AXCS Capital Acquires Propvetter for Under $1M

Real estate investment management firm AXCS Capital announced Tuesday that it has acquired artificial intelligence platform Propvetter for under $1 million in cash.

Holding company Axcs Capital will bring Propvetter’s AI-powered commercial real estate transaction analysis and due diligence for lenders, investors, and brokers in-house to its debt brokerage subsidiary George Smith Partners, said Evan Kinne, CEO at Los Angeles-based AXCS, who confirmed the million-dollar payment.

The acquisition came about as part of AXCS’s plan to create a more robust technology platform, Kinne said.

“Our current technology platform that we’ve developed in-house is fully used inside George Smith Partners as internal tools,” he said. “But as part of our mission to generate useful information for our clients, we view Propvetter as a natural tool and technology for the broader real estate world. And we will do that for free. It’s not necessarily a profit center for us that we’re trying to create. Rather, we have a lot of information that comes up in deals that is beneficial for clients of our firm, and we want to enhance what we’re doing with Propvetter.”

Propvetter’s technology is designed to streamline underwriting and deal analysis across George Smith Partners’ investment and advisory divisions, with the nationwide firm planning to roll out select features for clients in the coming months.

Propvetter founder Eric Migicovsky will join AXCS as a director of investments and technology. Migicovsky spent more than 15 years in institutional CRE finance and investing before founding Propvetter in 2025 to automate document extraction, risk identification, and deal analysis. He will lead the integration of Propvetter’s technology within George Smith Partners and AXCS’s investment arm while contributing to deal origination and underwriting activities.

“I started Propvetter and was talking with Evan continuously about how AI is evolving in commercial real estate,” said Migicovsky. “They were a customer of ours, and we just continued this natural conversation between the two of us. I was really excited about what the team was doing over there. In some commercial real estate firms — whether capital markets, advisory, acquisition groups or debt funds — there is some adoption of AI, but it’s only a small percentage of companies that are really leaning in and taking a leadership role in this space.

“And I view AXCS as one of those firms that is really looking at AI integration, not just as something to sprinkle on top, but to truly integrate AI within workflows and processes to create better outcomes for their clients. So I found that to be exciting and complementary to what I was building at Propvetter.”

Migicovsky said he was also excited about what AXCS is building on the investment side of the business, which he sees as an opportunity to further integrate Propvetter’s technology.

“From a resource perspective, I thought it would be a great combination, and be able to give me the resources that I need to continue building the product,” he added. “It allows me to leverage the internal tech team that AXCS has, in addition to their history and resources, to grow the product and build something great.”

Although the idea for and the prototyping of Propvetter began in 2024, Migicovsky said, he admitted that it has been a fast and furious challenge in moving from entrepreneur to in-house executive.

“I’m really impressed with what the AXCS and George Smith teams are building,” said Migicovsky. “I’ve been in startups, and they are rewarding and challenging, but it’s also nice to be part of a bigger institution, even though it’s an entrepreneurial organization, and to have those resources and beyond on the investment side of the business, as well. That’s what attracted me, and I feel great about joining the team.”

As for the evolution of AI in the real estate industry, Migicovsky has experienced the success and the ongoing challenges for incumbent companies.

“Over the last year, I’ve spoken to many, many commercial real estate firms that are trying to wrap their heads around this new world that we’re living in,” he said. “I always say my opinion is that the first 50 percent of AI integration and innovation is easy. You get a corporate-wide ChatGPT or Claude — pick your foundation model provider — and that is pretty straightforward. That’s the lowest-hanging fruit.

“And the second 50 percent takes a ton of work. It’s integrating how firms themselves look at deals and the decisions that they make — as Evan mentioned, the history, understanding and intuition of deals. How do you get that from people’s brains to a system that actually provides outcomes that firms can use? So, I was thinking about where this product would grow, taking what I built and integrating it into AXCS and George Smith, which would be a powerful next direction.”

Talking generally about AI integration in real estate, AXCS’s Kinne described “a lot of chatter in the news about how AI is displacing entry-level jobs and so forth, but from what I’ve seen in the real data, the opposite is sort of true, at least now in the short term. If anything, there has been a wage increase in some of these sectors that people look at as potentially threatened by AI. I think that’s very interesting, because what you’re seeing is that must mean there’s some true leverage there internally within organizations.

“The world’s rapidly evolving, and what we’re focused on is our own view and institutional knowledge, making sure that we don’t lose a hold of that,” Kinne added. “At the same time, leveraging our tools — like sharpening your axe to cut down a tree more quickly. We may have the expertise on how to fell the tree in the right area, but I think what AI does is maybe do it a little bit more quickly, more repeatable with fewer errors, and hopefully identify potential problems, frauds, deal issues, etc.”

Philip Russo can be reached at prusso@commercialobserver.com.