Hilltop Residential, a Houston-based multifamily investment manager, closed its largest fundraise to date, raising $288M in commitments and planning to acquire up to $2B in assets. 

Hilltop Growth Fund VI will be used to acquire properties at “compelling bases” created by today’s capital markets dislocation, the company announced Tuesday. 

“Our strategy remains consistent: Acquire high-quality assets in growth markets where we can create value through operational improvements, capital enhancements, and disciplined asset management,” Hilltop Residential Managing Partner Greg Finch said in a news release.

Hilltop expects the fund to acquire about $1.5B to $2B in gross asset value and to fully deploy the fund within two years. Hilltop has already acquired nine assets with the fund and identified additional opportunities, according to the press release.

Finch, former president and co-founder of Venterra Realty, launched Hilltop Residential in 2017 with his sights set on multifamily value-add opportunities in Texas and other Southern states. The investment and development firm now manages a $3B portfolio of 13,000 units, including 12 properties in the Houston area.

Hilltop has invested in 15 Sun Belt markets, including Atlanta, Nashville, Charlotte and Orlando, Florida. In January, the firm acquired a 292-unit community in the Houston Heights, the Houston Business Journal reported.

Hilltop also acquired a 308-unit community in St. Petersburg, Florida, in November, according to the Tampa Bay Business Journal.

The investor base for Hilltop Growth Fund VI includes endowments and foundations, financial institutions, insurance companies and family offices. 

“Closing our largest fund to date in one of the most challenging capital formation environments we’ve seen reflects the trust our partners have in our platform and our ability to capitalize on today’s multifamily opportunity set,” Hilltop Residential Managing Partner David Wylie said in the release. 

A Blackstone affiliate is preparing to close on an $845.2M refinancing deal for a nearly 5,000-unit multifamily portfolio.

Cortland University City in Charlotte

The investment giant’s Blackstone Real Estate Income Trust lined up the two-year floating-rate loan with the New York branch of Deutsche Bank AG, Societe Generale Financial Corp., Bank of Montreal and Nomura Corporate Funding Americas LLC, according to a presale report compiled by Fitch Ratings. Fitch expects the loan to close next month. 

BREIT is coming off a rebound year in 2025, reversing two years’ worth of weak returns with $7.2B in inflows and improved performance.

Proceeds will be used to refinance $924.5M of existing debt and pay $14.8M in closing costs. As part of the refinancing, BREIT is contributing roughly $94.1M in new equity to close the gap between the new loan and the debt being paid off.

BREIT acquired 98% of the 12-property portfolio in 2021 from Cortland Sponsors LLC at a reported cost basis of more than $1.2B. 

Blackstone did not immediately respond to Bisnow’s request for comment. 

Cortland retained the other 2% ownership and manages nine of the properties. The remaining three properties are managed by Preferred Apartment Advisors LLC.

The 4,922-unit portfolio includes: 

• the 664-unit Cortland Park 83 built in 1989 in Roswell, Georgia; 
• the 608-unit Cortland Bowery constructed in 1989 in Tampa, Florida; 
• the 510-unit Cortland Watermark built in 1998 in Marietta, Georgia; 
• the 440-unit Cortland Gateway Park constructed in 2002 in Denver; 
• the 426-unit Cortland Southpark Terraces constructed in 2009 in Austin; 
• the 384-unit Cortland Mountain Vista completed in 2009 in Mesa, Arizona; 
• the 376-unit Cortland at Fredericksburg built in 2010 in San Antonio; 
• the 372-unit Cortland University City completed in 2009 in Charlotte, North Carolina; 
• the 323-unit Cortland East Cobb completed in 1991 in Marietta, Georgia; 
• the 284-unit Cortland Falls River built in 2001 in Raleigh, North Carolina;
• the 271-unit Cortland Whitehall completed in 2018 in Charlotte;
• and the 264-unit Cortland West Boynton constructed in 2001 in Boynton Beach, Florida.

The properties are all market-rate apartments with no major concentrations of student, senior or military housing, according to the report. 

