EDGE Communications from the
Portfolio Management Frontline
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MAY 2023
CREA UPDATE AND A LOOK TOWARDS THE FUTURE By: Jeff Whiting, Chairman & CEO
At the end of each year, I look back at the months that filled it and reflect on what occurred - and just as importantly, what didn’t occur. I then look forward to the next year and plan as best as one can for what could happen and think about things that might not happen. Inflation & Rising Interest Rates 2022 was a year that we probably should have seen coming, or at least we did see coming but didn’t want to. Inflation was bound to happen and the traditional response from the Federal Reserve has always been to raise interest rates. It wasn’t a matter of if, it was a matter of when. And then how much interest rates would rise.
out in January, was “a swing and miss”. But at least we were in good company with most of corporate America. We thought the Fed would raise rates, but not by the pace nor by the amount. Transitioning Last year can also be summarized as a year of transition in a few ways: • We continued to transition from “work from home” to an in-office/ flex schedule. • CREA transitioned into a mature company. Knowing where we are in the industry and knowing that we can’t be all things to all people. • It was an unusual year. But as a mature company, we’ve seen unusual years and events before...
It would be fair to say that regarding the 2022 projections that we laid
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EMPLOYEE SPOTLIGHT: MATT KESMODEL
PROPERTY IMPACT STORY: ENDICOTT SQUARE
Matt Kesmodel, SVP, Construction Management, has not always been involved in real estate development. Originally practicing law, he has a unique path to his current role at CREA. Read more about Matt...
Encompassing 61 affordable homes, Endicott Square has taken a structure which found itself underutilized by the community and transformed it to serve dozens of people and families.
“If it wasn’t for this program, I don’t know where I would be today with my family,” Read more...
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P2-3 PROPERTY IMPACT STORY P4-5 EMPLOYEE SPOTLIGHT, CONT. P5 FOUNDATION UPDATE
P6 CREA UPDATE, CONT. P7 ANNUAL REPORTS P7 CREA IN THE NEWS
P8 NEW HIRES P9 AWARDS AND RECENT EVENTS P9 GOOD-TO-KNOW INFO
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PROPERTY
IMPACT
STORY:
ENDICOTT
SQUARE
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areas that had fallen into disrepair or disuse. The mission of that project is reflected across Broome County even to this day; a perfect example of this commitment exists in the refurbishment and repurposing of
contractor Lockheed Martin, there was a high-level of job and economic security in the mid-20th century which led to the area being coined the “Valley of Opportunity”. Though a variety of factors caused a gradual downturn of
“If it wasn’t for this program, I don’t know where I would be today with my family,” said Rashonda Kareem, Endicott Square resident. “It has taught me a lot and to not be afraid to ask for help.” In an area of New York known as the Southern Tier, nestled alongside the Pennsylvania border, lie the communities encompassed within the Binghamton Metropolitan area. Located in a large valley near the joining of the Susquehanna and Chenango rivers, the story of this area has not always been a linear one. Having experienced alternating eras of great prosperity and economic insecurity, its path offers a fine example of the impact that public service and community cooperation can achieve. In one period of economic downturn, a public service project by the name of Facing the Future committed itself to revitalizing local
an underutilized school building into the Endicott Square Apartments in Endicott, NY.
“Endicott Square exemplifies the
these steady jobs in Endicott and its neighboring communities over time,
community-wide impact that accessible, affordable housing can have.” - Neala Martin, SVP & Originator
communities like Endicott Square Apartments are keeping the spirit of the moniker alive. Safe and consistent homes function as a hub for opportunity and open paths to employment, personal development and fulfillment that are otherwise unavailable. At Endicott Square, 15 homes are intended for those experiencing homelessness and domestic violence, offering safety and
Developer Housing Visions
has a deep understanding of the area they’re serving through Endicott Square, being founded and based in the surrounding region of the state. With dozens of properties nearby, Housing Visions have proven themselves to be indispensable community advocates over the years. Historically, and due to investments by technology giant IBM as well as military
Endicott Square Apartments is the result of a complete transformation of an underutiliized historical community space. The Henry B. Endicott School will now encompass 51 affordable homes with support for those facing homelessness. The local YWCA is providing comprehensive services for this population.
