The Guild acquires CREA Management to expand urban portfolio
US: Tech-enabled upscale apartment startup The Guild has announced the acquisition of CREA Management, the property management division of multifamily developer Cypress Real Estate Advisors.
The acquisition adds more than 5000 units to The Guild’s portfolio and pipeline, driven by the company’s desire to create an innovative, turnkey platform for living that can host all lengths and types of stay, as it seeks to redefine flexible living and blur the lines between living and travel.
Brian Carrico, co-founder and CEO of The Guild, said: “The pandemic truly accelerated the need for a platform that offers flexibility, authentic community and the tech-enabled service that the modern renter population really wants – 70 per cent of whom identify as millennial or Gen Z. The way people live, work and travel has becoming increasingly intertwined, creating a timely opportunity to transform urban living into a more flexible and seamless experience for travellers and renters alike, while also driving significantly higher revenues for building owners.”
Founded in 2016, The Guild currently manages over 2,000 upscale units across twelve communities and seven markets, including Denver, Colorado; Bay Harbor and Miami, Florida; Cincinnati, Ohio; and Austin, Dallas and San Antonio, Texas. The company also has more than 10,000 units under development in its pipeline for the next 18 months, including target markets such as Atlanta, Georgia; Boston, Massachusetts; Los Angeles, California; Nashville, Tennessee; New Orleans, Louisiana; Philadelphia, Pennsylvania; and Washington, District of Columbia.
The Guild’s furnished apartments merge the typical hotel and urban living experience, creating a sense of home for travellers or renters no matter where they find themselves. Its units are set in prime locations and feature personalised service such as on-demand grocery stocking and housekeeping, alongside access to added amenities including rooftop terraces, outdoor pools, gyms, and private members’ clubs.
The company says that it has attracted greater demand from the millennial and Gen Z demographics who relish remote work, seek a healthy work-life integration and rely heavily on technology for trips, shopping, communication and more, as working, travelling and living become more linear.
Through a new hybrid management offering, The Guild is aiming to disrupt the flexible living, short-term rental and long-term rental sectors by enabling owners to flexibly scale their short- and long-term rentals mix across an entire or partial building.
As a result of the acquisition, CREA Management’s apartment communities will be able to leverage The Guild’s tech-powered hospitality services and some units may be transitioned into furnished, flexible-term apartments.
Furthermore, Katya Watson and John Burnham will join The Guild’s executive team, as president of multifamily operations and as a member of the board of directors respectively.
Burnham said: “CREA Management’s guiding mission has always been to provide our guests with exemplary communities that meet their needs as they live, work, and play. The Guild’s clear understanding of the opportunities presented by the growing interest in flexible living paired with their hospitality expertise and desire to address the current gaps in the rental market made the decision to partner with The Guild very easy.”
To date, The Guild has raised more than $36.5 million in funding, according to Crunchbase, including a $25 million Series B funding round in January 2020 and an undisclosed Series A investment from Sand Hill Angels last January, while it also secured $17.1 million in equities and securities in April.