September 2025 Investor Update

Welcome to the September edition of The Frohman Report! Our goal is to provide you with a concise yet comprehensive update on the real estate market, economic trends, and Frohman Capital’s latest activity—all in under two minutes.

Rundown Highlights

Portfolio NOI Growth: +18.7% QoQ

  1. U.S. Jobless Claims: Fell to 229k

  2. PCE Inflation: 2.6% Annualized

  3. Q2 GDP: Revised Up to 3.3%

  4. New Acquisition: [Insert Current Deal Name]

  5. Team Update: Welcome [Insert New Team Member]

Frohman Capital Performance

From Q1 to Q2 2025, Frohman Capital’s portfolio delivered strong results:

  • Occupancy: +3.1%

  • Total Income: +6.0%

  • Expenses: -1.4%

  • NOI Growth: +18.7%

These results highlight the resilience of our assets and the effectiveness of our disciplined operational strategy.

Jobs & Labor Market Update

Jobless claims dropped to 229,000 for the week ending August 24. Despite broader cooling, the labor market remains stable, with average monthly job gains at 35k over the past three months (down from 123k a year earlier). Economists view this as evidence of a cooling but not deteriorating labor market—supportive for real estate fundamentals.

Real Estate Market Update

The U.S. multifamily sector is showing signs of stabilization:

  • Occupancy: Holding steady at 93.6% nationally

  • Effective Rent Growth: +1.7% YoY, ~20% above pre-pandemic levels

  • Supply Trends: Slower permit activity is expected to reduce future supply pressures

According to RealPage, 15 of the 50 largest U.S. apartment markets posted record absorption over the past 12 months. Dallas led with 42,230 units absorbed—more than double its long-term annual average.

Inflation & Interest Rates

PCE Inflation: +0.1% MoM, +2.6% YoY

  • Core PCE: +0.2% MoM, +2.9% YoY

At the Jackson Hole Summit, Fed Chair Jerome Powell signaled that “the time has come” for interest rate cuts. Markets expect the first cut in September, which may lower borrowing costs and further support multifamily valuations.

Economic Update

Q2 GDP was revised upward to 3.3% annualized, driven by consumer spending (+2.9%) and inventory adjustments. This reinforces a “soft landing” outlook—positive news for investors and the broader CRE market.

New Acquisition Spotlight

We’re excited to announce Frohman Capital’s latest acquisition: [Insert Deal Name].

Highlights:

  • Year 1 CoC: [Insert %]

  • Debt Terms: [Insert details]

  • Entry Cap Rate: [Insert %]

  • Projected Exit Cap Rate: [Insert %]

  • Business Plan: Stabilize operations, enhance occupancy, and roll out value-add improvements over a 5-year hold.

This acquisition reflects our disciplined approach—securing assets at attractive valuations while positioning for long-term growth.

James Frohman

James Frohman is the President & CEO of Frohman Capital, Inc., a vertically integrated real estate private equity investment firm, which he founded in 2020. James is also a member of the Frohman Capital Investment Committee. Frohman Capital operates on multiple platforms, currently managing active syndications for the acquisition of multifamily, self-storage, and other opportunistic residential assets in U.S. growth markets. James has transacted over $60 Million worth of real estate over a 19-year career, including more than 200 multifamily units and 2,500 self- storage units, utilizing proprietary analytical tools developed in-house. A 2X Marine combat veteran turned entrepreneur, James has a diverse background in land subdivision, home construction, and self-storage development, with a particular passion for repositioning existing real estate properties. Together with Lauren, a licensed real estate agent in Colorado and his partner in both life and business, James is deeply committed to philanthropy and community service. They actively support several non-profit organizations, including Operation Underground, Springs Rescue Mission, and TOLI.ORG (Touch of Love International), reflecting their dedication to making a positive impact in their community.

Thank You

— The Frohman Capital Team

We deeply value your partnership and look forward to continuing to build wealth together. Stay tuned for future editions of The Frohman Report as we deliver insights and updates from the world of real estate.