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IMG Principals Discuss Positioning Through the Cycle

Woodland Hills, CA – September 29, 2026 – Every real estate cycle feels unique while you’re living through it. Viewed across more than 25 years, the pattern is familiar. Values rise, overshoot, correct, and recover.

The Green Street Property Price Index shows four distinct phases since 2005: the pre-crisis expansion, the Global Financial Crisis, the post-pandemic surge, and the 2023–2026 reset in interest rates and new supply. Each downturn felt permanent at the time, although none were.

The last three years of the cycle have been challenging for two key reasons. First, interest rates rose faster than at any point in four decades. Borrowing became more expensive, cap rates rose, and property values fell. Second, record new apartment supply began flooding our markets. Income growth stalled as lower rents and higher vacancy signaled a more competitive operating environment as new buildings leased up.

Recovery has an Order

Markets recover first. Values recover second. Equity recovers last.

The sequence matters. Headlines improve long before we see gains in our property values. That’s why we measure progress by fundamentals, and benchmark each property against its local competitive set. Recovery takes time and money. Time lets operations heal as new supply is absorbed, rent rolls rebuild, and NOI stabilizes.

Money sets value. Debt and equity become more available as the cost of capital stabilizes. When cap rates compress, values follow. The Fed’s September rate increase is a reminder that the path won’t be linear. As Kevin Crook noted this month, we watch the 10-year Treasury more than the Fed, and we meet the market where it’s at.

Controlling What We Can

We can’t set interest rates or affect construction pipelines. We can run our properties well. That’s our focus. Every IMG property is managed by Parktown Living, our affiliated property management company. Parktown Living operates to one standard across every market. Across the portfolio, we are performing at or above our competitive sets, with 92%+ average physical occupancy paired with high collections as of 9/28/26.

Selling Strategically

Since 2010, IMG has completed 28 full-cycle investments. Those sales generated an average 26% net IRR and a 2.0x net equity multiple on $900M in sale proceeds.

Our average hold period across the 28 realized deals is 3.6 years. Some assets warrant a longer hold, to finish the business plan or to wait out a soft market. Where selling would have locked in a loss over the past few years, we extended. We have also continued to sell. Three recent sales that closed during the reset returned 1.8x–2.9x to investors after holds of five to ten years. Apartment investors who do best are the ones who stay patient when the headlines turn. Our job is to earn that patience with operations, transparency, and results.

Looking Ahead

We expect recovery to be steady, not sudden. Fundamentals are beginning to improve and will lead the turnaround. Values and equity will follow. We’re positioning every asset to benefit as that happens, and we’ll keep you informed along the way.

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About Investors Management Group

Founded by Neil Schimmel, IMG is a nationally acclaimed real estate investment and asset management firm specializing in apartment communities. IMG’s mission is to create vibrant, sustainable living environments through strategic investments and a commitment to community development. With a portfolio of nearly 5,000 units and network of over 1,000 accredited investors, we strive to enhance the living experience for our residents and support communities within local neighborhoods. IMG’s culture is characterized by innovation and a steadfast commitment to creating value in multifamily investments. Learn more

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