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2026 Excelsa Commentary - U.S. Multifamily Real Estate

Thu, 07 May 2026 14:11:35 GMT

PREFACE

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Excelsa is pleased to present its house view on the current state of the U.S. multifamily sector, highlighting the key dynamics and themes we believe will shape investor outcomes in 2026. Following a challenging three-year cycle, our analysis reflects a more defined perspective on the principal risks facing the sector, alongside emerging opportunities supported by underlying market fundamentals. We hope this perspective proves informative and constructive, and we welcome further dialogue on the insights presented herein.

Founded in 2013, Excelsa has developed a strong track record and deep sector expertise in U.S. multifamily real estate.

A DIFFICULT THREE YEARS – AND WHY IT IS NOW LARGELY BEHIND US

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Since 2022, the multifamily sector has absorbed the consequences of record construction activity undertaken during the low-rate era following the post-COVID recovery, high inflation increasing operating expenses and capital expense budgets, and one of the quickest and largest increases in interest rates in recent U.S. history.

Fueled by cheap capital and strong migration demand, developers pushed supply to a 40-year high, with annual net deliveries peaking above 690,000 units (compared to a fourteen-year historical average of approximately 302,325 units per year) in late 2024.¹ The volume of new apartments hitting the market was without precedent in the modern era, flooding most of the performing markets including the Sun Belt markets and forcing operators into a prolonged defensive posture on pricing and occupancy.

For value-add Class B assets the impact was acute. Under normal conditions, a meaningful rent gap insulates Class B properties from the competitive pressure of newly delivered Class A inventory. This cycle proved different. Developers, desperate to lease up new units, offered concessions of three to four months' free rent on twelve-month leases – a level of discounting that compressed effective rents across the entire market and reached into the Class B tier.

Combined with sharp increases in insurance, labor, and utilities costs, this environment tested the resilience of even well-managed assets. Property insurance premiums in many Southeast markets doubled or more between 2022 and 2024, driven by climate-related risk repricing and carrier withdrawals. 2,3 Payroll costs rose sharply as a tight labor market pushed maintenance and management wages higher. Simultaneously, the Federal Reserve’s most aggressive tightening cycle in four decades drove the federal funds rate from near zero to over 5% between early 2022 and mid-2023 4 , with the average commercial real estate loan rate reaching approximately 6.2% by 2025 5 – compared to roughly 3.5% on much of the debt originated just years earlier. 6 This rate shock effectively froze the transaction market for nearly three years, as buyers and sellers could not agree on valuations, and owners with maturing debt faced refinancing costs that eroded equity. The combination of compressed revenues, elevated operating costs, and a hostile capital market environment created the most challenging operating conditions the multifamily sector has experienced since the early 1990s.

That period is now drawing to a close. Annual supply had already fallen to approximately 530,000 units in 2025, and is expected to decline a further 36% in 2026 to approximately 333,000 units – the lowest level since 2014.¹ Construction starts have hit their lowest point in over a decade, pressured by declining rents, higher capital costs, and tighter lending standards. The chart below illustrates the scale of the supply wave and its expected decline.

EARLY SIGNS OF RECOVERY

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The correction that the market required is underway, and early operational data is beginning to reflect it. According to RealPage Market Analytics, U.S. apartment occupancy rose in both January and February 2026 – the first back-to-back monthly occupancy increases in two years – reaching 94.9% nationally by end of Q1. Demand also surprised to the upside: Q1 2026 absorbed approximately 93,300 units, one of the strongest first-quarter performances in the past decade. 7

On rents, the picture is more nuanced and warrants objective framing. Year-over-year rent growth nationally remains near zero – approximately +0.2% on asking rents. 1 However, the directional shift is clear: rents rose in Q1 2026 for the first time after two consecutive quarters of declines. The Class B / Renter-by-Necessity segment is outperforming the broader market, posting +0.7% year over-year rent growth against –0.4% for the Lifestyle (Class A) segment. 8 This divergence reflects the structural reality that the supply wave consisted overwhelmingly of high-end product: approximately 85% of recent completions were 4 & 5 Star buildings. 1 The Class B segment was impacted by spillover concession activity, not by its own supply imbalance – and it is recovering faster as those concessions burn off. The geographic dispersion of performance is significant and warrants acknowledgement. Gateway and Midwest markets are leading the recovery: New York City is posting year-over-year rent growth of +4.5%, San Francisco +3.9%, and Chicago +3.4%. 8 These markets benefit from constrained supply pipelines and strong demand anchored in technology and financial services employment. In contrast, high-supply Sun Belt markets continue to face headwinds: Austin is down 4.1% year-over-year, Tampa down 3.4%, and Phoenix down 3.2%. The Southeast markets sit in an intermediate position – Charlotte and Nashville are still negative year-over-year, reflecting the overhang of recent deliveries, but both markets have among the strongest job growth in the nation (Charlotte +2.7%, Raleigh +1.6% year-over-year) 8 and rapidly thinning supply pipelines. The rent recovery in these markets is a matter of timing, not direction.

