Meet the top 50: NMHC's list stable despite record-breaking transactions and condo conversion volume.Apartment firms responded to a challenging year with different strategies that, on balance, created few shake-ups in the NMHC NMHC National Multi Housing Council
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NMHC National Modular Housing Council Top 50, the National Multi Housing Council's (NMHC) annual ranking of the top 50 apartment owners and top 50 apartment managers.
To sell or not to sell? That was the question for apartment firms in 2004 as prices for apartment buildings soared, aided by condominium condominium
In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. converters willing to pay a premium for buildings. Should they take advantage of the seller's market and pare their portfolios or should they hold onto their properties and buy more to take advantage of improving rental demand and future revenue gains?
There was no single right answer, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the NMHC Top 50, as each of these choices had adherents among big owners. Some large firms were net sellers, such as No. 2 AIMCO AIMCO Apartment Investment Management Company (Columbus, OH) , which sold 22,000 units, and No. 3 Equity Residential, which disposed dis·pose
v. dis·posed, dis·pos·ing, dis·pos·es
1. To place or set in a particular order; arrange.
2. of 7,000 units. Others were active buyers, such as Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite. , which increased its portfolio 87 percent with 46,473 additional units.
Despite record levels of property sales, however, the overall turnover in the NMHC Top 50 was relatively subdued sub·due
tr.v. sub·dued, sub·du·ing, sub·dues
1. To conquer and subjugate; vanquish. See Synonyms at defeat.
2. To quiet or bring under control by physical force or persuasion; make tractable.
3. . There were just four new firms added to the NMHC Top 50 owners list, and nine of the top 10 were in the top 10 last year. On the NMHC Top 50 managers list, there were six newcomers, and the top 12 firms in this year's rankings were all in the top 12 last year.
"This year's rankings show the degree to which the apartment industry is maturing and stable," said NMHC's Chief Economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the , Mark Obrinsky. "In the late 1990s, the industry was on a dramatic growth trajectory Trajectory
The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. as real estate investment trusts (REITs) emerged and began amassing relatively large portfolios. Growth in those years averaged 9 percent to 11 percent.
"During the past several years, however, that growth has slowed to [approximately 3.5 percent] and private firms have been the growth leaders."
Doug DOUG Dumb Old Utility Guy Bibby, NMHC President, said, "The industry has clearly evolved from a deal-making one to one based on long-term Long-term
Three or more years. In the context of accounting, more than 1 year.
1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth and professional management. This can be seen not only in the NMHC Top 50 rankings, but also in the customer-centric management philosophy at the larger firms and the number of executives coming into these firms from other industries. These are clearly professional enterprises focused on the long-term growth potential of a professionally-managed real estate portfolio."
The complete list and a detailed analysis of the results is available on NMHC's Web site at www.nmhc.org/Top50/ListYears.cfm, or by calling 202/974-2354.
Additional Apartment Ownership Findings
A firm had to own at least 21,560 apartments to make the NMHC 50 rankings, up slightly from last year's 20,600 threshold.
The top five apartment owners are: New York's CharterMac (324,711 units); Denver's Apartment Investment and Management Co. (255,608 units); Chicago's Equity Residential (200,149 units); Baltimore's MMA (Microcomputer Managers Association, Inc.) A membership organization with chapters throughout the U.S. that was devoted to educating personnel responsible for personal computers. It disbanded in 1996.
Mma - A fast Mathematica-like system, in Allegro CL by R. Fateman, 1991. Financial (181,501 units); and Los Angeles's SunAmerica Affordable Housing Partners (136,539 units).
Morgan Stanley was the only new entrant en·trant
One that enters, especially one that enters a competition.
[French, from present participle of entrer, to enter, from Old French; see enter. , coming in at No. 7 after increasing its holdings by 87 percent. Morgan Stanley had the biggest portfolio increase. In fact, the number of apartments it acquired in 2004 is greater than the holdings of all but the top 18 firms in the NMHC Top 50.
As of Jan. 1, the top 50 apartment owners held 2.96 million apartments, or 18 percent of the nation's estimated 16.4 million apartments. This is up 2.9 percent from the past year.
REITs were net sellers of apartments for the second year in a row as historically low interest rates advantaged private, leveraged buyers. They now own 31 percent of the total NMHC Top 50 apartments, down from their peak of 35 percent in 2003 and the lowest level since 1998.
