May Blog – Q2 Capital Markets Update

In today’s multifamily market, the difference between a good investment and a great one often comes down to how you capitalize—not just what you acquire.

The CF Capital approach is simple and focused: We combine deep market intelligence, disciplined execution, and a vertically integrated platform to create long-term value through multifamily real estate. That mindset is proving essential in 2025, as capital markets sit at a cautious crossroads.

Volatile treasuries, unclear Fed signals, and choppy economic data are keeping many investors on the sidelines. But we believe in precision over prediction. Rather than wait for clarity, we act with focus—backed by a rigorous investment framework and a clear understanding of where risk meets reward.

We’re navigating a “higher-for-longer” interest rate environment by revisiting our underwriting, staying nimble on pricing, and sharpening our assumptions around cap rates, rent growth and expenses. We’re structuring deals to perform across cycles—not just in ideal conditions.

Where are we active? In markets in our region with demographic momentum, constrained supply, and strong wage growth—areas where durable demand supports both income and asset value. And we’re using structured capital tools, including preferred equity at times and flexible financing, to optimize returns while protecting downside.

We’re also focused on opportunities emerging from the debt maturity wall. Assets with expiring low-rate loans are coming to market, and we’re targeting those with repositioning potential or refi-ready profiles.

One recent example is a property we acquired in the Midwest where we launched a focused value-add program - upgrading interiors and improving digital leasing workflows. That’s operational alpha in motion—measurable, material, and repeatable.

CF Capital is not a wait-and-see firm. We’re built to act—with an in-house team that spans acquisitions, asset management, construction, and property operations. That integration gives us the speed, control, and insight to move decisively, even when the broader market hesitates.

As always, our mission remains clear: connect and service capital to high-quality multifamily housing investments in the Midwest and Southeast. This means delivering strong, risk-adjusted returns through thoughtful investing and hands-on execution. In today’s climate, that means staying grounded in fundamentals, building for resiliency, and making prudent long term-oriented investment decisions.