Wednesday, March 26, 2008
Monday, March 24, 2008
The Economy of Fear
The economy has problems.
This is not going to be a big quick recovery and we need to brace for a long term recession.
http://www.portfolio.com/views/columns/economics/2008/03/17/Sizing-Up-the-Coming-Recession
-NickMonday, March 17, 2008
Re: The Power of YES
Last week I spoke about the word "No" in negotiations this week let's discuss the opposite. The word YES is a powerful motivator that should be used whenever possible especially when it comes to customer service. It doesn't matter who you are the word YES is a very positive statement and creates strong emotional connections.
Anyone in customer service (that's everyone!) Should know that if you say YES to the customer you will be making a positive step in the long-term relationship. Everyone needs to think of how they can say YES to any request made by a resident, lender, equity partner, employee, or even an acquisition target-- collectively know as our Customers.
When dealing with a request, as strange as it may be, when cannot allow our immediate reaction to the word "NO". We need to think a little about how we turn the negative (relationship destroyer) response into a positive YES response. Maybe it requires asking a supervisor, or going out of your way a steps but we need to try to find a way to respond yes to the request.
All the great retailers of our time have made this a significant part of their model. Always try to find a way to answer YES. It’s easy to say no but in the long term the word YES will be the answer that keeps your customer forever.
Start today. Try to find a way to answer YES to all your customer requests as they come in today. Going the extra mile will make your customer happy and will likely make you feel better too.
"It's kind of fun to do the impossible." - Walt Disney (1901-1966), American entrepreneur, movie producer, showman
Thanks for Making It Happen!
Anyone in customer service (that's everyone!) Should know that if you say YES to the customer you will be making a positive step in the long-term relationship. Everyone needs to think of how they can say YES to any request made by a resident, lender, equity partner, employee, or even an acquisition target-- collectively know as our Customers.
When dealing with a request, as strange as it may be, when cannot allow our immediate reaction to the word "NO". We need to think a little about how we turn the negative (relationship destroyer) response into a positive YES response. Maybe it requires asking a supervisor, or going out of your way a steps but we need to try to find a way to respond yes to the request.
All the great retailers of our time have made this a significant part of their model. Always try to find a way to answer YES. It’s easy to say no but in the long term the word YES will be the answer that keeps your customer forever.
Start today. Try to find a way to answer YES to all your customer requests as they come in today. Going the extra mile will make your customer happy and will likely make you feel better too.
"It's kind of fun to do the impossible." - Walt Disney (1901-1966), American entrepreneur, movie producer, showman
Thanks for Making It Happen!
Monday, March 3, 2008
"NO" is not an answer..... Its an invitation to negotiate.
"It's not whether you got knocked down. It's whether you get back up." - Vince Lombardi, Green Bay Packers coach
We have a great model for success. Buy buildings at below market prices,Renovate them intelligently, finance them with lower cost debt than our competitors, and then manage them professionally with long term brand growth in mind.
This model didn't just come to us one evening. It took years and years of persistence, thousands of phone calls to sellers, tens of thousands of apartment showings, uncountable maintenance calls, and lots of imagination. But the company continues to grow mainly because we have always operated under the premise that "NO" is not an answer its just an invitation to negotiate.
Whether dealing with sellers, vendors, contractors, prospects, or residents our attitude has to be that we can and will make you happy. Maybe its creating an effective tax strategy for a seller or showing a prospect a 10th unit (usually on the top floor of a walk-up building), negotiating a fair interest rate lock with a lender, or just making an existing resident happy when we do something wrong. This is the "Make It Happen" attitude that differentiates our company.
Rember that next time you are on the phone with an irate resident, or seller or contractor. Our job it to figure how to make them happy and still keep our profit margins in line. It has been done for many years now and we will keep working it so it gets done over and over again going forward.
Thanks for reading and remember we can't Make It Happen without you.
We have a great model for success. Buy buildings at below market prices,Renovate them intelligently, finance them with lower cost debt than our competitors, and then manage them professionally with long term brand growth in mind.
This model didn't just come to us one evening. It took years and years of persistence, thousands of phone calls to sellers, tens of thousands of apartment showings, uncountable maintenance calls, and lots of imagination. But the company continues to grow mainly because we have always operated under the premise that "NO" is not an answer its just an invitation to negotiate.
Whether dealing with sellers, vendors, contractors, prospects, or residents our attitude has to be that we can and will make you happy. Maybe its creating an effective tax strategy for a seller or showing a prospect a 10th unit (usually on the top floor of a walk-up building), negotiating a fair interest rate lock with a lender, or just making an existing resident happy when we do something wrong. This is the "Make It Happen" attitude that differentiates our company.