As of January, the portfolio units have a weighted average occupancy of nearly 92% and an average monthly rent of $1,728. Occupancy declined from 94% in 2022, reflecting broader softness across the Sun Belt apartment markets as new supply increases competition.

“The properties are generally well located in markets that have above average median income and population growth with nearby demand drivers,” Fitch’s presale report says.

An appraisal of each property conducted by Newmark Valuation & Advisory gave the portfolio an aggregate as-is value of more than $1.14B. Based on that appraisal, the loan-to-value ratio for the financing is 74%.

Since acquiring ownership, BREIT has invested more than $50M in capital improvements. Fitch estimated the portfolio’s net cash flow at $56.2M. 

While the construction pipeline in Charlotte has encountered some hurdles, with vacancy remaining high and deals slowing, there’s still a positive outlook for the multifamily and build-to-rent markets. 

A growing population, a robust job market and increased demand for rentals have investors gaining more confidence in Charlotte’s strong fundamentals.

NFP, an insurance and advisory brokerage that provides specialized risk management to construction companies in Charlotte, is also noticing this shift.

“New construction starts have dropped significantly as developers are cautious amid high interest rates and inflationary pressures,” NFP Senior Adviser Peet Poillon said. “Despite this, Charlotte’s construction pipeline remains one of the largest nationally, particularly in multifamily and build-to-rent sectors.”

Poillon moderated a panel discussing how to make projects happen in today’s construction market at Bisnow’s Charlotte Construction and Development Conference on Nov. 4. 

Bisnow spoke with Poillon about the state of construction in Charlotte, his role at NFP and how the firm is helping advise construction clients.  

Bisnow: How would you describe the current state of the construction market in Charlotte?

Poillon: The current state of the construction market in Charlotte is characterized by a slowdown from the historic expansion highs of 2023 and 2024. Apartment completions peaked in 2024 with more than 16,700 units delivered, but 2025 is expected to see about a 30% decline in completions with approximately 12,000 units delivered.

While the market is currently in a “breather” phase after rapid growth, it’s expected to pick up as interest rates stabilize. The market is also absorbing these new units strongly, with absorption reaching record highs in 2024.

However, office vacancy rates are still elevated compared to national averages, and operating costs like taxes, insurance and maintenance continue to rise, squeezing operating income for property owners. The industrial and commercial construction sectors are experiencing a similar cautious slowdown, with developers focusing on completing ongoing projects and postponing new starts until demand rebalances. Labor shortages and material cost inflation remain key challenges.

Bisnow: Can you tell us about your role at NFP?

Poillon: My role involves advising construction companies on managing their insurance portfolios, mitigating risks related to labor, materials and project delays, and designing comprehensive coverage programs that fit the unique needs of builders and developers. NFP leverages its market expertise and broad carrier relationships to help firms maintain financial stability and protect against unforeseen claims.

Bisnow: What’s NFP’s place in the market, and how are you advising construction companies in the Charlotte area? 

Poillon: NFP has established itself as a trusted adviser and risk management partner for local reconstruction and development firms. We support clients by offering innovative insurance solutions, safety consulting and strategic advice on navigating the evolving construction marketplace, including adapting to regulatory changes, labor shortages and cost fluctuations. 

For construction clients, NFP provides tailored approaches to manage exposures related to workforce challenges, supply chain disruptions and project financing risks.

Bisnow: What were some of the hottest topics of conversation at Bisnow’s Charlotte event? 

Poillon: The current cautious but optimistic outlook for construction in Charlotte, impacts of rising interest rates on project financing, workforce challenges, sustainability and green building trends, and the future of urban development, including residential and commercial shifts postpandemic. 

We also discussed how developers are being strategic in timing groundbreaking and focusing on projects with strong preleasing or tenant commitments.

Bisnow: What were some of the key takeaways from the event? 

Poillon: Labor shortages remain a critical concern impacting construction schedules and costs, and developers and contractors must be agile in managing the supply chain and inflationary pressures. There’s a strategic focus on build-to-rent and multifamily housing due to strong local demand driven by population growth. Also, risk management and insurance advisory services are becoming more pivotal in navigating uncertainties.

