TerraCorp Property Management Testimonials

Matt Locati
925.284.6464
ml@terracorpinc.com

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 TESTIMONIAL


 

To Whom It May Concern:                           

Twenty years ago, I was the CFO and a board member of the Carpenter's Local 925 Housing Sponsorship Corp. The "HSC" had one asset, which was a 25 year-old, 200 unit affordable family apartment complex on Williams Road in Salinas. The property was getting run-down, and there was insufficient cash-flow to perform needed repairs and maintenance, for which our existing management could offer no solutions.

Around this time, Matt Locati approached us with an offer to perform a free needs assessment, from which his company, TerraCorp would prepare a proposal on how they would recommend approaching the situation. Shortly thereafter, TerraCorp presented their well-researched findings to the board, with sound recommendations, and we made the switch to TerraCorp.

TerraCorp wasted no time following-though with their plan, and they made good on their promises. They first obtained HUD approvals to gradually raise rents, which they used to hire more and better-trained staff, resulting in better maintenance. One of TerraCorp's greatest strengths is their ability to hire quality staff, train them and keep them over the long-term. This stability led to solid operating statements and improved tenancy, with less turnover.

As the property neared the 40-year mark, the property was in need of a more significant renovation, and Matt informed us that our loan would soon be paid off and the rental restrictions would be lifted. He offered that TerraCorp's sister company, Terrex Development, could help us assess the alternatives and explain the costs and consequences of each. Terrex prepared detailed analyses of three scenarios: refinancing and taking cash-out to renovate, refinancing and getting tax credits, or selling.

While selling to a market-rate investor would be most profitable, it would have resulted in the low-income residents being displaced, which as a preservationist Matt was not in favor of, nor were we. We chose the tax credit execution due to the greater proceeds, which unlike the loan component needn't ever be repaid.

However, this form of transaction is very complicated, and investors require non-profits such as ours to have an experienced developer head the project. Terrex did an outstanding job of not only negotiating with, selecting and organizing the lenders, bond issuers, architect, contractors, and the tax credit investor, but also in educating us in the process and compliance requirements. I was the President at the time, and we had a pretty sharp board, but not the depth of knowledge required in this specialized field. Terrex and TerraCorp handled all the "heavy lifting" and allowed our board to breathe easy, as we already had fifteen years of positive experiences with them.

Together with the TerraCorp management team, Terrex relocated all 200 families and completely renovated their apartments with new kitchens, baths, windows, paint, etc. We also repainted the entire exterior, made ADA, electrical and plumbing upgrades refreshed our landscaping, and we installed a 168KW solar PV system and two new playgrounds, and numerous other improvements.

While we were impressed with Terrex's financial capabilities, we as carpenters could better assess the construction management, which was top-notch. They coordinated the crews of up to 100 men on-site at a time, while moving 16 families and all of their belongings per week, to complete the $10,000,000 project within six months, and on budget.

As a result, the residents are enjoying living in their newly-renovated homes, and their rents are protected as affordable for 55 more years. The HSC's investment has been not only preserved, but greatly enhanced, and in good hands with TerraCorp remaining as the managing agent.

Sincerely, 

Ralph Rubio   

Former President, UBC&J Local 925 Housing Sponsorship Corp                                                                                                                                                                     

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To Whom It May Concern:

Enterprise Community Investment and Enterprise Community Loan Fund have worked with Terrex Development and TerraCorp Management on a number of project evaluations and acquisition/rehab transactions. To date, Enterprise has provided Terrex with over $13,000,000 in equity, and more than $2,000,000 more is committed for an anticipated closing at the end of 2017. Enterprise Community Loan Fund has also provided Terrex with $3.4 million in debt financing. In these transactions, Matt Locati and his team have displayed in-depth knowledge and the great competence in structuring affordable housing financing, construction management, regulatory compliance and operations efficiency. The Terrex/TerraCorp companies exemplify the skills and professionalism that Enterprise seeks in its development and property management partners. 

Matt Locati leads the Terrex/TerraCorp team by first studying and understanding the big-picture goals of a project, and he then manages the development process down to the minutia to ensure that the program is achieved. Addine top-notch consultants, such as Don Bernards as financial analyst and Glenn Graff, Co-Chair of the American Bar Association Low Income Housing Tax Credit Committee, rounds-out Terrex's talented team. As partners, ENterprise could not be more pleased with Terrex and TerraCorp, as we are confident that our investments are soundly evaluated and overseen with diligence, professionalism and integrity. 

