From the Desk of CF Capital: October Investor Report

Hello Friends and Investors,

We hope you and yours are well as we welcome the vibrant season of autumn. October is a time of change, and in the real estate investment landscape, change is the cornerstone of progress and growth. As we dive into this month's report, we're looking forward to sharing with you an update on the multifamily real estate market, a glimpse into CF Capital's recent endeavors, and an exciting announcement regarding our current analyst position recruitment.

Market Overview: Multifamily Real Estate Update

Multifamily real estate fundamentals in our target markets have remained dynamic and resilient despite the drastically evolving economic landscape. Demand for quality apartments in our markets continues to be robust, propelled by a range of factors, including high mortgage interest rates pushing people away from home purchases, population growth and job growth. In comparison, some higher cost of living markets across the country are seeing actual rent rate declines in today's marketplace. Our slow and steady markets continue to chug along.

Recent market "whiplash" from the fastest rate hiking cycle in history remains a significant headwind. Looking back, rates today are 5 times higher than where they were 18 months ago, an unprecedented sea change creating distress and potential opportunity for investors. Capital markets remain extremely volatile, influencing current operators' decision making for capitalization, growth targets and the resulting overall investment landscape. Looking ahead to 2024, there are reported to be hundreds of billions of dollars worth of multifamily debt coming due (comprised of hundreds of thousands of apartments across the country), and the story is still unfolding with regard to how the landscape will take shape regarding positioning to recapitalize, refinance, or dispose of assets at depressed pricing due to increased interest rates and cap rate expansion. Time will tell, and a lot will likely change, while we remain dialed in to protect investor capital and keep open options for flexibility as best as possible as the storm passes.

CF Capital Updates

At CF Capital, our team remains committed to delivering exceptional value and superior service to our investors. Over the past month, we finalized our partnership with JG2 to begin the process of bringing property management in-house to further align investors interests to the property management function. Over the course of the next 24 months, we will be leveraging JG2's outstanding team, systems, functions and expertise in property and construction management as we work together to build out the same within CF Capital's four walls. Our ongoing projects are progressing, and we're focused on driving operational efficiencies and enhancing the overall value of our portfolio. Our dedicated team works tirelessly to ensure that our investors' interests are at the forefront of every decision we make.

Also, during September we closed on Elevate at Nulu, and have been very pleased with an extremely smooth takeover. Our property management partner for this asset, BH Management, shared that from their perspective it has been one of the smoothest takeovers they've seen even from the perspective of over 100,000 units under management. Furthermore, we're seeing immediate organic rent growth already begin to exceed our proforma on renewals and make readies. This is great news for our investors as renovations begin to ramp up, as we anticipate continued positive momentum. If you'd like to join us in this deal, there's still a couple of slots available!

Lastly, we continue to identify and assess potential multifamily acquisitions that offer compelling value and align with our investment thesis. We're seeing more compelling opportunities than we've seen in quite some time, and anticipate that trend continuing as capital markets continue to be volatile. With a long term perspective, such investors are positioned well to capitalize on the state of the market.

Exciting Announcement: Analyst Position Recruitment

We're thrilled to announce that CF Capital is actively recruiting for the position of Analyst to join our team. This role offers a unique opportunity for driven and experienced individuals to join a fast paced and high performing team of real estate professionals. If you or someone you know is passionate about real estate analysis, possesses strong analytical skills, and is eager to take their career to the next level, we invite you to explore this exciting opportunity by visiting our careers page here.

Thank you for being an integral part of our community. We look forward to keeping you updated with the latest developments in the real estate market and our journey at CF Capital. If you have any questions, comments, or suggestions, please feel free to reach out to us.

Wishing you a prosperous October!

In Partnership,

Tyler & 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.