2021 NMHC Top 25 Developers

A longtime multifamily development firm begins a new chapter this year. Herman & Kittle Properties has become Kittle Property Group, reflecting an ownership transition to president and CEO Jeff Kittle. The friendly transaction was several years in the making and spurred by the retirement of partner Tom Herman in 2011.

Kittle recently completed the buyout of Herman’s interest in the operating company as well as 41 properties with nearly 3,800 apartment homes last year.

The firm, which focuses on affordable properties, is among the nation’s largest multifamily housing developers. It ranks No. 21 on the NMHC list of top developers and No. 24 on the NMHC list of top builders.

Overall, Kittle Property Group owns and manages more than 18,000 apartment homes in 19 states and has invested capital of more than $2.5 billion.

The new company will be more similar than different from the prior firm, according to Kittle.

“Our vision of a resilient company that’s built to last and provides homes for 35,000 families remains the same,” he says. “Our team members remain the same. Our development, construction, and operation of affordable and workforce housing across the country remains the same.”

However, there’s more than just a name change. The firm has a new headquarters with expanded office space in Indianapolis, and the new common ownership of the company and a portfolio of about 160 properties will allow for greater efficiencies and flexibilities.

Looking ahead to this year, Kittle Property Group has three main priorities. The first is helping residents who are on the eviction bubble because of the COVID-19 pandemic and economic downturn. Last year, the firm was able to help about 900 families obtain rental assistance, and that continues to be a focus in 2021.

The company also will be working to complete about 15 projects under construction across the country. “It’s critical we execute on that for all of our partners in a difficult construction time,” says Kittle, noting the volatility in pricing for lumber and other materials.

The third priority is to execute on the firm’s development pipeline. The goal is to close deals on eight to 10 developments, which would exceed last year’s activities that totaled about $400 million in development.

One move that the company has made is to utilize “prototype designs” for its developments. These standardized plans aim to achieve time and cost savings on the front end as well as the ongoing operations. “We want the properties to be durable and resilient,” Kittle says. “That’s part of our prototype design that they’re going to perform well during the operations of the property.”

The firm has several prototypes that it can adapt with a mix of different unit sizes, and it’s looking to create additional designs for its workforce housing developments.

In addition to its development activity, Kittle Property Group has a deep portfolio of low-income housing tax credit properties. It bought out about 27 limited partners from those developments last year and expects to buy out about 15 partners this year.

Kittle notes that the company’s history as an industry leader goes back to 1948, and he plans to build on that experience.

“These deep roots, combined with our commitment to our mission, vision, and values, have shaped the company’s success and allowed us to serve as a catalyst to local economies by sustaining families, neighborhoods, and businesses,” he says. “Over the years, Kittle Property Group has also assembled an exemplary leadership team with more than 300 years of combined experience. This leadership team, together with our valued team members and business partners, continues to build on our long-standing and successful reputation.”