Top Owners Share How They’re Navigating Multifamily’s Next Phase
LOS ANGELES–At the GlobeSt. Multifamily Conference at the JW Marriott in downtown Los Angeles, a panel featuring senior leaders from some of the industry’s most active firms offered an unvarnished view of how multifamily investors are navigating a market still defined by both headwinds and opportunity. Moderated by Kamran Paydar, First Vice President at CBRE, the session—titled “A View From the Top: A Conversation with Multifamily Owners”—took an on-the-ground look at what it takes to stay agile, profitable, and focused amid ongoing disruption.
Noah Hochman, Co-Chief Investment Officer and Head of Capital Markets at TruAmerica Multifamily, opened with a grounded perspective on current conditions. “Not sure if things are less challenging today,” he observed. “They’re just different.” After a turbulent 2023 that reset valuations, TruAmerica launched a new fund to pursue opportunities emerging from that correction. While operations remain uneven, Hochman said he expects the next couple of years to yield strong returns for those positioned to act decisively.
That measured optimism was tempered by Hamilton Zanze’s Ian O’Connor, Director of Acquisition, who described a two-speed capital environment. With 1031 exchange activity down and private capital harder to access, the firm has turned to conservative underwriting and a stricter emphasis on asset quality and location. Still, O’Connor noted early signs of renewed movement, especially in institutional joint ventures where activity “is beginning to thaw.”
Development opportunities took center stage in comments from Patrick Rhodes, Executive Vice President of Development at McCourt Partners. He pointed to Southern California as a surprisingly attractive region for new land acquisition, calling it “an interesting time to be a buyer of multifamily land” and signaling McCourt’s intent to pursue projects in key infill markets.
Affinius Capital’s Hailey Ghalib, Senior Managing Director and Head of Housing Investment and Development, outlined her firm’s disciplined approach across both credit and equity strategies. After emphasizing credit during recent volatility, Affinius is again ramping up development in high-barrier coastal markets with enduring fundamentals. Ghalib also highlighted redevelopment efforts and long-term partnerships as key to sustained portfolio growth.
From a national operator’s standpoint, Lindsey Romano, Senior Vice President of Asset Management at AvalonBay Communities, described a strategic shift in market exposure. Over the past five years, the company has expanded into Sunbelt markets such as Dallas, Austin, and Denver while reducing positions in some coastal cities. “We’re buying newer assets, especially in expansion markets,” Romano said, noting AvalonBay’s preference for properties with more than 250 units and a move away from traditional value-add plays.
Despite differing strategies, the panelists agreed on several key themes shaping multifamily investment today. Conservatism in underwriting remains essential; newer and larger assets are generally favored; and local expertise has become critical to outperforming broader market trends. As Hochman put it, the challenge now is identifying “the little pockets” where risk is mispriced and potential is overlooked. “Every opportunity has its own story,” he said, “and we’re trying to uncover the right ones.”
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Source: GlobeSt/ALM