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April 8, 2024

Welcome to People and Properties, the Cohen-Esrey newsletter where we celebrate the successes of our team members and keep you informed about what is happening in the Cohen-Esrey world. If you have something you would like to share or an achievement that you would like to celebrate, please send it to Lee Harris at lharris@cohenesrey.com. If you are on a property, please print and distribute this newsletter to each member of your property team. You can also find People and Properties on KnowledgeNet. Click here to view previous editions. 

Remembering Rodney

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Rodney Chmidling joined Cohen-Esrey on September 8, 2015, as an Accounts Payable Specialist. Tragically, he lost his life in an auto accident on Friday, March 22, 2024. We are heartbroken and his passing reminds us of how fragile life is. Here are a few memories from some of his teammates.

 

Rodney loved to buy and sell used cars. He was a go-to for cars and anything on Facebook Marketplace. He was always looking for the next deal he could find and had four cars that included a Mustang convertible and Buick. He also had personalized license plates, with Chmid 1 and Chmid 2. One time, Marcie Teenor (2013), Chief Financial Officer, was behind him at a red light. She knew it was Rodney, so she honked her horn at him. He didn't know who it was and threw up his hands like, “what do you want me to do?” Once at the office, Marcie let him know it was her and they both had a good laugh.

Rodney had an active social life with a close group of friends. In the summertime he often told us about the pool parties he enjoyed attending over the weekend. He also loved his cats so much. He rescued one of the cats when he and Pam Oakes (1984), RealPage System Administrator, commuted to work from Kearney, MO, unknowingly with a cat tucked under the hood. Rodney noticed the cat when they arrived at the office. No one wanted the cat, so Rodney took it home and it became part of his family.

 

Rodney's candy dish was famous in our office. He wanted everyone to stop by and say hi. He always asked how your day was going and wanted to be sure you left with a smile on your face. He was so kind and would find out team member's favorite candy to be sure to include it the next day in his candy stash.

 

Rodney enjoyed taking his birthday off but always looked forward to enjoying an oatmeal raison cookie to celebrate from a teammate who is an amazing baker.

 

We honor Rodney’s memory and are blessed to have had him as a part of our lives for the past nine years and eight months.

 

Thanks to Matt von Ende (2017), CEAI Vice President, Acquisitions, for purchasing a candy bowl in Rodney’s honor which will be filled regularly.

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A Sioux City Gem

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Cohen-Esrey has entered the Sioux City, IA, market in a big way with the addition of seven property management assignments totaling 435 units. One of the new communities is Centennial Manor, an 80-unit mid-rise building for senior and disabled residents. Constructed in 1980, the property features a community room, laundry facilities, courtyard, controlled access, and picnic area. The building is accessible to the city through the bus line and is only one block from a  new senior center. Residents enjoy high-speed Internet and can participate in a  noon meal program. One-bedroom units are 483 square feet with a market rent of $1,042 per month. Residents are eligible for Section 8 rental assistance and pay 30% of their income as rent.

 

Sioux City is at the navigational head of the Missouri River, the furthest upstream point to which general cargo ships can travel, approximately 95 miles north of the Omaha–Council Bluffs metropolitan area. Sioux City and the surrounding areas of northwestern Iowa, northeastern Nebraska and southeastern South Dakota are sometimes referred to as Siouxland, especially by local media and residents. The metro population according to the 2020 census was 149,940. The city is a major meat processing center and is home to the Sioux City Roller Dames, a non-profit roller derby corporation. Jerry Mathers, the actor who played Beaver Cleaver on TV’s Leave it to Beaver, hails from Sioux City.

 

Ashley McKibbin (2024) is the Property Manager and George Wakeman (2024), is the Regional Manager. Mike Gioia (2020), is the Senior Property Accountant and Nancy Lewis (2021), is the Accounting Assistant.

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We welcome the following new team members to Cohen-Esrey and the Nexus 5 Group.

