a special supplement to national real estate investor nmhc · a special supplement to national real...

NMHC 1

A Special Supplement to Nat ional Real Estate Investor

NATIONAL REAL ESTATE INVESTOR is pleased to present

the 13th annual compilation of the NMHC 50, the National Multi

Housing Council’s (NMHC) authoritative ranking of the nation’s 50

largest apartment owners and 50 largest apartment managers.

Based in Washington, D.C., NMHC represents the interests of the

larger and more prominent firms in the nation’s multifamily rental

housing industry. NMHC provides leadership for the apartment

industry on legislative and regulatory matters, advances research

and the exchange of strategic business information, and promotes

the desirability of apartment living. NMHC’s members are engaged

in all aspects of the development and operation of apartment

housing, including ownership, construction, management and

financing of such communities. The NMHC 50 has identified key

trends in apartment ownership and management, becoming the

definitive source for such information.

To ensure the 2002 NMHC 50 is as complete and accurate as

possible, NMHC staff gathered names of apartment owners and

managers from a wide range of sources. A senior officer from each

firm was contacted for the information included in the rankings,

which are for properties owned or managed on January 1, 2002.

Although membership in NMHC is not required for inclusion in

the survey, 83% of the firms appearing in this year’s rankings are

NMHC members. NMHC expresses appreciation to the industry

leaders for their participation in this annual effort.

The NMHC 50 was compiled and analyzed by NMHC staff

members Doug Bibby, Doris Collins, Jill Meron and Mark Obrinsky.

The NMHC 50 tallies rental apartments including rental housing

for seniors. Condominiums and cooperatives are excluded, as are

hotel rooms, nursing homes, hospital rooms and mobile homes.

Pension fund advisory firms are listed only if they have direct

ownership interests (as opposed to interests as fiduciaries) or serve

directly as property managers.

In addition to the rankings and analysis of the results, this section

includes a listing of the officers and members of NMHC. Staff

biographies round out the section.

For those interested in joining the apartment industry’s lead-

ership, NMHC welcomes inquiries to its Washington offices at

(202) 974-2300, or you can visit NMHC’s web site at www.nmhc.org.

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N M H C50

2 NMHC


Company Headquarters CEO

APARTMENT INVESTMENT AND MANAGEMENT COMPANY Denver, CO Terry Considine 251,201 265,620

RELATED CAPITAL COMPANY New York, NY Marc D. Schnitzer 246,918 160,860

EQUITY RESIDENTIAL PROPERTIES TRUST Chicago, IL Douglas Crocker, II 226,314 225,466

LEND LEASE REAL ESTATE INVESTMENTS Atlanta, GA Fred N. Pratt, Jr. 129,962 126,357

BOSTON CAPITAL Boston, MA John P. Manning 110,000 106,000

SUNAMERICA AFFORDABLE HOUSING PARTNERS, INC. Los Angeles, CA Michael L. Fowler 107,000 95,000

ARCHSTONE-SMITH Englewood, CO R. Scot Sellers 99,000 63,443

UNITED DOMINION REALTY TRUST, INC. Richmond, VA Thomas W. Toomey 77,567 79,065

WHITEHALL FUNDS New York, NY Daniel Neidich 76,000 84,000 LEFRAK ORGANIZATION, INC. Rego Park, NY Samuel J. LeFrak 71,000 69,000

SENTINEL REAL ESTATE CORPORATION New York, NY John H. Streicker 62,737 62,549

CASDEN PROPERTIES, INC. Beverly Hills, CA Alan I. Casden 59,510 71,826

GE CAPITAL REAL ESTATE Stamford, CT Michael Pralle 54,726 52,500

ALLIANCE HOLDINGS, L.L.C. Chicago, IL Andrew W. Schor 52,691 45,652

CAMDEN PROPERTY TRUST Houston, TX Richard J. Campo 51,345 51,336 EDWARD ROSE BUILDING ENTERPRISES Farmington Hills, MI Sheldon Rose 48,078 46,959

