BNC Logo

 


Corporate Profile

History

Company founder, Barry S. Nussbaum, began investing in real estate in 1977 while attending law school in San Diego, California. He initially applied his philosophy of buying real estate at attractive prices, rehabilitating the asset and selling the value-enhanced property to the single-family residential market in Southern California. This initial success led him to formulate a cautious and sensible approach to the acquisition and renovation of real estate assets.


With an established track record, Barry S. Nussbaum began attracting an investor base comprised initially of close friends and later expanded to other investors through partnership participation. This investor base provided the necessary capital with which to apply Mr. Nussbaum’s philosophy to the multi-family residential marketplace and evolve the portfolio.

In the late 1980s Mr. Nussbaum became increasingly concerned with the stability of real estate trends in Southern California. While some real estate investors assumed continued growth in the market, Mr. Nussbaum’s research contradicted the projected trends. The economic viability of future real estate investing in California had become substantially dependent on continued market appreciation. Furthermore, the regional economy was starting to suffer from corporate downsizing and cutbacks in the defense industry. In order to optimize gains from the escalation of real estate prices in Southern California in the late 1980s, BNC sold all of its interests in its portfolio.

With a sizable investor base still intact, BNC began to analyze other real estate markets across the country. BNC quickly targeted the state of Texas, which had recently experienced a severe economic downturn. As lenders took control of a vast number of properties through foreclosure, BNC became intensely interested in the ability to buy well-located, under-performing, middle-income, multi-family communities at a substantial discount from replacement cost.

Since its inception, BNC has adopted a “wholesale” buying mentality. It strives to find properties it can purchase below current value. Most acquirers of real estate tend to have a “retail” mentality, seeking properties that are appropriately priced in the market. Although properties cannot always be purchased below their fair market value, BNC looked for those that provide at least a 20% return annualized in the second year of operation for multi-residential, and in the third year of operation for office investments.

In January 1989, BNC purchased its first community in Texas. The BNC portfolio grew to 5000 units owned and managed in the state of Texas. BNC’s history of accomplishment demonstrates its ability through its market expertise to consistently identify acquisitions at attractive prices significantly below replacement cost.

BNC has participated in all aspects of real estate investment, including raw land acquisition, site plan development, acquisition analysis, construction, syndication, rehabilitation, property management, operational analysis, asset management and project sales.

Property Management

Today, BNC employes approximately 100 full-time associates. The Dallas operations staff consists of a Chief Operating Officer, Chief Financial Officer, Asset Manager, Controller, Regional Manager, and additional clerical, accounting and support staff. A typical community has a staff that includes a property manager, an assistant manager, one leasing associate per 200 apartment units, one maintenance technician, porter and housekeeper per 100 units, and support staff, as needed. BNC believes that management functions are critical in order to provide unparalleled service at competitive rates to its residents. By quickly responding to residents’ needs and requests and through proactive tenant communications, BNC has been successful in increasing rental rates and occupancy through the portfolio.

BNC’s operations are managed out of its 23,000 square foot office building in Dallas, Texas, acquired in 1996. Separately, the company leases office space at its headquarters in Solana Beach, California. The California office consists of CEO Barry Nussbaum, his executive assistants and support staff.

The Communities

BNC’s current portfolio is composed of ownership interest in three well-located, middle-income, multifamily communities - one community in the Dallas/Fort Worth area and two communities in the Houston area. All of the communities have 200 or more apartment units with the largest having 572 units. BNC also owns and operates an office building located in Richardson Texas, which houses the corporate office and provides additional office space for tenants.

Based on years of experience, BNC estimates that the typical renovation process lasts six months, during which time the company engages in an aggressive leasing plan until stabilization has been reached. BNC targets the achievement of stabilized occupancy for the communities between six to eight months after the completion of any major renovation, depending on the condition, size and reputation of the community prior to acquisition.

The communities are renovated to offer the resident an attractive living option at a reasonable price. BNC’s middle-income tenant base, the largest segment of the renter community, is value-oriented. The typical BNC resident works in an unskilled or semi-skilled profession and is a renter of necessity. The company strives to deliver exceptional value for the rental dollar by reasonable property enhancements and attentive on-site property management.

BNC has owned and managed over 10,000 units since moving to Texas in 1989 and has raised over one-third of a billion dollars.


Contents of this site 2005-2012 BNC Real Estate, Dallas, Texas