Community-minded management is in demand

Real Estate Weekly, Feb 16, 1994 by Marcia Taranto

It has always been the philosophy of Taranto & Associates that the properties we manage directly reflect the communities of which we are a part. As I continue to live and do business in New York City, I see a revitalization that provides opportunities that we in the real estate industry can utilize to improve ourselves, our properties and our communities.

An article recently published in The New York Times, titled "Residential Real Estate Market Appears Headed for a Recovery," suggests that after several difficult years, real estate prices in the New York area are levelling off and sales are making a comeback. The increase in sales activity is attributed to a number of factors, including attractive interest rates, motivated first-time buyers, and an economy that most analysts agree is gaining momentum.

In the Annual Review and Forecast Issue of Real Estate Weekly, the majority of articles from leading real estate professionals highlighted themes of recovery and an upswing in the real estate market. At Taranto & Associates, we have experienced a substantial increase in both commercial and residential property sales, and have added several new properties to our growing management portfolio.

Signs of revitalization are cause for celebration and also for reflection. The market has changed, and the years from 1989 to 1992 have had a profound impact on the direction and focus of both real estate professionals and the clients we serve. Four years of the slowest economic growth in 30 years have tested our metal and brought us together in search of new and better solutions.

Last month the economy grew at a faster rate than it has in the previous 5 and a half years. JFK once said that "a rising tide lifts all boats." A comforting thought, if the boats can float. Rising out of this prolonged recession, we can't leave people or valued institutions behind. We must see to it that this period of economic recovery carries with it the promise of healthier communities and a stronger real estate market.

Real estate professionals who demonstrate a concern for the community, backed by community-minded management strategies, are in demand by owners looking for a superior quality of life.

In a recent survey of top real estate management companies, Taranto & Associates is described as a "socially-minded company," in part, because we have never forgotten that the buildings we manage exist in a broader context, a context of people and the community. Well-managed properties are magnets for hard working people who in turn attract the kinds of businesses and services that build solid communities. It is the existence of these healthy communities that provide the environment in which our properties can sustain themselves and retain their values.

Recently, I was invited by Roy Innes, National Chairman of the Congress of Racial Equality (C.O.R.E.), to participate in the Martin Luther King Holiday Seminar to discuss "A prescription for change in urban communities." Together with Earl Caldwell, Frank Machiarola, Michael Myers, Herb London, Carl Rodney and Mayor Sharpe James, we addressed issues that most affect the quality of life in America's cities.

From my perspective as a real estate specialist with almost two decades of successful hands-on experience, I discussed the importance of strengthening communities using the same principles I apply to the management of properties. Emphasis is placed on sound financial planning and budget management, preventive maintenance that wards off emergencies, and direct, effective communication. Sound management is the same whether it is applied to communities or the individual properties that comprise them.

In this decade of change and renewal, we must join the owners we serve and take a more proactive approach with respect to issues that impact our city. We recommend that board members, shareholders and tenants become involved with local homeowner associations, school boards, and neighborhood organizations that are dedicated to furthering the health and prosperity of the community.

The value of a property is inextricably bound to the character of the community in which it is located. Understanding this relationship, many partnerships among property owners, entrepreneurs and community organizations-have succeeded in building better neighborhoods. Local community watch programs are a good example of how residents and law enforcement personnel can combine their resources to reduce violent crimes and deter acts of theft and vandalism. Business improvement districts join local enterprises and property owners in an effort to upgrade their neighborhoods.

As part of our comprehensive management, we provide our buildings with practical safety information and recommend procedures to maximize the security and comfort of the residents. We furnish information about local social service agencies, law enforcement groups, and neighborhood associations that take aim at the social problems in our city.

We stress the importance of unity and purpose in management. Most recently, in the neighborhood in which I live, several Block Associations joined forces and succeeded in keeping an X-rated video store from opening its doors to business. Clearly, the existence of such a store would have damaged the character of the neighborhood and severely undermined property values.