Security Properties was founded by Paul Pfleger in 1969 to assist clients in managing their growing tax burdens through HUD-sponsored affordable housing investment programs.
John Orehek joined the firm in 1982, leading its syndication marketing efforts.
In subsequent years, the firm accumulated multifamily properties across the United States. By the middle of the 1980s, the firm had a portfolio of more than 375 apartment complexes across the country and a network of thousands of private investors.
The firm had also developed strong financial, legal, marketing and investor relations skills, established construction, asset and property management expertise and a strong culture as a fiduciary.
1987-1999At the end of 1986, Congress amended the tax code, effectively ending the firm's syndication activities. Mr. Orehek left Security Properties, while Mr. Pfleger recruited new management to pursue new investment ventures. New ventures included utility metering services, telecommunications and cable television. In 1992, Mr. Pfleger recruited Mr. Orehek primarily to assist with the management of these new ventures. As these investments were wound up and liquidated, Mr. Orehek refocused efforts on growing and restructuring Security Properties' multifamily portfolio.
By 2000, Mr. Pfleger entered semi‐retirement, and Mr. Orehek became CEO with a mandate to enhance the firm’s multifamily acquisition, development, capitalization and operating capabilities.
A new management team was recruited to lead Security Properties' acquisition and development operations and assume responsibility for the existing portfolio of affordable assets. To fuel growth beyond its internal capital base, Security Properties cultivated relationships with financial advisors and other investment‐oriented institutions.
Recapitalized, Security Properties commenced the acquisition of numerous market-rate multifamily assets. The company also expanded its development activities.
By the beginning of 2005, Security Properties had established a reputation for creating value through the rehabilitation and repositioning of multifamily assets. This resulted not only in the establishment of new relationships with partners such as ING Clarion, BlackRock, Capmark (now Hunt Investment Management), Boston Capital and Equity Resource Investments, but also in a geographic expansion to the new markets of Portland, Denver and Scottsdale.
Further, the firm continued to capitalize on its roots as an affordable housing owner and operator, actively pursuing the acquisition of assets financed through the federal low income housing tax credit program, including recapitalizing and rehabilitating assets with tax credits.
As the U.S. economy entered a recession, Security Properties focused on opportunistic acquisitions and optimizing its existing portfolio through the combined focus on ground-level asset management and a methodical recapitalization of its properties.
Security Properties also continued to pursue new acquisitions and foster its work with the federal low income housing tax credit program. Additionally, the firm acquired interests in existing affordable assets developed by third parties, as the recession forced less experienced developers to monetize their tax credit assets.
In development, Security Properties finished the construction and managed the sell-out of condominium units in its 170 King property, and constructed On the Park, a 268-unit property in the Ballard neighborhood of Seattle. The firm also expanded its pipeline, managing entitlements for Honeyman in Portland and two other high-density developments in downtown Seattle.
The end of 2010 marked the formation of Madrona Ridge Residential, an affiliated property management company, to resume Security Properties’ property management function and complement its asset management practices.
Today, Security Properties strives to provide exceptional returns for our investors and outstanding living experiences for our residents. We maintain a robust pipeline of multifamily opportunities and an excellent network of trusted capital partners. Our goal is simply to be the #1 multifamily developer, investor, and operator in all of our target markets.
Today, Security Properties is a fully integrated investor, developer, and operator with expertise in investment origination and asset strategy execution (ranging from Core to Opportunistic investments), property management (with over 11,000 units under management in target markets), tax, accounting, finance, portfolio management, and investor relations.
Security Properties has extensive investment management experience and is endorsed by a wide range of sophisticated investors. Security Properties remains focused on strategies in which we have extensive experience and a proven performance history. We have expertise in our target markets and our underwriting incorporates experience derived from operating a stable portfolio of existing multifamily assets. Our company is vertically integrated, and our investment and operating platforms benefit from direct day-to-day operational expertise. And importantly, Security Properties and Madrona Ridge Residential utilize its operational data to power a proprietary business intelligence platform that can be used for property operations, fund management, investor relations, and other internal functions.
Our investment philosophy is based on three central principles:
(1) Focused approach on specific, proven execution strategies in select locations within top quality target markets.
(2) Prudent risk management, rigorous underwriting, and a controlled acquisition and development process.
(3) Alignment of interest with investors and operational transparency.
Our Goal is to be the #1 multifamily developer, investor, and operator in all of our target markets.