Chicago-based real estate investor and operator Waterton is elevating its joint-venture development strategy, bringing Kristi Nootens on board as senior vice president of development.
Nootens, who will be based New York, brings a track record of real estate transaction experience to the team with a focus on joint-venture multifamily development. In her role, she will originate and structure both mezzanine/preferred equity and joint ventures in development deals, working closely with the acquisition, construction management, and research teams. She also will be responsible for establishing the firm’s development investment strategy and working with the capital markets team to originate multifamily debt investments.
“Kristi is deeply connected in the multifamily space, and we’re excited to bring her on board as we expand our development platform,” says Rick Hurd, managing partner, investment management, at Waterton. “As new supply continues to decrease and market conditions continue to improve, we will be looking for attractive opportunities to invest in joint ventures with top-tier developers on new developments in supply-constrained and high-growth markets.”
Prior to joining Waterton, Nootens had been co-head of CP Capital US, a New York-based real estate investment manager. Prior to that, she had been a project manager within the New York City Economic Development Corp.’s Strategic Investments Group and in commercial property management at Boston Properties.
Nootens discusses market dynamics, what’s in the Waterton pipeline, and ideal markets and project types when it comes to joint-venture opportunities.
What excites you most about the future of multifamily development, and what role do you see Waterton playing in shaping that future?
The market dynamics of the current cycle are especially exciting, and, by focusing on lower-basis, suburban development deals, Waterton can deliver projects to markets that are in need of housing, at rents that are relatively affordable.
With demand proving to be robust even during the recent period of record high new supply, we saw demand outpacing supply in the first quarter. The continuing nationwide housing shortage and lack of attainable options has made it difficult for most renters to transition into homeownership, so renters are staying in the renter pool longer either by necessity or by choice, often preferring the flexibility of renting. The numbers tell the story: The spread between monthly cost of homeownership versus renting is the highest it’s ever been at $1,210 (per Newmark United States Multifamily Capital Markets Report, Q1 2025). The average age of a first-time home buyer is also at an all-time high of 38 years old, highlighting the demand created by renters who prefer to stay put for now.
Furthermore, new multifamily construction starts are falling drastically (down 65% from a 2022 peak, a 13-year low) setting us up for a period of time, two to three years from now, where new supply will be low and demand will remain high, leading to rent growth, high occupancy rates, and compressed exit cap rates.Waterton’s portfolio continues to grow and evolve, which presents an exciting opportunity to drive and manage all the moving parts of our forward-looking strategy.
How do you see current market dynamics shaping Waterton’s development and capital strategy?
Currently, there is less equity chasing deals. This gives Waterton the ability to get in early on the next market cycle and form relationships with seasoned developers with local expertise who, under different market conditions, might not be looking for new equity partners. Waterton has the ability to be patient and focused, waiting for the right deals with the right partners.
What markets or deal profiles are you most excited about targeting for new joint-venture opportunities?
We’re looking at lower-basis opportunities where we can create suburban, surface-parked communities. Projects that can be built quickly with experienced partners and have fewer risks of delays and cost overruns are generally well-suited for our deal profile. We’ll also focus on high-growth and/or supply-constrained markets, especially where there is strong job growth, solid supply/demand fundamentals, strong rent growth projections, and demand from institutional buyers.
How do you plan to work across teams—acquisitions, construction management, and research—to identify and structure compelling development deals?
One of the characteristics that stood out to me about Waterton is our fantastic, experienced construction, asset, and property management teams. Our research team has developed a strong collection of data that helps us identify trends in each market, from construction costs to operating expenses to leasing. And, coupled with the incredible experience and strong relationships of our acquisitions team, we are able to make educated decisions around target development projects. Together, the team consistently offers invaluable insights and provides accessible and detailed feedback on markets and micro locations, helping to inform project selection and underwriting assumptions.
What’s in the pipeline for this year?
We are optimistic that we’ll be able to capitalize on current market conditions in regions where projected new supply is limited, quality jobs continue to come into the market, and buying a home remains out of reach for many renters. Joint-venture development projects with experienced development partners across the United States, especially in markets with strong job and population growth, are particularly attractive. Our ideal developer partners will have a successful track record, strong balance sheets, experienced local teams, entitlement expertise, and quality sites under their control. My broad network combined with Waterton’s existing relationships helps us zero in on local and regional developers with a track record of success in growth markets where demand is predicted to outpace new supply.
We’ve executed successful partnerships in the past working with developers such as DAC Development on a multifamily project in Aurora, Illinois; McBride Cohen Co. on a massive mixed-use project in Tempe, Arizona; and Pahlisch Commercial on a Vancouver, Washington, deal. We look forward to forging new partnerships that will elevate our portfolio and position Waterton to participate in development at an exciting point in the cycle.
Waterton will continue to invest in debt opportunities throughout the capital stack, including agency mortgage-backed securities investments and as a direct lender and preferred equity provider for construction and transitional/stabilizing multifamily projects throughout the United States. As of Dec. 31, 2024, Waterton has invested over $830 million in agency securities and over $200 million as a direct lender and preferred equity provider for ground-up construction, value-add/repositioning and stabilizing, or interest rate-driven rescue capital across Class A and B multifamily properties in markets across the country.
