November/December 2014 - Indiana Apartment Association
Transcription
November/December 2014 - Indiana Apartment Association
November/December 2014 The Official Publication of the Also INSide... Award Winners • Legislative Update Speaking Legally TABLE of Contents Published bimonthly by the Indiana Apartment Association November/December 2014 9 The Official Publication of the 14 The Indiana Apartment Association 9100 Keystone Crossing, Ste. 725 • Indianapolis, IN 46240 P: 317-816-8900 • F: 317-816-8911 • [email protected] • www.iaaonline.net _________________________________________________________ OFFICERS Chairman Jerry K. Collins, Flaherty & Collins Properties Vice Chairman Sandy Carmin, Englert Management Corporation Secretary Mark Juleen, J C Hart Company Treasurer Chad Greiwe, Gene B. Glick Company Past Chairman Adam Van Rooy, Van Rooy Properties Committee Sign-Up Notice 2014 Midwest Multifamily Conference Recap Also INSide... From the IAA President....................................................................................................................................4 From the IAA Chairman of the Board.........................................................................................................5 PAC Contributors.................................................................................................................................................6 From the NAA Chairman.................................................................................................................................8 Leasing Consultant of the Year Q&A..........................................................................................................10 Legislative Update............................................................................................................................................13 Speaking Legally...............................................................................................................................................21 Around The State.............................................................................................................................................22 Member News...................................................................................................................................................24 Upcoming Events.............................................................................................................................................27 National Focus...................................................................................................................................................28 New Member Profiles.....................................................................................................................................30 Recent CAM Designates.................................................................................................................................32 Associate Member Update...........................................................................................................................32 Call for Submissions January/February 2015 The January/February 2015 issue of INSites will feature RENOVATIONS. We are seeking submissions of photos of successful renovations as well as suggested editorial content. The deadline is January 10. Please contact Jean at [email protected] or 317-816-8900. On the Cover: IAA members were recognized during the Prodigy Awards Dinner at the 2014 Midwest Multifamily Conference. We have recapped the two-day event starting on page 14. direct BOARD members Tamera Brandt, New Generation Management Don Brunner, Denizen Management Brian Cranor, Cityscape Residential LLC John Ehrhardt, The Sterling Group Randy Escue, Dominion Realty, Inc. Nancy Flynn-Strater, The Sexton Companies Nikki Gastineau, CFC, Inc. Mike Gorman, Edward Rose & Sons Cindy Green, HI Management Jon Hicks, Andover Management Corp. Alex Jackiw, Milhaus Management, LLC Jennifer Kennedy, Wabash Landing Cindy Koehler, Buckingham Management Steve Lavery, Herman & Kittle Properties Jeanne Milan, Samaritan Companies Raquel Shamble, Boulevard North Townhomes Tom Spencer, Meridian Management Corporation George Tikijian, Tikijian Properties Chuck Townsend, Sheehan Property Management Mary Trujillo, Barrett & Stokely Adam Van Rooy, Van Rooy Properties Brenda Valle, Newlin-Johnson Co., Inc. Margie Williamson, Pedcor Management associate BOARD members Lara Smith, Apartment Guide Consumer Source, Inc. Chris Moore, APCO Supply Thomas Rector, Rector Communications, Inc. chapter staff members Yvonne Avary • Executive Director, Apartment Owners and Managers Association of Terre Haute Beth Wyatt • Executive Director, Apartment Association of Fort Wayne and Northeast Indiana Amy Phillips • Executive Director, Apartment Association of Southern Indiana Paula Carey • Executive Director, Northern Indiana Apartment Council IAA Staff INSites Publisher Lynne Petersen, CAE, President • [email protected] INSites Editor Jean Lloyd • [email protected] Director of Government Affairs Gretchen White • [email protected] Director of Membership & Education Franny Upp • [email protected] Director of Events & Expositions Lauren O’Neill • [email protected] Accounting & Education Assistant Kristie Fessler • [email protected] Events & Exposition Assistant Meredith Galliher • [email protected] Accounting Manager Mary Massey • [email protected] Front Desk Coordinator Cassandra Bingham • [email protected] POSTMASTER: Send address changes to: Indiana Apartment Association, 9100 Keystone Crossing, Ste. 725, Indianapolis, IN 46240, Phone (317) 816-8900, Fax (317) -8168911. Presorted standard at Indianapolis, IN. The views herein are those of the writers and advertisers and do not necessarily reflect those of the magazine’s management or ownership. IAA welcomes stories, art and photo contributions. All such material must be accompanied by a self-addressed, stamped envelope or it will not be returned. 2 INSites November/December 2014 www.iaaonline.net from the IAA President Thank You for another Successful Year As 2014 comes to a close I want to thank IAA Chairman Jerry Collins for his leadership and commitment to the association over the last two years. I also want to thank our 2014 Board of Directors for their dedication and guidance. Looking back on 2014, it is clear that their volunteer leadership combined with that of our committee chairs and committee members has led IAA to another successful year. Lynne Petersen, CAE IAA President Financially, the association is strong and membership is growing as we reached an all-time high this year representing, more than 221,000 units. It is not only exciting to see membership growth but also to be bringing in new members. The Midwest Multifamily Conference in October benefitted from increased participation from around the state of Indiana as well as neighboring states. Attendees gave great feedback on the number of speakers and the quality of speakers at the conference. Through their feedback we learned that members appreciate the tracks which provide focused education across the industry. We also had a notable year in terms of legislation. IAA successfully lobbied members of the General Assembly to take action on municipal registration and inspection ordinances after municipalities viewed them as a way to generate revenue 4 INSites November/December 2014 from the industry. Registration fees are now limited to $5 per property annually. We also reduced the number of duplicate inspections required by helping pass legislation that allows properties to opt-out of local inspection programs if certain third-party inspection reports are submitted. IAA added new programs this year including the three Power Lunches and the Chili Cook-off. These popular events are on the schedule again for 2015. Additionally, the Young Professionals in Multifamily (YPM) is growing as a way for members to promote IAA programs and events with the younger members and get them interested in attending classes, events and joining committees. The New Member/ New Employee orientation, held every quarter, achieves a similar goal and has been a valuable way of kick starting participation and making sure new members or new employees feel engaged and ready to network to get the most out of their membership. We look forward to introducing more programs and working with both veteran and new leaders in 2015. If you have not already volunteered to serve on a committee, it is not too late. Please visit iaaonline.net to learn more and get involved with IAA. www.iaaonline.net from the IAA Chairman of the Board Thank You, Members! I want to say thank you to our very generous members who sponsor IAA events and advertise through IAA. It’s not enough to just say thank you, so I want to explain why I’m saying thank you. You are a key part of our industry and we appreciate your support. Every year when I walk onto the trade show floor at the Midwest Multifamily Conference I’m impressed with the wealth of expertise and the breadth of products and services that our associate members bring to the multifamily industry. These products and services keep our apartments running and allow us to offer the best service to our residents. We appreciate your knowledge, your enthusiasm and your visibility in the industry. It’s no secret that the multifamily industry is doing well right now and everyone is busy. When members need a product or service they may not even have to flip to the IAA Directory if they’ve seen your business name every time they turn around. while sporting your “Proud IAA Member” logo. While the market is hot right now and business is good, we know who supports IAA and we want to continue to help promoting the goods and services that you offer. To make it easier for associate members to achieve their goals and manage their business strategy, the board has just approved new Business Partner Membership Levels. The Associate, Partner, Executive, Signature and Premier membership levels are designed for companies of all sizes looking to increase exposure in the multifamily