Hello Friends and Investors,

As March unfolds, one theme continues to crystallize: Patient capital is being positioned for the next leg of the cycle.

Over the last year, much of our focus was stabilization — navigating refinancing headwinds, protecting balance sheets, consolidating operations, and restoring certainty where markets had introduced volatility.

Today, that stability is increasingly evident. Multiple properties have been successfully refinanced, resulting in resumed distributions. Across the portfolio, renewal increases have averaged approximately 4.5% over the past 90 days, even in the middle of winter, with a 64% conversion ratio. All healthy operating signals.

While not every asset is fully optimized - the broader narrative has shifted meaningfully from stabilization to optimization. At the same time, transaction activity is beginning to return. We made five offers last week and are actively touring additional opportunities. Debt markets are competitive. Spreads remain tight. Cap rates have largely held steady and may be trending modestly downward as interest rates moderate. Yield expectations are compressing.  The data increasingly suggests we have moved past the bottom of this cycle.

That does not mean euphoria. It means continued discipline; selective engagement; and being prepared when the math works. Even amid renewed geopolitical headlines - real estate fundamentals continue to advance at a deliberate, measured pace. Income streams remain durable. Capital flows adjust, but well-positioned assets endure. And we are ready.

The Cycle in Perspective

The chart below captures what the last 15 years of private real estate have looked like. The gray bars represent income - remarkably steady through:

• COVID
• Aggressive rate hikes
• The deepest correction since 2009

The orange bars represent appreciation - far more volatile.

Real estate moves slowly. Sometimes painfully so. But it has been reliably cyclical for generations.

The length of each cycle tends to be a function of the excesses or pain of the one prior. The epic run following the Global Financial Crisis was born out of deep dislocation. The correction of the last several years has reset valuations and curtailed new development, reducing forward supply pressure. This is typically the part of the cycle where patient capital is rewarded.

Not fire-sale territory. Not peak froth. But disciplined opportunity.

Portfolio Momentum

As we continue through our “State of the Investment” season, the progress across our portfolio is tangible:

• Refinances completed on multiple assets approaching maturity
• Distributions resumed on several stabilized deals
• Renewal increases averaging ~5% over the past 90 days
• Competitive debt markets supporting selective deployment

Last year felt like shedding old skin - repairing balance sheets, consolidating operations, strengthening foundations.

This year feels different - We are increasingly focused on optimization and thoughtful growth.

Featured Articles

CRE Daily - CRE Valuations Drop Below Equities

CRE valuations fall below US equities for the first time in 20 years, signaling renewed investment opportunities across key property sectors.

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Apartment List - National Rent Report

The national median rent increased by 0.2% in February, and now stands at $1,357. This marks the first monthly increase since last July, as the market begins to pull out of its off-season pricing dip.

Read Article→

Quote of the Month

“The big money is not in the buying or the selling, but in the waiting.” — Charlie Munger

Podcast Feature - Tenero

Tyler recently joined the Tenero podcast with Garrett Sutton and Katrina Loftin to discuss a topic that has become increasingly central to our philosophy: Success in real estate is about people — not spreadsheets.

Underwriting matters. Structure matters. Discipline matters.

But long-term wealth in this business is built through aligned operators, trusted partners, and strong teams. Real estate is a team sport, and durable outcomes are created through collaboration.

You can listen to the full conversation here.

Looking Ahead

The last several years demanded resilience and patience.

Today, certainty is increasing. Activity is returning. Supply pipelines are thinning. Debt markets are competitive.

We remain disciplined. We remain selective.

And we believe patient capital is being positioned for the next leg of this cycle - We are ready.

As always, thank you for your continued trust and partnership.

In Partnership,
Tyler & Bryan

Hello Friends and Investors,

Over the past few years, CF Capital’s growth has been far more moderate than our early expectations. At times, that’s been humbling. In hindsight, we’re genuinely proud of it.

What’s surprised us most isn’t the market — it’s how operational this business has truly become. Everything ultimately comes back to execution: people, systems, culture, and process. We’ve had to become far more patient than we ever imagined. But that patience has allowed us to protect capital, avoid bad deals, and build a much stronger foundation than if we’d chased scale for its own sake.

After a slower and disciplined few years, we’re starting 2026 with a real sense of momentum — not because the market suddenly got easy, but because our platform is stronger, our standards are higher, and we’re increasingly seeing the kinds of opportunities on which we’re built to capitalize.

2025 in Review: Discipline Over Activity

We did not acquire a new asset in 2025 — and that was very intentional. It was a year defined by:

• Underwriting discipline and IC rigor
• Capital preservation and risk management
• Operational upgrades across the platform

In an environment where many sponsors stretched, forced growth, or inherited fragile capital stacks, we chose restraint. Better to do no deal than a bad deal — especially in distorted markets. Instead, we focused on strengthening the engine:

• Continued deepening of our EOS operating system (now over six years running)
• A major level-up in Asset Management and Investor Relations
• The addition of Alex Terauds as Acquisitions Principal
• Consolidation of property management with a single group in which we hold a minority partnership
• Successful refinancings and loan extensions across the portfolio

We didn’t grow units in 2025. We grew capability.

Market Overview: Midwest & Upper Southeast

Across our core markets — Kentucky, Indiana, Ohio, and Tennessee — fundamentals continue to look more resilient than national averages.

