When Michael A. Mouron graduated from The University of Alabama in 1972 and began his career as an accountant, student housing was the farthest thing from his mind. But in 1980, he began working in development for a construction firm in Montgomery, Alabama, and became aware of a new model of condo that was housing for college students but an investment for their parents. Little did he know that this experience would plant a seed that eventually grew into Birmingham-based Capstone Development Corp, whose “leased by the bed” model of student housing revolutionized the business.
Mouron became the head of the development arm of Birmingham firm Polar BEK in 1985 and began building apartments near college campuses, which were easier to finance than condos. He worked for Polar BEK for five years but left in 1990 to launch his own development company, along with three other co-workers. The company, Capstone Development, focused on college student housing.
Capstone began its management operations in 1991 when it rolled out the “lease by the bed” model. Unlike traditional arrangements, where students and parents are responsible for the entire leased unit, this new model made them responsible only for one bed. This way, if one or more of the residents defaulted on the rent, the others would not be liable. Because of the success of this model, Capstone grew rapidly. From 1990 until Mouron’s retirement as chairman in 2012, Capstone developed about $3 billion in student housing communities both off and on campuses.
When Mouron retired, he divided Capstone into four “successor companies,” with ownership given to the various division heads — his family retained ownership of one. However, retirement did not slow him down much. He began investing in real estate projects that interested him personally. For instance, he bought a vacant building in his hometown of Mountain Brook, Alabama, renovated the property then leased it to Little Hardware, a Mountain Brook staple. He renovated the Federal Reserve Building in downtown Birmingham. Then, in 2021, he developed the Valley Hotel in Homewood, Alabama. He also restored the historic Birmingham Greyhound bus terminal, where the Freedom Riders once disembarked during the Civil Rights movement.
A strong sense of civic duty caused Mouron to establish The Mouron Family Foundation. He is a member of The University of Alabama’s President’s Cabinet and UA’s Adapted Athletics Board of Visitors. In 2017, Mouron and his wife Kathy made gifts totaling $4 million to support the construction of Stran-Hardin Arena, a $10 million multi-purpose facility for the University’s Adapted Athletics program. Furthermore, the couple are co-chairs of UA’s $1.5 billion Rising Tide capital campaign.
He also supports many other organizations, including serving on the boards of First Horizon Bank Birmingham, the City of Mountain Brook’s Planning Committee, and the Lakeshore Foundation’s Advisory Council.
Mouron married Kathy Neugent in 1976, and they have three sons: Drew, Christopher, and Lewis, and eight grandchildren.
