2015 Year in Review

Thought I’d take this opportunity to let you all know where we are as 2015 comes to a close and what we hope / expect for next year.

During 2015:

  • We acquired 11 buildings in which we have ownership stakes (and helped other groups acquire a whole bunch more);
  • As I write this, we’re in the process of renovating 27 properties, of which 12 are ours and 15 are on behalf of other groups;
  • We have one deal in escrow, which will, I hope, become our second true ground-up deal;
  • Our management company has grown to around 450 units under management, of which approximately 200 are occupied and the rest in various stages of renovation; and
  • Our brokerage did 21 deals for which we’re credited on the MLS (compared with 29 in 2014 and 27 in 2013).

In looking back on the year, the thing I’m proudest of is actually not on this list. Here it is: We have managed to attract an incredible group of people to work with us at Adaptive.

For a while, I struggled to understand why such amazing people would choose to work with us when there are so many other options. But then Kris, our extremely talented controller, let me in on the secret: Because we do a ton of deals, hire smart people, and promote rapidly, Adaptive is a great place for ambitious people to learn the real estate business. As a result, we have an incredible team.

As Warren Buffett writes pretty much every year, because our people are so good, I tap-dance to work every day.

What I expect for 2016:

  • Doubt we’ll be able to find as many value-add deals to buy in 2016 (though I hope I’m wrong!);
  • Expect we’ll put five more ground-up deals into the pipeline (including the one in escrow now);
  • Expect our management company to end 2016 with 400-450 occupied units, which will make this business line profitable for the first time; and
  • Expect our brokerage business to stay steady, but with single family / condo deals making up a larger part of the mix.


Writing this blog continues to be the single most valuable thing I do for my career. I sincerely appreciate that you, my readers, spend a bit of each weekday listening to my thoughts on our business. It means the world to me.

Best wishes for a safe New Years Eve and a healthy and prosperous 2016.