While Charlotte’s construction market is moderating from recent highs, it remains active with strong underlying demand. NFP plays a crucial role in advising construction companies to effectively manage risk and adapt to market complexities, and Bisnow events provide valuable insights and networking to navigate these dynamics.

This article was produced in collaboration between Studio B and NFP. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.

Despite steady rent growth, a deep pool of educated renters and one of the smallest construction pipelines in the country, Chicago’s multifamily market is being held back by one thing.

Institutional capital needs to catch up.

Local and private investors are keeping deals moving, but once institutional money fully recognizes the opportunity to buy assets at below replacement cost in a growing market, Chicago multifamily will take off, Lument Managing Director Todd Stofflet told Bisnow.

“The continued strength in Chicago is starting to wake the herd up, and they’re starting to ask the questions, trying to develop investment theses on Chicago and some of the other Midwestern markets,” Stofflet said. “It takes time and it takes transactions.”

Chicago has one of the smallest multifamily construction pipelines in the country, according to a report from real estate investment sales company Lument shared exclusively with Bisnow.

Units in the pipeline make up less than 1% of Chicago’s total multifamily inventory, a rate only met by Houston and San Francisco. 

There are probably about a dozen sites that are shovel-ready in the city that aren’t getting built because developers aren’t finding equity for them, Stofflet said. Equity challenges make it difficult to project exactly how many units will deliver in the city and when. 

Many of the city’s traditional major sponsors, like JPMorgan Chase and Ares, have pulled back from the market, so the difficulty for investors is finding a source of equity excited about developing in the city and comfortable with returns on its investment, Stofflet said. Many of the institutional investors that were on the sidelines are heading back to growth markets like Austin, Charlotte and Nashville, he said.

“I look at Chicago, and I see less than 1% in the pipeline, 7% year-over-year rent growth in downtown,” Stofflet said. “At some point, you just have to focus back on yield and where I’m going to make more money, and that is the Midwest right now.”

Chicago started off the year with strong multifamily sales. The city recorded nearly $1B in multifamily transactions in the first quarter, one of its strongest quarterly performances on record, according to the report. 

But yearly sales won’t come near a record — total year-end multifamily volume in the Chicago area for 2025 will likely be close to the transaction mark in both 2023 and 2024, which was about $3.9B, Stofflet said. 

That’s a far cry from the nearly $5.9B of multifamily sales in the Chicago area in 2022. Of the 12,400 units on the market in the city, 4,000 have closed or are under contract as buyers and sellers feel out pricing, Stofflet said.  

As more product hits the market, it is starting to draw a wider range of investors back to Chicago, Stofflet said. Groups that have wanted to sell for a while are starting to test the waters to see what today’s market will bear.

Downtown Chicago did see some return of institutional and private equity firms — they accounted for more than half of the dollar volume and nearly a third of transactions, according to the report.

“You’re starting to see institutional groups back on your bid lists in Chicagoland, but for the most part, the groups that are winning are private capital just because they have a longer-term perspective,” Stofflet said. 

Seeking lower rent is renters’ top reason for leaving their units, but Stofflet said that shouldn’t be a big concern for landlords. Chicago landlords are comfortable continuing to push rents because there isn’t a significant amount of new inventory coming online, which means landlords don’t have to compete over concessions. 

Some renters are staying in the rental pool longer and coupling together later, and other renters are leaving Chicago entirely because they can’t afford to live in the city, Stofflet said. 

“For every person leaving Chicago, we’re being replaced with one that is five years younger and making $10K more,” he said. 

The percentage of Chicagoans between 25 and 34 years old with a bachelor’s degree or higher is nearly 11% above the national average, and the city’s demographics are shifting. Chicago’s major universities are bringing an influx of educated people to the city, Stofflet said.  

But still, some investors remain skeptical of Chicago’s reputation because they are inundated with “clickbait” that the city is filled with crime, overly progressive and bankrupt, Stofflet said. Until those perceptions shift, institutional capital is likely to stay away, leaving deals to contrarian investors and family offices.

