Owner Of 22,000 Apartments To Outsource All Property Management
Security Properties is giving up on managing its vast portfolio of multifamily properties.
The Seattle-based firm announced Wednesday that it would transfer management of its portfolio, which totals 22,000 units across 110 assets with a value of more than $6B, to external property managers.
It chose Maryland-based Bozzuto Group as its primary property manager in the Pacific Northwest, where the bulk of its properties are located. The deal, which wasn’t a monetary trade, includes the transfer of more than 30 residential properties, or about 9,000 units, the Puget Sound Business Journal reported.
Security Properties says the move will allow it to focus on market acquisitions, affordable housing and investment management, according to a news release.
“As the industry evolves, we believe the best way to scale our impact is to partner with best-in-class operators while concentrating our internal resources on market-rate acquisitions, affordable housing and investment management,” Security Properties CEO Dan Byrnes said in a statement. “This transition positions us to extend our investment platform nationally while maintaining the high operating standards our partners and residents expect.”
The decision to dissolve the company's management business was made in 2024, Byrnes told the PSBJ. The company then decided to stop self-managing its affordable assets last year, he added.
Security Properties is planning to put the properties that Bozzuto isn't taking over through a request-for-proposals process for other third-party managers.
About 400 of Security Properties’ on-site employees and a third of its corporate employees are being transferred to Bozzuto. Bozzuto, which is one of the nation’s largest property management companies, manages a portfolio of more than 100,000 units valued at nearly $40B.
Its property management takeover gives Bozzuto a sizable foothold in the Pacific Northwest — previously, it managed five properties in Seattle and none in Oregon. The company also has development, homebuilding and construction arms.
“This is a strong strategic alignment built on shared values, execution, and long-term vision,” Bozzuto President and CEO Toby Bozzuto said in a statement. “We’ve been excited about the Pacific Northwest for some time, and Security Properties brings the discipline and commitment needed to deliver results for residents and investors.”
While it will no longer manage its apartments, Security is growing the portfolio, buying $700M worth of multifamily assets last year, according to a press release.
