1. Date: 10/1/09
Proposal for:
GE Capital
The Apartments of Wheaton Center
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2. I. PROJECT OVERVIEW and SITUATION ANALYSIS
The Apartments of Wheaton Center is a 758-unit renovation project location in Wheaton,
Illinois — about 33 minutes from downtown Chicago via train or 45 minutes from the Loop via
car. Upon completion, it will consist of 180 premier/renovated homes, one renovated model,
435 upgraded units and 142 “value” units in two 20-story high-rise towers and four 3-6-story
garden-style buildings. The asset covers 16 acres and is currently 50-60% occupied (about 450
units).
Strengths
The apartments in the towers offer bright, sunny, expansive views with multiple large, curved
balconies in every home. The corner units offer three balconies, giving the resident a panoramic
vista that really opens up the home. South views in the towers are already commanding higher
rents than the north-viewing units, though the property team hasn’t attributed this to any
reason in particular. Because the asset offers towers, low-rise, and garden-style buildings, there
is truly something for everyone here.
The property is currently under renovation and, upon completion, will feature upgraded
kitchens with stainless steel appliances, granite countertops and hardwood flooring in the
kitchens. New carpeting, new windows and brighter hallways will make the apartment homes
bright, fresh and attractive.
The community boasts walk-ability as a key selling point as there is a quaint little town just
blocks away featuring a small selection of businesses such as shops, salons, restaurants, pet
care and medical care. The Prairie Path hiking and biking trail is accessible directly across the
street from the property, as is the Metra station – a somewhat noisy, but rather appealing
draw. The convenience of property’s location is a big draw for prospects.
The property also pays for most utilities for its residents, a unique feature that helps residents
budget their monthly finances as accurately as possible. With the extreme winters in the
Chicagoland area, this feature will really see its benefit in those months. Nevertheless, this is a
great selling point to which prospects really respond.
Another unique selling point is the community atmosphere. The Apartments of Wheaton
Center is a neighborhood within the small town community of Wheaton, with a strong bond
internally within the property and externally to the town. It also provides easy access to the
third largest city in the United States and all the benefits Chicago has to offer.
Challenges
The renovation has been a very prolonged process, and residents are understandably becoming
impatient with the noise, the mess and the inconvenience of it all. The process was under way
for two years before Draper and Kramer was introduced as the management company roughly
a year ago. Finally, there is a light at the end of the tunnel. The renovation should be completed
in December 2009.
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3. Some of the amenities have already been renovated and are in place such as community
common spaces in the clubhouse, the leasing center, the business center/Internet café, and the
fitness center with basketball and tennis courts. The pool and landscaping are scheduled to be
completed in March of 2010, before the weather warrants is opening. The on-site team wants
to celebrate with a big resident event, including a rubber ducky race at the pool. There is still a
lot of scaffolding on one of the resident towers, and a great deal of debris is visible from inside
the fitness center, but that is scheduled for removal by December.
Another challenge noted by the leasing team is the lack of in-unit washers and dryers. Many of
the competitors offer this feature, and The Apartments of Wheaton Center face obstacles to
leasing with many prospects. They do have positive ways to overcome this, pointing out how
laundry rooms are open 24-hours, how they have multiple machines available to allow multiple
loads to be completed at once which reduces the overall laundry time, and how many have
been made more comfortable with flat screen TVs and couches to make the waits more
comfortable.
Finally, many prospects note that the rent at the property seems higher than many
competitors’. However, The Apartments of Wheaton Center pays for most utilities, so once the
leasing consultant is able to point out that these savings makes it more cost effective in the
long run, that obstacle is usually overcome.
Based on the challenges of the property and understanding all of the strengths it has to offer its
residents, The Apartments of Wheaton Center is looking to strengthen its brand and marketing
efforts in order to increase its traffic flow. Outlined below is a comprehensive marketing plan
that will engage residents and connect with prospects to create awareness and drive traffic to
The Apartments of Wheaton Center.
