Denver-based BMC Investments, a vertically integrated real estate investment company, has sold its property management division to third-party management firm Asset Living, based in Houston. This sale will expand Asset Living’s portfolio in Colorado, adding 14 multifamily communities with 5,200 units.
“We have been managing these properties in-house for more than a decade, but, given some of the industry challenges, we believe this is the right thing for our investors to ensure the best execution of these investments,” said Jeff Stonger, chief investment officer of BMC Investments, which, along with its capital partners, will retain ownership of the 14 multifamily communities.
With the sale of its property management division, BMC said it will focus on its core business of investment management and will continue to build out an asset management program to execute its value-add and development business plans. BMC also will maintain the management of capital expenditures and renovations; it has over $50 million of renovations underway on six of its workforce housing communities in the Denver metro.
“Property management is all about scale, and BMC does not intend to grow to the necessary size to effectively compete long term in property management,” Stonger added. “Our properties will benefit from better property management with Asset Living as they have a much larger platform with robust infrastructure, better pricing power, and the ability to invest more capital into systems, technology, data, analytics, and research, all of which ultimately lead to enhanced performance at the property level and reduce direct costs to the property.”
Asset Living, the third-largest property manager in the U.S., has nearly 203,000 units under management in 40 states. Over a year ago, it acquired Echelon Property Group, a Denver-based firm focused on conventional market-rate and affordable housing property management. The firm’s portfolio in Colorado now comprises over 20,000 units, including BMC’s communities.
“Partnering with BMC Investments is a strategic move that we know will benefit everybody involved, from employees to stakeholders to clients,” said Asset Living CEO and president Ryan McGrath. “We’re confident that this partnership will be another step forward in further establishing ourselves as one of the industry’s leading property management companies.”
