Alfred Raises $125 Million, Acquires RKW Residential

08 March 2022
(From Left) Jessica Beck, Marcela Sapone and Marcie Williams

 

Acquisition accelerates strategic expansion in Southeast U.S. and rollout of AlfredOS

Alfred, the largest residential technology company in the U.S., announced the strategic acquisition of RKW Residential, a fast-growing property management firm in Southeastern U.S. and has concurrently raised a strategic financing round led by Rialto Capital with participation from NEA, 166 2nd Financial Services, Holland Management and others.

The acquisition, Alfred's first in the property management space, speeds adoption of Alfred Operating System (AOS), the most advanced residential management platform, to RKW's 30,000 single-family and multi-family rentals in fast-growing cities including MiamiCharlotte and AtlantaAlfred already serves over 143,000 units across 44 markets in the U.S. and Canada.

"No matter what end of the real estate spectrum you're on – owner, operator or resident – you want more for your money," said Marcela SaponeAlfred's co-founder and CEO. "More service, more income, more efficiency, more community, and you want it in one seamless experience. By acquiring RKW, we can more deeply deploy technology to learn, innovate and continually elevate the rental experience for all."

Launched in 2014, RKW quickly became one of the fastest-growing property management companies in the U.S. Headquartered in Charlotte, the company's portfolio is 90% Class A units including 2,200 single family rental units, with 40% representing lease-up in core locations. They've won numerous national and regional awards including Multi-Housing News List of Top 25 Management Firms in the U.S. in 2019, 2020 and 2021.

"RKW and Alfred share a people-first philosophy. We are constantly looking for ways to help owners optimize their investments while making our properties exceptional places to live and work," said RKW President Marcie Williams. "Together with Alfred, we'll revolutionize how we approach property management, with a focus on using the latest technology and resident-focused innovation."

The funding which consists of a $50 million initial closing and access to up to an additional $75 million for future acquisitions, was also joined by Greystar Founder and CEO Bob Faith, Grubhub/Seamless Founder Jason Finger, and RKW Co-founder Jay Massirman.

With Alfred's residential management software, AOS, owners and operators have a single stop to support all aspects of residential living including resident management and communication, management of on-site operations and maintenance, payments, and unique community and resident wellness amenities. Solutions include everything from smart package integrations, digital lease signing, utility and energy management, predictive insight into health and maintenance of a building, white glove moving services, vendor and integration management, renewal boosters and resident retention offerings. AOS will continue being available to all Alfred partners.

Today on average, less than 1%* of a property budget is being put towards technology, unlike other innovative industries which invest closer to 10%*, and owners typically must manage disconnected technology options. As a partner, Alfred creates a customized bundle of technologies on top of its core offering to help owners and operators achieve their desired outcomes while eliminating the need to work with multiple technology partners.

Data shows Alfred clients benefit from increased renewal rates, faster lease-up times, above-market rents and below-market vacancies. Alfred members on average extend their lease an extra three months and communities that utilize AOS can increase net operating income up to 10% a year.

RKW is Alfred's fourth acquisition. Previous acquisitions include HOM, a wellness and events platform; Bixby, property management technology essential to developing the AOS platform; and WunWun, an on-demand service platform.