Douglas Wilson Companies - Fall 2023 Newsletter

NEWSLETTER FALL 2023

SPECIALIZED SERVICES

WHAT DOES IT MEAN TO HIRE DOUGLAS WILSON COMPANIES (DWC)?

In dynamic economic times, it means unmatched experience and diversity of services. DWC provides experience, consistency and long-term perspective.

Court Appointed Fiduciary Legacy Asset Management Development Services Land Entitlements Asset/Property Management Assignment for Benefit of Creditors Turnaround Management Receiverships Chapter 11 Trustee Brokerage & Disposition Partition Referee Forensic Accounting Due Diligence Chief Restructuring Officer Special Master Liquidating Trustee Expert Testimony Highest and Best Use Analysis

DOUGLASWILSON.COM

Navigating economic cycles can be a challenge, even for the most experienced professionals who have been through several booms and busts. In a short period of time on the heels of any shift, businesses, real estate owners, lenders and other entities may find themselves facing stark realities: declining real estate value, cash flow problems, partnership disputes and general operating challenges.

“We are a full-service turnaround management firm,” DWC Chairman and CEO Douglas Wilson says. “We engage in corporate work, partnership disputes, federal work and a full balance of services. As a fiduciary, whether advising families inheriting real estate or in resolving disputes among partners or family members, DWC’s reputation of integrity and transparency consistently proves to be an asset.”

Whether they are families, individuals, independent businesses, regulatory agencies, courts or corporate entities, DWC’s clients span a wide array of industries and types. Yet they all need some kind of assistance or advice either in working through a problem or positioning themselves for the future.

Diversity of Services

With more than three decades of experience as a trusted fiduciary, advisor, developer and appointed receiver, DWC is unlike its counterparts both in the types of services provided as well as the range of experiences applied. From liquidations to forensic analysis, overseeing operations, turnaround work and federal regulatory matters like federal Ponzi scheme cases, DWC’s 360-degree approach is what has allowed the company to consistently support its clients and achieve the best outcomes for all parties.

Initially known as a real estate firm, the 1989 launch of DWC stemmed from the development of San Diego’s Symphony Towers project, which was the city’s largest mixed-use development of its time. The project involved coordinating entitlements, securing necessary financing, overseeing a successful leasing strategy, coordinating design and supervising construction — services Douglas Wilson provided.

With an aptitude for problem solving, the firm quickly came to offer a series of specialized business, receivership and real estate offerings, as well as brokerage and property management. DWC later established its senior housing development and legacy real estate advisory services — all of which the organization offers today.

(Story continues on inside)

Problem Resolution & Fiduciary Services | Fiduciary Advisors for Legacy Real Estate | Real Estate Advisory | Real Estate Development | Senior Living | Brokerage

CONTINUING

Education Opportunities Presented by Douglas Wilson Companies

Given today’s dynamic market environment and an anticipated uptick in turnaround and receivership assignments, Douglas Wilson Companies is pleased to share continuing legal education (CLE) opportunities on the topic of receiverships.

Douglas Wilson Companies’ team of experts offer 30 years of experience as a court-appointed receiver and fiduciary, including handling highly-complex assignments across the U.S., in both state and federal courts.

With this experience and expertise, DWC’s team is available to provide in-office CLE presentations on the topic of receivership.

Please contact us to learn more about these opportunities, or to schedule an in-office CLE receivership presentation given

by Douglas Wilson Companies.

FALL 2023 | DOUGLAS WILSON COMPANIES

(Continued from cover) Over the course of nearly four decades, DWC has achieved successful outcomes in a wide variety of projects and assignments. To name a few: JL Furnishings: In this California state equity receivership, DWC supported the 500-employee JL Furnishings operating company, which was, at the time, the second-largest custom furniture maker for the hospitality industry. With $80 million in sales at its peak, the company soon found itself unable to service its debt with a large international money center bank. As an equity receiver, DWC stepped in to resolve tax issues, and manage employees and ongoing litigation issues, all while overseeing the liquidation of the company’s inventory and assets.

China Basin Landing: Under a development services agreement, DWC was retained to oversee all aspects of repositioning China Basin Landing, a 675,000-square-foot office complex on San Francisco’s waterfront. The property regained occupancy from 70% to 91% in 18 months before selling for $85 million under DWC’s leadership.

Federal Ponzi Scheme Receivership: DWC President Michele Vives currently is acting as receiver in a federally regulated billion-dollar ponzi scheme involving hundreds of investors.

NOAA: As agent for receiver, DWC was tasked with completing construction of the 268,762-square foot National Oceanic and Atmospheric Administration office and research facility adjacent to the University of Maryland, including settling all project disputes, completing funding requirements and ultimately orchestrating the sale of the property.

“We know how to navigate both state and federal courts,” Wilson says. “Through the years, this means we also have held numerous roles in bankruptcy court including as liquidating trustee, examiner and off-panel Chapter 11 trustee, in addition to our duties as a receiver. We may serve in some cases as a Chief Restructuring Officer (CRO) as needed.”