There were only four new firms added to the NMHC Top 50 owners this year: Enterprise Social Investment Corporation (No. 11), Related Companies (No. 36), BlackRock BlackRock Inc. (NYSE: BLK) is a major American investment management firm. As of September 30, 2007, BlackRock’s assets under management totaled $1.3 trillion across fixed income, liquidity, equity, alternative investment and real estate strategies. Realty realty n. a short form of "real estate." (See: real estate)
REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. (No. 37) and Northwestern Investment Management (No. 46).
Additional Apartment Management Findings
A firm had to manage at least 23,457 apartments to make the NMHC Top 50 rankings, which was little changed from last year.
There was not much shake-up Noun 1. shake-up - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet shakeup" in the top managers slots, as AIMCO retained its No. 1 ranking for the seventh year in a row. Equity Residential and Seattle's American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Management Services (dba Pinnacle pinnacle (pĭn`ĭkəl), minor architectural motif of vertical tapering shape, usually crowning a pier, buttress, or gable. Although sometimes it appears in Renaissance design, as in the Certosa di Pavia, it is almost exclusively a medieval ) retained their No. 2 and No. 3 slots, respectively.
There were several large portfolio gainers among the NMHC Top 50 managers, however. Two firms--Wachovia and WinnCompanies--added more than 10,000 units to their management portfolios, while two more--FPI Management and Capstone Real Estate Services--added more than 8,000 units.
Apartment management remains less concentrated than apartment ownership. The NMHC Top 50 managers now manage approximately 15 percent (2.45 million apartments) of the nation's 16.4 million apartments.
Six new firms joined the NMHC Top 50 for managers this year: RAM Partners (No. 35), Drucker Drucker may refer to a number of persons (in alphabetic order) :
Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to Realty Income Trust (No. 40) and Edgewood Management (No. 48).
To ensure that the 2005 NMHC Top 50 is as complete and accurate as possible, NMHC staff gathered names of apartment owners and managers from a wide range of sources. A senior officer from each firm was contacted for the information included in the rankings, which are for property owned or managed on Jan. 1, 2005.
NMHC's Top 10 Apartment Owners Following are the top 10 apartment owners in the United States, as of Jan. 1, 2005, based on data provided by the National Multi Housing Council. 2005 2004 Rank Rank Company Headquarters 1 1 CharterMac New York 2 2 AIMCO Denver 3 3 Equity Residential Chicago 4 4 MMA Financial LLC Baltimore 5 6 SunAmerica Affordable Housing Partners Los Angeles 6 5 Boston Capital Corp. Boston 7 12 Morgan Stanley New York 8 8 United Dominion Realty Trust Inc. Richmond, Va. 9 7 Archstone-Smith Englewood, Co. 10 9 Lefrak Organization Inc. Rego Park, N.Y Apartments With Ownership Interest 2005 2004 Corporate Rank Rank Officer 2005 2004 1 1 Stuart J. Boesky 324,711 309,292 2 2 Terry Considine 256,608 278,657 3 3 Bruce W Duncan 200,149 207,506 4 4 Michael L. Falcone 181,501 182,343 5 6 Michael L. Fowler 136,539 127,000 6 5 John P Manning 129,971 129,660 7 12 Phillip Purcell 100,000 53,525 8 8 Thomas W Toomey 79,291 76,337 9 7 R. Scot Sellers 75,959 82,644 10 9 Richard LeFrak 71,000 71,000 NMHC's Top 10 Apartment Managers Following are the top 10 apartment management companies in the United States, as of Jan. 12, 2005 based on data provided by the National Multi Housing Council. 2005 2004 Rank Rank Company Headquarters 1 1 AIMCO Denver 2 2 Equity Residential Chicago 3 3 American Mgmt. Services (dba Pinnacle) Seattle 4 4 Lincoln Property Co. Dallas 5 6 United Dominion Realty Trust Inc. Richmond, Va. 6 5 Archstone-Smith Englewood, Co. 7 11 Wachovia Charlotte, N.C. 8 7 Lefrak Organization Inc. Rego Park, N.Y. 9 8 Trammell Crow Residential Atlanta 10 9 Alliance Holdings LLC Chicago Apartments With Ownership Interest 2005 2004 Corporate Rank Rank Officer 2005 2004 1 1 Terry Considine 215,256 239,875 2 2 Bruce W Duncan 203,490 209,124 3 3 Stan J. Harrelson 132,327 125,136 4 4 J. Timothy Byrne 107,877 110,236 5 6 Thomas W Toomey 80,137 76,804 6 5 R. Scot Sellers 75,046 82,644 7 11 Ken Thompson 72,715 60,218 8 7 Richard LeFrak 71,000 71,000 9 8 J. Ronald Terwilliger 65,915 70,966 10 9 Andrew W. Schor 63,510 63,519