Milestone Partners was surveyed in the latest Crittenden Multifamily Report (Vol 29, No. 3), which cited the firm’s forward looking view on multifamily as follows:
Milestone Partners remains cautiously optimistic regarding multifamily fundamentals, as it continues to seek new partnerships. The company will be conservative with multifamily due to concern over forward-looking cap rates and interest rates, though it does have a recently forged programmatic partnership focused on multifamily acquisitions as well as a five portfolio transaction in the works. The value-add renovation space is still crowded, so Milestone’s interest in alternate revenue strategies, such as corporate housing, micro-unit conversions or rent-control plays, continues to grow. The firm continues to expand its portfolio and reputation as the demand for co-GP capital increases. Realized and pro forma deal-level IRR’s are all north of 20% for current investments. Milestone will still consider development, but is cautious of the current construction pipeline.
Milestone CEO, William Wells, notes that, “Milestone is actually expecting to close the year with its first few investments into traditional multifamily product. We’d like to expand our multifamily holdings because multifamily fundamentals remain strong, but concerns over the impact of exogenous factors on forward valuations have made it difficult to find appropriately priced opportunities.”
