Real estate has always been an important component of the family’s portfolio.
Today the family owns a focused real estate portfolio that includes income-producing multi-family assets in the Pacific Northwest. Its platform is unique, allowing the family and co-investors to carefully identify, underwrite, acquire, manage and strategically determine the timing around an exit through its sponsor vehicle, Coast Equity Partners. This cradle-to-grave platform has served the family and investors who have joined them on the journey quite well.
Going forward the family seeks to diversify its real estate holdings by continuing to acquire more multi-family assets in the Pacific Northwest as well as other geographically diverse locations. You can find detailed information on our current real estate investment mandate here: https://coastequitypartners.com/what-we-do/
The family built its wealth by managing real estate operating businesses and investing in the markets it was serving. Risk averse by nature and with expertise in property management, co-founders and brothers Tom Hoban and Shawn Hoban sought to acquire office and apartment product in circumstances where they could find management dysfunction. Acquiring these assets and then deploying its award-winning property management firm, the brothers were able to create new value for themselves and select investors throughout the 2000’s.
In the midst of the real estate crash of 2008/09, The Hoban brothers identified a compelling opportunity to shift exclusively into apartment product and led that strategy when they bought the first “fractured” condo building from a bank REO (Real Estate Owned) department in the trendy Ballard neighborhood of Seattle in January 2009.
Others soon followed, but the brothers, through www.coastequitypartners.com, were well along on this strategy with new partners and liquidity to advance this cause, nuancing their strategy to be ahead of trends and emerging strategies.
By 2014, they had acquired $300 mil of apartment product in mostly suburban secondary markets using proprietary underwriting and remain in majority position as the managing member of each stand-alone LLC. The average size of their apartment holdings is 150 units.
Simultaneously, its primary operating business, Coast Property Management, grew and the brothers leveraged their back office strengths and business acumen to birth other new businesses.
To support this strategy, the brothers went about recruiting and developing talent to run the property management company and move into active shareholder roles by way of a new family office that would serve as the board, governance mechanism, and financial resource to support growth and expansion.
With new talent in place, the company expanded existing businesses and launched new ones in related categories. These new ventures were added to the existing Coast Property Management and Coast Equity Partners to round out a strong and diversified platform.
- Coast Workplace Solutions (nationwide facility services)
- CPM (tenant improvement and small works construction experts, Puget Sound)
- Kapa Kai (private insurance captive)
They have successfully exited some other businesses along the way, including a brokerage firm and two facility service companies specializing in landscaping and janitorial.
Along this three-decade journey, the Hoban brothers bought a minor league baseball team, partnered with dozens of non-profits to serve the poor and vulnerable, led a campaign to build a Catholic High School, supported the growth of Catholic education in their home town, and have become very active in the communities they serve through their own passions and those of their partners and employee’s.
Philosophically, the Hoban family sees its good fortune as part of bigger picture that obligates the brothers to serve others as their core purpose. It was and is the concept of service to others that is part of their childhood family and faith based values and extends today into every area of their lives, including their business activities. Theirs is a humble servant style of leadership with a unique goal of affecting the lives of over 1,000,000 people through their time, talent and treasure. “The best social program on the planet is a good job” says Tom. Today, the Coast Group of Companies and Hoban Family Office directly employ over 600 people and touch the lives of over 500,000. “But there are many ways to affect someone else’s life”.