change doesn’t kill… - national apartment association woodward. in order to succeed we . must…...

#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


Polling


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


Get On Board, It Is What It Is, Be Flexible…

What is your adaptability score?


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!


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


Polling Question #2

Did you stay with the property/company after they were sold?A. YESB. NOC. N/A


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)


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


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


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


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)


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


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


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


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”


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


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


Share Your Thoughts on this Session – Speaker Survey

How are we doing?


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


David Woodwarddwoodward@compassrock

re.com

Stephanie [email protected]

Kate IrvingKate.irving@northwood

ravin.com

Pat [email protected]

Contact Info

mailto:[email protected]




change doesn’t kill… - national apartment association woodward. in order to succeed we . must…...

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