Why Multifamily – Cap Rates and Valuations

We believe now is the time to acquire great assets at a discount.

Forum has not completed a stabilized acquisition in nearly 5 years. Why? As strategic investors, we’ve chosen to not buy into the “fix-and-flip,” value add opportunities that other sponsors were promoting with the endless free money and low interest rates. Rates have moved lending costs up 500 bps, resulting in good properties stabilizing today, but owned by distressed borrowers. It’s these kinds of equity opportunities that we believe we will be able to take advantage of in the next buying cycle, which we think is here now.

Forum’s market knowledge and patience has positioned the firm to take advantage of the current market dynamic. At Forum, we’ve been focused on multifamily real estate since 2007, identifying attractive investments up and down the capital stack and throughout market cycles.

Source: Green Street, as of March 14, 2024. 2. Source: Newmark Research, RealPage, Q4 2023.

Disclosure:

For illustrative purposes only. This communication is for informational purposes only, does not constitute investment advice or a recommendation, and should not provide the basis for any investment decision. Investing involves risk. Any projections, outlooks, or assumptions should not be construed as indicative of the actual events which will occur.