  • Tony Bailey – Hamptons at East Cobb, Marietta, GA – Property Manager

  • Austin Williams – Hamptons at East Cobb, Marietta, GA – Assistant Property Manager

  • Wesley West – Lakes at North Port, North Port, FL – Groundskeeper

  • Sheran Woods – The Park at Forest Hill, Memphis, TN – Assistant Property Manager

  • Valerie Deal – Tower Village, St. Louis, MO – Assistant Property Manager

  • Latasha Berry – Windsor Court, Arkansas City, KS – Property Manager

  • Ladasia Milton – Woodcrest, Oklahoma City, OK – Property Manager

  • Adrian Sanchez – Woodcrest, Oklahoma City, OK – Maintenance Technician

  • Thomas Johnson – Nexus 5 Group – Field Technician – Level 2

  • Holley Blackwell – Astoria Park, Amarillo, TX – Property Manager

  • Regan Olson – Eastwood, Wellington, KS – Property Manager

  • Tonya Foreman – Woodbridge, Texarkana, TX – Property Manager

  • Oscar Martinez – Woodbridge, Texarkana, TX – Lead Maintenance Technician

  • Chris Sims – Woodbridge, Texarkana, TX – Groundskeeper

  • Jessica Parker – Oaks at Rosehill, Texarkana, TX – Property Manager

  • Jada Smith – Oaks at Rosehill, Texarkana, TX – Assistant Property Manager

  • Courtney Sanders – Pecan Ridge, Texarkana, TX – Property Manager

  • Tori Turner – Pecan Ridge, Texarkana, TX – Assistant Property Manager

  • Jennifer Hubbe – Renaissance Plaza, Texarkana, TX – Property Manager

  • Ramano Williams – Renaissance Plaza – Texarkana, TX – Make Ready Technician

  • Kotarra Rone – Robison Terrace, Texarkana, TX – Property Manager

  • Kimberly Stinard – Robison Terrace, Texarkana, TX – Leasing Agent

  • Sharranekeya Spratt – Rosehill Ridge, Texarkana, TX – Property Manager

  • Shatanee Howard – Rosehill Ridge, Texarkana, TX – Maintenance Technician

  • Derrick Henderson – Rosehill Ridge, Texarkana, TX – Make Ready Technician

  • Jennifer Fields – Corporate Office – Property Accountant

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Meet the Century II Team

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Meet the Century II team. L to R – Sue Hartwell (2024), Resident Services Assistant; Wesley Church (2024), Maintenance Technician; Denise Holliday (2024), Property Manager, and Keith Rowland (2024), Maintenance Technician. Cohen-Esrey Communities (CEC) manages this 80-unit affordable property in Sioux City, IA, for a third-party client.

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Transformational Construction!

Construction continues at several Cohen-Esrey Development Group (CEDG) future communities.

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Elevator shaft taking shape at The Launchpad in Colorado Springs, CO.

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Siding is being installed at Panorama Heights in Colorado Springs, CO.

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Residents are going to love the spacious unit interiors at the Trails at Lehow in Englewood, CO.

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Interior construction photos will be coming soon for the Loma Vista Lofts in San Antonio, TX.

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A flurry of construction activity is occurring at the Lofts at Creekview in San Antonio, TX.

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With the closing of the Lewis Lofts partnership in Mankato, MN, construction has begun in earnest.

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Hillside clearing has begun to prepare the construction site for Overlook 157 in Asheville, NC.

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Here is the site for the new 233-unit Heritage at Cottonwood Creek in San Marcos, TX.

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The Revenue Growth Champions!

By Michele Rollo-Burns (2018), Director of Revenue

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Each month we recognize communities that have realized stellar year-over-year (YOY) revenue growth. For the month of March 2024, here are the standouts with growth of 5% or more. Congratulations to each team for the progress made! Eleven properties are on the list this month!

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A Healthy Tip

By Jennifer Turner (2018), Director of Human Resources

Spring Cleaning

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I am a bit of a neat freak and actually enjoy organizing/purging closets and drawers. Currently, I’m organizing my basement and going through boxes of things to keep, donate, try to sell, or throw away. Some of the things I’m finding are pretty funny…why do I still have some of my old report cards and scrapbooks from grade school? Well, I don’t anymore, those went in the trash!

 

Cleaning not only improves the look and feel of your home but can also benefit your physical and mental health. With spring in the air, it’s the perfect time to start thinking about spring cleaning.

 

Learn how you can improve your health this season with these quick spring-cleaning tips:

1-Minute Tip: Open a window and take a few deep breaths. Get some fresh air flowing in your home to increase ventilation and improve the quality of the air you breathe.

 

5-Minute Tip: Vacuum your rugs or dust hard surfaces and window blinds with a damp cloth. Just a few minutes every few days is all it takes to keep dust and allergens at bay and keep the air in your home a little healthier.

 

15-Minute Tip: Listen while you clean. Cleaning can be a great opportunity to multitask and catch up on your favorite podcast, audio book or practice your dance moves while you listen to some of your favorite tunes. This way you can improve your mood and the state of your home!

 

30-Minute Tip: Tackle the pantry. Not only will sorting through your pantry help you find expired foods that need to be tossed, but it can also help you take note of your family’s eating habits. Check the nutrition labels on the processed foods you regularly eat – the facts might surprise you!

