Intro: A Generational Entry Point Is Emerging
Investing in multifamily real estate isn’t just about location—it’s about timing. And according to David Valger, President of DVO Real Estate, there’s rarely been a more attractive time than now.
On Navatar’s A Game podcast, Valger laid out a compelling case for why 2025 could be a generational buying window—and how firms using platforms like Navatar are preparing to move.
Valuations Are Depressed on Two Fronts
Multifamily values follow a simple formula: NOI ÷ Cap Rate. Right now, both inputs are under pressure:
- NOI has slowed as concessions rise in oversupplied markets
- Cap rates have expanded as institutional capital pauses
“We’re in a historically low spot of valuation. If you can make the deal work under today’s conditions, your upside is all optionality.” —David Valger
Supporting Insight: CBRE’s 2024 U.S. Real Estate Market Outlook reported a 40–60 bps increase in cap rates and a 10% average asset price decline. (Source: CBRE Outlook).
How Navatar Helps: Navatar enables firms to identify undervalued assets early across submarkets, align their teams, and act decisively—without relying on spreadsheets or scattered intel.
Supply Is Slowing, But Demand Is Not
New development has stalled due to high rates, rising costs, and limited labor. But U.S. housing demand continues to grow. “We need 350,000 new units a year to stay in balance. We’re hundreds of thousands short. That pressure will push rents higher.” —David Valger
Supporting Insight: NMHC & NAA project a shortfall of 4.3 million apartment units by 2035 if trends hold.
(Source: NMHC Forecast)
How Navatar Helps: Navatar maps supply-demand dynamics at the submarket level and surfaces insights to drive smarter underwriting—giving teams a competitive edge as pricing rebounds.
Buy Low. Underwrite Smart. Win Later.
DVO’s strategy avoids rosy assumptions. Instead, they:
- Acquire undervalued properties in high-potential submarkets
- Improve operations and tenant experiences
- Build in optionality for future upside
“You want to win on day one. Everything after that is a bonus.” —David Valger
Supporting Insight: MSCI found that 65%+ of Q4 2024 multifamily transactions closed below peak pricing, with value-add deals attracting renewed interest. (Source: MSCI Capital Trends)
How Navatar Helps: Navatar gives firms real-time visibility into pricing trends and pipeline movement—allowing them to act before the rest of the market catches up.
Timing the Cycle Means Moving Early
History shows the best deals happen at the start of a recovery—not the top. Valger believes we’re entering that early phase now.
“Cap rates will tighten. Rents will rise. If you buy right today, your returns will exceed your model.” —David Valger
How Navatar Helps: Navatar integrates firmwide data, AI-powered insights, and CRM workflows—so dealmakers can act with conviction, not guesswork.
What This Means for Investors
- Re-evaluate your pipeline with today’s pricing in mind
- Focus on operational improvement—not speculative growth
- Build in upside with better timing and better tools
Navatar helps private real estate firms adapt faster—by combining market intelligence, firmwide visibility, and automated workflows in a single platform. For firms like DVO, that edge isn’t optional—it’s essential.