PESP provides analysis to New York Times on private equity landlords

PESP weighed in on a recent New York Times article detailing the precipitous decline of a once-luxurious apartment complex following its takeover by private equity firm Windsor Capital Group. 

Nob Hill, an apartment complex in Syracuse, NY, was purchased for $58.5 million by Windsor Capital Group and other investors in 2018. In the years that followed, residents reported declining conditions in the complex, from neglected maintenance of the grounds and pool to failing emergency systems and overflowing, uncollected trash. In early 2026, a deadly fire broke out. According to residents, emergency alarms failed to activate.

Unfortunately, this narrative is a common one for tenants of private equity-owned housing. Residents living in investor-owned properties often report neglected maintenance, pest problems, extreme rent hikes, and exorbitant junk fees. In some cases, PE-owned properties may even lack reliable clean water. PESP’s latest update to our Private Equity Multi-Family Housing Tracker showed that as of May 2026, private equity firms own at least 11,800 apartment buildings with almost 3 million units, representing about 13% of the total number of apartment units in the United States.

PESP executive director Jim Baker told the Times that the funding structure of the purchase put more risk on residents than the private equity owners. 

The purchase of Nob Hill was part of a flood of similar deals in 2018 in which private equity firms bought apartment complexes across the country, said Jim Baker, executive director of the Private Equity Stakeholder Project, a Chicago-based nonprofit that tracks private equity apartment deals.

Nob Hill’s sale price of $58.5 million made it one of the most expensive sales in Syracuse history. But because 90 percent of the money came from a $51 million loan backed by Fannie Mae, the government-controlled mortgage finance company, Mr. Nesbitt and his fellow investors faced little financial risk if the investment failed.

“Why this is emblematic of private equity ownership of housing is that, from the beginning, the ownership group had limited skin in the game,” Mr. Baker said. “They never had much to lose. Most of the risk falls on residents and the broader public.”

For more on private equity ownership of apartment housing, check out PESP’s Multi-Family Housing Tracker.