Volume 5 Issue 1
January 2023
LETTER FROM A LOOK BACK AND BEYOND
Keeping our People, Processes, & Properties at the Center As we kick off 2023, I can’t help but reflect upon the last five years and all that we have accomplished. You may have seen that I celebrated my 5-year anniversary with FRED at the end of 2022. When I joined FRED, I thought I had a full understanding of how great the company was. The past five years have far exceeded my expectations, and I am not talking about profitability (coming from the CFO, I am sure that surprises some of you). We have been and will continue to be successful for other key reasons. First, our people and our culture are the best in the industry, and we are still getting better. There has been a lot of change over the past five years and there have been some growing pains, but it has all been worth it and our culture is better for it. Second, our processes and systems are second to none, and we are positioned well for the future. Look around you; how much has your average workday changed in the past five years? We have a culture that is always willing to brainstorm, always looking to find a better way, challenging the status quo in the name of a better tomorrow. Third, we build and manage the best property type, multi-family housing. It is the most stable and resilient asset class of all time and every day we make a difference in the lives of thousands of residents. You should all be proud of that. As we head into 2023 and look beyond, let’s keep our people, our processes, and our properties at the center of all we do. If we do that, the profitability will take care of itself. I challenge each of you to continue to push yourselves, support your teammates, and help us all retain and recruit the best and the brightest. Never stop trying to find a better way to do what you do every day and never be afraid to raise your hand when you have an idea. The workday has changed so much over the past five years and that pace of change is going to keep accelerating. We all play a part in keeping up.
Lastly, I challenge us all to look at the properties we own and manage and “think like an owner”. There will be periods of volatility ahead (we are in a cyclical business after all), but apartments give us the best opportunity over the long term for stability and therefore the best opportunity to make an impact in our communities. Here’s to a great 2023 and Austin Mautz beyond!
Austin Mautz
Chief Financial Offficer
DEPARTMENT UPDATE ASSET MANAGEMENT The Details Matter
By Casey Malek, Vice President of Asset Management
We’re in a time where we must be the best at all the things we can control. The little things matter. Details matter. With the media talking about a recession every day, people start to believe we are in a downturn, so they hold off on making bigger decisions like renting apartments or buying homes. While this is hopefully a temporary impact, it will likely last through the winter. As a result, every lead or prospect is like gold—and resident retention is equally important. Asset Management’s primary focus over the last couple of years has been on revenues. For 2023, our focus will shift to expenses and utilizing our total buying power more effectively. Inflation continues to drive up costs across the portfolio. We can’t rely on record rent growth to continue offsetting rising expenses. It will be imperative to minimize our costs wherever possible. The little things add up.
Another major focus for 2023 will be our seven new properties in lease-up: Seasons at River View, Seasons at Mount Pleasant, High Bluff at Creekwood Crossing, Seasons at Plainfield, Seasons at Franklin, Seasons at North Aurora, and Seasons at Hoffman Estates. These seven properties consist of 1,828 units, which equates to about 30% of our current stabilized portfolio unit count. The success of these lease-ups in 2023 is crucial to the continued health of the FRED portfolio. Lastly, as 2022 gets closed, we want to thank the property management team for being open to all the ideas and strategies we have, particularly LRO. There was some initial hesitation on LRO, but everyone had a great attitude and that buy-in has helped take us to the next level. Let’s keep the momentum going!
FRED IN REVIEW WHAT OUR RESIDENTS ARE SAYING "We just moved in today, and Jill was absolutely amazing and helped out so much with the moving process and everything. Our unit was completely remodeled and I am so please with everything. Everyone here does such an amazing job and makes my fiancé and I feel so comfortable being new residents to Manchester." - Caylee W., Manchester Oaks "Five months into our rental agreement and we are quite happy with our place. Dewey, the maintenance man, has been very good in coming to our aid with a couple different projects." - Pamula W., The Landmark at Hatchery Hill
"I want to give a shout out to Josh who helped me with a plumbing issue yesterday. He was professional and courteous, and kept me updated on the progress of the work order. Everything is fixed now and I am happy." - Katharine T., Arbor Lakes
"From the very first time I set foot on the grounds of Seasons at River View, Taylor was very helpful as she put up with all the questions I asked of her. She was very helpful in helping me select the right unit for my needs. She is a very big reason I chose to live here. I moved in early fall so looking forward to being able to use all amenities as we come out of winter. Looking forward to when my girlfriend's dog can use the dog park as it looks like it will be a fun place for them to play." - Richard F., Seasons at River View
Thanks for all you do!
