Hello Friends and Investors,

As summer’s momentum fades and the fall season settles in, it’s a powerful moment to reflect, recalibrate, and reaffirm our strategic direction. Despite the challenges these past years, CF Capital remains grounded, agile, and ready. We continue to anchor our approach in discipline — and if history is any guide, timing is everything.

Market Overview

Market Snapshot: Midwest Multifamily Holding Strong   

• Our Region Outpaces National Trends: While U.S. average rent growth has cooled to about 0.7% YoY, our Midwest target markets such as Columbus (+3.9%), Indianapolis (+2.3%) and Cincinnati (2.4%), continue to outperform.
  
• Occupancy Remains Robust: Apartments across our target markets hovered around 95% occupancy in Q2, and absorption exceeded national average — 116,000 units absorbed in Q2 alone, one of the strongest quarters in two decades.
  
• Sun Belt Supply Cooling: Nationally, construction is slowing, especially in high-supply regions. As starts decline, fundamentals tighten — setting the stage for renewed rent growth in 2026 
  
• Tax Tailwinds for CRE: The newly enacted OBBBA Act reinstates 100% bonus depreciation, solidifies 1031-like exchanges, and enshrines other tax advantages — providing clarity and upside for long-term investing

Bottom Line: Midwest Multifamily continues to show durable fundamentals — healthy rents, occupancy, and demand — anchored by limited new supply and favorable policy tailwinds.

What We’re Watching: Active Positioning, Strategic Patience 

Here’s where CF Capital stands today:

• We are actively underwriting, touring, and making offers. While nothing is currently locked in, our pipeline remains robust, with a follow-through mindset — no negative leverage, conservative assumptions; only prudent deals.
  
• We’re optimistic about offering a new equity investment opportunity before year-end.
  
• A promissory note opportunity may surface depending on the Paddocks refinance outcome — likely in the next few weeks.

Our message is both grounded and forward-leaning: we’re ready to act when opportunities align with our standards.

Team Growth & Leadership

Building for the Next Phase  

As we continue laying the foundation for long-term growth, we’re expanding our leadership and deal-making capacity through the growth of our team:

1. Operations-Minded PartnerPurpose: Scale CF Capital’s operational infrastructure and allow the senior leadership to focus on platform growth.
   
   
   Objective: Lead asset-level excellence, enable CF’s ambition to scale to 15,000 units over the next 5–7 years, and eventually (ideally) assume company-level operations oversight in the future. 
   
   PARTNER REQUIREMENTS
   
2. Fractional Acquisitions Associate (Performance-Based)Purpose: Ramp up our sourcing pipeline and enable disciplined access to off-market and value-add opportunities throughout our target market. 
   APPLY NOW

If you know someone who aligns with our core values of Leadership, Excellence, Integrity, Purpose and Grit for either of these roles, please reach out. Level 10, A players only, please! 

Featured Articles

Three Indications Private Real Estate has Found its Bottom

Private real estate is showing signs of a robust recovery, with improving returns, loosening lending standards, and rising transaction volumes—all pointing to a more favorable environment for capital deployment in the quarters ahead. [Read → HERE]

Rising Powerhouses: The Cities Making America’sEconomic Future

Across the U.S., cities are seeing steady growth driven by business activity, rising incomes, infrastructure upgrades and expanding populations. And, it’s not just the usual hotspots leading the way. Instead, innovation, tech adoption, workforce shifts and global trade changes are reshaping where and how growth happens.[Read → HERE]

CF Blog

Why Smart Capital Is Staying PutWhy Smart Capital Is Staying Put: Long-Term Thinking in a Noisy MarketMarkets are noisy. Headlines shift by the day. But smart capital isn’t chasing chatter—it’s doubling down on fundamentals, location, and alignment with the future.[Read → HERE]

Quote of the Month

 "Enthusiasm is common. Endurance is rare."

- Angela Duckworth 

Looking Ahead

End-of-Summer Reflection

As summer winds down and routines reset, we’re reminded that this business requires both discipline and patience. The last few years have tested every operator and investor, but they’ve also reinforced a simple truth: steady, thoughtful execution creates long-term success.

At CF Capital, we’re not in the business of chasing noise. We’re here to stay ready and continue to grow — so when the right opportunities come into view, we can move with confidence.

Thank you for being on this journey with us. We look forward to the months ahead and the opportunities they’ll bring to create lasting value together.

In Partnership,
Tyler & Bryan

Hello Friends and Investors,

As the sun begins to set on summer, we’ve been reflecting on a timeless truth in this business: the real wins come to those who are steady in uncertainty and prepared for what’s next.

At CF Capital, that remains our approach as we evaluate opportunities, monitor evolving market conditions, and prepare for strategic moves in the second half of the year.

