In its latest insights, First half 2024 management commentary: Stress, without distress, Kingbird Investment Management, the real estate subsidiary of Puerto Rico-based family-owned strategic investment company Grupo Ferré Rangel, highlights the reasons that multifamily properties have avoided going into widespread distress, despite the deterioration of capital market conditions.
“This year is proving to be more of a continuation of 2023 than we expected,” said Vincent DiSalvo, CIO, Kingbird Investment Management. “With sellers too well capitalized to sell at a discount, multifamily transactions will remain limited for the remainder of 2024.”
While deal flow is muted, investors with the flexibility to strategically structure investments can capitalize on the current market dislocation. For example, Kingbird is seeing many preferred equity opportunities this year due to a plethora of multifamily mortgages that need to be refinanced in a higher interest