Continental Properties capped off the final quarter of 2025 with five groundbreakings and more than $700 million in refinancings and construction loans. The developer, owner, and operator of middle-income suburban rental housing is carrying that momentum into 2026.
Some of the fourth quarter highlights for Continental include:
- The refinancing of two separate five-property portfolios for over $500 million;
- The closing of $245.5 million in construction loans;
- The nearly $80 million sale of the Springs at Pleasant View community in Madison, Wisconsin;
- The groundbreaking of nearly 1,500 multifamily units in Florida, Georgia, Illinois, Kentucky, and Wisconsin; and
- The launch of its Real Estate Development Fund IV, which will develop market-rate suburban communities in undersupplied markets across the Southeast, Midwest, and Mountain West.
“As we move further into 2026, we look forward to carrying over our fourth quarter momentum, and we expect to make substantial advances across multiple business verticals,” says Ed Madell, executive vice president and chief financial officer of Continental Properties. "Continental’s fourth quarter performance demonstrates our ability to execute swiftly and effectively—from securing fresh financing for our existing properties to breaking ground on new communities that will serve growing suburban markets in dire need of housing optionality. With $2 billion in transactions completed in 2025, we remain poised to capitalize on the continued demand for high-quality middle-income rental housing.”
Madell shares with Multifamily Executive how Continental is navigating today’s development environment and making deals pencil.
How would you characterize the state of the U.S. multifamily cycle entering 2026?
I view the cycle from three perspectives: operations, development, and transactions. From an operations perspective, the market is still working its way through the supply wave that has been delivering for the last 18 months. There is more pressure to build and maintain occupancy. In the heavily supplied Sun Belt markets, achieving those objectives has come with higher concessions and lower yields. In the Midwest markets, the supply has been more consistent, and we are now seeing normalized rent growth.
From a development standpoint, it remains a challenge to find deals that can meet our underwriting hurdles. Land sellers continue to hold out for values that are at odds with the higher cost of capital and generally sticky construction costs.
From a transaction perspective, we are beginning to see more deals trading. Liquidity slowed in 2023 as transaction volume fell precipitously across all types of investments. In the multifamily space, liquidity has been more challenging to create. Assets that are slower in lease-up or have needed higher concessions to stabilize are taking longer to realize development value, which adds pressure. Already in 2026 we are seeing activity beginning to pick up, which is a positive sign that capital flows will improve.
How is Continental navigating the ongoing challenges in today’s environment?
While there are certainly challenges in the market, we benefit from having a great deal of flexibility. Our stabilized portfolio is generally financed with lower-leverage fixed-rate debt that was secured before the rise in interest rates, allowing us to remain disciplined when determining whether to market assets. On the development side of the business, our financial strength is a key differentiator that has allowed us to continue to attract capital for new projects and refinancing activity. Operationally, our focus has been on balancing the use of concessions to reach our occupancy and lease-up goals. We are also focused on expense control through economies of scale and leveraging technology.
With starts down nationally, how is Continental making deals work?
In today’s environment, getting new deals to pencil is challenging, especially given that we have maintained our rigorous underwriting principles while operating assumptions in many markets have shrunk. Additionally, the cost of capital and cap rates remain higher than they were in 2022. Our geographic footprint remains a strength as we have been able to lean into Midwest markets and find pockets across our other markets.
Tell me more about Continental’s pipeline in 2026.
Last year was a strong year in pipeline building—particularly in Midwest markets. Our access to capital and track record of deal execution give us an advantage when competing for new sites. While it is always difficult to say at this time of the year, we expect to start approximately a dozen new projects in 2026.
What markets are most attractive to Continental today and why?
We have a deep, tenured market research function that looks across our footprint to identify the best opportunities for new development. Today, Midwest markets have the most predictable rents as supply has been more constant over the last five years. In other areas, we are leveraging our market research team to find pockets where we feel the supply pipeline is limited or where we feel that it is likely to be absorbed in the next 12 to 18 months.