Seattle real estate investor Security Properties is getting out of the day-to-day landlord business, announcing Tuesday that it will wind down its in-house property management arm and bring in outside companies to run many of its apartment communities. A sizable slice of the firm’s Pacific Northwest portfolio is involved, with the company saying transitions will be staged over the coming months to keep things as smooth as possible for residents and staff.
Company announcement
In a post on Security Properties, the firm said it has tapped Bozzuto as its primary property manager in the Pacific Northwest and will hand off management responsibilities to third-party providers. Security Properties framed the exit as a strategic move to streamline operations so it can focus more tightly on market-rate acquisitions, affordable housing and investment management.
The numbers
According to the Puget Sound Business Journal, more than 30 residential properties, totaling roughly 9,000 units, are slated to shift into Bozzuto’s portfolio, and about 400 employees are expected to transfer along with them. The affected communities are concentrated in the Seattle area and in Oregon, while Security Properties said it will put remaining assets through a competitive request-for-proposals process to select other managers.
A local example
One example in the mix is The Heights at Bear Creek in Redmond, a community that appears in Security Properties’ portfolio and reflects the type of suburban market-rate property included in the transition. For residents at properties like this, the handoff will likely show up in the form of new leasing teams, online portals and vendor relationships as Bozzuto steps into day-to-day control.
What this means for staff and residents
Security Properties says the changes will be phased in, with an emphasis on maintaining continuity of service, although these kinds of management swaps typically bring new systems, vendor contracts and operating procedures. The Puget Sound Business Journal reports that roughly 400 employees will move over to Bozzuto as part of the agreement, and the announcement said Bozzuto plans to welcome both incoming staff and communities as it grows its regional footprint. Residents are expected to receive formal notices from on-site teams with specific timelines as each property’s transition approaches.
Why it matters
For Security Properties, offloading the time-consuming work of property management opens up internal bandwidth to chase new deals and build out its investment platform. For Bozzuto, it is a sizable expansion in the Pacific Northwest that deepens the company’s presence in the Seattle metro. Bozzuto operates across multiple markets nationally and lists Seattle among its metros on Bozzuto, giving the company a foothold to absorb the influx of new communities.
What’s next
Security Properties says Bozzuto will assume responsibilities in phases while remaining assets are evaluated through a competitive selection process for additional third-party managers. Both companies plan to notify residents and ownership partners directly as property-level schedules are finalized. This story will be updated as further timelines or community-specific details are released.
