Expanding Your Growth Potential Through Partnership
In the last few years, the apartment renovation market has picked up dramatically. For 12 Stone Group, a contractor that plays in both the apartment and commercial spaces, that has been a boon for business.
With three divisions and expansion into in 17 states over the past few years, 12 Stone’s growth is impressive.
“They just opened up their tenth office,” says Home Depot Pro Account Rep Graham Downs, who works with 12 Stone. “Their growth is out of control.”
12 Stone’s clients are doing two types of renovations, according Davin Gatswirth, CEO and Managing Partner for the company.
In the first group, are people who have just acquired a property and perform renovations to bring it up to date. With these improvements to amenities and apartment homes, they aim to increase rents.
The second group of owners want to take a B-minus asset in A or A-plus market and transform it into a B or even an A asset. “They bring it up to the quality of the submarket by doing kitchen and bath renovations with granite and stainless and some of those things that pique the interest of a resident,” Gatswirth says.
As 12 Stone increased the number of apartment renovations, Home Depot and Downs have been by its side. Gatswirth knows that Downs can help him out in tight situations, such as when he doesn’t have the necessary materials.
“We sometimes need help to get materials acquired as quickly as possible,” Gatswirth says. “Graham has relationships with any vendor and material provider you can think of. For instance, if you need a specific cabinet for a clubhouse, he’ll go through different avenues to find those cabinets.”
The partnership between 12 Stone and Home Depot reached another level last August, when the contractor became an approved provider for the home improvement retailer. By pairing up with Home Depot Renovation Services, 12 Stone sees an opportunity to boost its already impressive growth.
“Home Depot has a stellar reputation in the market,” Gatswirth says. “Their business-to-business services are growing rapidly. There are a lot of players out there who take comfort in knowing Home Depot is on the service side because they get a big team working for them.”
The process of becoming a service provider wasn’t easy. To qualify, a contractor needs to be licensed and insured and have lead paint certifications among other things.
“You have to go through day-long classes and testing,” Gatswirth says. “If you do come across something with presence of lead-based paint, your team has to be certified to go through the remediation process.”
There are a number of benefits for 12 Stone. Instead of having to wait 90 days for check, Home Depot pays within a week.
12 Stone has enjoyed astounding success over the past couple of years. From June 1, 2016 to May 31, 2016, it grew 161.5 percent compared to the prior 12 months. Downs’ support has played a role in that success.
“He will work to get us what we need,” Gatswirth says. “The partnership is tremendous.”