While national rent growth was largely flat in 2025 and vacancy rose due to the heavy 2023–2024 supply wave, most Midwest and Upper Southeast markets experienced far less new construction, helping keep occupancy relatively stable and rent growth modestly positive. Cities like Louisville, Indianapolis, Cincinnati, and Columbus benefit from:

• Relative affordability
• Diversified employment bases
• Lower development pipelines

These markets aren’t necessarily producing headline-grabbing growth — but they’re avoiding the sharper corrections seen in overbuilt Sunbelt metros. From a capital perspective, lenders and equity remain selective nationwide, but we’re seeing stronger appetite for secondary markets with stable cash flow and realistic pricing. In many of our target markets, valuations have already adjusted meaningfully, which is helping narrow the bid-ask gap and improve transaction feasibility.

Our view:
The national story is mixed. Our regional footprint continues to offer the most attractive long-term setup — lower supply risk, steady demand, and pricing that actually reflects today’s capital environment.

NMHC 2026: Our Takeaways

After spending time with operators, lenders, equity partners, and brokers at this year's NMHC, three themes stood out:

After spending time with operators, lenders, equity partners, and brokers at this year's NMHC, three themes stood out:

1. Pricing denial is still widespread
   Many owners are still anchored to yesterday’s valuations.
2. Distress exists — but it’s uneven
   It’s not a tidal wave. It’s situational, sponsor-specific, and often tied to capital structure.
3. Capital is available — for the right sponsors
   Strong operators with disciplined underwriting and real execution capacity still have access.

This combination is exactly where we believe the next cycle’s best opportunities will emerge.

Our Contrarian Lens for 2026

We will not follow the herd. The opportunities we’re most focused on don’t look flashy. They look like:

1. “Boring Rescues”
   Well-located assets with tired sponsors, broken capital stacks, deferred maintenance, and operational complexity most buyers avoid.
2. Operator Succession Partnerships
   Smaller owners who don’t necessarily want to exit — but don’t want to keep doing it alone.

In many cases, the real opportunity isn’t bad real estate. It’s good assets trapped in the wrong structure.

Looking Ahead

We’re early — and ready to take advantage.

We believe:

• We could see actionable opportunities in the next 60 days
• We feel high conviction by Q2 2026 that meaningful deal flow will materialize

We’re approaching it with:

• Stronger infrastructure
• Deeper operational bench
• Higher underwriting standards
• More institutional capital relationships

Patience is turning into optionality.

Featured Articles

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Multifamily Dive - Apartment sales volume rose 9% to $165.5B in 2025

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Quote of the Month

 “The best investors aren’t those who avoid mistakes — they’re those who refuse to make big ones.” 
 — Seth Klarman

Closing Thoughts

The last cycle rewarded speed.
The next cycle will reward judgement.

We believe CF Capital is entering this phase better positioned than ever — not because we grew the fastest, but because we built the strongest foundation.

We appreciate the trust you place in us and look forward to sharing the next chapter together.

In Partnership,

Tyler & Bryan

Friends and Investors, Happy New Year! January has a way of creating space—to pause, take inventory, and rethink how you’re thinking about the year ahead. For many business owners & leaders we speak with, the last few years have been productive—but not simple. You’ve kept companies growing, teams together, and capital working through an uneven economy where outcomes haven’t been evenly distributed.  What we hear most often isn’t fear or hesitation...  It’s discernment.  A desire to work with fewer people you trust more. To simplify where capital is deployed. And to make sure the next phase of wealth creation is built on sound fundamentals—not noise. For those who’ve invested alongside us, we don’t take that trust lightly. At CF Capital, investment discipline has guided us through the current real estate cycle and demonstrated that operational excellence matters more than financial engineering. Incentives matter more than intentions. And that real alignment can’t be outsourced. These experiences strengthen how we operate, how we build teams, and how we steward capital. As a result, we enter 2026 with a level of focus and confidence we couldn’t have had a few years ago—not because the market is easy, but because our approach is sharper.

We’re excited to formally welcome Alex Terauds to CF Capital as our Acquisitions Principal. Alex brings deep experience sourcing, underwriting, and executing multifamily investments with an operator’s mindset and a long-term orientation. More importantly, he shares our conviction around discipline, alignment, and doing things the right way—especially in complex or uncertain environments. As opportunities begin to open up in this next phase of the cycle, Alex strengthens our ability to move thoughtfully, decisively, and in alignment with our investors. Join us in welcoming Alex to the team!

2025 Review / 2026 Outlook 2025 was not a year for shortcuts—and that’s precisely why it was formative. The past 12 months reinforced a simple truth we’re carrying into 2026: the next wave of value creation in multifamily won’t come from clever structures or aggressive assumptions. It will come from execution, patience, and alignment. We recently published a short Blog reflecting on the lessons of 2025 and how we’re positioning CF Capital for the year ahead. Read 2025 Review & 2026 Outlook →

White Paper:  Lessons Shaping the Multifamily Market in 2026

We also released a new White Paper outlining the key lessons we believe will shape multifamily investing in 2026 and beyond—from operational alignment and capital structure discipline to where we see real opportunity emerging as the cycle turns. This is written for investors who want perspective, not predictions. Download the White Paper →

NMHC | Las Vegas – January 27, 2026 Bryan and Tyler will be attending NMHC later this month in Las Vegas. These conversations—on the ground, with operators, lenders, and capital partners—continue to reinforce our conviction that disciplined operators with staying power are going to be well-positioned in the years ahead. If you’ll be there and would like to connect, let us know →

From Multifamily Broker to Impact-Driven Investor and Mentor

Tyler Chesser is co-founder and Managing Partner of CF Capital, a private-equity real estate firm...Read Article

Midwest Affordability Draws Buyers

Midwest affordability attracts buyers with low home prices, strong wage growth, and new housing supply amid rising demand....Read Article

The Psychology of Money

by Morgan HouselDoing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. Money―investing, personal finance, and business decisions―is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don’t make financial decisions on a spreadsheet.

