The Fundamentals “Our whole timing and strategy – to redeploy a large quantity of capital in the California market place – was perfect,” says John Jordano III, senior vice president of investments for the Western region of Archstone. “Scot is a great strategist in the multifamily business.”
Jordano attributes the redeployment success to Sellers’ experience in the development business as a partner at Lincoln Property Co. “For someone whose background is on the investment side, he truly understands what it takes to keep the customer happy,” says Hamilton.
As a build-to-own developer, Arch-stone is focused on establishing a local presence in its markets. That way, the people who oversee the company’s development efforts in major markets not only live there, but have a long tenure both in those markets and with Archstone. “Having people who live and breathe in those markets is important,” says Hamilton. It enables the company to know what the city wants, and what’s on the area’s political agenda, she says.
Once a project is approved, Archstone can take a look at how to spend its money to make the properties more attractive and to give them a longer life span, says Sellers.
For instance, three years ago the company began a sound proofing initiative. The goal was to find ways to make the apartments quieter. “Our research showed that [it] was an important issue to our customers,” says Sellers. “We spend an extra $1,500 to $2,000 per unit now, in our development process, making sure that our units are quieter.”
Other design elements the company has improved include landscaping and providing sufficient storage space. “Storage is something we are very focused on,” says Hamilton. Every new unit Archstone builds has an entry closet, balcony/porch storage space, a washer and dryer area with storage space, storage in the bathroom and walk-in bedroom closets, explains Hamilton. “It’s what people say is important. Potential residents are always worried about storage room,” she says.
The company also tries to limit the number of floor plans at a community, because it makes it easier to market and build the complex. “By simplifying that, it allows us to put more resources into common amenities,” says Hamilton. While Sellers recognizes that it’s hard to offer amenities that are completely different from the competition, he contends that the company has taken a creative approach. Six years ago, Archstone designed business centers that were appealing and functional as opposed to being just a small room with a computer or two in it, he says. “We have gone out of our way to make [the business centers] feel like a comfortable library environment where people like to go and work, as opposed to just something you can say you have as an amenity.”
All of Archstone’s business and conference centers offer high-speed data access, faxes and copiers, says Hamilton.
“We’ve also gone out of our way to make our fitness centers … like a commercial health club,” says Sellers. The facilities are designed with high ceilings and have multiple televisions positioned throughout the center, so a resident has the ability to watch any station, says Hamilton. In addition, there are separate aerobic rooms.
When the resident profile warrants it, Archstone will include small movie theaters and community activity centers at the properties. The community centers offer parents a place to bring their children for art classes and other activities.
Computer alcoves are another design element that Archstone has found very popular with its residents. Archstone’s policy is to give products and services a trial run before widespread inclusion. So, the work alcoves were tested in selected floor plans. It was important to monitor the computer usage so the company knew the best place for each alcove and its necessary wiring, explains Hamilton.
People did not want to move out of the first units with work stations, says Hamilton. “So, we redesigned all of the floor plans to incorporate a computer area,” she says.