LIBN: Keeping it in the family: running a multi-generational real estate company

JARED SCOT, LIBN CONTRIBUTING WRITER //August 1, 2024

For businesses In highly competitive industries such as real estate and construction, building trust is crucial for survival. That’s why many of Long Island’s premier development and construction firms are multi-generational businesses. These legacy companies with long histories and proven track records have found that family ties bring success and staying power.

Breslin Realty Development Corp., a commercial development firm, was established from another family business; a fruit and vegetable store in Hempstead owned by Wilbur Breslin’s father. Their expansion into real estate came from young Wilbur’s keen observation of an emerging trend on Long Island.

“In the mid-1950s, he warned his dad when he saw a change coming—a shift in preference from Main Street retailing to suburban shopping centers,” explains Ken Breslin, principal at the Breslin Organization in Garden City. “Dad decided he would move on from selling fruit and vegetables and went into the real estate business. He first sold homes, then advanced to gas stations, 7-Elevens and shopping centers.”

The shift was profitable, and led to Breslin becoming one of the premier shopping center developers on Long Island and in the tri-state area. “Dad’s attention to strategic locations, access and parking allowed him to invest in what are today some of Long Island’s premier retail shopping centers,” Breslin says.

The firm has developed more than 30 retail centers and, today, manages over 8 million square feet of commercial real estate in five different states. However, Breslin notes, their success over more than half a century depends on more than their name. “While reputation is important, producing and delivering high-volume retail facilities will always keep customers answering our calls,” he says.

Seeing opportunity in building homes on Long Island, Michael Dubb founded the Beechwood Organization, a residential development firm based in Jericho, in 1985. The company grew steadily for decades, but after encountering challenges brought about by the financial crisis, Dubb decided he would ask his son, Steven, previously of Credit Suisse, to join him at Beechwood to help grow the company.

His son brought fresh ideas and influenced the company to widen its scope. “Since Steven joined Beechwood in 2008, he’s been a contributing force to the company’s expansion from residential home builder to diversified real estate developer,” Michael Dubb explains. “We’ve grown through his talents for overseeing new projects, creating new revenue streams and entering new geographic markets.”

Like social relationships, business relationships depend on the character of the individuals involved, and family succession helps to maintain the dynamic between a legacy business and its customers through generations. “I hear people say, ‘Steven is so much like you—he has humility in his interactions and a strong work ethic,’” says Michael Dubb of his son, Steven. “The next generation of ownership must also work harder than the previous generation. Hard work earns people’s respect.”

Succession is particularly important for real estate companies, Dubb says, in order to account for the lives of developments, which extend beyond our own lifetimes. “When we build, it’s important that the planning for it takes into account its use and impact on future generations,” he says. “We look at the impact of what we build not just for first occupancy, but where it will be 15, 20, or 30 years down the road—when the responsibility for it will be in the hands of the successive generation.”

In addition to the benefit of earning clients’ trust, legacy family businesses often excel at retaining employees, who are likely to see well-established companies as better options for long-term employment. “People don’t want to change companies if they’re happy with where they are and what they are doing,” Dubb says, “so while employees see the founder of their company getting older, they also know there is stability as the next generation will be taking over.”

Frank Vero, Jr., agrees that in the industries of real estate and construction, a family succession plan is essential for maintaining customers’ trust in the long term. “Without a clear succession plan,” he says, “a family business risks facing uncertainty and potential conflicts, which can disrupt operations and diminish the trust and confidence of clients, employees and stakeholders.”

He is now the CEO of Aurora Contractors, founded in 1983 by Frank Vero, Sr., who ran the nascent company from his parent’s garage on Long Island. Vero Jr.’s brother, Anthony Vero, serves as president of the firm. A few notable early projects, including the World Trade Center and Roosevelt Field Mall, earned the company considerable recognition, helping the firm to expand and cementing their reputation in the industry.

Today, with over 50 employees, Ronkonkoma-based Aurora is a leading New York metro area construction management, general contracting and design/build firm.

Having weathered significant setbacks, such as the aftermath of 9/11, the 2008 financial crisis and COVID, Vero, Jr. believes their longevity can be attributed to the relationships they have developed and maintained with customers, subcontractors, suppliers and officials.

“Aurora’s long history and established reputation provide a sense of stability and reliability that our clients and partners value deeply,” Vero, Jr. says.

While honoring a strong system of values within a multi-generational company can strengthen the bonds between families, leaders of family-run businesses must maintain their lives at home along with their careers. “A family business runs 24/7,” Breslin says. “The lines of business and family time are often blurred, and maintaining a family-owned company requires a balanced commitment to both family and business.”

Vero, Jr. explains that while navigating a balance between home and business requires careful planning and open communication, the joy of running a successful company with one’s family is worth the stress it may cause. “It’s essential to have clearly defined responsibilities to prevent overlap and confusion,” he says. “Despite these hurdles, the sense of shared purpose and commitment often outweighs the challenges, making the journey both rewarding and memorable. Plus, who else can you trust more than family to have your back when times get tough?”