Market Overview

Market Pulse: Stability Beneath the Surface

The multifamily market continues to exhibit signs of regional strength amid national moderation:

Midwest markets are outperforming national rent trends, posting 3–4% YoY rent growth ~1.1% nationally (Yardi Matrix, July 2025).
Occupancies remain healthy, ranging between 93–95% across our core metros.
New construction has slowed dramatically, setting the stage for stronger absorption and pricing power into 2026.
Meanwhile, there’s ongoing discussion around Fed rate cuts, but investors should note: lenders are increasing spreads in some cases, meaning any near-term cuts may not materially lower borrowing costs. It's a reminder to underwrite to what is, not what we hope will be.

Event Recap: State of the Market Multifamily Roundtable

In partnership with CCIM Kentucky and Frost Brown Todd, CF Capital hosted a dynamic conversation last month exploring the real forces shaping CRE. We're excited to share with you the entire recording of the event.

View Video

Top takeaways:

• The “One Big Beautiful Bill Act” (OBBBA) is expected to have sweeping implications on how commercial real estate is financed in the years ahead. We discussed this in detail during the panel.
• Multifamily lending is stable—but changing. HUD and agency lenders remain a bright spot, but the panel discussed looming shifts like GSE privatization and the impact of regulatory policies.
• “Be too dumb to quit—and never run out of cash.” The best operators are relentless in the face of uncertainty and recognize the supreme importance of liquidity.

This was a powerful gathering of 75+ attendees consisting of lenders, operators, attorneys, and investors—and we’re committed to staying ahead of these shifting tides so you don’t have to. We’re very happy to share the full recording for folks who were unable to attend in person.

10 Most Landlord-Friendly States in 2025
CF Top10States-1
TurboTenant - Landlording in the wrong state can quickly turn into a nightmare. You could end up with hard-to-evict tenants, high property taxes, and rent control that makes it impossible to keep up with the market.

For these reasons, knowing the country’s most landlord-friendly states is a wise move. Owning property in a state where eviction laws, property taxes, and policies all work in your favor makes real estate investing a whole lot easier.

[Read → HERE]

The Geography of Multifamily’s Growth: Urban vs. Suburban (and Everything in Between)
Screenshot 2025-08-05 at 2.55.08 PM
Chandan Economics - The past decade has been a whirlwind for the multifamily sector — from the urban renaissance of the early 2010s to the workforce housing push of the late 2010s, and the post-pandemic reshuffling of geographic demand. The only constant has been its continuous evolution.

In this briefing, we explore how multifamily growth has unfolded across the urban spectrum over the past 10 years — and why the space between suburban and urban markets deserves a closer look.

[Read → HERE]

Blog

Multifamily Sponsor Due Diligence

Why Track Record & Discipline Matter More Than Ever

With loan maturities looming, elevated financing costs, economic unpredictability, and surging renter demand—investors are pushing sponsors....

[Read → HERE]

Strategic Outlook: Second Half of 2025

We continue to evaluate a robust pipeline of potential acquisitions. The market remains relatively stable, and while we’re active in making offers, we’re maintaining discipline—we are not stretching for deals that don’t pencil or drift toward negative leverage.

We’re optimistic that one or more high-quality investments will come to fruition in the back half of 2025—and as always, we’ll bring them to your attention as soon as the time is right.

You'll be among the first to hear about these opportunities as they take shape.

End-of-Summer Perspective

As kids head back to school and vacations wind down, we’re reminded that the multifamily game is measured in seasons, not weeks.

We continue to operate with a mindset of calm, long-term capital stewardship—focused not on reacting to noise, but on quietly building momentum.

We’re grateful to be on this journey with you, and we look forward to what lies ahead.

In Partnership,

Tyler & Bryan

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

Hello Friends and Investors,

It’s hard to believe we’re nearly at the halfway mark of 2025. The first five months of this year have provided clarity on several fronts: how the market is adjusting to elevated interest rates, how demand for multifamily housing is evolving, and where new opportunities are beginning to emerge. In short—the Midwest multifamily market remains resilient, but it’s a market that rewards discipline. We’re seeing both encouraging stability and some headwinds to navigate carefully as we look ahead to the second half of the year. Below is a snapshot of the key trends shaping our strategy moving forward.

Market Overview

Market Trends at Mid-Year

Occupancy & Rent Growth:
Midwest Class A/B suburban assets continue to outperform many U.S. markets in terms of occupancy and rent growth. As of May:

• Occupancy remains strong across Louisville, Indianapolis, Columbus, and Cincinnati at 93–95%, with suburban product seeing the most consistent demand.
• Rent growth is holding steady in the 4% YOY range, continuing to outpace the national average of ~1%.

