In an interview with Multifamily Dive about distress in multifamily, Kingbird’s Chief Investment Officer, Vincent DiSalvo, explains why concerns are overblown. Even though apartment owners with maturing loans will face higher interest rates and a decline in property values, he points to several reasons to be optimistic.
Real estate debt is both a boon and a curse, with higher-for-longer interest rates offering the potential for respectable returns as well as significant issues for existing investments. Kingbird Investment Management’s managing director of capital markets Lei Farrand discussed the sizable investment opportunity given the millions of mortgages that will need to be refinanced in a much higher interest rate environment than originally anticipated.
Potential trouble brewing in a sector that has been viewed as relatively bulletproof multifamily is concerning. But while stress is very much real, industry participants are quick to point out that the overall foundation for multifamily remains strong. “The cracks that we’re seeing are not structural; they’re superficial,” says Vincent DiSalvo, chief investment officer at Kingbird Investment Management, a family office investment firm specializing in multifamily.
The multifamily sector has stabilized in the near term, but its outlook will be affected by two disparate paths in front of the US economy: 1) a recession spurred by high interest rates and a decrease in consumer and government spending; or 2) a soft landing made possible by a strong consumer, on/near target inflation, and stable or slightly lower interest rates. In this multifamily outlook published in WealthManagement.com, Kingbird’s Chief Investment Officer Vincent DiSalvo shares more about how each scenario could unfold heading into 2024.
Mark Pasierb has been named President of Kingbird Investment Management, the real estate arm of Grupo Ferré Rangel. With 30 years of real estate investment experience, Pasierb will guide Kingbird’s portfolio strategy, manage operational and financial performance, and oversee mainland U.S. and Puerto Rico operations.
Kingbird Investment Management, the real estate subsidiary of Puerto Rico-based family-owned strategic investment company Grupo Ferré Rangel, is pleased to announce that Mark Pasierb has been appointed to President. In this Boston-based role, Pasierb will leverage his 30 years of experience in real estate investment to set the strategic direction of the firm’s portfolio, manage the portfolio’s operational and financial performance, and oversee Kingbird’s mainland U.S. and Puerto Rico operations more broadly.
