In the competitive landscape of multifamily development, the organizational structure of a company can significantly influence the outcome of a project. Firms that integrate development, construction, leasing, and property management under one roof operate with a different set of incentives and capabilities compared to those that outsource each stage. This vertical integration often results in faster delivery and higher quality, as decisions are made with a long-term perspective.
Yuval Shram, Founder and CEO of TAY Investments, a vertically integrated real estate development company headquartered in Hackensack, New Jersey, emphasizes the importance of owning the full life cycle of a property. “When you own the full life cycle, you understand everything,” he says. “You make every decision knowing you will own the property for the long term, so you build it to last.” This approach is evident in the company's latest project, LAZUL WEST, a 202-unit development located at 301 West Side Avenue in Jersey City.
One of the primary advantages of vertical integration is the alignment of incentives across all phases. When the same team that designs a building also owns and operates it, there is no temptation to cut corners for a quick handoff. Instead, decisions are optimized for durability and resident satisfaction. This alignment removes a common source of compromise in traditional development models, where different stakeholders may have conflicting goals.
Integration also enables greater speed without sacrificing control. Because TAY acts as its own general contractor, design refinements and construction can proceed in parallel, coordinated internally rather than renegotiated through separate contracts. Shram describes this as managing a large, interconnected system with a single hand on every piece. For instance, changing a building entrance affects utilities, access, and site planning. Keeping these relationships within one organization allows the project to advance smoothly while maintaining a high standard of quality. On LAZUL WEST, this coordination allowed construction to stay on schedule while the plans were continuously refined.
The benefits of vertical integration extend well beyond the construction phase. TAY's leasing and management teams are involved in the design process, ensuring that the building is tailored to how residents will actually use it. “Our leasing agent will look at the plans and tell us where we can make them better,” Shram notes. “She might say a layout needs more walk-in closet space, because that is something residents value, so we build it in.” This collaborative approach also led to the early inclusion of electric-vehicle charging stations, a feature that the operating team knew would be in demand. “Those small touches are what create the value of a building,” he adds.
As development expands into emerging sub-markets like Jersey City's West Side, the ability to control quality end to end becomes a genuine differentiator. A developer that builds and operates its own assets can maintain consistent standards from the initial blueprint through years of management. LAZUL WEST, now delivered and leasing, exemplifies this approach, showcasing how vertical integration can lead to a product that truly reflects the developer's vision.
