From one perspective, the multifamily industry is huge and decentralized. More than 16 million apartments sprawl across the country, with big players controlling hundreds of thousands of units and tiny firms managing just a building or two. But if you go to a multifamily trade show, you'll sense the feeling of community in the industry. Executives from apartment and condo companies large and small mingle like old friends with their colleagues, bankers, institutional investors, technology providers, and association leaders. They greet each other in the hallway or at a cocktail reception, sit down at a small table, and quickly start doing business. But these people, who exert tremendous influence on the direction of the apartment and condo business, aren't the only ones with power. Look outside the industry, and you'll see other individuals asserting their authority in ways that aren't always positive for multifamily firms, as the actions of President George W. Bush and Rabbi Bruce E. Kahn show.
So, when Multifamily Executive set out to name the most influential people in the industry, we had lots of men and women from whom to choose. (We also received numerous nominations from MFE readers.) We sifted through the names and explanations, choosing just 30 to highlight in this story. Some selections, such as the handful of apartment REIT leaders on this list, are obvious. Others are not. But that's the nature of influence: It often operates most effectively behind the scenes. –Les Shaver
30.
Susanne Hiegel, director of multifamily solutions, Fannie Mae. Sometimes influence isn't necessarily confined to the top of the corporate ladder. If you don't believe that, look at Susanne Hiegel. At Fannie, Hiegel deals with the big clients and massive transactions involving multiple properties. In this capacity, she's facilitated deals for Equity Residential (two deals of more than $200 million and four deals of more than $100 million) and Camden Property Trust (a $272 million fixed-rate transaction for a group of 12 joint ventures between Camden and clients of the Tuckerman Group). Hiegel is so well-liked that these big clients will ask for her. The reason: They know the influence she has inside Fannie Mae. While her bosses have come and gone over the years, Hiegel has remained a constant. Her supervisors respect her opinion, and when she backs a deal, they normally follow, says one industry executive.
29.
Ronald E. Harwick, vice president and founding partner, James, Harwick + Partners. If the project calls for high density, mixed use, or urban infill, JH+P architects can showcase a dazzling design portfolio. The Dallas-based firm is a leading proponent of the New Urbanism school of design. Cityville Fitzhugh, a Dallas project that wraps three-story residential construction around a parking garage, won MFE's Project of the Year: Low-Rise award in 2005. The company's townhome designs for Atlanta's Perry Homes master plan development garnered a 2005 NAHB Pillars award as best affordable project. Those closest to Harwick describe him as a man who insists on designing "buildings that work." His background in construction and spec writing also gives him a strong feel for the economics of his projects. Yet the firm delivers a surprising amount of amenities, even in government-sponsored senior-housing projects.
28.
Jorge Perez, chairman and CEO, The Related Group of Florida. During the past several years, condos have been king in multifamily. It would be hard to believe that anyone has more made money off these for-sale units than Related chieftain Jorge Perez. Last year, Related found itself at number two on MFE's list of Top 50 multifamily builders on the strength of its condo development. The firm's portfolio holds projects valued in excess of $10 billion. But Related's condos aren't just mass-produced, cookie-cutter buildings. Above all, Perez values art and beauty, which has led to such elaborate projects as the Icon South Beach (which features a 27-foot coffee urn in the lobby). It's not just South Florida that's taken notice. In 2005, Time magazine named Perez one of the 25 most influential Hispanics in the country. Proof of his ascendance in the industry: When you're at real estate conferences and someone mentions condos, someone else mentions The Related Group of Florida within minutes.
27.
Carol J. Galante, president and CEO, BRIDGE Housing. Building in California isn't easy. Any developer will tell you that. So when someone builds 8,500 homes, it's newsworthy. The headlines get even bigger when you learn the homes are affordable. But that's exactly what BRIDGE Housing in San Francisco has done. To be able to fight NIMBY issues and build affordable developments, BRIDGE leader Galante wields a tremendous amount of influence with local governments. The firm pulls off big deals, like the $108 million mixed-used North Beach Place joint venture in San Francisco with John Stewart Cos., that most other affordable developers only dream about. "She has the ability to lean on a community to get them to step up to the plate in affordable housing," says John Stewart, chairman of John Stewart Cos. "She's very successful."