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services specifically to support them through and out of their circumstances. In addition, the local chapter of the YWCA is using its long-involvement assisting those experiencing homelessness to serve these residents, as well as the entire Endicott Square community. Having the expertise of a community- oriented organization like YWCA of Binghamton and Broome County to lean on in difficult times will only bolster the ability of these residents to seek out and succeed in new opportunities. Further, the YWCA will utilize longstanding partnerships with other organizations in the area to connect those with specific issues related to addiction, crime and beyond with those most suited to help them. With Endicott Square at the center, this network of community cooperation will serve to strengthen bonds and create meaningful change.
Housing Visions has also ensured that residents of Endicott Square enjoy amenities and features designed with quality of life in mind. These include: • 7 homes designed to be fully accessible and adapted for those with mobile impairments • 3 homes designed to be fully accessible and adapted for those with hearing and/or vision impairment • Dedicated case manager delivering individualized care plans • Onsite laundry •Playground Endicott Square is an affordable housing community made possible by investments from, among others, Prudential Financial. Through Prudential’s contribution to community development and the creation of affordable housing, homes like Endicott Square are being made possible across the country.
Over time, every community is faced with challenges that test bonds and strain resources. Though inevitable, the strengths inherent to a cooperative and caring community are key to overcoming such challenges and coming out of the fray even stronger. Those who call the Binghamton Metropolitan Area home can be certain of their neighbors’ ability to provide transformative aid in times of need, as has been done for decades. CREA is proud to support the latest of these efforts in the form of Endicott Square Apartments. “I really love this program and I don’t know where I would be without it.,” said Shaheita Bing, Endicott Square resident. “They help my daughter and I a great deal and I’m very grateful.” Read more Property Impact Stories Online >>>
Besides the support outlined above,
“Housing Visions is elated to utilize our housing and community revitalization expertise to transform the formerly underutilized Henry B. Endicott school into Endicott Square” – Ben Lockwood, President & CEO, Housing Visions
A shot of the refurbished exterior of Endicott Square Apartments in Endicott, NY.
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EMPLOYEE SPOTLIGHT: MATT KESMODEL, CONTINUED ...continued from page 1
You have been with CREA for a very long time and specifically working in the construction group for a very long time, but you have an interesting background. Tell us a little about your career prior to and then also at CREA. I worked for family businesses until I graduated from law school. Afterwards, I clerked for two judges and practiced law for a couple of years. I became interested in construction and spent time working for a custom home builder, a design/ build contractor specializing in refrigerated distribution facilities, the construction arm of a real estate investment trust (REIT) that invests in commercial, healthcare and industrial properties, a LIHTC developer and a community action agency. I came to CREA in 2010. I started in Construction Management, explored opportunities in both Asset Management and Credit & Underwriting before returning to Construction Management (which I consider home). You used to be located in the Indianapolis office for a long time and relocated to Florida where you now work remotely. How do you manage to stay connected to your team from a distance? Staying connected is essential. Like others at CREA, I rely on Outlook, Teams, CREANet, CREAWeb and my
you aren’t visiting our properties and reviewing construction draws?
iPhone to stay in the loop. CREA’s IT department does a great job of helping me stay connected. The COVID pandemic affected a lot of industries in a lot of ways. The construction industry was especially affected causing delays and increased costs. How has CREA fared through the pandemic as it relates to the construction phase of the portfolio? CREA’s development partners have been instrumental and successful in procuring placed-in-service extensions and additional credits as needed to weather COVID. CREA continues to navigate through the initial/lingering impacts of COVID which include the following: • Construction stoppages and pauses (early-stage shelter-in- place orders) • Reduced productivity due to pandemic-driven protocols and conditions (jobsite mitigation measures) • Manpower shortages • Manufacturing and supply chain issues (initially numerous basic building materials but now primarily electrical components, especially switchgears)
Nothing too exciting. I spend most of my free time with my wife, family and friends. I enjoy exploring Florida, fishing, hiking, grilling, dining and herding our two cats. The balance of my time is spent trying to avoid the heat during most months in Florida. We installed a pool last year which definitely helps.
