July 15, 2025 • 7 mins
In this episode, Sandy MacKay kicks things off with an introduction and a guest lineup preview. The discussion starts with Alexandra Katz, who delves into Canadian multifamily investments and the role of ESG metrics in shaping the market. The focus then shifts to immigration and its significant impact on the rental market. Sandy highlights the Faywell project by Banner Real Estate Group, exploring its investment principles and community impact. The episode's sponsor, Newmark, is introduced, spotlighting their refinancing of The Fairways. Chris Wyett shares insights on strategic refinancing, offering valuable perspectives for investors. Sandy concludes with closing remarks, summarizing the episode's key takeaways.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Have you ever considered how multi-residentialinvestments can act as a stable alternative in
(00:04):
the real estate market?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
At the 2025 Endowment & Foundation InvestmentForum, Alexandra Katz, managing partner and
head of institutional relationships atHazelview Investments, highlighted the growing
(00:25):
opportunities in Canadian multi-residentialinvestments.
According to Katz, these investments providestability over time and offer downside
protection due to their countercyclical natureand a diversified tenant base.
While other real estate sectors may be impactedby behavioral trends, the consistent need for
homes ensures stability in multi-residentialportfolios.
(00:48):
Institutional investors are finding that theycan achieve predictable cashflows from this
asset class, providing a reliable incomestream.
Katz also emphasized the significant exposureto environmental, social, and governance
metrics within multi-residential investments.
The social component is particularly important,as investing in multi-residential properties
(01:10):
means investing in communities that need morehomes.
"When you're thinking about somebody's home,it's not just about an investment, it's about
where people live," Katz explained.
Understanding the nuances between differentsub-markets across Canada is key to adding
value that resonates with residents.
The Canadian multi-residential market is poisedto benefit from favorable supply and demand
(01:33):
dynamics.
Immigration patterns have been a significantdriver, with Canada seeing a peak of 1.2
million people entering the country in 2023.
This surge has driven up demand for rentalunits.
Katz noted that while population growth isexpected to decline due to changes in Canadian
immigration policy, the market is likely tostabilize, giving it a chance to catch up with
(01:57):
the demand.
Furthermore, several factors are supportingstrong sector fundamentals.
Home ownership declined by 2.5 percent between2011 and 2021, indicating a growing demand for
rental units.
Demographic changes have also led to longeraverage rental periods, adding pressure to the
rental pool.
On the supply side, rising construction costs,which have increased by about 45 percent since
(02:21):
the coronavirus pandemic, present challenges.
In a softer economic environment, fewer peoplemay feel they have the flexibility to buy
homes, further driving rental demand.
Katz anticipates that supply will decline from2027 due to slower construction starts, setting
the stage for strong risk-adjusted returns inthe multi-residential sector.
(02:43):
This presents an opportune time for investorsto delve into multi-residential investments,
capitalizing on these dynamics for potentiallylucrative returns.
Banner Real Estate Group has recently brokenground on their multifamily development site,
The Faywell, located at 220 West Liberty Drivein Wheaton, Illinois, directly adjacent to the
(03:04):
Metra Union Pacific West station with serviceto downtown Chicago.
This marks a significant milestone for both thefirm and the City of Wheaton.
The Faywell is set to become a 334-unit Class Amultifamily community that combines
high-quality residential living with thoughtfuldesign and amenities, integrating seamlessly
(03:24):
into the surrounding community.
This project, nearly five years in the making,will feature a resort-style pool, a
state-of-the-art fitness center, a co-workinglounge, ample bike parking, and direct access
to the DuPage County Prairie Path, one of theregion’s popular recreational trails.
(03:44):
The ground-floor retail space will host EggHarbor Café as the anchor tenant, a beloved
local establishment returning to its originalWheaton roots.
Bob Flannery, Chief Executive Officer of BannerReal Estate Group, expressed excitement about
bringing The Faywell to life as a best-in-classresidential option.
He highlighted the location’s vibrancy, charm,walkability, and the convenience of the Metra
(04:09):
commuter station.
Flannery emphasized that this developmentrepresents not only a significant investment in
Wheaton’s continued growth but also a long-termcommitment to improving the quality of life in
the community and contributing to the vibrancyof downtown Wheaton.
Key partners in this development includeinstitutional investor PNC Bank, JLL, W.A.
(04:31):
Randolph, Incorporated as the GeneralContractor, BKV Group for architecture, and
CAGE Engineering, Incorporated.
Banner Real Estate Group was founded in 1989and is based in Chicago.
