawn From Design,” p. 40

Buying Time, p. 32

JAMES PATCHETT is a proponent of affordable housing and a principal driver of Mayor de Blasio’s effort to create 100,000 jobs within ten years. Patchett became President and CEO of NYCEDC in February 2017. Before his transition to NYCEDC, Patchett was pivotal in securing many of the Mayor’s signature affordable housing achievements and was one of the de Blasio administration’s chief negotiators on major land use matters. He currently serves on the board of the Prospect Park Alliance, a nonprofit dedicated to sustaining Brooklyn’s most famous park. Patchett holds a B.A. in Economics from Amherst College and an M.B.A. from Stanford University. He lives in Brooklyn with his wife and young children.

WHITNEY VENDT is a journalist and author in Los Angeles. She has been a staff writer for CSQ since 2013. Previously she wrote for the Annenberg Digital News and served as the fiction editor for the Southern California Review. Vendt has a Master of Professional Writing degree from USC and a degree in English from Kenyon College. She has worked on various National Geographic Channel shows, and has several short screenplays that have toured the national festival circuit. She is currently working on a novel for young adults.

ANDREA ZARCZYNSKI is a professional journalist, writer, and editor whose work has appeared in a variety of award-winning publications including Women’s Wear Daily (WWD), Malibu Times, and the Detroit Free Press. A CSQ contributor since 2009, she also serves as digital media director of the Detroit Athletic Club and managing editor of the nonprofit’s monthly magazine. Since earning a bachelor’s degree in Journalism, French and English from Oakland University, Zarczynski has found herself intrigued by the new media landscape and is now also pursuing a master’s degree in Media Management at The New School in New York.

“New York City Doubles Down,” p. 42

Paul Scialla Visionary Profile, p. 58

Les Hiscoe Visionary Profile, p. 60

18

Contributors

BRYAN MCKRELL is a contributing editor at CSQ who continues to try and complicate his life like the watches he writes about. The father of three works full time in commercial real estate, while freelance writing, playing golf, betting on horses and ring announcing for any boxing promoter that will have him. He has enjoyed collecting watches since he started reading about them in college, and the fascination has never left him.


etonshir etonshirts.com ts.com

Eton

SPRING / SUMMER 2018 COLLEC TION

S A N T A

M O N I C A

3 39 95 5 SS aa n n tt aa M Mo on n ii cc aa P P ll aa cc e e ## 1 15 53 3 || SS aa n n tt aa M Mo on n ii cc aa C CA A .. 9 90 04 40 01 1 || 3 31 10 0 -- 4 45 58 8 -- 6 69 90 00 0


Entrepreneur. It takes one to know one. Commercial Bank of CA

www.cbcal.com | Our Solutions. Your Success.


22 Consummate Connoisseur 24 Style 26 Air 28 Land 30 Water 32 Buying Time

Desirables

Part 1

Desirables - Cover Page

Ferrari’s 488 Pista (p. 28) is built for a sharp and skilled handler of roads, utilizing the new Ferrari Dynamic Enhance.

CSQ SPRING 2018

21


Cigars

CSQ’s quarterly report on the finer things, from exotic scotch to rare cigars – including four of the Dominican Republic’s finest

MONTECRISTO PILOTICO #2 Dominican Republic The Montecristo Politico Blend is crafted with rare Pilotico tobacco seeds, originating from Cuba in the 1960s by Pepe Mendez. This special and unique cigar is rich and complex with bold flavors and a smooth finish.

Length 6” Wrapper Ecuadorian Flavor Profile Robust medium to full- bodied. Starting at $16

COHIBA MACASSAR Dominican Republic An ultra-premium masterpiece, the Macassar wears a Connecticut Havana wrapper that cloaks a Connecticut broadleaf binder and a combination of Dominican and Nicaraguan fillers that have been aged four years. To complete this gourmet cigar recipe, the tobaccos spend their final year in fragrant rum barrels to enrich the blend’s medium-bodied notes of wood, white pepper, cedar, and coffee.

Length 6 & 7.25” Wrapper Connecticut Havana Flavor Profile A mediumbodied memorable smoke. Starting at $22

DAVIDOFF NICARAGUA Dominican Republic with all Nicaraguan tobacco The Davidoff Nicaragua Series features a complex blend offering a bold yet balanced body with a unique flavor profile brought about only by the rich volcanic soils of Nicaragua’s most notable tobacco-growing regions. Finished with a lush and inviting Habano-seed Rosado wrapper leaf, the Davidoff Nicaragua Series selection showcases spicy and subtly salty notes against an underlying creamy yet hearty earthiness and smooth leather character that keep this cigar from becoming overpowering.

Length 5, 5.5, & 6” Wrapper Nicaragua Habano-seed Rosado Flavor Profile A medium to full-bodied exceptional smoke. Starting at $14

AVO SYNCRO FOGATA Dominican Republic Finished in stunning Habano 2000 wrappers, this wonderful smoke exudes luxury. The binder is San Andres Negro, and the filler consists of aged tobaccos from the Dominican Republic along with prime Nicaraguan leaves from the famous growing regions Estelí and Condega. Intense, yet creamy-smooth and refined, this elite recipe delivers scrumptious notes of coff ee, leather, and earth behind a deep spicy core.

Length 5 & 6” Wrapper Habano 2000 Flavor Profile A mediumbodied monumental smoke. Starting at $10

CONSUMMATE CONNOISSEUR

Curated by David R. Weiss, Owner, Lone Wolf Cigar Company

Desirables - Cigars

22

DESIRABLES


IS YOUR BUSINESS READY? As you look to take your company to the next level, CohnReznick can deliver the insight to help you get there. We provide a diverse range of industries with forward thinking advice that can help turn business possibilities into business opportunities. Look ahead. Gain insight. Imagine more. Is your business ready to break through? Find out more at cohnreznick.com/breakthrough

FORWARD THINKING CREATES RESULTS.

Cohn Reznick


STYLE

Spring’s New Trends & Notable News A sampling of outfits and accessories along with a piece of notable fashionable news

LOUIS VUITTON’S FRESH NEW FACE—VIRGIL ABLOH The founder of haute street wear brand Off-White and the longtime creative director and partner of Kanye West, Virgil Abloh, was announced as the next artistic director of men’s wear at Louis Vuitton in late March 2018. Abloh—37—is Louis Vuitton’s first African-American artistic director. According to The New York Times, he plans to relocate to

Desirables - Style

24

DESIRABLES

Paris as he helms the largest brand in the LVMH Moët Hennessy Louis Vuitton catalog. Abloh’s appointment signals a further blending of the lines between luxury and street wear—across brand—as noted by Louis Vuitton CEO Michael Burke, who first met Abloh 12 years earlier when he and West interned at Fendi and who told The Times, “Virgil is incredibly good at creating bridges between the classic and the zeitgeist of the moment.”


FENDI Multicolor Fabric Belt $370

fendi.com

Desirables - Style KENT & CURWEN Suede Vintage Varsity Jacket $1,750

LOEWE Goya Backpack $2,450

TOM FORD Orford Runner Sneaker $890

PAUL SMITH Italian Liberty Dress Shirt $295

kentandcurwen.com

tomford.com

CSQ SPRING 2018

loewe.com

paulsmith.com

BOTTEGA VENETA Camel Calf Marcello $860

bottegaveneta.com

25


THE CHALLENGER 350 BECOMES THE LEADER IN THE SKY In 2014 Bombardier introduced their super midsize aircraft, the Challenger 350. In the years since, it has been highly sought out by aircraft rental services like NetJets and Flexjet. By 2017, it surpassed 200 deliveries. The light-class Embraer Phenom 300 had been the leader in deliveries since 2013 but in 2016, the Challenger was one unit behind. The following year, the Challenger completed 56 deliveries, solidifying its place as most-delivered business jet with the Phenom and the midsize Cessna Citation Latitude in second and third respectively. us.bombardier.com

Desirables - Air AIR

Aggregating This Quarter’s Aviation News

AN AVIATION-INDUSTRY VETERAN JOINS THE SPIKE AEROSPACE TEAM Recently retired Vice Chairman of Deloitte, Tom Captain, has joined the Spike Aerospace team as an executive advisor. He led his previous company’s aerospace division, making him an ideal candidate to advise the Supersonic business jet builder. The allure of the aerospace company for Captain arose from

26

DESIRABLES

the development of the S-512. The S-512 will have a price tag of $100M and a boom—the jet will break the sound barrier and fly more than 450 mph faster than any other civilian aircraft. spikeaerospace.com

LA’S NEWEST & FASTEST TICKET OUT OF TOWN BLADE—the on-demand helicopter company that took Manhattan by storm—is now in LA offering trips from Santa Monica to Staples Center starting at $125 a seat. Flying out of the city not across it? BLADE’s jet charter comes with helicopter transfer, choppering you across town directly to your private plane. flyblade.com


Travelstore


FERRARI 488 PISTA Named after the Italian word for “track,” the 488 Pista enters the fray being the most powerful Ferrari V-8 to date. With the use of carbon fiber for multiple parts of the car, it comes in at a very light weight along with its highly efficient aerodynamic structure. Top Speed 211 mph 0-60 2.85 secs Engine 3.9-liter V8 Transmission 7-speed dual clutch Max Power 710 hp at 8,000 rpm Starting at $300,000 ferrari.com

LAND

New Meets Reinvented

PORSCHE GTS R3 Giving much more power and purpose, the GTS R3 is meant to be used on the racetrack. Its radical color scheme borrows a page from the male iguana, known to boast its dominance over other reptiles and amphibians with its bright green color. Top Speed 193 mph 0-60 3.0 secs Engine 4-liter flat-6 Transmission 7-speed PDK Max Power 520 hp at 8,250 rpm Starting at $187,500 porsche.com

28

DESIRABLES

Desirables - Land

Ferrari’s newest model pulls up alongside impressive retreads of classics from Porsche, Jaguar, and BMW – all vying to claim the throne or usurp their predecessors


JAGUAR F-TYPE 400 With its sleekly designed interior and exterior and the ability to hold its own with other luxury race cars in the speed department, the F-Type 400 is perfect for someone who wants their own personal GT.

Desirables - Land

Top Speed 171 mph 0-60 4.8 secs Engine 3-liter supercharged V-6 Transmission 8-speed automatic Max Power 339 hp at 3,500 rpm Starting at $89,000 jaguarusa.com

BMW M5 The BMW M5 makes an impressive comeback. The 2018 model sports a sleek, elegant uniform, while a tried and true road warrior lays under the hood. Its ability to comfortably hug roads is paired nicely with brand new all-wheel drive. Top Speed 189 mph 0-60 3.2 secs Engine 4.4-liter V8 Transmission Automatic Max Power 600 hp at 6,700 rpm Starting at $102,600 bmwusa.com

CSQ SPRING 2018

29


EVENT CALENDAR

South Florida Boat Show July 22–24, 2018 West Palm Beach, Florida

Sydney International Boat Show August 2–8, 2018 Sydney, Australia

Cannes Yachting Festival September 11–16, 2018 Cannes, France

Newport Boat Show September 13–16, 2018 Newport, Rhode Island

FLYING FLIPPER’S SUPERFLY GT42 Originally debuted fall 2017 as a fully enclosed vessel, the Superfly GT 42—designed by Red Design—is as confident on the water as its name implies. Earlier this year at the Stockholm International Boat Show, the Scandinavian company Flying Flipper launched the open version—the GTO 42— which, like its sibling looks the part. Both offerings are divided in half, keeping the cockpit and forward galley apart from the aft stateroom and skylight. Built for speed, the boats have stepped hulls and lightweight carbon-fiber. Owners choose from a Volvo or MerCruiser engine—both of which top off at close to 50 knots. flyingflipper.com

Desirables - Water WATER

Prestigious Power

Two of yachting’s sleekest—and fastest—new debuts build on their predecessors, offering the best in luxury and performance DYNAMIQ’S NEW GTT 165 Monaco-based Dynamiq has introduced another new exciting model, following on the heels of the 127-foot Jetsetter and 115-foot GTT 115—the GTT 165. Designed by Studio F.A. Porsche, the 165 adds to its predecessor—the 115’s—standout interiors and technological specificities. Dynamiq claims the 165 can reach speeds of 20 knots and is capable of crossing the Atlantic at 17 knots. Inside the ship, owners can choose from multiple layouts that accommodate up to 12 passengers. Amenities include a glass- covered beach club, dedicated spa, 65-foot-long sundeck, covered jacuzzi, movie theatre (and a 75-inch outdoor television). With construction beginning in 2018, orders can now be placed for delivery in 2021. bedynamiq.com

30

DESIRABLES


Our clients are happy. So, we are happy. “Jack helped us sell a long-time family home in Malibu. He achieved a price that was well over asking ($6.3mm) and helped us through a complicated sale process. Jack is an excellent communicator, negotiator and problem solver. He was also experienced in dealing with 1031 transactions which was a great added value! And he’s a pleasure to work with. I highly recommend him.” – Peter L, Attorney

Meet Jack & Michele Turturici • Founders of Equity Advisors with a combined 40+ years real estate experience and over $450mm in recently completed transactions

• Proud parents of daughter Mia, a student at Our Equity Advisors

Lady of Malibu School where Jack sits on the board of directors • Equity Advisors donates a percentage of all income to A Walk On Water surf therapy for special needs children and adults

S aleS

l eaSing

M anageMent

Beverly Hills to Malibu...Hidden Hills to Camarillo | Serving Southern California’s Finest Neighborhoods

(310) 291-1517

Please call us or read our Zillow® reviews and client testimonials on our website. BRE #’s 01265515 & 01315548. Equal Housing Opportunity.

EAHomesSales.com


Four new pieces–one of the fastest Zeniths to date, brand new offerings from Breguet and Hublot, plus a Richard Mille-McLaren collaboration you will want to get up close and personal with. By Bryan McKrell

BUYING TIME

The McLaren design team and Richard Mille engineers have come together to produce the RM 11-03. The carbon case has been interwoven with orange quartz—the color synonymous with the racing brand—while the titanium pushers which activate the fly back chronograph feature have been designed to mimic the headlights of the McLaren 720S. Inside is one of RM’s finest movements, featuring a fly back second hand that can instantly be reset to zero providing a reset of the watch to time additional laps. The 500 limited edition pieces are individually numbered and are initially available to McLaren Ultimate Series clients.

Starting at $191,500 richardmille.com

As the World Turns ZENITH DEFY EL PRIMERO 21

RICHARD MILLE RM 11-03

BREGUET CLASSIQUE TOURBILLON EXTRA-PLAT AUTOMATIQUE 5367

HUBLOT BIG BANG UNICO 42MM

Desirables - Buying Time

The engineers at Zenith have introduced a chronograph that can accurately time to 1/100th of a second. The watch movement contains two escapements: one for the time function and the other for the Chronograph function, which boasts a frequency of 360,000 A/H (50 Hz). The time escapement is a respectable 36,000 A/H (5 HZ). This powerful chronograph can rotate a large sweeping indicator hand one revolution around the entire watch face every second, with an inner bezel containing a scale of 100 marks. The entire watch is skeletonized revealing a 293-component, 53-jewel movement packed into a 44mm case. Equipped with a rubber band and a brushed titanium case, this watch can easily function at the track or in the boardroom.

One of the most storied brands in watch history continues to define the meaning of understated elegance. Breguet recently introduced, at Baselworld 2018, a classic slimmed-down version of the tourbillon with an elegant Grand Feu enamel dial. The pure white dial sets the ideal backdrop for blued steel hands and the open work whirling of the tourbillon escapement. Simple Arabic numerals provide for an uncrowded dial that does not distract from the refinement of the display. The 42mm case is a mere 7.45mm thick and comes in rose gold or platinum. The case band has been fluted, providing a subtle enhancement to the framework of the offering. A blue alligator strap is available, providing a special accompaniment to the legendary blue hands of Breguet.

At BaselWorld 2018, Hublot unveiled Big Bang Unico’s second coming. The success of Hublot’s original chronograph led to the creation of its successor, the 42mm. The HUB 1280 follows in the footsteps of the 45mm, maintaining the dual clutch mechanism and visible column wheel. However, the removal of the platform escapement and the new self-winding system permits a thinner shape. The new design allows for easier assembly and enhancement of the wearer’s view of the dial’s operations. The new model of the 42mm allows for various versions including Titanium, Ceramic, and King Gold finish.

Starting at $11,200 zenith-watches.com

Starting at $147,500 breguet.com

$33,600 hublot.com

32

DESIRABLES


RICHARD MILLE RM 11-03

Desirables - Buying Time

CSQ SPRING 2018

33


VISIONARIES AWARDS IN REAL ESTATE & FINANCE A LS O C E L E B R AT I N G

NYC Expansion + 10 Year Anniversary

CSQ Visionaries Awards OTHER VISIONARIES BEING HONORED

WEDNESDAY, MAY 16, 2018

NASDAQ MARKETSITE

Dorene C. Dominguez | Vanir Group of Companies

4 TIMES SQUARE • NEW YORK, NY 10036

Chris Godfrey | HBA Residential Les Hiscoe | Shawmut Design and Construction

VISIONARIES OF THE YEAR

Christopher C. Martin | AC Martin

Charles S. Cohen | Cohen Brothers Realty Corp.

James Patchett | NYCEDC

Steven F. Udvár-Hazy | Air Lease Corporation

Paul Scialla | Delos Jon Shook & Vinny Dotolo | Joint Venture Restaurant Group

SPONSORS

Jeremiah Stone & Fabián Van Hauske | Contra Group PLUS CSQ’S NEXTGEN 10 IN REAL ESTATE & FINANCE

To inquire about sponsorship or access please contact us: events@csq.com

By Invitation Only csqvisionaries.com


36 Visionary Alumni Updates OPINION 40 “Luxury Drawn From Design” 42 “New York City Doubles Down” LISTS 46 Breaking Ground 50 NextGen 10 PICTORIAL 44 Innovative Office: CBRE & Delos LOS ANGELES VISIONARIES 54 Dorene C. Dominguez, Vanir Group of Companies 56 Christopher C. Martin, AC Martin NEW YORK VISIONARIES 58 Paul Scialla, Delos 60 Les Hiscoe, Shawmut Design and Construction VISIONARIES OF THE YEAR 62 Charles S. Cohen, Cohen Brothers Realty Corporation 68 Steven F. Udvar-Házy, Air Lease Corporation

Real Estate & Finance

Part 2

RE&F - Cover

CSQ SPRING 2018

35


CSQ Alumni Community and Updates Visionaries in Real Estate & Finance

Visionaries of the Year

36

TOM GORES Founder, Chairman & CEO, Platinum Equity LLC Owner, Detroit Pistons

In February 2018, Platinum Equity made two significant acquisitions. They acquired Wyndham Worldwide Corporation’s (NYSE: WYN) European vacation rental business— the largest manager of holiday rentals in Europe, with more than 110,000 units in over 600 destinations across 25 countries for approximately $1.3B. Platinum Equity also acquired the GenOn—a unit of NRG Energy Inc (NYSE: NRG)—Hunterstown power generation facility and related assets in a transaction valued at approximately $520M.

RICK CARUSO Founder & CEO, Caruso

Caruso announced in February 2018 that the grand opening date for its Palisades Village is set for September 22, 2018. A renovation that pays homage and respect to the history of the Pacific Palisades, the Village project is more than 80% leased with tenants that include Vintage Grocers, Carbon38, McConnell’s Fine Ice Creams, and The Little Market.

SCOTT MINERD Founding Managing Partner & Global CIO, Guggenheim Partners 2016

RE&F - Alumni 2014

2011

2015

2013

REAL ESTATE & FINANCE

Since their IPO in October 2016, BlackLine’s stock has shown consistent growth, trading at $39/share as of March 28, 2018, a 164% gain from the IPO price of $23.70. 2017

RUSSELL GOLDSMITH Chairman & CEO City National Bank (NYSE: RY)

THOMAS BARRACK, JR. Founder, Executive Chairman Colony NorthStar (NYSE: CLNS)

THERESE TUCKER Founder & CEO BlackLine (NASDAQ: BL)


Visionaries

CLARENCE DANIELS President & CEO, CMS, Inc.

JONATHAN EMMETT Principal & Design Director, Gensler Sports Practice

DEBORAH ALE FLINT Executive Director, LAWA

TOM GILMORE CEO, Gilmore and Associates LLC

LEWIS C. HORNE President, SoCal and Hawaii, CBRE

SCOTT HUNTER Principal & Los Angeles Office Director, HKS Architects

RENÉ GROSS KAERSKOV Co-CEO, HBA

DAMIAN LANGERE Co-founder & CEO, Domuso, Inc.

JAIME LEE CEO, Jamison Realty, Inc.

Though they are the largest commercial landlord in Los Angeles County— owning more than 18 million sq. ft. in approximately 100 properties—they show no signs of slowing down. According to Curbed LA as of November 2017, Jamison is involved in the projected development of more than 10 projects in Koreatown, CA that would represent nearly 200 floors of high-rise buildings.

RE&F - Update JOHN KILROY Chairman of the Board, President, & CEO, Kilroy Realty Corp. (NYSE: KRC)

BENY ALAGEM Owner, The Beverly Hilton & Waldorf Astoria Beverly Hills

ANDY COHEN & ROB JERNIGAN Co-CEO & Co-Managing Principal—Southwest, Gensler

For the sixth consecutive year, according to Architectural Record, Gensler was the #1 Architecture and Design firm in the United States with $1.192B in revenue.

CSQ SPRING 2018

With earning expected in late April, Wall Street forecasts that Kilroy Realty Corp (NYSE:KRC) will report $180M in sales for the fiscal quarter, representing growth year over year. On average, analysts expect that Kilroy will estimate full year sales of $705M to $746M. When earnings were last reported on January 31, 2018, the business had quarterly revenue of $177M. MICHAEL KOSS Founder, Koss REsource

SHIVANI SIROYA Founder & CEO, Tala

Tala raised $30M in February 2017— bringing their total raised to $44M—as they continue to crunch smartphone data and provide microloan opportunities to the 2.5 billion people globally who do not have a credit score. They followed up the successful fundraising round by hiring Uber’s former data chief Kevin Novak. JEFF STIBEL Vice Chairman, Dun & Bradstreet Founding Partner, Bryant Stibel

KEITH WASSERMAN Founder, Gelt, Inc.

GINA MARIE LINDSEY Former Exec. Director, LAWA

NADINE WATT President, Watt Companies

BRUCE MAKOWSKY Founder, BAM Luxury Development

MARK WEINSTEIN President, MJW Investments

RICHARD MEIER Managing Partner, Richard Meier & Partners Architects LLP

ZAYA YOUNAN Founder, Chairman, & CEO, Younan Properties

DOUGLAS MERRILL Founder & CEO, ZestFinance

MARK ROSENTHAL President & CEO, Raleigh Enterprises

JON SCARDINO Founder & President, JHS LLC

SANDY SIGAL President & CEO, NewMark Merrill

37


Los Angeles and New York City Lead in Coworking Space

OF NOTE

Briefings, Updates & Analysis

Residential Home Sales Break Records

A consistently hot commodity in today’s world, shared office space continues to gain value— and market share—in Manhattan and Los Angeles. According to a Yardi Matrix study, the nation’s two largest markets have 7.65 million and 3.7 million sq. ft. dedicated to shared office space, respectively. The study notes that in Manhattan alone there are 245 coworking spaces and 168 in runner-up Los Angeles. Across the nation—according to the study— there is a total of 29.6 million sq. ft. of shared space, with Regus and WeWork most responsible for the square footage.

A look at Los Angeles and New York City’s most expensive home sales in 2018 NEW YORK CITY – $100.4M American billionaire and founder and CEO of Dell Technologies Michael Dell’s $100.4M purchase at One57 West 5th St.—an Extell development—sits on Manhattan’s Billionaire’s Row 10,923 sq. ft. 1,004 ft. above ground in one of the tallest buildings in Manhattan 6 bedrooms

LOS ANGELES – $120M Canadian billionaire and Edmonton Oilers’ owner Daryl Katz’s $120M purchase of a Kurt Rappaport Malibu mansion designed by Scott Mitchell ~15,000 sq. ft. 168 ft. long infinity pool (said to be California’s longest residential pool) 7 bedrooms 10 bathrooms

RE&F - Of Note

Top 5 Shared Office Space Markets

1

MANHATTAN

245 coworking spaces 7.65 million sq. ft.

2

LOS ANGELES

168 coworking spaces 3.7 million sq. ft.

3

SAN FRANCISCO BAY AREA

98 coworking spaces 2.9 million sq. ft.

4

DALLAS-FORT WORTH

88 coworking spaces 1.56 million sq. ft. BOOSTED BY TOURISM, LA HOTEL SALES HIT RECORD HIGH OF $1.7B The hotel industry had a remarkable year in 2017, according to a study done by Atlas Hospitality Group. The Los Angeles area’s hotel sales totaled $1.7B —a substantive gain of $344M from the prior year. Sales are

38

REAL ESTATE & FINANCE

believed to have been boosted by approximately 4,300 new hotel rooms being built in 2017. If this data point is to be believed, the industry is in for continued good fortune as more than 5,000 rooms are expected to be built in 2018, with an additional 10,000 beyond that in the coming years as the 2028 Summer Olympics approach.

5

ATLANTA

76 coworking spaces 1.5 million sq. ft.


RE&F - Of Note STAN KROENKE’S NFL STADIUM DOUBLES PRICE TAG—APPROACHES $5B On March 27, 2018, Seth Wickersham of ESPN reported that NFL team owners will vote to increase the budget for the new NFL stadium being built by Los Angeles Rams’ owner Stan Kroenke to $4.963B (no other

INTRODUCING LA’S FIRST CHIEF DESIGN OFFICER—FORMER LA TIMES ARCHITECTURE CRITIC CHRISTOPHER HAWTHORNE Christopher Hawthorne was wrapping up 14 years as Los Angeles Times’ architecture critic when the City Hall hotline rang. It was Mayor Garcetti asking if Hawthorne would join his team, becoming the city’s first Chief Design Officer. As Hawthorne is the city’s resident expert on design architecture, the newly created position was exceptionally filled. His experience in the field as a critic—not architect—will afford clear and

CSQ SPRING 2018

NFL stadium has ever been built for more than $2B). The monumental doubling of the budget is likely due to the space—and payment—being shared with the Los Angeles Chargers. This comes just after the NFL announced that they would be moving their headquarters from Indianapolis to Los Angeles.

concise insight into the future of Los Angeles’ urban growth. His central focus will be to guide and improve the city’s public realm, which also includes how to safely incorporate modern qualities of design into new and redeveloped civic and infrastructural works while addressing the concern between new investments in neighborhoods and the resulting displacement of longtime residents. The newly appointed Hawthorne will have his hands full maneuvering through the ongoing affordable housing crisis and homelessness as well as the upcoming 2028 Summer Olympic games.

39


Traversing time zones and cultural barriers, UHNW homeowners around the world share consistent interests, tastes, and definitions of luxury centered around bespoke By Chris Godfrey

RE&F - Godfrey

OP-ED

Luxury Drawn From Design

CHRIS GODFREY Principal, HBA Residential Chris Godfrey is an RIBA

chartered architect with over 20 years experience producing highly considered and finely crafted residences for very discerning clients.

40

REAL ESTATE & FINANCE

Over the past 50 years, the definition of luxury has changed. Initially, definitions of luxury in the United States and the rest of the world emphasized overt ostentatiousness. Classical, Baroque design styles and blatant branding predominated spaces. However, over the past decade or so, the idea of brand in design has moved from omnipotence to understatement. Even in China, where previously lavish branding reigned supreme, a new paradigm has appeared that focuses on uniqueness, provenance, craft, and creation. This shift has also ushered in contemporary design which seeks to meld international style and qualities of the locale as well as referencing the culture of the past. These trends translate into subtlety and a demand for the simple. HBA Residential, the residential interior design division of HBA, holds the design philosophy that can be summed up as “Luxury Through Design.” This ethos maintains the process of design that creates luxury, instead of purchasing it, through application of a style. A luxury home is about qualities of

IT’S LESS ABOUT BEING OSTENTATIOUS AND MORE ABOUT HAVING SOMETHING BESPOKE, IN THE BEST SENSE OF THE WORD, CONCEIVED AND CRAFTED JUST FOR YOU.

Photos: Courtesy of HBA

1


space and light, material, and detail. These aspects add value, depth, and permanence to beauty. “Luxury Through Design” means understanding that each client defines luxury differently and translating that definition into a tailored, personal space, not found in a stylebook. In Mumbai, India, HBA Residential used a wellplaced figurative sculpture to underscore the physical boundary where the 24,000-sq.-ft., six-story house functionally splits in two. The front of the house is its public side, intended for parties and entertaining, while the rear, which faces the sea, represents its private side, a respite for the family that owns it. The home’s front also features jali screens that have been given a modern update and pressed into service as privacy partitions, as well as a canopy of thin-stemmed stainless-steel “trees” that greet arriving visitors. This home is one of many HBA Residential projects that are nearing completion, with others in China, Russia, Hong Kong, and Bali. Many of these homes reflect the trend toward rooms and settings that would fit equally well in a boutique hotel. The desire to blur the lines between hospitality and residential spaces is built into the lifestyles UHNW individuals lead. Most have multiple homes around the world and spend a short time in each while also spending time in hotels around the world, which we believe has had an impact, consciously or not. Spaces that would suit a boutique hotel can make pragmatic sense in a private home. The entrance of a Delhi villa opens directly into the residence—no hallways or other transitional areas— making the first impression a lobby-like space. HBA Residential is handling the interior design of the 44,000-sq.-ft., two-story home, working within the pavilion-style architecture and the limited palette of grays, dark browns, and blacks that the client favors. The chandeliers provide an aesthetic element that carries through several spaces. Bronze expands the neutral color scheme, adding subtle hints of luster throughout. A particularly clever use of the metallic

RE&F - Godfrey 2

1. A sitting room in an HBA Residential designed Beijing apartment 2. A New Delhi villa with a koi pond in the courtyard 3. A reflection pool within a residence in Xi’an

shade is in the dining room, which features bronze mesh fabric sandwiched between sheets of glass. A unique aspect of the luxury design market is working with manufacturers whose sole purpose is to create something never before seen. Everyday materials juxtaposed with metal finishes on acrylic, poured resin, and marble slabs become art unto themselves. It’s the expression of a material’s inherent beauty re-appropriated in a playful way to elicit a design that can be viewed as a beautiful response. There’s general movement toward “less is slightly more,” a reasoned luxury which aligns with the HBA Residential philosophy and its highly personal way of working. It’s less about being ostentatious and more about having something bespoke, in the best sense of the word, conceived and crafted just for you. This focus on individuality and functionality is especially exciting with the upcoming HBA Residential expansion into New York City—the firm’s first mark in the Western hemisphere, with offices already in London and Singapore. end

3 CSQ SPRING 2018

41


The president of New York’s Economic Development Corporation on how 20th-century strengths are creating 21st-century opportunities By James Patchett

OP-ED

New York City Doubles Down New York has always been a place of economic opportunity and innovation. In the words of former Mayor Ed Koch, it’s the place where “the future comes to audition.” But there has perhaps never been a better time to live in New York than right now. In recent years our city has undergone a renaissance and is now riding an unprecedented wave of prosperity. Today, New York is home to 4.5 million jobs, a figure that continues to grow each month. From Goldman Sachs to American Express to AIG, we have more Fortune 500 companies than any other city in the United States. And in 2015, our gross city product was $805B, more than Argentina or Switzerland. Add in the entire New York metro area, and we would have the 13th largest GDP in the world, just ahead of Australia’s. Our soaring economy is due in large part to our workforce, the most talented anywhere. Today, 2.4 million New Yorkers have a bachelor’s degree or above, more than Boston, Philadelphia, San Francisco, Los Angeles, and Washington, D.C. combined. Our workforce is also the most diverse in the U.S. There are more than 800 languages spoken throughout the city, and almost 50 percent of local business owners are immigrants. The world’s brightest minds and deepest thinkers want to be here to synergize with other thought leaders and push society forward. New Yorkers are moving the needle in a number of fields, from fashion to finance to food distribution. All of these industries are being transformed by our growing tech sector. Today, New York has the second largest startup ecosystem in the world, with over 9,000 startups; last year, venture capital firms invested $11B into them. We also are committed to making our tech sector the most inclusive in the world. Our Computer Science For All initiative is bringing computer science education to every single one of the city’s 1,700 public schools, and our Tech Talent Pipeline connects New Yorkers from every background with in-demand positions at major firms. Our economic success is validated by our rising tourism and population numbers. The city welcomed more than 60 million visitors last year, perhaps because we have the hippest nightlife, most avant-garde restaurant scene, and myriad top-rated museums and galleries. And more people are put-

RE&F - Patchett

42

REAL ESTATE & FINANCE


AND IN 2015, OUR GROSS CITY PRODUCT WAS $805B, MORE THAN ARGENTINA OR SWITZERLAND. ADD IN THE ENTIRE NEW YORK METRO AREA, AND WE WOULD HAVE THE 13TH LARGEST GDP IN THE WORLD, JUST AHEAD OF AUSTRALIA.

JAMES PATCHETT President & CEO, NYCEDC

James Patchett is a proponent of affordable housing and a principal driver of Mayor Bill de Blasio’s effort to create 100,000 jobs within ten years. Patchett became President and CEO of NYCEDC in February 2017.