26.
Mary Ann King, president, Moran & Co. When it comes to mastering the "art of the deal," few in the apartment business can match the skills of Mary Ann King. Since 1994, King has been responsible for more than half of the $5.1 billion in apartment transactions handled by Moran,a national apartment investment and brokerage firm. "She's extremely bright, technically savvy, and brings great depth to the process of buying and selling," says one apartment expert. In a transactions field traditionally dominated by the "old boys network," King has earned the reputation as perhaps the most successful broker in California. "Mary Ann's a terrific role model for women in real estate," notes a REIT executive. Active both with ULI and as 2005 vice chair of the National Multi Housing Council, King is also much in demand as a conference speaker.
25.
Mike Mueller, CEO, Realty DataTrust. When Mike Mueller worked at CB Richard Ellis, his colleagues always wondered why he spent so much time messing with computers. They soon found out when he launched AllApartments.com, one of the first places people could search for apartments online. Many credit the site and Mueller with pioneering the idea of looking for apartments online. Mueller eventually sold AllApartments.com, which became Homestore, and took a break from the business. But his vacation didn't last long. Seeing a need for a software product that consumers could use to research, price, and reserve apartments online, he returned with VaultWare, and again, he's at the head of the pack. "Mueller is trailblazing when it comes to online leasing," says Dan Haefner, senior vice president and chief information officer for Lane Co. in Atlanta.
24.
Sharon Dworkin Bell, senior staff vice president for multifamily, NAHB. Through most of its history, say multi-housing experts, NAHB has focused primarily on single-family, for-sale housing. Even when the association created its multifamily division, apartment developers were skeptical that NAHB was truly inclined to represent their concerns. That thinking has changed since Bell came to the organization in 2001. "She has restored the credibility of the multifamily division at NAHB," says one apartment REIT CEO. Prime examples of Bell's work on behalf of multifamily include conferences and the Pillars of the Industry awards program, which showcases excellence and innovation in some 30 categories of multifamily development. She also has strengthened NAHB's Multifamily Leadership Board of top industry executives and championed multifamily interests in such areas as legislation, building codes, standards, zoning, legal questions, and affordable housing.
23.
F. Barton Harvey III, chairman and CEO, Enterprise Community Partners. In 1984, Bart Harvey left a lucrative investment banking job to join the legendary James Rouse in Enterprise's crusade to develop affordable housing for low-income families. Described as "passionate beyond belief" about that mission, Harvey and his colleagues work with 2,400 nonprofit groups, public housing authorities, and Native American tribes to finance more than 12,000 affordable units annually. In late 2004, Enterprise made a $1 billion commitment to create or preserve 15,000 homes for low-income families in New York City over five years. Another new initiative is the foundation's Green Communities program, a five-year, $555 million effort to build 8,500 affordable units designed to conserve water, energy and other resources. The foundation also has been very aggressive in providing emergency housing for low-income Katrina victims and is planning construction of thousands of homes in the storm-torn region.
22.
Mark Humphreys, founder and CEO, Humphreys & Partners Architects. Ask prominent multifamily builders to name their "go-to architect," and the name Mark Humphreys comes up again and again. The Dallas-based firm is described as "fast, flexible, and easy-to-work with," whether the project is an apartment tower, lofts above retail, or a mid-rise that wraps around parking. Described as a consummate marketer, Humphreys pioneered the "Big House"–mansion-like structures that yield high rents and calm the NIMBY set. That creative spirit also extends to high-rise buildings, where Humphrey has introduced such concepts as the "home-rise," where elevators open to a small cluster of units rather than a long hallway. Developers praise Humphreys' architects for creating large structures that appear less imposing on the outside and more livable on the inside, while blending well with the surrounding neighborhood.
21.
Geoffrey L. Stack, managing director and principal, Sares-Regis Group. This highly respected California executive heads a firm with real estate properties and management contracts valued at more than $3 billion, including more than 12,000 apartments and 15 million square feet of commercial space. "Jeff runs a terrific organization and is great to work with," says a joint venture partner. Known for creating a corporate culture that instills deep loyalty in staff, Stack has assembled a strong portfolio of Class A properties and been a pacesetter in developing premium condo projects and conversions. Prime example: the fast-selling new Watermarke project in Irvine.