Consistent, Counter-Cyclical Approach Because the market demands different services depending on the economic cycle, the company developed a unique counter-cyclical approach: in times of distress, DWC engages its clients largely in a turnaround capacity. When the economy is stable or is growing, DWC leverages its experience to advise and engage clients on positioning for the future.

Given DWC’s many years providing a variety of services related to real estate and business operations, the company is also uniquely suited to advise clients in areas such as land use, entitlements, and positioning owned property for its highest and best use.

“Whether we are operating as an advisor or as an owner’s representative, DWC is equipped to act in the best interests of our clients because we have been in their shoes,” says DWC President Michele Vives. “Having developed our own projects during growth cycles and having managed turnaround properties during downturns, we have an unmatched perspective that enables us to provide optimal solutions for real estate owners, lenders and other stakeholders no matter where we are in the economic cycle.”

To assist families and land owners with their real estate planning needs, DWC launched its Legacy Real Estate platform in 2017. Led by Vives, this division supports family offices, estate planning attorneys, wealth managers and other advisors by providing the niche service of real estate advisory.

“We know there are many advisors providing services related to investment portfolios and estate planning in the Great Wealth Transfer, but found there was a huge under-served need among families who manage real estate and require expertise as they position themselves for the future,” Vives says. “We take a very customized approach to determine the highest and best use — whatever that may mean for a particular family or ownership group.”

Long-Term Economic Perspective In addition to DWC’s turnaround and advisory expertise, working with the company means gaining access to its unbiased and critical understanding of — and ability to navigate — economic cycles.

With today’s indicators showing inconsistency and with interest rates leading to a capital impasse for many businesses and families, the current situation is a time to rethink, right-size, and reposition.

“A vast amount of our work is from referrals, based on our reputation of being transparent and collaborative in all dealings,” Wilson says. “We step into complex and difficult situations to bring in a voice of reason and a steady hand. With the uncertainties facing the economy ahead, we are well positioned to assist our clients — whatever their needs may be.”

DWC LAGUNA BEACH RECEIVERSHIP FEATURES COMPLEX PORTFOLIO Douglas Wilson Companies

Complex real estate assignment comes to close After serving for many months as receiver for a complex and highly unusual property portfolio in and around Laguna Beach, California, DWC’s assignment is nearing its close.

At times a challenging case with many stakeholders invested in the properties, the scenario originated in 2018 with a $195 million loan secured by 18 properties in Orange County — with most locations concentrated in the artsy, coastal Laguna Beach community.

The nature of the properties made the portfolio a complex one. The 18 properties comprised many different asset types: a boutique hotel, a large multifamily community in Redlands, Calif., vacation rental homes and event

spaces, and commercial and retail office spaces, to name a few. Many of the properties were redevelopment opportunities for the owner, who took out the original loan from a debt fund prior to the pandemic, at a time when access to capital was abundant.

At the time the court appointed Douglas Wilson Chairman and CEO Douglas Wilson as receiver, the loan balance was roughly $140 million.

“We stepped in as quickly and efficiently as possible to control the 18 properties,” Wilson says. “This included back taxes and outstanding debt for a vast array of property types, most of which were held in separate LLCs.” The case experienced several twists, with a second lender emerging under the original ownership, agreeing to

purchase the loan in default, preserving the properties temporarily and extending the receivership. Soon after, yet another lender purchased the loan, adding complexity to the case.

Ultimately, DWC applied the firm’s vast experience in real estate types in order to preserve the value and maintain the entitlements of the individual properties in a precarious market environment.

“With each property held in a separate ownership structure, the assignment had an usual layer of complexity,” says DWC Vice President Ryan Baker. “DWC’s intimate knowledge of real estate operations and entitlements enabled our team to stabilize the portfolio. This meant treating the properties as separate and establishing an accounting system for each entity — depending on the unique needs of each one.”

DWC EXPANDS WITH TEXAS OFFICE OPENING Douglas Wilson Companies

New territory and personnel creates additional receivership reach and capability In preparation for an influx of receivership assignments in today’s shifting economy, DWC is bolstering an existing strategic alliance that enables us to expand the firm’s receivership offerings in Texas and the surrounding region. The opening of DWC’s Dallas office positions the organization as ready and able to assist lenders, owners and other entities in one of the nation’s major financial services hubs, namely the home of several large loan servicing platforms operated by the country’s largest banks.

The firm’s newest receiver, Joe Corcoran, is a longtime associate of DWC through DWC’s direct partnership with TCOR Asset Management and TCOR Hotel Partners, for which Mr. Corcoran serves as co-founder and principal. Under the DWC-TCOR direct partnership and its leadership, including TCOR Chairman and CEO Tom Corcoran, and Co-founder and Principal Debbie Feldman, DWC delivers fiduciary services with TCOR leveraging its decades of hospitality ownership and experience as a trusted consultant on hotel assets.

For hospitality and office-related assignments as well as the many, many others currently arising in Texas, Mr. Joe

Corcoran, based in Dallas, will focus on opportunities throughout the state as well as in and around the southwest region.

