SFR Proptech Platform Expands Multifamily Reach

SFR operator Poplar Homes has expanded its reach into the multifamily sector with its acquisition of 33 Realty’s property management, maintenance and leasing divisions.

Chicago-based 33 Realty, which has 4,500 apartment units under management in four states, did not include its investment brokerage or distressed assets division in the sale. The company also leases approximately 1,500 units.

Terms of the deal were not disclosed.

Cupertino, CA-based Poplar, operates a full-service SFR property management platform online that supports mom-and-pop SFR owners with properties in in California, Nevada, Colorado, Texas, North Carolina and Missouri.

Poplar has doubled its SFR management portfolio this year, with 14K homes under management. The company, which raised $53M in a Series B round earlier this year, is aiming to grow its SFR portfolio to 20K rentals.

33 Realty will transition its property management operations over the next three years under its current leadership and brand, eventually rebranding as Poplar Homes.

The combined companies will deploy Poplar’s growing financial support—the California company has raised a total of nearly $75M—and the economies of scale created by the acquisition to expand the platform into new markets across the US.

Proptech startups increasingly are targeting the high-demand multifamily sector with apps that allow operators to manage resident communication, on-site operations and maintenance.

Other online platforms aimed at multifamily include programs allowing residents to book apartments and request services, as well as manage payments and amenities.

In March, Alfred, one of the largest proptech players, deployed $50M it raised in private equity funding to acquire property manager RKW Residential. Charlotte-based RKW management portfolio includes 30,000 SFR and multifamily units in nine Southeast markets including Raleigh, Atlanta, Orlando and Miami.

Alfred’s operating system is in use in 143,000 units in the US and Canada, according to the company’s website. The company says it has raised in additional $75M and plans more acquisitions.

Prior to the acquisition by Alfred, RKW had been utilizing a “hybrid” operating model that combined on-site interactions between landlords and renters, while deploying artificial intelligence and automation to its leasing activities.

In January, hospitality tech startup The Guild acquired CREA Management, the property management division of Cypress Real Estate Advisors. CREA operates 5,000 units in four markets.