The Nation's 50 Largest Apartment Owners And 50 Largest

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A special Supplement to national real estate investorAPARTMENT MANAGERSAfter seven years in the No. 3 slot and one yearat No. 2, American Management Services (dbaPinnacle) finally moved into the top slot in theNMHC 50 management rankings. Although thecompany also broke into the top ten among theNMHC owners this year as well, (after many yearsof sizable portfolio acquisitions), it is best knownas a third-party manager—indeed, its managementportfolio exceeds its ownership portfolio byover 100,000 apartments. Riverstone Residentialmoved up a slot to No. 2 this year, marking a newmilestone: for the first time ever, the managementrankings are headed by two property managementspecialists.The number of apartments included in theNMHC 50 managers list edged down slightly in2009, but at 2,669,172 the figure was still the second-highestever. The top half of the management rankings iscomprised of virtually the same list of firms as last year. Thatfact may cover up more than it reveals, however, as there werea large number of big portfolio changes.As on the ownership list, both AIMCO and UDR werevery large net sellers. By contrast, top-ten firms AmericanManagement Services (dba Pinnacle), Riverstone Residential,Greystar, and Bell Partners were major net buyers. Indeed, bybringing 46,046 apartments into its fold, Greystar posted theTop 10 Apartment MANAGEMENT FirmsRank CompanyNo. ofApartments Managed1 American Management Services (dba Pinnacle) 185,2192 Riverstone Residential Group, A CAS Partners Company 181,9283 AIMCO 154,9874 Equity Residential 148,1155 Greystar Real Estate Partners, LLC 140,0006 Lincoln Property Company 130,2657 Archstone 83,8718 WinnCompanies 75,3539 Camden Property Trust 62,64110 Bell Partners 61,663biggest management portfolio gain in ten years.Growth within the NMHC 50 managers list was exactlythe opposite of the owners list: growth was concentrated atthe top. Apartments in the portfolios of the top ten firms roseby 2.5 percent from a year earlier. The number of apartmentsmanaged by the second ten, the top 25, and the second 25firms all fell, however.By most measures, the NMHC 50 managers’ concentrationreceded somewhat. Overall, the top 50 manage 15.2 percent ofNMHC 50 managersNumber of Apartments Managed 2009 2008 2007 2006 2005 2004Top 10 1,224,042 1,194,108 1,106,880 1,051,603 1,087,273 1,111,312Second 10 487,528 523,614 498,472 469,786 508,082 502,575Top 25 1,915,170 1,930,162 1,810,315 1,703,865 1,773,679 1,793,148Second 25 754,002 797,946 770,885 680,091 673,810 669,799Top 50 2,669,172 2,728,108 2,581,200 2,383,956 2,447,489 2,462,947Portfolio Size Measures 2009 2008 2007 2006 2005 2004Mean 53,383 54,562 51,624 47,679 48,950 49,259Median 37,871 40,578 40,010 33,150 33,559 32,164No. 1 firm 185,219 195,888 209,412 197,774 215,256 239,875No. 50 firm 23,730 25,852 25,277 22,500 23,457 23,469Share of NationalApartment Stock (%) 2009 2008 2007 2006 2005 2004Top 10 7.0% 6.9% 6.2% 6.0% 6.4% 6.7%Top 50 15.2% 15.7% 14.5% 13.6% 14.4% 14.9%Apartment MANAGersLargest Portfolio GrowthApartmentsGreystar Real Estate Partners, LLC + 46,046Bell Partners + 26,979Riverstone Residential, A CAS Partners Company + 26,693American Management Services (dba Pinnacle) + 19,897Milestone Management + 7,517Moving Up in RankSlotsBell Partners + 22Milestone Management + 13Berkshire Property Advisors + 8Lindsey Management Co. + 7FPI Management + 6BH Management Services, Inc. + 612 NMHC 50 APRIL 2009
A special Supplement to national real estate investorthe nation’s apartments, a little lower than last year’s recordsetting15.7 percent. The top ten firms saw their share growto 7.0 percent, from 6.9 percent in 2008. This was the highestshare for the ten largest managers since 2003. Back then,however, the management list was more heavily dominated byowner-managers. In 2003, the top 15 firms also appeared onthe NMHC 50 owners list; in 2009, only ten of the top 15 firmswere among the top 50 owners.Apartment Management (by tier in thousands)3,0002,5002,0001,5001,000500’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09top 10 top 25 top 50SPECIALISTSMany firms appear on both the NMHC 50 ownership andmanagement lists, but each list includes 17 firms that do notappear on the other. In some cases, these companies both ownand manage apartments, but they tend to specialize in one orthe other, so they make the threshold for entry either as managersor owners, but not both.Some specialists are among the largest firms. Three of thetop five owners—and five of the top eight—do not appear inthe management rankings. On the management side, three ofthe top 10 firms do not show up on the ownership list.Two firms that appear at the top of the rankings for bothowners and managers have far more units under managementthan under ownership. American Management Services (dbaPinnacle) manages 106,371 more apartments than it owns,while Lincoln Property has 82,886 more units under managementthan in its ownership portfolio.Largest Firms Appearing on Ownership List Only:MMA Financial, LLCBoston CapitalSunAmerica Affordable Housing Partners, Inc.National Equity Fund, Inc.Enterprise Community Investment, Inc.Largest Firms Appearing on Management List Only:Riverstone Residential Group, A CAS Partners CompanyGreystar Real Estate Partners, LLCWinnCompaniesFPI ManagementAlliance Residential CompanyMethodologyTo compile the NMHC 50 lists, the National Multi Housing Councilstaff gathers names of owners and managers from as wide a range ofsources as possible and contacts staff from each firm who completethe survey online. Over the years, improved outreach and increasedpublicity associated with the rankings has resulted in more firmsresponding to the survey.For the purposes of this survey, investment fund managersare treated as owners only if they retain substantial equity in theapartment property or if they maintain effective responsibility anddecision-making over the investment property. Similarly, tax creditsyndicators and franchisers are regarded as owners only if theyretain a fiduciary responsibility. (When firms function strictly asadvisers rather than investors, they are not regarded as owners.)The rankings do not distinguish between partial and full ownership.Some firms own sizable apartment properties through jointventures in which their share could range anywhere from 1 to 99percent. Others are primarily the sole owners of their apartments. Inprinciple, it would be desirable to account for partial ownership—treating 50 percent ownership of 100 apartments as equivalent to fullownership of 50 units, for example. In practice, it is not feasible tomake such distinctions.The survey excludes condominiums, cooperatives, hotel rooms,nursing homes, hospital rooms, mobile homes and houses withrental units. Rental housing for seniors (age-restricted apartments)is included, although assisted living and congregate care facilities arenot. Finally, since we measure industry concentration by comparingthe top 50 owners and managers against the nation’s entire apartmentstock, only U.S. apartments are included.Occasionally, a firm may debut on the NMHC 50 at a highlevel. Generally, this means the firm is responding to the surveyfor the first time, rather than an indication of an outsized portfoliogain—although that, too, happens on occasion. Nonetheless, despitemany improvements and everyone’s best efforts, the process remainsimperfect: it relies on both accurate reporting and surveying of thecomplete universe, both of which can be fraught with problems. Inparticular, a number of firms in recent years have either chosen notto respond or have policies that prohibit them from supplying thekind of information needed for establishing these rankings. Theinclusion of firms that did not respond in previous years, as well asthe withdrawal of some firms from participation after making therankings in the past, make year-to-year comparisons difficult.APRIL 2009 NMHC 50 13
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