Absorption:
Net absorption in the Midwest remains healthy and above national trends, driven by steady job growth and in-migration from more expensive markets. Suburban submarkets are absorbing new supply well, while some urban core areas are seeing slower lease-ups due to affordability gaps.

Supply & Construction:
New starts are slowing. Rising construction costs, volatile financing, and elevated interest rates have caused many developers to delay or cancel projects. We expect the supply pipeline to materially contract after late 2025, which will further strengthen fundamentals for existing assets heading into 2026–2027.

Capital Markets:
Financing remains expensive, but interest rates appear to have peaked. The market anticipates potential Fed rate cuts later this year, which could help improve debt terms by 2026. Cap rates in Midwest markets remain 5.25% to 6.25%, offering attractive relative yields.

How We’re Adjusting Our Strategy for H2 2025

Acquisitions:
We are taking a high-conviction, selective approach. We continue to prioritize off-market and value-driven opportunities where pricing reflects current realities—not 2021 expectations.

• We’re most focused on suburban Class B with value-add potential, where demand remains sticky, and new supply is limited.
• Replacement costs have risen so sharply that buying existing assets well below replacement cost remains compelling.

Operations:
Operational execution is more important than ever in this environment:

• We are laser-focused on driving NOI through improved leasing, renewals, expense control, and asset-level KPI tracking.
• Resident retention is a key focus, as some tenants are more cautious given broader economic uncertainty.

Capital Markets & Financing:
We are actively working on several refinancing initiatives to position properties for longer-term holds and enhanced cash flow while navigating to more favorable exit conditions.

Patience is key: We are not forced sellers. With stabilized assets at extended financing terms, we can time future exits to align with stronger capital markets.

Exits:
With cap rates still elevated and buyer demand selective, we are not pursuing near-term exits unless pricing achieves close to underwritten returns. The better path for most assets today is to optimize performance, refinance where advantageous, and target exit in a more favorable cycle (2026–2027+), when interest rates and transaction velocity are likely to improve.

CF Capital's Strategic Positioning

Here’s where we’re focused:

• Refinancing select assets to support longer-term holds while the market stabilizes.
• Targeting off-market and value-add opportunities below replacement cost.
• Enhancing property performance and investor reporting for greater transparency and trust.

We believe the next 12–18 months will offer some of the most compelling buying opportunities in years—for those ready to act. Our approach remains long-term, disciplined, and data-driven.

Active Opportunity

Coming Soon! We have an active high-yield lending deal secured by quality real estate coming soon. We'll be announcing more details to the investor base soon.  Stay tuned!

CF In the News

MULTI-HOUSING NEWS

Multifamily Investors. Buying Time?

At the beginning of 2025, multifamily investment was set up for another strong year, with investors more interested in assets across a wider range of markets than than at any point since the rate hikes began in 2022. Check out where CF Capital's Tyler Chesser opined on the market. Read More

MULTIFAMILY DIVE

How Investors are Closing Deals Despite Treasury Volatility.

In the three years since the Federal Reserve began hiking interest rates, apartment buyers and sellers have grown accustomed to dealing with volatility when underwriting deals. Tyler also contributed to this article - check it out. Read More

Featured Articles

REALPAGE - Midwest Region Leads U.S. in Rent Growth in April

The Midwest has led the nation for rent growth in recent years, straying from the region’s “slow and steady” reputation. As of April 2025, the Midwest reported the highest annual rent growth of any region nationwide at 3.6%. That was notably ahead of the U.S. average of 1%. Read More

CRE DAILY - CRE Recovery Holds, but Maturity Walls and Distress Loom

CRE transaction volumes have continued rebounding in 2025, but distress levels and loan maturities suggest turbulence. Read More

CF Capital Updates

A Personal Note from the Team

It’s been a busy spring not only for the markets but for our team personally—and we wanted to share a few happy updates from the CF Capital family:

• The Chesser Family welcomed their third child—a healthy baby boy—in May! Mom, baby, and family are all doing great.
• Bryan’s middle son graduated kindergarten and is ready for first grade in the fall.
• Rachael’s youngest also graduated kindergarten, and her oldest finished 5th grade and is headed to middle school.
• Leslie’s son wrapped up his 3rd year at Tulane University and is already planning his senior year.
• Dan’s sister graduated from undergrad at the University of San Diego—an exciting milestone for their family.

We’re grateful to work alongside such a talented and close-knit team, and it’s special to celebrate these personal milestones alongside our professional growth.

Quote of the Month

"Soon is not as good as now."- Seth Godin

Looking Ahead

As we move into the back half of 2025, we remain confident in the long-term fundamentals of the Midwest multifamily sector. Demand is steady, new supply is slowing, and while the capital markets remain choppy, signs point to a more favorable environment emerging over the next 12–24 months.

