With more than 60 years’ leadership and expertise across all key
aspects of the real estate market, diversified builder-developer
Chesapeake Realty Partners oversees the assessment, design,
construction, management and operation of innovative land planning
and large-scale residential, retail and mixed-use development
initiatives across the Mid-Atlantic area.
The company’s success, across its diverse portfolio of interests,
depends largely on the ability to access and assess timely market
information – and act upon it ahead of competitors. They must also
be able to quickly discern between initiatives that can yield long-term
value and those that aren’t worth pursuing in order to maintain
profitability, market leadership and partner trust.
Chesapeake Realty Partners employs an active and differentiated
strategy to keep growth and attainment moving upward. Over the
past year, the company explored two areas in particular:
- Opportunities to purchase and upgrade viable multifamily properties that would yield profits and higher incomes through value-added in initiatives.
- Ways to get the most value and revenue out of multifamily properties that the company already owned and operated.
To pursue these goals, Chesapeake Realty Partners needed to be able to view, at a meticulous level, the most up-to-date, verified information about prospective project opportunities, as well as the market trends impacting the properties they already owned.
The CoStar Solution
Chesapeake Realty Partners leverages Costar Market Analytics, the
only resource for real-time rent and property data available for the
multifamily market, to get up-to-date, verified information on rent
comps, occupancies, concessions, construction plans and
high-quality visual content, giving the company a true competitive
view of the markets in which they operate, and the areas and
properties where they seek to grow.
Chesapeake Realty Partners sought profitable ownership and
development opportunities associated with prospective buildings that
could be turned into Class A multifamily properties. These included,
for example, legacy buildings, family-owned buildings, or outdated
buildings that could yield strong returns with the right renovation
The company had previously used Axiometrics to get multifamily
market information on such properties – however, the material
lacked key transactional data critical to helping the company make
informed investment decisions.
For example, those reports provided no information or insight about
previous owners of properties; how much they originally paid for
those properties (including cap rates at the time); what rental rates
were under previous ownership; or other insights that could provide
the overall history and context around the property – and thus, its
CoStar Market Analytics, however, provided Chesapeake Realty
Partners these proof points and more.
“With CoStar, we can view details, right down into the specific
submarket, when looking at project opportunities,” said Derek
Olszanowski, Chesapeake Realty Partners Asset Manager. “We can
look at a property and see what rents are now, the rental history,
occupancy rates, the surrounding competition, and what the location
truly looks like, with photos and videos that really show the details.”
“Ultimately, we’re saving hours of footwork that cannot be
measured,” he continued. “We can determine whether we’d spend
money to make a potential purchase even more attractive; whether
we could remain competitive without spending that extra upgrade
money; and whether to turn down deals that just aren’t going to
perform the way a particular seller or broker might promise.”
Essentially, when Chesapeake Realty Partners is looking at buying,
it can access information that helps them see what competitors
are doing – then takes steps to do things better. The effect may be
millions of dollars preserved simply by confidently saying “yes” to
good opportunities and “no” to bad ones.
Chesapeake Realty Partners also benefits from the value and
information provided by CoStar Market Analytics’ data feeds from
Apartments.com, also owned by CoStar Group.
“We rely on the rents we see listed on CoStar to measure how our
own assets are performing, relative to the competition. This helps us
identify what further rent adjustments, up or down, must be made,”
said Olszanowski. “We know that Apartments.com listing data also
informs the CoStar Market Analytics database – when you see listed
rents, you know you’re getting real-time numbers.”
Up-to-date imagery and information also helped Chesapeake Realty
Partners develop a pipeline for existing and new properties and
“Thanks to CoStar Market Analytics and Apartments.com together,
we can see what’s available in a specific area; whether the
kitchens and baths are updated; and other key information,” said
Olszanowski. “We’re able to create a game plan to determine what
properties would get a strong premium after a renovation; how
the market is performing before we begin construction in certain
neighborhoods; whether we’ll need to offer concessions to be
competitive; or whether the market is healthy enough that we can
grow rents without having to give anything away for free.”
Beyond offering real-time, constantly verified information, CoStar
Market Analytics allows Chesapeake Realty Partners to drive
accountability across their managed properties.
“Analytics allow us to ask the right questions, which can help compel
our property managers to make sure rents are set appropriately. This
drives better, more proactive management, which can result in a
value lift in itself,” said Olszanowski. “Additionally, we’re driving leads
and leases by ensuring all our property managers are leveraging the
marketing power that comes with advertising on Apartments.com.”
Chesapeake Realty Partners has been able to hone insights as
it accesses new construction and renovation opportunities, and
take smart steps to keep existing properties competitively priced,
marketed and leased.
“CoStar Market Analytics keeps us a step ahead, allowing us to
watch trends unfold and prepare ourselves as we enter new markets,”
explained Olszanowski. “In turn, the information we advertise and
view on Apartments.com allows us to stay ahead of our existing
competition and new competitors that are entering the market.”
All told, Chesapeake Realty Partners can now:
- Quickly assess targeted information to help the company confidently
decide whether to pursue or pass on potential development
and renovation opportunities.
- Create a pipeline for development and renovation efforts that
will drive measurable value.
- Ensure existing properties are marketed properly based on
competitive performance intelligence.
- Avoid having to concede rent for occupancies, particularly when a property is
performing competitively and does not require deep discounts
to move units.
- Improve efforts at the property management level to stay
profitable through advertising, and by leveraging competitive
intelligence to set rents.
“CoStar Market Analytics and Apartments.com simply make our
business better,” said Olszanowski. “We’re not chasing deals that
aren’t going to yield profits – and we are getting the most out of
our existing assets and the opportunities we know will yield the