Pretium acquires property management firm BH Management Services to expand residential ecosystem

Pretium, a specialized investment firm boasting over $50 billion in assets under management, has announced its agreement to acquire BH Management Services, a prominent national property management platform specializing in multifamily, student, and single-family housing, in what is a significant move within the real estate investment and property management sectors.

The deal, expected to finalize early in the second quarter, marks a pivotal expansion for Pretium into the property management domain, leveraging BH Management Services’ extensive portfolio and industry expertise.

BH Management Services, established in 1993 by Harry Bookey, is recognized as a leader in the institutional multifamily investment and property management industries. Currently, the company manages around 114,000 homes across 370 housing communities in 31 states, showcasing its substantial impact and presence in the market.

Don Mullen, Founder and CEO of Pretium, expressed his enthusiasm for the acquisition, highlighting the alignment between Pretium’s goals and BH’s operational ethos, particularly in prioritizing resident and employee experiences to enhance community living standards. Mullen underscored the acquisition’s strategic significance in bolstering Pretium’s residential ecosystem and providing diverse housing options to meet varied resident needs.

Echoing the sentiment of a shared vision, Harry Bookey, the founder of BH, emphasized the company’s industry leadership and the thoughtful approach taken towards its future growth and partnership with Pretium. Joanna Zabriskie, CEO of BH, also voiced her excitement about the collaboration’s potential to further invest in centralized services and proprietary business intelligence systems, expanding BH’s operational footprint.

Jonathan Pruzan, President of Pretium, lauded the long-standing relationship with BH and the anticipated synergies from integrating BH’s technology- and people-focused culture into Pretium’s vertically integrated model. This acquisition is poised to enhance Pretium’s capabilities in the residential space, highlighting the complementary strengths of both entities.

Following the transaction’s closure, BH Management Services will operate as a Pretium company while continuing its operations under the existing brand and leadership of CEO Joanna Zabriskie. The company will maintain its headquarters in Des Moines, Iowa, ensuring continuity in its service delivery to clients and residents nationwide.

Wells Fargo and Sidley Austin LLP served as financial and legal advisors to Pretium, respectively, while The CenterCap Group and Faegre Drinker Biddle & Reath LLP provided advisory services to BH.

This acquisition signifies a milestone for Pretium as it further diversifies its portfolio and strengthens its position in the property management and residential investment sectors, promising to deliver enhanced housing options and community experiences across the United States.

The acquisition of BH Management Services by Pretium is a strategic maneuver that not only expands Pretium’s footprint in the property management sector but also signifies the growing importance of integrated residential ecosystems in meeting diverse housing needs. By leveraging BH’s extensive portfolio and expertise, Pretium is well-positioned to capitalize on the dynamic opportunities within the real estate market, enhancing its service offerings and operational efficiency. This deal reflects the ongoing consolidation trend in the industry, where companies seek to build comprehensive platforms to provide end-to-end housing solutions.