HOME PROPERTIES Rochester, NY Norman Leenhouts/ 48,066 47,497 Nelson Leenhouts

LINCOLN PROPERTY COMPANY Dallas, TX J. Timothy Byrne 47,691 44,702

KEY GLOBAL CAPITAL Cleveland, OH Edward Chu 45,797 N/A

RICHMAN GROUP CAPITAL CORPORATION Greenwich, CT Richard P. Richman 42,526 38,272

AVALONBAY COMMUNITIES, INC. Alexandria, VA Bryce Blair 41,212 37,146

WALDEN Dallas, TX John B. Bartling 40,297 43,541

WACHOVIA SECURITIES TAX CREDIT INVESTMENTS Charlotte, NC Ken Thompson 37,254 36,333

MILSTEIN PROPERTIES New York, NY Howard P. Milstein 37,000 37,000

FAIRFIELD RESIDENTIAL, L.L.C. San Diego, CA Christopher E. Hashioka 36,500 N/A

2002 OWNERSHIPNational Multi Housing Council 50(50 Largest U.S. Apartment Owners as of January 1, 2002)

2002 Rank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

2001 Rank

1

3

2

4

5

6

11

8

7

10

12

9

13

17

14

16

15

18

--

20

21

19

23

22

--

Apartments With Ownership Interest2002 2001

NMHC 3



FOREST CITY ENTERPRISES Cleveland, OH Charles A. Ratner 36,111 35,913

MID-AMERICA APARTMENT COMMUNITIES, INC. Memphis, TN H. Eric Bolton, Jr. 33,363 33,632

UBS REALTY INVESTORS, L.L.C. Hartford, CT James W. O’Keefe, Jr. 32,171 30,623

CRI, INC. Rockville, MD William B. Dockser 31,057 33,004

COLUMBIA HOUSING Portland, OR David Sebastian 31,000 31,166

POST PROPERTIES, INC. Atlanta, GA John A. Williams 30,897 30,247

COLSON & COLSON/HOLIDAY RETIREMENT CORPORATION Salem, OR William E. Colson 30,891 29,668

PRUDENTIAL REAL ESTATE INVESTORS Parsippany, NJ Bernard Winograd 30,626 28,413

WNC & ASSOCIATES, INC. Costa Mesa, CA Wilfred N. Cooper, Sr. 28,557 26,733

AMLI RESIDENTIAL PROPERTIES TRUST Chicago, IL Allan J. Sweet 27,258 26,147

GABLES RESIDENTIAL TRUST Atlanta, GA Chris D. Wheeler 26,860 24,774

SECURITY PROPERTIES, INC. Seattle, WA John M. Orehek 26,522 24,853

NORTHWESTERN MUTUAL Milwaukee, WI Ed Zore 25,843 26,161

RAYMOND JAMES TAX CREDIT FUNDS, INC. St. Petersburg, FL Ronald Diner 25,136 23,314

TRAMMELL CROW RESIDENTIAL Atlanta, GA J. Ronald Terwilliger 23,355 24,503

TVO REALTY PARTNERS Chicago, IL Wayne A. Vandenburg 23,302 23,250

PINNACLE REALTY MANAGEMENT COMPANY Seattle, WA Stan J. Harrelson 23,168 11,460

SOUTHERN MANAGEMENT CORPORATION Vienna, VA David H. Hillman 22,600 22,477

WESTDALE ASSET MANAGEMENT Dallas, TX Joseph G. Beard 22,553 20,956

CLK MANAGEMENT CORPORATION Great Neck, NY Craig Koenigsberg 22,153 N/A

IRVINE APARTMENT COMMUNITIES Newport Beach, CA Max Gardner 22,045 19,912 KUSHNER COMPANIES Florham Park, NJ Charles Kushner 22,000 25,000

