The San Diego Daily Transcript recently released their list of the Top 100 Inflectional Leaders in San Diego as an opportunity to highlight the leadership skills of San Diego’s best in the business world. Ranked among professionals in technology, construction, infrastructure, and commerce were two of ACI’s own brokers, Keith Courtney and Dave Savage. Each chosen professional had a chance to share some conventional wisdom that have helped them become influential leaders.
Keith Courtney
Courtney says it’s a good time to invest in apartment buildings. The principal at Apartment Consultants Inc. specializes in representing sellers and buyers of investment apartment communities throughout San Diego County.
With strong employment figures, apartment vacancies consistently below 4 percent and property values increasing in all areas of the county, investor demand is robust. But what’s good for investors presents a challenge to brokers. Courtney said the sector suffers from a lack of supply in apartment buildings.
“The hurdle, from a brokerage standpoint, is getting sellers on board who are comfortable with what they have,” Courtney said. Investors are cautious about putting properties on the market, for fear that tight inventories may mean they won’t be able to find bigger or better properties to invest in. “And there is resistance from buyers for fear of buying at the top of the market.”
Courtney has been with ACI since 1999, and also brings experience as an owner and manager of his own apartment, industrial and office buildings. ACI focuses on small to medium-sized buildings of eight to 100 units, and averages more than 140 closed escrows per year.
Courtney and his team have brokered a number of land parcel and property acquisitions for the express purpose of building affordable multifamily unit conversion. One was the 2015 sale of a 44-unit Escondido property. More recently, Courtney participated in the sale of three land parcels totaling 35,183 square feet for development into a mixed-use building to provide housing for disabled seniors and retail spaces. These kinds of property sales help maintain affordability in a sparse San Diego market.
Courtney said the most rewarding part of his job, though, is helping clients generate wealth for themselves and their families.
“To be able to see the progression of someone going in and buying an 8-unit building, then sell it and exchange to 15 units, then 20 units – helping to build wealth for families is one of the most gratifying things we do,” he said.
– Jennifer Chung Klam
Dave Savage
As a young musician, Savage read a book that tipped him off about making money through income property, and as he developed his business, he realized that building relationships was the first step, and money would follow later.
He began investing in apartments in the 1970s and saw the benefits in terms of cash flow, equity buildup and appreciation, compared to other real estate options. And he had the opportunity to observe the late Conrad Prebys, a real estate tycoon and philanthropist who inspired Savage.
“He built long-term friendships and focused on customer satisfaction, and his alignment and direction inspired me to use this in my business approach,” Savage said.
His firm, Apartment Consultants, focuses on individual investors interested in small to medium-sized apartments. It’s the oldest and possibly the largest apartment brokerage in San Diego, with 28 associates many of whom are investors in apartments themselves, so the firm knows both sides of the coin.
Savage said the best part of his job is the personal relationship he builds with clients.
“I like meeting with a client, a new friend and his wife, at their kitchen table, and discussing their investment needs,” he said. “After this, we develop investment options.”
In the last year, the firm has worked on developing a collaborative spirit and technological skills. And Savage has focused on giving back and mentoring young agents. Transactions have spanned the gamut, from small apartments to larger sales.
“Our transaction list is a mirror of the San Diego apartment market,” he said. “Ninety percent of the inventory consists of 15 or fewer apartments.”
He is very optimistic about the future for this market.
“As long as the sun continues to shine, people will move to San Diego, and the apartment business will remain a sound and stable investment, and I will continue to make new friends.”
— Padma Nagappan
Jennifer Chung Klam’s profile on Keith Courtney can be found HERE.
Padma Nagappan’s profile on Dave Savage can be found HERE.