“The ability to do well for long periods of time depends less on what you do than on what you can survive.” — Morgan Housel

Many of our investors are successful business owners who’ve already done the heavy lifting—building companies, creating income, and taking meaningful risk. Now, the focus is on having capital work harder for you: producing predictable cash flow, long-term appreciation, and meaningful tax efficiency while you reclaim time and flexibility. That’s who we build for. As always, we appreciate the opportunity to build alongside you, and we’re looking forward to what 2026 brings. And if you know another business owner who’s thinking more intentionally about how they allocate capital in this environment, feel free to forward this along. Here’s to a joyful, focused, disciplined, and exciting start to the year for your families and finances. In Partnership, Tyler & Bryan PS. If this perspective resonates, feel free to share it with another business owner who’s thinking more intentionally about where and with whom they deploy capital this year.

Hello Friends and Investors,

As we close out 2025 and enter the Christmas season, we find ourselves deeply grateful—both for the trust you continue to place in us and for the opportunities this year has brought to demonstrate what disciplined, long-term stewardship really means.

This has been a year defined by resilience, patience, and strategic progress, culminating in another meaningful win as we closed the Embassy refinance last week. With three important capital events successfully navigated this year, our highest priority initiative—protecting investor capital first—has remained a clear and consistent success.

And looking ahead, we’re optimistic. Not because the market is suddenly “easy” (it’s not), but because we’re positioned for what comes next.

Market Overview

Making Sense of a Bifurcated, Paradoxical Market

If you’ve been watching the market closely, you’ve likely noticed what we’ve noticed: this is one of the more complex real estate moments in recent memory.

A few truths are simultaneously at play:

1. Pricing is still disconnected from reality.
   Sellers continue to anchor to valuations that no longer align with risk, cash flow, or debt markets. Deal volume remains frozen in many pockets, and the few trades that do occur often clear at prices that do not properly compensate for today’s risks.
   
2. Debt has improved—but it’s not “cheap money.”
   Yes, rates are down ~100 bps from Q1 of this year. No, we’re not back to a world where low-cost leverage makes everything pencil. Debt is… better. Not great. Not awful. Just better, and a bit more stable.
   
3. This is a moment for selective offense, not broad activity.
   We didn’t buy a new deal in 2025—not for lack of work (it has been the opposite, in reality), but because the market is generally not currently compensating risk appropriately. We came close on several opportunities, but doing them would’ve required a stretch that violates our long-term principles. Discipline now sets the foundation for outperformance later.
   
4. Fundamentals are softening in pockets of the market.
   Vacancy is slightly up, new supply is being absorbed, and renters are behaving as though they are under pressure, but long-term demand drivers remain intact. This is a challenging moment, not a breaking moment—and challenging moments create opportunity for disciplined operators.

Successful Refinance

Major Update: Embassy Refinance Successfully Completed

Last week, we closed the refinance on Embassy Apartments—a major milestone that reflects months of persistent work, strategic leadership, and commitment to investor stewardship.
The Strategic Win

With the refinance, we're further protecting investor capital and extending the runway for continued value creation. This refinance positions Embassy for additional value-add execution, operational optimization, and a future sale in a more favorable market environment.

The Challenge We Overcame
Our initial refinance lender unexpectedly dropped out this summer (citing market conditions), forcing our team to take full control of the process, lean heavily on industry relationships, and execute a complex refinance under significant time constraints. The outcome was not just a “save,” but an accretive, long-term capital structure.

What CF Capital Continues to Deliver:
Resiliency. Execution under pressure. Capability in complex environments. This year proved what we’ve always said: When things get hard, we get better!

Active Opportunity

Current Opportunity: Embassy Promissory NoteFor investors seeking high income-oriented yield, the Embassy Promissory Note remains open for investment. Key Terms - 12% annual yield, paid quarterly1% origination fee - 1% exit fee - 3-year term (expected full return of capital within ~2 years) - Minimum investment flexible Why Consider This Opportunity? - High-yield debt position backed by a strong, cash-flowing asset - Income-oriented structure in a low volatility debt position - Well-suited for accredited or sophisticated investors (self directed IRA funds eligible) and small family offices - Aligned with our broader long-term capital plan for the asset This is available on a first-come, first-served basis.

Click here to request details or schedule a call.

What We're Reading

The Science of Scaling   by Dr. Ben Hardy A powerful reminder that incrementalism equals stagnation. The path to meaningful growth—whether in business or investing—is paved with "impossible," transformational goals. As we head into our annual company offsite next week, this message resonates deeply:  Impossible goals transform thinking and behavior that incremental goals never will.

