Seizing the Opportunities
Differing backgrounds help Baker Storey McDonald founders make early mark

By Brian Forrester
Nashville Business Journal
May 16 - 22, 2003

David Baker, Carl Storey, and Allen McDonald obviously enjoy where their careers have led. A little more than a year ago, the three were at a similar place - employed by real estate firm Trammell Crow Co. but interested in something besides the large corporate environment. They overcame their initial reluctance about becoming entrepreneurs and launched Baker Storey McDonald Properties. "We looked at it and we're much stronger together," says Baker.

The company's smaller size has helped it be flexible. While representing Vitamin Shoppe, Baker found what he thought was ideal real estate in the Rivergate retail area. He bought the property and then leased it to the Vitamin Shoppe. "Ten people could drive through the market and not find that solution," says Storey.

On the development and land acquisition side, Baker Storey McDonald Properties purchased Nippers Corner last year for $6.7 million. The purchase included the fully occupied 40,000 square foot center and the 25,000 square foot Regal Cinema, which has sat vacant for nearly two years

Baker Storey McDonald has nearly $18.5 million in projects working in addition to a $9 million development project in the near future. In one year, the company has grown from three to nine employees. "We always knew we'd reach that level of deal flow," says Storey. It's just the principals estimated it would take 24 months, not 12 months to reach it.

Networking Possibilities

Both Storey and McDonald had experience owning and operating their own companies. Storey managed leasing properties for C.D. Storey Properties. McDonald owned a sporting goods store, where he learned how to manage people and handled other aspects of business operations.

Baker, on the other hand, had experience in tenant representation and a network of nationwide clients at Trammell Crow. Within a month of helping start Baker Storey McDonald, Baker also formed X-Team, a network of former national real estate brokers who have started their own companies. "It's only been over a year, but so far it has gone beyond our expectations," says Jim Stokas, owner of Stokas Realty Advisors and X-Team member.

X-Team has more than 40 members in 25 cities and growing. The network meets twice a year and holds conference calls twice a month. "It's just an opportunity to know roll-outs of retailers, and it's a great way for us to tap into the knowledge of who is on the march and headed our way," says Storey.

That's exactly how Stokas used the X-Team when he referred an apparel retailer to an X-Team member in Indianapolis. Now that contact is working on the retailer's entire state roll-out. Others in real estate have similar networks that help generate business leads for member firms. In Nashville, Shopping Center Group of Tennessee is a member of Chainlinks. "A tremendous amount of my work comes from that network," says John Forster, real estate broker at the Shopping Center Group of Tennessee's Nashville office.

"It's a relationship thing," Forster says. "When I'm working with a client in Tennessee, I'm naturally going to ask them where else they're looking to do business. The whole key is to get my members in Chainlinks a friendly phone call so they can do business."
Because of their backgrounds, Baker, Storey and McDonald approach real estate transactions from different perspectives, but because of similar values, they approach business operations from the same point of view.
"We've known each other for a long time," says McDonald.

The principals work without doors in their new office, instead, it has an open floor plan with cubicles occupied by employees and principals alike. Having a staff meeting simply requires making sure everyone is off of the phones at the same time.
"The biggest challenge has been dealing with volume of opportunity in the pipeline," says McDonald.

To maximize staff and resources Baker Storey McDonald Properties is days away from launching an intranet Web site so engineers, contractors, real estate representatives and anyone else involved in projects with the firm can keep track of progress.
"That's an example of a system trying to stay ahead of the work," McDonald says.

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