A former Marine Corps officer and U.S. Senate aide, Stack was the 2005 chair of the National Multi Housing Council. In that role, he strengthened relationships with groups as diverse as the Urban Land Institute and the Sierra Club–and focused attention on affordable housing, emerging technologies, and the insurance crisis.
20.
Tom Bozzuto, president and CEO, The Bozzuto Group. Some multifamily executives wield tremendous influence in the industry. Others help shape their surrounding communities. Tom Bozzuto does both. His company, The Bozzuto Group, builds a wide variety of housing for residents in Maryland, Virginia, and Washington, D.C. Bozzuto also takes a leadership role in the industry, serving such groups as the Millennial Housing Commission, Harvard Joint Center for Housing Studies, National Association of Home Builders, and National Multi Housing Council. "Invariably in the multifamily arena, we knock on Tom's door and ask him to be a sounding board," says Nicolas Retsinas, director of Harvard's Joint Center for Housing Studies. "He's more than a sounding board. He has some very constructive insights." And, given Bozzuto's reputation, these insights and ideas can often become reality.
18. (TIE)
George W. Bush, president, United States of America. If you build homes, you're likely a fan of President Bush, whose speeches often cite the goal of promoting an "ownership society" in America. Example: "If you own your own home, you have a vital stake in the future of the country." Accordingly, Bush signed a $200 million American Dream Act to help first-time buyers cover down-payment and closing costs. The administration also has proposed zero down payment FHA mortgages and tax credits for building homes for low-income families. Among those who own and manage apartments, though, many view the Bush record as disappointing. "It took Mel Martinez (the former HUD secretary) two years to even utter the word rental," says one apartment expert. Under Bush's watch, HUD also changed the reimbursement formula on Section 8 vouchers for low-income renters, putting a greater cost burden on housing authorities. And, despite an undeniable need for affordable apartments, the low-income housing tax credit, established in 1986, remains the only major production stimulus for workforce rental housing.
18. (TIE)
Jerry Seinfeld, Monica Geller, and Carrie Bradshaw, television characters. In the '50s and '60s, shows that glorified family life in small towns or quiet suburbs dominated television. But in the '90s, things started to change. "Seinfeld" premiered, only to be followed by such urban-centered programs as "Friends" and "Sex and the City." "So many of these cutting edge shows are about life in the city," says John K. McIlwain, senior resident fellow and ULI/J. Ronald Terwilliger chair for housing at the Urban Land Institute. The common thread: Each show glamorized the life of young, urban singles living in apartments. McIlwain and others believe the shows helped draw many of today's twenty- and thirtysomethings to apartments and condos–and created a thriving market for today's apartment owners and condo developers.
17.
Doug Bibby, president, National Multi Housing Council. While there's a wave of consolidation going on right now, the apartment industry is still a widely scattered group. Topping the list are the big players: REITs, pension funds, institutional owners, and large, private companies. Then there are the affordable housing developers, regional players, and mom-and-pop owners and managers. That's a pretty big group to fit under one tent, right? Well, as head of the association representing the apartment industry, Doug Bibby tries to make room for everyone, according to many apartment executives. But that's only part of Bibby's job. He also helps set the agenda for the industry and serve as a spokesperson to the outside world, whether that's Capitol Hill, local governments, or the media. "Doug takes the lead in shaping discussions," says Geoffrey L. Stack, managing director of Irvine, Calif.-based Sares-Regis Group.
16.
Steve Winn, chairman, CEO, and president, RealPage. For some people, real estate is in their blood from the beginning. For others, it's something they find later in life. But that doesn't mean they can't become big players in the business. Just look at Steve Winn. He started as president of the hugely successful Research Institute of America and, later, Computer Language Research. As CLR expanded, it scooped up a variety of firms, including Rent Roll, the predecessor to RealPage, and Winn immediately became intrigued with the multifamily business. Now it's hard to find a product with which Winn's RealPage isn't involved. The company offers software for property management, property marketing, revenue management, and cash management. But Winn's influence can't just be judged by the scope of his products. It's also fortified by his desire to improve them and meet his users' needs, say some of his key customers.
