Renovator by Midwest Luxury Publishing

fourth quarter

CAR SHARING FOR PROFIT

HIGHS AND LOWS OF UNIT FLOW

FULL-SCOPE REMODELING PLAN

CHANGING THE WAY WE BUILD

2017 presented by united renovations

the importance of 3d technology volume

1, issue 4

How innovative techniques are disrupting the renovation process

FOURTH QUARTER 2017

LETTER FROM THE EDITOR

We are proud to share that Renovator magazine received an Apex Award for Publishing Excellence this year.

Editor-in-Chief JR Bolos (right) with Adam Pitluk, group publisher for Midwest Luxury Publishing.

Strategic Literary Partners

It has been a great ride. We are proud to share that Renovator magazine received an Apex Award for Publishing Excellence this year. This is truly a remarkable international honor, and we are grateful for the incredible team we have here at UR and at Midwest Luxury Publishing who make this possible. We will always strive to get better and serve our clients in greater ways. While change is never easy, it is necessary in our rapidly evolving world. It involves risk and resolve. You cannot publish a magazine without taking a risk or renovate units faster, better and cheaper without resolve. I wonder what we will be talking about just a few short months from now?

t seems like only a few short months ago when we were debating whether or not we should start a magazine. My friend, Adam, was tired of hearing me complain about the cost of advertising and challenged me to think about creating our own publication. Why would we step out into the unknown, exchanging hammers and nails for pen and paper? We have learned a lot over these past four issues, including the importance of print deadlines, double checking the spelling of names, and how the stock of paper effects the way ink sets. Most importantly, we have learned that we are not just a construction company. We are more. We are a part of something great. We are part technology nerd, part general contractor and part problem solving ninja. We are venturing into new territory as our services expand and our company grows. Becoming a part of the Katerra family is opening new doors to serve our clients in ways we used to only imagine.

JR Bolos Editor-in-Chief

TA B L E O F C O N T E N T S

28 SKIP THE SAWDUST

Katerraâ&#x20AC;&#x2122;s new cross-laminated timber facility is leading the industry in sustainable, low maintenance and budget-friendly construction.

32 THE HIGHS AND LOWS OF UNIT FLOWS The quantity and frequency in which units are released impacts the earning potential of a renovation project.

36 VIRTUAL SITE WALKS

Bring multiple multifamily properties to clients in one meeting by using 3D technology.

40 PLANNING FOR RENOVATIONS

Hereâ&#x20AC;&#x2122;s a helpful guide for an interior renovations that will increase property value.

48 THE VALUE-ADD PLAY

When it comes to an existing property, Bascom aims to help long-term holders achieve a successful return on investment.

52 THE POWER OF PERSONAL PURPOSE If you can find a way to live out your personal purpose in life through your work, your day-to-day will be transformed.

09 BUSINESS

17 PROTECTIONS

25 ASK AN EXPERT

Tips for rebranding during a renovation,

The Rug Doctor is an innovative cleaning

The new options for disposing of old appli-

plus the benefits of car sharing.

option for tenants, artificial grass may

ances, turning patio space into profit, and the

be the real deal for your budget and

value behind high traffic hospitality products.

winter roofing maintenance.

12 INTERIORS

21 HOW-TO

56 ON THE WAY OUT

Hot design tips for a model fireplace, and

Add value to your property with these wa-

No one is exempt from travel

the experts at Wilsonart clarify why quartz

ter-saving strategies, winter lease incentives,

woes, not even in first class.

is the new marble for multifamily units.

and evaluating fire suppression conversions.

MEET THE TEAM

KRISTY ALPERT Kristy Alpert spent her childhood helping her dad out in his woodshed. She now spends her time as a freelance journalist, crafting articles instead of workbenches. Her bylines have appeared in Food & Wine, Esquire, American Way, Men’s Health and more. Kristy has won numerous international awards for her writing.

LINDSAY DAWSON Lindsay Dawson is a freelance writer based in Cleveland, Ohio. She has worked as a thought leadership specialist to implement interactive marketing strategies for global businesses. She and her husband manage and renovate investment properties in Chicago and Cleveland.

DAVID HALLORAN David Halloran is a freelance photographer and writer and the former photo editor for American Airlines’ in-flight magazines. In addition to published work, David also has images in museums and teaches photography workshops in the wilds of West Texas.

JACQUELYNE FROEBER Jacquelyne Froeber is an award-winning editor and luxury travel consultant originally from Detroit. Her work has appeared in numerous shelter and lifestyle publications including Coastal Living, Midwest Living and Celebrated Living magazines.

DR. SHIKA HERSHEL

MOLLIE JAMISON Mollie Jamison is a full-time freelancer based in Chicago. She has published stories in Cowboys and Indians magazine, Dallas Observer, DFW Child Magazines and West Fort Worth Lifestyle Magazine. She enjoys running, hiking, wine tasting and contemporary art.

AJIA MEAUX Ajia Meux is an Oakland, California, native by way of Washington, D.C. She is a freelance writer and her work has been featured in the Dallas Morning News. She can word-smith just about any topic, but her focus is culture writing.

SAM OSTERLING Sam Osterling is a frequent contributor to Renovator magazine. Passionate about movies, hunting, reading and Cleveland sports, he’s currently based in Norman, Oklahoma.

ADAM PITLUK Adam Pitluk is an awardwinning journalist and editor. Formerly, he was the editor-in-chief of American Way, a reporter for Time and People magazines and an adjunct professor at the University of North Texas and the University of Texas at Arlington. He’s the author of Standing Eight and Damned To Eternity.

ALYSON SHEPPARD Alyson Sheppard is a writer and editor based in Dallas. Her work has appeared in Popular Mechanics, GQ, Esquire and Us Weekly, among other magazines. You can find her on Twitter at @amshep.

JR Bolos Steven Kirlin ART DIRECTOR Shawn Willis ADMINISTRATIVE MANAGER April Woods

Adam Pitluk David Halloran EDITORIAL DIRECTOR Jacquelyne Froeber SALES DIRECTOR Bob Grossman

EDITOR-IN-CHIEF

GROUP PUBLISHER

EDITORIAL DIRECTOR

CREATIVE DIRECTOR

EDITORIAL OFFICE

ABOUT MIDWEST LUXURY PUBLISHING

3200 Earhart Dr. Carrolton, Texas 75006 972.848.1001 renovatormagazine.com LETTERS TO THE EDITOR

editor@renovatormagazine.com

Midwest Luxury Publishing is a full-service communications outfit made up of experienced industry experts. Based in Dallas, let us be the turnkey company for all your communications and publishing needs.

CONTACT THE PUBLISHER

midwestluxurypublishing@gmail.com midwestluxurypublishing.com 972.378.4845 FOR ADVERTISING INQUIRIES

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Dr. Shika Hershel is a freelance editor and writer based in Frisco, Texas. She previously worked as a staff reporter for Renegade magazine where she wrote cover stories on Maya Angelou and Carlos Mencia. Dr. Hershel has published articles in various educational journals and was the team photographer for the Texas Rangers.

JAN HUBBARD Jan Hubbard is a freelance writer in Dallas. He previously worked at Newsday in New York, the Dallas Morning News and the Fort Worth StarTelegram. He also spent three years at American Way magazine and wrote cover stories on Harrison Ford and Steph Curry. He has written three books on the NBA.

BRIGETTE WALTERMIRE Brigette Waltermire is a public affairs specialist with the Air National Guard. She writes and edits for Air Observer, the journal of the 137th Special Operations Wing, which was voted best digital publication by the Department of Defense.

