Real estate finance, property management, organizational turnarounds
Executive skilled in leadership, operations, commercial/residential real estate, strategy, large/complex capital markets transactions, investor relations, marketing/sales, development and finance. Successful at increasing market share and sales and building high performance teams focused on serving the requirements of investors, customers, and employees. Track record in turn-around environments, increasing profits and market share, improving investor relations and communications.
Jan 2009 - Present
Management Consulting & Investment Banking for the Real Estate industry www.sanctuarygroup.us.com. This includes Multifamily Indexed Equity (MFIQ), LP a platform for a Patented Multifamily Inflation Indexed Investment Structure.
Chief Executive Officer
Leadership of strategic plan, product design, capital raising in public and private markets, underwriting, financial control, accounting/tax supervision, and distribution channel development. Selected accomplishments as follows;
- Assignments in REIT Stock Analysis, Property Acquisition Underwriting, Capital Structure, Property Management, Technology & Ancillary Revenue.
- Published author in all major multifamily industry publications including Multi Family Executive, UNITS, Multi-Housing News, as well as regular speaker at multifamily industry conferences.
- MFIQ - overall responsibility for product design, deal sourcing, deal underwriting and capital raising.
- o Sourced and underwrote $100MM of deals.
- o Original business plan called for perpetual unlevered investments with cash yields 400bp over US TIPS funded via IPO. Market conditions required multiple transitions to a private equity funded, 10 year duration, mezzanine preferred equity program.
Jan 2002 - Jan 2009
Chief Property Operations Officer
Total responsibility for Strategy, Property, Asset and IT Management for AIV across all product categories (Conventional, Affordable, Student, Luxury Value-Added). Member of Investment and Executive Committees. Reported directly to CEO, with regular reports to Board of Directors, investor quarterly earnings calls, public shareholders, investor conferences, banks, rating agencies, JV equity partners. Consulting Agreement in 2009. Selected accomplishments and duties by function as follows;
Cumulative 7% revenue growth above city market averages from 2004-2008. NOI growth greater than 5%, peaking at 9.5% in 2006. Recognized as chief architect of AIMCO's resurgence following '02 recession.
Investment Strategy Execution and Review
Repositioned portfolio from 100 markets at $650/month rents to 20 markets at $1000/month rents.
- Created and developed analytical framework to drive investment decisions:
- o target city markets, scale criteria, and investment return hurdles,
- o use of psychographic market segmentation (ESRI's Tapestry) to drive portfolio fit,
- o acquisition and dispositiontemplates - target markets, target sub-markets, rent growth assumptions, cap ex requirements, expense assumptions, redevelopment potential,
- Aligned debt maturities and redevelopment plans with expected hold periods.
AIMCO did not miss operational guidance from 2004-2008 after a series of guidance misses from 2001-2004.
- Led a financial staff (CFO, HQ Staff and regional controllers) in implementing forecasting and rolling budget process based on forward looking metrics. Implemented organizational plan to improve financial controls and act upon emerging trends.
- Implemented separate capital expenditure planning and management controls. Implemented a complete daily updated web enabled Balanced Scorecard toolset, along with operating standards and best practices processes.
Executive Committee & Capital Markets
Repositioned investor views and valuation through crisp and concise communication of the AIMCO story.
- Developed and communicated concept ofAIMCO's Corporate Strategyof "Value Add Strategy reduces Investment Risk and requires heightened Operational Intensity", which enables higher levels of property level debt and reduced enterprise risk, even with higher recurring capital expenditures than peers.
- Helped create the AIMCO capital markets strategy and participated in the following transactions; AIMCO Common secondary offering in 2002, AIMCO Preferred equity offerings in 2004, AIMCO-GE Capital Joint Venture 2005, Maintained AIMCO S&P, Moody's, and Fitch ratings by presentations to both organizations in 2004-2008, presented to Bank consortium for credit line renewal and extension, AIMCO-JP Morgan Joint Venture for LA properties 2007.
Ancillary revenues provided an additional 50 bp of annual revenue growth each year 2004-2008.
- Led team responsible for energy purchasing, utility rebilling, telecommunications, laundry and other co-marketing activity. Increased rebilling by 100%, which insulated AIMCO from un-hedged fluctuations in energy costs.
Revenue and Resident Credit Risk Management
1-3% revenue lift from revenue management, elimination of seasonal drop in occupancy in Q4, reduction in accounts receivable from 12% to 2%, and bad debt from 3% to below 1%.
- Led development and implementation of revenue management team, processes, and systems including weekly effective pricing, yield management, and lease expiration management across all product categories.
- Developed and implemented quantitative risk based resident quality standards for each property using commercially available services. Required regional/site staff to focus on product quality, cleanliness, and sales skill.