CSQ SPRING 2018

ting down permanent roots here, too; the city’s population is expected to grow to 9 million by 2040, up from 8.5 million today. If you have been to New York recently, you have probably felt this energy. The city is safer, more diverse, and more vibrant than ever before. But all this prosperity doesn’t mean we are just sitting back and enjoying this remarkable period of growth. We have to build a resilient economy for future New Yorkers. We can’t stop thinking ahead or innovating. For us, innovation doesn’t just mean building entirely new fields from scratch (though we do that, too). It also means working tirelessly to improve our existing economy to ensure we keep our competitive advantages. And there are perhaps no two industries in which we have competitive advantages, and are more in need of innovation, than real estate and finance. New York has long been the capital of finance, insurance, and real estate. According to the New York State Comptroller, Manhattan’s three main business districts (Midtown, Midtown South, and Lower Manhattan) together have 450 million sq. ft. of office space, more than a quarter of the office space in all the nation’s business districts combined. And Wall Street is synonymous with the world’s most successful investment banks, from Citigroup to Credit Suisse. To keep New York ahead of the pack, we have committed to making sizable investments in these fields to further propel them into the 21st century. Staying ahead in real estate means creating office space for the jobs of the future. Right now, we are seeing shifts in the type of offices in demand. The 20th-century art-deco skyscrapers that dot the city skyline are now out of vogue. Instead, tenants want uber-modern buildings with open layouts, common spaces, and amenities. To meet demand for the projected additional 60 million sq. ft. of office space needed by 2025, New York has rezoned large swaths of the city, including the East Midtown central business district. This strategy has already proven to be effective; last month, J.P. Morgan announced plans to build a world-class, 2.5 million square-foot headquarters on Park Avenue. Down the street, real estate pioneer SL

Green is in the process of constructing One Vanderbilt, one of the city’s most anticipated skyscrapers in decades. But there are many entrepreneurs who don’t want space in East Midtown. They would rather be in converted Long Island City warehouses or co-working spaces in Williamsburg. To that end, New York is rethinking how to enliven some of its traditionally residential neighborhoods. Last September, city government approved a rezoning plan for Downtown Far Rockaway, a community at the edge of the Rockaway Peninsula. This plan also included a $288M commitment to build new commercial space and shore up aging infrastructure. Rezonings like those in East Midtown and Downtown Far Rockaway ensure the city is creating the real estate cutting-edge companies need to thrive. New York’s banks and financial services firms also need to think how they will stay ahead in an increasingly competitive environment. To keep our institutions leaders in the field, the city has committed itself to becoming the epicenter of finance-adjacent fields. We have already established ourselves as the home of financial technology (FinTech) and banking law. Now, we are investing in growing the city’s cybersecurity sector to become the industry’s global capital, home to over 100 cyber companies and 6,000 related jobs. As the number of online threats increases, cybersecurity has become increasingly important to financial institutions. If you are Morgan Stanley or Citibank, being prepared for cyberattacks and safeguarding your clients’ assets are non-negotiables. Knowing this, banks across the city are paying enormous sums to protect themselves. In 2015, J.P. Morgan spent half a billion dollars on cybersecurity and still felt like they needed more surveillance. To ensure New York cements its place as the cyber capital of the world, we are investing millions of dollars to create the first publicly-funded Cyber Center in the world. This physical space will connect financial institutions with cyber companies and their newest technology, as well as be a first-rate lab of discovery as the field evolves. By shoring up our existing industries like real estate and finance, we will ensure their success and the city’s continued economic leadership. end

RE&F - Patchett

43


INNOVATIVE OFFICE Los Angeles

Completed in December 2015, the former Masonic Temple—originally opened in 1929—underwent extensive renovations. When the dust settled, Caruso and Gensler transformed the nine-story historic structure into creative office and retail space. With CBRE serving as the lead tenant, the space showcases their approach to Workplace 360—their global approach to what they call the Workplace of the Future

CBRE LA NORTH

RE&F - Office

3

1

2. The implementation of glass in meeting rooms is designed to maximize the space and provide ample views of the office 3. The Masonic Temple was originally built in 1929 4. The implementation of stairs across floors encourages congregating and coworking 2

44

REAL ESTATE & FINANCE

4

Photos: Ryan Gobuty (1, 2, 3) & Benny Chan (4)

1. The open floorplan showcases CBRE’s Workplace 360 approach, ensuring a wide range of space for individual and collaborative work

Location Glendale, CA Scope 25,000 sq. ft. Design 2 months Construction 9 months Developer Caruso Architect Gensler CBRE Employees 125 Notable Features Refurbished 1920s finishings, a double-height space, “glass box” meeting rooms, a 100-percent free-address environment


Real estate disruptor and CSQ Visionary Paul Scialla’s company—Delos—sits at 860 Washington St. in the heart of the Meatpacking District. The company sits on two floors across 19,000 sq. ft. of office space, including a 1,520 sq. ft. terrace.

INNOVATIVE OFFICE New York

Industry Wellness Real Estate Location Meatpacking District Scope 19,000 sq. ft. Floors 2 Developer Property Group Partners, Romanoff Equities Architect Gensler Certifications WELL Certification and LEED v4 (pursuing) Living Building Challenge Petal Certification (Place, Materials, Beauty, Equity, Health) Notable Features Full glass curtain walls, indoor plant walls, outdoor terrace, full café

DELOS

1

RE&F - Office 2

3

4

1. Reception is notable for the digital display (pictured) that changes color with the Circadian calendar 2. Delos reception 3. All workstations within the Delos office are height adjustable, encouraging employees to stand 4. The open stairwell provides those who traverse it views of digital displays, biophilia, and more. 5. Everything in the Delos café—from the refrigeration to the water and of course the snacks—puts wellness at the forefront

5

CSQ SPRING 2018

45


THE GRAND

A list of notable real estate projects that represent the shifting skylines across Los Angeles and New York

LOS ANGELES

BREAKING GROUND

Angels Knoll

The Grand

Ivy Station

DOWNTOWN LOS ANGELES

DOWNTOWN LOS ANGELES

CULVER CITY

Scheduled Completion 2024 Cost $1.2B Scope An 88-story skyscraper and a 24-story tower housing 500 SLS and Mondrian hotel rooms, 250 condos, open space, retail, restaurants, and a charter elementary school along with an adjacent site with 400 apartments. Developers Claridge Properties, MacFarlane Partners, and The Peebles Corporation Architects Handel Architects, Olin Did You Know Being hinted at as a “UCLA Vertical” campus, the project would have a direct connection to UCLA and Westwood via the future Metro Purple Line extension. handelarchitects.com

Scheduled Completion 2021 Cost $1B Scope The Grand will be home to shops and restaurants spread among landscaped open terraces, along with an approximately 450-seat movie theatre; a 20-story, 314-room Equinox hotel; and a 39-story residential tower with 113 condos and 323 apartments. Developer Related Companies Financier CCCG Overseas Real Estate Ltd. (CORE)—a subsidiary of China Communications Construction Group—invested $290M in the project Architect Frank Gehry Did You Know Gehry’s new design will complement Walt Disney Concert Hall, whose surfaces were carefully arranged to receive light projections from across the street, allowing people outside the venue to be entertained when, say, the LA Philharmonic are performing inside. related.com

Scheduled Completion 2019 Cost $300M Scope Ivy Station will consist of multiple five- and six-story buildings featuring 200 apartments, 500,000 sq. ft. of mixed use space, a 148room hotel, 210,000 sq. ft. of offices, and 36,000 sq. ft. of retail space. Developer Lowe Enterprises with AECOM Capital Architecture Cuningham Group, EYRC Architects, RELM Studio, Killefer Flammang Architects Did You Know Ivy Station is rising from the ground up directly adjacent to the Culver City Station of the Metro Expo Line which connects downtown Los Angeles to the city of Santa Monica. lowe-re.com

SCOPE Addition New Development Renovation

USAGE Arts & Culture Civic Hotel Medical Mixed Use Office Residential Retail

46

REAL ESTATE & FINANCE

RE&F - Breaking Ground


LUCAS MUSEUM OF NARRATIVE ART

Los Angeles Lucas Museum Stadium of Narrative Art at Hollywood Park

Midfield Satellite Westside Pavilion Concourse

INGLEWOOD

EXPOSITION PARK

LAX

WEST LOS ANGELES

Scheduled Completion 2021 Cost $1.5B Scope The museum will house multiple restaurants, stateof-the-art cinematic theaters, lecture halls, digital classrooms, a 4,200 sq. ft. library, event space, and production quality editing classrooms. General Contractor Hathaway Dinwiddie Construction Company Architect Ma Yansong Did You Know Originally designed for Chicago and then San Francisco, the museum finally found a home in Los Angeles and is being erected across the street from Lucas’ alma mater, USC. lucasmuseum.org

Scheduled Completion Q4 2019 Cost $1.6B Scope 12 new gates along with a five-story, 750,000 sq. ft. building that will house retail, dining, and lounge space Developer City of Los Angeles Did You Know The first phase of the Midfield Satellite Concourse to finish will be directly connected to Tom Bradley International Terminal which underwent a $2.1B renovation in 2015. flylax.com

Scheduled Completion 2021 Cost $425-$475M Scope When complete the project will create 500,000 sq. ft. of creative office space and retain approximately 100,000 sq. ft. of retail space Developer Hudson Pacific Properties, Macerich Did You Know The Macerich portfolio contains more than 50 malls and retail centers across the country including Santa Monica Place in Santa Monica, CA and The Oaks in Thousand Oaks, CA. hudsonpacificproperties.com

RE&F - Breaking Ground

Scheduled Completion 2020 Cost $4.963B Scope The 298 acres is projected to house an entertainment complex with 8.5 million sq. ft. of office and residential space, a 6,000-seat music and theatre venue, waterworks, a luxury hotel, dining, and an outdoor retail center in addition to housing the new campus for NFL Media, currently based in Culver City. Developer Kroenke Sports & Entertainment Architect HKS, Inc. Construction Turner Construction, AECOM Did You Know In March 2018 it was announced that the best seats in the stadium will have a $100,000 licensing bill for Rams season ticket holders and $75,000 for Chargers. The licensing program—a newly popularized trend in sports stadium construction—serves as a 50-year deposit that helps fund construction. After the 50 years, the original stadium seat license cost will be repaid to whoever owns it. therams.com

CSQ SPRING 2018

47


CENTRAL PARK TOWER

NEW YORK

Central Park Tower

Essex Crossing

Hudson Yards

One Vanderbilt

BILLIONAIRE’S ROW

LOWER EAST SIDE

WEST SIDE

MIDTOWN MANHATTAN

Scheduled Completion 2020 Cost $4B Scope 170 units from a 569 sq. ft. studio (starting at $1.5M) to a 7,984 sq. ft. penthouse ($95M). Developer Extell Development Design Architect Adrian Smith + Gordon Gill Architect Adamson Associates Interiors Rottet Studio Did You Know Three penthouses—the largest of which spans 15,898 sq. ft.—at the top of the tower are not currently listed for sale in the offering plan. extell.com

Scheduled Completion Completing in phases (some residents have moved in), the project is expected to be entirely finished in 2024. Cost $1.1B Scope The 1.9 million sq. ft. project comprises nine sites with over 1,000 apartments, 450,000 sq. ft. of retail, and 400,000 sq. ft. of office space Development Partners Goldman Sachs, BFC Partners, L&M Development Partners, Tatonic Investment Partners, The Prusik Group, Grand Street Settlement (nonprofit partner) Architecture & Design Beyer Blinder Belle, Shop Architects, West8 (Landscape), SLCE Architects, Handel Architects, Dattner Architects, DXA Studio, Future Green Studio (Landscape), Kokobo Greenscapes (Landscape) Financial Partners LIIF, Wells Fargo, Enterprise Community Partners, Citibank Did You Know The nine sites, known as the Seward Park Extension Urban Renewal Area (SPEURA), sat mostly vacant since 1967 and represent one of the most significant urban renewal developments in the history of New York. essexcrossingnyc.com

Scheduled Completion 2024 Cost $20B Job Creation 23,000+ Scope The site will include more than 18 million sq. ft. of commercial and residential space, state-of-the-art office towers, more than 100 shops (including New York’s first Neiman Marcus), and a collection of restaurants curated by Chef Thomas Keller as well as approximately 4,000 residences, The Shed (a new center for artistic invention), 14 acres of public open space, a 750-seat public school, and an Equinox branded luxury hotel with more than 200 rooms. Developers Related Companies, Oxford Properties Architecture & Design KPF, David Childs (SOM), Elkus Manfredi Architects, Diller Scofidio + Renfro, David Rockwell (Rockwell Group), Foster + Partners, Nelson, Byrd, Woltz, Heatherwick Studio, Gensler, Ismael Leyva Architects Did You Know Hudson Yards is the largest private real estate development in the history of the United States and the largest development in New York since Rockefeller Center. hudsonyardsnewyork.com

Scheduled Completion 2020 Cost $3.2B Scope The 58-story, 1.75 million sq. ft. building will be 1,401 feet high at its highest point. Developer SL Green Realty Development Manager Hines Architect Kohn Pedersen Fox Associates Interiors Gensler Construction Tishman Did You Know When completed in 2020, the skyscraper will be New York’s fourth-tallest building until the completion of Central Park Tower and 111 West 57th St. onevanderbilt.com

RE&F - Breaking Ground

48

REAL ESTATE & FINANCE


ALSO UNDERWAY

LOS ANGELES

Culver Steps

Hope + Flower

Port of Los Angeles

San Pedro Public Market

CULVER CITY, CA

SOUTH PARK, CA

LONG BEACH, CA

SAN PEDRO, CA

Estimated Cost Undisclosed Scheduled Completion 2019

Estimated Cost Undisclosed Scheduled Completion 2019

Estimated Cost $77M Scheduled Completion 2021

Estimated Cost $150M Scheduled Completion Q4 2020 or Q1 2021

RE&F - Blvd. Breaking Wilshire SoHo Warehouse Temple DOWNTOWN LA ARTS DISTRICT, CA Estimated Cost Undisclosed Scheduled Completion Late 2018

Ground

KOREATOWN, CA Estimated Cost $75M Scheduled Completion 2020

NEW YORK

45 Broad Street

Brooklyn Point

Manhattan West

Sunnyside Yards

FINANCIAL DISTRICT, NY

BROOKLYN, NY

MIDTOWN WEST

ASTORIA, NY

Estimated Cost Undisclosed Scheduled Completion 2020

Estimated Cost Undisclosed Scheduled Completion 2020

Estimated Cost $4.5B Scheduled Completion 2020

Estimated Cost $16-$19B Scheduled Completion Unknown

CSQ SPRING 2018

49


NG 10 KATHLEEN CAHILL

FOUNDER & FINANCIAL PLANNER, BRUNCH & BUDGET® Affordable financial planner for young people Age 32 Residence Brooklyn, NY Education UCSB Industry Financial Services Company HQ Brooklyn, NY Awards & Honors Investment News 40 under 40 Notable Projects Launching Dead Day Job Army, a group financial planning platform addressing the specific and unique financial needs of people of color Advice Where you spend your money is a representation of what you value Success Putting my phone away and taking a step back from business to focus on my personal and family life Mentor My old manager, Dan Collins, who is now a wealth manager at UBS Local Companies Admired Junior Baby Hatter, Bondfire Radio, An Actor Tapes, Monk’s Meats, TONL First Job Cashier at Ross Guilty Pleasure Salt & Vinegar Kettle chips Up at Night Wondering if I’m making a difference 2018 Continuing to grow partnerships with the Racial Wealth Divide Initiative at Prosperity Now, diving into growing the Brunch & Budget podcast, and reaching more people through financial literacy education

RE&F - Next Gen

NY SOLUTIONS OWNER FOR VALUATION & ADVISORY, PROPTECH VENTURES, CUSHMAN & WAKEFIELD Commercial real estate services company Age 27 Residence Greenwich Village, NY Education New York University Industry Real Estate Company HQ Chicago, IL Notable Projects C&W’s partnership with Bowery is something I am proud of. Together, we are working to drive change within the appraisal industry. Advice Write down your goals. Having written goals creates accountability and allows you to better track your progress and successes. Success Being able to do something you are passionate about. If you don’t have

50

passion then you will never be at your best. Mentor I found a mentor early in my career at J.P. Morgan Chase, Chad Tredway, who taught me a lot about how to drive change within a large organization and how to be proactive in managing my career. Local Company Admired MetaProp First Job Interned with an architecture and urban design consulting firm in Brooklyn during college and spent a whole summer building furniture for an installation at MoMA PS1 Guilty Pleasure Coffee and ice cream In the Morning Read through my morning newsfeed—Axios, The New York Times, and Bloomberg Technology Before Bed The New York Times Crosswords 2018 Travel to three new countries

REAL ESTATE & FINANCE

PAMELA CAPALAD

NY

BILL COSTIGAN

LA DIRECTOR OF PORTFOLIO MANAGEMENT, GUGGENHEIM PARTNERS Global investment and advisory financial services firm Age 34 Residence Mar Vista, CA Education LMU Industry Asset Management Company HQ New York, NY Awards & Honors Hobson Scholar Notable Projects Environmental, Social, and Governance (ESG) research from past career as ESG becomes mainstream Advice Be humble. Success “Success usually comes to those who are too busy to be looking for it.” — Henry David Thoreau Mentors Linda Marban, Scott Minerd, Anne Walsh Local Company Admired Shaggy Entertainment


NEXTGEN 10 REAL ESTATE & FINANCE

As we celebrate 10 years of publishing and our expansion into a second market—New York—it is our pleasure to also celebrate the continued expansion of our NextGen community. For the first time since its inception in Q1 2013, we are presenting a class of under-40 industry leaders in the Real Estate and Finance space. From financial literacy advocacy and real estate technology to commercial real estate brokerage and economic development, the 2018 NextGen 10 in Real Estate and Finance have a proven track record of success, investing in economies, building infrastructure, and sustaining growth in Los Angeles, New York, and beyond.

NY

First Job Waiting tables — where I learned to read people Guilty Pleasure Shake Shack In the Morning Kiss my wife then check Bloomberg (she would say they happen the other way around). Before Bed Have a dance party with my daughters (1 and 3) always beginning with Pitbull’s “Timber” 2018 Participate in a triathlon

PATRICK HORSMAN

NY CHIEF INVESTMENT OFFICER, HORSMAN HOLDINGS LLC Investment company for alternative investment hedge funds, private equity, real estate, and venture

1/2 CSQ SPRING 2018

LA

New York & Los Angeles

Age 38 Education University of Arizona Industry Hedge Funds & Private Equity Company HQ Miami, FL Notable Projects Co-founder of Blue Sand Securities LLC, a 30-person placement agency focused on alternative investments that has raised $15B client funds; co-founder of Merion Investment Management LP, an $860M litigation hedge fund; co-founder of Innovation Shares, an AI-driven ETF Sponsor focused on cutting-edge themes whose first products include NYSE: KOIN (focused on Blockchain) and NYSE: EKAR (focused on Next Gen Vehicles) Advice Find a niche and be the absolute best you can be at it. Success Independence Mentor Manny Friedman of EJF Capital LLC Local Companies Admired Blackstone, Citadel, Millennium First Job When I was 16 years old, my family lived near University of Wisconsin while my father finished medical specialty training. I would self park cars for $10 on my parents’ lawn on game day. Guilty Pleasure Golfing, restaurants, spear fishing Up at Night Usually thinking through some issue in one of my businesses and how we are going to work through it 2018 Launching several new ventures: an ETF Sponsor called innovation Shares, a new Litigation Funding Vehicle at Merion, and a third litigation-related investment business

TUCKER HUGHES

RE&F - Next Gen LA

MANAGING DIRECTOR, HUGHES MARINO Commercial RE firm representing tenants and buyers

Age 25 Residence Beverly Hills, CA Education University of San Diego Industry Corporate Real Estate Advisory Company HQ San Diego, CA Awards & Honors Broker of the Year two-time winner; America’s Cup Polo Champion; #1 Best Place to Work in LA (LABJ), #7 Best Place to Work in the nation (Fortune), #2 Company Culture in the nation (Entrepreneur) Notable Projects Founding Hughes Marino’s LA and OC offices; leading efforts to pass state legislation that protects companies from the outdated and conflicted paradigm in

which most of the commercial real estate services industry operates Advice When it gets hard, when you are on the edge of what you think is possible, that’s when it really counts to keep going. Success Giving the people and priorities in my life every ounce of effort I have, making my family, team, and close friends proud, and striving to live a meaningful life, full of passion, with a lasting impact on those for whom I care Local Company Admired SpaceX First Job Started working in commercial real estate at age 15 In the Morning Wake up at 4 a.m., get into the office within 45 minutes, and strategize on the day over breakfast. Before Bed Read for 30 minutes. Up at Night The fact that business is the world’s most competitive 24-hour sport and there are no timeouts 2018 To continue working for our company’s clients, helping our existing team reach their full potential, and welcome amazing new people to the Hughes Marino family as we expand our existing offices and open new ones

51


NG 10 NOAH ISAACS & JOHN MEADOWS

University of Pennsylvania Industry Real Estate Company HQ Chelsea, NY Advice Smile once in a while, it even uses less muscle, and “Mad at the world when all you gots to do is just hustle” from the song “Go Somewhere” by Devin the Dude (Noah); As my father said when I was applying to law schools, “Careers are long. You’ve been desperate to live in New York. Go to New York. Find a job you think is interesting and if you want to go to law school in a few years, I can assure you, you aren’t going to regret being a lawyer for 45 years instead of 48.” (John) Success Giving my team the support they need to excel (Noah); Answering “Yes” to “Did I have passion?” and “Did I make a dent in the universe?” (John) Mentors Josh Isaacs; Eric Wexler Local Companies Admired Compass; Union Square Hospitality Group First Job Baseball operations intern, Toronto Blue Jays (Noah); commercial real estate appraiser (John) Guilty Pleasure Tasty cooking videos; Season 1 of The OC Up at Night Thinking of new ways we can deliver unparalleled service to our clients (Noah); What could we have done better today? (John) 2018 Keep growing (Noah); Open in a new market and maintain a culture where everyone on our team always feels appreciated, heard, and motivated (John)

EVAN KANTOR

Local Companies Admired Bridgewater Associates, Riot Games First Job Dishwasher Guilty Pleasure Surfing In the Morning Read, journal, meditate, and either go to the beach or gym Up at Night My thoughts. I have terrible sleeping habits because my mind constantly wanders. 2018 Continuing to grow and learn both personally and professionally

RE&F - Next Gen

NY CO-CEOs, BOWERY VALUATION Software company redefining the commercial appraisal space Age 28; 29 Residence East Village, NY Education McGill University;

52

REAL ESTATE & FINANCE

LA

MANAGING DIRECTOR, KENNEDY WILSON A global real estate investment company Age 38 Education University of Arizona Industry Real Estate & Finance Company HQ Beverly Hills, CA Notable Projects Acquisition of re-positioning of 400-430 California Street, San Francisco, CA; acquisition and stabilization of 90 East, Issaquah, WA; stabilization of 150-151 South El Camino Drive, Beverly Hills, CA Advice Have a plan, and never be afraid to make decisions. Success Being excited each and every day to get to live the life you have without money or other people to validate you Mentors My mother—she gave me life—and Moshe Silagi—he changed my life

LUKE MORRIS

LA CO-FOUNDER, VP OF PRODUCT, CREXI Commercial real estate marketplace for brokers with tools to manage the process from listing to closing


NEXTGEN 10 REAL ESTATE & FINANCE

Age 31 Residence Venice, CA Education USC Industry Real Estate Technology Company HQ Venice, CA Notable Projects Co-founded CREXi, launched MVP in 6 months, grew user base to 65,000, and more than $350B in active properties ($1 trillion in listings to date) Advice Love what you do and make an impact, and naturally the money will come. Success Changing my industry by increasing productivity and decreasing costs Mentors My father, Clark Landry, Justin Kennedy Local Companies Admired Great White Restaurant, SpaceX, Swell Energy, Tesla First Job Gardener at a hotel in Costa Rica (16 years old) Guilty Pleasure Sour Patch Kids and Ed Sheeran In the Morning Hot water with lemon and apple cider vinegar Before Bed Cup of water and “SportsCenter” Up at Night My employees 2018 CREXi to $100M valuation, say “yes,” and do more yoga

2/2 CSQ SPRING 2018

CARISSA SHROCK OYEDELE

Advice Always be open to accepting new opportunities. Don’t say “no” unless you have to. Oftentimes those opportunities open doors to additional, grander opportunities. Success Setting challenging goals and achieving them with passion and self-betterment along the way Mentors Krista Becker, Principal at ZGF; John Ruble, Partner at Moore Ruble Yudell Local Company Admired EmpowHER First Job Working as a sales associate in a tennis shop in high school Guilty Pleasure Anything chocolatey, nutty, and salty— all together In the Morning Coffee! Up at Night At the current moment, my infant son keeps me up but prior to his birth in December, any unresolved drawing or spacial challenge. 2018 Mastering work-life balance

RE&F - Next Gen LA ARCHITECT & SENIOR ASSOCIATE, MOORE RUBLE YUDELL ARCHITECTS & PLANNERS International architecture, interior design, planning, and urban design firm Age 38 Residence Mar Vista, CA Education Cal Poly SLO Industry Architecture Company HQ Santa Monica, CA Awards & Honors 2016 AIA National Young Architect; 2016 ENR California Top 20 Under 40 Notable Projects U.S. Embassy in The Hague, Netherlands; U.S. Embassy in N’Djamena, Chad; U.S. Embassy in Berlin, Germany; University of Virginia College of Arts & Sciences South Lawn

MARK ANTHONY THOMAS

NY

SENIOR VP, NYC EDC Nonprofit corporation that promotes economic growth across New York’s boroughs Age 38 Residence Brooklyn, NY Education University of Georgia (B.A.); Columbia (M.P.A.); MIT (M.B.A.) Industry Economic Development Company HQ New York, NY Awards & Honors Mix of journalism and leadership awards Notable Projects Director of LA Mayor’s Operations Innovation Team; led the team that identified all the real estate in Los Angeles’ portfolio Advice Go where the opportunities are; that will drive where you attend school, live, and help dictate where you should work. Success High-quality work that inspires and sets the context for a greater challenge Mentor Michael Kelly, Executive Director, LA Coalition for the Economy and Jobs Local Companies Admired AECOM, Center for an Urban Future, Gensler, Regional Plan Association First Job Bussing at a steakhouse in Stone Mountain, GA Guilty Pleasure Memes In the Morning Gaze out the window at the city. Before Bed Plan for the day ahead. Up at Night Maximizing my impact 2018 Understand economic issues more extensively, write poetry more often, and attend more theater shows

53


1

VISIONARY LOS ANGELES DORENE C. DOMINGUEZ CEO AND CHAIRWOMAN VANIR GROUP OF COMPANIES

Though The Vanir Group of Companies has completed more than $23B in construction services and projects, Chairwoman Dorene C. Dominguez is proud to tell you that she—and the company—are just getting started By Subrina Hudson

DORENE C. DOMINGUEZ Age 55 Residence Brentwood, LA Education Notre Dame (B.S.) On Wrist Cartier In Garage Mercedes Business Over a Drink Ivy Restaurant Travel The world Definition of Success Win/Win VANIR GROUP OF COMPANIES Founded 1964 HQ Sacramento, CA Employees 400 Competency Program,

RE&F - Dominguez

Mentors Parents, The LandLady Network Charities Supported The Dominguez Dream, PRIDE Industries, University of Notre Dame Latino Studies Advisory Board, Catholic Education Foundation Professional Affiliations C200, CalChamber, USC Lusk Center, YPO, CMAA

project, construction management, and real estate development $23B Projects delivered since inception #26 in revenue by Engineering News & Review

Dorene Dominguez was ready for a career in politics—not the family business. But when her father, H. Frank Dominguez, passed away in 2004, she stepped in to pick up the torch. The CEO of real estate development and management firm The Vanir Group of Companies. has helped grow the business to 400 employees across 17 offices, and her sights are set on making the business a recognizable name nationally. “I think 17 offices is not enough in terms of really having a national platform,” Dominguez says. “Right now, many people say, ‘Who’s Vanir?’ We’re getting there but are not quite there yet.” Vanir (pronounced Van-er) operates three subsidiaries that includes construction management, real estate development, and clean energy solutions. It’s completed more than $23B in services and projects while constructing hotels, schools, hospitals, and prisons. The city of Los Angeles awarded Vanir a $30M, seven-year contract in 2016. The deal is part of L.A.’s $14B capital improvement program at Los Angeles International Airport and Van Nuys Airport. The enterprise is one of the largest public works projects in the city’s history and will be completed by 2023, according to city officials. Dominguez says it’s tough to find contracts if you’re not a major firm like AECOM and Bechtel, but the City of Los Angeles leveled

54

REAL ESTATE & FINANCE


the playing field by offering airport contracts for small, medium, and large businesses. “Being midsize, we’re kind of awkward,” she says. “We’re not old enough to drink and too old to play with toys [so] it’s very difficult to compete with the big boys.” However, that may soon change as the company is in the midst of drastically altering the downtown Sacramento skyline. It’s planning to construct a 44-story tower across the street from the Golden 1 Center. Dubbed “Vanir Tower,” it will be the tallest in downtown Sacramento and would house Vanir’s headquarters, an InterContinental Hotel & Resort, and Capital Grille restaurant. Flying under the radar but not to be overlooked in the announcement of Vanir Tower, the project helped pave the way for Dominguez to become a minority owner of the Sacramento Kings—making her only the second female owner in the NBA and only Latina owner in all of professional sports. Former Sacramento mayor Kevin Johnson approached Dominguez with the opportunity, citing the new sports arena and her plan to construct Vanir Tower. “He said this would be a great investment, I would make history, and it would be great for the community,” she says. One unexpected surprise following her stake in the team was the boost it would give to her business. “It’s exciting to be a part of the NBA and now I’m in this club where I see consistently dealflow and that means opportunity,” she observes. Start of a Legacy

impacted the company’s profits. Dominguez said it was a major contributor to the company’s financial woes and it pushed the business into filing Chapter 11 bankruptcy in 1988. At the time, Dominguez was finishing college at the University of Notre Dame. She was actively involved in the Young Republicans National Federation and her speeches caught the eye of Mississippi Governor Haley Barbour, chair of the Republican National Convention, who approached Dominguez about running for Congress. “Working in politics—that’s a hard sport to play in, and though there were a lot of press releases within our community about the bankruptcy, there would’ve been overwhelmingly more negative coverage if I had run for Congress,” she explains. Dominguez said it’s why she decided to work alongside her brother—to protect her father. The siblings took over the company and expanded the business, adding Vanir Energy, and after her brother passed she stepped in to take control.

to her executive and finance team members coupled with meetings throughout the day. “There is no work-life balance,” Dominguez says. “During Thanksgiving holidays, my dad would talk about business. There was no ‘off’ button. It kind of all blended. So I’ve been unsuccessful [but] I’m happy. I love it.” The executive also supports a number of organizations including The Dominguez Dream, a nonprofit that supports elementary schools in underserved communities by offering educational programs in science, math, language arts, technology, and engineering. She sits on a number of boards such as the University of Southern California Lusk Center for Real Estate, Cal Chamber, PRIDE Industries, KB Homes, and CIT Bank. It’s important for Dominguez to expose the younger generation to the possibility of a career in business and engineering. “Many times you have to see someone who looks like you in order to have dreams and be exposed to something different,” she says. “When I’m speaking to children that want to be engineers and their faces light up, I light up. My heart leaps for joy because I know I created a path for somebody.” But the real estate veteran said she still faces challenges such as not being taken seriously in business meetings because she doesn’t look like a contractor. Yet, Dominguez also views it as an opportunity to educate that person and expel any stereotypes. Her focus now is to add an office in Florida and Washington, D.C. as well as boost federal contracts—a challenge as the company will have to compete with construction giants like AECOM and Bechtel. Dominguez is up for the challenge and has a strategy in place. Plus, she has a legacy to continue. “I’m about discipline, diligence, and success. Not about gambling,” she says. “[Vanir] is something that’s been bestowed upon me that I want to take really good care of.” end

RE&F - Dominguez

Vanir was founded in San Bernardino in 1964. The name comes from Norse mythology and represents health, prosperity, and fertility. Dominguez said her father started small by first acquiring a duplex then a triplex and eventually, an apartment building that the family also called home. “We all painted the walls and cleaned the carpets and got it ready for the tenants,” she says. “I mean we really started with modest beginnings.” Dominguez is a middle child. She has an older brother, Richard, who passed away in 2007, and a younger sister, Diane, who has Down syndrome. By the late 1980s, Vanir ranked as the eighth largest Hispanic owned business in the U.S. by the Hispanic Business Journal. The company was taking on large projects in San Bernardino and Texas including a large entertainment mall in San Antonio. The center had the support of former San Antonio mayor Henry Cisneros and called for an office building, hotel, and theme park. “It was a fabulous idea [and] when entertainment malls were not as common,” Dominguez says. “However, there was a freeway that was being constructed near it and prohibited access.” The lack of traffic meant no business and

CSQ SPRING 2018

One of Vanir’s flagship projects, Vanir Tower, is located in downtown Sacramento across the street from the Golden 1 Center

Leaving an Impression

Dominguez said she leans heavily on her executive team to manage the day-to-day as she focuses on the big picture—steering the company to more growth. The self-described “early riser” starts her day at 4:30 a.m. Her first call is at 7:00 a.m. with Vanir Construction Management President Guy Mehula followed by additional calls

55


2 CHRISTOPHER C. MARTIN

Age 67 Education USC (B.A.) Residence San Marino Family Wife Jeanette; Children Colleen Martin McGuinness, Jeffrey, Patrick Wrist Apple Watch Series 3 and Rolex GMT Submariner

VISIONARY LOS ANGELES

The third generation of the family firm that has shaped the Los Angeles skyline—most recently with the Wilshire Grand—opens up about the richness of resources, the commitment to family, and the importance of excellence without awards By Jessica Ferguson

CHRISTOPHER C. MARTIN CHAIRMAN & CEO, AC MARTIN

Garage BMW Model M6 Twin Turbo, 1965 Shelby Cobra (home build), and 1983 Jeep CJ7 (full off road) Hangar Cessna T182 Turbo, 4 place, single engine, high performance; Triumph 1974 Trails 500cc twin Business Over a Drink California Club Travel Yosemite

Success Make the world a better place Charities CHLA, LA Orthopedic Hospital, USC, Carmelite Sisters Orgs. & Affiliations LA Area Chamber of Commerce; LA Central City Association; LAEDC; LA Business Federation; Dean’s Advisory Council, School of Architecture, USC

AC MARTIN

150+ Design Awards (regional, state, national) Notable Projects Wilshire Grand Center (2017) Jill and Frank Fertitta Hall at Marshall School of Business, USC (2017) LA County Hall of Justice Rehabilitation Project (2015)

Founded 1906 HQ Downtown LA Employees 203 18M sq. ft. of buildings in Downtown LA portfolio 3.5M+ sq. ft. of LEED Certified Building 7 buildings listed as Cultural Monuments by the City of LA

Tutor Campus Center, USC (2010) LA City Hall, Seismic Renovation Project (2000) Under Development LAX Terminal Cores Project; State of California Natural Resources Agency Headquarters Building

Often, the innovators and changemakers in Los Angeles have brought their talents, vision, and resources from elsewhere in the hopes of breaking new ground in a constantly evolving metropolis. For Christopher C. Martin, however, Los Angeles is as much a part of his family history as is architecture, design, and innovation. Since they came to California by covered wagon and settled in the Oxnard Valley in the 1840s, Martin’s family and their ancestors have made an expansive and lasting impact on the shape and structure of California, most notably in Los Angeles. Now, nearly 180 years later, Martin and his cousin, David Martin, sit proudly at the helm of AC Martin, fresh off the completion of their tallest project yet: the Wilshire Grand—a building that created thousands of jobs, changed building safety codes, and broke records as a consequence of artistry, rather than competition. With every detail of the building’s design offering a subtle homage to the California landscape, the skyscraper is as much an expression of home as it is of opportunity for the city’s occupants. But for such an extravagant accomplishment of both architecture and planning, it was one that Martin almost didn’t undertake—until it became a labor of love. The Family Business

1 56

REAL ESTATE & FINANCE

The grandsons of landmark designer Albert C. Martin Sr., both Chris and David stepped into the shoes each of their fathers wore—those of architect and structural engineer. “As a kid, I realized that a lot of the really famous buildings in the Los Angeles area were done by our family firm, most notably Los Angeles City Hall, which my grandfather did in 1927,” Martin reminisces.