Renovator is published quarterly on behalf of BNB Publications, LLC by Midwest Luxury Publishing, a subsidiary of Midwest Luxury Rentals, LLC. All material is strictly copyright protected and all rights are reserved. No part of this publication may be reproduced in whole or in part without written permission of the copyright holder. All prices and data are correct at the time of publication. Opinions expressed in Renovator are not necessarily those of Midwest Luxury Publishing, and Midwest Luxury Publishing does not accept responsibility for advertising content. Any images supplied are at the owner’s risk and are the property of the owner. Printed in Canonsburg, PA, USA

NONPROFIT

this page:

Zachary Schrah

opposite, clockwise from top left:

The UR Hope team; students show off an AED; a student learns CPR; 2016 HeartBeats Run; Sarah and Karen Schrah

Living for Zachary

A mother’s mission to prevent sudden cardiac arrest in youth BY SHIKA HERSHEL

“T

“We want to get the word out so that no other family experiences what my sister Karen has experienced,” Kim says. The Heart Hospital Baylor Plano has supported Living for Zachary from the beginning. With the direction of the hospital’s physicians and staff, the Living for Zachary Heart Screening Program was created and provides special heart screenings for young adults ages 12 to 22. These tests can help detect heart abnormalities that may lead to sudden cardiac arrest. Today, Living for Zachary has provided more than 5,000 youth heart screenings and certified 909 people in the American Heart Association HeartSaver CPR/AED course. Living for Zachary has also donated more than 185 AEDs to youth organizations in Texas. This life-saving device plays a crucial role in resuscitating someone that has collapsed due to sudden cardiac arrest. The UR Hope Foundation supports Living for Zachary via volunteers and financial support. Through this partnership, AEDs have been donated to the Ring of Hope Boxing Club — a place for the youth of East Dallas and The Colony to build physical and spiritual discipline through mentorship. Through the grief, Karen has a hope and a purpose that drives her forward to honor Zachary’s legacy. “This was God’s plan and there was so much purpose behind Zachary’s life,” Karen says. The 2017 Living for Zachary HeartBeats Run is November 4 at Oak Point Nature Preserve. For more information visit livingforzachary.org.

hings turn out the best for those who make the best of the way things turn out.” These powerful words reflect the way 16-yearold Zachary Schrah viewed life. Not long after expressing these thoughts in a school essay, Zachary’s life took a tragic turn. On April 2, 2009, Zachary suddenly collapsed during a typical workout with the Plano East Panther football team. Zachary died of Hypertrophic Cardiomyopathy (HCM), which is a common cause of Sudden Cardiac Arrest (SCA). HCM is seen in young adults — specifically athletes — where the heart muscle thickens and the thickening can make the heart tissue obstruct the blood flow from the heart. Zachary had no warning signs or prior symptoms. “He never complained about chest paints or shortness of breath,” says Kim Jones, Zachary’s aunt. “He played sports since pee-wee football, and we never knew anything was wrong.” Zachary was the all-American teen who loved hunting and fishing and dreamed of going to the University of Texas to become a doctor. Zachary was healthy, fit, and played offensive lineman. In the wake of his death, Karen Schrah, Zachary’s mother, started Living for Zachary, a non-profit organization to help prevent SCA in youth. “My biggest motivator was to raise awareness to prevent this from happening to other families and to try to save lives,” Karen says. “I wanted to do whatever I could to prevent the pain and the loss of another child.” Living for Zachary advocates for community education, youth heart screenings, scholarships and the donation of Automated External Defibrillators (AEDs) to youth-based organizations.

Midwest Luxury Publishing would like to congratulate United Renovations and the staff of Renovator for winning a global Apex Award, presented by Communications Concepts.

midwestluxurypublishing.com

BUSINESS

What’s In a Name? The importance of rebranding during a renovation BY AJIA MEUX

o, you’ve decided to shake things up. Maybe it’s a change in the neighborhood that is prompting your remodel. Or perhaps your consumer demographics are shifting and a renovation would help drive more revenue. (Re)Branding is a hot buzzword right now, with many sub-categories including brand strategy, personality and equity. Finding the right name and design to complete the new look and feel of your property is key for positive rebranding, but what does it all really mean and — more importantly — how do you do it successfully? Embarking on an effective rebranding strategy starts with understanding the importance of a brand and its association with reputation or equity. The American Marketing Association sees a brand as not just a logo or slogan, but also a customer experience created by the accumulations of interactions with your property. And while there is an emphasis on the visual and verbal symbols of a company, some research suggests that the amount of time and investment generally spent on designing logos and slogans as opposed to actual reputation management appears to be wasted. Bottom line: Developing a brand with the relationship between you and your consumer in mind is key

for satisfaction and loyalty. Your brand personality, which is comparable to human characteristics, is what builds that personal relationship for your consumers and becomes an extension of who they are. Is your property more traditional or hip and contemporary? Does it emphasize a health-conscious community? Retired adults? Tech-savvy millennials? Whatever your property’s brand personality strategy, it has to be executed with strong and on-point advertising, creative design and media marketing to reach specific audiences. The National MultiHousing Council (NMHC) provides a number of reasons why branding is important in the apartment industry: • Improves marketing efficiencies by reducing media costs and staff time through centralization and increases impact of dollars spent via consistent message. • Increases rent verses non-branded competition. • Improves efficiency in leasing by signaling to a consumer whether this is the right place for them and providing pre-qualified leads, increasing the efficiency of leasing associates. • Improves down cycle performance • Improves recruitment of associates through improved image and awareness.

• Improves employee retention by generating renewed pride in company, which provides a springboard for improved associate morale. • Facilitates business development with land sellers, municipalities and potential joint venture partners. To illustrate the process of developing your rebranding strategy, NMHC suggests the following discussion points to maximize return on investment: • Who are we? A clear definition of the staff, investors, leadership and residents. • What do we do? What and where do we build? What unique services do we offer? • How do we talk about ourselves? What is our mission statement/corporate identity? • How do we talk to others? This includes property and corporate marketing and investor relations communication. • What is the company’s visual identity? Consistent naming, logos, tagline and color schemes for reputable brand recognition. During a renovation is the perfect time to evaluate a property’s brand and to determine future market positioning. From concept to design to construction elements, your property’s name is bigger than words on a sign.

BUSINESS

Drive My Car Vehicle sharing is the new property perk that goes the distance for urbanites BY LINDSAY DAWSON

he latest high-impact amenity for multifamily developments is car sharing, and giving the green light to this type of service can be profitable for both property owners and tenants in high-density areas. “Our community of car-sharing members is less defined by age and more by where they live,” says Jeff Gorra, National Account Manager for Residential Services at Zipcar, the world’s largest car-sharing service. “Most live in cities or in microcosms of cities like multifamily housing developments and business campuses where there’s a large number of people in a compact space, and thus a lot of parking demand and traffic.” By 2021, approximately 6 million drivers in North America will be registered with a car-sharing provider, according to a recent report from the Boston Consulting Group. Car company spinoffs such as ReachNow, BMW’s car-sharing service, are working with multifamily property owners to add the option as an amenity for current and prospective resi-

dents. Through these partnerships, residents have self-service access to cars parked right out their doorstep, exclusively for their building. This turnkey amenity is low risk and cost effective for property owners because everything from the technology to the insurance and maintenance of the cars is handled by the car sharing company. Companies such as ReachNow also help to promote the amenity to residents by providing informational materials, on-site events, membership incentives and promotional offers to introduce new users to the service. For the tenant, car sharing provides the freedom to travel anytime — anywhere — for a reasonable cost. Take, for example, the new car sharing initiative from General Motors, Maven, which links drivers to premium vehicles like the Chevrolet Volt or a Cadillac Escalade starting around $8 an hour. Tenants download the app and unlock and return the car to participating Maven stations in 17 cities including developments in New York, Chicago and San Francisco. Developers should also pay attention to this trend. Incorporating a car-sharing strategy at

the development phase of a project can alleviate pressure to find parking space for each potential resident and save money on expensive structured parking, which can range from $25,000 to $50,000 per space to build. “Cost savings for developers varies from city-to-city and from developer-to-developer but the high-level idea is that the less parking spots and lots they have to build, the more money they will be able to save,” says Gorra. “More and more cities are investing in car sharing and encouraging developers to incorporate car sharing spots in their parking plans by incentivizing them.” For example, in the zoning process, the city of Austin, Texas, incentivizes developers to reduce the number of parking spots required by 20 spots for every car-share space. As multifamily housing trends lean less on individual amenities and more toward creating a community, shared services will continue to be desirable. Car sharing is a low-cost, impactful amenity for property owners that can create high value for renters.