2. COMPETITIVE OVERVIEW
The current competitor mix includes a variety of luxury apartment communities. These
communities range from renovated buildings to brand new ones, but all within the Wheaton-
Lombard-Downers Grove area. The top three competitors are The Residences at The Grove,
Yorktown Apartments and City View at The Highlands.
The Residences at The Grove are brand new, luxury apartment homes. Located off Interstate
355, they are visible from the road, but reaching the community itself poses a challenge to
interested parties. Signage is subdued, so one must be looking for it to notice it. The price
points are on par with Wheaton Center, but the unit sizes are smaller. Amenities are also
similar in offering as Wheaton Center. The overall experience at the property is one of top-of-
the-line luxury and the sense of living an elevated lifestyle.
Yorktown Apartments is a renovated apartment community located in Lombard, down
Roosevelt from Wheaton Center. The community is well-kept, although the leasing office
wasn’t easily located. Price points and amenity offerings are on par with Wheaton Center,
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4. although the in-unit finishes were not at the same level. The overall experience at the property
was enjoyable, with an appealing leasing consultant who seemed genuinely engaged with the
residents of the property. Their website offers many features that increases the user
experience and makes it easier to find the information desired. It also appears to employ SEO
tactics.
City View at The Highlands is almost across the street from Yorktown Apartments in Lombard.
This community is brand new with an upscale, elegant feel, but was difficult to locate with the
signage. The price points are higher than Wheaton Center, although amenities are on par.
Although the entrance to the building was impressive, the experience was less so. The leasing
consultant seemed bothered, starting the visit by saying she was not showing units. She
offered pricing on a few handicapped units, then provided a packet to take away. There was no
discussion of what amenities were available. The website did not enhance the property
experience. Starting with an unappealing color palette, the website is difficult to maneuver and
not well-planned from a user perspective.
3. TARGET AUDIENCE
Wheaton Center is an older property in a quiet suburban neighborhood, so its resident
population is a mix from seniors to young college grads to young married couples just starting
out. Some tenants in different units are related – a married couple may have their elderly
parent living in one of the apartments. It is a place with a sense of community where seniors
feel safe, and their families can feel good about them living alone. Still, seniors only make up
about 12% of the residents. The typical renter is between the ages of 24 and 40, income ranging
from $25,000 - $40,000, and the owner/management team wants this overall demographic mix
to remain largely unchanged. Through the renovation process, they’re hoping to achieve higher
rents and an overall increase in tenant credit scoring.
4. MARKETING CHALLENGE
The Apartments of Wheaton Center is community like no other. Boasting a prime location in
Wheaton and across the street from a Metra station, its residents enjoy the convenience it
provides and the sense of community it exudes. However, the construction has taken its toll on
traffic flow, and the property must now fight harder than ever to capture the attention of
potential prospects. Therefore, The Apartments at Wheaton Center will need to break out
among its competitors and showcase all that it has to offer. It will need to strengthen its brand,
bolster its strategy and enhance its creative aspects to reflect the upscale community it is.
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5. 5. MARKETING STRATEGY STATEMENT
In this ever-changing market landscape where consumers are becoming more sophisticated, it
is important for The Apartments of Wheaton Center to cut through the noise and reach its
target audience in a manner in which they will understand and respond. This requires a
cohesive campaign, with all pieces working at maximum efficiency levels to leverage each other
and convey the desired message to the audience. Using a multi-pronged approach that utilizes
a combination of mediums, The Apartments of Wheaton Center will advance to the forefront of
the competitor landscape and become a first-option with its audience.
6. IMPLEMENTATION TACTICS
There are several categories in which The Apartments of Wheaton Center should focus to
strengthen its marketing efforts, and thus its relationship to its target audience. These sections
are:
• Multi-media
• Signage/Critical Path
• Collateral
• Media
• Resident Retention/Referral
• Events/Pets
The Internet is an extremely important vein through which traffic comes. In today’s world, 66%
of the US population uses the Internet, with over 80% of web users finding websites by using a
search engine. As it relates to apartment seekers, 90% of people researching rental information
use the Internet as a resource, and over 60% of apartment seekers start their search online. As
such, it is vital that the website is the best it can be. For many, it is the first — and sometimes
only — impression of the property.