BERKSHIRE REALTY HOLDINGS, L.P. Boston, MA David J. Olney 21,960 23,812

CONAM GROUP OF COMPANIES San Diego, CA Daniel J. Epstein 21,800 22,000

BH MANAGEMENT SERVICES, INC. Dallas, TX Harry Bookey 21,626 22,786

26 24

27 25

28 28

29 26

30 27

31 29

32 31

33 32

34 33

35 35

36 38

37 37

38 34

39 42

40 39

41 44

42 --

43 46

44 50

45 --

46 --

47 36

48 41

49 47

50 45

Apartments With Ownership Interest2002 2001

2002 Rank

2001 Rank

N M H C50

4 NMHC



APARTMENT INVESTMENT AND MANAGEMENT COMPANY Denver, CO Terry Considine 303,805 325,094

EQUITY RESIDENTIAL PROPERTIES TRUST Chicago, IL Douglas Crocker, II 232,505 233,250

PINNACLE REALTY MANAGEMENT COMPANY Seattle, WA Stan J. Harrelson 113,546 108,356

LINCOLN PROPERTY COMPANY Dallas, TX J. Timothy Byrne 103,255 100,371

ARCHSTONE-SMITH Englewood, CO R. Scot Sellers 103,000 63,443

UNITED DOMINION REALTY TRUST, INC. Richmond, VA Thomas W. Toomey 77,567 75,165

TRAMMELL CROW RESIDENTIAL Atlanta, GA J. Ronald Terwilliger 65,409 60,324

SENTINEL REAL ESTATE CORPORATION New York, NY John H. Streicker 62,737 62,549

WHITEHALL FUNDS New York, NY Daniel Neidich 58,000 44,000

ALLIANCE HOLDINGS, L.L.C. Chicago, IL Andrew W. Schor 52,691 45,652 CAMDEN PROPERTY TRUST Houston, TX Richard J. Campo 52,650 51,828

HOME PROPERTIES Rochester, NY Norman Leenhouts/ 49,734 50,500 Nelson Leenhouts

FAIRFIELD RESIDENTIAL, L.L.C. San Diego, CA Christopher E. Hashioka 49,230 N/A

CONAM GROUP OF COMPANIES San Diego, CA Daniel J. Epstein 48,000 47,500

EDWARD ROSE BUILDING ENTERPRISES Farmington Hills, MI Sheldon Rose 45,820 44,701

GABLES RESIDENTIAL TRUST Atlanta, GA Chris D. Wheeler 45,267 41,325

AVALONBAY COMMUNITIES, INC. Alexandria, VA Bryce Blair 41,589 37,779

LEFRAK ORGANIZATION, INC. Rego Park, NY Samuel J. LeFrak 40,657 38,657

WALDEN Dallas, TX John B. Bartling 40,297 43,541

WINNRESIDENTIAL Boston, MA Samuel Ross 38,462 15,635

GREYSTAR REAL ESTATE PARTNERS, L.L.C. Charleston, SC Robert A. Faith 37,215 37,663

MILSTEIN PROPERTIES New York, NY Howard P. Milstein 37,000 37,000

WESTDALE ASSET MANAGEMENT Dallas, TX Joseph G. Beard 36,993 36,725

MID-AMERICA APARTMENT COMMUNITIES, INC. Memphis, TN H. Eric Bolton, Jr. 33,363 33,632

ASSOCIATED ESTATES REALTY CORPORATION Richmond Heights, OH Jeffrey I. Friedman 31,350 32,124

2002 MANAGEMENTNational Multi Housing Council 50(50 Largest U.S. Apartment Managers as of January 1, 2002)

2002 Rank

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

2001 Rank

1

2

3

4

6

5

8

7

15

13

9

10

--

11

14

18

20

19

16

--

21

22

23

24

26*

*Due to a miscommunication, Associated Estates Realty Corporation was omitted from the 2001 NMHC 50. They would have been #26 on the Top 50 apartment managers list.

