From the Desk of CF Capital: March Investor Report
Hello Friends and Investors,
We hope you and yours are doing well. This month, we're excited to be welcoming two new best-in-class team members to the CF Capital Family! Join us in celebrating the arrival of Andi Weis, Regional Property Manager, who brings 20+ years of experience in the property management business with institutional and private equity operational experience with prestigious outfits with strong presence in our markets. Andi is a graduate of the University of Louisville, a proud mom, avid fitness enthusiast, and we are very excited to bring her expertise to our portfolio to help drive results across the portfolio. Andi's leadership will be instrumental in ensuring our partners' interests are actively pursued and optimal results are driven on each of our sites now and into the future. This hire is pivotal for executing current and future investments at the highest level and we couldn't be more excited to be working with Andi.
Additionally, we are excited to be welcoming Dan Michael, Senior Real Estate Analyst, joining CF Capital from Equity Residential where he worked with the acquisitions and asset management teams in the same capacity. Dan will be bringing his sophisticated perspective toward leveling up our acquisitions team, asset management team, and investor relations team to help drive business results. Dan hails from Chicago and is a graduate of the University of Illinois. He enjoys golf, football, and all things Chicago sports. We're very lucky and excited to be bringing Dan on to our team to help us strengthen our intelligence and decision-making to optimize our future and current investments, along with leveling up our investor experience.
Aside from these updates, we always think it's helpful for us to share our perspective on the market and where we see things going. If we didn't say the last couple of years have been challenging in this business we would be lying, to put it frankly. Most in real estate would agree that we've gone through a meaningful market downturn in large part induced by the most rapid rate hiking cycle in history, and a collection of other extreme headwinds (including factors such as inflation, insurance volatility, along with several other operational challenges). While the last couple of quarters have brought more stability, the market has still been doing its darndest to catch its footing and find some equilibrium, yet the forecasted outlook is still murky. Prices for multifamily assets have come down, creating compelling buying opportunities, but in large part there's still a bid/ask spread in the market of about 10%, causing the transaction market to remain largely muffled. All the while, our tireless acquisitions efforts have yielded several very attractive potential acquisitions we're circling closely that we hope to be sharing more with you soon.
With such a choppy market, it's been a challenging time for us to acquire more deals and offer more opportunities to partners such as yourself at the rate we desire. Nevertheless, we continue to invest in our business and grow tactfully and thoughtfully with the long term in mind. This, after all, is a cyclical business, and we are believers that continually investing in our infrastructure, team, and systems is always prudent, especially as we operate with long-term in mind. As we continue to strengthen our investment platform throughout all stages of the cycle, we are positioned to capture significantly attractive investment opportunities that this "window of opportunity" of market instability is generating and delivering results to our partners, such as you. We anticipate that as 2024 progresses, more truly motivated sellers ready to transact at market levels will surface, as the significant wave of debt maturities materialize mid-year. There hasn't yet been enough of a reason for sellers to actually sell in a depressed valuation market until now, yet that is rapidly changing.
Looking ahead, we're excited to invite you to our upcoming investor event. On April 11, from 5:00 pm - 7:00 pm, join us for an expert panel, networking, and a happy hour to follow. We look forward to a lively discussion on the state of the market, expert analysis and forecasts, deal-making, and relationship-building. We're excited to be collaborating with the folks at Ness & Associates on this exciting event, and hope to see you there.
We look forward to seeing you soon and exploring expanding our partnership together during this unique time in the market! Don't hesitate to reach out and schedule a time to discuss anything whether that be market analysis, current pursuits, your goals and objectives or upcoming investment opportunities.
In Partnership,
Tyler and Bryan
PS. There's no higher compliment than you referring us to your friends, family, and colleagues. We'd be honored by the opportunity to become a part of their trusted networks. Share your experience investing with CF Capital & invite others to become an investor here.