slogo2.gif (2039 bytes)

A Company Overview of Cornerstone Properties, Inc.

Cornerstone Properties, Inc. and its affiliates provide five (5) major categories of services: property management, asset management, construction services, investor services and partnership administration, and real estate investment banking.

Property Management
Asset Management
Construction Services
Investor Services and Partnership Administration
Real Estate Investment Banking

 

Property Management

Cornerstone's property management division generates the largest single component of Cornerstone Properties, Inc.'s revenues. As of June 30, 1998, Cornerstone managed approximately 25 properties located in nine states. Approximately 80% of the properties are controlled by affiliated entities. Cornerstone manages both conventional and affordable housing projects, including projects with government subsidized mortgages or rent subsidies, or which participate in such governmental programs.

Cornerstone performs all of the day-to-day services necessary to manage a property - all accounting functions, including rent processing and collections, accounts payable (including mortgages, taxes and insurance), payroll, and financial reporting. Cornerstone acts as rental agent, develops and implements marketing programs, and resident relations services. Cornerstone oversees routine maintenance, including replacement of refrigerators, carpeting, and similar items. Cornerstone also arranges insurance for the property. These services are performed pursuant to management agreements between Cornerstone and the entity which owns the managed property. The agreements provide for fees to Cornerstone based on percentages of the rent collections from the managed properties.

Asset Management

The asset management staff provides strategic planning for operation and capital improvements of managed properties. The asset management staff reviews annual operating budgets and establishes individual objectives for each asset. The asset managers monitor the property management in implementing the budget and achieving the stated objectives. The asset managers also supervise the preparation of asset reports for limited partners.

The asset management staff makes all determinations with regard to refinancing and sales of the managed assets, and prepares all proposals to limited partnerships with regard to restructuring and recapitalization plans, and supervises the implementation of those plans. The asset managers are also responsible for developing and monitoring property and casualty insurance plans for the assets, and for managing the assets' relationships with mortgagees.

In most cases, the partnership agreement for the entity owning the real estate provides for the general partner to provide asset management services based upon a set fee or reimbursement of costs.

Construction Services

The construction services division, CP Construction Services, LLC, assesses the physical condition of assets, creates specifications for necessary work, bids and places construction contracts, and implements major rehabilitation programs. This division commences a rehabilitation process by reviewing the owner's objectives and conducting on-site exterior and interior inspections, then develops a detailed plan, including cost projections and completion schedules. CP Construction Services supervises construction on-site to ensure that work is completed efficiently and properly. Fees are generally based on the dollar amount of each project or cost reimbursement.

Investor Services and Partnership Administration

Investor Services and Partnership Administration provides investor relation services, including periodic reporting, and partnership accounting services. This entails responding to inquiries from limited partners, communicating timely and accurate information and mailing cash distribution checks. Investors are provided annual financial statements. The investor servicing staff oversees the preparation of the partnership tax returns for the partnerships served, and distributes Schedule K-I's for the partners and various state and federal taxing authorities.

Real Estate Investment Banking

This division directs Cornerstone's acquisition and restructuring efforts. Real Estate Investment Banking is responsible for identifying potential transactions, evaluating the financial impact of potential transactions, negotiating the terms of transactions, and coordinating due diligence and closing. These efforts could involve conventional mortgage financing, government-insured mortgage financing, tax-exempt mortgage revenue bonds, tax-exempt bonds, short-term financing, or equity participation. Compensation is earned by negotiated fees, fees based upon a percentage of realization, fees contingent upon the success of a particular transaction, or fees governed by the provisions of a particular partnership agreement.

 

Back to
Cornerstone Properties

Company Information


Cornerstone Properties, Inc
833 West Main Street
Carmel, IN 46032
Tel: (317) 574-4700
Fax: (317) 574-4701
TDD: 1-800-948-0627
WB01343_.gif (599 bytes) Cornerstone Home