Ownership: A Family Living Trust with a stocks and bonds portfolio, a charitable foundation, primary and secondary homes needed a review of their income producing real estate holdings.

Issue: The trust held two 50 year old duplexes that had been managed by the Family Office's secretarial staff.  When doing a year end review of the financial reports the owners realized that they had spent $60,000 to paint and retrofit the facade of just one of the duplexes. No rental increases were gained.

Recommendations: Both duplexes are located in excellent market areas consisting of similar properties. Many have been redeveloped as duplexes or into single family residences. The Trust could choose to do any of four good alternatives:

1. Do nothing while continuing to rent the units with minimal upkeep.
2. Sell now or prepare to sell them later as is. This would achieve a price based on the redevelopment value of the properties.
3. Redevelop the properties now and continue to hold them in the Trust.
4. Redevelop the properties today and sell them upon completion after consideration for tax consequences.

Result: The owners are aware that at today's value the properties would increase by at least $500,000 per property if redeveloped.

Conclusion: No decision has been made as of this date.

Services Provided: Haskell Properties has offered consulting and development services for the redevelopment of both sites.

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