Allegiant Residential is a multifamily real estate investment and management firm headquartered in Birmingham, Alabama. It invests in apartment properties located in high-growth Sunbelt and Mid-Atlantic cities, working with institutional and private investors. The company has over 50 years of combined experience in acquiring, developing, and managing multifamily properties totaling over $5 billion in transactions. Its focus is on class A and B garden, mid-rise and high-rise apartments in markets with strong population and job growth.
1. Allegiant Residential, headquartered in Birmingham, Alabama, is a
fully integrated multifamily operating platform that invests and
manages in high-growth Sunbelt cities with institutional and high-net
worth investors, private investment funds, third party owners, and
joint venture partners.
In Allegiant Residential, you have a senior management team with over 50 years of apartment industry
experience to include the ownership, management, acquisition, disposition and development of garden,
mid-rise and high-rise apartment homes across the high-growth cities of the Sunbelt and Mid-Atlantic
states. We have been party to real estate transactions totaling well over $5 billion and managing a combined
portfolio of up to 75,000 apartment homes.
The etymology of the name Allegiant comes from 14th century Middle English and the root word allegiance
meaning “devotion and loyalty to a group and a cause.” Our commitment, devotion and loyalty will always
center around each other, our partners and our shared Vision of Live Well, Laugh Often, Serve Others.
At Allegiant Residential, we invite you to experience our devotion and loyalty to your success today and in
the future. We look forward to working closer with your leadership team to share in further detail how the
Allegiant Vision and Mission will add value to your organization.
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2. Allegiant’s Vision
LIVE WELL, LAUGH OFTEN, SERVE OTHERS.
Allegiant’s Mission
By creating a higher standard of excellence for the benefit of all
stakeholders, we will become the premier provider of multi-family
real estate investment and management services.
Allegiant’s Values
Honesty Integrity Family
Faith Community
Teamwork Diversity Accountability
Allegiant’s Goals
• To provide superior service to all stakeholders by integrating open and honest
communication into our daily culture.
• To demonstrate a commitment to Allegiant associates by valuing professional
development, demonstrating personal respect and encouraging individual accountability.
• To seek out every avenue for owners to create value and accomplish our shared vision
through a steadfast commitment to growth, teamwork, and improved operations.
• To foster strategic partnerships and create innovative investment strategies.
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3. About Our Hedgehog...Evolution
As Jim Collins focuses on in Good To Great, for a company to evolve from good to great, it must stick to
the one thing it can do better than any of its competition in the country. Allegiant’s hedgehog is owning and
operating institutional quality, multifamily assets in high-growth Sunbelt markets... that is the only thing we
do. What is most important in prosperous times and in lean times is sticking to your basic “hedgehog,” but
continously evolving and adjusting to the Physical Market Cycle Characteristics as outlined by Mueller below.
About Our Core Hedgehog Strategies
• People–Recruit, train, and retain the best and brightest in the industry.
• Revenue Maximization Focus–achieving the expense budgets are second nature, 95% of the effort
is focused on maximizing revenues at all levels.
• Key Performance Indicators–meaningful and value-added for all stakeholders
• Accounting/Human Resources/Information Technologies–must be world-class to support the
needs of the residents, internal and external customers.
• Market Knowledge–gained by “feet on the street” knowledge supplemented with market leading data.
• Communication–integrating open and honest communication into daily routines with internal and
external stakeholders breaks down barriers.
• Fail Forward–We all learn from the failures we have made in the past and will make in the future.
We use these opportunities to learn and move forward to future success.
• Celebrate–Never miss the opportunity to applaud the success of our associates for a job well done
by an individual or the efforts of the team.
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4. About Our Investment Strategy
Though there may be opportunities to create value for our investors in multiple facets of real estate, however,
Allegiant Residential will stick to the “Hedgehog” of well-located apartment homes that meet most of the
following criteria:
• Properties sized between 200-400 apartments that are considered class A to B; furthermore
a class B asset, in a well located sub-market with a value-add component.
• Properties in primary or secondary Sunbelt MSA’s with employment of at least 500,000 jobs.
• Properties preferably in Sunbelt Capital cities with large university infrastructures.
• Properties that are within 10 miles of large employment concentrations or along current or
future high-speed rail lines.
