PURE Property Management today announced its 50th acquisition since its launch in October 2020, including 20 completed transactions within the first half of 2022, according to a press release.
“The real story here isn’t about the number of acquisitions, but rather the quality and experience of the people joining us,” said Michael Catalano, PURE’s co-founder and General Partner, in the statement.
“Experienced owners, while technically selling to PURE, are staying on and joining in our mission to band together and build together innovative product and service offerings at scale,” Catalano said.
The California-based proptech company’s consolidation model works to acquire property management companies, investing in their business. They then evaluate which technology works best in the long run and circulate the tech to its other acquisitions based on their needs.
PURE offers its playbooks and technology to this network of property management companies. It currently operates in 300 cities across 23 states. These acquisitions are fueled by its recent $50 million fundraise for its consolidation model through the growth equity firm, Level Equity. It brought PURE’s valuation to more than $300 million, as reported by FinLedger earlier in February this year.
Based on this model, property management companies can invest in PURE and look for “professional growth,” the release says. It adds that owners who exit at sale rely on the model’s career opportunities and benefits of their employees.
Thus PURE’s acquisitions are a part of its strategy to curate a team with experienced property management professionals.
PURE co-founder and general partner Joseph Polverari says the company is aiming to bring on board property managers, while providing the technology needed for their operations and growth.
“Collectively, and aided by our technology investments, we’re focused on eliminating the friction and complexities of renting a home for not just our clients and residents, but for the property managers as well,” Polverari added.
Catalano and Polverari founded PURE to overcome the complexities associated with managing and renting homes in a “highly fragmented” residential rental industry.
Jock McNeill, whose company was the first to be acquired by PURE, is now the Vice President of Partner Relations at the organization. He says the owners at more than two-thirds of the property management companies acquired by PURE joined the network from a sense of “intrigue” at what the company was doing and what theirs could be worth.
“Once they see our strategy and talk to their peers that have joined PURE, they realize that this is a once-in-a-lifetime opportunity. It never hurts to have a conversation about the future,” McNeill added.
Property Meld, a residential property maintenance software, recently partnered with PURE to integrate its automated maintenance software into PURE’s property management system, and help improve communication between tenants and vendors for maintenance requisitions.
In May 2022, PURE launched its Institutional Management, a division in the company that provides services to institutional investor clients along with their residential portfolios based in locations within PURE’s operational areas.
In other recent proptech news, real estate investment manager Nuveen Real Estate partnered with Esusu, a financial technology company to provide rent reporting access to affordable housing residents. TULU, a proptech company that provides tenants with household appliances, groceries and devices in multifamily apartment buildings, raised $5 million in a post-Series A investment round led by Regeneration.VC.