Multifamily Insights: Energy, Rent Dynamics, Financing and more.
🏢 “Level 7 Multifamily Brief | Weekly Insight
Dear Friends,
Welcome to the most crucial multifamily insights of the week—designed to help you understand how today’s trends create tomorrow’s wealth. This edition covers energy infrastructure, Sunbelt rent dynamics, financing moves in Florida, and much more. Let’s dive in.
🔥 Viral Story: Energy Infrastructure Powers Up Multifamily
What’s happening? Properties are increasingly integrating solar panels, EV chargers, and energy-saving systems—not just for sustainability but to boost NOI and tenant satisfaction.
Why it matters: These trend-forward improvements drive tenant retention, justify premium rents, and position your deals for future-friendly financing options.
My Take:
“Energy infrastructure is no longer a ‘nice-to-have.’ It’s a strategic investment lever—reducing operating costs, improving resident experience, and providing possible tax savings.
Recommendation: Audit your capex pipeline and earmark 3–5% of project budgets for energy enhancements. Monetize this through elevated rent premiums, LTV increases, or green financing.
🏗 Market Moves: Sunbelt Rent Resurgence & Midwest Momentum
Sunbelt appreciation forecast:
Sun Belt population is expected to grow by approximately 11 million (+7.3%) over the next 10 years—about 22× faster than non-Sun Belt areas, which supports stronger rent growth and property value gains
Historically, institutional real estate returns in Sun Belt markets have outperformed non-Sun Belt markets by over 300 basis points across 3-, 5-, and 10-year periods
Class A: Anticipated 30–45% value growth over the next 10 years, driven by long-term demographic tailwinds and institutional demand—though more sensitive to supply cycles.
Class B: Forecasted 20–30% value appreciation, offering steadier returns with less competition and upside as development slows.
Midwest opportunities:
Workforce housing is gaining traction in mixed-use hubs—offering affordability at higher cap rates. Reduction in supply also suggest increase in rents in the Midwest.
Cities like Cleveland, Ohio, Fort Wayne, Indiana, Milwaukee, Wisconsin, Chicago, Illinois, and Detroit, Michigan have all seen above 5% average rent increase in 2025.
Expert Take:
“Sunbelt demand remains robust historically appreciating at much higher rates than non-Sunbelt markets —as supply tightens, cap rates will compress and increase valuation will occur. In contrast, Midwest offers increase cash-flow with the potential for more than 5% increase in rents year over year. Mixed-use and workforce zones offer yield upside and diversity.”
Strategy:
Sunbelt: Focus on Class A repositioning or refurb deals within high barriers and low supply.
Midwest: Target B–C assets in mixed-use/value-add deals, under average rental comps near growth corridors.
🏦 Deal Spotlight: Florida & Atlanta Highlights
Atlanta surge: Crescent Communities just opened 300 new units with CIBC-backed financing. Crescent Communities
South Florida headlines: Fort Lauderdale’s luxury Moderno tower with a rooftop pool refinanced—signaling continuing capital flow into coastal assets. Moderno Tower
Analysis:
Ready capital meets strong local dynamics. Financiers are aggressively backing new builds and refinancings, confident in underlying demand—even amid broader economic tuning.
Takeaway:
Capitalize on this by lining up new builds with institutional or green financing. Maintain fallback deals as refinancing buffers against rate volatility.
🎓 Educational Focus: QOZ, AI Forecasting, & Data‑Driven Investing
Qualified Opportunity Zones 2.0 are now permanent—with new investor incentives Opportunity Zones 2.0
Implement AI and AI forecasting platforms to help guide investment decisions across various markets. AI in Real Estate
Key Insights:
Combine tax-driven investing in QOZs with AI-informed underwriting. This dual approach can amplify after-tax returns and sharpen market entry timing.
Action Plan:
Build checklists that include:
QOZ eligibility & deferral timelines
AI-data credibility (model transparency, historical accuracy)
Competitive positioning—ensure both tax and market bets are aligned.
📞 Call to Action
If you’re ready to explore deals aligned with these insights, connect with us:
Schedule a discovery call: calendly.com/level7investors/intro-call
Connect With Me
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📍 Investing with our core values of Truth, Trust, Transparency, Teamwork, and Traction to help you gain financial freedom and build generational wealth.
We’re building something special at Del Val Investment Group and Level 7 Investors.
Looking forward to connecting,
Manny Del Val
Del Val Investment Group | Level 7 Investors