Diversification, teamwork help management co. thrive.

In an age when many residential property management companies have fallen by the wayside, the diversified team of professionals at R. A. Cohen & Associates, Inc., has found the formula for growth and success providing building owners with a comprehensive 21st century approach to management.

The firm, headed by principals Robert A. Cohen and Ralph DeRa Cava, has grown in just six years from a four-person shop to a thriving mid-sized firm of more than 25 that manages more than 65 co-ops, condos and rental properties in the New York metropolitan area, as well as the residential ownership portfolio of its principals, which accounts for more than $50 million in area buildings.

The principals believe the keys to quality management lie in the ability to wear aH of the many hats necessary to make sure their clients' properties operate at maximum efficiency.

Cohen hand-picked a broad-based staff of professionals - most of whom he knew and worked with long before forming the company from various disciplines including real estate, law, finance, construction, business and accounting.

Such a multi-disciplined array of talent enables the firm to go far beyond the outmoded manager-as-caretaker approach. Instead, R. A. Cohen & Associates, Inc., knows that effective management today means total asset management, not just maintenance and rent collection.

Cohen said that one reason for the firm's dramatic growth lies in its ability to assume an owner's point of view and take comprehensive charge of a property in order to add value and maximize building profit. That means actively serving as legal and financial expert, construction manager, money-saving bottom-liner, government liaison and labor relations pro, as well as computer analyst, customer service representative and troubleshooter for a diverse clientele of investors, sponsors, major lending institutions, co-op boards and owners of rental properties and condominiums.

Ordering work, paying bills, hiring employees, billing and collecting rent and supervising staff and security are merely the basics. Besides taking charge of the budgeting process and handling building-wide capital improvements, R. A. Cohen & Associates provides added depth with an inhouse legal department that coordinates all legal action with tenants; an accounting department headed by a CPA; a leasing/compliance department that negotiates common leases and handle all leases and filings; and an in-house construction management group that develops raw and vacant space and plans and implements apartment alterations as well as maintenance and modernization programs.

In essence, R. A. Cohen & Associates, Inc., offers one-stop shopping for management services - where expensive sub-contractors and other consultants and specialists are rarely, if ever, required.

In all aspects of property management, R. A. Cohen & Associates takes a proactive rather than reactive role. Instead of merely following orders based on a given set of basics, the firm moves quickly to thoroughly examine all of the operating fundamentals of a building when taking over a new management assignment. A thorough examination of tax records, the building's financial health and relevant legal and regulatory issues, for example, helps the firm spot and solve problems, whether it be reworking mortgages and providing financial advice, or serving as legal counsel relating to compliance with city regulations and other government ordinances.

The firm is also facilitated by an on-line capability with banks that allows immediate financial statements, which can be hand-tailored to meet owners' needs thanks to a flexible financial reporting system software.

But the firm knows that on-line capabilities and technological aids can never replace old-fashioned personal service. Understanding the value of accessibility, the staff of R. A. Cohen & Associates realizes that beepers and answering machines cannot solve problems, and they take pride in being personally available to clients around the clock.

Cohen began his association with Della Cava at Imperial Properties, Inc., where Cohen served as executive vice president and chief operating officer and Della Cava as director of management. The two made a perfect match, with Cohen combining his expertise in cooperative and condominium conversion and real estate law with Della Cava's vast knowledge of investment and acquisition analysis and real estate development and construction.

Cohen had previously worked as vice president and general counsel at M. J. Raynes Incorporated, a leading co-op converter in the 1980s, and as an associate with one of the nation's largest law firms, Proskauer Rose Goetz & Mendelsohn.

The two teamed up to manage two co-ops and the unsold shares of one small apartment building, and in 1991 began buying properties for their own account. They chose a team of professionals where the guiding principle is collaboration, as opposed to a loose conglomeration of independent property managers who prefer to operate autonomously.

At R. A. Cohen & Associates, the focus is on proactive teamwork - combining talents and pinch hitting for one another collectively paying attention to clients and making sure that every operational detail of running an efficient building is covered.

R. A. Cohen & Associates is largely an outgrowth of strong working relationships developed over the last two decades. Della Cava said a staff that actually enjoys working together helps to provide an extra level of energy and dedication in which to meet all the complexities involved in managing a building. Cohen added that the firm takes pride in its growth and spirit, client retention and staff loyalty.

As they assembled their team, the principals of R. A. Cohen & Associates began diversifying their portfolio and bringing their intricate knowledge of the New York real estate market and experience as owners to others.

One property that benefitted from their problem-solving abilities is 126 West 73rd Street, a 39-unit building for which they took over as managing agent for a lender who had taken control of the rental property and had nearly failed at converting it to a co-op. In 1991 the firm completed renovations to the lobby, installed new entrance doors, renovated and sold vacant apartments and cleaned up the sponsor's financial morass by paying off a large amount of leftover construction expenses at discounted prices.

The co-op conversion was completed in early 1992, and R. A. Cohen & Associates continued to serve as managing agent for both the lender in control and the co-op board, helping the board to refinance its wrap-around mortgage with the sponsor and making sure the building was no longer overleveraged.

R. A. Cohen & Associates actively marketed apartments to tenants in occupancy and was able to get either vacancies or purchases so that only eight rental tenants remained - a commendable number, according to Elly Pateras, vice president and director of co-op and condo management. This resulted in the co-op board extending the firm's contract for three more years after the two-year requirement with the sponsor had elapsed.

The same talents prove indispensable for R. A. Cohen & Associates in its work helping investors discover the best real estate purchasing opportunities in time to create additional value. Della Cava pointed out that the team does not walk away once they close a deal, but instead goes the distance to enhance long-term profitability by applying management skills over the long haul.

One example is a five-building parcel in the Times Square district. Among a group of managing partners, Cohen and Della Cava recently purchased the site, which required substantial creative development. With their partners, the two oversaw extensive new construction of an underused retail area of more than 18,000 square feet and successfully redeveloped and leased up the entire space within two years.

The principals of R. A. Cohen & Associates have also found profitable investment opportunities in the purchase of rent stabilized apartments, where renovations upon vacature can result in decontrol. Della Cava said that investors with vision and creativity can find opportunities in today's market, and that R. A. Cohen & Associates is optimistic about the upcoming cycle in real estate.