Rember that next time you are on the phone with an irate resident, or seller or contractor. Our job it to figure how to make them happy and still keep our profit margins in line. It has been done for many years now and we will keep working it so it gets done over and over again going forward.
Thanks for reading and remember we can't Make It Happen without you.
Monday, February 18, 2008
The Extra Mile!
"Wow.. I'm in Love!"
That was the response this Sunday morning when one of our residents was met at her front door with our Signature to your door Sunday paper delivery person. We should all be proud to hear those words used to describe our relationship with our customers.
That was the response this Sunday morning when one of our residents was met at her front door with our Signature to your door Sunday paper delivery person. We should all be proud to hear those words used to describe our relationship with our customers.
Whether you are delivering the paper to their door, mailing out loyalty rewards on Valentine's day or performing a maintenance call within 24hrs hours you are a major reason why our residents are using the words Love, Unbelievable, Great and many more positive comments to compliment our company.
I can't help but to be proud of how often you are exceeding my expectation of what true customer service oriented apartment owners we can be. Thanks.
And remember its you and your commitment to going the extra mile that Makes It Happen!
Sent via BlackBerry from T-Mobile
Tuesday, February 5, 2008
The Vision of Signature Community
To create a well-known, sought-after living experience that exceeds out residents' expectaitons.
We strive to creat a profitable brand, which will be achieved by delivering excellent customer service and value.
Tuesday, January 29, 2008
NWJ Cos- 2008 State of the Union Jan. 28, 2008
Thanks. That's how I want to start. Thanks to all of you for growing our company, our assets and our brand value.
We grew assets by almost $100M last year. Now approaching 300M in assets.
More importantly we grew brand recognition - this time last year we were know to residents and prospects as plaza properties, bpg, chesterfield, nwj/cozza , etc etc. In just one year we have launched a branding concept that takes more than 15 different names and narrows them down to our one brand "signature community". This branded was created by the dedication of all our management personnel across the US. We couldn't have done it without you. I need to give special thanks to brain kroker, Christian vanhorn, Heather Jekogian, Michele Antopolous, and Gail Cooperman for there ability to exceed even my overzealous expectations in this rolls out. Brian, Christian, Gail, Heather and Michele. Thank you. Here is a token of our appreciation of what you and your team did last year.
Thanks to everyone in our acquisition group you don't only exceed expectations but they do the impossible. This is what I hear time in and time out when I visit with long time real estate investors and professionals. They don't believe that our model is possible. However we have proven them wrong more than 400 times and with the team that Dave McLain has put together we will continue do prove that there exists a huge inefficiency in the class B apartment ownership market and our company is using that opportunity to grow at a rapid yet profitable pace.
Again thanks for putting in the hard, tedious hours it takes to make our deals work.
In 07 we made some mistakes and hit some roadblocks and if not for the tireless efforts of the Stabilizations team led by Mike greenzang I can't imagine where we would be. His team at Waldo heights led by Lisa moved occupancy from 40% in July to 73% today, and everyone there have done a tremendous job of taking and under budgeted project and turning it into a great success. I can say the same for the park greenwood team, Kyle and Niki, Texas team headed by Chris Ballard and all the other stabilization team members who we ask ever day to turn some of the worst projects into Signature quality Communities. Thanks.
In our business Money is our life blood. Bank financing, equity financing, wall street debt, govmt sponsor loans, etc, you name it and our finance department makes it happen. And at rates significantly below that of our competitors. To give you an idea our company wide cost of capital right now Average 5.75%. We are currently in final stages of buying a publicly traded real estate company. One of the major reasons we can do this is because we are borrowing almost all of the purchase price for an overall cost that is the same as what the company is paying now for $35M fewer dollars. Chuck, Doug, and Steve are the smallest group in our company but they handle a major aspect of our growth and profitability.
Again I want to that everyone for their involvement in our growth last year and their anticipation of next year’s success.
I am big believer in the quote from Lou Holtz -- "If what you did yesterday seems big, you haven't done anything today." - Lou Holtz, Univ. of South Carolina football coach
Now for the statistics. ---
Current statistics-
NWJ/Signature Community is now
$290 M in assets
3,500 apt units nationwide (thru 15 major markets), more than 200 buildings
More than 150 Employees Company wide
20 person acquisition dept (one of the largest in the industry
More than $1M/annually spent on senior management to professionally
Manage the portfolio.
400 separate purchases transactions since 1992.
16 year old company which in the R/E business is a long time.
07 - Progress
We purchased $39M worth of real estate. Although below goals they were significantly above 06 results and we predict very positive trend for 08.
On our existing portfolio Brian and his group again made great strides at systematizes operations of the existing portfolio. The roll out of the "Signature Community" brand has been the biggest change in our company since we started.
