Industry Profile:
Karen Harrison
President, K & D Group
Karen Harrison has already ascended to the stratosphere of multifamily housing and commercial development in northeast Ohio. Together with partner Doug Price, Harrison's K & D Group is investing nearly a half billion dollars in several high-profile downtown Cleveland redevelopment projects. This is on top of the nearly 13,000 apartment homes the duo has purchased over the past 25 years, a number that makes them the region's largest privately-held owner. K & D's past is nearly as fascinating as their future promises to be. As the company continues growing, those who know their beginnings marvel at how she and Price got to where they are today.
The year was 1984. Karen was working as a purchasing agent at a Cleveland-area manufacturer of MRI machines. Her then husband Doug was the sales manager of an electronics company. When Karen's employer was sold, she accepted a buyout offer, Doug left his company as well, and they set off to do something bigger. After watching a late night "No money down" real estate pitch infomercial, Karen talked Doug and another couple into attending the free introductory seminar. After the two hour presentation, the couple's guests left mocking the event. They were shocked to learn on the car ride home that Harrison had already written a $1,200 check to attend the upcoming full-weekend seminar. She was confident she did the right thing, despite her friends' laughter. It turns out she was right.
The Prices left their seminar wanting to try their newly-learned techniques, so they soon visited a building that was for sale so they could "practice". Practice quickly became the reality as they bought the building, a six suite property in Mentor with three small storefronts. "It was a severely neglected property built in 1873," Harrison said. "We spent months of nights and weekends renovating and improving the property, before moving in." Soon afterward they purchased another property, a 14-suite residential property in Painesville, and the 27 year old found herself addicted to the property business. "We didn't purchase any property without money down," Harrison said of K & D's beginnings, "but the seminar was still the springboard we needed - it was a trigger." Purchases grew larger, and the company eventually acquired several larger properties on Lakeshore Boulevard in Euclid that became the cornerstone of K & D Group's holdings.
The couple divorced twelve years into the partnership, but that didn't get in the way of the company's growth. "We were married for twelve years and divorced for the last sixteen," Harrison explained, "It didn't change our roles within the company." And just what are those roles? Harrison says that Price is the visionary and deal-maker, and has always been the public face of the company. She considers herself more of a detail-oriented leader who keeps a constant eye on the company's operations, including their 475 employees. "It's a complimentary partnership. Doug is very excitable, and I'm the voice of reason," she said with a laugh, "Our differences are the reason the company is successful." K & D considers the well-being of every employee when making business decisions. "And every employee's contribution is important to our company," said Harrison. The company recently embarked on a downtown Cleveland buying and building binge, part of which will keep the hammers pounding for the next few years. Besides the Embassy Suites at Reserve Square, Reserve Square Apartments, and Stonebridge complex in the flats, the company also purchased the Atrium office building at 668 Euclid Avenue to create apartments, retail and commercial space. They also bought and are redeveloping the Ameritrust Complex at East Ninth and Euclid. Part of that development is a Hotel Indigo, a boutique brand of InterContinental Hotel Group that will provide the region with 140 upscale rooms and occupy the first twelve floors of the complex.
When asked if all of this downtown development is a gamble, Harrison replied, "We're betting on Cleveland's bright future. Cleveland is headed in a positive direction." She added, "I'm encouraged by all of the other developers and the many projects going on in Cleveland right now. K & D's projects are truly Cleveland projects, developed by a Cleveland company, and we're committed to hiring all local trades."
Harrison's personal life is as fulfilling as her business. Besides enjoying all the work she puts into K & D, Karen is fully committed to raising her seven year old son, Colin. She's also learning to fly, taking lessonsevery week and making time to get away from the day to day and recharge her battery. Considering everything Harrison and Price have build over the past quarter century and what they're poised to do in the near future, one couldn't help but wonder, does the pair still use any of the techniques learned at the "no money down" seminar? Harrison paused for a moment, and then said, "We learned that in any deal, everyone should win. That is still our philosophy."