A veteran multifamily operator says shifting institutional strategies are creating new opportunities for specialized property managers, particularly in the workforce housing sector.
Ron Kutas, Chief Executive Officer of OneWall Communities, says he noticed a significant shift in institutional real estate investment about three years ago. “A lot of the institutional capital started bringing in their own in-house asset management teams and deciding to buy assets on their own, rather than through sponsors and operators like us,” Kutas explains.
Rather than viewing this as a threat, Kutas saw an opportunity. “Those groups need third-party management,” he notes. This realization led OneWall to pivot its business model and focus on providing specialized management services.
The company is particularly focused on workforce housing, which Kutas says has been underserved by existing property management solutions. “A lot of the proptech that you see in the industry today is focused on luxury housing Class A properties,” he explains.
According to Kutas, many luxury-focused solutions don’t translate well to workforce housing: “The ownership is more than willing to spend 2, 3, 5, 7 dollars on a unit to provide a more seamless experience for the resident. But half the time those proptech companies promise things that they cannot deliver on.”
OneWall’s response has been to develop proprietary technology specifically designed for workforce housing operations. “We’ve been focused for the last two years with our team in-house on developing proprietary information technology that makes the management of especially workforce housing easier,” Kutas says.
The company is now looking to expand through strategic acquisitions. “We put together a roll up strategy to go buy some smaller property management companies in the target markets who just don’t have the technology efficiency and have a hard time growing their business,” Kutas explains.
The goal is to integrate these smaller operators into OneWall’s platform, providing them with technology and operational efficiencies they couldn’t achieve independently. This approach allows OneWall to rapidly expand its management footprint while helping smaller operators compete more effectively.
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