Ralph Reahard left the golf business to franchise Real Property Management Richmond Metro. Photo by Burl Rolett.
A pair of local franchises of a national property management firm is pooling its resources through a recent merger.
Real Property Management Richmond Metro has acquired fellow franchise Real Property Management Richmond in a deal that closed Dec. 21.
Ralph Reahard, a former golf pro and owner of the Richmond Metro franchise, did not disclose the price or terms of the deal. It’s his first acquisition since launching RPM Richmond Metro in 2014.
The deal adds RPM Richmond’s 85 properties to RPM Richmond Metro’s 190, bringing the combined franchise’s total to 275. It also adds Darlene Bristow, a 14-year licensed agent with RPM Richmond, to the RPM Richmond Metro team – three leasing agents and a full-time maintenance supervisor.
Ralph Reahard
Where Reahard operates his franchise locally, he said RPM Richmond was owned by a private equity group that sold it back to the franchisor, which in turn sold it to Reahard within 24 hours.
“This all happened pretty quickly,” Reahard said. “We came to a price agreement at the end of November, and it was done within 30 days.”
Reahard, who got into real estate after seven years at Powhatan’s Foundry Golf Club, said the consolidated franchise will improve response times and service for its rental properties’ users and tenants. He said RPM Richmond was the only other franchise in the area for Real Property Management, a Salt Lake City-based company whose franchises manage tens of thousands of properties nationwide.
Reahard said the acquisition kept the franchise within the company’s reach and out of the hands of competitors.
“It’s one less property management company out there to fight with,” he said. “The Richmond market, in terms of rental growth and saturation, there’s plenty of business out there.”
Reahard said RPM Richmond’s portfolio consisted exclusively of single-family homes, with rents ranging from $700 to $2,500 a month. He said its revenue last year totaled $300,000.
RPM Richmond Metro manages a mix of primarily multifamily properties in and around the Fan. Reahard said the franchise pulled in about $430,000 in revenue last year – a figure that increased incrementally through the year as the franchise added to its portfolio.
Reahard said he plans to further expand his local footprint by growing his portfolio and acquiring more property management companies.
“In the next 12 to 18 months, we probably will be looking at another acquisition target,” Reahard said. “I know there are a lot of smaller, mom-and-pop stores here in Richmond that, when they get older, they’re going to want to retire and sell that book of business. We’re fortunate to be in a position where we can analyze those deals and make them an offer and continue to grow.”
The merger is the latest deal in a competitive property management market. Last year, Dodson Property Management purchased Fountainhead Development’s property management division. In 2015, Minnesota-based Renters Warehouse launched its first local franchise with an office in Glen Allen.
Ralph Reahard left the golf business to franchise Real Property Management Richmond Metro. Photo by Burl Rolett.
A pair of local franchises of a national property management firm is pooling its resources through a recent merger.
Real Property Management Richmond Metro has acquired fellow franchise Real Property Management Richmond in a deal that closed Dec. 21.
Ralph Reahard, a former golf pro and owner of the Richmond Metro franchise, did not disclose the price or terms of the deal. It’s his first acquisition since launching RPM Richmond Metro in 2014.
The deal adds RPM Richmond’s 85 properties to RPM Richmond Metro’s 190, bringing the combined franchise’s total to 275. It also adds Darlene Bristow, a 14-year licensed agent with RPM Richmond, to the RPM Richmond Metro team – three leasing agents and a full-time maintenance supervisor.
Ralph Reahard
Where Reahard operates his franchise locally, he said RPM Richmond was owned by a private equity group that sold it back to the franchisor, which in turn sold it to Reahard within 24 hours.
“This all happened pretty quickly,” Reahard said. “We came to a price agreement at the end of November, and it was done within 30 days.”
Reahard, who got into real estate after seven years at Powhatan’s Foundry Golf Club, said the consolidated franchise will improve response times and service for its rental properties’ users and tenants. He said RPM Richmond was the only other franchise in the area for Real Property Management, a Salt Lake City-based company whose franchises manage tens of thousands of properties nationwide.
Reahard said the acquisition kept the franchise within the company’s reach and out of the hands of competitors.
“It’s one less property management company out there to fight with,” he said. “The Richmond market, in terms of rental growth and saturation, there’s plenty of business out there.”
Reahard said RPM Richmond’s portfolio consisted exclusively of single-family homes, with rents ranging from $700 to $2,500 a month. He said its revenue last year totaled $300,000.
RPM Richmond Metro manages a mix of primarily multifamily properties in and around the Fan. Reahard said the franchise pulled in about $430,000 in revenue last year – a figure that increased incrementally through the year as the franchise added to its portfolio.
Reahard said he plans to further expand his local footprint by growing his portfolio and acquiring more property management companies.
“In the next 12 to 18 months, we probably will be looking at another acquisition target,” Reahard said. “I know there are a lot of smaller, mom-and-pop stores here in Richmond that, when they get older, they’re going to want to retire and sell that book of business. We’re fortunate to be in a position where we can analyze those deals and make them an offer and continue to grow.”
The merger is the latest deal in a competitive property management market. Last year, Dodson Property Management purchased Fountainhead Development’s property management division. In 2015, Minnesota-based Renters Warehouse launched its first local franchise with an office in Glen Allen.
Mr. Reahard manages multiple properties for us. I can attest that he runs a first class operation. I expect he will continue his string of success going forward. Keep on keeping on Ralph!
Justin,
Thanks for the great feedback, it’s an honor working with you and your residents. Looking forward to a continued partnership!
Ralph