Exclusive Q&A: Wilshire Finance Partners SVP Talks Multifamily And Its Future

Wilshire Finance Partners SVP Brian Murphy is in charge of sales management and business development at the real estate lending and investment firm. Although he started his career chasing other pursuits, it didn't take him long to figure out where he wanted to be. On April 21, Brian will be among the all-star panelists scheduled to speak at Bisnow's Orange County Annual Multifamily And Mixed-Use Forum event at the Irvine Marriott.

Bisnow: How did you get involved in the industry?

Brian Murphy: Before getting into the business, my first job out of college was as a haberdasher. I worked for a really awesome company in San Francisco and my best client owned a large CRE brokerage and development firm. He referred me to a lot of his clients and associates, and I got to meet a lot of really smart, interesting and successful people that really enjoyed what they were doing. Even though I really liked my job and the company, I realized at that point I was on the wrong side of the desk.

Bisnow: What has been the strategy for your company?

Brian Murphy: We’re a small, nimble and well-capitalized portfolio bridge lender. In addition to the two funds we manage, we're fortunate to have a decent size balance sheet as compared to other companies our size in our space. We try to make the balance sheet work very hard for us, and we try to make it easy to work with us. Our overall strategy is driven by our CEO, Don Pelgrim. He's a really smart guy and I learn a lot from him. Together, we work hard to maintain discipline no matter where we are in the cycle. There is an abundance of capital and competition for product here in California, so balancing discipline and yield are important factors. We continue to see quality deal flow in California, Texas and Washington State. We just don’t make loans we wouldn’t hold on our balance sheet.

Bisnow: What do you think the future of the industry looks like?

Brian Murphy: I think there is a lot of uncertainty in the industry in 2016 with respect to the political landscape (pictured above is one of the company's latest projects, a Class-A office). I don't have the answer there. I do know technology will continue to increase and improve. We have so much information available we didn't have five years ago. We’ve seen a big push in fintech, and that sector will continue to grow. Transparency is increasingly important. Where I think we’ll continue to see the biggest push are the technologies that make transactions fluid, transparent and cost efficient.

Bisnow: To what do you attribute your success?

Brian Murphy: I think I am still beginning on the road to some form of success, and it’s a long, bumpy one, but if I had to give a simple answer, it would be to surround yourself with people you can learn from and be humble.

Bisnow: What do you think the future of mixed-use and multifamily properties looks like, and will current trends continue?

Brian Murphy: I really like this asset class from a lending perspective (Brian is pictured above, teaching a class on 1031 exchanges). On-demand services are becoming the expectation, and vertical mixed-use communities are on-demand communities that provide amenities and convenient services many users want. Not only Millennials, but older, empty nest renters and buyers are showing increased interest in the convenience these projects provide. It used to be a splash of retail below residential where you were able to get a cup of coffee, a haircut and maybe drop off a FedEx package. Now we’re seeing projects come online with luxury hotel-type amenities, including full concierge and guest services, complete fitness centers, theater screening rooms, business centers, daycare facilities, large dog parks and doggy daycare, multiple large-scale dining areas for hosted parties—and it’s all connected. There is a feeling of connectivity in these vertical-type communities that consumers want. Calibrating the needs of the residents with a diverse set of amenities coupled with thoughtful planning of the residential mix can be tough, but when done right, it creates some really cool and connected communities in an otherwise sprawling city. It’s non-recourse living: convenient, cost effective and connected.

Bisnow: What do you like to do in your personal life outside of work?

Brian Murphy: It doesn’t seem my smartphone knows there are work/life balance needs (he is pictured above with his significant other, Dr. Sumenjeet Virdee). I like what I do. I’m a big sports fan. I golf, a lot. I like to swim. I enjoy weekend trips to see friends, traveling to see parts of the country (and real estate markets) I haven’t seen before.

To hear more from Brian and our other panelists, join us at Bisnow's Orange County Annual Multifamily And Mixed-Use Forum event April 21 at the Irvine Marriott. Sign up here!