Concessions remain elevated market-wide at approximately 25% of apartments, with an average incentive of 7.2% 7 – down from higher levels seen in late 2024 and early 2025, but not yet fully normalized. This is important context: it means that the full transmission of the demand recovery into rent growth will be gradual, not immediate. We do not expect a sharp rent rebound; we do expect a steady, durable improvement through the second half of 2026 and into 2027 as concessions normalize and supply continues to abate. Some operating cost lines – notably insurance and payroll – are also beginning to moderate, providing a secondary tailwind to net operating income recovery. CoStar forecasts overall vacancy to plateau through 2026 before declining meaningfully from 2027 onward. 1

GEOPOLITICAL CONTEXT

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The U.S.-Israel-Iran conflict, which commenced on 28 February 2026, disrupted global energy markets and introduced a layer of macro uncertainty. The near-closure of the Strait of Hormuz generated a significant oil price shock, with Brent crude reaching approximately $120 per barrel at peak. 9 The transmission to U.S. real estate has been principally through energy-driven inflation, which pushed mortgage rates back above 6% and complicated the Federal Reserve’s rate cutting path. Prior to the conflict, markets anticipated 50 basis points of Fed rate cuts in 2026; analysts now consider the possibility that rates may move higher rather than lower this year. 1

As of 9 April 2026, a ceasefire between the U.S./Israel and Iran has come into effect. If this holds and leads to broader de-escalation, energy markets would normalize over time, reducing inflationary pressure and reopening the path to rate relief – though a full rebalancing of energy markets is likely to take longer than the ceasefire itself, given structural disruptions to shipping, insurance, and storage capacity that have built up since February. A prolonged conflict could sustain inflationary pressure and delay rate normalization further. In this environment, one must remain disciplined in one’s underwriting, reflecting the potential for continued volatility. Crucially, higher mortgage rates and sustained inflation – whatever their cause – tend to reinforce rather than undermine multifamily demand: these are precisely the conditions that keep would-be homebuyers in the rental market, strengthening tenant bases and renewal rates.

On the question of recession risk: a prolonged conflict scenario would weigh on U.S. and global economic growth, but a U.S. recession is not our base case. More broadly, regardless of shifting global sentiment, the U.S. remains one of the most resilient and investable real estate markets in the world – underpinned by its depth, liquidity, and relative economic self-sufficiency. CoStar has revised its 2026 U.S. GDP growth forecast down by approximately 40 basis points to 2.4% – a meaningful reduction, but one that still reflects positive, if moderate, expansion. 1 Even in a slowergrowth environment, multifamily rental demand has historically proven resilient: households continue to need housing through economic cycles, and the barriers to homeownership that underpin rental demand become, if anything, more pronounced when consumer confidence softens.

THE OPPORTUNITY

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Beyond the improving operational picture, the current environment is generating acquisition opportunities not seen since before the pandemic. Three forces are converging to create this window.

First, pricing has reset materially. CoStar’s repeat-sale index shows multifamily values currently 21% below the 2022 peak, having stabilized from a trough of 27% below that same peak. 1 Cap rates for 3-Star assets are clustering in the 5.75%–6.25% range, with transactions pricing near $175,000–$250,000 per unit. This represents genuinely attractive entry pricing for well-located assets with clear value-add upside.

Second, a significant maturity wall is surfacing motivated sellers. Approximately $162 billion in multifamily loans mature in 2026, a 56% increase from the prior year. 10 A significant portion were originated at 2021–2022 rates and now face a meaningful refinancing cost gap. For wellcapitalized, stabilized assets, agency refinancing capacity remains robust: the Federal Housing Finance Agency has expanded combined Fannie Mae and Freddie Mac lending caps to $176 billion for 2026, a 20% increase over 2025. 11 It is the overleveraged and underperforming assets that face genuine distress – and those are precisely the acquisition opportunities this environment is surfacing. This is already surfacing assets at valuations that reflect near-term uncertainty rather than long-term fundamentals – precisely the conditions in which disciplined value-add investors generate their strongest vintages.

