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Raheem Suleman | Managing Director
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(646) 852-8007
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OVERVIEW
Interwest Capital is raising $200 million to acquire multifamily properties across high-growth Smile State markets
- Targeting Class A and B properties built 1990 and newer, with supply and demand imbalances, strong demographics, and durable economic drivers
- Strategy blends stabilized cash-flowing Core+ assets with light Value Add deals to enhance portfolio-wide returns while managing downside risk
- Target returns: Gross 14-18% IRR and 1.5x to 2.5x+ equity multiples, supported by conservative underwriting and favorable debt terms (65-70% LTV)
- 20-year multifamily track record with a ~41% weighted average gross IRR and established relationships to execute quickly in a distressed, acquisition-friendly market
Market Opportunity
- Sustained rental demand driven by homeownership barriers. Mortgage rates at 6.4-6.5% through end-2025 are projected to remain elevated at 5.9%-6.1% through 2026, maintaining a $400+ monthly rent-versus-own cost differential. This structural affordability gap anchors demand from younger cohorts priced out of homeownership
- Significant pricing discount to replacement cost amid distressed sellers. Multifamily values have declined 20%+ from 2022 peaks while construction costs remain 15-20% elevated, creating material basis advantage for newer-vintage acquisitions. Approximately $180-200 billion in floating-rate debt resetting through 2026 accelerates distressed market conditions for well-capitalized buyers
- Class A and Class B assets show differentiated dynamics. Stabilized Class A occupancy reached 95.7% in May 2025 (three-year high), while Class B maintained 95.8% occupancy driven by limited supply and filtering effects. Current pricing reflects supply headwinds rather than demand deterioration, creating attractive risk-adjusted opportunities
Macro Market Environment
- Sunbelt Markets anchored by employment and migration. The Sun Belt captured 70% of U.S. population growth from 2020-2023 with employment expansion of 20% over the past decade, double non-Sunbelt regions. Dallas, Phoenix, Nashville, Orlando, and Tampa benefit from diversified economic anchors spanning technology, healthcare, and manufacturing
- Supply-Demand rebalancing underway as construction normalizes. Net absorption exceeded new deliveries in Q2 2025 for the first time since mid-2021; national vacancy is projected to decline to 7.9% by end-2026. Multifamily completions are expected to decline 15-20% annually through 2027 as the pipeline compresses, creating supply-demand equilibration
- Structural Housing Shortage Drives Long-Term Pricing Power. An estimated 4.3 million new apartments are needed by 2035 to address affordability deficits and meet demographic demand from millennial household formation and immigration. Institutional capital constraints have slowed development pipelines, positioning well-located newer-vintage Class A/B assets in high-growth metros with embedded pricing power
Why Now?
Market Conditions are Prime
Distress Driven Opportunities
→ The prolonged market difficulties over the past two years, including rising interest rates, elevated expenses, and declining rental growth, have created a wave of distressed owners and developers, unable to refinance or sustain their portfolios
Strong Future Fundamentals
→ Affordability in the rental market is rebounding, positioning the multifamily sector for significant growth in H2 2025 and 2026
→ Millennials, a key renter demographic, face barriers to homeownership due to historically high mortgage rates, ensuring sustained demand for quality rental housing
Unique Acquisition Opportunities
→ Many acquisition groups with short-term loans are facing refinancing challenges, while merchant builders struggle with liquidity issues, offering us opportunities to acquire new vintage product at attractive basis
Capabilities/Advantage
→ Enhanced speed of execution enabled by the availability of liquid capital
→ Ability to acquire, reposition, and stabilize distressed or underperforming assets to realize substantial value
→ A proactive stance in capturing opportunities arising from the current and anticipated market dislocations
Traction/Milestones
- Completed 70+ real estate transactions totaling approximately $2.16 billion in volume across multifamily and hospitality since inception
- Over 20 years, Interwest has completed about $1.4 billion of multifamily transactions with a 41.7% realized IRR (gross) and 2.41x equity multiple, and its current 10-property portfolio is underwritten to a projected 17% plus IRR (gross) and 2.5x plus equity multiple
- Multiple high-performing realized case studies, including assets such as Westwood, Onnix, Monarch at Scripps Ranch, Atlas, and the Destinations senior portfolio, with realized gross IRRs generally in the 20–56% range and equity multiples around 1.9x–2.6x