At CF Capital, we will continue to lean on discipline, operational excellence, and strategic patience—a recipe we believe will generate strong long-term results for our investors.

As always, we appreciate your trust and partnership. If you’d like to discuss the market or any of our current strategies in more detail, we’d welcome the conversation.

In Partnership, Tyler & Bryan

Hello Friends and Investors,

As Louisville wrapped up another unforgettable Kentucky Derby season, we’re reminded why this region is so special—not just culturally, but economically. While the world descended on Churchill Downs for the 151st Run for the Roses, our focus at CF Capital has remained steady: identifying resilient opportunities in multifamily housing across our broader region.

And the timing is compelling. We’re in a transitional phase of the real estate cycle. National headlines spotlight high interest rates, capital market uncertainty, and slower transaction volume—but on the ground in the Midwest and upper Southeast, we’re seeing strong occupancy, rent growth outpacing national averages, and early signs of a market rebound.

In the News

Midwest Multifamily Market: Resilience in the Heartland

Class A/B suburban assets in Louisville, Indianapolis, Columbus, and Cincinnati continue to perform well:

• Occupancy remains high, with Midwest averages at 93–95%, outpacing the national average (~92%).
• Rent growth averaged 2.5%–4% year-over-year—more than double the national rate (~1%).
• Demand is strong: Louisville and Columbus rank among the top 10 U.S. metros for occupancy and absorption.
• Cap rates range from 5%–6%, offering better yields—and often better spreads over borrowing costs—than coastal or Sunbelt markets.

The region’s steady job markets, in-migration, and relative affordability continue to support long-term multifamily demand.

Capital Markets & Financing: Challenging but Stabilizing

The Midwest is benefitting from its steady job markets, population in-migration, and relative affordability—all of which support long-term multifamily demand.

Interest rates remain elevated, with most agency debt pricing between 5.35%–6%, depending on leverage and structure. Still, we’re seeing encouraging signs:

• The Fed is widely expected to begin rate cuts later in 2025, which could boost values and transaction activity.
• Cap rates, which rose sharply in 2023, appear to have leveled off. Some forecasts even project modest compression by year-end.

We’re maintaining discipline in our underwriting, prioritizing deals with strong in-place cash flow and purchase prices below replacement cost.

Supply & Construction: Slowing Pipeline, Higher Costs

Construction is moderating across the Midwest—a favorable trend for investors looking 18–24 months ahead:

• Starts are down due to high interest rates and material costs (up ~30%+ since 2020).
• Recent tariffs on Canadian lumber and other materials could push costs higher, adding uncertainty and slowing new project approvals.
• With fewer new starts, especially in suburban submarkets, we expect a tighter supply environment to support future rent growth.

In the News

Featured Articles

5 Steps to “Do More Good“ and Make a Lasting Impact
We can all learn so much about living from Dan. His legacy illustrates how we too can make not only a living but also a lasting impact. The book features lessons that Ghosh, a non-profit executive and entrepreneur, has learned from 30 very different people with whom he has spent time throughout his career.

Read More

U.S. Apartment Market Sees Strong Leasing Momentum

The U.S. apartment market saw strong momentum in new lease trade-out in the first three months of 2025. The month-over-month change in new lease trade-out ranked consistently around 1.4% in January, February and March.

Read More

CF Capital Updates

CF Capital's Strategic Positioning

Here’s where we’re focused:

• Refinancing select assets to support longer-term holds while the market stabilizes.
• Targeting off-market and value-add opportunities below replacement cost.
• Enhancing property performance and investor reporting for greater transparency and trust.

We believe the next 12–18 months will offer some of the most compelling buying opportunities in years—for those ready to act. Our approach remains long-term, disciplined, and data-driven.

Looking Ahead

As Derby season winds down and we head into summer, our outlook remains strong for multifamily in our core markets—Kentucky, Indiana, Tennessee, and Ohio. Resilient demand, stable cash flow, and long-term appreciation make this asset class one of the most attractive places to invest today.

Thank you for your continued trust and partnership. We welcome your questions and look forward to sharing new opportunities soon.

In Partnership,

Tyler & Bryan

Hello Friends and Investors,

As Q2 begins, the multifamily market continues to navigate a dynamic landscape. While the Federal Reserve has maintained its cautious stance on rate cuts, signs of capital markets thawing are beginning to emerge. Meanwhile, rent growth is stabilizing, transaction activity is slowly increasing, and operational efficiency remains a top priority for investors and operators alike.

