Two dozen new neighborhoods, a portfolio milestone and more than 100 new investor partners helped make 2023 an exceptional year for Redwood Living, Inc.

“As we reflect on another remarkable year for Redwood, we take great pride that the strength of our product continues to stand the test of time, the uncertainties of varying market conditions and the inevitable shifts in consumer preferences,” said Steve Kimmelman, CEO of Redwood. “But our strength also comes from hundreds of investors who have placed their trust in Redwood. We are humbled by their confidence and united as a team to make 2024 another year of growth and achievement.”

Below are some Redwood highlights from 2023.

Remarkable portfolio growth

Throughout the year, Redwood welcomed 24 new apartment neighborhoods that opened or are nearing construction completion across five states—Ohio, Michigan, North Carolina, Illinois, and Nebraska. One of these neighborhoods is Redwood Bellevue South 25th Street, Redwood’s first Nebraska neighborhood, which will welcome new residents home early this year. 

In addition to new neighborhoods, 10 Redwood Neighborhoods expanded this year, which included new apartment homes in locations across Ohio, Michigan, Indiana, South Carolina, and Kentucky. In total, 2,078 apartments were added to new and existing neighborhoods. 

Redwood’s grand opening and development activity was fueled greatly by the partnership of new and existing investing entities. In 2023, Redwood welcomed 120 new investing entities and raised $93,717,643 in capital, closing nine deals throughout the year.

In 2023, Redwood's LLCs continued to deliver investor returns. Investors received a total of $34,292,560 in preferred interest payments and $3,637,334 in mezzanine interest payments. Additionally, Investors received $38,626,006 in distributions, which includes both HUD and non-HUD stabilized assets. 

Redwood's LLCs also made significant strides in securing long-term financing for its projects in 2023. The company closed on 34 permanent loans or refinances, securing a total of $347.4 million in non-recourse or limited recourse financing. Refinancing activities resulted in a return of capital from construction investments of $30,796,055 for our preferred members, along with an additional $58,321,243 in refinance distributions. Importantly, six of these financing arrangements involved the consolidation of multiple LLCs through "rollups." 

All this momentum helped the company reach its goal to grow the portfolio to 16,000 occupied homes by the end of 2023—a goal that was accomplished months ahead of schedule. The company’s development success also attracted significant media attention from dozens of local, regional, and national outlets, including Modern Home Builders, Yahoo, and Cleveland.com.

Thousands of new and deepened relationships

In 2023, Redwood significantly expanded its network of relationships. 

New and existing Redwood Neighborhoods welcomed 6,915 new residents throughout the year. One of the many ways that Redwood retains and thanks those residents for choosing to rent is by hosting Resident Appreciation Months three times each year. While activities vary by month, they typically include everything from special gifts to neighborhood events to an annual grand giveaway. At the end of 2023, Redwood chose two residents to surprise in early 2024 with a once-in-a-lifetime trip to the Redwood Forest. Read more about how Redwood demonstrates appreciation for its residents all year long.

The Redwood team also expanded by 193 new ambassadors, bringing the total employee count to 634. The company continued enhancing the ways it educates, recognizes and rewards team members to help build satisfying careers and encourage advancement. For example, the company prioritizes on-the-job training as well as external opportunities for employees to continue learning. In 2023, Redwood granted $19,672.29 in tuition assistance for employees looking to pursue degrees, certifications, attend classes and more. Redwood also had the privilege of promoting 75 team members across the company throughout the year. 

A record-breaking year for awards and distinctions

Throughout 2023, Redwood was continually recognized for excellence by various national and regional organizations, for everything from construction achievements to online reputation and company culture. Continuously striving for innovation in the building process led to recognition in 2023. The company received a Gold Level award for Excellence in Construction by the Associated Builders and Contractors organization for construction of Redwood Medina Lafayette Township.

Additionally, for the third consecutive year, Redwood placed in the top 10 nationally for reputation management in the annual Division ORA® Power Rankings. Redwood earned an ORA score of 82.92, ranking the company fourth in Division III, when the national average of 63.26. That remarkable reputation has helped Redwood gain new residents across its portfolio.

Redwood was awarded recognition consistently in the category of company culture:

• For the sixth year in a row, Redwood was once again certified as a Great Place to Work® and was awarded a Top Workplaces award by Cleveland.com and The Plain Dealer. The awards reflect positive employee feedback about their workplace experience and showcase the company’s standout culture.

• The company was also recognized with a Top Workplace honor in Michigan by the Detroit Free Press. Redwood developed its first neighborhood in Michigan in Lake Orion in 2013. A decade later, the company continues to expand its footprint across the state with more than 3,700 single-story apartment homes in 34 neighborhoods—and new homes being built each day.

• For the second year, Redwood earned a place on the Best Workplaces in Real Estate™ list. Compiled by Fortune and Great Place to Work®, securing a spot on this list means that Redwood is one of the best companies to work for in the country.

These awards are evidence that the strategy at the company is leading Redwood toward continued success as 2024 unfolds. 

Incredible opportunities to give back

Redwood takes pride in finding new and impactful ways to serve its communities, and 2023 brought plenty of opportunities to do just that. 

For the second year, Redwood invited its employees, residents, and investors to nominate a verified 501(c)(3) organization for Redwood to support in the form of volunteer time, promotion, and monetary donations. The company chose to donate a total of $45,000 to six deserving charitable organizations. Here’s a closer look at the impact of this annual giving.

While Redwood’s annual giving initiative is the company’s most large-scale philanthropic effort, Redwood Ambassadors embrace the spirit of giving back and Redwood Cares all year long. In fact, they can now use up to 16 hours of volunteer time off per year. Team members can be found volunteering everywhere from animal shelters to food banks, and often host special events to benefit local nonprofits in neighborhoods throughout the portfolio. In 2023, Redwood team members volunteered a total of 1,215.5 hours.

Redwood is also proud to partner with One Tree Planted, an environmental nonprofit, by donating $1 on behalf of each new Redwood employee, resident and investor to plant a tree in an area in need of reforestation. In 2023, 7,228 trees were planted thanks to these efforts.

Looking ahead in 2024, Redwood’s plans call for continued growth and expansion, with the addition of new single-story apartment homes in current and upcoming suburban markets. New investors looking to diversify their portfolios through real estate and current Redwood partners who want to build on their success have plenty of opportunities to do so in the coming year. Redwood anticipates adding 15 new neighborhoods and three new phases to existing neighborhoods across six of the states where Redwood currently operates. To learn more about these deals and Redwood’s specialized approach to development and property management, fill out a contact form.