Despite  short-term volatility in the multifamily sector, capital appears abundant on the sidelines, suggesting long-term optimism for the sector.

Harbor Group International has secured $1.6 billion in capital commitments for its multifamily credit fund, including a $585 million commitment from a wholly-owned subsidiary of the Canada Pension Plan Investment Board. HGI plans to invest in multifamily credit opportunities including senior mortgage loans, Freddie Mac K-series bonds, preferred equity and mezzanine debt investments, and investments in securitized multifamily mortgage products, it said in a statement.

It's the latest in a stream of multifamily-focused funds driving capital into the sector: in early January, past investors raised $748 million for Covenant Capital Group and its value-add investments for its latest $2 billion fund focused on approximately 40 to 50 apartment communities over the next three years. And CP Capital recently noted a plethora of dry powder waiting to invest, with sale pricing expected to strengthen once buyers return to the market en masse, potentially during the second half of 2023.