Contact Us

Management Solutions

Why Choose Concierge to Manage an Underperforming Multifamily Portfolio?

Concierge has a vertically integrated, multifamily operating and redevelopment platform that provides competitive advantages for owners/lenders.

Increasing Property Performance

The Bottom Line: For a lower net cost than what most pay for property management, Concierge provides an owner/lender with:

• The opportunity to generate or save millions in extra dollars, even for a single asset.
• Time-tested approaches to increasing rental collections in difficult markets.
• Stringent cost controls.

For Whom Will Concierge Take on the Management of Underperforming Portfolios?

Concierge will take on the management of underperforming apartment portfolios for other owners who have either:

• Participated in a joint venture with Concierge.
• Agreed to eventually set up a separate account with Concierge for new asset repositioning plays.
• Offered Concierge the opportunity to acquire assets under management.

Also, while Concierge's team will continue to decline normal third-party property management accounts, it will consider taking on other delayed-gratification assignments.

Concierge's Vertically Integrated Platform

The cornerstone of Concierge's vertically integrated platform and competitive advantages - which are often provided on an expedited basis - is its corps of skilled, experience-based specialists.

Most senior team members in property management, construction management, asset management, and architectural and landscape design have been associated with Concierge for 10 to over 30 years.

Uncommon Additional Advantages

• Often on a pre-takeover basis, Concierge’s experienced due diligence team lays the groundwork to outperform its peers via its far more thorough inspections.
  • These run at a minimum cost of $35,000, which is high by industry norms.
• The team’s detailed inspection reports have proven to be cost-effective.
  • They enable the team to quickly tackle (normally starting the day Concierge closes escrow or takes over a property) and cure problems that have blindsided some competitors as soon as their first quarter of operations.
• In addition, as is increasingly important in these times, Concierge’s team includes workout specialists who sometimes, with an infusion of capital, can renegotiate the terms of existing loans as well as protect an owner’s equity or tax position.
  • This can be a win-win for the owner and the lender.

Comparative Property Management Overview

While the current multifamily market is viewed by many property managers as challenging to overwhelming, Concierge sees it as opportunistic.

Concierge has honed its experience-based property management expertise in overbuilt submarkets (with occupancies in the 70% and 80% ranges) that were more challenging than what most third-party property managers are facing today.

Concierge's property redevelopment team is 350 strong and is poised to pick up portfolios of larger, underperforming apartments.

Triple Bottom Line: Socially Responsible Property Transformations

Concierge is dedicated to cost-effectively generating triple bottom line profits by preserving and enhancing the supply of decent workforce housing.

• First: Financial profits - Generate returns by cost-effectively improving underperforming apartments.
• Second: Social profits - Make re-available thousands of units (whose supply is shrinking) to meet the growing demographic demand for decent workforce housing - a necessity of life.
• Third: Environmental profits - Improve the environmental sustainability of buildings as underperforming properties are transformed into desirable and competitive apartment communities.

The RiverBend Apartment’s pool area is now more welcoming after it was updated with landscaping that includes an outdoor pergola, flowers, and trees.

Example: RiverBend Apartments

• HUD project: 221 d4, with no subsidy.
• Former class A- (built in 1998) that had declined to B-.
• Opportunity arose due to Concierge's excellent turnaround reputation.
  • Two previous potential buyers were rejected by the servicer/lender.
• Former borrower in default.
  • Workout with lender resulted in restructuring a $10 million loan from an 8.5% to 5.5% interest rate (saving the venture $300,000 per year).
  • Cost-effective renovations of $4,600 per unit resulted in a B+, highend residential-appearing community.
• Occupancy at acquisition: 78%; current occupancy: 94%.
  • 40 cannibalized, unrentable apartments upon acquisition.
  • Concierge made them livable in 45 days.

Economic Performance:	AT ACQUISITION (quarterly)	MOST CURRENT (quarterly)	INCREASE (annual)
Net Operating Income	$77,000	$242,000	143%

Expedited Resale

Regional Place - Dallas, TX

• Regional Place was the oldest (1976) of five troubled 1980s apartment communities in a lender's REO portfolio purchased by a Concierge fund.
• When acquired, the property was 75% occupied and its infrastructure - parking lots, curbs, clubhouse, pool furniture, balconies, and stairs - needed substantial repair.

After repositioning, which included moving in an on-site police substation, occupancy quickly rose to 92% and revenue increased by over 34% at the time of its expedited resale.

Renovation plan implemented:

Concierge quickly (within four months) infused approximately $400,000 to repair and modestly enhance the complex, using its in-house construction team.

For Concierge's Competitive Advantage Report – contact Leslie Gordon: Leslie@drever.net or (415) 789-1773.