Quote of the Month 

“A culture of discipline is not a principle of business; it is a principle of greatness.” — Jim Collins

Closing Thoughts

2025 was a year of proving our principles: Protect capital. Execute with discipline. Build for the long term.
We’ve navigated complexity, overcome obstacles, acted with patience, and positioned ourselves for an exciting 2026 and beyond.
Thank you for your trust, your partnership, and your continued belief in our mission.
From our family to yours, Merry Christmas and Happy Holidays.
We look forward to building a powerful year ahead—together.

In Partnership,
Tyler & Bryan

Hello Friends and Investors, At CF Capital, our mission as fiduciaries is clear: protect capital first, then scale it meaningfully. Real estate is a long-term asset class, and so is our mindset. This year, we have not acquired a new asset — not from inactivity, but from disciplined selectivity. The market remains out of alignment in many pockets, and we believe the patience we exercise today will translate into compelling opportunities tomorrow. Market Overview

Market Perspective Underwriting Discipline & Operational Excellence Matter More Than Ever The most successful investors in this part of the cycle are not the most aggressive — they are the most disciplined and operationally capable. In a market where debt costs, seller expectations, and capital flows are still normalizing, the path to outsized returns is forged through:Conservative and reality-tested underwritingOperational mastery, not financial engineeringPatient capital allocation, not speculation

Operational Performance — A Proof Point Our disciplined operating approach is delivering real results. Over the past two years since our management transition in 2023:T-3 NOI Annualized Growth: +51% T-12 NOI Growth: +31%Execution matters — and it compounds. These results underscore why we obsess over operations, resident experience, and expense discipline. In an environment where many operators are reacting, we are proactively strengthening asset performance and cash flow positions. Active Opportunity

Short-Term Opportunity - 12% Fixed ReturnThere are a limited spots available in a short-term investment opportunity: a 12% annual yield Promissory Note secured by Embassy Apartments, a 247-unit multifamily community in Evansville, IN. This short-term debt investment is structured to provide both attractive income and downside protection: Promissory Note Key Features:Coupon & Term: 12% fixed annual rate, paid quarterly; principal repaid upon refinance into long-term debt or sale (expected within ~2 years, with flexibility up to 3 years). Note includes 1% origination fee and a 1% exit fee. Invest With Confidence: The Promissory Note is secured by Embassy Apartments, a 247-unit multifamily community in Evansville, IN. Limited Spots Available!

INVEST NOW

Leadership & Vision

We are stewards of capital and stewards of your trust. Our long-term orientation isn’t just philosophy — it's behavior. We will not compromise underwriting discipline. We will not force a deal to satisfy a calendar or narrative. We invest when the risk-adjusted reward is clear and compelling — and that moment is drawing closer. When the window opens, we will be ready.

Educational Corner: What ‘Disciplined Underwriting’ Means TodayIn this market, investor protection starts with conservative and realistic deal modeling. We continue to hold firm to:Basis below replacement cost — structural downside protectionPositive leverage — deals must cash-flow and accrete value on day oneModerate, data-supported assumptions — no aggressive rent growth stories, no heroic exit cap assumptionsA good deal today must work in today’s environment — not require tomorrow’s optimism.

Team News

We are thrilled to share two positive updates: 🏢 Acquisitions Team Expansion We are in the final stages of adding a key acquisitions team member — a deeply exciting step as we prepare to lean into market opportunities. Announcement coming soon. 👶 Celebrating Family Congratulations to Angela Blankenbaker, Regional Property Manager, on welcoming twin grandsons this month! Angela’s leadership and dedication continue to elevate our communities and support our residents — please join us in celebrating her growing family.

Featured Articles

Multifamily investment is rising in 2025 as Nashville and Midwest cities lead with strong fundamentals, affordability, and job growth. Multifamily real estate is regaining strength in 2025. After two years of declining values, prices are trending upward. This shift is driven by rising rents and a more favorable interest rate outlook. As a result, investors are returning to the market — especially in affordable and stable metros.... [Read → HERE]

Quote of the Month

"Gratitude is not only the greatest of virtues, but the parent of all others."  - Cicero

The market is evolving, clarity is increasing, and disciplined operators will be rewarded. We’re grateful for your partnership and trust — and we look forward to deploying capital prudently as this next phase unfolds. In Partnership, Tyler & Bryan

Hello Friends, Partners & Colleagues,

Hope you and your families are having a great fall!

Fall always brings a reset—kids back in school, routines getting sharper, and in the real estate business, it’s a natural time to evaluate where we are and where we’re heading (though if we’re honest, we’re always doing that!). The past couple of years have been anything but smooth for anyone in our business, but we’ve continued to execute, adapt, and position ourselves for what’s ahead, keeping the long view in mind.

We’re excited to share a major win this month: in a challenging capital markets environment, we closed the refinance of one of our assets, Paddocksat Ridge Park, with a 5-year Fannie Mae fixed loan at 4.92%. It’s a deal that gives us long-term stability at the asset level, strengthens investment stability for our partners, and reinforces the resilience of our portfolio.

CF Capital is built for times like these—disciplined, steady, and ready to strike when the right opportunities align. With that, let’s dive into some market insights and updates.

Market Overview

Market Pulse: Midwest + Macro Realities

Midwest Holding Firm as Deliveries SlowNorthmarq’s Q2 2025 report shows rents in the Midwest still ticking up while deliveries are down ~10% year over year in H1. That gives existing assets breathing room. Vacancies shifted little, and cap rates averaged around 5.6% in the region.

