As testament to NMHC's commitment to helping develop the industry's next generation of apartment leaders, the first day of the meeting ended with the fourth annual "Young Guns Pitch to Senior Leaders" session, where three, under-40 Emerging Leaders presented their best investment deals to a mock investment committee.
This year's competitors included Nickolay Bochilo of Bell Partners, who presented a light renovation in a primary market; Graham Carpenter with Pollack Shores Real Estate Group, with a value-add acquisition in the gateway submarket of Tampa; and Mark Bates with a ground-up development in Los Angeles. Get the real numbers from these deals here.
Bochilo’s deal sought to take advantage of an opportunity to play in a “less crowded space” with a lower risk light rehab in a suburban Washington, DC location with very low levels of new supply.
Carpenter’s pitch was a heavier value-add conversion to a core-plus of a non-obsolete 2000 property with significant upside potential in the Tampa MSA’s second largest employment concentration.
Going up the risk continuum, Bates sought the win with a 28-story high rise in the heart of downtown Los Angeles in a highly walkable, transit-supported neighborhood.
In the end, the judges were seeking a little more risk than Bochilo’s deal and expressed concerns about the DC supply conditions. Yet, they felt like the ground up development was a little too risky given construction cost increases.
The trophy went to Carpenter for a deal with strong return potential and a flexible exit strategy.
Many thanks to the investment panel, including Will Beam of Heitman; Robert Jeans of Prudential Real Estate Investors and Bob Weston with Alliance Residential.