industry and build on involvement with the Indiana Apartment Association. For more information please visit iaaonline.net. Jerry Collins IAA Chairman of the Board Thank you once more to all of our generous sponsors this year. Support from associate members is not something we take lightly and is very much appreciated by everyone connected with IAA, especially the leadership of IAA. IAA helps you stay connected and directly reach your target audience. IAA helps build your brand image, create consumer awareness, educate members and increase sales www.iaaonline.net November/December 2014 INSites 5 The IMFHPAC is IAA’s nonpartisan political action committee that invests in candidates who are supportive of industry issues and are pro-business legislators. These funds aid in the election of candidates whose legislative voting records and/or positions on multifamily issues will enhance the business climate in the state of Indiana. CONTRIBUTOR LIST* Platinum Investors ($1.50 per unit) 18 Capital Group 3 Point Property Management Abbey Stombaugh Arnel, Inc. Banner Property Management, LLC Bloomington Housing Authority Brad Nash Braden & Associates-Architonics, Inc. Brookside Properties Inc. Buckingham Management, LLC Carnegie Companies Carr Property Group CDI, Inc. Cedarview Management Chronister Properties Cityscape Residential, LLC Coomer Seedling, LLC Core Redevelopment LLC Country Squire Apartments Crestline Property Management Dietz Property Group Dominion Realty, Inc. Edward Rose & Sons Emmert Property Management Englert Mgmt Corp. Feichter, Realtors Four Seasons Realty Gene B. Glick Company, Inc. Given & Spindler Companies GlassRatner Management GT Properties Hawthorne Residential Partners Heugel Realty, Inc. Huber Properties Hudgins & Co. Indian Village Investments Jehl Apartments LLC J C Hart Company JCap Management John & Stacy Hayes Joplin Apartments LLC JRK Residential Group Kramer Lumber Company Lakeside Residences LI Combs & Sons Management Co. LRG, LLC Madisonville-West Properties, Inc. Maple Crest Realty Corp. Mark II Management Corp. Masterson Properties, LLC Metro Real Estate Miller Valentine Group Neil A. Burd Newlin-Johnson Co., Inc. Novogroder Companies Inc Oxford Gables PAR Enterprises Pearl Group Properties Princeton Enterprises LLC Realty & Mortgage Co. Regor, LLC Riverstone Residential Robert Hoopingarner Samaritan Companies 6 INSites November/December 2014 Shaw Rentals Sentry Management Services Inc Sheehan Property Mgmt, Inc. Tazian Properties Teakwood Arms Telzloff LLC Ten South Management TGM Associates L.P. Tom Hoot Rentals Trinity Property Consultants Turtle Creek Management, Inc. Urbahns Group an Indianapolis Co. Van Rooy Properties Westminster Management LLC Williw Point Wingate Companies Zender Family Limited Partnership Gold Investors ($1.00-$1.49 per unit) Barrett & Stokely, Inc. Becovic Management Group of Indiana Birge & Held Asset Management, llc Consolidated Property Management Denizen Management Flaherty & Collins Properties GlassRatner Management Hills Property Management Mark III Mgmt. Corp. PMR Companies The Community Builders, Inc. Wilkinson Asset Management Silver Investors ($.50-$.99 per unit) Andover Management Corp./ In Good Company Friedman Management James Management Group, LLC Justus Rental Properties, Inc. Ken Bonner Magna Properties, Inc. Pedcor Management Corporation Regency Windsor Management Inc. Bronze Investors (up to $.50 per unit) June Palms Home Leasing LLC Meridian Management Corp. Montford Multifamily NRP Management, LLC Pedcor Homes Corp. PMR Companies RealAmerica Management, LLC TWG Management Weiss Entities Booster Club (Associate Member Investors) A2 Windows & Doors LLC AC/C Tech ACI, Inc. Alert Canine Bed Bug Detection Agency AmberLeaf Cabinetry American Lung Association in Indiana ap Inspections & environmental services Apex Paving and Excavating, Inc. Ardizzone Enterprises, Inc. AT&T Connected Communities Blakely’s Bone Dry Roofing Carpetbaggers, Inc. Carter Lumber CBRE CCI Roofing, LLC Clark Appliance ComerNowling CORT CRG Residential CSI Signs Diamond Rentals Drexel Interiors Elbert Construction ePremium Insurance Falcon Carpet of Indiana, Inc. Frye Electric, Inc. Full Care of Indianapolis Gold Seal Termite & Pest Control Co. HFF ICOR International Indiana’s Finest Wrecker Indiana Quadel Consulting Indy Towing Service Inc d/b/a Pro Tow Jahnke Painting, Inc. Jetz Service Company, Inc. Kermans Fine Flooring Kinder Electric Co, Inc. Last Chance Wrecker & Sales, Inc. LeaseHawk Lewis Chester Associates Marsh, Inc. Moen, Inc. National Tenant Network - Indiana NWP Services Corporation PayLease PHD Carpet & Janitorial Service, Inc. P/R Mortgage & Investment Corp. Property Tax Consultants LLC Quantum Graphix, LLC Renovia Restor Rite Rug Company Roto Rooter Plumbing, Inc. RSQ Fire Protection ShowerStart Sims-Lohman Sullivan Commercial Supply T.A. Kaiser Heating & Air, Inc. The Brickman Group Ltd. Thermo-Scan Water Leak Detection Thompson Thrift Construction Tikijian Associates University Loft Company Uzelac & Associates, Inc. Van Rooy Restoration VMintegrated W&M Construction Services Young Environmental Solutions, Inc. *As of November 15, 2014 www.iaaonline.net Connect with NAA Brad Williams 2014 Chairman Don’t Miss Your Chance to Glimpse the Future at the 2015 NAA Student Housing Conference & Exposition Ever wished you could divine the future? Well, we can’t make any promises, but we can say that your best opportunity to see the future of the student housing market for the class of 2020 will be at the 2015 NAA Student Housing Conference & Exposition, February 17-18, 2015, at the ARIA Resort in Las Vegas. Register today at http://shce-naa.naahq. org/registration-information and join us on Wednesday for the Keynote Panel: Student Housing Market Watch, led by developers, investors, owners and architects who will dust off their crystal balls and -prepare the tea leaves for what promises to be an intriguing discussion concerning their visions of student housing five years on the horizon. Join panelists William Lewittes, Director, Kayne Anderson Real Estate Advisors; Sean Studzinski, Principal, KSQ Architects, PC; Susan Folckemer, CPM, Chief Development Officer, The Preiss Company; Fred Pierce, CEO, Peirce Education Properties; and Taylor Gunn, Research Analyst, Axiometrics Inc. as they prepare to you to meet the challenges and opportunities of the evolving student housing market. For a limited time, save $275 on the cost of registration. To sweeten the deal, groups of five or more can save an additional $75 each by registering together. High-caliber sessions, unparalleled networking opportunities and the latest technology await you in Las Vegas. Visit http://shce-naa.naahq.org to register, view the schedule and read the latest announcements. Connect, Learn and Grow With the 2015 NAA Education Conference & Exposition Game Changers Game Changers: They’ve influenced the world and changed the way you do business. Now they’re all gathered under one roof—the 2015 NAA Education Conference & Exposition, June 24-27, 2015, in Las Vegas—to share their experience, knowledge and revolutionary spirit. winning photographer Platon, who brings his photos to life as he shares with audiences the inspiring stories behind the photos. The nation’s largest gathering of apartment industry advocates will convene on March 17 – 18 in Washington, D.C. In keeping with the theme, “One Industry. One Voice,” the Capitol Conference will provide a full day of training to prepare advocates to represent the industry effectively and speak with one voice – whether you’re a first timer or a tested veteran. In addition to guest speakers, participants will be offered more educational sessions than ever before so you can put into practice what you’ve learned during Lobby Day on Capitol Hill. The NAASpring Governance Meeting will precede the NAACapitol Conference on March 15-16. Registration is now open at www.naahq.org/capitol. Find Out How You Measure Up With NAA’s Survey of Operating Income & Expenses and Individual Market Data Just in time for budget season, results of the 26th annual NAA Survey of Operating Income and Expenses in Rental Apartment Communities are now available. Read the Executive Summary (www.naahq.org/sites/default/files/naadocuments/income-expenses-survey/2014-Income-Expenses-Summary. pdf) and visit www.naahq.org/learn/income-and-expenses-survey/2014survey for a full survey report and individual market data. The report presents data from garden and mid-rise/high-rise properties, and is further segmented by individually metered and master-metered utilities. Survey data is presented in three forms: Dollars per unit, dollars per square foot of rentable area and as a percentage of gross potential rent (GPR). The survey includes an executive summary, detailed data, reports and charts about rental communities. A total of 3,698 properties containing 966,296 units are represented in this year’s report. Data was reported for 3,366 market-rent properties containing 906,562 units and 332 subsidized properties containing 59,734 units. Data for the 2014 survey is based on data for fiscal year 2013. To order your copy of the survey, contact NAA’s David Edwards at [email protected]. Don’t miss a moment of wisdom from a suite of six world-class experts, from Robin Chase, Founder and former CEO of Zipcar, Buzzcar and GoLoco to Richard Karlgaard, Wall Street Journal Bestselling Author and Publisher of Forbes Magazine. Visit http://educonf.naahq.org/learn/game-changer-speakers to read all about NAA’s Game Changers. Make the decision to Connect, Learn and Grow by registering for multifamily housing’s largest, most important event of the year: The 2015 NAA Education Conference & Exposition, at http://educonf.naahq.org/attend/register. Guess Who’s Coming to the 2015 NAA Capitol Conference? Former NBC Meet the Press host David Gregory will provide a unique rundown of the hot-button topics that will most affect 2016’s potential presidential playing field as keynote speaker at the 2015 NAA Capitol Conference. Gregory will be joined by kick-off speaker, the award- 8 