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Karlin Conklin joins Top Executives at Marcus & Millichap’s “Charting the Course” Forum on the State of Southeast Multifamily
Woodland Hills, CA – March 30, 2026 – The closing panel of the Marcus & Millichap IPA Southeast Multifamily Forum brought together a group of operators, developers, and investors whose collective portfolios span tens of thousands of units across the Sun Belt. Moderated by John Leonard, Senior Managing Director and Market Leader for Marcus & Millichap’s Atlanta office, the conversation was equal parts honest reckoning and cautious optimism, the kind of talk that only comes after a few very difficult years.
Panelists included Karlin Conklin (COO & Principal, Investors Management Group / Parktown Living), Andrew Schwarz (CEO, Audubon Communities), Robert Paul Fransen (President & Managing Partner, Coro Realty Advisors), and Clay Grubb (CEO, Grubb Properties).
Market Fundamentals: The Honest Truth
Panelists agreed this cycle, which started in late 2022, has been challenging. Most metros experienced a glut of post-COVID deliveries and are still working through that supply. The panelists expressed cautious optimism that a slow recovery is underway.
Between 2020 and 2023, construction costs in the Southeast rose roughly 50%. At the same time, apartment valuations fell approximately 35% nationally between 2022 and 2025. The result: new construction that once appraised above $300,000/unit are now valued below $250,000/unit, while replacement cost sits north of $350,000/unit. New construction in most submarkets simply does not pencil.
Secondary Southeast markets came up repeatedly as the more compelling near-term opportunity. Markets like Greenville, SC, Jacksonville, and suburban Savannah saw fewer deliveries, meaning less legacy supply to absorb and a cleaner path to rent recovery.
Those supply dynamics played out in real time across operating portfolios. Karlin Conklin of Investors Management Group and Parktown Living described a challenging winter leasing season, with occupancies dipping into the mid-80s across their portfolio in Raleigh, Charlotte, Atlanta, and San Antonio — and the same story playing out at competing communities nearby.
Conklin set IMG apart from the other companies and described it as specializing in the value-add space. “Historically, we purchased properties needing $7,000-$10,000 per unit in upgrades or enhancements. These improvements allowed us to create better communities and living experiences, and we could raise rents and property values.” For IMG, the model doesn’t work today where the ROI on capital projects doesn’t pencil.
“For the next 12-18 months, we’re focused on stabilizing our portfolio and increasing NOI,” said Conklin. The Atlanta metro has seen values drop an average of 14.4% from 2022 to 2026 due to elevated cap rates and depressed NOIs. “Our portfolio grew income by 7.8% during this period, while total expenses grew by 23%, with an average NOI reduction of 17% during the period. Insurance, property taxes, make ready, and marketing led the expense categories.”
Where IMG & Parktown Living Stands
IMG has not acquired a property since 2022, with the market reset hitting hard enough to pause deal flow entirely. A theme the panel returned to more than once was the shift in hold periods: what was underwritten as a three-to-five-year business plan has stretched to six, seven, or eight plus years across much of the industry. Conklin echoed this, noting that IMG’s current portfolio has been held longer than originally projected. For many investors, holding and forfeiting near-term cash flow is more palatable than selling at a loss. The firm is focused on refinancing its remaining variable-rate debt and managing through to a more favorable exit environment.
In 2023, IMG launched Parktown Living as its in-house property management platform, a direct response to the realization that in a challenging operating environment, asset managers cannot simply rely on third-party operators to protect returns. “We found that we couldn’t get the properties to do what we wanted to as the market went down,” Conklin said. Today, Parktown manages IMG’s portfolio and is expanding into third-party fee management, bringing an investor-first perspective to operations that traditional management companies often lack.
The firm is also embracing AI as a competitive tool. Conklin noted that IMG has begun using Claude (Anthropic) to accelerate data analysis and sharpen decision-making. “AI is allowing us to move more quickly than in the past, and this directly correlates to improvements in the bottom line,” she said.
The Investor Conversation
For firms that raised equity in 2020, 2021, and 2022 with three-to-four-year hold assumptions, the investor communication challenge is real. Distributions that once reached $500,000 to $600,000 per month at some firms have been reduced to a fraction of that as occupancy and market headwinds compressed income.
The panelists were aligned on one thing: transparency is non-negotiable. Quarterly webcasts, honest market updates, and proactive outreach have kept investor relationships intact at firms with a commitment to strong investor relations. The panel also touched on opportunity cost question is also becoming more common from investors: if we recover half our equity today, could we redeploy it somewhere with more upside than simply grinding back to break even?
Development, Supply, and the Road Back
New development has largely come to a halt across the Southeast. However, housing shortfalls estimated at 3.5 million to 8 million units by Freddie Mac and McKinsey respectively are not going away. Panelists noted that the Fed’s rate environment effectively put developers out of business at precisely the moment pent-up demand was building.
The result, as several panelists saw it, is a setup for meaningful rent recovery in markets that have worked through their oversupply. Conservative underwriting is running at 2.5 to 3% annual rent growth exclusive of concessions, but the actual outcome in markets like Nashville, Phoenix, and Austin, which are finally approaching equilibrium, could run considerably higher over the next three years.
For investors willing to commit capital now, the basis argument is compelling. Brand-new stabilized assets are trading at $30,000 to $60,000 below replacement cost in some markets, a spread comparable to or better than what was available coming out of the Global Financial Crisis. The keynote perspective was direct: those waiting for certainty before investing may already be late.
Key Takeaways
- The Southeast multifamily market is absorbing peak-cycle oversupply; most panelists believe the worst is behind the major metros, with the summer 2026 leasing season a key proving ground.
- Stated rents can be misleading, given free rent and concessions can depress collections by 3 to 4%. In addition, historically high bad debt and elevated AR are compressing actual net income across the region.
- Hold periods have stretched industry-wide from the original 3-to-5-year assumptions to 6, 7, or 8 years, requiring a fundamentally different management mindset.
- New development is largely on hold: build costs exceed $350/unit while exit values remain below $250/unit in most submarkets.
- The supply pullback is building the foundation for rent recovery, particularly in markets approaching post-oversupply equilibrium.
- Investor transparency and consistent communication are essential; firms that maintained trust through the downturn will be best positioned for the next growth phase.
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
About Parktown Living
Parktown Living is a multifamily property management company built on an ownership mindset. Founded by the principals of Investors Management Group (IMG), the firm was created to address the misaligned incentives common in traditional property management models. Parktown Living combines hands-on execution with institutional standards to deliver strong resident experiences, transparent reporting, and consistent performance for owners. The company manages communities across Texas, Georgia, and the Carolinas, with a focus on protecting asset value and driving long-term results. Learn more