Case Studies

Joint Venture:


The Marin Family Portfolio owners had originally built a portfolio of 11 assets throughout Marin County. The family had more than 30 beneficiaries and had the goal to consolidate its interests and reduce ongoing management of the assets. Additionally, the existing assets needed significant capital expenditure and infrastructure upgrades.

The family’s goals:

  • Eliminate ongoing management
  • Eliminate liability and financial risk of improving the existing portfolio
  • Find a joint venture partner who can provide additional capital and management expertise
  • Effectively estate plan
  • Create durable income, cash flow plan
  • Implement a plan that reduces the dependency on any one trustee’s involvement for the plan to succeed

There were several steps to this joint venture:

  • Step 1: Rutherford purchased the portfolio from the family
  • Step 2: Rutherford found a set of assets to purchase together with the family
  • Step 3: Rutherford and the Marin Family acquired a new set of assets together
  • Step 4: Rutherford manages the new assets and provides transparent reporting to all beneficiaries
No. of Properties: 11 2
Phase 1 One family member was responsible for the asset and property management of the assets. There were 30+ beneficiaries that he was responsible to coordinate and support. Purchased the apartment portfolio
Phase 2: Rutherford to sourced 100+ Unit Apartment Building and East Bay MHP
Property Type: Multi-Family 100+ Unit Apartment Building and 400+ Space mobile home park
Property Age: 40-50 Years 2001 & 1971
Debt: Minimal 10 Years fixed
Pre-Tax Cash Flow: $400,000 $1,100,000
Post-Tax Cash Flow: $300,000 $1,100,000
Management: Hands-on management No management
Maintenance: Significant deferred maintenance Low maintenance
Depreciation: No more depreciation New depreciation schedule
Other: Much effort to coordinate disposition of assets Estate planning goals for long-term owners:

  • 1. Diversify out of one area
  • 2. Reset a new cost basis for tax benefit
  • 3. Streamlined management
  • 4. 1031 tax-deferred exchange