National Growth is Soft—Demand SteadyYardi’s June numbers show U.S. asking rents inching higher, but only modestly. Month-to-month rent growth in May was just $6 on average. That tells us demand isn’t collapsing—but it’s cautious.

Midwest Poised to OutpaceAccording to July GlobeSt projections, Midwest and Southeast metros are expected to lead rent growth over the near term. In Columbus, forecasts call for 3.6% effective rent growth and occupancy holding near 93.5% despite new deliveries.

Takeaway:We’re not predicting fireworks. But in a market settling into baseline realism, fundamentals matter as much as they ever have. And in that setting, markets like ours—less speculative, more anchored—are the ones in position to benefit as momentum shifts.

Portfolio News: Win at Paddocks

Refinance Win at Paddocks

We’re proud to announce we closed the refinance for Paddocks at Ridge Park, locking in a 5-year Fannie Mae fixed loan at 4.92%.

This is more than just a line in a report—it’s stability (and materially reduced debt service burden) delivered in a market where stability is rare:

• It gives the asset room to breathe without refinancing or sale pressure, but preserves optionality for exit when the time is right.
  
• It reassures partners that we’re stewarding their investment with long term prudence—protecting capital, positioning for improved cash on cash returns and navigating the market cycle. 

Huge thanks to our operations team on the ground and at the leadership level for optimizing the asset performance after the repositioning of the asset via implementation of a multi-year business plan—and to Bellwether Capital (BWE) for structuring and executing with precision. Their excellence made this possible!

Featured Articles

Perspectives: To Buy or to Build?

Buying early in the cycle and building later may feel intuitively correct, but our analysis of historical market data finds that the opportunity is more nuanced. It’s a commonly held belief that acquiring assets early in the real estate cycle (when asset prices are lower) and developing them later in the cycle (when prices tend to rise) is an effective investment strategy. However, digging into the historical data paints a more complicated picture. In fact, our research finds that the... [Read → HERE]

How the Federal Shutdown Impacts the Multifamily Industry Certain public housing funding has been obligated through November, but the Federal Housing Administration will not accept new multifamily mortgage applications.   How will the federal government shutdown impact the multifamily industry? That depends on how long it drags on, and there are few public indications of meaningful negotiations so far, AP News reported.  [Read → HERE]

Team & Growth: Scaling with Intent

CF Capital is building for what’s next—and that means adding the right people:   Operations-Minded PartnerWe’re looking for a partner who can own the implementation of portfolio business plans, hound operations, and ultimately help leadership focus on growth. The long game: 15,000 units in 5–7 years. If you know someone who’s mission-driven and execution-obsessed, point them our way.   You’ll find full job descriptions and application details via the link, along with a candidate guide attached. Feel free to share this broadly if you feel compelled. LINKEDIN POSTING

Quote of the Month

"We don't have to be smarter than the rest. We have to be more disciplined than the rest."  - Warren Buffett

Looking Ahead

Final Thoughts: Grounded, Ready, and Steadily Hungry

Yes, we’ve weathered storms (most of us have!). This isn’t a moment for us to rest on our laurels—it’s a moment for further execution. The refinance is a win we will build on to expand future optionality and growth. It’s all about stacking wins, addressing the challenges, and keeping our gaze above the trees so we can capture what’s next as we rely on fundamentals and discipline. As year-end nears, we expect to find deals that reward patience, and we will enthusiastically share those opportunities.

Thank you—sincerely—for your trust and your partnership. We’re glad you’re with us, and we’re excited for the next chapter together.

In partnership,
Tyler & Bryan

Hello Friends and Investors,

As summer’s momentum fades and the fall season settles in, it’s a powerful moment to reflect, recalibrate, and reaffirm our strategic direction. Despite the challenges these past years, CF Capital remains grounded, agile, and ready. We continue to anchor our approach in discipline — and if history is any guide, timing is everything.

Market Overview

Market Snapshot: Midwest Multifamily Holding Strong   

• Our Region Outpaces National Trends: While U.S. average rent growth has cooled to about 0.7% YoY, our Midwest target markets such as Columbus (+3.9%), Indianapolis (+2.3%) and Cincinnati (2.4%), continue to outperform.
  
• Occupancy Remains Robust: Apartments across our target markets hovered around 95% occupancy in Q2, and absorption exceeded national average — 116,000 units absorbed in Q2 alone, one of the strongest quarters in two decades.
  
• Sun Belt Supply Cooling: Nationally, construction is slowing, especially in high-supply regions. As starts decline, fundamentals tighten — setting the stage for renewed rent growth in 2026 
  
• Tax Tailwinds for CRE: The newly enacted OBBBA Act reinstates 100% bonus depreciation, solidifies 1031-like exchanges, and enshrines other tax advantages — providing clarity and upside for long-term investing

Bottom Line: Midwest Multifamily continues to show durable fundamentals — healthy rents, occupancy, and demand — anchored by limited new supply and favorable policy tailwinds.

What We’re Watching: Active Positioning, Strategic Patience 

Here’s where CF Capital stands today:

• We are actively underwriting, touring, and making offers. While nothing is currently locked in, our pipeline remains robust, with a follow-through mindset — no negative leverage, conservative assumptions; only prudent deals.
  
