Security Properties Exits Management Sector With 22,000 Unit Portfolio Outsourcing

Seattle based Security Properties exits self management, transferring 22,000 apartments to third party firms like Bozzuto Group to focus on acquisitions.

By: AXL Media

Published: Mar 21, 2026, 7:08 AM EDT

Source: Bisnow

A Major Strategic Realignment in Multifamily Operations

Security Properties is officially dissolving its internal property management division to focus exclusively on investment and development. The firm, which oversees 110 assets valued at over $6 billion, is transferring the management of approximately 9,000 units across 30 properties in the Pacific Northwest to the Bozzuto Group. This transition involves moving 400 on-site staff and roughly one third of Security Properties' corporate workforce to Bozzuto’s payroll. Remaining assets not covered in the initial Bozzuto agreement will be placed through a request for proposals process to identify other high tier third party managers.

Strategic Rationale and Shift to Asset Management

The decision represents a "pure play" investment strategy, where Security Properties aims to shed the high overhead and operational complexity of day to day property management. By outsourcing these functions, CEO Dan Byrnes indicated the firm can better scale its impact by concentrating internal resources on market rate acquisitions and affordable housing development. This move follows a period of aggressive growth for the company, which acquired $700 million in multifamily assets in 2025 alone. The firm’s leadership believes that partnering with specialized operators will maintain high standards while allowing the internal team to hunt for new high value deals.

Regulatory and Competitive Landscape in Property Services

This deal significantly alters the competitive landscape in the Pacific Northwest, providing Bozzuto with an immediate and dominant foothold in a region where it previously had minimal presence. Bozzuto, which manages a national portfolio exceeding 100,000 units valued at nearly $40 billion, will now oversee nearly 10,000 units in the Seattle and Oregon markets. This consolidation of management power into larger, specialized firms reflects a growing trend in the real estate industry where owners prefer the efficiency and technology stacks of dedicated management giants over fragmented, in-house teams.