Biz Profile: Preparing to take reins of the family business

PULLMAN — The eldest Brelsford daughter has joined her family’s business at a time when its strategy is being shaped by two important trends.

Enrollment at Washington State University in Pullman has dropped following patterns at higher-education institutions across the county while demand for housing for middle-class families has soared.

The Brelsfords are seeing that 50% or more of their units in the private apartments they originally developed for WSU students are occupied by community residents not enrolled at the school, including professionals and families.

The change is occurring as Nicole Morscheck, the eldest daughter of K. Duane Brelsford and Terri Breslford, and Nicole’s husband, Travis Morscheck, have taken positions in the family’s business.

The 38-year-old is the general manager of all of the real estate assets. He is the executive vice president of DABCO.

They were working for Nike in the Portland, Ore., area for more than a decade before returning to Pullman.

Eventually, the Morschecks will manage all of the properties owned by the Brelsfords and their partners, including apartments and commercial properties, so the Brelsfords can complete their transition into retirement.

The Brelsfords have shaped the landscape of the community, supporting WSU and Pullman with equal enthusiasm.

They’ve completed 1.6 million square feet of commercial and residential developments in Pullman, the Tri-Cities and elsewhere. They’ve also donated generously to WSU.

I spoke with Nicole Morscheck and Duane Brelsford in person and by email about their family, their deep ties to Pullman and WSU, the family companies, her time at Nike, what brought her back and how she’s adjusting to her new career. The edited highlights of the conversations are as follows:

Elaine Williams: Nicole is the fourth generation of the Brelsford family living in Pullman, raising her sons with husband Travis. The whole family has close ties to WSU. What is important about that history?

Duane Brelsford: My grandfather worked for WSU as a plasterer and my grandmother worked for WSU in the kitchens. My parents graduated from Pullman High School and have always been big supporters of WSU. My dad constructed houses and apartments in Pullman. I earned my degree at WSU. I was a cheerleader and a walk-on player for the football team, but I never played in a game.

I got my start in real estate development to pay my tuition at WSU. My dad co-signed a loan so I could build a house in the summer. We split the profit 50-50. My first apartment complex in Pullman was one I built with my dad and Motley Motley Partners. It had 216 units and opened in 1994. We have made numerous donations to WSU, including for the Brelsford Visitor Center and athletics.

EW: How is the business structured now?

Nicole Morscheck: My dad is the CEO and president of Corporate Pointe Developers, a development company that constructs new buildings and manages buildings. I’m the general manager of all the real estate assets, which consists of more than 13 corporate buildings, two management companies — Corporate Pointe Developers and DABCO Property Management; five movie theatres and roughly 25% of the Pullman apartment market share. My parents own Apartment Properties with other partners. Apartment Properties has about 2,200 apartments in Pullman and the Tri-Cities. My dad is also 45% owner of DABCO, the company that manages the apartments. Another 45% is owned by my dad’s sister and my aunt, Tracie Brelsford, and the remaining 10% is owned by Pete Chittenden, DABCO’s COO (chief operating officer). DABCO is named after my grandfather, Duane Arthur Brelsford, who founded it with his wife and my grandma, Esther Brelsford. Our goal is for my mom and dad to retire in one to two years.

EW: Nicole, how much did your family’s traditions influence your choice to attend WSU?

NM: We joke in my family that you learn the Cougar fight song before the birthday song. We were born, bred and raised as Cougars. My dad serves on the WSU Pac-12 advisory committee. I traveled with the football team and him to all the Pac-12 schools. I also had a chance to be on the track team at Whitworth University in Spokane. So while I did explore these other opportunities, they didn’t seem better than the experience I would have at WSU. I was right. From my first dorm room, I could see my parents’ house, but I felt completely separated as a student. When you go to WSU, you’re on an island. That’s why the community and friendships you build at WSU become so strong and lifelong. There is no other college experience like it.

EW: What were some of your first experiences with the family business?

NM: I took pictures and helped build the original Corporate Pointe Developers website. I worked at the front desk of the apartment leasing office and on the cleaning staff in the summer helping prepare apartments for the next round of tenants.

EW: How did you land employment at Nike?

NM: I graduated during the Great Recession in 2008 and found a paid internship at Oregon Health Science University in public relations and web development, which turned into a permanent role. Nike was nearby and I began doing external temporary work for the company. First, I was responsible for billing and cresting logos for Nike Golf for clubs such as Pebble Beach, Oakmont and Augusta. Later, I worked for Nike America Real Estate where I did lease administration for all of Nike’s holdings, including NikeTown, Nike Factory Stores and Cole Haan, a shoe brand as well as the apparel lines of Hurley and Umbro. I became incredibly familiar with 80-page lease documents. My first full-time job was in the global division where I was in the center of product creation creating UPC codes for men’s women’s and kids’ graphic T-shirts and hats. I worked with sourcing, product creation managers, developers, factories and designers.

EW: What other kinds of work did you do at Nike?

NM: I had six jobs in the 14 years I was at Nike. Most were in merchandising and buying. I worked in global, Asia Pacific, Latin America and North America, across digital, third-party platforms and stores. In my career, I worked the entire lifecycle of product, from product creation to the end where the last products are sold at Nike value stores. The people and the culture are what kept me there so long. I also loved the balance between art — fashion and trend and science — pricing and meeting financial goals. In merchandising, you’re given financial targets. You have to meet or exceed them with the right product for the right place and time. You have to understand the consumer and tell the story and sell the product in a number of ways. At Nike, it involved providing solutions for athletes on and off the court through performance and lifestyle products. You want to ensure you have the inventory and assortment on the floor and online for key moments. In North America, that’s around Christmas and back to school. In China, it’s on 11/11, a November holiday when single people treat themselves to gifts. In Mexico, you stock speciality items for Dia de Muertos, a time in early November when families honor family and friends who have died. In Korea, it’s White Day on March 14, similar to Valentine’s Day where men give presents to women. I love merchandising. There are parallels between it and running a real estate business. You need to know your consumer, fill a need and ensure financially you are running a profitable business.