At CF Capital, fresh off our quarterly offsite leadership meeting, we are laser-focused on identifying high-quality acquisition opportunities, optimizing portfolio performance, and maintaining a disciplined investment approach. Here’s what’s shaping our outlook this month:

1. Multifamily Market Update: Signs of Momentum

• Interest Rates & Capital Markets: The Fed is still signaling potential rate cuts later in the year, which could provide tailwinds for transaction volume in the second half of 2025.
• Rent Growth Holding Steady: Nationwide rent growth sits at 2.9% YoY, with Midwest markets continuing to lead, averaging 3.6% growth year-over-year.
• Lender Sentiment Improving: Debt markets are beginning to show more flexibility, with certain lenders re-engaging and offering competitive financing for well-structured deals.

2. Midwest Multifamily Insights: Strength in Stability

The Midwest remains one of the most stable and attractive regions for multifamily investment, particularly in this phase of the cycle.

• Occupancy Stability: Markets like Indianapolis (95.3%) and Louisville (95.0%) continue to outperform national averages.
• Affordability Advantage: With homeownership affordability still strained due to high mortgage rates, rental demand in Midwest markets remains strong.
• Acquisition Window Opening: Sellers are gradually adjusting pricing expectations, creating a more favorable environment for disciplined buyers with long-term capital.

Our focus remains on sourcing value-add opportunities where we can maximize operational efficiencies and drive sustainable cash flow.

3. CF Capital Updates: Momentum & Growth Initiatives

• Strategic Refinancing Initiatives: We are actively working on a few refinances across our portfolio to strengthen our capital structure and position select properties for longer-term holds. This ensures stable cash flow while allowing us to take advantage of a more favorable market cycle for future sales.
• Expanding Investor Engagement: We are implementing new reporting enhancements to provide greater insight and clarity into portfolio performance.
• Operational Efficiencies: Our asset management team is driving NOI growth by improving expense management and increasing revenue through targeted value-add strategies.

Featured Articles

FHFA Chief Reverses Biden-Era Renter Protections

Federal renter protections introduced by the Biden administration have been rolled back as the new head of the FHFA moves to reduce compliance burdens on landlords and lenders.

Read More

The ABCs of apartments: Demystifying the debate over asset classes

In what is often a heated topic, industry pros differ on what constitutes a class A, B and C building.

Read More

Looking Ahead

With the economic landscape evolving, our approach remains focused, disciplined, and opportunity-driven. While capital remains selective, we expect increasing transaction activity in Q2 and Q3, positioning us well for strategic acquisitions and portfolio enhancements.

As always, we appreciate your trust and partnership. If you’d like to discuss opportunities or have any questions, feel free to reach out!

In Partnership,

Bryan & Tyler

Hello Friends and Investors,

As we step into March, the multifamily landscape continues to evolve in response to shifting economic conditions. The Federal Reserve remains cautious on rate cuts, keeping capital markets tight, while operators are doubling down on efficiency, tenant retention, and cost management. Despite challenges, opportunities are emerging, especially in well-positioned secondary markets like the Midwest.

With Q1 nearing its close, we remain focused on strategic acquisitions, operational improvements, and disciplined execution to maximize value for our investors. Let’s dive into key updates for this month.

Market Overview

Multifamily Market Update: The Road Ahead

• Capital Markets Remain Restrained: Debt remains expensive, but select lenders are increasing activity for well-structured deals with strong fundamentals.
• Rent Growth Normalization: National rent growth is hovering around 2.8% YoY, with Midwest markets outperforming at 3.5%, reinforcing our investment thesis.
• Supply & Demand Shift: While new deliveries are peaking, a steep drop-off in new development starts suggests a tightening market in late 2025 and 2026, presenting strong upside potential for existing assets.

Midwest Market Intel: Stability & Strategic Opportunities

• The Midwest remains a stronghold for multifamily investment due to its affordability, job growth, and resilient demand. Key updates:
• Occupancy Holds Strong: Indianapolis (95.2%) and Louisville (94.9%) continue to show high renter demand despite national headwinds.
• Acquisition Environment Improving: Seller expectations are adjusting, with price discovery continuing to trend in favor of buyers with long-term capital.
• Cost Containment is Key: Insurance premiums and operational expenses remain a focus, reinforcing the need for hands-on asset management.
• At CF Capital, we are actively evaluating new acquisitions where we can create value while maintaining our disciplined underwriting approach.

In the News

U.S. Cap Rate Survey H2 2024
Cap rates continue to hold steady, with trends varying across sectors and strategies. Sales volume is expected to trend upward during 2025.

Apollo to Privatize Bridge Investment Group for $1.5B
Apollo Global will acquire Bridge Investment Group for $1.5B, effectively taking the massive multifamily and industrial portfolio private.

