Hello Friends and Investors,

Join Us Tomorrow (July 9) – for the Kentucky Chapter of CCIM's State of the Multifamily Market. We’re excited to be co-hosting the State of the Multifamily Market event at Frost Brown Todd, where we’ll break down where things stand nationally and here in the Midwest, what investors are demanding most, and how we’re positioning for the second half of 2025 and beyond.

CCIM State of the Multifamily Market

📍 Date: Wednesday, July 9
🕐 Time: 11:30a - 1:00p
🎟️ Reserve your spot + full details: [→LINK]

Whether you’re an active investor or simply looking to understand where multifamily fits in a volatile environment, this will be a high-value session you won’t want to miss. It will be recorded and circulated for those who cannot attend in person.

At the halfway point of 2025, we’re seeing the early signs of what we’ve been patiently positioning for: a market that’s slowly turning a corner. While volatility and uncertainty have been dominant themes for the past 24 months, long-term oriented investors are about to be rewarded—and we believe the second half of this year will offer some of the best opportunities we’ve seen in this cycle.

Market Overview

Trends We’re Watching Closely

At CF Capital, we’re staying aggressive in underwriting, touring, and offering—but remain committed to patience. The best opportunities often surface just after the market begins to turn.

Cap rates remain wide in secondary and tertiary markets, offering a yield advantage compared to compressed coastal pricing.
Rent growth is moderating nationally (~1% YoY), but the Midwest continues to outperform with 3–4% YoY growth in Class B suburban assets (Yardi Matrix, June 2025).
Interest rate pressure is easing slightly, and many analysts expect the first Fed rate cut as early as Q4 2025, offering relief for refinancing and acquisitions (Bloomberg, July 1).
Distress is real but selective—and not widespread. Smart investors are deploying with discipline, not desperation.
Industry Insights: IMN Southeast Multifamily Middle Markets Conference

In June, Bryan and I attended the IMN Southeast Multifamily Middle Markets Conference in Atlanta, where we connected with top operators, lenders, and equity partners.

Our biggest takeaway? There’s no magic bullet. The top-performing groups are winning by doing the fundamentals better than ever—execution, leadership, communication, and culture. We're proud to say that CF Capital continues to lean into these principles—and we’re also evolving through AI, tech, and systems that position us for what’s next.

Promissory Note: $1.65M Fully Subscribed

We’re pleased to share that the Cambridge Courtyard Promissory Note raise has been fully funded. Thank you to those who participated—your confidence and conviction make these opportunities possible.

We’re currently building a waiting list for similar opportunities, and may have 1–2 more promissory notes coming soon, along with a potential equity investment offering later this year. If you’d like to be among the first to preview these deals, reply directly to this email to join the priority list.

Final Word: Get Ready for the Next Wave

We believe the patience many of us have shown over the past few years is about to pay off. The noise is still loud—but so is the signal for disciplined operators and long-term capital.

If you’re looking to deploy in the right deal, at the right time, with the right partner—stay close. The next phase is coming, and we’re well-positioned to lead.

Thank you for your trust and partnership. Let’s finish the year strong, together.

Onward,
Tyler & Bryan
Managing Partners, CF Capital