Third, institutional capital has not yet fully returned. This is arguably the most important observation. Transaction volumes are recovering – trailing four-quarter investment sales volume rose 31% year-on-year as of Q1 2026, with deal count approaching 2019 levels 1 – but the composition of buyers tells the real story. Private investors account for over half of acquisitions; institutional managers represent approximately one quarter, still well below their historical share. The chart below illustrates the contraction and recovery in sales volumes.

This gap between private and institutional participation represents a well-defined window: the ability to acquire assets ahead of the full re-entry of institutional demand, at prices that will compress as that capital returns. In our experience, the most attractive vintage years are precisely those in which the broader market remains hesitant.

The Southeast continues to be well positioned at this moment. Our geographic focus on the Southeast continues to position us well for this moment. Despite near-term rent pressure in high supply markets, the region’s structural advantages – population inflows, employment growth, relative affordability, and supportive regulatory environments – remain firmly intact. As supply digestion progresses, the Southeast is expected to outperform on both rental growth and investment returns through the balance of this decade.

SOURCES

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1. CoStar Group - United States Multi-Family National Report, April 2026

2. Federal Reserve Board - Rising Property Insurance Costs and Pass-Through to Rents for Apartment Buildings (September 19, 2025)

3. Fannie Mae - Multifamily Economic and Market Commentary: “Higher Insurance Premiums Continue to Impact the Multifamily Sector” (May 2024)

4. Mortgage Bankers Association - 2026 CREF Forecast (February 9, 2026)

5. IPA Commercial Real Estate - Your Guide to Commercial Real Estate Interest Rates (July 1, 2025)

6. Deloitte - 2026 Commercial Real Estate Outlook (September 29, 2025)

7. RealPage Market Analytics - Apartment Demand Rebounds in 1st Quarter as Supply Volumes Continue to Slow

8. Yardi Matrix - Multifamily National Report, March 2026

9. CNBC - A Timeline of How the Iran War Shook Oil Prices — and What Comes Next (April 21, 2026)

10. MMG Research - The 2026 CRE Refinancing Wall: Opportunities in Multifamily Distress (November 2025)

11. Federal Housing Finance Agency (FHFA) - 2026 Multifamily Lending Cap Announcement (November 2025)

IMPORTANT INFORMATION

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This document has been prepared by Excelsa for informational and educational purposes only. It constitutes a general market commentary and does not relate to any specific investment opportunity, offering, or transaction. This document does not constitute, and shall not be construed as, an offer to sell, a solicitation of an offer to buy, or investment advice in respect of any securities, interests, or financial products in any jurisdiction. Nothing in this document should be relied upon as the basis for any investment decision. Any reproduction or distribution of this document, in whole or in part, without prior written consent from Excelsa is prohibited. This document contains forward-looking statements regarding possible or assumed future results of the business, financial condition, plans, and objectives of Excelsa Properties and its subsidiaries and affiliates (collectively, “Excelsa” or the “Company”). Any statement concerning future events or expectations, express or implied, is a forward-looking statement. Words such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negatives thereof or other variations thereon or comparable terminology, are intended to identify forward-looking statements that are subject to risks and uncertainties. There can be no assurance that any expectations, expressed or implied, in any forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated. In particular, there can be no assurance that Excelsa will achieve any performance objectives set forth in this document. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for Excelsa to predict those events or their effect on the Company. Except as required by law, Excelsa is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The views and opinions expressed herein reflect Excelsa’s assessment of market conditions as of the date of publication and are subject to change without notice. They are based on sources believed to be reliable but are not guaranteed as to accuracy or completeness. All market data referenced herein is sourced from third-party providers, including Yardi Matrix, RealPage Market Analytics, and CoStar Group. Excelsa has not independently verified all underlying data and makes no representation as to its accuracy. This document is intended for general circulation and informational purposes only and does not constitute legal, tax, or financial advice. Recipients should consult their own advisors before making any investment decision. This document is not intended for distribution in any jurisdiction where such distribution would be contrary to applicable law or regulation. Receipt of this document does not create any advisory, fiduciary, or other relationship between Excelsa and the recipient. All dollar figures refer to the U.S. Dollar. “Excelsa” is a registered trademark of Excelsa Operations in the United States and other jurisdictions.

