January 30, 2023

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.

A Popular Place in Poplar Bluff

Idlewild Estates is an affordable property managed by Cohen-Esrey Communities (CEC) for a third-party client. With 40-units, Idlewild Estates is the perfect size for Poplar Bluff, a small town of 16,225 people in southeast Missouri. The single-story buildings with garages offer a homey feeling. Idlewild Estates was built in 2005 and is situated in the west central part of town. One-bedroom units are 905 square feet and rent for $498 per month. Two-bedroom units are 1,088 square feet and rent for $560 per month. Apartments have walk out patios, huge closets, washer and dryer hookups, and the community has a beautiful clubhouse for use by the residents along with a computer lab, and a central laundry room for those who don’t install laundry equipment in their units.

Poplar Bluff is the county seat for Butler County and is know as the “Gateway to the Ozarks” offering plenty of opportunities for outdoor recreation in the surrounding area. The Black River flows through the city, providing numerous options for activities like fishing, kayaking, hiking, and more. Poplar Bluff takes its name from a bluff that overlooks the Black River. When first settled, the bluff was covered with tulip poplar trees. In 1927 a tornado leveled most of the city, especially the original business district along Main and Broadway Streets. It was the 17th deadliest tornado in U.S. history. After the tornado, the downtown area was rebuilt and offers a collection of quaint shops and businesses. The largest nail manufacturer in the United States, Mid-Continent Steel and Wire, is located in Poplar Bluff. It is one of 15 nail companies in the country and accounted for half of U.S. nail production as of June 2018. Three Rivers College is located in Poplar Bluff and provides college courses along with career and technical programs. Linda Bloodworth-Thomason, producer of the television program, Designing Women, hails from Poplar Bluff.

Lori Davies (2022), is the Property Manager and Carolyn Henson (2021) is the Regional Manager. Michael Gioia (2020) is the Senior Property Accountant, Emily Fletcher (2020), is the Accounting Assistant, and Rodney Chmidling (2015) is the Accounts Payable Specialist.

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

Juawuan Williams – Hamptons at East Cobb, Marietta, GA – Maintenance Technician
Meghan Kimber – Lakes at North Port, North Port, FL – Property Manager
Kingsana Souvannavong – Loretto at Creekside, Live Oak, TX – Assistant Property Manager
Daisy Olivas – Jefferson on the Lake, Olathe, KS – Leasing Agent
Cindy Shewmaker – Andover Park, Kansas City, MO – Leasing Agent
JayTee Turner – Lofton Place, Ft. Worth, TX – Make-Ready Technician
Antonio Barragan – Old Orchard Estates, Carbon Cliff, IL – Maintenance Technician

Meet the House Springs Team

Meet the House Springs team in House Springs, MO. Kim Ruffino (2015), Property Manager, and Erick Jensen (2022), Maintenance Technician, deliver Customer Fulfillment at a high level, placing 5th on the NPS Leaderboard with an outstanding score of +75.41. House Springs is a 40-unit affordable community managed by Cohen-Esrey Communities (CEC) for a third-party client. House Springs, MO is located 30 miles southwest of St. Louis, MO.

A Vision 2026 Update

Vision 2026 is Cohen-Esrey’s roadmap between now and December 31, 2026. There are many elements to Vision 2026. Here is an update on some of the most prominent.

1. Acquire 20,000 market-rate units in a cumulative portfolio.

As we reported in the January 16 issue of People & Properties, dramatic increases in interest rates have caused the apartment market to seize in terms of acquisitions. We expect to acquire anywhere from six to eight market-rate assets each year totaling 2,500 to 3,000 units. This did not happen in 2022 and may be a stretch for 2023. We anticipate recapitalizing several Cohen-Esrey Apartment Investors (CEAI) assets during 2024 and keeping them in the portfolio while continuing to acquire more apartment communities once market equilibrium is restored. As of December 31, 2022, the CEAI portfolio totals 5,792 units in 18 properties. An additional 2,748 units in eight properties have been sold. CEAI has achieved 29% of the objective.

