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“Interest rates have been the biggest driver of the multifamily market over the past three years,” says Matthew Rosenthal, founder and managing

director of Boca Raton, Florida-based Eastham Capital. “The increase in interest rates nearly grounded to a halt any multifamily transactions for about a year. We were able to acquire about five deals each of these years, but we had to be very cognizant of the loan terms,” adds Rosenthal. He expects transaction volume to grow as interest rates decrease. “Demand for rental housing will continue to be strong, and multifamily will continue to be the fuel that leads the real estate industry,” he states. “We hope to acquire a few more properties in the Chicagoland area in 2025.” Currently, Eastham maintains about 15,000 apartment units in 60 communities across 18 states. In January, the firm acquired Haven Hoffman Estates, a 550-unit property in suburban Chicago, for $75.8 million. The asset, built in 1970, will be renamed Hoffman Hills Apartments as part of a property upgrade program. According to Rosenthal, inflation has caused renovation costs and salaries to increase, but insurance and property taxes are two ticket items that have risen the most. The good news? Property insurance costs are starting to decrease in 2025, he notes.