Adam Marcus Hendry and the team at Tzadik Management provide essential services during the Coronavirus pandemic.
Tzadik Management has been developing communities across the country since before the 2008 recession. Tzadik Management’s Adam Marcus Hendry explains that the company’s major focus is to create communities that are ideal for citizens, with the perfect combination of life, work, and play. However, during the Coronavirus pandemic, Mr. Hendry and Tzadik Management have taken a shift in priorities.
“Right now, we’re focused on keeping our residents informed and aware,” Adam Marcus Hendry says. “We’re also offering activities for residents and are actually hiring new employees to aid our resident communities. We refuse to let our Core Values slide.”
Adam Marcus Hendry explains that Tzadik Management has been keeping 100% of the staff physically on-site to help in case of emergencies and is even providing new employment opportunities in all regions. The company’s corporate site in Miami is also still showing up to work, helping set the example for teams onsite. However, Mr. Hendry says the company has had to implement a number of social and sanitation measures to remain open during these times.
“We want our residents to feel safe communicating with us whenever needed. That’s why we always keep at least 6 feet of distance between every person, are constantly sanitizing, and are offering a number of virtual communication options, so residents never have to feel at-risk,” Adam Marcus Hendry says. These distancing measures extend to prospects as well, with the company not shying away from physical tours.
Tzadik Management | Adam Marcus Hendry
Tzadik Management’s ability to accommodate residents without adequate technology is evident by their door-knocking procedures. “Our team knocks on doors, while maintaining adequate social distance, to check on residents and provide services such as rent collection and work orders that they otherwise wouldn’t have been able to convey,” says Adam Marcus Hendry.
The management company provides all of its office visitors with sanitizer and masks. It is also providing a number of virtual events for its residents in an effort to keep them entertained, safe, and communicating throughout the pandemic. Adam Marcus Hendry and his team have created a virtual movie night, Facebook group chats, and a number of other social distancing events to keep people engaged and involved in their communities.
Adam Marcus Hendry and Tzadik Management have been praised for their Core Values, and during the pandemic, these values are being shown more than ever. Mr. Hendry has even provided a small internal Tzadik stimulus “Hero Pay” to help his employees during the financial difficulties of the COVID-19 pandemic.
The company’s Core Values include Building Lasting Relationships, Never Stop Growing, Keeping Each Other Informed, Succeeding Together, Being Financially Responsible, and Making It Happen at all times. The company has kept these values at the forefront throughout the pandemic, and Adam Marcus Hendry states that they’ll continue to do so.
“We encourage our residents to contact us whenever they have concerns because we will always do our best to help,” Mr. Hendry concludes. “We’re all in this together, and at Tzadik Management, we refuse to leave anyone in the dark.”
CEO of Tzadik Management, Adam Marcus Hendry has 15 years of progressive management experience in real estate and property management. He has led his company toward a number of significant milestones in 2019. With a new year and new decade upon us, Adam Marcus Hendry reflects upon the past year and is projecting a fine-tuned game plan to make 2020 even more successful than the last.
A fundamental goal of most businesses is to grow incrementally year to year, but few see as much success in this realm as Tzadik Management. In 2019 alone, the firm grew by over 100%! One major factor that contributed to this growth was the acquisition of several communities in the Midwest and Texas. The firm entered three new states: Sioux Falls and Rapid City in South Dakota, Houston in Texas, and Omaha in Nebraska. In total, Tzadik Management now owns and manages approximately 9,000 units in Florida, Georgia, Texas, South Dakota, Nebraska and shortly North Dakota.
Adam Marcus Hendry isn’t slowing down anytime soon; the CEO says he plans to expand the company by at least twofold in 2020.
Furthermore, the company raised over $60,000,000 in equity in 2019, a truly remarkable sum for the industry and a testament to Adam Marcus Hendry’s incredible business and finance acumen. As if that weren’t enough to celebrate, the company possessed over $250,000,000 in total Capital as of Dec. 31, 2019.
To meet increasing demand and ensure his 200+employee workforce has ample space to do their magic, Adam Marcus Hendry invested in new office space in 2019 as well. This will be particularly helpful to accommodate growth in residential and commercial markets, as Tzadik Management began due diligence for commercial real estate acquisitions with the intent to expand into the commercial realm in the near term.
Adam Marcus Hendry
Adam Marcus Hendry is renowned in his field for his intellect, drive, innovation, and company culture management style. Based in Miami, Florida, Tzadik Management has managed over $1 billion apartment complexes and nearly 20,000 units in more than 20 states since its 2007 inception. More recently, Tzadik Management has acquired more than 2,000,000 square feet of commercial real-estate in Florida and South Dakota.