Photos: Courtesy of AC Martin

RE&F - Martin


“My family had some involvement in the development of the city’s infrastructure, the buildings, the universities, the waterways, even the power systems. The discussion always ran through our family around the dinner table about how to make the community better, how to plan for very long term, how to understand the needs of the future, and what our plans should be today.” While this kind of systematic and thoughtful planning helped yield their firm’s impressive 100-plus-year portfolio, at the family’s core was an interest in tinkering and a culture of hands-on innovation. “Experimentation was standard,” says Martin of his childhood. “We operated on the questions of, ‘How do things work?’ and ‘How do you make them better?’” From cars to gocarts to motorcycles (and eventually—at the prompting of his son, Patrick—planes), Martin thrived on his passion for taking things apart and putting them back together better, faster, and more elegant than before. An Abundance of Clay

During the corporate building boom of the 1970s and ’80s, the cousins’ complementary creativity allowed them to ascend to the ranks of their fathers. “At one point in time, we may have had 8 million sq. ft. under design and construction, just in five towers alone,” says Martin. “There weren’t a lot of competitors at that point, and the city was booming. We were doing so many office buildings that I used to say, ‘Architects need to have the clay to work with, and man do we have a lot of clay.’” As the city evolved and its industries continued to shift, so did Martin’s approach. From corporate buildings and financial institutions to 60,000-plus units of adaptive reuse apartments in Downtown alone, Martin and his team remained agile, inspired, and receptive to the pulse of the city itself. “It wasn’t my intent to go into high-density housing,” reflects Martin. “I was trying to solve a problem of empty, vacant buildings.” Sustainability is, after all, a core value of the AC Martin legacy. “In our family, you don’t waste precious resources,” he says. One of Martin’s favorite buildings in their portfolio, the LA City Department of Water & Power (LADWP), harnesses natural light through its floor-to-ceiling windows, converts residual electrons from the power plant for heating, and is cooled through the water fountain system that surrounds it. For a building completed in the 1960s, this conservation of energy and resources was well ahead of its time, and the building now boasts a LEED Gold certification on its fiftieth anniversary. “That was a wonderful example of the simple concept of not wasting precious resources, and using the valuable materials of power, water, and light in an ecological way.”

RE&F - Martin

CSQ SPRING 2018

2

1. J. Edward, Christopher C., David C., Albert C. Martin, Jr. outside AC Martin’s HQ at the Fine Arts Buildings in Downtown LA in 1984 2. Wilshire Grand, opened in 2015, is the tallest building west of the Mississippi River at 1,099 feet

Elevating Excellence

While accepting an award from the LA Chapter of the American Institute of Architects, Martin shared an unlikely bit of advice passed down to him by his father from his grandfather. “He said to me, ‘Chris, remember this: Always give your clients a good floor and a good roof—and don’t win any prizes. Prizes are not your goal, they are a consequence of service to your client.’ There were probably 500 architects in the room,” recalls Martin. “And it was so foreign to them. I told them, while winning an award, that winning awards was not our goal. Our goal is to make our clients

and the community successful from the impact of our work.” So when the Wilshire Grand project came along, prizes were not in the forefront of Martin’s mind. “I had been working with my father and uncle for years on how to attract foreign capital direct investment into Los Angeles,” says Martin. “I had developed a relationship with a trustee of my alma mater, USC—a man named Chairman Y.H. Cho of Korean Airlines.” Connected casually through current USC President and close friend Dr. Max Nikias, Martin assumed he was being introduced to Cho (whom he at first thought was a pilot) because of a mutual love for airplanes. Many years and projects later, Cho asked him to help with the Wilshire Grand. “He told me his real motivation was that the Korean population in Los Angeles is the second largest population of Koreans in the world, and he wanted to do this as an anchor for his relationship with the United States,” says Martin. “He wanted to make a very important signature project in Los Angeles as a way of responding to the U.S. investment in South Korea. It was a good idea financially, but it was also a personal and cultural expression.” Now the tallest building west of the Mississippi, the five-year, $1.35B project involving 11,000 people all over the globe was a huge undertaking to which Martin originally didn’t anticipate being able to dedicate more than his architectural eye. “Chairman Cho was asking me to also be the Development Manager,” says Martin. “He had asked me twice, and I’d refused him both times.” That is, until his son Patrick passed away from leukemia shortly after ground was broken on the project. The third time Cho asked, Martin accepted—in memory of his son and free of charge. “We finished it on time, under budget, and with zero complaint or lawsuit problems,” Martin muses. “It’s kind of a hallmark project in LA … but for me, it was just a labor of love. Beautiful project.” While Martin attributes much of his wisdom and success to the generations that preceded him, he looks toward the future through the lens of a lesson he learned alongside AC Martin’s fourth generation, his late son Patrick. As a boy, Patrick came home one day with an unquenchable desire to fly an airplane. Martin remembers responding, “Well, if we need an airplane, I suppose we’ll have to build it.” What followed was a 6,000-hour journey to build the best, fastest, and most advanced airplane. “And we did it, together,” says Martin with pride. The lesson learned by father and son during those many hours has stuck with Martin, who reflectively notes, “After doing that, we realized we can do anything.” While the Martin family has certainly done their fair share for Los Angeles to date, there is certainly more to come. end

57


1

VISIONARY NEW YORK PAUL SCIALLA CEO, DELOS

Inspired by lessons learned on Wall Street, Paul Scialla has set out to disrupt real estate through wellness, bringing enhanced health outcomes directly to the people By Whitney Vendt

PAUL SCIALLA

DELOS

Age 44 Residence Meatpacking District, NY and Beverly Hills, CA Education NYU Travel Anywhere with a beach Success Inspiring optimism Mentors Parents Charities Supported Chopra Foundation, amFAR

Founded 2012 HQ New York City Employees 125 Core Competency Wellness real estate and technology Mission To merge building science with the medical sciences Scale More than 750 projects in 32 countries

Disrupting a $180-trillion asset class is no small task, but that’s exactly what Paul Scialla, founder and CEO of New York-based developer Delos, has spent the past seven years of his life working to achieve. It started when Scialla began noticing the green building trend in real estate, wondering why there wasn’t a ‘well building’ trend focused on human health. “The whole point of buildings is to put people inside of them,” Scialla notes. “There was a lot of focus on environmental sustainability in real estate, but I didn’t see much focus on what a building does to the occupants inside it. We spend 90% of our time indoors, and yet little had been done to merge real estate and health.” In a way, the concept seems almost too obvious: Health and wellness have been infused into many other product categories, from organic produce to ergonomic furniture, so why hasn’t the same been done for real estate? It turns out there are several reasons, the primary one being that there simply hasn’t been an organizing body focused on setting a standard and validating it through science and research. Fifteen years ago when green building and the LEED certification process launched their ultimate success blazed the trail for a whole new vertical in real estate. Further, new advances in technology over the last decade have transformed the way researchers can measure and quantify health outcomes using wearables, environmental data capture, and sensory technology. “We’ve got eight years of research connecting everything that can be measured around you with everything that can be measured inside you,” Scialla explains. The body of research related to the spatial environment and how it impacts the human condition has been instrumental in building the library of research on which Scialla’s team has built their movement’s foundation.

RE&F - Scialla

Putting Health First

Putting that team together and conducting that research was the first step in making well building a reality. Scialla didn’t have training as a doctor or an architect, but he did have 18 years of experience on Wall Street and a commitment to doing things in a thorough manner. “Sometimes I think having not been 58

REAL ESTATE & FINANCE


THERE WAS A LOT OF FOCUS ON ENVIRONMENTAL SUSTAINABILITY IN REAL ESTATE, BUT I DIDN’T SEE MUCH FOCUS ON WHAT A BUILDING DOES TO THE OCCUPANTS INSIDE IT. WE SPEND 90% OF OUR TIME INDOORS, AND YET LITTLE HAD BEEN DONE TO MERGE REAL ESTATE AND HEALTH.

in the sustainability, real estate, or medical industries gave me a perspective that allowed me to zoom out and ask questions that had not been asked before,” he observes. Scialla started by putting doctors and architects together and asking provocative questions such as, ‘What can we introduce in our design and operation of buildings to aid in preventative medical intervention?’ Beyond stimulating conversation, he was fascinated to discover that the two professions had never really converged at an industry level. Once they did, it quickly became clear that the built environment had a profound effect on cardiovascular, respiratory, cognitive, and sleep outcomes. The opportunity to address the issue at an industry level was gigantic. “Merging $180 trillion of asset class real estate with the fastest growing and most important industry—health and wellness, which is now up to over $4 trillion a year—is an enormous economic opportunity,” Scialla says. “And there’s the societal opportunity of delivering prevention into people’s daily lives, using real estate as that delivery vehicle.” The best part? It requires rearly zero behavioral change on the part of the occupants. “The U.S. spends 18 percent of its GDP on healthcare. When I think of the prospect of using real estate to deliver passive prevention … we have a real shot at influencing change at a societal level,” Scialla notes, adding that, “five percent of chronic health outcomes are genetic, another 10 or 20 percent depend on a person’s lifestyle, and the rest—up to 70 percent—is influenced by your environment.”

WELL is the result of seven years of work aimed at merging medical and building sciences. It consists of seven main categories: air, light, water, nourishment, fitness, comfort (thermal and acoustic), and mind. In the end, the governing body of work and resulting set of protocols has been peer reviewed and vetted by industry experts from medical, academic, political, and industry professionals. For all of us—the “consumer”—WELL’s seven categories of external conditions have been identified as having a direct and longterm impact on biological outcomes. Occupants of both new and existing buildings (work and home) benefit from changes in these categories. Scialla recognized the difficulty they would have in scaling the healthy building movement and that they needed to create an ecosystem that allowed ease of entry and participation. The WELL Building Standard is governed instead by the International WELL Building Institute, a subsidiary of Delos, and registered as a public benefit corporation. To that end, there are now more than 2,000 WELL accredited professionals at various design, architecture, construction, consultancy, and development firm. “Our mantra all along has been that health and wellness in the built environment needs to be positioned as a right, not a privilege,” Scialla emphasizes. And the platform is spreading. WELL has been adopted in 32 countries, across nearly 800 large-scale development projects that include corporate offices, schools, retail, athletic facilities, and multi-family housing. Since most real estate professionals are familiar with the U.S. Green Building Council’s LEED environmental standards, the WELL program was built on the same technology platform and share the same third party certifying engine. Similarly, the WELL Certification process is aligned with international green rating systems such as BREEAM in Britain and Green Star in Australia.

RE&F - Scialla

Why Well Building?

The goal of Delos’ well building initiative is to take a holistic look at the intersection of health and real estate. For example, a building can have the best circadian lighting available, but if it doesn’t have clean air running through it, the health of the building’s occupants remains compromised. Scialla and his team set out to identify what categories needed to be created and addressed to achieve overall health. The result was the International Well Building Institute and the WELL Building Standard (WELL). Launched in 2014, the CSQ SPRING 2018

This is possible in part by cost-reduction efforts of the green building movement over the last fifteen years. Scialla emphasizes that the real secret is about making intelligent and informed decisions, not necessarily more expensive ones. The payoff, he notes, of having healthier, happier occupants is exponential. Who doesn’t want to have better sleep, more energy, and reduced healthcare costs? And as companies go, Delos is healthy indeed, employing 125 and growing rapidly. But their size is somewhat irrelevant: They’re deploying an entire industry to help them. “At the end of the day, it’s all about people. That’s critical. I also think it’s important to include as many people as possible for all their various individual expertise,” Scialla adds. While Scialla and his team have galvanized the real estate and wellness industries around them, they have also garnered support and investment from some of the world’s brightest minds and creative thinkers. Initially, Delos focused on new construction, but currently upwards of a third of their projects are on existing buildings. “Only two percent of all real estate in the U.S. is built new every year,” Scialla explains. “So there’s huge opportunity to renovate the remaining 98 percent. We’re making a concerted effort to make sure this program is conducive to any type of space at any type of demographic or income level.” What Scialla hopes for is a future where wellness real estate isn’t a novel concept but a normal way of life. “I define success by how many people you can positively influence,” he tells CSQ. “Already there are upwards of a million potential occupants of WELL certified buildings who are having their health outcomes enhanced. We’ve built these programs to be conducive at any level, from affordable housing all the way up to luxury.” end

Implementation

What about cost? Addressing all seven points of the WELL may seem like an expensive undertaking—until you realize that the incremental cost to achieve the WELL is roughly one percent that of normal construction. 59


2 LES HISCOE

Age 52 Residence Upper East Side, NY Family Wife, son Wrist Franck Muller Garage Range Rover Business Over a Drink Lavo, The Mark Travel Capri, Italy Charities Supported Rebuilding Together NYC, Summer Search

VISIONARY NEW YORK

Les Hiscoe is leading Shawmut Design and Construction—a $1.2B company and one of the country’s largest design and construction firms—toward new growth across verticals, from luxury retail to academia and health care By Andrea Zarczynski

LES HISCOE CEO, SHAWMUT DESIGN AND CONSTRUCTION

New York and Boston, Pan-Mass Challenge Professional Networks / Organizations ACE Mentor Program Greater New York, A Better City, Massachusetts Business Roundtable Awards & Recognition Rebuilding Together National Board Member of the Year

SHAWMUT DESIGN AND CONSTRUCTION Founded 1982 HQ Boston Offices 9 Employees 1,355 LA Projects Nobu Ryokan, Malibu; Louis Vuitton, Rodeo Flagship; Santa Anita Park, Arcadia; Soho Warehouse, Downtown LA (under construction)

NYC Projects Apple Cube, Fifth Avenue; The Met Breuer, Madison Avenue; Union Square Café, East 19th St.; Columbia University, Broadway 2017 Revenue $1.2B Awards & Recognition Fortune Top 100 Best Workplaces; Inc. 5000; Named “Best Place to Work” 53 times (regional and national)

Photos: Courtesy of Shawmut Design and Construction

RE&F - Hiscoe

60

REAL ESTATE & FINANCE


Les Hiscoe proves that building a success story is a marathon, not a sprint. The visionary and now CEO of Shawmut Design and Construction spent a decade “in the field” developing leadership expertise before joining Shawmut in 1998, playing a pivotal role in the company’s growth from $100M to $1.2B in revenue over the past two decades. The Manchester, NH native defines success in his industry as effective collaboration. “Success is when I get that call from a client saying, ‘Your project manager was the best I have ever dealt with.…’” he says. “That’s success to me.” Hiscoe grew up with one sibling and two working parents. His father pursued a brief career as a professional baseball player but suffered an injury soon after he was drafted. That setback only encouraged him to guide his son toward also developing a passion for sports, which led Hiscoe to become highly competitive, dreaming of life as a professional basketball player. As it often does for children with lavish dreams, reality set in and Hiscoe instead went on to earn a civil engineering degree from the University of New Hampshire in 1987.

1

2

Construction Ahead

In search of a career that would allow him to spend time outdoors, the visionary signed onto a construction project during the summer of 1985 to develop office space for Dean L. Kamen, who would one day invent the Segway. Hiscoe enjoyed his work and found a part-time construction job the following summer. His first project was at the university, and it was then, he says, that his career in construction began. “I really loved the tangible aspect of saying I built something, or that I led a team that built something,” Hiscoe explains. “From very early on, I was hooked on that construction process… I really wanted to learn how to build.” The tactical and leadership skills that Hiscoe acquired as a project superintendent during the first 10 years of his career prepared him well for his later transition to management. Working in the field meant taking responsibility for all tradespeople, sub-contractors, safety, quality, scheduling, and building on a project. Hiscoe’s natural leadership ability became apparent over time. His patience and good listening skills helped him connect with, motivate, and guide varying personality types among tradespeople on site. He was decisive, yet willing to consult his team and adapt plans accordingly. “Looking back, I think being on-site for those 10 years was probably the best thing that I could have done for my career,” Hiscoe reflects. “I learned early on that just because I was young and in charge, it wasn’t my place to tell tradespeople what to do, but to understand what they do, and then guide them along a schedule.”

1. Nobu Ryokan Malibu, designed by Shawmut, is adjacent to Nobu Restaurant in Malibu, CA 2. Inside the impressive Louis Vuitton flagship store on Rodeo Drive in Beverly Hills, CA

RE&F - Hiscoe

CSQ SPRING 2018

While working in his late 20s as the youngest superintendent on a high school building project, he soon realized that he was ready for a change. Having built almost every different type of structure, he was curious to experience first-hand how a project comes together through project estimates, hiring, contracts, finances, sketches, and more. “It clicked that this is really all about people, and it’s all about people management,” explains Hiscoe. As Luck Would Have It

Though he was not looking to leave his company, Hiscoe agreed to an interview at Shawmut in Boston. Upon walking into the office, he was immediately attracted to the fast-paced, energetic office culture. His first day as director at Shawmut was St. Patrick’s Day in 1998. Hiscoe moved down to Boston and began growing within the company as the company itself grew. While running the retail division in 2003, Hiscoe opened a new office in New York to enhance their presence in the luxury retail space. He married his wife one year later, and the couple has since lived in the city with their now 10-year-old son.

As Hiscoe was promoted to COO in 2012, then CEO in 2015, he kept his focus on customer experience and delivering above client expectations. Shawmut became 100 percent employee-owned in 2005, and today boasts a diverse client portfolio managed by nearly 1,400 employees in nine different offices, including Chicago, Las Vegas, Los Angeles, and Miami. “When I walk into the LA office, it feels different than the New York office, but the core values and customer delivery are the same,” Hiscoe says. Shawmut launched as a fine dining restaurant builder in 1982, eventually expanding into the high-end luxury retail and hospitality markets. Health care and academic clients came next, as their long-lasting projects balanced the company’s existing list of quick-moving endeavors. A sports vertical also appeared with numerous amenity projects at various football, baseball, basketball, hockey, and horse racing venues across the country. Most recently, the company launched a residential division – Shawmut Luxury Homes – in 2017. Expertise-driven verticals at Shawmut are what power its diverse portfolio and unique custom client experiences. For example, Shawmut’s national platform of expert staff takes on projects like installing Instant Replay and Wi-Fi in all thirty Major League Baseball (MLB) stadiums. As CEO, Hiscoe remains focused on his company’s culture, inspiration, and reputation. Shawmut is an agile operation with the competitive advantage of meeting clients’ changing needs, which have recently shifted toward offering their own customers better experiences. Hiscoe has garnered advice from various people throughout his professional life. He says, “People ask me, ‘Where did you get your M.B.A.?’ The flippant answer is, I got it at Shawmut, growing $100M to $1.2B in revenue over 20 years.” Construction in the Digital Age

The visionary is excited to be at the forefront of construction in a digital society. Shawmut’s company culture emphasizes transparency and enabling clients to challenge big data competitors. With 500 projects completed last year, Hiscoe predicts that the next decade will bring even more growth in health care, as well as new construction productivity, and possibly even new Shawmut geographies. Hiscoe begins his day early with a workout around 5 a.m. He finds his long days to be energizing, balancing them as he does with cycling trips and Friday mornings spent walking his son to school. “I’m honored to lead Shawmut,” Hiscoe concludes. “It’s a company filled with great people. I’m really proud of our client list, reputation, and how transparent, ethical, and value-driven we are. I think my job is to bring the energy and make sure that we’re all having fun.” end

61


VISIONARY OF THE YEAR

NEW YORK

Words by Allison Brunner Photos by Dave Suchanek & Adam Bussell

Fueled by compassion and armed with curiosity, Charles S. Cohen has been driven to succeed on both coasts in multiple verticals

From Real Estate to Design, Film to Wine RE&F - Cohen

Charles S. Cohen CSQ SPRING 2018

63


CHARLES S. COHEN Net Worth $3.3B Age 66 Residence Manhattan Family Wife, 4 children Education Tufts; Brooklyn Law School

COHEN BROTHERS REALTY CORP. Founded 1980s HQ New York City Employees 700+ Notable Properties Pacific Design Center

National real estate developer. Film producer, distributor, and exhibitor. Fashion entrepreneur. Vineyard owner. Charles S. Cohen has excelled brilliantly in each of these endeavors and more. So it isn’t a stretch when he draws the comparison to Woody Allen’s character from the 1983 film Zelig, about a man with the uncanny ability to fit into significant situations wherever he went. While Allen played to the comedic aspect of such a condition, Cohen has similarly managed to turn each of his varied pursuits into profitable ventures. In fact, two films that Cohen co-produced and distributed in the U.S. were recent Oscar contenders at the 90th Academy Awards in March 2018. Neither film earned a statuette, but the nominations represented just one more feather in the cap of a man who has worn many hats—stylishly and without bluster. Last year, his foreign language entry, The Salesman, did win the Oscar. To date, his Cohen Media Group has garnered eight 64

REAL ESTATE & FINANCE

RE&F - Cohen

(PDC) West Hollywood, Decoration & Design Building (D&D Building) Manhattan, Design Center of the Americas (DCOTA) Dania Beach, 623 Fifth Ave., 622 Third Ave.

CURATED LIFESTYLE COLLECTION

Fashion Richard James, Harrys of London Lighting Marvin Alexander Wine Château de Chausse

I WAS FORTUNATE ENOUGH TO HAVE AN ENTRÉE TO REAL ESTATE AT A CERTAIN PLACE, AND I APPLIED MYSELF. I DIDN’T WANT TO BE JUDGED AS SOMEONE WHO HAD SOMETHING HANDED TO THEM, BECAUSE IT WASN’T LIKE THAT AT ALL.

Film Production & Distribution Cohen Media Group, Cohen Film Collection Film Exhibition Quad Cinema, Larchmont Playhouse, La Pagode (Paris, France)

1

Real Estate Cohen Brothers Realty Corp. Hotel Ownership & Management Le Méridien, Fort Lauderdale

Academy Award nominations in the past 10 years. Welcoming CSQ into his penthouse office at the Pacific Design Center’s Red Building on San Vicente Boulevard in West Hollywood, the affable 66-year-old developer, owner, president, and CEO of Cohen Brothers Realty Corporation is thoughtful as he discusses his colorful career against the city’s stunning panoramic backdrop. Aided by the benefit of hindsight, he observes, “It is interesting how so much builds upon itself.” As a child raised by the generation that came of age during the Great Depression, Cohen’s outlook on life remains practical and realistic. “If you work hard, and stay focused, and you live the kind of life you think you should be living—which means in balance, family, work, all of that—you’re able to really do all of the things you thought about doing,” says Cohen. The latest configuration of his interests?


I’VE ALWAYS BEEN A LOVER OF DESIGN. I ALWAYS THINK OF DESIGN AS THAT WHICH ALLOWS YOU TO EXPRESS YOUR OWN INDIVIDUALITY.

father’s, Cohen was nearly as close to his grandparents as his parents. “My grandfather was full of life,” he fondly recalls. “He took me everywhere to teach me the history of New York City.” Young Charles always had a summer job. From showing apartments for his family’s real estate business at age 14 to selling men’s clothing at Alexander’s Department Store to working for Citibank, he quickly learned the importance of a strong work ethic, compassion, socializing, and picking up new skills. Cohen’s father, Sherman, was a self-made hard worker who moved from Virginia to New York, finding success as the area’s youngest Oldsmobile dealership owner. He eventually went into real estate with his two brothers, forming Cohen Brothers Realty & Construction Corporation. Cohen looks back with fondness on his father’s ability to let him choose his own path. “He was a great role model and a great delegator,” recalls Cohen. “It was so natural; he didn’t tell me what to do.”

1. Cohen’s office in the Pacific Design Center’s Red Building boasts sweeping views of Los Angeles

Paving a New Path

2. International Plaza at 750 Lexington Avenue 3. Cohen Media Group won an Oscar in 2017 for Iran’s The Salesman which took home Best Foreign Language Film

The first person in his family to attend and graduate college and law school, Cohen was nevertheless unsure of his career direction. When he was waitlisted for the Wharton Business School, he decided to go to NYU for a year and a half and then transferred to Boston’s Tufts University as an English

RE&F - Cohen

major. Cohen enjoyed his studies and extracurricular activities and the opportunity to nurture his love of literature and drama; he even made a short film. Cohen returned to New York after college to attend Brooklyn Law School, undertaking challenging real estate and entertainment law courses. He decided he wanted to become an entertainment attorney, and then a producer. Yet despite applying to and interviewing for positions throughout New York, he didn’t get hired. Uncertain of his next step, Cohen consulted his father about an opportunity to work for Chemical Bank. Although he’d never taken a business course, he went through intensive credit training for six months, which enabled him to be very successful at helping the bank straighten out some problematic real estate loans. He also learned an important lesson during his three years with the bank: “If you learn how a problem becomes a problem and you learn how to fix a problem, then you can learn how to avoid a problem.” Taking the Family Name to New Heights

When Cohen’s father approached him in 1979, inviting him to learn the real estate business by helping with an office building, his response was characteristic: “Being an opportunist, I thought, ‘Why not?’” So Cohen started helping … with everything. He

The Curated Lifestyle Collection, a luxury umbrella that covers the totality of his endeavors—design centers, a hotel, a winery, men’s clothing companies, and film-related projects. All pertain to design and a certain quality of life that flows through all of these undertakings, which really are all connected. With a net worth of $3.3B (Forbes 2018), the Manhattan-based Cohen has built the lionshare of his wealth in property development. His forays into film producing and distributing and saving NYC’s legendary Quad Cinema when it was in danger of closing may have not been nearly as lucrative, but that’s beside the point; they have paid handsome dividends in furthering his ideals and values. Humble yet Industrious Roots

Born in N YC, Cohen lived on the West side until age 3 when his family moved to a small suburban Westchester town. He recalls a great childhood that included swimming, tennis, soccer, and going to summer camp. He particularly enjoyed digging deep into cinema history at the local library and watching independent and foreign films at the small town theater, which opened his eyes to the rest of the world. A third-generation American on his mother’s side and second-generation on his 2 CSQ SPRING 2018

65


learned about the management side of the business, office leasing, marketing, legal work, zoning, finance, working with space brokers—even how to run a cleaning company. Never an entitled child, a virtue he is instilling in his own children, Cohen worked hard and proved his value to the business. “I was fortunate enough to have an entrée to real estate at a certain place, and I applied myself,” he says. “I didn’t want to be judged as someone who had something handed to them, because it wasn’t like that at all.” By the early ’80s, Cohen noticed successful real estate operators buying existing buildings, then repositioning, redeveloping, and refinancing them. Seeing this area as an opportunity for him to roll up his sleeves and distinguish himself, he purchased his first building, which he still owns today. O ver t he nex t t wo decades, Cohen rose to a leadership position and eventually bought out his father and uncle. “I grew that business from three million square feet to twelve million square feet,” he recalls. “It brought me here, took me everywhere, and continues to fascinate me. I achieved what I set out to do.” Although Cohen himself has no brothers (he does have a younger sister), he kept the company name to honor his father and family. In addition, the banks know that the company has never lost a building, something unique in the industry. “I’ve always reinvested in the real estate and in people,” Cohen says.

IT’S GREAT TO TAKE THINGS YOU’RE PASSIONATE ABOUT, FIND A WAY TO CREATE A BUSINESS PURPOSE AND A BUSINESS PLAN, AND TO GET THE SATISFACTION OF HAVING ALL THESE PIECES WORK TOGETHER IN COMBINATION.

One way that Cohen effectively connected the design community to the PDC—indirectly marketing it at the same time—was by designating venues for spaces for food service. In partnership with Manhattan-based chef Charlie Palmer of Aureole, the PDC offered high-quality food during the day and hosted events in the evenings. Wolfgang Puck now handles the major PDC food venues. Cohen also made the parking more accessible, added a fitness center, and renovated a lecture hall into the Silver Screen Theatre, a major studio go-to place to screen the latest film projects. When the Red Building was added to the PDC campus, Cohen’s philosophy of community connectedness served him well; the project garnered unanimous support. “We took the community by storm in a good way,” he recalls. Parallel Pursuits

3. 135 E. 57th Street in Manhattan 4. Cohen Media Group won an Oscar in 2017 for Iran’s “The Salesman” which took home Best Foreign Language Film

While growing Cohen Brothers Realty, the budding Renaissance man began pursuing complementary passions for film, viticulture, and yachting. He credits good fortune and lessons learned with allowing him the freedom to follow his passions. “I was able, having put away enough resources, to experiment and try other things.” A movie trivia buff, Cohen even penned a book, Trivia Mania (The Movie), in 1985. It

RE&F - Cohen

Connected by Design

The element in life that has most influenced Cohen is design. “I’ve always been a lover of design,” he says. “I always think of design as that which allows you to express your own individuality.” With design centers from coast to coast in major markets of New York City, Southeast Florida, Texas, and Southern California, Cohen sees the design centers as the Neiman Marcus of design resources. “I would rather have vacant space than bring in a showroom of lesser quality,” he says. Cohen’s 1999 purchase of the Pacific Design Center (PDC) allowed him to merge his passions for design and real estate. As the largest property owner in West Hollywood, he became very involved in running the PDC, which serves as a merchandise mart for the design trade as well as a place for designers to perfect their craft. His vast experience in the real estate business has taught Cohen the importance of connecting with the entertainment, design, and philanthropic communities. “You want to become a nexus for all these different communities in a way that translates into business for the people you have come in to run their business here,” he explains. 3 66

REAL ESTATE & FINANCE


was when Cohen learned he had sold more books (186,000) than Mark Twain did in his lifetime, he wryly quips, that he decided he could retire as a writer. His affinity for film finally became another tentacle of his business interests when a friend’s wife asked Cohen to help finance a feature film she wanted to develop. Forming Cohen Media Group, he invested $300K toward the feature film, Frozen River, which won the Grand Jury Prize at the Sundance Film Festival and was nominated for two Oscars in major categories in 2008. Despite the film’s success, Cohen did not recoup his original investment. Deciding he must be on the wrong side of the business, he met an experienced HBO film executive and the pair went to Paris with another colleague for a meeting with film production and distribution firm StudioCanal. The firm asked if Cohen wanted to distribute a film they hadn’t yet sold; he did so in November 2010. The film subsequently earned an Oscar nomination for Best Foreign Language film. Cohen Media Group has had five Best Foreign Language Film nominations, with four in a row over the last four years. Reflecting on the film business, Cohen says, “Just like in any business, to be successful you need to find a niche, and you need to figure out how to be very good in that niche.” Cohen also owns outright or has the exclusive rights to over 1,000 classic films. His Cohen Media Channel on Amazon Prime debuted in February 2018 and initially offers 75 classic films, with more being added every month. The Cohen Film Collection includes 700 classic films from 1917 to 1972, which Cohen has been restoring and re-releasing. Included in the collection are the films of Buster Keaton, Douglas Fairbanks, Alfred Hitchcock, and Luis Bunuel. As a testament to his earnest interest, after Cohen bought Merchant Ivory, the film production company responsible for classic English period pieces such as A Room With a View and Howards End, he worked with company co-founder and director James Ivory to carefully remaster the library of 30 films. When Cohen attended the premiere of the re-release of Howards End with Vanessa Redgrave in 2016, it prompted him to muse, “I’m a little kid from New York … and I’m rubbing shoulders with celebrities … walking down the red carpet feeling like Zelig.” Yet another area where Cohen harbored entrepreneurial aspirations was menswear. At the behest of wife Clo 12 years ago, he paid a visit to Savile Row clothier Richard James, becoming a loyal customer, then owner, when he purchased nearly 90% of the company in 2017. He also owns British shoemaker Harrys of London in its entirety, another brand he has long patronized. As luck would have it, Cohen’s New York real estate holdings include a landmark

4

RE&F - Cohen

CSQ SPRING 2018

building on 57th and Park, which just completed renovations to include ground-floor retail. “It’s just so serendipitous, that it’s the right thing in the right place at the right time with the right people,” Cohen says of the fact that both Richard James and Harrys of London will be opening stores in the building this spring. In addition, Cohen recently purchased a winery just outside St. Tropez, Château de C hau sse, where he w i l l ex pa nd t he award-winning 30-year-old vineyard. Summing up his myriad pursuits, Cohen says, “It’s great to take things you’re passionate about, find a way to create a business purpose and a business plan, and to get the satisfaction of having all these pieces work together in combination.” Lessons Learned

One of the questions he’s often asked, Cohen says, is, “How do you do it all?” His answer is simple. “Manage and navigate. I think it’s all about finding ways to do all the things you enjoy doing.” Cohen knows when to be tough and when not to be, a quality embodied by a phrase he learned early on, “the iron fist in the velvet glove.” He views compassion as a vital ingredient for the successful management of life, and the key to his success in managing relationships can be found in his

philosophy about mentorship. “Anyone I ever worked with became a mentor,” he says. “I think that I am a very good student and I think it’s important to learn how to get along with all different types of people.” At his mother’s recommendation, he joined YPO in the 1990s, serving as education and chapter chair, an experience he recalls as life-changing. “It’s something I would recommend to anybody who has getup and go.” Acknowledging the difficulties that business brings, Cohen believes one must create cohesion through communication and trust, and perseverance. “If you can manage the downside, the upside will take care of itself,” he adds. Cohen is carrying on the tradition of excellence and hard work initiated by those who came before him, especially his father, who he lost several years ago. “You want to be proud of what you do, you want to contribute, you want the respect of your family, and you want to leave a legacy,” he concludes. His legacy? “Everything I do, and my children and family.” end

67


RE&F - Udvar-Hazy


VISIONARY OF THE YEAR

LOS ANGELES

Words by Jason Dean Photos by Dave Suchanek & Adam Bussell

After immigrating from communist Hungary and pioneering the airline leasing industry more than 40 years ago, Steven F. Udvar-Hรกzy has grown his $16B fleet to serve 90+ airlines in 55 countries

Making the World a Smaller Place RE&F - Udvar-Hazy

Steven F. Udvar-Hรกzy CSQ SPRING 2018

69


STEVEN F. UDVAR-HÁZY Net Worth $3.7B Age 72 Education UCLA Residence Beverly Hills Family Wife Christine, two sons and two daughters Business Over a Drink The ALC office

RE&F - Udvar-Hazy Travel New Zealand Success Aim high and then exceed that Charities NASM, Stanford University, Embry Riddle University, The Smithsonian, Harvard Westlake School

As a chi ld liv ing in Hungar y, Steven F. Udvar-Házy has vivid memories of sitting in his first-grade classroom. It was the early 1950s, and Hungary had become a satellite state of the Soviet Union following World War II. Students wore identical white shirts with red neckerchiefs, the requisite uniform for school children in communist-ruled countries. Surveying the classroom, young Steven saw no trace of Hungarian history or culture. Instead, staring down from pictures hung high on the walls were the stern faces of Vladimir Lenin and Josef Stalin. Daily lessons were supplemented with lectures – sometimes as long as 90 minutes as he recalls – steeped in propaganda, extolling the virtues of socialism and communism while demonizing the West. 70

REAL ESTATE & FINANCE

UDVAR-HÁZY OVER THE YEARS

1946 Born 1958 Moves to Sweden from Hungary 1959 Moves to New York City 1962 Moves to Los Angeles 1967 Brokers first sale of plane at age 21

1968 Graduates from UCLA 1973 Founds ILFC with Leslie and Louis Gonda at age 26 1983 Takes ILFC public 1990 ILFC is acquired by AIG 1999 Donated $66M to The Smithsonian 2010 Creates Air Lease Corporation

[WHAT] THOSE PLANES REPRESENTED, THE FACT THAT THEY COULD JUST TAKE OFF, WAS, FOR A CHILD, SYNONYMOUS WITH FREEDOM. FROM THAT MOMENT ON, AVIATION BECAME MY PASSION.

