July 15, 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.

An Oldie but Goodie!

You may have heard us talk about the historic Grim Hotel in Texarkana, TX, a few times in the past. A project of the Cohen-Esrey Development Group (CEDG), the repurposing of this iconic building into affordable apartments has become a reality. The temporary Certificate of Occupancy was issued in December 2023, and the building is now ready for occupancy. The Lofts at the Grim is the crown jewel of Texarkana and offers 93 units to the community. Studios are 520 square feet and rent for $656 to $787 per month. One-bedroom units are 655 square feet and rent for $703 to $862 per month. Two-bedroom units are 850 square feet and rent for $843 to $1,080 per month. Community amenities include marble flooring in the grand two-story lobby, two warming kitchens, the historic Palm Room event space, a fitness center, and a laundry room on every floor. Unit interiors include 20 foot ceilings in some units, hardwood cabinets, venetian blinds, ceiling fans, plank-style flooring, spacious walk-in closets, energy efficient stainless steel appliances, and incredible skyline views.

The original hotel was opened in 1925 named after banking, railroad, and timber magnate William Rhoads Grim. At the time, construction cost $1 million. The hotel had 250 rooms. It contains 103,200 square feet and was the second tallest building in the city when it was built. CEDG spent $41.35 million to redevelop this historic structure utilizing 14 different sources of funds including tax-exempt bonds as well as state and federal historic tax credits, as well as affordable housing tax credits. Jack Brenton (2018), Development Manager, has been the quarterback for this project, especially running very complex financial models. Other CEDG team members having a role include Brian Hall (2007), Construction Project Manager; Federico Morales (2019), Construction Superintendent; Tim Minson (2019), Vice-President of Design & Construction; Becky Trost (2006), Accountant; Todd Sears (2023), Vice-President of Development, and Phil Melton (2022), Managing Director of Cohen-Esrey Capital Partners (CECP). Jon Atlas (2015), CEDG Managing Director, led the team throughout the development process.

Samantha Jones (2023) is the Property Manager and Alisha Brooks (2017), is the Regional Manager. Leslie Whitney (2022), is the Property Accountant and Jasmin Santana (2024), is the Accounting Assistant.

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

Tammy Humphrey – Residences at Franklin Park, Denver, CO – Property Manager
Jose Marin – Residences at Franklin Park, Denver, CO – Lead Maintenance Technician
Linda Gefroh – Residences of Franklin Park, Denver, CO – HUD Services Coordinator
Jonathon Harper – Geneva Towers, Cedar Rapids, IA – Property Manager
Tiffany Hall – South Pointe – Dallas, TX – Assistant Property Manager
Aidee Morales – South Pointe, Dallas, TX – Maintenance Technician
Jarius Nelson – Park at Forest Hill, Memphis, TN – Maintenance Technician
Hans Geslien-Alonzo – Lofton Place, Fort Worth, TX – Lead Maintenance Technician
Jennifer Wallace – Woolworth Estates, Omaha, NE – Assistant Property Manager
Bryan Pierce – Washington Historic Residences, Independence, KS – Maintenance Technician
Devon Chapman – Hamptons at East Cobb, Marietta, GA – Assistant Property Manager
Evelyn Martinez – South Pointe, Dallas, TX – Leasing Agent
Diderot Thelusma – South Pointe, Dallas, TX – Lead Maintenance Technician
Brayden Losh – Greenwood Estates, Peoria, IL – Groundskeeper

Meet the Cathedral Square Team

Meet the Cathedral Square team. (L to R) Jeremy Kohler (2024), Maintenance Technician; Len Sanderson (2024), HUD Service Coordinator; Kati Muntefering (2024), Property Manager; and. Joel Jarvi (2024), Maintenance Technician. Cathedral Square is an 80-unit affordable community in Mitchell, SD, and is managed by Cohen-Esrey Communities (CEC) for a third-party client.

Transformational Construction

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

Reaching for the sky at The Launchpad in Colorado Springs, CO.

Preparing for a parking lot at Panorama Heights in Colorado Springs, CO.

A swimming pool and other amenities will be constructed in this area at the Loma Vista Lofts in San Antonio, TX.

The mountains of dirt piles are finally being moved at the Lofts at Creekview in San Antonio, TX.

Framing is well underway on the second floor at Lewis Lofts in Mankato, MN.

Interior renovations are in progress at Village Park in Amarillo, TX – formerly called Astoria Park.

Building a retaining wall at the Heritage at Cottonwood Creek in San Marcos, TX

Heavy equipment is swarming over the site at Overlook 157 in Asheville, NC.

