Growing Together: Real Estate Investment Firm Touts Long-Time Management Relationship With Lloyd 

Going into a new market can present its share of unknowns, so when Ernst Capital expanded into Omaha with a multifamily development recently, it was reassuring that one critical element was already covered.

“We could have gone with a new management firm in the market, but when Lloyd Companies also saw it as a place to grow long term, it was an easy decision to continue working with them,” said Chris Daugaard, a partner at Ernst Capital.

“New markets have unknowns. You’re learning a bit about the market, but because we were working with a manager we were familiar with, a lot of the variables weren’t variables.”

Since Ernst Capital was founded in 2007, the real estate investment firm has worked with Lloyd as its property management firm. The relationship has grown to include more than 4,000 units across South Dakota as well as in Des Moines, Omaha, and Rapid City.

“As we’ve gone into new markets, they’ve been willing to come with us and invest resources in those markets,” Daugaard said. “The team now is scaled enough that they can be very effective in a new place because of the people, processes, and systems they have in place. They’re scalable and able to be deployed in other places. Market data is unique from place to place, but the fundamentals of how to do good property management are pretty consistent.”

For Lloyd, “it’s a very strong, collaborative relationship,” said Ashley Lipp, vice president of residential property management. “We have successfully grown together and expanded into new markets, worked through several acquisitions and dispositions, and consistently met financial objectives.”

Pioneering new markets relies on “controlling the things you can control and limiting the unknowns,” Daugaard said. “We know how Lloyd operates, how they run a maintenance team, how they approach controllable expenses, and how they analyze data regularly.”

At Lloyd, “we have created a foundation of mutual trust and respect, which are qualities that have enabled each project to consistently meet or exceed its financial goals,” Lipp said.

For example, Lloyd is managing The Union, a new Ernst Capital–funded development in Box Elder, S.D., built to serve members of Ellsworth Air Force Base.

“Because of that, it required a tailored leasing strategy different from our typical approach,” Lipp said. “Through regular monthly check-ins with Ernst Capital Group, we have aligned our marketing and service strategies to meet the specific needs of this clientele. Thanks to our collaborative efforts, The Union is off to a strong start and is on track for stabilization.”

As a property management firm, Lloyd excels at supporting Ernst’s new developments, Daugaard said.

“They are very focused on being able to find the resident, market to them, have the resident be able to find the management team, and then they do a great job communicating,” he said.

“Helping those that want to live with you discover the apartment community is crucial to lease-up, and I would put Lloyd’s leasing team up against anyone.”

Lloyd’s team becomes integrated into the communities it manages, Daugaard said.

“They are attentive and in tune with what’s going on in the community,” he said. “That minimizes the likelihood of unpleasant surprises and leads to more long-term residents. It also puts Lloyd in a strong position to handle the inevitable turnover of the apartment industry. They closely track days a unit is open and have processes in place to help minimize them.”

In many of Ernst’s projects, regional investors are participating, “and we are very interested in having a top-of-the-line professional firm making sure our properties look attractive and are very well taken care of,” Daugaard said. “Our investors are entrusting us with their capital, and working with someone who has the same respect for our investments is crucial.”

Daugaard has become immersed in the culture of Lloyd, and it makes a difference, he said.

“I’m fortunate to have spent a lot of time with Lloyd’s leadership team, and co-founder Craig Lloyd himself would walk the properties,” he said. “The attention to detail and the true care they approach the process with is very, very noticeable. The team has been taught through its culture what it’s like to have a property managed by Lloyd. Being a family business, their name is on the front door, and they want the culture to reflect that.”