Apartments With Management Interest2002 2001

NMHC 5



LANE COMPANY Atlanta, GA George H. Lane, III 31,290 33,615

POST PROPERTIES, INC. Atlanta, GA John A. Williams 30,897 46,896

COLSON & COLSON/HOLIDAY RETIREMENT CORPORATION Salem, OR William E. Colson 30,891 31,428

LEDIC MANAGEMENT GROUP, INC. Memphis, TN L. Brent Garrett 29,964 27,797

LEGACY PARTNERS Foster City, CA C. Preston Butcher 29,333 15,343

VILLAGE GREEN COMPANIES Farmington Hills, MI Jonathan Holtzman 29,000 28,000

AMLI RESIDENTIAL PROPERTIES TRUST Chicago, IL Allan J. Sweet 28,132 27,358

JPI COMPANIES Irving, TX J. Frank Miller, III 27,665 27,000

SECURITY PROPERTIES, INC. Seattle, WA John M. Orehek 26,522 N/A

BERKSHIRE REALTY HOLDINGS, L.P. Boston, MA David J. Olney 25,245 30,327 ALLIANCE RESIDENTIAL COMPANY Phoenix, AZ Bruce C. Ward 25,136 N/A

FOREST CITY ENTERPRISES Cleveland, OH Charles A. Ratner 25,047 25,319

SIMPSON HOUSING, L.P. Denver, CO J. Robert Love 24,747 23,645

GRENADIER REALTY CORPORATION Brooklyn, NY Felice L. Michetti 24,649 22,153

FPI MANAGEMENT, INC. Sacramento, CA Dennis Treadaway 24,357 22,512

TVO REALTY PARTNERS Chicago, IL Wayne A. Vandenburg 24,147 23,299 BH MANAGEMENT SERVICES, INC. Dallas, TX Harry Bookey 23,631 22,786

CASDEN PROPERTIES, INC. Beverly Hills, CA Alan I. Casden 23,009 24,169

SHELTER GROUP, L.L.C. Baltimore, MD Arnold I. Richman 22,670 N/A

SOUTHERN MANAGEMENT CORPORATION Vienna, VA David H. Hillman 22,600 22,477

DRUCKER & FAULK, L.L.C. Newport News, VA John A. Munick, Jr. 22,305 21,019

WESTERN NATIONAL GROUP Irvine, CA Michael K. Hayde 22,238 42,005

KUSHNER COMPANIES Florham Park, NJ Charles Kushner 22,000 22,000

CORCORAN JENNISON COMPANIES Boston, MA Marty Jones 21,943 14,648

PICERNE REAL ESTATE GROUP Warwick, RI Ronald R.S. Picerne 21,105 20,104

26 25

27 12

28 26

29 30

30 --

31 29

32 31

33 32

34 --

35 28

36 --

37 33

38 37

39 44

40 42

41 38

42 41

43 35

44 --

45 43

46 47

47 17

48 45

49 --

50 --

2002 Rank

2001 Rank

N M H C50Apartments With

Management Interest2002 2001

6 NMHC


THE OPERATING ENVIRONMENT FOR APARTMENTS changed substantially last year — from the end of the nation’s longest economic expansion to the disloca-tion and uncertainty caused by the terrorist attacks of September 11th and their aftermath. Although new con-struction only slipped a little from the previous year’s level, occupancy rates edged down, rent growth slowed, and in the last quarter of the year, rent concessions became prevalent in markets around the country. Even so, the longer-term trend toward consolidation in the industry remains intact, as evidenced in the NMHC 50, the annual listing of the nation’s largest apartment companies. In fact, the pace of consolidation picked up, both in ownership and management, from the previous year’s rate. While much of this trend was incremental, fueled by acquisitions of properties, some significant company acquisitions did occur.1 While only a handful of newcomers appear in the ownership rankings, seven firms appear in the management list for the first time.

Despite the challenging economic times, the 50 largest apartment owners still managed to increase their holdings by 6% compared with last year’s survey. This is considerably higher than the 3% growth rate of last year’s survey, though below the average of the prior three years. As of January 1, 2002, the top 50 owners had an ownership interest in 2.77 million apart-ments, approximately 17% of the total national stock.2 Portfolio growth was stronger in the top 25 firms, but unlike last year’s survey the second 25 also gained in size. REITs hold two of the top three places in the ownership rankings, but overall there are fewer REITs on this year’s list — only 11 public REITs made the NMHC 50 ownership

list, down from 13 last year and from 16 in 2000. Public REITs now account for 33% of the total holdings of the NMHC 50, down from a peak of 40% two years ago.