Panorama Heights Trades Day

Recently, the Cohen-Esrey Development Group (CEDG) and Brinkmann Constructors partnered with local Colorado Springs school districts to highlight career opportunities in the construction trades at our Panorama Heights project. This “trades day” hosted students from Harrison School District #2, Manitou Springs School District #14, and Colorado Springs School District #11 to inspire and connect them to apprenticeships and job opportunities. Major kudos to our partners at Brinkmann for leading students through modules involving a construction safety orientation, meeting individual sub-contractors, and an educational construction tour.

Panorama Heights is a 133-unit affordable property being developed by CEDG in Colorado Springs, CO.

Matt von Ende Named CEAI Managing Director

Matt von Ende (2017) has been named as the Managing Director for Cohen-Esrey Apartment Investors (CEAI). He joined Cohen-Esrey in 2017, beginning as an Investment Analyst in CEAI where his initial responsibilities were primarily bid-underwriting and maintenance tracking of deal-flow. More recently, Matt was promoted to Vice-President of Acquisitions where his role expanded to include the capital sourcing for debt on new acquisitions, investor relations, identification of target markets, property evaluation and due diligence, portfolio forecasting, as well as asset management and investment strategy development. Earlier this year, Matt became the Fund Manager for CEAI Funds XXIII, 24, and 25.

In his new role as Managing Director, Matt will lead the acquisition effort for Class B market-rate apartments as well as working with the team to recapitalize several assets with new debt and equity that CEAI wishes to retain rather than sell. High interest rates have had a chilling effect on the availability of properties to purchase, but the belief is that when the Federal Reserve begins to lower interest rates later this year and into next, there will be acquisition opportunities to be pursued.

Prior to joining CEAI, Matt was an airborne combat solider in the Paratroopers Brigade of the Israel Defense Force. A Freshman-year recipient of the John Dickinson Scholarship for leadership, he earned a Bachelor of Arts degree from Dickinson College in Carlisle, Pennsylvania where he studied international politics. He is fluent in the Hebrew language and holds a real estate license in the State of Kansas. Matt joined the Kansas City Multifamily Advisory Council in late 2022 and is currently pursuing a leading industry designation.

Congratulations, Matt, on this well-deserved promotion!

Two Projects Underway for the Nexus 5 Group

The Nexus 5 Group is pleased to share two major projects that are under construction. The first is a $3 million renovation of a grocery store in south Kansas City, MO, for the Red Bridge Farm Fresh Market. The result will be a 40,000 square foot store that has a community market feel. The renovation includes site work, full façade construction including a new grand vestibule, regrading and surfacing of parking lots, new storm sewer, new domestic water and fire lines, new roof, and full landscaping. Josh Buller (2017), is the Construction Superintendent and Brian Weber (2020), is the Project Manager. Completion is expected in September 2024.

The second project is a $4.8 million large jet hangar project being built for Team Aero at the New Century Air Center in New Century, KS, part of the Kansas City metro. The hangar will be 12,000 square feet plus 3,000 square feet in two stories of office space and crew quarters. Cory Modgling (2022) is the Construction Superintendent and Brian Weber is the Project Manager. Completion is expected in December 2024. Team Aero specializes in quality aircraft parts and repair management services. Planning is underway for another hangar to be constructed at New Century by Nexus 5.

Become a Leader

By Mark Fletcher (2008), Chief Technology Officer

What does it mean to be a leader? It seems to be more than simply functioning as a supervisor or manager. In fact, any team member can be a spectacular leader regardless of position. Consider the following leadership qualities:

Vision. We are all on our own journey, but leadership is about crafting a shared journey. Leaders communicate a clear vision and inspire others to pursue it. Each property and corporate team have unique challenges and opportunities that require a tailored vision for success.

Values. Value-based decision-making builds trust. Team members are more likely to follow leaders who demonstrate and live their core values.

Attitude. A positive attitude is contagious. Leaders who approach challenges with optimism set a tone that helps others cope with daily stresses and stay motivated.

Problem-Solving. Leaders are intuitive and logical, capable of overcoming daily challenges that face our properties and teams. Some challenges seem insurmountable. Leaders look past the problems, great and small, to develop and try new approaches or retry old methods with renewed skills and optimism.

Motivation. A leader’s ability to motivate their team is paramount and leading by example is key. Modeling desired behaviors and recognizing accomplishments can drive teams to surpass their goals and KPIs.

Development. Helping others grow and thrive is the crowning element of leadership. This kind of sincere and authentic caring requires emotional intelligence, regular one-on-one time with team members, and bi-directional feedback and consistency.

How often do you demonstrate these qualities? What would it look like if you started to experiment with some of these today?

I’ve been a part of the Cohen-Esrey team since 2008. During that time, I have seen some truly phenomenal leaders. I’ve seen Property Managers step up and transform struggling properties into wonderful places. I’ve seen individuals bloom as they shine their contagious attitudes on everybody around them. I’ve seen angry customers become our biggest advocates as teams became laser-focused on understanding and responding to customer needs. I’ve seen neighborhoods express sincere gratitude and appreciation for the ways our apartments have enriched their community. All of these marvelous outcomes stem from Cohen-Esrey’s reason for existing, which is to:

Empower People to Thrive.

