Multifamily investment volume increased in the first quarter, up 33.3% year over year to $28.8 billion, according to the latest research from CBRE. This marks the highest first quarter total since 2022. In addition, the rolling four-quarter multifamily investment volume increased by 4.9% to $154 billion.
CBRE noted the multifamily sector also had the largest share of total commercial real estate volume for the quarter at 33%.
According to CBRE’s research, New York was the top market for rolling four-quarter investment volume at $10.6 billion, followed by Dallas-Fort Worth at $10 billion and Los Angeles at $9.5 billion. Annual investment volume for the six gateway markets—Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C.—totaled $43.2 billion, up 48% from the prior year. CBRE noted these markets accounted for 28% of last year’s total multifamily investment volume.
MFE takes a look at some new acquisitions from Florida to Wisconsin that signal continued confidence in regional growth and value-add opportunities. From luxury Class A assets to workforce housing, firms are expanding their footprints while deploying millions in capital improvements.
Ashcroft Capital Remains Bullish on Orlando Market
New York-based Ashcroft Capital, a fully integrated multifamily investment firm, continues to grow its presence in the Orlando, Florida, metro. The firm has acquired Ascend Waterleigh Club, which it has rebranded as Birchstone Waterleigh. The Class A garden-style community features 300 apartments and is located in Horizon West, a 22,000-acre master-planned community in Winter Garden.
The acquisition, which marks the firm’s second multifamily community in Winter Garden and the seventh in the Orlando metro, was completed through a joint venture that includes Temerity Strategic Partners and Pearlmark. In summer 2024, Ashcroft acquired the adjacent Halston Waterleigh.
“Birchstone Waterleigh is a Class A luxury community with high-end interior design and resort-like amenities,” said Ashcroft founder and CEO Frank Roessler. “This acquisition is another step in our ongoing pursuit of high-quality assets, and we could not be more excited to add this property to our portfolio. We continue to remain bullish on Orlando in general and Winter Garden, in particular. When you combine the strong renter demand in this market with limited future apartment deliveries, it creates the exact opportunity we are seeking. Properties like this allow us to lean into our focus on excellent customer service with an emphasis on resident satisfaction and retention.”
Built in 2023, Birchstone Waterleigh comprises one-, two-, and three-bedroom apartments. Interiors include stainless steel appliances, built-in microwaves, hardwood-style flooring, full-size washers and dryers, quartz countertops, and walk-in closets. Residents also have access to a resort-style saltwater pool, a coworking lounge, a 24-hour fitness center, an enclosed dog park, a game lounge, parcel lockers, outdoor grills and dining areas, electric vehicle charging, parcel lockers, and 24-hour maintenance.
Birchstone Residential, Ashcroft’s in-house property management and construction management company, is providing services for residents. Birchstone Waterleigh also is Ashcroft’s first community to be rebranded with Birchstone in its name. Going forward, the firm plans to rebrand any Class A communities it acquires with the Birchstone name.
Ashcroft has $2.9 billion of multifamily assets, totaling just over 14,000 units throughout Florida, Georgia, North Carolina, and Texas.
BMC Investments Expands Florida Holdings
BMC Investments, a Denver-based vertically integrated real estate firm, has formed a joint venture to acquire the 776-unit Park at Valenza in Temple Terrace, Florida. This marks the firm’s first acquisition in the Tampa metro and its largest multifamily transaction to date in the Sunshine State.
“Park at Valenza not only represents our third apartment transaction in Florida but also our continued belief in the Florida multifamily market’s fundamentals and our ability to bring value to the community and its residents,” said Matt Joblon, founder partner and CEO at BMC.
The community was constructed in three phases from 1987 to 1996 and comprises a mix of one-, two-, and three-bedroom units. Residents have access to a gym, a pool, a basketball court, and tennis courts.
A fund sponsored by Prime Finance provided financing for the acquisition. According to BMC, it is initiating an extensive capital expenditures plan that will include painting, roofing, siding, and landscaping, as well as improvements to the amenities and parking lot.
“We are excited to continue our expansion into the Florida market, and Park at Valenza is the latest step by our team to grow in the Florida multifamily sector, which continues to outperform other markets and stack up better against national trends,” added Joblon.
BMC has owned, developed, and operated nearly 14,000 multifamily units since 2011. This acquisition follows two recent ones in Florida: The Finley, with 312 units in Jacksonville, and ARIUM Sunrise, with 400 units in Sunrise.
CAPREIT Acquires Two Workforce Housing in Maryland
CAPREIT, a fully integrated real estate operating company based in North Bethesda, Maryland, has acquired two multifamily communities with 360 apartments in its home state.
The 152-unit Palmer Apartments was purchased for $23.75 million, and the 208-unit Smallwood Gardens was acquired for $26.85 million. The two workforce housing communities are adjacent to one another in south Waldorf in Charles County.
“As a leading workforce and affordable housing provider, we are always aiming to grow our portfolio in stable markets,” said CEO Andrew Kadish. “We’re excited to expand to Waldorf with the acquisition of these two communities, which are right in the backyard of our company headquarters. With a large footprint and vast institutional knowledge of the Greater Mid-Atlantic market—which is our largest market with multiple regional headquarters—we viewed this as a prime opportunity with an abundance of upside.”