The Kesmodel cats in their natural habitat.
I am sure you see A LOT while doing construction site visits and meeting with contractors. What’s one of your favorite stories? Construction site visits are generally run-of-the-mill. Asset Management site visits are a different story. I was once invited to have dinner with a resident at a property in Michigan (not sure the state is important, but it might add some flavor). My favorite memories are of meeting residents that are appreciative of their homes and residents that are working towards acquiring their own home.
• Increased
costs
due
to
manufacturing,
transportation
and availability issues
Tell us a little about yourself personally and what you do when
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Random Questions & Awesome Answers
Greatest irrational fear? I think it’s a tie between the following: i. Acrophobia (fear of heights). I once fell from a second story, broke my collarbone and lost consciousness (my boss thought I broke my back), so maybe this isn’t irrational? ii. Trypanophobia (fear of injections) I’m never afraid of getting an injection, but I have exhibited vasovagal response (passing out) on several occasions after receiving an
injection.
If you could have dinner with anyone, dead or alive, famous or not, who would it be? My parents when they were younger. My dad is 91 and not in good health. My mom is 86 and suffers from dementia. I miss family dinners at the lake when I was growing up.
What is one bucket list item that you have yet to check off your list? Winning the lottery. Favorite cereal as a kid? And as an adult? Meat and meat (I grew up on a lake and used to catch catfish for breakfast)
CREA FOUNDATION UPDATES & MILESTONES Following the inception of the CREA Scholars program last year, CREA Foundation is proud to announce our second university partner: California University State Northridge! As a result of our partnership with CSUN, we will be admitting 20 new students to our scholarship program this fall for a grand total of 30 CREA Scholars studying across Indiana University Purdue University Indianapolis and his company’s nonprofit: “As a proud CSUN alumnus and CREA Foundation board member, it is a great privilege to be a part of its expanded commitment to education for students within historically disadvantaged communities.”
With over 20 corporate sponsors contributing, including Presenting Sponsor CRP Affordable Housing & Community Development, the event was a day filled with fun and a reaffirmed commitment to help improve access to education for students who need it most. While CREA Foundation relishes the opportunity to look back at the progress it has made so far, events & partnerships like these help keep our view aimed towards the future of our work to democratize higher education.
To celebrate this new partnership and the impact it will bring to students at CSUN, the Foundation recently held its second annual Scholarship Golf Outing at La Cañada Flintridge Country Club in Los Angeles, California.
and CSUN. Alumni and support Charles Anderson, Co-President of CREA, LLC, had this to say about the partnership between his school
Jeff Whiting, Chairman and CEO , speaks during the Awards Ceremony and Reception following a day on the green.
Students from California State University Northridge joined the event as volunteers, and two students shared their stories.
Arvetta Jideonwo, Excecutive Director of CREA Foundation , opens the event with Jeff Whiting and CRP Affordable’s Paul Salib.
