C-Suite Quarterly by CSQ Magazine

VISIONARIES

Alan Fuerstman Michael Fuerstman Pamela Liebman Christopher Rising Nelson Rising

NEXTGEN 10

This year’s short list of the future in real estate and finance C-SUITE QUARTERLY LOS ANGELES | NEW YORK REAL ESTATE & FINANCE Q2 2019

JEFF BEZOS: A PROFILE IN FAILURE By Jeff Stibel, Bryant Stibel

Visionary of the Year

DON PEEBLES

As the founder, chairman, and CEO of New York–based Peebles Corp., he is one of the wealthiest developers in the country. Now, Peebles is stepping into a brighter spotlight with his largest project yet in a land that continues to push the boundaries of development: Los Angeles

Cover

PLUS: New resort developments breaking ground across the globe; Discovery Land Co.’s latest beach club; the best spots along the California coast; touring Napa’s best wineries; your golf guide to Los Cabos Chef Jean-Georges shares a culinary journey through Los Angeles and New York

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Features Q2 2019: Vol. 11 No. 2 Los Angeles and New York City Real Estate & Finance

VISIONARY OF THE YEAR

OP-ED

VISIONARIES Los Angeles and New York

42 Jeff Bezos: A Profile in Failure Even one of the wealthiest people in the world has made mistakes—the key is how he learned from them

58 For 35 years—19 of them as president—PAMELA LIEBMAN has been at the The Corcoran Group, one of the leading residential brokerage firms in New York City, pulling in more than $21B in sales annually. Here she proves that staying put isn’t the same as standing still

By Jeff Stibel, Co-Founder and Partner, Bryant Stibel

66 60 56

TOC - Visionaries

Celebrating its 16th anniversary this year, Montage Laguna Beach marked a new era of luxury hotels when it debuted in 2003. Since 2017, its sister brand, Pendry, is ushering in luxury for the next generation. The father-and-son team behind the Montage and Pendry hotel brands, ALAN AND MICHAEL FUERSTMAN, discuss building brands and family bonds

Ascending from Coast to Coast: The steady rise of real estate mogul DON PEEBLES. As the founder, chairman, and CEO of New York–based Peebles Corp., he is one of the wealthiest real estate developers in the United States, with Forbes

estimating his net worth in excess of $700M. But the quiet force and longtime D.C. power player is now stepping into a brighter spotlight with his largest project yet in a land where many come to make it big: Los Angeles.

With a $300M commitment to invest in Los Angeles and eight other Western U.S. markets, NELSON AND CHRIS RISING of Rising Realty Partners see a golden opportunity for sustainability. The father-andson team discuss career paths, technology, and Los Angeles’ status as a hotbed of interconnected innovation

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Departments

DESIRABLES 16 Tech and Gadgets Tech products built to go along on your summer adventures, whether halfway around the world or in your own backyard 17 Cigars Through the traditions of Cuba, the uniqueness of the tobacco, and the craftsmanship of artisans, the cigar industry allows people to express themselves as subtly or brashly as they desire 18 Wine President and principal of Wally’s Wine & Spirits, Christian Navarro, shares his recent discoveries and insights after an early summer trip to the Napa Valley 20 Spirits The CEO of a new spirits company proves that a journey to success starts with honesty and passion … and a story worth telling 22 Style Looks for summers spent in the Hamptons and Malibu 24

REAL ESTATE & FINANCE 24 Air Already a leader in aviation, Bombardier announces a slew of enhancements to its extraordinary fleet. Plus: Aman’s new private jet service and inside The Private Suite at LAX 26 Land A shift in business strategy and a focus on younger generations of high-net-worth consumers has Rolls-Royce poised for even greater prosperity, and on the brink of the next-generation Corvette 2020, we look back at America’s favorite two-seater

38 Visionary Alumni in Real Estate and Finance

30 Furnishings With 30 years in business, finefurniture maker Frank Pollaro reflects on making wooden pieces for everyone from Larry Ellison and David Geffen to Jerry Seinfeld and the Faena Hotel in Miami Beach 32 Private Club Report Beverly Hills’ newest exclusive membership club includes access to the city’s hottest rooftop pool, and now in its second season, Discovery Land Company’s only property with members-only accommodations establishes itself as the spot to be in the Hamptons

40 Of Note Briefings, Updates, and Analysis 44 Innovative Office Joan Behnke & Associates and Belzberg Architects design the Los Angeles offices of The Gores Group, while Tony Ingrao and SOM partner on the offices of Georgetown Company in New York 46 Grand New Time Following the opening of New York’s Hudson Yards development, Related looks toward Downtown Los Angeles

TOC - Desirables

28 Water Three top charter companies divulge their top itineraries and most exclusive yachts to enjoy the summer season in the Med

34 Buying Time Exploring the history and beauty of some of the most iconic dive watches

48 Breaking Ground New resort developments launching around the world 50 NextGen10 Meet this year’s class of forward-thinking founders in real estate and finance— all under the age of 40

In Every Issue 08 10 12 84 111 120 122

Masthead Founder’s Note Contributors C-Suite Advisors™ Index The Network Advertiser Directory C-Suite Quoted

This edition’s lineup of C-Suite Advisors™ highlight how

C-SUITE ADVISORS™

DESTINATIONS

86 A New Opportunity for Investors Howard Grobstein Grobstein Teeple LLP

74 Meetings and Retreats This luxury dude ranch offers an array of unconventional meeting spaces and activities

88 Raise Profit Now and Protect Yourself for Future Downturn Joe Fox Vroozi 90 Not Just an Exit, A Trans formative Partnership Jim Freedman Intrepid Investment Bankers, a subsidiary of MUFG Union Bank

76 Travel CA A look at what’s new along the California coast 78 Travel NY Summer brings a new crop of must-visit hotels, boutiques, and restaurants to the Eastern Seaboard

92 Demystifying Opportunity Zones Robert Dalie The Summa Group of Oppenheimer & Co., Inc. 94 PreTransaction Planning Ryan Bristol J.P.Morgan Private Bank

103 CULTURE & TASTE 80 Golf Getaway Discover the charm of southern Baja at Chileno Bay—plus five courses to play in Cabo right now and a new VIP experience at one of golf’s most anticipated tournaments 83 Health The CEO of Canyon Ranch discusses how she brings her diverse background to the $4.2 trillion wellness industry

TOC - CSA 78

104 Exhibits and performances for this season in Los Angeles and New York 106 Proprietor’s Profile Dining around Los Angeles and New York with Chef Jean-Georges Vongerichten 108 NY Social Events Live like a Hamptons local this summer 109 Required Reading and Viewing IMI Living’s founding partner and CEO Mike Collins shares the media that impact and entertain him 110 Social Responsibility A behind-the-scenes look at the Rolex Awards for Enterprise

96 Cannabis Real Estate Lease and Risk Management Considerations Mark Levinson Thompson Coburn LLP 98 Adversity Lisa Meyer Meyer, Olson, Lowy & Meyers LLP

CSQ Q2 2019

On the Cover Don Peebles Photo Noah Stone Location Waldorf Astoria Beverly Hills C-SUITE QUARTERLY

CSQ.COM

Founder and Publisher David L. Wurth

C-SUITE ADVISORS™

ADVERTISING AND MARKETING

INQUIRIES

Elite C-Suite Advisors Ryan Bristol Robert Dalie Joe Fox Jim Freedman Howard Grobstein William Mark Levinson Lisa Meyer

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Copy Editor Dora Dalton Editorial Intern James Faris Contributors Brent Butterworth Ryan Byers Jason Dean Carole Dixon Brittany Fuisz Suprina Hudson Rohit Jaggi Norah Lawlor Carolyn Meers Heidi Mitchell Christian Navarro Degen Pener Matt Pressberg Jeff Stibel Shaun Tolson David Weiss Illustration Maxim Zudilkin

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FOUNDER’S NOTE

So much can change in a year

David L. Wurth (center) with Visionaries Chris Rising (left) and Nelson Rising (right). Their profile begins on page 56.

Founder’s Note

Just 12 months ago, and after a decade focusing solely on Greater in New York City, Washington D.C., and Miami, and is now makLos Angeles, CSQ was entering an expansion into New York City— ing his mark in the Los Angeles market with his $1.6B Angels the largest city in the world’s most powerful economy. Much has Landing project. Don epitomizes the leadership qualities CSQ been packed into the past year, including two New York Visionary admires, as a humanitarian force and an innovator in his field. Awards events: one at Nasdaq and another at the Christie’s headFrom the 42nd-floor terrace at One Cal Plaza—developed by quarters. Two more events were in Los Angeles: one at the Metrop- two of our other Visionaries, Nelson and Chris Rising—we can olis in downtown and the other, our NextGen Founders Summit, see the future of Downtown Los Angeles. The terrace is not only at Jam City’s new headquarters in Culver City. These events have the site of our Q2 event, but is the perfect vantage point for the been instrumental in connecting business leaders and furthering early phases of Peebles’ Angels Landing development. CSQ’s mission to connect decision makers and entrepreneurs at the In addition to the compelling stories of leading entrepreneurs highest level. Through CSQ’s award-winning business media and and minds across industry, these pages contain invaluable inforlifestyle platform, we are creating economic and social impact— mation from our C-Suite Advisors™, the brightest minds in investnow in the two largest markets in the United States. ment banking, finance, accounting, consulting, and law. Learn to Since the New York launch, we’ve honored another select “Protect Yourself for Future Downturn” (page 88) and read about group of billionaire visionaries, and some of the world’s most no- “Pre-Transaction Planning” (page 94). table, forward-thinking business moguls. These leaders are changAs always, I’m excited to share the stories of those shaping the ing the world through their vision and passion. Brian Grazer is an future through the CSQ platform. We are thankful for our vibrant, Academy Award–winning producer and entertainment industry growing community of loyal readers and thought leaders on both titan; Dr. Gary Michaelson is applying his resources and intellect coasts, and look forward to what many more years of influence in to change lives; Laurie Tisch is making an incredible impact on New York and Los Angeles will bring. underserved New Yorkers through her $100M philanthropy fund; Payal Kadakia is a leader in the health and wellness sector with her $500M platform, ClassPass; and Chris DeWolfe is making waves with his globally recognized mobile games. David L. Wurth Joining them now is Don Peebles Jr., one of the most success- Founder & Publisher ful real estate developers in the country. He’s amassed projects david@csq.com

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Contributors

CAROLE DIXON was born in Southern California and is currently editor of West Hollywood Lifestyle Magazine. Her adventures have been documented in publications such as Wallpaper, Architectural Digest, Modern Luxury, Travel + Leisure, and AFAR. She frequently reviews Michelin-starred restaurants and chefs, resorts, wine country regions, spas, wellness institutions, interior designers, artists, and architects. Summer plans: I’ll be sticking close to home visiting new resorts in Cabo and wineries in Napa—and trying to find time to clean out my closets and make room for more treasures.

Proprietor’s Profile: Jean-Georges Vongerichten, p. 112.

DEGEN PENER is a contributing editor for culture at The Hollywood Reporter. He oversees the publication’s watch coverage and travels to Switzerland twice a year to cover the timepiece industry’s trade shows. He is also editorial director of DTLA Book, a guidebook to Downtown Los Angeles, as well as a freelance writer for publications such as Los Angeles Magazine, Santa Barbara Magazine, C Magazine, and LA Conﬁdential. He is also former editor in chief of Angeleno. Summer plans: I’m hoping to make time to hand-pollinate our cherimoya tree. It makes the most delicious fruit, but it only grows a lot if you help it by transferring pollen with a paint brush from flower to flower.

Summer Time, p. 36

CAROLYN MEERS served as associate editor at Robb Report and Muse by Robb Report, where she covered various facets of the luxury landscape—including jewelry, design, travel, art, culture, and health and wellness. She is also a contributor to C Magazine and The Knot. Summer plans: Tahoe! I grew up going to lakes in Northern California, so while I love SoCal and the ocean, there’s something really appealing about a calm, empty dock and a day spent kayaking around to explore different coves and beaches.

Grand New Time, p. 46 The Resort at Paws Up, p. 76 Rolex Awards, p. 116

Contributors

MATT PRESSBERG is a senior advisor at Vectis Strategies. He was previously managing editor of the Los Angeles Business Journal, a business reporter at The Information and The Wrap, and the Los Angeles correspondent for the International Business Times. He has covered finance, real estate, infrastructure, the business of Hollywood, China/US economic relations, and the emergence of new digital-first players. Prior to his journalism career, he was a private equity analyst in Los Angeles and Las Vegas.

HEIDI MITCHELL has been a journalist and editor for more than 20 years, contributing to publications such as the New

York Times, Vogue, Fast Company, Departures, the New York Post, and Surface. She is a special correspondent for Travel + Leisure, where she worked as an

editor for six years, and is a columnist for the Wall Street Journal, penning “The Burning Question” column for the past seven years. Her last desk job was at Town & Country Travel, where she served as editor in chief. She splits her time between Chicago, Connecticut, and United Airlines. Summer plans: When not by the pool in Greenwich, I will be road-tripping in California, touring Moorish architecture in southern Spain, camping in Yellowstone, and living car-free in Michigan’s Upper Peninsula. High-low, baby. Summer Rein, p. 80

SHAUN TOLSON has extensively covered the luxury lifestyle as a magazine journalist for more than a decade. He’s a native New Englander who graduated from Boston College, passionately supports all of the region’s professional sports teams—especially the Patriots—and calls Rhode Island home. His work regularly appears in publications such as Luxury, Robb Report, Elite Traveler, Private Clubs, and Ocean Home.

Summer plans: Barbecuing a lot once the weather gets nice.

Summer plans: I’m going to hike the Crawford Path, a 15-mile, round-trip trek that will bring me to the summit of five mountains in the Presidential Range of the Northern Appalachians, including Mount Washington.

Don Peebles: Ascending from Coast to Coast, p. 64

Spirited Discussions, p. 22 Driven to Succeed, p. 28 Sea and Be Seen, p. 82

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16 Tech and Gadgets 17 Cigars 18 Wine 20 Spirits 22 Style 24 Air 26 Land 28 Water 30 Furnishings 32 Private Clubs 34 Watches

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Desirables

Part 1

Desirables - Cover Page

CSQ Q2 2019

TECH & GADGETS

Tough Tech to Go Tech products built to go along on your summer adventures, whether halfway around the world or in your own backyard.

ULTIMATE EARS WONDERBOOM 2 A new and much bigger-sounding version of one of the toughest outdoor Bluetooth speakers you can buy. Splash, sand, sludge—it holds up. It even floats! This newer version has an “outdoor boost” for even more sound and offers 13 hours of playtime on a single charge. $100

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By Brent Butterworth

BEATS POWERBEATS PRO With earhooks to keep them secure when you’re moving fast, these wireless earphones are perfect for any sport—or working extra hard on your summer body. Sweat and water resistant, they provide up to nine hours of listening time. $250

beatsbydre.com

BOSE FRAMES These sunglasses let you leave your speakers and headphones at home. Bose sound with Bluetooth is built right into the temples—streamlined and subtle. Available in square and circular frames, with optional mirrored color lenses.

Desirables - Tech and Gadgets $200

bose.com

RING SMART LIGHTING Feel safe spending more time outdoors this summer. These smart lights from the popular security doorbell maker illuminate when you come near and can turn on a security camera when they sense motion. From $25

shop.ring.com

RUNTOPIA REACH These smart running shoes not only track your mileage, they sense your running style and give tips on getting better. Plus, the impact cushion, ergonomic arch support, shock-absorbing buffer, and ultralight foam make the shoes feel as great as they perform. $69

landing.runtopia.net

DESIRABLES

CIGARS

Smoking Fun

Through the traditions of Cuba, the uniqueness of the tobacco, and the craftsmanship of artisans, the cigar industry allows people to express themselves as subtly or brashly as they desire. By David Weiss

BOLIVAR LIBERTADOR Cuba

habanos.com

This imposing cigar has become one of Cuba’s most sought-after limited series since its debut in 2013. Made exclusively for La Casa del Habano shops across the world, the Bolivar Libertador is a dream of sweet earthiness, leather, and warm cooking spices wrapped in silky smooth lines of smoke. However, don’t mistake its elegance for weakness; Bolivars still pack plenty of power, making it a cigar you are unlikely to forget.

Size 6 1/2 x 54 mm Wrapper Cuba Binder Cuba Filler Cuba Price $35

DANIEL MARSHALL DM2 GOLD TORPEDO Dominican Republic

danielmarshall.com

Covered from cap to foot in shimmering 24-karat gold, the Daniel Marshall Gold Torpedo definitely makes a statement. Marshall is primarily known for his exemplary humidors and that artistry is on full display with the sophisticated design of this cigar. Last year, Marshall began producing “Art” versions of the Gold Torpedo (pictured here) that display hand-painted motifs on the gold leaf. Whether you smoke them or place them on display, they are a sight to behold.

Size 6 x 54 mm Wrapper Five-year Nicaraguan Habano Binder Nicaragua Filler Nicaragua Price $295

EL SEPTIMO Costa Rica

el-septimo.ch

Costa Rican tobacco is a rarity in the cigar industry and an underutilized one at that. El Septimo cigars use that to their great advantage by acquiring bales upon bales of the finest aged Costa Rican tobacco and turning it into super-premium gems. El Septimos wear incredibly oily dark wrappers and produce delectable flavors of spice, rich wood, and aromatic herbs. They are as complex as they are rare, alluring, and unique.

Size 5 3/4 x 54 mm Wrapper Costa Rica Binder Costa Rica Filler Costa Rica Price $30

LE GRAND S.T. DUPONT LIGHTER France

st-dupont.com

With its Le Grand series of lighters, luxury French accessories maker S.T. Dupont has given its iconic Ligne 2 a major performance upgrade: two flame settings. The Le Grand’s perfectly fitted cap flips open with the hallmark Dupont ping, a simple turn of the wheel ignites an impressive soft flame, and a slight raising of the wheel transforms that soft flame into a powerfully accurate blue torch. Available in a wide variety finishes, the Le Grand is the most stunning combination flame lighter on the market today and truly the best you can buy.

Price From $1,065

Desirables - Cigar

CSQ Q2 2019

Occidental

As president and principal at Wally’s Wine & Spirits (wallywine.com), Christian Navarro is constantly in touch with top wine makers around the globe. Here, he shares his recent discoveries and insights after an early summer trip to the Napa Valley.

Northern Exposure

Every year I journey to Napa and Sonoma to meet with and discover what I feel are the greatest wine estates in America. For weeks in June, I tramp through the north counties of California turning over every stone, visiting dozens of properties, and talking to hundreds of wine folk to bring what I feel is the very best to the world. This year, seven estates stand out above all the others. Here is what I discovered.

SONOMA

NAPA

WINE

Desirables - Wine

Freeman (New) Few have heard of this brand, but once you taste the wines, you’ll never forget it. Driving up to the property, it’s easy to get lost, as it’s in a residential neighborhood on the outskirts of town. Once through the gate though, you see a true micro-winery complete with caves. It all seems odd until they start pulling corks, then the only thing you are thinking about is this amazingly perfumed balanced Pinot Noir. freemanwinery.com Kistler (Old) This may seem like an obvious choice because of its success, but what Jason Kesner is doing is raising the bar for top-quality Burgundy varietals. He is fine-tuning through natural techniques, and has incredible discipline walking the vineyards every day, creating through passion one of the best Chardonnay and Pinot properties in the world.

kistlervineyards.com

DESIRABLES

Marciano Estate (New) Morgan Maurèze, who helms this 10-acre jewel and previously worked at Screaming Eagle, Château La Mission Haut-Brion, Dalla Valle, and Domaine del la Romanée-Conti, to name a few, is quietly crafting some of the most exciting and delicious Cabernet Sauvignon wines of the Napa Valley. These wines over time will be held in the light with all the greats.

marcianoestate.com

Realm (New) I spent almost an entire day kicking dirt and talking philosophy while tasting wines with proprietor Benoit Touquette, who feels and sees Napa like no one else. He understands the history, he lives in the present, but he dreams and works for the future. He is a renaissance man who truly thinks outside the box and is the future of the Napa Valley. He makes wines of purity, a sense of place, and a depth not seen anywhere else in the valley. Keep your eye on this one; it’s special.

Screaming Eagle (Old) This winery is widely considered one of California’s greats, and after spending the day in the vineyard with winemaker Nick Gislason, some of the elements you don’t see or taste were illuminated. We talked about how they farm, and how they grow, and how everything that they do to care for their land, vine by vine, as if it were a family member, results in them creating the very best.

screamingeagle.com

realmcellars.com

Shafer (Old) Always a crowd-pleaser and always high quality, this vineyard opened my eyes to the magic of the property. The estate is located in the Stags Leap region, a fabulous place to grow Cabernet Sauvignon, and it is on a beautiful spot perfectly situated on a west-facing hillside just off the Silverado Trail. After tasting Doug Shafer’s Hillside Select, it reminded me that the old guys are still sometimes the best.

shafervineyards.com

Shafer

Occidental (New) You can tell the moment you pull up to this incredible, hilltop minimalist estate that there’s something special here. The owner, Steve Kistler, is a sort of quiet mad scientist with a special aura that radiates creativity. When we taste the wine in his modern tasting room that overlooks the vineyards and across the valley, he rarely mentions the wines, but mentions the purity of the grapes and the specialness of the soils. The results are some of the finest examples of modern Pinot Noir I have seen in years. occidentalwines.com

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SPIRITS

Made in Mexico The CEO of a new spirits company proves that a journey to success starts with honesty and passion… and a story worth telling. By Shaun Tolson

Almost a decade ago, Micah McFarlane— then an entertainment entrepreneur with an acumen for creating bands, producing and selling records, and managing musical artists on tour—found himself in southern Mexico sipping tequila and thinking like a businessman. He was there to learn more about Mexico’s most famous export and help a friend finalize a business plan for his burgeoning tequila company. Along the way, McFarlane recalls being “bit by this insatia ble need to find out more about tequila and agave spirits.” Two years later, McFarlane was back in Mexico, this time in the state of Morelos, on his second visit with a new business partner. He came ready to learn all he could about a unique blue agave–based spirit, a marriage of techniques used to create both tequi la and mescal. It was essentially a village’s moonshine—a spirit made to be enjoyed by the region’s farmers and distillers—but McFarlane recognized its uniqueness, not to mention its exceptional quality, and knew there was a market for it in the United States. “I believe in storytelling, and this was something totally new,” he says. “If you have a great story, especially an authentic and unique story, it will resonate.” McFarlane likens the phase that follo wed—bringing home samples of the spirit for friends, bartenders, and sommeliers— to producing music, where he would play demo CDs in his car for friends, always ask ing: “What do you think?” (In his previous career, he was a tour manager for acts such as Cyndi Lauper, Michael McDonald, Blondie, and Babyface.)

The liquid that McFarlane’s spirits brand, Revel, has brought to market—named Avila after the village’s master distiller who creates it—is nothing short of revelatory. The blanco ($55) delivers the bright, crisp, and vegetal notes of Weber blue agave in a smooth pack age devoid of the spice that often sneaks into most blanco tequilas. The reposado ($75) in troduces subtle hints of vanilla thanks to its yearlong maturation in American white oak; and the añejo ($150) is a twoyear homage to French oak, one that blends the smoky char acteristics of a mescal with the rich caramel and toffee flavors of a wellmatured tequila. Although all three expressions are ex ceptional, McFarlane is faced with the challenge of introducing the world not just to a new spirit brand, but to an entirely un known spirit category. While the obstacles are many, he is embracing the challenge. Revel Avila is currently available in California, New York, and Minnesota (McFarlane’s home state), and distribution will expand to cover more than 20 percent of the country within the next year. Ultimately, the 60yearold executive is relying on his experiences as an enter tainment entrepreneur—after all, business is business, he says—and he’s letting his enthu siasm for the product and its creation steer his conversations with prospective investors and distributors, just as he once promoted the music and bands that he managed. “Once they see that passion—and if that story can resonate enough times—it will drive people to buy your product because you’re selling yourself,” he explains. “You’re selling your truth.” revelspirits.com

Desirables - Spirit

DESIRABLES

Baltaire

Whether you’re heading straight from the surf and into a beachfront barbecue in Malibu or a more elegant evening at a home in the Hamptons, here are your summer looks to help get you there with ease.

STYLE

The Great Outdoors

By Samantha Brooks

MALIBU MEN’S

WOMEN’S 2.

1. 2.

Desirables - Style 4.

1. JOHN ELLIOTT 2. OLIVER PEOPLES 3. JACQUEMUS 4. ACNE 5. REESE COOPER 6. JOHN ELLIOTT

DESIRABLES

$358 $395 $115 $380 $75 $428

1. SENSEI STUDIO $198 2. ISABEL MARANT $915 3. PRADA $400 4. GEORGIA ALICE $395 5. SAINT LAURENT $895 6. BOTTEGA VENETA $2,400

Photo Credit: Leon Photography

In June, Revolve, the 16-year-old e-commerce site for everything on-trend, completed a $244M IPO. Here, we’ve partnered with the powerhouse brand’s luxury division, Forward, to curate looks to take you straight though the end of summer and into early fall.

HAMPTONS MEN’S

WOMEN’S 1.

Desirables - Style 4.

5. 5. 4. 6.

1. THOM BROWNE 2. RAF SIMONS 3. THOM BROWNE 4. BURBERRY 5. GARRETT LEIGHT 6. ADIDAS

CSQ Q2 2019

$590 $493 $170 $390 $365 $80

1. BARTON PERREIRA $510 2. FENDI $590 3. HERMÈS $4,500 4. SOLID & STRIPED $79 5. SOLID & STRIPED $79 6. VALENTINO $995

7. BURBERRY 8. LOEWE 9. RE/DONE

$350 $3,600 $215

AIR

Upgrade List

The new Bombardier 6500 can carry up to 17 passengers in a 43-foot cabin

By Rohit Jaggi

Already a leader in aviation, Bombardier announces a slew of enhancements to its extraordinary fleet.

Best of the West By Samantha Brooks

Desirables - Air

The 10-passenger, $26M Challenger 350 from Bombardier recently won approval to operate from a number of airports with steep approaches or short runways, which means that the airports of Aspen and London City just became a whole lot more accessible. In May, at Europe’s foremost private aviation event, the European Business Aviation Association’s convention in Geneva, the Canadian company unveiled upcoming performance enhancements that will give the Challenger 350 an extra 1,500 nautical miles of range out of short runways, allowing it to operate from Santa Monica airport. Improvements to cabin aesthetics and soundproofing make for one of the smoothest-riding, quietest jets in its class. Meanwhile, the first example of Bombardier’s Global 6500 long-range jet has gone into the plane-maker’s Montreal completion center, ready for entry into service later this year. The large-cabin, $56M private aircraft can carry up to 17 passengers in a 43-foot cabin that can be configured for work or sleep. Powered by efficient Rolls-Royce Pearl 15 engines and filled with sophisticated pilot aids, the aircraft is capable of connecting London and Hong Kong at nine-tenths the speed of sound.

bombardier.com

The Private Suite at LAX grants members the services of flying private

Let Aman fly you private from Amangani to Amangiri (shown) in under two hours

This summer, Aman launches its “Escape to the National Parks,” a private-jet itinerary to its two US-based properties, Amangiri in Utah, and Amangani in Jackson Hole. The six-night excursion includes three nights at each property, private-jet transportation between the two, airport transfers, and customized itineraries that include excursions to such sites as Zion, Bryce Canyon, Grand Teton, and Yellowstone national parks. The customized experience can accommodate 2 to 16 guests and takes less than two hours to get between the properties. Prices start at $16,650 for two people.

amanresorts.com 24

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Suite Life By Samantha Brooks With the launch of The Private Suite at LAX, those passing through the country’s second-busiest airport have the option to experience the next best thing to flying private. The 20,000-square-foot space is located adjacent to LAX, across from the Tom Bradley International Terminal, and allows members to arrive through

a special gate, while baggage goes through a speedy screening process. Transportation to the aircraft—the suite serves all commercial airlines—happens in a BMW 7 Series, avoiding the chaos of the main terminals entirely. Each of the venue’s 10 suites features its own bathroom and daybed, and members are offered complimentary meals, massages, manicures, haircuts, showers, parking, detailing for their personal cars, and use of meeting rooms. Membership starts at $4,500 annually.

theprivatesuite.com

Travelstore

Take Your Business Travel to the Next Level

A shift in business strategy and a focus on younger generations of high-net-worth consumers has Rolls-Royce poised for even greater prosperity. By Shaun Tolson

LAND

Driven to Succeed

Desirables - Land

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SUV in 2018 is even more majestic. Could the British automaker have designed and debuted an SUV years before? Perhaps. But as Martin Fritsches, president of Rolls-Royce Motor Cars North America reveals, 10 years ago a young prospective Rolls-Royce customer could only get behind the wheel of a Phantom, an elegant and stately saloon that felt reserved for older generations. To address this issue, in 2009 Rolls-Royce introduced the Ghost, a streamlined fullsize sedan. It followed that up with the Wraith—a two-door grand-touring coupe—in 2013 and an elegant convertible, the Dawn, in 2015. Two years later, the automaker introduced a more powerful and more assertively designed Ghost and Wraith, both adorned with a new

moniker: Black Badge. Finally, the historic British automaker boasted a more diverse model lineup, and the stage was set for a sport utility vehicle. “At the point of maturity where the brand is and where the different relevant markets are standing and the trends, it was the perfect timing,” Fritsches says, reflecting on Rolls-Royce’s introduction of the Cullinan. The all-wheel-drive SUV, equipped with an all-wheel steering system, allows the brand to further its expansion into the northern stretches of the United States and Canada, regions where inclement winter weather has until now restricted Rolls-Royce vehicle sales. Yet, the brand is placing equal emphasis on new business strategies tailored to attract

and satisfy younger generations of ultra-high-net-worth consumers. “We need to be more international and expand the brand to a younger, more global clientele,” Fritsches explains. Through new partnerships and associations with private jet companies, luxury resorts, and leading auction companies— not to mention sponsorships of upscale events across a broad spectrum of interests—RollsRoyce is choosing to emphasize a lifestyle over a commodity. According to Fritsches, this shift of perspective, combined with the brand’s commitment to innovate by incorporating precious materials like gold and diamonds into its production methods, has Rolls-Royce positioned for even greater success in the years to come. rolls-royce.com

Photo Credit: (1) James Lipman

Near the end of World War I, British archaeologist and army officer T.E. Lawrence contributed to the uprising of Arab forces against the Ottoman Empire throughout the Middle East. During that period of conflict, Lawrence utilized a caravan of nine armored Rolls-Royce Silver Ghosts. “A Rolls in the desert,” he said, “is above rubies.” Much changed in the century that followed, but the most striking development—at least as it pertains to the revered British automaker—occurred exactly 100 years after Lawrence played a role in the Arab Revolt. In 2018, Rolls-Royce unveiled the Cullinan, the brand’s first sport utility vehicle. An armored Silver Ghost may have been a ruby in 1918, but Rolls-Royce’s superlative

On the brink of the next-generation Corvette 2020, we look back at America’s favorite two-seater. By Jayson Hugh

Well Vetted

Desirables - Land

1. The Peninsula hotel in Beverly Hills offers exclusive opportunities and experiences for its guests to get inside and behind the wheel of Rolls-Royces 2. The new Rolls-Royce Cullinan is the first SUV for the 100-yearold brand 3. The 1967 Corvette L88 coupe sold for $3.85M in 2014 4. The first-generation Corvette debuted in 1953

CSQ Q2 2019

The Chevrolet Corvette first generation was only a show car at the General Motors Motorama Expo when it debuted in 1953, but its sleek design and fiberglass body generated enough public interest to induce GM to mass produce this model. After ditching the initial, inline six engine, Corvette quickly became a success, competing with top European brands. The second generation introduced the Stingray, which featured the iconic retractable headlamps, hood vents, and independent rear suspension, showing the car’s commitment to power and performance from the ground up. Following that was the most notable collectible in Corvette history, the 1967 Corvette L88 coupe (in 2014 one was auctioned off for a whopping $3.85M at Barrett-Jackson’s

Scottsdale auction). The first use of the T-top, removable roof panels appeared with the third generation, and during those years, Corvette was used as a pace car for the Indianapolis 500 speedway. That era saw the largest sales in Corvette history, with a record high of 53,807 models sold in 1979. Throughout its 66-year history, Corvette has occasionally celebrated its anniversaries with auctions of its special editions. On June 28, 2019, the currentgeneration Corvette, a black Z06 (the last of the front-engine models), was auctioned off at Barrett-Jackson’s northeast auction. The event preceded the release of the Corvette 2020, debuting on July 18, 2019, and purported to feature a new mid-engine configuration. chevrolet.com

Desirables - Water

WATER

Sea and Do

Three charter companies divulge their top itineraries and most exclusive yachts to enjoy the summer season in the Med. By Jayson Hugh 28

DESIRABLES

PAG ISLAND, CROATIA ON 11.11 WITH Y.CO Destination: This 100-square-mile island— the fifth largest in Croatia—boasts the longest coastline of the Dalmatian Islands. Barren, rocky, and moonlike, the rugged island is free of the hordes of tourists that conquer the more developed parts of the country. And, without any five-star accommodations, it’s best experienced on a yacht. Event: The otherwise mellow island comes to life each August with the Sonus Festival, happening this year August 18–22 on Zrce Beach. The five-day electronic music event will feature more than 40 international DJs and artists, including Solomun, Ben Klock, La Fleur, and Daniel Avery. Spend the days roaming around the island, exploring its many bays and outdoor activities, like kitesurfing, kayaking, and bungee jumping.

