#NAAEDU17Breakout Sessions Sponsored by
Change Doesn’t Kill… But Transitions MightStrategies for Operational Excellence During Acquisition and Disposition of Multifamily AssetsFriday, June 23, 2017; 12:45PM – 1:45PM
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
David WoodwardChief Executive Officer
CompassRock Real Estate
Stephanie HovisSenior Director Real Estate
Greystar
Kate IrvingDirector of Marketing
Northwood Ravin
Pat PattersonBusiness Development
CoStar Group
Moderator
Meet the Experts
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Polling
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Polling Question #1
Have you worked at a property or company that has been bought or sold in the past 24 months?A. YESB. NOC. More than once in 24 months
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Get On Board, It Is What It Is, Be Flexible…
What is your adaptability score?
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
CHANGE vs. TRANSITION
Change is a one time occurrence. It’s a shifting of one person, place or thing to another.
Self imposed – I choose to make a change Imposed upon us – Not my choice to change
Change is inevitable…Growth is Optional!
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
CHANGE vs. TRANSITION
Transition is the ongoing process of dealing with change. Letting go of how things were and embracing how things might become. Shifting from one state of being to another Sometimes transitions precede change with an
internal shift from one state of being to another“Life is pleasant. Death is peaceful. It’s the transition that’s troublesome.”
Isaac Asimov
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Polling Question #2
Did you stay with the property/company after they were sold?A. YESB. NOC. N/A
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Quarterly U.S. Apartment Transaction Volume And Pricing
Source: CoStar Portfolio Strategy As of May 2017
$105
$110
$115
$120
$125
$130
$135
$140
0
20
40
60
80
100
120
140
160
180
Last Five Years (2012-16) Last Year (2016) Year To Date (2017)
Sales Volume (Billions)
Annual Sales Volume Average Price Per Unit
Average Price Per Unit (000s)
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Quarterly U.S. Apartment Transactions And Units Sold*
Source: CoStar Portfolio Strategy As of 17Q1*Four-quarter rolling average.
0
50
100
150
200
250
300
350
400
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Number Of Transactions Number Of Units Sold
Units Sold (000s)Transactions
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Top 54 Metros Average Price/Unit By Star Rating & Year Built
Source: CoStar Portfolio Strategy As of 17Q1*Four-quarter rolling average.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2012 2013 2014 2015 2016 2017
Price Per Unit (000s)*
Premium 3 Star, Built 1980-99 4 & 5 Star, Built 1980-99
Premium
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Average Price Per Unit By Walk Score
Source: Walk Score; CoStar Portfolio Strategy As of 17Q1Note: Portfolio sales excluded, only sales over $5 Million
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
07 08 09 10 11 12 13 14 15 16 17
Price Per Unit (Four-Quarter Rolling Average)
Under 49: Car Dependent 50-69: Somewhat Walkable70-89: Very Walkable Over 90: Walker's Paradise
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Rent Bump From New Ownership
Source: CoStar Portfolio Strategy As of 17Q1
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
07 08 09 10 11 12 13 14 15 16 17
Rent Growth (Y/Y)
1 Year 2 Years 3 Years 4 Years National Average Rent Growth
1 Year: 3.04%2 Years: 2.40%3 Years: 2.20%4 Years: 2.12%National Avg: 2.05%
Average Rent GrowthAfter Acquisition (2007-16)
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Polling Question #3
Why did you stay with the property/company?A. Needed a jobB. New company was better (a better boss, benefits, or pay)C. More opportunity/career pathD. N/A or didn’t stay
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Stages of Transition “Transition Framework” by William Bridges
Change Happens to Everyone
Endings – Acknowledge the sadness, anger, loss and letting go Neutral Zone – Navigate fear and
confusion, space for creativity New Beginning – Celebrate new
identities, build on small successes
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
David WoodwardIn order to succeed we MUST… Ensure smooth transition of operations Maintain good relationships with key members of the seller Set specific metrics for the operating team to maintain during
the marketing process In order to succeed we MUST NOT… Allow the seller to block communication with the current
management team Hide obvious capital needs Keep residents in the dark
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Stephanie HovisIn order to succeed we MUST… Take care of our people; all of them Over communicate with everyone Remember WIIFM - “What’s in it for me?”
In order to succeed we MUST NOT… Tell them what they want to hear, be honest and upfront Forget to check the “temperature” of the deal Forget the #1 Rule - “KISS”
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Kate IrvingIn order to succeed we MUST… Look at the BIG ‘reputation picture’ Know your property and company niche Maintain and streamline your messaging; Branding, Marketing
and Communication In order to succeed we MUST NOT… Ignore Residents – That’s over 300 good impressions you need! Lose momentum – The deal depends on a strong finish Ignore the corporate culture of seller and buyer
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Polling Question #4
Why did you leave the property/company?
A. Was not offered a jobB. Scared about job security & left before sale was completeC. New company reputation not goodD. Less pay/benefits were offeredE. N/A or didn’t leave
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Share Your Thoughts on this Session – Speaker Survey
How are we doing?
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
Panelist Q & A
We are the change we
seek.
Barack Obama
People don’t resist change. They resist being changed! Peter Senge
If you don’t like something, change it. If you can’t change it, change your attitude. Maya Angelou
Innovation has nothing to do with R&D dollars. It’s not about money. It’s about the people you have, how you are led, and how much you get it.
Steve Jobs
#NAAEDU17June 21-24, 2017 Georgia World Congress Center Atlanta
David Woodwarddwoodward@compassrock
re.com
Stephanie [email protected]
Kate IrvingKate.irving@northwood
ravin.com
Contact Info