INTERIORS

Home Is Where The Hearth Is Tips for sprucing up the fireplace in a model unit BY LINDSAY DAWSON

fireplace is a timeless symbol of home and family gathering. Often the focal point in a room, a fireplace can be the first spot a potential renter’s eyes are drawn to and should be prioritized in the renovation process. Case-in-point: A survey conducted by The National Association of Realtors found nearly 70 percent of realtors say they see an increase in value of homes that have fireplaces. For multifamily property owners, there are some easy and affordable products and designs that can make an old fireplace feel new again. Today it seems less is more when it comes to design. “We’re seeing minimal cladding around the fireplace, so the surround is less important than the fire,” says Jane Lockhart, principal designer and founder of Jane Lockhart Interior Designs. “We’re seeing more open designs with lots of glass.” Traditional brick fireplaces can bring classic beauty to a space. However, red brick surround can feel heavy in a room where property owners are trying to maintain a blank-canvas look for potential renters. Painting the brick is one of the most inexpensive ways to update a fireplace. “For the cost of a half-gallon of paint you can get a new-looking fireplace,” says Alex Bolos, design coordinator for United Renovations. “Many of our clients are choosing to paint their brick a white or neutral color.” For a look that will maintain the texture of the brick, whitewashing is another option. “White washing lets the original brick colors underneath

shine through but mutes them with a gray tone that is more neutral in a space,” Bolos says. Another new trend in fireplace renovation is covering brick or old tile with shiplap siding, a type of wooden board used for construction of barns and rustic buildings. The use of shiplap siding has become popular in renovations because of its versatility. “Shiplap has a reputation for being used in farmhouse designs but it can be modernized,” Bolos says. Shiplap’s distinctive appearance of subtle horizontal lines and texture creates a clean, minimalistic look and it can be painted and decorated to fit an individual renter’s style. Adding a new mantel ledge can streamline the fireplace, according to Lockhart. “You can modernize an existing fireplace by removing the mantle and replacing it with a simple, smoother look,” she says. A one-piece cedar wood mantel can look sleek yet rustic. “Often when renovating exteriors we bring in cedar accents to give the building a new feeling,” Bolos adds. This same material can be applied on the inside. If a new mantel ledge is not in the budget, consider painting the existing mantel a modern gray, black or even navy blue, which are popular colors for today’s interior designs. Fireplaces are a reliable staple that can give a luxurious, high-end and cozy feel to a space. A renovated fireplace is ideal for a model unit because it creates an ambiance, and if there is one thing that is warm and welcoming — it’s a fireplace.

INTERIORS

Quartz Benefits

The professionals at Wilsonart explain why these stone countertops are the perfect perk for property value BY JACQUELYNE FROEBER why is quartz a good investment for multifamily units?

so is there a specific quartz design that is best for multifamily developments?

Quartz, or as it’s sometimes called “engineered stone,” combines the best of natural stone with hard-working resins that make it much more stable and stain-resistant. Unlike granite, no routine sealing maintenance is necessary. Quartz is also highly resistant to chemicals, stains, heat and moisture and vanities clean up easily with water and a little soap. All these factors make quartz a better long-term investment for multifamily and an attractive selling feature for consumers.

It all depends on the development. For a high-end, trendy look, you can choose from large-scale, veining and movement designs in white, gray and black. Or, satisfy the “more of everything for less” wish with a fine-scale design: a more cost-competitive line that’s highly versatile in residential and commercial spaces. anything new in the quartz world we should know?

regarding composition and quality, how does quartz

Our new 2017 Quartz Collection features eight designs inspired by the concept of personalized luxury, and the new book-matched Lucca design is similar to statuary marble (white background with large gray veining and highlighted by white and brown features). Also, jumbo-size slabs: Wilsonart offers two sizes (130” x 65” and 126” x 63”) with 2 cm or 3 cm thickness to maximize space, eliminate the need for multiple seams and optimize design capabilities for a budget-friendly, high-end look.

compare to other solid surface products?

Wilsonart Quartz is manufactured with up to 93 percent high-quality natural quartz crystals, high-quality polyester binders and proprietary coloring agents that are homogeneous, with uniform color throughout their thickness. Wilsonart Quartz is designed for interior use only, which is ideal for residential and commercial applications. Compared to granite, quartz is more scratch resistant and does not require sealing every few years.

INTERIORS

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PROTECTIONS

Roofing Wins & Woes How to Prepare Your Property for Winter BY ALYSON SHEPPARD

roperty owners do not typically consider their roofing needs during the summer months. However, it is the best time to begin planning for fall maintenance and to prepare for winter. Winter storms can cause major damage to your property’s roof. Scott Page, vice president at SRG Roofing, says that the primary winter roofing concern is anything to do with water. This can mean condensation, freezing rain or snow. “Ice is very intrusive,” Page says. “As it melts and penetrates, it can gather in cracks and joints or around seams — around chimneys and gutters — anywhere you have standing water you’re going to have problems.” Strong winds only exacerbate the issue. They rip off shingles and try to tear apart seams and flashings like pieces of Velcro. If an area is compromised, that increases the chances that water will get into it and cause leaks. Common signs to look for include yellow or brown stains on the ceiling, sagging sprin-

kler heads, drooping ceiling tiles, cracks in the masonry and swollen door or window frames. But you may not even notice the damage until months later. “In Minnesota, once the freezing starts in late fall, it’s not thawing out until late spring,” he says. “But if you’re in Texas, you may get an ice storm that only lasts a day or two. You’ll see the damage depending on how fast your ice thaws.” Ice damming is another common concern. If your sloped roof is covered in ice, the top will usually melt first. As it drains down onto the lower edges and gutters, it re-freezes. This builds up into what is called an ice dam; any other water trying to escape your roof is trapped behind the dam, and will probably lead to more leaks. All that weight is another problem, which could cause gutter damage or even total collapse. To help minimize the odds of damage, after a heavy storm, call a professional to remove as much of the collected precipitation as possible so it doesn’t continue

to accumulate. If you incur damage in the winter, a professional can attempt an emergency repair, but this is usually just a stopgap until spring, when they can do a more thorough job. Essentially they are just trying to stop the issue from getting worse. “Say you have a leak at the edge of your shingle roof,” he says. “What we’d probably try to do is pull the first row of shingles up, re-waterproof underneath the edge of the roof and then nail the shingles back down. But that can be difficult in the winter because the shingles are frozen, and when you try to pull them up they crack.” Winter weather can be unpredictable, but you can prepare your property in the fall. Have a professional do a thorough roof inspection, repair all problems and do landscape maintenance such as cutting back overhanging tree limbs. Repeat the inspection in the spring to make sure there wasn’t any winter damage you may have missed.