Call abandon rate reduced from 25% to 5%; e-lead abandon rate reduced from 75% to 0% with 98% response time within 2 hrs, resulting in 2% increase in occupancy. Web based demand now generates >70% of demand.
- Led development and implementation of a contact center to increase occupancy and revenue through increased responses, response times and professionalism.
- Established a centralized web marketing/social media team to exploit all forms of web based demand- ILS, property web sites, Craig's List., and social media.
- Developed consumer research for property management overhaul culminating in brand structure for 3 product lines brands to improve cost controls and revenue opportunity for the broad undifferentiated AIMCO portfolio.
Plan implementation to reduce IT cost 50% over 3 years.
- Initiated a complete technology strategy review. As a result, changed IT strategy to emphasize flexibility of IT systems to fluctuations in size, ability to sustain technology through upgrade cycles, and enhanced security.
- Practical shift from a proprietary "Big IT" department to vendor based industry solutions.
Regional/Site Functions, Service, Expense and Capital Management
$10M in vendor cost savings, reduced total unit cycle time from 34 to 15 days, reduced turn cycle time from 15 to 7 days. Improved customer service score from 35% to 90%. Total impact to NOI = 2%.
Oversight of 30 redevelopment projects, achieving lease-up and rent goals to obtain 7.5%-8.5% yields.
- Company began in 2004 a 5-10 year asset value added program in core coastal markets.
- Led development of location and product design targeting programs as well as processes/metrics to improve yields.
People and Culture
Reduced site level turnover from 45% to 35% and improved employee engagement scores from 57% to 75% in 3 yrs, sales yield 10%, and employee retention 30%, built regional asset mgmt and operational control organizations, consolidating University Communities Division ($1.5M), and Affordable Division ($1M).
- Transformed operations to a performance based, customer driven organization with identified job competencies, succession plans, career paths, and targeted training and development.
- Installed operating reviews and changed regional support functions in Sales, Service, Finance, and Training.
Achieved 6 year highs in Occupancy levels and rental rate growth, increased customer duration to 19 from 16 months, increased retention to 60% from 57% while increasing rents in excess of market averages.
Senior Vice President, Marketing & Risk Management (2002-2003)
Responsible for loss prevention and insurance procurement, AIMCO Marketing department- pricing, resident underwriting, on-site sales, advertising, internet media strategy, call and e-mail inquiry response. Revenue management was responsible for $1B in revenues and marketing department directed $40M budget. Selected accomplishments as follows;
- Turned $10M underwriting loss to $10M profit for AIMCO's captive insurance program.
- Stabilized revenue base, lack of forward looking models/ metrics led to an overly short-term focus, which deteriorated resident quality and physical asset quality.
Began development of revenue pipeline programs, implemented business review process and began building team in resident quality, media, inquiry response, e-commerce, pricing, and sales
May 2000 - Jan 2002
Vice President, Property & Casualty
Responsible for all property/casualty operations, specifically Personal Line Businesses.
Sep 1990 - May 2000
Colorado General Manager
Eighth largest region in the Corporation, $160 million premium income, 250 employees. A successful business: product marketing, claims, public relations, independent agent sales, direct/Internet sales, and government relations.
- Region's premium volume rose from $56 million to $160 million - exceeding all national averages.
- Reduced expense structure by 25%; targeted both short and long-term cost reduction goals by evaluating which functions/departments should achieve scale economies; initiated major cost reductions in claims department.
- Rallied management team to see cost reduction as natural component of business operations.
- Recognizing Company's superior capabilities in data segmentation and claims handling, introduced new product lines (preferred auto insurance) which were piloted in CO and then adopted nationwide.
- Established new distribution channels (direct and Internet); launched introduction of media advertising with direct response capability; secured 2 large call centers.
Product Manager-Mountain Division (1992-1996)
7 state division, responsible for pricing, underwriting, channel relations (agencies), sales and marketing and product development.
- Led growth from $17M to $52M and Consumer Name Brand Awareness increase from 14% to 88%.
- Drove turnaround performance leading to 35% annual volume growth.
- Successfully defended Progressive's multiple commission/expense load product structure before regulatory authorities.
- Led 4-year effort to increase brand awareness (yellow pages, advertising in print, radio, TV and cable TV), outdoor, safety and sport sponsorships. Established local public affairs office.
Manager of Consumer Research, Corporate Claims and Marketing (1990-1992)
Managed outside consulting teams in development of strategy for entry into Personal Auto Standard Market. Directed all phases of research design, research execution, and strategy development.
Aug 1984 - Aug 1990
Associate and Sr. Associate
Strategic Planning Associates
Assignments in aircraft engines, rail and ground intermodal transportation, fiberglass manufacturing, life insurance and consumer products.