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CREA UPDATE AND A LOOK TOWARDS THE FUTURE ...continued from page 1
Early on, we experienced 9/11 together. There was the 2008 Financial Crisis and the Great Recession (does anyone remember TARP and 1602 Exchange?). And lest we forget, a global pandemic. So, a 500 basis point increase in the Fed funds rate in just a little over 12 months, while “unprecedented” is a significant transition - it isn’t the end of the world as we know it. Being Present If 2022 was a year of transition, then 2023 is a year of being present: being present at the moment, with others, and yes, being present in the office. Although we have seen significant improvements in work-life balance,
we have not seen an increase in productivity. Additionally, what I believe we have unfortunately seen is also a change in communication and interpersonal skills. And I do not believe this change is for the better. To use an old business school phrase, “Not all change is progress.” Nothing can substitute in-person conversations and interactions. It has been said, 80% of communication is nonverbal. If we consider video calls in which most participants are on mute for portions or even the majority of the call, are entirely off camera, or are multi-tasking (which can be considered a phrase for doing two things equally average), you can see where these communication
skills and efficiencies are at a decline. This common scenario of today’s work environment is far from being present at the moment. Where We Go (& Grow) from Here As CREA continues to grow as a mature company, growth isn’t just about equity volume, revenue and profit. Growth comes from collaboration. And collaboration requires trust. And trust needs to be established and nurtured in person with others. CREA is not average. CREA was established to be something a little bit different. Focused on others. And to do that, we need to be present.
Jeff Whiting (left) with CREA Co-Presidents Charles Anderson and Tony Bertoldi during last year’s CREALive event.
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FOUNDATION & SOCIAL IMPACT REPORTS
CREA has taken great efforts to place more and more emphasis on our social impact, outreach and philanthropy efforts in recent years. We are proud to present two annual reports which outline the impact of these efforts: one for corporate social impact and one for the achievements of CREA Foundation in 2022. These annual reports can only do so much to highlight the incredible experiences
of each individual CREA employee in our many volunteering outings during the year, or the amazing personal impact felt by the CREA Scholars as a result of our donors’ generosity. However, they serve as an important reminder of the tangible effects that a shared commitment to improving the lives of others through affordable housing, volunteerism and advocacy can have on communities across the
country. As we approach the halfway point of 2023, this commitment has never been stronger. It’s our sincere hope that next year’s reports will serve as proof of our ever-deepening support of charitable causes and social impact alike. You can access the reports by clicking the photos below or by following these links: Social Impact Report CREA Foundation Report
CREA IN THE NEWS: CRITICAL CONVERSATIONS
role here In addition, Chairman & CEO Jeff Whiting was featured in an article covering the impact of Silicon Valley Bank on the affordable housing industry, which can be found here.
of the Upper West Side’s 235 West 107th Street into a shining example of affordable housing, offering 68 affordable homes and creating permanent supportive housing for those facing the prospect of homelessness. “We applaud the many development and financing partners for their contributions as well as their commitment to providing... housing for New Yorkers...” Read Neala’s full quote and the entire story here.
Affordable Housing Finance Following Mindy Rex’s appointment as Managing Director, Originations at CREA, she was featured in AHF’s People on the Move article covering personnel changes across the industry in March. Subscribers can learn more about Mindy and her new
Real Estate Weekly Neala Martin, SVP & Originator , was quoted in Real Estate Weekly’s article covering the redevelopment
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GET TO KNOW OUR MOST RECENT NEW HIRES!
Laura has a passion for volunteering and most recently served a four-year term as a City Councilor for the City of Beaverton.
Bryan Albertelly Financial Analyst –
Rachel Osborne Fund Analyst Indianapolis
Development Indianapolis
Andrew Kemen Asset Manager – Stabilized Indianapolis
Bryan graduated from Tulane University’s School of Business with a BS in Finance. Outside of work, he has spent several years working in the outdoors with youth as a youth conversation corps leader.
Rachel is from Indianapolis, IN and recently gradated from Xavier University with a BS in Mathematics and an MS in Accountancy. Before joining CREA, Rachel worked as an auditor for Blue & Co. Outside of work, she enjoys travelling and working.
Andrew has his Bachelor of Science in Business Economics from The University of Dayton. He has 10+ years in the commercial real estate industry having previously worked for a national real estate investment trust (REIT) and, more recently, a local property management firm. Andrew is an avid sports fan and is a season ticket member of the Indianapolis Colts. Outside of work, Andrew and his wife enjoy cooking, traveling, and exploring the outdoors.
