Is Timothy Leary Dead?: As a Berkeley alum, I receive my quarterly propaganda rag “California”, and was amused by an article addressing the cultural relevance today of Leary’s infamous quote from the “Human Be-In” at Golden Gate Park in the “1969 Summer of Love”; “Turn on, Tune in, Drop out.” Many of you probably weren’t around then and need time on-line to understand. The theme of the entire issue was on the profile of those who “Dropped Out” and those who “Dropped In”. Some today believe that dropping out of traditional pathways in America is the ticket to unimaginable success. Just look at techies and venture capitalist, (or at San Francisco/Silicon Valley rents), urging budding geniuses to “find your own path through the wilderness”. Look at Jobs, Gates and Zuckerberg- dropouts all. Steve Wozniak was both drop out and drop in- coming back to Cal and graduating. “Americans cling to the myth of the self-made man, the self-taught inventor… the unschooled iconoclast..” Pathfinding and serial entreprenuerialship are one thing and work for a few intrepid folks; building a company like DJM, with people who want to be part of a team is something else entirely.The acid guru and Berkeley Ph.D. died in Beverly Hills in 1996. Did he create a culture or simply espouse an idea to a countercultural audience high on life? Fortunately, I’m old enough to know the answer!

 

Cultural Equity-Its All About The People: All of you reading my narrative understand what DJM does; “We create wealth through real estate”. Whether investing on behalf of ourselves, our private equity investors or in partnership with institutional investors, our goal and focus remain the same; striving for success on every level, which fundamentally demands the best from all of us. Of equal priority we are also striving to create the DJM Team. Success in America comes in many forms; celebrity, computer geek, hedge fund quant, “famous for being famous”, rock-star, chef, inventor, etc. Imagine only one “Steve” founding Apple. Probably wouldn’t have happened. Culturally, this country embraces a whole smorgasbord of successful peopl and companies, unlike any other place on the planet. Lady Gaga and Warren Buffet come to mind…What makes for sustainable success is culture. Creating culture isn’t mythical search for the Easter bunny or filling out your brackets for “March Madness”! By broad definition, culture is behavior and the sum of person’s learned, accumulated experience shared by others. Becoming part of the DJM team isn’t a ritual, “baptism by fire”, “shock therapy”, or even having your serotonin level analyzed to understand why you are so positive; No, it’s more about a philosophy and a business proposition that values appreciation and respect for each other, fosters decision making, goo or bad, learning through experience and promoting from within. And, respect for differences and lively debate. At 42 employees and growing, we’ve found success mentoring and growing organically; we all know what happens once an “invasive species” messes up your ecosystem; think bamboo, Bernie Madoff or ISIS- you get my riff. Nonetheless…

 

Set Fire to the Rain-Capturing Lightening in a Bottle!: Pick whichever metaphor works, DJM has achieved a new milestone of recognition in our real estate investing world. After nearly 18 months of effort, this month we closed the recapitalization of Bella Terra with Prudential. The DJM team was u to the task of satisfying one of the most thorough and complex property and operational due diligence in the history of the Company. Patricia Apel, head of property operations, and her team satisfied Prudential’s intensive evaluation of both Bella Terra and our personnel, which was fundamental to a successful outcome for both Prudential, DJM and its investor partners.

 

This is the largest transaction in DJM’s 24 year history. PRU was impressed by our “culture” and referenced this on multiple occasions. As background, Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE: PRU). Investing in real estate on behalf of institutional clients since 1970, PREI today has more than 65 employees located in 1 cities around the world, and gross assets under management of $58.7 billion as of December 31, 2014. PREI offers to its global client base broad range of real estate investment vehicles across the risk-return spectrum and geographies, including core, core plus, value-­‐add, opportunistic, debt, securities, and specialized investment strategies. We are mutually aligned in our goal of improving the quality of both the physical and merchandising aspects of Bella Terra over the next ten years. More information is available in the individual property report, as well as multiple press releases in our DJM News section of our website.

 

Am I Hallucinating-Is this for Real?? : Blackstone and DJM Capital Partners (both in the same sentence) invest private and institutional equity into real estate, with slightly different metrics-just slightly. As the world’s biggest real-estate investor, Blackstone Group LP took less than four months to raise a record $14.5 billion. They have become the largest private sector landlord in the United States. And, that was the case even before General Electric announced early April that it would sell a $14 billion chunk of its real estate assets to Blackstone. Investor demand for yield seems to be insatiable. Other large firms are raising money as well. In all, some 427 investment funds are raising $181 billion globally, most of it by the top 10 firms, said Janice Stanton, executive managing director with Cushman & Wakefield Inc. “Raising money for real–estate funds proved difficult for private-equity firms after the downturn, but in recent years they have had an easier time. Firms last year raised $97.7 billion, up from $95.4 billion in 2013 and the most since the $137.5 billion collected in 2008.” DJM has seen a very positive response to our recent Net Lease Fund, as we are well on our way in raising $10 million in private equity. This equity will be matched with approximatel $10 million of debt, with the expectation of delivering around an 8-9 percent current return. At a billion dollars in assets, DJM is not in Blackstone’s league size-wise, but every bit, or even more capable in creating the right chemistry and culture for success. DJM’ new motto is “Drop In, Turn On and Tune In”… I couldn’t be happier with what the DJM team has accomplished! As I’ve said in the past, “if you can just live long enough…good things happen”. Right On, Man!

Take care,

DJM Capital Partners, Inc. Asset Manager

 

D John Miller, Founder and CEO of DJM Capital

 

By:

D. John Miller, Founder CEO