Frequently Asked Questions
Q: What is Real Estate Fiduciary Services, LLC?
A: Real Estate Fiduciary Services, LLC (REFS) is a Boston-based
firm that provides independent and co-fiduciary services to institutional and high-net-worth
individual investors. REFS is particularly adept at devising practical solutions
to take advantage of changing economic or market conditions.
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Q: Why was REFS founded?
A: REFS believes that many investors have limited internal resources
and may lack the necessary expertise to develop, implement and monitor real estate
investment management strategies. REFS has the depth and breadth of industry knowledge
to provide practical, relevant real estate investment and management solutions for
a fraction of the cost of developing and maintaining internal staff. As real estate
matures as an asset class and investor interest in real estate grows, the need for
seasoned real estate oversight will be unprecedented. REFS works side-by-side with
its clients to implement the strategies and processes it develops.
Many existing real estate investments are structured as joint ventures and/or limited
partnership arrangements. As the number of investors participating in a transaction
increases, so does the probability that investor goals and objectives will diverge
over time, potentially creating conflict. REFS provides independent fiduciary services
to alleviate parties-in-interest conflicts and to address other matters where the
skills and perspective of an independent fiduciary are required.
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Q: Who is on the REFS senior management team?
A: The firm is led by John Baczewski, CPA. As president of REFS,
Baczewski brings more than 20 years of experience in institutional real estate investment,
finance, management and monitoring along with 10 years of Big Four public accounting
experience. Incorporating a modern business platform and REFS' extensive network
of real estate investment experts, the firm assembles a seasoned industry team with
specialized skill sets to provide each client with tailored services.
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Q: What are REFS' primary lines of service?
A: REFS assists institutional and high-net-worth individual investors
on an independent or co-fiduciary basis. REFS independent fiduciary services include
sales transaction management to resolve parties-in-interest conflicts, transition
management and due diligence services. REFS’ co-fiduciary services focus primarily
on asset management. Services are offered on both an episodic and on-going basis.
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Q: Could you please describe those services in detail?
A:
• Independent Fiduciary Services – Independent fiduciary services are
provided to alleviate parties-in-interest conflicts and to address other matters
— such as transitioning from one manager to another, selling of assets in one fund
to another under the same management, or providing acquisition due diligence services
— where the skills and perspective of an independent fiduciary are required.
• Co-Fiduciary Services – REFS provides tailored asset management support
when a client may need seasoned senior people to focus on circumstances in need
of “fresh eyes” and/or otherwise desire to augment internal resources. REFS is particularly
adept at devising practical solutions to take advantage of changing economic or
market conditions. REFS’ also has the ability to act as the “in-house” dedicated
real estate team for smaller funds, those new to real estate or simply for those
needing a change in fund management. REFS can handle many aspects of portfolio management,
including implementing investment strategies, as well as managing and monitoring
the acquired assets and overseeing their eventual disposition.
Whether providing one-time or on-going co-fiduciary services, REFS always works
alongside the client and assumes an active role in the decision-making process.
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Q: What is a fiduciary?
A: According to the Employee Retirement Income Security Act of
1974 (ERISA), a fiduciary exercises discretionary control or authority over plan
management or plan assets and is subject to fiduciary responsibilities. Plan fiduciaries
include plan trustees, plan administrators and members of a plan's investment committee.
The primary responsibility of fiduciaries is to run the plan solely in the interest
of participants and beneficiaries and for the exclusive purpose of providing benefits
and paying plan expenses. Fiduciaries must act prudently and must diversify the
plan's investments in order to minimize the risk of large losses. In addition, they
must follow the terms of plan documents to the extent that the plan terms are consistent
with ERISA. They also must avoid conflicts of interest; in other words, they may
not engage in transactions on behalf of the plan that benefit parties related to
the plan, such as other fiduciaries, services providers or the plan sponsor.
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Q: Why are these services needed in the market?
A: Real estate investment, like many other investment activities,
is specialized and requires a level of industry knowledge, skill and experience
that many entities desiring real estate investment portfolios do not always maintain
internally. The REFS team has the in-depth knowledge, skills and market experience
to provide institutional and individual investors with independent fiduciary and
co-fiduciary services to ensure that their interests are protected and their real
estate investment objectives are being met.
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Q: What sets REFS apart in the market?
A: REFS focuses on independent and co-fiduciary matters and has
access to deep expertise in all elements of real estate investment and management
activities. All services are tailored specifically to each client and its individual
needs. REFS is more than an advisory consultant – it is a hands-on investment partner
that actively works alongside its clients to successfully execute their investment
strategies.
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Q: Who are REFS prototype clients?
A: The firm services institutional and individual investors. Institutional
clients may include public and private defined benefit plans, Taft-Hartley Funds,
insurance companies, endowments, foundations and real estate investment trusts.
Individual clients may include high-net-worth individuals, estates and trusts, among
others.
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Q: What advantages does a client get from REFS?
A: REFS believes that it is the people on the team that make all
the difference and utilizes its extensive network of real estate investment experts
to assemble a seasoned team with specialized skill sets to provide each client with
tailored services. By creating a dynamic team of individuals with complementary
capabilities, each project is managed by professionals with the most appropriate
skills required to deliver the best results.
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