Kettler Exhibits Steady Growth in 2007
Development Company Delivered 2,000 Multifamily Housing Units, completed land deals and increased Rental Portfolio and Third Party Management
December 19, 2007
Kettler, one of greater Washington, DC’s largest diversified real estate and property management companies, has shown steady growth throughout 2007, in spite of turbulent market conditions. Marking its 30th year in business, Kettler continued to increase its multifamily portfolio, delivering more than 2,000 condominiums to the DC area market as well as two new Class-A rental buildings.
Following Kettler’s strategic name change from KSI in early 2007, the real estate development company has been able to build a strong market identity among its constituents and further evolve the Kettler brand. Employing a 450 person staff, the firm also relocated its corporate headquarters to 80,000 square feet in Pinnacle Towers to consolidate its workforce into one McLean location. The move was part of a strategic business plan to better communicate Kettler’s diversity and to better serve its ever-expanding portfolio.
“As a private company, our strategy has been to diversify by exploring various business options through commercial ventures, land deals, multifamily development and property management deals. By acquiring excellent locations and creating public/private partnerships, we have positioned ourselves to be the largest residential developer in the greater D.C. area," said Robert C. Kettler, chairman and CEO of Kettler.
One of Kettler’s most highly anticipated residential developments, Metropolitan Park, an eight-building master plan that includes up to 3,200 multifamily units, delivered its first 399 units, which began leasing in 2007. Located in thriving Pentagon City, the classically designed post modern building is the nation’s only apartment community designed by world-renowned architect and designer, Robert A.M. Stern. Kettler also acquired the land, formerly held in a ground lease, for approximately $220 million allowing future phases to react to market conditions. Upscale condos delivered this year include: Midtown Alexandria Station, Midtown Bethesda North, Midtown North and The West Village of Shirlington. Midtown Largo Station is scheduled for delivery in early 2008.
Kettler is also currently marketing 1,740 single family, townhomes and condominiums in its planned communities located in eastern Prince William County. Port Potomac recently enjoyed its 600th contract with sales totaling $300 million and Potomac Club was recently named the Best Selling planned community in the greater DC area with 215 sales this year to date.
Kettler Management has increased its rental portfolio to over 10,000 units including fee managed deals. In partnering with national brands such as American Express, VIPdesk and Apple, Kettler has successfully been able to maximize rents, which in turn, has sustained the company’s profitability. In fact, over the past three years, Kettler Management’s NOI has increased by 19 percent, with a primarily tax credit portfolio, and has achieved the highest occupancy rate in company history. Kettler Management also offers predevelopment services, support and management to builders and developers who are transitioning for-sale assets to rentals.
Kettler’s commitment to increasing market share will be evident as noteworthy projects commence in 2008. These include future phases of Metropolitan Park, George Washington University’s Square 54 and Kettler’s expansion into Baltimore, with the groundbreaking for ‘Greektown’ a mixed use development near the Inner Harbor.
“In researching and closely evaluating industry trends and market opportunities, we target primarily transit-oriented locations that are positioned for strong job growth and economic prosperity,” said Robert C. Kettler, chair and founder of Kettler. "By partnering with other strong companies, such as ING Clarion, Principal and Boston Properties, we are setting the stage for future growth."