MSP formed a co-GP relationship with Bluecrest Residential and a Canadian-based investment manager focused on preferred equity investments in multifamily developments across the U.S. MSP secured a discount to par value through the recapitalization of the GP position, providing significant downside protection as cap rate expansion from spot cap rates resulted in attractive returns for investors. The portfolio achieved strong lease up velocity, highlighting resilient market demand. These factors coupled with timely property deliveries alighting with peak leasing seasons positioned the portfolio well to capitalize on unmet market demand and reach stabilization quickly. MSP’s strategic early exit from the Bluecrest Residential portfolio after a 9-month hold period, reduced exposure to near-term rent recovery risk and asset pricing volatility while delivering a favorable outcome for investors significantly ahead of plan.