When evaluating a website and its effectiveness, there are several key points to consider. The
design should be user-centric, and needs to enhance the content of the site, not overpower it.
A website’s content is its primary importance, and the design should make it easier and more
enjoyable to retrieve that content. A website also needs to focus the user’s attention, show
them what they should know and lead them along the desired path. The less thought required
to navigate the website, the better the user experience and easier it is for them to travel the
path desired. Search engine optimization (SEO) is also an important key point. With so many
users searching online, it is essential that they are able to locate the property’s website through
searches. Without SEO, a property is immediately forfeiting communication with half of the
apartment-seeking population. It also limits the ability to track and modify campaign tactics to
ensure maximum return on investment. Pay-per-click (PPC) advertising is another way to reach
those online searchers. When used in conjunction with enhanced SEO, PPC can increase traffic
to a website by three times the current amount. Flexibility is the final key point a website must
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6. contain. As campaigns and properties grow and evolve, it is necessary that the website is able
to handle this without a negative result. Design, content and navigational elements must be
able to support changes along the path.
An effective email campaign will also support a website and offer a way for these Internet-
focused prospects to communicate with the property. Automated campaigns will keep the
property top-of-mind with prospects during lengthy buyer cycles, with minimal effort by the
leasing consultants. This is a simple, yet effective, way to support them and convey necessary
property information to potential residents. One-off email blasts are also beneficial tools to
communicate new information, such as specials, events and property announcements –
information that could bring wavering prospects back into the fold.
Another critical tool in reaching potential audiences is signage. Signage is important because
people in the vicinity of the property already have a relationship with the area, which makes
them stronger prospects. This is the property’s opportunity to announce its presence and show
passersby what it has to offer. In addition, signage offers a way to dress up an unattractive
critical path, which can often serve as a barrier to entry for potential prospects. Currently,
signage/drive-bys are the second strongest source to traffic. This means there is opportunity to
grow this source. Signage should be bold and visually appealing to the viewer while providing
content information. More than anything, the design should allow for maximum visibility, or
the source is futile.
As we discuss the critical path, it is necessary to note the importance of a prospect’s first
impression of the property. As the prospect enters the leasing office, an enthusiastic,
professional greeting should be employed to make the prospect feel welcomed to the
community. Refreshments, such as water and cookies, would contribute to a welcoming, and
non-pressured, environment. With the size of the property, The Apartments of Wheaton Center
face a lengthier-than-usual lease-up period. As it will be used a great deal for an extended
amount of time, the leasing center itself would benefit from location in a larger space. A waiting
area for prospects would make them more comfortable, and a more private area for application
and lease signings would make them feel more secure. It would also help prospects waiting to
have some visuals to look at, something will help them understand the community better and
set their expectations. These displays should tie into what the prospects should walk away with
knowing – that the property is closely tied to its larger community of Wheaton, or that it has all
the features and amenities to create a top-notch living experience, or inviting the prospect to
picture themselves at the property.
Just as prospects will come to the property to learn what it has to offer, they will most likely
also leave to think over their decision. To help them with their decision, they will take an
information packet to remind them of the visit and the property. Therefore, it is necessary that
the collateral pieces accurately reflect the tone of the property and all that it has to offer. It
must present the property in the best light possible, connect with the other sources from which
the prospect came, and be the culmination of the property’s brand. There are several ways to
accomplish this – through a sophisticated presentation, something that reflects a fun and quirky
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7. tone or allows the leasing consultant to create a customized packet per person to reflect the
message of uniqueness. No matter the execution, the collateral must reach the audience on the
level in which they can identify.
