Just a year into existence, Way Capital Inc. has expanded into two markets beyond Southern California. The real estate advisory firm earlier this month opened a satellite office in Phoenix, and in May set up shop in Nashville, Tennessee.

Operating as an “outsourced” chief financial officer for real estate sponsors, founder and senior managing partner Malcom Davies launched the Century City-based boutique firm last year to build optimal capital stacks for what he calls ambitious, entrepreneurial real estate projects.

With 20 years of experience transacting deals in Arizona, Davies has called upon his network to secure project deals in downtown Phoenix, Scottsdale and Tempe, including three high-end hotels and the Astra Phoenix mixed-use development, which is set to be the tallest building in the state. 

“Being boutique, it really gives us a bit of an advantage because we don’t have really big splits with big motherships or publicly traded companies,” Davies said. “We’re able to put more resources to all our capital assignments.”

Way will open an office in San Diego by the end of the year. The expansion criteria is simple for Davies and his team scoping new markets: population and job growth.  

According to data published by the Census Bureau last year, Maricopa County, Arizona, which includes Phoenix, grew the most among all counties in the nation. The next three counties following Maricopa were all located in Florida, a market Way hopes to expand into with its Nashville office.

Investors continue to bet on midsize cities and suburban areas to attract millennials looking for housing options outside of dense urban areas. According to Yardi Systems Inc., a real estate data aggregator, the Southeast, Southwest and West regions accounted for 79% of all multifamily sales last year.