Dear Arlington Team,

2023 was another year of highlights and achievements for the Arlington Family of companies. While higher interest rates tried their best to deter the development group, they and our other business groups succeeded. There has never been a finer year all around for our business and for our associates.

You are an associate of a unique company. While many real estate and construction companies are capable of high performance in one business or perhaps two, no one but Arlington has the combined strength, talent, and breadth of skills that make us a formidable force in our respective companies: Property management, development, general contracting, and subcontracting services. Each business is strong, and together, we are a force.

Please join me in recognizing the wonderful achievements of the noted Property Management associates and our associates in every company that contributed to Arlington’s continued success in 2023.

You have unlimited potential with Arlington. Take advantage of every opportunity for standout achievements.

In closing, the Arlington Family is what you make us. And I am proud and ready to take on 2024 with every one of you.

Jim Dixon, Chairman

Arlington

Since our founding in 1969, giving back to the communities where we work, play, and live has been at the heart of what Arlington Properties stands for. We give in many areas of need but look forward to our United Way Campaign every year, which benefits of our fellow citizens.

This year’s United Way Campaign was a success, with pledges from across the company supporting important causes through United Way of Central Alabama, a non-profit community services organization Arlington Properties has partnered with for many years.

Arlington Properties associates rallied to make a difference in the lives of others during the 2023 campaign, raising over $275,000, with a portion available for designation to a team-members local United Way.

Director of Human Resources Caitlyn Limberg, Chairperson of the 2023 United Way Campaign, Let’s Unite, succeeded in creating an extra fun campaign for associates with the level of participation from our team members at Arlington Properties, PBS, and Arlington Construction topping previous years.

The Corporate Administration departments worked hard in 2023 to keep up with the growth in different areas of the companies. To that end, the group welcomed its newest team members, Matthew Millwee, Assistant Controller-Property, and Van Sims, Property Accountant.

Accounting has continued to work with Property Management to identify and implement business solutions that will improve cash management and fraud protections. Specifically, during this past year, Arlington transitioned property disbursements to a software platform that will allow for a migration from paper check payments to electronic payments to vendors. In addition, Accounting was able to fully migrate to a new credit card platform that allows for better spend controls and reporting.

Human Resources has continued to make strides in the areas of compliance and employee engagement. There has been a focus on educational programs to help employees better understand the benefits of retirement planning and health options offered and supported by the companies. And the Information Technology team has continued to focus on process enhancements in addition to initiating new cyber security training programs and protocols. In recognition of their efforts, we are also very happy to recognize Caitlyn Limberg in her promotion to Director of Human Resources and Julian Smith in his promotion to Direction of Information Technology.  We look forward to continued momentum in these important areas of corporate support under their leadership.

The Arlington Properties Development team saw many challenges in 2023, including elevated construction costs and a rapid rise in interest rates, making the development of new apartment communities more and more challenging.

Development focused this year on managing our ongoing construction budgets while supporting property management with new lease-ups in Cincinnati, Charlotte, Atlanta, Memphis, and Tampa.

And while the economic challenges of 2023 brought a moderation in rent growth in each of our markets, we have seen successful beginnings to the new lease-ups. Through coordination with each construction team and great effort from the Property Management team members, each community focused on leasing the units available and creating the best living experience possible for our residents.

The Development team closed on two new construction projects in 2023—Tapestry Palmera, a 240-unit development in St. Augustine, Florida, and Tapestry CirclePort, a 233-unit development in Cincinnati, Ohio. Both projects broke ground in the second half of the year and are currently in the site-work phase of construction. Ongoing construction projects continue in Cincinnati, Sarasota, Orlando, and Denver.

Springhouse in Louisville, Kentucky, a 220-unit community, developed and constructed by Arlington, sold to Passco, with Arlington Properties retaining management.

With a cautiously optimistic outlook for 2024, the Development team continues to work on new projects. Our goal is to start between three to five new projects while continuing to focus on the delivery of what we have under construction.

Arlington Construction Services (ACS) has had an incredible year. The amount of work completed is genuinely remarkable, and it is especially important to note how this team works together, solves problems, and provides value to our clients. Our clients have noticed this, and it is apparent in the amount of repeat business received, along with the new clients that have contacted us to work with them. ACS is making an excellent name for themselves in the multifamily market.

In 2023, ACS completed three standard multifamily projects totaling 773 units—Tapestry Tyvola, in Charlotte, North Carolina; Tapestry Turfway in Florence, Kentucky; and Gateway in Rossville, Rossville, Georgia. ACS also completed two unique projects—Legacy Ridge Memory Care and the Brother Bryan Mission Annex.

Legacy Ridge, in Trussville, Alabama, is our first senior living project. This project expanded an existing facility to deliver the space for 16 dedicated memory care beds, all of which were occupied quickly after opening.

ACS also completed the Brother Bryan Mission Annex. This special project was a rehab of an historic building in downtown Birmingham to provide recreational, office, and additional bed capacity for Brother Bryan Mission, a 501 (c) (3) service organization whose mission is to minister to economically, emotionally, and spiritually impoverished men in the Central Alabama area.

ACS ended 2023 with 17 active projects, totaling 4,365 units, and 2024 will be a record year for project completions as ACS is scheduled to deliver a staggering 3,625 units.

To continue growing and operating at a high level, the team will both execute ongoing work and projects in the pipeline, as well as continue to adapt and expand capabilities. Over the next few weeks and months, we will implement a handful of new procedures to improve our budgeting, forecasting, and work execution further. ACS is also working to improve delivery schedules and quality control by utilizing BUILD to expedite the punch process and turnover. These are just a few of the new initiatives for improvement that will be rolling out in 2024.