PROTECTIONS

Dr. Clean

A new line of self-service, carpet-cleaning kiosks from the Rug Doctor helps keep units looking pristine BY SAM OSTERLING

daptation is key in today’s environment of on-demand services. For Travis Lewis, CEO of Rug Doctor, that means seeking a balance between the company’s successful longtime business model and bringing its services directly to the consumer. “There are three ways to clean carpet,” Lewis says. “You can buy a machine, but that’ll cost you a few hundred bucks. You can hire a professional to come clean it, but that’ll cost you a few hundred bucks. Or you can rent a piece of our equipment, which costs less than $50.” And that’s how Rug Doctor has operated for decades. The consumer makes his or her way to a retail partner and rents a machine, takes it home, cleans as needed, then returns the machine to the retailer. It’s been a successful way to run the business. However, today’s users are seeking a new level of convenience. Lewis says that Rug Doctor is exploring ways to supplement their longstanding retail-

er partnerships with carpet-cleaning options even closer to home with ideas like their new self-service carpet-cleaning kiosks located directly in multifamily properties. “It’s a branded three-bay unit,” says Lewis. There are two types of machines available. First, a small, portable spot-cleaning machine. “If you have a party in the evening and maybe somebody spills some red wine, you can just go to your leasing office, pick up a spot cleaner and have the carpet cleaned that same night,” Lewis says. Larger machines are available to give entire units a professional-quality deep cleaning. The idea is to make the process simple and convenient for tenants. “You use your phone for the entire transaction,” Lewis says. A code is sent to the tenant’s phone, which the tenant then uses to unlock the kiosk. After the carpet is cleaned, the tenant locks the kiosk back up with another code delivered to their phone. It’s a smart solution for tenants and owners alike. “Tenants worry about their security deposits — they don’t want to ruin an entire

carpet,” Lewis says. “So for $20, they can ensure that they’ll get their entire deposit back.” And for the owners of multifamily properties, there is no upfront investment at all. “You’re providing a welcome service to tenants at no cost,” Lewis says. “It’s a great value add for the tenant to see that the owner cares enough about the tenant to save them time and money.” The Rug Doctor is still predominantly operated through retail partners including Walmart and Kroger. “We’re in the very early days,” Lewis says of the on-site operations. “We don’t see these kiosks being something that would ever affect those partnerships.” What’s important to Rug Doctor right now is to move into the on-demand age by providing convenient services as a supplement to their long-time model. “We want to understand what the consumer wants,” Lewis says. “And we want to connect that with how we’ve always done things.”

PROTECTIONS

Home Turf Switching to synthetic grass can add some green to your budget BY SAM OSTERLING

awn maintenance can be time consuming and expensive — but it doesn’t have to be. More and more property owners and managers are turning to artificial turf to create a vibrant landscape and alleviate the hassles associated with a healthy green space. “It looks so real — we’ve seen people use fertilizer,” says Nick Pavey, general manager of ForeverLawn Texas, a dealer of DuPont’s ForeverLawn line of artificial grass. Pavey says the primary use for turf in a multifamily property is landscaping. “Up to 80 percent of your water bill is spent outdoors,” he says. “Installing artificial turf can completely alleviate that cost.” In addition to landscaping projects, owners and managers utilize turf for other amenities, including dog parks with dog-specific installations. Where normal turf features a rubber-crumb or sand in-fill to provide a soft, realistic base and support its vertical fibers,

options like ForeverLawn’s K9 Grass has no in-fill and the grass fibers feature an anti-microbial coating. The result: a cleaner, safer and better-smelling dog park. The possibilities are vast: There are turfs tailored to putting greens, turfs designed to be poolside, turfs available to create a field area for sports, even a turf specifically designed to be a home for a playground, where the anti-microbial fibers discharge the static build up from trips down the plastic slide. “Tenants will always have a perfect-looking yard,” Pavey notes. “Every day, 365 days a year, no matter the water, shade, fertilizers or maintenance.” And for managers and owners, synthetic grass is an investment in curb appeal. “It raises your brand,” says ForeverLawn sales manager Jason Delph. A manicured, emerald lawn creates an immediate, impactful image of luxury. It looks that way with little maintenance post

installation for up to 20 years depending on traffic. “And that’s before you even get to the less obvious benefits,” Delph adds. A unit near a traditional dog park will typically need to have its carpet replaced every few years. Turf removes the mud and much of the smell. If the property has a pool, adding turf helps creates a unique, inviting look. And no more hot, slippery concrete. Instead, tenants walk on cool, safe synthetic grass. And of course, there’s the selling factor. “Imagine showing a dog park to a potential tenant,” Delph says. “You can show them a clean, fresh-smelling park filled with happy dogs.” Turf has numerous potential uses in a multifamily property. While the upfront cost for installation is an investment, the effect of turf on property maintenance, tenant experience and curb appeal can help save some green overall.

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HOW-TO

A New Home for the Holidays ’Tis the season for simple upgrades to your properties and extra incentives to boost occupancy and Yuletide cheer BY BRIGETTE WALTERMIRE

istorically, winter is a slow season for attracting new tenants. Cold weather and the stress of the holidays are among the factors that keep potential tenants at bay. However, there are a few key tactics owners and managers can employ to attract new renters and increase property value. Donna Hickey, a property management consultant for Zinger Property Group, has been in the business for more than 30 years and says the secret lies in the art of engaging the renter’s senses when introducing them to the property. “Pull out all the stops,” she says. While there is no universal formula, Hickey says each development and location has its own heartbeat and therefore its own unique marketing strategy. Here are more ways to increase leases in the winter.

Keep parking lots and sidewalks clear of snow, for both safety and aesthetic reasons. When showing a renter the property, having the office, handicap and resident parking areas clear is important, in addition to accessible sidewalks. Consider hiring a company to snowplow regularly during the winter.

exterior marketing

interior marketing

A first impression is everything. Hickey recommends appealing to sight and smell by placing flowerbeds and plants (winter jasmine, English Boxwood, etc.) around the office and model units. If it snows, cover the flowerbeds to help protect them and other plants that will come back, and invest in evergreen trees, which are visually appealing and have a pleasant scent year round.

incentives

Amenities during any season are a key influencer for tenants, but properties with garages or covered parking can offer free parking with a lease when signed during a certain month or for a certain amount of time to attract renters in the winter. Hickey says renters at her properties love having garages, carports and gated parking, but when the weather is good, they are less likely to pay extra for it.

Small renovations can make a big difference. For developments with residents tracking in snow and ice, removing carpeting in main areas of a unit may increase the appeal because people frequently requested wood-like flooring “since it looked cleaner and was easier to keep clean,” according to Hickey. Other design tips include repainting an apartment and including

gray accent walls since it is “the new beige” and installing winterizing sleeve air-conditioning units so that residents do not have to deal with cold air leaking into their apartment or worry about the hassle of getting it fixed. Around the holidays, Hickey says thoughtful details like having cider on the stove of a unit model or baking cookies before a showing can help boost interest. In the common areas, festive lights, hot cocoa and other holiday refreshments are also appealing. “People want to stay where they live and not drive somewhere,” Hickey notes about the benefits of apartments providing communal social areas; universal amenities including game rooms with pool tables and exercise areas help too. extra enticements

Move-in gifts and move-in deals for those leasing during winter can include a variety of things. Properties with wood-burning fireplaces may want to leave a bundle of wood and fire-starter kit. Some developments might offer ice scrapers for windshields that have the company’s name and phone number on it so residents have it in their car, or maybe offer a mug with packages of hot chocolate and self-heating hand warmers.

HOW-TO

Water Saving Strategies The latest techniques to help grow your bottom line BY JAN HUBBARD

ater conservation is becoming a more critical conversation in the multifamily industry. From green initiatives to government policies, owners are paying more attention to water use on their properties. Preserving water can help save the planet, and that’s wonderful. It’s also good business when multifamily housing is being renovated. Alex Tyler, project manager for AquaTerra Outdoors, specializes in the design and construction of outdoor projects. One of his current water saving strategies involves the use of rain barrels to retain rainwater that can be used for all outdoor watering needs. “I push it hard because it’s something that can save a lot of money,” Tyler says. “If you capture water in rain barrels, you can irrigate and you’re drought tolerant.” Today’s rain barrels are nothing like the classic oak barrel or the old 55-gallon drums. They may be constructed from plastic, concrete, terra cotta, fiberglass or stainless steel. In multifamily developments, rainwater tanks can be designed as part of a community garden,

adding to the aesthetic appeal of the property. “We implement them with a creative and unique design,” Tyler says. “It’s not just a rain barrel with a spigot.” Tyler estimates that utilizing rain barrels can result in a savings of 10 to 15 percent on water bills, which makes them more practical for multifamily developments as opposed to private homes. There are also other effective methods that can be used in multifamily housing to ensure more efficient use of water, especially during a renovation. For example, conducting pressure tests on all plumbing to find leaks. Small leaks in the ground can go unnoticed and can be very costly. proper drainage

