Chicago Multifamily Investor Waterton Hires Executive John Gray

Waterton is bringing in the former chief of a Blackstone subsidiary for investment leadership as it seeks opportunities in a stressed multifamily market.

The Chicago-based real estate investment firm hired John Gray, most recently CEO of Blackstone-backed Fabric Housing, as its next chief investment officer. He’ll start in October and succeed Rick Hurd, a 12-year Waterton vet who plans to retire early next year after more than four decades in real estate, Crain’s reported. Hurd spent much of his career at GE Capital Real Estate before joining Waterton in 2013.

Gray has spent nearly 20 years in the multifamily space, including over a decade at Lennar, where he helped expand its apartments subsidiary, LMC Investments, into a national platform. Waterton CEO David Schwartz said Gray’s track record across investing, development and leadership made him a clear fit for the role.

The Chicago multifamily market is relatively undersupplied and experiencing strong rent growth and investor interest, particularly in the suburbs, where transactions have surged by 65 percent year-over-year. However, challenges such as rising interest rates and property tax uncertainties are causing some hesitation among investors in the city. Despite these hurdles, there are still significant developments and financing activities occurring, indicating a resilient market overall.

Waterton manages a $10 billion portfolio of multifamily and hospitality assets across the U.S. In recent years, the firm, founded in 1995, has focused on preferred equity and mezzanine debt strategies — a space Schwartz said is increasingly active as distressed owners face pressure to sell or recapitalize.

Gray is expected to push Waterton’s credit strategies and scout acquisition deals. But Schwartz hinted at a potential pivot down the line: ground-up development. Though it remains unattractive with a bounty of steep discounts on existing assets, Schwartz said yield dynamics could shift in coming years. If so, Gray’s background would position the firm to strike.

— Judah Duke