The Baker’s Dozen

A Permanent Advantage Primer

For us, building a permanent advantage boils down to a handful of core principles: thirteen to be precise. Taken together, these principles serve as the bedrock of how we approach building design.

  1. You cannot design tomorrow’s success without first questioning todays. (Understand not only “what” has and has not worked, but “why”)

  2. Apartment investment returns typically go down as the number of unit configurations goes up. (Mo’ unit types, Mo’ problems)

  3. Apartment buildings are collections of apartment units.  The most successful apartment buildings are collections of the most successful apartment units. (Build only the most profitable units.)

  4. Maximize revenue across all economic cycles by giving buildings the flexibility to always capture maximum demand. (Flexibility is strength.)

  5. Roommates dollar cost average down what they each pay, not what the owner receives. (Multiple resident occupancy drives gross potential revenue.)

  6. Simplify construction to increase speed and reduce cost.  Deploy the savings into better features. (Less time + better features = successful basis.)

  7. Leverage existing infrastructure and locate within communities that are net job importers. (Your location is only as valuable as your neighbor’s allow.)

  8. Housing is aspirational at every price point. Give the customer more than they can otherwise find for their money. (Design really matters! Be the best in your competitive set.)

  9. Avoid approval conditions that place limits on your future revenue.  (Every dollar of reduced income equals $20 of reduced value.)

  10. Transform operating problems into amenities that drive market share and build community. (Today’s problem is tomorrow’s amenity.)

  11. The true value of our “buildings” is the residents we attract and retain.  We need to earn the best people and build their loyalty every day. (Investors don’t buy buildings.  They buy the value of income streams.)

  12. Real property assets are not commodities and should never be mistaken as such. (Market outperformance is the logical result of great ideas and outstanding execution.)

  13. Only by combining the best people, processes, and products will we achieve the highest returns with the lowest risk. (Successful development is both a strategic, and tactical, effort.)