Having proper drainage is important because it helps guide water flow off the ground surface. Poor drainage can lead to standing water, which can cause environmental problems and risks to health. “It’s important to understand what kind of soil you are working in before you start design-

ing a drainage system,” Tyler says. “Clay is an expansive soil that absorbs a lot of water and doesn’t dry out as opposed to a sandy loam/silt soil that has a high permeability rate. Those are the far ends of the spectrum. “If you find a sandy loam/silt soil, it’s very beneficial and there can be a lot of really good drainage. If it is a clay soil, the water gets absorbed and there can be a muddy marsh and it won’t dry out.” Understanding the soil composition enables you to determine how much water is moving through the soil in a certain amount of time. In a slow-moving heavy clay composition, more surface drainage options are required in order to conserve the most water. In a sandy composition where water moves much faster, it should be captured either before it hits the ground, which can be done with rain barrels, or by building a sub-surface system. There are many options available to property owners regarding water savings. Not only is water conservation a worthy cause, it is increasingly good business for multifamily property owners.

HOW-TO

A well-planned escape route, smoke detectors and sprinkler systems are just a few of the things to consider when implementing a fire suppression system for your property.

Hot Topic: Fire Prevention The top things to consider for fire safety during a renovation BY SAM OSTERLING

valuating your property’s fire safety plan is more important now than ever. According to the National Fire Protection Association (NFPA), more than half (56 percent) of residential structure fires occur between the months of November and March. It can save time and money up front to know what fire suppressive steps are needed and how to meet code to keep tenants and the building safe. “First, you need to identify what you need,” says Kevin Rhodes, sales manager for the Orlando market of Wayne Automatic Fire Sprinklers; a company specializing in fire-suppression technology across markets, from hospitals and schools to manufacturing facilities and multifamily complexes. Rhodes says that the initial step in fire safety for renovators and new building owners in general is to understand their municipality, their state and their building. If the people in charge of construction do not properly understand which fire preventative and suppressive

steps are required by the relevant municipality, they can spend excessive and unnecessary amounts of money on preventive products that may be ineffective or unnecessary. Second, “You need to know what the architect has classified the project as,” Rhodes says. For example, an “apartment complex” is a blanket term that can carry one of several different designations. A high rise will have different code requirements than a mid-rise or townhome. And if the architect designing the project is familiar with one designation more so than others, there may be a danger that the architect has built in fire suppressive items that may meet code for their preferred designation but not the one in question. Design is another factor to keep in mind during renovation. “Architects and designers will sometimes put the fire suppressants right in their designs,” Rhodes says. “That can be a problem.” Hiring a business specializing in fire suppression can help keep owners on or under budget for both new construction and

renovation. “We prefer to design it ourselves,” Rhodes says of Wayne Automatic Fire Sprinklers. “That can save you 20 or 30 percent.” The next step will be an evaluation of sprinklers and alarms. The height of a building matters here, or as Rhodes says, “Owners need to think about whether sprinkler demand overwhelms current water supply, or if they need to install a pump.” Local code dictates where those sprinklers need to be. In addition to the large-scale preventive measures, the National Fire Protection Association recommends additional steps, which include educating tenants on fire safety and making sure there is a well-executed escape plan and meeting area which is clearly marked and distributed among tenants. Retrofitting a sprinkler system and other fire-suppressive technology into an existing property can be more complex than installing them during construction, but keeping your building safe protects both your tenants and your investment.

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Hospitality Renovations Here are the keys to unlock a successful property revamp BY MOLLIE JAMISON

an Leising, account manager for United Renovations, spent the majority of his childhood watching his father develop hotels and resorts in the Rio Grande Valley. After 15 years of working in the industry himself, Leising believes positive interactions with guests, a clean work environment and on-site project management teams are critical to running a successful hospitality renovation. Renovator asked Leising about UR/Katerra’s growing hospitality division and his expertise on the best products and practices to use when renovating high-traffic areas such as restaurants, hotels and apartment clubhouses.

Respecting the cleanliness is also a critical aspect of hotel renovation. Guest and hotel operators never want to see a dirty, dusty property. UR takes every precaution to ensure this does not happen. While maintaining a clean working environment, we strive to ensure that every guest interaction with our renovation team is a pleasant one.” what are some similarities between hotel and multifamily renovations?

“Renovations of both segments are very similar. Both have living spaces and wet areas in the bathroom and kitchen. Renovated multifamily units that are well maintained will retain occupancy and have positive word-of-mouth advertising. If done right, social media can have a positive impact. Hospitality is no different. When paying nightly rates, guests look for an affordable, clean and safe place to rest. With a welltrained hospitality staff and a clean updated property, ratings through the hotel chain or franchise will increase over other properties. With increased ratings comes increased occupancy and increased RevPAR. People use the Internet to book hotels and ratings have a huge impact on this. When guests have a positive experience, they tend to return and tell friends, family and business associates about their experiences.”

what hospitality services does ur /katerra provide?

“UR specializes in renovations and repositioning of hotel properties, large and small. This includes meeting Franchise Property Improvement Plans. From design services to full interior and exterior renovation, we offer assistance with FF&E requirements and Cap Ex projects as well as full- or partial- bathroom and kitchen replacement, restaurants, bars, workout facilities, guest laundry and back-of-the-house areas.” what makes ur /katerra a leader in hospitality renovations?

“Our on-site project management team is the key to success. Constant, ongoing communication is imperative when dealing with an occupied hotel. With daily communication and weekly reporting we ensure each property will capitalize on occupancy when possible. At UR we understand the importance of RevPAR (revenue per available room) and turn renovated rooms timely and efficiently to ensure they are maximized.

what are some of the current hospitality projects ur is working on?

“We just started this division of United Renovations and are currently negotiating with various properties. Over the years UR has done several projects, the most recent being the Sheraton Conference Center in Arlington, Texas, located next to AT&T Stadium.”

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Making a Patio a Powerful Rent Generator These small spaces hold big revenue potential for property owners BY MOLLIE JAMISON

ccording to Jimmy Croteau, director of design services at United Renovations, there are four main ways that property owners can transform patios into powerful rent generators. From offering furniture as an add-on to displaying an inspiring model, Croteau offers up expert advice to maximize the impact on property value.

junk on their patios.” This maintains a better curb appeal to current and future tenants. fashion and functionality

“I am drawn to the fashionable aspect of patios and am always looking for the ‘wow’ factor,” Croteau says. “However, if it’s not functional or does not give me more living area, then it is not of value. I think it depends on the person and their living style. I am a foodie, so my preference would be to use it as a second dining room or entertaining space with a small herb garden.” If a patio does not have the potential to be used, it is wasted space and a wasted opportunity. If residents buy into the need for a fashionable and functional patio, it helps owners improve an exterior element of their property they often cannot control.”

showcase versatility

“Essentially you are showing your future renter how to increase their living space,” Croteau says. “A patio is a great way to add an additional 100 square feet of living. I love to show it as different areas: dining, living, garden, or a little of all of those so the leasing professional or renter can see all options and envision what they can do themselves. Small pets can also use this space, just be sure that they are protected from the elements and do not create noise.”

utilize the area

“I think with smaller spaces, maybe do a bistro set with plants and trendy lighting,” Croteau says. “If the space is not private, create a living wall by putting planter boxes with high vegetation and color.” There are many simple ways to create excitement and generate rent through leveraging the power of the patio.”

offer add - ons

“By including patio furniture in the rental, you automatically increase living space and also dictate what the patios on your properties look like,” Croteau says. “This is a huge win for property owners. The owner and management don’t have to worry about the residents putting

