As one of the largest multifamily real estate investment trusts in the nation, Houston-based Camden Development Inc. says it doesn’t keep all of its eggs in one basket. Specializing in developing and managing high-quality apartment homes, as well as construction and acquisition of properties, Camden says diversification has been one of the company’s key strategies.

“We focus on geographic diversification and market balance,” explains Steve Hefner, senior vice president of construction. Camden has a pipeline of work worth $2.4 billion, and its portfolio currently boasts:

• 182 operating communities
• 63,085 rent stabilized apartment homes
• 11 development communities
• 3,383 development apartment homes  

Camden is committed to providing excellence throughout its organization, Hefner notes. “I think what sets Camden apart is our culture and mission statement,” he explains. “Our mission statement says, ‘Guided by our values, we are committed to being the best multifamily company by providing living excellence to our residents.’”

Camden invests in technology and services, which Hefner says help create value to its customers and shareholders. For example, it operates a Camden TV cable program called The Perfect Connection, a program that the company says will contribute $7 million to $8 million by the end of the year. Camden also offers a door-to-door trash pick-up service called the Valet Waste Program, which it says will bring in $2 million annually by the end of 2009. These services are not yet available in all properties, however.

In addition, Camden has invested in JD Edwards, an accounting software program, and in OneSite & YieldStar. This Web-based property management system allows residents to lease and pay rent on the Internet.

A Strong Portfolio
Hefner says Camden operates “a portfolio of high-quality apartment homes located in high-growth markets across the U.S.,” including Las Vegas, Denver, Phoenix, Texas, Virginia, Maryland, California and Florida. “If you look at our portfolio and the core markets that we’re in, we exceed the U.S. average for job growth,” he continues. “This should drive demand for apartment homes.”

Camden’s current pipeline consists of 1,604 homes in lease-up and about 3,383 under construction. Camden Monument is a $62 million high-density urban project that is located in an “outstanding market,” close to a major mall intersection with small retail attractions nearby, Hefner says.

Camden Potomac is a $110 million, 12-story, 378-unit urban apartment directly across the Reagan International Airport in Washington, D.C. Units average 1,000 square feet in size and rent averages $2,200 per month. “It’s a gorgeous building with spectacular views of the capital, Potomac River, various Washington monuments, and is located close to the Pentagon,” he says.

Camden Plaza is a $41 million urban infill project situated on a prime office location in Houston, Hefner says. It features 271 units with a parking garage.                       

Active Builder
Although the construction market suffered due to cost increases in the past two years, Hefner says he believes the market has stabilized. “Even though oil prices are high, we don’t see the kind of cost escalation that we saw in 2006,” he states. “I think there is a lot of uncertainty in capital markets today. A lot of developers and contractors are slowing down and sitting on the sideline and just waiting to see what’s [happening] next.”

Houston presents a different picture, however. “The Houston market is quite active right now, with job growth expected to be around 94,000 this year – probably one of the best in the country,” he adds. “We’re seeing robust building occurring, but not all markets are like that.”

Hefner adds that Phoenix and Las Vegas are two markets that are experiencing a construction slowdown in residential work, but the commercial and institutional work is strong.

Best Place to Work
Despite some unpredictability in the construction industry, Hefner says, one aspect remains the same for Camden – its people make the organization. “As our chairman says, ‘People are the assets and the communities are the equipment,’” he emphasizes. “We create a work place that attracts and retains people, and we do that through our culture – lots of training, focus, education and just by empowering our people.

“It’s very important for each of our employees to make decisions, to do the right thing … and to lead by example. We take our job seriously, but we have fun doing it. We value sense of humor.”

Earlier this year, Camden was named one of the 100 best companies to work for by Fortune magazine. The company was the first real estate investment trust and first multifamily company to make the list, Hefner notes.

“Being selected by Fortune is really a tribute to the amazing and gifted group that works at Camden,” he continues. “For us to be included in this list confirms what we knew all along – that Camden is an excellent place to work [and that] we have some of the best and brightest people in the … industry.”