An avid practitioner of the “continuous improvement mindset,” Adam Marcus Hendry continues his commitment to “building performance-focused organizations through the development of people, processes, and culture” with the goal of moving his company toward a bright future.
Tzadik Management’s Regional Vice President, Debbie Wheatley, who has thrived in the Houston Market for years is excited to get started. “More than anything I am just excited to bring the unique culture and engagement I have seen in my time with Tzadik,” said Wheatley. “We have been given a chance to make a difference in our community and Redefine how these communities operate moving forward”.
The 5-community portfolio is listed below:
- Crossings at Jackson Square – 8030 Airport, Houston, TX 77071
- Crossings at Bradford Place – 8300 W Airport, Houston, TX 77071
- Shadowtree – 9475 W Sam Houston Parkway, Houston, TX 77099
- Cresent City – 8501 Broadway, Houston, TX 77061
- Casa Royal – 9445 Concourse, Houston, TX 77036
While Tzadik Management’s recent investment strategy has brought them mostly toward the upper Midwest, Chief Executive Officer Adam Marcus Hendry believes Houston shares a lot of similar attributes that made the Midwest so appealing. “This deal helps us continue to establish our footprint in middle America, where we believe the steady population growth combined with their energy and oil supply should help mitigate the upcoming stagflation,” said Adam Marcus Hendry.
With property values continuing to climb at a rapid pace, Tzadik Management has begun looking into acquiring management companies to continue their growth. “Buying wholesale brings a lot of positives to the table. We believe we can close at close to 20 or 30 percent below market while also jumping the Death Valley curve” said Adam Marcus Hendry. Tzadik Management is also looking into commercial real estate acquisition, with many due diligence projects currently underway.
Adam Marcus Hendry
Tzadik Management is a growing, innovative, and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed over $1 billion in apartment complexes and over 19,000 units in over 20 states. Through excellent management, a focus on company culture, and a tech-driven style of operating, Tzadik management has established a reputation for Building Lasting Relationships.
Chief Executive Officer Adam Marcus Hendry announces that Tzadik Management closed Wednesday on the acquisition of a 248-unit community in Sioux Falls, SD. The newest Tzadik acquisition, Taylors Place, is the 26th community-acquired in the past year in Sioux Falls alone. This is yet another example of Tzadik Management’s big push in the upper Midwest over the past several months, according to Adam Hendry.
At a price of just over $56K per door, Adam Marcus Hendry is excited they are still able to capitalize on these opportunities. “We have closely monitored purchase prices across all markets, and we are thrilled to still be able to get great value in the Upper Midwest” stated Adam Hendry. “It won’t be long before you won’t find anything under $70K a door because of the plummeting interest rates and money printing that will be hitting the markets”.
Adam Marcus Hendry
The management team in Sioux Falls is equally excited for the opportunity. “We have really built a strong culture of employee engagement here since we entered the market,” said Regional Vice President, Tessa Frank. “We are excited to continue building relationships in the Dakotas while driving our Net Promoter Score to over 60% which will, in turn, provide the best possible customer service to our residents”.
Tzadik is a growing, innovative, and driven real estate and property management company based in Miami, Florida. Since its formation in 2007, Tzadik has managed over $1 billion in apartment complexes and over 19,000 units in over 20 states. Through excellent management, a focus on company culture, and a tech-driven style of operating, Tzadik management has established a reputation for Building Lasting Relationships.
At a time where class-A apartment buildings are popping up all over the US, Tzadik Management’s Adam Marcus Hendry urges potential investors to stay away. A closer look into the class-A market shows the bleaker side of all the recent development. “Recent market studies done in primary markets, including areas like Miami and Fort Lauderdale, are showing a tremendous amount of rental concessions, particularly in the newer buildings,” said Hendry. “It’s almost required now that you give away at minimum two month’s rent in addition to the waiving of most move-in costs.”
These rental concessions, used in attempts to quickly occupy apartment homes, allow for the property to lease their apartments at rents not ordinarily attainable in the given market. In some cases, apartments are giving up to 4 months’ rent-free for all new move-ins, effectively turning a $2,000/m apartment into less than $1500/m apartment.
Adam Marcus Hendry believes these concessions are necessary due to the surplus of availability in many primary markets like Miami and Fort Lauderdale. Despite overall population growth in those markets, the surge of development has far exceeded the demand, according to Hendry. “Property management companies are essentially revenue cuffed. It’s almost necessary if the building next door won’t make you pay for several months,” Hendry continued.
