Twin Strategies There is nothing like grunting and having someone understand exactly what you mean, but for Nelson and Norman Leenhouts, twin brothers and co-CEOs of Home Properties, that is an everyday occurrence. “We really can anticipate [what] each other [is about to say],” says Nelson Leenhouts. The brothers started their company in 1967 with a 50/50 partnership, investing in single-family homes and renting them. As the company grew, Nelson Leenhouts started forming more partnerships so they could take money out of their existing properties and buy new buildings. By 1971, the company transitioned into multifamily properties, and it has never looked back.
The company grew into a diversified real estate company with a mix of office, retail and multifamily properties. In 1994, the company had about 400 limited partnerships and realized it was time to change the format of how it operated.
The company became a real estate investment trust (REIT) on July 27, 1994, and formed what is now known as Home Properties. Their primary reason for becoming a REIT was to provide liquidity for their partners and to provide estate planning for themselves.
Now, at 65, the brothers are ready to make another change. They’re planning for their succession. “We plan to continue as CEOs for approximately three more years and then sort of have our jobs reduced but not eliminated. We recently hired a very strong person [Edward Pettinella] … from the outside, who is the lead candidate to be CEO of our company.”
And while there are several family members in the business, both Nelson and Norman Leenhouts and the board of directors look first to the qualities of the person and not to the family relationship.
“This process is a very bittersweet process,” says Nelson Leenhouts. “If it was up to me alone, I would probably vote for five more years. But it’s really a team effort with many people involved. So I think three years works well.”