University Properties expands niche focus

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University Properties & Management Inc. has a new president and a new direction.|ret||ret||tab|

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Adding on|ret||ret||tab|

Realtor Bruce Murray, formerly of Murney Associates, has joined University Properties as president and chief executive officer.|ret||ret||tab|

A native of Illinois, Murray came to Missouri in 1982 by way of the Lake of the Ozarks, moving to Springfield in 1992.|ret||ret||tab|

"Actually I had been around Springfield since the mid-80s," Murray said. "A couple of fellows and I owned a convenience store over here on the corner of Campbell and Grand we built that store. So I had been in and out of Springfield and liked what I saw when I was here."|ret||ret||tab|

Murray began working in real estate full time at Carol Jones Realtors in 1993. From the beginning, income properties were his specialty. "I will rarely, if ever, sell a house," he said, adding that he could do sales, but "I like the income the rental properties bring a whole lot better."|ret||ret||tab|

Three years ago Murray made the move to Murney Associates. He is a member of the local, state and national boards of Realtors, a life member of the Million Dollar Sales Club, a member of the Multimillion Dollar Club, and a Graduate of the Realtor's Institute with commercial emphasis.|ret||ret||tab|

After Murray entered the real estate indus-try, he came to know Ron Looney, University Properties' board chairman, and worked with him on a variety of projects.|ret||ret||tab|

Murray said his move to University Properties began about a month ago when Looney asked him out to lunch. |ret||ret||tab|

"I thought, Oh good, he's wanting to do some real estate transactions,'" Murray said. However, "the course of the conversation evolved to what (Looney) wanted to do with University Properties, what he wanted to do with some other projects he's involved in, and the more we talked about it, the more we each got interested in each other's direction," Murray said.|ret||ret||tab|

"The addition of Bruce running University Properties will allow me the time necessary to expand my search for additional properties, rehabilitation, expanding our existing underlying portfolios, plus assisting in growing the company as Bruce desires," Looney said, adding with a laugh, "I guess I'll start working for him ... if he can manage me."|ret||ret||tab|

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Changing focus|ret||ret||tab|

"University Properties, as evidenced by its name, has historically been centered in the SMS area," Murray said, but, "there are property owners outside of the SMS area who can benefit from our services."|ret||ret||tab|

For University Properties' first six years of operation, it "primarily managed a very closely held group of properties my own or one or two other individuals' and it was built with the concept of managing internal portfolios with a couple of investors," Looney said. "We will change that direction a little bit; expand it to direct property management of medium- and high-end quality properties," targeting small and medium size apartment houses.|ret||ret||tab|

University Properties provides total management services, Murray said, "which includes the attracting, qualifying and leasing function for prospective residents," as well as repair and maintenance via an on-staff maintenance director. Property Manager Danielle Eakins coordinates with tenants on a daily basis.|ret||ret||tab|

The company now manages around 200 units, including apartments, single-family homes and commercial space. |ret||ret||tab|

"We own couple of dozen homes in the Rountree-University-Heights-Phelps area plus manage another couple of dozen for other people," Looney said, as well as operating 125 to 140 apartment units west of campus, mostly off Kimbrough. |ret||ret||tab|

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Investment |ret||ret||tab|

Real estate investing is an emphasis for Looney, a Springfield native, and SMSU and Drury University graduate who spent 15 years on Wall Street with Merrill Lynch.|ret||ret||tab|

"Being from Wall Street originally and understanding investments, and being very keen on all kinds of investments, I know that real estate is a significant investment that investors should commit some of their money to," he said.|ret||ret||tab|

The problem is property management's demands on the investor. "It's a rather difficult issue for a working professional to have a good real estate portfolio that doesn't complicate their life," Looney said, adding that doctors and lawyers don't have time to deal with maintenance calls at 2 in the afternoon or 1 in the morning. |ret||ret||tab|

"We feel that investors should be in the real estate market with part of their investment funds, and they need an outside manager that can handle the day-to-day operations," Looney said. |ret||ret||tab|

Springfield is an excellent market, he added, because "the price of real estate in Springfield is one of the lowest in the country. Therefore, we feel it is a wonderful opportunity as far as a cost basis not really expecting it to catch up with national trends, but (for) its ability to probably have less downside than a major metropolitan area. It's more recession-proof." |ret||ret||tab|

Looney said that real estate costs here run about 72 cents to 81 cents on the dollar vs. national trends. "Our rental rates are also lower than the national rates, so it's a commensurate type of investment return. We don't get a better investment return here than we do in the metropolitan area, but we are buying solid homes, apartments, commercial buildings at a discount to national market rates."|ret||ret||tab|

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Rehabilitation|ret||ret||tab|

Of necessity, rehabilitation of older properties is an emphasis for University Properties: much of the housing stock in the SMSU area dates back to the '20s, '30s and '40s. |ret||ret||tab|

"Since I got back here in '94 and I started buying in the neighborhoods surrounding SMS, we have seen an increase in the underlying price and we've seen an increase in the amount of rehabilitation of the existing housing stock, which I've been actively involved in," Looney said.|ret||ret||tab|

In fact, "Everything that we have ever acquired has gone through extensive rehabilitation," he said. "We really don't open it up until we rehab, which makes the management side a lot easier."|ret||ret||tab|

He added, "my experience rehabbing property is, the nicer you make it, the better quality of tenant you end up with and the better job they do of taking care of the property," Looney said. "If you give somebody a place with a hole in the wall, they're probably going to put more holes in the wall. If you give them a really clean, cosmetically updated place, their performance is better."|ret||ret||tab|

Murray said that "one of the things that appealed to me about University Properties is that I've always seen them treat residents and owners with courtesy and respect. And with the property that I personally own and manage, that has been my philosophy all along."|ret||ret||tab|

University Properties also rehabilitated the commercial building at 1330 E. Cherry, transforming the dilapidated 85-year-old former hospital into high-end office space.|ret||ret||tab|

And in addition to rehabilitation, University Properties is also involved in new construction. "We have a 10-unit apartment house over on Harrison that we're breaking ground to construct," Looney said. |ret||ret||tab|

The apartment building, Willow Walk East, is being built by University Properties subsidiary Willow Walk LLC. It is the fifth apartment house under the Willow Walk name, Looney said.|ret||ret||tab|

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