The 50 largest apartment managers grew by almost 4% compared with last year’s survey — slower growth than the owners, but a rebound from last year’s list, which featured essentially no change in the number of apart-ments managed by the top 50 firms. The managers in this year’s NMHC 50 manage 2.44 million apartments, approximately 15% of the nation’s total apartment stock.

Although the list of top apartment managers is dominated by firms who are also among the top apartment owners, there still are many property management spe-cialists in the management portion of the NMHC 50. In addition, a number of firms appear on both lists, but manage far more apartments than they own.

APARTMENT OWNERSThe leaders

Apartment Investment and Management Company (AIMCO) retained the top spot in the NMHC 50 owners list with an ownership interest in 251,201 apartment units. After a year of strong growth, Related Capital moved up to the second spot with 246,918 units, an increase of more than 86,000 units from last year.3 To put this in perspective, Related added almost as many apart-ments to their portfolio as the combined portfolios of the four firms at the bottom of the list. Equity Residential, which increased its ownership by less than 1,000 units,

NMHC 50 Shows Consolidation Advance Despite Downturn by Mark Obrinsky, vice president of research and chief economist/National Multi Housing Council

1 Note that the acquisition of Casden Properties by Apartment Investment and Management Company (AIMCO) did not close by January 1, 2002, hence is not reflected in this year’s NMHC 50.2 The apartment stock is defined as the total number of apartments in structures with at least five units.3 As with AIMCO, the figure for Related Capital includes both full and partial ownership interests.

N M H C50

8 NMHC


slipped to No. 3 in the rankings, though it remains the top publicly traded REIT when measured by total capital-ization. (See discussion below.) Lend Lease Real Estate Investments and Boston Capital round out the top five, as they did last year. Each added upwards of 4,000 apart-ments to its portfolio.

The rest of the top 10 also are familiar companies. SunAmerica Affordable Housing Partners increased its holdings by 12,000 apartments to solidify its hold on the No. 6 slot. Archstone-Smith, formed by the merger of two public REITS, Archstone Commu-nities (the No. 11 firm last year) and Charles E. Smith Residential Realty (last year’s No. 30), takes over the No. 7 position. United Dominion Realty Trust, another REIT, remains in the No. 8 position. Whitehall Funds (an affiliate of Goldman Sachs) and Lefrak Organization round out the top 10.

The newcomersOne of the hallmarks of the apartment industry in

recent years has been its stability. This continues to be evident in the small number of firms appearing in the top 50 list for the first time. For 2002, only four

firms are new additions to the NMHC 50 list of apartment owners. Key Global Capital debuts in the No. 19 slot, with an ownership interest in close to 46,000 apartments. Fairfield Residential, an apartment developer with prop-erties in most regions of the country, is the 25th largest owner this year. Pinnacle Realty Management, long a mainstay among the top managers, joins the ranks of the top owners for the first time at the No. 42 position. Finally, CLK Management, which more than doubled its ownership portfolio, rounds out the list of newcomers at the No. 45 slot.

Rising StarsRelated Capital showed the largest increase in apart-

ments owned by any firm that was in the NMHC 50 in both 2001 and 2002. Indeed, its gain of more than 86,000 apartments dwarfed all other portfolio increases. Largely as a result of its merger with Charles E. Smith Residential, Archstone Communities, now called Archstone-Smith, added more than 35,000 apartments. Archstone-Smith also was the second-biggest mover within the rankings, jumping four places to the No. 7 position. Westdale Asset Management, previously at the very bottom of the NMHC 50, leaped six places to the No. 44 slot.

10 NMHC


The NMHC 50 ranks apartment owners by the

number of apartments in which they hold an

ownership interest. For the majority of companies

in the listing, this is the only measure of size that

is both consistent and generally available.

Publicly traded REITs also can be measured by

total market capitalization. As with other publicly

traded companies, size can be estimated by the

stock market’s valuation of the company’s equity

and the book value of its debt.

All of the REITs in the NMHC 50 are apartment

specialists, and the majority of their assets are

apartments. Hence, their market capitalization is

a useful and consistent measure of the market’s

valuation of the companies’ apartment

business.

