At IEQ Capital, continuous learning is central to how we help families navigate evolving markets with clarity and foresight. Through IEQ Elevate, our professional development platform, we bring leading investment and real estate perspectives to our team, translating insights into strategies for UHNW families and family offices.
Recently, we hosted a discussion with Four Peaks Multifamily Partners (FPM Partners), a real estate investment manager focused on multifamily properties in select U.S. growth markets with an emphasis on Mountain West and Midwest states.
From Challenge to Inflection
The conversation began with a review of the multifamily real estate sector’s performance through 2023 and 2024. These years were broadly difficult for owners and investors. While most well-maintained properties remained at healthy occupancy levels, elevated new supply weighed on rents, which in many cases failed to meet underwritten expectations. In addition, concessions and price adjustments were sometimes necessary to maintain tenant demand. That said, multifamily has proven to be more resilient than other commercial real estate sectors such as office, where even steep discounts have often failed to revive demand. 1
Looking ahead, however, FPM Partners views 2025 as an inflection point for improving fundamentals. While some recent Census Bureau data has shown conflicting signals, most indicators suggest that new construction starts are moderating, which should reduce the risk of future oversupply.2 With peak deliveries likely in the rearview, we believe reduced levels of new supply have supported renewed rental growth in recent periods, particularly for value-add managers. This transition is creating conditions where operational expertise, disciplined underwriting, and access to capital become central to value creation.
Opportunities from Distress and Legacy Sales
As the discussion turned to where opportunities may emerge, FPM Partners described today’s opportunity set as a “three-legged stool.” Two of the legs are rooted in some form of distress: owners facing higher debt service costs and maturing loans who are compelled to sell, and developers who underwrote projects during the low-rate era but now contend with refinancing challenges and slower than anticipated lease-ups, often forcing early exits as construction loan maturities loom. The third leg reflects a different dynamic, long-time “mom and pop” landlords seeking to sell properties as part of estate or liquidity planning. 1 5
IEQ believes each of these forces is contributing to a pipeline of potentially attractive assets coming to market. For UHNW families, this dynamic underscores why alignment with managers who can identify multifamily real estate investment opportunities in complex situations may prove especially valuable.
Regional Divergence in Rent Growth
Geography and operations add another layer of differentiation across multifamily markets. In the Midwest, markets such as Columbus and Indianapolis continue to exhibit positive rent growth, aided by improved affordability relative to coastal markets and solid employment growth. 1 3 5 By contrast, the Sun Belt has attracted significant long-term migration and investment but faces near-term challenges as elevated new supply continues to be absorbed across several major markets. 1 4
Operating costs also remain in focus. After sharp increases in 2022–2023, insurance costs began to normalize in 2024, though regional disparities persist. These operational realities, financing, insurance, and regional supply dynamics, are shaping the playing field just as much as headline valuations. 1 5
Policy Watch
Beyond market fundamentals, tax policy also bears watching. A significant change came with the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, which permanently restored 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025. This reverses the previous phase-down schedule under the 2017 Tax Cuts and Jobs Act, which had reduced the benefit to 40% for 2025. 6 7
For multifamily investors, the ability to accelerate deductions upfront may enhance early tax efficiency on new acquisitions and renovations. Tax strategy remains a critical element of multifamily real estate investment planning for UHNW families. At the same time, we believe underwriting decisions should remain anchored in long-term cash flow and operating fundamentals, not solely in tax acceleration. We encourage UHNW families to discuss these developments with their tax and legal advisors to ensure alignment with broader planning objectives.
Why It Matters for UHNW Investors
Taken together, these factors point to a multifamily sector that is more selective and more nuanced than in recent years. The combination of distress-driven sales, regional rent divergence, evolving financing conditions, and renewed tax incentives creates both complexity and opportunity.
For UHNW families, the implication is clear: success will likely depend on partnering with managers who can source transactions directly from motivated sellers and navigate complex situations with discipline. In a segmented market where not every deal will perform equally, the ability to access opportunities off-market, rather than through broadly brokered processes, may prove to be a key source of advantage.
Closing Thoughts
At IEQ, we continue to monitor how supply cycles, financing markets, and tax policy will influence multifamily performance. For families seeking resilient income and potential value creation, aligning with experienced managers may offer exposure to both stability and recovery in this evolving real estate landscape.
About the Speakers
Four Peaks Multifamily Partners (FPM Partners) is a real estate investment manager founded in 2019, exclusively focused on multifamily properties in select U.S. growth markets. Since inception, FPM Partners has acquired more than $1 billion in multifamily communities, leveraging decades of institutional experience across 35,000 units in 30 states. The firm applies a disciplined, value-add strategy, targeting opportunities where cosmetic and operational improvements can enhance cash flow and long-term property values.