Our Services

Property Management Case Studies

We maximize building value through various techniques.

To increase revenues we:

  1. Continually monitor the market. We closely watch market conditions and constantly update our rent rates to reflect current conditions. We achieve the highest rents possible while avoiding the prolonged vacancies that can result if space is mispriced.

  2. Cooperate with the brokerage community. We enjoy an exceptional reputation with the brokerage community. We provide brokers with accurate and comprehensive information on all listings and promptly pay commissions when due. As a consequence, brokers eagerly work our buildings, which ensures that our buildings stay fully rented.

  3. Maintain an in–house brokerage department. Currently we employ seven full–time commercial and retail leasing brokers and sales people who are available to work on all available listings.

  4. Actively market all availabilities. Our marketing efforts are extensive and include:
    • Website postings. We expedite the leasing process by making available on our website detailed and timely information concerning each listing including photographs, floor plans, rental and contact information.
    • Advertising. We regularly advertise availabilities in the New York Times, CoStar, Craigslist, and other appropriate publications.
    • Representation at trade events. We are active members of the Real Estate Board of New York and the International Council of Shopping Centers and actively promote our commercial and retail availabilities at the many frequent industry functions that we attend.

  5. Diligently bill and collect rents. We diligently review each tenant's lease to ensure that they are billed not just for fixed rent but also for their additional rent and escalation charges. This includes monitoring electric rates and increasing charges to tenants as rates vary and making sure that tenants with significant water use are metered and billed on a monthly basis. We rigorously enforce the payment terms of each lease and bill late charges and commence legal actions when necessary to insure prompt rental payments.

  6. Screen prospective tenants carefully. To minimize lease defaults, we thoroughly screen all prospective tenants by obtaining credit reports, checking landlord and financial references, reviewing financial statements and personally interviewing each prospective tenant.

  7. Upgrade buildings. We recommend and supervise building upgrades that permit us to increase rents. Examples of upgrades include window replacement programs, elevator modernizations, lobby and common corridor improvements, uniform building signage programs, lighting upgrades and other energy conservation programs.

  8. Utilize the rent laws to their fullest advantage for rent regulated residential buildings. We are fully familiar with the existing rent regulations and understand how to utilize the laws to increase rents and obtain tax abatements.

  9. Monitor rent regulated tenants. We carefully monitor rent regulated residential tenants and actively seek to recover possession of apartments that may be illegally sublet or occupied as a non–primary residence or that might qualify for luxury deregulation.

  10. Provide a high level of service to tenants. We keep tenant turnover to a minimum and thereby minimize re–letting costs. We constantly monitor the level of services we provide to ensure that tenants are satisfied. Each year we send a questionnaire to every tenant requesting their feedback on the services we provide and the operation of their building. This gives us invaluable feedback on the performance of our building staff and property managers. Tenant satisfaction is maintained at a high level.

To decrease expenses we:

  1. Use our leverage to negotiate favorable pricing. Managing over 40 buildings allows us to negotiate favorable pricing with our professionals and vendors. These cost savings are passed along directly to the owners of the properties that we manage. As an example, we operate an insurance program for the buildings that we manage. Under this program we insure our buildings under a master policy and competitively bid the insurance every year. This allows us to obtain insurance at premiums substantially lower and with coverages that are substantially better than those that an individual property owner is able to obtain.

  2. Utilize technology to lower expenses. We have installed heat computers and remote water metering devices in many of our buildings. This permits us to decrease fuel consumption and to accurately monitor water use in our buildings. Remote water metering also enables us to detect spikes in usage and possible leaks and to promptly repair them. It also allows us to accurately bill back commercial and retail tenants for their consumption.

  3. Competitive bidding. We competitively bid any large expenditure so as to ensure the most favorable pricing.

  4. Properly maintain buildings. Proper maintenance of a building helps lower operating costs. We make sure that buildings are kept clean, repairs are properly completed and tenant complaints are responded to quickly.

  5. Utilize our many years of experience to review building operations and make cost savings modifications. For example, we recently were able to negotiate a three–person staff reduction with the building union for an office building that we manage. This, together with the modification of staffing schedules, resulted in a cost savings in excess of $150,000 per year.

Case Studies:

  1. 43–45 West 55th Street, New York, New York
    This is a 16,000 sq. ft. unattended, elevatored building containing 10 apartment units and three stores. We took over management of the property in 1996 after its current owner acquired it. At that time, it had a stated annual rent roll of $313,000, although due to tenant defaults less than $200,000 was being collected. The property was in poor physical condition with over 400 outstanding violations of record. Additionally, the building and the tenants had never been registered with the Department of Housing and Community Renewal. Within one year after taking over management we were able to recover possession of six of the apartments, evict two of the store tenants and re–rent their space at a significantly higher rent, remove all but a handful of the violations, significantly upgrade the physical infrastructure of the building and properly register the property with DHCR. Today, the building has a rent roll of $732,000 per year, 100% of which is being collected.

  2. 4401 7th Avenue, Sunset Park, Brooklyn
    This is a 54,000 sq. ft., six story, elevatored apartment building, with live–in superintendent, containing 54 apartment units. We assumed management of this property in December 2006. The owners are in the process of converting this building to condominium ownership. At the time we assumed management of the property, only one of the 54 apartments was vacant. As part of the owner's strategy to convert the building, we are aggressively seeking to obtain possession of the apartments. As of February 2008 we have been able to create 21 total vacancies.

  3. 875 Avenue of the Americas
    This is a 240,000 sq. ft., 25 story office building located on the northwest corner of 31st Street. We acquired a controlling interest in this property in 2000. Since we acquired this property we have completed the following projects:

    • Union Staff Reduction. By varying work schedules, modifying building services and utilizing outside vendors we were able to achieve a three–person staff reduction in the building. This reduction was negotiated with the building employees' union and has resulted in cost savings in excess of $150,000 per year without any sacrifice in building services.

    • Common area improvements and upgrades. We upgraded the building lobby, elevator corridors and bathrooms and have adopted uniform signage on each floor and upgraded the passenger elevator cabs. This has improved significantly the overall appearance of the building and has allowed us to increase rent rates and obtain better quality tenants.

    • Elevator Modernization. We completed a total modernization of the six passenger and the two freight elevators so as to provide a better level of service.

    • Window Upgrade. We replaced the over 900 windows in the building. Not only has this improved the appearance of the building, it has also resulted in significant energy savings.

    • Energy Conservation Program. We installed energy–efficient, motion detector activated lighting throughout the building and implemented other energy conservation measures so as to reduce energy use. In addition, we bid out the electric supply contract for the building to keep electric rates competitive.

    • Website. We have created a separate website to market available space in the building (www.875sixth.com).

    • Combining of units. When we first took over management of the building, there were over 120 separate tenants. Most of these were small tenants with little or no credit. In addition to credit issues, the cost of operating such a heavily tenanted building was excessively high. Since acquiring the building, we have engaged in a program of combining space and seeking better quality tenants. Today, there are fewer than 75 tenants in the building and many of the non–credit tenants have been replaced by better tenants with higher credit.

    • Installed Heat Computer. We installed a heat computer in the building in order to operate the boiler and monitor its performance more efficiently.