1970s Vintage Multifamily: The Value-Add Repricing Has Slowed, CRE CLOs Show

Trepp analyzed 1,419 re-securitization pairs of 1970s-vintage multifamily properties across 1,299 unique properties from 2021 through May 2026, finding a median value increase of 63.08% ($9.0 million) with median NOI growth of 39.38% and 81 basis points of cap rate compression, though value gains have slowed significantly after 2022 with median increases declining from 76% in 2022 to 38% in 2026 and cap rate compression largely disappearing. The strongest valuations occurred in Sun Belt markets like Houston and Phoenix (101-103% increases) and when properties transitioned from conduit loans to CRE CLOs (313% median increase), but properties already in CLO structures showed minimal re-pricing gains, suggesting future value growth will depend more on operational improvements than market-wide multiple expansion.