Stoneweg US, LLC

Introducing Volume 2 of Stoneweg US’s HouseView - our commitment to keeping you informed about the latest insights and activity shaping our #sustainable #investment approach. In this issue, our CEO, Patrick Richard, gets into the ‘how’ of achieving #alpha through responsible investing, data-driven accountability, and ESG-centered decision-making. Discover key insights on: - Leveraging sustainability to unlock investment returns - Using data to ensure transparency and maximize impact across the portfolio - Balancing market resilience with long-term growth The HouseView series is crafted to offer investors and industry leaders a transparent view into Stoneweg US’s approach to value creation. Don’t miss the full document - now available on our website. Gain insights into the future of real estate investment with Stoneweg US and learn more from articles authored by our EVP of Asset Management and Development (Samuel Palmer) , CFO (Karen Weller, CA, CPA, CTP) , Head of Capital Markets (Justin Anstey) , and Sr. Director of Acquisitions (Garrett Pisarik). Full House View on our What We Do page Here: https://lnkd.in/eBH6RufF

Here's this week's #StonewegMarketMinute with Ryan Smyth: As we come to the end of February, economic turbulence continues.?Long-term #Treasuries have sharply declined due to renewed recession fears, prompting a shift to shorter-term bonds. Key economic indicators include: ? University of Michigan Consumer Sentiment Index at a 15-month low of 64.7 ?Services PMI Index dropped from 52.9 to 49.7 ?New home sales fell by 10.5% in January, with the highest housing inventory since 2007 ?Conference Board Consumer Confidence Index decreased by 7 points in February, the largest drop since August 2021 What does it mean for #multifamily? With the10-year/3-month yield curve inverting this morning, this has always been an indication of a pending recession as short-term bond yields exceed long-term bond yields. Typically, the inverse is true, as investors want a higher yield to have their money locked up in bonds for a longer period. When short-term yields exceed long-term yields, this shows that investors believe a slowdown in the #economy is upcoming, which typically spurs the Fed to cut interest rates. ? Falling treasury yields are beneficial to the multifamily industry. It helps buyers get a bit more aggressive in pricing given the lower cost of debt. Cap rates remain sticky, and something has to give a little bit to see transaction volume pick up. But here’s the thing – I’m bullish on multifamily no matter what happens in the overall economy.

Our Capital Markets team, Justin Anstey and Elizabeth Campos-Alvarez, CPA, kicked off their first 2025 AFIRE conference in Washington, D.C., exploring key trends shaping #multifamily real estate. ? A key conference takeaway? Charlene Li’s keynote on #Generative #AI highlighted how technology is transforming market forecasting, risk assessment, and investor insights. AI is revolutionizing decision-making - and at Stoneweg US, we’re leveraging it not only for smarter investments but also to drive #sustainability, from energy optimization to predictive maintenance. ? Missed our team at AFIRE? Connect with Justin and Elizabeth on LinkedIn to keep the conversation going!

We've taken this week's #stonewegmarketminute live with Ryan Smyth! Check it out below:? ? Historically, there’s been a healthy spread between interest rates and cap rates, typically ranging from 100 to 200 basis points. However, this spread evaporated when the Fed raised rates in 2022, turning negative by late 2022 and into 2023. The result? Debt costs are outpacing the returns on properties, making deals harder to justify without relying heavily on asset appreciation and rent growth. ? Despite the shift, cap rates have remained sticky, stalling transaction volume, 2023 saw the lowest sales volume since 2014, with 2024 showing only slight improvements. With the market at a crossroads, the key question for 2025 is: Will buyers or sellers surrender first? If not, we may see a continuation of the current gridlock. ? The wild card in all of this for #multifamily? Distressed debt. Newmark Analytics predicts $64B in potentially troubled loans maturing in 2025 and another $69B in 2026. We don’t know how much distress will lead to forced sales, but it’s certainly on the radar of every investor. Much like Neo, we’re all waiting to see what happens next.

Sustainability isn't just the right thing to do, it can create enduring value in #multifamily investment. Through Life Cycle Assessments (#LCAs), we make #data-driven decisions that enhance quality, and efficiency, and embed long-term savings. ? At Mosaic, this approach is shaping a community designed to stand the test of time. By carefully selecting materials and integrating smart design choices, we’re not just building - we’re establishing the standard for #sustainable #development. ? A big thank you to GRESB, Longevity Partners, and our dedicated team for their partnership in ensuring #Mosaic is designed with the future in mind. We can’t wait to bring this vision to life! ? Check out our latest GRESB Insight article to learn how LCAs are driving sustainability at Mosaic!

At Stoneweg, every #development, value-add strategy, and #sustainable initiative is driven by one goal - creating long-term value and high #ROI for our stakeholders. A huge thank you to Thomas S. for representing our commitment to responsible investing and forward-thinking strategies Information Management Network (IMN). It’s always a pleasure connecting with leaders, challenging pushing boundaries, and exploring new solutions to drive meaningful impact in the #multifamily industry.

Check out the #stonewegmarketminute for this week with Ryan Smyth:? The Fed has a difficult path ahead. Inflation isn’t backing down, and neither is rate volatility. Last week’s positive treasury movement? Wiped out by an inflation print that sent the US5Y yield up 25bps. ? The real brutality is in the details: ?? Car insurance: +11.8% ?? Transportation: +8% ?? Airfare: +7.1% ??? Daily products: +6.1% ? The middle and lower classes continue to feel the squeeze, deepening economic bifurcation. This system isn’t sustainable. ? Meanwhile, #multifamily pricing remains stuck at a 5% cap rate, with all-in debt hovering at 5.75%, making negative leverage the new norm. The only way forward? Buyers need a real strategy for NOI growth. But in a market flooded with supply and uncertainty, finding those opportunities is like searching for a needle in ten haystacks.

Our Director of Construction, Anthony Ardila, is launching our “Constructive Insights” series with a look at Mission Palms, an example in strategic repositioning that enhances resident experience and delivers strong returns. Acquired in 2017 with a light value-add plan, Mission Palms was reassessed in 2023 to capture market potential. The result? A thoughtful, high-impact repositioning led by our Construction Management team. Our Enhancements: ?? Leasing Office & Community Room – Modernized with 24/7 access, energy-efficient lighting, and water-saving fixtures to enhance functionality. ?? Fitness Center Upgrade – Top-tier equipment, hydration stations, and controlled access for a best-in-class experience. ?? Resort-Inspired Outdoor Spaces – Artificial turf, a hammock garden, and modern seating create an inviting, high-use environment. ?? Expanded Community Amenities – A pickleball court, upgraded seating areas, and a soccer field with shaded canvas sails elevate the resident lifestyle. At Stoneweg US, we reposition with purpose. By integrating sustainability, design, and functionality in our portfolio, we create high-performing assets that benefit both residents and investors. Interested in learning more about how Stoneweg US creates long-term value? Connect with our Capital Markets team, Justin Anstey and Elizabeth Campos-Alvarez, CPA, or visit https://lnkd.in/ewrips_2 to explore our portfolio.

Stoneweg US is honored to partner with St. Petersburg Area Economic Development Corporation as an Investor member! With our headquarters rooted in St. Pete, we're proud to support their efforts to drive economic growth and create opportunities in this vibrant, collaborative community. Together, we're investing in a stronger future for the place we call home. Thank you to the EDC for all you do to shape a better tomorrow for St. Pete! #StPetersburg #Tampa #Development #BecomeStPete