1

AIR LEASE CORPORATION (NYSE: AL) Founded 2010 HQ Los Angeles Employees 87 2017 Revenue $1.5B AUM $16B Scope Bought more than 3,000 commercial jet aircraft since 1973

“We had to sit there … with our hands behind our backs,” Házy recalls with calm vexation. “Listening to this constant brainwashing about how terrible the West was.” Fortunately, there would soon be a break in this oppressive cloud cover of indoctrination, providing a respite of wonder that would propel a boy’s journey to a place of possibilities and, eventually to becoming the visionary creator of an emerging industry. There was an airshow happening at a small airport just outside of Budapest, and Házy’s father got tickets. It was a transformational experience. “[What] those planes represented, the fact that they could just take off, was, for a child, synonymous with freedom,” says Házy. “From that moment on, aviation became my passion.”


A Harrowing Escape

The Hungarian Revolution of 1956, a twoweek uprising that brought about the collapse of the Soviet-led government, was a foreboding sign of more strife to come. As a new Soviet-backed regime re-established its grip on the country, the opportunity to flee presented itself. In the winter of 1958, after a couple false starts due to harsh weather, Házy and his family made it across the border, braving minefields, barbed wire, and lookout towers between heavy snowstorms. They eventually took refuge in Sweden. Házy’s father had a sister who had already successfully made it to New York City from Hungary. Within six months, the family obtained green cards and visas to emigrate to the United States. Házy arrived in New York with an English vocabulary that consisted of two words: “yes” and “okay.” He got into a fair share of fights at school, battling to hold his own against the tough children who saw him only as an immigrant outsider who notably didn’t play baseball. He was getting good grades in spite of the harassment, but his parents transferred him to a small parochial school on the west side of Manhattan. Házy credits the strict and sometimes intimidating Catholic nuns at Holy Trinity with helping to guide and stabilize his transition into American culture and customs. Having left all wealth and possessions behind in Hungary, the entire family endured a brief period of starting over. As his father had developed health problems that affected his ability to work, it was left to Házy’s mother, who worked for acclaimed fashion designer Pauline Trigère, to support the family. After school, at least twice a week by his recollection, Házy would take any combination of subways, buses, or cabs to LaGuardia or Idlewild (now JFK) airports to marvel at the activity. Talking his way into control towers, hangars—anywhere to be near the action— Házy would log information about the types of aircraft that different airlines flew, flight

patterns, destination cities, and anything else related to air travel. When Házy’s brother, four years his senior, landed a scholarship to study science at UCLA, another move was eminent. The balmy climate and relaxed pace proved too alluring to resist, and the family soon relocated to Los Angeles. Earning his pilot’s license at the age of 17, Házy adjusted nicely to the Southern California lifestyle. After graduating from University High School, he followed in his brother’s footsteps and attended UCLA, working as a lifeguard during the summers at Manhattan Beach, Redondo Beach, and Zuma Beach. “It was a great job,” reminisces Házy. “The starting pay was $2.04 an hour.” He and his brother would drive the 1956 black Oldsmobile convertible with red interior that they shared. One dollar would buy them four gallons of gas, enough for a few round-trips to the beach. Taxiing the Runway

While still in college, the young entrepreneur brokered an international deal that elevated his confidence. He learned that Air New Zealand had a 90-seat Lockheed Electra that it wanted to sell so it could upgrade to a new, four-engine, 150-seat Douglas DC-8 and begin offering flights to Los Angeles. “I found an airline in Alaska that wanted to buy that plane,” recounts Házy. “[Air New Zealand] wanted $1M. I said, ‘Will you pay me $50,000 if I have a buyer?’ They said, ‘Sure, come down.’ I had sent telegrams, so when I showed up with the pilot, they said, ‘Who is this kid?’ They had no idea I was just 21. That gave me confidence that this thing is doable.” After graduating from UCLA, Házy wasted no time in pursuing his dream to start his own airline. Identifying a potentially lucrative market along the coast of California catering to Vandenberg Air Force Base in Santa Barbara County, he lined up investors and started Astro Air, a small commuter airline that

hoped to connect Los Angeles and the Bay Area via Central California. His idea to start a regional carrier was ahead of the curve, but the numbers didn’t add up. “My projections on cost were too low and my optimistic projections on sales were too high,” he says. “So you can figure out what happened.” The company lost money (“postgraduate tuition,” Házy calls it), but the experience provided valuable insight that would fuel his next bold move. Házy realized he was paying the same monthly fee to lease his airplanes, regardless of the number of passengers on board. “The lessor was getting paid, no matter what. I said to myself, that’s a better business model [owning the airplane].” A second observation Házy made was to note the relationship between economics and developing technology. As the airline industry transitioned from propeller planes into the jet age in the 1970s, the cost of a typical airplane increased by up to five times, making ownership a prohibitively expensive venture for a growing number of airlines, particularly outside the U.S. “My whole idea was, if we could bring the latest, best airplanes to these airlines all over the world through the medium of leasing, they could be just as good as a U.S. airline, or an Air France, or a British Airways,” reasons Házy. “We [could be] a tool—a medium—for those airlines to modernize their fleets.”

RE&F - Udvar-Hazy

Taking Flight

Now just 26 years old, Házy heard that Aeroméxico was starting a new service from LAX to Acapulco, and the airline needed a Douglas DC-8 for the route. National Airlines in Florida had a used one for sale; the price tag was $2.2M. Házy and two business partners chipped in $50,000 each and arranged a meeting with Aeroméxico. Lacking the funds or government approval to purchase the plane outright, Aeroméxico agreed to put up three months’ rent, plus a

1. Air Lease Corporation’s celebratory opening day on the New York Stock Exchange on April 20, 2011 2. Lease placement announcement with Airbus and ALC. John Leahy, Airbus’ former chief of sales, Fabrice Brégier, COO of Airbus, Udvar-Házy, and John Plueger, CEO, president, and board member of ALC (L to R) 2 CSQ SPRING 2018

71


$150,000 security deposit, which would be returned at the end of the lease. Házy and his partners then approached several different financial institutions in search of a loan. They were rejected for a variety of reasons: lack of experience, the untested nature of the business model, the liability factors involved—even the unlikely event of a government coup d’etat. Finally, one bank saw a spark of ambition that shone through the relative youth and lack of experience. United California Bank offered that if Házy could get the Mexican government to guarantee all the lease payments, the loan could be approved. A last-minute meeting was arranged with a representative from the Mexican government so the partners could pitch the idea. Bolstered by Aeroméxico’s advance payment and security deposit, the deal was summarily signed, notarized, and embossed with a wax seal that same evening. Házy was able to return to the bank the following day with the requisite government assurances. “That was the beginning of aircraft leasing,” he says. “Once we established ourselves, we could at least get some financing as long as we put our own money in the deal.” International Lease Finance Corporation (ILFC) was born. Within a year, Házy also got involved with SkyWest, Inc., the largest regional airline in North America. He continues to serve as a longtime director for the carrier, which has grown from 3 airplanes to more than 700 and

THE NUMBER OF PEOPLE FLYING IS GROWING FASTER THAN POPULATION OR GDP AROUND THE WORLD. THIS YEAR, WE’RE PROJECTING MORE THAN 4 BILLION [ONE-WAY] PASSENGERS. THE U.S. WILL MAKE UP 25 PERCENT OF THAT.

operates flights for Delta, United, Alaska, and American Airlines and now serves more cities in the U.S. than any other airline. Stratospheric Growth Model

Soon after its inception in 1973, ILFC quickly became the world’s largest aircraft lessor by value, leasing Boeing and Airbus to major airlines worldwide. Airplane leasing was similar to renting real estate, Házy points out, in the sense that income generated from one deal was often used to leverage the next. Returns are more rapid than in real estate, but so is depreciation, as the average lifespan of an airplane is approximately 25 years. “The idea is to have 100 percent utilization,” says Házy. “Our business is long-term leases, anywhere from 8 to 14 years. There is no idle inventory.” ILFC provides the plane, and the airline covers the cost of maintenance, fuel, crews, insurance, and everything else. Airlines pay a fixed amount every month, whether a plane is flying every day or spends a week in maintenance. As the world becomes more connected, Házy says, air travel for business and leisure is becoming more accessible to the world’s population. “Mobility is becoming part of today’s youth culture,” he says, pointing out that off-season flight deals from LAX to Europe can be scored for $150, less expensive than a week’s worth of parking at LAX. “In the mid-1950s, you had maybe 20 million one-way passengers a year in the world,” Házy explains. “As the middle classes grow [worldwide], the potential for air travel is unbelievable. The number of people flying is growing faster than population or GDP around the world. This year, we’re projecting more than 4 billion [one-way] passengers. The U.S. will make up 25 percent of that.” Between increased air travel and the need to replenish aging fleets, the demand is evergreen, at least until teleportation becomes a viable option. “There are 24,000 Western-built jet airliners, with more than 100 seats, flying in the world,” says Házy. “So you figure that 700 to 800 of those need to be replaced every year—even if there’s no growth.” ILFC grew into a $35B company with 180 employees. Operations were lean because operation of the asset was not part of the equation. “Of all public companies, we had highest earnings and assets per employee in the U.S.,” he says. “We got trophies left and right.”

RE&F - Udvar-Hazy

New Ventures, Familiar Patterns

It’s a model he would follow in his next venture. Házy served as ILFC’s founding chairman and CEO through AIG’s $1.4B acquisition in 1990, on up until he “retired” in January 2010. Within weeks, he formed Air Lease Corporation (ALC; NYSE: AL) with John Plueger, ILFC’s former chief operating officer. The company has upwards of 85 employees, many

72

REAL ESTATE & FINANCE


RE&F - Udvar-Hazy

of whom, like Plueger, share a decades-long association with Házy. “Having the familiarity of an experienced team working together has really accelerated our ability to move forward.” Plueger offers the following perspective on the man he has worked alongside for more than three decades: “He’s a tough, brilliant negotiator. Everything I have ever learned in this business is from Steve. He has been much much more than a mentor to me, and to others. We’ve shared our professional and family lives for 32 years. Our personal relationship reflects our common bond of aviation and our industry. Truthfully, we talk of little else.” At the end of 2017, ALC owned 244 aircraft and managed an additional 50, serving 91 airline customers in 55 countries. With assets listed at more than $15B, the company reported more than $1.5B in total revenue in 2016. Plus, ALC has almost 400 new jets on order from Airbus and Boeing. “We’re growing, but if growth happens too quickly, you can’t manage it,” cautions the billionaire businessman, who turns 72 this year. “There’s a size at which the culture changes. What works for 90 or 100 people won’t necessarily work for bigger companies.” In terms of his legacy, Házy prefers to shift the focus to the new generation in which he hopes to inspire the same fascination with flight that he experienced while growing up. “I think travel is a form of education,” he says, CSQ SPRING 2018

adding, “and the airline industry has transformed the planet in the last 60 to 70 years.” In 2003, the Steven F. Udvar-Házy Center, a companion facility to the Smithsonian National Air and Space Museum in Washington, D.C., opened in Chantilly, Virginia. The building holds more than 290 air and space artifacts, including the Enola Gay and Space Shuttle Enterprise. “I’m very proud of the center because of the opportunity it gives children to see the history of aviation,” says Házy. “If I can have children have that same feeling I had when I was a six-year-old at the airshow in a communist country, that to me is worthwhile.” Over the years, Házy and his wife, Christine, have also donated more than $100M to Stanford University and the Embry-Riddle Aeronautical University in Arizona. The married couple has four grown children. One son works in the aviation industry for a “friendly competitor” of ALC, offers Házy.

3

cial media), Házy notes that there were no U.S. air fatalities on commercial airlines in 2017. In addition to his own insatiable hunger for knowledge, Házy credits the mentors who helped him gain a foothold in the industry back in the Golden Age of Aviation. He counts Bob Six, CEO of Continental Airlines from 1936 to 1980, and Herb Kelleher, co-founder and former CEO of Southwest Airlines, as indispensable mentors who facilitated his professional development with their sage personal advice and bold business moves. “I’m still fascinated by the industry, although it moves at a faster pace,” says Házy. “Now we’re in a much more mature business.” As a greater percentage of the world’s population embraces the opportunity to travel by air, a new Global Age of Aviation is taking off. And there may be no one better positioned than Steven Udvar-Házy to ensure peak altitude is achieved. end

Into the Small New World

Házy still pilots his Gulfstream G650 and G500, which are parked at the ALC private hangar at Van Nuys Airport, whenever the opportunity presents itself. Lauding the advancements in design and safety that have made air travel in the U.S. increasingly safe and incident-free (notwithstanding the occasional kerfuffle inside the cabin that goes viral on so-

3. The Steven F. Udvar-Házy hangar at the Smithsonian National Air and Space Museum companion center in Chantilly, Va.

73


home

THE UNDISCOVERED... AND MAKE IT YOUR

Punta Mita

Developed and Managed by DINE one of Mexico’s leading real estate developers Encircled by 9.5 miles of Paciic Coast... Two Jack Nicklaus Signature Golf Courses... Tennis Center, Managed by Peter Burwash International with 10 courts... Home of Four Seasons Resort.... Home of the St. Regis Resort... Two Residents’ Beach Clubs...

www.puntamita.com


76 The City Suite 78 Op-Ed 82 Going Global

Destinations

Part 3

Destinations - Cover One of four homes situated on the 65,000-acre Mesa Vista Ranch (p. 78)—T. Boone Pickens’ Texas estate currently on the market for $250M, making it the most expensive property in the country

CSQ SPRING 2018

75


THE CITY SUITE

Perfectly Presidential A look at LA and New York’s biggest and baddest hotel suites. From Park Avenue to Rodeo Drive and everywhere in between, these rooms provide privacy, comfort, and a touch of opulence

The Pierre Hotel Upper East Side, NYC The Tata Suite, The Pierre’s Presidential Suite, is perched on the hotel’s 39th floor—providing guests with views as striking as the gold, silver, and porcelain decor found throughout the suite itself. Though the Tata Suite itself is only 1,980 sq. ft., housing two bedrooms and three baths along with a living room and dining room, it can be combined with the other suites, offering up to six bedrooms, a pantry kitchen, and the entire floor to yourselves. tajhotels.com

Destinations - City Suite

76

DESTINATIONS


The NoMad Los Angeles Downtown Los Angeles Recently opened in the ever-burgeoning DTLA community, the NoMad Hotel Los Angeles— owned by hospitality firm Sydell Group—offers one of Los Angeles’ finest hotel suites—the RWB. The 1,250-sq.-ft. pied-a-terre is comprised of a king bedroom— with a master bath featuring a double vanity, walk-in shower, and freestanding bathtub—as well as a living room library, dining room, pantry, and entry foyer. thenomadhotel.com

Destinations - City Suite

CSQ SPRING 2018

77


In November 2017, T. Boone Pickens Jr. publicly announced he was seeking a buyer for his prized Texas ranch, a vast swath of land encompassing nearly 100 square miles that he began accumulating in the late 1970s. As the oil magnate and businessman, who turns 90 in May, considers his legacy, he has expressed interest in passing on the property to a person or entity whose conservation ethic aligns with his own. What began as a rather modest 3,000-acre patch of land grew to its present size of 65,000 acres as Pickens acquired the surrounding land parcels over the past four decades. The land is teeming with wildlife, including quail, antelope, and white-tailed deer. The property boasts a 30,000-sq.-ft. main lodge appointed with exquisite details, including hand-carved wood paneling. A picturesque European villa–inspired lake house rises up from the fertile ground, as streams flow underneath and spill into a vast lake and aqueduct that Pickens had built into the landscape. Naturally rich in fossil fuels, the land is also dotted with a few productive oil wells. Pickens made his fortune in oil, founding Mesa Petroleum in 1981, which soon became the largest global independent oil company of its day. A bold negotiator, he acquired other oil and gas companies by making solicited and unsolicited buyout bids. He sold the company in 1996 and founded BP Capital Management the following year. Over the course of his life, he has donated more than $1B to charity. A member of The Giving Pledge, Pickens intends proceeds from the sale to benefit his T. Boone Pickens Foundation, which supports various charitable organizations.

Destinations - Mesa Ranch

OP-ED

A New Beginning for Mesa Vista Ranch

1 78

DESTINATIONS

Photos: Courtesy of Mesa Vista Ranch

By T. Boone Pickens


2

3

4

Growing up in Holdenville, Oklahoma, I once walked five miles from town down to the Canadian River—and back—to earn a Boy Scout Merit Badge. Today, some 80 years later, that very same river remains a prominent part of my life. It forms the northern boundary of my picturesque 65,000-acre Mesa Vista Ranch in the northeast corner of the Texas Panhandle. The ranch’s name commemorates the stunning mesa views to the north that mark the southern edge of the Great Plains. Years ago, at a high school commencement speech for my grandson, I offered to trade the Mesa Vista (and my jet and billion-dollar bank account) for their place as graduating seniors with a lifetime of dreams and accomplishments to come. Today, however, trading my ranch is off the table. Selling it is not. I’m officially putting it on the market. Asking price: $250M. Perhaps you know of the ranch as it’s been profiled in Architectural Digest, The Land Report, and countless other publications and newspapers. It’s known for its tranquil rolling hills, wildlife habitat, quail hunting, and amazing architecture. Selling the ranch is the prudent thing for an 89-year-old man to do. It’s time to get my life and my affairs in order. There are many reasons why the time is right to sell the ranch now, not the least of them being ensuring that what I truly believe is one of the most magnificent properties in the world winds up with an individual or entity that shares my conservation ethic.

Reflecting back, one of my keys to success has been the ability to accept and embrace change. This has been especially true in the fourth quarter of my life. Several years ago, my longtime doctor said he had “good news and bad news” for me. “Shoot straight,” I told him. “Well, the good news is you will live to be 116. The bad news is you won’t be able to hear or see,” he said. “Hell, I’m already there,” I countered. Slowly but inevitably, my fading vision and limited hearing have forced me to give up things I’ve loved and excelled at—golf and hunting, in particular. Although the beauty of Mesa Vista remains intact, the ranch roads I have driven thousands of times are now blurred. It’s time to embrace and accept that my life has changed. My hopes for the Mesa Vista and my plans for its future remain as vivid as they were when I began assembling the ranch 46 years ago. I initiated a multi-decade program to help the land heal and, over time, invested millions in wildlife management, programs, and facilities to create what many believe is the best quail hunting in the world. We have minimal cattle grazing on the ranch, preferring instead to let the land revert to pristine prairie conditions, much as it has been in centuries past. A substantial portion of the ranch has not been grazed in more than 20 years. And Mesa Vista is water rich, with miles of creeks and nearly 20 lakes of varying size that we constructed over the course of 20 miles.

Destinations - Mesa Ranch

1. Aerial view of the ranch’s expansive acreage 2. Pickens hunting on the property 3. The ranch exudes beauty in every season 4. No need to fly commercial with the ranch’s private hangar and runway

CSQ SPRING 2018

79


5

Destinations - Mesa Ranch 7

8

6 80

DESTINATIONS


9

10

5. Formal great room for entertaining guests and family 6. The estate’s intimate yet expansive library 7. The estate’s home theater with comfortable reclining leather seats 8. The property comes with an 11,000 sq. ft. kennel and 40 bird dogs 9. The private chapel where Pickens wed his fifth wife 10. One of four grand homes, the spectacular Lake House, overlooking the lakes 11. A small golf course and tennis court complete the property 12. Amidst the thousands of acres, wildlife is in abundance

11

We invested heavily in accommodations, too, with a spectacular Lake House (12,000 sq. ft. of living space with 4,000 sq. ft. of porches); The Lodge (33,000 sq. ft. under roof); the Family House (6,000 sq. ft.); The Gate House (1,700 sq. ft.); The Pub (1,600 sq. ft.); and The Kennel (12,000 sq. ft., with space for 50 dogs). On top of that, we built a 6,000-foot runway and hangar (25,000 sq. ft.). Moreover, there’s a stunning chapel with a glorious view of the mesas that has seen marriages and, sadly, funerals. There’s also housing for staff scattered across the ranch. Some of the numbers associated with the ranch are stunning. For example, semi-trailer trucks delivered nearly 16,500 loads of materials to help construct the buildings. And I’ve personally directed the placement—or replacement—of 20,000-plus trees. Mesa Vista’s unique combination of a pristine prairie and world-class amenities have provided an unparalleled venue for some of the nation’s most influential political and business leaders to share their insights on matters critical to our times—national security, economic policy, political involvement, philanthropic investment, and energy issues. The Mesa Vista has been a labor of love that has occupied the better part of my life. And I intend for a lot more good to come from the sale of the ranch. My charitable giving exceeds $1B, and much of the proceeds from the sale of the Mesa Vista will be directed to The T. Boone Pickens Foundation to fund a variety of philanthropic charitable commitments. I see this sale as a new beginning—for the Mesa Vista’s new owners and for the recipients of my charitable giving. end

Destinations - Mesa Ranch

12 CSQ SPRING 2018

81


Destinations - Global

More so now than ever, from La Paz to Riviera Nayarit, Mexico’s western region offers geographically diverse second homes whose amenities and opportunities are equally as diverse—from diving and marine life to equestrian activities and Jack Nicklaus-designed golf—to meet the needs of the most discerning buyers. By Gioia Giacomelli

GOING GLOBAL

Your Next Casa? 82

DESTINATIONS


residences—designed by renowned Mexican architect Gerardo Ulate—on a secluded private beach pressed up against the infinitely calming Sea of Cortéz. When CSQ spoke to Curtiss about the project, he described Playa de La Paz as his life’s work: “I see it as an undertaking of passion and a pursuit of immaculate design, detail, and beauty.” The dream of a developer—Curtiss in this case—isn’t complete without the support of partners. Curtiss found two of his dear friends—John Hargreaves, the Monaco-based founder of mega Matalan clothing chains throughout Europe, and Jeffrey Hecktman, head of Hilco Global Asset Liquidators—a dream team who turned Playa de La Paz into a world-class destination and residential community immersed in the traditions of Mexico. Starting at $1.295M, the residences range in size from 2,900 to 9,000 sq. ft., containing between one and four bedrooms. Each residence features Calacatta marble in the bathrooms and indigenous granite and Viking appliances in the kitchen, as well as special selections of high-quality imported woods, furnishings, linens, and—in some units—even specifically sourced artwork lending a special native feel to the well-arranged space. While CSQ spent time on property, there were a few other residents there but the feeling was one of complete immersion in a world of beauty and tranquility. At La Paz, you will feel at home, as if you have always belonged there. Ownership comes with access to the property’s many amenities, including a 164-foot infinity pool, jacuzzi, tennis courts, luxury gym, round-the-clock security, beach cabanas, a state-of-the-art water desalination plant producing 100,000 liters of drinking water daily, and, of course, your personal concierge to work with you on anything you might need or want—from fresh groceries from the farmer’s market to hiring a private chef or masseur. They will also ensure your travels are as smooth as your time at Playa de La Paz will undoubtedly be, including arranging a private charter from Los Cabos directly to La Paz. playadelapaz.com

Destinations - Global

Playa de La Paz La Paz, Baja California, Mexico Starting Price $1.295M+ Rental $1,100 per night

Given its name by Spanish Explorer Sebastián Vizcaíno in 1596, La Paz is a place where time seems to have stopped. Less than two hours by car north of Cabo San Lucas and tucked against the Sea of Cortéz, La Paz is equal parts authentic and sophisticated. The city has captured the attention of travelers, residents, and sea-faring divers alike since Jacques Cousteau dubbed the Sea of Cortéz “the world’s aquarium” in 1940. In fact, rich marine life, snorkeling, scuba diving or whale watching are

CSQ SPRING 2018

only minutes away by boat, including one of the signature experiences of swimming with whale sharks in their natural habitat. While Cousteau can be credited for putting the region on the map, La Paz has British-born developer and now passionate and current resident Jeffrey Curtiss to thank for its recent ascendance. Curtiss found professional and financial success in trading and distribution in Britain before moving to La Paz in 2005, following after his son James (who owns the local boating and diving business, The Cortez Club). Curtiss, a committed first-time developer, has since spent more than a decade seeing his project through to the impeccable state it has attained today. Known as Playa de La Paz, it is a boutique collection of 23 luxury

Can’t Miss Restaurant

In the heart of La Paz yet just two blocks from the ocean, Las Tres Virgenes grills fresh fish all day and night and boasts an extensive wine list selected by manager and sommelier Pedro. Attraction Out of Town

Bahia Balandra, a UNESCO biodiversity World Heritage Site, is a beach located on a circular gulf with a sandbar stretching across a bay, allowing you to walk halfway immersed in warm, turquoise water. Nearby

A surfing village southwest of La Paz, Todo Santos is a government-designated Pueblo Mágico—a small town honored for natural beauty, cultural riches, or historical relevance.

83


Destinations - Global

One&Only Mandarina Riviera Nayarit, Mexico Starting Price $4.5M

In Spanish, mandarina means Mandarin Orange, the delicate sweet fruit comprised of dozens of rich pieces. This visual expresses Ricardo Santa Cruz’s intent when envisioning Mandarina—many pieces coming together to form a lush, interconnected project. Set on Mexico’s beautifully expansive and diverse western coastline, the long-awaited construction of what many consider to be the most significant ultra-luxury private residen84

DESTINATIONS

tial and resort community in the country has begun. Less than a three-hour flight from Los Angeles and about a 45-minute drive north of Puerto Vallarta International Airport sits the vision and result of a decade of passionate dedication for RLH Properties, the developer of Mandarina, and Santa Cruz, who has been working with RLH Properties since the inception of the project and is currently contracted by RLH to spearhead sales and marketing efforts. To be completed by the end of 2019, Mandarina required years of searching for land, design, and project management. In fact,

the name Mandarina completely expresses the story. When they started their search in Riviera Nayarit in 2008, the 636 acres of untouched land were parceled out to be 58 different properties, each belonging to different individual families. Santa Cruz used persistence and faith in bringing the land back under one metaphorical roof. The property will offer One&Only Private Homes and Resort Suites in addition to a Rosewood Resort and Residences, which will feature dining options as well as a holistic spa, beach club, and equestrian center. Upon completion, One& Only Mandarina will feature 55 villas and a 108-room resort.


Immersed in a thriving tropical jungle between the Sierra Madre Occidental Mountains and the Pacific Ocean, Mandarina will host a remarkable Polo and Equestrian Club that, according to RLH Properties Deputy CEO Juan Bremer, will be one of the project’s sleeping giants. “One of the most unique and exceptional offerings within Mandarina is the world-class Polo and Equestrian Club, which will capture the equestrian spirit that is deeply rooted in Mexican culture,” says Bremer. “Mandarina’s facility will be a place where riders of all ages will gather, learn, practice, and compete.” The signature beauty of the One&Only project is the architecture of Rick Joy, a renowned American architect known for his extreme sensitivity and respect for the surrounding environment in which he is designing (seen notably at the Amangiri Resort in Utah). Based in Tucson, Ariz., Joy has been involved in the Mandarina project since day one, conducting research first-hand on the region’s geology, climate, scenic views, and even scouting some nearby towns in search of local materials and authentic suppliers. Though One&Only will debut in 2019, the sales process has already begun and the sales team would tell you there is no better time than now to get involved. Purchasing a private home on the property allows you the opportunity to collaborate with the design of your space, working closely with the Mandarina team. One&Only Private Homes will feature 55 unique villas perched atop cliffs overlooking the ocean and surrounded by the tropical forest. Ranging from four to eight bedrooms and $4.5M to $12M, each home sits on 2.5 acres of land and includes an outstanding infinity pool. It is the first time that One&Only—owned by Dubai-based Kerzner International Holdings Ltd. with noted projects in Dubai, Maldives, South Africa, and Australia—incorporates a residential vertical, selling homes. To complete the experience at Mandarina, homeowners will have access to the holistic One&Only Spa and the One&Only Majahua Beach Club—with infinity-edge pools, beachside terraces, and a dining area situated adjacent to a jetty that houses a fire pit the Mandarina staff lights nightly in honor of the dormant volcano Mandarina sits above. Out of the water, the property houses an incredibly immense and thorough trail system that offers miles of hiking, biking, and horseback trails winding through Mandarina. The youngest members of the community will get to enjoy a truly unique Kids Club—serving as a refuge for children to discover, learn, stimulate, and connect with nature. One of the least explored destination so far, we are sure that with its exotic wildlife, tropical jungle, privacy and untouched beaches Mandarina will be soon one of the most exclusive destination for your second home. discovermandarina.com

Destinations - Punta Mita

1

1. Situated between the plush, vibrant tropical jungles and the Mexican coastline, privacy is easily attained 2. Architect Rick Joy incorporates thorough research of the region into his design, driven by wood

2 CSQ SPRING 2018

85


3

Investing in the Community

credits Santa Cruz with mentorship and management knowledge. Educating, supporting, and renovating, Mandarina is completely involved in communal life at El Monteón, and any future homeowners at Mandarina can decide to be part of this incredible renaissance.

3. The resort’s jetty features nightly lightings of the fire pit

Destinations - Punta Mita 4. An open living room and infinity pool perched atop of the jungle

5. The 5th hole, in the foreground, is pressed up against scenic cliffs

Mandarina Photos: Courtesy of Mandarina and Hayes Division

It was safe to assume that the $1B investment in Mandarina would represent a boom in tourism and economic growth for the surrounding area, however it was unexpected that the town just next door—El Monteón—would undergo a complete rebirth. The Beach Club of El Monteón, for example, was built by RLH Properties for $2M and is managed by a local, Roberto, who

4 86

DESTINATIONS


Destinations - Punta Mita 5

Quivira Golf Club and Residences Cabo San Lucas, Baja California, Mexico Copala Condos and Residences Starting at $350,000 Coronado Single-Story Homes Starting at $1.5M Montecristo Residences—Tuscan Style Private Villas—starting at $1.5M

Home to more than 160 golf courses—the majority of which are blessed with spectacular views— Mexico, much like Hawaii, consistently remains a go-to destination for U.S. golfers. Nowhere is the evidence of golf’s assurgence in Mexico more obvious than in Mexico City, where the PGA Tour World Golf Championship was held in March 2018. Many miles from Mexico City but just south of La Paz, Quivira Golf Club and Residences sits at the southernmost tip of Baja California on a three-mile stretch of secluded beach within the CSQ SPRING 2018

private development of Quivira Los Cabos. The vision of Ernesto Coppel—Mexico’s 2004 Entrepreneur of the Year and current President of Consejo Nacional Empresarial Turístico (CNET)—Quivira is an 1,850-acre master-planned community that houses four resorts and five options for residence—from two-bedroom condominiums to 7,300-sq.-ft. private homes. Also on the property is Pueblo Bonito, a 201-room resort that allows guests access to the Armonia Spa—named among the three “Best Spas in Mexico and Central America” by Condé Nast Traveler. Rounding out the acreage is the award-winning Quivira Golf Club, spotlighted by a Jack Nicklaus–designed course. The Jack Nicklaus Signature Design course was voted “2014 Best New International Course” by Golf Magazine and “One of the World’s 100 Great Golf Courses in the World” by Golf Digest. At the course’s peak, players find themselves hundreds of feet above the Baja Peninsula, tee-

ing off against a spectacular backdrop of sheer granite cliffs and windswept dunes. Location aside, the Par-4 5th (with a semi-blind green) and Par-5 12th (the longest hole with a hidden green) present a tremendous challenge to even the most skilled amateurs. Benefits of residence within Quivira extend geographically. The property is just ten minutes from eclectic Downtown Cabo San Lucas, and residential membership comes with unique “Q” life customized experiences ranging from art walks in town, daylong trips at sea, and private wine tastings. quiviraloscabos.com

87


C-Suite Advisors

CONSULTING Human Resources

90

SMART BUSINESS GROWTH SUSTAINED BY HR MANAGEMENT JAMES HARWOOD, MBA, SPHR Founder & President, Total HR Management & Vice President, CoAdvantage CoAdvantage

CONSULTING Information Technology

The C-Suite Advisors™ are the most sought after community of thought leaders and best-in-class trusted advisors to the Advisory C-Suite, business owner, and entrepreneur. Comprised of the best of the best in eight industries, and multiple fields, these tenured C-Suite Advisors™ have been engaged to share their insights and experiences on topics helpful to both business and life. For more information on becoming a C-Suite Advisor™, email advisors@csq.com

88

C-SUITE ADVISORY

- TOC

92

REAL ESTATE 3.0

ARAMIS HERNANDEZ & ADAM BOHN AH: Founder & President; AB: CTO & EVP INC Technologies

FINANCE Investment Banking

94

BUILDING THE NEXT BIG BEAUTY CARE BRAND — FAST JIM FREEDMAN & LAUREN ANTION JF: Chairman & Managing Director; LA: Associate, Intrepid Investment Bankers


FINANCE Private Wealth

LEGAL Mergers & Acquisitions

REAL ESTATE Investing

96

102

108

TAX AWARE BORROWING

WHY THE FUSS ABOUT ICOS AND CRYPTO TOKENS?

A CORNERSTONE FOR REAL ESTATE INVESTING HAS BEEN LEFT INTACT

GEOFFREY R. BERLIN, CFP® Executive Director J.P. Morgan Private Bank

SANDER C. ZAGZEBSKI Partner Ervin Cohen & Jessup

BRIAN A. SIDMAN & MICHAEL PACKMAN BS: Principal; MP: Principal Keystone National Properties

FINANCE Wealth Management

MARKETING Branding & Communication

REAL ESTATE Residential

Advisory - TOC 104

110

DEMYSTIFYING THE WORLD OF WEALTH MANAGEMENT THROUGH VALUES AND CLIENT ADVOCACY

WHAT BRAND AND DESIGN CAN DO FOR INVESTMENT MANAGERS

IS EVERY OTHER PERSON IN CALIFORNIA A REAL ESTATE AGENT?