• We’re optimistic about offering a new equity investment opportunity before year-end.
  
• A promissory note opportunity may surface depending on the Paddocks refinance outcome — likely in the next few weeks.

Our message is both grounded and forward-leaning: we’re ready to act when opportunities align with our standards.

Team Growth & Leadership

Building for the Next Phase  

As we continue laying the foundation for long-term growth, we’re expanding our leadership and deal-making capacity through the growth of our team:

1. Operations-Minded PartnerPurpose: Scale CF Capital’s operational infrastructure and allow the senior leadership to focus on platform growth.
   
   
   Objective: Lead asset-level excellence, enable CF’s ambition to scale to 15,000 units over the next 5–7 years, and eventually (ideally) assume company-level operations oversight in the future. 
   
   PARTNER REQUIREMENTS
   
2. Fractional Acquisitions Associate (Performance-Based)Purpose: Ramp up our sourcing pipeline and enable disciplined access to off-market and value-add opportunities throughout our target market. 
   APPLY NOW

If you know someone who aligns with our core values of Leadership, Excellence, Integrity, Purpose and Grit for either of these roles, please reach out. Level 10, A players only, please! 

Featured Articles

Three Indications Private Real Estate has Found its Bottom

Private real estate is showing signs of a robust recovery, with improving returns, loosening lending standards, and rising transaction volumes—all pointing to a more favorable environment for capital deployment in the quarters ahead. [Read → HERE]

Rising Powerhouses: The Cities Making America’sEconomic Future

Across the U.S., cities are seeing steady growth driven by business activity, rising incomes, infrastructure upgrades and expanding populations. And, it’s not just the usual hotspots leading the way. Instead, innovation, tech adoption, workforce shifts and global trade changes are reshaping where and how growth happens.[Read → HERE]

CF Blog

Why Smart Capital Is Staying PutWhy Smart Capital Is Staying Put: Long-Term Thinking in a Noisy MarketMarkets are noisy. Headlines shift by the day. But smart capital isn’t chasing chatter—it’s doubling down on fundamentals, location, and alignment with the future.[Read → HERE]

Quote of the Month

 "Enthusiasm is common. Endurance is rare."

- Angela Duckworth 

Looking Ahead

End-of-Summer Reflection

As summer winds down and routines reset, we’re reminded that this business requires both discipline and patience. The last few years have tested every operator and investor, but they’ve also reinforced a simple truth: steady, thoughtful execution creates long-term success.

At CF Capital, we’re not in the business of chasing noise. We’re here to stay ready and continue to grow — so when the right opportunities come into view, we can move with confidence.

Thank you for being on this journey with us. We look forward to the months ahead and the opportunities they’ll bring to create lasting value together.

In Partnership,
Tyler & Bryan

Hello Friends and Investors,

As the sun begins to set on summer, we’ve been reflecting on a timeless truth in this business: the real wins come to those who are steady in uncertainty and prepared for what’s next.

At CF Capital, that remains our approach as we evaluate opportunities, monitor evolving market conditions, and prepare for strategic moves in the second half of the year.

Market Overview

Market Pulse: Stability Beneath the Surface

The multifamily market continues to exhibit signs of regional strength amid national moderation:

Midwest markets are outperforming national rent trends, posting 3–4% YoY rent growth ~1.1% nationally (Yardi Matrix, July 2025).
Occupancies remain healthy, ranging between 93–95% across our core metros.
New construction has slowed dramatically, setting the stage for stronger absorption and pricing power into 2026.
Meanwhile, there’s ongoing discussion around Fed rate cuts, but investors should note: lenders are increasing spreads in some cases, meaning any near-term cuts may not materially lower borrowing costs. It's a reminder to underwrite to what is, not what we hope will be.

Event Recap: State of the Market Multifamily Roundtable

In partnership with CCIM Kentucky and Frost Brown Todd, CF Capital hosted a dynamic conversation last month exploring the real forces shaping CRE. We're excited to share with you the entire recording of the event.

View Video

Top takeaways:

• The “One Big Beautiful Bill Act” (OBBBA) is expected to have sweeping implications on how commercial real estate is financed in the years ahead. We discussed this in detail during the panel.
• Multifamily lending is stable—but changing. HUD and agency lenders remain a bright spot, but the panel discussed looming shifts like GSE privatization and the impact of regulatory policies.
• “Be too dumb to quit—and never run out of cash.” The best operators are relentless in the face of uncertainty and recognize the supreme importance of liquidity.

This was a powerful gathering of 75+ attendees consisting of lenders, operators, attorneys, and investors—and we’re committed to staying ahead of these shifting tides so you don’t have to. We’re very happy to share the full recording for folks who were unable to attend in person.

10 Most Landlord-Friendly States in 2025
CF Top10States-1
TurboTenant - Landlording in the wrong state can quickly turn into a nightmare. You could end up with hard-to-evict tenants, high property taxes, and rent control that makes it impossible to keep up with the market.

For these reasons, knowing the country’s most landlord-friendly states is a wise move. Owning property in a state where eviction laws, property taxes, and policies all work in your favor makes real estate investing a whole lot easier.

