History

The Regency Apartments (Regency Consolidated Residential LLC) of today is strong because we have built upon the solid foundation established by founder David Eades and adapted our structure to meet the changing real estate investment and management climate.

Building a Sound Foundation

Regency’s early building blocks were set by David Eades. In a partnership with Roy Lambert, the two acquired Regency Apartments in Charleston, Illinois in 1974. Under the banner of The Regency Companies, by 1982, the two had acquired and were managing 10,000 apartments and had raised over $75 million in private equity syndication offerings. Their focus from the beginning was on delivering value – to residents and investors.

That early partnership changed in 1982 when Lambert moved to Vero Beach, Florida. While each developed his own new company through which to pursue real estate opportunities, they remained Co-General Partners with management responsibility for a number of properties. In 2001, the assets of those properties were sold to a national multi-family Real Estate Investment Trust (REIT) in a transaction valued at $276 million.

Regency Associates, the company Eades formed in 1982, was the parent company and asset manager for the acquisition and syndication of multi-family investment vehicles. Within 10 years, Regency Associates raised over $20 million from investors and purchased or developed 20 apartment communities and shopping centers in Illinois and Indiana. Typical of the times, nearly all of the properties were owned by separate limited partnerships with Regency Associates serving as the General Partner.

Evolving to Ensure Growth

As tax laws and investment vehicles changed, Eades and his executive team recognized that the company structure needed to evolve to ensure continued growth in the new environment. Regency Consolidated Residential (RCR) was formed in 1995 to consolidate apartment ownership into a self-managed operating company. Regency Residential Associates (RRA) was created to become the new General Partner. Built on the foundation of earlier investment success, these two companies became the new foundation for future growth opportunities.

Eades, who has always believed in hiring, developing and trusting the best and brightest people, entrusted his capable executive team with developing the infrastructure to make the vision for Regency Consolidated Residential (RCR) a reality. Financial services, human resources, risk management and property operation were developed as functional business areas. An integrated enterprise network was built to maximize efficiency, benchmarking and sharing of information across properties. Industry standards and best practices were implemented to measure performance and plan for improvements.

The Next Generation

In late 2003, Bob Pratten, the CFO and a 20-year veteran of the company, succeeded Eades to become the President and CEO.

Regency’s structure has continued to evolve. On January 1, 2009, a long-planned conversion and reorganization took effect that pulled several remaining functions into RCR:

• Indiana Limited Partnership converted to Indiana LLC
• RCR purchased Regency Management Service, the affiliated management company
• Regency Residential Associates resigned as General Partner
• The Board of Managers was established as the governing body for RCR

With these changes, RCR has evolved into the self-managed real estate operating company envisioned in 2003. All essential functions, including asset management and property management rest inside the same structure as the real assets. This more contemporary structure makes RCR well-positioned to respond quickly to future growth opportunities.