collaborative rebranding strategies for value-adds...collaborative rebranding strategies for...

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Collaborative Rebranding Strategies for Value-Adds

Moderator:Maitri Johnson, Transunion

Panelists:David Egeland, Laramar Group

Tim Hermeling, Cortland PartnersBrendt Rusten, Dominium Partners

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David Egeland – VP, Marketing

Laramar Group Clayton Property Quantitative Survey Feedback

Topline ReportJune 27, 2016

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BackgroundThe Laramar Group is developing a new luxury apartment community in Clayton, Missouri. The residences will be modern and include high-end amenities and interior design features.

Elevated Insights launched a survey providing local residentfeedback on the following topics:• Pricing information on rent amounts currently paid by

prospective residents• Desired areas to include hardwood style flooring• Kitchen design preferences, including cabinet color and

countertop type• USB placement within unit• Most desired interior design features• Most desired community features• What potential residents consider “deal breakers”• Desired smoking policies within apartments and community• Resident knowledge of area• Top choices for community name

Topline includes responses from 338 Clayton and

surrounding area residents.

Target demographics include:• Household Income at or

above $55,000• Ages 25 – 45

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Wood flooring is desired by many in the dining room, hallway, living room and kitchen

Residents feel strongly about hardwood floors in specific rooms, including dining room, hallway, living room and kitchen.

*Reference: #s above reference how many respondents desire wood floors in each room – i.e. 186/338 desire wood floors in the dining room

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Dark kitchen cabinets are the most popular choice among these respondents

The greatest number of potential residents prefer dark cabinets, but a portion also like

white cabinets. Combination cabinets were desired by less

than 1/4th of respondents.

Dark Kitchen Cabinets 44%White Kitchen Cabinets 33%Combination Kitchen Cabinets 22%

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Granite counter tops are clearly preferred over quartz among these potential residents

Granite is clearly preferred over

quartz counter top material

Granite Quartz

60% 40%

Page 5

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Preferred USB locations among these respondents include the master bedroom and kitchen, followed very closely by the living room Page 6

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Washer / Dryer in-unit is the most important feature to these potential residents Page 7

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A Fitness Center and a Non-Smoking Community are the top two desired community features to these potential residents

Top choices for community features are based on a combined weighted average of respondent ranking 1st most desired option through 5th most desired option.

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For these respondents, the biggest interior deal-breaker, by a large margin, was not having a washer/dryer in-unit

Top Interior Deal Breakers for Prospective Residents:Not Having Washer/Dryer in Unit 74%No Hardwood Flooring 15%No Walk-in Closet 8%

*Percentages relate only to respondents who noted a deal breaker in their survey response. (N=187)

No Granite

No H

ard

wood

No Stainless Steel Appliances

No

Ener

gy

Effi

cien

cy

No Washer/DryerNo Walk-in Closet

No Laundry Facilities

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Smoking on premises and not having a fitness center were the biggest community deal breakers for these respondents

Top Community Deal Breakers for Prospective Residents:Allowing Smoking on Community Grounds 46%Not Providing Gym for Residents 15%Not Providing Dog Park for Residents 11%

*Percentages relate only to respondents who noted a deal breaker in their survey response. (N=122)

Smoker Friendly N

o Fitness C

enter

No Dog Park

No

Rec

yclin

g

No Garden

No PoolNo BBQ

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Respondents chose The Barton as their top choice, but this community name was followed closely by The Avant, The Quinn and The Aria. There was no clear standout among the top 3 choices

Top choices for community names are based on a combined weighted average of respondent ranking 1st most desired option through 3rd most desired option.

The Barton was the top proposed community name among these potential residents.

147

175

179

256

298

302

322

346

0 100 200 300 400

THE FELIX

THE EEROWOOD

VANGUARD CLAYTON

THE ELAN

THE ARIA

THE QUINN

THE AVANT

THE BARTON

Most Desired Community Names

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Tim HermelingEVP, Marketing – Cortland Partners

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Opportunity is presented to Cortland

Opportunity is initially vetted by Acquisitions and Investments team

Cross-functional team evaluates opportunity (Investments, Operations, Design, Marketing)• Understand market dynamics• Assess customer segments and density of target market

Asset Positioning Plan Developed• Design and Renovation Planning – Amenity package created• Rebranding strategy developed• Marketing budget established

Underwriting/proforma finalized

1 2 3 4

Value Add Planning Lifecycle

5

1

2

3

4

5

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Understand the Market

Effective Market Rent Employers in Market

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Understand Your CustomerPrimary Targets Secondary Target Weaker Targets

Segment 1 Segment 4Segment 3

Segment 2

Segment 5 Segment 6

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Customers Guide Decision-making

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Design InspirationM o o d S h o t s

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Fitness Center

Before After

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Kitchen

Before After

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Rebranding

Before After

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Development, Design, Feedback, & Outcomes

Brendt Rusten – Partner and Senior Vice President of Asset Management, Dominium

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Development and DesignDominium28,000 apartments nationally

In Current Production:- 13 New Construction projects- 7 Value Add projects

Design is the same for both new construction and valueadd…however Value Add asset time frame is highlycompressed – 90 to 120 days

Collaboration before Acquisition – Targeted markets and basic infrastructure requirements must be met.Example: W/D hookups, 2 bed-2 bath (NO 2 bed – 1 bath),1980’s or newer

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Design Meetings- Main driver for the design meetings = the customers we are targeting!

- What do they want? What do they need?

- Every 2 weeks – Full Day Meeting

- Attendees: Development, Construction,& Property Management

- Individual design collaboration process for Value Addbegins upon signing the purchase agreement.

- “Critical Path” Meetings – weekly- Attendees: Executives, Acquisitions,Management, Marketing, Consultants, Architects,Construction, & Finance personnel

Each Market/Site drives our design decisions.

Focus on basic amenities, but main focus should be on unit interiors.

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Property Management - Feedback- Resident Feedback

- Surveys- “What do you like?”- Behavioral questions

- Site Level Employee Feedback- “What would you build if you had no

restrictions?”

- Regional Feedback- What is working? What would you change?

- Vice President and Senior Vice President Feedback

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Common Areas

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Common Areas

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Common Areas

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Bus Stops

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Indoor Play Areas

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Outdoor Play Areas

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Splash Pads

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Kitchens