“The more that we can show a stable transaction environment in Chicago, the more that institutional money will feel comfortable investing back in Chicago,” Stofflet said.

CORRECTION, NOV. 11, 3:25 P.M. CT: This story has been updated to correct the misspelling of a company name.

Consumers’ credit scores are falling at their fastest rate since the Great Recession. The high cost of living, the return of student debt payments and the continued strain of high levels of credit card debt are all weighing heavily.

This increase in financial pressures translates into higher rent collection risk for multifamily owner-operators, said Charlie Shelly, vice president of sales at TheGuarantors. They need to find ways to mitigate these risks before they impact bad debt and net operating income. 

“Renter finances are under strain as debt grows faster than income,” Shelly said. “Delinquency rates on credit card, auto and personal loans are at or near the highest levels in more than 15 years. For owners and operators, these are early signals of a broader financial strain that could impact rent collection, even if rent is at the top of most renters’ credit stacks.”

In the second quarter, household debt stood at $18.4T, a 1% rise from Q1 and an increase of more than $4.2T since before the pandemic. Credit card debt of $1.2T is 5.9% higher than the previous year.

While borrowing is high, the delinquency rate for credit card debt was at its highest level since the financial crash in 2008.

“While rent is often the last payment to drop because people need a roof over their heads, they might only be one unexpected expense away from being unable to pay,” Shelly said. “Operators could find themselves with a growing amount of bad debt very quickly.”

On top of high levels of debt, credit card scores for many people are being driven down by the impact of student loan delinquencies. In May, the Department of Education resumed collection of federal student loan payments after having suspended referrals for collection since March 2020. 

As a result, as of April 2025, 10% of the population was 90 days or more overdue on student loan repayments in the previous six months, up from 7.4% in January. The 6.1 million consumers with student loan delinquencies saw their credit scores drop 69 points on average. 

Lower credit scores mean that people are less able to secure an apartment when operators use traditional screening methods. So while multifamily operators face an increasing risk that renters miss payments, they also have a shrinking pool of potential occupants, Shelly said. 

While some operators are tempted to lower their screening standards to increase occupancy, the danger is that they will attract renters who can’t afford the rent. 

The answer is to use risk mitigation tools that can boost the potential pool of quality renters while providing financial security against bad debt, Shelly said.

“At TheGuarantors, we’re looking beyond traditional credit scores at things like cash flow, verified payroll information and micropatterns that are often precursors to delinquency,” he said. “When operators can recognize these signs early, they can take proactive steps, like offering flexible payment options or risk-mitigating lease guarantees, before missed rent becomes bad debt and lost net operating income.”

Operators have been using TheGuarantors’ solutions to maintain economic occupancy, Shelly said. This includes areas that have been hardest hit by falling credit scores and high credit card delinquency rates, such as the Sun Belt.

Compounding the situation is that many Sun Belt areas are facing an oversupply of multifamily units. Cities such as Charlotte, Phoenix and Austin are predicted to grow their apartment stock by 7% to 8% in 2025, a boost that will increase competition for renters. 

The best way to navigate changing market conditions in any location is to work closely with partners such as TheGuarantors to minimize financial risks, Shelly said. In the context of oversupply, such partners allow owners and operators to increase their renter pool and approve more nontraditional renters such as freelancers, foreign citizens and recent graduates without increased financial risk.

“We’re seeing the most successful operators focus on stability and predictability,” he said. “They’re using risk management tools such as our lease guarantee product to build financial resilience into their portfolios, so if and when market conditions deteriorate, their rent roll and net operating income remain steady.”

This article was produced in collaboration between TheGuarantors and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.

As New York City led in 2024 CMBS conduit issuance for multifamily properties, so it is also leading an increase in multifamily conduit delinquencies, Kroll Bond Rating Agency reported.

