Early speaker responses to pressing questions in multifamily

What trends are you seeing in tenant demand, and how are you positioning your properties to stay competitive in today's market?

At Sable Edge Management, we’re observing a noticeable shift in tenant preferences toward flexible living spaces, upgraded amenities, and tech-integrated properties. Many tenants—especially younger professionals and remote workers—are prioritizing high-speed internet, secure package delivery, and community features such as co-working spaces or fitness centers. Additionally, there’s growing demand for sustainability-focused upgrades, including energy-efficient appliances and smart home systems.

To stay competitive, we are proactively investing in modernization efforts across our portfolio. This includes renovating interiors, enhancing curb appeal, and upgrading common areas. We’re also refining our digital leasing process to offer virtual tours, online applications, and 24/7 resident portals—ensuring a seamless and responsive customer experience.

What best practices are you using to successfully manage delinquencies and collection loss?

Managing delinquencies starts with proactive communication and tenant screening. We utilize data-driven screening tools to assess tenant reliability and closely monitor rent payment trends through our property management software. For at-risk tenants, we engage early with personalized outreach and structured payment plans to avoid escalation.

In cases where intervention is necessary, we rely on a firm but fair collections process—balancing legal protocols with empathetic tenant engagement. Additionally, we leverage renter’s insurance and rent guarantee programs to protect against collection loss. Regular training for our property teams ensures consistency and compliance with all fair housing and eviction laws.

Are commercial to multifamily conversions a viable option for distressed building owners?

Potentially depending on the building lay out, we saw a deal where it was a short and long building which allowed for significant window access which is attractive, many office / industrial conversions struggle due to the significant amount of interior space that has to be addressed.

What kind of refinancing won't you do?

We are generally open minded to all types but where we struggle is when we see deals that the senior loan debt yield is below the area cap rate, a recent example, sponsor came to us to help restructure his capital stack in an area in Texas where cap rates range from 5.5% to 5.75% but the senior loan was at 5.1% debt yield. In a case like that it is difficult for us to come in behind the senior and add more capital pushing us into the 4%’s.

What trends are you seeing in tenant demand, and how are you positioning your properties to stay competitive in today's market?

The biggest issue we see is in areas where there is a flood of new assets and tenants hop from one asset to the next where they can arbitrage 2-3 month concessions on newer assets. Sponsors therefore are left to continue offering high concessions to retain renters.

Why is private credit particularly appealing to middle-market sponsors?

(i) Given the flexibility and ease of use of private credit it provides an attractive alternative to sponsors seeking leverage for acquisitions; (ii) Mezz and Pref is easily attached to deals-offering higher leverage solutions; (iii) refinancings that don't quite meet the previous last dollar can easily be addressed with private credit plus Mezz.

Are commercial to multifamily conversions a viable option for distressed building owners?
Yes, in select markets. We’ve seen conversions pencil well when the acquisition cost is low enough and zoning supports residential use. They're especially viable when combined with tax exemption strategies or affordable housing incentives.

What kind of refinancing won't you do?
We won’t pursue refinancings that jeopardize affordability commitments, impose excessive prepayment penalties, or involve partners unwilling to align on long-term affordability.

What kind of risks have you recently mitigated that will improve your income/expense amount?
We’ve renegotiated vendor contracts portfolio-wide, added onsite services that qualify for insurance savings, and secured fixed-rate debt to avoid interest rate volatility.

What trends are you seeing in tenant demand, and how are you positioning your properties to stay competitive in today's market?
Demand is strongest for affordable, well-located units with basic amenities. We’re investing in safety, and expansion workforce housing.

What best practices are you using to successfully manage delinquencies and collection loss?
Early intervention, flexible repayment plans, financial literacy resources, and partnering with nonprofits for rent assistance have proven effective.

How are you leveraging technology and AI to improve operational efficiency and reduce costs?
We’re exploring AI-based maintenance triage, chatbots for leasing inquiries, and predictive analytics for rent collection risk and utility usage.

Why is private credit particularly appealing to middle-market sponsors?
Speed, flexibility, and a willingness to structure around unique deals—especially in tax-exempt structures or transitional assets—make private credit a strong fit when traditional lenders step back.

How are you handling vendor relationships and contract negotiations to control expenses and ensure high-quality services?
We centralize procurement across the portfolio, vet vendors carefully, and push for performance-based contracts. Long-term partnerships are rewarded with exclusivity when they deliver.

How are you dealing with an increase in efficient bad actors in the cyberworld?
We’ve increased staff training, enforced two-factor authentication everywhere, and brought in outside audits on our systems.

Do you have in-house, outsourced solutions or both?
Both. Core asset management and compliance are in-house. Legal, specialized IT, and some construction oversight are outsourced to trusted partners.

What is your favorite movie?
Moneyball. It's about seeing value where others don’t, betting on fundamentals, and building a team that changes the game—which pretty much sums up what we’re doing at Opportunity South Carolina.

