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Much of my time is filled counseling family owned and operated
manufacturing and logistics companies. Some lease the buildings from which they
operate and some own. These closely held entities are typical of our Southern
California economy and employ hundreds of thousands of people. Generally a
transition is happening - a death, a merger, an acquisition, selling the
company, a move out of state - all of which create a commercial real estate
requirement. I witnessed many of these transitions in my formative years -
which I believed was column worthy. So indulge me as I weave the story. For
those readers who own their business, I’m sure the tale is relatable.
My passion for helping small business was rooted in my youth. You
see, my family owned a soft drink bottling and distributing plant in Arkansas.
Planned was my stewardship as the third generation of ownership. However, my
wife and I moved to SoCal and a career in commercial real estate soon followed.
Our family business was sold and my father, his mother and two brothers
profited nicely. A year later, the enterprise was bankrupt. I guess my Dad’s
sale timing was prescient.
I didn’t realize at the time - but a roadmap for my career was was
forged. Witnessed were the transitions which occurred during the life of an
operation. First, a huge risk was taken by my Grandad in 1930. Yeah. There was
a bit of a wrinkle that occurred in that year - the Great Depression. Yet, he
moved his wife, three young boys and his dream to Texarkana, Texas to open a Dr
Pepper bottling company. During the thirties - Dr Pepper was an unknown soft
drink. Schlepping it proved challenging. But the family prevailed. Grandad had
to find a property owner willing to take an equal risk - leasing to a start-up.
As the business prospered - Grandad realized he was writing a
sizable check each month to his landlord. Sure. The owner risked everything
when leasing to a “maybe” but once the company proved viable - where was the
uncertainty? Options for Buchanan Bottling Company - whose desire was to own
the real estate - were to move and build a new facility or convince the owner
to sell. The latter occurred and the era of commercial real estate ownership
began. Now, in addition to the enterprise appreciating - the land and buildings
also became more valuable.
My Dad and his brothers were now working in the business. One
loved it - my Dad - and the other two hated it. You bet. They enjoyed what the
lifestyle business afforded them but hated the back breaking toil of delivering
heavy cases of soda to retailers. Because of their efforts - the operation was
in need of a bigger footprint from which to thrive. But, alas - the
manufacturing location - which they owned - was landlocked. In order to gain a
bigger swatch of land, they had to convince their neighbor - an A & W Root
Beer stand - to sell. They had amazing burgers, BTW, but I digress. A deal was
struck allowing the hamburger stand to lease for a period until our company
could get city approval and bank funding for the expansion.
My Grandad, as you might appreciate, was a larger than life
entrepreneur who had a difficult time allowing the next gen to succeed his
tutelage. My dad nearly moved us out-of state just to “show him”. Fortunately,
the patriarch settled into retirement and allowed the second generation to
assume the reins. During my dad’s years - competitors were purchased, product
lines added, and exponential growth occurred. I recall the “growing pains”
experienced as dad managed the expansion.
Once my Grandfather died in 1975, an open road appeared for my
dad, his mom, and two brothers. The scrutiny under which dad operated was gone
and he had a field day! Climaxing in a sale of Buchanan Enterprises in 1986 -
the life of our family business ended. A strategic competitor was the buyer of
the real estate and operation it housed. 56 years was a great run. The old
buildings still stand on State Line Avenue but the vitality of family operation
was lost decades ago.
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