Portman managing director Harvey Wadsworth appears to agree. “As the sector faces a 50-year high in apartment deliveries, we saw an opportunity to expand our residential platform to include acquiring properties that are poised for repositioning, especially as new supply dwindles net year,” he said.

Though Portman has undertaken several flagship apartment projects including six in Charlotte, Nashville, Tallahassee, Austin and Atlanta, the new venture marks a departure from its more traditional focus on hospitality, office and mixed-use properties. Henry said Portman has not established a specific spending target for the fund but will act swiftly as opportunities arise.

Portman will focus on identifying, evaluating and executing multifamily investment opportunities that align with the company’s overall growth strategy, the company said. It is actively targeting properties with over 200 apartment units in key markets across the Southeast, Texas and Florida that demonstrate long-term population, job and income growth. Henry will focus on existing multifamily properties and other teams will scout out potential development prospects.

Other investors have already dived in or are amassing the funds to do so. Chicago-based Waterton has closed its residential property venture XV fund with $1.74 billion of equity commitments from “a diverse group of institutional investors.” The fund claims to be one of the largest dedicated multifamily value-add funds in the U.S. and said it “is poised to invest Venture XV capital through a period of historic pricing disruption.”

“We expect to see significant opportunities in the multifamily sector as a result of the current, interest-rate-driven disruption and the near-term oversupply in certain markets with healthy longer-term fundamentals,” said Waterton CEO David Schwartz. The fund will target distressed properties as well as traditional value-add properties.

And that’s not all. The company said it plans to invest around $5 billion in gross assets, including debt, in 30-40 multifamily assets across major U.S. markets. The focus will be on well-located, well maintained workforce housing in markets with favorable job growth, employment metrics and transportation logistics.

In another significant deal, Blackstone in April acquired Apartment Income REIT (AIR Communities) for $10 billion. AIR owns 76 upscale rental housing communities primarily in the coastal markets including Miami, Los Angeles and Boston. Blackstone will invest an additional $400 million in property improvements. Blackstone president Jonathan Gray told investors that he sees the pillars of a real-estate recovery coming into place. “We are, of course, not waiting for the all-clear sign and believe the best investments are made during times of uncertainty,” he said.

Meanwhile, interest in the office-to-residential conversion space continues to expand. Dune Real Estate Partners and TF Cornerstone have jointly created a $1 billion fund, Alta Residential, to convert office buildings to residential – an opportunity they describe as “generational.” It will focus on areas with high barriers to entry with desirable, transit-oriented residential neighborhoods. Target markets include New York City, Washington, DC, Boston, Charlotte, Raleigh, Atlanta, Dallas, San Francisco and Los Angeles.

Henry also said Portman is open to evaluating office-to-residential conversions where they align with its strategy. In some cases, he said, Portman may invest in properties that require renovations, new management or other upgrades to enhance their marketability.