Real estate capital raising and syndication
Building a $5 Billion Luxury Apartment Firm: Larry of Connor Group
From Zero to $5 Billion: Journey of Reinvention in Luxury Real Estate
Real estate sponsors, founders and investors who want to see how one apartment firm approaches hiring, culture, investor alignment and long-term performance.
Five points worth keeping
- Focus on process, not outcomes. Larry says to review past results against the returns you want. If they fall short, take a hard look at your beliefs, strategies and systems. In his experience, the right processes, people and plan let outcomes take care of themselves.
- Own your mistakes and improve fast. The firm was not afraid to make mistakes, but it owned them and made no excuses. It changed quickly after each one. In 2024 it ran 90 plus initiatives under the motto change, simplify and improve.
- Hire outside the industry. Larry says the firm hires no one from the industry for site, sales or service roles. In his experience, early hires from the industry thought the firm was crazy and could not change their habits. The firm now spends millions each year on training.
- Put investors first with performance pay. Larry describes the firm's deals as performance oriented, with the firm's rewards tied to how investors do. He points to 241 acquisitions over 32 years, with a loss on eight.
- Share ownership with the team. The firm has 71 partners among more than 400 associates, including groundskeepers. Larry describes their ownership as coming directly from him. His view is that 85% of a bigger pie beats 100% of a smaller one.
The short version
Larry started the Connor group in 1991 with no real estate background. He was an English major. The firm now holds about $5 billion in assets across 18 markets. He says the firm sees itself as a professional operator of businesses that happen to be apartment communities. Over 32 years it made 241 acquisitions and lost money on eight. Larry cites average annual investor returns after fees of slightly over 30%, which are his figures and not a promise of future results.
Larry explains why the firm hires almost nobody from the industry and trains new staff heavily. Technicians handle 20 to 25 tickets a day, against 6 to 10 typical in the industry. He also covers a partner program with 71 partners, the firm's culture book and plans for about $800 million of philanthropic investing over 10 years. His closing advice is to aim high.
Facts from this talk
- The Connor group has made 241 apartment acquisitions over 32 years and lost money on eight.
- The firm has 71 partners among more than 400 associates, and the ownership comes directly from Larry.
- The firm's technicians handle 20 to 25 tickets a day, compared with 6 to 10 that Larry cites for the industry.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: From Zero to $5 Billion: Journey of Reinvention in Luxury Real Estate. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around investor return reporting, partner ownership structures and performance fee arrangements. Do not use AI to write your own legal agreements.
Said on the call
"If you do the right processes, and you have the right people, and you have the right plan, the outcomes will generally take care of themselves."
"We think 90% of your problems are people problems, and 90% of your solutions are people."
"You will never outperform your own self-image. Think about that. You'll never outperform your own self-image."
Related questions
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- What do LPs want to see in a sponsor's track record?LPs want a sponsor they can count on.
- How do I raise money for opportunity zone projects?Start with a project that is already well built, then put it in the zone and show investors the real numbers.
Questions about this video
How large is the Connor group and when did it start?
Larry says the firm started in 1991. It now has about $5 billion in assets across 18 markets and about 440 associates.
What returns does Larry say the firm has produced?
Larry says average annual IRR to investors after fees is slightly over 30% over 32 years. He says the last 5 years were about 38%. These are his reported figures and past results do not guarantee future ones. The firm made 241 acquisitions and lost money on eight.
What are the four P's Larry mentions?
Larry names people, plan, process and perseverance, and also mentions passion. He says that if you have these, your chances of success are very good, regardless of how much money you have.
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