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How Do They Do It?

In this installment of our series, How Do They Do It, we are interviewing our Cohen-Esrey Development Group (CEDG) Development Managers. Here is the question we asked.

What are the biggest challenges you face when underwriting a development project?

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The biggest challenge to underwriting a new development is trying to predict all the different assumptions going into the financial model. For every new deal that comes our way, we have to research and investigate every assumption that we make – for example, construction costs, market rent, operating costs, interest rates, city participation, and timing. All these factors are at play when we decide whether to pursue or drop a deal. Any slight change in these assumptions can drastically affect the viability of the project. So, good research and feedback are critical to finding a great deal that can make it to closing. Jack Brenton (2018)

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  • It’s difficult to get the Net Operating Income high enough to meet underwriting guidelines given high interest rates, construction costs and utilizing current conservative rents. We know that after the18 to 24 months of construction, when the project is in lease up, rents will have increased, making the project financially viable. ​

  • It’s difficult to meet the 30% maximum target for deferred developer fees given the same factors as above. Lorraine Robles (2023)

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Currently, high interest rates are not off-set by higher rents, which means a property cannot pay back a loan big enough to cover project costs. This is making our deals increasingly more reliant on sources from cities and states, such as grants and tax abatement. As more developers experience the same issue, it’s making these sources increasingly more sought after and more competitive. Hence, its necessary to make our projects target lower incomes, add resident services, and become more resource efficient to stand out from the crowd. All of these are good things to strive for, but they too drive up costs, which exacerbates the issue. Sonya Shifflett-Bly (2018)

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The biggest challenges we face when underwriting a development budget is predicting the future. No one knows how interest rates will look in twelve months, if market rents will grow rapidly, if construction prices will spike, and the list goes on. Some deals take a year or longer to close, so underwriting with conservative assumptions is important, knowing that in most cases, many variables will change. The best we can do is stay abreast of current changes and consider what levers we can pull to account for all the changes that may come. On the flip side, if we are being overly conservative when we close, the deal will not only prove our underwriting assumptions in a few years, but surpass our expectations of success. Lauren Cano (2021)

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I believe that underwriting a deal on paper is easy enough, whether a deal works or not, but the real challenge lies in knowing what financing needs to materialize in order for a deal to work. I have performed underwriting in different capacities since 2014, but have never experienced a cost environment like the last two years. Obviously there is a value in knowing when feasibility is a “no,” but it’s critical to go beyond that to identify possible solutions.

 

We are getting very adept at quantifying the value of solutions like partial interest only terms, longer terms, potential loan upsizing provisions, investment structures, mechanisms to buy-down construction interest, and so on. All of these come with added risks that must be weighed with their potential value. Since we generally underwrite conservatively across the team, ideally there is considerable upside in many of our projects. Nick Emenhiser (2022)

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The current market situation presents several significant challenges when it comes to underwriting a development project. High interest rates are making deals difficult to pencil. Additionally, investors' expectations for high returns, along with increasing insurance premiums and expenses, contribute to the issues faced during the underwriting process.  While managing risks and following a set of underwriting criteria is essential, we must also remain flexible and anticipate market demands to stay competitive. Jesus Rojas (2023)

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In Case You Haven’t Seen This . . .

Here is a snip from the Cohen-Esrey website that provides some detail on the process Cohen-Esrey Apartment Investors (CEAI) utilizes to select market-rate assets to acquire.

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Lewis Lofts Has Closed!

Congratulations to the Cohen-Esrey Development Group (CEDG) on another closing of a partnership that will develop and construct the Lewis Lofts Apartments in Mankato, MN! This project is being developed using affordable housing tax credits and is located directly across the parking lot from the recently completed Sinclair Flats, another CEDG development. This senior housing property will consist of 64-units with one-bedrooms of 700 square feet renting for $451 to $987 per month, and two-bedrooms of 1,050 square feet renting for $784 to $1,182 per month. There is a range of rental rates for residents earning anywhere from 30% to 60% of the Area Median Income (AMI). The building will have an elevator, a pet wash, community room, community garden, fitness center, picnic and barbeque area, business center, bicycle racks, and walking trail. The total development cost is projected to be $17.5 million.

