In others experience is this return worth the risk given Multi-family environment ie supply, interest rates, project specific risks, illiquidity risk, and more specifically the Preferred Equity subordinated tranche risk (this sounds like just a Mezzanine loan without recourse).

However, this time, with stronger financial backing, the family is hoping to regain control and potentially monetize their 350 locations, including the flagship Seattle store and Nordstrom Rack outlets.The outcome remains uncertain, but this bold move could shape Nordstrom’s future in a challenging retail environment.

This structure explains why institutional players dominate - they likely have the capital, connections, and infrastructure to operate effectively in such an environment.

But personally, separate electric meters give me more peace.

Many multifamily projects face challenges, including rising interest rates, operational inefficiencies, and decreased valuations, which drive the growing need for alternative financing solutions.This environment presents a unique opportunity for mezzanine debt and preferred equity investors.

Every market segment will have its own experience as it reacts to the new rate environments IMO

the book was written in a different environment - when prices and rates were lower. 

But although they are available, you are better off reducing the PPP in a declining rate environment.

Given the uncertain macroeconomic environment, I'd also really like to find a market where multiple investment strategies can be used to mitigate risk should I need to pivot quickly.

Having been in many aspects of real estate throughout my career my favorites are ground up construction and note investing. right now note investing takes the cake as it can be done in any environment whereas ground up right now is very challenging.