Since taking the helm as CEO and president of Houston-based Asset Living in 2018, Ryan McGrath has accelerated the third-party property management firm’s growth trajectory.
In the past year, Asset Living has experienced 60% growth in total units under management, climbing from over 100,000 in early 2021 to over 160,000 today. The value of its real estate portfolio has increased by 66%—from $15 billion in early 2021 to over $25 billion. And just in the last 12 months, over 20% of its current employee base has been hired.
Celebrating its 36th anniversary in April, the firm was founded by Stephen Bohon in 1986 in response to the savings and loan crisis when property operations needed to be improved for failing investments. From its start, it managed everything from office and retail to multifamily and single-family lots. When Bohon died, McGrath’s father, Michael, who had been head of business development, bought the firm from the estate. It continued to grow, expanding into the student housing sector when its largest multifamily client invested in its first off-campus property in 1998.
McGrath, who grew up in the business working summer jobs in several divisions starting when he was 12, joined the firm full time in 2007, working side by side with his father for over a decade. But when he took the lead in 2018, he reimagined the brand, uniting Asset Plus Cos. and Asset Campus Housing as Asset Living, and set his vision of growth in motion.
“In 2012, we sold the office and retail divisions so we could really focus on living. I think there’s something way more personable and human about the living environment than where people shop or office,” McGrath says. “That was the precursor. In 2018, my vision was to build and acquire these other platforms to get there as quickly as possible.”
For McGrath, the strategy has been to grow the firm’s geographic footprint as well as to expand outside of the multifamily and student housing verticals, including affordable and senior housing as well as the single-family build-to-rent market. However, he’s been thoughtful about the approach, looking for best-in-class firms that share the same values and culture.
“They have to be a best-in-class operator in the field, and their values have to line up with ours,” says McGrath. “They also have to offer us something that we don’t have.”
In 2020, at the height of the pandemic, Asset Living made its first acquisitions—Shelton Residential, one of the largest property management firms in Arizona, and Alpha Barnes Real Estate, a Dallas-based property management firm with a focus on affordable housing, including Section 8, low-income housing tax credit, HUD-financed, and senior housing communities.
The acquisition of Shelton Residential has allowed Asset Living to expand its presence throughout the Southwest with more than 17,000 units as well as into the build-to-rent space. The Alpha Barnes acquisition added 30,000 units to Asset Living’s portfolio and broadened its suite of services by leveraging the affordable housing and compliance expertise.
The firm made three more acquisitions in 2021: Denver-based Echelon Property Group, with more than 13,000 multifamily units in Colorado and a new corporate office in Denver; Dallas-based City Gate Property Group, with more than 10,000 units under management in Louisiana and Texas; and Atlanta-based JMG Realty, expanding its presence in the Southeast with another 20,000 multifamily units and a new corporate office in Atlanta.
“We kept 100% of the leadership and teams. You see other acquisitions where they don’t keep all the people, and they don’t get the benefits of that talent. They lose that tenure,” says McGrath. “The hybrid between consistently getting an influx of new talent and new ideas and combining with a rock-solid foundation with heavy tenure is one thing that makes us different.”
Tom Shelton, principal at Asset Living and former owner of Shelton Residential, says the acquisition of his company in 2020 exceeded his expectations.
“We are very proud of the fact that none of our employees lost their position, nobody was demoted, nobody had their compensation changed—and, in fact, we ended up adding people to our roster,” Shelton says. “There is no hiding the reality that combining two 30-year-old companies would involve the integration of different policies, practices, and protocols, but we have successfully navigated those challenges, and our recent growth is a testament to the success we’ve had.”
Asset Living acquired Denver-based Echelon Property Group in 2021, adding more than 13,000 units, including the 240-unit Terra Vida in Fort Collins, Colorado.
Win-Win for All Parties
Bringing in the new talent and their best practices from the acquisitions has benefited Asset Living’s operations.
“Each of the different companies we have acquired are highly successful. When we bring them into the Asset Living brand, we can draw on that. We have been able to look at different processes and strategies, and that’s what has made us stronger,” says executive vice president Tyler Johnson, who oversees the management and operations of Asset Living’s multifamily business. “The best thing is the energy that comes over from new team members. It’s exciting to want to be part of a larger team and a national footprint.”
While Asset Living benefits from the new talent and ideas, it also is providing more opportunities and resources for those team members as well as its clients.
“We are now able to help our clients grow as we expand, and we are able to serve our clients to a greater degree than we could even a year or two ago,” adds Johnson.
Hugh Cobb, a principal at Asset Living and former partner at Alpha Barnes Real Estate, echoes these benefits, saying his team has been energized with the acquisition.
“It was the best decision we could’ve made. Previously, our firm only had properties throughout Texas with our headquarters based in Dallas,” he says. “Now that we operate under the Asset Living brand, we’ve been able to broaden our capabilities and offer more solutions to clients as a nationally recognized leader in property management—all while blending our past company culture, values, and best practices at Asset Living. The acquisition ultimately helped to catapult us to the next level while staying true to our values.”
Shelton agrees that one of the most significant and mutual advantages gained is the ability to provide best-in-class services to clients in geographic areas his company was previously unable to serve.
“With regional offices across the Sun Belt and in Denver, clients are being afforded a continuity of performance, communication, and reporting that we could not offer prior to the acquisition. Being part of a larger organization and the ability to leverage our scale, clients and employees are being afforded services and opportunities for growth and development that are the best in the business,” he says.
Point 21 Apartments, a modern-designed mid-rise collection of luxury apartments in downtown Denver, was added to the Asset Living portfolio through the acquisition of Echelon Property Group.
Family Culture
Even while growing exponentially over the past two years, McGrath prides himself on the corporate mission that everyone deserves a place to call home as well as a strong company culture. In 2021, Asset Living launched that new corporate mission as well as its vision—to serve the industry, communities, and partners as the most trusted partner in real estate—and four values—family, drive, honesty, and impact.
“The culture is from the top down,” says Rulissa Trout, executive vice president of human resources at Asset Living. “Ryan has been able to keep that family culture even as we’ve grown.”
In response to the impact value, Asset Living has engaged its employees in its partnership with Covenant House, a faith-based organization committed to giving homeless youth a safe haven with 31 locations in North and Central America. In November, Asset Living employees raised nearly $75,000 for Covenant House’s 10th annual Sleep Out by creating fundraisers, giving up their beds, or just spreading the word. All funds raised will go toward providing shelter and other essential services to help homeless youth with building an independent future.
What’s Next for Asset Living?
Looking ahead to the remainder of 2022, McGrath says it’s going to be an exciting year for Asset Living. He says the goal will be to continue expanding the firm’s geographic footprint, exploring options in the Midwest and Northwest. It also will seek acquisitions adjacent to the space that could add value to its clients, such as its acquisition of Houston-based Poetic Digital, a creative and digital marketing agency, in 2019.
“Each acquisition creates momentum for the next one,” says McGrath. “We feel like we have built a good mousetrap and tightened it up with each acquisition. If someone fits our values, we are extremely well-capitalized to bring them in.”