[Read → HERE]

The Geography of Multifamily’s Growth: Urban vs. Suburban (and Everything in Between)
Screenshot 2025-08-05 at 2.55.08 PM
Chandan Economics - The past decade has been a whirlwind for the multifamily sector — from the urban renaissance of the early 2010s to the workforce housing push of the late 2010s, and the post-pandemic reshuffling of geographic demand. The only constant has been its continuous evolution.

In this briefing, we explore how multifamily growth has unfolded across the urban spectrum over the past 10 years — and why the space between suburban and urban markets deserves a closer look.

[Read → HERE]

Blog

Multifamily Sponsor Due Diligence

Why Track Record & Discipline Matter More Than Ever

With loan maturities looming, elevated financing costs, economic unpredictability, and surging renter demand—investors are pushing sponsors....

[Read → HERE]

Strategic Outlook: Second Half of 2025

We continue to evaluate a robust pipeline of potential acquisitions. The market remains relatively stable, and while we’re active in making offers, we’re maintaining discipline—we are not stretching for deals that don’t pencil or drift toward negative leverage.

We’re optimistic that one or more high-quality investments will come to fruition in the back half of 2025—and as always, we’ll bring them to your attention as soon as the time is right.

You'll be among the first to hear about these opportunities as they take shape.

End-of-Summer Perspective

As kids head back to school and vacations wind down, we’re reminded that the multifamily game is measured in seasons, not weeks.

We continue to operate with a mindset of calm, long-term capital stewardship—focused not on reacting to noise, but on quietly building momentum.

We’re grateful to be on this journey with you, and we look forward to what lies ahead.

In Partnership,

Tyler & Bryan

Hello Friends and Investors,

Join Us Tomorrow (July 9) – for the Kentucky Chapter of CCIM's State of the Multifamily Market. We’re excited to be co-hosting the State of the Multifamily Market event at Frost Brown Todd, where we’ll break down where things stand nationally and here in the Midwest, what investors are demanding most, and how we’re positioning for the second half of 2025 and beyond.

CCIM State of the Multifamily Market

📍 Date: Wednesday, July 9
🕐 Time: 11:30a - 1:00p
🎟️ Reserve your spot + full details: [→LINK]

Whether you’re an active investor or simply looking to understand where multifamily fits in a volatile environment, this will be a high-value session you won’t want to miss. It will be recorded and circulated for those who cannot attend in person.

At the halfway point of 2025, we’re seeing the early signs of what we’ve been patiently positioning for: a market that’s slowly turning a corner. While volatility and uncertainty have been dominant themes for the past 24 months, long-term oriented investors are about to be rewarded—and we believe the second half of this year will offer some of the best opportunities we’ve seen in this cycle.

Market Overview

Trends We’re Watching Closely

At CF Capital, we’re staying aggressive in underwriting, touring, and offering—but remain committed to patience. The best opportunities often surface just after the market begins to turn.

Cap rates remain wide in secondary and tertiary markets, offering a yield advantage compared to compressed coastal pricing.
Rent growth is moderating nationally (~1% YoY), but the Midwest continues to outperform with 3–4% YoY growth in Class B suburban assets (Yardi Matrix, June 2025).
Interest rate pressure is easing slightly, and many analysts expect the first Fed rate cut as early as Q4 2025, offering relief for refinancing and acquisitions (Bloomberg, July 1).
Distress is real but selective—and not widespread. Smart investors are deploying with discipline, not desperation.
Industry Insights: IMN Southeast Multifamily Middle Markets Conference

In June, Bryan and I attended the IMN Southeast Multifamily Middle Markets Conference in Atlanta, where we connected with top operators, lenders, and equity partners.

Our biggest takeaway? There’s no magic bullet. The top-performing groups are winning by doing the fundamentals better than ever—execution, leadership, communication, and culture. We're proud to say that CF Capital continues to lean into these principles—and we’re also evolving through AI, tech, and systems that position us for what’s next.

Promissory Note: $1.65M Fully Subscribed

We’re pleased to share that the Cambridge Courtyard Promissory Note raise has been fully funded. Thank you to those who participated—your confidence and conviction make these opportunities possible.

We’re currently building a waiting list for similar opportunities, and may have 1–2 more promissory notes coming soon, along with a potential equity investment offering later this year. If you’d like to be among the first to preview these deals, reply directly to this email to join the priority list.

Final Word: Get Ready for the Next Wave

We believe the patience many of us have shown over the past few years is about to pay off. The noise is still loud—but so is the signal for disciplined operators and long-term capital.

If you’re looking to deploy in the right deal, at the right time, with the right partner—stay close. The next phase is coming, and we’re well-positioned to lead.

Thank you for your trust and partnership. Let’s finish the year strong, together.

Onward,
Tyler & Bryan
Managing Partners, CF Capital

Hello Friends and Investors,

It’s hard to believe we’re nearly at the halfway mark of 2025. The first five months of this year have provided clarity on several fronts: how the market is adjusting to elevated interest rates, how demand for multifamily housing is evolving, and where new opportunities are beginning to emerge. In short—the Midwest multifamily market remains resilient, but it’s a market that rewards discipline. We’re seeing both encouraging stability and some headwinds to navigate carefully as we look ahead to the second half of the year. Below is a snapshot of the key trends shaping our strategy moving forward.

