David Blatt: We have been working for quite some time with developers and operators, particularly in the multifamily space, lining up their capital needs. Slowly and surely, we started to cultivate relationships with equity groups, particularly family offices and private investors who would participate in the multifamily deals that we were presenting to them through the investment banking arm, and they were starting to talk to us about potentially creating investment strategies to pursue these types of opportunities. That prompted us to become certified as an investment advisor, which allowed us to take on more of an investment management role. So we've broadened our focus.

GlobeSt.com: Looking at the investment mandate and the opportunity sets that it presents, what are some of the factors that CapStack is focusing on to provide the best fit for your clients?

Blatt: The focus for this particular mandate is to identify multifamily opportunities in the Southeast, and particularly rising markets within that region. In terms of the asset class itself, we're looking for class B and C properties that have some kind of repositioning story. The investment thesis is to identify areas where there's more workforce housing in particular, where we can go in and enhance value from the point of acquisition.

GlobeSt.com: From the standpoint of rising markets, the technology sector is one area where employment is growing outside of the hubs. Certainly, the Southeast would be a region that offers a great deal of repositioning opportunity for workers in that sector.

Blatt: There are three ingredients that we're very keen on in terms of drivers. It's a combination of a technology presence, an educational institution presence and an entertainment presence, whether it's an active downtown, music or something that is going to draw in and keep a younger, upwardly mobile population. Those are strong drivers that we think are anchoring the markets that we're pursuing.

GlobeSt.com: In terms of next steps, additional investment mandates—maybe targeting other regions of the country—would seem logical, along with additional tailored solutions that you're going to be rolling out. What are some of the basic themes that you have in mind?

Blatt: It really comes down to execution. A lot of it is going to be driven by the appetite of investors, in terms of their exposure to particular asset classes and strategies. We're developing a self-storage strategy behind this, and we're developing a credit strategy as well.

NEW YORK CITY—Having recently launched an investment advisory platform to serve its diverse range of clients, CapStack Partners now has a mandate to put that platform to use. The New York City-based investment bank and investment advisor has been awarded the mandate to acquire value-added and opportunistic multifamily assets across the Southeast. It's the first of a series of tailored solutions CapStack plans to roll out for clients.

“Our intention has always been to manage our clients' investments throughout their respective lifecycles, and today we are more than capable of doing just that,” says CapStack CEO David Blatt. To that end, investment veteran Ben Inman has joined CapStack as portfolio manager to oversee the acquisition and asset management of the firm's multifamily acquisitions.

GlobeSt.com spoke with Blatt for additional insight into CapStack's new mandate and the ongoing development of its range of services. An edited version of that conversation appears below.

GlobeSt.com: Tell us how this mandate represents a logical next step in the evolution of the CapStack platform.

David Blatt: We have been working for quite some time with developers and operators, particularly in the multifamily space, lining up their capital needs. Slowly and surely, we started to cultivate relationships with equity groups, particularly family offices and private investors who would participate in the multifamily deals that we were presenting to them through the investment banking arm, and they were starting to talk to us about potentially creating investment strategies to pursue these types of opportunities. That prompted us to become certified as an investment advisor, which allowed us to take on more of an investment management role. So we've broadened our focus.

GlobeSt.com: Looking at the investment mandate and the opportunity sets that it presents, what are some of the factors that CapStack is focusing on to provide the best fit for your clients?

Blatt: The focus for this particular mandate is to identify multifamily opportunities in the Southeast, and particularly rising markets within that region. In terms of the asset class itself, we're looking for class B and C properties that have some kind of repositioning story. The investment thesis is to identify areas where there's more workforce housing in particular, where we can go in and enhance value from the point of acquisition.

GlobeSt.com: From the standpoint of rising markets, the technology sector is one area where employment is growing outside of the hubs. Certainly, the Southeast would be a region that offers a great deal of repositioning opportunity for workers in that sector.

Blatt: There are three ingredients that we're very keen on in terms of drivers. It's a combination of a technology presence, an educational institution presence and an entertainment presence, whether it's an active downtown, music or something that is going to draw in and keep a younger, upwardly mobile population. Those are strong drivers that we think are anchoring the markets that we're pursuing.

GlobeSt.com: In terms of next steps, additional investment mandates—maybe targeting other regions of the country—would seem logical, along with additional tailored solutions that you're going to be rolling out. What are some of the basic themes that you have in mind?

Blatt: It really comes down to execution. A lot of it is going to be driven by the appetite of investors, in terms of their exposure to particular asset classes and strategies. We're developing a self-storage strategy behind this, and we're developing a credit strategy as well.