Teresa Lippert is CEO of C.R.E.S. Management, L.L.C. (C.R.E.S.), a Missouri-based limited liability company. C.R.E.S. is a well-known leader in the real estate industry, with expertise in acquisition, development, renovation, condominium conversion, and management of multi-family properties throughout the country.
CRES has received various recognitions for leadership, management and renovations, including 2009 Project of the Year: Apartment Renovation for Quality Hill Apartments and Condominiums by the Multi-Family Executive Magazine. Describe the project, your strategy, and share with us a behind the scenes look at the challenges.
Quality Hill Apartments and Condominiums consists of 382 residential apartments and condominiums stretched over four and a half blocks in downtown Kansas City. It is made up of 21 buildings (11 of which are historic), 2 parking garages, a number of gated parking lots and a swimming pool. Our company acquired this project in February, 2008. At that time it was apartments, several street side retail spaces and the YMCA. Our goal was to convert the community to accommodate a wide variety of homes to meet almost any lifestyle and price range. We began renovating a number of the buildings to condominiums using timeless materials, including new cabinets, sleek granite countertops, stainless steel appliances, plank hardwood floors, tile and slate, walk in showers, new lighting, hardware and six panel doors. The exterior of the buildings also received wood replacement, siding, windows, new roofs, paint and landscaping. We also renovated a number of the apartment buildings to include new or upgraded cabinets, appliances, paint, countertops, decorative lighting and hardware. The common areas of the buildings were also updated with new paint, flooring and elevator upgrades. This project was challenging in many ways, from city restrictions, historical building restrictions and the need to offer a different product in a developing downtown area full of loft-style living spaces. We wanted our project to stand out as different, inviting, and within a price point that was affordable for everyone. Our goal of being able to offer a variety of lifestyle choices to any person entering our newly updated offices, regardless of their needs, has been met. From the basic apartment, to luxurious apartments and condos – Quality Hill now offers it all.
What are your biggest challenges for 2010 and for the apartment industry in general?
As in 2009, the economic condition of our country will continue to be our biggest challenge. Unemployment, the lending market in turmoil, and public concern for the future all affect our condo sales, leasing and collections. With more and more people losing jobs we are seeing a rise in nonpayment of rent and families consolidating to save money. This affects our apartment occupancy and income. Expenses continue to increase and most markets are seeing a decrease in rental rates due to the need to offer move-in specials to attract residents whose income has decreased.
What trends do you see emerging for the next 24 months in the multi-family market?
Economic forecasts tell us that 2010 will remain flat, but 2011 will see improvement. Apartment purchasing and sales should see improvement in late 2010 and in 2011.
With over 7,000 apartments and condominiums in your portfolio, what types of activities do you and your employees spend the most time doing to ensure your success?
We constantly monitor the market place in which we do business. Knowing what the competition is doing and making sure we are in line with them is extremely important in today’s world. It is changing almost daily and we must always be competitively priced. We also focus on resident retention. It is now more important than ever to keep our residents and homeowners happy so they will continue living in our communities. We are also spending more time and effort on decreasing expenses. We made big strides in this direction in 2009, by going paperless with our accounts payable, reporting and most communications.
Describe your involvement with the American Diabetes Society.
I am the Chairperson for the ADA Hoops and Sneakers Gala, Kansas City’s largest fundraiser for the American Diabetes Association. In 2009 we held a number of fundraisers for the ADA leading up to the Gala which will be held Feb. 27 at the Hyatt Regency hotel. I feel very strongly about the importance of raising money to aid in the research of defeating this disease that affects so many people in our world. This is one of the many charities my husband and I are currently involved in. We feel that it is very important to give back to our community and those in need in the world around us.
Tell us about your staff and your commitment to a team effort.
My husband and I are partners in our business and we both work toward growing our company on a daily basis, not only for ourselves, but our employees and their families. We currently employ over 300 people in 5 states and assisting these individuals in realizing their dreams with regard to their career and personal goals is very rewarding. We feel continued education, training and motivation is not only beneficial to them, but also our company, as we gain knowledge and dedication with our “family” of employees. We also take great pride in providing quality homes and service for thousands of people. Our partnership is also a very solid personal one, which is grounded with a wonderful family and friends. Our favorite thing to do is spend time with our adult children and grandchildren.