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Market Outlook


HSR's CEO, Joseph Penner, and CIO Paul Perkins reflected on the company's strong performance in 2023 and discussed future market conditions. Penner emphasized that HSR took advantage of its unique market position by acquiring seven properties last year, surpassing the total combined acquisitions from 2019 to 2021.

Perkins predicts a slowdown among investors who were highly active in 2021 and 2022, largely due to challenges in managing legacy assets and difficulties in securing new capital amid a tightening financial climate. He notes that many investors who previously secured short-term, floating-rate loans during a period of low interest rates are likely to withdraw from the market as these loans mature under drastically changed economic conditions and rising interest rates.

Additionally, Penner highlighted that these maturing loans, especially those in the multifamily sector—which accounts for about $1 trillion through 2027—will encounter significant refinancing challenges, often necessitating substantial principal reductions. This shift from an era of abundant capital to a period marked by restricted funding and growing distressed assets opens strategic investment opportunities for HSR.

View the full interview with CIO Paul Perkins here.

Important Disclaimer:

The summaries, descriptions, and content in these videos are for informational purposes only and do not constitute tax, legal, or investment advice. The views expressed are those of the speakers and do not necessarily reflect the official policy or position of HSR or its affiliates. Investing in real estate involves risks, including potential loss of principal. HSR does not guarantee the accuracy or completeness of the information provided in the summaries or videos. Consult with qualified tax advisors, legal counsel, and financial planners before making any investment decisions.

Furthermore, these videos and their written summaries do not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products. Any such offer will be made only by means of official offering documents and in accordance with applicable laws.

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