Impact Growth Capital Newsletter

_{This week at IGC: New management at one of our properties, market snapshot, bull vs bear 10 yr treasury.}

_{IGC News
This week, we want to highlight the importance of having a high-performing property manager and the impact they have on both residents and investors. We’ll focus on our current property, Spring Valley Community.}

_{In December, we transitioned to a new property management company. The new team brings a level of expertise and experience that the previous management lacked. From day one, they hit the ground running, delivering immediate results—boosting visibility and traffic, which led to leasing a vacant unit within their first 30 days. They have secured two additional leases for the coming months and remain focused on executing their strategy to deliver exceptional results.}

_{This is a significant win for everyone involved and a testament to the importance of staying actively engaged in the operations of an asset to protect your investment.}

_{Market Snapshot
SOFR
As of January 29, 2025: 4.35%
30-day average: 4.32%
Treasury
10-year: 4.55%
30-year: 4.806%
Interest Rates
4.25-4.5%}

_{Economic News
Bull vs Bear 10-Year Treasury Yield
The direction of the 10-year Treasury yield remains a critical factor for commercial real estate investors, with implications tied to broader economic trends and Federal Reserve policy. Investor sentiment is divided, with competing bullish and bearish arguments shaping market expectations.}

_{The Bullish Case
Proponents of higher yields argue that economic resilience and fiscal policies could drive sustained growth, leading to a gradual increase in long-term rates. A stronger economy, marked by healthy job creation and consumer spending, could justify higher yields while supporting asset valuations in certain CRE sectors. Additionally, a rising term premium—reflecting the extra yield investors demand over the federal funds rate—suggests that markets are pricing in expectations of economic expansion and tighter monetary policy.}

_{The Bearish Outlook
Skeptics caution that elevated yields could weigh on borrowing costs, reducing liquidity and slowing deal flow in the CRE market. If rates rise too quickly, debt-dependent sectors may face significant headwinds, and refinancing risks could increase. The Federal Reserve's policy trajectory remains a key variable, as any signals of prolonged tightening could further pressure asset prices.}

_{The central question is whether to position for higher rates and a stronger economy or to prepare for a potential slowdown driven by tighter financial conditions. With policy decisions and market sentiment still in flux, the outlook remains uncertain.}

_{Webinar
3 Reasons Our ‘Buy in ‘25’ is the Biggest Wealth-Building Opportunity of the Decade.
Join us tomorrow, Friday at 2pm CST,for an exclusive live webinar. Here’s what we’ll cover:} 

_{Learn how we’re achieving immediate cash flow on investments, even as interest rates reach historic highs—and why most investors are overlooking this strategy.}

_{Learn how we’re achieving immediate cash flow on investments, even as interest rates reach historic highs—and why most investors are overlooking this strategy.}

_{The hidden, underutilized government incentives savvy investors are unlocking in 2025 — and how we are transforming ground-up developments into highly profitable ventures.}