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Donate, Reuse, Recycle Older appliances get a second chance post-renovation thanks to these organizations BY BRIGETTE WALTERMIRE

ppliance disposal is an important practice for renovators. Oftentimes, working appliances can be donated and broken ones can be recycled or used for parts. And although this method may take a little more effort verses calling a standard waste removal service, the environment — and your budget — will thank you. According to the Environmental Protection Agency (EPA), appliances left in a landfill can allow chemicals to leak into the environment. From greenhouse gases, hazardous insulation and toxic substances, many machines must be handled by facilities that can remove these parts of the appliance before recycling. For example, as a federal law, the refrigerants, oils and other compounds in refrigerators and freezers must be removed and recovered. Once removed, the EPA says 95 percent of a refrigerator can be recycled. In an effort to make this process more accessible, the EPA’s Responsible Appliance Disposal program (RAD) partners with utilities, retailers, manufacturers and others orga-

nizations to ensure the hazardous components of appliances are handled properly. Most RAD partners will remove old refrigerated appliances including fridges, freezers, window air-conditioning units and dehumidifiers (for a complete partner list visit epa.gov). Utility companies in the Appliance Recycling Centers of America (ARCA) network offer pickup and recycling of household refrigeration appliances from both retailers and independents. For example, Puget Sound Energy in Washington provides a multifamily retrofit incentive for owners and managers looking to reduce overall energy usage — and save on utility bills — with energy-efficient equipment in common areas and individual units. A representative will provide a free energy assessment of the property and follow up with low-cost and no-cost energy and water saving improvements. An appliance swap is arranged, and the ARCA team will remove old appliances and transport them to the recycling center for processing. Electrical incentive val-

ues for large appliances include refrigerator decommissioning at $25 per unit and ENERGY STAR-certified refrigerators at $75 per unit. Another option is to donate. Many non-profit organizations provide pickup, and donations may be tax deductible. Habitat for Humanity’s home improvement stores, Habitat Restores, accept “gently used” appliances as long as they are in working condition. With more than 850 locations, Habitat Restores offer a pick-up service for large appliances and multiple items associated with remodeling. And the best part: money from the donations supports building affordable housing worldwide. Goodwill accepts small appliances, but not all large, and the Salvation Army and St. Vincent de Paul also take appliances. Hiring a junk removal company may seem like the easy option, but the positive impact of donating and recycling appliances can add value to your property, budget and the environment, which is never a waste of time.

DONâ&#x20AC;&#x2122;T MISS THE FOREST FOR THE TREES Katerra is Using Cross-Laminated Timber to Change the Way We Build BY ROBIN CLEWLEY

represents the future of high performance building technology in a new market for building materials that are safe, efficient, economical and environmentally friendly. With its new 250 thousand-square-foot mass-timber manufacturing facility in Spokane Valley, Washington, Katerra is helping to scale the production of cross-laminated timber (CLT) in the U.S. so that the material can be more broadly adopted across the construction industry, both in new construction and renovations. CLT represents the future of sustainable construction. Due to its low carbon footprint and strength, CLT reduces environmental impact without sacrificing design or structural integrity. By manufacturing its own CLT, Katerra is embracing this natural resource, and helping the U.S. construction industry realize

the promise of an advancement that is already widely used in Europe. Several leading authorities have stated that CLT is the building material of the future and Katerra is positioning itself as the industry leader. “CLT is perfect for us in that it’s a material that creates beautiful spaces, is designed for manufacturing, and is sustainable all at the same time,” says Michael Marks, chairman and co-founder of Katerra. “This material represents a great opportunity to create new value within the construction industry and will be central to many of the projects we’ll be designing and building. We feel very comfortable and excited, particularly with the knowledgeable team we have, to make the jump into manufacturing mass timber. We are ready to help bring mass timber to the mainstream of U.S. construction.”

WHAT IS MASS TIMBER Mass timber is a category of building framing that uses large panelized solid wood construction. Katerra’s mass timber product line will include cross-laminated timber (CLT), a flat panel engineered wood product that complements glulam elements. The two elements combine together as columns, beams, walls and floors to form a mass timber construction system.

Through this investment in the Spokane area, Katerra is helping to make economic and community progress that is truly sustainable. This type of sustainable ecosystem is a model the company is planning to replicate in partnerships that will help boost other local economies through growth of this new market sector within North America. Through its end-to-end construction services model, Katerra will supply much of the CLT to projects where it will also serve as architect and contractor. One of Katerra’s first local Spokane-area CLT projects will be the construction of the new Hospitality Center in association with the Community Cancer Fund, Ronald McDonald House and Kootenai Health (Walden House). The facility will

“CLT is perfect for us in that it’s a material that creates beautiful spaces, is designed for manufacturing, and is sustainable all at the same time.”

house both Ronald McDonald House families while their children are hospitalized in a home-away-from-home environment, as well as provide lodging for the Walden House adult outpatients and their families while receiving treatment at the Kootenai Health facility. The Hospitality Center project is projected to be completed by 2019. In addition to structural components like CLT, Katerra manufactures finishes including countertops, doors, lighting fixtures, faucets, toilets and bathtubs. These end-to-end products provide both new construction and renovation projects with better, faster and cheaper materials, allowing owners and investors to maximize returns and overall project quality.

THE HIGHS AND LOWS OF UNIT FLOWS How to maximize earning potential during renovation BY KRISTY ALPERT

In the fast paced world of property management, it is no question that a quality renovation equals increased revenue for owners and managers of multifamily units. But, did you know that the speed of the renovation project could actually maximize your profits? The quantity and frequency in which units are released to the contractor for renovation (i.e., unit flow) greatly impacts the earning potential of a renovation project. The concept is often referred to as the “rush hour effect.” In busy times on the road, cars moving at the same pace means that everything is functioning at peak performance, and everyone is arriving on time to their destinations. However, it just takes one car slowing down or stopping altogether to negatively impact the entire flow of traffic, causing frustrating delays, angry drivers and even costly accidents. The same is true in a renovation project, where a steady flow of renovation work equals a smoother project overall. In a typical situation, a low unit flow strategy generally involves releasing units as they become

available, averaging around five to 10 units per month. Although releasing units as they become available may seem like a safe bet, it’s often riddled with costly delays and increased stress and tension among tenants. “Low unit flow is used to maintain corporate and co-investment minimum property occupancy expectations,” explains Priscilla Burney, operations compliance manager for United Renovations. “On paper it looks better to be making money than spending it, but releasing small batches of units, or units at an inconsistent rate, keeps the ‘expensive’ units off the market and maintains occupancy expectations.” Low unit flow budgets are created without low-volume materials’ pricing, where labor demand premiums and overhead burdens can further degrade a renovation project schedule and budget. Additionally, low unit flow can result in sporadic quality due to new labor crews and inconsistent material deliveries.

more. If your units were costing $8,000 per door to renovate, that means freeing up 12 free units.”

high notes

On the flip side, a high unit flow strategy typically involves releasing 20 or more units per month for renovation, and often includes occupied renovations where the tenants remain in their units during minimally invasive upgrades and updates. “High unit flow and occupied unit turns can maximize returns on renovation investment by reducing construction schedules,” Burney adds. “Along with volume and frequency, the investment is less with the same return as with low unit flow release. High unit flow benefits also include labor satisfaction and continuity, which has shown to result in maintained quality over time.” This renovation strategy means projects are completed more quickly, allowing owners and managers the chance to get ahead of upcoming new development competition, but it also means savings in general construction conditions as the shorter timeframe construction crews are on property, the less overhead is required across the project budget. “In this industry, time is money, and the less time spent on the project, the less money property managers and owners have to spend,” says Chad Paxton, director of operations for United Renovations. “If you can shave off time, you’re going to save money. For instance, on a 300unit property, renovating 10 units a month will take you 30 months. Overhead will end up costing you close to $80,000 per year, so you’ll end up spending $200,000. If you released more units per month you could do the project in half the time and save $100,000 overall, not to mention the cost of anything billed monthly, like storage containers, safety fencing around the property, dumpsters, temporary lodging and

keeping heads in beds

“The number one goal from the day you build and the day you sell should be keeping heads in beds,” Paxton advises, noting that the problem most property managers and owners face is finding the time to renovate their empty units while still focusing on keeping occupancy rates high. “You want your building as full as possible, which is why I always recommend doing a mix of occupied renovations while also renovating the unoccupied units.” The obvious catch to doing renovations while tenants are present is the possibility for disruption of their quality of life. It’s hard to sell a renter on the benefit of finishing the renovation project in 12 months instead of 24 without risking losing them when it comes time to renew their lease, so the trick is to sweeten the deal for them with a few incentives and concessions. United Renovation is offering another alternative to owners, occupied unit renovations. By taking this unique approach, owners can ensure occupancy while also gaining rent increases without unit downtime. To support this strategy, United Renovations offers door to door marketing, resident planning and town hall meeting support on their projects. “The more you communicate with your residents, the more they will get excited to be part of the project,” Burney says. “With proper marketing, you could have people clamoring to relocate to a renovated unit, freeing up batches of units at a time. Communication and marketing is key for successful high unit flow projects.”