Excelsa Properties Acquires 216-Unit Multifamily Community in Naples, Florida

Wed, 16 Jul 2025 13:29:42 GMT

NAPLES, FL, June 13 2025, Excelsa Properties announced today that it has acquired Oasis Naples, a 216-unit multifamily property located at 2277 Arbour Walk Circle in the heart of Naples, Florida. The acquisition represents the seventh multifamily property acquisition of Excelsa US Real Estate II, LP and the 20th multifamily acquisition across its portfolios. The property was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

The garden-style multifamily property boasts 18 two-story residential buildings and a modern community clubhouse, complemented by an attractive resort-style amenity package which includes a pool, lounge areas, a coffee station, and a 24-hour fully equipped fitness center. While this 1992-built property has been well-maintained, it has seen minimal in-unit upgrades, making Oasis Naples well-positioned for a strong value-add program. Excelsa plans to invest around $7 million in capital improvements to enhance the asset’s appeal and performance.

Located at 2277 Arbour Walk Circle, Oasis Naples benefits from an unmatched location in one of Southwest Florida’s most affluent and sought-after submarkets. The property offers immediate access to major transportation routes and is surrounded by top-tier retail centers alongside everyday conveniences and luxury dining. Just minutes from the beaches of the Gulf Coast and within a two-mile radius of A-rated public schools, the property also sits near leading employers. This exceptional location supports strong rental demand from affluent, family-oriented, and renter-by-choice residents.

“Oasis Naples is our second Florida acquisition in twelve months. In 2022 we profitably exited five assets in the state,” said David Fletcher, Managing Director and Head of Acquisitions at Excelsa Properties. “Now after underwriting hundreds of assets in the greater areas of Tampa, Orlando and Jacksonville, we are excited to grow our Florida portfolio. We would love to buy another Florida asset this year.”

About Excelsa Properties

Excelsa Properties is a real estate asset manager with a focus on multifamily investments in the United States. It has acquired more than $750 million in assets. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 6, 2022. For more information, please visit www.excelsaholding.com.

Excelsa Properties Acquires 477-Unit Multifamily Community in St Petersburg, Florida

Wed, 17 Jul 2024 06:51:22 GMT

ST PETERSBURG, FL, July 17, 2024, Excelsa Properties announced today that it has acquired The Drake at St Pete, a 477-unit multifamily property located at 1699 68th Street North, St Petersburg, Florida. The acquisition represents the sixth multifamily property acquisition of Excelsa US Real Estate II, LP and the 19th multifamily acquisition across its portfolios. The property was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

The garden-style multifamily property boasts 36 residential buildings and a clubhouse/leasing center, in addition to an attractive amenity set such as a 24-hour fully-equipped fitness center, 3 resort-style pools, two dog parks, and a picnic area. Built in 1972, this well-maintained property has undergone two renovations thus far, keeping the property in excellent condition. Excelsa sees significant additional value-add upside potential and plans to invest $8 million in capital improvements.

“The Drake at St. Pete is located in the booming Tampa-St. Petersburg-Clearwater MSA, known for its proximity to entertainment, healthcare, and higher educational institutions,” said David Fletcher, managing director at Excelsa Properties. “This positions the property as a centerpiece for connectivity, attracting high-quality tenants.”

This prosperous economic hub with solid demographics hosts a highly-skilled workforce and 6+ Fortune 500 companies, including two headquarters. Within a 15-minute drive from the property, $5+ billion worth of transformative urban developments are underway, projected to create 23k+ in employment opportunities.

“From the start, the combination of compelling pricing, a very attractive location, and zero directly competing properties excited us about The Drake at St. Pete. Ultimately, after proving out the profitable value-add proposition, we closed the deal with conservative debt financing, which provides accretive leverage,” said David Fletcher , managing director at Excelsa Properties. “The current combination of asset pricing and debt financing terms is yielding very attractive acquisitions in value-add multifamily. Excelsa’s ability to commit to purchases with discretionary funds and to avoid risky and unreliable debt structures has allowed us to be very selective and acquire one of the most compelling deals we have seen in the last year.”

“The Drake is located in a submarket that is currently facing limited forecasted supply of multifamily units as new construction in the area is expected to have higher costs” added Jonathan Woods , COO at Excelsa Properties. “This puts The Drake at an advantage, as its occupancy rate remains high and stable, even during slower leasing periods.”

About Excelsa Properties

Excelsa Properties is a real estate asset manager with a focus on multifamily investments in the United States. It has $300 million in total equity under management. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 6, 2022.