The accompanying table ranks the

publicly traded REITs in the NMHC

50 ownership list by the number of

units they own. It also shows both

their total market capitalization and

their ranking by that standard. There

are several notable

differences in the rankings. AIMCO,

which holds the top position in

the NMHC 50, has an ownership

interest in 11% more apartments than

does Equity Residential Properties Trust.

However, when measuring by total

market valuation, Equity Residential is

67% larger. The other REITs whose

market value rank is higher than their

units-owned rank are AvalonBay, Post

Properties and Gables Residential Trust.

The differences between the two rankings

have several explanations. The most important

difference has to do with partial ownership of

apartments. In addition to being the sole owner

of thousands of apartments, some companies

have partial ownership interest in others, typically

through involvement in a partnership, as either

the general partner or a limited partner.

While this ownership interest may be as small

as 1%, the apartments are tabulated by NMHC as

if they were fully owned by the REIT. By contrast,

the valuation measure effectively adjusts for

the extent of ownership. Notably, AIMCO has

full ownership of only approximately 25% of

its apartments and a less-than-half-ownership

interest in approximately 42% of its holdings.

Other reasons for differences between the

rankings include: (1) differences in apartment

value among companies based on apartment

quality or geography; (2) differences in the

investor assessments of the quality and stability

of current income as well as the growth

prospects for the company; and (3) differences

in portfolio holdings of assets other than

apartments, including both hard assets and

the valuation of contracts for third-party

management of apartments owned by others.

REITs in the rankingsFor the second straight year, publicly traded REITs signif-icantly outperformed the overall stock market. Notwith-standing this record, equity capital remained scarce, and acquisitions of properties often were funded by disposi-tions of other properties, putting a lid on overall growth among public REITs.

This year’s NMHC 50 contains only 11 public REITs, down from 13 last year and from 16 in 2000. BRE Prop-erties, which was the No. 43 firm in last year’s listing, decreased its portfolio to 20,419 apartments in the past year. As a result, it slipped from the top 50. The merger of Archstone and Charles E. Smith eliminated another REIT from the rankings.

The combined holdings of public REITs in the NMHC 50 decreased by more than 24,000 apartments. After rapid growth in the 1990s, public REITs among the NMHC 50

held over one million apartments in 2000. The last two years have seen a decrease of 10% from the 2000 listing.

Keep in mind a few accounting points regarding the REIT figures shown above. In particular, the REIT numbers in the NMHC 50 do not include private REITs that are established within larger business organizations. The figures also do not include publicly traded companies in the NMHC 50 that have not elected REIT status. Finally, to permit comparisons with the portfolios of non-REIT owners, the NMHC 50 ranks by number of apartments in which the entity has an ownership interest. This gives a different ranking for apartment REITs than would result from alternative size measures, such as the companies’ capitalization. The accompanying box dis-cussion compares the rankings by both measures—units owned and market capitalization.

SIZING the APARTMENT REITS

12 NMHC


Industry growth and concentrationThe trend toward consolidation remains intact

in the nation’s apartment industry. The number of apartments owned by the NMHC 50 grew by 6.3% compared with last year’s listing. Though slower than the 9% to 11% growth range of the 1998-2000 listings, it is a rebound from the 2.9% pace recorded in last year’s survey. It also is on par with the average growth rate of the last 7 years. Growth tended to be top-heavy: Holdings of the top 10 firms increased by 8.7% compared with last year. Meanwhile, portfolios of the top 25 grew by 7.2%, and growth among the second 25 firms was 3.5%. The threshold for entry into the NMHC 50 edged up from 20,956 to 21,626.

The share of the apartment market owned by the NMHC 50 increased as well. The 10 largest firms have an ownership interest in 8.6% of the total stock of rental apartments in buildings with at least five units—esti-mated by NMHC at almost 16.2 million units. The top 25 firms own 13.0% of the apartment stock, while the NMHC 50 combined hold 17.1% of all apartments, up a full per-centage point from last year’s share. All of these figures are record highs.