There is a lot of excitement about these new initiatives and the potential for continued improvement. Providing our teams with the best support and talent available in the industry will position Arlington Construction Services to grow, execute work at the highest level, and continue to produce a product of which everyone in the company will be proud.

It’s astonishing to reflect on the swift conclusion of yet another year. The speed with which time has passed is, in no small part, attributable to the remarkable activities of Professional Building Services (PBS) throughout 2023.

The year 2023 proved exceptionally busy, resulting in a substantial increase in projects compared to the record-setting 2022. Notably, each of our new construction divisions—Concrete, Framing, Drywall/Painting, Flooring, and Hardscape—achieved or surpassed the revenue levels of the preceding year, clearly demonstrating the outstanding performance of our team members, who met the challenges with exceptional preparedness and succeeded with flying colors.

The consistently high level of performance by our team is a source of pride.

During 2023, PBS marked several project milestones:

• Completion of our first collaboration with Brasfield & Gorrie by providing concrete, framing, drywall, painting, and flooring services for a senior living project in Fort Mill, South Carolina.
• Commencement of our first multifamily project with BL Harbert International, involving framing and drywall work on a project in Birmingham, Alabama.
• Expansion of our flooring division beyond multifamily projects by securing our first project from Milam & Co.—construction of an urgent care facility in Chelsea, Alabama.
• Led by our flooring division, we developed a solution-based strategy to reduce shower door procurement and installation time for all Arlington Properties, Inc., compared to third-party vendors.
• We contributed significantly to the population and housing growth of the Huntsville, Alabama market, with eight active projects totaling approximately 2,300 units.

Other notable achievements included:

• Establishment of a comprehensive internship program, with three interns completing the program this year.
• Enhancement of our cybersecurity system, accompanied by training team members to identify cybersecurity red flags.
• Implementation of automation in our subcontractor invoicing process.
• Refinement of our preconstruction and estimating approach.

Looking ahead to the new year, PBS is enthusiastic about its position in the subcontracting space. The anticipation of economic moderation does not daunt us, as we are well-equipped to navigate successfully through it. With a continued diversified client base and expanded services, we anticipate a highly successful upcoming new year.

It is a true pleasure to reflect on the incredible impact the Property Management group made over the past year; our team members’ outstanding achievements have contributed significantly to the company’s collective success.

From December 2022 to December 2023, exceptional net unit growth reached an impressive 6,493, resulting in a total unit count of 25,288 across 111 properties, up from 18,795 units. This expansion is a testament to the relentless pursuit of excellence and dedication to working together as a team to achieve a common goal.

2023 Management Company of the Year, Greater Birmingham Apartment Association

Team Growth and Promotions

I would like to recognize several team members who have demonstrated exceptional commitment and skill, particularly Tami Stertmeyer, who was promoted from Regional Vice President to Executive Vice President.

Tami began her property management career as a part-time leasing consultant at the apartment community where she lived. From the beginning, she has been passionate about building relationships that lead to a solid and trusting team culture and about being an “ever-learner”—someone who realizes that adapting to changing times means always being willing to gain new competencies and refine her skills. In addition to earning her IREM Certified Property Management accreditation in 2023, the mark of a consummate professional in our industry, Tami has a real knack for getting the right people in the right positions—and inspiring them to meet high expectations successfully.

Others who received significant promotions include Ivonne Adon, who was promoted from Regional Manager to Regional Vice President; Aubrey Grant, who was promoted from Community Manager to Regional Manager; Daniel Picknall, who was promoted from Area Manager to Regional Manager; and Jamey Crossen, who was promoted from Senior Community Manager to Regional Manager. Congratulations to them all!

You can read about more promotions and achievements below.

Professional Certifications

Several team members obtained nationally recognized certifications, including Austin Singleton, Danielle Joyce, Joe Donohoue, Kaitlin Early, Katie Clark, and Pam McKissick, all of whom received their Certified Apartment Manager (CAM) designation from the National Apartment Association. In addition, Justin Brown completed the rigorous requirements for the Certified Property Manager (CPM) designation through the Institute of Real Estate Management.

Tenure Recognized

This year, we are recognizing Regional Vice President Donna Rock for 15 years of tenure with Arlington.

Those working alongside Donna will tell you that Donna isn’t just an incredible leader; she embodies the essence of mentorship and guidance. Her innate ability to educate, encourage, and uplift others sets her apart. Donna’s passion for our industry is palpable, and it ignites a fire within her teams, driving them to exceed expectations.

But what truly sets Donna apart is her genuine connection with people. She has a remarkable way of touching the lives of everyone she encounters, leaving behind a trail of inspiration and positivity. Her spirit is more than infectious; it’s a beacon of light that illuminates every corner it reaches. And her impact goes beyond the professional realm; it’s also deeply personal. She invests in the growth and well-being of each individual, not just fostering careers but also nurturing the human spirit.

In a world where authentic leadership is rare, Donna shines brightly as a guiding star. Her contributions extend far beyond the confines of the workplace, resonating in the hearts and minds of all who have had the privilege to know her and enriching their lives in countless ways. 

Lifetime Achievement

The Property Management division is fortunate to have seen another of its leaders recognized by others in our profession.

Regional Vice President Mary Bradley was named the 2023 GNAA Lifetime Achievement Award recipient. Mary has been involved with the Greater Nashville Apartment Association since moving to the Music City in 1991. During this time, she has served in all positions, including as President in 2007, and is currently Chairman of the Statistics Committee.

Throughout her almost 40-year career, Mary has wholeheartedly embraced the pursuit of excellence. Her indomitable spirit and unwavering commitment to her team, company, and personal standards have become an inspiring benchmark within the association.