CAF Capital Partners

Background

CAF Capital Partners, established in 2010, is a Dallas-based private equity real estate firm specializing in the acquisition, redevelopment, repositioning, and subsequent sale of institutional-quality multifamily real estate. The firm has closed over $4 billion in apartment properties and manages more than 26,000 multifamily units across Texas and the Southwest United States. As a subsidiary of CAF Companies, CAF Capital Partners is dedicated to enhancing the quality of life for residents through strategic investments and community-focused initiatives.

Key Strategic Focus

CAF Capital Partners concentrates on acquiring well-located, institutional-quality multifamily properties with strategic competitive advantages. The firm's investment profile includes:

Institutional Quality: Targeting properties with 150+ units that exhibit minimal obsolescence risk.

Proximity to Key Demand Drivers: Focusing on assets near employment centers, transportation hubs, and other essential amenities.

Conservative Growth Assumptions: Implementing realistic operating plans with conservative growth projections.

Market Expertise: Investing in markets where the firm has deep knowledge and experience, particularly within the Sun Belt region, emphasizing Texas and the Dallas-Fort Worth area.

Financials and Funding

While specific financial details are not publicly disclosed, CAF Capital Partners has demonstrated significant growth and financial strength through strategic partnerships and successful acquisitions. Notably, the firm has collaborated with prominent investors such as Goldman Sachs Asset Management to expand its social impact workforce housing platform.

Pipeline Development

CAF Capital Partners maintains a robust pipeline of multifamily projects, focusing on properties from the 1990s to 2010s with light to moderate value-add potential. Recent acquisitions include:

2929 Wycliff: Dallas, Texas – 284 units, acquired November 2024.

Arbors on Oakmont: Lewisville, Texas – 256 units, recapitalized December 2023.

The Catalina: Lewisville, Texas – 208 units, acquired September 2022.

These acquisitions reflect the firm's commitment to expanding its portfolio and enhancing community value through strategic investments.

Technological Platform and Innovation

CAF Capital Partners differentiates itself through a vertically integrated management platform that encompasses leasing, maintenance, marketing, and accounting. This in-house approach ensures operational control, streamlined processes, and the delivery of exceptional living experiences across its properties. Additionally, the firm emphasizes social impact by providing free education, workforce development, and family support services directly to its communities, aligning with Environmental, Social, and Corporate Governance (ESG) principles.

Leadership Team

Chris Faulkner: CEO of CAF Companies, leading the firm's strategic direction and expansion efforts.

Matt Falkin: Vice President of CAF Funds, overseeing housing and impact platforms, and instrumental in implementing social impact initiatives.

Jason Geer: Senior Vice President of Acquisitions, responsible for identifying and executing new investment opportunities.

Leadership Changes

In August 2023, CAF Capital Partners appointed Jason Geer as Senior Vice President of Acquisitions, enhancing the firm's capacity to identify and execute new investment opportunities.

Competitor Profile

Market Insights and Dynamics

The multifamily real estate market, particularly in the Sun Belt region, has experienced significant growth due to population increases and economic development. Investors are increasingly focusing on value-add opportunities and workforce housing to meet the demand for affordable living options.

Competitor Analysis

Key competitors in the multifamily real estate sector include:

Greystar Real Estate Partners: A global leader in rental housing property management, development, and investment.

Lincoln Property Company: Specializes in property management, development, and investment services across the United States.

Cortland: Focuses on acquiring, developing, and managing multifamily communities with an emphasis on resident experience.

These competitors share a focus on multifamily investments but may differ in geographic emphasis, scale, and specific investment strategies.

Strategic Collaborations and Partnerships

CAF Capital Partners has engaged in significant collaborations to strengthen its market position and innovation capacity:

Goldman Sachs Asset Management: Partnered to launch a social impact workforce housing strategy, acquiring properties like The Residence at North Dallas and implementing free on-site services for residents.

Freddie Mac: Recognized as a 2020 Select Sponsor, granting preferential timing, pricing, and terms in agency debt financing.

Operational Insights

CAF Capital Partners' vertically integrated management platform provides a distinct competitive advantage by ensuring operational control and efficiency. The firm's deep local market expertise, particularly in Texas and the Southwest, enables it to identify prime opportunities and execute strategic acquisitions effectively.

Strategic Opportunities and Future Directions

Looking ahead, CAF Capital Partners aims to:

Expand Social Impact Initiatives: Continue partnering with non-profits to provide free educational and workforce development programs to residents.