We are different now. We are starting to think like retailer
Finance – $10 million in Equity investments was brought in last year and almost $75 million in financing.
Portfolio division - Although we have not closed any substantial portfolios we continues to look at bigger deals and are on the verge of closing our biggest acquisitions yet a 1000 unit portfolio.
"Once you say you're going to settle for second, that's what happens to you in life." - John F. Kennedy
07 - Year of adjustments - at the start of the year the fundamentals were pointing towards an adjustment but nobody slowed down. Apartment buying continued to be strong and some of the biggest real estate transactions ever happened. 8 months later that all came to a screeching halt. Lenders and investors woke up and realized that the debt used to purchase these deals was not structured correctly for the inherent risk. Essentially money was being lent as if there was no risk in doing RE deals, as if the price would always continue to go up. But the bubble burst and now the clean up is beginning.
This is where are model works the best.
08 is going to be the year of analyzing RE deals on income not a sale basis. This is what we have been doing for years.
Short version -
Nwj Companies is a $300M real estate ownership firm that focuses on the acquisitions, redevelopment, recapitalization and long term hold of Class B apartment projects on a national basis. Our assets are managed by a captive management firm and branded under the "Signature Community" name. Our company is currently soliciting new properties in over 18 markets.
08- Economic predictions
This is a tough one. I don't think anyone knows the answer to this. The only thing that can be said with certainty is that its not going to be as good as it was over the past few years. The housing market was a major driver of the economy and that is in bad shape and will remain so for the foreseeable future. A recession is probably in the cards for the US although the severity and length is anyone’s guess.
The one good thing about the state of the economy is that cash flow is now very important and fortunately for us that is big part of our model.
08 initiatives
Asset/unit growth - we are going to purchase $200M (almost 3000 units) in real estate assets this year.
Signature Community is going to become a nationally recognized customer service oriented brand.
Management - we will continue to consolidate our organization to handle more problems at a higher corp. level as opposed to on the front line. Examples are the hire of Ian Fraenkel as Director of Leasing and his initiate to bring a national leasing call center, Kim wares success in national collection policy, insurance shopped at a national level which has already resulted in a more than 40% decrees in our insurance costs.
Company structure - we will continue our commitment to make a unified company of managers, stabilization experts, and finance professionals and acquisitions specialists. As well as set up a structure whether it be a fund or possible REIT structure that will attract more investors to our company.
Financing- We will be financing almost $300 million in debt in 08’
Restate - nwj description with 09 info
By end of 08
Nwj Companies will be a $500M real estate ownership firm that focuses on the acquisitions, redevelopment, recapitalization and long term hold of Class B apartment projects on a national basis. Our assets our managed with customer satisfaction first under "Signature Community". We receive premium rents in our asset class because we offer services and amenities to our customers that are only found in much higher priced luxury buildings. We own substantial portfolios in 20 major US markets and our expanding into an additional 10 in 09.
Thanks you for your time and please remember that.....
The best is yet to come but only you can Make It Happen!
Nick Jekogian
President/CEO
NWJ Companies
January 28, 2008
Podcast of State of the Union
http://signaturecommunity.mypodcast.com/
We grew assets by almost $100M last year. Now approaching 300M in assets.
More importantly we grew brand recognition - this time last year we were know to residents and prospects as plaza properties, bpg, chesterfield, nwj/cozza , etc etc. In just one year we have launched a branding concept that takes more than 15 different names and narrows them down to our one brand "signature community". This branded was created by the dedication of all our management personnel across the US. We couldn't have done it without you. I need to give special thanks to brain kroker, Christian vanhorn, Heather Jekogian, Michele Antopolous, and Gail Cooperman for there ability to exceed even my overzealous expectations in this rolls out. Brian, Christian, Gail, Heather and Michele. Thank you. Here is a token of our appreciation of what you and your team did last year.
Thanks to everyone in our acquisition group you don't only exceed expectations but they do the impossible. This is what I hear time in and time out when I visit with long time real estate investors and professionals. They don't believe that our model is possible. However we have proven them wrong more than 400 times and with the team that Dave McLain has put together we will continue do prove that there exists a huge inefficiency in the class B apartment ownership market and our company is using that opportunity to grow at a rapid yet profitable pace.
Again thanks for putting in the hard, tedious hours it takes to make our deals work.
In 07 we made some mistakes and hit some roadblocks and if not for the tireless efforts of the Stabilizations team led by Mike greenzang I can't imagine where we would be. His team at Waldo heights led by Lisa moved occupancy from 40% in July to 73% today, and everyone there have done a tremendous job of taking and under budgeted project and turning it into a great success. I can say the same for the park greenwood team, Kyle and Niki, Texas team headed by Chris Ballard and all the other stabilization team members who we ask ever day to turn some of the worst projects into Signature quality Communities. Thanks.
