Hello Friends and Investors,

As we close out 2025 and enter the Christmas season, we find ourselves deeply grateful—both for the trust you continue to place in us and for the opportunities this year has brought to demonstrate what disciplined, long-term stewardship really means.

This has been a year defined by resilience, patience, and strategic progress, culminating in another meaningful win as we closed the Embassy refinance last week. With three important capital events successfully navigated this year, our highest priority initiative—protecting investor capital first—has remained a clear and consistent success.

And looking ahead, we’re optimistic. Not because the market is suddenly “easy” (it’s not), but because we’re positioned for what comes next.

Market Overview

Making Sense of a Bifurcated, Paradoxical Market

If you’ve been watching the market closely, you’ve likely noticed what we’ve noticed: this is one of the more complex real estate moments in recent memory.

A few truths are simultaneously at play:

1. Pricing is still disconnected from reality.
   Sellers continue to anchor to valuations that no longer align with risk, cash flow, or debt markets. Deal volume remains frozen in many pockets, and the few trades that do occur often clear at prices that do not properly compensate for today’s risks.
   
2. Debt has improved—but it’s not “cheap money.”
   Yes, rates are down ~100 bps from Q1 of this year. No, we’re not back to a world where low-cost leverage makes everything pencil. Debt is… better. Not great. Not awful. Just better, and a bit more stable.
   
3. This is a moment for selective offense, not broad activity.
   We didn’t buy a new deal in 2025—not for lack of work (it has been the opposite, in reality), but because the market is generally not currently compensating risk appropriately. We came close on several opportunities, but doing them would’ve required a stretch that violates our long-term principles. Discipline now sets the foundation for outperformance later.
   
4. Fundamentals are softening in pockets of the market.
   Vacancy is slightly up, new supply is being absorbed, and renters are behaving as though they are under pressure, but long-term demand drivers remain intact. This is a challenging moment, not a breaking moment—and challenging moments create opportunity for disciplined operators.

Successful Refinance

Major Update: Embassy Refinance Successfully Completed

Last week, we closed the refinance on Embassy Apartments—a major milestone that reflects months of persistent work, strategic leadership, and commitment to investor stewardship.
The Strategic Win

With the refinance, we're further protecting investor capital and extending the runway for continued value creation. This refinance positions Embassy for additional value-add execution, operational optimization, and a future sale in a more favorable market environment.

The Challenge We Overcame
Our initial refinance lender unexpectedly dropped out this summer (citing market conditions), forcing our team to take full control of the process, lean heavily on industry relationships, and execute a complex refinance under significant time constraints. The outcome was not just a “save,” but an accretive, long-term capital structure.

What CF Capital Continues to Deliver:
Resiliency. Execution under pressure. Capability in complex environments. This year proved what we’ve always said: When things get hard, we get better!

Active Opportunity

Current Opportunity: Embassy Promissory NoteFor investors seeking high income-oriented yield, the Embassy Promissory Note remains open for investment. Key Terms - 12% annual yield, paid quarterly1% origination fee - 1% exit fee - 3-year term (expected full return of capital within ~2 years) - Minimum investment flexible Why Consider This Opportunity? - High-yield debt position backed by a strong, cash-flowing asset - Income-oriented structure in a low volatility debt position - Well-suited for accredited or sophisticated investors (self directed IRA funds eligible) and small family offices - Aligned with our broader long-term capital plan for the asset This is available on a first-come, first-served basis.

Click here to request details or schedule a call.

What We're Reading

The Science of Scaling   by Dr. Ben Hardy A powerful reminder that incrementalism equals stagnation. The path to meaningful growth—whether in business or investing—is paved with "impossible," transformational goals. As we head into our annual company offsite next week, this message resonates deeply:  Impossible goals transform thinking and behavior that incremental goals never will.

Quote of the Month 

“A culture of discipline is not a principle of business; it is a principle of greatness.” — Jim Collins

Closing Thoughts

2025 was a year of proving our principles: Protect capital. Execute with discipline. Build for the long term.
We’ve navigated complexity, overcome obstacles, acted with patience, and positioned ourselves for an exciting 2026 and beyond.
Thank you for your trust, your partnership, and your continued belief in our mission.
From our family to yours, Merry Christmas and Happy Holidays.
We look forward to building a powerful year ahead—together.