APARTMENT MANAGERSThe list of top apartment managers includes many of

the nation’s largest apartment owners who also self-man-age their own properties. Hence, they appear on both the top 50 owners and top 50 managers lists. Other firms spe-cialize in property management and provide this service to apartment owners, including some of those in the NMHC 50 owners list.

The leadersAIMCO remains at the top of the NMHC ranking of

the nation’s largest apartment managers, even though it scaled back its third-party apartment management.

Its management portfolio still exceeds its ownership portfolio by more than 52,000 units, indicating it still manages some apartments for other owners. Equity Residential Properties Trust, which manages few prop-erties outside its own portfolio, easily retained its No. 2 position. Pinnacle Realty Management Company and Lincoln Property Company are again in the No. 3 and No. 4 slots, respectively, while Archstone-Smith moved up a notch to the No. 5 position. Whitehall Funds and Alliance Holdings joined the list of apartment managers in the top 10 for the first time.

The newcomersSeven companies are new to this year’s top 50 ranking

of apartment managers. Fairfield Residential, which manages 49,230 apartments, joins the list in the No. 13 position. The firm also is a new member of the NMHC 50 ownership list. WinnResidential more than doubled its management portfolio to 38,462 units, good enough for 20th place. Associated Estates Realty, a publicly traded REIT, added almost 20,000 apartments to its manage-ment total, moving it into the No. 25 slot. Well-known developer Legacy Partners, with 29,333 apartments under management, debuts at the No. 30 slot. Security Proper-ties (No. 34), Alliance Residential (No. 36), and Shelter Development (No. 44) round out the newcomers list.

14 NMHC


Rising stars of managementThe biggest increase among management portfolios

was posted by Archstone-Smith, largely by virtue of its merger with Charles E. Smith Residential. Whitehall Funds, whose portfolio grew by 14,000 apartments, made the biggest jump in rank, moving up 6 slots to No. 9. Alliance Holdings, like Whitehall, was among the leaders in both portfolio growth and jump in rank. Pinnacle Realty and Trammell Crow Residential were among the top portfolio growers for the second straight year.

Apartment management growth and concentrationThe top 50 management companies manage a

combined 2,438,665 apartments, an increase of 3.7% from last year’s listing. In contrast to the owners’ growth, which was concentrated at the top, the managers’ increase was spread broadly throughout the list. The top 10 increased their management portfolios by 3.7% compared with last year’s survey, the top 25 by 3.4%, and the second 25 by 4.5%.

As expected, management concentration increased once again, following the one-time trend reversal of last year’s survey. The top 10 apartment managers now manage 7.2% of the nation’s apartments — an increase from last year, though still down slightly from 2000. The top 25 firms increased their management share to 11.1% of the apartment stock, a new record. And the top 50 management firms manage 15.1% of the nation’s apart-ments, also a new high.

SPECIALISTSA total of 33 companies appear on both the lists of the

top 50 owners and top 50 managers. Therefore, each list has 17 firms that do not appear on the other list. Many of these firms are actually involved in both ownership and management, but tend to specialize in one of these activ-

ities, hence do not reach the threshold needed to rank on both lists. The specialists include some of the biggest companies on the two lists. On the owners list, Related Capital, Lend Lease Real Estate Investments and Boston Capital are all among the top 5 owners, but do not appear on the management rankings. In the manage-ment portion of the NMHC 50, newcomer WinnResi-dential (No. 20) is the biggest firm that does not also appear on the top owner list. Pinnacle Realty Manage-ment, the third largest manager both last year and this year, was the top management specialist last year. This year, the company moved into the NMHC 50 ownership list, removing it from the ranks of specialists.

Not surprisingly, some firms that appear on both the ownership and management NMHC 50 lists are more prominent in one ranking than the other. Companies whose ownership portfolios exceed their management portfolios by more than 25,000 apartments are: Casden and Lefrak Organization. Firms whose management port-folios exceed their apartment holdings by more than 25,000 units are: Pinnacle Realty, Trammell Crow Resi-dential, Lincoln Property, AIMCO, and ConAm.

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