Dive Brief:

• New York City-based real estate investment firm Pretium has acquired Des Moines, Iowa-based BH Management Services, the National Multifamily Housing Council’s No.8 apartment operator in the country. The transaction is expected to close early in the second quarter, according to a news release.
• BH, which currently manages approximately 114,000 multifamily, student and single-family homes in 370 housing communities in 31 states, was founded by Harry Bookey in 1993. Bookey’s BH Equities also owns roughly 50,000 units in investment partnerships, according to the last NMHC Top 50 list. These units won’t change hands. 
• BH will become a Pretium operating company but will continue to function as BH Management Services and provide property management, construction and investment services. The firm will remain in Des Moines and continue to be led by CEO Joanna Zabriskie and the current management team.

Dive Insight:

As apartment managers need to increasingly invest in technology to compete, there is a growing separation between the haves and have-nots.

For some smaller firms, like Atlanta-based Wood Partners, it makes sense to turn their operations over to larger operators. But the Pretium deal shows that even a top-10 firm, like BH Management Services, wants fuel for more growth.

“This is an inflection point for BH and an opportunity to further invest in our centralized services platform, as well as advance our proprietary business intelligence systems,” Zabriskie said in the press release announcing the deal. “This transaction will also expand our operating footprint.”

Both Zabriskie and Bookey emphasized the cultural fit between the two companies in their prepared comments. “Beyond being a force in its own right, Pretium shares our core values of embracing evolution and putting people first, making it the right fit for BH,” Bookey said.

Pretium, which has expertise in specialized residential investments from single-family rentals to residential credit, has more than $50 billion in assets under management. The BH and Pretium teams have a longstanding relationship, according to the news release. 

“The addition of BH is a natural adjacency to Pretium’s residential ecosystem and enables us to continue providing diverse housing options for residents based on their preferences and stages of life,” said Don Mullen, founder and CEO of Pretium, in the release. 

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