Associated Estates Realty Corp. was established in 1964 as a family-owned business to build, manage and own commercial real estate in the Greater Cleveland suburbs. Jeff Friedman took charge of the company at age 24 in 1975, and led a group that purchased the company from the founder in 1977.
During the late 1970s, the Midwest faced high unemployment rates and inflation, so he steered the company into real estate development areas including affordable housing in Ohio and Michigan. He was responsible for developing the first privately owned apartment property in the country using tax-exempt bonds.
Friedman went on to lead AEC’s next phase of development when the company went public in 1993. At the time, the company was the only publicly traded apartment real estate investment trust focused on the Midwest market.
His growth plans didn’t stop there. In 1998, he acquired MIG Realty Advisors to enable expansion into the mid-Atlantic, southeast, southwest and western regions, which proved a poor fit for the company and stalled its ambitious growth plans.
But Friedman was determined to turn the company around, and he rebuilt the management team. Collaboratively, they created a new strategic plan for the organization to move forward. In 2001, the management team regrouped and formulated a new, long-term strategic plan, which included being selective about acquisitions. Unlike many other companies, AEC remained focused on its plan by staying on the sidelines as competitors snapped up real estate at inflated prices between 2005 and 2009. The restraint that the AEC management demonstrated poised the company for success and stability when the buyers’ market emerged, and today, the chairman, president and CEO is seeing a strong company that is growing in healthy ways.
How to reach: Associated Estates Realty Corp., (800) 440-2372 or www.associatedestates.com
