TEXAS CITY, TX - Eastham Capital, a private equity real estate firm dedicated to providing superior, risk-adjusted returns to investors through the transformation of undervalued multifamily real estate, announced the disposition of two multifamily communities – Veranda Apartments, a 200-unit apartment community, and Stone Ridge Apartments, a 248-unit apartment community located in Texas City, part of the larger Houston metropolitan area.
Veranda Apartments and Stone Ridge Apartments were acquired in 2018 by Eastham Capital Fund V, LP, as a joint venture between Mosaic Residential and Eastham Capital. The investments were identified as value-add opportunities in a growing submarket benefiting from strong regional employment drivers, proximity to major transportation corridors, and continued population growth across the greater Houston area.
“Veranda Apartments and Stone Ridge Apartments were excellent investments for Eastham, and we are delighted with the profitable sales of these properties,” said Matthew Rosenthal, founder and managing director of Eastham Capital. "Both properties' strong performance, led by our great operating partner in Mosaic, upholds our value-add investment strategy in Texas.”
During the hold period, the team executed a comprehensive capital improvement and operational enhancement program designed to reposition both communities within their competitive sets. Interior unit renovations, exterior upgrades, and amenity enhancements were paired with improved property management and revenue management strategies. These efforts have driven meaningful increases in occupancy, resident quality, and overall asset performance.
At the time of disposition, Veranda Apartments was approximately 95% occupied, with in-place rents having increased $336 (36%) over our hold, and Stone Ridge Apartments was approximately 94% occupied, with in-place rents having increased $259 (34%) over our ownership. The successful execution of the business plan resulted in significant value creation for investors while delivering upgraded housing options to residents in the Texas City community.
Eastham Capital has recently launched its next fund – Eastham Capital Fund VII, LP – through which one property has already been acquired. For more information on Eastham Capital's unique investment approach and property portfolio, visit www.easthamcapital.com