BRIAN K. WERDESHEIM Managing Director, Investments The Summa Group, Oppenheimer & Co.

CHARLIE ITTNER Managing Partner Darien Group

JT: Founder & Managing Partner; MT: Partner Equity Advisors Real Estate Services

LEGAL Family Law

MARKETING Digital Agency

REAL ESTATE Tenant Representation

100

106

112

EMOTIONAL WAR GAMES

DIGITAL MARKETING EVEN YOUR CFO WILL LOVE

A SIMPLE EQUATION FOR AN OUTSTANDING COMPANY CULTURE

STACY D. PHILLIPS Certified Family Law Specialist & Partner Blank Rome LLP

MIKE SCHAFFER Founder & CEO Echo-Factory

SHAY HUGHES President & COO Hughes Marino

98

CSQ SPRING 2018

JACK TURTURICI, JR. & MICHELE TURTURICI

89


INDUSTRY CONSULTING

SPECIALTY HUMAN RESOURCES

SMART BUSINESS GROWTH SUSTAINED BY HR MANAGEMENT When expanding a business, precise HR management supports intelligent growth

JAMES HARWOOD, MBA, SPHR Founder & President Total HR Management Vice President CoAdvantage La Crescenta, CA

Advisory - Harwood

James Harwood has more than 20 years of experience as an HR executive and consultant working with such Fortune 500 companies as Intel Corporation and Tektronix, Inc., as well as multiple nonprofit corporations and small businesses. In addition to overseeing HR administration departments including payroll, benefits, workers compensation, and more, Harwood has an extensive background in human resources management, employment law, and organizational development. He enjoys helping organizations enhance overall employee satisfaction and worker productivity and consults on leadership practices, management development, employee satisfaction, and performance management. Harwood is the founder and president of Total HR Management, a company providing strategic and administrative HR management solutions with an exclusive focus on the small business market. Total HR Management provides a variety of HR services on an outsourced basis.

PHONE 818/248.0049 WEBSITE totalhrmgmt.com EMAIL james@totalhrmgmt.com ADDRESS 2626 Foothill Blvd. Suite 220 La Crescenta, CA 91214

90

C-SUITE ADVISORY

Business owners ask me on a regular basis whether it is the right time to grow their company. They may be thinking of hiring new employees, renting new office space, or opening an additional warehouse. Although there are macro-economic factors that can affect such decisions like a recessionary period, these factors rarely should be the impetus behind making such a decision. Rather, the management microcosm of your business ultimately is what matters. As we all know from experience, the success of a company goes hand-in-hand with the need for more space. More contracts and more clients mean more employees will be needed. Although a positive outcome for any business, expansion often leads directly to the need for real estate financing. Whether a business expands their office space, adds warehouses for inventory, or franchises a retail business, such growth presents a host of new challenges needing to be addressed while firming up the company’s foundation. First, if a business owner is considering expansion, the company should be doing well financially and showing a healthy profit margin. It may be unwise for a business in a downturn or a company caught in a rut to consider such growth. If they are careless and applying for large loans without the proper financial considerations, they may be in for some serious trouble. If a company is doing well, however, several other


FROM THE PERSPECTIVE OF A  PROFESSIONAL EMPLOYER ORGANIZATION, THE SUCCESS OF AN ORGANIZATION BEGINS WITH A BACKBONE OF RELIABLE HR SERVICES. IF YOU WANT TO GROW INTELLIGENTLY, YOU NEED TO MAKE SURE THAT QUALITY HUMAN RESOURCES ARE IN PLACE. factors need to be considered for a company’s expansion to be categorized as what I’d describe as smart growth. After years of founding, running, and working for professional employer organizations, I have learned that smart growth is sustained by precise HR management. When a company decides to expand, a common misconception of too many executives is the belief that human resources are not an essential piece of the puzzle. Rather than focus on the nuts and bolts of HR management, they prefer to look at the big picture and the significant investments that are part of such an expansion. Unfortunately, what they often fail to realize is that the nuts and bolts are what hold the entire machine of the company together. As opposed to being a drain on resources, effective HR management supports smart growth by making sure that all of the bases are covered. To take a baseball metaphor a step further, although rounding first and second base is not as exciting as scoring the game-winning run, such an outcome will never happen unless first and second base are both touched by the runner. HR management supports the smart growth of your company by making sure that all of the i’s are dotted and the t’s are crossed. However, despite the need for a solid HR backbone, HR at most companies still gets shuffled off to the side. Given the bigger focus on growing a business and staying profitable in competitive environments, I do not find this perspective surprising. In fact, in many cases, it makes perfect sense, and this realization is exactly why HR outsourcing often makes perfect sense as well. By aligning your company with reliable HR practices offered by a professional employer organization, you can achieve the success that you have envisioned while protecting your bottom line. Indeed, a professional employer organization can help a company consolidate vendors while still accessing highly competitive rates for needed services. As your company grows, the recruitment and selection expertise of a professional organization becomes a key asset. If your company is growing, you want to access the best people in your industry to fill new jobs and help to continue to evolve your business model. Recruiting support means effective hiring practices without a company’s executives being overwhelmed by time-consuming interviews and background checks. After all, growth is not a one-time event for any company. Preferably, the hope is that such expansion paves the way for future growth

down the line. If you want this to happen, such development needs to be smart growth. Many business people are successful because they are big dreamers with big ideas. Successful entrepreneurs have invented many of the brilliant business models that make our country so great. However, big dreams and big ideas need to be supported by a foundation of effective business management. Such business management begins with solid HR services that remove obstacles and lay the groundwork for success. By ensuring the quality of HR service offerings, a company can avoid issues that potentially could stop expansion in its tracks. For example, a strong employment practices liability insurance (EPLI) policy provided by a professional employer organization is a barrier against damaging lawsuits. An EPLI policy can help ensure protection and profitability for your company as it continues to grow. Moreover, a pool-generated benefits plan helps both attract and retain your top employees. From the perspective of a professional employer organization, the success of an organization begins with a backbone of reliable HR services. If you want to grow intelligently, you need to make sure that quality human resources are in place. By making sure the nuts and bolts are in place and providing high-quality HR services, a business owner can expand their company while protecting their bottom line. Whether the immediate goal is hiring more employees or adding new real estate holdings, smart growth is the key to keeping the door open to future growth as well. end

Advisory - Harwood

CSQ SPRING 2018


INDUSTRY CONSULTING

SPECIALTY INFORMATION TECHNOLOGY

REAL ESTATE 3.0

Exploring what the phrase “technology as an asset” really means ARAMIS HERNANDEZ Founder & President INC Technologies Burbank, CA

Advisory - Hernandez ADAM BOHN CTO & EVP INC Technologies Burbank, CA

PHONE 310/910.9044 WEBSITE inctech.net EMAIL aramis@inctech.net adam@inctech.net ADDRESS 1212 South Victory Blvd. Burbank, CA 91502

92

C-SUITE ADVISORY

Aramis Hernandez is the founder and president of INC Technologies, an award-winning Los Angeles-based IT firm that provides a wide level of managed information technology, computer networking services, implementation of commercial and home security systems, and audio/video installations. As president, Hernandez is responsible for overseeing all its divisions, implementing and managing onsite and virtual IT services to its clients, which include mid-sized companies as well as high net worth celebrities, top athletes, and C-Suite executives. Adam Bohn is CTO & EVP for INC Technologies. With more than 20 years of experience in all areas of managed IT, Bohn acts as the “Virtual CIO” for businesses and organizations by overseeing their business processes, services, and other areas of information technology. As vCIO, he is able to provide the benefits of an in-house CIO without the expense of a full-time employee; as their technical advisor, Bohn works hand-in-hand with IT teams and web development companies to implement successful projects.

In today’s real estate market, smart home technology is the “norm” rather than an ancillary feature. In a survey conducted by Coldwell Banker, sales associates were asked which home features were important to potential buyers, and over 60% noted that buyers want homes with smart features that can be accessed through their mobile devices. This survey stays in line with the exponential rise in the development of convenience technology. Many homeowners are now upgrading their properties to include smart home technology, so when they are ready to sell, they can command a higher price. As a result of this new standard, more buyers want and expect smart homes that forethink their future needs, while avoiding the exercise of demolition and construction. In order to achieve this goal, smart homes require network cabling with robust WiFi. Ideally


QUOTE:

AS A RESULT OF THIS NEW STANDARD, MORE BUYERS WANT AND EXPECT SMART HOMES THAT FORETHINK THEIR FUTURE NEEDS, WHILE AVOIDING THE EXERCISE OF DEMOLITION AND CONSTRUCTION. IN ORDER TO ACHIEVE THIS GOAL, SMART HOMES REQUIRE NETWORK CABLING WITH ROBUST WIFI. a homeowner will make this investment during a rebuild or remodel phase to capture an optimal return. With the advanced cabling and WiFi in place, homeowners can utilize devices and services like video doorbells, security cameras, lighting fixtures, window shades, speakers, televisions, and Amazon Alexa products. However, the most luxurious approach to integrating this technology requires a control system. Two Leaders in Home Automation

The two leading developers of home automation systems are Crestron and Savant. Crestron has a long history innovating smart home technology. With Crestron, all smart devices can be controlled from one screen, while providing granular functions such as dimming a light, turning on the air conditioning, heating a pool or locking doors. In response to the quickly evolving smart home market, Crestron offers long lasting support for their products, reassuring homeowners of their investment’s sustainability. Alternatively, Savant has recently leaped into the cutting-edge in the smart home market. By introducing the benefits of a cloudbased home automation system, Savant’s approach to smart homes focuses on providing the homeowner simple and direct access to the various devices, even when the homeowner is away. In comparison, Crestron provides the ability to manage a magnitude of devices, while providing preset controls to the homeowner. Savant’s “Apple-esque” design provides the homeowner with various customizations and is readily available from any device. A properly designed smart home delivers a unique first impression, which allows a potential buyer the ability to recognize long-term value.

spaces to scale while holding value that can be highlighted to attract new or top-tier tenants. Investment Breakdown

At any level, a full featured automation system investment ranges from $15,000 to over $1M. The typical deciding factors are the number of devices that need to be connected and automated, configuring their respective features and the creation of a simple interface for the users to manage the entire system. Examples of variables to consider when gauging the mix of luxury and practical utilization include types of displays (televisions vs. projectors), room design and aesthetics, lifestyle brands, and vetted products. Considering the sophistication and dependability these smart home and commercial systems must sustain, an ongoing cost is associated with every installation. Similar to other upkeep costs, the systems are continuously evolving, and owners should expect to remain vigilant in order to protect their investment. Fortunately, the initial capital expense is outweighed by the long-term cost of ownership; a yearly maintenance plan for many of these systems averages between 8% and 12% of the total cost of the system. Over the past ten years, INC Technologies’ smart home division has seen steady growth with a 35% increase in yearly sales. Due to our unique all-inclusive approach, homeowners and investors can turn to one company for IT, networking, access control, video security, audio-video, and home theaters. We are leading innovators for smart home and office technology as well as providing managed technology solutions to mid-sized companies and high net worth clients. end

Advisory - Hernandez

Technology for Commercial Real Estate

Unlike the residential market, commercial spaces are predominantly automated by Crestron. Their various currently available solutions deliver many operational benefits including high-quality sound and video, presentation management, conference room scheduling, and video conferencing. Efficiency is another major factor pushing the demand for technology in the workplace. The ability to manage resources such as power, lighting, and temperature address conservation efforts and maximize utility savings. Crestron’s business products are also built with extended longevity in mind, allowing for commercial

CSQ SPRING 2018

93


INDUSTRY FINANCE

SPECIALTY INVESTMENT BANKING

BUILDING THE NEXT BIG BEAUTY CARE BRAND—FAST JIM FREEDMAN Chairman & Managing Director Intrepid Investment Bankers

Capitalizing on shifting consumer behaviors and technological advancements to scale faster and maximize value paid Advisory - Freedman

LAUREN ANTION Associate Beauty & Personal Care Intrepid Investment Bankers Los Angeles, CA

Jim Freedman is a Founding Partner and Chairman of Intrepid Investment Bankers, a specialty investment bank that provides M&A, capital raising, and strategic advisory services to middle-market companies across various industry sectors. He has more than 35 years of investment banking and corporate finance experience and is an expert on the financial aspects of corporate strategy. Lauren Antion is an Associate in the Beauty & Personal Care practice at Intrepid Investment Bankers. In her current role, she works with deal teams on originating and executing mergers and acquisitions as well as helping to raise capital across the Beauty & Personal Care sector.

94

C-SUITE ADVISORY

The Beauty & Personal Care M&A market finished 2017 on a high note with over 100 transactions for the second straight year. Not only was volume strong, but the past two years witnessed increasingly outsized valuations for fast-growing, high-margin beauty care brands. In fact, there were more beauty care M&A transactions at valuations over four times revenue in the last 18 months than in the previous 15 years combined. To build a successful beauty care brand, product quality and an authentic brand message that resonates with the consumer have always been and will always be “must haves.” However, with digital marketing, a category-wide shift to eCommerce, the power of social media, and a growing set of outsourced business solutions, successful beauty care businesses are now able

to scale faster and more efficiently than ever before—and in turn attract private equity capital and interest from large, global strategic acquirers earlier and earlier in their brand lifecycle. So, what are some of the keys that have driven this better, bigger, faster phenomenon among beauty care brands? The Power of eCommerce — Sell on Your Own Terms

Independent brands historically struggled to gain access to the retailer shelf, having to compete against the clout and resources of large, global, and diversified corporate mainstays such as Procter & Gamble and L’Oréal. eCommerce, and in particular direct-to-consumer (D2C) channels, now provide unlimited shelf space for


PHONE 310/478.9000 WEBSITE intrepidib.com

new entrants, disintermediating the retail buyer and allowing beauty brands to control the brand message and pitch, directly to the consumer. While global eCommerce sales of beauty care products are expanding at a 16.7% rate1 we are still in the early innings—as evidence, industry sources estimate only 10% eCommerce penetration in the Beauty & Personal Care sector, compared to 18% in Apparel & Footwear and 44% in Consumer Electronics. As millennials and subsequent ‘digitally native’ generations account for a greater share of income and expenditures, the shift to online distribution in beauty care will only continue to accelerate. Direct to Consumer — The Coveted Connection to Consumers

The biggest advantage that a new beauty brand maintains over larger, established companies is the ability to be a pure D2C brand, free from channel conflicts. A pure, ‘digitally native’ D2C brand benefits from: 1. Brand Control—Ability to tightly control brand messaging and develop a direct customer relationship that transcends traditional retail. 2. Customer Communication—Ability to have a direct conversation with the customer to drive repeat orders, establish a bond, upsell, receive feedback, resolve problems or simply say thank you. 3. Customer Intelligence—Ability to collect detailed data about individual customers in detail, from purchase rates to product preferences to consumer demographics. 4. Consumer Insights—Ability to test anything and everything to a subset of consumers before rolling out to the entire customer base, from new products to new marketing campaigns to packaging changes.

EMAIL jfreedman@intrepidib.com lantion@intrepidib.com

ADDRESS 11755 Wilshire Blvd. 22nd Floor Los Angeles, CA 90025

Furthermore, once established, D2C brands can then leverage their direct consumer connection and loyal customer following to expand faster and with more certainty into additional distribution channels, including traditional retail. The market is rewarding early D2C movers, such as Dollar Shave Club, which employs a subscription-based distribution model for men’s grooming and lifestyle products. In 2017, Dollar Shave Club was acquired by Unilever for $1B, reflecting a five times multiple of revenue, after only five years of operation.

Ingredient Transparency — Tell It How It Is

Social Media — Leveling the Playing Field

Social media has shifted the power and influence of how beauty brands and products are perceived, away from the multi-million advertising budgets of global consumer conglomerates, and into the hands of consumers, influencers, and beauty brands that are adept at effectively integrating and managing social platforms. Previously, brick and mortar retailers served as the primary brand curators and high-priced Madison Avenue advertising campaigns served as the mechanism to deliver brand messaging and awareness. Today, positive online customer reviews, authentic Instagram followers, loyal Facebook fans and social influencers have supplanted shelf space and advertising as the primary source of verification and acceptance for brand credibility, product efficacy, and quality. Furthermore, successful social media strategies can create authentic bonds with consumers who truly want to be a part of the brand, all at a fraction of the cost of a traditional branded consumer advertising campaign. The impact of social media is most readily observed in the color cosmetics category, where online influencers have built social empires with tens of millions of followers. With 25 million followers, Huda Kattan ranks as one of the top beauty influencers in the world, having been named one of Forbes’ “Top 2017 Influencers in Beauty” and TIME’s “Most Influential People On The Internet.” Huda Beauty, launched in 2013, is one of the fastest growing influencer-driven color cosmetics brands, with an estimated $200M in sales, and recently received a minority investment from TSG Consumer Partners. As a reference point, Huda’s 25 million followers is 7 million more than MAC Cosmetics and 18 million more than Maybelline. Too Faced Cosmetics, a social media darling with more than 10 million Instagram followers, sold to Estée Lauder for a reported $1.45B, representing a multiple of over five times revenue and over 20 times EBITDA (earnings before interest, taxes, depreciation, and amortization), the largest acquisition in Estée Lauder’s history.

The Beauty & Personal Care industry is undergoing a long-term societal shift to natural and better-for-you brands as consumers become increasingly conscious about the role of beauty and personal care products in health and wellness. Following in the footsteps of the food industry and empowered by the internet and social media, consumers are demanding simpler, transparent, and “less-processed” beauty and personal care products, with comprehensible ingredients, free of chemicals and synthetics. As a result, the natural personal care market is growing 2.5 times faster than the overall beauty & personal care industry. As a consequence, natural and better-for-you brands such as Native deodorant have expanded rapidly in part on the tailwinds of the natural and product transparency trends, in turn attracting early and aggressive interest from both private equity groups and strategic acquirers. Native, a recent client of ours, which was acquired by Procter & Gamble in 2017, joined a long list of recently acquired natural beauty and personal care brands, including Schmidt’s, Snowberry, MyChelle, Andalou Naturals, Mineral Fusion, and Indie Lee, among others.

Advisory - Freedman

Technavio Global Online Beauty and Personal Care Sales Compound Annual Growth Rate 2016 to 2020. 1

Sources: Euromonitor (eCommerce penetration); Pew Research; Marketplace Pulse; Instagram; Intrepid Proprietary Beauty & Personal Care Transaction Database; Persistence Market Research (expected natural personal care growth 2016 to 2024); Technavio: Global Online Beauty and Personal Care Market 2016 to 2020 Report.

CSQ SPRING 2018

Building It Fast — 2 Is the New 20

The combination of many of these technology and consumer-driven market forces at work in the beauty care industry have allowed entrepreneurs to build large, successful brands in a matter of a couple of years—not a couple of decades. These brands, in turn, are attracting investor capital and strategic buyer interest in many cases before their third birthday. Recent early-stage beauty care private equity investments include L Catterton’s investments in Kopari Beauty and TULA, Main Post Partners’ investment in Milk Makeup and VMG’s investment in Drunk Elephant. Each of these deals involved top-tier branded consumer private equity groups investing in beauty brands founded less than three years ago. Perhaps even more notable, Moiz Ali, Founder of Native, successfully capitalized on many of the trends highlighted in this article—a 100% D2C eCommerce brand, a successful social media and digital-driven customer acquisition strategy, and a powerful brand story based on product quality and ingredient transparency. As a result, Native built one of the fastest growing brands in the deodorant industry, a powerful data-driven D2C distribution platform, and most importantly, a rapidly expanding base of passionate and loyal users—culminating in a highly successful sale to Procter & Gamble—all in less than two years. end

95


INDUSTRY FINANCE

SPECIALTY PRIVATE WEALTH

TAX AWARE BORROWING

Two kinds of debt may qualify you for a substantial tax benefit on interest paid GEOFFREY R. BERLIN, CFP® Executive Director, Private Bank J.P. Morgan Private Bank Los Angeles, CA

J.P. Morgan Private Bank brings personalized insights to individuals and families across the globe. Berlin has over 13 years of industry experience advising clients on a range of complex wealth management matters, including family financial planning, portfolio construction, asset allocation, liability management, tax strategies, trust and estate planning, and charitable giving. He is part of a team in Los Angeles that oversees $3B+ in assets and specializes in advising private company owners before, during and after significant transition events. He earned his BA in International Economics with a certificate in personal financial planning from the University of California, Los Angeles, and was named to the San Fernando Valley Business Journal’s 2010 Top 40 Under 40 list. Berlin holds the CFP® designation and FINRA Series 7 and 66 licenses. He is an avid runner and enjoys travel and spending time with his wife and two children.

PHONE 310/860.7116 WEBSITE jpmorgan.com/privatebank EMAIL geoffrey.r.berlin@jpmorgan.com ADDRESS 2029 Century Park East 39th Floor Los Angeles, CA 90067

96

C-SUITE ADVISORY

Many igh earners are reeling from the news that the new U.S. tax law that went into effect on January 1, 2018, capped aggregate deductions for state and local property and income taxes at $10K for joint filers. But if you itemize, there are other personal deductions to be had. If your debt falls into one of two categories—mortgages or loans used to purchase taxable investments—you may qualify for substantial deductions on the interest you pay. That can be a very welcome benefit in high-tax states like California and New York. In many cases, applying the rules of deductibility for mortgages and investment interest expense can allow borrowing to play an integral role in your overall wealth strategy. Many taxpayers find they are able to:

deduct the interest you pay on mortgage interest and money borrowed for taxable investments. Of course, to get these deductions, you will have to itemize. Beyond that, here’s how it works:

Advisory - Berlin

• • •

Lower their federal and state tax obligations Improve their cash flow Reduce their effective borrowing costs

For example, individuals in the top federal income tax bracket of 37% paying $100,000 of loan interest this year could, in theory, turn that into a $40,800 tax savings.1 They also may enjoy a tax break at the state level. Not all types of personal loans qualify for an interest deduction. There is no deduction for interest paid on car loans or credit card debt, for example. Similarly, you must be primarily liable for the debt to take a deduction for the interest paid. Acting as a guarantor on a loan, even if you make some of the loan payments, generally does not entitle you to an interest deduction. Generally speaking, though, you will be able to

Deducting Mortgage Interest

You may be able to deduct mortgage interest on up to $750,000 of principal indebtedness secured by one primary and one secondary residence. Before the 2017 tax overhaul went into effect, that number was $1M. Rest assured, there’s a grandfathering of mortgage indebtedness incurred before December 15, 2017; it’s still deductible up to $1M, which likely includes refinancing of that debt (subject to certain limits).3 Be careful, though. The IRS is tracking how you use the loan proceeds and will enforce this important rule: Mortgage interest on a qualified residence is deductible only if the loan proceeds are used to build, acquire, or make capital improvements on the property in question. Loans for Taxable Investments

Interest paid on the money you borrow for taxable investing is generally deductible up to the amount of the net investment income you recognize in any given year. The investment income that qualifies for the interest deduction generally includes: • • • •

Interest Dividends that do not qualify for the preferential 20% top tax rate Annuity income Certain royalties


QUOTE:

THE DEDUCTION FOR INVESTMENT INTEREST MAY DO MORE THAN THE MORTGAGE INTEREST DEDUCTION TO MINIMIZE YOUR TAX BILL.

It does not include qualified dividends or net capital gain—unless you make that choice. (See “Weigh your choices,” below.) Any rent you receive is generally not considered to be investment income.4 Special rules apply to passive activities. This type of investment, generally made through a limited partnership or limited liability company, is an equity interest in an operating business in which the investor does not materially participate. The current deduction of interest and other related passive activity expenses is limited to passive activities income. Minimize Your Tax Bill

1. Includes $37,000 from income tax savings and $3,800 from Medicare surtax savings. Deductions discussed in this article consider the regular tax calculations for individuals; however, the remarks are generally applicable to alternative minimum tax (AMT) calculations as well, albeit at a reduced marginal tax rate of 28%. 2. The 2017 tax act repealed the ability to deduct interest on $100,000 of home equity indebtedness. This change is scheduled to sunset after 2025, as will the reduction in the mortgage deduction limit from $1M to $750,000. 3. Taxpayers who entered into binding contracts before December 15, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchased the residence before April 1, 2018, are also grandfathered up to the $1M limit. 4. Income from private equity investments and hedge funds may also qualify. 5. Similarly, as a general matter, interest expense on debt incurred in connection with the trade or business of a material participant may be fully deductible. 6. Modified AGI is AGI plus the amount excluded from income as foreign earned income, net of certain disallowed deductions and exclusions. 7. Deductibility for Medicare surtax is based on the Treasury Regulation under Section 1411.

CSQ SPRING 2018

The deduction for investment interest may do more than the mortgage interest deduction to minimize your tax bill. That’s because, unlike the mortgage interest deduction, there is no cap on what you may deduct for investment interest—so long as your investment income equals or exceeds your borrowing costs.5 If the interest paid is more than you earn in one year, you can carry the excess deduction forward indefinitely to future years. One key caveat: You must use the loan proceeds to invest in something taxable. However—saving grace— investment earnings do not have to be taxable in the year in which you take the deduction. For example, an investor may borrow to buy small-cap stock that doesn’t generate a dividend. In such cases, the interest could not be deducted against income from this particular small-cap stock, because none was realized. However, it may be deducted against other sources of investment income in the investor’s portfolio. What’s not allowable is for you to borrow to buy tax-exempt investments and then claim the interest as a deduction. Here, too, the IRS will be watching carefully. So consider some good financial hygiene: Think about depositing any borrowed funds in a segregated account. That way, if you use the funds for a tax-deductible purpose, such as purchasing taxable securities, there will be no commingling of the acquired assets with other assets.

and/or capital gains. Therefore, below certain levels of investment income, you as a borrower will have a choice: • •

Deduct more investment interest Or be subject to a lower tax rate on dividends or capital gains, and carry excess investment interest forward for use in a subsequent year.

The American Taxpayer Relief Act of 2012 fixed the tax on qualifying dividends and long-term capital gains at a maximum rate of 20%, rather than at the maximum ordinary income tax rate (now 37%). Borrowers also should consider the Medicare surtax on unearned income in their decisions. This surtax, which imposes an additional 3.8% tax on modified AGI6 over $250,000 for married couples filing jointly, also can be reduced by deducting investment interest.7 It’s a lot to consider, but well worth the effort—and the conversations with your advisors—to make sure you take proper advantage of this potential tax benefit. end

Advisory - Berlin

Weigh Your Choices

The law excludes qualifying dividend income and capital gains from the definition of investment income that qualifies for an interest deduction; this therefore reduces the investment interest that can be deducted in any year. However, taxpayers can elect to include qualifying dividend income and capital gains in investment income if they forgo the lower tax rate on those dividends

The article is intended for informational purposes only; it is not intended as an offer for any specific product or service. C-Suite Quarterly (CSQ) is not affiliated with JPMorgan Chase & Co. The article contains the views of a J.P. Morgan employee, which may differ from the views of J.P. Morgan Chase & Co., its affiliates and employees. The views and strategies described may not be appropriate for everyone. Certain information was obtained from sources we believe are reliable, but we cannot verify the accuracy of the content and we accept no responsibility for any direct or consequential losses arising from its use. For specific guidance on how this information should be applied to your situation, you should consult a qualified professional.

97


INDUSTRY FINANCE

SPECIALTY WEALTH MANAGEMENT

DEMYSTIFYING THE WORLD OF WEALTH MANAGEMENT THROUGH VALUES AND CLIENT ADVOCACY You’ve sold your business. Now what?

BRIAN K. WERDESHEIM Managing Director–Investments The Summa Group of Oppenheimer & Co. Inc Los Angeles, CA

Brian K. Werdesheim is a founding member of The Summa Group of Oppenheimer & Co. Inc., a private client financial advisory team that provides wealth management services for affluent individuals and families, as well as owners and executives of private and public companies, family estates, charitable entities, and some of the top tax and legal professionals who serve the business, athletic, and entertainment communities. Werdesheim graduated from the University of Southern California with a Bachelor of Science in Business Administration. He also attended the University of California, Santa Barbara and Richmond College in London, England. Werdesheim lives in Studio City with his wife and their daughter and son. In his off time, he enjoys travel, golf, running, and participating in other outdoor activities. Brian has served on the Board of The Fulfillment Fund since 2003. He founded The Banyan Foundation in 2004. (The Summa Children’s Foundation) Werdesheim serves on the Advisory Council for the Greif Center for Entrepreneurial Studies at The University of Southern California and serves as a Trustee at the Buckley School.

Advisory - Wendesheim

PHONE 310/446.7133 WEBSITE fa.opco.com/summagroup.com EMAIL brian.werdesheim@opco.com ADDRESS 10880 Wilshire Blvd. 24th Floor Los Angeles, CA 90024

98

C-SUITE ADVISORY

Scenario

The deal is announced, the ink barely dry, and the eight- to nine-figure liquidity event hasn’t even hit the bank account, but the financial advisors are circling above and ready to pounce on the newly minted millionaires. With a “change of circumstance” comes a host of new challenges, anxieties, and objectives for this private business owner who just sold their business – their pride and joy. Generally, the seller will entertain a number of meetings with financial advisors who are often referred by the very people who helped arrange the sale of their company. Once the dust settles, the seller looks over to their CPA, attorney, and/or bankers and says, “The advisors all sounded really smart, were nice enough, but I really can’t differentiate between the advisors, their firms, or capabilities.” Assessment

Sounds like a lot of work and headache for nothing, but this is a common scenario because many advisors sound the same and have trouble differentiating themselves from the competition. Generally, the advisory teams march in and out of meetings with glossy pitch books and fancy suits, but often fail not only to differentiate their

capabilities, but also to make any real personal connection with the prospective client. The advisor’s message can be anchored to self-serving attempts: to convince the prospective client why they will perform better; to provide certain perks; or even to gain access for the client to opportunities they would otherwise not have. The Elite Advisor Experience

The “Elite Advisor’s” objective in an initial meeting is very deliberate and has little to do with selling anything. It is solely dedicated to providing the best information to make an informed and well-educated choice about entrusting their wealth. Elite teams acknowledge the daunting process it is for someone to understand the many complexities, potential conflicts, investment choices, and dozens of other qualitative and quantitative considerations when selecting an advisor. With transparency and confidence, elite advisor teams present the facts and strategies they believe in, but also convey their values and time-tested approaches to relationship building. They attempt to explain the wealth management choices one faces by focusing on what they believe to be the core values required to run a highly


QUOTE:

TRANSPARENCY, OR THE LACK THEREOF, IMPACTS HOW INVESTORS MAKE DECISIONS.

successful wealth management business. These teams take the potential client through a discussion about their core values, which dovetail with education about the qualities and attributes they should be looking for in any well-compensated, trusted planning firm. The elite advisory teams take tremendous pride in their core competencies but also understand the importance of advocating for and educating their clients. Demystification and Client Advocacy

Highly evolved wealth management teams illustrate how the financial advisory industry works from the inside, and the recurring theme is transparency. Much of client frustration and potential confusion often involves fees and how their wealth is technically being managed. The elite advisor explains the various fee structures, and the pros and cons of each. Bringing transparency to this sometimes mysterious part of the financial services industry provides the prospective client with the knowledge to make informed decisions. Elite teams conduct an unbiased breakdown of the various components and differences, figuratively having the client “look under the hood” of the process, helping them feel comfortable asking questions. Transparency, or the lack thereof, impacts how investors make decisions. Other values that internally drive successful teams and their client relationships are collaboration, empathy, authenticity, communication, humility, and accountability. These values are a constant within high-performing teams and consequently become the drivers of how effectively the team works together and how successful they are working with clients. Engaging in this high-level conversation and bonding over shared concerns and experiences, the conversation evolves into a discussion about what’s really important to them, as they set out to live their lives with a elevated level of wealth that will bring newfound complexity, challenge, and even some anxiety. The most successful wealth management teams in the country are often reminded that the issues keeping our clients up at night often have little to do with performance and everything to do with their health, education, philanthropy, succession issues, and other challenges. As elite advisors learn more about these various issues, they are thinking strategically how the team can help them best. This collaboration puts elite teams into a strong position to add what is sometimes life-changing value. Elite teams emphasize the depth and competency of not only their team but also the vast resources and expertise available through their expansive network

of like-minded tax and legal professionals. Part of the demystification process is simply about educating people about the things they could and should be more focused on. As they learn more and are able to focus on a few points, they become better equipped to make the right decisions in those areas and others. The Bottom Line

Selecting a wealth management team is difficult and no small feat. Many people simply don’t have the time, tools or experience to always know which questions to ask or how to identify red flags during the interview process for financial advisors. Families who are serious about having a cooperative, values-driven relationship with a team that has the experience and resources to help bring confidence and execution at the highest level, migrate to the Elite Advisory team that can deliver and execute on every level. Ultimately, it is the goal of the Elite Advisory Team to provide each family with a “playbook” they can rely upon to make some of the most important decisions in their lives. end

Advisory - Wendesheim

Brian Werdesheim is licensed in California. Any information contained herein pertaining to a securities business should not be considered a solicitation to buy or sell any securities or financial products, and is otherwise not intended for anyone who does not reside in California. ©2018 Oppenheimer & Co. Inc. Transacts Business on all Principal Exchanges and Member SIPC. 2010105.1

CSQ SPRING 2018

99


INDUSTRY MARKETING

SPECIALTY BRANDING & COMMUNICATION

WHAT BRAND AND DESIGN CAN DO FOR INVESTMENT MANAGERS CHARLIE ITTNER Managing Partner Darien Group Los Angeles, CA

Examining the rise and recreation of brand and design at Accenture, Deloitte, and McKinsey & Co. Advisory - Ittner

Charlie Ittner is the Founder and Managing Partner of Darien Group, a provider of communications and branding services to the financial services sector that specializes in private equity and real estate management. He has 15 years of experience in investment management marketing. Ittner began his career at Platinum Equity, serving for eight years as a chief lieutenant to the Founder and CEO and co-managing the firm’s internal and external communications programs, including marketing and branding, business development, investor relations, and media relations. He has also served as Director of Investor Relations for bkm Capital Partners and consulted for U.S. and international private equity and real estate investment firms to improve their brand platforms. Ittner holds an M.B.A. from the UCLA Anderson School of Management and a B.A. in English Literature from Pomona College. He lives in Beverly Hills with his dog Saoirse.

