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Dream Team of Local Community Leaders Help Tenants Acquire Their Deteriorating Building From Absentee Owners

The story of the 665 LLC building and how it became owned and operated by the doctors and practitioners who worked within its walls is one of perseverance, frustration and teamwork. And a lot of “wrestling.”

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Dream Team of Local Community Leaders Help Tenants Acquire Their Deteriorating Building From Absentee Owners

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  1. Dream Team of Local Community Leaders Help Tenants Acquire Their Deteriorating Building From AbsenteeOwners The story of the 665 LLC building and how it became owned and operated by the doctors and practitioners who worked within its walls is one of perseverance, frustration and teamwork. And a lot of“wrestling.” Monterey,CA,December31,2018—Thestoryofthe 665LLCbuildingandhowitbecameownedand operated by the doctors and practitioners who worked within its walls is one of perseverance, frustration and teamwork. And a lot of“wrestling.” “Westartedawrestlingmatch.We had towrestlewiththem.Andkickandscratch and fight,”saysDr. DavidMorwood,oneofthetenants,andnowoneoftheowner-occupantsof665MunrasAve.,about theepicbattlewithaFlorida-basedequityfundthatownedthebuilding. The story goes back at least a decade, maybe more. The property, owned by Paul Verga at the time, had been a car dealership, bank and, currently, a suite of medical offices, including Morwood’s, a plastic surgeon. Morwood, in fact, at 13 years, was the longest-running tenant in the building, which houses medical offices, including a surgery center, allergist, radiology suites, hearing aid center, amongothers. ButsinceVerga’sdeathin2002and the2008realestatecrash,whenthebuildingwentintoforeclosure and eventuallyendedupinthehandsofthe Floridaequityfund,thebuildinghadfalleninto serious disrepair. Morwood’s office experienced leaks and a partially collapsed ceiling. His entreaties to the absentee landlords wentunheeded. “Iwassickoftheout-of-statelandlordsignoringus,sotheonlysolutionwas togetownershipfromthe equityfund,”saysMorwood.“We hadtofigureouthowtogetcontrolofthisamazingbuildingandnot allow this gem to betarnished.” Unfortunately,thebuildingwasn’tonthemarket andtheownersdidn’twanttosell.SoMorwoodhad tocomeupwithastrategytogainownership.Andsincehewasn’tanexpertinrealestate,he consulted several friends and acquaintances who were. Folks like former City Councilman and developer Carl Outzen, renowned property owner Mike Marotta, commercial real estate professionals John Mahoney and Patrick Stafford, attorneys Andy Swartz and Mark Myers, bankers Clay Larson and SteveKeller. Morwoodrecalledit takesateamtowinthe SuperBowl. WiththisDream Teamofexperts andcommunity leaders,Morwoodsetouttoformacoalitionofother tenants, business leaders, bankers and local businesses in the neighborhood to join in the effort. He called his long-term associate Dr. David Awerbuck, ENT surgeon, to add some "heavyweightexpertise"

  2. and experience to the group. Not only is Dr. Awerbuck an expert ENT surgeon, he has an MBA from the University of SouthernCalifornia. “Westartedtogetalotofsupport,everybodywasrootingforus,” hesays.“It’sagreatneighborhood and we got support fromeverybody.” So this coalition made an unsolicited offer to the equity fund, which is when all the “kicking, scratching, maneuvering, negotiating” and yes, wrestling, began. It was a long, arduous process, but the equityfund relented and agreed to sell the building to the coalition. “I think they started to feel the pressure,” he says. ThedealclosedinJuly,withmostofthetenantsonboardasowner-operatorsandthewholeeffortwas named 665 LLC, although Morwood said it would be renamed something along the lines of the Munras Medical Complex. “Thegreatestfeelingintheworldiswalkingintothebuildingknowingthatweownit!”saysMorwood, “it’snotadisinterestedpartyfrom2,400milesaway. We arethelandlords.Wedidit,withalotofhelp from some very hard-workingpros.” The building only has one space open now, the allergist has expanded operations and the Revitalessence Medical Spa & Laser Center has opened abranch. And Morwood accomplished oneothergoal:“Wefixedtheroof!Nowwhenit rainswedon'thaveto worryandwonderiftheceilingwillcaveinonus!" The Monterey Chamber of Commerce will hold a ribbon-cutting ceremony and reception tocelebrate local ownership of the 665 Munras building on Thursday, 17 Jan. 17, 2019, at 5:30 p.m. The public is invited toattend. Contact: Marci BraccoCain Chatterbox PR Salinas, CA93901 (831)747-7455 http://www.montereychamber.com/

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