Company History

  • In January 2010, the Model Group merged with CFS Construction, following a successful two-year joint venture partnership. The merged company retains the Model Group brand.

    The merged Model Group has an increased capacity to offer independent commercial and residential construction and management services, while extending our comprehensive revitalization services to several new markets. Whether we are revitalizing a historic city block, constructing a new restaurant, or managing a senior housing community, we are more capable than ever to transform communities through our real estate solutions.

  • 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.

    1978

  • CFS Construction Inc. (CFS), in Cincinnati, Ohio, had its beginnings as Homelink LLC in 1995. CFS was an investment and management company founded by Toby Asbury and Ron Conradi. In 1997, Toby & Ron diversified their mostly residential portfolio by developing an assisted living facility in Phoenix, Arizona.

    1995

  • 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.

    1998-99

  • In 2001, with Dan Scullin as Toby’s partner, CFS began focusing on third party residential property management and the company’s portfolio quickly grew to over 1,500 units managed. It was during this phase in the company’s evolution that it began performing third party construction work. Several apartment clients had major renovation projects that CFS successfully managed. CFS entered the commercial contracting market in 2004 by completing extensive renovation work for national retail and restaurant clients, such as Steve & Barry’s, Starbucks, Checkers, Denny’s, Penn Station and BW3s.

    2001

  • 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).

    2004

  • 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.

    2007

  • On January 1, 2008, CFS Construction and the Model Group entered into a joint venture agreement that made CFS the exclusive builder for the Model Group. CFS continued to grow its commercial construction client base, while Model continued to partner with community development corporations, non-profits and municipalities to revitalize neighborhoods.

    2008

  • In August 2009, Model and CFS signed a commitment letter to merge. The merger was completed in January 2010.

    2010