PHONE 310/247.1050 WEBSITE dariengroup.com EMAIL charlie@dariengroup.com

100

C-SUITE ADVISORY

In 2015, consulting giant McKinsey & Co. purchased a controlling stake in product and service design firm LUNAR. Over the past two years, Deloitte and Accenture have acquired over a dozen creative agencies between them, with the former now operating Deloitte Digital, an internal division generating over $1.5B of revenue per year. McKinsey, Deloitte, and Accenture now use their creative arms to sell new services, but they’ve also integrated design capabilities into long-standing core practices. Their collective attention toward ‘soft sciences’ like design and communications would have been unthinkable ten years ago. In what John Edson, President of LUNAR, calls “a very natural kind of partnership,”1 these acquisitions seem forward-thinking rather than out of place, as the significance of user experience becomes prevalent in ever more industries and business models. Case in point, Deloitte’s purchase of London-based design consultancy Market Gravity proposes to help clients create and launch “innovative products and services” across an array of sectors including financial

services, retail, energy, telecommunications, and automotive.2 In the past, consumer-directed marketing was considered the key venue for design and branding talent, where packaging and commercial jingles might sway purchasers and increase market share. Business-to-business purchase decisions have long been assumed to be made through either existing personal relationships or sober, practical analysis. In either of these determinants, the ‘brand’ as such has no bearing on ultimate business results. Or does it? The Prevalence of Emotional Decision-Making

Humans frequently make decisions based on emotions influenced by indicators present in a given scenario. Psychology scientists contend that these emotions are actually the dominant driver of most meaningful decisions in life, and that our decisions serve as conduits through which we attempt to avoid negative emotions and outcomes and increase positive ones.3 A related term is heuristics, which are approaches by which our brains employ practical


BY BRINGING A HIGHER LEVEL OF VISUAL DESIGN, MESSAGING STRATEGY, AND COPYWRITING TO OUR CLIENTS’ INVESTOR-FACING MATERIALS, WE HOPE TO SHORTEN THE LENGTH OF CAPITAL RAISE PERIODS, ALLOWING KEY TEAM MEMBERS TO GET BACK TO MAKING TRANSACTIONS AND CREATING VALUE IN PORTFOLIO INVESTMENTS.

methods (often imperfect ones) to reach efficient decisions in the absence of full information. These concepts are directly applicable in considering how brand might affect not just what cereal or detergent to buy, but also larger decisions, such as which bank to select to manage a large account. Research shows that within contemporary market conditions, a strong and widely-recognized brand correlates strongly with long-term financial success.4 What decisionmakers know about a brand and how they feel toward that brand are relevant and do factor into their ultimate choices. A distinguishable brand can lead customers toward lower price sensitivity, greater candor, and more leniency, all valuable considerations that factor into acquisition and profitability of current and prospective clients.5 Furthermore, within sectors where there exist many substitutable and credible competitors, a well-developed and -articulated brand can serve as a key differentiator. As industries mature and individual companies’ performance metrics trend convergently, such as in the investment management field, a firm’s story, culture, and philosophy become ever more critical for key constituents choosing with whom to engage.

Advisory - Ittner Good Communication Matters

1. Wired 2. Deloitte 3. Emotion and Decision Making. 2014. 4. Brand Impact on the Company’s Financial Performance. 2016. 5. Marketo

CSQ SPRING 2018

At Darien Group, we provide branding and communications services to private equity and real estate investment firms, entrants in industries that shunned press and branding almost altogether as recently as ten to fifteen years ago. With increased competition for investor dollars and target assets, we’re seeing a remarkable sea change in the willingness of investment managers to consider their communications as a means of separation from the herd in the eyes of their audiences. Investor presentations and private placement memorandum, once only functional and legal requisites for going to market, are increasingly seized as opportunities to advance brand narrative. Digital presences have gone from nonexistent to robust and attractive, with space reserved for content on portfolio value creation, sometimes including video. By bringing a higher level of visual design, messaging strategy, and copywriting to our clients’ investor-facing materials, we hope to shorten the length of capital raise periods, allowing team members to get back to creating value in portfolio investments. On certain occasions, we reduce the need for our clients to employ costly placement agents to raise capital. These integrations of brand and communications resources can advance strategic imperatives and effect real and significant business outcomes.

Discovering Your Brand’s Value

More recently, we’ve found interesting peripheral applications for our capabilities. Among our current assignments: a rebrand and materials development for a boutique accounting firm; investor pitch materials for a film development and production fund; and a website and white paper for a cannabis-focused Initial Coin Offering (ICO). In each of these cases, we’ve taken our traditional processes and applied them to industries or business models that are, in part or in whole, new to us. The three central phases to any thoughtful branding work are: 1. Discovery, to understand as much as possible about a business, its history, model, personality, and goals 2. Development, using the groundwork of the Discovery process to tease out messaging themes and visual brand worlds that strengthen and grow in collaboration with the client 3. Production , in which the Development roadmap is realized into concrete deliverables by creative and technical experts with requisite acumen and training. These three steps are applicable to practically any business. And whether or not you have resources available to contribute to your brand, you can still work through your own Discovery and Development processes just by considering strengths and weaknesses and your key constituents’ experience with your company. Twenty years ago, most people would be skeptical as to why an accounting firm should care about its clients’ user and brand experience. Today, we assume user experience to be important in the majority of our purchase decisions. Why exclude business-to-business and professional services applications? Psychology and behavior have proven that the quality of a company’s brand and communications platform is critical within every industry and to each client relationship. end

101


INDUSTRY MARKETING

SPECIALTY DIGITAL AGENCY

DIGITAL MARKETING EVEN YOUR CFO WILL LOVE

Four formulas that will prove your impact on the bottom line

MIKE SCHAFFER Founder & CEO Echo-Factory Pasadena, CA

Advisory - Schaffer Mike Schaffer is a founder and CEO at Echo-Factory, a creative agency headquartered in Pasadena, California. Echo-Factory works with a range of clients, including established companies like MagLite, Audi USA, and Troy Lee Designs, as well as startups and smaller companies that are investing in rapid growth. The agency has been awarded many times for its work, including two “Best in Show” ADDY® awards. Schaffer started out as an advertising photographer, and partnered with creative director Dea Goldsmith to found Echo-Factory in 2008. Today, his primary role is as a marketing consultant and brand strategist.

PHONE 626/993.3770 WEBSITE echo-factory.com EMAIL michael@echo-factory.com ADDRESS 36 W. Colorado Boulevard, Suite 200 Pasadena, CA 91105

102

C-SUITE ADVISORY

CFOs are not known for encouraging you to spend more. Not, at least, without good reason. The key to making your CFO happy with expanding your digital marketing budget is to give them a very good reason. Honestly, you should give yourself a very good reason to expand your marketing budget. Now, the obvious reason is growth. Marketing drives growth; that’s not a new idea. But not all marketing drives growth – only good marketing. So how can you 1) know that your digital marketing is paying off and 2) prove that it’s paying off to your CFO, your investors or your board? I’m so glad you asked. First: Calculate the Value You Can Create

How much net profit does every lead or sale generate for your company? It sounds like an easy question, but it can be surprisingly hard to answer. If your company’s structure allows your mar-

keting to drive sales directly, this can be pretty easy. Maybe you sell widgets online for $20: Your cost to produce and deliver a widget is $5, and the profit you can drive from a sale is $15. Your formula is: (Sale Price) - (Cost of Goods) = (Sale Value) Things are a little less easy when you start to consider the long-term value of a customer, or a sales cycle that can stretch into days, weeks, months or years from that initial lead. Still, it’s important that you understand what that profit is, and the role your marketing can play. Your formula for finding your value in a more complex sales environment could look something like this: {(Average Sale) - (Cost of Goods or Services)} x (Conversion Rate) = (Lead Value) Depending on how your business runs and the


QUOTE:

HOW MUCH NET PROFIT DOES EVERY LEAD OR SALE GENERATE FOR YOUR COMPANY? IT SOUNDS LIKE AN EASY QUESTION, BUT IT CAN BE SURPRISINGLY HARD TO ANSWER.

potential for repeat business, you might want to replace (Average Sale) with (Average Long-Term Customer Value), or possibly (Average First-Year Customer Value).

Your goal is to tie the sales or leads driven by every type of advertising you do with the amount of money you spent on that type of advertising. Your formula here is:

It can be tempting to gloss over this part of the process, to guesstimate or to base your advertising on hunches and intuition about the value you’re driving. Don’t. Someday your CFO, a board member or an investor will ask you to justify the costs of your marketing efforts. In all those situations, you need to have a good answer. Better yet, don’t wait until they ask; be proactive about presenting them.

(Per-Platform Revenue) / (Per-Platform Cost) = (Per-Platform ROAS)

Second: Attribute Sales

Now that you know the value of a lead or sale, it’s important to know where every sale you drive comes from. “Attribution” is digital advertising speak for “What brought the customer here?” If a customer clicked on a Google pay-per-click ad that brought them to your site, and then bought something, that sale would probably be attributed to your Google pay-per-click ads. I say “probably” because it can get more complicated. What happens if a customer clicked a Facebook ad two days ago, browsed your site and left without making a purchase, but then clicked on a Google ad today and made a $100 purchase? How much of that sale do you attribute to Google? How much to Facebook? The answer will depend on what’s called your “attribution model.” There are literally hundreds to choose from, but it’s basically how much “credit” you give to each piece of advertising that a customer encounters on their way toward a sale. Tools like Google Analytics can let you choose from a list of standard attribution models. Once you reach a decent scale, it’s probably worth implementing more complex software that’s tied directly to your ad platforms and that does this on your behalf.

So, if you spent $50,000 on Facebook advertising, and drove $50,000 in profits, you have a ROAS of 100% for Facebook. If you spent $50,000 on Google and drove $100,000 in profits, you have a ROAS of 200% for Google. Obviously, above 100% and you’re making money; below 100% and you’re losing it. It’s important to note whether you’re calculating your ROAS on profit or revenue. Calculating ROAS on revenue is much more common, but then you’ve got an additional step of adding in your profit margins later on. I tend to prefer calculating ROAS on profit from the get-go; this enables you to have that data available and frontof-mind for every decision you make related to your digital ad spend. Either way, understanding your per-platform ROAS lets you optimize for the most effective platform, or combination of platforms. Once you’ve got that figured out, you can use essentially the same formula to calculate your overall digital advertising ROAS.

Advisory - Schaffer

Third: Calculate Your ROAS

Now you’ve figured out: 1. How much a sale or lead is worth. 2. Your spend on each platform. 3. The sales or leads that each platform generates. That lets you put it all together and get a really clear picture of the value you’re delivering with your ROAS. ROAS stands for “return on advertising spend.” It might sound complex, but it’s not really. Plus, CFOs go nuts for acronyms.

CSQ SPRING 2018

(Digital Ad Revenue) / (Digital Ad Cost) = (Overall ROAS) Now, you’re ready to impress your CFO. Fourth: Make Your CFO Love You

With these numbers in hand, you can pretty easily understand whether your advertising’s working. If you have an ROAS of under 100%, you’re losing money. Over, and you’re driving profit for your company. While ROAS is a common term in advertising, return on investment (ROI) might be even simpler for your CFO to understand. How many dollars in profit are you generating for every dollar spent on digital marketing? An ROAS of 100% is the same as a 1:1 profit:spend ratio. An ROAS of 400% is the same as a 4:1 profit:spend ratio. Then, you can go to your CFO and say things like, “For every $1 you give me in ad spend, I can create $4 in profit.” You may sound a bit like Bernie Madoff, but the difference is that you can actually deliver on your promises. So, what are you waiting for? Get out there, crunch some numbers, and get ready to make your CFO your digital marketing budget’s best ally. end

103


INDUSTRY LEGAL

SPECIALTY FAMILY LAW

EMOTIONAL WAR GAMES

What Danny DeVito’s character taught us in The War of the Roses – there are no winners, only degrees of losing

STACY D. PHILLIPS Certified Family Law Specialist & Partner Blank Rome LLP Los Angeles, CA

Stacy D. Phillips represents a wide variety of highnet-worth clients as they undergo the significant and often difficult transitions involved in divorce and custody matters. Over her 30-year career, Phillips has become known for her adept negotiation and highly personalized advocacy. A hallmark of her reputation is that she truly listens to her clients’ needs, concerns, and fears, always with the highest level of discretion. Phillips is fond of saying that “how we treat others, how we conduct ourselves, and how we communicate during difficult times, can alter the course of our lives and the lives of those around us.” Whether through litigation or alternative dispute resolution such as mediation, Phillips and her colleagues in the Blank Rome Matrimonial and Family Law Practice Group continuously seek innovative and compassionate solutions to achieve notable results for their clients. A graduate of Dartmouth College and Columbia University School of Law, she assisted in the drafting of California Senate Bill 924, which extended the limitations period for victims of domestic violence to sue their abusers in civil court. Phillips resides in Beverly Hills and is the proud mother of two grown children, Alison and Andrew.

We frequently hear stories about contentious divorces that seem to be right out of the movies. Unfortunately, these situations may not be so far-fetched. They are the emotional war games that some people engage in to assume and retain control during a divorce. Many divorcing couples do not want to engage in any type of war, especially an emotional one. Contrary to their best intentions, however, individuals can get caught up in the turmoil of feelings, and it seems only natural to initiate or defend themselves in emotional warfare. Some participate with gusto while others do so reluctantly. In either case, attacks are launched and defended against. Casualties and collateral damage are real. Emotional wars are ugly, and battles may be waged on many fronts. There is the ever-popular “emotional blackmail” maneuver, which is far more common than one might think. This type of battle tactic often involves the children, which is unspeakably sad. Next, there is the “hit ’em below the belt” ploy used by the classic passive aggressor. Here too, children are often recruited as unwitting allies, and the negative effects can last for many years. Many vintage emotional warmongers choose “shock and awe” as their weapon of choice. These aggressors likely have a history of intimidating opponents in all parts of their life, so they are particularly adept. Moreover, they know their spouse’s most vulnerable triggers. This kind of brutal tactic often spills into the public lives of otherwise private people, carried out in places

Advisory - Phillips

PHONE 424/239.3400 WEBSITE blankrome.com EMAIL sdpdissoqueen@blankrome.com ADDRESS 2029 Century Park East Los Angeles, CA 90067

104

C-SUITE ADVISORY


QUOTE:

SOCIAL MEDIA PLATFORMS ARE RIFE WITH THE DETRITUS OF COUPLES AT WAR. VITRIOL CAN BE DELIVERED AT ANY TIME OF THE DAY OR NIGHT.

they work, socialize, or even worship. Texting and emailing, of course, have become the weapons of choice for many warring spouses as they find they have a tempting arsenal literally at their fingertips. Inundating the other with all manner of electronic assaults is far too common. But be warned if you are tempted to go down this path: Texts and emails can live forever and are certainly retrievable to be used as evidence against you. Social media platforms are rife with the detritus of couples at war. Vitriol can be delivered at any time of the day or night. Some attackers even engage in a deeply offensive practice known as “revenge porn,” which involves posting intimate, personal photos of their soon-to-be-ex-spouse, causing public humiliation and significantly raising the stakes of battle. The personal pain inflicted is considerable, exacerbated by a potentially unlimited audience, and amplified by 24/7 technology. Over the course of my 30-year career, I have witnessed too many emotional wars. It is often

the initiation of the breakup or filing for divorce that drops the first bomb. The rest of the emotional attacks are merely residual fallout. The “attacker” can be in a state of constant combat readiness, or as cool as a stealth bomber. The “defender” can be just as offensive, having a knee-jerk reaction to every attack and engaging in return fire. This is what I see most often. Sometimes, although it is rare, I do come across a neutral participant. They are able to maintain objectivity even when emotional bullets fly around them. These are exceptionally well-grounded individuals who have come to terms with the divorce and have chosen to resist the temptation to play petty war games. What is their secret weapon? They are able to maintain their neutrality because they are no longer vulnerable or emotionally attached to the “attacker.” Most people who were once on intimate terms have some degree of hurt and sadness when the relationship ends. These feelings are the real impetus behind any emotional war. The innermost fears, desires, and sensitivities, once shared,

become ammunition. And, for those who bring with them emotional scar tissue from prior relationships, the vulnerability factor is heightened. As in any negotiation, be it friendly or adversarial, the best practice is not to react, but to respond. To react is to act on a stimulus. To respond is simply to reply to it. There is a huge difference. Reacting demonstrates that you are personally and emotionally engaged—your buttons have been pushed. Replying indicates you are merely taking care of business calmly and confidently. Replying is a far more powerful position to hold, broadcasting that you are in control: literally in control of your emotions, and figuratively in control of the situation at hand. This is the goal. Perhaps Danny DeVito’s character in The War of the Roses said it best. When engaging in emotional warfare, “there’s never a winner, only degrees of losing.” end

Advisory - Phillips

CoCal IP Group.indd 1

CSQ SPRING 2018

3/23/18 8:07 AM

105


INDUSTRY LEGAL

SPECIALTY MERGERS & ACQUISITIONS

WHY THE FUSS ABOUT ICOS AND CRYPTO TOKENS?

Thoughts for entrepreneurs and investors in the rapidly evolving crypto market

SANDER C. ZAGZEBSKI Partner Ervin Cohen & Jessup LLP Beverly Hills, CA

Advisory - Zegzebski

Sander Zagzebski is a corporate partner with Ervin Cohen & Jessup LLP in Beverly Hills, CA. Zagzebski has broad experience as a transactional corporate/securities lawyer and represents clients in mergers, acquisitions, dispositions and other change-of-control transactions; joint ventures and strategic alliances; capital raising transactions (offerings of debt and equity securities, including private equity investments and venture capital investments); restructurings and recapitalizations; structured finance transactions; private equity and venture capital fund formation and governance; and general corporate, partnership and LLC matters. Zagzebski has represented technology and new media companies, investment advisors, aerospace and defense companies, bank holding companies, manufacturing companies, real estate companies, entertainment companies, and consumer product companies in M&A, capital raising and other strategic corporate transactions ranging in size from under $10M to in excess of $1B.

PHONE 310/281.6349 WEBSITE ecjlaw.com EMAIL szagzebski@ecjlaw.com ADDRESS 9401 Wilshire Blvd. 9th Floor Beverly Hills, CA 90212

106

C-SUITE ADVISORY

Opinions vary wildly about cryptocurrency. Best friend of Bill Gates and legendary investor Warren Buffett says cryptocurrencies “will almost certainly end badly,” and notorious hedge fund manager and Argentina nemesis, Paul Singer, considers crypto “one of the most brilliant scams in history,” showing the “limitless ignorance of swaths of the human race.” Ouch! On the other hand, Peter Thiel, co-founder of PayPal and early investor in Facebook and Palantir, is reportedly making big investments in crypto tokens, while Twitter co-founder and CEO Jack Dorsey is equally bullish on the future of crypto and reportedly believes bitcoin (the first crypto token) will become the world’s single currency within ten years. Last year, creative entrepreneurs raised billions of dollars selling new species of crypto tokens to the public in so-called initial coin offerings (or ICOs) while headlines instead focused on the trading price of bitcoin and billionaires bickered over its significance, as securities regulators and financial industry watch dogs seemingly struggled to make sense of it all. Very recently, though, that has changed, with ICO promoters now reportedly receiving subpoenas by the dozen as the regulatory watch dogs have finally started baring their teeth. With all the ink spilled on bitcoin, other crypto tokens, and ICOs, what now to make of all the fuss?

First, Highly Abbreviated Background

In 2008, an author or authors using the pseudonym Satoshi Nakamoto published the first crypto “white paper” entitled Bitcoin: A Peer-to-Peer Electronic Cash System on the bitcoin.org website, introducing to the world a digital (or “virtual”) currency that operates on a distributed ledger system relying on cryptographic proof (rather than trust or a disinterested third party) to complete transactions. In May 2010, developer Laszlo Hanyecz purchased two pizzas in exchange for 10,000 bitcoin, which reportedly marked the first use of bitcoin in commerce. From those humble beginnings (at current prices, Mr. Hanyecz’s pizzas cost him tens of millions of dollars!), bitcoin and more recently other cryptocurrencies and tokens have exploded in popularity and value to such an extent that the Federal Reserve is now reportedly concerned about its impact on the stability of the entire financial system. As bitcoin increased in popularity and value, it didn’t take long for other crypto tokens to be developed. Some of these other digital “coins” (coins are generally tokens used as digital or virtual currencies or money substitutes) include Litecoin, Ether, ZCash, Dash, and Ripple. Developers have also created tokens that, rather than simply acting as a store of value or medium of exchange, give the holder of the tokens some functional value or rights. These functional to-


QUOTE:

IN MAY 2010, DEVELOPER LASZLO HANYECZ PURCHASED TWO PIZZAS IN EXCHANGE FOR 10,000 BITCOIN, WHICH REPORTEDLY MARKED THE FIRST USE OF BITCOIN IN COMMERCE.

kens are often referred to as “utility tokens” to distinguish (or to attempt to distinguish) them from digital currencies or, more importantly as discussed below, securities. Some developers of tokens, particularly utility tokens, began raising significant sums of money selling those tokens in ICO crowd sales to large numbers of investors with only very limited disclosure to those investors in the form of a published “white paper.” While ICOs in some form had been around for several years, the number of ICOs and amounts raised from ICOs skyrocketed in 2017 and attracted the attention of U.S. and international regulators.

“the most pervasive, open and notorious violation of federal securities laws since the Code of Hammurabi.” On December 11, 2017, the SEC ordered Munchee Inc., developer of the MUN token which was characterized as a utility token, to cease its token crowd sale because the MUN token was an unregistered security. While the MUN token was clearly designed to have functionality to the holder beyond simply its store of value, the SEC paid particular attention to the manner in which the MUN token was sold and observed that the token was sold as an investment rather than a functional instrument. Munchee was the first time the SEC elected to proceed against a utility token. That said, it should also be noted that the SEC’s Munchee order was the result of a very favorable settlement (Munchee Inc. was allowed to return the investors’ money and escape any significant penalty) and doesn’t appear to have been strongly challenged. So observers were left to wonder whether the SEC had gone “full Grundfest” on utility token ICOs or were taking a softer approach.

The Big Question: Are Crypto Tokens Securities?

Whether the SEC should even care about ICOs depends almost entirely on whether the applicable tokens are “securities” within the meaning of U.S. securities laws. In July 2017, the SEC made its first significant statement on crypto tokens when it published a “report of investigation” relating to a decentralized autonomous organization called The DAO, claiming that it had violated securities laws by failing to register the offer and sale of its DAO Tokens. The SEC applied the textbook test in the over 70-year-old Supreme Court case SEC v. W.J. Howey Co. and concluded that the DAO Tokens were investment contracts under the Howey test, and therefore securities. The SEC’s DAO Report, while significant, was not overly concerning to practitioners. After all, The DAO was really in essence a virtual private equity fund or hedge fund. As such, the DAO Tokens were functionally very similar to more traditional equity securities, and securities lawyers had already assumed that virtual “security tokens” like the DAO Tokens would be treated as securities by regulators.

The SEC Flexes Its Muscles

On the same day the SEC published its order in the Munchee case, SEC Chair Jay Clayton published an unusual personal statement on ICOs which, among other things, openly questioned whether many utility tokens should be deemed to be securities and said “by and large, the structures of initial coin offerings that I have seen promoted involve the offer and sale of securities and directly implicate the securities registration requirements and other investor protection provisions of our federal securities laws.” In addition to the Munchee order and Chairman Clayton’s statement, it has now been reported that the SEC has recently issued dozens and possibly in excess of 100 subpoenas related to ICOs. So it seems safe to say that the SEC is no longer comfortable with its prior wait-and-see attitude.

to clarify when, if ever, a legitimate utility token will not be considered a security in the eyes of the SEC. What Does This Mean for Entrepreneurs?

The SEC’s latest actions mean ICO promoters are well advised to pay particular attention to complying with securities laws in connection with any crypto token sale. Although outside the scope of this article, there are a few different approaches to consider in this regard. While this will likely increase legal and compliance costs, likely require more significant disclosure and certainly impact timing, it is nonetheless preferable to the regulatory alternative, at least until the SEC and probably the courts weigh in with additional guidance. After a big year in 2017, developers continue to push forward with ICOs although the SEC has begun to push harder on the brakes and courts have yet to consider whether utility token crowd sales constitute unregistered public offerings of securities. The crypto legal landscape is developing rapidly. The only thing we now know with certainty is that there’s a lot of uncertainty. Proceed with caution. end

Advisory - Zegzebski

What About “Utility Tokens”?

The SEC’s analysis in its DAO Report left unanswered the question of whether utility tokens could be deemed to be securities. Many securities law practitioners saw a significant distinction between security tokens like the DAO Tokens and utility tokens that give their holders significant rights unrelated to the trading prices of the tokens, and had taken the position that utility tokens were not securities under the Howey test. A number of token crowd sales were completed without SEC registration as a result of this distinction. On November 26, 2017, the New York Times reported that Professor Joseph Grundfest, an influential law professor and former SEC Commissioner, was “horrified” by ICOs, calling them

CSQ SPRING 2018

Still No Definitive Answers From SEC or Courts

Regulatory action should have been expected by all but the most naïve of true crypto believers, yet it remains unclear whether the SEC believes all utility tokens are securities under the Howey test and, if so, whether courts will agree. Clearly many utility tokens were sold more on their investment potential than on their non-investment utility features. It is also clear that some ICO hopefuls have built trivial utility features into their security tokens in a transparent effort to avoid being deemed a security. The Munchee order likely puts a stop to some of the more aggressive tactics of token promoters, but it fails

107


INDUSTRY REAL ESTATE

SPECIALTY INVESTING

A CORNERSTONE FOR REAL ESTATE INVESTING HAS BEEN LEFT INTACT

BRIAN A. SIDMAN Principal Keystone National Properties

In a favorable move for investors, tax reform leaves Internal Revenue Code Section 1031 ready to be utilized Advisory - Sidman

MICHAEL PACKMAN Principal Keystone National Properties

PHONE 305/697.1031 516/900.7450 EMAIL bas@knpre.com mp@knpre.com

108

C-SUITE ADVISORY

Brian A. Sidman is a founder of Keystone National Properties (KNPRE), a real estate advisory firm headquartered in Miami, Florida specializing in tax deferral or tax incentivized real estate transactions and acquisition of income-producing assets nationally. Sidman has prior experience as Executive Vice President for a sponsor of a parking lot and self-storage REIT with $280M of properties across the US. Previously, Sidman served as Senior Vice President for a sponsor of a REIT focused on acquiring grocery-anchored shopping centers across the U.S. In this role Sidman participated in the capital raise and acquisition of $250M of properties in the REIT and More than $100M of Delaware Statutory Trust (DST) product acquiring Multi-family/Retail/Off ice assets. Sidman is a board member of financial technology startup Bundlefi and of a charitable foundation that pledged $20M to St. Jude Children’s Research Hospital in Memphis, Tennessee.

Michael Packman is a founder of Keystone National Properties. Packman began his career more than 20 years ago at a wealth management firm, where he quickly became the youngest Vice President in the firm’s history. Additionally, he oversaw the Long Island region for the brokerage arm of a major international financial firm. In 2003, he formed his own diversified financial company. After the downturn, real estate became a major focus of the firm and has led to its rise as one of the most respected independent financial advisory firms in the 1031 space. Packman frequently speaks at numerous nationally recognized real estate conferences. He is the 1031 expert contributor for the New York Real Estate Journal and has been featured in the Real Deal. His entrepreneurial endeavors now also include co-founding financial technology start-up Bundlefi, where he serves as COO. Packman is a well-respected leader in his industry, serving on several advisory boards.


1. Mountain Dell Consulting, LLC is an affiliate of Orchard Securities, LLC member FINRA/SIPC.

MANY INVESTORS ARE UTILIZING THE DST STRUCTURE, AS EVIDENCED BY MOUNTAIN DELL CONSULTING, LLC’S1 ESTIMATE THAT 2017 ENDED WITH A BETTER-THAN-EXPECTED CUMULATIVE EQUITY RAISE OF $1.9B WITH YEAR-OVER-YEAR GROWTH OF $500M OR +36% VERSUS 2016. Tax reform has looked favorably on real estate investors by leaving section 1031 intact. For many years, utilizing Internal Revenue Code Section 1031 to exchange one property for a replacement property, in turn deferring the capital gains, has been a cornerstone of real estate investing. This is exceptionally important as deductions taken to make income tax deferred while owning a property also reduce the cost basis. A distinct advantage of utilizing section 1031: As long as the rules are followed each time an investor sells and subsequently buys a property, the taxes can potentially be deferred indefinitely. At the time of death, your heirs will generally receive a stepped up cost basis to the current market value of owned property, regardless of how many exchanges the investor may have done in the past (depending on the total market value of the estate). Now, while most real estate investors know how to take advantage of a 1031 exchange in the traditional sense, there is an option to invest in an alternative structure and still defer the gains. This is called the Delaware Statutory Trust (DST). A DST gives investors another avenue to take advantage of the tax code while still staying within the parameters of the 1031 requirements. Many investors are utilizing the DST Structure, as evidenced by Mountain Dell Consulting, LLC’s1 estimate that 2017 ended with a better-than-expected cumulative equity raise of $1.9B with year-over-year growth of $500M or +36% versus 2016. If a property owner is tired of dealing with the hassles of property management yet has a low cost basis, the DST structure still offers a way to take advantage of section 1031 and pass on the day-to-day management tasks to some of the country’s top real estate management firms. Along with hands-on management by an experienced sponsor, the investor receives detailed quarterly reports on the performance of the asset. If there is any leverage used in one of these programs, the debt is all non-recourse to the investor. This may be of particular interest if the current property owned has a personal guarantee, as the investor can exchange the property for a DST and not be liable for the new debt of the DST. A DST can also be used for a partial exchange. For instance, if an investor is selling a $10M property and replacing it with one valued at $8M, the remaining $2M may be invested in a DST and still defer the capital gains. We also see DSTs used quite often as a back-up plan in case one or more of the properties an investor identified to complete their exchange falls through.

The underlying real estate in a DST may be any asset class including, multifamily, office, retail, self-storage or industrial properties. Recently the most utilized asset class has been multifamily apartment buildings. It substantially topped all other asset classes, finishing the year representing 62% of all available DST equity. The real estate in a DST is typically of institutional quality with professional management by a qualified sponsor. As they are completely passive investments, when evaluating a DST, it is important for the investor to perform due diligence on both the real estate and the sponsor of the offering. In many cases, investors enlist a financial advisor or securities broker to assist with locating a DST that may be a fit and help perform the due diligence necessary prior to investing. While a DST is an option for many 1031 exchange investors, it is not for everyone and therefore the investor should consult professionals familiar with the DST structure prior to investing. Whether you are an investor, residential or commercial broker, CPA or attorney, being educated on the DST structure can be very beneficial. If you are an investor and are tired of managing your property, want to remove liability from the debt on your property, or need a property to fall back on because the planned exchange might not close in time, the DST structure may be your answer to avoiding that big tax bill. end

Advisory - Sidman

CSQ SPRING 2018

109


INDUSTRY REAL ESTATE

SPECIALTY RESIDENTIAL

IS EVERY OTHER PERSON IN CALIFORNIA A REAL ESTATE AGENT?

JACK TURTURICI, JR. Founder & Managing Partner Equity Advisors Real Estate Services Los Angeles, CA

How to decide on the best real estate agent to help represent what is usually one of the larger transactions in one’s life Advisory - Turtici

MICHELE TURTURICI Partner Equity Advisors Real Estate Services Los Angeles, CA Jack Turturici, Jr. is founder and managing partner of Equity Advisors Real Estate Services. Mr. Turturici is a third-generation real estate executive who has sold high-end residential properties from Beverly Hills to Malibu and Hidden Hills to Camarillo for more than 20 years. He began his career in the 1990s working residential real estate sales with Fred Sands in the Pacific Palisades and since then has worked for national firms such as Prudential Realty and Sperry Van Ness. In 2015, Turturici teamed with partners and formed Equity Advisors. Michele Turturici, Jack’s wife, is a partner at the company. Combined they have more than 40 years of real estate experience and over $450M in recently completed transactions. The Turturicis are proud parents of daughter Mia, a student at Our Lady of Malibu School where Jack sits on the board of directors. Equity Advisors donates a percentage of all income to A Walk on Water – an organization that uses surf as therapy for special needs children and adults.

110

C-SUITE ADVISORY

PHONE 310/291.1517 WEBSITE eahomesales.com EMAIL jturturici@eahomesales.com mturturici@eahomesales.com ADDRESS 2945 Townsgate Rd. Ste 200 Westlake Village, CA 91361 ADDITIONAL OFFICES Beverly Hills Santa Monica Malibu Camarillo

It may seem that way sometimes. According to First Tuesday, a news resource for the real estate industry, the reality is that there were approximately 97,000 brokers and 200,700 active agents in California at the end of 2017. (For comparison, there were approximately 168,746 lawyers in California per the ABA at the end of 2017.) The more high-end the market, the more real estate agents seem to be prevalent. This is logical since affluent markets bring higher sales prices, translating to higher commissions for agents. So, how is one to decide on the best agent to help represent what is usually one of the larger transactions in one’s life? I remember a story told by the amazing actor Al Pacino when someone asked him about experience and if he felt like he was a better actor now versus 20 years ago. To paraphrase his response, he spoke about a house painter. He said that if he


WITH EXPERIENCE, HOPEFULLY, COMES KNOWLEDGE. BEING ABLE TO ADVISE CLIENTS BASED ON DECADES OF EXPERIENCE IS A GOOD FEELING FOR ANY PROFESSIONAL. WHEN YOU ARE ABLE TO BRING THIS KNOWLEDGE TO THE TABLE WITH EITHER A BUYER OR SELLER, IT ULTIMATELY SAVES YOUR CLIENT TIME, MONEY OR BOTH, WHICH IS ONE OF A BROKER’S DUTIES AS A FIDUCIARY TO THE CLIENT.

Experience

Just as the painter learns with each house painted, so the real estate agent learns with each house sold. With more than a quarter century in the business, we can say that there are not very many transactions that close where we don’t learn something we did not know previously. It may be an element of the transaction itself or a new law that is now in play. It can be how personalities of buyers and sellers fluctuate depending on where you are in the deal. It can be a nuance about the house itself. It’s really endless. However, this is also the most interesting part. No two deals are ever the same. I think it would be a mistake to not look for more ways to absorb and become a better broker/agent with each deal closed. Knowledge

With experience, hopefully, comes knowledge. Being able to advise clients based on decades of experience is a good feeling for any professional. When you are able to bring this knowledge to the table with either a buyer or seller, it ultimately saves your client time, money or both, which is one of a broker’s duties as a fiduciary to the client. Your client’s interests go before yours and as long as you continue along this axiom, you are sure to have many satisfied clients.

Advisory - Turtici Platform/Marketing

set out to paint a house for the first time, he would be a completely different house painter after the experience of exercising the craft for 20+ years. The experiences, mistakes, lessons, time spent, and ability to foresee certain probable outcomes would certainly add up to being a better “painter.” That “experience” as a painter, we feel, translates not only to Al Pacino’s acting but also to selling real estate. In addition to experience, we think there are four other key areas to examine when considering hiring a real estate agent to help you buy or sell a home. Our suggested five areas to vet would be: 1. 2. 3. 4. 5.

