Locally based RKW Residential, one of the Charlotte region's fastest-growing companies, has been acquired by a residential building management startup out of New York City.
Alfred, also known as Hello Alfred, announced the acquisition yesterday at the same time it revealed a $125 million strategic fundraising round. That round included a $50 million initial closing and access to as much as $75 million more for future acquisitions. It was led by Rialto Capital with participation from NEA, 166 2nd Financial Services, Holland Management, Greystar founder and CEO Bob Faith, Grubhub/Seamless founder Jason Finger and RKW co-founder Jay Massirman.
The companies declined to disclose financial terms of the acquisition.
RKW is a multifamily property management firm that launched here in 2014. It manages some 30,000 single-family rental and multifamily units across seven states, including more than two dozen properties across the Charlotte region.
Headquartered in the SouthPark area, RKW also has regional offices in Miami, Orlando, Florida, Raleigh and Atlanta. The company employs 400 workers and is led by Marcie Williams, its president.
RKW recently earned a spot on CBJ's latest list of the area's largest privately owned firms, based on average annual revenue growth over a three-year span. It averaged a 33.28% growth rate from 2018 to 2020, coming in at No. 37 on the Fast 50 list.
The firm also places among Charlotte's largest commercial property management companies, ranking as eighth largest with 7.38 million square feet managed locally, according to CBJ research.
RKW will continue to operate as a separate entity and will not undergo a name change or relocation as a result of the acquisition, a company spokesman said. Williams will be promoted to CEO of RKW and will join Alfred's executive leadership team.
The acquisition will give RKW access to Alfred's residential management software, while deepening Afred's presence in key Southeastern markets where rental demand is surging, the companies said. Alfred, which offers a concierge-like service to renters, currently serves more than 143,000 units across 44 markets in the U.S. and Canada.
It will also give Alfred access to more data focused on the full lifecycle of a renter.
"No matter what end of the real estate spectrum you're on — owner, operator or resident — you want more for your money," said Marcela Sapone, Alfred's co-founder and CEO, in a news release. "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."
Alfred's software, called AOS, or Alfred Operating System, gives multifamily owners and operators a more unified management platform that's built around the renter. That includes resident management and communication, management of on-site operations and maintenance, payments as well as community and wellness amenities.
"Multifamily has historically lagged other industries on the adoption of technology despite the fact rent is the largest bill renters pay each month," the companies said in a statement. "Increasingly renters expect a seamless experience fueled by technology that matches their interactions with other brands. For RKW, leveraging the Alfred technology and resident experience platform will create more value for clients and residents."
The companies expect to add new roles to support growth from expansion to new markets.
The RKW acquisition marks Alfred's fourth overall. Founded in 2014 by Sapone and Jessica Beck, it acquired New York City-based wellness and events platform HOM last May. Prior to that, Alfred bought property management technology provider Bixby and on-demand service platform WunWun.
