2019 Spring Newsletter: CEO’s Message
This letter is featured in the Fall 2018 Newsletter. To view the full newsletter click here.
It is an exciting time for us.
As we enter our 30th year as a diversified real estate development and advisory firm, we find ourselves deeply immersed in an asset class that is right in step with the changing economy and demographics of the country.
We just opened our first senior living community and it’s a hit. Currently the community is 40 percent leased and the residents love the atmosphere. We’ve got two more projects working their way through the pipeline and we’re aggressively looking for more land.
We don’t want to be more than an hour-and-a-half Southwest Airlines flight away, so our focus is the western region. Obviously that includes California, plus Nevada, Utah, Arizona and parts of Colorado. We think that these are growth states and that’s where the opportunities will be, going forward. They are readily accessible from our base in San Diego.
Here at our downtown headquarters on Fifth Avenue, we are going countercyclical to the aging of America. Our office is getting younger. I don’t remember a time when we had more young, brilliant, hard working, high achievers roaming the halls. I wouldn’t have it any other way and I’m proud of each and every one of them.
I’ll close by noting that I’ve been getting calls from the real estate press asking for my take on the economy. It’s no secret that we are at the tail end of the longest recovery we’ve had since World War II. Other forces are in play, including trade issues, Brexit, the slowdown of Europe and China, and the volatility in both the bond and stock markets. And then there’s the “unexpected” – an event over which we have no control, but could roil markets and test governments.
My advice is simply this: head’s up. Watch your leverage and underwriting standards. And be prepared. Another cycle is inevitably ahead.
Here’s to 30 more years!
Sincerely, Douglas P. Wilson
Chairman | CEO