Jarom and Justin Pratt are pleased to offer the EagleCap Monthly Newsletter for January.
Happy New Year! With 2025 here, the team at EagleCap is excited to kick off the new year with momentum and optimism. While December may have been a slower month in the market, EagleCap was busier than ever. From operational progress to market positioning, we’re thrilled to share the latest updates as we continue to deliver value to our investors and communities.
Summary
December closed out a productive year for EagleCap, sending us into 2025:
$8.4M (67 Units) under current management
Market Trends: The Carolinas and Georgia lead migration trends, while multifamily is set for growth with stabilizing rates and better cash flow in 2025.
Pendleton 33-Unit Project: Certificate of Occupancy was obtained and the condos are getting prepped for sale.
Hermiston 17-Unit Property: Completed two units in December, and finished reroofing all four buildings, adding 25+ years of life.
2025 Acquisition Focus: Per our long-term strategic plan, we are shifting toward only larger 50+ and 100+ unit acquisitions in 2025 to scale operations and deliver stronger returns.
2025 Market Update
Key Trends Shaping Multifamily in 2025
As 2025 kicks off, a few major trends and principles stand out for multifamily investors:
Population growth continues to drive multifamily success, and migration trends are shifting:
The Carolinas Are Leading: Affordable living, great quality of life, and proximity to urban hubs make North and South Carolina the top destination, with 60% of movers heading there and Georgia.
Florida’s Popularity Declines: High insurance costs and hurricane risks are cooling its appeal.
Business-Friendly Cities Thrive: Austin, Atlanta, Phoenix, Raleigh, and Nashville remain top destinations for companies, boosting multifamily demand.
California Exodus: High costs, crime, and fires keep California number 1 for moveouts, while Austin residents are increasingly heading to lower-cost cities like San Antonio.
Investors should focus on diversification and avoiding overexposure to highly correlated assets:
Multifamily offers a low correlation to stocks (0.14), helping protect against market downturns.
REITs and equities have higher risk due to closer ties to market volatility.
Equity markets are near all-time highs—consider reallocating gains to undervalued assets like multifamily real estate.
Multifamily Rebound in 2025
Challenges like high construction costs and interest rates are easing, setting the stage for multifamily growth:
Higher Cash Flow: Stabilizing rates and reduced expenses point to better returns.
Strong Demand: Renting remains a top choice for many, with affordability gaps keeping pressure on the housing market.
At EagleCap, we’re ready to capitalize on these trends by targeting growing markets with long-term potential.
Investor Opportunities
EagleCap is actively pursuing larger multifamily acquisitions, focusing on 50+ unit properties priced between $3M and $10M.
Here’s what we’re working on:
Target Markets: We’ve narrowed our focus to Ohio, specifically Columbus, Cincinnati, and Cleveland—markets with strong growth potential and favorable conditions for multifamily investments.
Strategic Partnerships: Our team is vetting over 20 brokers and 20 property management firms to build the right partnerships for sourcing and managing deals.
Acquisition Pipeline: We’re screening properties to identify opportunities that align with our investment criteria and deliver strong, stable returns.
We’re also growing our network of investing partners. If you or someone you know is interested in learning about passive multifamily investment opportunities, we’d love to connect!
Portfolio Performance Update
Pendleton 33-Unit Project
December marked a significant milestone for the 33-unit property in Pendleton, as it received its certificate of occupancy. Here’s where things stand:
Inspection Success: Despite turnover among building inspectors, the new inspector was cooperative and approved occupancy without any issues, keeping the project on track.
Final Touches: Our team is addressing a few punch list items, completing a final cleaning of the units, and ensuring everything is market-ready.
Pricing & Marketing: The realtor is finalizing pricing and preparing marketing materials to launch the condo sales.
Paperwork Progress: The final hurdle is processing the remaining paperwork with the state government.
Hermiston 17-Unit Property
December brought major progress on renovations and roofing at the Hermiston 17-unit Property:
Two more units were completed in December, both quickly leased by current tenants. It was rewarding to see their excitement as they checked in on the progress of their new homes.
One unit had extensive damage, including “wavy” and buckled floors caused by long-term water leaks. After opening it up, we discovered:
Water had been entering through a poorly installed dryer vent, allowing rainwater to flow into the apartment for years.
The main cause of the wavy floors was the water-damaged particle board underlayment, which had buckled and disintegrated. Fortunately, the subfloor beneath was mostly intact.
Repairs were made, and the unit now features new luxury vinyl plank flooring, giving it a fresh and durable finish. Check out some pictures here.
Reroofing Completed:
All four buildings have been reroofed, including extensive repairs to the final and largest building:
We replaced 50 sheets of damaged roof decking but were relieved to find no water had reached the attic.
The previous roof had three layers of shingles (one too many!) with nails that were so short they didn’t even anchor to the roof deck.
An unusual discovery: protective paper was installed incorrectly—on top of the first shingle layer instead of under it! We’ve addressed all issues, ensuring the roof now meets modern standards and has 25+ years of life ahead.
The property is shaping up beautifully, with both interior and exterior improvements enhancing its value and appeal.
Looking Ahead
As we move forward, we’re focused on the following goals:
Scaling Our Portfolio: Targeting larger 50 to 100+ unit acquisitions and strengthening our footprint in key markets.
Engaging with Investors: Hosting monthly Meetup webinars, creating educational multifamily content, and building connections to grow our network.
Delivering Results: Finalizing ongoing projects and launching new opportunities for value creation.
Upcoming Event: Save the Date! We just had our first 2025 webinar where everyone enjoyed discussing insights on market trends and investment strategy for the year. Our next Meetup is Wednesday, 05 February @7 PM PST.
From all of us at EagleCap, thank you for your trust and partnership. Here’s to a successful and prosperous 2025!
Warm regards,
The EagleCap Team
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