INSites November/December 2014 www.iaaonline.net www.iaaonline.net November/December 2014 INSites 9 MEMBER Q&A Casey Johnson 2014 Leasing Consultant of the Year Casey Johnson How did you get started in the multifamily industry? I had a friend who really enjoyed it and turned me on to the industry. With a very competitive nature I thought this would be the perfect avenue for me to take. Also, choosing a new place to live has always been exciting to me. I wanted to be involved with the excitement others experienced as well. Tell us about your first job. Though some may not consider this a “job,” I was a varsity diver for Indiana University Collegiate Diving Team and trained more than six hours every single day while tackling a full course load. Being a dedicated collegiate athlete really allowed me to hone in on my competitive characteristics. Diving for one of, if not the most prestigious/successful programs in the country, I learned how to work hard and provide results, POSITIVE results. This also taught me how to not only use whatever cards I am dealt, but use them to my advantage. Have you had any specific mentors or role models in the industry? The property manager (Lisa Watson) that I currently work under has been one of the most insightful individuals I have ever worked with. She has more knowledge for this industry than anyone I know. Her professional skills and extensive knowledge has really given me an upper hand in learning the ins and outs of the multifamily industry. She really has given me everything I need to move forward with a career in this industry. The best part is, there is always something else to learn from her. What had you accomplished at the property that made you most proud last year? Leasing up a rather large start-up property to 100 percent, especially in a competitive college town was a feat in itself, but I think learning so much in so little time and being able to apply everything learned was the most exciting for me. The most challenging/rewarding achievement was successfully leasing the property to nearly 100% before we were even able to show people the actual property (because it was being built). What was your reaction to earning the award? When I heard my name called as the recipient of the award, my mind went blank...it was like I forgot my name. I was so excited to be the recipient of such a great award. It really validates all the hard work put in over the past year. I began to think of the people that nominated me and helped me get to where I am in this industry today. Tell us about some unique aspects of your property? The Collegiate on Patterson (Now The Dillon after a management change) is primarily student housing. We have a ton of great amenities geared towards college students. We have a computer center, study rooms, videogames, 24/7 fitness center, heated pool and hot tub, private shuttles, and the list goes on. We have 635 total bed spaces on the property. Our floor plans consist of 1 bedroom flats, 2 bedroom townhomes, 4 bedroom townhomes, 5 bedroom townhomes, and 5 bedroom houses. The property also took home an award for best design at the same Prodigy Awards dinner. What advice do you have for other leasing consultants? This is such a rewarding industry. If you put in the time, effort, and hard work, you will show positive results. Being confident is another characteristic needed for success in this industry. If you are not confident in yourself, or in the property you are working with, there will be nothing harder to operate/pitch to prospects. Sell yourself... then selling your property will be much easier! Know your market, your property, and your audience like the back of your hand. This makes for seamless delivery of information, which in turn will give off confidence/positive results. Last but not least HAVE FUN! As cliché as it sounds, enjoying what you are doing is key. If you are having a hard time coming into work because you are not enjoying it, search for some innovative ways to restructure your work day. Make a competition out of it...get your competitive nature going! What was your first IAA event? I attended a bus tour that went around to a lot of the properties in the area. This is when my eyes were opened to how important it is to know your market/competitors. It was fun and insightful to see how everyone operated at their home offices. I also hosted a fair housing event at our Clubhouse last month. Every time a get an email about an event I try and RSVP. Continuing education is crucial in an everchanging industry. What do you value most about the multifamily industry? I value the interaction more than anything. Whether it is residents, prospects, or my unrivaled coworkers, I learn something new every day. That makes coming to work even more exciting. I also value how every day is different. You never know what the next day will bring. It is a challenge to be able to adapt to all of the different challenges thrown in every day and that is what I enjoy. 10 INSites November/December 2014 www.iaaonline.net www.iaaonline.net November/December 2014 INSites 11 Election Season Ends, Work to Begin On Tuesday, November 4 voters headed to the polls to elect three statewide offices, members of the General Assembly, judges, and various municipal offices. While voter turnout was extremely low, those who did vote overwhelmingly supported Republican candidates for statewide and General Assembly offices. The state Auditor, Treasurer and Secretary of State offices were all awarded to female Republicans. Both the Indiana Senate and House entered election season with Republican super majorities and both chambers picked up additional seats. The Senate is now controlled by 40 Republicans to just 10 Democrats and the House Republicans now hold 71 of the 100 seats. Despite losses for Democrats in both chambers, caucus members promise to work together on issues where there is common ground and to serve as a small but mighty voice on issues where there is disagreement. Two members in the House have already announced their intentions to resign their seats meaning that a caucus of precinct committee persons in those districts will chose their successors in December. With election season over, lawmakers have been sworn into office and are shifting focus to the upcoming legislative session which is scheduled to begin on Tuesday, January 6. The upcoming long session must adjourn not later than April 29 and while the only real obligation is to adopt a biannual budget for the state, hundreds of bills focusing on various other issues will also be filed for consideration. Focus appears to be shifting away from tax issues which have dominated recent legislative sessions to that of education funding and specifically the school funding formula. House Speaker Brian Bosma has said he does not anticipate large-scale tax reform this session and instead focuses the caucus agenda on education funding, the budget generally, ethics and public safety. that are charging an exorbitant fee for registering the same units year after year. IAA will work to ensure private property owners are not forced into voluntary government programs and will potentially seek clarification on existing statutes surrounding the review of local ordinances. IAA staff have already been approached by several legislators and groups interested in exploring a variety of issues such as trespassing, liens on properties after residents fail to pay utility bills and performance bonds. IAA staff will be on-hand throughout the long session ensuring our membership’s voice is heard and advocating on behalf of the industry. Filed bills will not become public until after the start of the legislative session and will be highlighted in the weekly legislative report. If you do not receive this important report, please contact Gretchen White ([email protected]). Legislative Update Also with the start of 2015 just around the corner it is important to carefully check bills mailed to the properties. Aside from properties in West Lafayette, Bloomington and Goshen, registration fees should be reduced to $5 per property annually and those properties in areas with inspection programs should submit qualified thirdparty inspection reports to avoid a governmental inspection as well as fees associated with such programs. There have also been several communities raising their storm water user fees and sanitary district fees in recent months. Please contact IAA if there is a new or drastically increased fee being billed to the property, especially if there this is a per unit fee associated with apartments. There are statutory obligations and parameters municipalities must follow when creating or increasing utility fees. From the multifamily standpoint, the City of Hammond claims they are exempt from legislation adopted last session. This matter is currently in court and depending on the judge’s decision there may need to be some tweaks made to the state statute to ensure their $80 per unit annual registration fee does not continue as the legislative intent was to prevent programs like Hammonds www.iaaonline.net November/December 2014 INSites 13 2014 convention recap Members Future Proof Profitability Although the Vegas theme lends itself to gambling, it’s clear that IAA members are not gambling with their future. More than 1500 members from Indiana and beyond gathered to gain knowledge and inspiration, network with other industry professionals, and visit with more than 180 exhibitors on the trade show floor. As Convention Chair, Cindy Green of HI Management worked with a fantastic committee to promote the conference and ensure that members found valuable programming to boost their knowledge and expertise to improve their bottom line. Focusing on education with speakers and seminars, the conference allowed attendees to return to their properties with new ideas and enhanced knowledge. With 27 breakout sessions, specific tracks met individual needs for leasing, property management, regional supervisors, senior housing maintenance, marketing, technology, student housings. Fourteen national speakers rounded out the