The eminent story of the firm is that of pronounced transformation of markets, capital and properties, to the present day’s successive building of a flexible, opportunistic and value-add approach towards multifamily and senior housing investments.
Throughout the firm’s 40+ years, Maxwell Drever and his partners have instituted a rigorous investment review process with a safety-first focus to investing and a value-add orientation, emphasizing risk-adjusted returns.
Specifically, many of our investments have been counter-cyclical investments that even with a safety-first, low cost and financing basis, have often outperformed the returns of higher leveraged peers.
The firm begins over four decades ago when founder Maxwell Drever and Chip McIntosh, along with eight friends, each invest $5,000 to buy the then-decrepit triplex that originally was the Spreckels sugar family’s waterfront vacation home in Sausalito, California.
Drever McIntosh, Drever Partners, and Concierge Asset Management (Concierge) are formed, making a counter-cyclical foray into the Seattle real estate market in 1971, acquiring and redeveloping 17 apartment complexes that generate cash-on-cash returns of 34%.
In the early 1980s, again on a contrarian basis, Drever McIntosh sees overbuilding coming in key markets, ceases acquiring properties and systematically sells its entire portfolio for approximately $176 million in cash and realizing an average annual net return of 34% for investors.
In the cycle following the savings and loan industry collapse in 1986, the government eventually formed the Resolution Trust Company (RTC), liquidating $400 billion in real estate assets. Counter-cyclically seizing on the market opportunity, Drever Partners is one of the largest RTC buyers (if not the largest) to early on acquire over 18,000 units primarily with institutional capital.
By October 1997, Drever Partners and Concierge Asset Management, with 79 apartment communities under management, merges with Walden Residential Properties, Inc., a Dallas-based REIT listed on the NYSE, creating a $1.4 billion REIT.
In early 2000, after expiration of a post-sale noncompete clause, Maxwell Drever re-forms Concierge and resumes selectively acquiring underperforming, value-add apartment communities.
By 2004, in keeping with Maxwell Drever’s disciplined contrarian investment philosophy, his teammates advise investors to “keep their powder dry” and sequentially canceled two $100 million capitalized joint ventures rather than place his investors in what he foretold would be declining markets.
Crossbeam Capital—creating a club fund—is founded in 2006; seeking a best-in-class property redevelopment company as a partner, it ultimately merges with Concierge Asset Management, forming Crossbeam Concierge (CBC).
Counter-cyclically in 2010, Crossbeam Concierge (CBC) begins acquiring and redeveloping challenged multifamily assets and/or their nonperforming loans, aligning with some of the savviest institutional investors (AA+ credit rated) in the nation.
To date, Drever Capital Management has acquired 18 multifamily properties with CBC’s club funds of institutional investors.
We are in the process of acquiring additional properties with a focus on senior housing.