15.
Constance B. Moore, president and CEO, BRE Properties. Joining the California-based apartment REIT in 2002 as executive VP and COO, Moore took over the CEO reins in January 2005. Cited by many as one of the industry's "rising stars," Moore previously served as managing director of Security Capital Group. While many REIT executives rose through the ranks as transactions specialists, Connie is known as a broad-based executive, equally at home with finance, marketing, construction, management, and technology concerns. "She had about six different major jobs at Security Capital," noted one former colleague. "She's great at seeing the big picture." At BRE, Moore has been shifting the portfolio out of commodity-type properties in the mountain states and focusing more on upscale complexes in California. A stickler for good tenant relationships, Moore also has targeted an apartment-building campaign valued at about $250 million annually.
14.
Rabbi Bruce E. Kahn, executive director, Equal Rights Center. If you think your rental project meets accessibility requirements, check again. That's the advice of lawyers in the wake of discrimination suits that Rabbi Kahn's Washington-based center has brought against three major apartment developers: Archstone-Smith Trust, AvalonBay Communities, and The Bozzuto Group. Archstone-Smith in June agreed to pay $21 million to renovate some 70 complexes. Critics of Kahn say he has chosen to follow an extreme interpretation of the 1986 Fair Housing Act, in effect treating design, development, and construction guidelines as if they were strict codes. Kahn, a former Navy chaplain and senior rabbi of a Chevy Chase, Md., synagogue, sees it differently: "Many players in the rental housing industry seem to believe that they can, with impunity, shut their doors to people with disabilities. This attitude is wrong, legally and morally."
13.
Steve Ross, chairman and CEO, The Related Cos. Often people stand out in just one aspect of real estate, whether it's financing, development, or operations. But Steve Ross shines in multiple areas. Ross created one of the largest financiers of debt and equity for affordable housing in the country, and he is one of the largest developers of condos in the country. Ross owns 19 percent of CharterMac, which has more than $19 billion of assets under management. The Related portfolio includes more than $8 billion worth of developments. Ross' projects cover all ends of the spectrum, from financing affordable developments to building the $2 billion Time Warner Center in New York. "The breadth of his reach is quite extraordinary," says Andrew Farkas, a Ross friend and colleague and chief executive of Island Capital.
12.
George M. Marcus, chairman, Marcus & Millichap Co. Emigrating from Greece to San Francisco at age 4, Marcus has built a huge and diversified real estate empire. Marcus & Millichap, which he founded in 1971, closed $14.4 billion in transactions in 2004, making it one of the country's biggest real estate brokerage firms. Marcus also pulls the strings on privately-held Pacific Property Co., which buys, rehabs and sells multifamily properties, and the publicly held Essex Property Trust, perennially among the top-performing apartment REITs. Focusing on California and the Pacific Northwest, Essex owns some 26,000 units and is much admired for its ability to read markets. This past fall, Essex distributed a dividend for the 45th consecutive quarter. Other activities controlled by the reserved, hardworking Marcus include: home building, a strong research arm, joint-venture real estate financing, and venture capital for Web-based real estate companies.
11.
John K. McIlwain, senior resident fellow, Urban Land Institute. In 2001, ULI picked McIlwain, a prominent Washington lawyer, to fill the newly created J. Ronald Terwilliger chair for housing. As experts see it, the institute couldn't have made a better choice. "John has done a great deal to raise ULI's consciousness about the need for workforce housing," says one affordable housing advocate. Prior to joining ULI, McIlwain headed Fannie Mae's American Communities Fund, dedicated to financing low-income housing and revitalizing deteriorating neighborhoods. Described as a "thought leader and intellectual entrepreneur," McIlwain is constantly crisscrossing the country, working with ULI chapters, nonprofits, and local governments to find creative solutions to the affordable housing shortage. His views and analysis, shaped by those experiences and his work as former chairman of the National Housing Conference, appear frequently in newspaper articles, research reports, and government testimony.