The group, which is family-owned andindependent, focuses on acquiring, managing,
and developing multifamily properties,self-storage properties, and industrial
(04:53):
properties across the United States.
Since its inception, Banner has maintained afocus on capital preservation, value creation,
and wealth generation for high-net-worthinvestors, family offices, and institutional
partners.
This latest development of The Faywell is atestament to their commitment to these
(05:14):
principles and their dedication to enhancingcommunity living through thoughtful and
strategic real estate investments.
In a noteworthy development from the BostonReal Estate Times, Newmark has secured a
significant refinancing package totaling onehundred forty-three point one million dollars
for The Fairways, a large-scale multifamilyproperty located at one Forest Ridge Road in
(05:38):
Derry, New Hampshire.
This financing initiative marks a strategicmove for the property's owner, Makor Capital,
which has a notable presence in the NewHampshire and Massachusetts multifamily
markets.
The transaction was arranged by Newmark ViceChairman Ed Belz and provided by Fannie Mae.
Belz emphasized that this deal enables MakorCapital to unlock built-up equity in the
(06:02):
property while maintaining ample liquidity forongoing and future initiatives.
According to Belz, "Newmark and Fannie Mae wereable to deliver an extraordinary execution,
allowing Makor to distribute a portion of thebuilt-up equity at the property while also
retaining significant liquidity to execute itsbusiness plan and maximize the long-term
potential at Fairways."
(06:24):
This refinancing package reflects along-standing professional relationship between
Newmark and Makor Capital’s founder, ChrisWyett, which has spanned over two decades.
The package features a ten-year loan term withfull-term interest-only payments, a
thirty-five-year amortization schedule, and anearly rate-lock, capitalizing on a recent
(06:45):
decline in interest rates.
Makor was able to lock in the rate within threeweeks of applying.
Chris Wyett, who acquired The Fairways in latetwo thousand sixteen, described this
refinancing as a strategic move.
"Fairways has experienced a substantialincrease in value since we acquired the asset
in late two thousand sixteen," said Wyett.
(07:06):
"By refinancing, we take some ‘chips off thetable’ while we continue to own and further
improve the property over the long term.
Makor generally has a long-term perspectiveprovided we continue to see value potential and
stable yields."
Constructed in nineteen eighty-four, TheFairways spans one hundred eight acres and
includes a mix of two-, three-, and four-storyresidential buildings.
(07:28):
Situated along Route twenty-eight,approximately three miles from Interstate
ninety-three and less than ten miles fromManchester Airport, the property offers a
variety of amenities and has become a key assetin Makor’s growing regional portfolio.
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
(07:48):
See you on the next one.
Have you ever considered how multi-residentialinvestments can act as a stable alternative in
(00:04):
the real estate market?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
At the 2025 Endowment & Foundation InvestmentForum, Alexandra Katz, managing partner and
head of institutional relationships atHazelview Investments, highlighted the growing
(00:25):
opportunities in Canadian multi-residentialinvestments.
According to Katz, these investments providestability over time and offer downside
protection due to their countercyclical natureand a diversified tenant base.
While other real estate sectors may be impactedby behavioral trends, the consistent need for
homes ensures stability in multi-residentialportfolios.
(00:48):
Institutional investors are finding that theycan achieve predictable cashflows from this
asset class, providing a reliable incomestream.
Katz also emphasized the significant exposureto environmental, social, and governance
metrics within multi-residential investments.
The social component is particularly important,as investing in multi-residential properties
(01:10):
means investing in communities that need morehomes.
"When you're thinking about somebody's home,it's not just about an investment, it's about
where people live," Katz explained.
Understanding the nuances between differentsub-markets across Canada is key to adding
value that resonates with residents.
The Canadian multi-residential market is poisedto benefit from favorable supply and demand
(01:33):
dynamics.
Immigration patterns have been a significantdriver, with Canada seeing a peak of 1.2
million people entering the country in 2023.
This surge has driven up demand for rentalunits.
Katz noted that while population growth isexpected to decline due to changes in Canadian
immigration policy, the market is likely tostabilize, giving it a chance to catch up with
(01:57):
the demand.
Furthermore, several factors are supportingstrong sector fundamentals.
Home ownership declined by 2.5 percent between2011 and 2021, indicating a growing demand for
rental units.
Demographic changes have also led to longeraverage rental periods, adding pressure to the
rental pool.
On the supply side, rising construction costs,which have increased by about 45 percent since
(02:21):
the coronavirus pandemic, present challenges.
In a softer economic environment, fewer peoplemay feel they have the flexibility to buy
homes, further driving rental demand.
