Interview with Mark Allen, Executive Managing Director @ GREA - Exploring the Multifamily Real Estate Journey

In this edition of our newsletter, we have the privilege of delving into the multifaceted career of a seasoned professional in the multifamily real estate sector. Our interviewee brings a diverse background that spans military service, technology sales, and real estate investment.

Mark entered the world of investment real estate in 2009 and has been involved in the acquisition, renovation, management, and disposition of over $1B in real estate. Today, Mark focuses on Multifamily owner representation, leveraging his military operation, sales, marketing, and real estate investment experience to provide superior service for his clients.

In his first year as a broker, Mark helped to broker $176M in transaction volume (3000+ units) and was recognized as the SVN “Rookie of the Year”. In 2018, Mark was awarded SVN “Broker of the Year” and promoted to Executive Director. In the same year, he was named the DFW Commercial Real Estate “Rookie of the Year” by DCEO Magazine. Mark has been recognized by DCEO Magazine as a Top Commercial Real Estate Broker in DFW in each year since 2018. Also, Connect Media recognized him as a 2019 Next Generation award winner due to his early success in the real estate industry.

Mark’s current list-to-close ratio over the last 24 months averaged an industry leading 101.3%. This is a result of Mark and his team’s valuation and financing experience, and their dynamic marketing approach. Mark prides himself on his social media presence, which ultimately leads to more demand and higher prices for his client’s properties.

Mark attended the United States Military Academy at West Point and was a member of the Army football team. Post-graduation, he served in the US Army as a Field Artillery Officer where he led Soldiers in Operation Enduring Freedom – Afghanistan. Prior to his career in Commercial Real Estate Investment Sales, Mark was a business development lead and consultant at MSC Software, working to understand his client’s challenges and business, while integrating MSC software and services to add value directly to his client’s bottom line. Mark is married to April, who owns a salon in Southlake, TX. They currently have two children and are active members at RockPointe Church in Flower Mound.

Q1: Can you provide a brief overview of your background and experience in the multifamily real estate sector?

Certainly. My journey began with my education at West Point, where I gained a strong foundation in discipline and leadership. After graduating, I served in the army, which instilled in me a sense of responsibility and resilience. Concurrently, I ventured into real estate investment, starting with single-family homes. This initial foray led me to recognize the potential of the multifamily sector. While exploring real estate, I was also engaged in selling tech software. However, I knew that this wasn't my long-term path.

My passion for real estate led me to join SVN, a leading commercial brand, which expanded my industry network and exposed me to various transactions. Eventually, I was picked up by Greystone and became part of their investment sales platform. This experience paved the way for the establishment of my own venture, GREA. Currently, GREA boasts 13 offices with plans for further expansion, and our headquarters is based in New York.

Q2: What inspired you to pursue a career in multifamily real estate, and how did your journey begin?

My father's influence played a significant role. He was a home builder with rental properties, and at West Point, I had the opportunity to secure a loan. My father encouraged me to invest the capital in real estate, and that's when I got my first taste of property ownership. The benefits of real estate investing resonated with me, and I soon scaled up my operations. This led me to brokerage in the multifamily sector, attracted by the flexibility and work-life balance it offered. Being my own boss and fostering strong relationships became key drivers for me.

Q3: What are some of the current trends and developments you've observed in the multifamily real estate market?

In the multifamily market, my focus is keenly directed in the North Texas region. Demand in the Sunbelt surged in 2021, resulting in high prices and low cap rates. Many buyers have leveraged bridge loans to the tune of 75% to 80% of value, leading to a cascade of opportunities.

However, with market shifts and loans reaching maturity, property owners face the challenge of refinancing or selling. Tough decisions are looming for these owners as they navigate changing financial landscapes.

Q4: What advice do you have for investors looking to enter or expand their presence in the DFW market?

Texas has garnered investor interest similar to what California experienced in the 80s and 90s, thanks to its lack of state income tax and population influx. Investor capital is pouring in, resulting in high demand. As brokers, our reputation hinges on matching the right buyer with the seller. Relationships are crucial; building rapport with other owners and understanding buyer criteria are essential.

In the multifamily sector, dealing with experienced professionals requires a distinct approach from the single-family market. Understanding pain points and creating mutually beneficial options is paramount.

Q5: Multifamily real estate often comes with its challenges. Could you discuss specific obstacles as of late?

Recently, I had a conversation with a title company representative who revealed that 14 deals had fallen out of contracts in just two weeks—an uncommon scenario. Rising interest rates and limited equity access have created a turbulent environment, making it difficult to close deals.?

Q6: How do you approach risk management and adapt to changing market conditions?

To mitigate risks, we provide upfront due diligence on the physical aspects of a property before a buyer enters a contract. This helps avoid significant roadblocks that might otherwise arise. Pricing a property appropriately and understanding pain points for both parties are crucial. Long-term fixed-rate loans offer more protection against market fluctuations, and a strategic, long-term mindset prevails.

Q7: Have you observed a growing demand for certain features among multifamily buyers?

Absolutely, the demands and preferences of multifamily buyers have been evolving, and understanding these shifts is pivotal for success in the industry. One notable trend is the emphasis on property sustainability and environmental consciousness. Buyers are increasingly valuing energy-efficient appliances, sustainable building materials, and green certifications such as LEED or Energy Star. These features not only appeal to environmentally conscious tenants but also offer long-term cost savings, making the property more attractive from both ecological and financial perspectives.