Market Overview

Market Trends at Mid-Year

Occupancy & Rent Growth:
Midwest Class A/B suburban assets continue to outperform many U.S. markets in terms of occupancy and rent growth. As of May:

• Occupancy remains strong across Louisville, Indianapolis, Columbus, and Cincinnati at 93–95%, with suburban product seeing the most consistent demand.
• Rent growth is holding steady in the 4% YOY range, continuing to outpace the national average of ~1%.

Absorption:
Net absorption in the Midwest remains healthy and above national trends, driven by steady job growth and in-migration from more expensive markets. Suburban submarkets are absorbing new supply well, while some urban core areas are seeing slower lease-ups due to affordability gaps.

Supply & Construction:
New starts are slowing. Rising construction costs, volatile financing, and elevated interest rates have caused many developers to delay or cancel projects. We expect the supply pipeline to materially contract after late 2025, which will further strengthen fundamentals for existing assets heading into 2026–2027.

Capital Markets:
Financing remains expensive, but interest rates appear to have peaked. The market anticipates potential Fed rate cuts later this year, which could help improve debt terms by 2026. Cap rates in Midwest markets remain 5.25% to 6.25%, offering attractive relative yields.

How We’re Adjusting Our Strategy for H2 2025

Acquisitions:
We are taking a high-conviction, selective approach. We continue to prioritize off-market and value-driven opportunities where pricing reflects current realities—not 2021 expectations.

• We’re most focused on suburban Class B with value-add potential, where demand remains sticky, and new supply is limited.
• Replacement costs have risen so sharply that buying existing assets well below replacement cost remains compelling.

Operations:
Operational execution is more important than ever in this environment:

• We are laser-focused on driving NOI through improved leasing, renewals, expense control, and asset-level KPI tracking.
• Resident retention is a key focus, as some tenants are more cautious given broader economic uncertainty.

Capital Markets & Financing:
We are actively working on several refinancing initiatives to position properties for longer-term holds and enhanced cash flow while navigating to more favorable exit conditions.

Patience is key: We are not forced sellers. With stabilized assets at extended financing terms, we can time future exits to align with stronger capital markets.

Exits:
With cap rates still elevated and buyer demand selective, we are not pursuing near-term exits unless pricing achieves close to underwritten returns. The better path for most assets today is to optimize performance, refinance where advantageous, and target exit in a more favorable cycle (2026–2027+), when interest rates and transaction velocity are likely to improve.

CF Capital's Strategic Positioning

Here’s where we’re focused:

• Refinancing select assets to support longer-term holds while the market stabilizes.
• Targeting off-market and value-add opportunities below replacement cost.
• Enhancing property performance and investor reporting for greater transparency and trust.

We believe the next 12–18 months will offer some of the most compelling buying opportunities in years—for those ready to act. Our approach remains long-term, disciplined, and data-driven.

Active Opportunity

Coming Soon! We have an active high-yield lending deal secured by quality real estate coming soon. We'll be announcing more details to the investor base soon.  Stay tuned!

CF In the News

MULTI-HOUSING NEWS

Multifamily Investors. Buying Time?

At the beginning of 2025, multifamily investment was set up for another strong year, with investors more interested in assets across a wider range of markets than than at any point since the rate hikes began in 2022. Check out where CF Capital's Tyler Chesser opined on the market. Read More

MULTIFAMILY DIVE

How Investors are Closing Deals Despite Treasury Volatility.

In the three years since the Federal Reserve began hiking interest rates, apartment buyers and sellers have grown accustomed to dealing with volatility when underwriting deals. Tyler also contributed to this article - check it out. Read More

Featured Articles

REALPAGE - Midwest Region Leads U.S. in Rent Growth in April

The Midwest has led the nation for rent growth in recent years, straying from the region’s “slow and steady” reputation. As of April 2025, the Midwest reported the highest annual rent growth of any region nationwide at 3.6%. That was notably ahead of the U.S. average of 1%. Read More

CRE DAILY - CRE Recovery Holds, but Maturity Walls and Distress Loom

CRE transaction volumes have continued rebounding in 2025, but distress levels and loan maturities suggest turbulence. Read More

CF Capital Updates

A Personal Note from the Team

It’s been a busy spring not only for the markets but for our team personally—and we wanted to share a few happy updates from the CF Capital family:

• The Chesser Family welcomed their third child—a healthy baby boy—in May! Mom, baby, and family are all doing great.
• Bryan’s middle son graduated kindergarten and is ready for first grade in the fall.
• Rachael’s youngest also graduated kindergarten, and her oldest finished 5th grade and is headed to middle school.
• Leslie’s son wrapped up his 3rd year at Tulane University and is already planning his senior year.
• Dan’s sister graduated from undergrad at the University of San Diego—an exciting milestone for their family.

We’re grateful to work alongside such a talented and close-knit team, and it’s special to celebrate these personal milestones alongside our professional growth.

Quote of the Month

"Soon is not as good as now."- Seth Godin

Looking Ahead

As we move into the back half of 2025, we remain confident in the long-term fundamentals of the Midwest multifamily sector. Demand is steady, new supply is slowing, and while the capital markets remain choppy, signs point to a more favorable environment emerging over the next 12–24 months.

At CF Capital, we will continue to lean on discipline, operational excellence, and strategic patience—a recipe we believe will generate strong long-term results for our investors.

As always, we appreciate your trust and partnership. If you’d like to discuss the market or any of our current strategies in more detail, we’d welcome the conversation.

In Partnership, Tyler & Bryan