Excelsa Properties Acquires Multifamily Community in Dallas, Texas

Mon, 24 Jun 2024 07:12:45 GMT

DALLAS, TX, June 24, 2024, Excelsa Properties announced today that it has acquired Pear Ridge, a 168-unit multifamily property located at 4753 Old Bent Tree Lane, Dallas, Texas. The acquisition represents the fifth multifamily property acquisition of Excelsa US Real Estate II, LP and the 18th multifamily acquisition across its portfolios. The value-add property, Pear Ridge, was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

Built in 1986, Excelsa Properties will invest $4.3 million to comprehensively upgrade Pear Ridge. Improvements include the installation of new countertops, stainless steel appliances, tile backsplash, vinyl flooring, lighting and plumbing fixtures, and ceiling fans. Exterior renovations include roof repairs, boiler repairs, painting refresh, concrete repairs, stair system, HVAC repairs, landscaping, pool fixtures, and clubhouse rehab.

“Pear Ridge is ideally located in the Dallas-Fort Worth (DFW) metropolitan area.” said David Fletcher, managing director at Excelsa Properties. “The area enjoys very high job growth and solid employment which support occupancy, rent growth and asset valuations. Pear Ridge will benefit as the Dallas economy grows.”

Pear Ridge is situated in the highly attractive, 3rd largest county in the region, Collin County, with a population of more than 1.2 million residents and 782,000 employees. The twelve-building gated community features a swimming pool, clubhouse, business center, 24-hour fitness center, laundry facilities, storage spaces, transportation services, and lounges.

With this acquisition, Excelsa Properties would have acquired nearly $610 million in U.S. multifamily properties since 2009.

Jonathan Woods, COO of Excelsa Properties, added “Excelsa continues to seek to acquire multifamily properties offering potential for risk adjusted returns in line with the targets of Excelsa US Real Estate II, LP.”

About Excelsa Properties

Excelsa Properties is a real estate asset manager with a focus on multifamily investments in the United States. It has 1,846 units or $300 million in total equity under management. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 6, 2022.

Excelsa Properties Acquires $105.5 Million Multifamily Community in Laurel, Maryland

Wed, 12 Jul 2023 07:06:56 GMT

LAUREL, MD, July 12, 2023, Excelsa Properties announced today that it has acquired Concord Park at Russett, a 335-unit multifamily property located at 7903 Orion Circle in Laurel, Maryland. The $105.5 million acquisition represents the fourth multifamily property acquisition of Excelsa US Real Estate II, LP. The value-add property, Concord Park at Russett, was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle. The company assumed the in-place interest only (I/O) loan with a fixed rate of 3.4% and six years remaining on its term, and supplemented the loan with a fixed rate I/O loan of a similar maturity date, with a weighted average interest rate of 3.7%.

Built in 2005, Excelsa Properties will invest $4.4 million to upgrade Concord Park at Russett. Improvements include a new roof, HVAC system, signage, repair of parking decks, installation of stainless-steel appliances, hardwood flooring, upgraded lighting fixtures, upgraded sinks and faucets, kitchen backsplash, and tech packages.

“Concord Park at Russett is located in the sixth-largest metropolitan area in the US, with no current multifamily projects planned in the area and a median household income well above the national average,'' said David Fletcher, managing director at Excelsa Properties. “The property’s tremendous connectivity to the entire Baltimore-Washington area, combined with its large units and extensive amenities, make it a highly desirable location for residents.”

Concord Park at Russett is situated in the highly desirable Anne Arundel County with a population of approximately 600,000 residents and 90,000 employees. The nine-building community features a resort-style swimming pool, clubhouse with fireplace, business center, theater room, fitness center, yoga & HIIT training studio, library, and business lounge.

With this acquisition, Excelsa US Real Estate II, LP (EUSRE II) and Excelsa US Real Estate I, LP (EUSRE I) have acquired nearly $600 million in U.S. multifamily properties since 2019.

Jon Woods, COO at Excelsa Properties, added “Excelsa continues to look to make strategic multifamily property acquisitions where we can deliver risk adjusted returns in line with the targets of our Excelsa US Real Estate II fund .”

About Excelsa Properties

Excelsa Properties is a real estate asset manager with a focus on multifamily investments in the United States. It has over $270 million in total equity under management. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 6, 2022.

Excelsa Properties Acquires $78 Million Multifamily Community in Columbia, Maryland

Tue, 01 Nov 2022 07:05:06 GMT

COLUMBIA, MD, November 1, 2022, Excelsa Properties has closed on the $78 million purchase of a 325-unit multifamily property located at 5764 Stevens Forest Road in Downtown Columbia, Maryland. The value-add property, Columbia Pointe, was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

This is the third acquisition for the Excelsa US Real Estate II, LP fund. The firm had previously acquired 10 multifamily properties with its first fund, Excelsa US Real Estate I, LP (EUSRE I), two of which are jointly acquired with EUSRE II. All today, Excelsa Properties has acquired 11 properties since 2018.

