15-Year Plan Transforms $30M Family Trust Portfolio

Since 2011, GM Properties has provided Trustee Services on behalf of a confidential family trust, which includes nine income beneficiaries across a diverse commercial real estate portfolio totaling $30M in property assets. It encompasses limited partnership interests, LLC interests, tenancy in common interests, fee ownership, and vacant land. The estate was unable to dispose of the properties because the original trustor only had partial ownership of most of the assets and did not have controlling interest. It included a 118,000 sf multi-tenant building in Whittier, a 56,000 sf multi-tenant building in Santa Fe Springs, and a 55,000 sf multi-tenant building south of El Monte, among others.

Through strategic planning that took 15 years, GM Properties helped the client set up a trust with the children and grandchildren as recipients of the distributions from the properties’ income. Now, the team manages reporting and distributions while also working with a CPA to provide a financial package of all distributions and expenses throughout the year.

GM Properties also oversees the Asset Management and Property Management of all assets and makes strategic decisions on behalf of the estate. For example, the team sold a non-income producing residence in the portfolio and bought 90 percent ownership of a 7,000 sf two-tenant retail building in uptown Whittier for $1.2M. After completing interior and exterior remodeling as well as re-tenanting, the property is now worth $2.5M and generates $10,000 per month for the beneficiaries.

_______________________