Hamilton Zanze Releases 2025 State of the Business: Growth and Resilience in Multifamily Real Estate

SAN FRANCISCO, Jan. 22, 2025 /PRNewswire/ -- Hamilton Zanze, a leading San Francisco-based multifamily real estate investment firm, has released its 2025 "State of the Business" report, which outlines the company's outlook for the year ahead, driven by market stabilization and strategic innovations, and details the firm's investment strategies.

Resilience Amid Market Challenges

Over the past four years, the multifamily market has faced significant hurdles, including the aftershocks of the COVID-19 pandemic, inflation, interest rate hikes, and an influx of nearly 1 million new apartment units nationwide in 2023 and 2024. These challenges have tested the resilience of operators across the industry.

Looking ahead, the market is poised for stabilization. Multifamily completions are expected to decline by more than 20% in 2025, while the pace of interest rate increases is slowing, creating an environment that encourages capital to re-enter the market.

"Hamilton Zanze is well-prepared to capitalize on these emerging opportunities," said Kurt Houtkooper, CEO of Hamilton Zanze. "With long-term fixed-rate debt, a skilled management team, and a proven investment strategy, I am bullish about what this year holds for our firm and the multifamily sector as a whole."

Key Growth Initiatives

While Hamilton Zanze remains firmly committed to its core business—suburban infill, garden-style apartment communities—the firm has also recently expanded its investment platform to address evolving investor needs and adapt to changing market dynamics. These new initiatives are designed to complement its established strategy while providing opportunities for diversification:

• The HZ Evergreen Fund: Launched in 2024, this innovative fund enables existing investors to contribute their real estate holdings with Hamilton Zanze at market value in exchange for shares in a diversified portfolio. The fund will be comprised of properties spanning 22 metropolitan areas with a combined value representing over $1 billion in assets, offering investors tax efficiency, flexibility, and long-term capital appreciation.
  
  
• Dislocated Market Opportunities: The firm has re-entered the San Francisco market through the establishment of Revere Housing, focused on acquiring real estate and loan notes in rent-controlled, high-demand urban markets where values are below historical levels.
  
  
• Private Credit: Hamilton Zanze partnered with Limekiln Real Estate Investment Management to sponsor the acquisition of subordinate securities in the Freddie Mac K-165 transaction. This initiative provides investors with access to private credit opportunities that combine fixed-income characteristics with equity-like returns.

Portfolio Growth and Performance

In 2024, Hamilton Zanze sponsored the acquisition of seven apartment communities totaling over $453 million and executed more than $171 million in asset sales. Occupancy across its portfolio remains robust at approximately 93%, with steady year-over-year rent roll growth of about 1.8% as of December 2024.

Looking ahead in 2025, the firm plans to sponsor approximately $1 billion in multifamily acquisitions, focusing on assets in the West and Southeast. With institutional partners showing renewed interest and large banks poised to resume lending activity, Hamilton Zanze anticipates a brisker pace of investment sales and acquisitions.

"With the multifamily industry poised for growth, we remain steadfast in our commitment to disciplined investment, operational excellence, and delivering exceptional value to our investors," Houtkooper said.

A Look Ahead

As new construction slows and market conditions improve over the next two years, Hamilton Zanze is strategically positioning itself for long-term success. By focusing on disciplined investment, operational excellence, and innovative solutions, the firm is confident in its ability to deliver strong performance in the multifamily sector.

ABOUT HAMILTON ZANZE
Hamilton Zanze is a private, San Francisco-based real estate investment company that invests with the highest standards. Since its founding in 2001, Hamilton Zanze has sponsored the acquisition of over $7.5 billion in multifamily assets primarily in the Western, Southwestern and Eastern U.S. The company's portfolio currently comprises approximately 124 properties (22,041 units) across 28 markets. For more information, visit www.hamiltonzanze.com.

MEDIA CONTACT:
Stephen Ursery
LinnellTaylor Marketing
(303) 682-3945
[email protected]

SOURCE Hamilton Zanze & Company