opportunities to learn with their wide array of expertise. The educational focus included tracks for Leasing, Property Management, Regional Property Supervisors, Marketing and Technology and programs specifically for Maintenance, Senior Housing, Student Housing, and Affordable Housing. Individuals continued to share ideas and resources from the sessions, connect with other members and broaden the conference discussion through Twitter using #iaacon14. Austin Philip, leasing consultant with Overlook at Valley Ridge won an iPad mini sponsored by One Call Now through the “Tweet & Win” contest. Courtney Smith, marketing director with Barrett & Stokely, Inc. won a Kindle sponsored by Apartments.com in the same contest. Convention Chair, Cindy Green led the processional to the grand opening of the trade show floor where more than local and national vendors had more than 180 booths promoting the latest in services and products for the multifamily industry. Hourly door prizes donated by the exhibitors were given away to the attendees enhancing the show even further. Daily prizes of $250 were also given as well as a grand prize of $1,000 on the second day of the show. The lucky daily prize winners were Michele Glaze, Assistant Property Manager for Wentworth at West Clay and Liz DeMao, Property Manger at Carriage House Richmond. Julia Young, Property Manager for Flaherty & Collins Properties won the Grand Prize. The IAA Midwest Multifamily Conference concluded with the Prodigy Awards Dinner recognizing industry-wide efforts and accomplishments from the past year. Individual Awards are given to the future leaders of the apartment industry. These Awards of Excellence winners are featured on pages 16 and 17. On Wednesday, keynote speaker, Scott Ginsberg inspired members with his unique and energetic view of approachability and the importance of face-to-face communications. The next day, keynote speaker Curtis Zimmerman had audience emotions on a roll as he inspired them to change perspective and reach their full potential. “For one week,” Zimmerman said, “When someone asks how you are, reply with ‘Livin’ the dream.” In addition to the individual awards, 34 Prodigy awards were presented to the management companies/communities for their outstanding efforts within their company. These winners are listed on page 18. As Conference Chair, Cindy Green of HI Management welcomed members at the opening session. Buckingham Companies embraced the Vegas theme. Gavin Greene, Regional Property Manager with Flaherty & Collins embraces the spirit of the opening session. Members of the Convention Committee helped prepare prior to the conference. Barret & Stockley team members were ready for the opening session. During MESH Carl Kuzdal, Maintenance Supervisor of Presidential Estates won tickets for a Colts game from Indy Pro Tow. In addition to the two keynote, 25 educational sessions offered learning opportunities for all areas. More than 1500 members in the multifamily industry visited the trade show floor. 14 INSites November/December 2014 The 2015 IAA Midwest Multifamily Conference is scheduled for September 16-17. Be sure to mark your calendar and begin making plans to attend in 2015. www.iaaonline.net 2014 convention recap #IAAcon14 Volunteer of the Year, Gavin Greene at the Prodigy Awards Dinner. Julia Young, Regional Property Manager with Flaherty & Collins Properties was the grand prize winner. Leah Leor, of Aloft Circus Arts entertained the Prodigy Awards Dinner crowd with a silks performance. IAA instructs more than 3,000 individuals in educational seminars every year including seminars at the Midwest Multifamily Conference. Liz DeMao, Property Manager at Carriage House Richmond was one of the daily prize winners. The For Rent team exudes the energy of the trade show floor. The Sheehan Property Managment team celebrated a Prodigy Award for Overal Curb Appeal at The Masters. Philip Austin, Leasing Consultant at Overlook at Valley Ridge (@philupaustin) won the iPad mini sponsored by @OneCallNow. Ready for the Opening Session. Courtney Smith, Marketing Director of Barrett & Stokely, Inc. (@gingcourt) won the Kindle sponsored by @apartmentscom. The Flaherty & Collins team takes their voting seriously. Mayra Cortez and Jackie Alvarenga from Flaherty & Collins. www.iaaonline.net November/December 2014 INSites 15 2014 convention recap Management Company of the Year The Sterling Group Gene B. Glick Spirit of Giving Award Gene B. Glick Company Management Company of the Year J.C. Hart Company, Inc. Joe Rhodes Memorial Award Michael F. Petrie, P/R Mortgage & Investment Corp. Mike has been called a multifamily man. His personal traits make him a unique leader. Michael F. Petrie, Joe Rhodes Memorial He is an entrepreneur, a smallAward. businessman, a policy wonk, a political junkie and a practical businessman with a very pronounced work ethic. He is a 1979 graduate of Indiana University’s School of Business with a major in finance. He received his MBA in 1983 from Indiana University. In 1999 he earned his Certified Mortgage Banker Designation (CMB) and in 2004 received the Accredited Mortgage Professional Designation (AMP). Donald J. Williams Volunteer of the Year Award Gavin Greene, Flaherty & Collins You can find Gavin contributing great ideas on committees such as golf, convention and fun and volunteering time as emcee for many IAA events. If there’s a mic, he is most likely on it. He has also dedicated much of his time to the young professionals Gavin Greene, Volunteer of in multifamily group. Not only by getting the Year Award. the young crowd to the YPM events, but by inspiring enthusiasm within the younger generation coming into the multifamily industry. His energy and support he shows for the association promotes other young professionals in multifamily to do the same. He achieved the dream of owning his own business in August 1990 when he created a firm to originate and service multifamily rental and healthcare housing loans through agency programs. His company has originated more than $6 billion in multifamily loans and currently serves $3.5 billion loans. Grace McFadden Manager of the Year Alycen Williams, Edward Rose & Sons Alycen epitomizes the ideal leader. She is committed to training and mentoring her staff and consistently delivers a high level of customer service. There is nothing she would ask of her team that she herself would not do. Alycen is a true role model for her team and her peers and is described by both as an inspiration. She never loses focus on the financial goals of her property and is constantly thinking of ways to improve her performance as well as that of her team. She has tremendous pride in the accuracy of her work, the satisfaction of her residents, the success of her team and the overall success of the company. He currently serves on the on the boards of the Indiana Association of Community and Economic Development, the Community Investment Fund of Indiana, the Archdiocese of Indianapolis Catholic Charities, Inc. and Progress House. He is also President of Affordable Midwest Housing Corp, a 501-C-3 affordable housing provider. Victoria Schuman, Individual Vendor Member of the Year. Individual Vendor Member of the Year Victoria Schuman, Hays + Sons Victoria goes above and beyond every task she takes on. She provides an unmatched level of customer service and completely understands the importance of relationship building with all members in our industry. When called with an issue she is quick on her feet, has a rapid response and finds the best solution for the problem. She is extremely motivated with a strong work ethic and is personable and driven. 16 INSites November/December 2014 Alycen Williams, Grace McFadden Manager of the Year. Casey Johnson, Leasing Consultant of the Year. Leasing Consultant of the Year Casey Johnson - Trinitas Ventures Casey provides exceptional service whether at work or off the clock. He shines with customer service skills that have no boundaries and provides consistent results. www.iaaonline.net 2014 convention recap 2014 Awards of Excellence He also participates on IAA committees, helped planning for the IAA property tour, maintains an accurate and in-depth knowledge of all aspects of the market and community, oversees the social media campaigns, assists in training, and develops on-going relationships with area businesses and university contacts. Chris Hankins, Maintenance Technician of the Year. Maintenance Technician of the Year Chris Hankins - J C Hart Company, Inc. Chris has the outstanding qualities sought in a maintenance professional. He continually increases his knowledge through educational courses and he has a great comprehension of HVAC, plumbing and electrical. He understands what it takes to be successful and to provide residents with the best possible service. He also continually reflects a positive attitude and he truly cares about the residents. Alberto Covarrubias Maintenance Supervisor of the Year Eric Kratochvil, In Good Company From a professional standpoint it seems there is nothing Eric cannot or will not take on and it is virtually impossible to find something he doesn’t know how to solve, or something he hasn’t completed precisely. When it comes to time management, he is Eric Kratochvil, Alberto very efficient. Eric’s attitude is positive and Covarrubias Maintenance Supervisor of the Year. he understands his attitude trickles down to the employees he oversees. There is rarely a crisis and his preventative maintenance mentality has a positive impact on his community. Assistant Manager of the Year Lesley Baumann, Van Rooy Properties Lesley cares deeply about the community and her residents. With Section 8 and Section 42 record keeping always a challenge, she makes compliance look effortless and uncomplicated. Any task can be given to her without hesitation and she completes it with ease. She is always Lesley Baumann, Assistant willing to help out other properties when Manager of the Year. needed. Lesley is an asset to the company and considered a great benefit for her property. Every decision she makes regarding the property