“In this industry, time is money, and the less time spent on the project, the less money property managers and owners have to spend.”

take a walk with me The Way 3D Technology is Changing Property Site Visits for Owners BY STEVEN KIRLIN

emerging technologies are starting to disrupt the investment and renovation process, bringing much needed innovation to the industry. United Renovations is leveraging this new technology to better serve clients and change the renovation process from due diligence to design to construction. 3D technology is changing the fabric of real estate. Everything from residential home listings to apartment tours is moving into the virtual environment. This gravitation to immersive technology will continue to disrupt dated real estate and construction processes. United Renovations (UR) has been leveraging 3D technology for over a year to help owners achieve their renovation goals and simply the process. With multiple cameras in its client services toolbox, UR deploys cameras to all jobsites during various project phases, including: pre-acquisition due diligence, estimating and design services. “The benefits are numerous,” says Steve Deleon, vice president of client services. “One of the most exciting uses of our 3D technology is being able to conduct virtual site visits with clients and their teams, regardless of location. We can sit in our Dallas office and walk through units with an owner in Portland and his VP of construction in Denver in real time with incredible accuracy.” Recently, UR completed eight property scans across three states with this technology to help one client evaluate investment opportunities. The UR team was then able to build scopes in real time with the capital group virtually. For Mountain Path Capital, a California real estate investment manager, the benefits of this type of technology are numerous. “It is a technology that enables us to pursue investments on a national plat-

form, while gaining a sense of confidence,” says Daniel Hsu, founding member and head of investments for Mountain Path. “When you have respected partners, you don’t have to be there for initial scope walks.” Hsu recently worked with United Renovations on a project, and experienced the benefits firsthand. The speed of pursing multifamily investments nationwide also demands this type of technology, according to Hsu. “Capital markets move so fast. Travel time can be daunting,” Hsu says. “Since the investment arena is an odds game, and you are not hitting 100 percent, these 3D scans provide a cost savings tool and reduce multiple site visits.” United Renovations is committed to bringing owners like Hsu the best technologies on the market. UR’s recent merger with Katerra enhances and strengthens this capability. Construction companies traditionally invest less than 1 percent of revenue in new technologies—lower than every other major industry. As a result, the last several decades have seen U.S. construction productivity fall while costs continue to go up. Katerra is bringing the technology, design and supply chain innovations that revolutionized Silicon Valley to the world of architecture and construction. The emergence of 3D technology has ushered in a new method for pursuing property investments. With an experienced renovation partner, this technology brings teams geographically scattered into a common virtual environment, provides an ability to revisit properties at any time from anywhere, and reduces travel costs and time. At the speed of investing, this is a critical tool to help ensure better projects, from due diligence to completion.

This gravitation to immersive technology will continue to disrupt dated real estate and construction processes.

eight properties, six states, one call 8

6 5 7 PM OW 1

3 2 UR

THE PROPERTY LOCATIONS 1. Colorado Springs, CO 2. Mesa, AZ 3. Mesa, AZ 4. Phoenix, AZ 5. West Valley City, UT 6. Layton, UT 7. Salt Lake City, UT 8. Portland, OR

THE PLAYERS

UR - contractor OW - owner PM - property management company

When a Plan Comes Together The Main Things for Your Propertyâ&#x20AC;&#x2122;s Main Spaces BY THE UR ACCOUNT MANAGEMENT TEAM

uring due diligence and while formalizing a pre-acquisition budget, it is important to remember fundamental renovations that improve your property and your returns. For over 15 years, in over 35 states, and inside over 650,000 units, the Account Management team of United Renovations has helped owners and investors succeed at repositioning properties. Consider these changes as you plan for your next renovationâ&#x20AC;Ś

Clubhouse BY KYLE COLAFRANCESCO

1 2 3 4 5

CREATIVE BARRIERS

Install a 3form panel to provide a functional barrier and define spaces, while creating a highend design feature.

SIMPLE CEILINGS

By simply scraping ceilings and installing recessed lighting, common areas become cleaner and more well defined.

INTENTIONAL COVER UP

A shiplap fireplace wrap brought a current design feature to the space and also covered up the dated stone veneer.

KEEP WHAT WORKS

Keeping current flooring when possible saves on cost. Our in-house design team can tie in upgrades to maintain a consistent look.

ADD SOME DRAMA

Replace out-of-date lighting with new, modern fixtures to create a dramatic impression on current and potential tenants.

Take a 3D look into another UR clubhouse

Living Room and Kitchen BY MJ CAUNAN

1 2 3 4 5

PEOPLE DIG ACCENTS

A vinyl plank accent wall is a low cost, high return installation that creates a unique look.

FRESH DETAILS

A fresh coat of paint and minor trim upgrades on a dated fireplace mantle instantly brings a modern look to the living area.

DOWN WITH FLOORING

New carpet is an efficient flooring choice, especially above the first floor as it serves as a sound-reducing barrier.

CABINET CONUNDRUM

Sometimes there is no need to change kitchen cabinets. In this case, the vinyl plank wall complements the existing cabinets and completes the overall design.

GO SOLID

A solid surface countertop is a necessary upgrade to kitchens. With materials like granite, quartz, and other composites, there are options for every budget. Take a 3D look into another UR model living and kitchen are

Bathrooms BY CHRIS SHAKESBY

1 2 3 4 5

LOOK IN THE MIRROR

Install new mirror trim instead of replacing the entire mirror to save on cost and completely change the look.

BE BOWLED

Add a bowl sink on top of your old built-in to update and upgrade the bathroom.

TOP NOTCH

A new 2 cm quartz countertop with a new sink immediately modernizes the look and provides durability through many lease cycles.

TO THE FRONT

By installing new doors and drawers, and adding a fresh coat of paint and hardware, cabinets can be updated without the higher cost of complete replacement.

WALK THE PLANK

Using vinyl planks in wet areas saves cost, increases durability and updates the look.

