And at a time when construction costs are on the rise, such considerations have become more important. In cases where it previously would have spent about $10,000 on a unit renovation, under its new system Redwood is spending only $9,000, “and still obtaining the same rent bumps.”

Some multifamily housing developers see getting involved in day-to-day management as a headache, a low-margin business not worth the trouble, Carlson adds. But he does not agree.

“We didn't get into it to make a ton of money,” but “there has been a lot of consolidation in the property management business in the last two to three years,” and some of these very large firms can no longer provide the same attention to detail. “They have grown so fast, so quick, that there has been a loss of overall control. We will have oversight on a daily basis.”

And better client service will eventually lead to higher investment yields, he adds, “Institutional investors, which currently comprise the majority of our client base, understand the incremental value that a vertically integrated platform provides.”

This expansion in scope comes at a time of rapid growth in Redwood's assets under management. “An increasing amount of capital is targeted to workforce housing,” Carlson says. That is partly because more investors want to get into the multifamily sector in general. But suburban workforce housing, especially vintage properties constructed between 1985 and 2005, has seen a surge of demand due to increasing populations and job growth. Furthermore, these regions keep attracting a big share of the people forming their first households.

Hanrahan has joined Redwood as president and chief operating officer of its property management company. He has more than 30 years of institutional property management experience, including developing strategic business plans, oversight of property management and leasing staff, implementation of capital projects, and proactive resident relations. Prior to joining Redwood, he served as senior vice president of asset management at American Realty Advisors; before that he served in senior positions at Buckingham Cos. and RREEF.

“Half of Bob's career has been focused on property management, and the other half has been focused on asset management, which is more strategic,” Carlson says.

Wening heads Redwood Construction Services, LLC, which oversees capital expenditures, interior unit and amenity space renovations at company properties. He previously served as Waterton's capital program manager for the Midwest, and as a project architect for Valerio Dewalt Train, where his focus was on value-add strategies for multi-family properties in Chicago.

“Brian's experience as an architect as well as a construction manager gives him a unique perspective and the ability to maximize value engineering opportunities,” Carlson says. “He has developed strong relationships with local and national construction trades and materials providers, and his past experience in the apartment sector gives him deep insight into the features and amenities renters value.”

“We're excited by the pedigree of the people we've brought on board.”