“Thrive” is an interesting and powerful word. “Thrive” means to grow vigorously, to flourish, and to prosper. Leaders magically emerge when individuals embrace the idea that they can thrive; that their job can be more than just the next gig; that their properties and teams can deliver amazing results; that they can become a meaningful influence for good.

Even the world’s greatest leaders had bad days. They encountered disappointing outcomes and significant challenges. Because these same great leaders were self-sufficient, they picked themselves up, reinvented themselves, and crafted new ways of thinking. If you aspire to great leadership, you can do the same. Be resilient. Be buoyant. Hold fast to your values and help others do the same. Solve problems, try new things, and remain positive. Most of all, see the individuals around you, seek to understand them, and then… help them thrive.

Reflecting on Integrity

By Karen Crouch (2019), Managing Director – CEC

Have you ever contemplated the number of decisions you make each day? On average, an adult makes about 35,000 decisions daily. At the end of the day, have you ever reflected on how many of those decisions were made with complete Integrity? As the adage goes, "the more the opportunity, the more the responsibility."

In property management, the significance of each decision is profound. The sheer volume and impact of decisions highlight the crucial role of a leader within an operation. Leaders are not only responsible for choosing a new vendor, handling a challenging eviction, offering concessions, prioritizing maintenance requests, or coaching team members; they shape the entire atmosphere and functionality of the property through these decisions. The Integrity with which these decisions are made can either enhance or undermine the property’s success.

Every decision a leader makes has the potential to create a ripple effect. In scenarios with multiple approaches, property teams often find themselves at a crossroads. By using Integrity as their guiding principle, leaders can simplify these choices, reducing the complexity to one or two viable options. This not only streamlines the decision-making process but also ensures that the outcomes are beneficial for all stakeholders.

Conversely, decisions lacking Integrity can lead to negative consequences. These adverse ripples can escalate, causing dissatisfaction, confusion, and inefficiency within your property. Such negative outcomes can transform into a substantial wave, threatening the stability and success of your operations.

As leaders, we bear the responsibility of making decisions that enhance the experiences of residents and team members while fulfilling our investors' expectations. Decisions grounded in Integrity generate positive ripples, establishing a foundation of trust and respect that fortifies the entire property. The inherent value of Integrity lies in its universal availability; it is a quality we all possess and must channel consistently. Consider the following strategies for incorporating Integrity into daily operations:

Hold yourself accountable to the same standards you set for your team.
Consistently share complete and honest information.
When confronted with challenges, resist the temptation to take the easy way out—commit to honesty.
Carefully consider the implications of your decisions before taking action.
Forego the popular and easy decisions in favor of the right ones.
Maintain confidentiality and handle sensitive information with care.

By integrating Integrity into our decision-making processes, we not only enhance the efficiency and effectiveness of our properties but also cultivate a culture of trust and respect. Each decision, made with Integrity, reinforces the strength and stability of our operations, illustrating the profound impact a leader can have through their commitment to ethical decision-making.

PreservingUS is Empowering People to Thrive

By Emily Robinson (2023), Executive Director

PreservingUS, Inc. (PUI) is a nonprofit organization with a Vision of facilitating and promoting the preservation and restoration of historic buildings and structures, developing and operating affordable housing, and supporting and empowering low-income residents.

PUI works with non-profit and for-profit organizations with like interests, focusing on maintaining the character and beauty of historic buildings by reusing and restoring them for affordable housing. We put our Vision into action in three ways:

We renovate and repurpose historic buildings into one-of-a-kind affordable housing. In collaboration with the Cohen-Esrey Development Group (CEDG), we have co-developed 14 historic properties across Kansas, Iowa, Nebraska, and Oklahoma.
We provide resident services to help people thrive. Safe and secure housing is a critical first step to stabilizing one’s life. Residents may also have other challenges they need to overcome before they can truly thrive, so we connect them to additional resources that help them address those obstacles.
We provide older homeowners with accessibility improvements so they can age safely right where they are.

I joined PreservingUS as the Executive Director a little over a year ago, and here are some highlights of what has transpired since then.

