EagleCap Newsletter - January 2026
- Jarom A Pratt
- Jan 10
- 3 min read
December marked steady progress across the board. From a strengthening multifamily outlook heading into 2026 to meaningful movement on our next acquisition and continued progress at The Avenues, we’re entering the new year with momentum and clarity. Here’s a quick snapshot of what’s happening as we kick off 2026.
Summary
Multifamily outlook improving
Slowing construction and disciplined underwriting are setting the stage for a healthier market in 2026.
Deal momentum continues
Due diligence is nearing completion for Pasadena-172, with the investor funding period coming into view.
Loan process in motion
The Fannie Mae assumption is progressing, with timing largely driven by the agency.
The Avenues nearing completion
Two units left to renovate, and exterior work nearly wrapped.
2025/26 tax planning
There may still be time to allocate investments that count toward the 2025 tax year. Check with your CPA.
Market Update
U.S. Multifamily Outlook: Setting Up for 2026
As we head into 2026, the multifamily landscape is quietly improving—especially for disciplined investors focused on fundamentals and local market dynamics.
Supply Is Finally Pulling Back
Apartment starts have dropped sharply nationwide as developers respond to higher costs, labor shortages, and slower lease-up.
Less building today = tighter supply tomorrow.
Construction Costs Are a Natural Barrier
Construction costs are up ~40% since 2020, far outpacing inflation. Labor constraints and potential tariffs only add pressure.
This makes new development harder—and existing properties more valuable.
Higher Rates Favor Disciplined Operators
Rates may stay higher for longer, but that’s not necessarily a negative.
Conservative underwriting and stress-testing are now standard, reducing speculation and rewarding experienced operators.
Local Markets Matter More Than Headlines
National trends don’t tell the full story. Some metros are still adding supply, while others are tightening quickly.
Understanding local pipelines is where the real edge lives.
Bottom Line
Slowing construction, a rebalancing supply-demand picture, and more disciplined underwriting are creating a healthier setup for multifamily as we move toward 2026.
Opportunity remains—for those who know where to look and how to execute.
Investor Insights
Still Time to Optimize 2025 Taxes
One of the best financial habits isn’t finding the “perfect” investment… it’s simply staying consistent.
And here’s something many people don’t realize: you can still make certain 2025 contributions up until you file your taxes in April 2026 (depending on the account type).
That means there may still be time to:
Max out retirement vehicles like a 401(k), Roth IRA, or HSA
Keep building long-term wealth outside of “just” cash or checking accounts (these are actually losing you $ with inflation)
Make smart year-end money moves with a long-term mindset
Roth IRA note: The contribution limit for 2025 is $7,000, and the limit increases to $7,500 in 2026.
As always, everyone’s situation is different. We recommend checking with your CPA or financial advisor to make sure you’re allocating the right way for your goals.
If you’d like to learn more about how investors use real estate to build long-term wealth, please reach out! We’re happy to connect.
*This is not tax advice—always consult your CPA.
Deal Activity
The Avenues
Nearing the Finish Line
Unit 12: Renovation is complete, with a tenant expected to move in shortly.
Unit 5: Interior work is finished and awaiting final city inspection; a tenant is already lined up once it’s signed off.
What’s left: Only two units remain to renovate (units 2 and 3), marking the final stretch of interior work.
Exterior progress: Nearly all exterior, landscaping, and yard projects are complete.
Final touches: A few minor exterior items will be wrapped up once temperatures warm in late Q1.
Overall, the property is moving steadily toward full stabilization, with leasing momentum lining up well as renovations conclude.
Looking Forward
As we head into 2026, we’re focused on closing out due diligence, finalizing loan assumptions, and preparing for the upcoming investor funding period. We’ll continue sharing updates as milestones are reached and details become available.
If you’d like to stay informed or learn more about how future opportunities work, feel free to reach out. We are always happy to connect.
Thank you for following along and being part of the EagleCap journey.
Happy New Year,
The EagleCap Team
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