Attorney Paul M. Sternberg - Houston Moneymakers

By Attorney Paul M. Sternberg Houston | June 11, 2009

 http://www.chron.com/disp/story.mpl/business/realestate/5908382.html

Moneymakers: He rents you a home away from home
By NANCY SARNOFF

More than four years ago, Paul Sternberg was throwing a party when a
banker moving to town offered him a generous amount to rent his River
Oaks-area house — fully furnished.

That was when the real estate lawyer and condo investor decided to
start a corporate housing business.

Today, his 11-person firm, Choice Corporate Housing, has about $10
million in revenue and a growing list of Fortune 500 customers. The
company has about 700 occupied units across the country.

Paul Sternberg said he’s able to compete with larger companies on price
because he owns the furnishings and housewares.

He spoke with reporter Nancy Sarnoff about the business of renting
corporate apartments. What follows are excerpts of that conversation.

Q: How much do companies pay for corporate rentals?

A: The average corporate housing unit is between $2,000 and $2,500 a
month. That would be a one-bedroom. We have done some at $8,000 a month
but they’re few and far between.

Q: Where do you get most of your business?

A: We rely mostly on corporate business. Eighty percent is military and
Fortune 500 companies, and 20 percent (are individuals) moving to
Houston to find a job.

The fastest-growing segment of the hotel industry is extended stays.
The reason we’re better than extended stay is you get twice the space
at half or three quarters of the cost.

We do a lot down in the Medical Center for people who come in for
treatment.

Most individuals we talk to think you have to be a corporation or think
of it as being very expensive. Our problem is not our competitors. It’s
educating the public.

Q: What’s the normal stay in a corporate apartment?

A: The average person stays with us 6 to 7 months. We have agreements
with major management companies like Camden and Riverstone. Some do not
like corporate housing at all. They don’t like it because it’s
transient.

Q: Do you use other housing types apart from complexes?

A: We don’t do houses. We only stick with big apartment complexes. When
you have a repair issue, it gets dealt with right away. With the real
estate market the way it is, we get calls every day, “I have a condo.
Do you want to rent it for corporate housing?”

Q: Where do you buy your furniture?

A: Originally we bought it from Aaron’s. In the end, there’s a whole
bunch of furniture companies on the Beltway. We buy from them. We have
a 10,000-square-foot warehouse that we keep our furniture in.

nancy.sarnoff@chron.com

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Attorney Paul M. Sternberg - Houston Moneymakers

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