Sentral, a full-service multifamily management company offering any length of stay, has acquired Align Residential, a national management firm focused on innovative residential experiences.
Hospitality-focused Align Residential designs and manages best-in-class residential assets offering year-round, vacation-style living through curated services and amenities, including membership clubs, restaurants and bars, gyms and wellness spas, resort-style pools, artistic-driven events, and concierge services.
The combined company will leverage the best practices from both multifamily and hospitality operations to maximize net operating income (NOI) and reputation for Class A building owners.
Sentral now will be active in 15 markets, with the acquisition expanding its footprint to add Oakland, California; Philadelphia; Pittsburgh; San Francisco; and San Jose and Santa Monica, California, markets. The combined firm manages over 10,000 apartments in 40 communities with a value of $5 billion.
“This acquisition positions Sentral as the leading full-service management company offering any length of stay—from a night or a quarter or a traditional 12-month lease,” says Jon Slavet, CEO of Sentral. “In this market, what we hear owners want over and over is to maintain control but also to find more yield and more NOI.”
Slavet says Sentral has been delivering 10% to 15% NOI lifts for Class A owners compared with traditional operating multifamily community pro formas. With the acquisition, he anticipates 15% to 20% NOI lifts.
As part of the acquisition, Roman Speron, formerly the CEO of Align Residential, will join Sentral as chief development officer. He will oversee business development, design and construction, hospitality, and joint-venture partnerships.
“The convergence of hospitality and multifamily has been steadily growing as renter needs and expectations have evolved and become more dynamic. Flexibility, customization, and curated amenities for living and working are essential in today's urban markets," notes Speron. "This is the next chapter for Class A living, and I look forward to bringing Sentral's model for success to multifamily.”
This acquisition comes after a strong 2022 for Sentral. Last year, it entered into a home-share platform agreement with Airbnb to enable its residents to earn while traveling. It also entered into development agreements with OliverBuchananGroup, targeting communities in Austin, Texas; Dallas; Denver; Nashville, Tennessee; Phoenix; and San Diego, and PMG, with a flex-living community in Miami.
“There’s a new consumer that owners want to attract that stays between one and 70 nights. It’s a great complement to the foundation of the 12-month lease. Attracting that customer speeds the time to get leased up, increases NOI, and creates more demand,” Slavet says. “What’s next for us is a lot of organic growth this year and next year.”