It isn't only the Sunbelt region attracting apartment capital. You can now add Cincinnati, Columbus, Dayton, Lexington and Louisville to the list of markets that are garnering investor attention. CRE start-up Vision & Beyond Capital Investment is targeting these Midwest markets with plans to invest $250 million over the next several years.

These cities, according to the firm's CEO Stas Grinberg, have attractive growth dynamics, including population growth, job growth and favorable cost of living. In Columbus, Ohio, for example, there are 50 people moving to the city each day. In addition to the strong demand drivers, Grinberg also says that these are business-friendly cities. "We invest all over the Midwest. I like that the regulatory environment is favoring developers, and I am not starting in a market where I am competing with giants without any voice or influence," he tells GlobeSt.com.

In the next three years, Grinberg plans to grow the portfolio to 100,000 units. To accomplish that goal, the company is focusing on scale. "I am selling all of my small portfolio or properties below 60 units," says Grinberg. "As I grow, I want properties with more control that have maintenance and management onsite. We are also expanding the vertical integration of the company." That includes in-house management, maintenance and material suppliers, which Grinberg says will help to drive down costs.