2. Develop 7,500 affordable/workforce units in cumulative portfolio.

To date, the Cohen-Esrey Development Group (CEDG) has completed the development of 16 properties totaling 1,083 units. Another 2,679 units (with site control) in 16 assets are in development or under construction. CEDG continues to scale toward an annual production rate of 20 to 30 properties totaling 3,000 to 4,000 units per year. CEDG has achieved 50% of the objective counting properties in development/construction.

3. Internal Net Promoter Score (NPS) score of +50.

The internal NPS has consistently been at +50 or better and currently stands at +52. Assuming that this level of Team Member Fulfillment can be sustained, the company has achieved 104% of the objective.

4. Overall external Net Promoter Score (NPS) score of +50.

This is one of the most difficult objectives to meet. Customer Fulfillment is critical to the overall success of the organization and is measured by the NPS. Currently Cohen-Esrey has an external NPS of +36 and has achieved 72% of the objective.

5. Extend average resident tenure to three years.

This objective is a modification of the initial one which was to reduce the resident turnover rate to 8%. Reducing resident turnover was not necessarily congruent with what CEAI does when it acquires a market-rate property. Often rents are increased substantially during the first 24 months of ownership and the resident profile is repositioned. This is by design and runs counter to the turnover reduction objective. Modifying the objective to increasing resident tenure is more consistent with Cohen-Esrey’s overall philosophy. During 2022, the average resident tenure was 32 months. The Vision 2026 objective has been modified to reflect the fact that we are striving to increase the average resident tenure to 40 months.

6. Community Impact Programming.

This objective involves implementing a wide range of programs such as blood drives, food banks, winter clothing drives, reading initiatives, community gardens, walking school buses, etc. to promote Community Impact. Many of these concepts have been implemented on our properties and in the Corporate Office, however we have not yet reached the point where it has become part of a programmatic approach on a systemwide basis. We will begin fleshing this out to a greater degree beginning in 2024.

7. Job training partnerships for affordable properties.

This objective has not yet been addressed and will be explored further during 2024.

8. Lifestyles of Choice™ for market-rate properties.

CEAI and CEC will collaborate on this objective which has not yet been addressed. Ideas will be generated during 2023 and 2024 to arrive at a definition that can be translated into actionable steps for implementation.

9. All Regional Managers are Certified Property Managers® (CPMs).

Currently three Regional Managers and one Area Manager are CPM Candidates representing 50% of the team.

10. Thriving Communities™ for affordable properties

Like Lifestyles of Choice, the Thriving Communities model will be a collaboration between CEDG and CEC with more definition being developed during 2023 and 2024.

11. Cohen-Esrey is a sustainable company for generations to come.

This objective is measured in two primary elements – succession planning and financial stability. Considerable work has been done with succession planning and the next generation of leaders has been identified. These team members are already fulfilling critical roles in the various business units. The expansion of apartment acquisition and development efforts is leading to greater profitability and the building of strong cash reserves and collateral pools which will benefit the company for decades to come. Further, diversification of revenue streams has been occurring, which is also part of the plan.

12. Robust training & learning programs.

A team has been formed and is creating a Growth and Development program. This will continue over the next 12 – 18 months.

13. Opportunities for incentive compensation.

We are pleased that this objective was implemented 100% across the board during 2022.

14. Continuous team member performance evaluation.

A continuous performance evaluation system is being built during 2023. Once installed, team members won’t have to wait for an annual review and will always know where they stand with respect to their performance.

The “Payroll Guru” at 20+ Years!

Sara Antar (2002) celebrated her 20-year anniversary with Cohen-Esrey last July! You all know her as the Payroll Guru! Sara has a passion for processing payrolls timely and accurately. That’s a good thing for all of us! When asked what she likes about payroll, she will say, “I like it because it’s black and white,” like her favorite photographs.

