Ric Campo, chairman and CEO of Camden Property Trust (NYSE:CPT), participated in a video interview in conjunction with Nareit’s REITweek: 2021 Investor Conference.
Campo described the landscape for multifamily acquisitions as “probably the most complicated from a pricing perspective and the most competitive acquisition market I’ve seen in my business career.”
The combination of the Federal Reserve flooding capital markets with liquidity and multifamily properties being in high demand has resulted in an “unprecedented situation,” he said, with sub 4% cap rates seen on institutional quality properties in all markets.
Camden plans to dispose of $450 million of properties in overweight markets this year and acquire a similar amount in underweight markets, including Nashville, Campo said.
Meanwhile, after freezing rents and blocking evictions last year, Camden is now starting to raise rents in the 5-7% range, Campo said. By the end of first quarter, occupancy levels were at pre-pandemic levels and are now at their highest level in three to four years, pushing 97%, he noted.
“We’re excited about the dynamics that are playing out for multifamily,” Campo said.