New head of National Apartment Association sees personal communication, embracing innovation as key to representing industry

Pinnegar

Bob Pinnegar was no stranger to the National Apartment Association when he became CEO of the Arlington, Va.-based organization at the beginning of the year. He previously was COO, having been recruited more than five years earlier after leading the association's San Diego affiliate.

Despite being in the number-two position, Pinnegar's ascension to the corner office wasn't guaranteed when the association's longtime CEO Doug Culkin retired in 2016. NAA's board of directors launched a search to find a new top executive, and in an interview with CEO Update, Pinnegar was candid about what an insider's prospects would have been had the $30 million-revenue association been in worse shape.

"If the organization had been on a downward spiral and I was coming into the process, I probably wouldn't be here today," he said. "That is the dynamics of board and search committees and what they are looking for."

Still, Pinnegar, 53, may be selling himself short. A former staffer for California politicians, he became involved in the association early in his career. That political experience along with his deep knowledge of the industry were two qualities NAA board Chairman Marc Ross highlighted when he announced last year that Pinnegar had been chosen to lead the organization.

His political chops will soon be put to use. Like other groups, NAA is still adjusting to the new reality in Washington, D.C., after last year's elections. What Pinnegar's association brings to the table is 170 state and local affiliates, with member businesses in nearly every congressional district.

"The conversation that we are having right now—that is worrying some organizations in D.C. because they don't truly have that nationwide footprint—is that grass roots is more important than ever before in this process," Pinnegar said. "It is going to be ‘How does this impact real people on Main Street?'"

Eastward bound

Pinnegar spent much of his early life in San Diego, gradating with a bachelor's degree in public administration from San Diego State University and landing a job in the local office of former U.S. Rep. Bill Lowery (R-Calif.) in 1989.

"It was a job that paid about $9 an hour, which was about the same as I was making in the grocery store when I was going to college," he said.

Pinnegar later worked as a staffer for two San Diego City Council members before accepting a position as a lobbyist for the San Diego County Apartment Association in 1995. He was eventually promoted to executive director of the NAA affiliate.

Pinnegar spent nearly a decade as head of the San Diego association when Culkin approached him with a job offer. Culkin, who would lead NAA for 21 years, needed a COO. Pinnegar was somewhat hesitant about the move, which would require him to relocate to the East Coast, but he also realized he needed to take the plunge if he wanted to advance his association career.

An outsider's perspective

The then-COO viewed his outside-the-Beltway experience as one of his biggest assets.

"I was able to bring that knowledge of the industry here and awareness of the mindset of the typical (apartment) owners-operators while at the same time also understanding the affiliate network," Pinnegar said. "The nature of any group in D.C. is people want to live and work in D.C., so you hire people from D.C. It's rare you are going to have someone come from out of the area unless they are a senior in an area."

Pinnegar is a believer in breaking down communications barriers. The apartment industry is a very social industry that maintains close contacts with NAA affiliates, the CEO said, and he wanted that same attitude to prevail at the national association. When he first arrived, electronic rather than face-to-face contact was the norm.

"There was one time when I went to lunch for 40 minutes and I came back and there were 14 emails on a topic," he said. "My solution was we are going to have a meeting here, because obviously you guys are not talking. We got together and took care of the issue."

Like other associations, NAA is facing a new political reality in D.C. But unlike some other groups, the association also must keep a close eye on policy at the state level. NAA maintains an Advocacy365 Action Center and related smartphone app to keep members informed about current association political campaigns and action alerts.

Tax reform, access to financing and lower regulatory barriers are among the industry issues on NAA's advocacy radar. Pinnegar believes the association's existing grass roots efforts will be a huge benefit in the current political environment.

"The organizations that are not positioned in that way are really struggling with this," Pinnegar said. "What we are doing is reaching out to our members, having those conversations, having them understand what this means or that means to the operation of their rental properties."

Politics may have changed, but in his first months as CEO, Pinnegar hasn't made any major changes to NAA. That doesn't mean transformations are not in the works. The association is exploring returning to long-term strategic planning to guide decisions rather than year-to-year planning. The group also is looking at shaking up its volunteer committee structure.

More than anything, Pinnegar wants NAA to be at the edge of innovation. He recently attended his first NAA trade show as CEO and was struck by the number of millennial attendees looking at their cell phones instead of interacting with exhibitors. His reaction wasn't to bemoan the fact but to use the opportunity to think about ways to make future events more engaging.

"It is not just on the events side, it is everything we do," he said. "Why do we do it this way? How can we do it differently? What are the trends coming down the road? Part of that is for us as staff to be a resource for the members to help them through the decision-making process."