Steve Hakimzadeh Co-Founder

Residential Profile - Steve Hakimzadeh
Brand new venture is putting boutique firm on the map.
Tiffany Razzano / March 15, 2006 / The Real Estate Weekly

Just last August, Steve Hakimzadeh, principal and founder of what is now know as HH Realty Group, rebranded his company and expanded it in a move from the Upper East Side to Midtown

It was a move seen by some as a major gamble, coming as it did on the cusp of rampant speculation of a residential bubble. However, having lived to tell the tale from the real estate crash of the late 80s, Hakimzadeh said he never had any doubts it was the right decision.

"There was only a dark cloud then," he recalled. "This time around, there is no bubble, just an adjustment period with a dark cloud, but the sun is peaking through. There's a hint of optimism. You see new construction everywhere. Brokers and investors are bullish. There's a certain positivity in the air."

Born is Iran, Hakimzadeh went to high school in Switzerland and received his B.S.B.A. from the University of Denver in 1982. He planned on returning to Iran after college, but with his homeland in the throes of a revolution that would make it unsafe for him to return, he decided instead to go to Los Angeles, where he became a partner in a venture that ran a successful Persian restaurant.

Following the rest of his family, he eventually wound up in New York City and, by 1986, had teamed up with his brother, Cyrus, buying and selling buildings in the East Village under the name Big Apple Investors. The company weathered the bursting bubble of the late '80s by expanding into residential rentals.

"It wans't profitable to buy and sell at the time," Hakimzadeh said. "And it was a hard time to hold onto properties. We focused on keeping vacancy rates in our buildings low and managed to make it through relatively unscathed."

The brothers ability to beat the tide of the recession - and the insight it had given them to the rental market - inspired them to launch a new firm in 1993 called Urban Habitat. For the next 12 years, the pair grew the company to one of the most successful small brokerages in the city, cashing in on the lucrative rental market while building a reputation in the niche sales market. They also expanded their portfolio of mixed-use buildings both in Manhattan and Long Island, adding commercial brokerage to their services as they successfully leased out those properties, too.

By 2004, the brothers believed they were ready to take things to the next level. With a growing platform and their own more mature view of the industry, they believed rebranding the company would garner the attention of a wider sector of the market.

Hakimzadeh brought in an advertising agency - 4 Elbows - to create a new name and fresh campaign that would emphasize HH Realty Group's commitment to professional and personalized attention across both the rental and sales markets.

"Urban Habitat was a young, gimmicky name," Hakimzadeh said. "I think HH Realty Group conveys our commitment to the long-term and while we are pround of our past accomplishments we want to focus on our future and our ability to provide expert and personalized service in all sectors of residential real estate.

According to Hakimzadeh, the rebranding of the company has put them on the map as a medium-sized firm in a city of big fishes. "People have really been taking notice and we're getting a great response."

With an increased staff and dedicated infrastructure, Hakimzadeh has been able to focus on expanding the firm's brokerage platform while Cyrus has taken a more active role in managing the assets.

A commitment to training has helped the firm boost staffing levels from seven when HH Realty Group launched last August, to 18 and growing. "If you can recruit and train, you're well ahead of the game," said Hakimzadeh.

"We want our agents to be knowledgeable and on top of the market. So many brokers promise new agents training, but training is not just training them for a week or two. You need to constantly infuse them with information about business."

With expertise in both sales and rentals, Hakimzadeh's goal is for HH Realty Group to be a full-service company, people's go-to office. He explained, "I'd like people to think of us as a residential firm that not only does sales, but is well-equipped in the rental market, which gives us an advantage."

With 20,000 to 30,000 residential units hitting the market over the next few years, Hakimzadeh predicts that the current rental squeeze in the city could compel many developers to convert many of those condos to rentals, an opportunity that HH Realty Group is poised to take advantage of.

All going according to plan, Hakimzadeh plans to further expand HH Realty Group and, by 2007, add a second office either in the Financial District or Soho. "More and more, you're going to see developers going down there," he said. "The trend has been that the downtown areas are more popular in terms of rentals. Now, even in terms of new development of condos, the're very popular. All the young kids want to be in the edgy areas. They're more interesting and exciting."

With more and more people making their way to Brooklyn and the immediate Queens area, such as Long Island City, and the South Bronx emerging as the next big area, Hakimzadeh has ambitions to open two or three satellite offices, each staffed by up to 30 agents and serving to promote the brand at the retail level.

Hakimzadeh also has big plans to go after new residential constructions and hopes to begin pitching to several developers as early as this spring. "We have a good core of people and are primed to go after that market," he said.

"It's exciting to be at this stage in our evolution but, with our background, we will continue to focus on developing relationships with our clients because we're in the business of relationships."