In Partnership,
Tyler & Bryan

Hello Friends and Investors, At CF Capital, our mission as fiduciaries is clear: protect capital first, then scale it meaningfully. Real estate is a long-term asset class, and so is our mindset. This year, we have not acquired a new asset — not from inactivity, but from disciplined selectivity. The market remains out of alignment in many pockets, and we believe the patience we exercise today will translate into compelling opportunities tomorrow. Market Overview

Market Perspective Underwriting Discipline & Operational Excellence Matter More Than Ever The most successful investors in this part of the cycle are not the most aggressive — they are the most disciplined and operationally capable. In a market where debt costs, seller expectations, and capital flows are still normalizing, the path to outsized returns is forged through:Conservative and reality-tested underwritingOperational mastery, not financial engineeringPatient capital allocation, not speculation

Operational Performance — A Proof Point Our disciplined operating approach is delivering real results. Over the past two years since our management transition in 2023:T-3 NOI Annualized Growth: +51% T-12 NOI Growth: +31%Execution matters — and it compounds. These results underscore why we obsess over operations, resident experience, and expense discipline. In an environment where many operators are reacting, we are proactively strengthening asset performance and cash flow positions. Active Opportunity

Short-Term Opportunity - 12% Fixed ReturnThere are a limited spots available in a short-term investment opportunity: a 12% annual yield Promissory Note secured by Embassy Apartments, a 247-unit multifamily community in Evansville, IN. This short-term debt investment is structured to provide both attractive income and downside protection: Promissory Note Key Features:Coupon & Term: 12% fixed annual rate, paid quarterly; principal repaid upon refinance into long-term debt or sale (expected within ~2 years, with flexibility up to 3 years). Note includes 1% origination fee and a 1% exit fee. Invest With Confidence: The Promissory Note is secured by Embassy Apartments, a 247-unit multifamily community in Evansville, IN. Limited Spots Available!

INVEST NOW

Leadership & Vision

We are stewards of capital and stewards of your trust. Our long-term orientation isn’t just philosophy — it's behavior. We will not compromise underwriting discipline. We will not force a deal to satisfy a calendar or narrative. We invest when the risk-adjusted reward is clear and compelling — and that moment is drawing closer. When the window opens, we will be ready.

Educational Corner: What ‘Disciplined Underwriting’ Means TodayIn this market, investor protection starts with conservative and realistic deal modeling. We continue to hold firm to:Basis below replacement cost — structural downside protectionPositive leverage — deals must cash-flow and accrete value on day oneModerate, data-supported assumptions — no aggressive rent growth stories, no heroic exit cap assumptionsA good deal today must work in today’s environment — not require tomorrow’s optimism.

Team News

We are thrilled to share two positive updates: 🏢 Acquisitions Team Expansion We are in the final stages of adding a key acquisitions team member — a deeply exciting step as we prepare to lean into market opportunities. Announcement coming soon. 👶 Celebrating Family Congratulations to Angela Blankenbaker, Regional Property Manager, on welcoming twin grandsons this month! Angela’s leadership and dedication continue to elevate our communities and support our residents — please join us in celebrating her growing family.

Featured Articles

Multifamily investment is rising in 2025 as Nashville and Midwest cities lead with strong fundamentals, affordability, and job growth. Multifamily real estate is regaining strength in 2025. After two years of declining values, prices are trending upward. This shift is driven by rising rents and a more favorable interest rate outlook. As a result, investors are returning to the market — especially in affordable and stable metros.... [Read → HERE]

Quote of the Month

"Gratitude is not only the greatest of virtues, but the parent of all others."  - Cicero

The market is evolving, clarity is increasing, and disciplined operators will be rewarded. We’re grateful for your partnership and trust — and we look forward to deploying capital prudently as this next phase unfolds. In Partnership, Tyler & Bryan