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Real Estate

Multifamily Gap Capital

July 2024 – 3 min read

Dags Chen and Lincoln Janes discuss that while the cooling of the Sunbelt multifamily property market is creating cracks in the capital stacks of owners, it is also presenting potential opportunities for investors.

Many recent buyers and developers of Sunbelt multifamily properties are overleveraged and need capital to bridge the gap between their debt balances and the significantly depreciated equity value of their holdings. The current pall over the asset class, however, obscures its long-term attractiveness for patient investors.

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Dags Chen, CFA

Head of U.S. Real Estate Research & Strategy

Lincoln Janes, CFA

Director, Real Estate Research & Strategy

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