REAL ESTATE NEWS

With equity hard to raise and transaction liquidity limited, multifamily owners are concentrating on what they can control: property income, acquisition discipline and the work needed to get a deal closed.

That focus shaped the discussion at GlobeSt.'s Multifamily Owners Forum 2026, where executives described a market in which an owner's need to sell does not always align with favorable conditions—and finding an attractive property does not necessarily mean having the right capital to buy it.

The "Beyond the Balance Sheet: Dispositions, Acquisitions & Strategic Asset Management" session, moderated by Kamran Paydar, first vice president at CBRE Group, examined how investors are approaching those constraints, from evaluating acquisitions to strengthening operations before a sale.

Capital Constraints Complicate Sale Decisions

Raising equity has become exceptionally difficult, Jerome Fink, managing partner at The Bascom Group, said. Some institutional investors are not responding, while others question the case for real estate during periods of strong stock market performance.

For owners considering dispositions, waiting for better conditions is not always an option. Fink said owners often sell because of circumstances outside their preferred schedule, including a fund reaching the end of its term. Investors may also need to sell one asset to move capital into another investment, even when the market is unfavorable.

Those pressures make disposition timing more complicated than simply choosing the best moment to sell. An owner's obligations and capital needs can dictate when a property comes to market.

Acquisition Standards Vary By Property Type

For buyers, discipline starts with choosing the right measures of value.

Paul Kaseburg, chief investment officer at MG Properties, said the firm considers properties ranging from Class A towers to older suburban communities. But it does not evaluate every asset the same way. Replacement cost helps inform its assessment of newer properties, while yield carries more weight when it reviews older assets.

The source of capital matters, too. Different capital providers pursue different investment strategies, influencing which acquisitions make sense.

MG Properties continues to submit offers on properties that meet its criteria, knowing many will not lead to a transaction. Despite the market's challenges, Kaseburg expressed optimism that liquidity could improve in the coming year.

Stronger Operations Support Sale Preparation

While buyers sort through opportunities, owners preparing to sell can do work regardless of market conditions.

Jon Tullo, executive vice president of client services at Apartment Management Consultants, urged owners to look beyond trailing three-month results. The entire set of financial statements needs to be clean, normalized and clearly explained.

That preparation extends to the property itself. Owners cannot control interest rates or capital markets, Tullo said, but they can influence net operating income through daily execution. Conducting tours, answering calls and following up with prospective residents remain important parts of that work.

He also cautioned against making renovation decisions based on assumptions about the future market. Decisions should address current needs rather than anticipate conditions that may not materialize.

Kaseburg made a related point about transaction preparation: Resolving outstanding issues and making a deal as clean and straightforward as possible can help the process move forward.

AI Delivers Time Savings With Oversight

MG Properties is also using technology to cut time spent on certain financial and analytical tasks.

Kaseburg said the company has begun seeing time savings after about 18 months of work with artificial intelligence. Applications include reclassifying financials, loading pro formas and conducting rent comparisons.

Those efficiencies still require oversight. Kaseburg said teams must review results for accuracy, even as the tools start to save time.

Check back with GlobeSt.com for more from the Multifamily Owners Summit.

Lender Pressure Creates Openings for Multifamily Buyers

Multifamily Owners Turn to Operating Savings to Protect Income

Multifamily Discounts Draw Buyers, But Return Targets Hold Back Capital

Multifamily Buyers Find Openings as Lenders Press Owners to Sell

Institutional Buyers Want Multifamily Deals But Struggle to Make Them Work

Fund Deadlines Keep Multifamily Properties Coming to Market

Multifamily Owners Pursue Portfolio Savings While Taking a Harder Look at New Deals

Source: GlobeSt/ALM