ACG
ACG

For nearly 40 years, American Capital Group (ACG) has quietly cemented itself as a leading multifamily real estate development and investment platform. The Bellevue-based firm has provided robust value to its investors and clients having accumulated $4 billion + in project value, developed and acquired 23,000 units, and maintained institutional-caliber returns.

With newly augmented leadership and a strategic partnership with PCM Encore, ACG is writing its next chapter—one that marries its long history of operational excellence with fresh entrepreneurial energy.

A Legacy Rooted in Workforce Housing

ACG's origins date back to 1986, when co-founders Roger Kuula and Jon Wood began developing multifamily apartment complexes in tertiary and secondary markets – neighborhoods that many institutional developers dismissed. The firm's focus on affordable housing became its backbone and a key part of its value proposition.

Over the next 38 years, ACG developed over 15,000 units across 10 Western states, prioritizing locations where it predicted that the demand for affordable housing would outstrip supply. The firm's foresight led to a series of successful developments across diverse regions, including but not limited to the commuter corridors of Tacoma, the Central Valley of Northern California, the sprawling suburbs of Phoenix, and the Eastside innovation triangle of Seattle, encompassing Kirkland, Redmond, and Bellevue.

ACG successfully generated 40%+ net IRRs as part of its value-add strategy by renovating and repositioning over 7,000 residential units. Energy-efficient appliances and lighting were implemented to modernize common areas and apartment units, along with other in-unit upgrades including new cabinets and countertops, electrical and plumbing fixtures, and plank flooring.

"We design tailored property strategies that elevate tenant experiences and ensure stable investment return," says ACG CEO Benjamin "BJ" Kuula, who took leadership in 2023 after 20 years with the firm. "We are methodical about picking markets to invest in and optimizing where renters need to live – not just where they want to live."

A New Generation Takes the Helm

As the current CEO of ACG, BJ Kuula brings both traditional institutional expertise and a modernized approach to the firm's operations. The son of ACG founder Roger Kuula, BJ joined the firm in 2004 as a project engineer in its construction division American Home Builders, honing his expertise across development logistics in construction, scheduling, budgets, and project management, before rising to oversee $1.5B in acquisitions. Under his tenure, ACG has grown from a regional developer to a best-in-class institutional partner, with heavyweight allocators such as Blackstone, Prudential, Artemis Real Estate Partners, Canyon Partners, Clarion Partners, Harford Financial, and New York Life having collectively invested over $1.3B in joint ventures with ACG.

Recent projects under Kuula's leadership have built upon ACG's core strengths. While still maintaining its workforce housing roots, the firm now targets transit-oriented developments in high-growth "innovation corridors" such as Seattle's Eastside.

"BJ has sharpened our focus on markets where tech migration meets infrastructure investment," notes PCM Encore CEO Michael Paulus. "It's workforce housing for the digital age."

The PCM Edge: Entrepreneurial Fuel for Institutional Engine

In 2023, ACG formalized its partnership with Paulus' PCM Encore, a $1.3B wealth management platform born from the tech entrepreneur's family office.

Paulus says of the partnership "We chose to partner with ACG because they are the premier multifamily developer in the country. Their deep expertise and vertical integration has been proven to drive real value creation and alpha across market cycles." In discussing the value of vertical integration, Paulus singles out several significant off-market property acquisitions and a strong track record of saving time and money through integrated design, development, construction and property management.

Paulus, whose ventures include Addepar, valued at $3.5 billion, and Assurance IQ, acquired for $2.4 billion, brings extensive operational know-how, strategic foresight, and technological expertise to ACG. His contributions include capital and balance sheet access, further empowering ACG to expand its operating platform.

"Mike challenges us to think differently," Kuula says. "He'll ask, 'What would a contrarian do in this market?' or 'How can we reimagine our amenity packages and tenant experience?' Mike injects innovative thinking into a traditional asset class, allowing us to bring new solutions to our clients and residents."

PCM's collaboration with ACG has streamlined its acquisition process, allowing for the quicker expansion of its portfolio. In 2024, when ACG identified a 5.2-acre development site near Microsoft's campus and across the street from the Overlake Station Light Rail, PCM's liquidity allowed the firm to propose an all-cash offer—a decisive advantage in a crowded bidding process.

"Traditional funds are hindered by the layers of investment committees they need to go through," Paulus explains. "We cut out all of that bureaucracy at PCM. Being nimble is our competitive edge."

ACG's Next Frontier: Capitalizing on a Supply Cliff

With U.S. multifamily construction starts down 42% since 2022 and annual nationwide rent forecasted to grow 5% per year through 2028, ACG sees a generational opportunity to deploy capital and double down on its vertically integrated model in a market ripe for development.

"Our in-house teams control the design, development, construction and property management processes giving us a competitive advantage compared to our competitors who must rely on third parties," Kuula says. "In 2024, ACG led one of the few construction starts in the entire Seattle Metro area. This efficiency, paired with PCM's financial agility, places ACG in a prime position to seek out and execute on opportunities where others cannot."

From affordable housing to luxury mid-rises, ACG's development and investment strategy reflects the dynamic evolution of the West Coast. For Kuula and Paulus, the formula remains rooted in Roger Kuula's original ethos: "Solve essential problems, be obsessed with operational excellence, and the returns will follow."