Katz anticipates that supply will decline from2027 due to slower construction starts, setting
the stage for strong risk-adjusted returns inthe multi-residential sector.
(02:43):
This presents an opportune time for investorsto delve into multi-residential investments,
capitalizing on these dynamics for potentiallylucrative returns.
Banner Real Estate Group has recently brokenground on their multifamily development site,
The Faywell, located at 220 West Liberty Drivein Wheaton, Illinois, directly adjacent to the
(03:04):
Metra Union Pacific West station with serviceto downtown Chicago.
This marks a significant milestone for both thefirm and the City of Wheaton.
The Faywell is set to become a 334-unit Class Amultifamily community that combines
high-quality residential living with thoughtfuldesign and amenities, integrating seamlessly
(03:24):
into the surrounding community.
This project, nearly five years in the making,will feature a resort-style pool, a
state-of-the-art fitness center, a co-workinglounge, ample bike parking, and direct access
to the DuPage County Prairie Path, one of theregion’s popular recreational trails.
(03:44):
The ground-floor retail space will host EggHarbor Café as the anchor tenant, a beloved
local establishment returning to its originalWheaton roots.
Bob Flannery, Chief Executive Officer of BannerReal Estate Group, expressed excitement about
bringing The Faywell to life as a best-in-classresidential option.
He highlighted the location’s vibrancy, charm,walkability, and the convenience of the Metra
(04:09):
commuter station.
Flannery emphasized that this developmentrepresents not only a significant investment in
Wheaton’s continued growth but also a long-termcommitment to improving the quality of life in
the community and contributing to the vibrancyof downtown Wheaton.
Key partners in this development includeinstitutional investor PNC Bank, JLL, W.A.
(04:31):
Randolph, Incorporated as the GeneralContractor, BKV Group for architecture, and
CAGE Engineering, Incorporated.
Banner Real Estate Group was founded in 1989and is based in Chicago.
The group, which is family-owned andindependent, focuses on acquiring, managing,
and developing multifamily properties,self-storage properties, and industrial
(04:53):
properties across the United States.
Since its inception, Banner has maintained afocus on capital preservation, value creation,
and wealth generation for high-net-worthinvestors, family offices, and institutional
partners.
This latest development of The Faywell is atestament to their commitment to these
(05:14):
principles and their dedication to enhancingcommunity living through thoughtful and
strategic real estate investments.
In a noteworthy development from the BostonReal Estate Times, Newmark has secured a
significant refinancing package totaling onehundred forty-three point one million dollars
for The Fairways, a large-scale multifamilyproperty located at one Forest Ridge Road in
(05:38):
Derry, New Hampshire.
This financing initiative marks a strategicmove for the property's owner, Makor Capital,
which has a notable presence in the NewHampshire and Massachusetts multifamily
markets.
The transaction was arranged by Newmark ViceChairman Ed Belz and provided by Fannie Mae.
Belz emphasized that this deal enables MakorCapital to unlock built-up equity in the
(06:02):
property while maintaining ample liquidity forongoing and future initiatives.
According to Belz, "Newmark and Fannie Mae wereable to deliver an extraordinary execution,
allowing Makor to distribute a portion of thebuilt-up equity at the property while also
retaining significant liquidity to execute itsbusiness plan and maximize the long-term
potential at Fairways."
(06:24):
This refinancing package reflects along-standing professional relationship between
Newmark and Makor Capital’s founder, ChrisWyett, which has spanned over two decades.
The package features a ten-year loan term withfull-term interest-only payments, a
thirty-five-year amortization schedule, and anearly rate-lock, capitalizing on a recent
(06:45):
decline in interest rates.
Makor was able to lock in the rate within threeweeks of applying.
Chris Wyett, who acquired The Fairways in latetwo thousand sixteen, described this
refinancing as a strategic move.
"Fairways has experienced a substantialincrease in value since we acquired the asset
in late two thousand sixteen," said Wyett.
(07:06):
"By refinancing, we take some ‘chips off thetable’ while we continue to own and further
improve the property over the long term.
Makor generally has a long-term perspectiveprovided we continue to see value potential and
stable yields."
Constructed in nineteen eighty-four, TheFairways spans one hundred eight acres and
includes a mix of two-, three-, and four-storyresidential buildings.
(07:28):
Situated along Route twenty-eight,approximately three miles from Interstate
ninety-three and less than ten miles fromManchester Airport, the property offers a
variety of amenities and has become a key assetin Makor’s growing regional portfolio.
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
(07:48):
See you on the next one.
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