Within the context of our property management philosophy, it is our opinion that institutional quality property management that meets our stringent requirements is often unavailable for apartment properties in many markets. We require that a management company cater to the needs of the residents and be able to provide reporting at an institutional quality level. We find that most apartment property management companies can do one or the other well, but not both (if in fact they can do either one well ). Kensington recognized this void in the market years ago. We felt that the best solution was for Kensington to form an affiliation with a multifamily management specialist that had already perfected the art of providing both premier resident services and institutional reporting.

After conducting a formal search for such a company, we decided on the Marquette Companies. We formed Kensington / Marquette Partners to provide asset management services and we utilize Marquette Management, Inc. for property management where appropriate and in the best interests of the property and the client.

Marquette Management has a decade-long solid history of providing high quality marketing and management services to its institutional clients. Marquette and its principals have gained industry-wide recognition for their customer-driven management philosophy, innovative "hotel style" management techniques and state-of-the-art financial control systems. Properties under Marquette's management consistently outperform the competitive market in occupancy, cash flow, and value enhancement. Marquette expects that this philosophy executed by well-trained employees will ensure their position as a national leader in the field of property management for the 90's and beyond. Marquette's principals combine over fifty years of experience on more than 30,000 units across the country.

Management Philosophy
Marquette's mission is to "Redefine the quality of life through real estate development and management services." Marquette's principals have developed a clear vision to be the best management company in the nation through its integrity, customer service, vision, and solid operating style at every organizational level.

Staff Training and Development
Recognizing the importance of a quality staff to a property's success, Marquette provides technical and customer service training to each of its employees including video taping, quarterly workshops, personal development, seminar participation, telemarketing techniques, among others. A formal mentoring program ensures the development of each staff member and results in outstanding property level performance.

Resident Survey Program
An ongoing client survey program coupled with regularly scheduled "resident focus groups" allows staff and supervisors to maintain close contact with potential and existing residents. Accurate knowledge of resident concerns and expectations from the initial appointment through lease renewal makes a significant difference in customer satisfaction and resident retention.

Hospitality Services
Customer satisfaction is the core of Marquette's management style. This approach has evolved from the hospitality industry and is typically found only in the world's finest hotels. Examples include the "We C.A.T.E.R." (Customized Attention To Every Resident) program which highlights a broad menu of services available to each resident by the service-driven concierge staff.

Superservice Innovations
Hospitality Suites, Resident Appreciation Weeks, Complimentary Renters Insurance, Daily Continental Breakfast, Corporate Appreciation Nights, Mini Brochure Business Cards, Pen and Ink Moving Announcements, and the Lifetime Resident Referral Programs are just a few of the innovations that have brought Marquette Management national attention for its service-driven performance.

Research Based Marketing
Marquette Management strictly adheres to a marketing control system based on thorough research of competing properties, resident base, and new prospects. Competing properties are clearly identified and analyzed monthly. A Demographic Profile database is maintained on each property to assist in the development of marketing outreach programs and to identify emerging trends that impact occupancy. A comprehensive Daily Marketing Report allows site and supervisory personnel to maintain up-to-the-minute knowledge of a property's performance so that quick, informed decisions can be made.

Comprehensive Financial Controls
A comprehensive Annual Operating Budget is the core of the financial control system that keeps Marquette-managed properties consistently out-performing the market in financial returns. A daily Declining Balance Control System ensures cost containment and budget adherence by site and supervisory personnel.

Monthly Marketing Plans and Budgets ensure tight control of marketing expenses. Use of in-house staff expertise for development of newspaper ads, promotional campaigns, direct mail, brochures, as well as for major cost items such as painting, decorating, and apartment turnovers guarantees high quality production at minimal cost. An aggressive rent collection process and thorough client screening assists in maximizing revenue flow. Advanced Target Renewals, Computerized Purchase Order Systems, Daily Inventory Control, Monthly Escrow Analysis, Utility Consumption Control Programs, and Bulk Purchasing are examples of the strategies employed at Marquette to control costs and increase cash flow.

A variety of additional revenue enhancement and cost containment strategies from Marquette's unique Bid Specification Analysis to its incentive-based employee compensation assures ownership that every dollar is well spent and accurately accounted for.

State-of-the-Art Accounting and Reporting
Kensington Realty Advisors and Marquette Management have each been models of quality for their clients relative to reporting excellence. It is not unusual for clients to require their other managers to follow a format which we have developed because it provides better information in a clear-cut format. But being the best is not good enough for us.

We have recently revised all of our property and asset management level accounting and reporting by implementing the Yardi Management System. We are one of the first groups in the country to utilize this state-of-the-art suite of software for the benefit of our clients. A further discussion of our capabilities and systems can be found under Accounting and Client Reporting.

Property Performance
Marquette Management has developed a national reputation for its solid operating systems and customer driven property management. It has maintained this reputation as a result of superior property performance in the areas of reduced resident turnover, reduced lease concessions, and increased lease conversion ratios. These three strategies alone have consistently raised bottom line net operating income by 50 basis points or more on Marquette-managed properties.