Bringing a Family Back Together
7269 Melrose Ave, West Hollywood
Property Type: Commercial/Retail
A multi-generational family in Los Angeles owned and operated this commercial property on Melrose Avenue for over 40 years. All three of the original owners and partners passed away many years ago and the property was inherited by the second and third generations. The original owners failed to do any long term transition planning with the property and therefore left the next generations with a misaligned tenant-in-common ownership structure with no partnership agreement, no rules of governance, no communication strategy and no strategic plan in place. Further, the owners of the property were not on the same page about what to do with the property and tended to revert to blame and shouting when there was disagreement or dissension. The property required extensive capital and tenant improvements and had a single tenant in the building that was a non-conforming commercial use with poor lease documentation .
Lineage Asset Advisors was brought in by the owners’ accountant to help bring order to a dysfunctional ownership group. Lineage immediately identified that the ownership group needed a change of perspective and to reconnect back in with each other. Lineage helped to conduct and mediate a progressive discussion that allowed each of the owners’ opinions to be respected, and to look at the property as an “asset” rather than a “liability”.
Ultimately, Lineage was hired by the owners to provide un-biased consulting and establish a unified strategy on the property. Lineage conducted a series of owner meetings and calls to help each owner discover what they have and make a plan to move forward. After establishing partnership protocol and rules of governance Lineage Asset Advisors consulted with the owners to help guide them on unanimous property and management level decisions with the asset. Decisions were made with the property as it relates to environmental, tenant, management and estate planning. Lineage was able to help the family get on the same page and work through some sensitive family related topics. Lineage also maintains it’s position as the family’s consultant.