Excelsa plans to invest $3.2 million in the renovation of 165 units including kitchen and bathroom upgrades.

“With current occupancy of 95 percent, this investment supports a very high going-in yield,” said Jon Woods, Chief Operating Officer at Excelsa Properties. “Given the need for housing in the growing and thriving community of Columbia, we also see an opportunity to add value to the property through unit renovations, further strengthening yield.”

Columbia Pointe comprises one residential tower and 14 garden-style buildings on an 18-acre plot, surrounded by walking and biking trails. Built in 1972, the property was substantially renovated with new roofs and windows in 2016. The community includes a mix of one-, two-, and three-bedroom apartments with private patios or balconies, granite countertops, renovated interiors and spacious walk-in closets.

Located in the Lakeside district of Columbia, the property sits within Maryland’s number one school district, boasting six top-rated schools within a five-mile radius. The city is conveniently situated between the Washington, D.C. and Baltimore metro areas, together home to 37 Fortune 1000 companies. It is also within walking distance of Columbia’s downtown core, which is in the midst of a $5 billion redevelopment to transform the city into a new urban hub, as well as many area amenities including 20 restaurants, Whole Foods, a shopping mall and the Merriweather Post Pavilion – one of the top concert venues in the nation.

Excelsa Properties represented itself in the acquisition of Columbia Pointe. The seller, Morgan Properties, was represented by Newmark.

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm with over $270 million in total equity under management and operations in the United States and the Middle East region. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 26, 2022.

Excelsa Properties Makes its Second Multifamily Property Sale in Past 30 Days Following Successful Value Add Strategy

Mon, 22 Aug 2022 06:58:15 GMT

GAINSEVILE, FL, August 22, 2022, Excelsa Properties has completed the $89.5 MM sale of a five property multifamily portfolio located in Gainesville, Florida. The company acquired the Archer Road Portfolio (“Archer”) for $42.6 MM in August 2018, implementing a comprehensive value add program over the past four years.

Archer was the first acquisition of its Excelsa Properties’ maiden multifamily fund, Excelsa US Real Estate I, LP (‘EUSRE I’). This sale represents the second exit from EUSRE I following the sale of Bend at Oak Forest in the Houston area in July.

Located in Gainesville, Archer is composed of five properties constructed in the 70s and early 80s. The properties are near the University of Florida Health Shands Hospital and the University of Florida campuses.

At acquisition, the asset had significant deferred maintenance, Excelsa invested $4 MM in repositioning the properties and renovated about 25% percent of the portfolio’s 582 units. Excelsa was able to upgrade the property from a C-class property to a B-class property. The value-add program included: a clubhouse remodeling, discernable improvements to outdoor amenities and landscaping, roof replacements, and a total upgrade of unit interiors.

“In addition to the hard work and investment that went into transforming the properties” said Jon Woods, Chief Operating Officer at Excelsa Properties, “the sale benefitted from a white-hot Florida multifamily market driven by population, job and wage growth.”

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm currently with over $200 million in total equity under management with operations in the United States and the Middle East region. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 26, 2022.

Excelsa Properties Closes the Sale of 392-Unit Multifamily Community in Houston, Texas

Thu, 28 Jul 2022 07:03:34 GMT

Bend at Oak Forest is Excelsa US Real Estate I, LP’s first exit

HOUSTON, TX, July 28, 2022, Excelsa Properties announces that it has completed the sale of Bend at Oak Forest (“Bend”), a 392-unit value-add multifamily property located in the Northwest/Oak Forest submarket of Houston, Texas.

Excelsa US Real Estate I, LP (“EUSRE I”) acquired Bend in a joint venture deal with GoldCor Capital Partners (“GoldCor”) in June 2019, representing the second addition to the EUSRE I portfolio. It is a garden-style, suburban, multifamily property constructed in 1972.

During the hold period, Excelsa and GoldCor executed a deep value-add program, rebranding the property and hiring new management.

The team improved landscaping, repaired roofs, parking areas and added patio slats, as well as refurbished 57 units by replacing floors, replacing cabinets, and installing granite countertops. A green energy program was also implemented changing lighting, thermostats, and plumbing fixtures.

“We vastly improved the physical and operating parameters of Bend,” said Jon Woods, Chief Operating Officer at Excelsa Properties, “that succeeded in transforming the community and resident experience it offers.”

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm currently with close to $450 million in total assets under management with operations in the United States and the Middle East region. Excelsa closed its second multifamily fund, Excelsa US Real Estate II, LP, on May 26, 2022. For more information, please visit www.excelsaholding.com .