Experience: Allow Y.CO to take all of the hassle out of attending a music festival. From VIP access to the event to exclusive boat parties (a festival highlight) and arriving to the venue in the ship’s custom 8-meter limo tender, the event is entirely worry free. Yacht: Book the 63-meter Benetti, 11.11. The ship was built in 2015 and features six cabins with room for 12 guests. The art deco-inspired interiors feature bespoke chandeliers; contemporary artwork from Tracey Emin, Hans Kotter, and Ben Sack; and a dedicated spa area with a massage room and hammam. Outside, enjoy the numerous sundecks, mosaic-tiled jet pool, and eye-catching profile, due to its vertical axe bow that allows more stable cruising. A full collection of Sea-Doos, Seabobs, surfboards, and wakeboards, as well as a climbing wall and an inflatable slide, is also on hand. From $738,000/week

y.co

CANNES, FRANCE ON HERE COMES THE SUN WITH FRASER YACHTS Destination: Everyone knows Cannes for its famed film festival, but the city also has welcomes yachts from around the word in September for the Cannes Yachting Festival, a showcase of worldwide yachts for sailors and enthusiasts. Event: The Cannes Yachting Festival takes place September 10–15 this year in Vieux Port and Port Canto. The one-week international yachting event will feature more than 565 yachts from around the world, with 363 motorboats, 117 sailboats, and 85 RIBs. Spend a few days checking out the yachts from different continents to see some of best in international yacht design. Experience: With 21 offices worldwide and more than 160 employees, Fraser Yachts is equipped to deliver a variety of experiences and thrills. Whether its arriving to Cannes by helicopter, touring other luxury yachts, or finding the best vantage points to take in the stunning coastal scenery, they are sure to make the experience memorable. Yacht: Here Comes the Sun was refitted in 2017 by Amels, with 10 staterooms designed for 12 guests. Tim Heywood designed the 83-meter ship with long decks that grant 15,069 square feet of interior space and 10,764 square feet of outdoor deck space. Inside, Winch Design created a modern European feel with touches like stone- clad bathrooms, plush furnishings, and rich wood paneling. Special features include a grand piano, elevator, beach club with terraces for a spa and wellness center, home theater, and mosaic-tiled infinity pool.

AMALFI COAST, ITALY ON ALFA NERO WITH BURGESS Destination: The narrow curvy streets are packed, the hotels are crowded, and the beaches are rocky. Still, there are few better places to be during the summer than the Amalfi Coast—especially when staying on a grand yacht, with the freedom to explore the region’s less-accessible beaches, hidden coves, and of course, the island of Capri.

Desirables - Water

From $1.36M/week

fraseryachts.com

Event: Attend one of the classical music concerts in Ravello, staged in the gardens of Villa Rufolo throughout the summer. The building was originally designed in the 13th century and has had a long history of hosting concerts, ever since German opera composer Richard Wagner saw the villa in 1880 and was so taken with it he imagined it as a setting in Parsifal. The structure has been hosting operas every year since. Experience: Allow Burgess to organize every thing down to the last detail. The team has vetted the region inside and out, assuring guests are never caught in tourist traps, and the team can arrange anything from a themed party with fireworks to a private live concert performed by a Grammy-winning artist. Yacht: Book the 82-meter Alfa Nero. Refitted in 2017, Alfa Nero features six cabins accommodating 12 guests. The Alberto Pinto– designed yacht has a coastal vibe with innovative flair. The pool transforms into a dance floor with a spacious deck area, allowing a day party to become a nighttime disco. Additionally, the yacht is equipped with a spa and beauty salon, as well as a gym and Jacuzzi. From $1.05M/week

CSQ Q2 2019

burgessyachts.com 29

With 30 years in business, fine-furniture maker Frank Pollaro reflects on making wooden pieces for everyone from Larry Ellison and David Geffen to Jerry Seinfeld and the Faena Hotel in Miami Beach. By Samantha Brooks

FURNISHINGS

Hand-Made Tale

1. Pollaro seating is fitted to each client’s body dimensions and comfort preferences 2–3. Items from the Pollaro Teak+Titanium

outdoor line, hand made from solid Burmese teak and pure titanium, finished with eight hand-rubbed coats of teak oil

3 DESIRABLES

way, to mark its 600,000th piano; it sold for $2.4M. He was also sought out by Alan Faena to create 355 chairs and tables for the hotelier’s Miami Beach property, Pollaro’s largest public installation ever. And Pollaro continues to evolve. “I have a new partner I’m doing proprietary cashmere-blended rugs with. Most rugs are wool and silk, but these are amazing under your feet, and they are all made by hand in the US,” he says. “We’re also working on five major yachts right now, which are projects that require anywhere from 20 to 100 pieces. I started using titanium and teak for Larry Ellison’s yachts, and it really caught on. Even marine-grade stainless steel eventually rusts, but titanium is completely resistant to rust and salt water.” Ellison was Pollaro’s first yacht client, an experience that he found game changing. Pollaro had done several pieces for David Geffen, who referred him to his friend, Ellison. “I remember flying out to see the yacht, Rising Sun, which Geffen actually owns now, in Saint Martin. I looked out over the marina and saw a bunch of other yachts, and I saw that we needed to be furnishings those too,” says Pollaro. “From that point on, we changed our marketing and our approach. Yachts like that start at $100M. Those clients also usually have multiple homes.” A typical dining table Pollaro makes from a spectacular wood might start around $100,000, while an average yacht furniture project may cost the client up to $2M. While yachts occupy much of Pollaro’s commissions, he also prides himself in the designer relationships he’s built over the years, frequently working with the likes Victoria Hagan, Susan Orsini, Jamie Drake, and Brian McCarthy. In spite of the increase in volume and scale of work, Pollaro has never changed his product. “I focus on a few things: rare materials, as I have the largest collection in the world, with a million square feet of veneer and 150 species of woods; I don’t stain or color the wood; and there’s absolutely no CNC equipment automating the process,” he says. “The whole point is that everything is made entirely by hand. Every would-be competitor I have is highly automated, which means that I have no genuine competitor.”

Desirables - Furnishing

Typically, white oak trees grow for 300 years and then die. But the one at fine-furniture maker Frank Pollaro’s Hillside, N.J., workshop is more than 500 years old. “It was growing in Basking Ridge, New Jersey, and according to their historical society, George Washington had lunch under the tree in May of 1780,” describes Pollaro. “There are also 37 Revolutionary War veterans that were buried under it.” When it arrived at Pollaro’s workshop and his team was first cutting into it, they discovered a Revolutionary War musket bullet, fired around 1777. The bullet remains intact in the tree, an added detail to an already rare specimen of wood. “We’ll be cutting it and drying the wood for four years,” says Pollaro. “There’s a limited number of pieces we’ll get from it. Fewer than 10 tables, and each will be totally different.” Wood like this is just the start of what’s in Pollaro’s portfolio. French burled walnut, okoume crotch, amboyna, hundreds of fine Makassar ebony logs, white ebony, chenchen, birds-eye zebrano ... the list abounds. “No one in the world has this inventory,” says Pollaro. “When you go to another maker to order an ebony dining table, they’re choosing from whatever is in the supply chain at that moment. There’s no handpicked selection process like what’s available from Pollaro.” Throughout his 30 years in the business, Pollaro has been making furniture the same way. “I knew when I was 12 that I wanted to make furniture. I never thought about doing anything else. I founded the business when I was 21, with the strategy of building the finest pieces in the world,” he says. “I made no consideration of how much time it took to make something, only how to make the best product with best woods, finishes, and joinery.” What started as a six-person team in 1988 has grown to a team of 45, who operate at his 60,000-square-foot space that includes his warehouse, offices, and workshop, which includes woodworking, metalworking, and upholstery. His first employee, a high school friend who was an expert in finishing, is still with him today. The range of pieces that Pollaro creates spans from dining tables, chairs, and cocktail tables—and now rugs, lighting, and teak and titanium furniture for yachts. He recently made a Fibonacci piano for Stein-

pollaro.com

A DAY VACATION

MALIBU COUNTRY MART OVER 65 UNIQUE BOUTIQUES AND RESTAURANTS IN THE HEART OF MALIBU

Malibu Country Mart

PRIVATE CLUB REPORT

Los Angeles

High Five

DESIRABLES

to go through a membership process, which includes an interview with the spa director, Amanda Raich, to determine whether the membership is a fit for both parties, and the price of membership is revealed. “This is a membership for guests that want to make the Waldorf their second home. They love the fresh and opulent feel to the hotel and want to have the privacy of the gym, spa, and pool, and at the same time, enjoy the convivial atmosphere at the rooftop in the evening,” describes Raich. “It’s the five-star version of Cheers. Everyone wants to feel like they belong and love what is familiar to them.” Extra amenities during the summer at the pool include hourly passings of popsicles and frozen grapes. With 170 guest rooms and 53 lounge chairs, the pool is designed to never be so full that guests—and now members—can’t get a chair and enjoy delights from the Jean-Georges menu featuring such options as the Thai short rib burger, chargrilled chicken with kumquat lemongrass dressing, rosé-Aperol spritz, and pomegranate margarita. For more information, contact Amanda Raich,

1. The Waldorf’s rooftop pool rests on the 12th floor of the hotel, offering views of the entire city

Desirables - Private Club LA

Beverly Hills’ newest exclusive membership club includes access to the city’s hottest rooftop pool. By Samantha Brooks

With one of the most spectacular views of Los Angeles from its 12th floor, overlooking the estates of Beverly Hills, the Wilshire Corridor, and the downtown skyline, the Waldorf Astoria Beverly Hills has been captivating locals and guests alike with its stunning 2,900-square-foot rooftop bar (for more on that see “Dining Around” with Jean-Georges on page 106) since it opened in June 2017. For the natives who have sauntered past the heavily guarded rooftop pool—staff monitored, keyed entry—wondering what it takes to enjoy the stunning setting, the answer has come. The famously exclusive rooftop pool is now available to nonguests through a Private Wellness Club that also offers access to the 2,000-squarefoot gym with equipment from Technogym and Skillmill and the La Prairie spa locker room with LED steam room. Membership—limited to just five people this year—allows guests to bring their own trainer for a workout or call upon the hotel’s list of experienced fitness trainers. It also includes complimentary valet parking, one night’s stay at the hotel within the first year, and 12 annual guest passes. Though members don’t have to stay at the hotel, they do have

amanda.raich@waldorfastoria .com

2. Membership allows guests to access the hotel’s La Prairie spa 3. The La Prairie spa’s locker rooms feature LED showers and steam rooms

PRIVATE CLUB REPORT

New York

square feet and comprised of a living room with a bar, pullout sofa, and full bath, and a bedroom with a California king bed and full en suite bathroom. Architecture is in a traditional shingle-clad Hamptons style from Hart Howerton, with interiors by Denton House. There are also 205 Beach Club memberships, granting access to the club’s facilities and amenities, as well as secondary access to the suites. Those not staying overnight at the club will still enjoy Discovery’s signature Outdoor Pursuits program, which facilitates surfing, kayaking, paddleboarding, sailing, cycling, horseback riding, and more. Culinary options at the club include an oceanview restaurant and poolside Deck Bar. The club’s season runs Memorial Day through Labor Day, with limited hours just before and after. Membership starts at $350,000 for the beach club and $1M for the lodging. “I think of the Dune Deck as The Beverly Hills Hotel of the Hamptons,” Meldman says. “The club has a wonderful history and vibe and offers a casual elegance that appeals to our members. It’s a great place just to hang out in the Hamptons throughout the summer.” dunedeckclub.com

Desirables - Private Club NY

Point Dune

Now in its second season, Discovery Land Company’s only property with members-only accommodations establishes itself as the spot to be in the Hamptons. By Samantha Brooks CSQ Q2 2019

Since its inception in 1995 with the launch of its first resort community, the Estancia Club in Scottsdale, Discovery Land Company has grown to a portfolio of 23 signature resort communities, from the Big Island of Hawaii to the Bahamas, but has never opened a property with overnight accommodations. Until now. With the launch of Dune Deck, a 5.7-acre beach club located on Westhampton Beach, the brand has entered its next phase of development. “There is no greater location to visit during the summer than the Hamptons,” says Mike Meldman, Discovery Land Company’s CEO and founder. “We were offered a once-in-a-lifetime opportunity to rebuild an iconic beach club, and we know that many of our existing members from New York City spend their summers here, so it made perfect sense. Dune Deck is an extraordinary beachfront property that operates as a small luxury hotel for our members. It is the first in a plan to develop an expanding collection of Discovery-branded boutique hotels throughout the world.” The property offers just 70 lodging memberships, which grant access to the club’s 33 Beach Club Suites, each 600

4–5. Dune Deck is locat ed on 5.7 acres in Wes thampton Beach and features architecture from Hart Howerton 6. The property offers 33 suites, each measu ring 600 square feet and designed for over night stays—a first for the company

BUYING TIME

Summer Time Exploring the history and beauty of some of the most iconic dive watches. By Degen Pener

How did dive watches become fashion statements?

Sigmond: For me, it’s the dogged determination of Hans Wilsdorf, the founder of Rolex, to make the world’s first waterproof watch in 1926. It really is one of those great stories of technological advancement. Before Wilsdorf, your Elgin or Hamilton watch could be ruined just from splashing in the bathroom. And in the span of some 30 years, you went from something that couldn’t be wet, could barely tolerate a heavy rain, to being able to go to the absolute lowest depths of the Pacific Ocean, when Rolex took a watch to the Mariana Trench, and it didn’t spring a leak or crack a crystal. Bernardo: We trace this whole race among watchmakers to set depth records. It’s a game of one-upmanship, how low can you go essentially.

AARON SIGMOND AND MARK BERNARDO Ever since Sean Connery strapped on a Rolex Submariner in the first Bond film in 1962, the dive watch has been an iconic style statement. In their new, beautifully photographed book, Sea Time: Watches Inspired by Sailing, Yachting and Diving (Rizzoli, $85), authors Aaron Sigmond and Mark Bernardo trace the development of this high-performing class of timepieces that includes beloved examples such as the OMEGA Seamaster and the DOXA SUB 300. CSQ spoke with Sigmond, whose previous Rizzoli book, Drive Time: Watches Inspired by Automobiles, Motorcycles and Racing, is the ultimate reference guide to driving watches, and Bernardo, senior editor of WatchTime magazine, about how these timepieces originated as utilitarian tools and went on to become masculine accessories suitable for CEOs. 34

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Sigmond: Basically, it was three particular watches. Because of James Bond, we found it readily acceptable that you can dress up a Rolex Submariner. Panerai went from a topsecret naval project that no one would even admit existed—from 1938 to 1970 their production was miniscule, 1,600 watches or so—to the 1990s when Sylvester Stallone wore it on his wrist in Daylight. It became the hottest thing. Every guy on Wall Street began wearing it. And the Audemars Piguet Royal Oak Offshore grew and evolved from AP’s Royal Oak, which was one of the first hybrids of a sports watch and a dress watch. Are dive watches actually used to dive these days? Sigmond: The bottom line is nobody needs

a dive watch to dive anymore. If you want to be the most accurate about your oxygen supply and your time and your depth, you have a dive computer. Bernardo: We use the term, and I hope people don’t consider it pejorative, “desk diver.” These are modern dive watches that are made with the ability to go in the water, but essentially, they are designed to look good with a business suit. You dive into the history of how these watches were developed. What did you find most compelling about that subject?

What dive watches would you recommend for someone to wear to the office? Bernardo: Obviously iconic “sport luxury” pieces with a nautical pedigree like the Patek Philippe Nautilus, Audemars Piguet Royal Oak, and Vacheron Constantin Overseas are ideal choices, though none of these were actually built as tool watches for diving or sailing. Among those that were, I’d name the Blancpain Fifty Fathoms, especially the vintage-look Bathyscaphe models, the Breitling Superocean Heritage, IWC Aquatimer, and many of the TUDOR Black Bay models as diving and sailing watches that successfully transition from beach to boardroom.

Photo Credit: Sea Time by Aaron Sigmond and Mark Bernardo, Rizzoli New York; Top: Peter Eaton Gurnz

Desirables - Watches

FIVE DIVE WATCHES FOR SUMMER, COURTESY OF BERNARDO AND SIGMOND:

BULOVA ARCHIVE SERIES LIMITED EDITION OCEANOGRAPHER

BELL & ROSS BR 03-92 DIVER BRONZE

“When it came out in the 1970s, this watch earned its nickname, the Devil Diver, because of its depth certification, 666 feet. It’s now out in a reissue of 666 pieces, of which, as a fan, I happen to own number 66,” says Sigmond of this 40.5 mm stainless-steel timepiece. Water resistant to 200 meters (or 666 feet).

“Bronze, with its historical link to maritime equipment, is becoming a go-to material for diving watches, and it’s rarely used better than it is here,” says Bernardo. In a limited edition of 999. Water resistant to 300 meters.

$1,495

$3,990

bulova.com

bellross.com

Desirables - Watches

BREITLING SUPEROCEAN HERITAGE II CHRONOGRAPH 44 OUTERKNOWN

PANERAI SUBMERSIBLE CHRONO GUILLAUME NÉRY SPECIAL EDITION

“It’s not just a handsome blue-on-blue divers’ chrono, but an eco-friendly one as well, with a strap made from a special fabric derived from recycled ocean waste,” says Bernardo. Breitling partnered on this 44 mm piece with Outerknown, a sustainable clothing maker co-founded by surfer Kelly Slater. Water resistant to 200 meters.

“In a move long overdue, Panerai spun off the Submersible as its own collection this year. The clear hero of the collection is this special edition, with black DLC case, gradient blue-to-black dial with applied luminous dots and indexes, and a black titanium caseback engraved with the signature of the free-diving champion who lent the watch his name along with an image of Mo’orea Island,” says Bernardo of this 47 mm automatic of which only 15 will be made. Water resistant to 300 meters.

$7,100

$40,000

breitling.com

CSQ Q2 2019

panerai.com

ULYSSE NARDIN DIVER CHRONOMETER

“I consider this sleek model, which premiered in 2018, a connoisseur diver. Ulysse Nardin has been making marine chronometers since the second half of the 19th century and has supplied them to the admiralties of Russia, Japan, the United Kingdom, and the U.S. Navy,” says Sigmond of this 44 mm timepiece in titanium. Water resistant to 300 meters.

$7,900

ulysse-nardin.com 35

VISIONARIES AWARDS IN REAL ESTATE & FINANCE

NEXTGEN 10 Visionaries Awards

VISIONARY OF THE YEAR

Amina Belouizdad | The Private Suite

Don Peebles | The Peebles Corporation

Shay Bolton | Savills

OTHER VISIONARIES BEING HONORED

Brian De Lowe | Proper Hospitality

Nelson C. Rising | Rising Realty Partners

Will Grewal | HomeStack

Christopher C. Rising | Rising Realty Partners

James Kleeman | Emerge212

Pamela Liebman | The Corcoran Group

Mike Leach | West River Hotels Donahue Peebles III | The Peebles Corporation

JULY 18, 2019 ONE CAL PLAZA 300 South Grand Avenue Los Angeles, California 90071

Christie Pitts | Backstage Capital Ryan Simonetti | Convene Prophet Walker | Treehouse Co-Living

SPONSORS & PARTNERS

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

By Invitation Only csqvisionaries.com

38 Visionary Alumni Updates 40 Of Note 42 Op-Ed by Jeff Stibel 46 Hudson Yards and Grand Ave. 48 Breaking Ground INNOVATIVE OFFICES 44 The Gores Group 45 The Georgetown Company LIST 50 NextGen 10 VISIONARIES 56 Nelson and Christopher Rising 58 Pamela Liebman 60 Alan and Michael Fuerstman VISIONARY OF THE YEAR 64 Don Peebles, The Peebles Corporation

Real Estate & Finance

Part 2

Real Estate & Finance Cover

Visionary of the Year Don Peebles stands in front of his latest project, the $1.6B Angels Landing in Los Angeles. Read more about his path to success on page 64.

CSQ Q2 2019

VISIONARIES OF THE YEAR 2018

2016

2014

STEVEN F. UDVAR-HÁZY Executive Chairman of the Board, Air Lease Corporation

SCOTT MINERD Founding Managing Partner and Global CIO, Guggenheim Partners

RICK CARUSO Founder and CEO, Caruso

2015

2013

Visionaries in Real Estate & Finance

CSQ ALUMNI COMMUNITY OF

Air Lease kicked off the Paris Air Show with 100 jet deals from Airbus SE and other companies, at a cost of nearly $13B.

Real Estate & Finance - Alumni CHARLES S. COHEN CEO and President, Cohen Brothers Realty Corporation

RUSSELL GOLDSMITH Chairman and CEO, City National Bank

2017

Russell stepped down from CEO of City National Bank but remains the Chairman. City National Bank names Kelly Coffey as the new CEO.

THERESE TUCKER Founder and CEO, BlackLine (NASDAQ: BL)

BlackLine saw $277M in revenue in calendar 2018, has over 850 employees worldwide, and has created 500 jobs in L.A. BlackLine expanded operations into Japan, its 11th international location.

REAL ESTATE & FINANCE

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

2011

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

VISIONARIES

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

Beverly Hilton purchased One Beverly Hills for $430M in 2018. ANDY COHEN Co-CEO, Gensler

CLARENCE DANIELS President and CEO, CMS Inc.

DORENE C. DOMINGUEZ CEO and Chairwoman, Vanir Group of Companies

Dorene C. Dominguez was named 2018 Female Entrepreneur of the Year by the Houston Hispanic Chamber of Commerce.

RENÉ GROSS KAERSKOV Co-CEO, HBA

PAUL SCIALLA Founder and CEO, Delos

JOHN KILROY Chairman of the Board, President, and CEO, Kilroy Realty Corp. (NYSE: KRC)

Scialla launched the $800M, New York–based startup International WELL Building Institute that provides WELL Building Standard certification.

MICHAEL KOSS Founder, Koss Resource

DAMIAN LANGERE Co-founder & CEO, Domuso

JAIME LEE CEO, Jamison Realty

GINA MARIE LINDSEY Former Executive Director, LAWA

SANDY SIGAL President and CEO, NewMark Merrill

NewMark Merrill had a record-breaking year, with $82M in acquisitions and $104M in refinancing transactions. SHIVANI SIROYA Founder and CEO, Tala

JEFF STIBEL Vice Chairman, Dun & Bradstreet Founding Partner, Bryant Stibel

Real Estate & Finance - Alumni JONATHAN EMMETT Principal and Design Director, Gensler Sports Practice

DEBORAH ALE FLINT CEO, LAWA

TOM GILMORE CEO, Gilmore and Associates LLC

LES HISCOE CEO, Shawmut Design and Construction

SCOTT HUNTER Principal and Los Angeles Office Director, HKS Architects

LEWIS C. HORNE Division President, Pacific Southwest, CBRE

ROB JERNIGAN Co-Regional Managing Principal, Southwest Region, Gensler

CSQ Q2 2019

BRUCE MAKOWSKY Founder, BAM Luxury Development

CHRISTOPHER C. MARTIN Chairman and CEO, AC Martin

KEITH WASSERMAN Founder, Gelt Inc.

AC Martin has partnered with Turner Construction for new office development projects in Downtown Sacramento, worth more than $520M.

NADINE WATT President, Watt Companies

RICHARD MEIER Managing Partner, Richard Meier & Partners Architects LLP

DOUGLAS MERRILL Founder and CEO, ZestFinance

MARK ROSENTHAL President and CEO, Raleigh Enterprises

Watt Companies is working with Metro and L.A. County on a project in the Crenshaw area, nad has completed construction of the “View 32” 135-unit apartment building in Phoenix, Ariz. MARK WEINSTEIN Founder and President, MJW Investments

ZAYA YOUNAN Founder, Chairman, and CEO, Younan Properties

JOHN SCARDINO Founder and President, JHS LLC

HOMES AWAY FROM HOME

OF NOTE

Briefings, Updates & Analysis By James Faris

Real Estate & Finance - Of Note

LIFE + LUXURY – HASSLE Those leading America’s largest companies don’t have enough hours in the day to sweat the small details. Enter Sybarite Lifestyle Management. Fortune 500 companies and other high-profile clients trust Cornell- grad S c ot t H al e’s s e r v i c e, w hi c h go es beyond that of a typical per sonal as sistant or estate manager. Hale serves clients in Beverly Hills and the Hamptons by hiring staff for them, representing them at art and wine auctions, planning events, and facilitating moves. With 15 years of experience in the hotel industry (Ritz-Carlton, The Regent), he has learned to meticulously manage the smallest details, skillfully juggling all the moving parts of a HNWI’s schedule and lifestyle and offering knowledge and expertise to clients. Consulting rates start at $200/hour.

sybaritelm.com

Extraordinary is the new normal for those staying in Homes & Villas by Marriott International. Private oceanfront villas, luxurious countr yside cabins, modern urban lofts, and stunning stone castles are just some of the offerings from this new program by hospitality giant Marriott. Guests can choose from more

than 100 locations, including historic Galway, Ireland; breathtaking Punta Mita, Mexico; and unforgettable Marbella, Spain. All homes are professionally managed by Marriott, feature premium amenities, and include high-speed Wi-Fi. Members can earn points through the Marriott Bonvoy program and use them at these offerings or any of Marriott’s 29 hotel brands.

REAL ESTATE & FINANCE

homes-and-villas.marriott.com

DIVERSIFYING VENTURE CAPITAL Investing in women and people of color has paid off big time for one venture capital fund. Harlem Capital Partners, which launched in June 2018 and supports minority- and women-run companies, is now backed by TPG Global—a firm with $108B in assets. Over the next 20 years, Harlem Capital plans to invest in 1,000 companies with women and/or minorities at the helm. This mission-driven firm aligns with top-tier private equity and venture capital investors to support young businesses that often need it most. Minority and women entrepreneurs receive as low as 3 percent of investment cash for startups. Harlem Capital hopes to change the face of entrepreneurship by changing the faces breaking into the space. harlem.capital

FLEX WORK Rigid, cold, cookie-cutter off ices are gradually becoming a thing of the past thanks to companies like Knotel. Founded in 2016 by CEO Amol Sarva and chairman Edward Shenderovich, the company uses data to optimize workspaces and provide solutions for both established and growing

c omp anie s . U nlike c omp eti tors, Knotel provides full-floor, tailored workspaces catered to businesses’ own brands. Recently, the company announced completion its 100th building customization in New York City alone and counts 3.5M square feet of off ice space worldwide. Prices vary based on individual needs and spaces. knotel.com

Real Estate & Finance - Of Note

BUYING HISTORY Jacqueline Kennedy Onassis’ Martha’s Vineyard estate, Red Gate Farm, just hit the market for $65M. The 340-acre residence was designed in 1981 by famed architect Hugh Newell Jacobsen and expanded in 2000 by Yale School of Architecture Dean Deborah Berke. Nature lovers will feel at home and at peace in the presence of plants, trees, birds, and other wildlife in the estate’s freshwater ponds and coastal dunes. The 6,456-square-foot main residence was designed in traditional Cape Cod style, and the property includes more than a mile of coveted private Atlantic beachfront. A lifetime of luxury and tranquility awaits the ownerto-be. christiesrealestate.com

CSQ Q2 2019

Even one of the wealthiest people in the world has made mistakes— the key is how he learned from them. By Jeff Stibel

Real Estate & Finance - Op Ed OP-ED

Jeff Bezos: A Profile in Failure

REAL ESTATE & FINANCE

Jeff Bezos, founder and CEO of Amazon.com, can hardly be considered a failure. One of the three richest people in the world, he has been named “Person of the Year” by Time magazine and “Businessperson of the Year” by Fortune. His company made $232B in revenue last year and has a market cap hovering around $900B valuation, making it the most valuable public company in the world. Yet during Amazon’s early years, Bezos made more mistakes than many of us make in a lifetime. At a minimum, he made more expensive mistakes than any of the rest of us, adding up to hundreds of millions of dollars in what he has characterized as “bad choices.” In 1998, the fledgling Amazon.com sold books, music, and movies, and quickly became an online leader in those categories. The company attracted significant venture capital, and Bezos had dreams of turning Amazon into the “everything store.” After considerable market research, he decided to branch into the toy market. But toys were very different from Amazon’s previous offerings because there were no major distributors. Amazon had to actually buy the toys from various manufacturers, store them in inventory, and then hope they sold.

DURING AMAZON’S EARLY YEARS, BEZOS MADE MORE MISTAKES THAN MANY OF US MAKE IN A LIFETIME.

This went against Amazon’s core business model but Bezos could not be dissuaded. Bezos insisted on spending $120M to buy toys, against the advice of every other Amazon executive, even the head of the toy department. Bezos wouldn’t budge, remarking, “If I have to, I will drive to the landfill myself.” That comment proved to be prescient. After Christmas Amazon had $50M in toys leftover, and with nowhere to keep them and no guarantee there would ever be a market for them, the easiest option was to dump the toys. Amazon ended up giving toys to various children’s charities and selling the rest to exporters for a fraction of the value. In the same year, Bezos also started Amazon Auctions, which he felt could overtake eBay. He called the project EBS for “Earth’s Biggest Selection,” but other insiders were calling it “eBay by Spring.” He spent $175M acquiring the payment company Accept.com to facilitate transactions between buyers and sellers. But it was a bigger failure than toys for Amazon. eBay was just too well known; it enjoyed first-mover advantage and a sizeable network effect. There was no room for another auction site, especially not one with fewer buyers, fewer sellers, fewer items for sale, and no competitive advantage. Accept.com wasn’t Amazon’s only acquisition that year. Another 1998 purchase was Junglee, a search site that compared prices of products across the web. Comparison shopping was hot and so was search, with companies like Google, Yahoo, PriceGrabber, and Bizrate all commanding huge valuations. Bezos spent $170M on Junglee, but the Amazon Board of Directors hated it because it sent customers away from Amazon to other sites. It was disbanded in a matter of months. Not only did Bezos dream of Amazon selling everything in the world, but he also wanted to own businesses across the web. Bezos went on a huge shopping spree in 1998 and 1999, buying companies including movie site IMDb, social networking company PlanetAll, data company Alexa, a British bookstore, and a German bookstore. He also invested heavily in Drugstore.com, Pets.com, Gear.com, WineShopper, Greenlight, and HomeGrocery. But as reported in the 2013 book The Everything Store, by journalist Brad Stone, “almost all of them went down in flames.” Bezos and his team simply did not have the capacity to work with all of those different companies. Books, movies, and music had worked. But by the turn of the century, almost every other effort Amazon had made to grow failed. However, these failures weren’t in vain. To the contrary, looking back at a letter Bezos wrote to shareholders in 1998, it seems that these mistakes were part of a grander plan: “We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages. Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case.” Bezos made an embarrassing number of bad investments, which is true of all investors. But look at some of his other investments and you quickly see a very different story: Google, Airbnb, and Uber are all part of Bezos’ personal portfolio. It is fair to say

that, over time, Bezos’ wins have more than made up for his losses. As for the companies Amazon has acquired, some failed but many more have been huge successes, like Zappos, Shopbop, and Diapers.com. Bezos had close to a billion dollars in failures in the early years of Amazon. These were painful learning experiences that required reflection, but he more than recovered. His mistakes came mainly when he steered away from the core path Amazon was paving. Bezos learned his lessons, adapted, and significantly changed course by late 2000. In lieu of unadulterated growth, he looked inward and focused on the company’s basic principles and tenets of success. He paused acquisitions and focused on strengthening Amazon’s core business and increasing customer satisfaction. He learned from the toys mistake and partnered with Toys “R” Us to sell its products online without having to buy inventory. He did the same with electronics, partnering with Circuit City rather than going it alone and taking inventory risk. He transitioned Amazon Auctions to zShops where sellers could have their own Amazon shop. zShops was not aligned with Amazon’s core and unsurprisingly failed, but that failure morphed into Amazon Marketplace, which became hugely successful. A company the size of Amazon affects the lives of millions of people, and with great success comes great numbers of people weighing in. In the last few years Amazon has come under fire for many issues, including employee wages, environmental practices, facial recognition software, federal tax payments, and even the location of its new headquarters. While it can be argued that Bezos has made missteps, it is clear that his early failures prepared him for his future successes. Bezos has repeatedly shown that he can withstand controversy and ultimately prevail. Bezos’ early words and actions showed that he knew the value of failure from the beginning. He was not naive enough to believe that all his investments would pay off, nor was he ignorant enough to assume his company could thrive without taking risk. He learned to take calculated risks, even if that meant a risk of embarrassment. We can be sure that Amazon will dominate many more news cycles in the future. We can also be sure that Bezos will make decisions that others disagree with, and maybe even some that become mistakes. But Bezos has proven that he can learn, adapt, and grow—and that always ultimately leads to success. END

Real Estate & Finance - Op Ed

CSQ Q2 2019

JEFF STIBEL Co-Founder and Partner Bryant Stibel Jeff Stibel is the author of Wired for Thought: How the Brian is Shaping the Internet and Breakpoint: Why the Web Will Implode, Search Will Be Obsolete, and Everything You need to Know About Technology Is in Your Brain.

