THE COLONY, TX - To meet the demand for renovated, fresh rental apartments, Home Properties, Inc., a multifamily real estate investment trust (REIT), has partnered with Armstrong Cabinet Products to provide updated, durable and stylish kitchens to its residents.
While home ownership historically was the American dream, recently the demand for quality rentals has increased substantially. The U.S. population is growing by approximately three million people per year, about 75 percent of whom rent rather than buy. What’s more, 18- to 35-year-olds – 65 million strong – generally rent in multifamily buildings.
Home Properties, with operations primarily along the East Coast of the United States, owns, operates, develops, acquires and rehabilitates apartment communities. Its communities generate excellent financial results through an ongoing dedication to physical improvements and a commitment to customer service.
In the apartment industry, dealing with aging properties provides the opportunity to maximize renovation investments that will add value for the occupant and provide returns to the facility owner. “We have a proven track record of creating and preserving value in multifamily rental housing,” said Keith Knight, vice president, Capital Improvements and National Accounts. “Our apartment communities are located in high-barrier, high-growth markets. These communities provide quality housing at affordable prices, which appeal to a broad range of middle-income residents.”
Home Properties focuses on under-managed and under-maintained properties. The company repositions the property in stable markets, such as suburbs of major metropolitan areas that have a favorable supply/demand relationship, high single-family home prices, stable job growth, and large prime renter populations.
“We grow primarily through acquisition. Our properties are predominantly garden style and typically 35 to 40 years old,” said Knight. “We reposition the properties from the curb to the kitchen, and are constantly working to better serve our residents, including upgrading the property’s landscaping, siding, community and fitness centers. We take a holistic approach to repositioning which starts with the curb appeal and continues throughout the interiors of our units.”
FUSING VALUE, DESIGN & CONSISTENCY
Building customer loyalty is vital to any business today. Home Properties truly cares about its residents, striving each day to create apartment communities people love to live in. Synergy between the REIT and supplier is important, especially when renovating an average of 4-5,000 kitchens per year. According to Knight, Armstrong Cabinets gives the company a comprehensive national program—not just pricing, but service and selection.
Home Properties standardizes selections with three different styles, with the most popular style being Rutledge™, a classic Shaker design in maple. Traditional or contemporary décor schemes can be achieved by its simple and practical appearance, taking a classic, casual look and giving it unlimited design flexibility.
“Our customers can feel confident that they are receiving high-quality, high value cabinetry that works in multi-family properties. There is uniformity in look, in construction and in the value we are adding to every one of the units,” said Michael A. Glaser, CKD, Director, National Accounts, AC Products. “That is important to us, and helps to assure our customer’s satisfaction.”
Home Properties had been using multiple distributors and different brands, but found that the consistency, service and on-time delivery they needed was best embodied in a single supplier.
Home Properties’ Interior Designer Theresa Parsons specifies cabinetry that enhances the space; for example, she might select a dark wood finish to use with stainless appliances, while lighter colors like Toffee or Natural maple may be selected for smaller, less-lighted units.
“The Cabinets design team provides final recommendations and adds value by keeping up on what’s current in materials and what makes the best choice for the property. They also are actively on site, double checking measurements and recommending tweaks when necessary,” said Knight.
“Their service is number one, as is the quality and pricing. They provide us with turnkey services, and helps us to offer our tenants the highest quality building materials,” said Knight.
Armstrong Cabinets was recently purchased by American Industrial Partners (AIP) and the new company will operate under the name of ACProducts, Inc. ACProducts has a limited license to use the Armstrong brand name and operate under the Armstrong Cabinet Products trade name during a license term of two years.
Home Properties, Inc. (NYSE: HME) is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast and Mid-Atlantic markets. It operates over 44,000 apartment units. The company is headquartered in Rochester, NY.
ACProducts, Inc. is a wholly-owned subsidiary of American Industrial Partners, a leading United States private equity firm. ACProducts, Inc. was incorporated in August 2012 and is headquartered in The Colony, Texas. ACProducts, Inc. purchased and now operates the cabinet manufacturing division of Armstrong World Industries. ACProducts, Inc. manufactures and distributes kitchen and bath cabinets throughout the United States. It currently offers six wood species for its stock and semi-custom cabinets, including cherry, maple, oak, birch, plantation hardwood, and laminate/thermofoil. ACProducts, Inc. has 750 employees and 27 Service Centers, Distribution Centers and Warehouses in the United States.
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