July 4, 2025 • 4 mins
In this episode, Sandy MacKay delves into the current challenges facing the multifamily market, exploring investor opportunities amidst a declining rental market. The discussion includes a sponsorship segment from Institutional Property Advisors, providing insights into their latest initiatives. Sandy highlights the details of a significant Connecticut portfolio sale, examining its implications for the market. The episode also covers Marcus and Millichap's impact on commercial real estate, shedding light on their contributions to the industry. Sandy wraps up with closing reflections, offering insights into the opportunities that still exist within the multifamily sector despite current challenges.
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Episode Transcript
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(00:00):
What happens when a trade war with the UnitedStates collides with an influx of new apartment
buildings in Canada?
How does this impact the multifamily realestate market?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
(00:21):
The Canadian multifamily market is currentlyfacing some significant challenges, according
to a report from Oxford Economics.
The ongoing trade war with the United States,coupled with a high number of new apartments
being constructed, is putting pressure on thehousing market across the country.
This has led to a decrease in asking rents,particularly in major cities like Toronto.
(00:43):
Oxford Economics highlights that the Torontomarket is experiencing a noticeable decline in
multifamily rental rates.
This trend is reflective of broader marketdynamics influenced by both domestic and
international factors.
It's a reminder of the interconnected nature ofreal estate markets and how geopolitical events
can ripple through to local economies.
While this might seem like a challenging timefor property owners and investors, it is
(01:07):
important to remember that the market'scyclical nature often presents opportunities as
well.
Lower rental rates could potentially attract awider pool of tenants, and for investors, this
could be a time to consider strategicacquisitions at more favorable prices.
As we navigate these complex market conditions,it's crucial to stay informed and adaptable.
(01:27):
The multifamily sector remains a cornerstone ofreal estate investment, and with careful
planning and strategic thinking, there arestill plenty of opportunities to be found.
In other news, Institutional Property Advisors,a division of Marcus and Millichap, recently
announced the sale of a significant multifamilyportfolio in Connecticut.
The Central and Southeast ConnecticutMultifamily Portfolio was sold for one hundred
(01:52):
twenty-one million dollars.
This four-property, six hundredninety-three-unit portfolio spans New Haven,
Hartford, and New London counties.
According to Victor Nolletti, IPA's executivemanaging director of investments, this suburban
portfolio is located in one of the mostresilient segments of Connecticut's multifamily
market.
(02:12):
Class B to B+ assets in this region are knownfor their high occupancy, steady rent growth,
and strong cash flow.
The transaction was brokered by IPA’s VictorNolletti, Eric Pentore, and Wes Klockner, who
represented the seller, Sun Equity Partners,and procured the buyer, FPA Multifamily LLC.
(02:34):
The properties in this portfolio arestrategically located near major employers such
as General Dynamics Electric Boat, ESPN,Pfizer, Bristol Hospital, and Lawrence +
Memorial Hospital.
The unit mix includes studios, one-bedroom, andtwo-bedroom apartments, offering a range of
options for tenants.
The assets included in the sale are NewCambridge, a two hundred eight-unit property
(02:59):
built in 1969 in Bristol; Silvertree, a onehundred eighty-unit property constructed in
1976 in Wallingford; Peppertree, a two hundredfive-unit asset built in 1975 in Groton; and
Huntington Ridge, a one hundred-unit propertyconstructed in 2004 in Norwich.
(03:19):
This sale highlights the ongoing strength andattractiveness of multifamily investments,
particularly in regions with strong economicanchors and stable rental markets.
Marcus and Millichap, the parent company ofInstitutional Property Advisors, is a leading
national brokerage firm specializing incommercial real estate investment sales,
(03:39):
financing, research, and advisory services.
In 2023, Marcus and Millichap closed over seventhousand transactions with a sales volume of
approximately forty-three point six billiondollars.
Their expertise and commitment to providingtailored solutions for their clients make them
a formidable player in the commercial realestate landscape.
