Viking Capital is carefully reviewing thousands of potential deals to identify the best opportunities for our investors, though no deal has been selected yet. Our diligent analysis process continues, ensuring we find investments that align with market trends and investor objectives.
This week, March 3rd & 4th Viking Capital will be at Best Ever Real Estate Conference, in Salt Lake City. If you’re attending we encourage you to visit us at booth B6 for fun giveaways and an opportunity to meet our team in person!
Did you know that Viking Capital has a podcast?
Tune into Viking Capital’s wealth {un}filtered. This month, we interviewed both John Chang, Lead Economist at Marcus & Millichap, and Senior Economic Advisor for CBRE, Spencer Levy.
In these education packed episodes both guests do a deep dive into the micro and macro trends shaping the multifamily market and the investment landscape for 2025.
When you press follow or subscribe you will receive notifications for every new episode and get exclusive early access to insightful conversations with industry leaders plus real estate investment advice and trends to watch from Viking Capital’s VP of Investor Relations, Chris Parrinello.
Listen on Spotify, Apple, or watch on Youtube, below!
Viking Capital’s VP of Investor Relations, Chris Parrinello, will be in Dallas March 20th & 21st, then Washington DC March 25th and would love to connect!
Text the number below to schedule a meet up time!
What We Think: While Raphael Bostic forecasts two rate cuts in 2025, we expect these cuts to occur later—likely around Q3—as the Fed remains cautious amid risks from trade policy changes, immigration restrictions, and geopolitical developments. Despite last year’s easing with three rate cuts, the Fed is taking a measured approach. Moderating shelter inflation and robust job growth provide some stability, yet concerns persist over the inflationary impact of Trump’s proposed tariffs and the economic fallout from widespread layoffs tied to his administration’s aggressive cost-cutting measures, spearheaded in part by Elon Musk. With inflation still above target and new tariffs potentially driving prices higher, the Fed is likely to remain patient before resuming rate cuts.
As always, if you have any questions, do not hesitate to reach out to our Investor Relations Team.
Onward & Upward,
Although overall transaction volume remains below the 2015–2019 average of $169B and much lower than the $332B seen in 2021–2022, 2025 is showing renewed momentum. Despite rising cap rates, apartments remain appealing with an average cap rate of 5.57%—the lowest among major commercial real estate sectors—underscoring their relative stability and income potential.
Why this Matters:
Resilient Demand: Even though sales volumes are below historical highs, the rebound signals that high-quality apartment assets continue to attract investor interest, particularly in major coastal markets.
Steady Income & Value Potential: Attractive cap rates support reliable income, while the current market dynamics encourage a focus on value-add opportunities and affordability strategies to boost asset performance.
Strategic Positioning: With economic uncertainty and pricing pressures on the horizon, concentrating on well-performing rental markets offers a safe haven and potential for long-term capital appreciation.
Blackstone Exits Single-Family Rentals – What’s Next for Multifamily?
Blackstone is shutting down Home Partners of America, marking a major shift in its real estate strategy. As institutional investors scale back on single-family rentals, multifamily investments are gaining even more traction.
With affordability challenges driving demand for multifamily, investors have a prime opportunity to capitalize on stable, cash-flowing assets.
Discover how key economic indicators—job growth, domestic migration, inflation, and shifting interest rates—are reshaping the multifamily market in 2025. Despite a rebound in apartment investments, sales volumes remain below historical highs, while rising cap rates and economic uncertainty highlight the need for strategic moves.
Investors are zeroing in on value-add opportunities, affordability strategies, and strong-performing rental markets to navigate these trends and capitalize on emerging opportunities.
Read on to see how these forces can redefine your investment strategy.
Look at the difference a small change can make in creating value and enhancing a building’s appearance. Simple value-add improvements like upgraded amenities, modernized units, and energy-efficient systems not only elevate tenant satisfaction but also drive higher rents, reduce operating costs, and ultimately boost NOI. These small investments create lasting value, making the property more competitive and profitable.
Viking Capital Investors: You should have received your quarterly reports last month, if you did not, please reach out to Investor Relations. The monthly updates will be sent out next week.
The multifamily market is facing a tightening supply scenario—with a 20% drop in new permits in 2024 and completions expected to fall another 15% in 2025—resulting in fewer new units and driving rents higher in booming cities like Atlanta, Phoenix, and Dallas. This supply crunch is setting the stage for strong returns in 2025.
Amid these dynamics, Peoria Gateway stands out as a prime investment opportunity to prime your portfolio for anticipated shortages in 2026.
Despite fears surrounding development challenges and rising construction costs, strategic investments in Peoria can offer a unique edge as demand outpaces supply.