• Properties that are within 5 miles of significant support retail.
The Allegiant Competitive Advantage
This is not a Distressed Fund opportunity driven by aggressive internal IRR hurdles to
quickly flip assets to achieve promote thresholds. Our business plan is to acquire quality
assets in institutional markets for a 5-8 year hold period.
Fresh capital with no current exposure to the challenges facing the real estate market.
Ability to move very quickly due to our lack of bureaucracy to make a decision to move
forward on an acquisition.
Ability to close all-cash, if need be, to get an acquisition completed in a timely manner
to meet the needs of the seller.
In-depth knowledge of target markets through Allegiant Residential’s boots on the
ground experience.
Ability to identify creative financing solutions utilizing the diverse financial skill
sets of the principals.
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5. About Our Target Markets
Allegiant based its selection of our primary investment and management target markets on the demographic
fundamentals that will drive multifamily values for years to come. A heavy concentration of the Echo Boom
Population will be focused in major employments MSA’s in the Sunbelt and Mid–Atlantic.
Creating long-term value for owners, and thus Allegiant Residential, means identifying those markets that
have staying power from an annual employment growth perspective. Long-term rent growth equals long-term
value creation for all stakeholders.
Average Annual Forecast
Employment Growth Rate (2009-2013)
3.50%
Austin
3.00%
San Antonio
Dallas - Fort Worth Atlanta
Houston
Inland Empire
2.50%
Raleigh Seattle Las Vegas
Charlotte
Orlando
2.00% Washington - NoVA - MD Indianapolis Palm Beach County
Fort Lauderdale
Denver Salt Lake City
Columbus Portland
Oklahoma City Pittsburgh Nashville Chicago
Minneapolis
1.50% Sacramento Orange County Phoenix
Baltimore Tampa
Norfolk St. Louis Memphis San Diego
North - Central New Jersey San Francisco San Jose
Richmond East Bay
Honolulu Long Island Los Angeles
1.00% New Orleans Miami Boston
Jacksonville Cincinnati
New York
Philadelphia Hartford Milwaukee
Cleveland
0.50% Kansas City Detroit
Stamford
0.00%
0.300 0.500 0.700 0.900 1.100 1.300 1.500 1.700 1.900 2.100
Historical Beta (1976-2009Q1)
Source: BLS
PPR 13
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6. We will focus our efforts on Class A to B multifamily garden, mid-rise and high-rise assets in the following
markets highlighted in green that show favorable population and demographic trends.
East Midwest West South
Percentage Change in
Population 2009-2013
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
(2%)
Dallas - Fort Worth
Hartford
Stamford
Sacramento
Pittsburgh
Charlotte
Orlando
Tampa
Norfolk
Northern New Jersey
Detroit
Austin
Seattle
Baltimore
Atlanta
Portland
Houston
Boston
New Orleans
Inland Empire
Palm Beach County
San Diego
San Antonio
San Francisco
Las Vegas
Orange County
Los Angeles
San Jose
Richmond
Long Island
Oklahoma City
Columbus
New York
Chicago
Memphis
Denver
Fort Lauderdale
Cincinnati
Raleigh
Phoenix
Indianapolis
Salt Lake City
Washington - NoVA - MD
East Bay
Jacksonville
Kansas City
Miami
St. Louis
Honolulu
Philadelphia
Nashville
Minneapolis
Milwaukee
Cleveland
Sources: Moody’s Economy.com; PPR *As of 09Q1
PPR 40
With that change in population, will come an increase in renter households in those respective markets.
5 year change in Renter East MidWest West South
Households Austin
11%
San Antonio
Las Vegas
Atlanta
Dallas - Fort Worth
Charlotte
9% Raleigh
Palm Beach County
Phoenix Orlando
7% Fort Lauderdale
Seattle
Indianapolis
Portland Sacramento
Salt Lake City Denver Houston
5% Minneapolis
San Francisco Nashville
Columbus Washington - NoVA - MD Inland Empire
Oklahoma City San Jose Orange County
Tampa St. Louis
Kansas City Boston San Diego
Jacksonville
3% Philadelphia Norfolk East Bay
Long Island Richmond Baltimore
Memphis Los Angeles
Honolulu Hartford
Milwaukee
Pittsburgh Miami
1% New Orleans Cincinnati
North - Central New Jersey
Stamford
Chicago New York
Cleveland
Detroit
(2%)
(2%) 0% 2% 4% 6% 8% 10% 12% 14% 16%
5 year Percent change in population
(20-34 year olds)
Sources: PPR; Moody's Economy.com
PPR 39
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7. The Allegiant Operations Solution
ASSOCIATES
• Pedigree of respected industry leaders that harbor a climate of trust.