Media and Press Contact:

David Ebeling

Ebeling Communications

949.861.8351 | david@ebelingcomm.com

Excelsa Raises $153 Million for its Second Multifamily Fund from Middle Eastern and Gulf Investors to Acquire about $400 Million in Assets Across the U.S.

Tue, 05 Apr 2022 06:54:19 GMT

April 5, 2022, Excelsa, a U.S.-based asset manager, announced the closing of its second U.S. multifamily fund with $153 million in equity raised. The fundraise, which began in January 2022 and reached its target of $150M by the end of March, targeted family offices and high net worth investors from the Middle East and Gulf States.

In line with its current strategy, the new fund will focus on value-add multifamily and core plus properties across several states in the US including the Sun Belt states. The new fund has already deployed $27 million in equity after it jointly acquired (with Excelsa US Real Estate I, LP) Fox Hunt Farms (256 units, Charlotte area) in December 2021 and Coventry Green (276 units, Charleston area) in February 2022. These acquisitions occurred during a pre-launch phase and through bridge loans from the investors.

"The performance of our first fund has been exceptional with very strong yields distributed quarterly and a significant capital appreciation that we are starting to materialize through several exciting exits in the pipeline ” said Fadi Majdalani, Managing Partner of Excelsa. “We are honored that all of our Fund I investors and co-investors have trusted us by joining our second fund and increasing their commitments to Excelsa."

Bassam Yammine, CEO and Founder of Excelsa, continued by saying "Our fundraising success highlights the strong appetite for multifamily investments from the Middle East and Gulf states. Our investors seek stable yields and a strong hedge against inflation which U.S. multifamily delivers. We look forward to doing more exciting real estate deals".

Founded by Bassam Yammine, formerly MENA co-CEO of Credit Suisse, Excelsa began investing in multifamily properties in 2009. Since then, the firm has acquired more than $420 million in US Real Estate properties through direct investments and through its first multifamily-focused fund Excelsa US Real Estate I, LP. The firm's portfolio includes 2,500 multifamily units as well as office properties and land.

About Excelsa Properties

Excelsa Properties Acquires Multifamily Community in Goose Creek, South Charleston for $52.7 Million

Wed, 16 Feb 2022 07:08:44 GMT

GOOSE CREEK, SC, February 16, 2022, Excelsa Properties announced today that it has acquired Coventry Green Apartments, a multifamily property located in the Goose Creek suburb of Charleston, SC, in an off-market transaction. The $52.7 million acquisition represents the tenth multifamily property acquisition of Excelsa US Real Estate I, LP (EUSRE I) and the second multifamily property acquisition of Excelsa US Real Estate II, LP.

With this property acquisition EUSRE I has fully invested its equity of $120 million and acquired approximately $350 million worth of U.S. multifamily properties.

The three-story Coventry Green Apartments consists of 256 units and features distinctive gardens, ponds, and fountains as well as a variety of amenities.

Built in 2001, Excelsa Properties intends to invest more than $5 million to upgrade this value add property.

The property is a 19-minute drive to North Charleston. It is in proximity to major employers including Joint Base Charleston, The Medical University of South Carolina, The Boeing Company, and Volvo Car USA.

“Goose Creek is part of the rapidly growing Charleston metropolitan area, with a labor force growing 3x the national average, as the area attracts global manufacturers '' said David Fletcher, Managing Director at Excelsa. “These factors will continue to drive tenant demand for years to come.”

Fadi Majdalani, Managing Partner at Excelsa, added “After the successful closing of Fox Hunt Farms in December, we are thrilled to add another stellar property to the portfolio of our newly-launched second multifamily fund.”

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm currently with over $185 million in total equity under management with operations in the United States and the Middle East region.

Excelsa Properties Acquires Multifamily Community in Fort Mill, South Carolina for $61.54 Million

Thu, 16 Dec 2021 07:10:44 GMT

FORT MILL, SC, December 16, 2021, Excelsa Properties announced today that it has acquired Fox Hunt Farms Apartments, a multifamily property located at 355 Armistead Avenue in Fort Mill, South Carolina from York Investment Properties in an off-market transaction. This $61.54 million acquisition represents the ninth multifamily property acquisition of Excelsa US Real Estate I, LP for which the firm raised $85.6 million to acquire approximately $300 million worth of U.S. multifamily properties.

Fox Hunt Farms is Excelsa's 3rd acquisition in the last 14 months.

Excelsa is partnering with Stronghold Capital Partners to acquire this off market deal.

