Matt Larriva leverages data science and quantitative methods to enhance asset selection, management, and disposition across FCP’s investments. His focus is on quantitative research, predictive analytics, and data infrastructure. Prior to joining FCP, Matt worked at Green Street Advisors as the head of the US and UK Quant teams, managing the data efforts in the sell-side real estate research firm. While at Green Street, he focused on REIT trading strategies, data productization, and analytic enhancements. Matt completed his undergraduate degree in economics at the Wharton School of the University of Pennsylvania. He holds a Masters in applied statistics from UCLA and is a CFA charter holder.
We clearly find that an increase in mortgage debt as a percent of GDP drives down cap rates, and an increase in unemployment slightly drives up cap rates. And this stands to reason, as these two variables provide insight to the risk side and the demand side of pricing. Multifamily cap rates should trend downward for a few reasons, namely the stability of mortgage debt as a percent of GDP, the global search for yield, and potential sector rotation.2 March 2021