The REDS Project Management Strategy

The REDS approach to project management involves exploring every detail of a project to uncover how we can maximize the financial and physical strength of your development strategy. Each client is matched with a personal project manager that guides your deal and works in close relationship with you and your staff throughout the process. Through 30 years of financing, building, owning and operating multi-family real estate for ourselves and third-party clients, we have built detailed strategies of how to maximize the performance of a project team (architects, engineers, financing partners, legal, third party consultants, etc.) and guide your finance, development and design choices to build a property that has strong financial performance, provides an attractive asset to the community and has longevity in the market.

You are not just a “project,” but rather a valued client that we endeavor to work with and support in all of your development efforts for years to come. Relationships are our strength, and the arena where we add security and value for our clients unlike anyone else in the industry.

Land Acquisition Services

• Evaluate preliminary financial feasibility utilizing proprietary financial models
• Cursory assessment of zoning, entitlement and potential environmental issues with local municipality
• Analyze potential development sites for 4% and 9% tax credit service amenity scoring
• Conduct internal market analysis of market comparables, rent studies, existing multi-family vacancy rates and local income demographics
• Negotiation of purchase and sale agreement terms and conditions with brokers and land owners to correspond with the project timeline

Entitlement

• Evaluate design compliance with zoning ordinances, set back requirements and architectural design guidelines required by the local municipality
• Engage 3rd party reports including environmental analysis for Phase 1 and 2 environmental studies, geotechnical studies, environmental Impact reports, traffic studies, acoustical studies etc.
• Manage plan check and permitting process by managing architects, engineers, and local government planning official correspondence
• Represent project and client in municipal meetings and public hearings where required

Infill / Brownfield Site

• Successful track record of completed development deals utilizing infill and brownfield sites
• Investigation of all feasible construction sites and sourcing project sites that are suitable for reuse, including infill lots and coordination with local government bodies to utilize brownfield sites.

Design

• Utilize local design professionals whenever possible to ensure architectural integration into the community
• Hold meetings with local neighborhood to introduce development and address concerns, answer questions and potentially modify design to build community support
• Assess site with construction and design teams to ensure seamless integration of the new design into the existing look and feel of the neighborhood and community

Value Engineering

• Integrating contractor expertise from beginning of the design phase to ensure high quality and economical design choices for highest potential maximum financial feasibility
• Evaluate plans in structural design and assess material choices for projects that are coming in over budget to advise on maximum financial return through long term operational cost efficiency

Financing

• Extensive analysis of available affordable housing financing vehicles such as 9% and 4% federal and state tax credits, 4% tax exempt bonds, State and Local HOME, CDBG, AHP, MHP, HUD Mixed Finance, Rental Assistance Demonstration (RAD), federal and state stimulus funds and local municipal funds
•Preparation, compilation and submittal of applications for affordable housing finance and/or conventional construction and permanent debt
•Ongoing real-time financial modeling of project feasibility and profitability
•Create financial pro formas and draw schedules for construction financing
•Financing and underwriting consulting including management of third party consultants, due diligence processes, title and escrow coordination and debt equity and closing teams
•Assistance of procurement and negotiation with debt and equity providers

Click here for a more in depth look at a financial services REDS provides.

Construction Phase

•Construction draw reviews, outside inspections advisement on potential field changes and/or change order negotiations
•Knowledge and experience reviewing schedule of values; educated recommendations regarding facilitating construction RFI’s and submittals

Development Phase

•Engage contractor from day one of the design process to ensure cost efficiency, incorporation of value engineering practices, encourage sustainability and integration of “green” technology
•Retain a Green Point rating agency and incorporate Green Point measures into the design of every development
•Recommend to environmentally conscious clients the systems, material, practices and standards for “green” and sustainable design in all phases of planning, design and construction of the building delivery

Marketing/Lease Up/Stabilization

•Consistent meetings are set to discuss the absorption schedule, application and income eligibility requirements, tax credit delivery schedule, and review the lease-up and stabilized budgets
•Evaluate the status of the primary rental market to implement strategies that provide the project with a
competitive edge
•Develop timeline to establish, track and monitor the absorption milestones set forth by ownership

Asset / Property Management

•Strategic planning asset management for all portfolio types and sizes to achieve target goals and maximize asset value
•Professionally manages portfolio of 6,000 units in California and 90,000 nationwide in partnership with Winn Residential

Long-term Exit Strategy / Portfolio Management / Year 15 

•Analyze portfolio for refinance opportunities to increase cash flow from utilizing intelligent mezzanine financing structures with no cash out of pocket
•Ability to refinance debt structure to meet long-term ownership goals by buying out limited partners and negotiating with general partners
•Evaluate asset deal structure and recommend exit strategy including options for sale, refinance, LP buyout and re-syndication
(See REDS Financing)
•Management of debt and equity teams, third party reports, lender legal/due diligence process and title/escrow coordination

In addition to all the other services listed here in, REDS also offers specialized support to public agencies.

• Financing application preparation or assistance (including but not limited to AHP, CDBG, MHP, HOME, CTCAC, CDLAC, RAD, HUD Mixed Finance and other state and local financing sources)
• Advise clients on financial strategies to maximize equity and bond or loan proceeds raised and negotiate on behalf of or with PHA, with lenders and investors on deal terms
• Financing and underwriting consulting including management of third party consultants, due diligence processes, title and escrow coordination and debt equity and closing teams
• Interface with local jurisdiction on entitlements and building permits
• Oversee General Contractor and Architects to design and/or value engineer a quality, cost efficient development that will achieve long term value for the owner
• Construction Management Oversight
• Strategic marketing, lease up and property management services

Rental Assistance Demonstration (RAD)

• Real time financial modeling and analysis throughout the pre-development and financing period to assess impacts of all material changes in costs or deal terms
• Analyze public housing portfolio and feasibility of RAD conversion
• Work closely with the Public Housing Authority (PHA) to prepare RAD Applications to HUD
• Work with HUD to process RAD application(s) and issue CHAPs as well as assisting in the financing plan preparation and tracking of milestones
• Organize and manage a “RAD team” including legal and other third party consultants

Beyond just a project-by-project contract, REDS can offer your agency’s development team short or long term capacity building support.  We provide mentoring, seminars, on-the-project training and side-by-side instruction in complex processes such as financing applications, HUD processing tasks and all aspects of professional finance and development.  These contracts are custom-tailored to your agency’s unique needs, and often initiate with a deal-specific consulting assignment that allows us to assess your team’s strengths and provide both parties insight into how REDS can best support your capacity building goals. Capacity building clients can capitalize on our decades of experience to channel knowledge and professional skills into their agency team without spending years waiting to “learn on the job.”

This suite of services is highly unique in the industry and can transform your agency’s capacity, performance and long term ability to serve your community.