How are institutional investors navigating the Los Angeles apartment market in 2024? In this episode of No Vacancy with Taylor Avakian, Trion Properties' ($1.5B AUM) heads of acquisitions, Farhan Mahmood and David Moghavem break down their strategy for finding value in today's high interest rate environment.
Learn how institutional investors are:
- Finding 6-cap deals in Los Angeles
- Comparing LA vs Sunbelt opportunities
- Navigating high interest rates
- Identifying out-of-favor market opportunities
- Growing from local to institutional scale
Featuring insights from Farhan Mahmood and David Moghavem of Trion Properties on their journey from local investor to managing $1.5B in multifamily assets across 7 states.
Microchapters:
00:00 - Introduction to Farhan & David from Trion Properties
02:00 - Getting into Real Estate & Early Career Experience
03:56 - Experience During the 2008 Financial Crisis
07:15 - Introduction to Trion Properties ($1.5B AUM, 7,500 units)
11:08 - Current Market Analysis: LA vs Other Markets
13:50 - Breaking Down Cap Rates Across Markets
15:20 - Downtown LA Market Analysis & Olympic Impact
20:45 - Institutional Investment Strategy 2024
25:30 - Deal Structure & Investment Returns Discussion
31:15 - Evolution of Syndication Models
35:40 - Fixed vs Floating Rate Debt Strategy
42:15 - Long-term Hold vs Sale Strategy Discussion
48:30 - Market Analysis: Portland & Out-of-Favor Markets
53:15 - Technology & AI in Real Estate
59:30 - Building Trust in Real Estate Investment
1:05:45 - The Future of Los Angeles Real Estate
1:14:20 - Alternative Asset Class Opportunities
1:20:45 - Closing Thoughts & Miami Plans
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