REITs Pause Acquisitions as Private Operator Expands Into Four New Markets

Written by:

Steve Marcinuk

Date:

28 Dec 2025

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Société immobilière Bélanger moves into Ottawa, Calgary, and Edmonton as institutional capital focuses on NOI and asset sales.

The multifamily investment landscape is undergoing a notable capital rotation. Institutional investors are pulling back from acquisitions, while private operators with strong balance sheets are moving aggressively into secondary markets. This divergence has created an opportunity for private capital to secure positions in growing cities before institutional buyers return.

“REITs right now are in a big pause,” says Evguenia Kapchii, Head of Acquisitions at Société immobilière Bélanger, which owns and manages nearly 4,000 multifamily units across Quebec. Kapchii, who previously worked in acquisitions for InterRent REIT, says her contacts at institutional investors describe a clear shift in priorities: “They’re all about optimizing their NOI right now and reducing vacancies. When their stock drops, it’s all about selling assets so they can buy back shares.”

This institutional retreat has created what Kapchii calls a rare acquisition environment for private operators. Her firm is now expanding from its Quebec base into Ottawa, Gatineau, Edmonton, and Calgary—a significant move that signals confidence in both local fundamentals and the current competitive landscape.

The REIT Retreat

According to Kapchii, the institutional pause is more than a temporary reaction. REITs facing stock price pressures are fundamentally changing their acquisition strategies. “If they purchase, they only purchase new; they don’t purchase older assets,” she says. “They dispose of all their old properties. And this started about two years ago.”

This shift has split the market: REITs compete for new construction but are exiting older stabilized assets—the very properties Bélanger targets. “I’ve had great transactions with REITs, one last year and one this year. Both went very well,” Kapchii notes, referencing recent deals where her firm acquired older buildings from institutional sellers.

The current focus among REITs is on maximizing NOI and pursuing stock buybacks, rather than expanding portfolios. For private operators with patient capital, this means less competition and more rational pricing on acquisitions.

The Contrarian Expansion

With institutional buyers sidelined, Société immobilière Bélanger is moving quickly. “When nobody moves, you move. That’s the best way to seize opportunities,” Kapchii says. The company, which has focused on Quebec since 2008, now seeks to acquire 100 units or more in four new cities.

This strategy is designed to avoid crowded primary markets. “Vancouver is saturated. Toronto is saturated. Montreal is becoming saturated,” Kapchii explains. “We want to go where there are still great opportunities—where you see cranes, infrastructure investment, and strong demographic indicators.”

Ottawa, Gatineau, Edmonton, and Calgary share several characteristics Kapchii finds attractive: population growth, employment gains, infrastructure upgrades, and lower vacancy rates. These cities have not yet experienced the price escalation seen in Toronto, Vancouver, and Montreal.

“We go where there are good employment rates and declining vacancies,” Kapchii says. The firm’s Quebec portfolio maintains a vacancy rate below 1.5%. Kapchii attributes this in part to disciplined market selection and effective property management.

The Private Capital Advantage

Kapchii argues that private operators have a structural edge over institutional investors in the current environment. “Having worked for a REIT and now for a private company, it’s much simpler to do acquisitions for a private company. With a private, you have one phone call to make. With a REIT, you have to talk to your VP, then the president, then the board, and it goes back and forth. It takes a lot of time,” she explains.

This speed advantage is significant in competitive or off-market deals. François Bélanger, the firm’s sole owner, can make acquisition decisions quickly—something institutional investors with complex governance cannot easily match.

The company’s capital position is also strong. Kapchii says the firm repositioned its portfolio as interest rates rose over the past two years, selling assets to reduce leverage and clear bridge financing. “We are a very lucrative business with a lot of money in the bank right now. So we are ready to make a deal more than once,” she says.

The sole-owner structure at this scale is rare. “My boss is a unicorn. Everyone asks me how he handles 4,000 units as a sole investor and still buys more. Most groups pool investors together to purchase, but we are a one-person show, and we make it work,” Kapchii says.

Market Timing and Uncertainty

The firm’s expansion comes during continued uncertainty about interest rates and commercial real estate fundamentals. The Bank of Canada recently held its policy rate at 2.25%, but the outlook remains unclear. “We never know what’s going to come out of it. Is it going to go up? Is it going to go down?” Kapchii says.

Despite this uncertainty, Kapchii is optimistic about the medium-term outlook. She references a forecast from Benjamin Tal, chief economist at CIBC, who spoke at the Toronto Real Estate Forum in December. According to Kapchii, Tal predicted 2026 would bring continued volatility, but by 2027, commercial real estate could enter a period of greater stability.

“You have to seize the opportunities while everyone is static, because that’s when you’ll find the best deals,” Kapchii says. Whether this approach pays off depends on how long institutional investors remain inactive—and whether private firms like Société immobilière Bélanger can secure strong market positions before the next wave of institutional capital returns.

The company’s expansion into Ottawa, Gatineau, Edmonton, and Calgary will test whether secondary markets remain open to well-capitalized private operators—and whether the current institutional retreat results in a lasting advantage or simply a brief opportunity.