Why sector specialism counts in multifamily investment

In October 2025, Kristy Heuberger stepped into the role of President of Investment Management at Fogelman. She previously worked at LaSalle Investment Management, serving as Co-Head of the Americas and Head of Asset Management, where she oversaw $30bn AUM.

Founded in 1963 in Memphis, Tennessee, Fogelman specializes in multifamily acquisitions, asset management, as well as property and construction management across the US. It has acquired over 100 multi-unit residential properties totaling more than 30,000 apartment homes.

Reflecting on the first few months in her new position, Kristy tells Jayda Etienne, Deputy Editor of Preqin First Close, about the importance of sector specialism, operational excellence, and expertise when it comes to value creation and navigating real estate investment cycles.  

Tell us why Fogelman, and why now?

Throughout my 30 years in the industry, the through line has been driving performance by building and scaling platforms, developing people, and integrating technology into how companies underwrite, operate, and create value. I joined Fogelman because it offered an opportunity to bring together things that matter to me at this stage in my career: a people-centric culture, a strong market brand, and a ​company ​at a pivotal moment in its strategic evolution.

Fogelman has a reputation as a longstanding, values-driven partner, with six decades of operational excellence in multifamily. The creation of my role as President of Investment Management offers me a rare opportunity to set direction and build something for the long term. 

Fogelman has a strong focus on multifamily assets in the US Sun Belt. What makes this sector attractive, and how do you see it evolving?

We have operated multifamily assets across the South and the Southwestern regions since inception. We still feel strongly about continuing to grow there, given favorable tailwinds – primarily, the outsized population growth compared to other areas of the US, and the robust demand for quality residential housing. What’s attractive about the multifamily sector, especially for institutional investors, is alignment with demographic and economic mega trends. The US is underhoused, home buying is less affordable, and younger generations have less desire to own a home. These factors contribute to an optimistic and resilient outlook for value creation and stable returns in the multifamily space.

Looking ahead, the real estate industry is entering a cycle that’s less about cap rate compression or cheap debt, and more about expertise, nuance, and micro-market understanding. Success will come from strong fundamentals – asset selectivity, deep local knowledge, and established operational excellence. This is a performance-based cycle. Therefore, being a vertically integrated investment manager with operational history and investing success is what differentiates us and will help the business to grow over the long term.

Are you considering expansion in other regions in the US or beyond?

Our investment philosophy is value-add. International expansion is not something we’re targeting right now, because it doesn’t fit our operating model in a way that would allow us to quickly deliver value to our investors or clients. However, we are interested in expanding further within US markets, especially in areas that align with our strategy and expertise. We’re now building the roadmap for Fogelman’s next phase of growth. But I believe sustainable growth is key, and that comes from a clear investment thesis, disciplined execution, and strong platform alignment.

Do investors value specialization in multifamily real estate?

Yes, absolutely. The investor market has shifted in recent years to more specialization, with ‘barbelled’ capital flows favoring the few mega funds and the specialists. Managers with a strong track record, as well as a boots-on-the-ground approach, stand out.

What is your investor base?

It’s mostly institutional investors today. But over the past 60 years, Fogelman has worked with a range of partners, including high-net-worth individuals and family offices. We really value long-term relationships; some of our investor partners have been with us for over two decades. On our property services side, we recently added The Park at Forest Hill community to our portfolio. This was an asset we had owned previously, years ago, and they came back to us because we’re known operators who deliver performance.

Is technology a big part of innovation and operations at Fogelman?

Yes, technology is definitely a part of our workflows. It has to be in today’s environment. I’ve always been a vocal advocate for leveraging technology to enhance decision-making, drive efficiency, and foster innovation. But it’s important not to get enamored by the shiny new thing. First and foremost, technology needs to deliver tangible business outcomes. So, our approach is to adopt the applications that support practical business operations through piloting and testing. To date, this has been more resident-facing at the property management level, which makes sense as proptech has been the catalyst for technological advancements in real estate. Although there’s always scope for further tech integration.

How does the economic and geopolitical climate impact your investment management approach?

Leaders in this industry have been through many cycles. Those with longevity can navigate through it. So, it becomes about being thoughtful, disciplined, and having conviction in your decision-making – whether it’s underwriting, target geographies, or investment strategies. In challenging times, there are opportunities if you can lean on deep in-house experience to pick the right assets that grow over the long term. That’s why investors value experience and sector specialists.

Jayda Etienne is Deputy Editor of Preqin First Close. It’s quick, easy, and free to subscribe here.

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_{The views expressed are the opinions of Fogelman, provided as of December 2025. They do not constitute an endorsement, recommendation, or any other advice, and are subject to change. The content does not necessarily express the views of BlackRock, Preqin, or any of their affiliates. Fogelman is not affiliated with Preqin.}