benefits the residents. Rick Stapp Regional Supervisor of the Year Alma Slash, Flaherty & Collins What sets Alma apart is that she understands it is not just about the numbers, the assets and the occupancy rate. She cares deeply that this industry is about people’s lives, their homes and their community. She finds ways to constantly improve conditions Alma Slash, Rick Stapp Regional Supervisor of the Year. to make all those things better. Alma’s leadership has changed over many years of management. She has worked incredibly hard with two mayors, countless city leaders and city council members and a number of non-profit organizations of Indianapolis and the Far East side, to take back her community and make it a safe haven for all. www.iaaonline.net November/December 2014 INSites 17 2014 convention recap 2014 Prodigy Award Winners Becovic Management Group The Preserve at Willow Springs Brochure, Less than 200 units J.C. Hart Company City Flats at Renwick Floor Plans over 1100 sq ft, 1-10 years in age Edward Rose & Sons Latitudes Overall Amenities, 11+ years in age Flaherty & Collins Properties Axis Brochure, More than 200 units Van Rooy Properties Buckingham & Balmoral Floor Plans over 1100 sq ft, 11+ years in age Flaherty & Collins Properties The Residences at Keystone Color Advertisement, Less than 200 units Edward Rose & Sons Bella Vista Floor Plans Under 800 sq ft, 1-10 years in age Buckingham Management LLC Ironworks at Keystone Overall Community Marketing Program, Less than 200 units Flaherty & Collins Properties Axis Color Advertisement, More than 200 units StoneCreek Communities Washington Quarters Floor Plans Under 800 sq ft, 11+ years in age Buckingham Management LLC Residences at CityWay Community Corporate Suite Program Milhaus Management Artistry Overall Community Marketing Program, More than 200 units J.C. Hart Company Stonebridge Overall Curb Appeal, 1-10 years in age Sheehan Property Management The Masters Overall Curb Appeal, 11+ years in age Milhaus Management Artistry Community Green Initiative Program Gene B. Glick Co., Inc. Arden Woods Apartment Designed for the Physically Challenged Buckingham Management LLC Residences at CityWay Community Online Marketing Core Redevelopment Stadium Lofts Community Resident Retention Program Gene B. Glick Co., Inc. Carriage House of Muncie Apartment Community Designed for Project Based Rent Subsidy Van Rooy Properties Company-Wide Employee Relations Program Van Rooy Properties Westminster Renovated Units Flaherty & Collins Properties Corporate Online Marketing Olympus Properties The Mercury Decorated Model, Less than 200 units NTS Development Lake Clearwater Decorated Model, More than 200 units Barrett & Stokely, Inc. Overlook at Valley Ridge Floor Plans 801-1100 sq ft, 1-10 years in age J.C. Hart Company North Haven of Carmel Floor Plans 801-1100 sq ft, 11+ years in age 18 INSites November/December 2014 Flaherty & Collins Properties Vision 1505 Industry-Related Innovation J.C. Hart Company Union Street Flats at Grand Junction Leasing/Clubhouse Office, 1-10 years in age Edward Rose & Sons Sundance Leasing/Clubhouse Office, 11+ years in age Gene B. Glick Co., Inc. Archer’s Pointe Maintenance Shop Barrett & Stokely, Inc. Brockton Renovated Common Area Trinitas Ventures The Collegiate on Patterson Apartment Community Designed for Student Housing Mark III Management Irvington Lofts Apartment Community Designed for Tax Credit Affordable housing Monarch Management Foxfire at Valley Lakes Overall Amenities, 1-10 years in age www.iaaonline.net 2014 convention recap www.iaaonline.net November/December 2014 INSites 19 2014 convention recap Photos From the Trade Show Floor Chukie Nwokorie, Brent Krieg, Joe Gruszczynski and Alicia Kane McCracken from Harding Group. Brad Applegate and Jami Huffman of JETZ. Convention Committee Chair, Cindy Green presents OPC Services with thier award for Best Overall Single Booth. Cory Kovach, Jim Ziminski and Colby McCorkel of Moen, Inc. David Kantor of WastePoint. David Wenz, Cuc Majors and Ron Woody of Ardizzone Enterprises. Elaine Westell of Bath Fitter accepts the award for Most Creative Use of Product from Convention Chair, Cindy Green. Elia Levin of Gold Seal Termite & Pest Control. Hays + Sons had some fun with the Vegas theme. Mark Schmidt of Indiana’s Finest Wrecker took the casino dealer role seriously. James Mischell and John Gruen of Indy Coin Laundry joined by Tessa Braun and Tami Stertmeyer of Hills Property Management. Jim Coffman and Lance Horine of Baumgartner & Company Asphalt Services. JR Knight, Kyle Leis, Brock Roberts, Cheryl Hunt of eye4 group, one of many new members who joined IAA in 2014. Casey Corbett, Leah DelRosario and Randy McKnight from Signature Supply. L B Gray was recognized for their Best Use of Theme. Spencer Brown and Aaron Craige of Pfister Faucets. Meghann Vamvas, Devon Bagwell and Jake Holt with First Call Claims. Cindy Green presents Kim Lendway and Penny Warner of Valet Waste with the award for Best Overall Large Booth. Pam Craig, Paul Fox, Patti Schmidt and Cyndi King of Indy Pro Tow. The busy trade show floor. 20 INSites November/December 2014 www.iaaonline.net Rehabilitated Property: Real Estate Tax Deductions You May Be Missing As the torrid pace of the urban apartment building boom begins to show signs of easing, another facet of the industry appears to be gaining ground. This new trend involves the purchase of middlemarket or “Class B” suburban properties.1 As “older” assets, such properties sometimes require varying degrees of rehabilitation. However, the “value add” of the rehabilitation often results in added value to a property’s real estate tax assessment. Fortunately, the Indiana Code provides for Multi-Family Rehabilitation Deductions in, primarily, two statutes, Indiana Code Sections 6-1.1-12-18 and 6-1.1-1222.2 An application for rehabilitation deduction can be made under either statute, but not both. It can be difficult to determine if an increase in a real estate tax assessment is due to rehabilitation or other market factors. Per the Indiana Code, when real property is reassessed because it has been rehabilitated, the assessing official who makes the reassessment must give the owner notice. Unfortunately, this rarely happens. One clue that an increase in assessment may be related to a recent rehabilitation can be found by reviewing the property record cards of the property from before and after the renovations. If adjustments were made to the grade or Indiana Code Section 6-1.1-12-18 applies exclusively Kathryn Merritt-Thrasher condition of the property, this at least suggests an increase was to rehabilitated residential property. To be eligible for a due to the rehabilitation. Moreover, changes in the “effective rehabilitation deduction under this Code Section, the preage” and obsolescence factors shown on the property record renovation assessed value of the improvements for a property cards from pre to post rehabilitation can be evidence of an with three or more dwelling units (excluding any exemptions assessment having been increased due to rehabilitation. or deductions) must not have exceeded $18,720 per unit. If the property meets this first test, it must then meet a second one. Owners and managers of recently renovated multi-family The property’s assessment must have increased as a result of properties should closely monitor post rehabilitation the “rehabilitation” (as opposed to, for example, county wide assessments to ensure, if and when the assessment increases, market factors). “Rehabilitation” includes significant repairs, a timely rehabilitation deduction application is filed. replacements, or improvements to an existing structure which are intended to increase the livability, utility, safety or value of Megan Anthony the property. If a property’s assessment increases because of rehabilitation, the owner may deduct from the new assessed value, the lesser of (1) the total increase in assessed value resulting from the rehabilitation, or Facebook (2) $18,720 per rehabilitated unit. This deduction can be taken annually for www.facebook.com/ a five-year period. General reassessments and county reassessments which IndianaApartmentAssociation occur in this five-year period do not affect the amount of the deduction. If notice of the increase in assessed value is not given to the property owner before December 1st of a given year, the application may be filed up to thirty Fan Page Members days after the date such a notice is mailed to the property owner. If the property meets all three criteria, the owner is entitled to a deduction equal to 50% of the increase in the improvement’s assessment. However, the annual maximum deduction that can be taken, for anything other than a single family dwelling, is $300,000. Unlike the deductions available under 61.1-12-18, deductions under this statue only apply to increases in the property’s improvements, not the land. This deduction may be taken annually for a five year period and general reassessments and county reassessments which occur in this five-year period do not affect the amount of the deduction. As with the 6-1.1-12-18 deduction, if notice of the increase in assessed value is not given to the property owner before December 1st of a given year, an application may be filed up to thirty days after the date such a notice is mailed to the property owner. Legally... CONNECT WITH IAA Indiana Code Section 6-1.1-12-22 is a broader statute which allows for rehabilitation deductions for all real property (not just multi-family communities) provided the improvements are at least 50 years old before the date the application for deduction is filed. If the property meets the age test, the property owner must have also paid at least $10,000 for the rehabilitation. If this is the case, it must then, finally, be ascertained whether the real property assessment increased directly because of the rehabilitation. Again, “rehabilitation” includes significant repairs, replacements, or improvements to an existing structure which are intended to increase the livability, utility, safety or value of the property. Speaking 945 Twitter www.twitter.com/aptassociation Followers 1487 LinkedIn www.linkedin.com/groups/ Indiana-Apartment-Association-3020589 Fan Page Members 537 he National Apartment Association, Units magazine, November 2014, Volume 38 Number 11 – Middle Market T Properties Take the Lead, p. 38. 