
Alfred has made its first acquisition in the property management space. The residential management platform has announced the strategic acquisition of Charlotte, North Carolina-based RKW Residential, a fast-growing property management firm in the Southeast. In addition, it has raised a strategic financing round led by Rialto Capital with participation from NEA, 166 2nd Financial Services, Holland Management, and others.
According to the technology company, the acquisition will speed the adoption of its Alfred Operating System (AOS) to RKW's 30,000 single-family and multifamily rentals, which are located in strong Southeast growth markets like Atlanta, Charlotte, and Miami. RKW, which launched in 2014, has a portfolio that is comprised of 90% Class A units, including 2,200 single-family rental units. With this acquisition, Alfred’s portfolio extends to more than 300,000 residents in 44 cities across the U.S. and Canada; it also has planned expansions in Asia, Europe, and Israel.
"No matter what end of the real estate spectrum you're on—owner, operator, or resident—you want more for your money," said Alfred co-founder and CEO Marcela Sapone. "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."
This marks Alfred's fourth acquisition. It previously had acquired wellness and events platform HOM; Bixby, a property management technology essential to developing the AOS platform; and on-demand service platform WunWun.
"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 an initial closing of $50 million and access to up to an additional $75 million for future acquisitions, also was joined by Greystar founder and CEO Bob Faith, Grubhub and Seamless founder Jason Finger, and RKW co-founder Jay Massirman.
AOS will continue being available to all Alfred partners. According to the company, the AOS residential management software provides owners and operators with one-stop support for all aspects of residential living, including resident management and communication, management of on-site operations and maintenance, payments, and community and resident wellness amenities.