Hello Friends and Investors,

As we close out 2025 and enter the Christmas season, we find ourselves deeply grateful—both for the trust you continue to place in us and for the opportunities this year has brought to demonstrate what disciplined, long-term stewardship really means.

This has been a year defined by resilience, patience, and strategic progress, culminating in another meaningful win as we closed the Embassy refinance last week. With three important capital events successfully navigated this year, our highest priority initiative—protecting investor capital first—has remained a clear and consistent success.

And looking ahead, we’re optimistic. Not because the market is suddenly “easy” (it’s not), but because we’re positioned for what comes next.

Market Overview

Making Sense of a Bifurcated, Paradoxical Market

If you’ve been watching the market closely, you’ve likely noticed what we’ve noticed: this is one of the more complex real estate moments in recent memory.

A few truths are simultaneously at play:

1. Pricing is still disconnected from reality.
   Sellers continue to anchor to valuations that no longer align with risk, cash flow, or debt markets. Deal volume remains frozen in many pockets, and the few trades that do occur often clear at prices that do not properly compensate for today’s risks.
   
2. Debt has improved—but it’s not “cheap money.”
   Yes, rates are down ~100 bps from Q1 of this year. No, we’re not back to a world where low-cost leverage makes everything pencil. Debt is… better. Not great. Not awful. Just better, and a bit more stable.
   
3. This is a moment for selective offense, not broad activity.
   We didn’t buy a new deal in 2025—not for lack of work (it has been the opposite, in reality), but because the market is generally not currently compensating risk appropriately. We came close on several opportunities, but doing them would’ve required a stretch that violates our long-term principles. Discipline now sets the foundation for outperformance later.
   
4. Fundamentals are softening in pockets of the market.
   Vacancy is slightly up, new supply is being absorbed, and renters are behaving as though they are under pressure, but long-term demand drivers remain intact. This is a challenging moment, not a breaking moment—and challenging moments create opportunity for disciplined operators.

Successful Refinance

Major Update: Embassy Refinance Successfully Completed

Last week, we closed the refinance on Embassy Apartments—a major milestone that reflects months of persistent work, strategic leadership, and commitment to investor stewardship.
The Strategic Win

With the refinance, we're further protecting investor capital and extending the runway for continued value creation. This refinance positions Embassy for additional value-add execution, operational optimization, and a future sale in a more favorable market environment.

The Challenge We Overcame
Our initial refinance lender unexpectedly dropped out this summer (citing market conditions), forcing our team to take full control of the process, lean heavily on industry relationships, and execute a complex refinance under significant time constraints. The outcome was not just a “save,” but an accretive, long-term capital structure.

What CF Capital Continues to Deliver:
Resiliency. Execution under pressure. Capability in complex environments. This year proved what we’ve always said: When things get hard, we get better!

Active Opportunity

What We're Reading

Quote of the Month 

Closing Thoughts

2025 was a year of proving our principles: Protect capital. Execute with discipline. Build for the long term.
We’ve navigated complexity, overcome obstacles, acted with patience, and positioned ourselves for an exciting 2026 and beyond.
Thank you for your trust, your partnership, and your continued belief in our mission.
From our family to yours, Merry Christmas and Happy Holidays.
We look forward to building a powerful year ahead—together.

In Partnership,
Tyler & Bryan