Sara moved from her beloved New York City, a place she never thought she would leave, but Missouri is home now and where she started her career here with Cohen-Esrey. In fact, Sara’s daughter and son-in-law met at Cohen-Esrey when they both worked in the Marketing Department. Sara says Missouri and Cohen-Esrey have provided a wonderful, happy family life and workplace.

When she isn’t preparing and processing payroll or doing the other myriad tasks that come with payroll compliance, Sara enjoys reading, movies, British TV dramas, baking and photography (not so much in the digital age – she misses the darkroom!). She has a 10-year tradition baking Thanksgiving pies with grandchildren, Zoe (15) and Lucas (13). They also bake and decorate a Buch de Noel at Christmas and she loves being able to pass down her love of baking and these traditions with her grandchildren.

The charities that Sara has a passion for and contributes to are Habitat for Humanity and World Central Kitchen.

Sara’s family is rounded out by her 8-year-old orange Tabby, Finnick. The family also has four other cats, a Calico named Katniss (Finnick’s sister); a Tortoise Shell named Hermione and two black kittens, Penny, and Wick. Not to be outdone by the felines, they also have a Siberian Husky named, Luna.

Sara – we’re honored that you have chosen to be a Cohen-Esrey team member since 2002 and are grateful for your service!

Jessica Bell Elected to the AAKC Board

Jessica Bell, CAS (2014), Senior Project Engineer for the Nexus 5 Group, has been elected on to the Board of Directors of the Apartment Association of Kansas City (AAKC) for the 2023 year. Jessica has served on the Supplier Partner Board for the last three years and now has the opportunity to elevate her involvement to the governing board. The Board of Directors manages and directs all aspects of the AAKC. The board consists of sixteen members including thirteen multi-family members and three supplier partners.

Jessica (and the Nexus 5 Group) have been active members of the association for the last seven years. During that time Jessica has obtained her Certified Apartment Supplier (CAS) and Leadership Education and Development (LEAD) designations as well as completed the Lyceum program through the AAKC and National Apartment Association (NAA).

The AAKC was established in 1974 to serve the apartment industry along with the NAA and the Kansas and Missouri associations. It provides legislative insight on local, state, and national levels. The AAKC has 1,116 member with more than 114,000 apartment units consisting of property owners, developers, managers, and member communities. Also included are 255 Supplier Partners who provide products and services to the apartment industry.

Congratulations, Jessica, on your election to the AAKC Board of Directors!

Nexus 5 Welcomes Kristy Trupka!

The Nexus 5 Group is pleased to welcome Kristy Trupka as its new Accounting Manager. Kristy is a Certified Public Accountant (CPA) with over seven years of experience. After growing up in Manhattan, KS, she earned her undergraduate and graduate degrees in Accounting from Kansas State University. She spent six years in public accounting as an auditor at RubinBrown LLP. Her time there was spent in various industries with a specialty in working with construction clients. She has worked the last year as a Senior Contract Analyst on the international team at Burns & McDonnell Engineering Co. During her time there she was responsible for all international contracts, financial reporting and business planning & analysis for her assigned countries.

In her free time Kristy enjoys running, hiking, and finding any excuse to be outside. This time of year she spends her time watching K-State and Chiefs football with her husband, Brennan. She has a 95 pound German Shepherd named Havana and nine nieces and nephews who she enjoys spoiling at every opportunity.

Welcome to Nexus 5, Kristy!