(04:03):
As we reflect on these developments, it's clearthat the multifamily sector continues to offer
robust opportunities for investors.
Strategic acquisitions like this one underscorethe potential for growth and profitability,
even amid broader market challenges.
As always, staying informed and being preparedto seize opportunities is key to success in
(04:24):
real estate investment.
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
See you on the next one.
What happens when a trade war with the UnitedStates collides with an influx of new apartment
buildings in Canada?
How does this impact the multifamily realestate market?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
(00:21):
The Canadian multifamily market is currentlyfacing some significant challenges, according
to a report from Oxford Economics.
The ongoing trade war with the United States,coupled with a high number of new apartments
being constructed, is putting pressure on thehousing market across the country.
This has led to a decrease in asking rents,particularly in major cities like Toronto.
(00:43):
Oxford Economics highlights that the Torontomarket is experiencing a noticeable decline in
multifamily rental rates.
This trend is reflective of broader marketdynamics influenced by both domestic and
international factors.
It's a reminder of the interconnected nature ofreal estate markets and how geopolitical events
can ripple through to local economies.
While this might seem like a challenging timefor property owners and investors, it is
(01:07):
important to remember that the market'scyclical nature often presents opportunities as
well.
Lower rental rates could potentially attract awider pool of tenants, and for investors, this
could be a time to consider strategicacquisitions at more favorable prices.
As we navigate these complex market conditions,it's crucial to stay informed and adaptable.
(01:27):
The multifamily sector remains a cornerstone ofreal estate investment, and with careful
planning and strategic thinking, there arestill plenty of opportunities to be found.
In other news, Institutional Property Advisors,a division of Marcus and Millichap, recently
announced the sale of a significant multifamilyportfolio in Connecticut.
The Central and Southeast ConnecticutMultifamily Portfolio was sold for one hundred
(01:52):
twenty-one million dollars.
This four-property, six hundredninety-three-unit portfolio spans New Haven,
Hartford, and New London counties.
According to Victor Nolletti, IPA's executivemanaging director of investments, this suburban
portfolio is located in one of the mostresilient segments of Connecticut's multifamily
market.
(02:12):
Class B to B+ assets in this region are knownfor their high occupancy, steady rent growth,
and strong cash flow.
The transaction was brokered by IPA’s VictorNolletti, Eric Pentore, and Wes Klockner, who
represented the seller, Sun Equity Partners,and procured the buyer, FPA Multifamily LLC.
(02:34):
The properties in this portfolio arestrategically located near major employers such
as General Dynamics Electric Boat, ESPN,Pfizer, Bristol Hospital, and Lawrence +
Memorial Hospital.
The unit mix includes studios, one-bedroom, andtwo-bedroom apartments, offering a range of
options for tenants.
The assets included in the sale are NewCambridge, a two hundred eight-unit property
(02:59):
built in 1969 in Bristol; Silvertree, a onehundred eighty-unit property constructed in
1976 in Wallingford; Peppertree, a two hundredfive-unit asset built in 1975 in Groton; and
Huntington Ridge, a one hundred-unit propertyconstructed in 2004 in Norwich.
(03:19):
This sale highlights the ongoing strength andattractiveness of multifamily investments,
particularly in regions with strong economicanchors and stable rental markets.
Marcus and Millichap, the parent company ofInstitutional Property Advisors, is a leading
national brokerage firm specializing incommercial real estate investment sales,
(03:39):
financing, research, and advisory services.
In 2023, Marcus and Millichap closed over seventhousand transactions with a sales volume of
approximately forty-three point six billiondollars.
Their expertise and commitment to providingtailored solutions for their clients make them
a formidable player in the commercial realestate landscape.
(04:03):
As we reflect on these developments, it's clearthat the multifamily sector continues to offer
robust opportunities for investors.
Strategic acquisitions like this one underscorethe potential for growth and profitability,
even amid broader market challenges.
As always, staying informed and being preparedto seize opportunities is key to success in
(04:24):
real estate investment.
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
See you on the next one.
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