Arixa Capital interviews Paul Schon, Managing Partner at Schon Tepler, a fully integrated real estate development and investment company based in Los Angeles, California. Their focus is on creating and preserving value for our equity investors using their specialized knowledge of the multi-family and residential real-estate business.
In part one, Paul Schon discusses their niche of new construction and the key to success of their business.
I started at Marcus and Millichap brokering apartment buildings. I bet my business partner, Artem Tepler, and we partnered up in 2009 and we started the business. We build boutique apartment buildings throughout Los Angeles. We’re vertically integrated so we do [the] construction and then we also do the property management, as well as the development.
How did Schon Tepler come into the niche of new construction apartment buildings in LA?
We started off flipping homes and after we did over 50 homes or so, we build some of the homes ground up, we just figured we needed to move up a level and just graduate to development. We both wanted to develop, we just needed experience and expertise and relationships, and capital. We did our first apartment building in 2012 and now we’re on our 24th building that we’re developing.
We found a great niche, we’re building just in LA, west of downtown, south of the 101, north of the 10 freeway, and west of the beach. We stick to the city of LA, we know that zoning, our professionals know how to get around the city.
What’s the key to success in the niche Schon Tepler is in?
One of our biggest competitive advantages is we source most of our deals off market. So we have great relationships with a bunch of brokers, so before they put it on the market, they come to us, they bring us the deal because they know we perform, they know we execute on these deals. We also have big lists of properties that we sourced ourselves. We’re constantly targeting this list of properties that work for us and what those properties are, is actually quite simple. They’re zoned multifamily and it’s a small property on a big lot. And that’s what we target.