March 1, 2011 (Original Article)

ALLEN HARRISON COMPANY

Paul Forbes, Caitlin Weidig, and Will Harper

Is there life for apartment assets after receiverhip? Paul Forbes and Will Harper (above, bookending Caitlin Weidig) of Allen Harrison Company think so. The gentlemen (and the five pros who followed them) were Hanover execs who wanted to capitalize on the opportunities they saw in value-add apartments. They snagged their first properties in Q4 ‘10 and have two assets under contract now. The buys: 121-unit Beacon Hill, 152-unit Deerbrook, and 232-unit The Harbor. All were around 80% occupied at time of sale, and all have jumped 10% to 15% since. Will says they’ve been able to put $3,000 to $6,000 per unit into the properties, install local management (they’re using Mosaic), and outperform the market. Allen Harrison has an in-house construction team to do rehabs and launch development when the market picks up.

Beacon Hill - Before

Beacon Hill - After

All three properties came out of receivership after long stints with the special servicer. With more attention under new ownership, resident retention increased, over 70% in Beacon Hill and Deerbrook and 60% for The Harbor. Will tells us they’re sticking to Texas but are especially interested in Class-B properties and secondary markets like Beaumont that aren’t seeing as much competition from big institutions. The gentlemen tell us their goal is to break ground on two development projects this year and close eight acquisitions. Talk about timing—Paul tells us his and Will’s wives were both pregnant when they launched their firm. Paul now has twins, a boy and a girl, and Will has a girl.

Houston, Texas – Houston real estate executives, Paul Forbes and Will Harper see opportunity in the current real estate market. The forward-thinking partners have formed Allen Harrison Company, a real estate firm aimed at acquiring, managing and developing Class A, B, and C apartment communities throughout Texas.

Forbes and Harper are both former executives with The Hanover Company, a nationally prominent multifamily development firm. Forbes’ 12-year career at Hanover culminated in his role as Executive Vice President of Acquisitions and Development (Western Region), while Harper spent five years with the firm, both as a Development Partner and as Head of West Coast Asset Management.

“As valuable members of the Hanover organization, Will and Paul will truly be missed; however, the knowledge and skills they learned here should serve them well in their new venture,” Murry Bowden, Chairman & CEO of The Hanover Company said. “I wish them the best and look forward to following their success.”

“The volatile current market brought on by the credit crunch has created opportunities,” Mr. Harper said, “and we feel we can utilize our combined $3 billion in transactional experience to seize these opportunities. We will offer asset and property management solutions to those in need of expertise in the multifamily arena,” he continued, “while also pursuing acquisition opportunities and eventually development opportunities once the capital markets stabilize and job growth returns. We want to be one of the most respected multifamily investment and service companies in the State of Texas.”

Both Forbes and Harper believe that the long-term economic prospects within Texas, primarily due to strong job growth and favorable demographics, offer an excellent climate for building a successful real estate company.

“Our goals are aggressive, but we feel that the world-class experience we gained working for Hanover, the premier multifamily development firm in the nation, places us in a great position to succeed,” Forbes explained. He added that Allen Harrison Company plans to expand the firm’s holdings to 2000 units owned and 2000 units under fee management by the end of 2010. According to Forbes, the company also offers turn-key acquisition due diligence, asset turnaround plans, and loan workout services for clients. The company is currently negotiating the purchase of two assets within the greater Houston area, with closing projected in early second quarter of 2010.

Scott Galloway, Executive Managing Director of Holliday Fenoglio Fowler, L.P., a prominent Texas-based brokerage firm, agrees with the outlook for Allen Harrison Company’s success. “Paul and Will have a tremendous opportunity to leverage the experience and relationships developed at Hanover and make an opportunistic move in forming their own venture. I think their timing is outstanding.”

During their combined 17-year tenure at The Hanover Company, Forbes and Harper helped lead the expansion of the firm into national prominence. Forbes joined Hanover in 1998 and advanced to assume his executive role in 2005. Following four years with Goldman Sachs and earning an MBA from The Tuck School of Business at Dartmouth College, Harper joined Hanover in 2004 and worked on Forbes’ team as a Development Partner from 2005 through late 2008.