Making a significant move in the multifamily investment space, industry veteran Matt Ferrari officially launched PXV Multifamily, a private investment firm poised to acquire up to $2 billion in assets over the next 36 months. With a focus on both middle-market value-add properties and institutional-quality opportunities across the United States, PXV stands ready to capitalize on emerging market trends and challenges. Ferrari is an active member of the Urban Land Institute and the Multifamily Product Council (Blue Flight).
Urban Land: What do you consider the current status of apartment investing? Are there any specific trends you’re seeing?
Matt Ferrari: It’s an exciting time to be an apartment investor. After a period of significant rent growth and cap rate compression, we now see opportunities emerging in a market with some mismanaged deals. The focus today is less on geographic classifications, like core or core plus, and more about the specific deal itself. Each property has its own story, depending on the seller’s motivations and the potential for value addition. I emphasize the three pillars of value-add: renovating units, implementing institutional property management, and leveraging technology. The key is identifying properties where you can add value in at least one—[and] ideally all three—areas.
UL: When evaluating investments, how do you prioritize value-add strategies?
Ferrari: We approach this from both top-down and bottom-up perspectives. Our data analytics team plays a crucial role in market research, while our acquisitions and asset management teams are out in the field fostering relationships. This business is relationship-driven; knowing owners, brokers, and lenders is essential. You must be active in the market, understanding the nuances of submarkets to uncover opportunities.
UL: What do you think about the demographic trends influencing apartment demand?
Ferrari: Household formation is the primary driver for apartment demand. This can stem from young adults moving out of their parents’ homes, population growth from relocations, or increasing wages enabling couples to afford their own apartments. Job growth in markets is critical, as is wage growth, which helps individuals afford their own living spaces, rather than relying on roommates.
UL: Can you highlight any specific markets you believe are currently undervalued?
Ferrari: I’ve covered much of the country, and rental growth varies between markets. The Sunbelt is still adjusting to previous supply influxes and may have muted rent growth compared to some coastal gateway markets. Rent growth is more based on the market and submarket. Returns are deal-specific. The focus should be on the individual properties, since opportunities exist across varied markets. With robust data analytics, we can pinpoint markets poised for growth.
UL: As you build your firm, what type of team and leadership strategy do you envision?
Ferrari: Passion for the business is critical. Success is about doing a lot of small things right. I look for individuals who are enthusiastic about the process of underwriting deals and executing operational plans. While intelligence and intuition matter, the driving passion for the industry is what sets successful teams apart. I want to work with people who share my love for the business, enabling us to achieve great things together.
UL: Can you share a bit about your background? How did you become interested in this line of work?
Ferrari: I got started somewhat serendipitously. While attending Skidmore College, I was mentored by a local real estate professional and became intrigued by the field. After a stint in e-commerce with my brother, I pursued an MBA at Georgetown. Initially, I had no idea what a career in real estate could look like. My first job was a rotational program with Archstone, where I gained hands-on experience in property management. This background led me to a position in acquisitions, where I learned the intricacies of the business.
UL: With your extensive experience, what would you say has been your greatest achievement?
Ferrari: I’m most proud of the people I’ve developed and nurtured throughout my career. Many have gone on to do great things, and I take pride in the pipeline of talent cultivated under my guidance. Yes, I have successfully acquired significant assets, but the legacies left behind in the form of skilled individuals are what I cherish most.
Matt Ferrari recently summited Mount Everest. He’s pictured here at the summit with his guide. He signed the deal with BroadVail Capital Partners to capitalize his new firm at Base Camp on his descent. The challenging mountain also inspired the name of his new company, “PXV” being the name for Mount Everest when it was first surveyed.
Matt Ferrari/PXV Multifamily
UL: You’re known for your adventurous spirit outside of work, including climbing Mount Everest. How does that experience translate into your professional life?
Ferrari: Climbing Mount Everest may seem unrelated to real estate, but both require a mindset focused on processes, preparation, and the ability to take calculated risks. I realized that if you surround yourself with individuals who push boundaries, you begin to believe you can do the same. My climbs have taught me persistence and strategic planning—traits that are crucial in multifamily investments, as well.