What We're Reading

The Self-made Billionaire Effect: How Extreme Producers Create Massive Value
by John Sviokla & Mitch Cohen

Scores of top-tier entrepreneurs worked for established corporations before they struck out on their own and became self-made billionaires. People like Mark Cuban, John Paul DeJoria, Sara Blakely, and T. Boone Pickens all built businesses—in some cases, multiple businesses—that are among today’s most iconic brands.

CF Capital Updates

Speaking Engagements & Growth Initiatives

• Speaking Engagements: Tyler recently had the opportunity to speak on the CCIM Multifamily Real Estate Finance panel, sharing insights on capital structuring in today’s evolving market.
• Investor Reporting Enhancements: We are rolling out new visual reporting elements to improve clarity and insight into portfolio performance.
• Operational Focus: Our team continues to refine management strategies to improve efficiency and enhance cash flow across our portfolio.

Looking Ahead

With rate cuts still on the horizon (and a potential trend developing in the Treasuries), we expect capital markets to gradually unlock liquidity later this year. Until then, we remain focused on long-term fundamentals, operational efficiency, and sourcing high-quality investment opportunities.

Thank you for your continued trust and partnership—we look forward to an exciting year ahead!

In Partnership,

Tyler Chesser & Bryan Flaherty

Co-Founders & Managing Partners, CF Capital

Hello Friends and Investors,

The first month of 2025 is already behind us, and if January was any indication, this year will be one of both challenges and opportunities in the multifamily space. Last week, Bryan and Tyler attended the NMHC 2025 Annual Meeting, where the industry’s top leaders connected & shared insights on capital markets, operational trends, and the outlook for multifamily investments. Amid shifting economic conditions, our strategy remains clear: prioritize operational excellence, disciplined acquisitions, and investor transparency.

NMHC 2025 Takeaways: Key Trends to Watch

The National Multifamily Housing Council’s annual gathering is a great way to meet with many of our partners, team and prospects and gain an even greater real-time pulse on where the industry is headed, to the benefit of our existing and prospective partners. We had a full slate of meetings with regionally focused brokers, lenders, institutional equity investors and leading service providers over the course of 3 days in Las Vegas. Some major takeaways include:

• Transaction Volume Remains Slow: Investors and sellers remain disconnected in the current market and transactions have been extremely muted over the past two years, as we all know very well, since the historic rate hiking cycle began. While there's a sense of optimism we're "turning the corner" and transaction activity will pick up this year, most of the industry's leading sponsors, equity investors, and brokerage shops expect 2025 transaction volume to be somewhat similar to the conditions of 2024. The major determinant factors will be whether or not interest rates actually do come in, and how lenders engage from a macro level as it relates to the wall of pending maturities. We continue to believe that we are in a "window of opportunity" and investments that pencil in this environment will prove to be very strong in the long term context.
• Capital Markets Tightening: Equity and debt markets remain constrained, but pricing adjustments are opening opportunities for well-capitalized investors. All the while, there remains a tremendous amount of equity seeking quality multifamily investments in our region.
• Operational Efficiency is Critical: With revenue growth moderating, operators must focus on expense management and value creation through technology and hands-on management.
• Supply & Demand Imbalance: While new supply is set to peak in 2025, development pipelines are slowing due to financing hurdles, which could lead to supply shortages in 2026 and beyond. This is expected to lead to further improving fundamentals on existing apartment communities.

Midwest Market Intel: Stability & Opportunity

The Midwest continues to demonstrate resilience amid economic uncertainty, with fundamentals that support long-term multifamily investment.

• Rent Growth Holding Steady: Midwest metros saw an average 3.2% rent increase in January, outperforming many Sunbelt and coastal markets.
• Occupancy Rates Strong: Key markets like Indianapolis (95.1%) and Louisville (94.8%) continue to show demand stability.
• Cap Rates Widening: Midwest cap rates are moderately adjusting in response to interest rate uncertainty, creating compelling acquisition opportunities.

We remain focused on leveraging these advantages to drive long-term value for our investors. 

Featured Article

Bessent says Trump is focused on the 10-year Treasury yield and won’t push the Fed to cut rates

The Trump administration is more focused on keeping Treasury yields low rather than on what the Federal Reserve does, Treasury Secretary Scott Bessent said.
Read More

The Intentional Legacy
by  David McAlvany 
Will your children value their legacy? The history of the world is the story of great financial, cultural and ethical legacies built in one generation, only to be squandered by second and third generations who were unwilling and unprepared for the roles and responsibilities that accompany them.   Learn More

Speaking Engagement & Team Growth

• CCIM KY & Louisville Apartment Association: Tyler will be speaking on an expert panel covering Multifamily Real Estate Financenext week at the 2025 Real Estate Economic Outlook presented by CCIM KY and the Louisville Apartment Association, sharing insights on capital structuring, the current economic climate and impact of interest rates and more in today’s market. If you'd like to attend, please register here.

