The Rise of Multifamily Tech Services Companies

The rise of technology—from fiber infrastructure to television services to cell tower leases—has spurred growth in the niche industry of ancillary services groups. Multifamily Ancillary Group, which provides expertise and contract management and negotiations for all multifamily ancillary services, is expanding its team to better service clients across the country. The Irvine-based firm has hired Marcelino Tito Estrada as regional VP. In the new role, he will lead telecom and cable contract negotiations, project management, utility billing and recovery, client relations, and business development, according to the firm. We sat down with Estrada to talk about his new position at the firm, why this is an ideal time for expansion and where the ancillary services business is headed.

GlobeSt.com: Tell me about the company’s expansion, and why this was a good time to expand?

Tito Estrada: MAG has been doing business at the national level, but they haven’t had a lot of team members to incrementally growing the business. So, we are not necessarily growing our footprint, but we are expanding our team. The company is adding experienced, tenured representatives. There has been a lot of consolidation in our industry. For example, Comcast has acquired Adelphia; Charter acquired Time Warner; then ATT&T acquired DirectTV. You can see all of this consolidation, and so your big incumbent providers start to streamline their processes as they integrate these new companies. That is an opportunity for someone like me to reach out to a particular client that doesn’t have the breadth of knowledge that I do. It is a much more complex conversation, and I can come in with my experience about fiber, fiber overbuild, infrastructure, and I can break it down. I think that is why it is a really good time for someone like me with this kind of experience. On the multifamily side, this is a very niche industry.