CEAI Investor Relations – A Team Effort

By Lydia Kinkade (2013), CEAI Fund Manager

In order to properly capitalize the acquisitions that Cohen-Esrey Apartment Investors (CEAI) completes, we utilize a wide variety of structures. This is referred to as our “Sources of Funds.” The largest portion of funding is the loan – nearly $700 million across all CEAI assets, followed by equity from a Primary Equity Provider (90% of the equity required – nearly $320 million) and then equity provided by our co-investment funds (10% of the equity required – nearly $50 million). Sometimes there are various iterations of this structure that include bridge loans, direct investments, 1031 exchanges, crowdfunding platforms, and more. Across the various entities that are providing capital, there are nearly 150 investors that have participated! We take the level of trust that investors have placed in us very seriously and believe that part of our role as good stewards of their money is to provide timely, accurate investor reports. Focusing particularly on our co-investors, we provide them with quarterly and annual reports that share details of how our portfolio of properties performed over a given timeframe. We include metrics such as occupancy, rent growth, NOI (Net Operating Income), NPS trends, and even a complete SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis on each property. In order for this information to get into the hands of our investors, we rely on our accountants, asset managers, marketing team, the entire CEAI team, and even President and CEO Lee Harris (1975). We regularly receive compliments on the type of reporting that we provide to our investors – so a big THANK YOU is owed to our fantastic team members for making this possible. We appreciate the good work being done by our team each and every day; it truly makes a difference in our delivery of Customer Fulfillment to our investors.

Get Your Cameras Out!

We need photos! We would like to share photos of some of the great amenities that are offered on Cohen-Esrey properties. This includes swimming pools, clubhouses, clubrooms, car washes, tennis courts, parcel locker systems, and many other features. We especially would like to receive photos of playgrounds. Many of our communities have some very unique playgrounds and we want to highlight them in upcoming issues of People & Properties.

Send your photos to me – Lee Harris – at lharris@cohenesrey.com. We need to receive them by February 17.

No, this isn’t a Cohen-Esrey playground . . . but wouldn’t it be cool if we had one like this?

Annual Leadership Conference

Mark it on your calendar! The Cohen-Esrey Annual Leadership Conference is scheduled for April 18 – 20 at the Doubletree by Hilton Hotel in Overland Park, KS. The theme is Breakthrough to Excellence and our leadership team has some fabulous programming in store for attendees. Stay tuned for more information!

Another Empowerment Story

By Paige Bohling (2022), Property Accountant

Paige Bohling (2022), is a Property Accountant for Cohen-Esrey Communities (CEC). Here is what she has to say about her Empowerment:

Cohen-Esrey has Empowered Me to Thrive in several ways in the four months that I have been a part of the team. When I found out that I was going to be relocating to the Kansas City area from out of state, I was worried about how well I would be able to read a company through a virtual interview. It was hard to feel a connection with any of the interviewers or get a true sense of the values of a company. However, after interviewing with Dee Krause (2022), Recruiter, and Marcie Teenor (2013), CFO, I knew that Cohen-Esrey was the company for me. I was so impressed with the emphasis on the Core Values of the company and how easy it was to build a genuine connection with them during my interviews.

Prior to joining the company, I had no experience in this industry and had worked in public accounting as an auditor since I graduated college. It was a bit intimidating to go in a different direction with my accounting career, but Cohen-Esrey welcomed me with open arms and has taught me more than I could have ever expected in the short amount of time I have been here. I truly have never felt more Empowered in my career than I have during my time at Cohen-Esrey. I am so glad to be a part of this company and look forward to continuing to learn about this industry.

Workplace Grief Training at Your Fingertips

By Marilee Scheid (2019), Director of Learning and Development

Are you a manager wondering how to support a grieving employee or a team member suffering from a personal loss? There’s no need to navigate grief on your own. Through our partnership with Workplace Healing, our team members have access to the Human Recovery Plan™ Software Platform. This interactive, 24/7 benefit helps us learn how to surround a grieving team member with thoughtful words and supportive actions.

Are you grieving? Working while grieving can be hard. If you are grieving the loss of a loved one and/or taking bereavement leave, please let your manager know. We are here to make your return to work as fluid as possible.
Is one of your team members grieving? The Human Recovery Plan™ (HRP) Software Platform helps you build a caring, practical plan with tactics that support and re-engage your employee. For additional grief support resources, visit Workplace Healing at www.workplacehealing.com.
For assistance in building a plan or if you’d like support transitioning back to work and don’t wish to discuss your bereavement details with a manager, please contact Marilee Scheid (2019), Director of Learning and Development, mscheid@cohenesrey.com.