2 Various rehabilitation deductions are also available for multi-family properties under Indiana Code Chapter 6-1.112.1; however, this article does not address these deductions. 1 www.iaaonline.net November/December 2014 INSites 21 Around the Apartment Association of Fort Wayne 2015-2016 AAFW Board of Directors Announced AAFW Members voted for their 2015- 2016 representatives on the Board of Directors at the Annual Meeting October 14. At the October 23 Board of Directors Meeting, our current Directors voted on the 2015 Executive Officers. Congratulations to all our candidates on their nomination as well as our reelected directors and elected 2015 Executive Officers: State Newly Elected Regular Member Representative: Jodie Pearson, Cambridge Square, Gene B Glick Co. (left to right) Chris Smith (Sears Commercial), Jodie Pearson (Cambridge Square) and Carole McConnell (Lake Forest Village). Regular Member Representative Re-Elected: Carole McConnell, Lake Forest Village, Jehl Properties, LLC Associate Member Representative Re-elected: Chris Smith, Sears Commercial Sales 2015 Executive Officers: President: Tammy Brandt, New Generation Management Vice-president: Carole McConnell, Lake Forest Village, Jehl Properties, LLC Secretary: Fred Gould, PGPM, INC. Treasurer: S herry Shaw, Montrose Square & Poplar Ridge, Chronister Properties Past President: C indy Bane, Gene B. Glick Company (Appointed Position) (left to right) Jodie Pearson (Cambridge Square) awarded 50-50 winnings to Kim Becker (Island Club). A special thank you goes out to Miriam Larmore, Teakwood Arms, who will be stepping off the Board of Directors at the end of 2014. Thank you for your dedication of time and talent. October Breakfast Connection Wrap-Up Dawn Cummings, METRO Executive Director, joined us as our special guest to give AAFW members an update on the complaint trends they are seeing, how their officers handle the investigation process, and how they can be better prepared if a claim is filed. Items donated by Members for Genesis Outreach. 22 INSites November/December 2014 Members also brought donations for Genesis Outreach, one of the Community Outreach Committees chosen charities for 2014. Hygiene items for their program are always in high demand, so the Community Outreach Committee decided to hold a drive to help them replenish their stock. The Committee also holds 50/50 drawings at each Breakfast Connection to help with their fundraising efforts. A HUGE thank you to all members who participate in drives or purchase 50/50 tickets! AAFW’s Upcoming Summit Celebration! Final Chance to complete a Summit Celebration Award Nomination form!!! The Summit Celebration is an annual awards banquet that honors excellence in the multi-family housing industry in northeast Indiana and dedication to the AAFW-NEI. Nominations are received and then sent off to other Apartment Associations that will judge each category and pick the winners. The awards will then be presented at the Summit Celebration on Saturday, February 21, 2015. It’s not too late to nominate a coworker that does a fantastic job or a vendor that has given you superb service. You can download the nomination forms at www.aafw.org or call the office for a copy. Nominations are FREE to submit and very easy to complete. All nominees will be recognized at the Summit Celebration. If you are interested in sponsoring the 2014 Summit Celebration, please contact the AAFW office for more information. Apartment Association of Southern Indiana Rental Registry On November 17, 2014, the Evansville City Council voted to approve Ordinance G-2014-29, which amends the existing rental registration program to include a $5 per property annual fee and will result in an online registration process handled by the Building Commissioner’s office. The registration period will begin in March and must be completed by May 10 each year. Details of the proposal are as follows: • Updates language to mirror state statute regarding the $5 per property fee and the requirement that fees are held in a separate fund; • Changes the registration period to March 11-May 10; • Control of the program is now given to the Building Commissioner’s Office instead of the Clerk’s office; • Limits the fee to $5 per property, up to a maximum of $100 per year; • Adds a requirement that the registration requires the property tax codes associated with each property; and • Adds that a person who fraudulently files or falsely registers a property to be subject to a $1000 fine per violation. Reverse Trade Show The Apartment Association of Southern Indiana (AASI) held its Reverse Trade Show on November 20, 2014, at the Hilton Garden Inn in Evansville. Nine associate members were given five minutes to provide information regarding the products and services to each of our Regular members of AASI who were in attendance. The vendors www.iaaonline.net included Action Pest Control, Apartment Finder/Maximum Media, Apartment Guide, GreenWay Waste & Recycling, H.A. Lewis, HSC Pavement, Jetz Service, PHN Solutions, and Sherwin Williams. Thank you to The Apartment Association of Southern Indiana (AASI) Reverse Trade Show. our associate and regular members who attended this year’s Reverse Trade Show; we look forward to doing it again with you next year! The NIAC Holiday Party and Charity Fundraiser was held on December 9. This year’s charity was “The Caring Place.” The evening included music, food, prizes and fun for all. Holiday Party AASI hosted its annual Holiday Party on December 10 at the Acropolis Restaurant. NIAC’s 2015 schedule of events is now posted on the website at www.niacweb.org. Northern Indiana Apartment Council Northern Indiana Apartment Council Vendor Appreciation Night www.iaaonline.net NIAC held a Vendor Appreciation Night on November 19. This evening is a token of appreciation to the vendor members that support the organization throughout the year. The Induction Ceremony to install the NIAC Board of Directors will be held January 13. NIAC welcomes new board member, Joseph Johnson from Trillium Properties. Around the State Tippecanoe Apartment Association TAA wraps up the year with the Annual Holiday Luncheon at The Trails Banquet Hall. As always, they will be collecting toys to donate to Tippecanoe County Social Services. This year will feature national speaker Randy Fox, and the 2015 Board of Directors elections will be held. We are looking forward to an exciting year packed with new educational opportunities for both leasing and maintenance, and the continuation of our new afterhour’s event – The Stir. November/December 2014 INSites 23 Bridgewater Apartments capitalizes on trend toward “renter’s by choice” The Justus Family of Companies is proud to announce the grand opening of The Bridgewater Apartments. The brand new $25 million luxury apartment community is located within the larger Bridgewater master-planned community; a 750-acre upscale residential golf course community in the Carmel/Westfield area. Justus Family of Companies president Walt Justus stated, “The Bridgewater apartments were specifically designed for today’s ‘renter by choice’ - those who choose the convenience of renting over home buying. According to the recent Indiana Apartment Market Overview presented by Tikijan Associates; many people from Millennials (the estimated 80 million children of Baby Boomers) to Boomers (over 70 million), are choosing to rent rather than buy based upon their desire for flexibility, mobility, and freedom from the demands of home ownership. Member News Bridgewater Apartment Homes Tikijian Associates Completes Sale of Bridgewater Clubhouse Value Add Property on Indy’s Southwest Side Tikijian Associates announces the sale of Decatur Woods Apartments located in Indianapolis. Decatur Woods is a 180-unit garden style apartment community on Indianapolis’ suburban southwest side. The property is located very close to the Indianapolis International Airport and AmeriPlex. While the property was well maintained by the long term Decatur Woods previous owner, Chicago based JVM Realty, the acquisition of Decatur Woods represented a significant value add opportunity for the buyer. The buyer, The Ardizzone Group, plans to rename the property Aspen Pointe and has a multimillion dollar renovation planned. Tikijian Associates Completes Sale of 152 Units in Indianapolis Tikijian Associates announces the sale of a 152-unit apartment community located in Indianapolis, Teal Run Apartments. Teal Run is a garden style apartment community located on Indianapolis’ suburban east side. The property is well maintained and had benefitted from stable, long term ownership. The seller, Chicago based JVM Realty, had owned Teal Run since 2001. The buyer was an Ohio-based real estate investment company whose holdings include other multifamily properties in Indiana and Ohio. The new owner plans to make extensive renovations at Teal Run. Cincinnati based Towne Properties will serve as manager for the new owner. Teal Run Tikijian Associates Sells 208-Unit English Village Apartments Located on the Southeast Side of Indianapolis Tikijian Associates announces English Village the sale of English Village Apartments, a 208-unit apartment community located in Indianapolis. Built in 1987, English Village is located just inside Interstate 465 about fifteen minutes southeast of the downtown CBD. The community is in excellent physical condition and has a history of high occupancy. Tikijian Associates represented the seller, a privately held real estate investment firm based in New York. The buyer was an affiliate of Birge & Held Asset Management LLC, a growing Indianapolis-based private equity and property management firm. Since its founding in 2008, the company has acquired and now owns and manages over $134,000,000 in multi-family assets across the country. The buyer plans to continue