DeGeorge Property Group enjoys rapid growth

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Ben DeGeorge’s first foray into property management came almost 10 years ago when he invested in a building in Rochester that contained three housing units.

He did so on the advice of entrepreneur coach David Mammano of Victor. The idea was to live in one unit and rent the other two.

“He said, “Buy a multifamily property downtown so you don’t have to pay rent anymore,’ ” DeGeorge said.

So what happens? The very first night as building owner and landlord, the water heater hits the abrupt end of its life expectancy.

Welcome to emergency maintenance, also known as Landlord Responsibilities 101.

Fast-forward to today and DeGeorge is founder and president of DeGeorge Property Group. He either wholly owns, or is partners in, 15 small- to midsize apartment communities in suburban Rochester as well as Holley, Albion, Walworth, Newark, Lakeville and Livonia. His partner is his father and business mentor, Joe. DeGeorge also owns a stable of single-family homes in Rochester, as well as a few doubles, with 670 total units under his company umbrella.

That initial experience as a property owner obviously didn’t sour him on the business; it prepared him. He believes if you’re attentive to your tenants’ needs, you’ll likely keep your buildings full.

“The craziest stuff happens on Christmas Eve, like a resident is cooking for the whole family and the stove goes out,” DeGeorge said. “You need to be responsive and take care of it right away. You’re constantly investing back in the property.

“We are in this for the long run. Real estate really pays off 20 years down the road.”

DeGeorge says he has studied business since he was 9 but officially entered the business world in 2009. He joined a firm his father created, St. Pauly Textile, following graduation from SUNY Geneseo. St. Pauly Textile is a clothing collection business based in Farmington, and DeGeorge is now president. He then entered the real estate market during the recession in 2010 by buying short-sale or foreclosed homes.

“Because of the incentives after the downturn, you didn’t have to put any money down,” he said.

By 2014, he was renting 50 units throughout the city. The next logical step, he said, was multifamily properties.

Over the next four years, DeGeorge Property Group owned and managed 300 units. Then between late summer of 2018 and this past December, the firm really ramped up expansion, buying apartment communities such as Pine Ridge Apartments in Irondequoit, Avalon Suites in Webster and Sterling Square in Greece.

“We’ve grown by 150 percent over the past 16 months,” he said.

The largest and most expensive investment came in December, when DeGeorge Property Group closed on a 120-unit complex in Gates, LeChase Manor Apartments. With the transfer of ownership, at a price tag of $6.2 million, came a name change as well. The property is now called William’s Tribute in honor of DeGeorge’s late grandfather, Bill Daniels.

“I was very close to my grandfather and I thought this would be a great way to honor him,” DeGeorge said. “The apartments were built by LeChase Construction and my grandfather actually worked as an estimator for LeChase late in his career.”

DeGeorge said he’s not interested in quick turnover of complexes or tenants. Low tenant turnover means higher and steadier occupancy rates.

There are those in the entrepreneurial realm who have said the best way to create a business is with someone else’s money. DeGeorge doesn’t subscribe. The family business provided the initial opportunity to invest in real estate, and he wants to be accountable only to himself.

Well, himself and his employees. There are 20 full- and part-time employees at DeGeorge Property Group. He praises their dedication and work, especially Jamaal Stevens, vice president of operations.

“My father taught me to work hard, watch my dollars, be humble and treat employees well,” DeGeorge said. “Our employees do a great job. I’m really proud of the team we have. They care about the tenants and in the end, their job is a lot harder than ours.”

Joe DeGeorge said it’s imperative that those who lead a company care about the employees. He’s still CEO of St. Pauly Textile, which has about 100 workers.

“We don’t have a responsibility to that person, we have a responsibility to their family,” Joe DeGeorge said. “That family relies on us to make the right decisions.”

That’s why, while real estate portfolio growth has been rapid, Ben DeGeorge still wants to be cautious.

“What’s really important to me is growing in a safe way,” he said. “I’m not chasing any sort of number or retirement. I ‘m excited to see what we can do in the next decade.”

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