The multifamily acquisition market is splitting into two distinct channels with very different economics, according to one acquisitions executive who has closed over $300 million in transactions. While institutional capital typically targets properties marketed publicly through major brokerages, a growing group of operators is finding better pricing and deal structures by negotiating directly with owners through off-market channels.
“The best deals, in my opinion, are off-market deals,” says Evguenia Kapchii, Head of Acquisitions at Société immobilière Bélanger, which owns and manages nearly 4,000 multifamily units across Quebec. Kapchii explains that off-market transactions offer advantages beyond just price. “It does not distress the current people who work at the property,” she says, noting that on-site staff and long-term tenants often worry about job security and community disruption when a property is publicly listed for sale. By negotiating privately, these concerns are minimized.
This approach challenges the industry’s reliance on formal broker-led processes designed to maximize seller proceeds through competitive bidding. While public marketing can generate higher prices, Kapchii argues it often pushes values above what property fundamentals support.
The Public Market Premium
Kapchii reports that properties marketed through major brokerages such as CBRE, JLL, or Avison Young face a structural pricing premium. “When there is a public trade,” she explains, “the broker gives you the indicators – what ballpark his client is looking at, the cap rate – and you try to be in the running by matching those numbers. They always take the three highest letters of intent.”
This dynamic forces buyers to offer top-dollar up front. “If you really want the asset, you have to bid very high from the start,” Kapchii says. Even though due diligence may uncover issues that warrant a price adjustment, the initial process establishes a floor price based on market competition rather than actual value.
She points to a recent example: her firm acquired 1,057 units in January 2025 through a broker process that drew 15 competing offers. “It was crazy,” she recalls. While her company won with what she describes as “the best and most solid offer,” she believes the competitive environment likely reduced returns compared to what an off-market deal could have delivered.
The Off-Market Advantage
In contrast, Kapchii says direct negotiations with property owners allow for more flexible deal structures and realistic pricing. “There is much more leeway to negotiate and end up with a better deal,” she says, regardless of whether a broker is involved.
The benefits go beyond economics. Off-market transactions avoid the disruption that public marketing creates for tenants and staff. They also make it easier to discuss seller motivations, timing, and deal structure – factors that can add value for both sides but are typically lost in a bidding war.
“Since it’s a succinct and quiet conversation, I find that it always ends up being a greater transaction than when it’s thrown up to the public. It’s also shorter,” Kapchii says.
She describes a particularly complex deal involving the St. Regis building in Montreal, which the same family has owned for 54 years. Kapchii spent two and a half years building a relationship with the owners, navigating family disagreements and emotional attachment. The persistence paid off. “I made it work,” she says. “Brokers even called me asking how I did it – they’d been chasing the family for years.”
The Relationship Infrastructure
Succeeding with off-market deals requires a different skill set than competing in public broker processes. Kapchii says it depends on market presence, relationship building, and the ability to move quickly – strengths that favor local operators over large institutions.
“A lot of people forget that we are all human at the end of the day – there are people on the other side of the transaction,” Kapchii says. “You have to understand their perspective as well. Sometimes a deal won’t work out, but if you handle it respectfully, they’ll come back to you later.”
Kapchii, who has a bachelor’s degree in psychology, describes her approach as relationship-driven. “Maybe it’s my psychology degree speaking, but I love to vibe with people. For me, reading people and understanding them is fundamental.”
Institutional Disadvantage
Off-market strategies are particularly challenging for REITs and larger institutional investors. Kapchii, who previously worked in acquisitions for InterRent REIT, highlights the disadvantages: “Having worked for a REIT and now for a private company, it’s much simpler to do acquisitions privately. I make one phone call to my boss. In a REIT, you have to talk to your VP, then the president, who presents to the board, and then it goes back and forth. It takes a lot of time.”
Speed is critical in off-market transactions. Sellers value certainty and simplicity, often preferring a quick, reliable close over squeezing out every last dollar. Kapchii’s current company, a sole-owner private operator, can make acquisition decisions quickly, while formal governance and approval processes slow institutional investors.
The Société immobilière Bélanger Model
Société immobilière Bélanger has built its acquisition strategy around off-market deal flow and direct relationships with owners. Founded in 2008, the company has grown to nearly 4,000 units across Quebec. Kapchii credits the firm’s reputation with both conventional lenders and the Canada Mortgage and Housing Corporation (CMHC) for enabling steady growth.
Now, the company is expanding its acquisition targets to Ottawa, Gatineau, Edmonton, and Calgary – markets where Kapchii says off-market opportunities are still plentiful. “We are ready to make a deal more than once,” she says, noting that the firm has repositioned its portfolio in the past two years, reducing leverage and increasing capacity for new acquisitions.
Whether institutional investors can scale the off-market approach remains uncertain. The relationship infrastructure and decision-making speed that Kapchii describes are difficult for larger organizations to replicate. For now, the most attractive multifamily deals are likely to continue flowing to nimble private operators who can act quickly and build personal relationships with sellers – leaving institutional capital at a disadvantage in the hunt for value.