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Mankato is a city in Blue Earth, Nicollet, and Le Sueur counties. The population was 44,488 according to the 2020 census, making it the 21st-largest city in Minnesota, and the 5th-largest outside of the Minneapolis–Saint Paul metropolitan area. It is along a large bend of the Minnesota River at its confluence with the Blue Earth River. Mankato is across the Minnesota River from North Mankato. Mankato and North Mankato have a combined population of 58,763 according to the 2020 census. It completely encompasses the town of Skyline. North of Mankato Regional Airport, a tiny non-contiguous part of the city lies within Le Sueur County. Most of the city is in Blue Earth County. Mankato is the larger of the two principal cities of the Mankato-North Mankato metropolitan area, which covers Blue Earth and Nicollet Counties and had a combined population of 103,566 at the 2020 census. The U.S. Census Bureau designated Mankato a Metropolitan Statistical Area in November 2008.

Lewis Lofts and Sinclair Flats are named in honor of one of America’s most celebrated novlists, Sinclair Lewis. While Sinclair Lewis was not born in Mankato, he spent a significant portion of his childhood there, and his experiences in the town greatly influenced his later works. Lewis was the first American to win the Nobel Prize in Literature in 1930.

Brian Sweeney (2015), is the Development Director who secured the site and is leading the development team to move this project forward. Tim Minson (2019), Vice President-Design and Construction, has worked with the architect and general contractor to create a design that can be built within budget. Other members of the team were instrumental in bringing Lewis Lofts to a reality. They include Todd Sears (2023), Vice-President of Development; Jack Brenton (2018), Development Manager; Sonya Shifflett-Bly (2018), Development Manager; Becky Trost (2006), Accountant; and Susan Belisle (2019), Development and Construction Administrator. Special thanks to Jon Atlas (2015), Managing Director, for his overall leadership. Phil Melton (2022), Managing Director for Cohen-Esrey Capital Partners (CECP), Kyle Ervin (2021), Project Manager and Michele Kiehl (2023), Project Manager, also played a role. Lydia Bargabus (2023), is the Property Manager at Sinclair Flats (which opened last fall and recently topped 100% occupancy!) and will also manage Lewis Lofts.

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Core Value of the Month

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Another Empowerment Story

By Sherry McGee (2023), CEDG Revenue Manager

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Sherry McGee, (2023), is the Development Revenue Manager for the Cohen-Esrey Development Group (CEDG). Here is what she has to say about her Empowerment:

 

After navigating the mortgage industry for 20 years and witnessing the recent hike in mortgage rates, I decided it was time for a new career. Initially, I took a leap into the world of aviation as a flight attendant with Delta Airlines. It was an exciting time, but I soon realized that the constant travel would keep me far from home more often than I liked.

 

I found my way back to Kansas City where a chat with my long-time friend, Leslie Whitney (2022), Property Accountant, sparked a new idea. She raved about the work culture, her team members, and the opportunities for growth urging me to explore a position at Cohen-Esrey.

Because the company was involved with new construction, pipeline management, and supporting customers, I felt it might align with my previous experiences. During my interview for a Customer Fulfillment role with Director Karen Crouch (2019), the company's culture and the potential for personal and professional growth was obvious, convincing me that this was my next chapter.

 

Working in Customer Fulfillment has been immensely fulfilling. It's a privilege to serve our residents with kindness and respect, and I'm thrilled to collaborate with phenomenal team members like Noelle Wilson (2022), RealPage/Customer Fulfillment Specialist, and

Karen Crouch who are dedicated to enhancing the customer experience.

 

At Cohen-Esrey, I've found a supportive environment that values my background and encourages me to aim high. I'm excited about my new role as Development Revenue Manager with CEDG and am grateful for the opportunity to grow and contribute to our community.   

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Curing Burnout

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Dealing with burnout is a critical aspect of maintaining mental and emotional well-being, especially in today's fast-paced and demanding world. Burnout, often characterized by feelings of exhaustion, cynicism, and reduced efficacy, can significantly impact one's productivity, relationships, and overall quality of life. Recognizing the signs of burnout and implementing effective strategies to address it is essential for preserving mental health and preventing long-term consequences. In this article, we will explore various approaches to dealing with burnout and regaining a sense of balance and fulfillment.

 

First and foremost, it's crucial to recognize the signs of burnout. These may include persistent fatigue, irritability, lack of motivation, decreased performance, and detachment from work or personal relationships. By acknowledging these symptoms early on, we can take proactive steps to address burnout before it escalates into a more severe issue.

 

One of the most effective strategies for managing burnout is prioritizing self-care. This involves making time for activities that promote physical, mental, and emotional well-being, such as regular exercise, adequate sleep, healthy eating, and relaxation techniques like meditation or deep breathing exercises. Setting boundaries and learning to say no to additional responsibilities can also help prevent burnout by allowing individuals to focus on their own needs and avoid overextending themselves.

