Case Study: McKinley Properties
McKinley Properties is a real estate investment company headquartered in Ann Arbor, Michigan. The company was founded in 1968 and has grown into one of the largest real estate investment companies in the United States, with a portfolio of over 35,000 apartments and commercial properties.
In this case study, we will explore how McKinley Properties has grown its portfolio over the years and how the company has adapted to changes in the real estate market.
Growth Strategy
McKinley Properties' growth strategy has been focused on acquiring and repositioning underperforming properties. The company has a team of experts in property management, construction, and finance who work together to identify properties that are in need of rehabilitation or repositioning.
McKinley Properties has also focused on expanding its portfolio through strategic acquisitions. In 2018, the company acquired a portfolio of 11 properties in Orlando, Florida, adding over 3,000 apartments to its portfolio.
Adapting to Changes in the Market
McKinley Properties has demonstrated its ability to adapt to changes in the real estate market. In the aftermath of the 2008 financial crisis, the company focused on stabilizing its existing portfolio and reducing debt levels. This allowed the company to weather the storm and position itself for growth as the market recovered.
In recent years, McKinley Properties has also recognized the growing demand for sustainable and environmentally friendly properties. The company has implemented sustainability measures across its portfolio, including energy-efficient lighting, low-flow toilets, and recycling programs.
Partnerships
McKinley Properties has also formed partnerships with other real estate companies to expand its reach and capabilities. In 2017, the company partnered with Blue Vista Capital Management to acquire a portfolio of student housing properties in the Southeast United States. This partnership allowed McKinley Properties to expand its presence in the student housing market and leverage Blue Vista's expertise in the sector.
Conclusion
McKinley Properties has demonstrated its ability to grow its portfolio through strategic acquisitions and repositioning of underperforming properties. The company has also shown its ability to adapt to changes in the real estate market and form partnerships to expand its capabilities. With a strong focus on sustainability and a team of experts in property management, construction, and finance, McKinley Properties is well positioned to continue its growth and success in the real estate industry.