Another Blast From the Past

46 Jefferson Condominiums

The Ellington Condominiums

7500 East 35th Terrace

Did you know that there have been multiple business units in Cohen-Esrey’s past that aren’t part of our family of companies today? We have been running a series in People & Properties where we will highlight one such business unit. Here is another.

One of the lesser-known former entities was Cohen-Esrey Equity Partners, LLC (CEEP). This venture involved several principals of the firm and was active from 2004 – 2019. CEEP was created to acquire and/or develop commercial and multi-family properties in the Kansas City metropolitan area. Four notable projects emerged including the conversion to condominiums of a 22-unit apartment property on Kansas City’s Country Club Plaza, another apartment-to-condominium conversion on the Plaza, the purchase and eventual sale of a warehouse in an eastern Kansas City industrial park, and the development of a residential subdivision.

The Colonial Gardens Apartments at 46th and Jefferson was a 22-unit townhome project that had been managed by Cohen-Esrey for many years. CEEP acquired the property in 2005 and spent $75,000 per unit to modernize the 1940s constructed units. Re-named the 46 Jefferson Condominiums, the project sold out quickly in 2006 as it was one of the few townhome communities on the Plaza. One unique aspect of this conversion was the use of Missouri state Neighborhood Preservation Tax Credits totaling more than $300,000 as a source of funds for the renovation which helped make the 46 Jefferson financially viable.

CEEP acquired a 48,400 square foot warehouse at 7500 East 35th Terrace in 2005. The transaction was somewhat complex and involved a Section 1031 tax-deferred exchange, a tenant in common ownership structure, and the lease buyout of one of the existing tenants. In 2007, CEEP sold the property to an owner-user for a profit and arranged for one of the tenants in common to complete another Section 1031 exchange into a Starbuck’s store in Springfield, MO.

In 2006, CEEP purchased the Richlin Apartments north of the Country Club Plaza at 46th and Broadway. The 41-unit apartment community was re-named The Ellington, underwent a renovation at approximately $58,000 per unit, and was converted to condominiums. The timing of this project coincided with the Great Financial Crisis that swept the country in 2008, and it took longer to sell all the units. Still, the conversion was moderately successful.

CEEP attempted unsuccessfully to purchase several other properties but did acquire raw land that became the eighth phase of a successful subdivision in the Kansas City suburb of De Soto, KS.

Oak Country Estates VIII had 24 large, wooded lots; CEEP installed a road and other infrastructure, and three lots were sold immediately in late 2006. Then, the Great Financial Crisis caused the single-family market to cool and lot sales stalled for several years. CEEP eventually built two speculative homes that were sold which kick-started the development and the last lot was sold in 2019.

NPS Leaderboards

The three NPS Leaderboards have been updated as of January 27, 2023, and the top of the Leaderboards remained the same as last month. In the 50-Units or Less category Clay Hall (Enid, OK) checked in with a score of +92.50. It’s noteworthy that the Summit at Osage (Osage Beach, MO) recorded a score of +90.16 – the first time we’ve seen two properties in the same category with a +90. In the Properties 51 to 120-Units category, Freedom Place (St. Louis, MO) continues to lead with an NPS of +79.59. And in the Properties of More than 120-Units category, The Boulevard (Springfield, IL), remains entrenched with an NPS of +92.31. There are 37 properties on Leaderboards – four more than last month.

We continue to recognize those properties with a Maintenance Survey NPS that is equal to or exceeds our Overall NPS of +36. To qualify a property must have surveys from the equivalent of 40% of its units or more. We continue to emphasize the importance of providing improved maintenance service to deliver Customer Fulfillment. There are 19 properties this month – the same as last month.

Maintenance Ticket Surveys