a program initiated by the seller of upgrading unit kitchens and baths and adding upscale flooring and appliances. The improvements and ongoing operations will be managed by Birge & Held Asset Management LLC. 24 INSites November/December 2014 www.iaaonline.net www.iaaonline.net November/December 2014 INSites 25 january 13 22 Qualities of a Successful Leader CFC/EPA Certification Testing 9 a.m. – Noon 8 a.m. – 3 p.m. Indianapolis September 16-17, 2015 Save the Date! Save the date for the 2015 Midwest Multifamily Conference, September 16-17, 2015. The Gene B. Glick Company Scholarship at the Indiana University Kelley School of Business This scholarship is available to two undergraduate students each year. Recipients must be admitted to the Kelley School of Business and currently enrolled in classes on either the Bloomington campus or at Indiana University-Purdue University Indianapolis. Selection will be based upon academic merit and financial need. Applications for the 2015-2016 scholarships are available at bit.ly/1b6sUEW. Application materials are due by January 31, 2015. Scholarship recipients will be notified by April 30, 2015. www.iaaonline.net February 10 C A.M. A – Management of Residential Issues 9 a.m. – 3:30 p.m. 18 Maintenance Roundtables 9 a.m. – Noon 19-20National Apartment Leasing Professional Course 9 a.m. – 5 p.m. 24 C A.M. B – Legal Responsibilities 9 a.m. – 3:30 p.m. 25 Bowling for Rebuilding Lives 1:30 p.m. - 4:00p.m. March 4 New Member Orientation 3:30 p.m. – 5 p.m. 12 Maintenance Mania Kickoff 4 p.m. – 7 p.m. 17 C A.M. C – Human Resource Management 9 a.m. – 3:30 p.m. 19-20 National Apartment Leasing Professional Course 9 a.m. – 5 p.m. 31 C A.M. D – Fair Housing 9 a.m. – 3:30 p.m. Save the Dates! Upcoming Events Sign up online to register for all The 2015 Power Lunch series is a great opportunity for networking and building business connections. Watch for details on the educational and motivational presentations that will accompany each Power Lunch in 2015. events and classes at events.iaaonline.net Wednesday, April 8 Tuesday, August 11 Thursday, November 12 November/December 2014 INSites 27 How Much Did Fund Pay for Suburban Chicago Apartments? Digested From “Fund Pays $56 Million for Suburban Apartments” Crain’s Chicago Business (11/14/14) Gallun, Alby The Canyon Multifamily Impact Fund has paid $56 million for two apartment communities in Chicago’s western suburbs. The deal comes nearly a year after the fund acquired another pair of apartment communities near the Windy City. The latest transaction includes the 346-unit Eagle Creek in Westmont and the nearby Preserve at Carol Stream. The fund, a joint venture between Los Angeles-based Canyon Capital Realty Advisors and the community development arm of Citigroup, specializes in investing in affordable -- or workforce -- housing. In 2013, it bought a 662-unit property in Rolling Meadows and a 331-unit high-rise on Chicago’s South Side. With regards to this latest deal, Canyon Capital managing director Gerald Goldman states, “Canyon Capital Realty will focus on enhancing both properties through physical upgrades and the implementation of community services, focusing on education and healthcare that will enhance the quality of life for its residents.” Area apartment values have increased over the last several years amid aggressive bidding by investors, spurred on by such factors as low interest rates, high occupancies, and rising rents. - See more at: http://www. naahq.org/read/industry-insider/11-18-2014#sthash.0NkAskJV.dpuf National Focus Why San Diego Apts. Are Good for Investors, Bad for Residents Digested From “San Diego Apartments Good for Investors, Hard on Renters” San Diego Daily Transcript (11/14/14) Biberman, Thor Kamban The CoStar Group reports that San Diego ranks as one of the strongest apartment sectors in the country in terms of investments, along with still-high rents and declining vacancies. In its third quarter survey of more than 10,500 area communities with at least five apartments, CoStar found 5,784 unit vacancies. That translates to just a 2.7 percent vacancy rate. “San Diego’s is very low compared to the rest of the U.S.,” states Tom Rudowicz, a CoStar sales director. Except for a slight uptick earlier in 2014, the county’s vacancy rate has been moving downward since about 5.6 percent in the summer of 2009. Asking rents at the end of the quarter in San Diego averaged $1,035 a month for a studio apartment; $1,205 per month for a one-bedroom rental unit; $1,492 for a two-bedroom unit; and, finally, $1,782 per month for a threebedroom apartment. CoStar tracked 293 apartment communities changing hands since Jan. 1, accounting for a sales volume of $1.28 billion -- figures that exclude bulk or portfolio sales. Additionally, capitalization rates have continued to decline as apartment demand exceeds supply. While REITs, along with institutional and major private equity firms, receive most of the focus, CoStar researchers state that roughly 90 percent of apartment transactions with five or more rental units in San Diego involve individuals. Private equity firms represent the next largest group with 5 percent of the total, followed by public REITs (about 3 percent). Locally based R&V Management Co. acquired the most apartment communities in San Diego County as of Sept. 30. - See more at: http://www.naahq.org/read/industry-insider/11-182014#sthash.0NkAskJV.dpuf Crescent’s Mega-Multifamily Sale Includes Apts in What Three States? Digested From “Crescent’s $700M Multi-Family Portfolio Sale Includes Three New Triangle Apartment Communities” Commercial Property Executive (11/13/14) Pop, Adriana Crescent Communities has agreed to sell a portfolio of nine new apartment communities in three states -- Florida, Georgia, and North Carolina -- for a total of around $700 million. Three of these sites are located in North Carolina’s RaleighDurham Triangle region and are valued at around $250,000 per unit. The buyer is an unnamed private institutional investor that is also purchasing Crescent Dilworth in Charlotte and Crescent Howell Mill and Crescent Terminus in Atlanta. The buyer of the remaining three properties included in the portfolio sale is a fund advised by UBS Global Asset Management. Upon closing within the next year to 18 months, the entire sales agreement will rank as the biggest transaction to date of an apartment portfolio within Crescent’s markets in the Sunbelt and Mid-Atlantic regions. Brian Natwick, president of the Crescent Communities Multifamily Group, remarks, “This portfolio was more than four years in the making and entailed thoughtful, deliberate selections of location and design for each community. As demonstrated by this very successful transaction, investors recognize that our strategic investments in creating superior multifamily properties can provide significant long-term capital growth opportunities.” - See more at: http://www.naahq.org/read/industry-insider/11-182014#sthash.0NkAskJV.dpuf 28 INSites November/December 2014 Apartment Vacancy Reduction Crucial for Housing Cost Savings Digested From “With Rents Rising, Vacancy Reduction Crucial for Housing Cost Savings” Staffing Industry Analysts (11/12/14) Reis Inc.’s report on the apartment sector was a case of good news and bad news for frequent users of temporary housing. The good news was the U.S. apartmentvacancy rate inched up from 4.1 percent to 4.2 percent in the third quarter -- the first time this rate has climbed since 2009. Reis senior economist Ryan Severino expects the vacancy rate to continue drifting upward at a slow rate as supply increases, but will not top the 5 percent mark through at least 2018. Indeed, more apartments will be completed this year than have been since 1999. So, what’s the bad news? Despite the increased vacancies, rents are still on the rise particularly in such desirable real estate markets as San Francisco and Seattle. Reis researchers attribute this situation to the fact that new rental units are being priced higher than average and that rental rates are currently at all-time highs. In this environment, one of the most effective ways healthcare staffing agencies and other users of temporary housing can reduce their housing costs is by cutting their unexpected vacancy expenses. - See more at: http://www.naahq.org/read/industry-insider/11-18-2014#sthash.0NkAskJV.dpuf In What Major U.S. Downtown Is Allison Davis Planning New Apt. Tower? Digested From “Allison Davis Plans Downtown Apartment Tower” Crain’s Chicago Business (11/12/14) Maidenberg, Micah Developer Allison Davis is looking to gain a foothold in downtown Chicago’s apartment sector with his first high-rise proposal in years. Davis is banking that the rental housing market there will not cool off anytime soon. He is leading a venture to erect a 30-story apartment tower that will boast 225 rental units on Chicago Avenue between Cambridge and Cleveland avenues. This area of the Windy City has recently attracted a myriad of developers, who are betting the neighborhood is poised to transform from one dominated by public housing -- now mostly demolished -- into an extension of River North. The question for Davis and his many rivals is how long the rental apartment boom will last amid a supply surge expected to deliver a record 3,700 units in 2015 and as many as 5,000 the following year. More than 430 apartments are in various stages of planning and development mere steps from Davis’ proposed tower. “There seems to be an awful lot of apartment buildings going up,” states Peter Holsten, president of Chicago-based Holsten Real Estate Development Corp. “At some point, we’ll probably reach the saturation point. I just don’t know when that is.” - See more at: http://www.naahq.org/read/industryinsider/11-18-2014#sthash.0NkAskJV.dpuf When Housing for the Poor Is Remodeled as Luxury Apts Digested From “What Happens When Housing for the Poor Is Remodeled as Luxury Studios” Washington Post (11/12/14) Badger, Emily In a number of major cities, the shrinking pool of affordable housing is due more and more to a peculiar trend. Young professionals are