Multifamily Management Specialist U.S. Residential Group Formed
Economic turmoil for multifamily owners and lenders means opportunities for multifamily property managers, if the pace at which such companies are being formed is any indication.
Dees Stribling, Contributing Editor
Dallas–Economic turmoil for multifamily owners and lenders means opportunities for multifamily property managers, if the pace at which such companies are being formed is any indication. The latest entry into the field is DFW-based U.S. Residential Group, founded by CEO Al Fenstermacher, who brings some 35 years of on-site management, supervisory, financial and overall real estate experience to the task.
By combining the expertise of apartment specialists in each region of the country, the thrust of U.S. Residential Group will be national. All together, the company’s key employees have experience operating more than 80,000 units throughout the country.
The company’s fee-management division will provide all manner of management services, including staffing and operations, marketing and lease up, resident retention programs, property accounting, banking and reporting as well as renovation management. The division will also specialize in transitional management, stabilization and repositioning of distressed properties.
It seems likely that there will be a fair amount of opportunity for managing distressed multifamily properties going forward. According to Moody’s, the delinquency rate on multifamily conduit loans as of January 2010 stood at 8.77 percent, 63 basis points higher than the month before. Among property types, only hotels have it worse (9.82 percent).
Moreover, some states have been particularly plagued by multifamily delinquencies. Fitch noted in February that in Nevada, some 23 percent of multifamily loans are delinquent. In Tennessee, Florida and Texas, the rates are 21 percent, 18 percent and 11 percent, respectively.
Virtually, the only apartments being developed now are affordable housing projects with public subsidies. U.S. Residential Group wants a piece of that pie, too, by offering affordable housing management with a heavy emphasis on affordable housing compliance, auditing and agency reporting.
U.S. Residential Group could not be reached for comment on Friday, but according to a statement by the new company, “With the ever-changing economic climate, many properties [will] benefit from our experience to bridge the gap between owners, lenders, buyers and sellers.”