10.
Shekar Narasimhan, managing partner, Beekman Advisors. When it comes to housing finance, you need to mention just one word: Shekar. "He's got rock star status in our industry," notes one observer. HUD and USDA officials sought Shekar's help on special task forces to provide temporary and long-term shelter in areas ravaged by Hurricane Katrina. USDA also tapped him to analyze the much-neglected area of rural housing. For such assignments, Shekar draws on years of experience as a mortgage banker and participant on boards ranging from nonprofit groups to the Mortgage Bankers Association, the National Multi Housing Council, and the Harvard Joint Center for Housing Studies. Known for his "burning passion" for fostering affordable housing, Shekar doesn't hesitate to challenge HUD, Fannie Mae, and Freddie Mac to do more. Meanwhile, his firm engineers key industry deals, such as the 2004 acquisition of Berkshire Mortgage by Deutsche Bank.
9.
Ronald A. Ratner, president and CEO, Forest City Enterprises Residential Group. "High-energy, committed, a risk taker." That's how one apartment expert describes Ron Ratner. In a division that owns or operates some 35,000 apartment units, Ratner has shaped projects that have transformed urban neighborhoods, often through adaptive reuse. Renters now live in stylish lofts that the company fashioned from a Boston bakery, a Denver officers' quarters, a Los Angeles rail terminal, and tobacco warehouses in Richmond, Va. Among Forest City's major mixed-used developments is Brooklyn Atlantic Yards, a $2.5 billion project that will include offices, retail, market-rate and affordable apartments, and a new arena for the New Jersey Nets pro basketball team. Preservationists praise Ratner for his "broad urban vision," which goes beyond development or renovation of buildings to embrace the economic payoffs for entire neighborhoods. He is lobbying to make federal tax credits for rehab more useful for smaller projects.
8.
Peter F. Donovan, CEO, Deutsche Bank Berkshire Mortgage. Corporate takeovers can be devastating to staff, but the steady hand of Peter Donovan has kept morale high at Berkshire Mortgage since its acquisition by mammoth Deutsche Bank in 2004. In fact, Donovan actively sought a powerful partner to enhance his mortgage banking firm's balance sheet and provide expanded services to customers. That's good news for apartment developers, who depend on Berkshire financing. With Donovan at the helm since 1991, Berkshire has led the way in government-sponsored multifamily loans. Its servicing portfolio totals more than $18 billion, virtually all of it in Fannie Mae, Freddie Mac, FHA, and affordable housing loans, and the firm originates more than $3 billion in loans annually. One of the industry's most astute finance authorities, Donovan is a mainstay at ULI, the Mortgage Bankers Association, and the National Multi Housing Council.
7.
Thomas Toomey, president and CEO, United Dominion Realty Trust. How do you revive an apartment REIT whose lackluster performance had turned off investors? Hire Tom Toomey. Since the financial expert was lured away from AIMCO in 2001, Toomey has engineered an impressive turnaround. He has restructured debt, improved operations, built a more effective team, and relocated the corporate office from Richmond to Denver. Perhaps even more important is his reshaping of UDRT's portfolio, which critics claim had become far too broad. He has sold properties in less attractive areas, where rents are lagging, and added billions of dollars of new assets in California, Florida, and D.C. where job growth is strong and barriers to development are high. "This industry can be very insular in its thinking," says one executive, "and Tom is a dynamic, energetic guy who brings a fresh perspective."
6.
Richard J. Campo, chairman and CEO, Camden Property Trust. When Ric Campo saw busloads of Katrina-displaced people heading for Houston's Astrodome, it didn't take long for him to spring into action. Not only did he make hundreds of his own firm's vacant apartments available to the newly homeless, but he also mobilized other Houston apartment executives to lend a hand. That take-charge attitude characterizes the way Campo has run Camden. Its market capitalization has soared from less that $200 million at its IPO in 1993 to more than $5.7 billion today with the 2005 acquisition of Summit Properties. That deal sharply accelerated Campo's campaign to broaden the portfolio outside Texas into such areas as Florida, Georgia, North Carolina, and Washington, D.C. REIT executives also cite Campo's appreciation for branding and his aggressive use of the Web for revenue management, marketing, and procurement.