 

In addition to self-care, seeking support from friends, family, or professional colleagues can be invaluable in coping with burnout. Talking openly about feelings of stress and overwhelm can provide validation and perspective, while also fostering a sense of connection and belonging. Professional counseling or therapy may also be beneficial if we are experiencing severe burnout or struggling to manage our symptoms on our own.

 

Another important aspect of dealing with burnout is reassessing priorities and setting realistic goals. This may involve delegating tasks, reevaluating workloads, or reprioritizing commitments to better align with one's values and long-term objectives. By focusing on what truly matters and letting go of perfectionism or unrealistic expectations, individuals can reduce stress and regain a sense of control over their lives.

 

Furthermore, taking regular breaks and incorporating moments of relaxation and enjoyment into daily routines can help alleviate burnout and prevent its recurrence. Whether it's taking a short walk outside, enjoying a hobby, or spending time with loved ones, finding moments of joy and fulfillment amidst the daily grind can replenish energy levels and improve overall well-being.

 

It's also essential to address any underlying factors contributing to burnout, such as workplace stressors, relationship issues, or financial concerns. This may involve having difficult conversations with loved ones, seeking professional guidance, or making necessary lifestyle changes to create a more supportive and fulfilling environment.

 

Finally, practicing mindfulness and cultivating a positive mindset can be powerful tools for managing burnout and building resilience. Mindfulness techniques, such as mindfulness meditation or journaling, can help us become more aware of our thoughts and emotions, allowing us to respond to stressors more effectively and develop greater self-compassion and acceptance.

 

In conclusion, dealing with burnout requires a multifaceted approach that addresses physical, mental, and emotional well-being. By prioritizing self-care, seeking support, reassessing priorities, taking regular breaks, addressing underlying stressors, and practicing mindfulness, we can effectively manage burnout and cultivate a greater sense of balance, fulfillment, and resilience in their lives. Remember that it's okay to ask for help and that recovery from burnout is possible with time, patience, and commitment to self-care.

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Fun Photos

Look at this! This is a plaque on the exterior wall of the Gold Dust Historic Residences in Fredonia, KS. We think this may be one of the oldest buildings in our portfolio. It was formerly the Gold Dust Hotel.

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And, Another Fun Photo

Thanks to Trisha Parsons (2018), Property Manager at The Boulevard Townhomes in Springfield, IL, who became the Easter bunny for a day.

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It’s the Little Things That Make a Big Difference

This is a continuing feature in People & Properties where we highlight small Property Management 101 types of things that should be done to generate high performing properties – and cost little to no money. Let’s talk about . . .

CLEAN UP THAT DUMPSTER AREA!

If your trash dumpster(s) look like the one in the photo, your property has a major problem. It’s true that if additional trash pickups are needed, that may cost more money. But keeping the area around the dumpster(s) and corresponding enclosure(s) does not cost anything. If the grounds are litter free but the dumpster area is a mess, we aren’t putting our best foot forward. If one dumpster is overflowing and others have capacity, it may be necessary to move trash that’s on the ground to those dumpsters until a permanent resolution is identified. Yes, it’s a nasty, messy job, but it needs to be done.

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Customer Fulfillment Disappointment

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The Commitment to our Core Value of Customer Fulfillment is being seriously challenged. We’ve watched our Net Promoter Score drop over the past three months in a serious way. Another indicator of how this issue has become so serious is the number of calls that come from our residents to the Corporate Office seeking assistance. The chart below tells the whole story.

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Over the last six months, our customers are feeling it necessary to call the Corporate Office at an alarming rate – case in point is Q1 of 2024 where 212% more calls were received than Q1 2023. We have heard from a number of residents that they were instructed to call Corporate by property team members. This is simply unacceptable. Further, we know that the phone is not being answered on several properties. This also is unacceptable.

 

We were making terrific headway toward our Vision 2026 goal of a +50 NPS across our portfolio. Instead, we have watched the NPS drop steadily over the past 12 weeks and saw the number of calls to Corporate skyrocket. Phones must be answered. We must put the warm blanket around our customers. There are 25 of our communities on a Leaderboard – that’s down from 37 at the end of December. Only 18 properties on our Leaderboards have an NPS that is higher than +24. Team – it’s time for some serious reflection and a redoubling of Commitment to our residents to turn this around.

 

The bright spots? Nexus 5 at +88 is hitting it out of the park. So is Rankin Mills at +96.30, Justin Place at +85.19, and The Boulevard at +92.59 – all who are in first place on our Leaderboards.  

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People and Properties

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