INNOVATIVE OFFICE

Los Angeles

The Gores Group

Situated at the western entrance to Beverly Hills and adjacent to an iconic I. M. Pei building, The Gores Group site stands out. The design team made sure the three-story structure would hold its own among impressive surroundings by creating a façade of sculpted limestone and slump glass, fabricated by a company that produces curved airplane windows. This distinctive skin turns an otherwise rectangular box into a sculptural experience. Inside, details like ash paneling create luxurious warmth. By Samantha Brooks

Industry Finance Location Beverly Hills Scope 135,000 square feet Architect Belzberg Architects Interior Design Joan Behnke Floors 3 Notable Features • Conference room lit by a pixelated ceiling composed of Plexiglas square rods and hollow wood square tubes with lighting to give the effect of an inverted skyline. • Curved stair railing is made up of shaped, compound-curved, wooden slats that are lit within the hollow rounded railing.

• Due to an I beam in the structure that supports the roof, the ceiling was sculpted with inspiration from architecture found in Sardinia. The beam is unexposed, as it is encapsulated by the sculpted plaster and integrated light source.

Real Estate & Finance - Office LA 3

1. The façade features limestone and curved glass 2. The entry foyer reception desk is made from the same fiberglass used for surfboards 3. For the president’s office, blonde ash wood suitable for a yacht adds warmth to the large space 4. The conference room features Plexiglas square rods reminiscent of an inverted skyline, and is paneled with white ash and built-in niches for horizon-line art by Miya Ando

5. The design team worked with Spectrum Oak to create a staircase based on 3-D drawings 6. The cave-like entrance is on a side street, opening up to a light-filled foyer 7. The outdoor rooftop space features views in all directions

REAL ESTATE & FINANCE

INNOVATIVE OFFICE

New York

The Georgetown Company

Formerly Pepsi-Cola headquarters, this 11-story building on Park Avenue, built in 1960, has been granted landmark status by the NYC Landmarks Preservation Commission. For the offices of The Georgetown Company, which occupies a full floor, the building’s original design firm, Skidmore, Owings & Merrill, spent nearly a year and a half redesigning and renovating the interiors. The result is a space with a residential feel and flexible, open work spaces with multiple settings that allow focused work and collaboration. By Samantha Brooks

Industry Real estate Location New York Scope 19,638 square feet Architect Skidmore, Owings & Merrill Interior Design SOM in col laboration with Tony Ingrao Floors 1 Notable Features • The palette is inspired by the surrounding Park Avenue façades, which help create a backdrop for the interiors.

• The historic building features 9feethigh by 13feetlong glass panes, the largest that could be created in its day. • Minimal, tailored interiors complement Skidmore, Owings & Merrill’s modernist architecture, resulting in a seamless integration of structure and interiors.

Real Estate & Finance - Office NY

1. All partitions connect to the façade via clear glass to create visual connectivity between spaces

2. Embrace chairs from Carl Hansen & Son and Spine stools from Fredericia furnish the kitchen 3. Glass panes measuring 9 by 13 feet maximize views of the surrounding architecture 4. The interiors feature a warm, monochromatic palette with natural materials, including wood, stone, and leather

5. The library features the firm’s private collection of books and is used daily as a quiet space to focus and host small meetings 6. The kitchen is used daily for collaboration and meetings 7. The stunning Mesa table by Halcon, and designed by Skidmore, Owings & Merrill, can accommodate 20

CSQ Q2 2019

Real Estate & Finance - Hudson Yards 1

TOURING

Grand New Time

Following the opening of New York’s Hudson Yards development, Related Companies looks toward Down town Los Angeles. By Carolyn Meers 46

REAL ESTATE & FINANCE

Downtown L.A.’s skyline has rapidly evolved over the past decade, with new luxury apartment buildings, mixed-use complexes, highrise hotels, music venues, galleries, and museums adding texture and depth to an area that is now, by all accounts, the city’s nexus of art and entertainment. Related Urban, the mixeduse arm of Related Companies, just debuted its $25B Hudson Yards project on Manhattan’s West Side, bringing a multimillion-dollar development to L.A.’s buzziest neighborhood. Designed by Frank Gehry and slated to debut in 2021, The Grand sits across the street from the famed Walt Disney Concert Hall and just steps from the Arts District and Gallery Row. Like Hudson Yards, The Grand will fuse residential, commercial, and retail spaces, with 400 luxury residences in its 39-story high-rise; more than 176,000 square feet of retail space peppered with chef-driven restaurants; a collection of shops; a movie theater complex; the 20-story Equinox Hotel with 12,000 square feet of meeting rooms and facilities; and 27,000 square feet of lounges, restaurants, and outdoor amenities.

While Manhattan’s West Side and Downtown L.A. each have their own perks and pitfalls, both are at the center of rapidly emerging markets. “We’re watching the West Side of Manhattan become a node of density in New York,” says Kenneth A. Himmel, president and CEO of Related Urban. “We created an incredibly dynamic submarket on the West Side of Manhattan. Downtown is the same thing— it’s its own submarket in Los Angeles.” A plaza between the hotel and residential towers will regularly host outdoor music and art events open to the public. Additional elements, much like The Shed at Hudson Yards, aim to appeal to a broader swath of the population—those who may be priced out of the high-rise or the Equinox. “I’ve spent years on this project making sure we have a balanced approach to all of our programming,” says Himmel. “The entire Grand Avenue project is a fraction of the size of Hudson Yards, yet it’s got very bold public programming elements to it—meaning just about everything we’re putting in the project is open to the public.”

The efforts toward accessibility will also be reflected in the variety of food options at The Grand. Himmel says there will be fine dining, casual dining, and quick-serve spots, and a market with locally sourced foods. “Because of the depth and breadth of programming we execute, we are going after multiple audiences. We don’t go after a single audience,” he says. To that end, 20 percent of The Grand’s residence tower will be devoted to lowerincome tenants. Hudson Yards sparked the West Side’s office space boom; Himmel points out that of the 9 million square feet of new office space brought to the area, 8 million of it was Related’s, which then spawned another 5 million to 6 million square feet of office space. Similarly, Downtown L.A. has been drawing offices full of younger workers looking to rent and buy apartments, eat, shop, and take in world-class events, years before The Grand broke ground. Downtown’s emerging young office market has led to the area’s high residential growth, spurred on by quality restaurants and retail. Plus, workers are looking to bring work and play closer together. “There’s a tremendous amount of movement to downtown, partly because a lot of people are just tired of driving two hours everywhere they go,” Himmel says, also pointing to revitalized public transit lines in both locations, the 7 line in New York and the Metro in L.A., which will continue to bolster access to (and public interest in) each project. “There’s a lot of good ingredients in Downtown Los Angeles, and it is coming alive.” related.com

Real Estate & Finance - Hudson Yards 3

1. Standing more than 1,000 feet in the air, the glass-andlimestone tower is the tallest residential building in the Hudson Yards neighborhood 2. The $25B Hudson Yards development features a variety of restaurants and shops, including the city’s first Neiman Marcus 3–4. The 143 two- to sixbedroom condominium residences starting on the 53rd floor start at $5M 5. A rendering of The Grand, Related’s new mixed-use project in Downtown L.A., which features architecture by Frank Gehry and is slated for completion in 2021 5 CSQ Q2 2019

FOUR SEASONS ESTATES CAYE CHAPEL Location: In the heart of Belize’s marine sanctuary, ona private island. About: A total of 50 Four Seasons Private Estates blend indoors with outdoors on the 280-acre island. Stretching for 2.5 miles, the property will also host a 100-room Four Seasons Resort, 35 Private Residences, a private airstrip, a Fabien Cousteau Nature and Conservation Center, an 18-hole Greg Norman golf course, a harbor and marina village, and a multitude of dining options. Timeline: Scheduled for completion in 2021. Pricing: From $2M

cayechapel.com

Real Estate & Finance - Breaking Ground REAL ESTATE

Breaking Ground New resort develop ments launching around the world. By Samantha Brooks

RESIDENCES AT BAHA MAR Location: On the northern shore of New Providence Island, on one of the best beaches in the Bahamas, Cable Beach. About: The development contains three hotels: Grand Hyatt, SLS, and Rosewood, with the latter two offering a select number of residential options available for sale, ranging from one-bedroom studios to eight-bedroom homes and waterside villas. While the Rosewood Residences pay homage to Bahamian island estate architecture, the SLS residences are more contemporary in their design. Timeline: The SLS was completed in November 2017, while the Rosewood was fully completed in December 2018. Pricing: From $850,000 (SLS Baha Mar) and $995,000 (Rosewood).

residences.bahamar.com

REAL ESTATE & FINANCE

SUSURROS DEL CORAZÓN Location: In Punta Mita, about 25 miles from the Puerto Vallarta airport and within the gated development that also contains a Four Seasons and St. Regis. About: Just 30 beachfront residences on 33 acres. Home types range from Beach Casitas (3–4 bedroom homes, directly on the sand) and Presidential (a single 8,340-square-foot, six-bedroom home) to Hacienda Villas (6,320-square-foot homes perched on a cliff) and Ocean Bluff Villas (up to 3,600 square feet of space stacked in a three-story structure). The community will also contain 59 hotel suites from Auberge, all in a bohochic-luxe style the region has become known for. Timeline: Scheduled for completion in 2020. Pricing: From $1.95M

susurrosresidences.com

Real Estate & Finance - Breaking Ground SIX SENSES CRANSMONTANA Location: In the heart of the Swiss Alps. About: Notoriously difficult purchases for non-Swiss residents, real estate opportunities for foreigners are few and far between. This rare opportunity allows just 17 residences to be sold to foreign investors as second homes in one of Europe’s most renowned ski areas. The design team of AW2 Paris and GRANITE PLACE Location: In Crystal Bay, on Lake Tahoe’s Nevada side. About: Granite Place is part of the first phase of Boulder Bay, a mixed-use redeve lop ment project that is bre athing new life into the area with its 59 residences, 275-room luxury hotel, and 20,000-square-

CSQ Q2 2019

JP Emery & Partners Architecture is responsible for the modern take on traditional Alpine design, with quartzite stone façades, local larch and oak woods, and slate roofs. A 47-room Six Senses resort will include a signature spa, open-air cinema, and indoor and outdoor pools. Timeline: Scheduled for completion in 2021. Pricing: From $6.3M

cransmontana-residences.com

foot wellness spa. The 18 residen ces at Granite Place include twoto four-bedroom units ranging from 1,641 to 2,718 square feet. Timeline: Completion in August 2019. Pricing: From $1.65M

boulderbaytahoe.com

NEXTGEN 10 REAL ESTATE & FINANCE

SUPPORTERS

AMINA BELOUIZDAD

CCO, THE PRIVATE SUITE Age: 36 About: Powerhouse who’s fluent in five languages and CCO of the newly built private luxury terminal at LAX (see page 24). Residence: Los Angeles Company HQ: Los Angeles Education: BA, commerce, McGill University; MBA, Wharton School of Business. Industry: Hospitality Awards: Recipient of Richard Frost Award (2012) for intellect, integrity, and contribution to Real Estate Program at Wharton. Notable projects: Developing hotels in China. It’s not for the faint of heart. Advice: Life is far too important to be taken seriously. Success: Ultimately, it’s a feeling. It is happiness, fulfillment, and peace of mind. It’s difficult to qualify or quantify. It can be fleeting. Though when you’re there, you just know it. Mentors: Too many to count— both official and unofficial. I’m grateful for all the people who root for me. Local companies you admire: There are so many! A few that stand out are Reformation for their tireless commitment

to sustainability and Netflix for turning an industry upside down. First job: Financial analyst (and employee No. 1!) at Super 8 Hotels Fund in Beijing, China. It is now one of the largest hotel chains in the world, and the founder (my first boss) remains a friend and mentor to this day. An unforgettable and very formative experience. Guilty pleasure: Net-a-Porter In the morning: Every morning, I walk my dogs to Intelligentsia Coffee in Venice (in pajamas and a baseball cap) to order a double macchiato and read the news. I try to be the first one there at 6 a.m. It’s meditative. Before bed: I’ll squeeze in a chapter or so of one of the few books I’m usually juggling. I find it hard to commit to just one. What keeps you up: Usually an excitement for the day ahead. I’ve learned—the hard way—that few things in life are worth losing sleep about. Year ahead: Professionally, to add another airport terminal to our pipeline and continue to grow and define this new category we are creating. Personally, to get certified in grief counseling, so as to have the frameworks to leverage my experience in a way that is helpful to others.

MANAGING DIRECTOR, SAVILLS Age: 29 About: Savills helps organizations find the right solutions that ensure employee success. With services in tenant representation, workforce and incentives strategy, workplace strategy and occupant experience, project management, and capital markets, Savills has elevated the potential of workplaces around the corner, and around the world, for 160 years and counting. Shay has represented tenants across a variety of industry sectors, including technology, media, and professional services. She develops occupancy solutions that drive productivity and profitability and works with many women-led start-ups. Residence: Los Angeles Company HQ: New York Education: BS, communications and pre-law, Arizona State University. Industry: Commercial real estate. Awards: Executive Leadership Team — The XX Project. Notable projects: Leading Savills West Coast diversity and inclusion initiatives. Advice: Go where you’re celebrated, not where you’re tolerated. Things may come to those who wait, but only the things left by those who hustle. Success: When you can afford to shop at Whole Foods. Mentors: Pete and Shellye Bolton (aka mom and dad). Local companies you admire: SoulPancake, Tala, theBoardlist, The XX Project, The Riveter, The Giving Keys. First job: Working in the mail room at CBRE. Guilty pleasure: Eating a donut after teaching a spin class. In the morning: Hot water with lemon and emails. Before bed: Putting my

NEXTGEN 10

SHAY BOLTON

Photo Credit: Shay Bolton — Laura Grauer

Real Estate & Finance - NG 10

computer on the floor after I fall asleep on it. What keeps you up: The answer to this question used to be everything; my mind would race until 2 a.m. But I’ve learned to shut down and conquer life in the morning. Plus I’m no good to anyone if I’m tired. Year ahead: To continue to promote and empower women in all industries.

BRIAN DE LOWE

Proper brand was awarded a Gold Key Award in 2018 from Boutique Design for “Best Emerging Brand.” Notable projects: Launching Proper Hospitality has definitely been a highlight of my career. Following the success of San Francisco Proper Hotel, we’re launching three new luxurylifestyle hotels throughout 2019. We just opened Santa Monica Proper Hotel in June, and will debut the Downtown L.A. Proper Hotel and the Austin Proper Hotel & Residences in the fall. Advice: Time is the most valuable currency so spend it wisely. Success: When I am happy, fulfilled, surrounded with people I love, and working on something that I am passionate about. This isn’t always the case, and I’m often checking in and reflecting to make sure I’m on the right path. Mentors: No single person, but I try to learn a little something from everyone I spend time with. Local companies you admire: Erewhon—they have a strong purpose, great product, and impressive growth. First job: Hotel valet Guilty pleasure: Red wine and chocolate chip cookies. In the morning: Morning cuddles with my incredible daughter, Amelie, who just turned 2. Before bed: Quiet hang time with my gorgeous wife, Jessie. What keeps you up: Right now, all the thousands of little details we need to get right with respect to the recent opening of our Santa Monica Proper Hotel. Year ahead: Once Santa Monica Proper Hotel, Downtown L.A. Proper Hotel, and Austin Proper Hotel & Residences launch successfully, I’ll be ready for a long vacation.

WILL GREWAL

CEO AND CO-FOUNDER, HOMESTACK

Age: 32 About: HomeStack is a real estate platform that provides apps, analytics, and website services to clients, with 6,000 mobile applications already built that empower millions of users. Residence: Santa Monica Company HQ: Los Angeles Education: BA, business administration, Arizona State University. Industry: Real estate Awards: Sigma Chi fraternity— raised more than $3M for Huntsman Cancer Institute since 2005. Notable projects: Successfully bootstrapping HomeStack, a PropTech mobile-first company, and developing over 5,000 native iOS and Android apps in the Apple App Store and Google Play Store. Advice: Learn to sell. Learn to build. If you can do both, you will be unstoppable.—Naval Ravikant. Success: It’s an internal feeling that constantly evolves, and I think it happens when your priorities match real-life outcomes. Right now, my priorities are HomeStack, fitness, deepening personal and professional relationships, and volunteering. You are constantly tracking each with goals and will feel successful

each time a milestone is hit. Mentors: Dana Potter, personal and professional development, along with my co-founder, Matt. Bill Dallas, who taught me the importance of “team, strategy, execute.” Local companies you admire: From a macro level, I admire WeWork, Slack, GitHub, and Zoom to name a few. These companies all pioneered the future of communication and collaboration anytime/ anywhere. From a micro level, I admire Side, a real estate technology brokerage enabling real estate agents and teams with a turnkey suite of systems enabling agents to just focus on prospecting, sales, and client services. First job: Entrepreneurship has been ingrained into me from a young age, but the first “real job” was working at Blockbuster. Going to Blockbuster was always a highlight of my childhood. The excitement of the unknown if a VHS, DVD, or video game was in stock always fascinated me. When I was a teenager I applied, was offered a job, and had a blast developing customer-facing skills operating within a cool work culture. Guilty pleasure: Gambling. People often hear the word “risk” and associate it with a negative connotation, but I do not. I love playing various card games and high-stakes fantasy sports. In the morning: Saying the words “OK Google, turn on my good morning playlist,” followed by a breakfast shake I coined as the “25B Shake.” The shake has 25 supplements containing over 25 billion probiotics. Before bed: Usually a workout coupled with a form of heatstress exposure. I’ll spend 20 minutes in a steam room or a sauna and quickly follow it up with a cold shower. The health benefits from heat stress are insane, and I have noticed it really promotes mental clarity to end the day.

Real Estate & Finance - NG 10 PRESIDENT AND CO-FOUNDER, PROPER HOSPITALITY AND THE KOR GROUP

Age: 39 About: A pioneer in travel trends and an innovator with a vision in eccentric and vibrant luxury hotels. Residence: Santa Monica Company HQ: Santa Monica Education: BS, University of Southern California; MBA, Marshall School of Business. Industry: Hospitality Awards: In 2017, Villon at San Francisco Proper Hotel was given an Eater Award for “Restaurant of the Year.” In 2018, Condé Nast Traveler awarded San Francisco Proper Hotel a Reader’s Choice Award for “Top Hotels in San Francisco.” Condé Nast Traveller (UK) also included San Francisco Proper Hotel on its “Hot List 2018.” The

CSQ Q2 2019

What keeps you up: Twitter. I am addicted to data and Twitter has simplified the way people digest information. Over time, books haveturned into blog posts and now blogs have turned into tweets. I love reading and Twitter has become my real-time, personally curated news source. Year ahead: The first is HomeStack’s “Twenty/2020 Vision.” It is the rollout of our enterprise tech platform in 20 targeted markets by the year 2020. A second goal is to do at least five different types of exercise every week. Exercise can vary from weight training at the gym to volleyball on the beach, or even a class at Barry’s Bootcamp.

MIKE LEACH

Autograph Collection, in Palm Desert, CA—it received a AAA Four Diamond award, named among the “10 Best New Hotels in America” by USA Today, and named one of the “7 of the World’s Most Majestic Hotels in the Desert” by Architectural Digest. Advice: “Small ideas are easy. Embrace big ideas. They’re the ones people will remember.” Also, “You don’t have to be an asshole to be successful in this business.”—Robert Leach. Success: When I overhear a guest at one of our hotels say, “Wow.” That “wow” took years and years behind the scenes—clawing, battling through thousands of nos, refusing to quit—to take an idea and turn it into something amazing. Mentors: My dad and business partner Robert Leach for teaching me everything I know about real estate; my brother Tom Leach for changing the entertainment industry; my college entrepreneurship professor Grampa Fred Kiesner for making me think like an entrepreneur; and my mom Linda Leach for showing me how be a good person. Local companies you admire: Media RED; The Stephanie Younger Group; Helkey Media. First job: 1996 (8 years old), my brother Tom (11 years old) and I took a loan from my parents to buy Beanie Babies wholesale and sell them to neighbors, relatives, and classmates. We made a healthy profit. Guilty pleasure: Bad reality television. In the morning: Kiss my wife good morning. Before bed: Kiss my wife good night. What keeps you up: Government incompetence; obstinate neighbors (NIMBYs) Year ahead: Break ground on our first waterfront hotel in the Bay Area; secure financing and complete entitlements for a second waterfront luxury hotel project in the Bay Area.

DONAHUE PEEBLES III

SENIOR ASSOCIATE OF DEVELOPMENT, WASHINGTON, DC, METRO AREA, THE PEEBLES CORPORATION

practices, in the ability to constantly sharpen yourself and respond to changing circumstances. Success is much more of a behavior, much more of a practice, like breathing or going for a run. You are practicing success much more than a quality or a virtue. One can also practice success in different contexts, sometimes in career, sometimes in relationship or family, but to look at success as a binary, questions arise like success for what, for when, and for how long? Mentors: Don Peebles; everybody in my life actually is a somewhat of a mentor, a lot of people that I spent time with are inspirational that I try to model myself after, including my friends, my colleagues, my counter parties, or authors that I read. I try to use all that information to grow and learn from. Local companies you admire: I really look up to Donohoe Company (fifth-generation family business, vertically integrated real estate firm, general contract, developer, operator); they complete projects with a ton of integrity and are great, capable partner. What makes a great company, besides profit, is value, integrity, effort, and ethics in the long term. First job: Working as a receptionist after school at The Peebles Corporation in sixth or seventh grade. No matter what you’re doing, do it with passion and details; even if you are a receptionist, you have to be the best receptionist that you can be. You do it to the best of your abilities, and you do it like it’s the most important thing. Guilty pleasure: Every now and then, bi-weekly, on the weekend, I will just decide to go to another country. I do these weekend trips where I leave Friday after work and come back Sunday night, and I’ve gone crazy places, like Iceland, Morocco,

VP, DEVELOPMENT AND MARKETING, WEST RIVER HOTELS Age: 31 About: Specializes in branded content and applies that creativity to the real estate industry. Residence: Los Angeles Company HQ: Los Angeles Education: BA, screenwriting, Loyola Marymount University; MFA, film and television producing, UCLA. Industry: Real estate Awards: See below Notable projects: Hotel Paseo, which is part of the Marriott

NEXTGEN 10

Photo Credit: Christie Pitts — Liz Caruana Photography

Real Estate & Finance - NG 10 Age: 25 About: As the son of our Visionary of the Year, Donahue Peebles II, this entrepreneur and DC development executive from The Peebles Corporation has real estate in his blood and is spearheading the company’s affordable housing project. Residence: Washington, DC Company HQ: New York Education: BA, economics, Columbia University. Industry: Real estate Awards: Legacy Community Development Award Notable projects: Affordable housing units, youngest recipient of low-incomehousing tax credits. Advice: “Respect is opportunity in disguise.” – Don Peebles. “Conscience does make cowards of us all,/ And thus the native hue of resolution/Is sickled o’er with pale cast of thought.”— Hamlet, Shakespeare. Success: It’s challenging to look at success as a binary. Success is more manifested in habits and

London, Paris (Morocco is my favorite by far). Every country that I go to, I play a lot of basketball there. I have a lot of international friends and meet tons of locals, and I just go out there, meet people, and have a good time. In the morning: Get up, brush teeth, rub some water on my face, and go to the gym. Before bed: I read something that’s not work related. I’m reading a lot of Tolstoy. I’m currently reading War and Peace. I like the narrative. What keeps you up: I’m either at dinner too late or I’m reading. Year ahead: I’d like to see some of my projects break ground in this calendar year. Personal goals include some books I want to get through, and a couple of fitness goals, like running a competitive 10K in a certain amount of time.

CHRISTIEReal PITTS

marketing, and humanities, San Jose State University; MBA, University of Phoenix. Industry: Venture capital, private equity. Advice: Go to bed. Every problem that I face, whether personal or professional, is easier to address after I’ve had a good night’s sleep. Success: Success is not a milestone. It’s not like a race where there’s a clear finish line. It’s important for me to do impactful work that I care about. I choose this every day. I also believe that effort drives results, so putting the work in every day is what leads to longterm fulfillment. Mentors: My mother and father, my business partner Arlan Hamilton, and my coach Amy Logan. Local companies you admire: The Riveter First job: Cleaning the dining room and the bathroom at In-N-Out Burger. Guilty pleasure: Staying home and binging shows on Netflix. In the morning: Breakfast Before bed: A hot cup of tea. What keeps you up: Worrying about people in my life that I care about or situations where I have little control. Year ahead: Continue to invest in underrepresented founders and help our existing portfolio reach new heights.

GENERAL PARTNER AND CEO, BACKSTAGE CAPITAL

CSQ Q2 2019

Setting the Table, and the

culture and type of hospitality that he wanted to deliver was so authentic, genuine, and human-to-human. First job: I was 9 years old. My dad bought a Martin’s potato roll route—it was the first business he owned and he still owns it to this day. I worked on the back of the truck delivering bread to stores and restaurants. I learned so much about hospitality and sales on that route from such a young age. Guilty pleasure: Carvel ice cream with my son. In the Morning: I check my phone, walk my dog, have a coffee, and then go to the gym. Before Bed: I meditate or read. And sometimes, if I’m putting my son to bed, I just fall asleep with him. What keeps you up: I ask myself, “What’s next?” I spend more time thinking about the future than the present, and I’m always trying to anticipate what is next. The challenge for us is how to scale talent and culture as an infrastructure. Year ahead: 1. Do a better job of being present and spending quality time with my kids and my wife. 2. Accomplish all of the big things that Convene set out to do this year.

Estate & Finance - NG 10

RYAN SIMONETTI

Age: 34 About: Backstage Capital believes in and invests in companies led by women, people of color, and LGBTQ founders. Residence: Oakland, CA Company HQ: Los Angeles Education: BA, business,

Age: 38 About: Convene offers companies and tenants access to a network of best-in-class work spaces. Residence: New York Company HQ: New York Education: BBA, finance and economics, Villanova University. Industry: Hospitality Awards: Real Estate Forum’s “50 Under 40”; Inc. magazine’s “30 Under 30”; “Top Entrepreneur” by Crain’s New York Business; and finalist in EY’s “Entrepreneur of the Year” New York. Notable projects: Growing Convene from a 2-person to 650-person company. I’m so proud to see that we grow people from within by developing their skill sets and giving them a place to explore their passions. We have employees who started as part-time operations employees who are now in management positions. Advice: Before Chris Kelly and I founded Convene, we went to Aretsky’s Patroon and had lunch with Ken Aretsky for advice about the hospitality world. He told us three words: “Hello, coffee, goodbye.” It’s all about those touch points. He told us that the most important person is the doorman, because he or she sets the tone for the hello and goodbye. We never forgot that. Success: It’s about reaching your full potential. That happens over time. Mentors: My dad. The general counsel at Gramercy Capital, especially Michael Kavourias. Scott Rechler. Frits Van Paasschen, the former CEOof Starwood Hotels and Resorts, has also been friend and strategic partner to me. Janette, my executive coach. I wouldn’t be where I am without her. Local companies you admire: I’ve always admired Danny Meyer, because my favorite restaurant is Gramercy Tavern. One of his first books was

CEO AND CO-FOUNDER, CONVENE

PROPHET WALKER

CEO, TREEHOUSE CO-LIVING

Age: 32 About: The company strives to create community within its buildings and offers affordable, fully furnished communal living spaces with private bedrooms and bathrooms. Residence: Los Angeles Company HQ: Los Angeles Education: BA, civil engineering, Loyola Marymount University. Industry: Real estate Awards: At the age of 16 I was sentenced to six years in prison. While I was incarcerated, I worked with a group of people to cocreate and stabilize a college program inside. This resulted in a massive achievement for me, being among the first graduates to receive an associate degree. This also laid the foundation for me to attend Loyola Marymount’s undergraduate school of engineering. Lastly, an honor that remains unreal to me is being invited, by first lady Michelle Obama, to the State of the Union address as one of her 20 guests in the entire US. I was recognized for the work connected to justice reform. Notable projects: The Ace Hotel Downtown Los Angeles; a six-story underground robotic parking structure; an award-winning UCLA medical facility; and the buildout of Locol Watts by a construction company I co-owned. I have also worked on a college program for people incarcerated, built summer camps in Watts, and helped, in a very small way, to better community and police relations in Los Angeles. This all leads to me running for the California State Assembly, and after coming in second place, I went on to start Treehouse with Brent Gaisford and Joe Green. Advice: The best advice I ever received was when my grandfather told me, “It’ll be all right or not.” Success: Success in the

traditional sense is not particularly important for me. I want to work hard at everything I do and hopefully impact people positively along the journey. Mentors: In general, I find every interaction as an opportunity to learn or explore new territory within myself or the world. So, by effect, mankind is my mentor. Local companies you admire: Frank Gehry for his incredible attention to detail and ability to play with geometric shapes in ways architecture has never experienced. I also admire Backstage Capital, which invests in startup founders who identify as a woman, person of color, and/or LGBTQ. I also deeply admire Olympia Auset, who opened an affordable organic grocery service and pop-up shop, called SÜPRMARKT. Finally, I love what the women who run Quilt are doing. They are bringing community into many women’s homes in Los Angeles. It’s empowering, thoughtful, and timely. First job: A Hollister store model, after being incarcerated from the ages of 16 to 21. I quit shortly after because of the guilt I felt for lying on my job application about being incarcerated. Guilty pleasure: I love sneakers. I tend not to be concerned with what I wear or seek fashion as a device to say something about who Iam. Sneakers are the only part of what I wear on a day-today basis that I feel translate something about myself or even my mood that morning. In the morning: I give myself 30 minutes to think about how I can best contribute to our collective efforts at Treehouse. I then do some light reading on memory enhancement, coliving, hip-hop culture, market trends, and I am a silent political junkie so I read all I can about hyper-local politics and national. Before bed: If it’s been

a tough day, I watch stand-up comedy before bed. What keeps you up: Thinking about whether we are doing everything possible to create a community where people will feel safe, connected, and inspired. Year ahead: To support my daughter having an incredible first year of high school. Inrelation to Treehouse, my goal is to create a community deeply tapped into and motivated by kindness.

JAMES KLEEMAN

sing your value system, you are successful. It can be a constant state of being. Mentors: I’ve not had the fortune of having a specific professional mentor, but I do credit one person for starting my career and giving me the tools and confidence to carry on. I interned for Marcia Lee Kelly when I was 20 years old. She believed in me and gave me amazing opportunities and tremendous responsibility at the time. She taught me everything she knew and then gave me a full-time job before my junior year of college. Working full time in NYC at 20 years old, meeting incredible people, and working on the best projects, all while finishing school full time at night was all quite the experience. It had a profound effect on me and who I set out to be in New York City. Local companies you admire: There are so many, but they all have one thing in common: The entrepreneurs who start them aren’t just looking to disrupt a market and chase the money. The essence of who they are and what they believe is what gives birth to their brands. I’m a big believer in the “who” behind the “what” that makes or breaks a company. First job: Marketing coordinator for the Time Warner Center project with the Related Companies. Guilty pleasure: Zillow, Trulia, and StreetEasy. I spend way too much time on those apps just poking around other people’s houses. In the morning: News and emails. Before bed: Podcasts What keeps you up: Nothing. I’ve learned to think of my brain like a chest of 100 drawers. At night, I tuck them all in and it’s time to recharge. Year ahead: Meditation.