moving in to occupy the same, very small units -- some as small as 250 square feet -- recently home to households living on less than $1,000 a month. What were once deteriorating structures have been remodeled and rebranded as “vintage.” The debate over these buildings captures a larger tension that is simultaneously playing out in parts of Chicago, Los Angeles, New York, and the District of Columbia. The new owners and residents moving in bring higher tax dollars, capital to revive the old buildings, and generate a market momentum that draws even more young professionals. Such benefits have come at a cost, however. Chicago, for example, is scrambling to save what amounts to 6,000 remaining “single room occupancy” (or SRO) units, a tiny fraction of what once existed in the city as a type of last-resort housing stock for the poor. City council members passed an ordinance last week aimed at safeguarding the buildings and their residents. Buidling developers and owners, though, contend that the new law will unfairly expect a few owners to take responsibility for Chicago’s shortage of affordable housing -- a problem far beyond their control. And in an unfortunate twist of geography, many of the remaining SROs in the Windy City happen to be located in lakefront neighborhoods on the North Side that are now highly coveted. Since 2011, developers have bought more than 2,000 low-income units there for conversion into high-end rental apartments. The properties may be crumbling on the inside, but are often beautiful from the street boasting art deco details. Housing advocates are concerned that as the poor are displaced, they will likely move to the south and west sides of Chicago where the city’s poverty is heavily concentrated. “That only further segregates an already segregated city,” says Mary Tarullo, a housing organizer with ONE Northside. - See more at: http://www.naahq.org/read/ industry-insider/11-18-2014#sthash.0NkAskJV.dpuf www.iaaonline.net 10 Quick and Easy Ways to Winterize Your Property This Season Digested From “10 Quick and Easy Ways to Winterize Your Property This Season” Property Management Insider (11/11/14) Blackwell, Tim National Ed Wolff, president of Leasing Desk Insurance, says apartment communities can minimize the potential for damage from frozen pipes and fire by taking some a series of 10 precautions when cold temperatures hit. One, caulk and weather-strip all windows and doors. Next, caulk all cracks and holes in exterior walls and foundation walls near water pipes. Third, be sure to shut off and cover outdoor water faucets. Fourth, allow indoor faucets to drip lukewarm water. The fifth rule of thumb is to open up bathroom and kitchen cabinets to allow heat to radiate around pipes. A sixth tip entails wrapping exposed outdoor pipes in insulated sleeves. Seventh, owners and managers should set thermostats in empty apartments to temperatures no less than 55 degrees. Next drain water systems in all unused areas. That’s followed by management staff informing residents to never use their ovens to heat their rental units. Finally, the tenth rule of thumb is to advise residents to switch off portable heaters when leaving a room or going to sleep for the night. - See more at: http://www.naahq. org/read/industry-insider/11-18-2014#sthash.0NkAskJV.dpuf Focus How to Evict 5 Pests That Love Your Property in Wintertime Digested From “How to Evict 5 Pests That Love Your Facility in Wintertime” Buildings (11/01/14) Building owners and managers must be on the lookout for five winter pests. The first is the box elder bug. Such pests feed on the little “whirlybird” seeds that are released from box elder and maple trees in the fall. When colder temperatures hit, they like to find a nice warm spot to hunker down for the winter. Box elder bugs are only a half inch long, so finding a way into most buildings is pretty easy. Look for them just inside the exterior walls of your building, on the warm sunnier side. Then, to stop these pests, all exterior cracks and crevices must be sealed. In addition, exterior doors must be sealed tightly on all sides. Cluster flies are the second winter pest to guard against. They tend to cluster in large numbers and come inside when winter arrives. To combat them, air handling and exchange units must be maintained with proper filters that prevent these pests from entering the airflow. Additionally, filters must be properly fitted within the unit to prevent bypassing. Asian multi-colored lady beetles are a potential third pest problem. They are often found in buildings during the winter, moving in groups, and releasing a smelly, yellowish liquid that can stain wall and ceiling coverings. Entrances must be fitted with brushes, gaskets, air curtains or other devices as appropriate to ensure that such insects cannot crawl or fly into the building. A fourth pest to fight off now that it’s cold is the brown marmorated stink bug. Such pests when disturbed release a strong, foul order to the point where the surrounding area can be rendered unusable. The article’s author urges that all exterior doors and windows be kept closed or properly screened when open. In addition, the most effective means of removing these pests is by vacuuming occupied areas. Finally, be on the lookout for common house mice. Removal typically requires an effective trapping program. - See more at: http://www. naahq.org/read/industry-insider/11-18-2014#sthash.0NkAskJV.dpuf Win a Gift Card from IAA! What is one thing you learned from reading this issue of INSites? Post your answer to the IAA Facebook page and you’ll be entered in a drawing to win a $50 Visa gift card! www.iaaonline.net www.facebook.com/ IndianaApartmentAssociation November/December 2014 INSites 29 NEW MEMBER PROFILES Mr. Appliance of Greater Indianapolis Mr. Appliance of Greater Indianapolis provides expert appliance repair, commercial dryer vent cleaning and is a local dealer for the pureWash eco friendly laundry system. Our commercial dryer vent cleaning utilizes the most recent technology and equipment to thoroughly clean the dryer vent. We will clean from outside the unit allowing optimum scheduling and convenience to the tenant and value to the owner. We can also clean from the inside if necessary utilizing HEPA filtered vacuums. All employees are background checked, trained and in full uniform. We will service the greater Indianapolis market and cities within a two hour drive. Upon site inspection, we can provide a quote and scheduling that best meets the customer’s need. Being an appliance servicer, we can provide additional services and insight that complements our dryer vent cleaning service. We are happy to be a part of the Indiana Apartment Association and look forward to working with members in the future. Please call 317-357-8000 to schedule a site assessment and quote and we will be happy to do everything we can to lower utility bills, reduce dryer failures, improve safety and make the resident a loyal, “cheerleader” tenant for your community. Thank You. Eye 4 Group Eye 4 Group is a creative venture focusing on providing visual solutions for our customers. Specializing in Signage, Branding, Marketing, Fabrication, Project Management and Design, we have a combined over 35 years of industry experience. Our presence in the multi-family housing industry is to provide industry partners with a one-stop shop for all of their signage needs. We do it all, from preliminary construction signage to project management including research and permitting. We also provide branding and marketing services and of course temporary and permanent interior and exterior signage. Our experienced project management staff will work with you to understand your needs and devise a sign package match your specific requirements. Our goal is to remove the hassle of piecing together the puzzle that is multi-family signage. One puzzle, one piece, Eye 4 Group. If you would like a quote or more information please contact us at: [email protected] or via phone (317) 804-4080. To refer a vendor to IAA, please contact Director of Membership & Education Franny Upp at 317-816-8900 or [email protected]. 2014 IAA Sponsors _____________________ platinum _____________________ _______________________ gold _______________________ _______________________ silver _______________________ 30 INSites November/December 2014 www.iaaonline.net www.iaaonline.net November/December 2014 INSites 31 Congratulations to the Most Recent 2014 CAM Designates Certfied Apartment Manager (CAM) The onsite manager is a vital link between apartment residents and the community owners and investors. Those who have earned the CAM designation can increase their community’s Net Operating Income, improve financial management skills, improve the ability to report financial performance and improve management of the onsite team. 2014 CAM Designate DeMisha Bowen. Nicole Allison & DeMisha Bowen Associate Member Update IAA values the membership of Associate Members and welcomes several new members who provide products, services and expertise to the multifamily industry. New Members A Cut Above the Best Lawn Care ATI Energy Group, LLC Apartment List Central Indiana Asphalt & Concrete, LLC Citizens Security & Investigation Cote Property Restoration Devols Custom Iron Enfront, Inc. Eye 4 Group Fabric Care Center First Person Green Acres Landscape & Design Dropped Members All 4 U Construction Direct Fitness Solutions RentAptsOnline.Com RentSentinel & RentSocial ResidentCheck, Inc. John P. Whelan Agency Molanda Company Mr. Appliance of Greater Indianapolis OPC Services (Okolona Pest Control) Rent Paid, LLC Stone Center of Indiana Taft Law Tag Exteriors Total Roofing & Construction The Container Store ThyssenKrupp Elevator GREAT service smart pricing call ray’s today. State – LLC Wisconsin Energy Conservation Vigo Car & Credit Dropped members have chosen not to renew their IAA membership. If you are currently doing business with these companies, please encourage them to renew their IAA membership. 32 INSites November/December 2014 www.iaaonline.net
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