Experience Knowledge Platform/Marketing Testimonials Personality

CSQ SPRING 2018

When you buy a property, you want to buy off-market with no competition. When you sell you want the exact opposite. Think of selling a vintage Ferrari. Can you find one of your wealthy neighbors to pay top-dollar by “spreading the word” and selling it “off-market”? Perhaps. Are the odds better of you attaining top dollar if you sell the Ferrari on the open market with maximum exposure to wealthy buyers from all over the world? Of course! When it comes to selling a home, exposure is king. eBay is living proof that there is a buyer for almost everything in this world and the exposure of whatever you’re selling is key on eBay. When you interview agents, make sure that they are going to give your house full marketing and exposure from day one. Anything less is probably serving them by helping them possibly find their own buyer, but not helping you expose your home to the maximum number of buyers.

reviews, and calling several references regarding a real estate agent should be part of your due diligence before you hire said agent. Personality

We all enjoy working with people we actually like. No shock here. When you interview several real estate agents you will see many different types of personalities and styles regarding how they conduct business. You will probably lean toward someone with a similar sensibility, business acumen, etc. as your own. Don’t discount a sense of humor. Life is serious enough and we’ve had some great laughs with clients in the middle of transactionss! Sometimes even a veteran Hollywood script writer would not be able to script some of what you see or hear in real estate transaction! A great many of our clients tend to be attorneys, C-Suite execs, and business owners, so we have a similar way of seeing transactions, negotiating, and handling people. Everybody is different. Find the person who will at least be on the same page with you during a transaction. In conclusion, there are many great real estate professionals out there. By taking your time and using some of these guidelines, we hope you find the right one for you. We welcome the opportunity to sit down with you and discuss any questions you may have relating to the sale or purchase of a home. At Equity Advisors, we pride ourselves on handling every transaction with an uncompromising commitment to excellence and attention to detail. end

Testimonials

There is a reason people love TripAdvisor, Amazon, Yelp, and Consumer Reports. We all love to read reviews! This gives us the good and bad about products, restaurants, and services before we make a decision. You are about to undertake a VERY large transaction when you buy or sell a home. Reading testimonials from Zillow, client

111


INDUSTRY REAL ESTATE

SPECIALTY TENANT REPRESENTATION

A SIMPLE EQUATION FOR AN OUTSTANDING COMPANY CULTURE

Two aspects every business should practice

SHAY HUGHES President & COO Hughes Marino Los Angeles, CA New York, NY

Advisory - Hughes

Shay Hughes is president and COO of Hughes Marino, a nationally recognized commercial real estate firm committed to only representing tenants in their lease and purchase transactions. Hughes manages the end-to-end operations of the firm and plays a key role in all aspects of business strategy, human resources, marketing, and client relations. She has been instrumental in shaping Hughes Marino’s culture, spearheading the development of the company’s ten core values, and investing great time and energy into building a world-class team of professionals who are not only at the top of their game in business, but also treat one another like family.

PHONE 310/277.3211 212/864.2211 WEBSITE hughesmarino.com EMAIL shay@hughesmarino.com ADDRESS 11150 Santa Monica Blvd. Suite 850 Los Angeles, CA 90025 200 Broadway New York, NY 10038

112

C-SUITE ADVISORY

Even before opening Hughes Marino, we always had an intense desire to break the mold and revolutionize our antiquated industry. We were determined to start a company that didn’t yet exist in the cut-throat and oftentimes unethical industry of commercial real estate and hoped it would be a breath of fresh air for both team members and clients. We wanted to create a company that was built on a foundation of strong core values and an amazing company culture, where our team would feel more like a family, rather than coworkers in cubicles competing against each other. We also wanted to be confident that our clients would receive outstanding service no matter whom they were speaking with, and walk away with an inspiring, positive impression of our impeccable team and best-in-class service. It’s funny how it works sometimes. By focusing less on financial gains and more on building the most amazing team we could envision, we’ve achieved great success, both from a financial and growth perspective, and also by creating an award-winning culture. A byproduct of following our instincts in what we believed was the right way to grow a company, we are humbled and honored to be recognized as a leader in company culture nationwide:

• •

#7 Best Workplace in the Nation — Fortune #3 Top Company Culture in the Nation (Medium Companies) — Entrepreneur #1 Best Place to Work — Business Journals in every region we operate

What does company culture have to do with success in commercial real estate? It has positioned us as a disruptive leader in our industry, attracting both impressive talent and clients eagerly knocking on our doors, all the while enjoying the journey alongside a team who we consider family. The good news for other companies is that this business model can be replicated by any business in any industry. Our beautiful workspaces are beacons of inspiration to both our team members and clients. Our dedicated practices of appreciation and recognition in the workplace are constantly driving our team to deliver excellence. We believe that happy team members make happy clients, and the flood of emails we receive from clients expressing both gratitude and awe of the service they’ve received (and the team members they’ve interacted with) proves that theory perfectly. In fact, many of our clients are so inspired by the company culture they experience first-hand when working with our team that they ask us to help them emulate what we’ve built at Hughes Marino.


WHAT DOES COMPANY CULTURE HAVE TO DO WITH SUCCESS IN COMMERCIAL REAL ESTATE? IT HAS POSITIONED US AS A DISRUPTIVE LEADER IN OUR INDUSTRY, ATTRACTING BOTH IMPRESSIVE TALENT AND CLIENTS EAGERLY KNOCKING ON OUR DOORS, ALL THE WHILE ENJOYING THE JOURNEY ALONGSIDE A TEAM WHO WE CONSIDER FAMILY. THE GOOD NEWS FOR OTHER COMPANIES IS THAT THIS BUSINESS MODEL CAN BE REPLICATED BY ANY BUSINESS IN ANY INDUSTRY.

As you can imagine, an outstanding company culture is a vital part of the equation for the success of any business, and I am regularly asked how we’ve developed such an outstanding culture at Hughes Marino. While nothing great comes easy, what I can say is that it all boils down to a very simple equation: Core Values + Amazing People = Outstanding Company Culture Here are two important aspects to our equation of success that have helped us cultivate an award-winning company culture. Develop Meaningful Core Values

While some businesses have core values on their website as a way to fulfill a requirement, quantifying which values mean the most to you and your team is a great way to solidify the “backbone” of your company. These values can also act as a compass to direct every aspect of your operations. At Hughes Marino, our ten core values guide how we conduct business, how we treat our clients and team, and how we hire new team members. With the first two core values being “always do the right thing” and “deliver excellence in everything we do,” we can never go wrong! For companies that haven’t yet defined core values, here are a few questions we asked ourselves that may help you get started, too!

thrive and belong too, so by never compromising on hiring, it’s a win-win for both parties! Another way we filter candidates is by ensuring they share our same core values. We have found that by placing our values out into the world, they attract people who share common values and are eager to be a part of what we are building. Once you find and establish an all-star team, be sure to nurture them to ensure they feel fulfilled and happy to come to work every single day. What activities does your company organize to nurture a positive atmosphere? By providing weekly groceries, hosting monthly birthday celebrations, organizing all-team events, and having ping-pong and billiards tournaments, we never pass up an opportunity to have our team bond as a family and appreciate the amazing group of people they get to work with every day! Culture is what you make it to be, and it begins with values and people. We took a major risk when we set out to disrupt the status quo of the commercial real estate industry, and I am so thankful we took that leap many years ago. By establishing our ten core values and finding the most amazing people possible, we are making a powerfully positive impact in our industry and are grateful for the success we’ve achieved on behalf of our clients as a high-performing team. Is it time to transform your company culture? By following this simple equation, I can ensure the possibilities to finding success are endless! end

Advisory - Hughes • • •

Who is at your company today? What attracted everyone to work there? What are the qualities that bind you together as human beings?

Bringing your entire team together to identify and discuss answers to these three questions can point you in a great direction toward developing core values that can help guide your hiring, team retention, and the way you do business! Build and Nurture an Amazing Team

The first step to building a dream team is to never compromise on hiring, no matter how dire the situation is to fill a position. Protect your team like family, and interview as if you were searching for someone to live in your own home. We would rather have our existing team members wear many hats than settle on hiring a new team member who won’t mesh with our cherished company culture. In the end, it will avoid a lot of painful and awkward situations, not to mention the time spent hiring, training, and nurturing a not-so-perfect fit, as that is valuable time that cannot be taken back. After all, those individuals deserve to be working at a place where they can

CSQ SPRING 2018

113


C-Suite AdvisorsTM Index ACCOUNTING Trent Brown Deloitte & Touche LLP trbrown@deloitte.com Harry Galstian Direct Tax Relief harry@directtaxrelief.com T’Shaka Lee Deloitte & Touche LLP tshakalee@deloitte.com Scott M. Sachs, CPA CohnReznick LLP scott.sachs@cohnreznick.com

Geoffrey R. Berlin, CFP® Executive Director J.P. Morgan Private Bank 310/860.7116 geoffrey.r.berlin@jpmorgan.com Ed Bagdasarian Intrepid Investment Bankers ebagdasarian@intrepidib.com Robert Dalie The Summa Group of Oppenheim & Co. Inc robert.dalie@opco.com

CONSULTING

Doug DeGroote DeGroote Financial Group doug@degrootefinancial.com

Majid Abai Concepts Rise, LLC majid.abai@conceptsrise.com

Josh Fein Advice Period josh.fein@adviceperiod.com

Brian Barry Dale Carnegie brian_barry@dalecarnegie.com

Jim Freedman Chairman & Managing Director Intrepid Investment Bankers 310/478.9000 jfreedman@intrepidib.com

Adam Bohn EVP / CTO INC Technologies 310/910.9044 adam@inctech.net

Alan Hopkins Manchester Financial alan@mfinvest.com

Brian Frankel Frankel Consulting Group brian@frankelconsulting.net

Jeffrey Knakal Growth Partners jeff@growthpartners.net

James Harwood Founder & President Total HR Management Vice President CoAdvantage 818/248.0049 james@totalhrmanagement.com

Brian Levin Intrepid Investment Bankers blevin@intrepidib.com

Aramis Hernandez President INC Technologies 310/910.9044 aramis@inctech.net

Ashok Patel Commercial Bank of California apatel@cbcal.com

Kevin Parikh Avasant kevin.parikh@avasant.com Andy Popov Avasant andy.popov@avasant.com Vlad Vaiman Cal Lutheran University vvlaiman@callutheran.edu FINANCE Adam Abramowitz Intrepid Investment Bankers aabramowitz@intrepidib.com Lauren Antion Associate Beauty & Personal Care Intrepid Investment Bankers 310/478.9000 lantion@intrepidib.com

114

C-SUITE ADVISORY

HEALTH & WELLNESS Carol A. Polevoi, LMFT, CBS, CPC Counseling Resource Center carolpolevoi@gmail.com Amir Vokshoor, MD Providence St. John’s Health Center & Institute of Neuro Innovation vokshoor@gmail.com INSURANCE Bradley A. Barros My National Family Office, Inc. bradley.barros@rodnunskylaw.com Bryce Eddy Tolman & Wiker Insurance beddy@tolmanandwiker.com Cathy Kerhulas HUB International Insurance cathy.kerhulas@hubinternational.com Martin Levy Corporate Strategies marty@corpstrat.com Lars Rathje Lockton Companies lrathje@lockton.com Danone Simpson Montage Insurance Solutions danone@montageinsurance.com

Advisory - Index

Marvin Padilla Intrepid Investment Bankers mpadilla@intrepidib.com

Gregory Stephens Tolman & Wiker Insurance Services gstephens@tolmanandwiker.com Robyn Welch HUB International Insurance robyn.welch@hubinternational.com LEGAL

Larry Schnaid UBS Financial Services larry.schnaid@ubs.com

Lawrence M. Braun Sheppard Mullin lbraun@sheppardmullin.com

Rich Schuette Avalan LLC rich@avalanwealth.com

Will Chuchawat Sheppard Mullin wchuchawat@sheppardmullin.com

Tristan Snyder Intrepid Investment Bankers tsnyder@intrepidib.com

Stacy D. Phillips Certified Family Law Specialist Partner Blank Rome LLP 424/239.3400 sdpdissoqueen@blankrome.com

Brian K. Werdesheim Managing Director - Investments The Summa Group of Oppenheimer & Co 310/446.7133 brian.werdesheim@opco.com Jonathan Zucker Intrepid Investment Bankers jzucker@intrepidib.com

W. Alex Voxman Latham & Watkins LLP alex.voxman@lw.com Sander C. Zagzebski Partner Ervin Cohen & Jessup LLP 310/281.6349 szagzebski@ecjlaw.com MARKETING Charlie Ittner Managing Partner Darien Group 310/247.1050 charlie@dariengroup.com Mike Schaffer Founder & CEO Echo-Factory 626/993.3770 michael@echo-factory.com REAL ESTATE R. Todd Doney CBRE todd.doney@cbre.com Jason Hughes Hughes Marino jason@hughesmarino.com Shay Hughes President & COO Hughes Marino 310/277.3211 212/864.2211 shay@hughesmarino.com Tucker Hughes Hughes Marino tucker@hughesmarino.com Michael Packman Principal Keystone National Properties 516/900.7450 mp@knpre.com Brian A. Sidman Principal Keystone National Properties 305/697.1031 bas@knpre.com Jack Turturici, Jr. Managing Partner Equity Advisors 310/291.1517 jturturici@eahomesales.com

Mark Levinson Thompson Coburn LLP mlevinson@thompsoncobrun.com

Michele Turturici Partner Equity Advisors 310/291.1517 mturturici@eahomesales.com

Steven C. Sereboff SoCal IP Law Group LLP ssereboff@socalip.com

advisory@csq.com

for Elite members who appear in print


DIFFERENTIATE YOURSELF FROM YOUR PEERS

The exclusive thought leadership platform + community

Are you a C-Suite Advisor? Our C-Suite Advisors are an invite-only community of trusted thought leaders - the best in class advisors to the C-Suite, business owner and entrepreneur.

Thought Leadership Publish multiple articles per year and promote your expertise on CSQ.com’s credible platform

CSA House Ad SEO Optimized Profile A large percentage of our community find themselves on the first page of a Google search*

Community Access Meet other C-Suite Advisors and CEOs with event access and be discovered by your next board, client, or referral partner

* Results may vary APPLY TODAY

Contact our C-Suite Advisors Director to start the application process today 818.225.8168 | advisors@csq.com | CSQ.com/advisory


Smart Eating... On the Go!

No more excuses for unhealthy eating on the go! Subscribe to A Healthy Life! Conscious Fuel provides top-quality and selective non-GMO, gluten-free options and organic snacks that allow people a substitute for unhealthy choices.

Conscious Fuel

GLUTEN FREE

GMO FREE

ORGANIC

Weekly and monthly boxes available.

www.consciousfuel.com

First month free. Use code: CFCSQ2 (with a 3-month subscription)


118 Exhibits & Performances 120 CSQ&A 122 Proprietors’ Profiles 126 Fine Dining 130 Required Reading & Listening

Culture & Taste

Part 4

Culture & Taste - TOC Opened in 2008, Animal is the flagship property of Jon Shook & Vinny Dotolo’s culinary empire (p. 122) which includes Son of a Gun, Jon & Vinny’s, Trois Mec, Petit Trois, and more.

CSQ SPRING 2018

117


OF NOTE

Exhibits & Performances Spotlighting a C-Suite 7 of Los Angeles and New York’s notable upcoming calendar-worthy occasions

Los Angeles

New York

KING TUT: TREASURES OF THE GOLDEN PHARAOH California Science Center Inquire for schedule and tickets

AROUND TOWN LA Other exhibits of note this season

GRANT WOOD: AMERICAN GOTHIC AND OTHER FABLES Through June 10, 2018 Whitney Museum of American Art

AROUND TOWN NYC Other exhibits of note this season

In recognition of the 100-year anniversary of the discovery of King Tut’s tomb, the California Science Center is hosting the largest King Tut exhibition in history—shattering previously held records. First in Los Angeles in the 1960s, the exhibit was followed by a tour in the 1970s that broke records at LACMA, drawing more than one million visitors (the museum’s most highly attended show to this day). This most recent exhibit features more than 150 authentic artifacts from the celebrated tomb of King Tutankhamun—who mysteriously died at 19. Along with the artifacts, this exhibit utilizes multimedia, taking visitors on a wholly immersive journey of the pharaoh’s quest for immortality while discovering how scientific analysis of King Tut’s 3,300-year-old mummy has revealed new information about his health and lineage. californiasciencecenter.org

Made in L.A. 2018 June 3 to September 2, 2018 Hammer Museum

Perhaps the most recognizable painting in 20th century American Art and an unquestionable icon of Americana is Grant Wood’s American Gothic. While the painting, a double portrait of a farmer holding a pitchfork and a woman (presumed to be his wife), is certainly Wood’s most famous work, “American Gothic and Other Fables” brings together his entire artistic collection. From early arts and crafts decoratives to impressionist oils and his paintings, murals, and book illustrations—this exhibition sheds light on a man who sought to produce harmony and prosperity through his work, despite working during a time of economic upheaval caused by the Great Depression. whitney.org

Visitors to Versailles Through July 29, 2018 The Metropolitan Museum of Art

Culture & Taste - Of Note

118

CULTURE & TASTE

David Hockney: 82 Portraits and 1 Still Life Through July 29, 2018 LACMA Real Worlds: Brassaï, Arbus, Goldin Through September 3, 2018 MOCA Beyond the Nile: Egypt and the Classical World Through September 9, 2018 The J. Paul Getty Museum Leonard Bernstein at 100 April 26 to September 2, 2018 The Skirball Center Genghis Khan: The Exhibition Through August 19, 2018 Ronald Reagan Presidential Library

Bodys Isek Kingelez: City Dreams Through 2018 MoMa One Hand Clapping Through October 21, 2018 Solomon R. Guggenheim Museum The Black School x Kameelah Janan Rasheed Through September 16, 2018 The New Museum Chaim Soutine: Flesh Through September 16, 2018 Jewish Museum David Bowie Is Through July 15, 2018 Brooklyn Museum


Become a Part of History Founded by First Lady Jacqueline Kennedy,

The White House Historical Association is a private non-profit educational organization with a mission to enhance the understanding and appreciation of the Executive Mansion. We support the museum standard collection at the White House of American decorative arts and furnishings. We also teach and tell the stories of White House history through our education programs and award winning publications. Since the beginning, we’ve relied exclusively on the generosity of the American people to support our work preserving and teaching the history of the “people’s house.”

White House Historical Assn

Stewart D. McLaurin President, The White House Historical Association

Support The White House Historical Association Learn More at whitehousehistory.org/support 740 Jackson Place, N.W. Washington, DC • membership@whha.org • 202-218-4306


On the occasion of the opening of the Kohler Experience Center in West Hollywood, CSQ sat down with the fourth-generation president and CEO of Kohler Co. to discuss Kohler’s ambitious foray into brick-and-mortar retail with Experience Centers

Culture & Taste - Kohler CSQ&A DAVID KOHLER PRESIDENT & CEO KOHLER CO.

CSQ Before we get to the incredible Kohler

Experience Center we’re sitting in, what are you most proud of accomplishing professionally as a member of the company? David Kohler Playing a role in significantly growing the company over the last 20 years, navigating through the worst decline in the U.S. housing market since the Great Depression, and transitioning the company leadership from my father to me as president and CEO. CSQ Speaking of navigating, how have shift-

ing consumer trends affected the way you and the team think about your business and products? DK Consumer trends are always changing— especially in the retail space where we are seeing significant transitions in the face of serious ecommerce growth. We recognize that a lot of inspiration for the home renovation process begins in the digital space but when it comes time to transition from inspiration to the purchase, that doesn’t translate as well in the digital space. That is why we believe strongly in our Kohler Experience Centers (KEC). When homeowners are investing in something for their kitchens or baths, they connect with it every day. We feel it’s a game-changer to touch and see the product in person. KEC LAX pro120

CULTURE & TASTE

vides an elevated, unparalleled customer service experience for everyone who comes into the space. It’s the ultimate try-before-you-buy for the home and design space. CSQ How many Kohler Experience Centers are there globally? Do they vary at all? If so, based upon what? DK There are seven KECs across the globe— two of which are in the U.S. The aesthetic of each reflects the city’s own design, culture, and architectural spirit. For instance, KEC LAX in West Hollywood was designed by renowned local architecture firm Marmol Radziner—the space evokes Southern California’s mid-century modern vibe inside and out. CSQ Do you see this as a continued area of growth? DK Absolutely. We entered the retail space in 2012 with the launch of our Kohler Signature Store concept. Six years later, we have 21 Kohler Signature Stores in the U.S., and our presence continues to grow with Kohler Experience Centers. We are incredibly committed to brick and mortar retail as a core component of our business and plan to launch a total of ten KECs in 2017 and 2018 in order to meet global demand. end


Cross Campus


PROPRIETORS’ PROFILE LOS ANGELES

Jon Shook & Vinny Dotolo Chefs & Co-Owners Joint Venture Restaurant Group

As they prepare to open the second location of existing brands Petit Trois and Jon & Vinny’s, Jon Shook and Vinny Dotolo—two of Los Angeles’ most influential chefs—open up about expansion, brotherhood, and their recipe for running a successful culinary empire By Matthew Seukunian

Culture & Taste - Jon & Vinny 1

Age 37 Residence Near the restaurants Family Wife, 2 children Garage Lexus’ and 4 bicycles

Business Over A Drink “One of our restaurants. I feel the most comfortable here.“ Travel Mexico Success I’m trying to figure that out. Mentor Benedikt Taschen

“We’re excited about repeating a restaurant for the first time … we’re doing it twice this year—once with Petit Trois and once with Jon & Vinny’s,” says Jon Shook as I sit with him and his business partner Vinny Dotolo in a not-yet-open-for-the-day Animal on Fairfax Avenue in West Hollywood. In the hour and change spent with the iconic Los Angeles duo (who look the part these days, from the snapbacks to the Vans), one thing is clear: They’re not messing around. “We’re laser focused on everything when we’re in these buildings,” Dotolo says, adding, “I’ve lived, breathed, and oper-

122

CULTURE & TASTE

Sponsors All Clad, Delta, Lexus, Vans LA Eateries Matsuhisa, Mario’s Peruvian, Luv2Eat Thai Bistro Up-and-Coming LA Chefs Sara Kramer, Sarah Hymanson, Dano Heinze

VINNY DOTOLO Age 38 Residence Near the restaurants Family Wife, 2 children Garage I don’t have a garage! Business Over A Drink Tiki Ti

ated restaurants with Jon since I was 19 years old… we know restaurants inside and out.” While the calm, cool, and collected confidence they exude seems to come easy, it’s also clear how hard they worked to feel the way they do. And as is often the case, even with hard work, it takes time to achieve success that allows confidence. Manifest Destiny

Shook and Dotolo grew up on opposite shores of Florida before meeting at the Culinary School at the Art Institute of Fort Lauderdale. Shook was

Travel Somewhere I haven’t been. Of the places I have, Rome and Tokyo are my favorites. Success Being happy Mentors Michelle Bernstein, Ben Ford, Benedikt Taschen Sponsors All Clad,

Delta, Lexus, Vans LA Eateries Matsuhisa, Gjusta, Gjelina, MTN, Night Market, Burritos LA Palma Up-and-Coming LA Chefs Sara Kramer, Sarah Hymanson, Miles Thompson, Jonathan Whitener

fresh out of high school at the time and Dotolo was one year removed. After culinary school they worked with lauded Miami Chef Michelle Bernstein before heading to Vail, Colo. in 2001 where they worked for Ray Roach, cooking at Wildflower. Miami to Vail? I ask. “Cold,” Shook replies. A little more retrospective, Dotolo notes that while they enjoyed their time in Colorado and certainly made their fair share of friends, they “were not cooking ambitiously.” Following their ambition, they did what many have done before them and headed further west.

Photo: Tim Hans

JON SHOOK


JOINT VENTURE RESTAURANT GROUP Founded 2004 Employees 350

2008 Animal

2011

Son of a Gun

2013 Trois Mec

2014 Petit Trois

2015

Jon & Vinny’s & Petit Trois

2016 Kismet

2018

television, discovering much about who they were and who they wanted to be. “We knew who we were but not how to extract it … we knew how to play the instruments, we just didn’t know what the album would sound like,” Dotolo metaphorically explains. Now, there’s an album. They opened their first—and flagship—restaurant, Animal, in 2008 to praise, fanfare, and critical acclaim. Though the Los Angeles dining scene at the time was not the behemoth it is today, they did find themselves in the same geographic epicenter as Jose Andres and Suzanne Goin to name a few. While the sailing was fairly smooth, it did take some adjusting to get their sea legs under them during the early months and years at Animal. “It was an amazing process … we grew a lot as people because we were forced to grow,” Dotolo notes. Their success at Animal prompted encouragement from those around them—including investors—to increase the size of their plate, and so in 2011 Son of a Gun opened beginning what, in hindsight, can safely be dubbed a pattern. “Son of a Gun opened and it went well, which allowed us to then start to think about working with other people. We realized we couldn’t be everywhere and we wanted to figure out how to grow without breaking our britches,” Shook explains. As for that pattern, Shook and Dotolo then put any additional ideas about further expansion on hold as they instead partnered with their friend—Chef Ludo Lefebvre—and helped him open Trois Mec, one of Los Angeles’ pinnacle dining destinations that continues to represent the city’s new wave of cuisine. Shortly after Trois Mec opened, the dominos kept falling and they, along with Ludo, opened Petit Trois next. By now, their aptitude was fine tuned and their track record of success, proven—the only logical next step would be to open another restaurant, one

A Different Type of Manifest Destiny

Having discussed the trio of their own restaurants and a handful of others they are partners and investors in, Shook and Dotolo now slow down to reflect on how exactly it all happened. “We have a little chameleon in our personality … we’re open to changing and it’s been nice because we’ve always done it together. We didn’t set out in a certain direction, either … we’ve kept expanding, opening our arms, folding things in … we will take on what we feel like we can,” Dotolo says happily. While sustainable growth is the name of their game, Shook admits that—at times—they “feel an obligation to keep expanding for our team … to create more opportunity for them,” adding that “it’s been fun to be able to provide for them.” This year they—excitedly, Shook will have you know—have their hands full as they prepare to open a second Petit Trois in Sherman Oaks and a second Jon & Vinny’s in Brentwood—letting the seam out a little more in those britches, if you will. Perhaps a key to their continued success has been their methodical partnership. As Shook looks back, he notes that the pair met just out of high school, became friends, then roommates, then business partners, and now operate as brothers more than partners, watching their kids play together. Throughout their journey they have stayed true to themselves, their teams, and their restaurants. “We demand a lot of ourselves,” Dotolo says. Shook adds, “We strive to only put out the best product … besides, a fair and honest business will last forever.” end

Culture & Taste - Jon & Vinny

Second locations of Jon & Vinny’s and Petit Trois

Not long after arriving in Los Angeles, they landed a job working for Ben Ford, son of Harrison Ford, at Chadwick in Beverly Hills where Ford let the duo reopen lunch, run lunch, and cut their teeth on catering while he prepared to open Ford’s Filling Station. Catering—which today is the biggest chunk of their business—took on a life of its own and became their sole focus, allowing them to launch Carmelized Productions in 2004. By 2007, before either turned 30, they were catering up to 15 events a week from 10-person dinners to parties for 300, and The Food Network took notice. In June 2007, they starred on Two Dudes Catering, a short-run but wildly-entertaining look at their planning and preparation for events like the X Games. Where was the kitchen they were catering out of at the time? A cozy but unnamed storefront on Fairfax Ave.

1. Jon Shook (L) and Vinny Dotolo(R)—a formidable pair 2. Renowned publisher Benedikt Taschen recommended the restaurant’s architect, which led to the incorporation of a bookstore-esque ambience

Opening Animal and More

Better suited behind the stove than in front of the camera, the two learned a lot during their time on CSQ SPRING 2018

of their own this time. Enter, Jon & Vinny’s (opened in 2015)—the West Hollywood neighborhood breakfast, lunch, and dinner Italian restaurant you can’t stop talking about and can’t wait to take outof-towners to when they come visit.

2 123


Two of New York’s rising culinary stars—Jeremiah Stone and Fabián Von Hauske Valtierra—are building on past success at the one Michelin Star Contra as they open their third restaurant in the Lower East Side, a neighborhood of which are proud to be a pivotal part By Matthew Seukunian

1. The ingenius Fabián Von Hauske Valtierra (L) and Jeremiah Stone (R) 2. Dessert at Contra tastes as good as it looks 3. Contra’s refined dining room

PROPRIETORS’ PROFILE NEW YORK

4. At Contra, diners choose between non-vegetarian and vegetarian tasting menus, each offering six courses

Jeremiah Stone & Fabián Von Hauske Valtierra Chefs & Co-Owners, Contra Group

Culture & Taste - Fabian & Jeremiah

Geography is so often synonymous with something or someone well known to all of us. Buckingham Palace and the Queen of England, for example, or 221B Baker Street and Sherlock Holmes. Even P. Sherman and 42 Wallaby Way, Sydney. Jeremiah Stone, 33, and Fabián Von Hauske Valtierra, 28, are hopeful that one day, Orchard Street in Manhattan’s Lower East Side becomes synonymous with them, their restaurants, and their food. “The newest place [Una Pizza Napoletana] is a block away from our first two restaurant [Contra and Wildair]. We’re proud of being on the Lower East Side and are proud of being on Orchard Street specifically. It’s become a very big part of who we are gives an identity to the restaurants,” Von Hauske says. 124

CULTURE & TASTE

JEREMIAH STONE

FABIÁN VON HAUSKE VALTIERRA

INDUSTRY AWARDS & RECOGNITION

Age 33 Residence East Village Business Over A Drink Ten Bells Travel Paris Success Friendship Mentor Fabián von Hauske Valtierra Culinary Inspiration Iñaki Aizpitarte Charities Supported Cookies for Kids’ Cancer, Edible Schoolyard NYC

Age 28 Residence East Village Business Over A Drink The Grill Mentor My father Culinary Inspiration Christian Puglisi Charities Supported Cookies for Kids’ Cancer, Edible Schoolyard NYC

[2016,2017] Michelin Star [2017, 2018] James Beard Semi-Finalist [2016] Food and Wine Best New Chefs NYC [2016] Forbes 30 Under 30 Food and Drink 2016

Photos: Contra Group & Fabián Von Hauske Valtierra

1


Von Hauske, born in Mexico City, and Jeremiah Stone, who hails from Maryland, have been friends since they met at the French Culinary Institute in New York which, though it may seem otherwise given their successful rise to culinary fame, was not too long ago. They both came to New York to pursue cooking, something they developed an interest in while growing up—in very different parts of the world. “We’re two people with very different backgrounds that decided to settle down in New York and that is what we want to evoke,” Von Hauske notes when speaking about what makes their connection special. Having completed culinary school with a shared vision of one day being business partners, the duo cut their culinary teeth in kitchens across New York and Europe (Von Hauske also made a stop in Australia). While Stone gained valuable experience in Paris, Von Hauske made a stop at Noma in Copenhagen, cooking for Rene Redzepi. And what did he learn while cooking at what was then the #1 restaurant in the world? “I will never forget how hard the work was,” Von Hauske recalls. Of Redzepi, he adds, “he is an inspiration to everything we do and a ghost mentor. … It was amazing to see someone have a clear vision about what they want, communicate that to other people, and make them passionate about that vision as well.” Though Redzepi was an inspiration (one of many the duo are not shy when asked to mention peers and friends they look to for inspiration, advice, and insight), at the end of the day, Stone and Von Hauske are the straw that stirs their own proverbial drink. After bouncing around Europe they returned to New York with full bellies and a clear vision, taking much away from their time as chefs and diners across the continent. After consultant work, gigs in the back of house, and the precise orchestration of

a series of popups, they opened their first restaurant—Contra—in 2013. Contra is a fixed price tasting menu restaurant that represents the pair’s past experiences around th globe. “We had worked all over the place and while those places had concepts and regionality, it felt like something was missing … we wanted to make it inherently New York,” Stone says proudly. “When we opened we were worried about people not understanding the vision … we were trying to be ahead of the curve and trends … from an all natural wine list to a menu driven solely from our ideas and not a classical menu,” Stone notes in reflection. A few years after the fact, Contra’s success is no secret. In March 2014, famed New York Times restaurant critic Pete Wells said the duo had achieved “a personal, understated, modern approach to deeply seasonal cooking.” Beyond Wells very important seal of approval, they would receive much critical acclaim in the coming years. In 2016, Von Hauske was a member of the Forbes 30 Under 30 while the duo were named Food and Wine Best New Chefs New York (gracing the cover of the magazine of which Stone says with a laugh, “I doubted I would ever be on the cover of a magazine.”). In 2017 and again this year they are Semi-Finalists for James Beard awards (the 2018 winners are announced in Chicago in May) and—most importantly—Contra received 1 Michelin Star in 2016 and again in 2017. Upon further reflection, Stone adds, “it has validated a lot of what we are doing and has made us feel like we are doing the right thing.” Adds Von Hauske, “Each time we win an award or get recognition it validates what we are doing and gives us confidence … but every year we know the Michelin Guide is coming back and we have to keep up with standards, be better, and do better.” While they have pushed forward (Von Hauske defines success as a never ending series of goals you

set for yourself) in an effort to improve, they also do more. So happy were they where on Orchard Street that when a neighboring restaurant shuttered in 2015, they huddled up with their wine director and decided it was time again to bring a vision to life—just two doors down from Contra. Enter Wildair (named after a prize winning race horse living in the area before the Civil War), a neighborhood eatery with a wicked wine list featuring more of those natural (and orange) wines of which Stone is so enamored. When we spoke this March, Stone and Von Hauske were preparing to open their third restaurant with partner Anthony Mangieri who, according to some, makes the best Neapolitan style pizza you’ll ever eat. Mangieri opened Una Pizza Napoletana in New Jersey in 1996, moving to the East Village in 2004, San Francisco in 2009, and now back to New York thanks to Stone and Von Hauske. Where in New York? On Orchard Street, shouting distance from Contra and Wildair. Una Pizza Napoletana is opening soon, giving Stone and Von Hauske a trio of can’t miss, dynamic, eateries rich with the success that Redzepi, Dan Barber, or any chef for that matter would kill to have. Are they done growing? Not likely. Their original dream was an ice cream shop, so who knows. Until then, they have plenty of reasons ( Lower East Side residents) and a troika of restaurants that present exciting opportunities rather than challenges. Speaking of the success they have attained, Von Hauske states, “I don’t know if it’s excitement but I definitely consider it motivation … knowing we can always improve on what we’re doing.” On that same note, Stone adds of success that he wants to be able to “step back and see the people around us are happy to be working for and with us … I don’t think I see success until I see a system where everyone involved feels like they are giving something and gaining something in return.” end

Culture & Taste - Fabian & Jeremiah

CONTRA GROUP Location Lower East Side, NYC Employees 30 Mission Make as many friends as possible

2013 Contra

2

2015 Wildair

2018

Una Pizza Napoletana

3 CSQ SPRING 2018

4 125


The New Downtown LA Meets New and Established New York City Classics

FINE DINING Los Angeles

NoMad Los Angeles From the team behind 2017’s World’s #1 Restaurant— Eleven Madison Park The NoMad Los Angeles, owned by Sydell Group, has landed on 7th and Olive Street in the heart of Downtown LA. Formerly The Bank of Italy, the building has been restored to all its original glory. It’s hard not to stare at the gold and blue ceiling, reminiscent of 1920s glamour. But luckily Daniel Humm ensures the food is as noteworthy as the stunning surroundings. The NoMad Los Angeles has the same contagious energy as the New York property. You’re transported to somewhere in Europe with the velvet furniture, dark lighting, and impressive, albeit petit, portions of food. The property calls for several visits to truly understand all that it has to offer. The Lobby offers lunch

and a more casual dinner option, while the upstairs Mezzanine is the more formal dinner option. The Mezzanine features a private bar for dinner guests and their famous whole roast chicken. Start out with the “snacks” section of the menu and do not miss the lettuces with a buttermilk, herbs, and crispy baguette dip. It sounds simple, but the dip is nostalgic and better than the best chips and dip you’ve had. Pastas change with the season. A pappardelle on a recent visit was garnished with spring peas, while they opened with a rich celery root tortelloni. Both were extraordinary. Notable entrees include the roast chicken for two, although different in preparation from the New York version, as well as the broccoli and suckling pig, and confit with persimmons. Service is refined and drinks are strong. Finish with one of their large format drinks for 6-8 in The Lobby. thenomadhotel.com

Downtown Los Angeles’ latest openings come from big names who each chose downtown as the home for their brand’s first LA outpost. Meanwhile in Manhattan, we check in on some all-time greats and the newest debute from legendary Chef Masa By Brittany Fuisz & Matthew Seukunian

2

Culture & Taste - Fine Dining Inko Nito The vision of Zuma Creator Rainer Becker

1 126

CULTURE & TASTE

Inko Nito comes to us by way of Rainer Becker, creator of Zuma, a famous sushi restaurant with locations in London, Miami, and Istanbul. This casual Japanese restaurant is located in the center of the Arts District and offers modern robatayaki. The space was designed with energy in mind and is meant to mimic the feeling of a street market dining experience. That is, the most glamorous street market imaginable, with white oak furniture. The large menu boasts fun twists on classic cocktails like Inko Spritz with watermelon, aperol, yuzu, and sparkling wine or the Palomita with sakura tequila, lime, pink grapefruit, and agave. Start with the Romaine Lettuce with spicy cashew miso nut dressing, a creative spin on a salad bursting with flavors. Niigaki are similar to sushi with roasted nori

3

and sushi rice and a unique presentation. The Cali was served with dungeness crab, avocado, wasabi tobiko, and yuzu mayo. The robata offers many fabulous options from Beef Cheek with spicy Korean miso and butter lettuce to Lamb Shoulder Chop with wasabi shiso marinade and roasted nori yogurt. There are also a plethora of fish from the robata, like Whole Branzino with yuzu, wasabi, and jalapeño sauce and Yellowtail Collar with brown butter ponzu and lemon. Vegetables are by no means an afterthought. Highlights include the Sweet Potato in husk with chili, nori butter, and chives or Cauliflower with garlic soy aioli and Parmesan panko. The one and only dessert is probably the main rea son to find your way to Inko Nito sooner rather than later: The charred coconut soft serve with soy pocky sticks and Japanese granola. Supposedly the flavor will change seasonally, so do not delay. inkonitorestaurant.com


1. French architect Jacques Garcia paired low lighting and lush furniture to emphasize the 1920s glamour of the old bank 2. Not your ordinary soft serve, Inko Nito’s coconut soft serve is one of the city’s finest 3. Beef cheek with butter lettuce and spicy Korean miso 4. Whole plate short rib served with condiments and sides 5. Fried butterball potatoes with seca salsa and peanuts 6. Bing breads pair well with various toppings like smoked roe and eggs 7. A wall of windows opens up to an airy patio

4

Culture & Taste - Fine Dining 5

6

Majordōmo From culinary icon David Chang, founder of the Momofuku empire David Chang’s first LA restaurant is in a rather unusual location in Chinatown, just a few yards from the LA River. You are likely to think you’re lost just before you arrive, but proceed, as you’ll come to a valet and some incredible, modern Korean fare. The warehouse-like space is industrial and modern, featuring high ceilings and a large outdoor patio. Start with a cocktail like the Thriller with mezcal, ginger beer, passionCSQ SPRING 2018

7

fruit, and cardamom or the Mule with vodka, Japanese cucumber, shiso, absinthe, and ginger. Bing breads are at the top of the menu and a great place to start. Soft bread acts as the pillow for a variety of different toppings. Eggs and smoked roe may sound questionable, but were marvelous with chives and homemade chips. Chose from others like spicy lamb, chickpeas, or caviar with cave-aged butter. The noodle portion of the menu will definitely be calling your name. Macaroni and chickpea with black truffle is similar to a Chang dish at Momofuku Nishi in New York, and equally flavorful.