So why not just lower the rent instead of giving it away? “These burgeoning rental concessions are done to keep their market rents and NOI high. These “one-time” concessions are put below the line and seen as one-time instances when there is little evidence to suggest they are” said Adam Marcus Hendry. “The profitability of these apartments is now almost completely on life support, only surviving from the dropping interest rates that reduce debt service at the refinance. With all these new buildings popping up, what is stopping the renter from hopping to the next lease up?”.
The answer would be employee culture, engagement, and keeping “A” players on site for years, thus not having to have new faces in the office regularly, according to Adam Marcus Hendry, but he remains skeptical due to the increasing occurrence of renewal concessions. “Our research is showing some pretty substantial renewal concessions at many class-A sites,” said Hendry. “Renewal concessions aren’t new and are typically necessary depending on the situation, but if the renter was given the same or even double the concession at move-in, your NOI becomes a farce. The only defense we have seen that works is to spend the year developing relationships with the residents, so when the renewal comes up, they will stay for a much smaller concession even in the face of many months offered at nearby places.”
Adam Marcus Hendry
All these varying factors are a big reason for Tzadik Management’s recent push to the upper Midwest. “When looking for an opportunity, we closely examine not just population growth, but overall supply,” said Hendry. “Our recent acquisitions in the Midwest allow us to trust our forecasting and projections, mainly because there are less dangerous variables that currently plague the primary markets.”
In October 2019, Tzadik Management’s Adam Hendry sensed the looming economic uncertainty in December of 2018. From it, he made a prediction: “The Federal Reserve will lower interest rates over the next one to two years due to an upcoming recession,” said Hendry.
When rate cuts happen, it forces investors to pump capital into the economy instead of letting it erode away from zero interest rates on savings, that are in fact negative when taxes and inflation are taken into consideration.
Thus, instead of losing money via savings it encourages people to speculate and make poor decisions. Hard to blame the drug addict (investor) when the rehab center (Federal Reserve) is the one supplying the drugs.
Now a year later Hendry’s forecast is accurate. The Federal Reserve has lowered interest rates, not once, but twice already. Adam Hendry believes it will not stop there.
Hendry’s next prediction is that there will be another round of cuts before the end of 2019, bringing the total to three times for the entire year. He thinks the Federal Reserve will cut rates to 0% eventually in 2020 or 2021.
As for the next recession, Hendry says, “Everyone thinks they are preparing for another 2008, but most likely, the upcoming crash will be much different.” He also states, “We have to be prepared for a Melt-Up, not a Melt-Down.”
The 2008 recession was an acceleration in the massive decline in values. All investment channels saw a drop. Like common stocks, corporate bonds, and real estate.
Due to the nation’s risk of a total breakdown in industry and finance, the 2008 recession was a “Meltdown.” If Adam’s vision of the future is accurate, as the latter one was, then America’s future recessions will be a “Melt-up.”
Adam Marcus Hendry
A “Melt-up” is a sharp and unexpected rise in the price of an asset class, like real estate. However, while the price or rent in real estate may go up 1-2%, expenses like taxes, insurance, utilities, and materials could go up 5%+ annually. This Stagflation is going to find many people scratching their heads how they are upside down on their lifestyle while prices didn’t drop.
Due to a “Melt-Up” and potential Stagflation 1970s projection, the company repositioned itself strategically. Tzadik Management decided to head to the Upper Midwest. Why the Midwest? It has the most recession-proof cities in the United States. Adam Hendry said:
“We were looking geographically in the US where cities weathered 2008-2010 well, have booming population growth yet not too much multi-family construction, under 3% unemployment, attractive financing, and overall properties where instituting over company culture and DNA into the staff would give us a tactical advantage.”
Additionally, Tzadik Management purchased an office building in downtown Sioux Falls where they now have over 30 employees working in that Regional office.
Adam Hendry currently owns and manages over eight thousand units. He has properties in Florida, Georgia, Texas, South Dakota, North Dakota, Nebraska, and is looking to expand opportunistically where the criteria are met. Hendry and his team of professionals are preparing for a Melt-Up by expanding to ensure that each Region of the company is at least 2.5x on the Labor Efficiency Ratio and over 50% Net Promoter Score respectively.
Tzadik Management is a thriving real estate and property management company. The Florida-based business began in 2007. Its CEO, Adam Hendry, and his team, value hard work and exceeding expectations. Hendry has fifteen years of progressive real estate and property management industry experience.
Learn more about Founder and CEO, Adam Marcus Hendry
Follow CEO of Tzadik Management, Adam Hendry on LinkedIn https://www.linkedin.com/in/adamhendry