In addition to the brand message, it is vital to speak it where the audience is listening. Media
outlets used must be targeted to the correct audience, or the message will be missed
altogether. Best practices include sources targeting those actively seeking apartments,
conveying the most enticing information possible, increasing visibility and tracking results to
make informed decisions on future tactics.
Social media is an increasingly effective tool in media outreach, but it is often misused in an
effort to “keep up with the pack.” It is easy to be hi-jacked by unhappy residents with negative
comments living in cyberspace forever, and making a negative first impression on viewers that
is nearly impossible to overcome. Therefore, before social media tools such as Facebook.com
and Twitter.com are employed, it is important to make sure residents are in a positive mindset.
If there is any hesitation or question, we recommend a closed forum such as Ning.com. This
keeps the comments and potential negativity contained, and provides the property
manager/administrator the opportunity to resolve issues before they become public.
Since happy residents are the best advertisement, it is important to ensure they are content.
Thus, a formal resident retention program should be developed. The Apartments of Wheaton
Center have already created an enjoyable environment for its residents through events, and
have made a good start with communication in the newsletter. But it should go even further
and create a resident sub-brand that is consistent with the brand look and ties all pieces
together, evident in a formalized program. This can include many aspects, such as
communication (continuation of the newsletters and the addition of a resident-only social
forum that houses up-to-date property information), events (continue with resident events and
create a formalized schedule to allow residents to plan around) and a benefits program
(including personalized notice letters, door hangers and bi-fold with incentive options). This will
help keeps residents happy and close the back door of leases.
An offshoot of the resident retention program is the resident referral program. Resident
referrals are one of the best ways to reach potential audiences because, as mentioned, a happy
resident is the best advertiser, and will bring their friends into the fold. People want to be
surrounded by friends. Therefore, it is important to have a strong program in place. A multi-
channel resident referral program is recommended to reach the audience, which includes
employing such tactics as door hangers, emails and strong referral bonuses.
Events are a great way to bring potential prospects to the property and tap into the resident
channel. At many events, residents will bring guests, thus providing a prospect that already has
ties to the community. Even for the other guests, events at the property offer a low-pressure
selling situation and give the prospect a glimpse at what life would be like living there.
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8. The Apartments of Wheaton Center offer a benefit atypical of many apartment communities,
and one that brings with it its own audience sect: pets. By creating a unique campaign relating
to pets, The Apartments of Wheaton Center will tap into this audience sect and widen the net
to increase traffic to the property. It will also provide an opportunity for additional community
relations and potential property PR.
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9. 7. LINE ITEM PRICING
Website*
Development of new website or updates to current website including use of advanced SEO
techniques and website hosting on the MTC server.
Amount to Budget: $X Optimize current website
$X Develop new website
$X Annual hosting fee
*For more in-depth review, recommendations and costs, please see attached full website proposal.
Pay-Per-Click Advertising
Recommendation includes creation of all keywords, ad text and one year of program
management. The monthly click-through budget will be charged by Google to the client’s credit
card.
Amount to Budget: $X Account turnover and management
$X Annual renewal/service
$X Recommended monthly click-through budget
Email Campaign
Design, programming and testing of initial email template as well as additional email messages
based on template. Includes set-up and monthly management of email service.
Amount to Budget: $X Design of initial template
$X Per additional email, based on template (copy, image selection,
reprogramming)
$X One-time setup of service
$X Monthly service fee
Signage
Design and execution of signage package including overall signage look and initial design cost
offering up to two size options. Leasing center graphics are estimated separately under signage
package.
Amount to Budget: $X Design of signage package, up to two size options
$X Per additional sign modification
TBD Fabrication and installation of signage
$X – $X Design and fabrication of leasing center graphic package
$X Design of six flags
$X Fabrication of six flags
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10. Collateral
Design and execution of collateral package including updated brochure and inserts.
