Management program builds property value.

In today's market, many owners of both residential and commercial real estate find themselves in the position of owning buildings with diminished value. These buildings are often in desperate need of renovation and repair and have a weak cash flow. While located in thriving or fringe neighborhoods, the buildings are losing money and causing owners and investors to view them as a liability rather than an asset.

For these situations, Eichner Rudd Management Associates, Ltd., has developed an eight-step program to build value back into properties. We call it our "Asset Building Program."

Drawing on the experience and skills acquired in our years as managers, Eichner Rudd first conducts a thorough analysis of the building, including physical structure, financial position and market conditions. We then develop and implement a plan of action for the building that will make it marketable, either to potential buyers or tenants.

Our program is comprehensive and analytical; through its steps the building's problems become apparent. For example, an owner may feel that renovation work will enhance the appearance and functions of the building and will, therefore, make it more marketable. However, the property may need more than a facelift. In another instance, the demographics of the neighborhood may be changing, and tile owner must take a different approach in marketing the building to maintain cash flow.

Through the steps of Eichner Rudd's "Asset Building Program," these problems and others are identified. We then begin to address each of them, all the while keeping the owner's needs in mind.

Although diagnosing the problems is an important step in rebuilding property value, it is a useless step if the management company doesn't know how to interpret it.

Together with my partner, Arthur Eichner, we have combined over 50 years of experience in the New York City housing market and have seen a number of cycles where the market has gone up and down - we know what changes need to be made, when they need to be made and how to do it.

The Eiehner Rudd "Asset building program"

Step 1: Eichner Rudd will determine the owner's objectives for the property and make the best recommendations about how to achieve those objectives. We then set goals for the property and constantly monitor our progress in an effort to meet the owner's objectives. This not only gives the project direction, it also serves as a benchmark - the owner will know how the building's improvement is progressing and how much more work is necessary before the building's value is rebuilt.

Step 2: A complete building inspection is conducted. This identifies the areas that need repair and helps distinguish between repairable equipment and that which needs replacement. Code violations are reviewed and a plan is created to clear the violations and make the property safe and habitable.

Step 3: A market analysis is performed that includes the compilation and review of information of comparable properties. This will help establish projected cash flow and will identify the property's highest and best use.

Step 4: The building's finances are examined in detail. We apply the management knowledge that we have gained over the years and that we use on our everyday management assignments. This allows us to see where costs can be trimmed and also ensures that tenants are paying full rent and complying with all lease provisions.

Step 5: Once the objectives for the property have been outlined, the next step is to create a value-added plan. This includes creating timetables so that progress can be easily measured and assembling a team of contractors to carry out any physical changes that need to occur.

Financing options are also explored at this step. Refinancing debt or bringing in an equity partner are two ways to improve the financial situation of a troubled property. By finding the most appropriate solution for the building's financial challenges, not only is new work possible, but in the long run the property's overall financial situation is improved.

Step 6: The sixth step is to continue to build successful relationships, with tenants and shareholders, as well as brokers. Working with them ensures that they understand the goals of the projects. It guarantees that the people currently in the building are satisfied and that the members of the real estate community know about the building's new potential.