The Nation's 50 Largest Apartment Owners and 50 Largest ...

More documents

Recommendations

Info

The Anatomy of a Brand Strategy Changing demographics lead some apartment firms to pursue new brand segmentation strategies. By Bill Gloede GenerATion Y enerGY: AvalonBay’s AVA communities target the highly social, super-connected echo boomer demographic. A sPeCIAL suPPLement to nAtIonAL ReAL estAte InVestoR When Arlington, Va.-based AvalonBay Communities, Inc. announced in December that it was splitting its communities into three distinct brands, many in the industry took the news as a sign that the apartment rental industry had fully shaken off the dust from the downturn. With rents and renewals rising, business was back on a growth track, and the future looked promising. Not only were consumers beginning to question the value of homeownership, but Generation Y’s throngs of echo boomers were coming of age, creating a huge, emerging demographic market for apartment rentals. Not since the upscale rental segment took off back in the late 1990s had there been such a clearly defined marketing opportunity. Under AvalonBay’s new structure, the company’s core brand, Avalon, will continue as the company’s flagship. Located in bigger urban and suburban markets, Avalon communities will include high-end amenities and services and continue as the publicly traded REIT’s primary growth engine through new development, according to the company’s Senior Vice President for Brand Strategy Kurt Conway. Apartments will be larger and include premium finishes, lighting, appliances and amenities. The second brand in AvalonBay’s portfolio, called Eaves by Avalon, will include communities located in mostly suburban locations and target more cost-conscious, value-oriented renters. The final brand is dubbed AVA, partly because, as Conway puts it, “The word ‘AVA’ underscores the brand’s social elements. After all, it’s a person’s name.” The brand is squarely targeted to the highly social, super-connected Generation Y demographic. These communities will be in transit-friendly and urban settings in “energized neighborhoods,” as Conway calls them. Properties will feature smaller apartments 16 nMHC 50 APRIL 2012
April 2012 A speciAl A speciAl supplement to nAtionAl to nAtionAl reAl estAte investor as well as units more conducive to roommate living. Conway points to a new AVA community under construction in the H-Street district of Washington, D.C., as representative of the new brand. Situated in an emerging youthful, walkable neighborhood, the property offers Generation Y residents ready access to transit, nightlife, galleries and restaurants. Apartments range from 450 square feet for a studio to 550- to 650-sq.-ft. one-bedrooms and roommate-friendly units in the 750- to 1,050-sq.-ft. range. While the brands are new for the company, which ranked No. 16 on the NMHC 50 Owners list and No. 14 on the NMHC 50 Managers list, the underlying strategy is really reflective of something the company’s been doing for the past 25 years—investing in locations where people want to live. “[We’re] focusing on the best performing markets and submarkets in the U.S, and within these markets, we are putting the right product that best matches customer needs,” Conway says. But while some in the industry see new branding strategies similar to AvalonBay’s as an extension of existing target marketing efforts, others disagree, arguing that the industry, in general, has placed more emphasis on the transaction and the property than the end user, or resident. Jonathan Holtzman, chairman and CEO of Farmington Hills, Mich.-based Village Green, which ranked No. 28 on the NMHC 50 Managers list, would agree that the apartment industry, in general, has been behind the curve in terms of consumer segmentation. However, he points out that some companies’ strategies aimed at capturing Generation Y’s attention aren’t so much new as newly launched. As he explains it, somewhat diplomatically, “The apartment business has historically been behind the retail, hospitality and food industries. The fact that some companies are now acting like this is a fresh idea is not respectful of apartment firms that have had branding since the 1960s.” For example, Holtzman says Village Green, which now owns or manages approximately 40,000 apartments in 16 states, adopted a brand strategy after witnessing the growth “of this company called Holiday Inn.” It was the first branded chain of motels, and it grew, quickly, to a dominant position in the industry. Along with Village Green in the move to branding back then, says Holzman, were Oakwood, now Oakwood Worldwide, and Post “[We’re] focusing on the best performing markets and submarkets in the u.s, and within these markets, we are putting the right product that best matches customer needs.” — Kurt conway, AvalonBay communities, inc. Properties. And even before them, the LeFrak Organization. Holtzman’s take on the industry reflects his background; he is the third generation of his family to run the company, which was founded by his grandfather in 1919. When the first wave of branding and segmentation took place in the 1960s, he says, the apartment companies that bought in were asking the same question: “How can you call an urban high-rise building with BUILDING COMMUNITY BUILDS VALUE. Occupancy. Rent Values. Retention. Regardless of your 2012 focus, ours continues to be delivering ROI through community. Call 877.785.2963 or visit CARESprogram.org Check out the new CARESprogram.org. New Look, Same Focus.
Page 1 and 2: A SPECIAL SUPPLEMENT TO NATIONAL RE
Page 3 and 4: Delivered through a leading team of
Page 10 and 11: Top Apartment Firms Strategically P
Page 12 and 13: were up by almost five percent in 2
Page 14: 2011. Hunt Companies, Inc. had the
Page 17: NMHC 50 MaNagers Number of apartmen
Page 21 and 22: A speciAl A speciAl supplement to n
Page 24 and 25: RAISING EQUITY + SUPPORTING AFFORDA
Page 26 and 27: company plans to start construction
Page 28 and 29: Top 25 Apartment Buyers and Sellers
Page 30 and 31: NMHC Officers 2012 Chairman Thomas
Page 32 and 33: Executive Committee Eli Hanacek Hol
Page 34 and 35: Board of Directors Jeffery Daniels
Page 36 and 37: Board of Directors John M. O’Hara
Page 38 and 39: Board of Directors Joe Colon Protec
Page 40 and 41: Board of Directors (not pictured) E
Page 43 and 44: Advisory Committee Advenir Taylor R
Page 45 and 46: Advisory Committee Haley Real Estat
Page 47 and 48: Advisory Committee Merion Realty Pa
Page 49 and 50: Advisory Committee Shelter Corporat
Page 51: SMARTER YARDI VOYAGER End-to-end p

The Nation's 50 Largest Apartment Owners and 50 Largest ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?