Real Estate & Finance - NG 10

NEXTGEN 10

DIRECTOR, EMERGE212 About: Emerge212 elevates the office experience with seamless, personalized design solutions and customizable lease options. Age: 36 Residence: Llewellyn Park, NJ Company HQ: New York, NY Education: BS, marketing management, Pace University, Lubin School of Business; MS, real estate, New York University Industry: Real estate Advice: Have the courage to live a life true to yourself, not the life others expect of you. Success: It is never a goal or destination. When you are putting your talents to work, staying humble and eager to learn, and not compromi-

NEXTGEN UPDATES

KATHLEEN CAHILL NOAH ISAACS AND JOHN MEADOWS

CO-FOUNDER AND VP OF PRODUCT, CREXI CREXi was named among Built in LA’s “2019 Best Places to

CLASS OF 2018

Work” in the small-company category.

What’s new with previous Real Estate & Finance NextGen10 honorees? CSQ checked in with some who have seen recent successes.

MARK ANTHONY THOMAS

By Jayson Hugh

SOLUTION OWNER, CUSHMAN & WAKEFIELD Cushman & Wakefield recently secured a 115,000-squarefoot lease on behalf of North American Properties. In 2018, Cushman & Wakefield had revenue of $8.2B across core services of property, project management, leasing, capital markets, and more.

Real Estate & Finance - NG 10 TUCKER HUGHES

CO-FOUNDERS, BOWERY VALUATION

PRESIDENT, PITTSBURGH REGIONAL ALLIANCE

Earlier this year, Bowery Valuation raised $12M in a Series A funding round. The firm has positioned itself as the world’s first tech-driven commercial real estate appraisal firm and continues to build momentum.

Formerly senior vice president of partnerships for the New York City Economic Development Corporation, Thomas was named president of the Pittsburgh Regional Alliance, the economic development marketing affiliate of Allegheny Conference. In this new position, he will oversee the development of strategy, partnerships, and investments for 10 county regions.

LUKE MORRIS

MANAGING DIRECTOR, HUGHES MARINO In 2018, the Orange County Business Journal named

Hughes Mario the best place to work in the medium-company category for the third year in a row.

CSQ Q2 2019

VISIONARIES LOS ANGELES

RISING REALTY PARTNERS Founded 2011 Employees 36

NELSON RISING CO-FOUNDER AND CHAIRMAN, RISING REALTY PARTNERS CHRISTOPHER (CHRIS) RISING CO-FOUNDER AND CEO, RISING REALTY PARTNERS

Elevating the Conversation With a $300M commitment to invest in Los Angeles and eight other Western U.S. markets, Nelson and Chris Rising of Rising Realty Partners see a golden opportunity for sustainability. By Jason Dean

CHRIS RISING Age 50 Hometown La Cañada Flintridge, Calif. Residence Pasadena, Calif. Family Anna-Christine (wife), Arianne (daughter), Annelise (daughter), John-Carl (son) Education BA, history and political science, Duke University; JD, law and real estate, Loyola Law School First job Pillsbury, Madison & Sutro

Real estate was not Chris Rising’s first, or even second, option. Despite the fact that his father, Nelson Rising, had earned considerable success and a reputation that would suggest an easy path into the industry, young Chris had other plans. After all, when the legendary Steve Spurrier selects you as one of the first recruits of his collegiate football head-coaching career, something special is likely percolating. Chris never made it to the National Football League, but he gleaned plenty of life lessons while playing for Spurrier at Duke University—lessons core to how he conducts his business today. After coaching briefly at the high school level, he earned a law degree, discovered he wasn’t passionate about law, and finally, in his late 30s, and joined his father at MPG Office Trust. Not long after exiting MPG, the pair cofounded Rising Realty Partners, with the sole purpose of creating great places using impact-focused strategies. The company decreases its environmental footprint by incorporating sustainable practices into every asset; integrates cutting-edge technology to drive efficiency; and implements strategic wellness programs to increase tenant satisfaction, retention, and well-being. Father and son attribute the firm’s success to the culture they instilled from day one. “Chris shares the same values as I do,” Nelson says. “You must always treat people fairly.” CSQ had the opportunity to connect with Chris and Nelson about career paths, technology, and Los Angeles’ status as a hotbed of interconnected innovation. As a lifelong Angeleno, he is a staunch advocate for the city’s upside as preparations for hosting the 2028 Olympics kick into overdrive.

Real Estate & Finance - Rising 1

NELSON RISING Age 77 Hometown Born in Queens, N.Y.; raised in Glendale, Calif. Residence Pasadena, Calif. Family Sharon (wife), Christopher (son), Jonathan Matthew (son) Education BA, economics, UCLA; JD, UCLA Law School First job O’Melveny & Myers Mentors Warren Christopher

2 56

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What was the impetus for becoming so di rectly involved in the revitalization of Down town L.A.? Chris: Southern California and Los Angeles

are just in my DNA. When I was young, my dad got involved in politics and in 1973 he was campaign manager for Tom Bradley’s winning run for L.A. mayor against Sam Yorty. Since that time my father was deeply involved with Tom as a personal advisor. He had fights with Henry Waxman about the Red Line, going back to 1973. I grew up with it; it’s where I’m from.

Other than the four years I lived in North Carolina when I went to Duke, I’ve lived in Southern California my whole life: Manhattan Beach, Santa Monica, Brentwood. I grew up in Glendale and spent time in La Cañada and Pasadena for the past 15 years. I think the city we are becoming by the time the Olympics hits is going be the city of the future for the globe because we will have connected ourselves in ways that other cities haven’t.

How has the father/son dynamic been im pacted by being in the same industry/ business? Nelson: I was very pleased when Christopher

chose to join me in real estate. We’ve had a wonderful working relationship—much more than father/son—and we do have a great father/son relationship. Over the many years we have worked together, on a day-to-day basis, our relationship has developed a deeper trust and confidence in one another. What have you learned from each other? Chris: As I grew up, I watched my father as he

and his partners built the tallest building and he was the partner in charge of Library Tower [now U.S. Bank Tower]. I watched my father being involved with city council people and county supervisors. He was the chairman after Eli Broad of the Grand Avenue Committee. I’ve learned so much over the years. Nelson: Chris is much more up to speed on embracing and integrating modern technology into our office and our properties, which has been a very helpful lesson. It’s helped me to be more efficient in my day-to-day work.

Chris: What’s changed dramatically is that

today companies look at their office space as part of how they attract employees. The office space is as important as the benefits package and the salary. Today when we do tours, one thing that is so markedly different is that, depending on the size of the company, it’s usually a committee, with a lot of HR people, and not the CEO ... talking about how they can create an environment that will draw the best employees. In the past, the location needed to be near a CEO’s residence, town club, or country club. It didn’t really matter about the employees.

What opportunities do you see in the West ern U.S. markets, and Southern California in particular? Chris: Our company goal over the next three

years is to invest $300M of equity in nine markets, five of those in California: San Francisco, Silicon Valley, Orange County, San Diego, and Los Angeles. The others are Salt Lake City, Denver, Portland, and Seattle. California is the most populous state—it has a strong millennial demographic, great universities, and some great public-private partnerships with public transit. It’s unbelievably diverse. Do your personal feelings about climate change and the environment influence deci sions you make on behalf of your business? Chris: I believe the climate is changing due to

Real Estate & Finance - Rising Is there a shift in how physical workspace decisions are being made, and how does that affect the larger dynamic of the work force?

human beings’ production of carbon, creating greenhouse gases. This millennial generation believes in climate change. They’ve seen grandparents die from being in buildings that had asbestos and lead paint. They don’t want to do that. We believe adhering to LEED Platinum standards drives tenancy and occupancy and creates community, so that’s why we do the things we do. end

1. Chris Rising thought to pursue a career in football or law before joining his family’s real estate firm 2. Nelson Rising formed his company with the sole purpose of creating great places using impactfocused strategies 3-5. Some of the Risings’ other projects include The CalEdison DTLA (3); a rendering of the Trust Building, which is currently under renovation (4); and the Civic Center Plaza in Denver, which they acquired in June of this year (5)

CSQ Q2 2019

5 57

VISIONARY NEW YORK

Staying Power

PAMELA LIEBMAN PRESIDENT AND CEO, THE CORCORAN GROUP

After 35 years at The Corcoran Group, Pamela Liebman proves that staying put isn’t the same as standing still. By Subrina Hudson

For 35 years—19 of them as president— Pamela Liebman has been at the The Corcoran Group, one of the leading residential brokerage firms in New York City, pulling in more than $21B in sales annually. The firm has grown to 2,200 agents across 40 offices, serving Manhattan, Brooklyn, the Hamptons, the North Fork of Long Island, and Shelter Island as well as Florida’s Delray Beach, Palm Beach, and West Palm Beach. The brokerage also operates New York rental firm Citi Habitats and Corcoran Sunshine Marketing Group, a full-service, new-development marketing and sales division whose portfolio includes 30 Park Place, Four Seasons Private Residences NY Downtown, 56 Leonard, 53 West 53, and through a partnership with Related Companies, Hudson Yards residential properties. Liebman got her start in real estate shortly after graduating from the University of Massachusetts, Amherst, joining Barbara Corcoran’s eponymous firm in 1984 when she was 22 years old. She quickly stepped into a management role and by 1990 was named partner. Liebman is credited with launching the firm’s new-development arm, then called Corcoran Marketing Group, which acquired The Sunshine Group in 2002 to create Corcoran Sunshine. She also led the negotiations behind Corcoran Group’s sale to NRT LLC, a subsidiary of Realogy Corp., for $66M in 2001.

Real Estate & Finance - Liebman

PAMELA LIEBMAN Age 57 Hometown Staten Island Residence New York Family Michael Krouse (husband), Tori (daughter), and Dylan (daughter) Education BA, Communications, University of Massachusetts at Amherst First job Corcoran has been my home since the start of my career Mentors Mary Ann Tighe, CEO of the 1 58

REAL ESTATE & FINANCE

Tri-State Region, CBRE. She’s an extraordinarily talented female leader who has served as a great source of inspiration for me. THE CORCORAN GROUP Founded 1973 Employees 2,200

How would you describe yourself as a kid growing up in Staten Island?

If you ask some of my teachers, they might say I was too smart for my own good. I was a bit of a troublemaker. I definitely found a lot of rules I liked to break. I was very outgoing, and I was fortunate enough to go to a very diverse high school. I was president of my high school and I beat the captain of the football team to win the presidency. I have two siblings, an older brother and younger sister, and my mom stayed home with us and went back to teaching special education when we were a bit older. My dad was a CPA so I think he gave me my talent with numbers. Did you always know you wanted to be in real estate?

My mom would’ve said real estate because, when I was very young, 2 or 3 years old, we were walking around Miami and I pointed to a tall building and said, “What’s that?” She said it was a condominium and for the rest of the trip I kept going, “Look, condominium.” So they always had this running joke about me and condominiums. I always knew I didn’t want to be a nine-to-five kind of person. I wanted to do something where I got to negotiate. I wanted to be a sports agent or in real estate or I wanted to run a movie studio. In college, I did some internships working on Wall Street—did not like it—then right after school, I came to work at Corcoran and I’ve been here ever since. The funny story is when Barbara hired me we were very small, only 30 people, and she said I really want to hire you but you don’t seem like the type that’s going to stick around long, and here I am. I’ve actually spent more time at Corcoran than Barbara did, which is sort of crazy.

part of two of the most high-profile Manhattan new development projects in the history of the city, 220 Central Park South, which was the record-setting building, and working with Steve Roth and Ken Griffin, has been a highlight of my career along with working with Steve Ross and the team at Related Companies to market Hudson Yards, which is a game changer for New York. And of course, expanding the brand—buying companies in the Hamptons, South Florida, and Citi Habitats—and I’m very excited about going international with our franchise business. Was there a time in the early years when you had second thoughts about what you were doing?

Never. Never. I’ve always loved it because it’s different every day and I really enjoy working with the agents. Starting out as an agent myself, I’ve never taken my agent hat off. I love to be with them on the street. I love to get involved in the deals and see the properties and be a part of the transaction where I can help. I love the action. I don’t get rattled by crisis. I can stay pretty cool and I think that’s developed more with the longevity of my career. I used to be a much more volatile person. Now I think I’m pretty chill. I know what’s really important and what’s not and it takes a lot to rile me up now. What advice would you give a young person wanting to get into real estate?

ple don’t know how to talk to each other and they antagonize each other. Then there are deals that never should happen, but they do because of the way people work together. It’s a relationship business and you really need to be able to bring value. How has success changed or evolved for you over the years?

Obviously, becoming the president and CEO of the company was amazing, but when Barbara made me a partner in 1990 that was pretty extraordinary. I knew this was the place that I wanted to stay and even though I’ve been offered many positions through the years I’ve never felt the urge to leave. I love the people here and I consider myself very fortunate and I’m given a lot of leeway by the parent company to do what I need to do to keep Corcoran on top. What is your definition of success?

I think I tie my success to the success of the firm and my people. Are they happy? It’s not all about the money. What does the public say about us? What do our employees and agents say about us? When someone says to me, “You have the best people,” that makes me really proud, so my success is very much tied to how happy the people are here. Was there ever a situation you wish you had handled differently?

There’s probably tons of them, but personally, that I didn’t buy at 15 Central Park West. I’m always so busy looking out for the company that I’ve made some mistakes not putting my money where my mouth is. I wish I probably invested more in the buildings that I thought were really going to take off. Believe me, I’ve invested in plenty of them, but I certainly missed some of the big ones.

Real Estate & Finance - Liebman

What are some of your career milestones?

Founding Corcoran Marketing Group then buying The Sunshine Group and merging them together was hugely impactful for my career and for the trajectory of Corcoran because we’re really the platinum standard for new-development marketing. I think being

I had lunch with Corcoran’s summer interns and one thing I was saying to them that’s never changed is you need to be smarter than your customer and being smart today is different than it was back then because back then we were the keeper of all the information. They had no means of verifying it. Today, everything is transparent so they have all the information. So, I’d say you need to be smarter than the clients, or more well informed. You need to have great market depth and you also need to be able to interact well with people and create great relationships. There’s a lot of deals that don’t get done because peo-

What excites you about your career now?

I’m excited about going international with our franchise. I think that’s probably the thing I’m most excited about today and I’m always excited when I can do a deal on the golf course. That makes really happy. end

1. Pamela Liebman has been president of The Corcoran Group for 19 years 2. Liebman with her husband, Michael Krouse 3. Receiving the REB NY Gerrety Humani tarian Award

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VISIONARIES LOS ANGELES

All in the Family

ALAN FUERSTMAN FOUNDER, CHAIRMAN, AND CEO, MONTAGE INTERNATIONAL

The father-and-son team behind the Montage and Pendry hotel brands, Alan and Michael Fuerstman, discuss building brands and family bonds.

MICHAEL FUERSTMAN CO-FOUNDER AND CREATIVE DIRECTOR, PENDRY HOTELS & RESORTS

By Samantha Brooks

Real Estate & Finance - Fuerstman

Celebrating its 16th anniversary this year, Montage Laguna Beach marked a new era of luxury hotels. Relaxed, unbuttoned, in tune with its destination, and known for top-notch service, the brand was an instant success when Alan Fuerstman debuted it in 2003. Now, with six hotels and residential developments currently open, the brand plans to double its portfolio in the next three years, with openings under development in Healdsburg, California (2020), Big Sky, Montana (2021) and La Quinta, California (2021) announced. Meanwhile, its sister brand, Pendry Hotels & Resorts, launched in 2017 by Alan’s son, Michael, has already opened properties in San Diego and Baltimore, with plans for New York (2021), Natirar, New Jersey (2021), Park City (2021), and West Hollywood (2020). Here, from a suite at Montage Beverly Hills, they share with CSQ their paths to success and plans for the future. 60

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ALAN FUERSTMAN

MICHAEL FUERSTMAN

Age 62 Hometown New Milford, NJ Residence Laguna Beach, CA Family Married, 4 children Education Gettysburg College First Job Doorman at Marriott hotel in New Jersey

Age 36 Residence San Juan Capistrano, CA Family Married, 1 child Education Tufts University First Job Pool attendant at Bellagio Hotel

MONTAGE

PENDRY

Founded 2002 Employees 4,411 (Montage International)

Founded 2017 Employees 766

What first got you interested in hospitality? Alan: As a senior in high school, I got a part-

time job as a doorman at a Marriott hotel in New Jersey. I worked there as a bellman during my college summer breaks, and after graduation in 1978, I moved to California with a friend with the intent to stay for a year before going to graduate school. When I got to California, coincidentally the General Manager I had worked for in New Jersey was in the process of opening a Marriott resort in Rancho Mirage. He persuaded me to take a position opening the resort as its first bell captain. Gaining much insight from him and through that experience, I fell in love with the hotel business. I decided not to pursue more schooling and entered Marriott’s management training program. Over the next decade, I went on to work at five Marriott properties in various departments such as, housekeeping, front office, and food and beverage, developing my skills and progressing my career towards hotel general manager. My career with Marriott culminated in opening Marriott Desert Springs as Resort Manager. From there, I was recruited to be the General Manager of the then Sheraton El Conquistador Resort and Country Club in Tucson, Arizona. In that role, I got involved in resort development in addition to my management responsibilities. In my mid-thirties, I became President and Managing Director of The Phoenician in Scottsdale, Arizona where I oversaw multiple hotels and resorts and continued my resort development responsibilities. In my early forties, I went on to open Bellagio in Las Vegas as the Vice President of Hotel Operations. Michael: I can’t remember life without the hospitality industry. My earliest memories are running around hotels with my dad. I pulled the fire alarm during the pre-opening at the Warner Center Marriott, I’d visit him at work in Palm Desert and have a drawer full of Legos to play with. My first job was as a pool attendant at the Bellagio when I was 16. I was always fascinated by hotels, but when

it came time to go to college, I was choosing between Tufts University in Boston or The Hotel School at Cornell. I opted for Tufts, to explore if there was something else out there for me. I studied Political Science. In 2006, while finishing school, I started a mobile social networking site, Ssocialmonkey.com, that was like Foursquare before Foursquare existed. It was pre-iPhone, pre-GPS. We had an initial amount of success that fizzled quickly, and we had to shutter the business. I moved out to LA, bummed out after the failure of my startup. At this point, my dad had launched Montage Laguna Beach, and was working on the development planning for Montage Beverly Hills. I attended an owner’s meeting with him on a whim, and for the first time in my life saw the makings of building and developing a hotel…a room full of people discussing guest experience, design, value engineering decisions. I instantly fell in love with the development side of our business. I begged our development partners, the Athens Group, to let me intern with them—unpaid. I was about 22 at the time and learned a lot, mostly in project management.

How did you go about launching your brands? Alan: I had been thinking about creating

a luxury hotel company for a few years before I launched Montage Hotels & Resorts in January 2002. My take on ultra-luxury at the time was that old-world traditional luxury was too pretentious and stuffy. I sensed that the next generation of luxury consumer was looking for a more gracious and humble approach with a less-scripted style. I felt that as the dominant luxury companies, like Four Seasons and Ritz-Carlton, were getting larger, there was room for a smaller highly personalized luxury brand where each hotel and resort had a distinctive sense and spirit of place. I always had an entrepreneurial mindset and had learned from my experience at The Phoenician what incredible value could be created when the right hotels are combined with an extraordinary service culture. The Phoenician was valued at $240M when I got there in 1994 and valued at over $400M when I left in 1998. After 9/11, the hotel industry was hit very hard, and I felt that the timing would be

Real Estate & Finance - Fuerstman

1. Michael and Alan Fuerstman 2. Alan and Michael Fuerstman

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ton. When I toured the property in Laguna Beach, I knew it would be the ideal platform to launch our brand. We were successful in negotiating with Marriott to purchase the property in large part because of the value we saw in the residential component of the project. My original plan for launching a luxury company was to acquire an existing asset and then use its name for our brand and company. With the acquisition in Laguna Beach, the challenge was to select that name. Our advertising agency and PR company offered many, but none resonated with me. Inspired by Laguna Beach’s history as an artist colony, I went on the internet, found an A-Z art reference guide and started searching for the right name. I saw the word “montage”

which meant “artful compilation, collection” and thought it represented what we were creating… a collection of hotels and resorts, as well as people coming together to do extraordinary things. The word “montage” sounded good off the tongue, and the name was born. Michael: A lot of the themes Montage hit on years ago—culinary, spa, sense of place, being comfortable—were forward thinking at the time, but standard now. Fast forward 15 years, and we’ve taken the same forward-thinking mindset to create a complementary new luxury brand. We saw post-recession that luxury was coming back in another way. We wanted to create something for the new luxury guest who has a slightly different value set than the previous

Real Estate & Finance - Fuerstman

3. Alan and Michael Fuerstman at the groundbreaking of La Quinta 4. A historical image of the site of the Montage Laguna Beach

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5. Alan and Michael Fuerstman at Montage Beverly Hills

Photo Credit: Art Streiber

right to launch a luxury brand, provided that I could raise capital to acquire luxury assets. Over lunch with my friend Pierre Omidyar, the founder of eBay, I shared my plans for a luxury hotel company. Pierre decided to invest in hotel assets which enabled me to create what is now Montage. His investments gave Montage a platform to show proof of concept as a brand and operator. We now manage four multiple hotel owners, and Pierre is still a partner in Montage International. In early 2002, I met with the Athens Group who were in pre-development of a hotel in Beverly Hills and were in development of a resort in Laguna Beach. The property in Laguna Beach was being developed for Marriott to be operated by Ritz-Carl-

Real Estate & Finance - Fuerstman

generation’s luxury guest. This new luxury guest cares about design, architecture, art, culture, new culinary trends, pop culture, music…but they also want the service and execution of a traditional luxury hotel. Pendry has a strong point of view on design and aesthetic, each hotel is one of one, and we collaborate with other visionaries in design and architecture. Relative to Montage, a Pendry will still have a great location in an amazing setting, but the style will be different, and the square footage might be less. We set out to build a brand around that positioning and have really found our niche. What makes you successful? Michael: We are passionate about what we

do, and we live it. We spend time traveling and seeing the best that the world has to offer, and we spend a lot of time at our hotels. There is no substitute for being in our own operations. I don’t go more than a couple of months without visiting each of our hotels. On an east coast trip it isn’t uncommon to be in Baltimore, New Jersey, and New York in the same day. Also, I think we have a strong point of view on were luxury is headed and how our customers consume the world. Alan: The foundation for the success of Montage is the service culture and the staff who deliver extraordinary experiences for our guests. Our focus on hiring and learning CSQ Q2 2019

combined with our staff’s passion for creating memorable and highly personalized gracious service differentiates Montage. We are incredibly discerning about the location of our hotels as well as the architecture, design, and amenities. All of our Montage Hotels have had a residential component that has been an essential element to the success of each project. Residential has been in our DNA since our inception in Laguna Beach and will continue to be as we expand our portfolio.

the same time, I appreciated the opportunity and worked hard to make the most of it. In my younger years, it was harder. I think there was a perception, right or wrong, true or untrue, of a son wanting to prove himself. At this point in my career, I’m confident in my own skin, and it feels great to be building something special collaboratively with my dad.

How do you operate in a family business where it’s important to draw boundaries? Alan: The boundary part is important at

inspiration everywhere. Generally, I like properties that are designed by hoteliers with a point of view. Firmdale does a great job. I like Kit Kemp’s hotels—you can see how much they all reflect her style. I appreciate what Schrager has done and how he continues to reinvent himself. Ashford Castle, the old Guinness Estate, is a lovely stay. We have to see the world to stay inspired and keep pushing and innovating ourselves. Alan: I am continually inspired by visiting amazing hotels and resorts across the globe. Whether it is the old world charm of Villa D’Este in Italy, or the bare-foot luxury at the Wakaya Club in Fiji, or the incredible sustainable initiatives and luxury offerings at the Brando in Tahiti…I find inspiration from what others do. end

home. We could talk about work 24/7. It’s not that work is an off-limits topic, but we want to be mindful about not shutting everyone else out of the conversation. We engage all our family members though, and they bring in different and unique perspectives. At work, Michael brings a highly valuable skillset to the organization. Importantly, he takes on his role as my son as a responsibility and not a privilege. It is inevitable that Michael feels an added pressure to perform, but he has exhibited an exceptional aptitude for the hotel industry and has worked amazingly hard to accomplish all that we have with Pendry. Michael: I give my dad all the credit. He made it easy for me early on with enough latitude to do things on my own and fail, but at

How do you seek inspiration from your competition? Michael: There are always little nuggets of

Real Estate & Finance - Peebles

VISIONARY OF THE YEAR LOS ANGELES AND NEW YORK

Words by Matt Pressberg Photos by Noah Stone

Ascending from Coast to Coast Real Estate & Finance - Peebles

The steady rise ofÂ real estate mogul Don Peebles Jr. CSQ Q2 2019

DON PEEBLES Age 59 Hometown Washington, DC Residence Coral Gables, FL and New York Family Wife, Katrina; son, Donahue III (25); and daughter, Chloe (16) On my wrist Roger DuBois Sympathie Platinum In my garage Rolls Royce Dawn; Aston Martin Vantage S; Maserati S Grand Sport

Favorite Book Titan: The Life of J. Rockefeller, Sr. Education Rutgers (left after 1 year) First job Gas station attendant Go-to spot for business drinks Cipriani Fifth Ave. and The Rooftop by JG at the Waldorf Astoria Beverly Hills Awards and distinctions BE Company of The Year; Reginald F. Lewis Award; Wall Street Partnership Entrepreneur of the Year; Johnson and Wales University Honorary

Doctorate of Hospitality Management; Women’s Builders Council Deve loper of the Year Philanthropic causes CARE Elementary School, Miami; New York City Mission Society Can’t-miss conferences and events Forbes 400 Summit on Philanthropy; Black Enterprise Entrepreneurs Summit; Frieze Art Fair New York City and London; Art Basel Miami

Mentors Ruth Yvonne Willoughby (mother); Thomas Willoughby (grandfather); Roy Dona hue Peebles, SR. (father); Hilda McIntosh (aunt); Dr. Carrol W. McIntosh (uncle); Carolyn Cramer (aunt), Anthony H. Cram er, Esq (uncle); Doris Carroll (aunt); Warren Carroll (uncle); Edith Tucci (aunt); Joseph McGrath (teacher and coach); and Richard Dylus (teachercoach); Gus Carter (uncle); Ed ward Gillus, Sr. (uncle).

PEEBLES CORPORATION Founded 1983 Employees 21 direct employees in New York, Washington, DC, and Miami Notable past projects The Residences at The Bath Club, which garnered the highest average price per square foot in the market and largest average unit sized when built. The Royal Palm Hotel South Beach

Notable upcoming projects Angel’s Landing Downtown Los Angeles, the most luxurious hotel and con dominium apartments ever built in the market Collaborative partners SBE/SLS Hotels; CBRE; Deutsche Bank; JP Morgan Chase; Handel Architects; Mandarin Hotels; Douglas Elliman; Compass; The Agency; Rolls Royce Motorcars; Sotheby’s International Realty; Engel & Volkers

Real Estate & Finance - Peebles

Don Peebles Jr. had it all planned out. He was going to major in pre-med at Rutgers University, move on to medical school, and become a doctor to establish some financial security. Then he’d use his income to invest in real estate and get really rich. He even had a role model in his uncle in New Jersey, who had done the same and lived a very comfortable life as a successful doctor. But as a 19-year-old, he had an epiphany: Why not just cut out the first step? He set a goal to become a multimillionaire by the time he would have graduated from medical school at 26 years old. He got there. Peebles, now the founder, chairman, and CEO of New York-based Peebles Corp., is one of the wealthiest real estate developers in the United States, with Forbes estimating his net worth in excess of $700M. But the quiet force and longtime D.C. power player is now stepping into a brighter spotlight with his largest project yet in a land where many come to make it big: Los Angeles. 66

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Peebles, 59, recently visited the location of that project, Angels Landing in Downtown Los Angeles, set to debut in 2024. The $1.6B residential, hotel, and retail complex that sits on a vacant parcel on Bunker Hill will feature an 80-story skyscraper, making it one of the tallest buildings in the Western United States. The plan is to build a vertical community to tie together one of the more disjointed areas of L.A.’s bustling core. CSQ caught up with Peebles at the Waldorf Astoria in Beverly Hills after a long day of site tours to find out more about his path to success—and where it might be headed next. Made in America

Roy Donahue Peebles Jr. was born in 1960 in Washington, D.C., to a 19-year-old mother. His parents divorced when he was five. Although his family struggled financially, his enterprising mother exposed him early on to real estate and politics. She became a real estate salesperson and broker as a way to make extra

money to support the family when they were living in Detroit for a few years, and a young Peebles filed that away as a possibility to support himself in the future. The family eventually returned to D.C., where Peebles got his first white collar job (he’d held the positions of gas station attendant and janitor previously), as a page in the House of Representatives on Capitol Hill during his last two years of high school. He was then an intern for two members of Congress, and during his senior year, served as a full-fledged staff aide for another member of Congress. In order to do that work, Peebles attended a special school for pages. Classes were held on the top floor of the Library of Congress and began at 6 a.m., which meant he had to wake up at 4:30 a.m. to catch the bus. He would be in class until about 10:30 a.m., then cross the street to get to work at the U.S. Capitol. “I got a great education about life, politics, and how the world really works,” he says.

On top of that, Peebles was on the school at age 24. He continued building his real estate basketball and chess teams, which meant he appraisal business, but in 1986 a real estate sometimes wouldn’t get home until 10 p.m. opportunity crossed his desk that would be That was followed by at least two hours of pivotal in his career. He was just turning 26. homework and another pre-dawn wake up It was in an area targeted for economic development by the mayor, with whom Peebles the next day. After high school, Peebles went to Rutgers had a strong relationship. He got the city to University in Newark, New Jersey, where he pre-lease office space in the building. Then, studied pre-med and worked part-time at his he found some investors and got half the deal. uncle’s office and in the local office of Rep. “I understood how politics and business are interconnected,” he says. Peter Rodino. Peebles had been looking at development “I was kind of bored with school,” he says. “I wanted to be busier.” So, at the end of his sites that were owned by the city of D.C. When freshman year, Peebles decided to try real es- he started his appraisal business, he’d taken tate. He planned on giving it a year, going to more office space than he needed because college part time in D.C. and getting his real he got a good deal and sublet extra space to two real estate brokers. One of those brokers estate salesperson’s license. The problem was, this was 1979 when helped him find investors for a development interest rates were 25 percent. Peebles was a deal he was putting together. That deal didn’t get done, but the other great salesman, but few people could qualify for loans to pay for houses. Nevertheless, by subtenant came through with an opportunihis sophomore year, he was dead set on be- ty just in time. “He presented a development site in this area that was targeted [by the city] coming a real estate mogul. for economic development and a letter from the mayor proposing to lease office space to Raising Capitol After leaving school, Peebles shifted gears be built on that site by a developer,” Peebles and hung a shingle in D.C. as a real estate ap- explains. “But the developer didn’t have conpraiser. In 1982, Marion Barry, whom Peebles trol over the site, because he was haggling had befriended as a teenager, ran for re-elec- over the price.” Peebles made a deal to pay the seller the tion as the mayor of Washington, D.C., and won. Since moving back, Peebles had become asking price but asked for more time. He close with several of Barry’s staffers. He was approached the investors from the other deal offered a position as chairperson of the real to ask how they’d like a deal to lease to the estate commission. He wasn’t able to hold government for 20 years. Peebles still owns that role since he was a licensed salesperson the property today, where his son is overseeing and not a broker, but was urged to consid- renovations. Once he did that deal, he left the board er a different position: on the property tax to market and grow his business helping appeals board. The next year, he politically maneuvered property owners appeal their tax assessments. his way to become chairman of one of the Then the S&L crisis hit. It was a disaster for most important real estate boards in D.C., most real estate investors—but not Peebles.

