Camilo Lopez, Co-CEO & Managing Partner, Black Salmon

In an interview with Invest:, Camilo Lopez, co-CEO and managing partner of Black Salmon, discussed Miami’s strategic position for real estate investment, Black Salmon’s key milestones, the evolution of multifamily spaces, and the role of transit-oriented development in shaping the city’s future.

What makes Miami a strategic location for Black Salmon?

We’re lucky to be in Miami. Looking back 10 or 20 years, the city has transformed into one of the Top 5 cities in the world. The quality of operators we’re seeing here is remarkable.

Our approach has always been about collaboration. At Black Salmon, we work as a team, not just as individual managers or decision-makers. When we evaluate opportunities, we bring together a diverse group to analyze and execute. For example, we’re developing a new project in Edgewater. Our kickoff meeting had 25 people from all over the world — Switzerland, Canada, New York, Argentina, Los Angeles, and more. That level of global collaboration is unique.

I’ve lived here for 25 years but remain connected with Latin America, especially my hometown, Bogotá. My partners come from Chile, Argentina, and New York, so our firm is structured to embrace collaboration. 

What have been the key milestones for Black Salmon over the past year?

We’ve achieved a lot, particularly in the past two years, as the market has changed dramatically. Back in 2022, when inflation hit and interest rates surged, we refocused our strategy on two asset classes: residential and industrial.

Previously, we invested in offices, hotels, retail, and senior housing. Now, our industrial portfolio is performing exceptionally well. Over the last 18 months, we’ve sold assets to major institutions like JPMorgan. We also broke ground on our first cold storage deal in Chicago, showing our ability to execute in different markets.

One of our biggest industrial wins was securing a major tenant in Kissimmee for a 300,000-square-foot lease and then selling the asset. Our industrial fund is thriving, thanks to our team’s ability to select the right markets.

On the residential side, a major accomplishment was our 224-unit project in Wynwood, which we inaugurated in January 2024. We took a bold approach to design, pushing beyond conventional multifamily standards. We brought in top-tier professionals, including a world-class landscape architect and interior designers, to create a high-end living experience. Today, the building is 96% leased, outperforming our pro forma expectations.

Another milestone was our Edgewater project. The biggest challenge in Edgewater is density, as zoning only allows 150 units per acre, unlike areas like Brickell and Downtown. We initially acquired the site for an office building but pivoted to residential due to market conditions. After a three-year process, we successfully acquired additional density and collaborated with a church to unify the title. We plan to launch the 229-unit project by midyear.

How do you see multifamily spaces evolving in the next few years?

It’s been challenging, especially for development. If you’re in this space, you need to target a spread of at least 100-120 basis points. Before the pandemic, exit cap rates in Miami were around 4%-4.5%. Back then, if you built at a 5.75% yield on cost, your deal worked. Today, with exit cap rates at around 4.75%-5%, you need to build at around a 6.25%-6.5% yield on cost to make the numbers pencil out.

That’s tricky because hard costs have increased by about 35%. Development is significantly more expensive than a few years ago, and rent growth has plateaued. We’re not seeing the same increases we did in 2022, so underwriting has to be more disciplined.

At Black Salmon, we operate as both a private equity investor and a developer. On the investment side, when we review deals in our committee, some sponsors are underwriting new builds at $180 per square foot, while our costs are closer to $250. That raises a big question: how are some projects being built at such low costs? The answer often lies in unrealistic assumptions, which is why being disciplined with numbers is critical.

The two biggest challenges in multifamily today are hard costs and capital markets. Absorption has normalized, and there are few new multifamily projects breaking ground. In the next two to three years, there will be a supply gap and an opportunity for those who can deliver new products. But in the short term, developers with land on their balance sheets must be highly strategic.

On the asset management side, we’re working with lenders to restructure debt. Some properties require principal paydowns, while others have been successfully refinanced. Capital markets remain the biggest challenge. Fundamentally, we’re in the right markets with strong assets, but the financing environment is difficult.

How is transit-oriented development shaping Miami’s real estate future, and where does Black Salmon fit in?

Transit-oriented development (TOD) is central to our investment strategy. Every asset we acquire must be part of a TOD zone. Expanding infrastructure is costly, so we focus on identifying transit hubs with strong growth potential.

All our projects have access to mass transit, allowing us to leverage benefits like parking reductions and increased density. This trend is growing. Last week, we met with a private equity group from Palm Beach investing along the Brightline corridor. Little by little, more people are using mass transit, and that shift will only accelerate.

The Miami WorldCenter, for example, is bringing in more residential, office, and entertainment spaces. As these areas develop, more residents from Aventura, Fort Lauderdale, Boca, and Palm Beach will opt for the train instead of driving. We’ve experienced this ourselves, taking the train from downtown Miami to Highland Park, next to Culmer station, was more convenient than driving.

Traffic in Miami is only getting worse. That’s why identifying TOD sites is crucial. These locations will hold long-term value as demand for transit-accessible housing and commercial space continues to rise.

What are Black Salmon’s top priorities for the next couple of years?

Right now, our main focus is executing our pipeline. Our key priorities for the next 12-18 months include executing projects in St. Pete, Highland Park Miami, and Edgewater. These developments are moving forward, and ensuring their success is a top priority for us. Additionally, following the success of our first industrial fund — which is fully invested, with most assets already sold — we are preparing to launch our second industrial fund.