Amount to Budget: $X Brochure and insert package (design and printing of 5,000 based on
Monterey example)
$X Brochure and insert package (design and printing of 2,500 based on
City Vista example)
$X Brochure and insert package (design and printing of 2,500 based on
Parc Rosslyn example)
Media
Development and presentation of recommendations for a media plan including all sources
deemed effective, such as print, online and out-of-home. Online advertising also includes the
recommendation for an enhanced Craigslist.com listing.
Amount to Budget: $X – $X Annual media purchase
$X Craigslist.com one-time setup
$X Craigslist.com monthly service (based on 12-month commitment)
Social Media Campaign
Development of social media campaign. Tools at this stage include Ning.com and Wikipedia.
When ready to expand into open forums, a separate campaign proposal will be provided.
Amount to Budget: $X Ning.com setup and customization
$X Wikipedia.com setup and development
Resident Retention Program
Design and execution of resident referral program campaign, including design of overall referral
program look that will tie all pieces together.
Amount to Budget: $X Door Hangers (design, printing and 3 drops of 400)
$X Flyers (design and printing quantity of 2,500)
$X Per additional email (copy, imagery, programming in current
template)
$X Customized email design based on program look
$X Design of benefits program pieces (door hanger, bi-fold, notice letters)
$X – $X Printing of benefits program pieces (quantity of 1,000 for door
hangers and bi-folds)
Resident/Prospect Events
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11. Develop and present recommendations for a series of resident and prospect events.
Amount to Budget: $X – $X Per small event
$X Per email (copy, imagery, programming in current template)
$X Customized email design based on campaign look
$X Flyers (design and printing quantity of 2,500)
Pet Campaign*
Design and execution of outreach pieces related to pet campaign.
Amount to Budget: $X – $X Property-branded pet items
$X Per additional email (copy, imagery, programming in current
template)
$X Customized email design based on campaign look
$X Flyers (design and printing quantity of 2,500)
$X Direct mail (design, list purchase, printing and mailing)
*For more in-depth recommendations and costs, please see attached full pet campaign proposal.
Agency Service Fee
Merrick Towle Communications will meet with client to fully assess needs, review budgets and
prioritize projects. A monthly Agency Service Fee will cover all client services, attending bi-
monthly meetings, as well as media placement and on-going media management. Media will be
invoiced directly to client at net by media sources. If media is commissionable, the Agency will
rebate commissions to client.
Amount to Budget: $X Per month for the first year, including travel and expenses
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12. 8. CONTRACTUAL TERMS AND AGREEMENT
All prices are typical for a project of the nature described in this proposal. In the event that
materials outside the typical pricing included here are requested, the Agency will provide
specific quotes before undertaking the assignment. Prices include two rounds of client-
requested changes and assume that all existing art files, video source files, photography and
related marketing files will be provided to Merrick Towle Communications at commencement
of work. All printing, fabrication and installation costs included in this proposal are estimated
and subject to change based upon concepts and designs approved by client.
All prices exclude shipping/delivery charges and all applicable state sales tax. Ownership of
work will be transferred to GE Asset Management Group upon final payment of invoices. During
the life of the agreement, MTC will store all materials on behalf of GE Asset Management
Group. The agency will provide a copy of any client-owned materials upon request via external
hard drive. This agreement may be terminated with 30 days written notice. All projects will be
invoiced for costs accrued to-date in the event of termination.
Upon contract approval, MTC will invoice a 1/3 deposit of the creative fees for items to be
started within 90 days of contract approval (Those items are indicated with an asterisk). The
balance of creative fees as well as production and other costs (printing, fabrication, shipping,
etc.) will be invoiced upon completion of each project. MTC reserves the right to request a 50%
deposit on approved production charges in excess of $10,000 and advance payment in full of
direct mail postage costs.
This proposal is valid through October 31, 2009.
_____________________________ _____________________________
Date: ________________________ Date: ________________________
GE Asset Management Group Merrick Towle Communications
Authorized Representative Authorized Representative
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