Jenn Elliot

“In October 2020, we started fielding an insane number of calls from huge investors that had never invested in Sunbelt markets,” Everett says.

The disruption caused by the pandemic made off-market transactions more attractive for both investors and potential sellers.

Timberland Partners sees an opportunity for higher returns in markets off the beaten path, especially after its experience in the pandemic.

Some firms are augmenting their in-house acquisition efforts by working with third-party firm that leverage data to help find deals.

“When we first started, we were very granular… But we should have bought everything and taken every opportunity because it’s all making money now,” says John R. Williams, of Avanath Capital Management.

The proposed expansion would represent an increase of roughly 587 percent to the program’s current size.

Strong growth prospects and less intense competition is leading cross-border investors to secondary and tertiary markets.

Investors are still buying properties in markets prone to wildfires, floods and hurricanes, betting on insurance and mitigation measures for protection.