Real Estate & Finance - Peebles 4

1. Don Peebles Jr. in 1968, at the age of 7 2. A rendering of Angels Landing in Los Angeles, which will combine hotel, residential, and retail in an 80-story tower, one of the tallest buildings in the Western US 3. Graduating from Alice Deal Jr. high school in Washington DC. From left: Edith Tucci (aunt), Ruth Yvonne Poole (mother), and Carolyn Cramer (aunt) 4. In 2002 at the grand opening of the Royal Palm Hotel in South Beach. From left: Bruno Barreiro (county commissioner), Alex Panelas (Miami Dade Mayer), Jesse Stewart (hotel GM), Don Peebles Jr., Donahue Peebles III, Gwen Margolis (State Senator) 5. Don Peebles Jr., Mayor Marion Barry, and Douglas Goldsten in 1986

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Real Estate & Finance - Peebles 6

“Property values were plummeting, so my tax appeals business skyrocketed. I was getting a lot of cash coming in,” Peebles says. “So I took the cash and started buying proper ties. Many of my clients lost their properties and the banks would hire us to do assessment appeals. Sometimes I would buy properties from the banks or federal regulators when the banks were closed.” Beyond the Beltway

In 1990, Barry was arrested after being caught smoking crack cocaine in a police sting opera tion. “The politics changed in the city for a period of time, so I had to look at alterna tives,” Peebles says. He got involved in national politics, serv ing on Bill Clinton’s national finance commit tee during the 1992 presidential race. But his old friend Barry had an improbable comeback, winning election as mayor of D.C. again in 1994. At the time, Peebles was negotiating with the city for two buildings. Despite what 68

REAL ESTATE & FINANCE

he says was a far superior offer, Peebles lost the deal. He took it as a sign that the climate had changed for him in D.C. and decided to take a vacation somewhere warmer. He and his new wife, Katrina, headed to Miami. The two of them quickly fell in love with the energy of the city and decided to buy a vacation home there. Again, his timing was perfect, with Miami at the start of a real es tate boom. While spending the holidays at that vacation home, Peebles read about a hotel site in Miami Beach. The Shorecrest Hotel had re cently been purchased for $900,000, but was now on the market for $5M, Peebles recalls. What really caught Peebles’ eye was that the site was situated next to the Royal Palm hotel, which was owned by the city of Miami Beach. The city was looking to develop the site, and its request for proposal called for an AfricanAmerican developer to be majority owner. MiamiDade County was coming off a threeyear boycott led by the AfricanAmer ican community, which targeted the region’s

economic lifeline, the tourist industry. Peebles was the right developer at the right moment. He called the broker who rented him his Miami Beach apartment and said he wanted to see the Shorecrest and get a copy of the RFP for the Royal Palm. Then he went back to D.C. “On the flight back, I told Katrina, ‘Look, we’re going to bid on this hotel project, and we’re going to win it, and it’s going to change our lives,’” Peebles says. Wasting no time, Peebles began composing the proposal on the plane. Peebles approached the team of Hyatt heir Nick Pritzker and Craig Robbins, his biggest competitor for the project, with an offer to work together and build a Hyatt-flagged hotel on the site. But they blew him off. Another local developer said, “there was no way a black guy from Washington, D.C., who hasn’t done anything here was going to win the site,” Peebles recalls. That only motivated him more. They also underestimated his political ability. Peebles was a savvy operator who was experienced in partnering with government entities and capitalizing on opportunities set out for minority developers. He also had some Clinton connections that came in handy. After a hard-fought battle, Peebles was approved as developer of the Royal Palm in June 1996. It was the biggest project he’d ever built. And it turned out that not winning those deals in D.C. was a bigger win. “It taught me the most important lesson,” he says. “Setbacks are opportunities in disguise.” It also forced him out of a comfortable path in D.C. “I would have stayed just like many developers do, in the same place,” he says. “And my life would have been totally different.”

timing was impeccable. The condo craze was exploding, and business was booming. A broker told Peebles that Miami Beach’s historic Bath Club, essentially a country club on the ocean, was in financial trouble and was going to sell. One other thing: It was a “restricted club” that didn’t allow black or Jewish members. “I got to buy a site and also make a point,” Peebles says. To try to survive, the club had its property downzoned to reduce property taxes. Then a law was changed that limited upzoning, which kneecapped its value. However, during his due diligence, Peebles’ team discovered a technicality that eventually allowed him to get the club rezoned. He developed condos on the site and overhauled the club in 2007 to have it function as an event venue. Now, the club is going over another overhaul to relaunch at Art Basel in 2019 as a private club with just 200 coveted memberships being offered. From there, Peebles saw a lot of possibilities and his goals and desires grew bigger and more national. His wife had lived in San Francisco, so he bought properties in the Bay Area. He bought the offices of Internet ad service DoubleClick and sold for twice the purchase price. He also sold the Royal Palm, in December 2004 for $127.5M, the highest-ever price paid at the time for a Miami Beach hotel. (It is now part of Marriott’s Tribute Portfolio line.) He finished work on the Bath Club and sold all of the condos by 2006. When Peebles built his first building in Washington, D.C., he donated 10 percent of the proceeds to a nonprofit community development organization. The head of that organization called Peebles one day to ask his opinion about a condo in Miami. The friend had taken out a second mortgage on his D.C. house to put a down payment on a condo and flip

Real Estate & Finance - Peebles Club Made

Peebles was just getting started in South Florida, and as has been typical in his career, his

6. Don and Katrina in 1992 at the Corcoran Gallery of Art in Washington DC at a fundraiser for Bill Clinton’s presidential campaign, which they co-hosted 7. 108 Leonard in New York 8. In 2015 at the Women Builders Council 9. Working in his New York office 9 CSQ Q2 2019

Real Estate & Finance - Peebles 10

it before closing, because he couldn’t afford largest single building sale in New York City the mortgage. “If that’s who is buying condos, history by the administration of then-mayor all these buildings that I think are sold out are Michael Bloomberg, at 108 Leonard Street. not really sold out,” Peebles says. “The supply “I learned, again, that the public-private deal is even greater than statistics are showing. structure and the political skills I had develWe’re done in this market for a while.” oped as a teenager in Washington, D.C., were very portable,” he says. Escape to New York He started developing in other cities, Peebles was relatively unscathed by the 2008 including Philadelphia, Boston, and Charlotte, financial crisis, but the end of the last decade North Carolina. Now he’s in Los Angeles for was challenging in other ways. He lost both the biggest project of his career and the last parents and an in-law in a two-year period, one he’ll actively lead himself. “The nice thing and he and his wife decided to move to about starting your real estate development caNew York in fall 2011, where he made an im- reer at 19 is that you can have lifetimes of sucmediate impact. In 2013, he was awarded the cess and still be a relative youngster,” he says.

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Real Estate & Finance - Peebles 13

Making an Impact

10. Angeles Landing development site 11. The Peebles’ home in Coral Gables 12. The Peebles’ home in Bridgehampton 13. Don and Katrina at the Phoenix Awards Dinner in 2016 with the Obamas and their children Donahue Peebles III and Chloe Alexandra Peebles

CSQ Q2 2019

Peebles says his proudest accomplishments are his children, Don III and Chloe. Don III is already making his presence felt in the family business. “He’s got me focusing on affordable housing,” Peebles says of his 25-year-old. “He wants to do something to make an impact. I’m very optimistic that the company I’ve built and the values I’ve worked for will evolve into even a better place through the efforts of my children; they are good people.” In response to the lack of gender and racial diversity in the real estate development business and the increasing shortage of affordable housing, Peebles is starting a fund to invest in developers of affordable housing to help address the crisis in cities like Los Angeles and San Francisco. Peebles says supporting emerging, early career developers who are building midsize complexes with units not marketed toward out-of-town investors but working locals can help boost available supply. He’s putting his money where his mouth is, starting a fund focused on urban infill and workforce housing. The fund will invest in projects mostly in the $20M to $50M range. He’s setting

a goal for the fund to do 60 deals, with 10 of those in California, and he’s encouraged by the reception he’s getting from an evolving society. “I see our society finally being compelled to look at things that are wrong and being able to dream about what can be and then going out and demanding it,” he says, admitting it’s both altruistic and good business. “Those projects pay better returns than those big risky projects you’re seeing now,” he says. He also believes more has to be done to open up real estate development opportunities—among the greatest wealth generators— to those who can’t tap establishment networks or rich family and friends to get started. He says that’s not the responsibility of the government, but the private sector. He’s tried to lead by example, showing that being more inclusive can bring greater success. While Peebles has previously expressed interested in running for mayor of New York, that’s not in the cards now. There’s too many deals to be done. Others might want to rest on their laurels after 40 years of real estate development. But that’s why they’re not Don Peebles. end 71

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74 Meetings and Retreats 76 Travel 80 Golf Getaway 83 Health

Stay at the brand-new, 4,000-square-foot beachfront Ty Warner villa at the Four Seasons Santa Barbara this summer, featuring a 150-square-foot outdoorÂ jungle shower. More on page 76.

Destinations

Part 3

Destination TOC

CSQ Q2 2019

MEETINGS AND RETREATS

From its acres of wildflower-dotted fields and “Today, everyone is looking for wide-open dense pine forests to its miles of scenic trails, space. It’s enlightening and freeing,” says LauThe Resort at Paws Up is a retreat like no ra Crugnale, director of events at the ranch. other. A stunning 37,000-acre property once “I see a change in people after they’ve spent explored by Meriwether Lewis (of Lewis and a few days here. They drop all the usual preClark), this working cattle ranch is known tense and get into a more natural state—and for its panoramic views, premium comforts that usually means no cell phones.” While un(camp butler anyone?), and once-in-a-lifetime plugging is not mandatory, a few device-free experiences. days can inspire out-of-the-box thinking. Here, guests are provided opportunities While the ranch is remote and removed to challenge themselves and build rapport from any urban distractions, getting there with one another—whether in an open-air just became much easier. Those looking for yoga class, rigorous half-day ropes course, fly- exclusive, direct access can fly with XOJET, fishing for bull trout in the Blackfoot River, which has partnered with Paws Up for seror navigating a raft down the class III rapids vice to the Missoula International Airport of Alberton Gorge. from 17 cities across the country, including Situated in Western Montana and encom- Los Angeles, New York, Miami, Chicago, and passing more than 100 miles of hiking, biking, Dallas. Additionally, the resort will launch and ATV trails, as well as 10 miles of river ac- a resort-within-a-resort concept next year cess, Paws Up has been serving up an authentic with its new adults-only camp. The modern (yet luxurious) working ranch experience since accommodations complement the existing 2005. It’s presently home to 300 Black Angus rustic ones and allow guests to take in the cattle, 200 bison, and several wwild mustangs. surroundings with floor-to-ceiling windows.

The Resort at Paws Up

Destination - Paws Up

Roughly the size of Manhattan, this luxury dude ranch offers an array of unconventional meeting spaces and activities— as well as a new private jet service and a new adultsonly accomodations slated to open in 2020. By Carolyn Meers

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DESTINATIONS

Location: Greenough, Montana; 33 miles east of Missoula International Airport, which accepts daily direct flights from Los Angeles (2 hours, 40 minutes). The property is about a 7-hour flight from New York with one transfer. A new partnership with XOJET grants direct access from 17 US cities. Keys: Up to 250 guests in 28, multi- bedroom luxury homes and 36 glamping tents Meeting Spaces: 11, including the 10,000-square-foot Bull Barn; the 5,057-squarefoot Cook Shack and the 10-seat Tower Office Boardroom above it; the Lewis and Clark Reception Barn, with 200-seat auditorium; and the 24-seat Bunkhouse (a converted hayloft)

Recent additions to the ranch’s activity list include hatchet throwing, a calf-wrangling team game called Cow Croquet, and a front-row seat to the delicate process of gentling a wild mustang. Called “Horsepower: Where Mustangs and Mindfulness Coexist,” the latter spotlights equestrian manager Jackie Kecskes as she gains the trust of a wild horse. Oftentimes, observers find the lessons Kecskes demonstrates in this one- to two-hour practice—like patience and confidence— applicable to their own personal obstacles. But far and away Paws Up’s most popular adventure is the cattle drive. The four-hour affair herds up to 50 cattle from one side of the ranch to the other. Riding skills are helpful but not required—each guest is paired with an experienced wrangler. “This is on the bucket list of most everyone I’ve met,” says Crugnale. “It’s a hands-on experience that cannot be replicated—it is the real deal.”

Destination - Paws Up

Dining: Pomp (finer dining), Tank & Trough (casual dining), and the Chuck Wagon (mobile dining for glamping sites orcustom outdoor events).

CSQ Q2 2019

2. The Bull Barn offers 10,000 square feet of activity and meeting space 3. Driving cattle is just one of the many activities offered at Paws Up 4. Dining options vary around the property, with numerous areas to meet and unwind 5. The Great Angus Hall can be outfitted and customized for special themed meetings and events 6. The property is located on 37,000 acres, with accommodations scattered through out the property 7. The Hereford Pen feels anything but conventional when it comes to meeting spaces

Amenities: Spa Town, cattle drives, dozens of outdoor activities Contact: pawsup.com

1. Glamping tents are one of the many options for accom modations

8. Accommoda tions include one to threebedroom luxury cabins

TRAVEL

California

Hitting the Road 1

From Southern California’s chic beach towns to the bohemian Big Sur, here’s the latest and greatest along the Golden Coast.

SANTA MONICA – PACIFIC PALISADES – MALIBU

Hotel guests and beachgoers alike will want to stop by the new Rosé All Day bar at Shutters on the Beach. Located directly on the sand, the pop-up will be serving rosé and champagne varietals along with summery bites like long-stem strawberries and watermelon and feta salad. Nearby, the Oceana hotel debuts its $25M makeover by designer Anna Busta, complete with 70 newly designed guest rooms, an outdoor pool and lounge with James Perse

By Samantha Brooks

teak furniture, and a restaurant and bar from Raphael Lunetta. The Pacific Palisades sprang to life last year with the opening of Caruso’s Palisades Village. The 3.5-acre development continues to thrive with the summer openings of Frame denim, cult-favorite grocer Erewhon, and Alfred Coffee. Malibu’s Cross Creek shopping area gets a throwback to its roots with the opening of Fred Segal. The new outpost features a curated selection of California cool clothing and accessories located in the same shopping complex Segal first developed in the early ’70s.

Destination - Road Trip 4

OJAI – SANTA BARBARA

In February the Ojai Valley Inn debuted a $20M epicurean and event center called The Farmhouse. The 30,000-square-foot facility was designed by Napa’s Howard Backen, and Nancy Silverton serves as the venue’s culinary ambassador, curating a variety of experiential culinary events with chefs like Neil Fraser, Dario Cecchini, Ruth Reichl, and Michael Cimarusti throughout the year. More than a decade in the making, the Rosewood Miramar Beach finally debuted its 135 guest rooms and 26 beachfront suites in March of this year. Don’t miss the all-day dining venue from Malibu Farms, the oceanfront Southern Italian restaurant Caruso’s, and innovative 76

DESTINATIONS

retail stores Goop and The Gatehouse, a California concept store curated by James Perse. When the sun sets, head downtown to Hotel Californian’s hideaway bar, Djinn. The Moroccan-inspired intimate library bar features cocktails from Devon Espinosa, who will also bring a monthly cocktail series to the space, called Howl, to coincide with the full moon and include DJ sets and a tarot-card reader. Hide away from it all at the reimagined San Ysidro Ranch, which dates back to 1893 and just reopened after a 15-month closure following devastating wildfires. Long an escape for the likes of Audrey Hepburn, Winston Churchill, and John and Jackie Kennedy, the 500-acre property with 41 cottages renovated 11 of them, and completely rebuilt three

of them with private plunge pools. Spa-goers will want to seek refuge at the Four Seasons Santa Barbara’s new wellness activities. Experience a meditation journey as a guide plays Tibetan and crystal bowls, didgeridoo, and chimes; dance and bend outside with the happy hour silent disco yoga, featuring noise-isolating wireless LED headphones; or relax with a Sound Mind Sound Body Massage, with a full body massage enhanced by vibrations from Peter Hess singing bowls, which trigger healing. Or for an uber-luxury experience, book the new Ty Warner villa (from $11,500). Highlights of the 4,000-square-foot beachfront villa include two outdoor entertaining terraces, a private plunge pool, and a 150-square-foot outdoor jungle rain shower.

1. Fred Segal Malibu

7. Ojai Valley Inn

2. Palisades Village Los Angeles

8. The Post Ranch Inn

3. Hotel Californian

9. Hotel San Louis Obispo

4. Rosewood Miramar Beach

10. Perinet Tasting Experience

5. San Ysidro Ranch

11. Ventana Inn Big Sur

6. Four Seasons Santa Barbara

Destination - Road Trip

12. Hearst Castle

SAN LUIS OBISPO – BIG SUR

New to the Tolosa tasting room is the Perinet Tasting Experience ($45), which combines six wines from Tolosa’s sister winery in Spain. The tasting is meant to feel like a trip to the Piorat winery, located 90 minutes southwest of Barcelona, and includes a tasting f light with exclusives such as the 2016 vintage of 1194, Perinet’s flagship wine, of which only 300 cases were bottled. San Louis Obispo also sees the opening of two boutique hotels this summer. Hotel Cerro will offer rooms, suites, and apartment-style contemporary accommodations, while Hotel San Louis Obispo carries a modern-bohemian aesthetic, CSQ Q2 2019

featuring the works of local artists. No drive up the coast is complete without a stop at Hearst Castle. On the brink of the monument’s 100th birthday next year, the castle is opening its famed Neptune Pool for a handful of dates for guests to swim ($950 per ticket, after becoming a member). Known for its combination of forest-strewn glamping tents and rustic-modern guestrooms, Ventana Inn in Big Sur welcomes guests for the second summer to its SurStream, a mini Airstream located in the heart of the redwoods, offering a full bar with local wines and beer, as well as snacks like falafel and chicken wraps. Adjacent to the inn, the Big Sur Smokehouse opens in July on Highway 1, situated in a restored homestead and offering hearty

fare, from Texas-style brisket and Carolina barbecue to California farm-to-table produce sourced from Gardener Pete’s organic farm up the hill. Across the way, perched above the Pacific, The Post Ranch Inn harkens back to the region’s hippie roots with new therapeutic spa treatments, including sound therapies using vibrations, tuning forks, and meditation, as well as a Big Sur Jade Therapy treatment that uses thermo-therapy to stimulate circulation and relieve sore joints. Meanwhile, its acclaimed restaurant, Sierra Mar, stays true to its fine dining roots, and welcomes new executive chef Jonathan Black, who comes to the property from the Michelin three-star Crenn Dining Group in San Francisco and was previously at Quince and Per Se. 77

TRAVEL

East Coast

Summer Reign

Destination - Hotspots Everything’s coming up roses on the HAMPTONS

Eastern Seaboard, where summer brings a new crop of must-visit hotels, boutiques, and restaurants. By Heidi Mitchell

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DESTINATIONS

With hotels opening from Montauk (aka The End) to Bridgehampton, you no longer need to be someone’s houseguest. The long-awaited renovation of the old Montauk Yacht Club was revealed on Memorial Day weekend as Gurney’s Star Island Resort & Marina, a 107room property that’s truly a full-on resort. With three pools, a kid’s club, a private beach, and Jeremy Blutstein–helmed restaurant, Showfish—not to mention the largest marina in the Hamptons—it will be the place to see and be seen this summer. Bonus: You can take the resort’s yacht service to the brand’s Newport, Rhode Island, property. More lowkey is Bridgehampton’s A Room at the Beach, set on a property originally owned by Alexis Stewart (Martha’s progeny). The 10-room hotel stands two miles from the beach and emphasizes wellness (as opposed to hedonism, like more easterly Hamptons retreats), with picnics in the redwood allée, daily yoga classes, and Serena & Lily bikes to borrow. Manhattan summer transplants come in the form of people but also restaurants: Upper East Side steak house TBar will set up shop in Southampton; New York’s hip omakase restaurant, Shuko, will have a pop-up in East Hampton (try the kampache handrolls); and Il Mulino will add a 20-seat garden to its Wainscott outpost.

HUDSON VALLEY

Forget what you’ve seen in the movies about the Catskills; locals are now rebranding towns like Kerhonkson “Kerhamptons” for all the chichi creatives moving up for the summer. There’s now a Jitney-like business-class bus, Line, with Wi-Fi and cappuccinos, plus hipster microbreweries such as Arrowood Farms, where festival bands like Guster perform in summer. Airbnb-ing is allowed in most towns, but for a truly refined stay, book one of the 38 rooms at Scribner’s Catskill Lodge in Hunter. Opened just three seasons ago, it extends a Brooklyn-minimalist vibe but with high-quality everything, including an authentic Italian restaurant, Prospect, by A Voce–trained chef Alex Napolitano. Fill your bags for the bus ride back with sartorial designs by Rick Owens and Yohji Yamamoto at Kasuri, easily Hudson’s best high-fashion boutique.

1. Gurney’s Star Island Resort & Marina

Destination - Hotspots

2. Il Mulino 3. Arrowood Farms 4. Scribner’s Catskill Lodge 5. White Elephant 6. Goop

NANTUCKET

5 CSQ Q2 2019

The elegant Mandarin Oriental, Boston has recognized the difficulty of jumping over to the Atlantic island, so its team created a New England vacation experience that includes three nights at the landmark White Elephant and two nights in the big city. Tickets to all the best museums are gratis, plus you’ll get a gift card for Lilly Pulitzer, so you can dress in your preppy best. If you already know the island well, just hop on the ferry to The Wauwinet, whose 32 rooms built around 1875

just emerged from a face-lift courtesy of Boston-based Gauthier-Stacy. Look for four-poster beds topped with Pratesi linens and bathrooms done almost entirely in Carrara marble. Then go with the glow at the first pop-up shop, MRKT, from Gwyneth Paltrow’s cult brand, Goop. Set in the heart of Nantucket, MRKT goes for a general store/beach house vibe, with a minimal Shaker-meets-Scandi aesthetic, chock full of athletic attire by Alo Yoga, Caravan linens, pool floats from The Nice Fleet, and, of course, Goop’s own line of skin care. 79

GOLF GETAWAY

Sea and Be Seen Ocean views, receptive fairways, and the charm of southern Baja await golf travelers yearning to tee it up at Chileno Bay—whether for the day or to call it their second home. By Shaun Tolson

1. Chileno Bay broke ground last year on its final phase of development: 14 four- and five-bedroom villas 2. The property has one of the region’s few swimmable beaches 1

Destination - Golf Getaway 2

If you’ve ever visited a private residential preserved and promoted the terrain’s natucommunity owned and managed by Discov- ral dramatic elements—deep arroyos, rugged ery Land Company—be it in the Bahamas, ocean-front cliffs, and plenty of saguaro cacti. Hawaii, or on the outskirts of the Flathead Na- Because the course stretches over a hillside tional Forest in northwest Montana—chanc- that gradually works its way up from the Gulf es are you’ve played golf on a championship of California, every hole offers captivating layout designed by Tom Fazio. The revered ocean views, some as much as 350 feet above golf course architect has created exceptional the water. Golfers who manage to avert their courses at more than a dozen Discovery Land gaze from the sea can take in equally spectacproperties across North America, and Chile- ular views of the Sierra de Laguna Mountains no Bay is one of his most recent achievements, that rise further inland on the southern tip of even though construction on the course be- the Baja Peninsula. gan more than a decade ago. That Chileno Bay’s golf course can offer The par-72 layout, which plays almost unobstructed views of the ocean, seemingly at 7,300 yards from the championship tees, every turn, is the result of limited real estate was almost complete when the economic development in the works or planned for the recession of the late 2000s brought work to site when Fazio first designed and routed the a screeching halt. The course sat dormant for course’s layout. “We were allowed to route the next several years, until Discovery Land the golf course strategically,” the designer took over the project and rehabilitated the told Golf Course Architecture in early 2017, grounds ahead of the course’s grand opening “to take advantage of the varying topography, during the final quarter of 2016. In his de- natural features and landscape throughout sign and subsequent construction of Chileno the property.” Bay’s sparkling, emerald-green course, Fazio Fortunately for golf enthusiasts who want 80

DESTINATIONS

to call this Mexican paradise home, plenty of real estate options exist now. Custom homesites, villas, haciendas, and casitas are all avai lable through Discovery Land Company, but residential offerings are also available through the Auberge Resorts–managed Chileno Bay Resort & Residences. At the end of last year the beachfront resort broke ground on its final phase of real estate development, a project that will feature 14 fourand five-bedroom villas that start at $2.5M and offer as much as 5,554 square feet of indoor living space. The most superlative of those villas—the penthouse residence—includes 2,600 square feet of covered terrace space and a 1,000-square-foot, private rooftop swimming pool. “Our goal with these final units is to offer future buyers the most exciting new ownership opportunity in the market and continue to bring a new level of luxury to Los Cabos,” says Mark Cooley, managing partner of SV Capital Partners, the resort’s development firm. chilenobay.aubergeresorts.com

The top 5 golf courses to play in Los Cabos right now.

GOLF GETAWAY

Play Time

By Ryan Byers

CABO REAL

CHILENO BAY

Designer: Robert Trent Jones Jr. Completed: 1993; renovated in 2014

Designer:Tom Fazio Completed: 2009

Distinguishing characteristics: The front nine meanders down to the Gulf of California, while the back nine has dramatic holes set up on the ridgelines of stunning arroyos. When it hosted the PGA Senior Grand Slam, the course became instantly famous as contestants had to step away from their putts to watch the whales breach offshore.

Distinguishing characteristics: Every hole offers a view of the Gulf of California. Chileno Bay is also the only Discovery Land Company golf course that non-homeowners can play by staying at the resort.

Why now: This is where the locals play in the summer.

Why now: Starting this summer, the resort’s El Molino coffee shop will sell cigars to take golfing. Additionally, the spa is the place for golfers to relax post-play, with the “Hole in One Golfer’s Massage,” which includes a deep massage using golf balls, focusing on arms and shoulders.

questrogolf.com

chilenobayclub.com

Destination - Golf Getaway DIAMANTE DUNES COURSE

CABO DEL SOL OCEAN COURSE

QUIVIRA GOLF CLUB

Designer: Davis Love III

Designer: Jack Nicklaus

Designer: Jack Nicklaus Signature Design

Completed: 2009

Completed: 1994; renovated 2019

Completed: 2014

Distinguishing characteristics: With it s ro llin g hill s a n d dra m ati c s a n d dunes, the links-style course feels like it’s in Scotland—but with much better accessibility and weather. It hosted the World Club Championship in 2012, and is adjacent to two courses designed by Tiger Woods.

Distinguishing characteristics: Often called the “Pebble Beach of the Baja,” the course occupies more than a mile across rugged desert, dramatic coastline, and steep mountains. Nicklaus has called it “the best piece of golf property I’ve ever seen.”

Distinguishing characteristics: Marked by linksstyle dunes, sheer cliffs, and rolling foothills, this remarkable layout stretches more than 7,000 yards, challenging even the best golfers. Four tee placements range from 4,766 to 7,085 yards, and while the course begins at sea level, it climbs more than 275 feet above the ocean, taking players through surf, canyons, arroyos, dunes, and desert before finishing back at the sea. While many of the region’s top courses claim to have amazing sea views, no other course has quite the expanse of outlooks from every single one of its holes.

Why now: Diamante’s new head of golf, Juan Pablo Guinand, is just 30 years old but brings 24 years of experience to the game. Come learn from him, and then relax and unwind at the brandnew Nobu Los Cabos, located adjacent to Diamante, all of it about 35 minutes north of Cabo’s main developments.

diamantecabosanlucas.com

CSQ Q2 2019

Why now: Jack Nicklaus has returned to oversee the update of the course, which closed in May and will reopen in November 2019. Plans include moving and redesigning two of the ocean holes, but without compromising the quality of play or beauty of the surroundings. To lead the development, Steve Adelson has joined the project as CEO. He is the former managing partner in Discovery Land Company, which developed nearby El Dorado and Chileno Bay.

Why now: Much development is in store for this 1,850-acre community. Phase-one construction begins at the Quivira Beach Club in August; sales for the Old Lighthouse Club homesites (from $2M) start this fall; and construction on the new St. Regis (opening early 2021) begins later this year.

cabodelsol.com

quiviraloscabos.com 81

1. The Northern Trust is one of the biggest tournaments of the year, attrac ting spectators from across the country

GOLF GETAWAY

Skyline’s the Limit One of golf ’s most anticipated tournaments, The Northern Trust, offers an elevated VIP experience with spectacular city views of New York. By Jayson Hugh

2. Liberty Nati onal overlooks the skyline of New York City, just 11 miles away

Destination - Golf Getaway 2

From August 7 to 11, 125 players from around the world, including Tiger Woods and Brooks Koepka, will gather at the Liberty National Golf Club in Jersey City, New Jersey, for The Northern Trust, the first event of the PGA TOUR’s season-ending FedExCup Playoffs. With higher stakes, more stringent criteria, and an exceptional location, the tournament is upping the ante in every way for golf enthusiasts. In addition to rotating locations (the tournament will now alternate between New Jersey and Boston), the biggest change from previous years is the PGA Tour doubling the FedExCup bonus pool from $35M to $70M, with the FedExCup champion receiving $15M at the season’s end, versus $10M from previous years. In addition, the PGA Tour raised the total prize money up for grabs at each of the three Playoffs events. The prize money now totals more than $100M for combined winnings available to the players. The competition is greater this summer too, as only 70 of the 125 players will proceed to the second round (previously, 100 players 82

DESTINATIONS

were allowed to advance). The playoffs will also be reduced from four events to three, with the reduced time frame forcing players to work harder and faster. The changes to the competition make a more compelling viewing experience, but outside the ropes, the PGA Tour has created a compelling luxury experience as well. Situated on Caven Point Road, just 11 miles from Manhattan (or a 15-minute ferry ride) and 2,000 yards from the Statue of Liberty, with 18 holes stretching over 7,400 yards, the private Liberty National course allows guests to arrive from land or sea, and those who purchase the VIP Experience package—called The Liberty Club— are granted access directly to the clubhouse. “We’re taking over the clubhouse and creating something totally unique for The Northern Trust,” says Julie Tyson, Executive Director of The Northern Trust. “It will be something that even the club’s members haven’t seen before.” The VIP Experience includes transportation to the club via ferry or chauffeured car; a dedicated valet at the clubhouse; white-glove

service inside the club; a special menu of unlimited food and cocktails overseen by chef Shaun Lewis; a $500 gift card for merchandise; shared spaces inside the club with PGA Tour players; access to the private suite on the 18th green as well as the club’s signature 14th hole with unobstructed views of the Manhattan skyline; and a collaboration from neo-pop artist Peter Tunney, who designed the VIP badges and was the creative force behind The Liberty Club’s aesthetic and torch logo. The package starts at $7,500 and grants access to the entire tournament. While only 250 of the passes are offered, they are transferable, meaning friends or colleagues can share in the experience. Other offerings this year available to all attendees—regular admission for the tournament starts at $40—include customized fan journey maps, which allow spectators to walk the golf course and highlights the best viewpoints and can’t-miss venues along the way, including the clubhouse on the fourth green, which was inspired by the Sydney Opera House. thenortherntrust.com

HEALTH

Top Shape Susan Docherty, CEO of Canyon Ranch, discusses how she brings a corporate background to a $4.2 trillion industry that’s all about escaping corporate life—and gives a sneak peek at what’s in store for the 40-year-old brand’s first California destination wellness retreat. By Samantha Brooks

Whether guests are on their 2nd or 22nd visit, we want them to leave with something new.” The brand extends far beyond destination wellness resorts though. Both the Lenox, Mass., and Tucson properties have a real estate component, allowing patrons true immersion. “In Tucson, we have 100 luxury homes priced up to $10M, and in Lenox, we built 19 luxury condos priced from $1.5M to $3.5M that have sold very well,” she says. “From a business standpoint, it’s a mistake to think of it as a healthy vacation. It’s much more than that.” Beyond the anchoring destination resorts in Lenox and Tucson, Canyon Ranch operates the world’s largest day spa, at The Venetian Resort, which might perform as many as 1,000 massages in its 100 treatment rooms on any given Saturday. Canyon Ranch is also on 22 cruise lines, including Oceania, Regent, Celebrity, and Cunard. Recently, it signed on with Singapore Airlines to create in-flight exercise videos, wellness meal options, and ways to maximize sleep. Later this summer, Canyon Ranch will open a new, 16-acre property in Woodside, Calif. Formerly a wellness venue named Skylonda Lodge, the site will now host Canyon Ranch’s first California presence, and it’s something special: 24 two-story treehouses with floor-to-ceiling glass windows, on stilts 50 feet in the air. There are 38 rooms in all, and the emphasis is on shorter stays and more communal experiences. “When we launched the website for Woodside, we let people opt into emails,” says Docherty. “We were surprised that 63 percent of them were brand new to Canyon Ranch. We couldn’t be more excited for this next chapter and to listen to the guests we haven’t met yet.” canyonranch.com

Destinations - Health

1. Susan Docherty, CEO of Canyon Ranch

medical-supervised treatments

2. The Lenox property has a traditional feel and offers an array o wellness and

3. The brand’s first California property debuts this summer in Woodside

2 CSQ Q2 2019

Four years ago, in early fall 2014, John Goff of Goff Capital, who’d been an investor in Canyon Ranch for 20 years, met with the renowned wellness brand’s founder, Mel Zuckerman, then in his mid-80s, to discuss the future of the company. They determined they needed a CEO who had a deep history of brand marketing and experience building iconic brands that were relevant to multiple generations. Enter Susan Docherty. “I was at GM at the time and was head hunted for the position,” says Docherty, who is now based in Fort Worth, Texas at the Canyon Ranch headquarters. “I had worked on Cadillac for six years, starting in December 1998, when the average customer age was 75. I launched the Escalade and the XTS and showed them how a brand could become relevant to people in their 30s and 40s without alienating their core customer who was buying a Seville.” Docherty also launched such game-changing cars for GM as the C7 Corvette, the Chevy Volt, and the Buick Enclave. “When I thought about Canyon Ranch, I looked at it through the eyes of building another iconic brand. They stood out as a pioneer and were way ahead of their time,” she says. Her first order of business: a deep understanding of what the brand had built over 35 years. She looked at all of the consumer research and data, then hired New York’s SS+K, which works with brands for strategic in flection. “We ended up with hundreds of pages of data that we used to create the brand’s true north and purpose,” she says. “One of the most important things we did was create a common communication platform for how we talk about the brand and our experts, which we have recently named and trademarked ‘Canyon Ranch Wellness Architects™.’