Take a 3D look into another UR model bathroom

DONâ&#x20AC;&#x2122;T LIMP ALONG WITH A LONG HOLD PROPERTY The Bascom Group is Bringing Institutional Power to Lifestyle Owners BY STEVEN KIRLIN

Dealing with the ownership of a multifamily property can be incredibly

f r u s t r a t i n g,

especially for those who inherit the assets. Properties are not always the only thing that is distressed. According to David Kim, managing partner of the Bascom Group, “Siblings who inherit multifamily assets are often facing new challenges of owner operating their properties while also experiencing serious internal friction from the stress of dealing with it all.” And this problem is not going away. In fact, at no other time in history is more wealth beginning to shift in the market. “There is a $30 trillion wealth and estate transfer that is going to happen over the next 30 years,” Kim says. “The next generation will inherit a lot of money, and for many, multifamily investments to deal with.” This handoff from baby boomers to millennials will have a massive impact on the multifamily industry. For a large majority, decisions often revolve around tax ramifications and exchange, rather than the properties themselves. For The Bascom Group (Bascom), dealing with these types of situations is becoming a regular occurrence. It also has provided a new opportunity for Bascom to bring institutional investment strategy, capital and property management to non-institutional, high net worth, private lifestyle companies. With inherited properties, the simple solutions may be to either limp along with low-returns or liquidate the asset, but Bascom is now offering a consultative approach to lifestyle owners. By helping with evaluation and strategy, Bascom is positioned to help provide another solution: a value-add reposition on a current property. “We can typically work with any property above 50 units,” Kim says. “From taking over management to bringing capital to the table, we are here to help

provide guidance to individuals facing a lifestyle property situation.” The experts at Bascom can provide experience-driven data, market analysis and even become an equity partner. “This is essentially a tenant/landlord joint venture,” according to Kim. “We operate as the asset manager investing in the landlord.” For lifestyle owners and their families, this means no more tension over management or profits. Bascom manages the property and the annual reporting. This can also mean much greater returns for owners. When financing is needed, Bascom’s institutional lending power positions lifestyle owners for better terms when financing a property reposition that results in a lower cost of capital. History speaks for itself. Since 1996, Bascom has acquired over 300 multifamily value-add reposition projects totaling 81,000 units and over $13 billion in total transactions. They have worked with some of the biggest names in institutional investing, including Carlyle Group, JP Morgan Chase, Pacific Life and Morgan Stanley. Bascom currently targets single asset or portfolio acquisitions of $10M or more through broker listed sales, off-market offers, and direct lender/owner relationships. They currently own 81 assets across 13 states totaling 19,382 units. The unprecedented wealth handoff from baby boomers to millennials is coming, and with it will come a large amount of multifamily assets. Bascom is focused on helping owners in this position succeed through consultation and partnership. When facing these types of situations, lifestyle owners do not have to limp along alone, but can turn properties into profitable investments for the future.

The

Power of

Personal Purpose Finding and living your personal purpose at work every day BY ROBERT HUNT

Have you seen the Secret Life of Walter Mitty with Ben Stiller? It is the story of someone trying to press beyond the boredom of day to day life and find something to give him a passion for living. In the movie, there is a scene where Walter recites the purpose statement of Life Magazine, something he ultimately decides to follow:

to live out their own purpose at work. Having a clear understanding of what drives us each day allows our team to think more creatively, stay focused, and stay engaged when things hit overload. Talk with and listen to your team so they understand the purpose that lies beneath the rules, strategies, and activities of your company. During your company meetings, share examples of how this purpose is being lived out with excellence so people understand it and stay connected to the dream. You need to remind and explain your purpose often so your team really understands it. Of course, validating your purpose starts by you living it out at the top and reinforcing it all the way down the line.

“To see the world, things dangerous to come to, to see behind walls, draw closer, to find each other, and to feel. That is the purpose of life.” I have found that life is better when you identify and live out your personal purpose. This is especially true when you can live that out through your work. Most of us spend the majority of our lives going to or from work, being at work, or thinking about work. If you can find a way to live out your personal purpose in life through your work, each day becomes an opportunity to live with passion and intentionality. Do you know your personal purpose in life? If you are the leader of your company, family, or team, you have the opportunity to live out your personal purpose and let others join you in the journey. Our team at United Renovations has followed the passion and purpose to have “Success with Significance” in serving the needs of the multifamily renovations market. This phrase means we want to be the best we can so we can change and impact lives through all we do. It’s a rally cry for excellence that keeps us focused on developing our team and processes to deliver great products and services to our customers.

does your team model your purpose?

Your team is watching the example you set. Make sure that everyone is clear about your purpose so they can pass these on to others they lead. Take time to verify that your message is getting all the way down to the last person on the team, and that your actions do not contradict the words you are posting on your walls. Share your plans, dreams, and ideas with the leadership team each month and allow others to question your direction and message. An unbiased view of leadership can help you refine your message and actions before you take it to the rest of your team. do your customers experience your purpose?

purpose leads to better results

People who know and live out their personal purpose at work are more engaged, caring, dedicated, productive, and focused. They are driven by something more than paycheck or a job title. We see this evident in the non-profits we work closely with, like the Ring of Hope Boxing Club or Living for Zachary. People give of their time, money and their hearts for FREE, to serve and support these charities. WHY? Because they believe in the stated purpose of these charities. Compare this with the employees at your company. Do you struggle to get employees just to show up on time and work together? What would it be like if your employees had the same passion for your company that you do? What if working at your company created the same level of excitement as working for the charity of their choice? What if you used your purpose to create a vision and mission for your company that included caring for your employees as much as you do your customers, your reputation, and your profits?

Don’t assume your purpose is being seen by others. Ask them. Talk with your customers, ask your suppliers, read what the market is saying about you, and see if they are seeing it the same way you hoped they would. It’s the difference between what you want your brand and reputation to be versus how the market perceives it. Don’t assume everyone is receiving your purpose the same way you think you are presenting it because your message can be confused and changed along the way like some horrible version of the telephone game. This can be done with annual surveys and monitoring social media, but I prefer face-to-face with our customers to really know what they see. We have customers across the country, and it requires we stay in constant contact to know that we are not missing the mark. Our account managers represent our purpose to the market, and they are the eyes and ears that keep us connected to our clients. Take time this week to write out your purpose in life and share this with your team. Ask them what they think their purpose is and find ways to help them live this out at work. If you do, you will find that your work will transform as you live your personal purpose, and your teams will be excited to join you.

does your team understand your purpose?

There is real power in having a purpose your team can believe in. If your purpose is not clear to your team, they can struggle to find a way

O N T H E WAY O U T

An In-Flight Emergency BY STEVEN BOLOS

orking with nationwide property owners means a lot of travel for guys like me. From gold to platinum status, I put in the hours and miles to serve clients across the country. As any frequent traveler knows, there is a big difference between jet setting and jet sitting. Most of the time, it is more sitting than setting. One day, years ago while on a flight from Dallas, Texas, to Irvine, California, I had what I thought to be the worst traveling experience ever. There I was, trapped and confined on the plane while stuck on the tarmac waiting to depart. Although this has happened to many of us travelers over the years, this unusual experience would be long-remembered as my worst. There I sat squeezed between an older gentleman and a woman. Twenty minutes or so had passed, as we still sat quietly awaiting the captain’s radio announcement of “wheels up.” The woman seated next to me reached under the seat for her purse and pulled out her emergency toenail clippers. My curiosity was short-lived, and to my horror and dismay, she immediately slung one leg over the other and began clipping her toe nails, sending nail clippings flying left and right. My fear of being pierced in the eye by a flying nail fragment was overshadowed by my shock, along with those around me, of seeing this happen. Since then, I believed that to be my worst travel experience that I would ever encounter. At least until today. This evening as I was traveling from Phoenix back home to Dallas and blessed to have been bumped up to first class. I sat in my cozy window seat relaxed and excited to have an upgraded experience. All was going well and the experience was everything I’d hoped it to be, until the last 40 minutes of the flight. Our drinks and food were served, and I savored the sweet, upgraded travel life. Suddenly the gentleman seated behind me in an aisle seat, who had seemingly consumed one too many drinks, began to excrete horrible gastric fumes, one after the other, as if he were a malfunctioning scent machine. My fellow passengers and I desperately used our cloth napkins as face shields to try and block out the horrendous smell. The bowel bombs kept coming, one after the other as if no end was in sight. At one point, I found myself struggling to keep from vomiting. The entire first-class cabin was cringing and frowning with each excretion, praying for the air circulation to clear the air. This most recent experience is now “by far” the worst experience I’ve ever had while traveling on an airplane. Traveling for work is not always that fun and first class sometimes stinks. I now have a new worst travel experience, and I hope my travels don’t get any fouler.

Although this has happened to many of us travelers over the years, this unusual experience would be long-remembered as my worst.

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