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In 2021, apartment investors were flocking to Sun Belt meccas like Phoenix and pushing cap rates to below 3% — previously unfathomable levels. 

At that time, Mike Green, CEO of Virtú Investments, decided he’d seen enough. The Larkspur, California-based multifamily investment firm, which taps into high-net-worth individuals for equity, decided to sell its Sun Belt assets and invest on the West Coast — an area that investors were fleeing at the time. 

“We were more concerned than others about whether Sun Belt markets could absorb 7% to 12% of their existing stock year after year,” Green told Multifamily Dive.