“This is a focused and logical expansion for DWC in one of the country’s major markets involved in financial services and commercial loan servicing,” says DWC Chairman and CEO Douglas Wilson. “DWC’s existing partnership with TCOR Hotel Partners provides an excellent foundation for our organization to assist regional banks, money center banks, special servicers and other entities in and around the Texas market that may be dealing with distressed assets — hospitality-related or otherwise.”

CONNECTING: DWC ON THE MOVE Executive News and Speaking Engagements

DWC leadership looks forward to a busy conference season including many upcoming opportunities to speak and share perspectives. Don’t miss the following events, where DWC’s leadership will be available for networking and sharing expertise on real estate, receivership, turnaround management and more.

CREFC Conference — DWC leadership looks forward to the upcoming 2024 annual meeting of the CRE Finance Council in Miami on January 7-10, where more than 2,000 real estate finance professionals will gather to discuss the year-ahead outlook for commercial and multifamily real estate and finance.

IMN Winter Forum — DWC Chairman and CEO Douglas Wilson will attend the 20th annual winter IMN meeting on Real Estate Opportunity & Private Fund Investing, to be held in Laguna Beach, Calif. January 17-19. The event features insights and timely updates on commercial real estate including market information and expert insights.

FALL 2023 | DOUGLAS WILSON COMPANIES

CRF Loyola X Symposium — DWC also will participate in the upcoming California Receivers Forum Loyola X Symposium, January 18-19 in Long Beach, California. This year’s program, “Riding The Economic Wave,” features economic analysis and receiver-based content and education drawing both experienced receivers and those who are new to the industry. DWC Vice President Ryan Baker is a co-chair of the event.

USC Gould School 2024 Real Estate Law and Business Forum — Douglas Wilson and DWC President Michele Vives will participate in USC Gould School’s 2024 Real Estate Law and Business Forum this coming February at the Jonathan Club in Los Angeles. Discussion topics for the event will include real estate challenges, trends, finance and more, with Douglas Wilson speaking on a panel to share expertise on today’s timely real estate topics. Date to come.

A MESSAGE FROM OUR CHAIRMAN & CEO D O U G L A S P. W I L S O N

CORNERSTONES OF SUCCESS In preparation for this introductory piece, I reviewed all of the content of this newsletter and could not help but think of how far we have come as Douglas Wilson Companies approaches our 35th anniversary at the start of the new year.

I think that there are a number of fundamental cornerstones to our modest success and our ability to navigate through the inevitable and ever-changing economic cycles.

These elements include first, hiring talented people and providing the support they need in order to prosper and grow within the organization; and second, closely monitoring the ever-changing capital markets, which serve both as the foundation for growth during booms and as the source of stress during economic downturns.

In addition, building long-term relationships within the financial and legal communities has allowed DWC to develop and maintain more than 200 national institutional relationships. And finally — and perhaps most importantly — we approach every assignment with the highest level of professionalism, and with the consistent goal of finding and creating practical solutions to what are often difficult and challenging situations.

Through transparency and open communication, we are able to build credibility with all parties and achieve the best outcomes.

San Diego

1620 Fifth Avenue | Suite 400 San Diego, CA 92101

Los Angeles/ Orange County

19200 Von Karman Avenue | Suite 416 Irvine, CA 92612

Dallas

4925 Greenville Avenue | Suite 1060 Dallas, TX 75206

Phoenix

502 South College Avenue | Suite 300 Tempe, AZ 85281

Las Vegas

330 E Warm Springs Road | Suite B43 Las Vegas, NV 89119 Sincerely,

San Francisco

50 California Street | Suite 1500 San Francisco, CA 94111

Douglas P. Wilson dwilson@douglaswilson.com 619-906-4312

Washington, D.C.

1200 G Street NW | Suite 800 Washington, DC 20005

For More Information Contact: Douglas P. Wilson dwilson@douglaswilson.com (619) 906 - 4312

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

When DWC founder, Douglas Wilson, moved to San Diego in the early 1980s from the busted energy bubble of Denver, he was thinking big.

As DWC enters its fourth decade, it does so with an executive suite of high-achieving young professionals who have already experienced a round or two of cycles.

VISIT OUR NEW WEBSITE AT

DOUGLASWILSON.COM

FALL 2023

IN THIS ISSUE UNMATCHED EXPERIENCE AND DIVERSITY OF SERVICES

RECEIVERSHIP UPDATE: LAGUNA BEACH ASSIGNMENT

Douglas Wilson Companies’ approach, experience, consistency and perspective.

A highly complex real estate assignment nears conclusion.

DWC EXPANDS OPENING TEXAS OFFICE

DWC ON THE MOVE

New territory and personnel creates additional reach and capabilities.

Catch up with the DWC leadership team at these upcoming events.

PROBLEM RESOLUTION & FIDUCIARY SERVICES | FIDUCIARY ADVISORS FOR LEGACY REAL ESTATE REAL ESTATE ADVISORY | REAL ESTATE DEVELOPMENT | SENIOR LIVING | BROKERAGE

(619) 641 - 1141 DOUGLASWILSON.COM

1620 Fifth Avenue, Suite 400 San Diego, California 92101 PRSRT STD U. S. POSTAGE PAID San Diego, CA Permit No. 2256