Dive Brief:
- Matt Ferrari has left TruAmerica to launch PXV Multifamily, a private multifamily investment and operating firm that will target a broad spectrum of assets from middle-market value-add properties to institutional quality opportunities, according to a press release shared with Multifamily Dive.
- Funds from BroadVail Capital Partners will capitalize PXV Multifamily. The partnership marks the Houston-based real estate private equity firm’s entrance into conventional multifamily. It has closed $4 billion in the industrial, self-storage and affordable housing sectors.
- PXV aims to build more than $2 billion in assets under management over the next 36 months by acquiring properties directly with its own capital and through joint ventures with limited partners, according to the press release. The Miami-based firm will focus initially on individual assets and portfolios made up of 1980s and newer assets with 150 units or more in major markets across the U.S.
Dive Insight:
Ferrari launched PXV after nearly a decade at Los Angeles-based TruAmerica Multifamily, where he rose to co-chief investment officer after starting as the Eastern U.S. director of acquisitions. Ferrari played a pivotal role in the growth of TruAmerica, helping to open new markets and increasing its AUM from $6.2 billion to $15.2 billions, according to the press release. .
Ferrari was previously investments director for AvalonBay Communities after starting his career with Archstone as operations director responsible for managing a portfolio of multifamily and retail assets in New York City.
Robby Zorich, a managing partner at BroadVail, said the firm had waited a long time to enter the multifamily sector.
“After a nearly three-year search for an individual to lead a multifamily platform, Matt stood out amongst the crowd, having actively led a highly successful national multifamily platform as co-CIO, while at the same time managing institutional relationships, sourcing new deal flow and asset managing assets across the Eastern U.S. — the combination of which we see as incredibly unique,” Zorich said in the press release.
Ferrari, who will spend the next few months building PXV’s asset management and acquisition teams, sees the multifamily investment market turning a corner by resetting values, increasing transaction activity and improving operating fundamentals.
“There was a flood of new entrants into the space during this past cycle, many of whom aren’t operators, and nearly all of whom took on excessive leverage during 2021 and 2022,” Ferrari said in the press release. “As a result, there’s more mismanagement in the market than we’ve seen in years, and combined with a mountain of deals that have upside-down capital stacks, that creates opportunity.”
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