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A NEW OPPORTUNITY FOR INVESTORS Qualified opportunity fund. HOWARD GROBSTEIN Managing Partner Grobstein Teeple LLP Los Angeles

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Grobstein is co-founder and managing partner of Grobstein Teeple LLP (GT). He is a certified public accountant, certified fraud examiner, and certified in financial forensics by the AICPA. He specializes in all matters of business consulting, including business valuation, business management, back office accounting, and fractional CFO services, and transactions and due diligence. He graduated from California State University, Northridge with a bachelor’s degree in business administration, with an emphasis in accounting. The only thing Grobstein loves more than GT (affectionately referred to as his third child) is his family. He and his wife, Sheba, have two children, Aaron and Reisa. The family loves to travel and experience places and foods from around the world. As a devout car enthusiast, you can find Grobstein enjoying his classic cars, which include a 1955 Chevy Bel Air, a 1968 Chevy Chevelle, and a 1970 Ford F250 pickup truck.

PHONE 818/532.1020 EMAIL hgrobstein@gtllp.com WEBSITE gtllp.com ADDRESS 6300 Canoga Avenue Suite 1500W Woodland Hills, CA 91367

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The Tax Cuts and Jobs Act of 2017 created a new vehicle for investors that provides tax deferrals and reduces taxable gains on the sale of assets that are reinvested in Qualified Opportunity Funds, as defined in USC 1400Z-2. A Qualified Opportunity Fund invests in property that is within designated census tracts called Qualified Opportunity Zones. The Treasury Department certified zones in all 50 states, the District of Columbia, and certain U.S. territories. In addition to tax deferrals and reduction of the taxable gain on the original sale, taxpayers can also permanently exclude gains on the appreciation of the Qualified Opportunity Fund property if it meets certain criteria and is held for at least 10 years. This part of the Tax Code was intended to drive investment into undeveloped and impoverished areas. Requirements for a Qualified Opportunity Fund. To be eligible for the tax deferral and

related tax benefits of a Qualified Opportunity Fund, investors must meet certain requirements as outlined by the Tax Code. A Qualified Opportunity Fund must be set up as a corporation or partnership for the purpose of investing in Qualified Opportunity Zone property and certified by the Treasury Department. Entities can self-certify their eligible entity by completing form 8996 and fi ling it along with their federal income tax returns.

QUOTE:

THE QUALIFIED OPPORTUNITY FUNDS PROVIDE INVESTORS WITH TAX BENEFITS AND HAVE CREATED AN INCENTIVE FOR INVESTORS TO DEVELOP COMMUNITIES THROUGHOUT THE COUNTRY. Similar to other tax-deferral vehicles provid- tax. Based on a 20 percent capital gains rate, ed by the Tax Code that require reinvestment that results in tax savings of $150,000. within a specific time period, the gain on the sale of the original property must be invest- Elimination of taxes on appreciated pro ed in the Qualified Opportunity Fund within perties. The third tax benefit of the Qualified 180 days. The gain can be derived from various Opportunity Fund is the elimination of taxable sources, such as the sale of a business, stocks, gains on the appreciation of the fund’s property. In order to qualify, the fund must hold the bonds, or real estate. In order to be eligible for the tax deferral property for 10 years. and reduction of taxable gain, 90 percent of the assets must be held in a Qualified Oppor- Example. In December 2019, a taxpayer has tunity Fund. These assets include businesses, a $5M capital gain that is invested in a Qualreal estate, and business assets located within ified Opportunity Fund. In 2030 the taxpayer a Qualified Opportunity Zone. Additionally sells that property for $7.5M. The apprecithe Qualified Opportunity Fund must substan- ated value of $2.5M is not taxable. Based on tially improve the property within a 30-month a 20 percent capital gains rate, the result will period from the initial investment. Substan- be tax savings of $500,000. tial improvement is defined by the tax code as the property’s adjusted basis. This means the The Tax Cuts and Jobs Act has left many finanimprovement must be equal to the Qualified cial advisors and accountants scratching their Opportunity Fund’s tax-deferred investment. heads, wondering whether taxpayers will really obtain any tax benefits. The Qualified OpporTax Advantages of a Qualified Oppor tunity Funds definitely provide investors with tax benefits and have created an incentive for tunity Fund. A Qualified Opportunity Fund provides investors with three different ways investors to develop communities throughout to potentially reduce tax burdens: tax deferral the country. If you are considering investing in of gains; reduction of taxable gain; and elimi- a Qualified Opportunity Fund and would like to learn more about the long-term tax benenation of taxes on appreciated properties. fits and how it would impact your tax situation, please reach out to our tax team. end Tax deferral of gains. A taxpayer can get tax deferral on their capital gain by investing into a Qualified Opportunity Fund within 180 days from the sale of their capital asset. Any taxable gain realized from the sale can be deferred through December 31, 2026, or the sale of the Qualified Opportunity Fund property, whichever comes first.

Advisory Grobstein

Reduction of taxable gain. Investment into a Qualified Opportunity Fund provides tax savings in addition to the tax deferral noted above. These savings can be from 10 to 15 percent based on the holding period of the Qualified Opportunity Fund’s investment. Taxpayers who invest gains into a Qualified Opportunity Fund will receive a 10 percent increase in basis after the first five years and an additional 5 percent increase in basis after seven years. Below is an example that illustrates the tax savings of a seven-year hold. Example. In December 2019, a taxpayer has

a $5M capital gain that is invested in a Qualified Opportunity Fund. If the taxpayer holds that property through December 2026, they will receive a 15 percent increase in basis, meaning they will pay taxes on $4.25M. This allows the taxpayer to shield $750,000 from capital gains

CSQ Q2 2019

INDUSTRY SOFTWARE

SPECIALTY PROCUREMENT AND FINANCE

RAISE PROFIT NOW AND PROTECT YOURSELF FOR FUTURE DOWNTURN JOE FOX CEO Vroozi Los Angeles, CA

Being prepared means digitizing procurement, invoice, and payment operations. Advisory Fox

Los Angeles–based software startup Vroozi focuses on digitizing business processes related to vendors, purchasing, invoices and payment. As CEO, Joe Fox leads the overall direction and strategy of the business and brings over 20 years of experience in procurement and financial software solutions. Vroozi has a large number of customers within the LA region along with customers across the United States and Globally. Vroozi is the leading modern and mobile, user-centric purchasing and spend management platform. Vroozi is designed for companies that want to empower their employees, connect with their vendors, and maintain spend visibility from anywhere, anytime. Vroozi customers range from mid-market to Fortune 500 companies and privately held enterprises across several industries, including entertainment, grocery stores, health care, technology, manufacturing, defense, funeral homes, film industry, amusement parks, and general services. Before joining Vroozi, Fox was chief strategy officer for a procurement hospitality software provider and was 12+ years with SAP Ariba as SVP of Business Development and Strategy. He also held key roles within Ernst & Young Management Consulting and Accenture Procurement BPO. He currently sits on the International Chamber of Commerce eBusiness workgroup, headquartered in Paris. Joe has lived in the San Francisco Bay Area with his family for 15 years and grew up in St. Louis, Missouri and Columbus, Ohio. He holds a Bachelor of Science in Computer Science from Rockhurst University, Kansas City, Missouri.

C-SUITE ADVISORY

Controlling your spend, staying on budget, increasing profits, decreasing costs, reducing waste, maintaining compliance, and helping employees be more efficient and effective—a tall order indeed. Yet each day, finance leadership and often chief procurement officers are tasked with seeking new ways to improve all company processes and systems in an effort to meet these objectives, while staying one step ahead of competitors. These responsibilities are compounded by the fact that all C-level executives know that nothing lasts forever. In spite of the current economic stability, the fact remains that it is not a matter of if an economic downturn is coming, it’s a matter of when it is coming. To mitigate the negative impacts of the forthcoming downturn, strategic financial and procurement leaders are refusing to rest on their laurels and are instead proactively planning for the next downturn now. That’s why these CFOs, CPOS, and heads of procurement—in entertainment, beverage manufacturing, rental car companies, chemical companies, assisted living facilities, service delivery companies, film industry, amusement parks, facilities management companies, and more—are making the move to a digital approach. They are investing in modern and

mobile procurement platforms now to ensure success throughout an uncertain future. How Digitizing Procurement Helps You Control Your Spend

Investing in new technology comes with challenging change management and risk in existing business processes and specific business commerce. However, the best time to take on these challenges is when the economy is strong and profits are high. Today, in the current climate of economic and business growth, financial and procurement decision makers have the resources and time to successfully transition from manual and disconnected paper-based processes to more fully digital business processes. As a fi nance and procurement organization moves to digital, they can expect cost savings to compound for themselves and their suppliers—resulting in improved pricing and greater discounts. Digital catalogs, supplier marketplaces, electronic POs, and electronic invoices provide a business commerce platform that improves payment timing and reduces overall costs. Additionally, digital payment systems that help finance leaders move away from check payments also add to overall digital business

QUOTE:

BUSINESSES OF ALL SIZES ARE INVESTING IN DIGITIZING THEIR BUSINESS PROCESSES SUCH AS PURCHASING, INVOICE PROCESSING AND PAYMENT. THE COST SAVINGS REALIZED THRU DIGITAL NOT ONLY INCREASE PROFITS TODAY BUT MAKES COMPANIES BETTER PREPARED FOR THE NEXT ECONOMIC DOWNTURN.

PHONE 866/509.5045

application now, you’ll be prepared to act immediately when a downturn hits. From any mobile device, employees can purchase what they need and approve spend and resulting invoices. Behind the scenes, the business application enables finance and procurement and allows executives to adjust workflow and budget approval controls instantly. This can slow spend, provide more careful budget monitoring, and lead to reducing spend. The finance and procurement groups can use a digital procurement and invoice system to adjust different aspects of the system to optimize or even reduce use of existing budgets. Strategies include recategorizing purchases, switching to lower-cost suppliers, real-time adjustment of business rules related to cost controls, and ensuring alignment of spend with profit goals (regardless of how deep the downturn goes). This ability to adjust quickly provides a more nimble financial controls environment and helps you stay ahead of your competitors.

EMAIL joseph.fox@vroozi.com WEBSITE vroozi.com/CSQ ADDRESS 15000 Ventura Blvd., Suite 201 Sherman Oaks, CA 91403

Mobile Procurement for Time, Money, and Resource Savings

Transitioning to a digitized, mobile, procureto-pay platform is accomplished through an easy-to-implement extension of your company’s financial system, and immediately reduces waste of your most valuable resources. Specifically, company CFOs and accounting executives can expect savings virtually overnight by adopting a modern and mobile, paperless, procure-to-pay system. Invoices, purchase orders, and payments are digitized, resulting in a true three-way auto-matching system. When finance and procurement work together and leverage a digital platform that employees enjoy The Future of Procurement Is Here and using, they lower costs—through the efficien- It Is Modern and Mobile cies of aligned and connected electronic invoic- As part of your strategy for continuing to ines, pre-spend-approved digital requisitions and crease profits while cutting costs, even during resulting POs, and electronic goods and ser- a downturn, C-level executives should begin vices receipt documentation. This means that the process of streamlining procurement by the hours required to process invoices shrink transitioning to a modern and mobile platform. substantially, and much of this operational Immediate results to expect include greatplatform processes touchless in the background. er control of your spend, pre-spend approval When the next downturn hits, CFOs who capabilities, reduction of wasted accounting utilize a mobile purchasing platform will be able resources (through paperless ordering, PO to immediately change the timing of payments matching, invoicing, and payments), and into align with new budgets and overall corporate creased employee efficiencies. When the economy slows, you’ll find yourspend so as to mitigate cash-flow issues before self in a stronger position to immediately adapt, they occur. thanks to the complete visibility provided by a mobile procurement platform, which enaHow Does Digitizing Procurement Benefit bles you to adjust workflow, budget, and even Employees? A modern and mobile procurement system suppliers from your fingertips, whether you’re allows employees to shop for goods and servic- in the office, at a conference, or anywhere es from pre-sourced and pre-approved vendors in between. end

Advisory Fox commerce benefits. This transition includes business systems that go mobile with today’s employees. Mobile is where business is done today and business applications that can go mobile drive higher adoption, greater compliance, and ultimately, greater savings. Consider that the move to a mobile platform provides immediate visibility and control of corporate spend for company leaders who conduct business away from their desks. By switching to a mobile procurement application, CPOs and CFOs have up-to-the-minute access to corporate spend, from literally anywhere in the world, allowing you to stay on budget by offering pre-spend approvals in real time. (For younger companies and startups, going mobile now enables you to manage spend from your earliest days.) This 24/7 visibility and accessibility from any mobile device aids in ensuring compliance, reduces redundancies in terms of tracking purchases, and ensures that receipt of goods can be easily matched to electronic invoices. In other words, moving to a modern, mobile platform provides better management of your cash flow because each dollar spent is tracked in a single platform. By switching to a mobile-first procurement

CSQ Q2 2019

while they are at work, the same way they shop for personal items at home, but with a system designed to maintain the appropriate business controls. Deploying digital catalogs managed by suppliers allows employees to make purchase requisitions from mobile devices and leverage a business rule–driven workflow, designed for both visibility and pre-spend approval. Rather than purchasing from multiple sources, employees have a single platform for buying from all approved suppliers. By being strategic and onboarding all the pre-approved vendors into a private business marketplace, employees can find what they need while maintaining business-purchase policies. Additionally, a mobile procurement and e-invoice platform allows employees to secure approval from anywhere, not just from a desktop application—allowing the business to move faster and reducing the time wasted in paper-based processes. Real-time posting to your financial system also makes visible all liabilities immediately, improving employees’ ability to leverage their budgets at the right time for the right purchases. Employees find that the ability to place orders from a phone or tablet makes them both more effective and more efficient while also ensuring that they remain in compliance. With more control of their spend when the economy slows, employees will also be able to adjust rapidly. From adapting to a modified budget to having immediate access to backup or secondary suppliers, the digital platform empowers employees, enabling them to proactively adapt to a downturn rather than scrambling to react to a slowing market.

INDUSTRY FINANCE

SPECIALTY INVESTMENT BANKING

NOT JUST AN EXIT, A TRANSFORMATIVE PARTNERSHIP

The investment banker as your partner throughout the life cycle of your business.

JIM FREEDMAN Managing Director Intrepid Investment Bankers, a subsidiary of MUFG Union Bank Los Angeles

When it comes time to sell your company, hiring a good investment banker is essential, but engaging a banker earlier on in a company’s life cycle can be transformative. There are decisions along the entrepreneur’s journey that are so critical and yet so often undertaken without the proper advice. These may include when to raise a credit facility, how to choose an equity investor, and how to negotiate the acquisition of a competitor. Many people think investment bankers are just sell-side M&A advisors. The best investment banking firms, though, work as partners to business owners and management each step of the way, putting together the building blocks towards an eventual exit. By the time you’re ready for the big sale, your banker knows all the ins and outs of your company, how to articulate your story, and how to look out for your best interests. Working together through stepping stone transactions as well as non-transaction oriented strategic planning makes the result of the exit transaction all the more rewarding, both for the owner and advisor. Earlier this year, Intrepid advised Artisan Vehicle Systems (Artisan), an extraordinary, Southern California-based electric vehicle company, on its sale to Sandvik, the Swedish industrial powerhouse. Artisan has revolutionized the mining equipment industry by making battery-electric underground loaders and haulers a reality for gold miners, getting the attention of the big mining equipment players like Sandvik. Before that, however, Artisan was just a start-up in need of a working capital line. Artisan was looking for an advisor who understood its vision and shared its passion for transforming industries so that it could establish a long-term investment banking relationship.

The company knew that Intrepid was willing to take projects earlier on than most, and we joined forces. “Industry disrupting technology is an entrepreneur’s best friend. Anything that throws an industry off balance gives the newcomer a chance to gain a foothold. If that technology drives an inflection point, the newcomer can become the market leader. More than any other industry, mining has the most to gain from electric vehicle technology. The value proposition to mining companies dwarfs the opportunity to disrupt any other vehicle segment,” said Mike Kasaba, CEO of Artisan. “We were the first mover in mining, and we are accelerating the imminent inflection point in this industry. Our position in the market plus the strength of Sandvik’s manufacturing and service infrastructure has given us the boost we needed to become the market leader.” Artisan used the proceeds from its fi rst transaction to purchase key raw materials from which to assemble its game-changing Z40 hauler. “The most expensive capital expenditure in underground mining is for ventilation. Driving air underground requires dedicated shafts and systems that are extremely expensive to buy and to operate. Diesel emission is the No. 1 cost driver for ventilation system design. By eliminating diesel emissions in underground environments, we dramatically reduce the capital and operating costs for a mine site. The Z40 trucks haul 40 tonnes of ore and offsets huge amounts of diesel emissions,” explained Kasaba. “Our design not only eliminates these emissions but maximizes productivity with more power, larger loads, fast charging and automated battery swapping systems. The

Advisory Freedman JONATHAN ZUCKER Managing Director and Head of Capital Market Intrepid Investment Bankers, a subsidiary of MUFG Union Bank Los Angeles Jim Freedman is a Founding Partner and Chairman of Intrepid Investment Bankers (Intrepid), 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. Jonathan Zucker is the Head of the Capital Markets Group and a Managing Director at Intrepid. He is responsible for advising entrepreneurs and private equity funds on raising institutional debt and equity capital for a variety of uses such as funding growth, acquisitions, recapitalizations or working capital across a diverse set of industry sectors, including consumer, digital media, technology, business services and industrials.

C-SUITE ADVISORY

QUOTE:

WORKING TOGETHER THROUGH STEPPING-STONE TRANSACTIONS AND NON-TRANSACTION—ORIENTED STRATEGIC PLANNING BRINGS REWARDING RESULTS, BOTH FOR THE OWNER AND ADVISOR.

PHONE 310/478.9000

capital or private equity firm, a few of which infrastructure made up of thousands of techhad already been calling on Artisan. At the nicians, and account managers with local acsame time, the founders were sensitive about cess to parts inventories are critical for real acequity dilution at this relatively early stage. We ceptance as the primary supplier to a mine site. encouraged the company to open the process To build this infrastructure ourselves would to some non-traditional sources including stra- have taken tens of millions of dollars and sevtegic players in and around mining, as we felt eral years to complete. If we had chosen that that industry participants would greater grasp path, we might have seen a large manufacturer the founder’s vision and see the potential, in catch up on the technology and successfully turn, rewarding the company with a higher leverage their brand equity,” remarked Kasaba. valuation. In the end, Artisan was able to sig- “The timing was right to partner with the largnificantly limit equity dilution by taking an in- est manufacturer of mining equipment in the vestment from a strategic investor who provid- world and leverage its existing global network. ed a structured security rather than a straight Sandvik realized that Artisan’s technology and equity investment. This was another example first mover position could extend their leaderwhere having an investment banker-led process ship position into the foreseeable future,” he got the company a better result—one which further mentioned. Working on the sell-side transaction for they likely would not have even considered Artisan was the culmination of a long, trustbefore our involvement. ed partnership with the company. Due to our experience representing them on multiple prior Creating value ahead of a sale In addition to running competitive processes to transactions, as well as work on the intangisecure financing or other capital transactions, bles—strategic planning, building the support your investment banker can help you think five team, and the like—we were able to position steps ahead, providing advice from years of ex- the company’s story effectively to the point perience on how to create value ahead of a sale. where there were multiple strategic parties Value creating activities include ensuring you from around the world bidding for the chance have the right internal talent and building an to buy the business. Due to our relationship all-star outside advisory team. In Artisan’s case, with the shareholders and management, we had we determined that the company needed inter- a keen sense of which points to negotiate and im finance resources, a law firm with interna- what was most important to them going fortional reach, and a supply chain consultant to ward. From our many months in prior processhelp lower its production costs. In each case, es spent marketing the opportunity, we were we were able to recommend a best-in-class pro- acutely aware of the company’s strengths as vider who, like Intrepid, was willing to make well the potential challenge areas into which an investment in working with an earlier stage potential buyers would be digging. The result of the process exceeded our client’s wildest expecbusiness to become a life cycle partner. As Artisan continued to grow and see mar- tations and we firmly believed that had we not ket opportunities unfold, it had to decide wheth- gotten involved much earlier on, the outcome er to go at it alone, which would require another would have been far less favorable. Certain partnerships in life are undeniasizable capital raise, or to seek a transaction with a strategic acquirer. We worked with the bly valuable—your spouse and your caddie, and company on various projection and dilution for instance, when it comes to getting sound scenarios, based on different levels of capital advice throughout the life cycle of your busiraised, as well as on analyzing the competitive ness, having a seasoned investment banking dynamics in the industry. Ultimately, togeth- team in your corner may be one of the most er we decided that staying independent in the important decisions you will ever make. With face of large multinationals pouring millions of Sandvik’s help and guidance, Artisan is builddollars into their own battery-electric vehicle ing a complete line of battery-powered untechnology bore substantial risk, and we iden- derground loaders and haul trucks. “Sandvik tified a number of strategic players that we be- respects Artisan’s expertise in developing and lieved would be interested in acquiring Artisan. implementing this technology and is providing “At Artisan, we have always been extremely invaluable guidance on how to scale up as we confident in our ability to imagine and mani- approach the inflection point in the mining fest innovative technology that surprises and industry,” Kasaba noted. end impresses our customers. But that is only the beginning of being a successful provider of equipment in the mining industry. A global

WEBSITE intrepidib.com EMAIL jfreedman@intrepidib.com jzucker@intrepidib.com ADDRESS 11755 Wilshire Blvd., 22nd Floor Los Angeles, CA 90025

result is a machine that not only reduces emissions but also outperforms conventional diesel equipment.” Securing your first credit line is a big deal

Securing your first credit line is a big deal, particularly when you have non-traditional collateral and a long sales cycle. Traditional banks may not be an option, so you may need to navigate the world of non-bank asset-based lending (ABL) shops, royalty financing groups and intellectual property (IP)-based lenders. Working together on this initial capital raise allowed us to demonstrate the merits of a competitive process, and it allowed Artisan to educate us on the nuances of its business. While the company, at that point, was relatively “un-bankable,” we were able to tap the vibrant non-bank lending market and produce a number of alternatives, getting lenders comfortable with the company’s tangible assets—inventory, purchase orders and accounts receivable—as well as its impressive patent portfolio. “As with many entrepreneurial ventures, our metrics were not conducive to traditional bank debt. Intrepid was able to attract multiple lending entities that could understand our business and work with us to structure debt that reduced their risk and gave us the capital we needed to move forward,” stated Kasaba. “Intrepid’s ability to assimilate our business structure and communicate that to financial entities was essential to the completion of this round of funding,” he further commented. Ultimately, we secured a flexible financing package for the company allowing Artisan to purchase key raw materials from which to assemble its game-changing Z40 hauler. Pleased with the outcome of the debt raise, Artisan called upon us to raise a round of growth equity that would enable it to scale production as well as R&D for future product releases. Their team was initially keen on the concept of bringing in a big-name venture

Advisory Freedman

CSQ Q2 2019

INDUSTRY FINANCE

SPECIALTY WEALTH MANAGEMENT

DEMYSTIFYING OPPORTUNITY ZONES ROBERT DALIE Executive Director, Investments The Summa Group of Oppenheimer & Co. Inc. Los Angeles

In his role at The Summa Group, Robert Dalie oversees wealth-planning capabilities, one of the core pillars upon which the group is founded. Dalie’s specific expertise and experience lend themselves to entrepreneurs, senior executives, fiduciaries, and founders who have recently experienced or are about to experience a life- changing financial event. This proficiency has allowed him to play an integral role within the core advisory teams that deal with pre- and post-liquidity events. He has developed a reputation for specialized work with sudden wealth from inheritance, divorce, stock sales, estate planning, and closely held business sales. To effectively offer this depth of service and experience, his practice is limited to a select group of individuals and families for maximum impact. Forbes, Barron’s, and Research Magazine have recognized The Summa Group in their annual advisor rankings as a top wealth management team. Dalie has been a central part of The Summa Group since its founding in 2003.

PHONE 310/446.7501 EMAIL robert.dalie@opco.com WEBSITE opco.com ADDRESS 10880 Wilshire Blvd., 24th Floor Los Angeles, CA 90024

C-SUITE ADVISORY

Exploring private investments that stimulate economic growth and improve lowincome areas. Advisory Dalie

It’s been quite some time since we have seen as much excitement and confusion over a single investment topic as we recently have regarding opportunity zones. The Opportunity Zones Program has created a tremendous amount of buzz throughout the real estate, legal, accounting, and wealth management communities over the last year. I seek to demystify what these zones are and explain the basics of how they are designed to work. Under the Tax Cut and Jobs Act of 2017, opportunity zones were created as a development tool to improve low-income areas by generating economic growth and jobs through private investments. Investments in these economically distressed regions create tax benefits for investors. The eligibility criteria included locations within certain ZIP codes that have poverty rates of at least 20 percent and median family incomes less than 80 percent of median statewide family income levels. The community development program’s incentives target an estimated $6.1T in unrealized capital gains to invest in certain economically challenged areas to stimulate economic development. The program allows investors to defer capital gain taxes, provided those gains are invested in qualified opportunity zone funds. Timing is paramount. Once capital gains are realized, those proceeds must be invested within

180 days into a qualifying opportunity zone investment or fund. Tax benefits are dependent on the length of the investment holding period and the date of investment. It’s interesting to note that this was one of a few bipartisan tax legislation pieces added into the 2017 tax bill.

The Opportunity Zones Program offers three potential tax benefits for investing in low-income communities through a qualified opportunity zone fund. 1.

A temporary deferral of capital gains reinvested in an opportunity zone fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or December 31, 2026. 2. A step-up in basis for capital gains reinvested in an opportunity zone fund. The basis is increased by 10 percent if the investment in the opportunity fund is held by the taxpayer for at least five years and by an additional 5 percent if held for at least seven years, thereby excluding up to 15 percent of the original gain from taxation. For the maximum 15 percent step-up in basis, the investment must be made by the end of 2019. 3. A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an opportunity fund if the

QUOTE:

UNDER THE TAX CUT AND JOBS ACT OF 2017, OPPORTUNITY ZONES WERE CREATED AS A DEVELOPMENT TOOL TO IMPROVE LOW-INCOME AREAS BY GENERATING ECONOMIC GROWTH AND JOBS THROUGH PRIVATE INVESTMENTS. investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an opportunity fund. When these zones were first being created, each state governor was allowed to choose 25 percent of their eligible census tracts based on 2010 census data. As a result, opportunity zones are now located in 50 states, Puerto Rico, and Washington, D.C., of which 8,700 neighborhoods currently have been approved. Approximately 10 percent of US land rests within opportunity zones, with a concentration in urban areas. Clearly, the investment set is quite large with a multitude of assets from which to choose. Opportunity zone investments have several distinguishing characteristics. First, they must derive at least 50 percent of their gross income from an active trade or business located in an opportunity zone. Second, they must have at least 70 percent of their tangible assets in a qualifying opportunity zone property. Third, an opportunity zone property must be acquired in a taxable purchase after December 31, 2017. Real estate within opportunity zones must also adhere to an improvement test. It must be improved by 100 percent, but the criteria will now exclude land, which makes it easier to pass the test. If a property was purchased for $10M and the land value is $6M, then the fund only has to improve the property by $4M. They must also follow an asset test. An opportunity zone fund must hold at least 90 percent of assets in opportunity zones. The asset test can be satisfied if cash is designated as working capital for specific investments, as long as investments are completed within 30 months. The purpose of the program is to incentivize investors with large capital gains to make investments in certain economically challenged areas to stimulate economic development. The program is open to any qualified investor, whether retail or institutional. All US taxpayers can make deferrals by putting money in opportunity zone funds, including individuals, partnerships, C corporations, S corporations, trusts, REITS, estates, and other pass-through entities. For example, investors with a low-cost-basis stock that they would like to monetize represent very viable candidates. All capital gains are eligible for deferral, including short-term and long-term capital gains. Additionally, investors who seek to align their portfolios with socially responsible principles may find that the economic impact on the community (potential job growth,

Advisory Dalie

CSQ Q2 2019

better housing, and support for small businesses) would meet their objectives. Opportunity zone investments have proliferated since the program was launched. Some examples include purchasing undeveloped land or an office complex. The key is that it meets the above-mentioned criteria, but with every worthwhile opportunity comes a level of complacency with regard to the quality of the underlying investments. We encourage anyone considering an investment in opportunity zones to understand not only the tax benefits, but the quality of the underlying real estate investments. Investors can reinvest capital gains in several ways to take advantage of the opportunity zone program, the two most common being via a fund or direct investment. Opportunity zone fund:

A portfolio of 2 to 20 qualified opportunity zone investments. This vehicle could provide diversification across geographies and investment types. Private real estate investment:

Investments in a singular qualified opportunity zone investment such as a multifamily or mixed-use real estate development project or undeveloped land. The window of opportunity is relatively short, and many firms are still conducting due diligence on opportunity zone funds and singular investment properties before the end of 2019. A fund structure may allow diversification across geographic locations and investment types while we are seeing family offices more receptive to direct investment. Many of these products are likely to be available exclusively to qualified purchasers and accredited investors, depending on the nature of the transactions. We believe it’s a great time to explore these investments, but we advise anyone to first talk with their CPA and/or lawyer about the myriad of complexities and specific state rules. end

©2019 Oppenheimer & Co., Inc. Transacts Business on all Principal Exchanges and Member SIPC 2535338.1. Oppenheimer & Co., Inc. does not provide legal or tax advice, but will work with your other advisors to assure your needs are addressed.

INDUSTRY FINANCE

SPECIALTY WEALTH MANAGEMENT

PRE-TRANSACTION PLANNING RYAN BRISTOL Managing Director and Banker J.P.Morgan Private Bank Los Angeles, CA

Ryan Bristol is a Managing Director and Banker at J.P.Morgan Private Bank’s Westlake Village office. He has over 19 years of experience in the financial industry and is responsible for advising clients on a range of personal wealth matters, including investment management, portfolio construction, asset allocation, tax strategies, credit solutions, estate planning, pre-transaction planning, and charitable giving. Prior to joining J.P.Morgan, Bristol was a Vice President in the private client practice at Bernstein Global Wealth Management. He counseled clients on complex wealth-planning issues such as pre-transaction planning for business owners, multi-generational wealth transfer, philanthropy, and diversification strategies for concentrated wealth. He was previously a Regional Vice President for Morgan Stanley and a Financial Analyst for Goldman Sachs. Bristol is very active in the community as a board member of ACG 101 and former board member of the American Red Cross in Ventura, the Investment Review Committee for the City of Thousand Oaks, and the Dean’s Advisory Council for the Orfalea College of Business at Cal Poly, San Luis Obispo. Bristol earned a BS from Cal Poly, San Luis Obispo and an MBA from the UCLA Anderson School of Management.