Moreover, as lifestyles change, amenities have become a defining factor in property desirability. In areas with a high pet-owning population, the inclusion of pet-friendly amenities such as dedicated pet parks and pet washing stations has become an essential consideration. Additionally, the rise in electric car ownership has given rise to the need for electric vehicle charging stations, particularly in higher-income areas where such vehicles are prevalent. These amenities align with the changing needs of tenants and reflect a commitment to providing a convenient and tailored living experience.

Interestingly, the demand for smart home technology has been steadily on the rise, particularly among younger generations like millennials and Gen Z. With the advent of the Internet of Things (IoT), tenants are seeking properties equipped with smart thermostats, keyless entry systems, and home automation solutions. This technology not only enhances convenience but also improves energy efficiency and security. The integration of smart home features creates a sense of modernity and aligns with the tech-savvy lifestyles of these generations, making a property more appealing and competitive in the market.

Furthermore, the current workforce housing sector is witnessing a surge in demand for smart tech integration. Buyers in this category recognize the value of incorporating advanced technology to streamline property management and enhance tenant experiences. Implementing smart home technology in these communities can lead to increased tenant satisfaction, higher retention rates, and potentially even premium rental rates.

Q8: What key lessons have you learned that contributed to your personal growth and success?

Throughout my multifamily real estate career, I've garnered a wealth of insights that have significantly influenced my personal growth and contributed to my success. One of the most transformative lessons I've learned is the power of adopting a holistic and client-centric approach. Initially, I was heavily focused on the competitive nature of the industry, often driven by self-centered goals. However, a pivotal shift occurred when I embraced a servant leadership philosophy.

This change in perspective made me realize that the heart of this business lies in serving my clients' best interests. By genuinely understanding their needs, challenges, and aspirations, I've been able to foster trust and create lasting relationships. This approach not only enhances the overall client experience but also enriches my own sense of fulfillment in the work I do.

Furthermore, I've come to appreciate the multifaceted nature of the industry. The real estate market is not just about transactions; it's about people, communities, and the long-term impact of our decisions. Recognizing this broader context has allowed me to make more informed and empathetic choices, taking into account the needs of all stakeholders involved.

In addition, I've learned the importance of adaptability and resilience in the face of challenges. The multifamily real estate landscape is dynamic, and market conditions can change rapidly. The ability to pivot, innovate, and find solutions in times of uncertainty has been instrumental in overcoming obstacles and seizing opportunities.

Overall, my multifamily journey has taught me that success is not solely measured by financial gains but also by the positive impact I can create for clients and the industry as a whole. This philosophy has not only fueled my personal growth but has also elevated the quality of service I provide, making each step of this journey meaningful and fulfilling.

Q9: For investors aspiring to thrive in this industry, what advice would you offer based on your own experiences?

For individuals looking to excel in the multifamily real estate industry, I'd like to share some insights I've gained from my own journey. First and foremost, recognize that the location of your investment plays a pivotal role in its success. Research and choose growth areas strategically—those with proximity to job hubs, good schools, and robust amenities tend to attract strong tenant demand and deliver more consistent returns over the long term.

Additionally, when it comes to financing, a cautious approach is prudent. While bridge debt may offer higher leverage, it often carries elevated risk due to its shorter terms and stringent requirements for extensions. Long-term fixed-rate loans provide a more stable foundation, safeguarding your investment against market fluctuations and ensuring predictable cash flows.

Moreover, cultivating a long-term mindset is crucial. While quick flipping might seem attractive, true success often comes from a patient and strategic approach. Real estate is a long-term game, and decisions should align with the overarching goal of building a sustainable and profitable portfolio.

Building relationships is at the core of this industry. Connect with fellow investors, brokers, and professionals in the field. Networking not only opens doors to valuable opportunities but also provides a wealth of knowledge and insights that can help you navigate the complex landscape more effectively.

Lastly, embrace technological advancements. The real estate industry has seen remarkable transformations through technology, streamlining processes, and accelerating transactions. Stay updated on platforms like CoStar and leverage social media to expand your reach and stay informed about market trends.

In essence, thriving in multifamily real estate requires a combination of strategic planning, risk management, relationship building, and adaptation to technological changes. By anchoring your approach in these principles and learning from seasoned professionals, you'll be better equipped to navigate the challenges and seize the opportunities that this dynamic industry offers.

Q10: How has technology impacted the brokerage community?

Technology, like CoStar and social media, has revolutionized the industry. It accelerates information dissemination and syndication, educating potential investors and streamlining due diligence.

Q11: What are your company's future goals?

Looking ahead, our company envisions a multifaceted path to growth that builds upon our unique blend of boutique dynamism and cutting-edge technology. Our commitment to remaining tech-forward positions us at the forefront of innovation in the industry. We're determined to harness the power of emerging technologies, such as machine learning and AI, to further enhance our services and streamline processes. These tools not only amplify our efficiency but also allow us to provide even more insightful and data-driven solutions to our clients.

While expanding our footprint with additional offices is a key goal, we are equally focused on maintaining the intimate and collaborative culture that comes from our boutique background. This dynamic atmosphere fosters creativity, agility, and a unified approach to serving our clients' diverse needs.

Beyond numbers and locations, we're driven by the aspiration to offer a comprehensive suite of services that cater to every facet of multifamily real estate. From investment advisory to capital services and beyond, our aim is to create a one-stop destination for clients seeking holistic solutions in this intricate field.

In essence, our future vision marries the advantages of a boutique environment—personalized attention, quick decision-making—with the technological prowess that large national firms often possess. By embracing this fusion, we aspire to redefine industry standards, set new benchmarks for excellence, and ultimately create a lasting impact on the multifamily real estate landscape.