What defines a leader? In the field of residential property management, leadership means innovation, proactive insight, consummate professionalism, and extraordinary responsiveness. Marvin Gold Management, John B. Lovett & Associates, and Mark Greenberg Real Estate (MGRE), the recipients of this year's Leadership in Management Awards from The New York Cooperator, demonstrate these qualities and more. But the real winners are the properties that continue to benefit from the "extra mile" of service performed by these companies.

Skillful Negotiations at 209 East 56th Street

Who ever heard of a sponsor willingly giving apartments to a cooperative for free? Thanks to the negotiating prowess of Steve Greenbaum, director of management for Mark Greenberg Real Estate (MGRE), that's exactly what happened at the 103-unit co-op located at 209 East 56th Street. The result? In the words of board president Mary Ann Savarese, a "windfall" for the building, a clear path for extremely favorable refinancing, and a well-managed building in a firm financial position.

"The original sponsor had defaulted," explains Savarese, "and the property was assigned to the lending institution that had financed the sponsor, a bank in Minnesota that had absolutely no experience in the New York co-op market.

"With Steve Greenbaum's help, we convinced the bank that it was in their best interest to offer all of the unsold shares to the rent-stabilized tenants who occupied them at way below market prices," says Savarese.

Greenbaum then turned his attention to the renters themselves, many of whom had stated their intention to remain renters for the rest of their lives. Convincing them that buying their
apartments was in their best interest

was no mean feat.
" Steve Greenbaum met with every single one of them and explained how the co-op works and how the deal would work in their favor," says Savarese.

"He explained to them about the benefits of ownership. He issued an informational letter inviting them to call him with their questions. He did a phenomenal job." When the dust settled, 11 of the 13 units were sold to the occupying rent-stabilized tenants.

Largely as a result of Greenbaum's plain talk and negotiating skills, the Minnesota lender actually gave the remaining two units to the co-op in return for a release going forward from that date. "And we're not even subsidizing those two apartments," says Savarese. "The maintenance is actually lower than what the subtenants pay in rent."

The property was now in a more attractive refinancing position. Good thing, too, since the co-opÕs mortgage balance came due last December. Savarese and Greenbaum went to work again, this time arranging for a new 15-year underlying mortgage at 7.75%.

"MGRE has been with us since we converted almost nine years ago, and we've had only one maintenance increase in all that time. That's because Steve, our board treasurer and I sit down and fine-tune every budget to keep our expenses limited without taking away from the overall characteristics of our building. So far, in fact, we've improved our building considerably. I like the hands-on way Steve Greenbaum and MGRE deal with things. They've always been there for us. They're always willing to go that extra mile for our building.
They truly deserve this award."