Fox Hunt Farms consists of 276 luxury apartment units. Built in 2017, the community features one -, two- and three-bedroom units offering spacious layouts and exclusive loft suites. Each home has wood inspired flooring throughout all living areas and lush carpet in the bedrooms. The gourmet style kitchens offer granite countertops, stainless steel appliances, pendant lighting, and designer wood cabinets. The community also features resort style amenities, like the saltwater pool, fitness centers and dog park, just to name a few. Fox Hunt Farms is ideally located at the intersection of Interstate 77 and Highway 160 W, providing convenient access to neighboring communities.

“Fort Mill is the top-rated school district in South Carolina and the area has a strong mix of retail options. Fox Hunt Farms is also a 20 minute drive from major employers in downtown Charlotte” said Bassam Yammine, CEO of Excelsa. “These factors will continue to drive tenant demand for years to come.”

David Fletcher, Managing Director and Head of Acquisitions added, “we are seeing record transaction volume for multifamily properties across the United States. Excelsa Properties will be very active in 2022 with further acquisitions scheduled to close in the first half of the year.”

Excelsa Properties intends to invest more than $1.5 million in property upgrades including improvements to unit interiors, common areas, and amenities.

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm currently with $185 million in total equity under management with operations in the United States and the Middle East region.`

Excelsa Properties Acquire Multifamily Community in Camp Springs, Maryland

Fri, 12 Mar 2021 06:49:12 GMT

CAMP SPRINGS, MD, March 12, 2021, Excelsa Properties announced today that it has acquired in a joint venture Tribeca at Camp Springs (“Tribeca”), a multifamily property located at 4701 Old Soper Rd, Camp Springs, Maryland. This $64 M acquisition represents the seventh multifamily property acquisition of Excelsa US Real Estate I, LP for which the firm raised $85.6 million to acquire approximately $300MM worth of U.S. multifamily properties.

Tribeca consists of 224 condominium units operated as a multifamily property and over 18,000 SF of retail space. Completed in 2006, Tribeca has large units with 9’ ceilings, poured concrete construction, structured parking, and a high-quality amenity package. The property is located adjacent to the Branch Avenue (Green line) Metro station and within minutes of the I-495 beltway, providing immediate access to numerous employment centers in Prince George’s County and Washington, DC.

“Tribeca combines transit-corridor access, superb construction quality, and relative affordability to comparable properties in D.C.” said Fadi Majdalani, Managing Partner at Excelsa. David Fletcher, Managing Director and Head of Acquisitions added, “the Camp Springs community is already very vibrant, but the area had only one restaurant. That is changing right now. On-going new development and redevelopment are attracting new employers, new jobs and national retail, which will better serve this community and strengthen the area.”

The joint venture intends to invest more than $2 million in property upgrades including improvements to unit interiors, common areas, and amenities.

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm currently with over $130 million in total equity under management with operations in the United States and the Middle East region.

Excelsa Properties Acquires Multifamily Community in Dallas, Texas

Wed, 07 Oct 2020 07:00:08 GMT

DALLAS, TX, October 7, 2020, Excelsa Properties announced today that it has acquired Aspen at Mercer Crossing, a 260-unit multifamily community located at 1851 Knightsbridge Road, in Farmers Branch, TX. This represents the sixth multifamily property acquisition of Excelsa US Real Estate I, LP for which the firm raised an $85.6 million closed-end fund to acquire $300MM worth of U.S. multifamily properties.

Excelsa provided 100% of the equity of the transaction, which represents the firm’s first Core/Core Plus acquisition of a newly constructed, Class A multifamily property, first Dallas MSA acquisition, and first Green Globes-certified acquisition.

“We have been working very hard to secure our first asset in Dallas. We expected it to be a Value-Add investment in an older Class B or Class C property.” says David Fletcher, Managing Director and Head of Acquisitions of Excelsa. “When the Value-Add market stalled in March, we pivoted to Core/Core Plus opportunities. We are very excited about Aspen at Mercer Crossing and are now working hard to secure a second Dallas asset. The strength of the Dallas economy and job market is the opportunity. We will pursue that in Class A, Class B and Class C assets.”

Aspen at Mercer Crossing is an elevator accessible, three and four-story garden style property delivered in 2019. The unit mix features studio to three-bedroom apartments, with large floor plans ranging up to 1,423 square feet. Common-area amenities include a swimming pool, fitness and yoga room, outdoor kitchen, covered foosball and ping pong tables, private gathering area, and dog park. “The community is excellent. We’d like to add luxury services, car ports, and an outdoor exercise area.”

About Excelsa Properties

Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm with over $130 million in equity under management and activities in the United States, Middle East and Africa.