Smart Capital: Jared Zeisler - Capital Solutions

In this episode of Deal Flow Friday, host David Moghavem sits down with Jared Zeisler, Principal at Capital Solutions, to unpack where capital is (and isn’t) flowing in today’s market. Jared shares why buying below replacement cost remains core to their strategy, why rescue capital isn’t the opportunity it seems without resetting basis, and how Capital Solutions is approaching deals with a “downside first” framework. They discuss why bridge debt is creeping back into deals (and why it still scares them), the real story behind student housing deals they’re buying at half of replacement cost, how their portfolio has held up through rate hikes, what makes a deal actually get capitalized today, and why conviction and downside protection matter more than pro forma upside in this market. If you’re an operator looking to raise equity or an allocator looking to deploy smart capital, this episode is packed with candid insights on underwriting, market cycles, and what it takes to get deals done in 2025. Chapters00:00 Introduction to Capital Solutions and Market Overview03:28 What Gets Funded Today vs. Passed On07:56 Development Challenges: High Costs, Low Absorption11:39 Portfolio Performance: Winners, Losers, and Lessons15:13 Rescue Capital Reality Check19:03 Does that "Positive Leverage Day One" deal really exist? 23:01 The Return of Bridge Debt. Did People Not Learn Their Lesson???28:28 The "Perks" of Multifamily? Government-Backed Leverage31:39 Investing in Student Housing36:37 Picking The Right Partner, Especially in a Down Cycle40:39 Advice for Operators Looking for Equity44:45 Haven't seen the "Flush Out" of Distress... Yet.