Apartment Strategy Targets Older Multifamily Assets

Major Play in Apartment Strategy

Bozzuto Group, a national apartment developer, formed a $1B joint venture with Invesco to acquire existing East Coast multifamily properties, according to CNBC Property Play. The strategy focuses on older buildings that have lost value in recent years. Bozzuto and Invesco plan to renovate these assets and reposition them for today’s competitive rental market.

Renovation Over New Builds

Purchasing and upgrading older multifamily properties has become more attractive than ground-up development, as acquisition costs often run 10% to 20% below replacement costs. Speed to market also strengthens the strategy, since existing assets avoid lengthy approvals tied to new construction. This approach also aligns with broader signs that industrial development pipelines are slowing nationwide as construction activity stalls, pushing more investors toward repositioning existing assets instead of breaking ground.

Market Fundamentals and Recovery Outlook

Industry leaders expect the recent multifamily market oversupply to correct within the next few years. Forecasts anticipate a drop to 450,000 apartment units delivered in 2026, easing pressure from new supply. This supports Bozzuto’s apartment strategy, as higher for-sale home prices keep more renters in the market.

Investor Sentiment and Risks

Despite ongoing challenges, appetite for multifamily investment is rising. Berkadia’s latest survey found 87% of investors aim to expand their apartment portfolios in 2026. The apartment strategy also factors in manageable levels of loan distress, creating opportunities to buy and add value to underperforming assets while awaiting a rebound in development feasibility.