Student Housing Business is the voice of the student housing industry.
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COMPANY NE WS NOVEMBER/DECEMBER 2015 STUDENT HOUSING BUSINESS .COM 34 M Many people in the purpose- built student housing sector have come to know NMHC's Jim Arbury. Modest and humble, he has been the man behind the scenes in formalizing the sec- tor under the NMHC umbrella. At NMHC's annual Student Housing Conference at the end of September, Arbury formally announced that he would retire at the end of 2015. SHB caught up with Arbury recently to fnd out a little bit more about what he learned during his years at NMHC, where he thinks the stu- dent housing sector is headed, and what he plans to do in retirement. SHB: What was your background before coming to NMHC? Arbury: I have had a varied career. I started out at a big CPA frm in Cleveland, then to the auto industry, I was general manager of a wire and cable company; I was a strategic planner of a dyna- mite blasting cord company — that was the most proftable frm I ever worked for — and I was also chief of staff for a U.S. senator. I also worked at the U.S. Postal Rate Commission. It sounds scattered, but each job helped me in each succeeding job. SHB: NMHC launched its student housing efforts in the early 2000s. What led the association to con- sider an effort toward the sector? Arbury: We had a handful of members in 2000 that were involved in student housing. Nathan Collier was the driving force. We did some good basic research and began our [student housing] conferences in 2002. In the beginning, we had about 70 attendees — most were our con- ventional members who were attending our NMHC Fall Board meeting. We continued the research and conferences, but ramped it up around 2007 with Nathan Collier and David Adelman as heads of a committee within NMHC. In early 2011, I stepped down as NMHC's senior vice president of govern- ment affairs at age 70. Doug Bibby gave me a shot at trying to cre- ate a signifcant student housing group within NMHC or fade into the sunset. The rest is histo- ry — we caught the wave at the right time. SHB: You were a lobbyist for NMHC for many years. How did that prepare you for the transition to student housing? Arbury: I lobbied on taxes and telecom issues. A good lobbyist learns to make contacts, present a factual case, but most of all lis- ten. Communication is 90 percent listening. With 30 years of work- ing both on and off Capitol Hill, I knew what was serious and what was just noise. My experience in the business world prior to all the political stuff is what really helped me. I knew how to gather research and we had produced some pretty good information. In 2010, NMHC launched our Income & Expense Survey. Being a CPA, I was able to simply have frms submit their P&Ls.; I took it from there and made all of the numbers conform. This made it much easier for frms to submit data. My experience in marketing also proved to be very helpful in telling our story to frms who were not yet members of NMHC. SHB: What's changed in the stu- dent housing space since you frst became involved with it? Arbury: In the past 15 years we have gone from by-the-unit to by- the-bed rentals; to the 12 month lease; to a signifcant increase in professional management; to fur- nished rather than unfurnished; to a signifcant aftermarket as lend- ers became comfortable with the sector; to innovative architects like Humphreys & Partners, and to recognition and admiration by the conventional frms. I might also add to this the value of student housing communication pioneers at Student Housing Business. SHB: Who — or what — do you feel have been the greatest change agents and infuencers in the stu- dent housing space during your time in the industry? Arbury: Nathan Collier, David Adelman, Bill Bayless, Randy Churchey, Brian Dinerstein, and Donna Preiss, come to mind. Fannie Mae and Freddie Mac are obvious giants. But there is a new wave in the industry that includes Wes Rogers of Landmark, Andy Hogshead of Collier, Rob Bronstein of Scion, Ron Johnsey of Axiometrics, Bob Clark of Peak, Mike Peter of Campus Advantage, Will Talbot at ACC, Miles Orth at Campus Apartments, Al Rabil at Kayne Anderson and many oth- ers. Michelle Fuller of Greystar is a marketing genius. And I would LEAVING A LEGACY A conversation with the National Multifamily Housing Council's Jim Arbury on the eve of his retirement. Interview by Randall Shearin and Richard Kelley NMHC's Brian Veith has assumed the leadership of the asso- ciation's student housing council. Veith has worked with Jim Arbury since the inception of the council several years ago, and has become a familiar face in the industry. SHB: Brian, what is your back- ground, what did you do before joining NMHC and what responsi- bilities have you had since joining the NMHC staff? Veith: Prior to joining the National Multifamily Housing Council, I completed a fellowship at the Case Foundation working under Ambassador J. Douglas Holladay for three separate organizations; two non-profts and a private equity frm focused on the energy industry. I joined NMHC working in membership and marketing, then apprenticed under Jim Arbury, learning the ins and outs of student housing while getting to know the leaders of the sec- tor. During this time, I also earned a Masters in Real Estate Development from George Mason University, focusing on entrepreneurship. SHB: What initiatives does NMHC have underway for the student housing sector? Veith: NMHC will continue to build upon the strong foundation that Jim Arbury has created for our student housing members. Jim leaves tough shoes to fll, but NMHC has a deep lineup contribut- ing to its student housing efforts including Kenny Emson, senior vice president of fnance and opera- tions, and NMHC's talented research and govern- ment affairs teams. Our annual student housing con- ference continues to grow and we look forward to bringing new perspectives and fresh content to next year's event in New Orleans. The student housing sector's networking, advocacy and research needs will remain a top priority. SHB: How does the NMHC assist student housing owners and operators? Veith: NMHC's Student Housing Council brings together the leading players in the space promot- ing collaboration to improve the overall quality of the student housing sector. We serve as an industry platform advancing the sector through networking, research and advocacy while striving to develop best practices, benchmarking and other useful resources. SHB: What's your industry prediction for 2016? Veith: Overall, 2016 looks to be another strong year for the student housing sector. Deliveries should be comparable to 2015 with labor and land costs remaining a major concern. Enrollment will continue to climb at a steady pace while student debt concerns are concentrated at for-proft colleges. With interest rates projected to rise in the coming months, I do expect transactions to slow from the high level of sales we've seen over the past few years with cap rates remaining fat. Taking over the Reins Brian Veith Jim Arbury