MIAMI—Mike Stein, principal and founder of Miami-based Pensam Residential, believes there is a lot of capital looking to be deployed in the multifamily space, keeping the sector vibrant in 2020.

"From a transactional volume standpoint, it will be a very active year in terms of both acquisitions, as well as structured finance, which are both integral parts of our business," Stein tells GlobeSt.com.

High-growth markets in the Southeast will see high rent growth. Other areas seeing growth include Dallas, Phoenix and Denver. However, he sees other markets with a tremendous supply that will likely be flat to negative in terms of rent growth. He cites Houston as an example.

Stein says Pensam will be active this year in markets where the firm has had success over the past five years. This includes Florida and the Denver areas. Four years ago the firm bought The Breakers on the east side of Denver, the largest multifamily community in Colorado with 1523 units. Pensam has since changed its name to Tava Waters, and plans on some ground-up development on adjacent land it purchased. When the project is complete, the community will have nearly 2,000 units.

In Florida, in-migration continues to drive demand for multifamily. Stein says people looking to escape high-tax states such as New York and Connecticut are heading south. Within Florida, Pensam primarily focuses on the south and central regions.

"We are benefitting from a lot of in-migration," he says.

While new restrictions and regulations have resulted in some pullback of foreign capital in primary markets, Stein doesn't see that happening to a significant degree in multifamily.

"There's been pullback in major urban areas in other product types, particularly office and hospitality," he says. "In terms of multifamily, the influx of international capital is so diverse, coming from South America, Mexico, Canada, Israel, Europe and Australia. I don't see any slowdown, at least in 2020."

Stein says Pensam by nature and by culture is a niche-oriented investor and lender. The firm has made some large investments into the non-acuity senior housing business. He says that's an interesting niche that the firm will continue to pursue.

Instant Insights /

Capital Continues to Stalk Multifamily in Florida, Elsewhere

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