PHONE 805/857.7628 EMAIL ryan.bristol@jpmorgan.com WEBSITE jpmorgan.com/westlakevillage ADDRESS 3960 Thousand Oaks Blvd., Floor 2 Westlake Village, CA 91362

C-SUITE ADVISORY

Four questions to ask before the sale or IPO of your business. Who is making your personal wealth decisions while you are focused on building your business? Ignoring the impact of your successful business on your personal wealth is a common oversight of busy founders and executives. After years of hard work, you’ve built a highly successful business. As a founder or executive of your organization, you need to plan for getting the most value out of your equity interests as you prepare for a sale or initial public offering (IPO). Planning your personal finances long before the transaction will help you understand the optimum value of your equity interests, and the potential tax impact. Begin your pre-transaction planning the moment your company achieves significant market value. Consider the following questions.

“For a founder or executive, pre-transaction planning can take many forms, depending on individual objectives,” says Jordan Sprechman, practice lead of J.P.Morgan’s US Wealth Advisory. “Such preparation covers many considerations, including liquidity needs, estate planning, and philanthropic goals.” These options vary significantly and their characteristics are complex. For example: • Only company employees can receive ISOs, but both employees and independent contractors or non-employee board members can receive NQSOs. • The exercise of ISOs is not subject to ordinary income tax, but the spread—the difference between the strike price and market value—is subject to the alternative minimum tax. • The exercise of NQSOs is considered compensation income and is subject to ordinary income tax. Many entrepreneurs exercise their options, particularly ISOs, well before the option expiration date. This may lead to a more favorable longterm capital gain tax rate on future share appreciation. Once the options are exercised, the difference between the strike price and the fair market value of common stock is insignificant.

Advisory Bristol

1. What Are My Current Holdings?

From the start, make sure you fully understand the nature and structure of your equity interests in your business—tax and gifting considerations vary for shares, options, and restricted stock—and know whether the options are incentive stock options (ISOs) or nonqualified stock options (NQSOs). With your equity interests identified, consider which holdings are subject to vesting; whether your business permits early exercise of options or an 83(b) election for non-vested equity interests; and whether your business permits the transfer of shares. The question of whether and when to exercise or hold ISOs and NQSOs takes careful planning before the transactions.

2. How Does an 83(b) Election Work?

If you intend to hold most of your ownership as a capital asset, you might consider making an 83(b) election, which would classify your shares of company stock as equity for tax purposes. This strategy assumes the shares will have appreciated in value and you will still be at your

QUOTE:

PLANNING YOUR PERSONAL FINANCES LONG BEFORE THE TRANSACTION WILL HELP YOU UNDERSTAND THE OPTIMUM VALUE OF YOUR EQUITY INTERESTS, AND THE POTENTIAL TAX IMPACT. business when the interest vests. If both assumptions hold, your vested interests would be treated as a capital asset, not as compensation income, so any proceeds on their sale would be taxable at lower, long-term capital gains tax rates rather than at ordinary income rates. But evaluate this strategy carefully. If neither assumption plays out, you might have paid taxes on worthless or forfeited stock. 3. Should I Opt for Cash?

If you want to reduce the risk of overexposure in your holdings while diversifying your portfolio, you might opt to receive some of your proceeds from your sale or IPO in cash. If that’s your plan, make sure to structure any sale or redemption of your interest in the company to minimize tax liability. But be conscious of how fellow shareholders and executives, potential buyers, and the public might interpret your action. Could your decision to receive cash cause them to question your motives (or the value of your business)? You’ll need to form a strategy to manage any misperceptions as part of your pre-sale planning.

Advisory Bristol 4. How Do I Best Transfer My Wealth?

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE “J.P. Morgan Private Bank” is a marketing name for private banking business conducted by JPMorgan Chase & Co. and its subsidiaries worldwide. Bank products and s er vic e s, including cer tain discretionar y investment management products and services, are offered by JPMorgan Chase Bank, N.A. and its affiliates. Securities are offered by J.P. Morgan Securities LLC, member FINRA and SIPC. © 2019 JPMorgan Chase & Co. All rights reserved.

CSQ Q2 2019

Now is the time to think ahead about how to transfer wealth to your family and to the causes you care about. Things to consider: • Plan ahead. Estimate your cash flow and spending needs over time. Once you have a plan that leaves you with enough assets to support yourself and your family, you can think about how to transfer your interests in the business, or the proceeds of a sale or IPO, to family as well as charities and important causes. • Set up a trust. As you plan, think about setting up a trust for transfers to family for those assets that you expect to appreciate. A trust can allow the transfer of those assets with valuable tax efficiency. • Establish philanthropic goals. When gifting to charities, you might establish a donor-advised fund or private foundation as a charitable giving vehicle, depending on your longer-term philanthropic goals. • Give strategically. You might make a gift to a charity of a highly appreciated asset, such as post-IPO stock, because the charitable income tax deduction is generally based on the fair market value of the gift. • Time it right. You may have the option to gift pre-sale private company stock to charity. Timing is important: This strategy can help you offset the high-income year when you sell your business with a corresponding charitable contribution.

Get Ahead of the Game

In your situation, you have to anticipate the sale or IPO of your business and start planning now. By doing that, you’ll accomplish three valuable things: You’ll inform yourself about what assets you will likely have after the liquidity event and how to handle them, you’ll start developing the strategies you need to have in place at the time of the sale or IPO, and you’ll know how you’re going to transfer wealth when the time comes. IMPORTANT INFORMATION

All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation. This material is intended to help you understand the financial consequences of the concepts and strategies discussed here in very general terms. The strategies discussed often involve complex tax and legal issues. Your own attorney and other tax advisors can help you consider whether the ideas illustrated here are appropriate for your individual circumstances. JPMorgan Chase & Co. does not practice law, and does not give tax, accounting or legal advice. We are available to consult with you and your legal and tax advisors as you move forward with your planning. The views and strategies discussed here may not be suitable to all investors. This information is provided for informational purposes and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Past performance is not indicative of future returns. Lines of credit are extended at the discretion of J.P. Morgan, and J.P. Morgan has no commitment to extend a line of credit or make loans available under the line of credit. Any extension of credit is subject to credit approval by the lender in accordance with the terms contained in definitive loan documents. Investors should be cautious when holding a highly concentrated stock position, which is generally defined as any individual holding that constitutes more than 30% of overall investment holdings. Tax consequences, including the avoidance of capital gains through selling, do not eliminate the risks of overexposure to a particular company or business sector. end

INDUSTRY LEGAL

SPECIALTY CORPORATE LAW MERGERS & ACQUISITIONS

CANNABIS REAL ESTATE LEASE AND RISK MANAGEMENT CONSIDERATIONS

MARK LEVINSON Partner, Corporate Mergers & Acquisitions, Securities, Capital Markets Finance, Real Estate Thompson Coburn LLP Los Angeles, CA

Negotiating a well-crafted cannabis real estate lease can be challenging but also presents many profitable opportunities Advisory Levinson for discerning land owners, tenants, and investors.

William Mark Levinson is a seasoned attorney who primarily advises and guides individual and corporate clients through a range of corporate, securities, real estate, and financing transactions. Levinson was nominated by The M&A Advisor as an award finalist for a complex public company spinoff that was listed on the NYSE, and he was named to the Los Angeles Business Journal ’s 2013 “Who’s Who in Real Estate Law.” Known for his effective negotiating approach, Levinson is a trusted advisor who routinely counsels financial institutions, real estate development companies, investment banks, entrepreneurs, and individuals. A graduate of Brandeis University and Yeshiva University’s Cardozo School of Law, Levinson resides in Calabasas, Calif., and is the proud husband of Carrie and father of Emily, Lauren, and Max.

C-SUITE ADVISORY

Recreational and medicinal cannabis is now legal in California. Landowners and lessees are entering into real estate lease transactions to grow, produce, distribute, and sell cannabisrelated products. The National Association of Realtors (NAR) Research Group’s “Marijuana and Real Estate: A Budding Issue” November 2018 Report states approximately 34% of their respondents had experienced an increase in demand for warehouses and storefronts and approximately 18% had seen an increase in demand for raw land on which to build cannabis-related facilities. The legalization of cannabis presents many exciting and profitable opportunities for

land owners, tenants, and investors. With these opportunities comes the important challenge of negotiating and documenting the unique economic and legal aspects of a cannabis real estate lease. A well-crafted lease improves one’s ability to obtain investment funding and should allow one to adapt to the rapidly changing laws, rules, and regulations. In addition to landlords and lessees, investors and financing sources care about the terms of a lease, as they are concerned about protecting their interests. Title insurance companies care about the terms of a lease as they evaluate whether to issue title insurance in a transaction.

QUOTE:

A WELL-CRAFTED LEASE IMPROVES ONE’S ABILITY TO OBTAIN INVESTMENT FUNDING AND SHOULD ALLOW ONE TO ADAPT TO THE RAPIDLY CHANGING LAWS, RULES, AND REGULATIONS.

PHONE 310/282.2520

The following is a list of business and legal • Indemnification and forfeiture. What if considerations to be considered when negoti the lease arrangement violates a law that enables ating and documenting a lease involving a can the State to assert a claim of forfeiture against a lessor? Consider whether the tenant should nabis or hemp facility. • Utility expense allocation. When a te be responsible for defending a lessor in such nant grows on or in the property, electricity circumstance and indemnifying the lessor for and water demand may be significant. The NAR any and all losses associated with such an event. reports that approximately 1% of landlords pay • Default management. This is an area tenant utilities. Therefore, the tenant should as where precision in drafting is critical. It serves sume the responsibility to provide such utilities. little purpose if default triggers with respect to the tenant are too low, or if there is not a rea • Revenue management. The cannabis industry is currently a cash business. Cannabis sonable opportunity to fix a problem (unless it’s is a Schedule 1 narcotic and the banking indus for the payment of rent). The duration of cure try is largely unavailable. Landlords must con provisions frequently ranges from a few days sider how they will receive rental payments. In to a couple of months if the tenant is diligently cash? The NAR reports that approximately 25% working on a cure. However, what if the cure of landlords were unwilling to take cash for rent is outside of the tenant’s control (e.g., the need but approximately 22% would take cash with for a regulatory approval)? The parties will need out questioning the source. What about banks? to negotiate the appropriate mechanisms that Banks are leery of taking significant deposits will avoid default and manage the cure process before proceeding with the eviction process. from any activity “touching the plant.” On the other hand, what if the lessor’s • Criminal activity. Does establishment of storefronts or grow warehouses attract crime? lender deems the lessor’s cannabis lease to be The data is inconclusive, as 28% of NAR mem a default under the lessor’s financing and calls bers cited no change in crime while 8% report the loan? Should the tenant have an obligation ed an increase. What security arrangements to participate in a refinancing of the underlying property? Should the tenant have an obligation should be considered and implemented? to provide refinancing? • Odors and scents. Cannabis does not emit a perfumed fragrance. The smell of a can nabis processing or marketing business can Conclusion permeate adjacent businesses. Confirm the The business opportunities presented to land proposed premises are located in a place that lords, tenants, investors, and governmental permits the anticipated use and is not likely to bodies by the legalization of cannabis in Cali offend neighbors who could complain to gov fornia is exciting! With proper attention to the ernmental bodies and potentially institute legal unique aspects of a real estate cannabis transac tion, all participants can achieve desired results action to close a facility. • Compliance with state and local can and be in the best position possible to adapt to changing laws, rules, and regulations. end nabis law. Cannabis is a Schedule 1 drug. It is illegal on the federal level. Most leases prohibit a tenant from engaging in unlawful activities on the premises. Leases should contain representa Disclaimer: Cannabis laws and policies in Caltions that the tenant’s use of the premises is ifornia and elsewhere are constantly evolving and subject to change. The labels, information lawful and that the tenant has not received writ and explanations in this article are quite limited in ten notice from a governmental or other party their scope and for informational and discussion contesting compliance with such law. A lease purposes only and not meant to provide compreshould contain express language that spells out hensive descriptions or discussions of the topics cannabis cultivation, sale, and distribution (as mentioned herein. No warranty is given as to the completeness or accuracy of the information conthe case may be), and confirm that the activity tained herein and the views and opinions herein is not deemed to fall into the category of ille are subject to change without notice. This article is gal substance, but is a permitted use, notwith not nor may be deemed, under any circumstances, standing its noncompliance with federal law. to be legal advice from Fox Rothschild, LLP (“Fox”)

EMAIL mlevinson@thompsoncoburn.com WEBSITE thompsoncoburn.com ADDRESS 2029 Century Park East, 19th Floor Los Angeles, CA 90067

California cities and the State are developing regulations that impact lease arrangements as they seek to capitalize on the promise of greater tax revenue. In Los Angeles, the Department of Cannabis Regulation (DCR) is the agency primarily responsible for promulgating and enforcing regulations affecting participants in the cannabis growing, sale, and distribution of the plant and extracts. When negotiating and documenting a lease, parties to that lease must consider the unique aspects and requirements of the cannabis in dustry, as well as regulatory considerations and investor concerns. For example, many potential tenants must have a valid license to legally grow, harvest, extract oils, fabricate, and distribute a retail product. Without a valid government sanctioned license, all parties will be exposed to significant economic losses and other con sequences frequently associated with govern mental enforcement. A leasing relationship should not be oral or written on napkins or the back of an envelope. It is critical to consider the nature of the property to be leased. Is the lease for a growing facility, ware house or storefront? Each use requires a diffe rent approach and different language in a lease. What minimum provisions should the par ties consider incorporating into or resisting in a “cannabis” lease? Should a standard form of commercial lease be used? There appears to be a difference of opinion on this issue. Approx imately 50% of NAR members reported that they did not add additional language focusing on cannabis to their clients’ leases while ap proximately 20% of NAR members reported adding some sort of addendum. At a minimum, incorporating an addendum into a lease will likely capture the unique aspects of the can nabis transaction. In the long run, the cost of a fully custom lease may be less, as standard form leases often contain language ambigui ties and arguably inconsistent provisions that are problematic if the parties find themselves in a dispute.

Advisory Levinson

CSQ Q2 2019

• Licenses, permits, investigations, and landlord’s cooperation. Many leases

require the parties to cooperate with each other. Language should be incorporated into a lease that requires a lessor to cooperate with the ten ant in connection with the tenant’s processing its license to do business.

or the lawyers named herein. No attorney-client relationship currently exists with the recipient nor may exist with Fox without a signed written engagement agreement among the parties. In furnishing the information above, the author reserves the right to supplement, amend or replace such information at any time with no obligation to provide the recipient with any supplemental, amended, replacement or additional information.

INDUSTRY LEGAL

SPECIALTY FAMILY LAW

ADVERSITY

I will survive. LISA HELFEND MEYER Founding Partner Meyer, Olson, Lowy & Meyers LLP Los Angeles, CA

Advisory Meyer

Lisa Helfend Meyer is managing partner of family law firm Meyer, Olson, Lowy & Meyers. With offices throughout California, the firm’s attorneys work with clients to confront what can be the most diff icult and challenging situations in life—painful emotions, possible loss of marital assets, and child custody. As a result, many clients emerge as stronger individuals, confident about their futures.

PHONE 424/644.0225 EMAIL lhm@molfamlaw.com WEBSITE molfamlaw.com ADDRESS 10100 Santa Monica Blvd, Suite 1425 Los Angeles, CA 90067

C-SUITE ADVISORY

I have been practicing family law in Southern California for nearly 37 years, concentrating on highly contested custody cases and complex marital estates. To say it is not exactly a “walk in the park” is an understatement. I often hear clients, friends, and family (some who have stressful jobs themselves) say, “I don’t know how you do it.” Then add to the subject matter of what I do the fact that I practice in one of the most competitive legal environments in the world, and it’s no wonder there is a high rate of divorce and substance abuse among divorce attorneys. Like Tom Cruise’s character in Risky Business, Joel Goodson, who dealt in “human pleasure,” I deal in adversity. Long before clients come to my office they usually have experienced some type of adversity: Their spouse fell out of love with them and in love with someone else,

they have suffered business reversals, or they have had to confront serious issues involving either themselves or their children, such as substance abuse, depression, or special needs. After the divorce process begins, they may experience adversity from a judge, the opposing party, or their ex-spouse. The reality is that, as human beings, we all experience adversity in some form during our lifetimes. Some experience it more than others but no one escapes life unscathed. The question is not whether you will have to confront adversity; the question is what you do when it happens to you. Oprah Winfrey, a woman I greatly admire who has publicly admitted to experiencing adversity at a young age, said, “Where there is no struggle there is no strength.” In other words, we get our strength as a result of adverse

QUOTE:

THE QUESTION IS NOT WHETHER YOU WILL HAVE TO CONFRONT ADVERSITY; THE QUESTION IS WHAT YOU DO WHEN IT HAPPENS TO YOU.

circumstances. If we didn’t have these oppor tunities, we would not develop the ability to become stronger. Certainly that is true for me. I was the eldest of three sisters who fought physically and ver bally. Of course the verbal fighting always hurt more. Through those experiences, I learned how to defend myself and, most importantly, how to go on the offense when necessary. After I got married, I had a child with special needs. She has taught me many things about love and life. Some of the most important lessons I learned from her are not to give up, embrace what you have, make it the best it can be, and grow as a person. Recently in my professional career I faced adversity. Although many of my colleagues supported and encouraged me with words that I would get through it, many exploited my adversity to enhance their own reputation in the legal community. Instead of retreating and feeling sorry for myself or being ashamed, I chose not to hide; instead, I chose to confront

what happened, learn from the experience, and become a better and stronger person and lawyer. Another public figure who has experienced adversity on the world stage is Arnold Schwarz enegger, who has perceptively noted, “Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength.” We can either give in or we can face what has happened to us and decide to learn from the experience and fight for ourselves. In all aspects of my personal and profes sional life, I have decided to fight. To fight for my daughter to ensure she has a wonderful life. To fight on behalf of my clients when no one else wanted to take their cases and to prevail for them. That is what has made me the divorce attorney I am today. There is no attorney who is more committed to their clients than I am. I am committed to helping them overcome ad versity, win their case, and make them better people. end

Advisory Meyer / SoCal IP

SoCal IP.indd 1

CSQ Q2 2019

10/24/17 11:49 AM

C-Suite AdvisorsTM Index ACCOUNTING

FINANCE

Trent Brown Deloitte & Touche LLP trbrown@deloitte.com

Adam Abramowitz Intrepid Investment Bankers aabramowitz@intrepidib.com

Howard Grobstein Managing Partner Grobstein Teeple LLP 818/532.1020 hgrobstein@gtllp.com

Ed Bagdasarian Intrepid Investment Bankers ebagdasarian@intrepidib.com

Kris Kaufmann BDO USA, LLP kkaufmann@bdo.com T’Shaka Lee Deloitte & Touche LLP tshakalee@deloitte.com Scott M. Sachs, CPA CohnReznick, LLP scott.sachs@cohnreznick.com CONSULTING Majid Abai Concepts Rise, LLC majid.abai@conceptsrise.com

Geoffrey R. Berlin J.P. Morgan Private Bank geoffrey.r.berlin@jpmorgan.com Jonathan Bluth Intrepid Investment Bankers jbluth@intrepidib.com Claudia Bodan Commercial Bank of California cbodan@cbcal.com Ryan Bristol Managing Director J.P.Morgan Private Bank 805/857.7628 ryan.bristol@jpmorgan.com

Brian Barry Dale Carnegie brian_barry@dalecarnegie.com

Robert Dalie Executive Director, Investments The Summa Group of Oppenheimer & Co. Inc. 310/446.7501 robert.dalie@opco.com

Adam Bohn INC Technologies adam@inctech.net

Doug DeGroote DeGroote Financial Group doug@degrootefinancial.com

Joe Fox CEO Vroozi 866/509.5045 joe.fox@vroozi.com

Josh Fein Advice Period josh.fein@adviceperiod.com

James Harwood CoAdvantage james@totalhrmanagement.com

Ashok Patel Commercial Bank of California apatel@cbcal.com Brandon Quartararo Intrepid Investment Bankers bquartararo@intrepidib.com Mike Rosenberg Intrepid Investment Bankers mrosenberg@intrepidib.com Larry Schnaid UBS Financial Services larry.schnaid@ubs.com Rich A. Schuette Avalan LLC rich@avalanwealth.com Michael Schwartz Galerie Michael, Inc. art@galeriemichael.com Nerre Shuriah First Citizens Bank nerre.shuriah@firstcitizens.com Bruce Simon City National Rochdale LLC bruce.simon@cnr.com Tristan Snyder AGC Partners tsnyder@agcpartners.com

Advisory CSA Index

Jessop Fowler Merrill Corporation jessop.fowler@merrillcorp.com

Aramis Hernandez INC Technologies aramis@inctech.net

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

Kevin S. Parikh Avasant kevin.parikh@avasant.com

Brian Werdesheim Oppenheimer & Co. Inc. brian.werdesheim@opco.com

Dave Wolinksy Palm Tree dwolinksy@palmtreeadvisors.com

Jonathan Zucker Head of Capital Markets Group and Managing Director Intrepid Investment Bankers jzucker@intrepidib.com

INSURANCE Bradley A. Barros Private Risk Capital bbarros@privateriskcapital.com Robert Di Paolo HUB International rob.dipaolo@hubinternational.com Bryce Eddy Tolman & Wiker Insurance Services beddy@tolmanandwiker.com Martin Levy, CLU/RHU President & Founder CorpStrat Inc. 818/377.7260 marty@corpstrat.com Lars Rathje Lockton Companies lrathje@lockton.com Danone Simpson Montage Insurance Solutions danone@montageinsurance.com Gregory Stephens Tolman and Wiker Insurance Services gstephens@tolmanandwiker.com Robyn Welch HUB International robyn.welch@hubinternational.com Scott Zimmerman CorpStrat Inc. scott@corpstrat.com LEGAL Jennifer Archie Latham & Watkins LLP jennifer.archie@lw.com

HEALTH & WELLNESS

Lawrence M. Braun Sheppard Mullin lbraun@sheppardmullin.com

Michele L. Havens Northern Trust mlf3@ntrs.com

Gregory Albaugh, DO, FACS Coastal Vascular Center cvc@coastalvascularcenter.com

Joseph Calabrese Latham & Watkins LLP joseph.calabrese@lw.com

Andy Popov Avasant andy.popov@avasant.com

Alan Hopkins Manchester Financial alan@mfinvest.com

Deborah Shames Eloqui dshames@eloqui.biz

Shahzad Khan Commercial Bank of California skhan@cbcal.com

Alen N. Cohen, MD, FACS Southern California Sinus Institute dracohen@gmail.com

Will Chuchawat Sheppard, Mullin, Richter & Hampton LLP wchuchawat@sheppardmullin.com

Randall Stone *māz randall.stone@emazexp.com

Harry Galstian Direct Tax Relief harry@directtaxrelief.com

Jeffrey R. Knakal Growth Partners jeff@growthpartners.net

Carol A. Polevoi, LMFT, CBS, CPC Counseling Resource Center carolpolevoi@gmail.com

Vlad Vaiman Cal Lutheran University vvlaiman@callutheran.com

Pardis Nasseri Palm Tree pardis@palmtreeadvisors.com

Brennan Spiegel, MD Cedars-Sinai Health System brennan.spiegel@cshs.org

Danielle Gotcher Gotcher Law dhg@gotcherlaw.com

Edward C. Wilson-Smythe Avasant edward.wilson-smythe@avasant.com

Marvin Padilla Intrepid Investment Bankers mpadilla@intrepidib.com

Amir Vokshoor, MD Providence St. John’s Health Center & Institute of Neuro Innovation vokshoor@gmail.com

James Gotcher Gotcher Law jkg@gotcherlaw.com

100

C-SUITE ADVISORY

Marina Lang SoCal IP Law Group LLP mlang@socalip.com

William Mark Levinson Partner, Corporate Mergers & Acquisitions, Securities, Capital Markets Finance, Real Estate Thompson Coburn LLP 310/282.2520 mlevinson@thompsoncoburn.com Lisa Meyer Founding Partner Meyer, Olson, Lowy & Meyers LLP 424/644.0225 lhm@molfamlaw.com Stacy D. Phillips Blank Rome LLP sdpdissoqueen@blankrome.com Peter K. Rosen Latham & Watkins LLP peter.rosen@lw.com Russell F. Sauer, Jr. Latham & Watkins LLP russell.sauer@lw.com Lisbeth Savill Latham & Watkins LLP lisbeth.savill@lw.com Steven C. Sereboff Partner SoCal IP Law Group LLP 805/230.1350 ssereboff@socalip.com Bob Steinberg Latham & Watkins LLP bob.steinberg@lw.com

Zachary M. Turke Sheppard Mullin zturke@sheppardmullin.com

Mike Schaffer Echo-Factory michael@echo-factory.com

Shay Hughes Hughes Marino shay@hughesmarino.com

W. Alex Voxman Latham & Watkins LLP alex.voxman@lw.com

Jeffrey Stewart Definity First jeffrey.stewart@definityfirst.com

Tucker Hughes Hughes Marino tucker@hughesmarino.com

Sander C. Zagzebski Partner Greenspoon Marder LLP 323/880.4520 Sander.Zagzebski@gmlaw.com

Michael Terpin SocialRadius michael@socialradius.com

Brian A. Sidman BAS Holdings brian@basholdings.com

Robert B. Yallen InterMedia Advertising ryallen@intermedia-advertising.com

Jack Turturici Jr. Equity Advisors jturturici@eahomesales.com

Matthew Zehner Zehner mzehner@zehnergroup.com

Michele Turturici Equity Advisors mturturici@eahomesales.com

MARKETING Michael Abraham DefinityFirst michael.abraham@definityfirst.com Tony Adam Visible Factors tony@visiblefactors.com David Angelo David&Goliath david.angelo@dng.com Erik Huberman Hawke Media erik@hawkemedia.com Jennifer Hurless Go Be Social Media owner@gobesocialmedia.com

REAL ESTATE Winton Berci Mazirow Commercial Inc. wberci@tenantadvisory.com Todd Doney CBRE todd.doney@cbre.com Jilliene Helman RealtyMogul.com jilliene@realtymogul.com

advisory@csq.com

Jason Hughes Hughes Marino jason@hughesmarino.com

Advisory CSA Index Charlie Ittner Darien Group charlie@dariengroup.com

for Elite members who appear in print

Updates Claudia Bodan, Shahzad Khan Commercial Bank of California

Martin Levy Corporate Strategies

Stacy D. Phillips Blank Rome LLP

Commercial Bank of California is developing a unique cash-flow platform that will be available in Q4 2019. The solution combines everyday business applications into one platform to reduce the friction of managing payables and receivables, invoicing, payroll, and more.

CorpStrat principals Scott Zimmerman and Martin Levy are qualified as life members of The Million Dollar Round Table, an elite group representing the top 1 percent of insurance advisors in the US. Corporate Strategies also received “ACE Elite” status from Anthem, recognizing them as one of the top 20 producers in California.

Phillips was named again in 2019 to the Los Angeles Business Journal’s “500 Most Influen-

Howard Grobstein Grobstein Peebles LLP Grobstein Teeple LLP has become the inaugural member firm of the UHY Advisors Alliance. As part of the Advisors Alliance, Grobstein Teeple will expand its presence as an expert provider of accounting and business consulting services to middle market companies in the US and abroad.

CSQ Q2 2019

tial People” after first joining the list in 2017, and she recently joined the board of Public Counsel, the nation’s largest pro bono law firm.

Lisa Meyer Meyer, Olson, Lowy & Meyers Family law firm Meyer, Olson, Lowy & Meyers Partner Felicia R. Meyers is among 75 of the city’s most influential women attorneys honored in the Los Angeles Business Journal’s annual special supplement.

101

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.

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

104 Exhibits and Performances 106 Proprietor’s Profile 108 Social Events 109 Required Reading and Viewing 110 Social Responsibility

Read about Chef JeanGeorges’ favorite places to dine in LA and NY and all about his new menu at The Rooftop by JG (below), starting on page 106.

Culture & Taste

Part 4

Culture & Taste - TOC

CSQ Q2 2019

103

Some of the most alluring art shows and museum exhibits on each coast. By Brittany Fuisz

EXHIBITS AND PERFORMANCES

Now Showing

Los Angeles

New York

Culture & Taste - Exhibits

ANDY WARHOL: THE ASPEN PHOTOGRAPHS

AROUND TOWN LA Other Exhibits of Note This Season

WHITNEY BIENNIAL

AROUND TOWN NYC Other Exhibits of Note This Season

The art collecting, dealing, and production arm Hedges Projects brings together for an online show a collection of photographs by Andy Warhol from his time in Aspen. Warhol purchased 40 acres just outside the town in the 1980s and photographed the area extensively. “When you leave the city and go out in the country you’re always tempted to think, ‘This is the real America,’” Warhol said. “The air smells so great and the land with nothing on it looks so peaceful, and you remember all the wonderful things about being away from town with everything quiet and calm for a change.” The collection strays outside Warhol’s pop-culture norm. Here, we see photographs of skylines, trees, snow, or just an Aspen magazine with a matchbook, helping sustain Warhol’s lasting inscrutability.

The Cityscape Show IX

First created by museum founder Gertrude Vanderbilt Whitney in 1932, the Whitney Biennial captures the pulse of the American arts. The event features more than 75 artists working across a range of mediums, including sculpture, film and video, photography, and painting. As always, the Whitney aims to ignite conversations that not only raise questions about our world but also about the self. Curators Jane Panetta and Rujeko Hockley visited more than 300 artist studios and found work with themes ranging from the human body to sociopolitical concerns. Overall, the show gives a lasting message of hope, particularly in the diversity of races and genders reflected. whitney.org

Tom Wesselmann: Flowers

July 24–September 1, 2019

hedges-projects.com

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CULTURE & TASTE

Through August 3, 2019 George Billis Gallery

Inside Out

Through August 9, 2019 Artspace Warehouse

Marty Schnapf: Loves and Lovers

Through August 17, 2019 Diane Rosenstein Gallery

On Paper

Through August 17, 2019 Simard Bilodeau Contemporary

María Berrío: A Cloud’s Roots

Through August 23, 2019 Kohn Gallery

In Focus: The Camera July 30, 2019, through January 5, 2020 The Getty Center

Through September 22, 2019

Through August 16, 2019 Gagosian Gallery

European Masters of the Early Twentieth Century

Through September 21, 2019 Rosenberg & Co.

Landscapes, Skyscapes and Waterscapes

Through September 28, 2019 Alpha 137 Gallery

Culture and The People: El Museo del Barrio, 1969–2019

Through September 29, 2019 El Museo del Barrio

Summer in the City

Through September 30, 2019 Elisa Contemporary

The Hugo Boss Prize 2018: Simone Leigh, Loophole of Retreat Through October 27, 2019 The Guggenheim

The Watts Willowbrook Clubhouse of Boys & Girls Clubs of Metro Los Angeles is honored to unveil its new state-of-the-art Center of Innovation, designed to be conducive to creative learning and hands-on experimental work. Funded by the Walt Disney Company, the STEM Center of Innovation will help our members on the path to Great Futures!

GREAT FUTURES START HERE. STEM education is critical to the future success of our youth, as most of the fastest growing jobs in the U.S require education in STEM. With the demand for STEM professionals, it is imperative to inspire curiosity and passion for these subjects among our youth.

Boys & Girls Clubds

Donate to BGCMLA Online at www.bgcmla.org/ waystogive Mail your gift to the following address: 800 S. Figueroa Street, Suite 950 Los Angeles, CA 90017

www.bgcmla.org

SUPPORT A GREAT FUTURE! @bgcmla

With 36 restaurants around the world and four Michelin stars (two in New York, one in Tokyo, a nd one i n Sao Pau lo), C hef Jean-Georges Vongerichten splits his time between multiple continents, with monthly bicoastal treks from New York to Los Angeles. At the Waldorf Astoria in Beverly Hills, The Rooftop by JG just launched a new brunch and an Asian-inspired lunch and din-

Top Chef Dining around Los Angeles and New York with Chef Jean-Georges Vongerichten. By Carole Dixon

ner menu. Back in New York, the French-born chef has opened two back-to-back restaurants in historic spots at JFK and South Street Seaport, crowning him as one of the busiest and most successful toques on the planet. Here, Jean-Georges guides us around Los Angeles and New York to some of his favorite spots for breakfast, lunch (never!), dinner, and late-night meals.

Culture & Taste - Proprietors LA 2

Los Angeles

Asian Inspiration

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CULTURE & TASTE

On the rooftop in Beverly Hills, we’ve made the menu a little more Asian but we also have guacamole on a few things like tacos. For the new menus, we have ginger fried rice, tofu pad Thai noodles, chili beef skewers, chicken samosas, and black pepper shrimp. It’s a little more fun finger food for sharing. We have the best view in L.A. and we should have the best international flavors up there. On the new brunch menu, we have the tuna tartare or Thai short rib burger. W hen I was 23 years old, I spent five yeawrs in Asia, starting in 1980, with two years in Bangkok. I worked for a few months at The Mandarin Oriental hotel, then I went to Singapore, Hong Kong, and Tokyo. I learned a few tricks and flavors that were unknown to me that changed my life. My palate was really French from cooking in Lyon and the South of France, but then I discovered lemongrass, chilis, and ginger, which is one of my favorite ingredients—it’s so pungent and fragrant. The ginger margarita on The Rooftop at JG is my favorite drink.

