#United States #Seattle #Security Properties #AI Underwriting #FirstPass

Security Properties Unveils FirstPass: A Game-Changing AI Underwriting Platform

In an exciting development for the real estate investment sector, Security Properties has launched FirstPass, a proprietary underwriting application that leverages artificial intelligence. This groundbreaking platform, designed entirely in-house, signifies a major leap forward in how multifamily acquisitions are evaluated and processed.

Based in Seattle, Washington, Security Properties has built a strong reputation as a leading real estate investment partner in the Pacific Northwest. Over the last 57 years, the company has acquired or developed more than 111,000 residential units across the country, refining its operational strategies and data collection along the way. With FirstPass, the firm aims to utilize decades of historical underwriting and operating data to revolutionize its initial financial analyses.

Transforming the Underwriting Process

Traditionally, financial analysis for multifamily acquisitions can take hours of painstaking efforts by analysts. Security Properties claims that FirstPass condenses this process from four to five hours down to mere minutes—less than five to be precise. By employing machine learning algorithms, FirstPass streamlines the complex tasks of classifying crucial operating statements received during due diligence, such as rent rolls and financial statements, feeding this data directly into Security Properties' underwriting model. This not only enhances efficiency but also provides real-time insights by pulling current U.S. Treasury rates and incorporating parameters that vary from deal to deal, including aspects such as transaction date and financing structure.

The ability to continuously run FirstPass during the underwriting and due diligence phases allows analysts to update their assumptions in real-time as new information emerges. This adaptability is key to guiding informed investment decisions.

As Mark Bates, Chief Investment Officer at Security Properties, aptly stated, "FirstPass changes the math on how many opportunities we can seriously evaluate." The platform allows for rapid assessments of offering memoranda, which means that the team can identify and pursue the most promising investment opportunities without wasting time on less viable prospects.

A Blend of Technology and Human Expertise

One question that often arises with AI adoption in sectors such as real estate is trust—can investors rely on these automated systems? Security Properties aims to address this concern by building FirstPass on an extensive database of its own operational performance, rather than relying on average market data. This approach ensures that the input data for the AI system is not only relevant but also accurate, setting a strong foundation for reliable outputs.

Éamon Finneran, Senior Director of Operations and Technology, highlighted the ethos behind FirstPass: "The quality of the output is a direct result of the quality of the input. We're feeding the model clean, actual operational data from our own portfolio history." Analysts thoroughly review every output generated by FirstPass, ensuring a crucial blend of AI efficiency and human oversight.

Seizing Investment Opportunities with Speed

The dynamics of the real estate market demand a swift and reliable evaluation process, particularly in an era where market conditions can shift rapidly. FirstPass helps Security Properties increase its deal sourcing velocity dramatically, allowing the firm to explore a broader range of markets and opportunities. In 2025 alone, the company completed eight market-rate acquisitions totaling around $700 million, thanks to this enhanced analytical capability.

Bates emphasized the significance of maintaining the rigor that has characterized Security Properties for over five decades while scaling their operations effectively. He stated, "Our investors trust us to be disciplined stewards of their capital, and FirstPass makes that discipline scalable. It allows us to match the right capital with the right opportunity faster than ever, all while preserving the thoroughness we stand by."

The Future of Real Estate Investment

As the real estate landscape evolves, the introduction of innovative tools like FirstPass signals a trend that is likely to shape investment strategies moving forward. As more firms adapt AI-driven platforms, the potential for smarter, data-informed decision-making will become increasingly critical.

Security Properties continues to forge ahead, making its mark as not just a real estate investment firm, but a pioneer in integrating technology into its foundational practices. With FirstPass, the company has set a new standard for efficiency in the underwriting process, positioning itself for ongoing success in an ever-competitive market.