5.
R. Scot Sellers, chairman and CEO, Archstone-Smith. A long-time Wall Street analyst calls Sellers "one of the most impressive CEOs in the REIT industry." With 25 years in the business, Sellers has spearheaded the development, acquisition and operation of apartment buildings worth more than $25 billion. "He's led the charge to double the size of Archstone-Smith," says a rival executive. Others add that the Sellers "thinks outside the box," pioneering innovations in revenue management and technology for credit scoring. In the past year, Sellers has used hefty profits from apartment sales to condo converters for acquisition of "A" projects in high-barrier regions. Among major deals in 2005: the $1.1 billion acquisition of 25 projects from Oakwood Worldwide, most in prime areas of California. Ernst & Young named Sellers its 2005 Entrepreneur of the Year in Real Estate for the Rocky Mountain region.
4.
Craig Leupold, principal, Green Street Advisors. Considered by many to be the nation's leading financial expert on publicly held apartment companies, Leupold has served as senior REIT analyst for Green Street since 1993. "He was there when many REITs went through their IPOs, and he has been following them closely every since," says one research expert. Known for his blend of dogged number-crunching and solid relationships with key players in the industry, Craig has compiled a sterling record of dissecting corporate strategies and accurately predicting shifts in the market values of companies he follows. Industry executives closely watch his reports on individual REITs, as well as his quarterly analyses of the overall apartment market. His track record has earned a passel of awards from financial publications both for himself and Green Street, an independent research firm respected for its courage and objectivity.
3.
J. Ronald Terwilliger, CEO, Trammell Crow Residential. Perhaps the most well-known executive in multifamily housing, Terwilliger's influence touches virtually every important industry initiative. For nearly two decades, he has led one of the nation's largest multifamily real estate firms, which has developed more than 200,000 units spread across virtually every major market. He also has played a key role in fostering a corporate culture at TCR that has groomed numerous managers who now head other leading companies. Insiders say that Terwilliger's just-completed three-year stint as chairman of NAHB's Multifamily Leadership Board vastly enhanced the group's stature within the association, spurred participation by many top-level executives, and added multifamily issues to NAHB's lobbying agenda. At the Urban Land Institute, where he also served as chairman, Ron has championed smart growth and endowed a research chair dedicated to finding creative ways to build more workforce housing.
2.
Bill Sanders, co-chairman, Verde Realty. Bill Sanders has never been one to reach for the spotlight. Instead, he works behind the scenes to build large organizations. So while he's out of sight in El Paso, Texas, working on Verde Realty, his influence is still felt on the industry. In addition to taking the securitization of real estate to new levels and starting Security Capital (which became Archstone-Smith), Sanders also developed an impressive array of executive talent that today steers many of the top companies in the industry. Alums include Sanders protégé Scot Sellers, who runs Archstone; Dave Woodward, who is the CEO and managing partner of Laramar, Steven LeBlanc, the former president and CEO of Summit Properties (now absorbed into Camden), and Connie Moore of BRE Properties. "Bill put together a team of the most highly talented people in the real estate industry ever under one roof," says Jeff Allen, a Security Capital alum who now leads his own firm, J.B. Allen Realty in San Juan Capistrano, Calif.
1.
Samuel Zell, chairman and founder, Equity Residential. Zell's apartment REIT is the nation's largest multifamily company, with nearly 1,000 properties and 200,000 units. Led by new CEO David Neithercut, the firm is focusing the portfolio more on prime properties. Example: recent acquisition of three Manhattan apartment towers–the former Trump Place–for $816 million. Zell, whose personal worth was pegged at $2.3 billion in the latest Forbes listing of richest Americans, chairs three other publicly-traded REITs, as well as a privately-held investment company and an international real estate firm. All this from a man who started out buying distressed properties. Colorful and outspoken, Zell has endowed business chairs at the University of Michigan and the University of Pennsylvania's Wharton School, where one alum says his "most memorable experience" at the prestigious school was hearing a 90-minute speech by Zell. Talk about power and influence.