- Verified historical performance record for multifamily investments, reviewed by third party accounting firm EisnerAmper, providing institutional-grade validation of track record metrics
Solution/Strategy
Investment thesis & acquisition approach
→ Acquire newly built and recently stabilized Class A and B multifamily assets in high-growth Sunbelt and Smile-State markets where demographic tailwinds, employment nodes, and constrained new supply support durable income and rent recovery
Acquisition Strategy
→ The fund targets basis-advantaged opportunities – typically 15–25% below replacement cost created by distressed capital stacks, assumable debt, and motivated sellers whose pricing reflects capital-market dislocation rather than operational weakness
Value creation framework
→ Value creation is achieved through operational efficiencies, revenue management, and targeted 5–8% capital upgrades while maintaining disciplined 65–70% LTV leverage and constructing a diversified 5–7 asset portfolio across multiple MSAs
Risk management & portfolio resilience
→ Conservative underwriting with elevated expense assumptions and wider exit cap rates, supported by a resilient capital structure, GP co-investment alignment, and diversification to mitigate property- and market-level volatility
Return Targets & Exit Strategy
→ The fund targets 14-18% gross IRR and 1.5x–2.5x equity multiples over 4–6 years, with exits to institutional buyers, REITs, and 1031 capital seeking stabilized assets in supply-constrained growth markets
Investment Strategy
Target Assets
→ Class A and B assets
→ “A” locations across the nation with the following characteristics
» Built 1990 and newer
» $50M – $120M acquisition size
» A supply/demand imbalance
» Job growth
» Population growth
» Quality school districts
→ Pursue assets where Interwest’s management can implement operating efficiencies and significantly improve top-line revenue
→ Assets that will attract institutional and private capital upon a sale
Core+ (50%)
→ Strong in-place cash flow, market viability and appreciation, with the ability to implement efficiencies through Interwest’s management platform
→ Target assets with stabilized operations but distressed capital stacks allowing for opportunistic acquisitions
→ Target Fund Returns:
» 14% – 16% gross IRR
» 6% – 7% CoC
» 1.5x – 2x EM
Value-Add (50%)
→ Seek opportunities that can benefit from organic rent growth or strategic improvements to interiors/exteriors for potential rent increases
→ Target Fund Returns:
» 16% – 18% gross IRR
» 7% – 8% CoC
» 2x – 2.5x EM
Favorable Debt
→ Relationships with large, nationwide lenders: able to source the best terms including low rates, I/O terms, and favorable prepayment terms
→ The opportunity to seek traditional agency financing for assets with longer hold periods
→ Proven assumable loan strategy
Multifamily
Track Record
Management Team
Alex Roudi | CEO & Chairman
- Founder and CEO of with over $2 billion in real estate transactions completed since 2003
- Specializes in opportunistic and value-creation multifamily strategies across high-growth U.S. markets
- Previously founded and scaled Coverall North America to $250 million revenue and more than 6,000 franchise units before exiting
- Graduate of the Harvard Business School OPM Program and University of California, Berkeley
- Strong track record of execution, operational efficiency, and market-cycle discipline to portfolio construction and asset management
David Guss | Partner
- Former CEO and Chairman of Investment Placement Group, overseeing approximately $2.5 billion in client assets
- Extensive experience in wealth management, capital markets, and advisory across high-net-worth and institutional client segments
- Advisory and board roles at organizations including First National Bank and the Museum of Contemporary Art San Diego, enhancing governance and strategic oversight capabilities
- Economics degree from San Diego State University and Executive Management Program at Northwestern University, supporting a disciplined, analytical approach to capital allocation
- Contributes to portfolio construction, investor relations, and strategic positioning
Specific Risks
- Market volatility may affect rent growth, occupancy, exit cap rates, and refinancing conditions, particularly in high-growth Sunbelt markets with uneven supply absorption
- Distressed or basis-advantaged acquisitions may involve operational, legal, or physical complexities requiring precise underwriting and execution discipline
- Rising operating expenses including insurance, property taxes, and labor may pressure margins if not offset by revenue optimization or cost controls
- Leverage in the 65-70% LTV range introduces refinancing and rate-sensitivity risk if credit conditions tighten or debt markets reprice
- Localized new supply in certain MSAs may temporarily elevate vacancy or reduce rent premiums until the market reaches equilibrium
- Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment
