CP Capital Year-In-Review: 2021 | 2021 was a notable year for multifamily investment, as well as for us here at CP Capital
Jan 03, 2022
As we embark on 2022, it’s once again time to reflect on the unique and eventful year that’s passed.
Demand for multifamily space remained strong throughout 2021 - particularly in many of the growing secondary markets that have long been an integral part of our strategy. Occupancy and rental rates are currently at all-time highs across the country, fueled by healthy demographic trends, rising renter income levels, and ultra-low availability. Amid this favorable environment, we were able to close 12 multifamily fund sales, with a total volume of nearly $850 million and encompassing more than 3,000 individual units. We continued to be an active investor in the U.S. multifamily market, having completed three investments in our target growth markets this year.
This year also marked a significant milestone in the history of our firm. In late summer, we finalized a strategic partnership with Concord Pacific and HB Management- coinciding with our rebrand to CP Capital US - making them majority shareholders in our business.
This new structure provides us access to unparalleled expertise across the full spectrum of residential development and investment – allowing us to evolve alongside the needs of our investors. Our new partners’ wide-ranging experience, development expertise, and access to capital, positions us for long-term growth and will help us identify new opportunities for our investors and business partners. With this new partnership, we are well-equipped to build on our long track record of delivering attractive, risk-adjusted returns to our investors.
While many have attributed the rise in secondary market demand to the pandemic and the corollary prevalence of remote work, our experience has shown us that renters’ migration to these areas is a longstanding trend. As more and more residents of major gateway markets continue to leave in search of larger and more affordable rental homes, many are finding them in the suburbs or smaller growth cities across the South, and other regions.
As longtime investors in these markets, we are well-positioned to identify and capitalize on opportunities where for-sale supply of housing is limited and record-high home prices keep homeownership out of reach for many, continuing to drive demand for rental apartments. We believe this demand will only continue to increase due to limited supply as a result of strict municipal regulations and potential opposition from residents looking to block apartment development.
All of these factors hold significant promise for our team at CP Capital US, as the network and proven model we’ve developed over the past three decades makes us uniquely equipped to unlock opportunities and value in an ever-evolving multifamily climate. We also expect that the sector’s outperformance will continue to attract new attention from investors, particularly as other segments of commercial real estate continue to be plagued by uncertainty following the pandemic.
With a successful 2021 now in our rearview, we are looking forward to sharing even more news to showcase our activity and growth in the year ahead.
Paul Doocy & Jeremy Katz
Co-Heads, CP Capital US