How holistic banking supported Guardian’s growth

Guardian first came to J.P. Morgan for loans to finance affordable housing properties. As Guardian grew, its banking needs became more complex—from financing properties to treasury management involving hundreds of bank accounts. 

Brenneke eventually moved all of Guardian’s operating accounts and his personal accounts to J.P. Morgan. He saw the benefits of a collaborative relationship with a bank that had deep expertise and resources to meet Guardian’s wide-ranging needs. 

Flexibility 

Early in the relationship, Guardian needed to refinance affordable housing properties with project-based rental assistance. The challenge: Each asset needed its own smaller-than-ideal loan. 

“When we have a product that doesn’t fit perfectly and needs flexibility, we put in the time and brainpower to understand what the project needs and see if there’s a way we can make it work,” said Cécile Chalifour, head of Community Development Real Estate, West Region, at J.P. Morgan. 

“When I’ve been in a bind or had an issue, they flexed. That’s all I need,” Brenneke said. 

Since those first properties, J.P. Morgan has provided financing for larger Guardian projects, including: 

• $9 million in construction financing, which will convert to a permanent loan, to rehabilitate 117 units across two sites in Northwest Oregon. Both sites provide housing for people earning up to 60% of the area median income (AMI), and one focuses on serving older adults and people with disabilities. 
• $12 million to refinance the Uptown Tower Apartments, a 72-unit affordable housing complex in Portland with all units reserved for older adults earning 30% to 60% AMI.
• $30 million in financing to construct a 100-unit affordable housing building at the SE Fuller Road light rail station in Clackamas County. The project serves families earning 30% to 60% AMI, including 25 units of permanent supportive housing. 

Real estate-specific solutions

Guardian maintains hundreds of accounts—not only for its own businesses but also for its property management clients. When Brenneke wanted to make managing accounts and payments more efficient, he reached out to J.P. Morgan.

“Technology has always resonated with me, and J.P. Morgan’s approach was high-security, high-tech and innovative,” he said. 

The J.P. Morgan treasury team conducted a deep dive on Guardian’s accounts, identifying ways Guardian could benefit from payments and treasury solutions designed for property managers with complex account structures, said Bob Powers, Pacific Northwest Market Leader for J.P. Morgan Community Development Banking.

“Guardian was operating at a scale where they could take advantage of competitive pricing on treasury services and feel confident we could handle their volume of account openings smoothly,” he said. 

Speed and certainty 

When transactions need to move quickly, a well-established banking relationship accelerates the process. 

“There’s an ease when we’ve done several loans together and know their processes,” Powers said. 

The benefits extend to opening accounts for properties Guardian manages. 

“Any account they open with us, we understand exactly what their operation needs,” said Treasury Management Officer Joleesia Anderson. “We’ve gone the extra mile to speed up implementation because we know they need access ASAP.”

Collaboration and scale 

When Guardian had the opportunity to make its biggest acquisition yet—a $497 million portfolio including 15 housing communities—Brenneke’s strong relationship with J.P. Morgan helped make it happen. Both the Wealth Management and Tax Oriented Investment groups supported the landmark deal, which will preserve more than 3,000 units of affordable housing in Oregon and New Mexico. 

“I asked J.P. Morgan to flex a bit, and they did,” said Brenneke, calling the deal a “game changer ” for Guardian. 

“Suddenly, we go from being a regional group to being on the national stage, and we’ll grow geometrically from there,” he said. 

“We are thrilled to add this significant commitment to our Preservation Housing portfolio and to further extend the bank’s support for Guardian,” said Cynthia Cain, Head of Alternative Investments for the Direct Affordable Housing Group in Tax Oriented Investments. “This $161 million equity investment is the largest single investment in affordable housing that we have made to date. We highly value our relationship with Guardian, and we look forward to collaborating on future opportunities together.”

Supporting continued growth 

Guardian has big goals for continued growth, and “we want to grow with them,” Powers said.

The firm is working with Brenneke and Guardian to explore additional ways to support their growth, including an employee stock ownership plan, wealth management and portfolio acquisition opportunities.

“It’s a privilege to have the opportunity to support Tom and Guardian Real Estate Services as they pursue their next phase of growth. We’re helping him leverage the full resources of our firm and advance his ESOP goals,” said Regina Carls, head of Advisory Group at J.P. Morgan.

“We have a strong foundation, and there’s no reason we can’t be at 25,000 to 30,000 units in the next five years,” Brenneke said. “I see a big five to 10 years ahead with a much larger relationship with J.P. Morgan.”