Why residential real estate is a hot market

Michael H. Zaransky

Founder and Managing Principal

MZ Capital Partners

400 Skokie Blvd., Suite 580, Northbrook, IL 60062

(847) 714-1818

www.mzcapitalpartners.com

Industry: Real estate investment and development

Family information: Married, two adult children with spouses, five grandchildren

Hometown: Northbrook

Q: Describe your company.

A: MZ Capital Partners, an INC 500 company, is a demographically driven real estate investment firm specializing in multifamily assets. Our well-capitalized, entrepreneurial firm has a proven record of developing new, and acquiring existing, properties throughout the United States. We execute transactions quickly while maintaining institutional investment discipline.

Q: Do you plan to hire any additional staff or make any significant capital investments in your company in the next year?

A: We have an aggressive strategic plan to add multifamily communities to our national portfolio through both acquisitions of existing properties and ground-up development. Our plan includes expanding into the growing single-family rental sector, acquiring existing apartment communities, and building ground up new construction multifamily developments.

Q: What will your company's main challenges be in the next year?

A: Though real estate continues to face economic headwinds, we see buying opportunities at an attractive basis. Our primary concern is identifying opportunities in growing markets that meet our very strict and selective criteria for investment.

Q: What's the hottest trend in your industry?

A: Single-family rental (SFR) communities are booming among families seeking their own home spaces as an alternative to buying. Renters also want amenity-rich apartments communities equipped for the work-from-home environment. These properties might offer fitness classes, herb gardens, dog parks and pickleball courts. Both trends provide renters with the benefits of community.

Q: If you had one tip to give to a rookie executive, what would it be?

A: Work hard, be patient, build long-term relationships, learn from experience and seek out mentors. As Warren Buffett says, most investors don't want to "get rich slow," and that's the problem. Success in any business is a marathon. So don't sprint.

Q: Do you have a business mantra?

A: Two, actually. One is from Winston Churchill, who said, "Never, Never, Never give in." The other is my own: "If it were easy, anyone and everyone would be doing this. Figuring it out and executing is our edge!"

Q: From a business outlook, whom do you look up to?

A: I have had the pleasure and honor of getting to know and learn from Chicago's Lester Crown, who has led Crown family investments and philanthropy for five decades. Lester is not only an excellent and astute businessman but also a role model for giving back. He has a deep commitment to Chicago and is a community, civic and philanthropic leader second to none.

Q: What is one interesting fact about you or your company that most people may not know?

A: Equal to our investment track record and growing portfolio of properties is our pledge to support the communities we serve. We make annual donations to local food pantries in every market we serve to feed a family of four for the year. I also serve on several boards, including the Jewish United Fund of Chicago, one of the largest social service agency providers in the state of Illinois.

Q: What do you like to do in your free time?

A: We spend as much time as possible with our five grandchildren. Some call it babysitting; we call it having a ball.

Q: If you were not doing this job, what do you think you would be doing?

A: I can't imagine doing anything but this. I maintain an excellent balance between family, business and community involvement. I do not aspire to, or even think about, doing anything else.

Q: What was your first paying job?

A: If you're familiar with the 1948 Red Skelton movie "The Fuller Brush Man," that was me. I spent weekends selling the product line door-to-door. While not as finny as Skelton, I sold lot's of product.

Q: If you could put your company name on a sports venue, which one would you choose?

A: The United Center in Chicago, home of the Chicago Bulls. I had season tickets during the Michael Jordan championship runs and rarely missed home games. I've loved the game and the United Center since.

Q: Two people to follow on Twitter and why. (Besides your company)

A: Warren Buffett @WarrenBuffet (greatest investor ever!)

Peter Linneman @P-Linneman (leading real estate industry economist)