EW: What brought you back to Pullman?

NM: One of the biggest reasons was to be closer to family. Both sides of our family are in the area. My husband, Travis, and I have three boys, Landon, 11, Casen, 8, and Jayden, 5. We look forward to our parents and cousins being more involved in their lives. Career wise, I also had a choice. I knew that if I continued to climb the corporate ladder, I would have to either hire a full-time nanny or my husband was going to have to quit his job. I could not maintain the level that I needed to continue to grow in that environment. I looked in the mirror and realized this is not what I want. I want to be more involved in my children’s lives. Then my parents said, “Hey, would you be interested in moving to Pullman, learning the business and taking it over?” I thought, “I have pretty good experience, growing business and driving results.” I knew I would regret not trying to work in the private sector. We decided to give it a try. We just realized for this next chapter, let’s slow down our pace a little bit, raise our kids in an academic- and sport-oriented community, and have more balance and control of our schedule. We want to help and share the knowledge we have gained working in this large, international business with the community that we grew up in. Everyone who grew up here knows it is an incredible place to raise kids. We can’t wait to give back.

EW: What’s your leadership style?

NM: There are people on the team who have been doing this for 20 years. I want to make sure that they see me as someone that can support them and learn from them. I’m always going to come from a place of trying to solve problems together. By no means do I have all the answers. I love diversity of thought and experience and believe those teams are the most successful. Everyone’s an expert in their own field, whether it’s financing or operations. My goal is to bring them together, focus on the priorities and successfully accomplish our goals together.

EW: How would you describe the market and what adjustments are you making?

NM: We are working on University Crossing, an apartment complex at 1490 NE North Fairway Road, which will have 528 units when all three phases are complete. It’s our largest apartment complex yet. The first phase with 207 units opened this year. But the remaining two phases are on hold. There is more competition than we’ve ever seen. Supply is far ahead of demand. When the team started these buildings, it was estimated that there would be higher enrollment than there is today. We’re learning nationally that higher education is not as popular as it once was. Enrollment has fallen across the nation for a multitude of reasons. Corporations like Nike, for example, hire employees right after they finish high school and pay $20 to $25 per hour, plus tuition. So not only are universities competing, they’re competing against corporations. The market is full, specifically in Pullman. Enrollment has dropped in the last few years at WSU, but this year freshman enrollment is up. We’re hoping that continues, that the drain has stopped and we’re starting to see the upside.

EW: On the commercial side of the business, what’s in the pipeline?

NM: Supporting the community and finding tenants for a couple of different buildings is our current focus. This fall, we hope to break ground on 435 Brelsford Drive building, which has 10,000 square feet of space near national chains such as Walmart, Chipotle Mexican Grill and Starbucks. We have retail spaces starting at 1,410 square feet, going up to 5,893 square feet. Potential tenants include offices, restaurants and coffee shops as well as nail or hair salons. We’re looking for more commercial tenants for the first floor of University Crossing near Knead Cafe & Patisserie. We have 26,000 square feet that could house a grocery store, restaurant and other small businesses.

DB: We’re also planning to build Brelsford Office Building, also known as BOB, that’s 80,000 square feet that will house medical offices. It will support the expansion of Pullman Regional Hospital. Additionally, we have a 10-acre parcel called South Pointe, which is planned for commercial development. Our focus is to continually analyze the market, connect with WSU and the Pullman community and make sure there is demand for these projects.

EW: You recently made a difficult decision to close the movie theater in Pullman. What more would you like to share about what’s happening on that front?

NM: It wasn’t possible to continue to operate with an admission tax in the city of Pullman and the increase in Washington state’s minimum wage. The admission tax is for tickets and is a tax local governments in Washington state have the option of imposing. In Pullman, most of the revenue it generates comes from tickets for events at WSU such as football games. Our Village Centre Cinemas in Moscow and Lewiston don’t have this admission tax, nor as high minimum wages. They’re both performing better. But we are looking at potentially two interested buyers who would operate the Pullman theater in the future.

EW: In the long term, what kinds of new development would you like to see in Pullman?

NM: It would be great to have inside places where families could go for a meal and the parents could have adult conversations and drinks with their friends while their children played. I would like to see more women-owned businesses. There’s a need for stores that sell professional clothing for young adults. I’d also like to see places that offer group barre and Pilates classes.

EW: What are telephone numbers to call to inquire about commercial properties or apartments?

Corporate Pointe Developers at (509) 334-4700 is the place to call about commercial properties. DABCO Property Management at (509) 334-6266 and University Crossings at (509) 715-2270 are the places to inquire about apartments.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.

Nicole Morscheck

General manager and property owner representative of Corporate Pointe and DABCO.

Education: Graduate of Pullman High School; bachelor’s degree in communications from the Edward R. Murrow School of Communication at WSU.

Age: 38.

Family: Married to her high school sweetheart, Travis Morscheck. They have three boys, Landon, 11; Casen, 8; and Jayden, 5.

Civic involvement: Palouse Young Life Committee, PTA, supporting WSU and her sorority, Kappa Delta.

Hobbies: Bicycling, yoga, snow skiing, paddle boarding, cheering on her husband who coaches their sons’ flag football teams, attending WSU athletic events and traveling internationally.