PROPERTY SPOTLIGHT
What Makes Them Shine Every fall, the team at The Junction holds a Resident Appreciation Week, to let our residents know how happy we are that they call The Junction home! This year's week ran from Monday, October 24 through Thursday, October 27. There were a variety of activities for all residents to enjoy plus 'Grab and Go Lunch' and 'Breakfast on the Go' for residents leaving for work or working from home. We didn't forget about our young people and canine companions in the community, as a Ghosts & Goblins Trick or Treating Parade was held. Then a little something for the adults, a Wine & Paint night, where they painted mason jars to take home with them as decoration. To keep the Halloween spirit going, there was a balcony decorating contest, which awarded 1st, 2nd, and 3rd prizes. There were also many fun prizes given away. What a great way to show our residents how much we truly appreciate them.
JAMES RISCH
EMPLOYEE SPOTLIGHT
Assistant Property Manager Domain I began working with FRED in June of 2021, shortly after the birth of my daughter. My family lived at Arbor Lakes at the time and I wanted to work closer to home to be with them, so I began working as a Part-Time Leasing Professional. Quickly, I learned that FRED is a good company full of great people. My co-workers became like family. Eventually, my opportunities opened up and I worked as a Full-Time Utility Tech and then returned to the office as a Full-Time Leasing Professional. Soon after, another opportunity came along and I was lucky enough to become the Assistant Property Manager at Domain, where I am now. I am excited to continue on my journey with FRED and am grateful for all of the opportunities.
SPOTLIGHT! November Winner
KATHY PETTKE Property Manager | Stone Point
Kathy is honestly one of the hardest working people I know and has done so much for me personally, as well as our team members and our residents daily. Kathy is an amazing manager to work under and has done so much with so many recent changes at our property, she continues to always stays on top of everything. All of our residents here at Stone Point adore her and for good reason, she treats them fairly as well as with compassion. When it comes to being a team leader, Kathy knows how to step forward and keep us all on task while motivating us and encouraging us to use our best efforts. She is a team player and never takes credit for anything done, her response is always that her successes are "a team effort". Kathy honestly deserves a little recognition for all the hard work that she puts in both on the clock and off. Go Kathy!!!
Welcome to the Team November 16 - December 15, 2022
TATYANA DONALD
Leasing Professional Seasons at Mount Pleasant
MAX ZWICK
Groundskeeper 1505 Apartments
ELIJAH BROOKS
Leasing Professional Manchester Oaks
Promotions
November 16 - December 15, 2022
JIM PETTKE
Maintenance Supervisor Saddle Brook
STACY ZHANAY
Assistant Property Manager Seasons at Plainfield
WILLIE WEISSMAN
Maintenance Tech II Saddle Brook & The Woodlands
Nominated By: Isabelle ToroDake
FRED NEWS On November 16th, 2022, FRED officially closed on the sale of Seasons at Romeoville. Seasons at Romeoville was the second successful project in Illinois for FRED and the third “Seasons”-
FRED TEAM ON THE MOVE
branded property in our company portfolio. The 240-unit property leased up well ahead of schedule, substantially outperformed the initial proforma, and sold shortly after achieving stabilization. Seasons at Romeoville benefitted from its unique market position as the luxury lifestyle choice in the area, with high end finishes and an array of community amenities. The
MICHELLE SELLINGER Property Manager The Junction Joined the FRED Team
property is also set in an outstanding location within minutes of many major employers, local and national retailers, and restaurants, as well as key transportation corridors. We are very appreciative and thankful for all the hard work and efforts of our dedicated FRED team members that led to the successful build out, lease-up, sale, and
SHELBY CUTLER
Property Manager State Street Station Joined the FRED Team
smooth transition to the new owner, JVM Realty.
COVER PHOTO: Snowy Scene at 22 Slate
789 N WATER STREET SUITE 200 | MILWAUKEE, WI 53202 | 414-226-4535 | FRED-INC.COM