A Legacy property is a real estate asset that has maintained its historical and/or cultural significance over multiple generations. It is a symbolic representation of not only the community for which it serves but also the storied history of family owners that have been responsible for ensuring its transition over time.

Ownership transitions with legacy properties are ripe with potential trials and tribulations that, if not properly planned for, can lead to disagreement, distress, and financial surprises that have a lasting impact on both the value of the legacy property and the human relationships established over multiple generations of ownership.

The most successful multi-generational property owners establish a property succession plan to address both the “human” and “property” level dynamics for today, tomorrow and over time. The establishment of an actionable succession plan allows the current owner and their family to re-discover the property in the context of current and future market cycles and plan for change. This plan is oriented around some of the following key questions from both a “property” and “human” level.

  • “Property” Level Dynamics – Today, Tomorrow, and Over-Time
    • What are the short and long-term goals with this asset?
    • What are the current and impending risks and opportunities associated with this property – Tenant, Debt, Tax Implications, Operations, Rehab, Redevelopment, Restrictions, etc.?
    • What are areas of operational and value enhancement that owners needs to start planning for today
    • What does the current market look like for this property and how is this anticipated to change in the future?
    • Is technology going to have an impact on the future viability of this asset? If so, how?
  • “Human” Level  Dynamics – Today, Tomorrow, and Over Time
    • What does the current and future organizational chart and decision making tree look like for this property – Investment, Management, Ownership?
    • What does the make-up of the next generation of owners look like as it relates to estate planning – Trustees, Beneficiaries, etc.?
    • What are the interests, skills, conflicts and emotional states of the next generation of property owners?
    • What roles and responsibilities do I need to consider filling now to ensure a smooth transition over time?

We are excited to announce our newest case study series co-hosted by Inheriting Wisdom and Lineage Asset Advisors entitled The Legacy Properties Series: The Value, Significance and Inherent Obstacles for Multi-Generational Owners. Please stand by for more information on the second part of our series which delves into the storied history of some of the most unique properties and owners in Southern California.