2025 Real Estate Economic Outlook

Tuesday, February 18th

8:00a - 11:30a

The Jeffersonian

10617 Taylorsville Rd.

Louisville KY 40299, US

• CF Capital Team Expansion: We are continuing to strengthen our team, with a focus on enhancing property management capabilities and scaling our investment platform to maximize operational efficiency.
• New CF Capital Website: We are pleased to announce the completion of our new Corporate Website which was launched alongside our participation in NMHC. If you look carefully at the top of the email, you get a peek at the new home page. To see the full site: Click Here

We expect continued volatility in capital markets, but with that comes strong buying opportunities for those who are patient and disciplined. As always, we remain committed to executing our investment strategy and keeping you informed along the way.

Thank you for your trust and partnership—let’s make February a great month!

In Partnership,

Tyler Chesser & Bryan Flaherty Co-Founders & Managing Partners, CF Capital

Dear Valued Investor,

As we reflect on 2024, it’s clear that last year was a pivotal chapter in CF Capital’s journey. Together, we navigated a dynamic market, growing through both challenges and opportunities to achieve remarkable milestones. This progress would not have been possible without your trust and partnership, which continue to amplify our mission forward. In this letter, I’m pleased to share an overview of our achievements, team developments, and vision for the future. Despite the complexities of the current market, we have remained steadfast in our focus on disciplined growth, a continued commitment to operational excellence, and creating meaningful long-term value for our investors and the communities we serve.

Market Overview

The multifamily real estate sector in 2024 was shaped by volatile interest rates and rising costs in construction and financing. The 10-year U.S. Treasury yield fluctuated widely, creating challenges in property valuation and transaction dynamics. Despite these headwinds, the long-term fundamentals of multifamily real estate remain robust. Demand for affordable and workforce housing continues to grow against a backdrop of constrained new supply, especially in our target markets.

Indianapolis, as an example, proved to be one of the most resilient markets in 2024, thanks to its diverse economy, affordability, and strong population growth. Recognizing these fundamentals, we focused on opportunities that aligned with our strategic goals, highlighted by our investment in Island Club Apartments. This 314-unit waterfront property stands as a testament to our ability to secure high-quality investments that deliver both stability and long-term upside.

Island Club, situated on a scenic 25-acre lake, benefits from its strong suburban location near major employment hubs and lifestyle amenities. The property had already undergone a $4.2 million renovation program, modernizing unit interiors with upgraded cabinet fronts, quartz countertops, refreshed fixtures, and updated bathroom accents. Recognizing the untapped potential, we are investing an additional $2.8 million to further enhance the property’s amenities, including a fitness center, pickleball court, bark park, and aqua lounge.

For our investors, the property represents a stabilized, high-performing asset with value-add upside potential. This acquisition exemplifies our disciplined value-add strategy and commitment to delivering exceptional results.

Operational Focus

In addition to expanding our portfolio, 2024 was a year of operational improvement and innovation at CF Capital. We implemented new technology solutions across our properties to enhance resident engagement, streamline maintenance, and improve leasing efficiency. These initiatives have directly translated into improved net operating income and enhanced resident retention. Furthermore, 2024 was a year we hyper-focused on leveling up the talent of professionals focusing on our assets across the portfolio, and we made meaningful investments and personnel changes in regional property management leadership, regional maintenance leadership, community managers, maintenance supervisors and technicians, and accounting professionals. Assets can only perform at an optimal level when the teams supporting them are optimal, and we’re proud of the significant progress we’ve made from a staffing perspective.

Across our portfolio, we’ve driven rental rates up by $163, a 23% increase since acquisition. By leveraging advanced management techniques and prioritizing resident experience, we’ve successfully increased occupancy rates, minimized turnover, and driven rental growth. Average effective rental rates are only one component of success for an asset and a portfolio, and there remains further opportunities to optimize the top line in total, as well as NOI. In a challenging market environment, we’re proud of the progress we’ve achieved, yet are not satisfied as we continue to persistently pursue improvement in operational performance in each of our investments.

Team Growth and Leadership

In 2024, our team experienced significant growth and transformation as we expanded our portfolio. We prioritized thoughtful hiring and process refinement to ensure scalability and maintain consistent excellence.

In Q1, we welcomed Dan Michael as Senior Real Estate Analyst. Dan has become an integral member of the team, driving success in asset management, investor relations, and acquisitions. And later in Q3, Leslie Andren joined as Managing Director of Asset Management, bringing a wealth of expertise and strategic leadership. Her efforts have been instrumental in optimizing NOI and enhancing asset value across the portfolio, delivering exceptional results for our partners.

