Flaherty: Politics was one of them—trying to understand the new administration's direction. There are certainly pros and cons to it. One positive is that economically there is certainly an emphasis and focus from the Trump administration that could potentially extend the multifamily cycle a little longer. Interest rates are always the topic of discussion at any annual event certainly, and they've been on the rise and a bit more volatile lately. But this is always part of our underwriting. We will have rate bumps this year, but most of that is accounted for in our numbers, and it will level off, hopefully. Deal flow at this event was a little bit lighter than it had been in the past. Potentially, this had to do with where we are in the cycle—the volume of marketed deals was lighter. It's not concerning at all, just something I personally noticed.

GlobeSt.com: What unexpected things did you learn at the conference?

Flaherty: Nothing, really. For us, the unexpected things that come from this conference are who we meet, new people and new relationships that fuel the pipeline on new deals, whether this year or next. That's the beauty of the conference.

GlobeSt.com: What else should our readers know about your experience at the conference?

Flaherty: Our outlook is still very positive. We're a little unique. We're not a fund, so we have the flexibility to hold short or long term. From a long-term standpoint, we really still believe in the market. We believe it still has legs to it, and we're still in buy mode right now. Every deal has a different business plan—some are short-term exit with heavy value add, while others are more long-term strategy that's more yield focused—and we believe we could still implement either of those strategies at this stage of the market.

NMHC is a great way industrywide to rekindle old relationships and create new ones in one spot over a three-day period. San Diego is very unique in and of itself, and good things always come from that venue for us—new relationships and new deals.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.

SAN DIEGO—Trying to understand the new administration's direction, with its pros and cons, and a feeling that President Trump's focus could potentially extend the multifamily cycle a little longer were the main themes of the NMHC Conference and Annual Meeting here last month, L5 Investments' Michael Flaherty tells GlobeSt.com. The founder and managing partner of the El Dorado Hills, CA-based firm attended the conference, and we caught up with him to get his views on the takeaways.

GlobeSt.com: What stood out for you at the NMHC Conference or Annual Meeting?

Flaherty: What stood out is there were a lot of people, as always. It's my favorite event from a volume-of-people standpoint, and San Diego is a great venue for the events. I love La Quinta and will miss that, but for the most part, what stood out were the very positive impressions of the economy and industry going into 2017.

GlobeSt.com: What were the major themes running through the conference this year?

Flaherty: Politics was one of them—trying to understand the new administration's direction. There are certainly pros and cons to it. One positive is that economically there is certainly an emphasis and focus from the Trump administration that could potentially extend the multifamily cycle a little longer. Interest rates are always the topic of discussion at any annual event certainly, and they've been on the rise and a bit more volatile lately. But this is always part of our underwriting. We will have rate bumps this year, but most of that is accounted for in our numbers, and it will level off, hopefully. Deal flow at this event was a little bit lighter than it had been in the past. Potentially, this had to do with where we are in the cycle—the volume of marketed deals was lighter. It's not concerning at all, just something I personally noticed.

GlobeSt.com: What unexpected things did you learn at the conference?

Flaherty: Nothing, really. For us, the unexpected things that come from this conference are who we meet, new people and new relationships that fuel the pipeline on new deals, whether this year or next. That's the beauty of the conference.

GlobeSt.com: What else should our readers know about your experience at the conference?

Flaherty: Our outlook is still very positive. We're a little unique. We're not a fund, so we have the flexibility to hold short or long term. From a long-term standpoint, we really still believe in the market. We believe it still has legs to it, and we're still in buy mode right now. Every deal has a different business plan—some are short-term exit with heavy value add, while others are more long-term strategy that's more yield focused—and we believe we could still implement either of those strategies at this stage of the market.

NMHC is a great way industrywide to rekindle old relationships and create new ones in one spot over a three-day period. San Diego is very unique in and of itself, and good things always come from that venue for us—new relationships and new deals.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.