Key Takeaways
- • Eastham Capital completed the disposition of Eagle Crest Apartments, a 200-unit multifamily community in Humble, Texas, originally acquired in 2017 as a joint venture with Mosaic Residential through Eastham Capital Fund V, LP; sale price was not disclosed.
- • The asset demonstrated strong operational performance under Mosaic's management, with in-place rents increasing 31% from $936 at acquisition to $1,228 at disposition, and the property achieving approximately 95% occupancy at time of sale.
- • Eagle Crest Apartments' strategic location near George Bush Intercontinental Airport and major transportation corridors in the greater Houston metropolitan area supported the value-add investment thesis, capitalizing on regional employment growth and population expansion.
- • The successful exit represents execution on Eastham Capital's Texas-focused multifamily value-add strategy and reflects improving market conditions for dispositions as rate clarity enhances the investment environment.
- • Eastham Capital is actively deploying its seventh fund (Fund VII, LP) with three properties already in portfolio, indicating continued capital deployment capacity following this Fund V exit.
Summary
Eastham Capital announced the disposition of Eagle Crest Apartments, a 200-unit multifamily asset located in Humble, Texas, a suburb of Houston. The property was originally acquired in 2017 by Eastham Capital Fund V, LP, as a joint venture with Mosaic Residential, a partnership that remained in place through the asset's holding period. While the transaction price was not disclosed, the sale marks a significant exit for the lower-mid-market real estate fund.
The investment performed notably well during the holding period. In-place rents increased 31% from $936 per unit at acquisition to $1,228 at disposition, demonstrating successful rent growth execution. At the time of sale, Eagle Crest Apartments maintained approximately 95% occupancy, reflecting strong tenant demand and effective property management by Mosaic. The community features garden-style one- and two-bedroom units ranging from 656 to 1,054 square feet, with resort-style amenities including a pool, fitness center, and clubhouse.
Matthew Rosenthal, founder and managing director of Eastham Capital, characterized the investment as "an exceptional investment" and credited Mosaic's operating leadership with driving the asset's strong performance. The property's success was anchored by its strategic positioning in a supply-constrained growth market, located minutes from George Bush Intercontinental Airport and proximate to major employment centers and transportation corridors across the greater Houston metropolitan area.
The disposition aligns with Eastham Capital's broader value-add strategy in Texas markets and occurs during a period of improving sentiment in the multifamily disposition market. The firm is currently deploying its seventh institutional fund, Fund VII, LP, which has already acquired three properties, indicating continued investor appetite and capital availability for its investment thesis.
The investment performed notably well during the holding period. In-place rents increased 31% from $936 per unit at acquisition to $1,228 at disposition, demonstrating successful rent growth execution. At the time of sale, Eagle Crest Apartments maintained approximately 95% occupancy, reflecting strong tenant demand and effective property management by Mosaic. The community features garden-style one- and two-bedroom units ranging from 656 to 1,054 square feet, with resort-style amenities including a pool, fitness center, and clubhouse.
Matthew Rosenthal, founder and managing director of Eastham Capital, characterized the investment as "an exceptional investment" and credited Mosaic's operating leadership with driving the asset's strong performance. The property's success was anchored by its strategic positioning in a supply-constrained growth market, located minutes from George Bush Intercontinental Airport and proximate to major employment centers and transportation corridors across the greater Houston metropolitan area.
The disposition aligns with Eastham Capital's broader value-add strategy in Texas markets and occurs during a period of improving sentiment in the multifamily disposition market. The firm is currently deploying its seventh institutional fund, Fund VII, LP, which has already acquired three properties, indicating continued investor appetite and capital availability for its investment thesis.
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