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Over the past four years, Shah Alam, CEO of Pratum Companies, has expanded his reach in the real estate sector with multiple strategic acquisitions. In October 2020, Alam, along with partner Steve Lainez, acquired Presidential Service Industries, a cleaning company. In August 2023, he expanded further by acquiring Baltimore-based Edgewood Management Corporation under his Full Circle Real Estate Partners. Additionally, he established FCRE Compliance and Leasing to facilitate the launch of Pratum Companies, a real estate services firm based in Gaithersburg, Maryland.
Currently, Pratum Companies manages over 150 properties with more than 15,000 apartment units spread across eight states in the mid-Atlantic and South Atlantic regions, including Washington, D.C. Alam, who has previously held senior roles at firms such as Related Companies, Edgewood, and Aimco, is focused on further growth through acquisitions.
Alam emphasizes that Pratum is actively seeking to acquire properties but is not bound to a specific target. “We aim to add 1,000 to 2,000 units over the next two years, but we’re not obligated to meet that goal,” he stated in an interview with Multifamily Dive. The key, according to Alam, is aligning with the right partners. “If an opportunity makes sense, we’ll pursue it aggressively. If not, we’ll continue to expand through other means,” he explained.
Alam highlighted several benefits of owning properties rather than just operating them. “Owning properties provides opportunities for career growth and job security for our team members,” he said. He added that ownership allows for experimentation and innovation that might not be possible under other ownership models. Alam also mentioned the potential to generate cash flow to invest in technology and personnel, noting, “We don’t want to rely solely on our existing divisions to grow.”
Alam expressed interest in exploring opportunities to acquire smaller management firms or other businesses within the real estate sector. “Many acquisitions in this space happen quietly, without being advertised,” he observed. He explained that management companies often avoid publicizing potential sales to prevent uncertainty among employees and clients.
Despite the competitive landscape, Alam sees room for smaller and regional management companies. “When a company grows too large, it becomes difficult to provide personalized service to all clients,” he said. He believes that mid-sized companies have an advantage by offering more tailored services. “Our goal is to reach 40,000 to 50,000 units in the next five to ten years. We don’t aim to be a 100,000-plus-unit company,” Alam noted. He emphasized that Pratum’s focus is on maintaining a strong company culture and offering complementary services.
Discussing growth strategies, Alam mentioned that Pratum does not aim to be the biggest player in the market. “We focus on organic growth with our partners, expanding where they are investing,” he stated. Rather than expanding into new cities for its own sake, Pratum seeks to grow in alignment with its partners’ future investment plans.
On the topic of centralization, Alam reflected on past trends. “A decade or so ago, everyone was centralizing, and then they shifted to decentralization. Now, the trend is moving back to centralization,” he noted. Alam suggested that centralization should be about optimizing processes, allowing employees to focus on their core skills rather than administrative tasks.
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By Proptechbuzz
By Ravi Kumar
