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Residential housing markets across the country are booming, and nowhere is this more visible than in New York. Developers are looking beyond traditional neighborhoods in Manhattan to the outer boroughs in the hopes of finding accretive deals in a challenging acquisition environment. Expanding into new neighborhoods however brings new challenges for property owners who struggle to maintain multiple properties in different areas.
As a result of an increased portfolio, more often than not, developers and investors will hire a fee-based property management company. These companies are incentivized only to maximize revenue, leaving the structure and its residents at a disadvantage.
One developer, however, is doing things differently and residents are reaping the benefits. Sherwood Equities, the developer of several iconic luxury condominium buildings in New York, has established a successful building management model. Their philosophy? Manage it yourself.
Sherwood manages over 300 New York units and maintains condo and rental properties across Manhattan and Brooklyn, including The Coronado at 155 West 70th Street near Lincoln Center, 500 West 21st Street along the Highline, 1600 Broadway in Times Square, and several prime Brooklyn rental properties in Park Slope, Fort Greene and Clinton Hill.
While typical condo developers build, sell, then move on, Sherwood intentionally retains a number of apartments, retail space and parking for long-term cash flow. Sherwood works towards maximizing appreciation and doing this requires intensive management. While high quality, hands on management is not a profit generator for the company, it makes sense in their context of enhancing an owned asset.
Sherwood Vice President John Katz explained, “As we expand our portfolio to include several prime Brooklyn townhouses, the economies of scale in management diminish, but we feel it is the only way to ensure the highest building standards and to maximize our long term investment.”
Sherwood’s unique management style is a model on how other companies can manage growth in the marketplace while staying committed to their residents.