Case Brief 2: Harley Stanfield
October 20th, 2010 “Pledged”
Despite the subprime mortgage crisis, Harvey Stanfield is one of the fastest growing real estate investment and trust companies in the U.S. Harley Stanfield (heretofore referred to as HS) is a real estate investment and trust (REIT) provider founded by Cedric Franklin and Gail Garnette in 2003, headquartered in Washington, D.C. On average, they generate $25million-$49million in annual revenue. They have placed in the top 5 of Inc. Magazine’s annual list of fastest growing companies since 2005. HS has investment properties in collegiate towns including Washington D.C., Ithaca, Detroit, Columbus, Athens, Austin, Reno, Iowa City, South Bend, and Sacramento. The company focuses on secure investment by instituting strict standards, deposits, and application processes. They specialize in green building with particular expertise in sustainable retrofitting of older properties to capitalize on the higher appreciation value. All green properties owned by HS qualify as LEED silver at a minimum. [ (Harley Stanfield, Inc., 2005-2010) ] The first reason for their success is that they conduct their lending functions with a keen sense of corporate responsibility. All applications require a deposit before processing. Applicants are required to have a minimum credit score of 700 and all investments require a 25% deposit before financing. These practices enable HS to issue a 30-day ROI guarantee backed up by the promise of absorbing the first mortgage payment in the event of not securing tenants for the property within that time. These measures have helped HS weather the economic climate and foster a relationship of trust and security with their clients, which engenders repeat investments. [ (Siriwardane, 2009) ] [ (Harley Stanfield, Inc., 2005-2010) ] Franklin and Garnette embrace the idea of corporate entrepreneurship. Under the direction of Cedric Franklin, HS is...
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