Are commercial to multifamily conversions a viable option for distressed building owners?

These are a viable option, but in limited circumstances. It’s tempting to take for granted that an office building with nice bones or great location can be easily converted to residential – especially without incentives or subsidies. If that were the case, developers would be doing these more frequently.

What kind of refinancing won't you do?

We try to stay away from pref equity or mezz debt, as a way to make a deal work. This can be devastating to our investor friends at the common equity level.

How are you leveraging technology and AI to improve operational efficiency and reduce costs?

We are in early stages of learning and implementing AI solutions, but we are very focused on using AI to eliminate the repetitive tasks that distract our people from their highest and best work.

How are you dealing with an increase in efficient bad actors in the cyberworld?

Our IT director and staff meet with us routinely about these risks and they can explain this much better than me.

Do you have in-house, outsourced solutions or both?

Both.

What is your favorite movie?

If we’re talking classic trilogies or serials, I’d say The Hangover or Bad Boys. Remember the Titans would be in the conversation, too.

Are commercial to multifamily conversions a viable option for distressed building owners?

Too expensive in our experience.

What kind of refinancing won't you do?

Floating rate debt and bridge financing.

What kind of risks have you recently mitigated that will improve your income/expense amount?

Firestops, water saving devices, captive insurance and fraud mitigation.

What trends are you seeing in tenant demand, and how are you positioning your properties to stay competitive in today's market?

We are seeing lower rents.

What best practices are you using to successfully manage delinquencies and collection loss?

Income verification on the front end and Yardi CRM/

How are you leveraging technology and AI to improve operational efficiency and reduce costs?

Ai chat bots used on prospects and AI to analyze.

How are you handling vendor relationships and contract negotiations to control expenses and ensure high-quality services?

In-house focus with dedicated procurement staff and leverage our size.

How are you dealing with an increase in efficient bad actors in the cyberworld?

Trainings on random phishing and constant internal monitoring.

Do you have in-house, outsourced solutions or both?

Both.

What is your favorite movie?

Godfather II.

Are commercial to multifamily conversions a viable option for distressed building owners?

Sometimes. But it’s not a blanket solution for distress. If the zoning, cost basis, and local demand align, it can work—but it’s more redevelopment than rescue. We’ve explored a few, but it takes real discipline not to let the “conversion hype” override the fundamentals.

What kind of refinancing won't you do?

Anything that just kicks the can. If a refi only works by assuming rates magically drop or rents spike, it’s a HARD PASS. We steer clear of band-aid debt—especially structures that sacrifice long-term optionality for short-term relief.

What kind of risks have you recently mitigated that will improve your income/expense amount?

We ran a full portfolio ops audit, renegotiated bloated vendor contracts, property tax savings solutions, bundled insurance for better leverage, and retooled maintenance schedules to cut reactive CapEx. It’s added real lift to margins and reduced volatility.

What trends are you seeing in tenant demand, and how are you positioning your properties to stay competitive in today's market?

It’s about convenience, consistency, and control. Renters want speed, service, and seamless tech. We’re seeing huge pull toward larger MF apartments and BTR houses for those very reasons—more space, fewer headaches, and a frictionless experience. Our strategy is to be the brand that delivers that better than anyone in our markets.

What best practices are you using to successfully manage delinquencies and collection loss?

We treat it like early-stage customer service. Proactive outreach via text, real human connection, knocking on doors, and tight internal systems. We don’t wait for late fees—we engage early, create paths to resolution, and track it daily.

How are you leveraging technology and AI to improve operational efficiency and reduce costs?

We’re embedding AI across leasing, maintenance, and analytics as both users and strategic investors. Chatbots handle initial leasing flow, predictive models guide CapEx planning, and machine-learning tools help us forecast collections and expenses with real precision. Efficiency without losing the human touch, hence our investments in SymmetRE, CoSign, Visitt, etc.

Why is private credit particularly appealing to middle-market sponsors?

Because speed matters. Private credit brings flexibility, structure creativity, and real-world understanding. In a tighter lending market, it’s a critical piece for middle-market operators with strong track records and a clear story.

How are you handling vendor relationships and contract negotiations to control expenses and ensure high-quality services?

We treat vendors like strategic partners — but we negotiate like owners. Scale gives us leverage, and clear SLAs ensure quality. We also cross-train site teams to audit vendor work — trust but verify.

How are you dealing with an increase in efficient bad actors in the cyberworld?

They’re getting smarter — so are we. We’ve upped our game with zero-trust protocols, MFA across the board, team-wide security trainings, and regular third-party audits. In today’s world, cyber hygiene is just as important as physical security.

Do you have in-house, outsourced solutions or both?

Hybrid model. We keep strategy, asset & investment management, underwriting/financing/sizing, and culture in-house. Property-level execution is local — but tightly aligned and performance-monitored. The mix keeps us nimble and focused.

What is your favorite movie?

The Big Short. Sharp, sobering, and a reminder that conviction, timing, and thinking differently can be a massive edge.