The overall KBRA distress rate for apartment-backed conduit loans, which includes loans that are delinquent or current and in special servicing, was at 8.5% as of year-end 2024. NYC multifamily currently represents 43% of the multifamily distressed balance, with a distress rate of 14.4% at year-end. That’s more than double the city’s year-end 2023 distress rate of 7%.

The city’s multifamily distress rate was distinctly bifurcated by property age, according to KBRA. Pre-1974 NYC properties, which have a much higher proportion of rent-stabilized buildings, had a 25.1% distress rate by balance, compared to post-2000 properties with a distress rate of 2.9%. Manhattan had the highest distress rate of the five boroughs at 29.8%, followed by Queens (7.5%) and Brooklyn (3.2%).

Dwight Mortgage Trust, the affiliate REIT of Dwight Capital, has provided a $148-million construction loan for Sutphin II, a planned 524-unit luxury high-rise apartment building in the Jamaica neighborhood of Queens. Steven Hersko of the SHB Group arranged the loan on behalf of the developer, a partnership led by Moshe Braver.

The development consists of one 24-story building that will feature 366 market-rate units, 158 affordable units ranging from one to three bedrooms and 7,750 square feet of ground-floor retail. The community will offer premium amenities, including a parking garage, rooftop space, gym and yoga studio, business center, game room, theater, resident lounge, children’s playroom, pet spa and library.

Sutphin II is located adjacent to the Jamaica Long Island Rail Road train station and within walking distance of multiple subway lines. Upon completion, the project qualifies for a 35-year 421-a tax abatement and Brownfield Redevelopment Tax Credits.

PGIM Real Estate provided a $82 million floating rate loan on behalf of MetLife Investment Management and StreetLights Residential to refinance Mira at Midtown Union, a multifamily property located at 1301 Spring St NW in Atlanta.

The 26-story high-rise property has 355 units and 7,608 square feet of ground-floor retail. It includes a pool, resident lounge, sunset deck with fire pits and grills, pet spa/dog wash station, co-working spaces, and a multi-room fitness center. Mira at Midtown has studios with three bedrooms, that cost between $1,660 and $5,080 a month.

The community is part of a master-planned development called Midtown Union. It features a 612,000-square-foot office tower, the MIra, a 14-story, 230-key Kimpton hotel and 32,000 square feet of retail.

Canyon Partners Real Estate LLC, Ascendant Capital Partners and Bond Companies have formed a joint venture to support the development of Inspire Sonoran Desert, a 560-unit, Class A multifamily community in the North Valley submarket of Phoenix. Kennedy Wilson provided the JV with a senior construction loan of an undisclosed amount.

North Valley has experienced rapid growth in recent years, following TSMC’s announcement to build a multi-phase semiconductor plant in the submarket. Inspire Sonoran Desert will be one of the closest communities in the market to TSMC.

Inspire Sonoran Desert marks Canyon’s ninth investment in the Phoenix area over the past five years. Canyon has been an active provider of debt and equity in Arizona and continues to invest in real estate projects in primary and secondary markets across the U.S. For Kennedy Wilson, the construction loan is the latest in an active year for its debt investment platform.

RIPCO Real Estate closed the sale of 88-56 162nd St. for $18.8 million, marking the largest new construction multifamily building sale in the Special Downtown Jamaica District since its 2007 neighborhood-wide rezoning. Measuring 49,264 square feet, the seven-story building features 51 residences and a fully leased ground-floor community facility space.

RIPCO represented seller Jian Chen of 89th Ave Project LLC. The listing team included Stephen R. Preuss Sr., vice chairman of investment sales, and Kevin Schmitz, VP of investment sales, from RIPCO’s Queens office. The buyers, Steven Kordvani and Jonathan Loloi of Parkview Properties, assumed the seller’s fixed-rate mortgage, originated in 2021.

“Since its neighborhood-wide rezoning in 2007, Jamaica has become a destination for new development, with over 5,000 units delivered to the market,” said Schmitz. “The sale of 88-56 162nd St. for $18.8 million not only represents the largest new construction multifamily transaction in the district since that transformative change but also serves as a testament to how the area has continually evolved into one of the most important and popular economic and residential centers in Queens.”