California-based PURE Property Management has raised $50 million in financing for its residential and property management consolidation model through growth equity firm, Level Equity. With fresh funding in the bank, PURE is now valued at over $300 million.
Launched in October 2020, PURE began with $25 million seed capital from friends and family before it began the process of rapidly consolidating independently owned property management companies. PURE has since completed 28 acquisitions in its “band-together-build-together” strategy.
Under its business model, PURE works to acquire single-family residential property management companies and then invests in their people and processes. Rather than build the tech, PURE works to see which tech is working best for certain business strategies and then helps to implement it across its other acquisitions based on their needs.
So far, PURE has acquired, and now oversees, companies in Alabama, Arkansas, Arizona, Georgia, Iowa, Minnesota, Nebraska, North and South Carolina, Oklahoma, Texas and Washington. The bulk of its business, however, rests in California.
“Too much emphasis is placed on the ‘tech’ while lacking the ‘prop’ experience to design and deliver genuinely useful solutions,” said Joseph Polverari, PURE’s co-founder. “We’re not here to disrupt or reimagine anything, just solve the real problems that our property managers, residents and owners face every day, with a laser focus on tech-enabling and automating process workflows.”
Prior to PURE, Polverari helped lead corporate development and strategy at Yodlee, a financial data aggregation and analytics platform, through its IPO in 2014 and subsequent acquisition by Envestnet.
Michael Catalano, PURE’s co-founder alongside Polverari, noted the company is aiming to place itself as the largest third-party residential property management company in the U.S. In October, PURE announced it had grown to over 100 employees, and held over 10,000 doors under its management within its first year of operation.
“PURE’s incredible financial momentum, technology, and exceptional management team make this investment compelling,” said Ben Levin, Level co-founder and CEO. “We’re excited to contribute our capital, expertise and experience towards another enormous and fragmented real estate submarket with significant demand for efficient, innovative customer experiences.”
Level Equity was one of the first institutional investors in Vacasa (NASDAQ: VCSA), a tech-enabled vacation rental property management company, and Leonardo247, an on-site performance and operations management software for the multi-family market.