Faceless Forces
Everyone recognizes the big names of multifamily–Zell, Sanders, and Terwilliger, just to name a few. But they aren't the only ones with power. Here are the faceless forces that are shaping the industry today.
Condo Converters: Apartment owners used to be able to determine the value of an apartment with a simple cap rate calculation. Then the condo craze began. Today, if you want to be competitive in a deal, traditional costs and rent estimates no longer apply. Apartment executives who want to buy a rental property must compete against buyers who want to sell the building's units as condos–and they can offer a lot more money based on their condo-based exit strategy.
Local Government: As real estate cycles come and go, this remains a constant: Local elected officials can be thorns in the side of multifamily companies seeking approvals for projects. The latest twist: local regulations that restrict apartment owners' highly profitable sales of apartment buildings to condo converters. (Local officials from coast to coast say they're worried about losing affordable apartments to condo conversion.)
NIMBYs and BANANAs: While local government can cause problems, there are often community groups involved as well. These citizen groups could be up in arms about anything, from how many school seats a new apartment building would require to the number of low-income residents a development might bring to the neighborhood. Regardless of their motives, these groups can embolden local officials to stall or make ridiculous demands on a project.
TICs: Relatively new to multifamily, tenant-in-common, or TIC, arrangements work like this: A TIC fund manager pools money from individual investors (who are often reinvesting the capital gains from a previous real estate investment) to buy apartment properties, giving everyone a piece of the real estate craze without the hassle of toilets and tenants. But many are concerned about the amount of TIC capital flowing into the apartment deal market and its effect on prices. Others are skeptical that these funds have the expertise to manage these properties effectively, despite their high fees. As a result, these TIC situations are "a house of cards," believes one apartment executive.
Condo Speculators: People have been debating for several years whether the condo market is overinflated, and if so, why. One big reason: speculators. Too many of these people are buying condos with hopes of a quick and highly profitable flip, and it could mean the condo market is in for a big fall. Regardless, these price appreciations have already had serious consequences for apartment people, making both land and existing apartment properties more difficult to buy.
Stat Watchers
This is indeed the information age. And whether it's large apartment REITs, smaller multifamily firms, or pension funds, everyone wants to know what's happening with effective rents and other key multifamily statistics. It's created quite a market for the researchers who provide this information. Here are five of the most frequently cited by multifamly leaders:
- Gleb Nechayev, vice president and senior economist, Torto Wheaton Research
- Hessam Nadji, chief marketing officer and managing director, Marcus & Millichap
- Greg Willett, vice president of research and analysis, M|PF YieldStar
- Ron Witten, president, Witten Advisors
- Mark Obrinsky, chief economist and vice president of research, NMHC
Twenty To Watch
Ask anyone in the multifamily industry who the true power players are, and you'll hear a handful of names over and over again. For this story, we picked 30 who are truly changing how the industry does business. But we also heard about other people–up-and-comers, established leaders, regional players, and sector specialists–worthy of mention. You'll find those 20 people here.
- Bryce Blair, chairman, AvalonBay Communities
- Michael Bodaken, president,National Housing Trust
- Richard F. Cavanaugh, president, Fifield Corp.
- Patrick E. Clancy, president and CEO, The Community Builders
- Nevel DeHart, executive vice president, Registry-SafeRent
- Bill Donges, president and CEO, Lane Co.
- Bob Faith, CEO, Greystar
- David D. Fitch, CEO, Gables Residential
- Brian Galla, director of technology, Lincoln Property Co.
- Jim Hurley, portfolio manager, CalPERS
- G. Allan Kingston, president and CEO, Century Housing
- Chris Lee, president and CEO, CEL & Associates
- Laurie Lyons, CEO, BH Management
- David J. Neithercut, president, Equity Residential
- Steve Patterson, President and CEO, ZOM Development
- George Quay, president and COO, Village Green Companies
- Linwood Thompson, managing director, Marcus & Millichap
- Alan Wiener, chairman, American Property Financing
- Leonard Wood, director, Wood Partners
- Dave Woodward, CEO and managing partner, The Laramar Group