Our commitment to professional development extended to our internal team as well. We enhanced our hiring processes and provided targeted training to empower our team members to excel in their roles. These efforts ensure that we remain well-positioned to execute on our ambitious goals in 2025 and beyond.

Bryan and I represented CF Capital at multiple conferences throughout the year, sharing insights and expertise as speakers at various industry events. These engagements showcased CF Capital’s leadership within the multifamily sector and helped to build valuable relationships with peers and potential partners.

Looking Ahead to 2025

As we step into 2025, we are energized by the opportunities ahead and focused on building upon the successes of 2024. Our primary focus will be on optimizing the existing portfolio, driving NOI, and executing our strategic business plans. With several key refinances scheduled for this year, we are closely monitoring the capital markets to ensure optimal outcomes. By refining our processes and enhancing property performance, we aim to achieve our goals while continuing to deliver strong returns for our investors.

This year, we are also committed to growing our team in alignment with our core values of Integrity, Leadership, Excellence, and Purpose. We plan to onboard a new asset management professional and an investor relations manager to further elevate our platform’s capabilities. By leveraging the strength of our team and prioritizing both operational excellence and resident satisfaction, we are confident in achieving new milestones in 2025.

Our acquisition goal for 2025 is to acquire $150 million in multifamily assets, with an emphasis on high-quality properties in markets across our region exhibiting strong demographic and economic trends. This measured approach allows us to maintain disciplined growth while continuing to deliver on our investment objectives.

Closing Thoughts

As we reflect on the accomplishments of 2024, we are deeply grateful for your continued trust and support. The milestones we achieved this year, particularly the acquisition of Island Club Apartments, would not have been possible without our valued investors, partners, and team members.

At CF Capital, we are committed to delivering exceptional value while creating vibrant communities where residents thrive. Together, we are building a legacy of success that will endure for years to come.

Thank you for your partnership. We look forward to another year of growth, achievement, and shared success as we Elevate Communities Together. Warm regards,

Happy New Year to you and your loved ones! 

It’s hard to believe we’re now five years removed from the onset of the COVID-19 pandemic. Time has flown by, and the world has changed profoundly since then. This period of rapid societal change has brought its share of challenges—but also countless opportunities.

As we step into 2025, we’re excited to share that we’ll be attending the annual NMHC conference in Las Vegas at the end of the month. If you’re planning to attend, we’d love to connect! Let’s schedule some time to discuss how we can collaborate and make the most of the opportunities that lie ahead.

Wishing you a prosperous and fulfilling year ahead. We look forward to hearing from you soon!

1. Multifamily Market Update: National and Midwest Trends

The national multifamily market continues to experience pressure from elevated interest rates, tighter lending conditions, and inflationary headwinds. However, demand for rental housing remains robust, driven by affordability challenges in the single-family market and a generational shift toward renting. Key data points include:

• Occupancy Rates: National average remains steady at 94.1%, with the Midwest outperforming at 95.3% in Q4 2024.
• Rent Growth: While rent growth has normalized, secondary markets in the Midwest (like Indianapolis and Louisville) saw a modest 3.5% year-over-year increase, indicating relative stability compared to volatile coastal markets.
• Cap Rates: Compression has eased, but Midwest cap rates remain attractive, averaging 5.7%, creating acquisition opportunities for disciplined investors.

2. The Midwest Advantage: Resilience Amidst Uncertainty

As economic uncertainty lingers, the Midwest is gaining prominence for multifamily investment. The region's strengths include:

• Economic Diversity: Markets like Indianapolis benefit from balanced industry bases, minimizing risk tied to specific sectors.
• Affordability: Housing in the Midwest remains attractive to renters and investors alike, offering a better value proposition than overheated coastal markets.
• Stability: Slower but steady growth shields the region from extreme volatility, making it a haven for conservative investors.
• At CF Capital, our focus on secondary Midwest markets continues to position us for resilience and long-term value creation.

3. Key Priorities for 2025: Positioning for Growth

As we move into the new year, our priorities include:

• Operational Excellence: Enhancing property performance through in-house management initiatives and improved KPIs to drive efficiency and profitability.
• Strategic Acquisitions: Identifying assets with value-add potential and strong fundamentals in high-growth Midwest markets.
• Investor Relations: Upleveling our monthly and quarterly reporting to provide greater clarity, actionable insights, and visual tools to keep you informed and confident in your investments.

Thank You for Your Partnership

Your trust fuels our mission to create long-term value through multifamily real estate. We're excited about the opportunities that lie ahead in 2025 and remain committed to navigating this market with discipline, creativity, and a steadfast focus on returns.

As always, feel free to reach out with any questions or to discuss new opportunities.

Warm regards,
Tyler Chesser & Bryan Flaherty
Co-Founders & Managing Partners, CF Capital