EagleCap started the year with a bang! After an end to 2024, we hit the ground running in January, making big strides in acquisitions, operations, and market positioning. From narrowing in on key investment markets to pushing forward on active projects, 2025 is already shaping up to be an exciting year.
Summary
EagleCap started the year off strong in January:
Market Trends: Multifamily investment is picking up as interest rates stabilize, rental demand remains strong, and migration patterns shift toward more affordable markets.
Investor Opportunities: We’ve locked in on Ohio—focusing on Columbus, Cincinnati, and Cleveland—and are actively vetting top brokers and property managers to secure 50+ unit deals.
Pendleton 33-Unit Project: Site cleanup is nearly complete, and final steps are in motion to list units for sale or rent.
Hermiston 17-Unit Property: Renovations are progressing efficiently, with upgraded units renting for up to $100/month more than market comps, keeping us ahead of schedule.
Community & Events: Our February Meetup covered how to create a deal package. Don’t miss the next one on March 5 @ 7 PM PST!
Survey: We’re gathering insights on investing and would love your feedback. The survey takes less than a minute—take it here.
Market Update
The outlook for multifamily investment this year is looking up, with several trends shaping the landscape:
Economic Momentum Continues: GDP is projected to grow by 2.1% this year, with inflation stabilizing. Expected interest rate cuts should further improve financing conditions.
Renter Demand Remains Strong: Home prices continue to rise, making homeownership less affordable. With mortgage rates expected to hover around 5.5% and 6%, more renters will stay put.
Multifamily Inventory Shift: After years of high supply, new apartment construction will slow down in 2025, helping stabilize vacancy rates and rent growth. This shift creates new value-add opportunities, which EagleCap is well-positioned to capitalize on.
Investment Activity Picking Up: A backlog of capital is expected to flow back into the market, increasing deal activity, particularly in secondary and tertiary markets.
Migration Trends Matter: The Sun Belt remains a strong draw, but rising insurance costs in Florida and continued outmigration from California are pushing demand toward more affordable markets.
With economic headwinds easing and demand steady, 2025 is shaping up to be an opportunity-rich year for multifamily investors. Stay tuned!
Investor Opportunities
EagleCap is actively pursuing larger multifamily acquisitions, targeting 50+ unit properties in Ohio’s high-growth markets, with deal sizes ranging from 50-200 unit ($1M to $10M) properties.
Here’s what’s happening now:
Target Markets: We’ve locked in on Cincinnati, Cleveland, and especially Columbus, due to strong job growth, population increases, and favorable multifamily investing conditions.
Building the Right Team: We’re actively vetting 20+ brokers and property managers, selecting the best partners to source and manage deals effectively.
Acquisition Pipeline: With extensive deal screening underway, we’re honing in on the best opportunities that fit our conservative investment criteria and deliver strong, stable returns. We are actively submitting LOIs on properties with more to follow.
With acquisitions on the horizon, we’re expanding our investor network and seeking new partnerships. If you or someone you know is looking to learn more about passive multifamily investment opportunities, let’s talk!
Portfolio Performance Update
Pendleton 33-Unit
As we wrapped up the project, an unexpected challenge arose—removing job trailers. The city gave us a deadline to clear them out, so finding a solution became a priority.
Office Trailer Gone: We posted the 50ft trailer for free on Facebook, and within hours, we had 30+ responses.
Creative Offers: Despite our warning that a specialized tow truck was required, multiple people offered to “yank it out” with their F-150s. Fortunately, we found a qualified hauler to get the job done right.
Hermiston 17-Unit
Steady progress continues in 2025, with renovations moving forward at a solid pace:
Renovation Momentum: Renovations continue at a steady pace, with most heavy-rehab units completed. This allows for shorter turnaround times on the remaining units.
Strong Rent Growth: Upgraded units are renting for up to $100/month more than comparable market rents, pushing the average rent to $888/month—well ahead of our $830/month projection for 2024.
Resident Transfers – A Double-Edged Sword: Existing residents moving into renovated units saves leasing time and costs but leaves older units vacant, keeping overall vacancy levels steady.
On-Site Construction Crew: Having a dedicated team on-site has streamlined the process, making renovations more efficient and repeatable across units.
With higher-than-expected rent growth and an optimized renovation process, this project remains ahead of schedule.
Looking Ahead
Survey: We’re gathering insights on investing and would love your feedback. The survey takes less than a minute—take it here.
Upcoming Event: At our February Meetup, we explored how to create a deal package—perfect for those interested in the active side of multifamily investing. Join us for the next one:
If you’ve made it this far, thanks for reading! We’re excited to grow and invest together in 2025.
Warm regards,
The EagleCap Team
Thanks for reading our monthly newsletter. Check out our website to view more multifamily investing content.
Opmerkingen