Multi-Housing News - March 2009 - (Page 12)

profile From Left: Jeffrey Friedman, president and CEO, Associated Estates Realty Corp.; Tom Bozzuto, co-founder and CEO, The Bozzuto Group; W. Dean Henry, president, Legacy Partners Residential Inc. Riding Out the Storm Multifamily leaders share their strategies for navigating the rough waters ahead By Keat Foong, Executive Editor These are tough times, and they may get even tougher. Executives at several of the most timetested apartment companies share strategies on a range of topics—from the importance of technology and customer service to finding hidden opportunities created by the downturn. the demographics that impact household formation are at all-time highs. We expect the lack of new supply and the positive demographic trends to result in a more rapid recovery. How are you dealing with these challenges? We have always prided ourselves on the importance of extraordinary service. By focusing on resident satisfaction, we are able to retain residents who would otherwise consider relocating. Over 50 percent of our new residents come to us through the Internet, so we continue to prioritize this technology by making the experience as customer-friendly and convenient as possible. What is your current strategy for buying or selling multifamily, including distressed, assets? Over the last few years, we have methodically gone about the process of selling certain Midwest assets and growing in the Mid-Atlantic and Southeast. With nearly 45 percent of our property-level NOI coming from the Mid-Atlantic and Southeast, we would expect to continue to sell a few more Midwest properties. Currently, there’s not much distressed rental apartment product. However, we expect the situation to begin to change over the next six to eight months as owners are unable to refinance properties. The Bozzuto Group Tom Bozzuto/Co-Founder and CEO The Bozzuto Group covers the spectrum of real estate services through its six companies: Acquisitions, Construction, Development, Homebuilding, Land Development and Property Management. Headquartered in Greenbelt, Md., The Bozzuto Group currently has more than 1,900 rental units in the pipeline or under construction throughout the Mid-Atlantic and Northeast. Since 1988, the company has developed, acquired and built more than 31,000 homes and apartments. How is your company being affected by the current economic and financial crises? The economic climate has affected different parts of our company in different ways. It has created challenges for our development and acquisitions activities, given the difficulties in securing financing, and it has created opportunities for our third-party management and construction businesses. How are you dealing with these challenges? First, we are staying liquid and working hard to maintain our relationships, particularly with our financial partners and lenders. Secondly, we are pursuing opportunities we believe are created by this environment. Associated Estates Realty Corp. Jeffrey Friedman/President and CEO Associated Estates Realty Corp. currently owns and/or manages 13,192 units located in high barrier-to-entry submarkets in nine states. The REIT, which is headquartered in Richmond Heights, Ohio, a suburb of Cleveland, has been in the apartment development and management business for more than 30 years. Associated Estates’ portfolio is mostly located in the Midwest, primarily in Michigan and Ohio. However, it started expanding during the mid- to late1990s into new markets. How is your company being affected by the current economic and financial crises? The broader economic concerns are making it more difficult to increase rents and are creating downward pressure on occupancy in most of our markets. What is different this time around is that we have historically low new-rental construction starts, and 12 March 2009 | Multi-Housing News | Official Publication of Multi-Housing World

Table of Contents for the Digital Edition of Multi-Housing News - March 2009

Multi-Housing News - March 2009
Contents
From the Editor
Executive Insight: Jonathan Rose
Profile: How Owners are Riding Out the Storm
Market Report: Southern California
Development Case Study: A City in the Sky
Finance: Small Loans
Property Management: Marketing Magic
Products: Submetering
Kitchen & Bath: Water and Energy Conservation

Multi-Housing News - March 2009