Company History

  • In 2010, the Model Group reflected on our corporate journey of 32 years. We have reconfirmed our Vision and Core Values and hold firm that they are the anchors that will enable us to continue to grow as leaders in transformative real estate solutions for years to come.

  • Art Reckman founded Model Management, Inc. in 1978 as a real estate investment and management company, focusing on property management and small-scale apartment and single-family construction work in urban Cincinnati, Ohio neighborhoods. By 1994, much of Model’s real estate portfolio was aging and deferred maintenance was eating into the properties’ ability to provide an acceptable ROI. Steve Smith joined the company at this time as a property manager, and quickly rose to Director of Operations. Steve and Art recognized that the affordable housing component of the company’s portfolio was particularly distressed, and they began to search for ways to either reinvest in the properties or, in many cases, divest of the assets altogether.

  • In the late 1990s, Steve (of Model) identified the Low Income Housing Tax Credit (LIHTC) program as a potential approach to leverage private equity to reinvigorate the affordable housing properties that Model owned and managed. That year, Steve submitted a competitive proposal for tax credits in an urban Cincinnati development to the Ohio Housing Finance Agency. This proposal did not receive an allocation of tax credits, but an improved proposal was submitted, and funded in the following year.

    This next project represents an important turning point for the company because Art and Steve decided that even though the project was affordable housing, they had an opportunity to redevelop the physical assets to such a level of quality that the properties would be indistinguishable from any market rate housing in the community. Instead of a moderate rehab, Art and Steve raised private equity and publicly financed loans to perform a complete gut rehab.

    They replaced 100% of all mechanical systems (electric, plumbing, HVAC) and roofs; increased energy efficiency of lighting and appliances to lower operating costs; used the best insulation and windows; installed high quality hardwood and ceramic tile flooring, and top quality cabinets and trim packages. In short, they built a high quality market rate development that happened to house residents with incomes below the area median income level. In addition, the assets were better positioned for long-term operational success.

    State finance agencies and national equity fund investors from over 30 states repeatedly visited the project on bus tours, where Steve and Art discussed the method and logic of the high quality materials and methods utilized. As a result, Steve and Art quickly realized that redeveloping affordable housing in a way that was indistinguishable from market rate housing had several positive effects:

    1. The project created an economic stimulus greater than the project itself: outside investors and businesses began investing along with adjacent property owners.
    2. The company developed and sold market rate homes, something that had not occurred in that neighborhood for over a decade.
    3. The waiting list for the apartments grew to a period of over two years and the selection criteria for affordable housing residency evolved to become very strict.

    At this time, Model’s firm philosophy was established, namely, that -- affordable housing must be developed and constructed in a way that is indistinguishable from market rate housing -- was cemented, in order to help revitalize communities.

  • In 2004, Bobby Maly joined Model as Project Manager, and the company continued its shift to being in the 'neighborhood revitalization' business. At this time, the parent company was reorganized into the Model Group, Inc., with its distinct, but integrated subsidiary service companies: Model Property Development, Model Construction, Brickstone Properties (residential property management), and Model Realty (commercial property management).

  • This shift in focus broadened Model’s redevelopment perspective and it deepened the relationships with the local municipalities, state, and community stakeholders with which Model was partnering on each new phase. By 2007, Model was a leader in community revitalization efforts in several urban communities. Perhaps the most notable example of this revitalization expertise can be seen in the ongoing success of the Gateway Quarter district in historic Over-the-Rhine, Cincinnati. Here, with the City, Ohio Housing Finance Agency, and the Cincinnati Center City Development Corporation (3CDC), Model has invested tens of millions of dollars in urban development and construction, using high quality affordable and market rate housing redevelopment and new construction, for-sale condominium development, and retail/commercial development.

  • company history description goes here ex: In August 2009, Model and CFS signed a commitment letter to merge. The merger was completed in January 2010.

    2010 (date)
  • company history description goes here ex: In August 2009, Model and CFS signed a commitment letter to merge. The merger was completed in January 2010.

    2010 (date)