Proteins are quite enticing. Black cod in paper with noodles, daikon, and chili is easy to overlook but was the best dish of the night. The fish was delicate and served with sweet potato noodles. The meat section will make you wish you had invited all your friends. Large format meats like the Whole Plate Short Rib serves 4-6 people and consists of bone-in APL style ribs with beef rice, shiso rice paper, and an assortment of sauces. Spicy Bo Ssäm is one of the dishes that Momofuku is known for and serves 6-8 with condiments. Reservations are a must. majordomo.la 127


FINE DINING New York

1

The Polo Bar Midtown

Balthazar SoHo

Arguably the most fashionable restaurant in the country (and the most difficult to get a reservation), The Polo Bar features iconic Ralph Lauren style and solid, American cuisine. From plaid pillows on saddle booths to hunter green walls with framed photos of horses, this is the place to see and be seen in Midtown. So much so that a doorman (or woman) ensures that only those with dinner reservations are allowed in. We suggest you enjoy your experience, and time, in the venue and start with a cocktail by the bar on the main level. As for the food, it’s remarkably good—especially the popovers that arrive piping hot at your table moments after you are seated. Tuna tartare—served with avocado, mustard greens, crispy shallots, and a soy ginger dressing— or a shrimp cocktail are a great way to start. Entrees range from burgers and steaks as well as fish and a fabulous Veal Milanese garnished with arugula and cherry tomatoes. The grilled Branzino is served with smashed spring peas, fava beans, and mint in a citrus vinaigrette. The dessert menu is as classic as they come—featuring staples like a brownie with ice cream and walnuts, Ralph’s coffee ice cream or old fashioned five-layer chocolate cake. Before you head out, visit the bathroom where they diffuse the famous Polo cologne. polobarralphlauren.com

A SoHo staple since Keith McNally—2010 James Beard Outstanding Restaurateur and purveyor of Minetta Tavern among other dining options—opened his doors in 1997, Balthazar is arguably one of New York’s best and most consistent restaurants. Much like République in Los Angeles, the Balth bangs out breakfast (brunch on the weekends), lunch, and dinner on a daily basis within the cozy confines of a busy, but charming, French brasserie. The menu is chock full of surefire hits you should not skip, including the escargot to steak tartare (one of New York’s finest) and the whole chicken for dinner and the banana ricotta tart for dessert. balthazarny.com

2

Balthazar Photos: Michael Grimm // Tetsu Photos: Dacia Pierson

Culture & Taste - Fine Dining

3 128

CULTURE & TASTE


1. Steak Au Poivre, served 2. Balthazar offers two sizes of their seafood tour—Le Grand and Le Balthazar 3. Richard H. Lewis Architect completed the design of the restaurant with the Equestrian Room 4. A colorful array of Mediterranean dips as a starter 5. Refreshing campari and sodas

4

Boulud Sud Upper West Side

6. Grapefruit Givré to wrap up your meal 7. Masa Takayama finishing a dish with equal parts precision and respect

The brainchild of celebrated French chef Daniel Boulud and originally opened in 2011, Boulud Sud remains one of the Upper West Side’s finest destinations for dinner. Located near Lincoln Center, the warm and inviting dining room plays host to Boulud’s tastes—from a menu that celebrates “the sun and the sea” to a wine list featuring Old World classics and hybrids from the New World—always putting an emphasis on regional flavors, fresh vegetables, seafood, citrus, and , of course, herbs. bouludsud.com

Culture & Taste - Fine Dining 5

6

Tetsu TriBeCa The newest culinary debut from acclaimed 3 Michelin Star Masa Takayama f lips the script on what diners would expect from his cuisine, emphasizing meats and skewers—a modern Japanese robatayaki. Tetsu—Japanese for “iron”—is housed within a building built in the 1960s. The restaurant is built around the robata, the traditional center place of the Japanese home, and the resulting menu is presented by cooking method: Raw, Grilled, Fried, and Sizzling to go along with the can’t miss stews, noodles, and rice dishes. Tetsu also offers diners a daily fish special and Chef Masa’s first-ever burger. tetsunyc.com CSQ SPRING 2018

7 129


Reflections on a great American leader, examining architecture’s role on public spaces, lessons from Warren Buffett, and our quarterly podcast picks

REQUIRED READING & LISTENING

Invested: How Warren Buffett and Charlie Munger Taught Me to Master My Mind, My Emotions, and My Money (with a Little Help from My Dad) Danielle Town & Phil Town HarperCollins 336 pages

The Future of Public Space: SOM Thinkers Series Allison Arieff et al.

Bobby Kennedy: A Raging Spirit Chris Matthews

Metropolis Books 144 pages

Simon & Schuster 416 pages

The Daily by The New York Times Host: Michael Barbaro

Podcasts

Culture & Taste - Required Reading

The Daily is exactly how the modern news should sound, delving into topics shaping the world in the span of 20 minutes. Regular guests give way to more in-depth analysis and enhanced discourse.

PLOT In her youth, Danielle Town was not driven to pursue finance and investing. Yet as she progressed through life, she found that she wasn’t nearly as in control of her finances, and even her life, as she thought she would be. With the help of her father – investor and bestselling author Phil Town – Danielle seeks to master the financial industrial complex. MEAT Danielle gives a detailed account of a father-daughter journey through the world of investment strategies, and in the process, Invested turns the world of investing on its head, resulting in a down-to-earth and simple outlook. TWIST Readers wishing to take control of their own lives and finances have the opportunity to test Danielle’s 12 easy-to-understand lessons, which follow the proven, gold-standard strategies that helped land Warren Buffett atop the Forbes 400.

130

CULTURE & TASTE

PLOT Through a selection of short invigorating writings by intellectual, nontraditional voices, the discourse on the impacts of varying types of public spaces is enhanced in an unconventional way. MEAT The second installment of the SOM Thinkers series is written under the guise of detective fiction. The series takes the reader on a sensory trip of navigation through Hong Kong, the shifting ecologies of national parks, and the exploration of architecture. TWIST The authors pose questions on design and architecture in an accessible way that will intrigue beyond the traditional “professional” scope. The book also highlights the possibility of future changes in the way we experience happenings in the public space.

PLOT I n th i s d e t a i l e d a n d well-researched biography Bobby Kennedy, Chris Matthews of MSNBC’s “Hardball” notes that Robert F. Kennedy grew up under immense pressure in the shadow of his father and brother, teaching us the kind of man he was and what he stood for as a result.

Planet Money : NPR Multiple hosts

MEAT Enlisting as a sailor, Bobby was able to carry over the lessons he learned in the U.S. Navy into life, effectively connecting with all manner of people from different backgrounds. Ultimately, this also influenced his career in politics, where he became known as a politician who worked for the people through his time spent spearheading his brother’s campaign for presidency. TWIST For anyone too young to remember or have experienced life in America during the reign of the Kennedys, Matthews’ book vividly recreates the scenes, illustrating the family’s impact on society.

The winner of a Peabody and an Edward R. Murrow Award, NPR’s Planet Money explains the economy with stories and surpirses.


Two Bit Circus


CONNECT. EDUCATE. INSPIRE. FALL 2018 In its 5th year, the anual CSQ Visionaries Summit has united the most successful Visionary leaders in Los Angeles for inspired conversation and connectivity around the sustainable success of the region and world. In 2018 we include New York, creating the most significant connective point for those driving the economies and communities of the countries two largest markets.

CSQ Summit

apply for access at

CSQSUMMIT.COM


134 Visionaries Awards in Innovation and Technology 138 CSQ’s NextGen Happy Hour 139 C-Suite Advisory Happy Hour 140 Montgomery Summit 142 2018 Genesis Open

The Network

Part 5

The Network - Cover Page The 2018 Genesis Open (p. 142) saw the celebrated return of a legend (Tiger Woods) as Bubba Watson became a three-time winner at The Riviera

CSQ SPRING 2018

133


VISIONARIES SERIES

HONOREES

CSQ’S 2018 VISIONARIES AWARDS IN INNOVATION & TECHNOLOGY

2018 Visionaries of the Year Jeff Stibel Founding Partner, Bryant Stibel Kobe Bryant Founding Partner, Bryant Stibel Michael Blend Co-founder & President, System1 Chuck Ursini Co-founder & CEO, System1 Jesse Draper Founder, Halogen Ventures Chris Hollod Founder & Managing Partner, Hollod Holdings

CSQ’s 2018 Visionaries Awards in Innovation & Technology were held on Tuesday, February 13, 2018. Hosted by Genesis Open at The Riviera Country Club, the event was held in the Grey Goose skybox above the 18th hole – overlooking the course, the Pacific Palisades, and the Pacific Ocean in the distance. The event was hosted and held in honor of the 2018 Class of Visionaries and NextGens.

Bill Papariella CEO, Jet Edge Kelly Perdew Co-founder & Managing General Partner, Moonshots Capital David Waxman Founding Partner, TenOneTen Ventures

The Network - Visionaries

Visionary of the Year Jeff Stibel attended and spoke on behalf of himself and his partner, Kobe Bryant, discussing the work they are doing at Bryant Stibel, the value and impact of CSQ, and his excitement about LA tech in 2018 and beyond. Also recognized and honored on stage were Michael Blend and Chuck Ursini, System1; Jesse Draper, Halogen Ventures; Chris Hollod, Hollod Holdings; Bill Papariella, Jet Edge; Kelly Perdew, Moonshots Capital; David Waxman, TenOneTen Ventures; Jonathan Zweig, AppOnboard, Inc.; and CSQ’s NextGen 10 in Innovation & Technology Sponsors were: Genesis Open, Ten Thousand Santa Monica, Latham & Watkins, Ernst & Young, and Burgess. 134

THE NETWORK

Jonathan Zweig Co-founder & CEO, AppOnboard, Inc.

ALSO HONORED CSQ’s 2018 NextGen 10 Innovation & Technology: Arteen Arabshahi, Taylor Freeman, Jane Fisher, Vanessa Dew, Jesse Genet, Jon Goss, Lauren Hayes, Jenna Kerner, Andrew Meyer, Sophia Parsa, Matt Rising, Taylor Timmer, Daina Trout, Justin Trout, Shakib Zabihian


1

2

3

The Network - Visionaries 5

4

6

1 Michael Blend 2 Kelly Perdew 3 Amee Gray, Jennifer Monir, Lisa Hillary 4 Jeff Stibel 5 Bill Papariella 6 Dave Suchanek, Chris Hollod, Bianca Vierra, Justin Trout

CSQ SPRING 2018

135


1

2

The Network - Visionaries 4

3

5

1 Osvaldo Ramos, Cara Kobzeff, Jim Wright 2 William Chun, Peter Delgrosso 3 CSQ’s 2018 NextGen 10: Innovation & Technology 4 David Waxman 5 Leonard Lanzi

136

THE NETWORK

VISIONARIES SERIES


SPONSORS AND PARTNERS Genesis Open Ten Thousand Santa Monica Latham & Watkins Ernst & Young Burgess

1

The Network - Visionaries 2

4

3

5

6

PHOTOGRAPHY Dave Suchanek 1 Matthew Seukunian, Chris Hollod 2 Andy Kleinman, Craig Cummings, Dawn and Kelly Perdew, Lauren Hayes Kleinman, Scott Kriz, Jon Kraft 3 Chuck Ursini and Michael Blend 4 Mark Stagen 5 Jonathan Zweig 6 Justin and Daina Trout

CSQ SPRING 2018

EVENT CONTACT Matthew Seukunian matthew@csq.com

137


CSQ’S NEXTGEN HAPPY HOUR January 25, 2018 The W Penthouses Hollywood, CA

1

2

It was a night filled with food, drinks, and – of course – connectivity. Bringing together the region’s brightest minds, creative talents, and impactful changemakers is the core of the CSQ mission and this happy hour was no exception. Guests got a chance to explore the $9M Vista Penthouse, sample craft cocktails, try on fine wears from Gemelli, and mingle with like-minded individuals from across industries while observing sweeping views of the Los Angeles skyline. The event was hosted at the W Residences and the sponsors and brand partners were: Tolman & Wiker, Avión, Carbonadi Vodka, Chivas Ultis, Flow, Gemelli, and Peroni.

The Network - NG Happy Hour

Sponsors & Partners Tolman & Wiker Avión Carbonadi Vodka Chivas Ultis Flow Gemelli Peroni

PHOTOGRAPHY Albert Evangelista EVENT CONTACT Matthew Seukunian matthew@csq.com

138

THE NETWORK

3

4

5

6

7

1 Arteen Arabshahi, Ryan Cummins 2 Brand Partner Chivas Ultis 3 Jenna Kerner, Taylor Timmer, Jane Fisher 4 Arteen Arabshahi, Matthew Rising 5 Taylor Freeman, Talia Fusaro, Shakib Zabihian 6 Laura Langehaug, Bryce Eddy 7 Michelle Montany, Golan and Fernanda Sassoon


CSQ’S C-SUITE ADVISORS™ HAPPY HOUR January 9, 2018 Baltaire Brentwood, Los Angeles 1 They brought together their exclusive community of the most trusted advisors to the C-level executive for a night filled with shared plates, craft cocktails, and an idea exchange among members of this community. Attendees included the most tenured and knowledgeable C-Suite Advisors™ from companies such as Intrepid Investment Bankers, Hughes Marino, UBS, and Sheppard Mullin Richter & Hampton LLP. As the evening progressed, guests enjoyed networking and discussions on LA’s current market trends between bites of Baltaire’s signature Jumbo Shrimp Cocktail, indulgent Lollipop Lamb Chops, and reserve wine pairings.

The Network - CSA Happy Hour 2

5

EVENT CONTACT events@csq.com

CSQ SPRING 2018

PHOTOGRAPHY Tim Hans

3

4 5

6

7

1 Lars Rathje, Jeff Durbin 2 Robert Dalie, Lars Rathje, Michael Bourke, Brent Ludlow, Jim Freedman 3 Dr. Amir Vokshoor, Dr. Paul Weiss 4 Aramis Hernandez 5 Jim Freedman 6 Aramis Hernandez, Robert Dalie, Dr. Amir Vokshoor 7 Michele Turturici, Jack Turturici, Jr.

139


THE MONTGOMERY SUMMIT March 7-8, 2018 Fairmont Miramar Hotel & Bungalows Santa Monica, CA

1 Organization Involved Over 130 emerging companies presented at this year’s Summit, including Acorns, C3 IoT, CrowdStrike, Eagle Genomics, Earnin, FogHorn, Forter, Genvid, Hired, Immuta, IPSY, Move Guides, Relativity Space, Signal, Signal Sciences, SparkCognition, and uBiome. The Summit also offered a series of panels and salons featuring executives from the Zillow Group, Microsoft, Salesforce, Intel, EY, Honeywell, Nasdaq Stock Exchange, PBS, California Institute of Technology, the Milken Institute, and the Keck Foundation. Notable Speakers / Presenters John Chambers, Founder & CEO, JC2 Ventures; Peggy Johnson, Executive Vice President, Microsoft; Sallie Krawcheck, Founder & CEO, Ellevest; George Kurtz, CEO & Co-Founder, CrowdStrike; Tom Siebel, CEO, C3 IoT; Sue Siegel, Chief Innovation Officer at GE & CEO of GE Ventures; John Somorjai, Executive Vice President, Salesforce; Dr. Patrick Soon-Shiong, Chairman & CEO, NantWorks; Julie Sweet, CEO — North America, Accenture; Brian Lee, Co-founder & Managing Director, BAM Ventures; Dana Settle, Founding Partner, Greycroft Ventures; Gabe Greenbaum, Partner, The Pritzker Group

The Network - Montgomery Summit 2

4

3

PHOTOGRAPHY Jake Caumeran

140

THE NETWORK

5

1 Serena Saitto, Jim Armstrong, Kara Nortman, Gabe Greenbaum, Brian Lee 2 Kristine Di Bacco, Nicole Quinn, Dana Settle, Rory O’Driscoll 3 Patrick Soon-Shiong 4 Rich Karlgaard, Julie Sweet 5 Daniele Struppa, Douglas Merrill, Patrick Quinlan, John Chambers


Boys & Girls Clubs

Make an impact on youths' lives today! For more information visit: www.bgcmla.org


GENESIS OPEN February 12-18, 2018 The Riviera Country Club, Pacific Palisades, CA

1

2

Organizations Involved The Genesis Open is an official PGA TOUR golf tournament, part of the FedExCup season. The event is operated by TGR Live and benefits TGR Foundation. Tournament Champion Bubba Watson Tournament/Event Highlights The 2018 Genesis Open marked the return of Tiger Woods playing in the event for the first time since 2006. Tiger highlighted a field of the PGA TOUR’s top stars including Dustin Johnson, Jordan Spieth, Rory McIlroy and Phil Mickelson. With record crowds and perfect Southern California weather, Bubba Watson pulled ahead down the stretch to capture his record tying third victory in this 92-year old tournament.

The Network - Genesis Open

Notable Sponsors and Partners ActivePDF, Club Car, Coca-Cola, Genesis (Title Sponsor), Grey Goose, Hexadyne, J.P. Morgan Chase & Co., Lexicon by HARMAN, PwC, Tiffany & Co., United Airlines, Vineyard Vines, William Hill Estate Winery

3

4

5

PHOTOGRAPHY JD Cuban/TGR Live EVENT CONTACT Dave Klewan, General Manager Genesis Open, 1/800.OPEN, dklewan@tgrfoundation.org

142

THE NETWORK

1 Golfers on approach at the 2nd hole 2 Dustin Johnson 3 Anxious onlookers at the 8th hole 4 2018 Genesis Open Champion Bubba Watson 5 Family friendly activities were offered throughout the weekend


OUR EXPERIENCE BRINGS YOU IN. OUR PEOPLE BRING YOU BACK. Since 1942, our accountants have counseled medium- and small-sized businesses with the best in accounting, tax and financial advisory. Today, we focus on the same goals: meeting our clients’ needs and exceeding their expectations.

Gish Seiden

Audits/Reviews/Compilations • Tax and Accounting Management Advisory • Financial Consulting • Specialty Services

Accounting for the past, planning for the future.

CONTACT US

21800 Oxnard Street, Suite 300, Woodland Hills, California, 91367 818.854.6100 | gishSEIDEN.com


EDITORIAL INDEX PEOPLE Abloh, Virgil Aizpitarte, Iñaki Ali, Moiz Allen, Woody Andres, Jose Barbaro, Michael Barber, Dan Barbour, Haley Beard, James Becker, Rainer Bernstein, Michelle Boulud, Daniel Buffett, Warren Burke, Michael Cahill, Kathleen Capalad, Pamela Captain, Tom Chang, David Cho, Y.H. Cisneros, Henry Clayton, Jay Cohen, Charles S. Cohen, Clo Cohen, Sherman Coppel, Ernesto Costigan, Bill Cruz, Ricardo Santa Curtiss, James Curtiss, Jeffrey Davis, Ben Dell, Michael DeVito, Danny DeWold, Christopher Dominguez, Dorene C. Dominguez, H. Frank Dorsey, Jack Dotolo, Vinny Edson, John Escalada, Borja Fecht, Sarah Ford, Ben Ford, Harrison Garcetti, Eric Gates, Bill Goin, Suzanne Grundfest, Joseph Hanyecz, Laszlo Hawthorne, Christopher Heinze, Daniel Hiscoe, Les Horsman, Patrick Hughes, Tucker Hymanson, Sarah Isaacs, Noah James, Richard Johnson, Kevin Kamen, Dean L. Kantor, Evan Kattan, Huda Katz, Daryl Kelleher, Herb Kennedy, Robert F. Koch, Ed Kohler, David Kramer, Sara Kroenke, Stan Lambert, Liz Lanier, Jason Lefebvre, Ludo Lenin, Vladimir Madoff, Bernie Mangieri, Anthony Martin, Albert C. Sr. Martin, Christopher C. Martin, David

144

24 124 101 64 123 130 125 55 124 126 122 129 110, 130 24 50 50 26 127 57 55 111 64 67 65 84 50 85 83 83 130 38 113 130 54 54 110 122 106 86 130 123 123 39 110 123 111 110 39 122 60 51 51 122 52 67 55 61 52 101 38 73 130 42 120 122 39 83 130 123 70 109 125 56 56 56

Matthews, Chris McNally, Keith Meadows, John Mehula, Guy Mendez, Pepe Mieville, China Mindlin, Bradley H. Morris, Luke Nakamoto, Satoshi Nijhuis, Michelle Nikias, Max Oyedele, Carissa Shrock Pacino, Al Pickens, T. Boone Plueger, John Puglisi, Christian Ralph, Tamara Rappaport, Kurt Redzepi, Rene Roach, Ray Russo, Michael Scialla, Paul Shook, Jon Singer, Paul Six, Bob Stone, Jeremiah Takayama, Masa Taschen, Benedikt Thiel, Peter Thomas, Mark Anthony Thompson, Miles Town, Danielle Town, Phil Trigère, Pauline Twain, Mark Udvar-Házy, Christine Udvar-Házy, Steven F. Ulate, Gerardo Vizcaino, Sebastian Von Hauske Valtierra, Fabián Wells, Pete West, Kanye White, Steve Whitener, Jonathan Wickersham, Seth

130 128 52 55 22 130 32 52 110 130 57 53 116 78 73 124 25 38 125 122 25 58 122 110 73 124 129 122 110 53 122 130 130 71 66 70 70 83 83 124 125 24 32 122 39

Avo 22 Bahia Balandra 83 Bechtel 55 BLADE 26 BMW 29 Boeing 72 Bombardier 26 Bottega Veneta 25 Boulud Sud 129 Bowery Valuation 52 Breguet 33 British Airways 71 Brunch & Budget 50 Bunkhouse Group 83 California Science Center 118 Carmelized Productions 123 Cartier 32 Casio 32 CBRE 44 Cessna 26 Chadwick 123 Chemical Bank 65 CIT Bank 55 Citibank 43, 65 Cohen Brothers Realty Corp. 64 Cohen Media Channel 67 Cohen Media Group 66 Cohibo 22 CNET 84 Continental Airlines 73 Contra 124 Contra Group 124 Cookies for Kids’ Cancer 124 Credit Suisse 43 CREXi 52 Cushman & Wakefield 50 Davidoff 22 Dell Technologies 38 Deloitte 26 Delos 45, 58 Delta 72, 122 Douglas Aircraft Company 71 Dynamiq 30 Edible Schoolyard NYC 124 Edmonton Oilers 38 Eleven Madison Park 126 ESPN 39 Extell 38 Fendi 24 Ferrari 28 Flexjet 26 Flying Flipper 30 Ford’s Filling Station 123 Gensler 44, 45 Giuliano Mazzuoli 32 Goldman Sachs 32, 42 Guggenheim Partners 50 Gulfstream 73 Harrys of London 67 HBA 40 Horsman Holdings LLC 51 Hublot 32 Hughes Marino 51 Inko Nito 126 ILFC 72 Int’l WELL Building Institute 59 Jaguar 29 JFK International Airport 71 Joint Venture Restaurant Group 123 Jon & Vinny’s 123 KB Homes 55 Kennedy Wilson 52 Kent & Curwen 24 Kohler Company 120 Korean Airlines 57 LAX 54, 72 Les Tres Virgenes 83

Edit Index

COMPANIES AC Martin AECOM Aeroméxico AIG Air France Air Lease Corporation Air New Zealand Airbus All Clad American Airlines American Express Angelo Gordon & Co. Animal Apple Astro Air Audemar Piguet Aureole

56 54 72 73 71 73 71 72 122 72 42 32 122 32 71 32 66

Lexus 122 Lockheed Martin 71 Loewe 25 Los Angeles Chargers 39 Los Angeles Rams 39 Louis Vuitton 24 Majordōmo 127 Mandarina Resort & Residences 85 Mario’s Peruvian 122 Marmol Radziner 120 McLaren 33 Merchant Ivory 67 MerCruiser 30 Mesa Vista Ranch 78 Mezzanine 126 Michelman & Robinson 32 Minetta Tavern 128 MLB 61 Momofuku 127 Montecristo 22 Moore Ruble Yudell Architects 53 Morgan Stanley 43 MTN 122 NBA 55 Neiman Marcus 66 NetJets 26 NoMad 126 NYCEDC 42, 53 O’Melveny & Meyers 32 One&Only 85 Oro Capital Advisors 32 Pacific Design Center 64 Patek Philippe 32 Paul Smith 25 Petit Trois 123 PGA 84 Playa de La Paz 83 Porsche 28 Property Group Partners 45 Ralph Lauren 128 Red Design 30 Regus 38 Richard Mille 33 RLH Properties 85 Rolex 32 Romanoff Equities 45 Sacramento Kings 55 Savile Row 67 Scott Mitchell 38 Segway 61 Shawmut Design & Construction 60 SkyWest, Inc. 72 SL Green 43 Son of a Gun 123 Southwest Airlines 73 Spike Aerospace 26 Studio F.A. Porsche 30 StudioCanal 67 Swatch 32 Sydell Group 77, 126 Tetsu 129 The Food Network 123 The Lobby 126 The NoMad Hotel Los Angeles 77 The Pierre Hotel 76 The Polo Bar 128 The Smithsonian 73 Tom Ford 25 Trois Mec 123 Una Pizza Napoletana 124 United Airlines 72 United California Bank 72 Vanir Group of Companies 54 Vans 122 Volvo 30 Wildair 124 Zenith 33

Greg Kinnear, Rob Lowe, U.S. Astronauts, a


ADVERTISER INDEX Angel Flight West endeavorawards.org

Commercial Bank of California cbcal.com

gish SEIDEN LLP gishseiden.com

TravelStore travelstore.com

Boys & Girls Clubs of Metro LA bgcmla.org

Conscious Fuel consciousfuel.com

Hughes Marino hughesmarino.com

Two Bit Circus Foundation twobitcircus.org

Blade flyblade.com

Corporate Strategies corpstrat.com

Karma Automotive karmaautomotive.com

White House Historical Association whitehousehistory.org

Burgess Yachts burgessyachts.com

Cross Campus crosscamp.us

Officine Gullo officinegullo.com/us

Carbonadi houseofcarbonadi.com

Equity Advisors equityadvisorsolutions.com

Punta Mita Properties puntamita.com

Clay Lacy Aviation claylacy.com

Eton Santa Monica etonshirts.com

The Resort at Pelican Hill pelicanhill.com

CohnReznick LLP cohnreznick.com

EY ey.com

SoCal IP Law Group LLP socalip.com

Ad Index

Host Committee Mark Wolper, Co-Chair Randy Sherman, Co-Chair

Saturday, May 12, 2018 Los Angeles

UNDER THE SPACE SHUTTLE ENDEAVOUR AT THE CALIFORNIA SCIENCE CENTER 6:30pm Cocktails & Silent Auction Dinner, Live Auction & Program - Dinner & drinks by Wolfgang Puck -

endeavorawards.org

and more

Angel Flight.indd 1 CSQ SPRING 2018

Bill Ayer Richard Beattie Matt Brown Scott Cutshall Justin Demko Amelia Earhart Mike Herman Shaunta Hyde Brian Kirkdoffer Dale Klapmeier Clay Lacy Rhonda Larance Monica Lucas Grant Norwitz Scott Parazynski Tom Poberezny Brad Tilden Matt Widdows Geoff Wood

4/5/18 11:06 PM

145


C-SUITE QUOTED 62

56

68

If you work hard, and stay focused, and you live the kind of life you think you should be living—which means in balance, family, work, all of that—you’re able to really do all of the things you thought about doing.

The discussion always ran through our family around the dinner table about how to make the community better, how to plan for very long term, how to understand the needs of the future, and what our plans should be today.

If I can have children have that same feeling I had when I was a six-year-old at the airshow in a communist country, that to me is worthwhile.

Charles S. Cohen

Christopher C. Martin

Steven F. Udvar-Házy

54

58

62

I’m about discipline, diligence, and success. Not about gambling ... [Vanir] is something that’s been bestowed to me that I want to take really good care of.

The U.S. spends 18 percent of its GDP on healthcare. When I think of the prospect of using real estate to deliver passive prevention ... we have a real shot at influencing change on a societal level.

Just like in any business, to be successful you need to find a niche, and you need to figure out how to be very good in that niche.

Dorene C. Dominguez

Paul Scialla

Charles S. Cohen

68

122

60

We’re growing, but if growth happens too quickly, you can’t manage it. There’s a size at which the culture changes. What works for 90 or 100 people won’t necessarily work for bigger companies.

We knew who we were but not how to extract it. I think of it like ... we knew how to play the instruments we just didn’t know what the album would sound like.

People ask me, ‘Where did you get your MBA?’ The flippant answer is, I got it at Shawmut, growing $100M to $1.2B in revenue over 20 years.

Steven F. Udvar-Házy

Vinny Dotolo

Les Hiscoe

146

C Suite Quoted


Carbonadi

THE CARBONADI DISTINCTION Rare filtered artistry for ultra smooth quality

WWW.HOUSEOFCARBONADI.COM

INDULGE RESPONSIBLY

@HOUSEOFCARBONADI


Honoring the entrepreneurs who break the mold. Bold leaders are courageous, inventive and determined. Hats off to the Entrepreneur Of The YearÂŽ New York Award finalists. Celebrate their outstanding achievements at our 2018 awards gala.

EY

June 12, 2018 | Marriott Marquis, New York, NY For more information or to reserve your seat at the gala, contact Danielle Duchamp at danielle.duchamp@ey.com. Follow @EY_EOYUS for the latest news and updates and join the conversation using #EOYNY.

Founded and produced by

Platinum sponsors

Gold sponsors

Silver sponsors

Š 2018 Ernst & Young LLP. All Rights Reserved. ED None

Nationally Sponsored by

C-Suite Quarterly - New York  
C-Suite Quarterly - New York  

CSQ Q2 2018 - Real Estate & Finance

Advertisement