PROPERTY RESOURCES CORPORATION

PROPERTY MANAGEMENT MITCHELL-LAMA CASE STUDY

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PRC MANAGEMENT CORPORATION MITCHELL LAMA CASE STUDY

PRC Management has managed a 1,662 unit Mitchell-Lama property since 1995. We took on this assignment on short notice following investigation of wrong-doing by previous management firm. In our time as manager, we have made considerable improvements to the management and efficiency of the property and have established an outstanding relationship with the Board of Directors.

MANAGEMENT & TENANT RELATIONS

Continue to maintain zero vacancy rates due to vigilant maintenance of waiting list and prescreened applications as well as expediting any and all apartment repairs necessary for an immediate turn around; Planned and orchestrated numerous elections for Board of Directors seats, including the supervision of several contested and/or disputed elections; Regularly attend court hearings for non-pays as well as the over 60 holdover cases begun due to subletting, succession rejection and nuisance issues; Negotiated all smaller retail leases and lease renewals for in-house spaces; Reviewed all retail collections and arrears for tenants and established programs to collect all receivables and monitor compliance with lease obligations; Negotiated exclusive brokerage agreement with successful responding bidder; Worked closely with Board, unit Owners and outside counsel to prepare a plan for possible Privatization of a large complex; Coordinate and attend special board meetings on a weekly basis and track continuous changes to the red herring prior to submission; Hold periodic weekend and evening meet the manager and succession seminars sessions; Created partnership with various social service providers (VNS, Dew York Downtown Hospital, and Hamilton Madison House) to procure the addition of a full-time, on-site social worker. Hold monthly partnership meetings to coordinate the request and receipt of various grants for groups (including seniors).

OPERATIONAL COST SAVINGS

Continue to competitively bid all jobs within DHCRs required specifications while maintaining good relations with all vendors; Monitor utility usage and participate in discussions and studies of cost-saving measures; Established and monitored annual operating budgets as well as long-term capital budgets. Reviewed all unpaid bills and negotiated settlements of dozens of disputed bills with vendors, suppliers and professionals over a fifteen year period; Over the last several years, conducted site inspections regarding the deterioration of the garage and performed various interim repairs for safety reasons; Successfully conduct and complete annual inspections, Income Affidavit submissions, SCRIE entries, DRIE entries, STAR abatements, etc;

FINANCIAL ASSET MANAGEMENT

Continue to monitor the investments of over $19,000,000 in reserve funding used to pay for all capital work on the property; With the certiorari attorney, expedited the receipt of several hundreds of thousands of dollars in J-51 benefits for capital work on the property; Solicited responses for RFP for exclusive retail leasing for 40,000 square feet of occupied retail space; Successfully negotiated with grocery store to recoup almost $700,000 in back real estate escalations owed;

PRC MANAGEMENT CORPORATION MITCHELL LAMA CASE STUDY

EXECUTIVE BIOS FRANK LINDE CEO
Under Mr. Lindes leadership, Property Resources Corporation has developed and constructed over 5,000 housing units including low-income, middle income and luxury condominium units. Prior to working in real estate, Mr. Linde worked on Wall Street as an investment banker at various firms including Bear Stearns and Drexel Burnham Lambert. He is a licensed Real Estate Broker and is a member of the Real Estate Board of New York. Mr. Linde is an active member of numerous other professional, civic and charitable organizations including serving as Chairman of the New Castle Housing Advisory Board, Vice President and Executive Board Member of the Westchester Chapter of the American Jewish Committee, as well as its National Board of Governors. Oversaw RFP for management of 1,000 car garage including an obligation by bidders to provide over $3 million of necessary construction improvements to the facilities;

CAPITAL IMPROVEMENTS
Upgraded all laundry rooms, replaced intercoms, installation of income generating rental storage lockers, upgraded the plumbing and heating systems and oversaw program to upgrade the entire common area of the property. Many of the items above necessitated the separate oversight of asbestos removal to comply with all regulations; Completed a feasibility study and subsequent RFP for a new boiler plant installation to replace Con Edison steam system for an expected savings of $1,000,000 per year; Conducting a NYSERDA energy survey of heat, hot water and electrical systems to uncover various opportunities for improvement. Completing upgrades will directly result in receiving various grants in excess of $2,000,000; Supervised planning, design & bidding of construction work for capital projects including roofs, sidewalks, public corridors, windows, flooring, building security and faade work;

DAVID KHAZZAM VICE PRESIDENT

Mr. Khazzam is the senior executive responsible for overseeing the day-to-day operations of PRC Management. Mr. Khazzam has over twenty years experience in real estate management. Before joining PRC, he served as a senior management executive at several mid to large real estate firms, including a tenure with the Related Companies. Mr. Khazzam University. holds a Bachelor of Business Administration degree in Finance from Hofstra

FRANK LINDE

DAVID KHAZZAM

Property Resources Corporation 240 Madison Avenue New York, NY 10016 Tel: (212) 585-0500 Fax: (212) 213-0667 www.prcny.com