Sincerely, 

Philip Porter
Vice President
Enterprise Community Investment
PPorter@EnterpriseCommunity.com


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To Whom It May Concern: 

 
The Wong Center, Inc. has worked with TerraCorp/Terrex COmpanies for over eleven years, two of which I was the President; I write on behalf of our organization. In 2006, TerraCorp was introduced to assist with correcting financial compliance issues caused by prior management of our apartment building in Sacramento. 

The Wong Center building was red-flagged by HUD, launching an investigation by the Federal Office of the INspector General. Although all issues pre-dated TerraCorp's management, TerraCorp addressed the allegations brought by HUD and the OIG, and they successfully negotiated us out of all sanctions, and repaired our relationship with HUD in a matter of a few months. 

To the compliance matters, our organization was in turmoil, in the midst of a series of lawsuits among our membership fighting for control of the Wong Center. TerraCorp's staff, and Craig Strain in particular, did an admirable job of walking a fine line between the warring faction, and despite threats of being dragged into our lawsuits, they always put the well-being of the tenants, and protection of our investment in the Wong Center first. 

Because the 187 apartments in the Wong Center were occupied by elderly, primarily non-English-speaking people, we were initially skeptical if it would be a good fit. However, TerraCorp consistently ensured that the staff was well-trained and relatable to the tenants, and that there was always at least two bilingual individuals on staff. We appreciate the respect for our culture and for the residents displayed by TerraCorp's employees.

As a single-asset non-profit, without a background in operating HUD housing, we needed a manager who we could trust with fixing and maintaining our only investment, and we found it in TerraCorp. Unlike some management companies that we tried, TerraCorp operated with the exclusive objectives of providing high-quality affordable housing and maximizing our investment value. They run a tight whop with their staff and the tenants, but were always fair, and we never received any fair housing complaints while maintaining over 99% occupancy, under $100 in annual bad debt losses, our MOR scores were always "Above Average" or "Superior" and our last REAC score was a 99. We could not ask for more from a management company. 

Please feel free to contact me if you have any further questions about our experiences with TerraCorp.

Sincerely,

Michael Wong
Secretary/Treasurer and Past President of the Wong Center Board
https://www.lelandins.com/


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To Whom It May Concern,

The United Brotherhood of Carpenters and Joiners of America, Local 925 Housing Sponsorship Corporation, own a 200 unit affordable housing property located at 736 Williams Road in Salinas, California. Our relationship with TerraCorp Financial began in April of 1997 and has continued, uninterrupted to present, some 20 years plus years, which we hope to continue for many years to come. The service that has been provided by TerraCorp has always met or exceeded industry standards in the care and management of our property. 

We have always personally found Matt to be unwaveringly ethical in his performance as we have necessarily had to rely on his full range of abilities to guide us along in our projects. This is not to say we have not had disagreements. If and when this has occurred, Matt has always been amenable to look at our point of view and been willing to accommodate our wishes, always to the enhancement of our project and in furthering our relationship. 

In 2012, as our project was nearing its financial independence, we consulted with Matt with regard to our options with the project. Matt was diligent and thorough with accommodating our requests and presented us with many varying types of information, and scenarios which we required to make an informed decision. 

Ultimately we chose to recapitalize, improve the property, and form a partnership, along with Terrex Development and Enterprise Community Investment. Additionally with assistance from contractor, Otto Construction, the construction portion of the project was undertaken and completed in a period of approximately six months. The ultimate result was a project that is a tribute to the community and the people who live and work there. 

If you have any questions regarding our working relationship with TerraCorp or Terrex Development, we would be happy to discuss them with you. 

Sincerely,

John Anzini
Operation Manager, Past President, HSC/LLC


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Dear TerraCorp Staff:

I wanted to take a moment to thank you for the excellent job that you are doing for Bentall Residential and our properties.  

As a real estate company with properties throughout California, managing the geographic dispersion is always a challenge.  As the distance limits our ability to visit each property as often as we like, we must utilize managing agents we can trust to manage the property as if it was their own.   Your website advertises this capability and based upon our experience it is truly delivered!

We routinely receive calls from our site staff, which you assumed from prior management, thanking us for the opportunity to work with your organization.  From a corporate perspective, our asset management and accounting staff are equally as pleased with your systems, technology and your accessibility when there are issues or questions that arise.

At the site which we just acquired, Windham Village, we were uniquely impressed by the dedication of your personnel, with your on-site manager having been with the company for sixteen years. However, we were overcome by the response that the residents gave at our initial introductory meeting where they unanimously and genuinely stated their appreciation for your 20+ years of caring stewardship of their homes. It was clear that we would face a mutiny if we even considered changing management (which we were not in any case).

Thank you for all that you do and keep up the great work!
   
Bentall Residential, LP

Ken J. Reiner
General Partner
8105 Irvine Center Drive
Irvine, CA  92618
http://www.reinercommunities.com/

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