The Power of Focus: Why Picking the Right Market Drives Investment Success with Michael Voulgarakis

In the latest episode of The Matthews Podcast, Matthew Wallace sat down with Michael Voulgarakis, Managing Director of Southgate Ventures. With nearly two decades of experience across appraisal, underwriting, asset management, and principal investment, Michael brings a wealth of insight into commercial real estate investment strategies—particularly in value-add multifamily within niche, supply-constrained markets. The conversation dives into his journey, Southgate’s investment philosophy, market positioning, and the operational realities of investing in smaller, under-managed assets.

Building a Track Record in Seattle

Michael Voulgarakis’ CRE career began in appraisal, before pivoting into debt underwriting and eventually the principal side. Alongside a former colleague, he began buying small multifamily value-add assets in Seattle—initially on the side, then full-time over the last four years. Southgate Ventures has since built a strong track record, acquiring 27 properties and developing a reputation for executing deals with precision.

The appeal of Seattle? According to Michael, it’s a combination of high median household income, deep employer base across tech, aerospace, and biotech, and a robust supply of undercapitalized, legacy-owned assets. These assets, often untouched for decades, offer significant rent upside and repositioning opportunities—core to Southgate’s strategy.

Targeting the “Overlooked Middle”

Southgate targets below middle-market and middle-market assets, often overlooked by institutional investors but too complex for mom-and-pop operators. “Our bread and butter is value-add multifamily,” Michael explains. “We seek properties that haven’t seen capital expenditures in years. The delta between in-place rents and market rents creates a compelling margin for value creation.”

While smaller assets can be operationally intensive, Michael notes that geographic concentration minimizes inefficiencies. “Most of our portfolio is within a 10-15 minute drive, allowing our property managers to stay nimble and effective.”

Capital Stack and Investor Relations

Southgate operates using a traditional syndication model—each acquisition is held in a single-asset LLC with capital raised from a mix of industry peers, family offices, and accredited investors. While early deals had minimum investments of $25,000, the threshold has risen to $50,000, with potential future increases. Larger checks are being incentivized through tiered investor classes with improved terms.

For Michael and his team, trust and transparency are essential. “Many of our investors are former colleagues in CRE—they understand the risks and the returns. Our goal is to deliver consistently by buying right and managing well.”

Underwriting in a Volatile Market

In today’s uncertain environment, Michael is cautious but optimistic. Seattle’s rental market remains strong—rents have steadily increased post-COVID, with negligible collection losses. “We’ve only had two evictions in 10 years,” he says, emphasizing tenant quality and proximity to major employers.

However, expenses like insurance are rising, and underwriting exit scenarios has become more complex due to interest rate volatility. Southgate’s response? Conservative projections and disciplined acquisitions. “You get comfortable with volatility by buying at a great basis,” Michael explains. “Lower your basis, and you have more breathing room to absorb rate increases.”

Market Constraints = Strategic Advantage

Seattle’s geographic constraints—flanked by Puget Sound, Lake Washington, and mountainous terrain—create a natural moat. Combined with limited permitting and high construction costs, new supply is limited, benefiting existing landlords.

“Being in a geographically constrained market where demand is growing and supply is restricted—that’s a long-term value play,” Michael says. While expansion into the Mid-Atlantic is on the horizon, Seattle remains their core.

Finding Deals Through Relationships

Michael credits much of their sourcing success to strong broker relationships. Southgate’s approach—buy with a broker, sell with the same broker—creates loyalty and deal flow. “We’re not chasing every listing. Brokers know we perform, and we reward that by closing and looping them in again on the disposition.”

A recent off-market acquisition—a 1970s property never before sold—illustrates the power of long-term broker rapport.

Embracing Technology Without Losing the Fundamentals

While Michael is a self-described Excel devotee, Southgate embraces technology where it adds value—particularly on the property management side. Renters expect mobile-first communication and digital payment systems. “If you’re still operating with paper checks and phone calls, you’re at a disadvantage,” he notes.

AI-enhanced underwriting is on the horizon, though he’s yet to find a third-party solution that matches the firm’s granular needs. “At some point, we may build our own. For now, it’s Excel plus vision.”

Advice for CRE Newcomers

Michael’s advice for aspiring real estate professionals? Know your strengths, do your research, and find the right fit. Whether it’s brokerage, asset management, or acquisitions, every path offers a unique learning curve. “Talk to people in the industry, do informational interviews. Figure out where you want to go, and draw the roadmap to get there.”

From Condos to a CRE Portfolio

Before grad school, Michael flipped condos by hand while working in tech client services. That hands-on start laid the foundation for what is now a thriving investment business. “I always wanted to run my own firm,” he says. “And now, we’re just getting started.”

To learn more about Southgate Ventures or get in touch with Michael Voulgarakis , visit sreventures.com.  

Stay tuned for future episodes of The Matthews Podcast, where we continue to highlight insights from top commercial real estate professionals shaping the future of our industry.