Focus Management Group

Industry:

Real Estate & Construction

Service:

Financial & Operational Restructuring

Company:

Multi-Family Apartment Complex

Situation:

A multi-family apartment complex, which consisted of nine multi-family apartment complexes catering to middle and/or lower income clientele, was in decline due to weak markets, a severe lack of regular maintenance and failure to make needed capital improvements. Cash flow was weak due to high vacancy and past due accounts payable.

Focus Scope:

Focus was tasked to inspect the properties, recommend performance improvement measures, estimate current and future cash flow, and advise the company on financial and operational alternatives.

Tasks Performed:

• Managed all aspects of tenant acquisition, evaluation and retention, rental rate structure, amenities, community security, maintenance and service requirements
• Managed all aspects of tenant acquisition, evaluation and retention, rental rate structure, amenities, community security, maintenance and service requirements
• Created cash flow budgets for 13 weeks, 12 months and 18 months
• Designed and implemented a cash management system
• Reviewed capital expenditure requirements to determine debt service capability and prepared a capital expenditures budget
• Identified and organized utility accounts, creating a view of individual utility account liabilities and a portfolio level view of the situation
• Revenue benchmarks are monitored and reported on a regular basis

Results:

Focus provided the Company with a realistic assessment of the situation and continues to monitor cash flow and disbursements.