Interview with: Joanna Zabriskie, President, BH Management Services, LLC

1. Interview with: Joanna Zabriskie,
Pres id ent, BH Manag ement
Services, LLC
“Resident demand has never been
stronger for apartment homes in the US
due in large part to demographics. The
apartment industry is a stable place to
allocate real estate capital,” according
to Joanna Zabriskie, President, BH
Management Services, LLC.
“The apartment sector has proven to be
the most reliable generator of stable
cash flow and capital preservation as
compared to retail, office or indus-
trial. During the economic downturn in
2008 - 2009, the national average
apartment occupancy rate dipped to 91
percent - a sustainable level with
appropriate leverage. The apartment
industry was also the first to recover
and grow occupancy in 2010 – even
prior to job growth recovery. Compared
to that, in 2009 office vacancies rose to
18 percent,” she highlights.
BH Management Services, LLC is a
management firm at the marcus evans
European Pensions & Investments
Summit 2015 in Montreux, Switzer-
land, 8 - 10 June.
What demographic changes make
apartments an attractive sector to
invest in?
While immigration is a continual source
of new renters, 77 million millennials
are moving out of their parent’s homes,
many saddled with college debt, and
putting off marriage and home
ownership. They want mobility to
relocate for new jobs.
At the same time, 75 million baby
boomers are moving into retirement and
selling their larger homes to relocate to
more flexible apartment communities -
near public transportation for active,
city lifestyles. This is pushing apartment
rentals and occupancy up to the mid-
90s percentile, as well as increasing
effective rents. These trends will not
change over the next ten years.
How does the apartment sector
compare against other real estate
sectors?
Apartments is a “basic needs” industry,
everyone must live somewhere but they
do not need to shop (retail), go on
vacation (hotels) or expand their
workspace (office or industrial).
Apartments do not have large blocks of
tenants vacating simultaneously, and
can reset rents on an annual basis. This
allows us to react appropriately to
market and inflation cycles – adjusting
with each lease.
What locations do you focus on?
Why?
Our focus is on locations in urban and
strong suburban areas that do not have
new supply. Capital preservation is very
important for our investment partners,
so we look for locations with strong
employment drivers and good public
transportation.
We renovate the communities, add state
of the art business or community
centers, outdoor kitchens, cyber cafes
or fitness centers, to provide value to
residents. This helps us increase rents,
cash flow and exit value.
Much of the industry today is focused on
the coastal cities, such as San Francisco
or DC. While we do invest in those
cities, we also see value in the
Midwestern major metropolitan
markets, Chicago or Minneapolis for
example. We do not just acquire
properties where everybody else does,
but look for strong markets with a good
employment story, so we can renovate
and operate better than anyone else in
the marketplace.
Any final words of advice?
Choose a well-seasoned, experienced
investment partner. Make sure that
their investment strategy and
methodology are in alignment with the
pension fund’s investment goals. BH has
been in business through many different
cycles and has seen the good parts of
the multi-family industry as well as the
bad parts, and operated well through
them.
Demand has
never been
stronger for
apartment
homes in the
US due in
large part to
demographics
What Makes Apartments Attractive
Investments for Pension Funds

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About the European Pensions & Investments Summit 2015
The 15th annual European Pensions & Investments Summit is the ultimate meeting
point, bringing elite buyers and sellers together. The Summit offers regional pension
investors and international fund managers and consultants an intimate environment
for focused discussion of the key new drivers shaping institutional asset allocations.
Taking place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 8 - 10
June 2015, the Summit includes presentations on capturing attractively valued
investments, increasing fund resilience, tail risk management and making
responsible investing a reality.
www.epi-summit.com
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About BH Management Services, LLC
Founded in 1993, BH Management Services, LLC has grown to become one of the largest multi-family management firms in the
nation, overseeing more than 60,000 apartments. The company and its 1,500 plus employees manage more than USD 3.6 billion of
properties in 21 states, ranking it 12th on the National Multi-family Housing Council's Top 50 Management Companies in 2015.
Through in-depth market and real estate knowledge, an industry-leading design and development program, and a top-level
property management team, BH acquires, repositions and operates properties to maximise value for its residents, owners and
employees. BH manages Class A and B apartment communities with a focus on being an elite company in its services, technology
and team members. The company's corporate headquarters are located in Des Moines, Iowa, with regional management offices in
Dallas and Houston, Texas, Atlanta, Georgia and Chicago, Illinois.
www.bhmanagement.com
About marcus evans Summits
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strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to
individually tailor their schedules of keynote presentations, case studies, roundtables and one-to-one business meetings.
For more information, please visit: www.marcusevans.com
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To view the web version of this interview, please click here: www.epi-summit.com/JoannaZabriskie