pFour years ago, Robin Flagler, who had long worked in the apartment industry, decided to start a management company to focus on value-add acquisitions. AION purchased one property after another and now owns and operates 47 that comprise 14,300 units in six states, all under the AION Management umbrella and headquartered in Philadelphia.
Occasionally, Flagler, President, and AION’s more than 150 investors will sell a community but only when it has realized the desired return on investment.
“Our goal was to take underperforming properties, which had deferred maintenance and were not managed in an institutional manner, invest significant capital into them resulting in improved technology, better looks, energy efficiency and overall customer experience, which means completing service requests within 24 hours,” she says.
The company also wanted to do more than many of its competitors by tailoring business plans to each property’s location and residents’ needs rather than having a single approach. “One community might want to add a dog park, but another might not,” Flagler says.
The firm prides itself on its due diligence and market analysis, which includes surveying residents when it acquires a building. That could lead to confirmation of how issues have been handled or inspire a new direction. “In the past, we’ve taken over Class A properties with a technology-driven demographic of young professionals and learned that they wanted charging stations for their electric vehicles. There are other locations, which have been B or C class, where we have added bike rental stations because it’s an area with trails or where we have converted lighting to LEDs for energy efficiency. We’re always looking to meet residents’ needs and bring units up to a higher level to help fill vacancies and raise rents,” Flagler says.
To make any changes in a timely fashion, AION Management found that it made sense to work with one primary renovation supply partner for materials, fixtures and appliances. It decided on Lowe’s Pro Supply, headquartered in Mooresville, North Carolina, because it offered a central customer service group that could work on AION’s existing multiple projects in multiple states and take on new jobs as Flagler added to her portfolio.
Lowe’s Pro Supply offered even more—providing due diligence before AION might close on a property; stepping in to measure, order and be ready as soon as a resident gave notice 60 days ahead of vacating so there would be no gap in occupancy, and handling all deliveries to the property.
While AION has focused on apartment units since its start, it occasionally undertakes capital improvements of amenity spaces, and Lowe’s Pro Supply has helped with those, too.
With the start of the pandemic, AION paused with nonessential work as restrictions were imposed but started back up when the Center for Disease Control and Prevention (CDC) and states lifted them. Lowe’s Pro Supply staff stayed closely in touch by sharing information it heard in its industry and providing vital merchandise to meet safety needs. “They were very helpful with getting us PPEs, hand sanitizer, disinfectants and plastic dividers so we could stay ahead of the curve,” Flagler says.
Now, as prices for plywood skyrocket and appliances become harder to locate, Lowe’s Pro Supply again is meeting AION’s renovation needs by helping the company to have merchandise in advance of needing it, so there are no delays in completing a remodel, Flagler says.
Such preparation has helped AION continue its rapid acquisitions, which last year involved buying seven new communities and spending $20 million on capital improvements. So far this year, the company has purchased five properties. “Our vendors are partners who can make us look good or terrible,” Flagler says. “In the four years we’ve worked together, Lowe’s Pro Supply has never caused us to miss a deadline.”
Partnerships don’t get much better than that.