OVER THE NEXT TWO YEARS , IN THE TOP 25 MARKETS , THERE ’ S ABOUT A MILLION BUILDINGS THAT ARE EITHER UNDER CONSTRUCTION OR THAT ARE EXPECTED TO CHANGE HANDS ,” CARRICO SAID , ADDING THAT THERE ARE SOME 5 MILLION UNITS ACROSS THE TOP 25 MARKETS OWNED BY NON-INSTITUTIONAL INVESTORS . “ AND THAT ’ S IN THE CATEGORY OF BUILDING TYPES THAT WE OPERATE IN … IF YOU LOOK AT THE TOTAL ADDRESSABLE MARKET , IT IS PRETTY MASSIVE .
- BRIAN CARRICO
The Guild – venture capital-backed , asset-light and predominantly fee based – currently manages over 2,000 units across 12 communities and seven U . S . markets ( Denver , Miami , Austin , Dallas among them ). It is in the process of raising more capital and currently has more than 10,000 units under development in 25 markets set to open over the next 18 to 24 months . Target markets include Atlanta , Boston , Los Angeles , Nashville , New Orleans , Philadelphia and Washington , D . C .
Currently , Carrico says the Guild portfolio stands at about 15 % furnished , short-term rentals and about 85 % year-long , traditional leases . As the company scales , he expects to grow the short-term rentals to between 20 % and 25 % of inventory .
In addition to offering its techpowered hospitality services to existing long-term residents of CREA Management ’ s apartment communities , The Guild plans to transition a select number of units at those communities into upscale , furnished flexible-term apartments , creating more flexible options for how to live in those communities .
The acquisition of CREA Management will also add more senior talent to its executive team , including Katya Watson , who will serve as president of Multifamily Operations for The Guild . Additionally , John Burnham , managing director of CREA , will sit on the Board of Directors for The Guild .
When it comes to growth , Carrico says there are three pillars – organic growth with other real estate developers ; growth through acquisition of management companies over the next few years with scale similar to what it acquired from CREA ; and , again , growth through CREA projects . “ Over the next two years , in the top 25 markets , there ’ s about a million buildings that are either under construction or that are expected to change hands ,” Carrico says , adding that there are some 5 million units across the top 25 markets owned by non-institutional investors . “ And that ’ s in the category of building types that we operate in … If you look at the total addressable market , it is pretty massive .”
Carrico added that there is a lot of money flowing from the real estate development side and the venture capital side that are building platforms like The Guild .
THE BIGGER OPPORTUNITY The Guild concept features personalized service such as on-demand grocery stocking and housekeeping , paired with access to building amenities like rooftop terraces , outdoor pools , gyms , private members ’ clubs and experiential programming – all made accessible through a seamless techenabled platform .
Carrico explains that when the deal was announced that 87 % of people say that they ’ re having a bad experience or dissatisfied with their
48 hotelsmag . com March / April 2022