In our business Money is our life blood. Bank financing, equity financing, wall street debt, govmt sponsor loans, etc, you name it and our finance department makes it happen. And at rates significantly below that of our competitors. To give you an idea our company wide cost of capital right now Average 5.75%. We are currently in final stages of buying a publicly traded real estate company. One of the major reasons we can do this is because we are borrowing almost all of the purchase price for an overall cost that is the same as what the company is paying now for $35M fewer dollars. Chuck, Doug, and Steve are the smallest group in our company but they handle a major aspect of our growth and profitability.
Again I want to that everyone for their involvement in our growth last year and their anticipation of next year’s success.
I am big believer in the quote from Lou Holtz -- "If what you did yesterday seems big, you haven't done anything today." - Lou Holtz, Univ. of South Carolina football coach
Now for the statistics. ---
Current statistics-
NWJ/Signature Community is now
$290 M in assets
3,500 apt units nationwide (thru 15 major markets), more than 200 buildings
More than 150 Employees Company wide
20 person acquisition dept (one of the largest in the industry
More than $1M/annually spent on senior management to professionally
Manage the portfolio.
400 separate purchases transactions since 1992.
16 year old company which in the R/E business is a long time.
07 - Progress
We purchased $39M worth of real estate. Although below goals they were significantly above 06 results and we predict very positive trend for 08.
On our existing portfolio Brian and his group again made great strides at systematizes operations of the existing portfolio. The roll out of the "Signature Community" brand has been the biggest change in our company since we started.
We are different now. We are starting to think like retailer
Finance – $10 million in Equity investments was brought in last year and almost $75 million in financing.
Portfolio division - Although we have not closed any substantial portfolios we continues to look at bigger deals and are on the verge of closing our biggest acquisitions yet a 1000 unit portfolio.
"Once you say you're going to settle for second, that's what happens to you in life." - John F. Kennedy
07 - Year of adjustments - at the start of the year the fundamentals were pointing towards an adjustment but nobody slowed down. Apartment buying continued to be strong and some of the biggest real estate transactions ever happened. 8 months later that all came to a screeching halt. Lenders and investors woke up and realized that the debt used to purchase these deals was not structured correctly for the inherent risk. Essentially money was being lent as if there was no risk in doing RE deals, as if the price would always continue to go up. But the bubble burst and now the clean up is beginning.
This is where are model works the best.
08 is going to be the year of analyzing RE deals on income not a sale basis. This is what we have been doing for years.
Short version -
Nwj Companies is a $300M real estate ownership firm that focuses on the acquisitions, redevelopment, recapitalization and long term hold of Class B apartment projects on a national basis. Our assets are managed by a captive management firm and branded under the "Signature Community" name. Our company is currently soliciting new properties in over 18 markets.
08- Economic predictions
This is a tough one. I don't think anyone knows the answer to this. The only thing that can be said with certainty is that its not going to be as good as it was over the past few years. The housing market was a major driver of the economy and that is in bad shape and will remain so for the foreseeable future. A recession is probably in the cards for the US although the severity and length is anyone’s guess.
The one good thing about the state of the economy is that cash flow is now very important and fortunately for us that is big part of our model.
08 initiatives
Asset/unit growth - we are going to purchase $200M (almost 3000 units) in real estate assets this year.
Signature Community is going to become a nationally recognized customer service oriented brand.
Management - we will continue to consolidate our organization to handle more problems at a higher corp. level as opposed to on the front line. Examples are the hire of Ian Fraenkel as Director of Leasing and his initiate to bring a national leasing call center, Kim wares success in national collection policy, insurance shopped at a national level which has already resulted in a more than 40% decrees in our insurance costs.
Company structure - we will continue our commitment to make a unified company of managers, stabilization experts, and finance professionals and acquisitions specialists. As well as set up a structure whether it be a fund or possible REIT structure that will attract more investors to our company.
Financing- We will be financing almost $300 million in debt in 08’
Restate - nwj description with 09 info
By end of 08
Nwj Companies will be a $500M real estate ownership firm that focuses on the acquisitions, redevelopment, recapitalization and long term hold of Class B apartment projects on a national basis. Our assets our managed with customer satisfaction first under "Signature Community". We receive premium rents in our asset class because we offer services and amenities to our customers that are only found in much higher priced luxury buildings. We own substantial portfolios in 20 major US markets and our expanding into an additional 10 in 09.
Thanks you for your time and please remember that.....
The best is yet to come but only you can Make It Happen!
Nick Jekogian
President/CEO
NWJ Companies
January 28, 2008
Podcast of State of the Union
http://signaturecommunity.mypodcast.com/
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