The Leenhouts' real estate holdings cross 12 states; but their investments -- and hearts -- are anchored here

AIMEE K. WILES Norman, left, and Nelson Leenhouts acquired the former Hallman's Chevrolet building on East Avenue in downtown Rochester in 1998, and made it the centerpiece of their Chevy Place apartment and retail complex. About the brothers Norman is chairman and co-chief executive of Home Properties Inc.; Nelson is president and co-CEO. The twins were born Aug. 24, 1935, in Ontario, Wayne County. They founded Home Leasing in 1967, taking the company public and changing its name in 1994. Norman and his wife Arlene have two daughters and live in Macedon. Nelson and his wife Nancy have four daughters and a son and live in Pittsford.

By David Tyler
Democrat and Chronicle

(Sunday, February 3, 2002) -- Norman and Nelson Leenhouts clearly remember their first real estate purchase. It was in the late 1950s when the twin brothers were just out of college.

They had their eye on a farm in Webster, so they consulted a real estate book for advice. The book suggested that when making a purchase offer, set it at two-thirds of the owner's asking price. The farm listed for $18,000, so Norman offered $12,000.

''The woman accepted our offer immediately,'' Norman said. ''I was stunned.''

The story gets better. Three days later, a lawyer phoned Norman saying his client wanted to offer them $3,000 for the purchase agreement. The client was Xerox Corp., and that farm is now part of its Webster manufacturing facility.

A real estate empire was born.

Today that $2.5 billion empire includes 49,000 apartments in 12 states, and more than 1 million square feet of commercial space, including Clinton Square downtown and Chevy Place on East Avenue, the first new apartment complex built in the city in 20 years.

And their company -- Home Properties -- was hired late last year to manage Midtown Plaza, part of the new owners' plans to revive the downtown retail landmark.

Started in 1967 as Home Leasing, Home Properties is now the nation's 10th largest apartment company, according to the National Multifamily Housing Council.

Born and raised in Ontario, Wayne County, Norman and Nelson Leenhouts (pronounced LEAN-houtz), both 66, are determined to make sure Rochester thrives.

"We want to make our talents, limited as they may be, available to help our community," Norman said.

Downtown Rochester has been one of the biggest beneficiaries. Norman is chairman of the Rochester Downtown Development Corp., which focuses on promoting downtown. And when other developers were heading to the suburbs, Home Properties made two significant downtown developments: Clinton Square -- which houses the company's headquarters -- and Chevy Place.

"They did the community a favor," said Bruce Russell, president of the Rochester Downtown Development Corp., who says their projects renewed interest in building in the city.

Developer Gary Stern says the success of Chevy Place motivated him to build a group of loft apartments across the street from the complex.

"(Norman and Nelson) are great guys," Stern said. "They step up to the plate and make things happen. We need more corporate people in this town like them."

The Leenhouts dismiss their management of Midtown as a small part of their business. But longtime business partner and Home Properties board member Burt August thinks they have an emotional investment in the office/retail complex.

"I think they feel with their collective knowledge and their nonpolitical affiliation, they can help re-establish downtown," August said.

Nelson Leenhouts says they have an interest in keeping Rochester vibrant.

"Any area needs a strong cultural hub," he said.

Don't expect a flurry of new Rochester construction or acquisitions, they say. But they would entertain the idea of another downtown apartment complex -- even though it runs counter to their business strategy.

"It would have to be in Rochester," Nelson said. "And only in Rochester."

Anticipating growth

The Leenhouts' business strategy has served Home Properties well. The concept: Buy older, mostly brick apartment complexes with deteriorating kitchens and bathrooms. Fix up the kitchens and bathrooms, then raise the rents and turn a profit.

They say it's a niche with plenty of room for growth, possibly in the Boston area.

"Will this be a $10 billion company? I think so," said Norman Leenhouts. "When will that happen? I don't know."

That growth, if it happens, will likely occur under the leadership of Edward Pettinella, Home Properties' executive vice president. The twin brothers have said Pettinella is their choice to replace them when they retire.

But don't expect the Leenhouts to completely walk away.

"I think it will be more of a stepping back than a retirement," said Norman's daughter Amy Tait, who served as Home Properties executive vice president until 2000.

Pettinella said he wants it that way.

"There are going to be times when I'm going to need their expertise," he said.

Pettinella said the "down home" atmosphere the Leenhouts cultivate at Home Properties was one of the reasons he came to the company.

The Leenhouts are always seeking advice, and seeking to learn, he said.

That attitude came by necessity, Nelson Leenhouts said.

"A long time ago, we found out that when we went around to our communities, our people at the site knew a lot more about what was good for that community than we did," Nelson said.

They have managed to share power at the company for more than 30 years -- splitting pay and duties.

Nelson oversees the apartment communities; Norman focuses on capital and financial issues.

"Their joke is that they each have half a brain," Tait said.

The twin brothers admit to a few disagreements when they roomed together as freshmen at the University of Rochester. But they say they've been able to get along in the boardroom by dividing the work and recognizing each other's talents.

They attribute their work ethic and sense of responsibility to their mother, Myrna, who ran a dairy and milk delivery business in Ontario.

At an early age, Norman and Nelson worked with her, selling ice cream and running the business.

"She believed in people and worked very, very hard," Norman said.

Humor is key to their management style. Nelson has shown up at annual meetings decked out in a graduation gown or wearing a computer monitor on his head.

Ask which twin is older, and Nelson will point at his brother.

"I'm amazed you even had to ask," he deadpans.

"Poking fun at yourself makes you more accessible."

Outside of work, the brothers compete fiercely on the golf course, Tait said.

"There's a bit of sibling rivalry there," she said.

They feel lucky

The brothers' easygoing style has earned them a communitywide reputation as honest businessmen who are well liked, August said.

"I'd trust them with anything they'd ask me to do," he said.

"You never hear a bad thing about the Leenhouts," Russell said.

Both Nelson and Norman are coy about what they'd like to see Rochester look like in the future. They say they want to see the city as a vibrant hub of a successful area.

"We need to keep our young graduates here," Norman said.

Developer Stern says he expects more activity from the brothers.

"They're a couple of men who feel they have a responsibility to give back to a community that has given them so much," he said.

But the Leenhouts say they've learned predicting the future can be a tough job. After all, they say, they never would have guessed they would end up running a $2.5 billion company.

"We've been very lucky," Norman said.