The Working-class Multifamily Market: Approaching Its Goldilocks Moment
Tony Barkan, the Founder, CEO and Managing Principal of Allagash Partners, will discuss the state of the US multifamily property markets including the uniquely compelling investment moment that the current economic and market environment is presenting. Mr. Barkan will discuss how residential market fundamentals have led to a greater 6-million unit affordable housing shortage across the US, how rental income and operations have been affected by the Covid-19 pandemic, why returns from this market sector are expected to be outsized with low downside risk for the next 5-10 years, and how both institutional and individual investors can capitalize on the opportunity.
- The combination of economic factors preventing profitable and scalable development of affordable working-class multifamily properties despite the growth of the working-class population
- The rental gap and housing poverty being experienced by a massive cross-section of US households
- The process that can provide both income and capital gain opportunities resulting from the housing market dynamic
- How community interaction and thoughtful impact can improve returns and reduce risk
- How the multifamily investment sector provides superior inflation protection from more standard hedges
Event Recording
The Working Class Multifamily Market Approaching its Goldilocks Moment
Speaker
Tony Barkan
- Title
- Founder, CEO and Managing Principal @
- Company
- Allagash Partners
- Role
- Speaker
Tony Barkan is the Founder, Managing Principal, and CEO of Allagash Partners. Prior to founding Allagash, from 2008-2015, Mr. Barkan was one of five Founding Principals and the Head of Commercial Real Estate at Seer Capital Management, an SEC-registered investment management company with $4 billion AUM. Mr. Barkan planned and executed Seer’s LMI workforce housing value-add strategy; developed and ran the second largest global CMBS B-Piece investment businesses, driving transactions on over $20 billion of US CRE properties; and structured and invested into significant Mezzanine Loan exposure. Prior to Seer Capital, from 2001-2008, Mr. Barkan built and ran alternative investment platforms at Clinton, Harbert, and Sailfish managing portfolios with peak investor equity over $1 billion, a peak long asset portfolio over $10 billion, and peak total market exposure of almost $20 billion while leading teams as large as 20 people.
Notably, Mr. Barkan was an early identifier of the real estate-led economic crisis and by the beginning of 2007 had migrated his hedge fund portfolio to be entirely short using real estate-backed credit derivatives . From 1997-2001, Mr. Barkan was a Senior Portfolio Manager and investment committee member at Pareto Partners (originally Forstmann-Leff). Mr. Barkan began his career trading a range of real estate, commodity, and currency products at Salomon Brothers, Goldman Sachs, and ED&F Man Group from 1988-1997 . Mr. Barkan supports Here Arts Center, Scholars at Risk, and CaringKind: The Heart of Alzheimer’s Caregiving. Mr. Barkan graduated from Princeton University where he was selected to the Honor Committee, and he is a member of the Triple Nine Society.
About
Allagash Partners
Allagash Partners offers institutional and HNW investors strategies focused on the wealth of opportunities within the US residential real estate market, stemming primarily from the longstanding, massive shortage in affordable working-class rental properties. These investments are currently being offered as both multi-property private equity real estate funds and as single property investments for compelling opportunities that do not fit within any current Fund’s mandate. The strategies are designed to be scalable and to consistently provide 15%+ net returns while also preserving investor’s capital. Allagash, through its subsidiary Allagash Opportunity Zone Partners which is in process of registering both with the SEC as an RIA and with the CDFI Fund at the Department of Treasury as a Community Development Entity, began active investment activities in 2019 with the Allagash Opportunity Zone CRE Fund I. The firm is now launching the Allagash Multifamily Opportunity Fund I, which seeks to opportunistically purchase, intelligently renovate, efficiently manage, and strategically sell underperforming working-class rental housing properties throughout the US. Allagash was founded by Tony Barkan who serves as Managing Principal and CEO and chairs the investment and operations committees. Allagash’s senior partners bring over 100 years of commercial real estate experience with particular expertise in working-class multifamily housing especially in secondary US markets, which Allagash believes can provide investment opportunities with outsized returns and moderate risk. Additionally, Allagash believes that projects which actively seek to provide a positive social impact should generate higher returns while presenting lower risk. As a result, Allagash seeks to work closely with communities into which it invests in order to understand their community development goals and methodologies for improving stability and resiliency.