For decades, BSR was a private owner and operator of multifamily communities spanning the Sunbelt. With roots all the way back to 1956 and high ethical standards from the beginning, their success and reputation grew to the renown status they enjoy today. However, as the multifamily industry started to modernize toward the end of the 2010s, a stark reality set in. BSR’s portfolio of 1980s Class C properties was in need of a change.
The Plan
They decided to evolve the company in two steps.
First, BSR executed a capital rotation, selling existing assets that were accretive but no longer aligned with the company’s long-term growth strategy. They sold most of their Class-C properties and reinvested in Class-A’s across the big metros of Texas: Dallas, Fort Worth, Austin, and Houston. 97% of their NOI switched from C to A-Class. The whole operation was a rousing success.
The second step was to distinguish themselves from competitors in their new market. According to Tanner Grayham, BSR’s Asset Manager of Investments, they always knew what their value-add strategy was going to be:
“We knew the demands and desires of the Class-C resident base were totally different compared to Class-A, and a lot of those differences have to do with technology. It was easy to upgrade Class-C properties with plank flooring and granite countertops. But when you buy Class-A properties, technology is at the forefront of everything. We knew our big competitors in Texas were doing smart apartment technology, so we knew we needed to keep up with that wave.”
He was clear that the decision to address their issue by leveraging smart tech went much deeper than simply mirroring competitors. Smart locks and smart thermostats, in particular, had been on their radar for some time. This was simply the implementation moment they were waiting for.
“With smart locks, for instance, we knew we’d have better access control which would be more attractive to prospects because it’s safer and more convenient. And we knew that all the data smart locks provide would make us better at predictive maintenance, which would increase staff efficiency.”
Two Birds, One Stone
After a short stint with Zego, BSR transferred service to Level when the former recommended doing so after ceasing multifamily operations unexpectedly. BSR’s decision was made after evaluating providers a second time, now under more stringent circumstances with high-quality service and support as a major points of emphasis.
“The transition to Level was the best thing that could’ve happened. This was exactly the kind of upgrade we needed for our A-Class properties. They hit two birds with one stone, allowing us to upgrade our units and increase rents. And customer service is what really sets them apart. Everyone I’ve ever dealt with over there has been nothing but very hospitable.”
Exceeding Expectations
Since implementing Level’s smart technology platform across their portfolio, BSR has yielded returns that far exceeded their expectations and have remained extremely competitive in their market. Today, BSR’s partnership with Level exceeds 2,700 units across eight properties and are in talks to roll out another 3,000.
“Level just hit that sweet spot and turned out to be exactly what we needed after our organization went through that huge change. We’re so glad we brought it in. It's really easy to use. Everybody loves it. You see now that everyone’s doing it because the return you get is easy to see. It makes sense.”
Learn more about Level here and see how our next-generation platform can help you reach the goals you have for your multifamily properties.