Turning around struggling properties. Our four small properties in southeastern Kansas have been difficult to manage since they opened more than a decade ago. We’ve worked hard with Cohen-Esrey Communities (CEC) and others to make improvements. We have more work to do, but our efforts are paying off. Occupancy has increased in all four properties and these gorgeous buildings are once again becoming assets in the small towns where they are located.
Developing a new resident services process. Instead of us deciding what residents need, we’ve put together a system for residents to provide input on what assistance and activities they want to see, while also meeting Land Use Restriction Agreement (LURA) requirements. We will soon be implementing this new process at two properties in Texas: The Lofts at the Grim in Texarkana, TX, and Village Park (formerly Astoria Park) in Amarillo, TX.
Building a presence in Kansas City. When I stepped into my role with PreservingUS, we weren’t doing anything in Kansas City, even though we’re based here. Since last year, we have partnered with nonprofit Kanbe’s Markets to deliver produce to residents in properties that Cohen-Esrey manages and/or owns. Once a month, we deliver groceries to Bluejacket Lodge in Shawnee, KS; Alhaven in downtown Kansas City, MO; and we’ve recently started delivering groceries to the Northwoods Apartments north of the river in Kansas City.
Growing our accessibility and home repair service. We recently became a provider for the Mid-America Regional Council’s senior home repair program that serves the five-county Kansas City region. Unfortunately, as soon as we finished our first project, the program ran out of funding and shut down. We’re exploring ways to fill the gap with other sources of support because the need for home accessibility repairs among the nation’s aging population is only growing.

If you would like to explore anything I’ve described here for your property, let’s chat. Email me at erobinson@preservingus.org or call

(913) 671-3365.

Another Historic Building for Tax Credit Fund

Cohen-Esrey Capital Partners (CECP), sponsor of the Heartland Historic Preservation Fund VI (HHPF-VI), has completed an investment by the fund in the Rathbone Boutique Hotel in Montrose, CO. Montrose is a small town of more than 20,000 between Grand Junction (62 miles to the northwest) and Telluride (67 miles to the south) near the Black Canyon of the Gunnison National Park. Built in 1909, the Rathbone consists of 12,500 square feet and the developer has spent approximately $8.2 million to restore the historic structure. HHPF-VI is investing in federal historic tax credits. Construction of the 17-room independent hotel is nearing completion. The building had been vacant since 2012 after a fire damaged the interior of the building. There will be seven guestrooms on the first floor and the second floor will feature 10 guestrooms, with a mix of standard rooms, larger rooms with unique layouts, and two lofted suites.

Carol Lowe (2011), Director of StateTax Credits, brought the project to CECP and has worked with Michael Marsh, CPA (2020), Director of Federal Tax Credits, to close the transaction. Charity Trotter (2023), is the Fund Administrator for CECP and Hayley Fisher (2023) is the Fund Accountant. HHPF-VI has now made investments in four historic properties with three more investments pending.

An Empowerment Story

By Emily Robinson (2023), Executive Director

Macaria Gonzales, (2010), is the Property Manager for Eileen’s Place in Kansas City, KS Here is what she has to say about her Empowerment:

Cohen-Esrey has Empowered Me to Thrive from the day I started in July 2010. Cassie Colston (2004) Senior Regional Manager and Assistant Vice-President, was my Property Manager at the time and has from my start and now, been my biggest mentor, trainer, supervisor and go to over the last 14 years. I had an amazing maintenance tech,

Mr. LC – Lanny Cunningham who was a rock and treasure for me. He also helped mentor and supported me and my growth for many years.

I had no experience in the business beforehand and those two always supported me and helped me. I had a big interest in learning more of the affordable housing program, being a Property Manager, helping residents and others, and with their support, encouragement and all the help from the compliance team, especially Lisa Paszkiewicz (2008), Section 8 Housing Compliance Specialist, and Tina Shirey (2002), Compliance Manager, the accounting and other team members, I have been able to learn a lot, achieve a lot and make this my career. Everyone has always been genuine and helpful to me anytime I have questions, need support or guidance, they are always there. Because of all the support from the Cohen-Esrey team/family, I make sure to do all that I can to be a support to others.

Fun Photo

Sunrise in Mankato, MN, with our Sinclair Flats and Lewis Lofts (under construction) in the foreground. That’s the Minnesota River flowing past the city

Single Digits Don’t Work

The NPS for Cohen-Esrey Communities is now in the single digits. Thirty-five properties have negative scores; 25 properties have a +0 NPS; and 57 properties have a positive score. The problem is that there are too many unhappy residents on the 36 properties with negative scores. Only 12 of those 36 properties are new to the portfolio. Twelve are larger CEAI assets. We received 1,273 surveys from those properties with negative NPS and 1,321 surveys from the rest of the portfolio. Unhappy residents send unhappy surveys. In reviewing the Comments Log, there are many complaints about the cleanliness of properties. There are complaints that maintenance work is sloppy or was not completed properly or timely. There are complaints about management not being in the office during office hours. Many of the complaints we see can be resolved without spending much or any money. Delivering Customer Fulfillment is one of our Core Values and we currently aren’t getting the job done.

The Nexus 5 Group IS getting the job done with a +88 NPS. So is Walnut Street Flats at +90.00, Justin Place at +88.00, and The Boulevard at +98.39 – all who occupy First Place on our Leaderboards.