• By utilizing Success by Selection, we are able to recruit and retain the best and brightest in the
multifamily industry who will continue to redefine these roles.
• Comprehensive training programs for each associate–specifically focused on leadership
enhancement while protecting divergent views.
• Associates that are empowered to enhance proven strategies and engage new creative
solutions to today’s market conditions.
ENHANCEMENTS:
• Drive property value through precise execution of the following:
• Develop and execute 5-year strategic property asset plans
• Revenue maximization implementation–LRO
• Detailed market studies and thorough market knowledge–Axiometrics / Pierce-Eislen
• Measurable customer service results–Satisfacts
• Ad Valorem Tax review and protest, if necessary
• Risk Management mitigation
• Superior capital contract procurement and implementation
• Meaningful Key Performance Indicators
• Institutional Quality Financial Reporting
• Market leading technology to streamline processes and enhanced customer experience
ALLIANCES:
• Property Operating and Accounting Software–MRI
• Revenue Maximization Software–LRO
• Call Center potential to provide enhanced service–Level One
• On-Line purchasing platform to leverage purchasing power–OpsTechnology
• Comprehensive Human Resources Administration–TriNet
• Market leading ancillary contract maximization–all national vendors
TALENTS:
• Fully integrated multifamily operating platform
• Lease-up capabilities and expertise
• Due diligence capacity
• Mid-Rise/High-Rise/Garden-Style expertise
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8. About the Founders
RAY HUTCHINSON – PRINCIPAL AND FOUNDING MEMBER
Mr. Hutchinson has more than 20 years of multifamily experience in management, acquisition, disposition
and development of garden, mid-rise and high-rise apartment homes. By investing in properties located
in high-growth cities of the Southeast and Mid-Atlantic states, Hutchinson has managed real estate
transactions totaling well over $4 billion.
Most recently, Mr. Hutchinson served as Executive Vice-President of Colonial Properties Trust, one of the
country’s premier real estate investment trusts (REIT’s). During his tenure, he more than doubled Colonial’s
nearly 20,000 apartment homes to almost 50,000 apartment homes and an enterprise value of $3.5
billion. Under his leadership, the division, which included more than 1,000 associates and 120 properties,
managed explosive growth and unprecedented success.
Mr. Hutchinson holds a Bachelor of Science Degree from the University of Central Florida. During his
career he has been involved in a number of local and state industry and civic groups, including National
Multi-Housing Council, Big Brothers and Big Sisters and the National Apartment Association.
RANDALL ELL – PRINCIPAL AND FOUNDING MEMBER
Randall Ell has over 27 years of experience in the real estate business and multifamily operations. He was
employed for 13 years with Summit Properties where he served as Executive Vice President of Summit
Properties and President of Summit Management Company. Summit Properties was a publically held REIT
active in the operation, acquisition, management, development and construction of luxury multifamily
garden, mid-rise and high-rise communities. Summit Properties owned and managed over 90 properties
and 24,000 units in the Southeast and Texas encompassing 12 states with associates numbering over
700. Mr. Ell provided strategic direction with responsibilities for all Property Operations, Marketing, Human
Resources, Training, Asset Management, Capital Projects, Ancillary Income, and Tax Appeals. His depth
of multifamily experience encompasses over 20 major Sunbelt markets.
Mr. Ell holds a Bachelor of Science Degree in Economics from UCLA and currently lives in the Charlotte,
NC area. During his career he has served for 10 years on the Advisory Committee for the School of Property
Management at Virginia Tech University. He is a former member of the National Multi-Housing Council and
the National Apartment Association.
Contact Information
Ray Hutchinson (205) 276-8149
rhutchinson@allegiantresidential.com
Randall Ell (704) 506-6333
rell@allegiantresidential.com
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