Built in 1980, Palmer Apartments comprises one- and two-bedroom apartments. Smallwood Gardens, which was formerly known as Smallwood Gardens at Village Center of St. Charles, was built in 1976 and includes one-, two-, and three-bedroom units.
Each property features a swimming pool, a playground, and a laundry facility. The properties, which are in the St. Charles neighborhood 22 miles south of Washington, D.C., also are located across from a 173,000-square-foot shopping center.
According to CAPREIT, it has dedicated $5 million toward capital improvements on the properties, including a significant refresh to the building exteriors, amenities, common areas, and landscaping. In addition, it will implement energy-saving measures that have the potential to reduce utility costs by up to 25%.
“Waldorf is a stable but improving location, and we’re delighted to join the St. Charles neighborhood,” said chief investment officer Stephen Catarinella. “We believe that there is significant operational upside with these communities that we can unlock through an infusion of capital improvements and our resident-centric approach to property management.”
CAPREIT has been involved in over 200 multifamily communities with more than 40,000 rental residences. It owns and/or manages approximately 12,000 apartments in over 20 states.
Origin Investments Adds to North Carolina Portfolio
Chicago-based Origin Investments, a multifamily real estate fund manager, has acquired a newly constructed multifamily property in Charlotte, North Carolina, expanding its portfolio in the state to eight properties with over 2,100 units.
The 323-unit Broadstone Optimist Park was acquired for $91.5 million. Cushman & Wakefield’s Alex McDermott, Paul Marley, Charlie Gravina, and Rhodes Marley completed the property sale, while Drew Barnette, Ben Huckaby, and Mike Pfaff arranged the acquisition financing for Origin.
Constructed in 2023, the community, which is minutes from Charlotte’s Uptown job hub and nestled between two premier entertainment districts, offers studio, one-, and two-bedroom units. At the time of the acquisition, it was 91% leased. According to Origin, it will rename and rebrand the property.
Units feature spacious balconies and designer finishes. Residents also have access to a resort-style pool and courtyard with cabanas; a state-of-the-art fitness center; and an indoor/outdoor clubroom with a full kitchen and grilling area.
“We are thrilled to add this high-quality, transit-oriented asset to our existing footprint in Charlotte,” said David Welk, managing director of acquisitions and head of equity investments at Origin. “The underlying fundamentals of this dynamic, infill submarket have continued to improve since we made our initial investment over six years ago, and we remain bullish on medium- and long-term growth prospects of the metro as a whole.”
This acquisition brings Origin’s portfolio in the Charlotte metro to six communities with 1,613 units.
PPR Capital Management Makes Move Into Milwaukee Metro
PPR Capital Management, a private equity real estate investment firm based in Wayne, Pennsylvania, has acquired its first multifamily community in the Milwaukee metro, marking its expansion into the Upper Midwest region.
Through an off-market transaction, the firm purchased The Villas at Foxwood, a 232-unit townhouse-style multifamily community in Brown Deer, Wisconsin, for $38.3 million. The deal includes an equity investment of $19.4 million, with PPR contributing over $18 million as the primary equity partner. PPR worked with Archstone Capital as the general partner and Harmoniq Residential as both the co-general partner and property manager.
“The Villas at Foxwood acquisition aligns perfectly with our evolving investment strategy focusing on communities with strong fundamentals in growing markets,” said CEO Steve Meyer. “This transaction exemplifies PPR’s disciplined approach to portfolio diversification and our commitment to identifying properties with substantial value creation potential that deliver attractive risk-adjusted returns for our investors.”
Built in the 1990s, the property spans 21 acres. Units have private entrances, attached garages, fireplaces, and washers and dryers. PPR plans to modernize the units with upgrades such as stainless steel appliances and premium flooring.
“We’re proud to partner once again with PPR on an acquisition that fits squarely within our investment thesis,” said Archstone founder and CEO Chris Salazar. “Our teams are aligned on the vision for The Villas at Foxwood, and we are excited to execute a comprehensive business plan that enhances value for both residents and investors.”
S2 Capital Surpasses 50,000 Units Acquired
S2 Capital, a Dallas-based multifamily investment platform, has acquired a 770-unit garden-style community in Tampa. This transaction marks over 50,000 units acquired since the firm’s inception in 2012.
Amberly Place, built in 1989, was purchased in an off-market transaction arranged by Shelton Granade of Institutional Property Advisors (IPA). IPA’s Harry Krieger also assisted S2 in securing Freddie Mac financing. The asset was acquired on behalf of S2’s current value-add fund along with two institutional co-investors.
“We are excited to add to our activity in Florida with this terrific asset in a top growth market for us,” said Michael Bippus, managing director of acquisitions at S2. “The equity void for large value-add housing acquisitions has created a unique pricing opportunity for general partners with discretionary capital and deep lending relationships, and we are delighted to acquire an asset that fits so squarely in our wheelhouse.”
According to S2, it will undertake comprehensive interior renovations to bring the original apartments up to the design scope and standards of the units that had already been upgraded. It also plans to make enhancements to interior and exterior amenity spaces as well as targeted improvements to address deferred exterior capex items.
