Residential management platform Alfred (formerly Hello Alfred) has just announced the acquisition of RKW Residential, a property management company with 30,000 single-family and multi-family rentals in the Southeast. Money for the purchase came from a funding round led by Rialto Capital and had notable investors including Greystar Founder and CEO Bob Faith, Grubhub/Seamless Founder Jason Finger and Co-Founder of RKW, Jay Massirman. Fifty million dollars of the $125 million raised will be used to cover the cost of this acquisition and the remaining $75 will be reserved for future acquisitions.
Alfred already serves over 147,000 units in 44 markets and acquisitions like this are sure to increase that number rapidly. I spoke to Alfred co-founder Marcela Sapone about this decision: “We now have the right DNA to serve the industry and be truly transformative and innovative,” she said.
When asked if they considered themselves a technology company or a real estate operator, she explained: “We are not an old real estate company trying to become a technology company. We are not a sales-driven organization that builds disposable technology. We are now a pure mix of technology companies and real estate experts and our roadmap is deeply focused on building and implementing features that drive automation, efficiency and data collection that help actually the residents.
A focus on the resident experience has always been Alfred’s hallmark. They started as a residential concierge service, but expanded into property management software with their acquisition of Bixby in 2019. Creating an operating system for a building was Alfred’s focus for the past few years. , they call their platform AOS, but now they have to see managing the properties themselves as a way to grow their platform and their impact on residents.