A foundation had all of its money in substantial commercial real estate assets, all located on a single street and worth about $26 million.
Foundations lost billions of dollars in the 2008 real estate market collapse. One Abbot Downing client foundation avoided that fate, because our managers unwound an unhealthy asset concentration in time. As the foundation’s appointed manager, Abbot Downing saw this concentrated investment and realized its vulnerability. We reached out to the Wells Fargo global resource team, including its trust real estate group, which sold the properties.
The fund has grown from an initial $40 million to nearly $400 million over the years while supporting the community with $300+ million in grants given through the charitable foundation.
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