The Wavecrest Management Team Ltd. began business in 1979 when we took over the management of Wavecrest Gardens, a 1650 unit, 38 building development located in Far Rockaway, New York. When we started, Wavecrest Gardens was suffering the effects of demographic changes. Built in the 1950’s on a beautiful 12-acre site overlooking the ocean, it had once been the pride of The Rockaways. But in 1979, there were serious problems with vacancies, rent arrears, bad debts, vandalism and maintenance. With no available capital other than the cash flow from the buildings, and faced with a complex that was operating at a high deficit, we began our work. We learned rather quickly that we had to maximize our income while controlling costs. We turned Wavecrest Gardens around. Today, once again, Wavecrest Gardens is the pride of The Rockaways.

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In 1987 we were called upon to apply the skills that we had developed at Wavecrest Gardens when we were appointed managing agent of Sutton Towers, a 1250 unit residential complex located in Collingswood, New Jersey. As a result of poor management, the complex was over spending on supplies and materials, the maintenance staff was unsupervised, and they had a 25% vacancy factor. Again, only with the cash flow from the building, we began our work. Applying the techniques we had learned at Wavecrest Gardens, we began to bring the development under control. We reduced spending, eliminated unproductive staff, brought the vacancy factor in line for the area and we increased the quality of life for the residents. It took us seven years to turn Wavecrest Gardens around and less than two years to do the same for Sutton Towers.

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During the period from 1991 – 1997 our efforts were focused on the management of distressed properties that were foreclosed by financial institutions. During this period we managed in excess of 150 buildings for these financial institutions. The institutions we represent include: Federal Home Loan Mortgage Corporation (Freddie Mac), First National Bank, Apple Savings Banks, Lincoln Savings Bank, Flushing Savings Bank, American Express Bank and the Banque National de Paris. In addition to having the management expertise, we also developed an experienced technical staff to meet, in a timely fashion, all of the mandated reporting requirements of these financial institutions.

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In May, 1995 the Department of Housing and Urban Development (HUD) chose us to manage a 109 unit residential development located on 116^th Street and Morningside Avenue in New York City. We assumed management of this development in May 1995. The buildings were in default on their mortgage obligations with HUD and were in deplorable physical condition. The graffiti started on the outside of the building and covered almost every square inch of the lobby and hallways. The front door was broken and unlocked, the intercom was not functioning, the mailboxes were ripped out of the wall, the compactors were not working, and of the 40 occupied apartments (69 were vacant), the residents received minimum service, if any. With only limited cash flow, we began our work.

With the cooperation of the staff at HUD, we developed a Management Improvement and Operation (MIO) Plan for the renovation of these buildings. The total scope of work approved under the MIO Plan was $1,380,000 with $1,000,000 coming from the New York State Housing Trust Fund and the balance of the funding coming from operations with the restructuring of the mortgage debt on the building.

In January 1998, we began the major renovation of these buildings. Today, all 109 units have been repaired and are occupied. The intercom systems have been replaced and we have installed new front and vestibule doors. We installed new mailboxes, replaced one compactor and repaired the other. The hallways have been repaired and painted, and the boiler and elevator have been upgraded and placed in proper working order. In addition, we have eliminated a serious drug problem at this building. One tenant said it all when she told us that she can now tell her friends where she lives.

As a post-script, the buildings were inspects by HUD’s independent Real Estate Assessment Center (REAC) in November 1999 and received an overall score of 94.6%. These buildings went from potential abandonment to excellence in less than five years.
 

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In February 1996, we were chosen, in a competitive process, to manage a development sponsored by The Archdiocese of New York that contains 900 units in 27 buildings located in the Highbridge section of the Bronx. These buildings were renovated under the Vacant Cluster and N.O.W. programs.

We were appointed because the Board was concerned that the possible phase out of the Section 8 subsidy for a portion of their tenants that it would severely affect the financial stability of the development. When we started there was no cash reserve and a significant unfunded water and sewer obligation in the amount of $500,000. In less than one year we were able to reduce operating expenses, payroll cost and increase income. We have funded the water and sewer reserve account and they now have a significant sum of cash in their operating and reserve accounts.

In January 2005, in a coordinated effort, Highbridge began the process of self managing their development.