Downstairs is more “JeanGeorges,” but not too much fine dining. It’s elegant yet light and fresh—we are using more from the garden. L.A. has always been an inspiration because there is a garden year-round and I’ve always been a vegetable person. The avocado pizza with jalapeno, cilantro, and lime was created for L.A., which is a wink at avocado toast since L.A. is the avocado capital of the world. Breakfast in L.A.

We went everywhere from Eggslut to Gjelina Take Away in Venice. California is super healthy and the garden of America, but they like French food as much as in New York and everything fried more than anything else. L.A. is a great place for us; we always find new recipes and dozens of new ideas. No Country for Lunch

I never go out to lunch in L.A. or New York, as I always have to be working.

Gathering Inspiration from L.A.’s Top Chefs

[W hen in L .A. restaurant research], for dinner, we went to Bavel for Middle Eastern inspiration. For Asian, it was Majordomo to see what David Chang was doing, and we ate lots of sushi from the original Matsuhisa by my friend Nobu and at Sushi Park. Chef Ludo is also a good friend and I always want to see what he is for doing the French way (at Trois Mec and Petit Trois); also Republique; Animal; Jon & Vinny’s; and Mozza. I tried to go everywhere to see what is going on and what people are eating. It’s like New York— something is always happening. Last time, I went to the Farmers Market in Santa Monica and saw all the beautiful cherries and strawberries before they hit the market in New York. We have a shorter season there and have to rely on a bounty of ingredients from L.A.

Photo Credit: (1) Billy Farrell/BFA.com, (3) JAN SCHUENKE, (5) Vanessa Tierney Photography

PROPRIETOR’S PROFILE

Culture & Taste - Proprietors NY

New York

1. Chef Jean-Georges Vongerichten 2. The downstairs JeanGeorges restaurant at the Waldorff Astoria in Beverly Hills is more classic and formal 3. The Rooftop by JG at the Waldorf Astoria in Beverly Hills features spectacular views over Los Angeles, as well as a new Asianinspired menu 4. The ginger margarita at the Rooftop at JG is his favorite cocktail 5. Ginger fried rice 6. Chef Jean-Georges created an avocado pizza specifically for Los Angeles 7–8. Jean-Georges just opened two restaurants within 24 hours in NY: The Fulton at Pier 17 (right) and the Paris Café at the TWA Hotel (above)

CSQ Q2 2019

Breakfast in New York

Latest East Coast Openings

In New York, we are in Union Square, where we opened a vegan restaurant a few years ago, abcV, and we have beautiful dosas but I also like the chia bowl for breakfast. I also love Sadelle’s. They make their own bagels and smoked salmon. It’s very delicious, very New York. I also like the old school Greek diners on Madison near The Mark Hotel.

We just opened the Fulton seafood restaurant on Pier 17 in South Street Seaport overlooking the water and the boats—so beautiful! We also took over the food and beverage at the TWA Hotel at JFK. It’s an iconic 1962 building design and we kept the same name, Paris Café. Those are my two latest children. We opened two restaurants in 24 hours and it was completely crazy!

Late Night Bites

As a chef, you always try to find places that are open later, so after work you can really enjoy, have a nice drink and a little snack. I finish working later at 10:30 or 11 p.m., so I want to eat sushi or steak tartare with French fries and oysters. There are so many places to go late at night. Great NY Noodletown is a favorite for Chinese in Chinatown; in the West Village, Don Angie has great lasagna and a nice late-night scene. 4 Charles Prime Rib is from the same team behind Au Cheval in Chicago and has a great burger, the best steak, and charcuterie, and it’s only three blocks away from my house.

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EVENTS

New York

POLO HAMPTONS Saturday, July 6, 2019

SAMUEL WAXMAN CANCER RESEARCH FOUNDATION 15TH ANNUAL HAMPTONS HAPPENING Saturday, July 13, 2019

DANCERS FOR GOOD Friday, July 19, 2019

Spend an unforgettable afternoon enjoying polo with players such as Martin Pepa and Mariano Gonzalez in the Hamptons as philanthropic power couple Maria and Kenneth Fishel host Polo Hamptons. The third annual event will take place for the second time at the Fishels’ beautifully landscaped Bridgehampton estate, which is also an agricultural reserve. Highlights from last year include fashion designer Rachel Zoe posing with fans and speaking about her Rachel Zoe Collection. In addition to prime viewing for the polo match, guests will enjoy an open-bar cocktail party with hors d’oeuvres by Elegant Affairs.

Lidia Bastianich, Nicole Miller, Ian Duke and Antonella Bertello are the honorees at this year’s event, one of the East End’s most anticipated summer fundraisers thanks to the combination of fine food and entertainment. This year’s live music will come from Pat Farrell and the Cold Spring Harbor Band’s Billy Joel Tribute Show. The evening also offers a “Tour de Cuisine” featuring food, wine, and spirit tastings from The Baker House 1650, Bastianich Family of Restaurants, MarieBelle New York chocolates, Union Cantina, and Southampton Social Club. Proceeds support groundbreaking cancer research.

This year’s performers at Dancers for Good include The Verdon Fosse Legacy, Paul Taylor Dance Company, Madboots Dance, and Carolyn Dorfman Dance. Proceeds support The Actors Fund and its vast array of services, including helping actors finding employment and career stability. Broadway director and choreographer Jerry Mitchell (Kinky Boots) will be honored and the evening will be hosted by Cady Huffman (The Producers). Dancers for Good will also honor dance legends Bob Fosse (Cabaret, Chicago) and Gwen Verdon (Damn Yankees, Sweet Charity) for Lifetime Achievement in Dance.

From $175 polohamptons.com

From $425 waxmancancer.org

From $150 dancersforgood.org

Hot Spots You don’t have to be a Hamptons local to live like one this summer. Here, a guide to the events, benefits, and galas everyone will be talking about this season. By Norah Bradford

Culture & Taste - NY Social Events

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CULTURE & TASTE

SOUTHAMPTON ANIMAL SHELTER FOUNDATION’S 10TH ANNUAL UNCONDITIONAL LOVE GALA Saturday, July 20, 2019

PROSTATE CANCER FOUNDATION’S ANNUAL GALA AND TENNIS TOURNAMENT Saturday, August 24, 2019

The tents at Wickapogue and Old Town Roads in Southampton will host this year’s signature event for animal lovers, hosted by philanthropist Jean Shafiroff, which will kick off with cocktails, followed by dinner catered by Stone Creek Inn. Guests will also enjoy music by dance band Nation and a silent auction that include packages for five-star European hotels, outings at the East End’s most prestigious golf courses, and more.

This year, the annual gala will be held at the Parrish Art Museum in Watermill and highlight the PCF Pro-Am Tennis Tournament. The gala is a celebration featuring cocktails, dining, and special performances. All funds raised will support groundbreaking discoveries in cancer research. Last year’s event raised more than $4M.

From $500 southamptonanimalshelter.com

From $2,500 pcf.org

REQUIRED READING AND VIEWING

Founded in 1989, IMI Living specializes in bridging the gap between marketing and sales of resort projects. In its 30-year history, the company has completed more than 15,000 transactions totaling more than $9B in real estate, continually working with brands like Four Seasons, Rosewood, Montage, and St. Regis. With projects completed and in progress in more than 18 states and 9 countries, IMI has just signed to manage their 100th project, and is currently working with Four Seasons Anguilla, Four Seasons Caye Chapel, Quivira, Espiritu at Palmilla, Saint Peter’s Bay in Barbados, and the Concours Club in Miami.

Innovative Insights

Here, IMI Living’s founding partner and CEO Mike Collins (imiliving.com) shares the media that impacts and entertains him.

1. Port Ferdinand, Barbados 2. Four Seasons Anguilla 3. Jack Nicklaus

By Samantha Brooks

Culture & Taste - Required Reading 2

Digital

Reading

I started this company when I was 25 years old, and there were fax machines. I come from the old school. I have a sophisticated organization of people who follow social media platforms, but I’ve elected not to do social media for myself. For information, I generally read Apple news on my iPad. I’ll read maybe five stories that pertain to what I’m doing— whether it’s a political debate or what’s happening at resorts in the Dominican Republic. I love how they give you new stories to look at that are related to what you just read. You get so much from one program.

The most important book when I started business was The Art of Closing Any Deal by James W. Pickens. It teaches you that you have to grab multiple hats to be a successful businessperson: You have to know their interests; speak to their needs; and engage with multiple people at any time. Right now I’m reading Make Big Happen by Mark Moses. A lot of times I’ll skip around in a book and pick sections. This one is about how to live well, give well, and work well. One of the mottos for me and our company is that we’re very kind people. We realize that work is über important, and relationships are über important. If you treat people well, that comes back to you in a good way. One of our good business partners is Jack Nicklaus, and he’s not just one of the greatest golfers ever, but one of the greatest athletes ever. There’s a book on him called Simply the Best! by Martin Davis. I like reading motivational sports books to keep my mind sharp and on track to win.

Photo Credit: IMDb, Amazon

Television and Film

Everything I watch for entertainment is about people who are driven to be successful. My wife and I watch The Voice and America’s Got Talent with our 4-month old, and I love Billions and Suits. We try to go to the movies when possible. Bohemian Rhapsody was great last year. Shawshank Redemption is my favorite movie of all time. 3 CSQ Q2 2019

109

A behind-the-scenes look at the Rolex Awards for Enterprise. By Carolyn Meers

SOCIAL RESPONSIBILITY

Time for Change In 1976, long before big luxury brands were channeling funding toward boundary-breaking ideas or rallying behind ethically and environmentally conscious practices, Rolex launched its Awards for Enterprise to spotlight individuals pioneering fresh, original approaches to important issues within science, technology, and sustainability. Today, the awards have more traction than ever. Rolex receives as many as 3,000 applications from some 150 countries for each series, and applicants ranging in age from 24 to 74. “We initiated the Rolex Awards for Enterprise out of a conviction that we had a responsibility as a company to take an active interest in improving life on our planet and in the desire to foster values we cherish: quality, ingenuity, determination, and above all a spirit of enterprise,” says Andre J. Heiniger, former chairman of Rolex and founder of the Rolex Awards for Enterprise. This year, Rolex’s jury panel evaluated 957 candidates from 111 countries before selecting the final 10 nominees. Then, for the first time, the public was invited to weigh in through social media, and five laureates ultimately were chosen by the jury. This past June, Rolex honored the winning laureates, João CamposSilva, Grégoire Courtine, Brian Gitta, Krithi Karanth and Miranda Wang, in a ceremony at the Smithsonian American Art Museum in Washington, DC. This year’s group takes on a diverse range of issues. From 25-year-old Vancouver native Wang’s recipe for accelerated plastic composting (turning it into useful, valuable chemicals) to French researcher Courtine’s electronic implant that bypasses the site of a back injury and enables paralyzed patients to walk, these laureates are poised to overcome some of today’s most daunting human challenges. Honorees will each get a chance to confab with Rolex’s network of former laureates and jury members, receive $200,000 to help advance their project, and be given a Rolex chronometer. rolex.org

Social Responsibility

110

CULTURE & TASTE

THE FIVE ROLEX LAUREATES FOR 2019: 1. João Campos-Silva aims to help endangered fish in the Amazon 2–3. Krithi Karanth is a wildlife conservationist 4–5. Miranda Wang is finding solutions to plastic waste 6–7. Medical scientist Grégoire Courtine is helping people walk again after devastating injuries

8. Brian Gitta is fighting the war on malaria

112 CSQ Visionary Awards and NextGen Founders Summit 116 Entrepreneur of The Year 2019 Greater Los Angeles Awards Gala 117 2019 Business Leaders’ Breakfast 118 ACG Los Angeles Awards Dinner 119 The Or Not Expe rience: Pot or Not

Josh Berman, David Wurth, Chris DeWolfe, Payal Kadakia, Chris Achar at The CSQ Next Gen Founders Summit and Visionary Awards.

CSQ Q2 2019

The Network

Part 5

The Network - Cover

111

VISIONARIES SERIES

NOTABLE SPEAKERS

CSQ VISIONARY AWARDS AND NEXTGEN FOUNDERS SUMMIT

Chris DeWolfe, co-founder and CEO, Jam City

April 17, 2019 Culver City, CA Jam City, C-Suite Quarterly

Payal Kadakia, co-founder and CEO, ClassPass Chris Achar, founder and CEO, Genzum Michael and Daniel Broukhim, co-founders and CEOs, FabFitFun Steve Gatena, founder and CEO, Pray.com Trina Spear, co-founder and co-CEO, FIGS

MISSION The CSQ Visionary Awards and NextGen Summit, held in conjunction with the release of the highly anticipated bicoastal Innovation & Technology issue, included a spotlight on its honorees, NextGen founders and CEOs, and our list of NextGen 40 Under 40 who are disrupting their fields and industries through their innovation and exceptional work. The event was hosted at Jam City headquarters in Culver City.

The Network - Visionaries Awards

EVENT HIGHLIGHTS Tentpole awards went to Los Angeles Visionary of the Year, tech innovator and co-founder of mySpace, Chris DeWolfe, and NextGen of the Year, Payal Kadakia. Kadakia received a memorable introduction from Chris Achar, founder and CEO at Genzum. Other honorees were Michael and Daniel Broukhim from FabFitFun; Geoffrey Chaiken from Blink Health; Steve Gatena from Pray.com; and Heather Hasson and Trina Spear from FIGS. 112

THE NETWORK

SIGNATURE SPONSORS Alliance 360 Insurance Bank of America Merrill Lynch Burgess Clay Lacy Aviation Commercial Bank of California Cresa Databricks Echo-Factory Hawke Media Health-Ade Kombucha Inspirato Intrepid Investment Bankers Jam City Latham & Watkins LLP One Coast Pacific Palisades Tangram Vroozi

The Network - Visionaries Awards 4

1 David Wurth, Chris DeWolfe 2 Dennis Clapp, Alex Voxman 3 Daniel and Michael Broukhim 4 Chris Achar, Payal Kadakia, DavidÂ Wurth 5 Jessica and Steve Gatena 6 David Wurth and Dav Ilves 7 Pray.com team 8 Jam City headquarters

CSQ Q2 2019

113

The Network - Visionaries Awards 4

1 Chris Achar, Payal Kadakia 2 Ian Blackburn, Beekeeper Cellars 3 Jonathan Zweig, Adam Piechowicz 4 Claudia Bodan, David Wurth, Alyssa Rizo 5 PLATEA 6 Chris Shoff, Steve Gatena, Trina Spear, and Daniel and Michael Broukhim 7 Erik Huberman, Mark Stagen 8 Justin Trout, Vanessa Dew

114

THE NETWORK

VISIONARIES SERIES

The Network - Visionaries Awards 3

PHOTOGRAPHY Steven Blutstein 1 NextGen Summit at Jam City 2 Josh Berman, David Wurth, Chris DeWolfe, Payal Kadakia, Chris Achar 3 David Wurth, Chris DeWolfe 4 Terry Haller, Erik Huberman 5 David Wurth, Najeeb Ghauri 6 Heirloom LA catering 7 Dennis Clapp, Tiffany Wright

CSQ Q2 2019

EVENT CONTACT To learn more about the CSQÂ Visionary Awards, contact: events@csq.com 115

ENTREPRENEUR OF THE YEAR 2019 GREATER LOS ANGELES AWARDS GALA June 20, 2019 Beverly Hills, CA EY

Signature Sponsors Ballard Spahr LLP Boston Private Bank Cresa C-Suite Media Ewing Marion Kauffman Foundation Marsh Olmstead Williams Communications SAP America Tangram

Mission EY has recognized more than 10,000 business leaders globally, in 145 cities and 60 countries, since the inception of its Entrepreneur of the Year program more than 30 years ago. Event Highlights Winners in Greater Los Angeles were selected by an independent panel of judges and unveiled at a 700-person black-tie gala.

Award Winners Daniel and Michael Broukhim, Co-CEOs and Co-Founders, FabFitFun Jessica Hawthorne-Castro, Chairman and CEO, Hawthorne Direct Ryan Hudson, Co-Founder and President, Honey Daniel Kim, Co-Founder and CEO, AuditBoard

The Network - EY Awards 4

Katie Kitchens, Co-Founder and Editor-in-Chief, FabFitFun Jay Lee, Co-Founder and President, AuditBoard Josh Meyers, CEO, Slickdeals Guy Oranim, CEO and Co-Founder, First Media Sharon Rechter, President and Co-Founder, First Media George Ruan, CEO and Co-Founder, Honey

Nate Snyder, CEO and Co-Founder, Ovation Fertility Notable Speakers Christine Devine, KTTV Fox 11 News anchor

PHOTOGRAPHY Jon Delouz EVENT CONTACT Ashley Evans

ashley.evans1@ey.com 116

THE NETWORK

1 Sunny Huang and Faye Nguyen 2 Winner Group Photo 3 George Ruan and Ryan Hudson 4 Jessica Hawthorne-Castro and David Wurth 5 Andy Park 6 Renata Simril, Chuck Davis, and Jan Davis 7 Scott Porter, Gillian Zucker, and Kailesh Karavadra 8 Christine Devine, Katie Kitchens, and Christina Coria

2019 BUSINESS LEADERS’ BREAKFAST June 18, 2019 Los Angeles, CA Greater Los Angeles Area Council, Boy Scouts of America (GLAAC BSA) 1 Mission The Business Leaders’ Breakfast is a networking event for the Greater Los Angeles business community that raises awareness and funds for scouting programs. Event Highlights Stephen Silk, managing director of Eastdil Secured, interviewed GLAAC BSA’s 2019 Business Leader of the Year Christopher Rising, co-founder and CEO of Rising Realty.

Notable Speakers Christopher Martin, chairman and CEO, AC Martin, the GLAAC BSA 2018 Business Leader of the Year Signature Sponsors John C. Cushman III Timothy Greenleaf

The Network - Breakfast

John Johnson, The Spartan Group

Brian Matthews, Payden & RygelAndrew McDonald, Cushman & Wakefield Kevin A. Shannon, Newmark Knight Frank Stephen R. Silk, Eastdil Secured The Trust Building, The CalEdison DTLA, 1 Cal Plaza Kennedy Wilson Jeffrey Worthe, Worthe Real Estate Group

PHOTOGRAPHY Sean Twomey EVENT CONTACT Tim Greenleaf

timothy.r.greenleaf@gmail.com

1 Thomas McDonald, Timothy Greenleaf, Christopher Rising, Jeff Hunt, Travis Williams 2 Christopher Rising, David Wurth, Nelson Rising 3 Opening Ceremony 4 Mark Mendelsohn, Susan Porter Griego, Timothy Greenleaf 5 Tim O’Brien and Nelson Rising 6 Christopher Martin, Christopher Rising, Timothy Greenleaf, Thomas McDonald 7 John Johnson and Timothy Greenleaf 8 The Rising family. Daughter Arianne, wife Anna-Christine Rising, son John-Carl, Christopher Rising, father Nelson Rising, mother Sharon Rising, daughter Annelise

CSQ Q2 2019

117

ACG LOS ANGELES AWARDS DINNER May 1, 2019 Los Angeles, CA Association for Corporate Growth 1

Mission The Los Angeles Chapter of the Association for Corporate Growth (ACG) honored eight Los Angeles–area companies on May 1, 2019 at its ninth annual ACG L.A. Awards Ceremony at the Walt Disney Concert Hall. Event Highlights “All of these winners have one thing in common: They’re focused on driving growth. That’s a core tenant of ACG,” said Suzie Doran, president of ACG Los Angeles and partner at SingerLewak. “These awards are our way of distinguishing local companies that have made an important impact in their region. These winners are a true testament to the flourishing business community in Los Angeles.”

The Network - ACG LA 5

Notable Speakers Mayor Eric Garcetti Signature Sponsors KPMG Sidley Austin Wells Fargo

PHOTOGRAPHY Dennis Trantham Westside Studio EVENT CONTACT Bill Weber

bill@acgla.org

1 Roger O’Brien, which was honored with the ACG Strategic Growth Award, and Frank Mottek 2 Suzie Doran 3 Anastasia Soare wins the Deal of the Year Award 4 Fair Inc. with their award for Technology Innovation 5 Katherine Markova and Charity Manley 6 Tom Penn accepts the Mayor’s Award 7 Ryan Youhan, Kevin Manion, Craig Beatty, Charity Manley 8 Daria Boxer, Tom Hill, Tunisha Collure 9 Roger O’Brien speaks at the event 10 Rehan Chaudhry and Orin Winick

118

THE NETWORK

THE OR NOT EXPERIENCE: POT OR NOT May 31, 2019 Southampton, NY Loeb.nyc, PRØHBTD, Bonin Ventures, Nue Agency Mission The Or Not Experience, a proprietary collaboration between Loeb.nyc and Bonin Ventures, is designed to separate the hype from the real conversation around the latest marketing tactics and emerging industries. Each year’s conference focuses on a new theme based on what’s trending. In its third year, the conference explored one of today’s hottest topics: cannabis.

Event Highlights Pot or Not brought together cannabis professionals from all business sectors to share stories and information with brand marketers. Notable Speakers Peter Barsoom, CEO and Co-Founder, 1906 Sheldon Croome, CEO and President, Atlas Growers

The Network - Pot or Not

Darien Dash, Partner, The Movement Management Advisors John Deschner, Managing Director, Condé Nast CNX Group

Catharine Dockery, Founding Partner, Vice Ventures Fab Five Freddy, Filmmaker Kassandra Frederique, New York State Director, Drug Policy Alliance Michael Loeb, CEO, Loeb.nyc Emily Paxhia, Managing Director, Poseidon Asset Management Tahira Rehmatullah, Managing Partner, Hypur Ventures

Cy Scott, Co-Founder and CEO, Headset Inc. Drake Sutton-Shearer, CEO and Founder, PRØHBTD Signature Sponsors 1906 GroStaff Old Pal PHOTOGRAPHY TelyFoto Inc. EVENT CONTACT Katie Loeb

CSQ Q2 2019

1 Kassandra Frederique 2 Michael Loeb and Drake Sutton-Shearer 3 Bonin Bough, Michael Loeb, Katie Loeb, Drake Sutton-Shearer, Jesse Kirshbaum, Alex Kirshbaum 4 Courtney Dorne, Hilary Black, Tahira Rehmatullah, Emily Paxhia, Katie Loeb 5 Jim Hole gives a keynote 6 Michael Loeb and Drake Sutton-Shearer 7 Musician Wyclef Jean

119

Advertiser Index Baltaire Restaurant baltaire.com

C-Suite Advisors csq.com/csuiteadvisory

Hawke Media hawkemedia.com

CSQ Visionary Awards csqvisionaries.com

Belmond El Encanto belmond.com

Enterprise Florida enterpriseflorida.com

Malibu Country Mart malibucountrymart.com

Vroozi Inc. vroozi.com

Boys & Girls Club—Metro LA bgcmla.com

Ernst & Young ey.com

The Music Center musiccenter.org

White House Historical Association whitehousehistory.org

Burgess Yachts burgessyachts.com

Forelinx forelinx.com

SoCal IP Law Group LLP socalip.com

Clay Lacy Association claylacy.com

Gish Seiden gishseiden.com

TravelStore travelstore.com

Editorial Index PEOPLE Achar, Chris Aretsky, Ken Barry, Marion Belouizdad, Amina Berke, Deborah Berman, Josh Bezos, Jeff Bloomberg, Michael Bolton, Shay Bristol, Ryan Broad, Eli Broukhim, Daniel Broukhim, Michael Cahill, Kathleen Chaiken, Geoffrey Clinton, Bill Cushman, John Dalie, Robert Dallas, Bill De Lowe, Brian Devine, Christine DeWolfe, Chris Doran, Suzie Fox, Joe Freedman, Jim Fuerstman, Alan Fuerstman, Michael Garcetti, Eric Gatena, Steve Greenleaf, Tim Grewal, Will Griffin, Ken Grobstein, Howard Hale, Scott Hasson, Heather Hawthorne-Castro, Jessica Himmel, Kenneth A. Hudson, Ryan Hughes, Tucker Isaacs, Noah Jacobsen, Hugh Newell Kadakia, Payal Kantor, Evan Kasaba, Mike Kelly, Chris Kim, Daniel Kitchens, Katie Kleeman, James Leach, Mike Lee, Jay Levinson, Mark Liebman, Pamela Martin, Christopher Meadows, John Meyer, Danny

120

112 53 67 50 41 111 42 70 50 94 57 112 112 55 112 68 56 92 51 51 116 112 118 88 90 60 60 118 112 117 51 59 86 40 112 116 46 116 55 55 41 112 55 90 53 116 116 54 52 116 96 58 117 55 53

Meyer, Lisa Meyers, Josh Oranim, Guy Peebles III, Donahue Peebles, Don Pitts, Christie Potter, Dana Potter, Matt Rechter, Sharon Rising, Christopher Rising, Nelson Roth, Steve Ruan, George Sarva, Amol Shenderovich, Edward Silk, Stephen Simonetti, Ryan Snyder, Nate Spear, Trina Spurrier, Steve Stibel, Jeff Thomas, Mark Anthony Walker, Prophet Zucker, Jonathan

98 116 116 52 66 53 51 51 116 56 56 59 116 41 41 117 53 116 112 56 42 55 53 90

ClassPass 112 Columbia University 52 Condé Nast Traveler 51 Convene 53 The Corcoran Group 58 Corcoran Sunshine Marketing Group 58 Cushman & Wakefield 55 Daniel Marshall 17 Diamante Dunes Course 81 Discovery Land Company 33 Duke University 56 Eastdil Secured 117 Economic Development Corporation 55 El Septimo 17 Emerge212 54 Ernst & Young 116 FabFitFun 112 FIGS 112 Firmdale 63 Four Seasons 48 Four Seasons Santa Barbara 76 Fraser Yachts 29 Fred Segal Malibu 76 Genzum 112 Georgetown Company 45 Goop 79 Gores Group 44 Gramercy Capital 53 Grand Avenue Committee 46 Grobstein Teeple LLP 86 Gurney’s Star Island Resort & Marina 78 Habanos 17 Harlem Capital Partners 41 Hearst Castle 77 HomeStack 51 Hotel Californian 76 Hotel San Louis Obispo 77 Hughes Marino 55 Huntsman Cancer Institute 51 Hyatt 69 Il Mulino 78 Intrepid Investment Bankers 90 Jam City 112 Joan Behnke & Associates 44 JP Morgan 94 Kennedy Wilson 55 Knotel 41 The Kor Group 51 Loeb.nyc 119 Marriott International 40 Marshall School of Business 51 Martha’s Vineyard 41 McGill University 50 Meyer, Olson, Lowy & Meyers 98

Editorial Index

COMPANIES Aman Resorts Amazon Arizona State University Arrowood Farms Artisan Vehicle Systems Association for Corporate Growth The Athens Group Auberge Resorts Backstage Capital Beats by Dre Bellross Belzberg Architects Bombardier Bonin Ventures Bose Bowery Valuation Boy Scouts of America Breitling Bryant Stibel Bulova Burgess Yachts Cabo Del Sol Ocean Course Cabo Real Canyon Ranch Chevrolet Chileno Bay Citi Habits

24 42 50 79 90 118 61 80 53 16 35 44 24 119 16 55 117 35 43 35 29 81 81 83 27 81 58

Montage International MPG Office Trust The Northern Trust NRT LLC Ojai Valley Inn Oppenheimer & Co. Inc. Palisades Village Los Angeles Panerai Paws Up The Peebles Corporation Pendry Hotels & Resorts Perinet Tasting Experience The Phoenician Pollaro The Post Ranch Inn Pray.com The Private Suite Proper Hospitality Quivira Golf Club Realogy Corp. The Regent Related Companies Revel Spirits Ring Home Security Rising Realty Partners Ritz-Carlton Rolex Rolls-Royce Rosewood Miramar Beach Royal Palm Runtopia Rutgers University S.T. Dupont San Ysidro Ranch Sandvik Savills Scribner’s Catskill Lodge SingerLewak SOM Starwood Hotels and Resorts Sybarite Lifestyle Management Thompson Coburn LLP TPG Global Treehouse Co-Living Tufts University Ultimate Ears Ulysse Nardin University of Southern California Ventana Inn Big Sur Villanova University Vroozi Waldorf Astoria Beverly Hills Wally’s Wines & Spirits West River Hotel Wharton School of Business White Elephant Y.CO

60 56 82 58 76 92 76 35 74 52 60 77 61 30 77 112 24 51 81 58 40 46 20 16 56 40 34 24 76 66 16 66 17 76 90 50 79 118 45 53 40 96 41 53 60 16 35 51 77 53 88 32 18 52 50 79 28

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C-SUITE QUOTED 33

Dune Deck is an extraordinary beachfront property that operates as a small luxury hotel for our members. It is the first in a plan to develop an expanding collection of Discovery-branded boutique hotels throughout the world.

Today, companies look at their office space as part of how they attract employees. The office space is as important as the benefits package and the salary.

There’s a lot of deals that don’t get done because people don’t know how to talk to each other, and they antagonize each other. Then there are deals that never should happen, but they do because of the way people work together. It’s a relationship business and you really need to be able to bring value.

Mike Meldman, CEO and Founder, Discovery Land Company

Christopher Rising, Co-Founder and CEO, Rising Realty Partners

Pamela Liebman, President and CEO, The Corcoran Group

There is no substitute for being in our own operations. I don’t go more than a couple of months without visiting each of our hotels.

All of our Montage Hotels have had a residential component that has been an essential element to the success of each project. Residential has been in our DNA since our inception in Laguna Beach and will continue to be as we expand our portfolio.

The nice thing about starting your real estate development career at 19 is that you can have lifetimes of success and still be a relative youngster.

Michael Fuerstman, Director of Acquisitions and Development, Montage Hotels and Resorts; Co-Founder and Creative Director, Pendry Hotels

Alan Fuerstman, Founder and CEO, Montage Hotels and Resorts

Don Peebles, Founder, Chairman, and CEO, Peebles Corp.

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In Tucson, we have 100 luxury homes priced up to $10M, and in Lenox, we built 19 luxury condos priced from $1.5M to $3.5M that have sold very well … From a business standpoint, it’s a mistake to think of [Canyon Ranch] as a healthy vacation. It’s much more than that.

When it comes time to sell your company, hiring a good investment banker is essential, but engaging a banker earlier on in a company’s life cycle can be transformative.

Susan Docherty, CEO, Canyon Ranch

Jim Freedman, Chairman and Managing Director, Intrepid Investment Bankers LLC

Mike Collins, Founding Partner and CEO, IMI Living

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C-Suite Quoted

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MANY STATES STRUGGLE TO REDUCE THE BARRIERS TO DOING BUSINESS. WE JUST ELIMINATED THEM ALTOGETHER. Consistently ranked one of the best states for business, Florida is committed to keeping regulatory requirements and business taxes low. That, along with a strong economy and zero personal state income tax, makes it a great place to do business. We won’t stand in the way of your success. We’ll pave the way for it. Discover what a future in Florida means for your business at floridathefutureishere.com/freedom, or call 877-YES-FLORIDA.

Downtown Miami, Florida

Winners are unstoppable.

AuditBoard, Inc. · Emerging Business Software

Honey · Advanced Technology

Daniel Kim

Ryan Hudson

Jay Lee

Co-Founder and Co-CEO

Co-Founder

FabFitFun · Retail and Consumer Products

Congratulations to the Entrepreneur Of The Year® Greater Los Angeles Award winners.

Daniel Broukhim Co-Founder and Co-CEO

Co-Founder and CEO

Ovation Fertility · Health and Wellness

Michael Broukhim Katie Kitchens Co-Founder and Co-CEO

George Ruan

Co-Founder and Editor-in-Chief

Nate Snyder Co-Founder and CEO

They join over three decades’ worth of leaders awarded for their ability to see past the present to create the future.

First Media · Emerging Media

Slickdeals, LLC · Consumer Technology and Services

Good luck at the national awards!

Guy Oranim

Josh Meyers

Co-Founder and CEO

Visit us online today to find out more about our winners — and look for information about nominating LA’s next great entrepreneur in 2020.

Sharon Rechter Co-Founder and President

CEO

Hawthorne Direct, LLC · Transformational Leader

www.ey.com/us/eoy/greaterla

Jessica Hawthorne-Castro Chairman and CEO

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