Cody Smithers Fund Analyst Indianapolis
Dee Bauer Senior Asset Manager Atlanta, GA
Cody is a recent graduate of Indiana State University with a degree in finance who is aspiring to help CREA in any way possible so that we may achieve our goals. He is thankful to be part of the FUNd Management team!
Following a stint in executive corporate positions, Dee transitioned to work with low to moderate income families. This included working with families and children to break the cycle of poverty and begin to renew their lives through education and employment. Through this environment, Dee began to search for other ways to make a difference and found her way into the affordable development and property management industry. Always thirsting for more knowledge in the Affordable Housing Industry, her self- describing quote is “I love everything from dirt to disposition”.
Laura Mitchell Asset Manager – Stabilized Portland, OR
Joe Hanger Financial Analyst Indianapolis
Joe is an IU Kelley School of Business graduate with a degree in Business Economic and Public Policy Analysis. He has previous work experience at KPMG and in software sales. Joe and his wife Molly recently became homeowners and their goldendoodle, Hugo, is happy to have a yard. Joe enjoys traveling, the outdoors, cooking, and cheering on the Indiana Hoosier’s basketball team.
Laura has 16 years in the real estate industry, a BS in Communication Studies from Portland State University and is a LEED Green Associate. Her real estate experience spans from managing residential, commercial, and retail properties to asset management and helping design city wide policies that allow for the purchase of homeless shelters to the new construction of art centers.
Check out our full team on our website!
CREALLC.COM
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AWARDS & CELEBRATIONS
Harmony Gardens, NAHRO Award of Excellence Winner Headed up by Knight Development, Harmony Gardens serves to transform properties that are aging and declining low-income neighborhoods. Offering 172 affordable homes in the Alexandria, LA area, Harmony Gardens is a truly exemplary development.
Mary D. Stone Apartments, AHF Mag Reader’s Choice Winner Mary D. Stone in Auburn, MA, was voted the winner of the Historic Rehab category and the Overall Winner in Affordable Housing Finance’s 2022 Readers’ Choice Awards. The development team led by Pennrose transformed a beloved but outdated local asset into modern affordable housing for seniors, ultimately creating 45 affordable, accessible and high quality homes.
PROPERTY GROUNDBREAKING AND OPENINGS • South Suburban Senior Housing Ribbon Cutting – Chicago, IL, 120 Affordable Homes • Parkside at Tarkington Grand Opening – Indianapolis, IN, 60 Affordable Homes (pictured below)
• Brush Park Apartments Groundbreaking, Detroit, MI, 53 Affordable Homes • MLK on 2nd Groundbreaking, Detroit, MI, 33 Affordable Homes • Canaan Crossing, Madison, GA, Ribbon Cutting 60 Affordable Homes • Fairway Village Ribbon Cutting, Dallas, TX, 250 Affordable Homes • St. Lucas Lofts Groundbreaking, Indianapolis, IN, 48 Affordable Homes • Village Premier Groundbreaking, Fort Wayne, IN, 208 Affordable Homes • Annika Place Groundbreaking, Traverse City, MI, 53 Affordable Homes Stay up to date with all our events by following this link!
We are thrilled to celebrate the 28 promotions which took affect April 1st, a small token of gratitude for the incredible work displayed by our colleagues across the organization. Portfolio Management is especially proud to congratulate the 10 (!) • Amanda Dennison • Molly Snyder • Joe Crawley • Hannah Goldstein • Alicia Turner • Shannon Dohnam • Ben May CELEBRATING 2023 PROMOTIONS AND TITLE CHANGES promotions which took place in our own department, a result of the amazing work ethic across our team! Congratulations to the following: • Jessica Birchler • Matt Holmes • Ben Riesmeyer
CREALLC.COM
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