EagleCap Newsletter – November 🦅
- Jarom A Pratt
- Nov 24
- 5 min read
As we head into the final stretch of the year, momentum is building across every front. The Fed’s rate cuts are beginning to ripple through the market, Texas fundamentals remain strong, and EagleCap’s next multifamily acquisition is nearly under contract. On top of that, our properties continue to stabilize, and investors now have new tools to grow their portfolios through Self-Directed IRAs and Solo 401(k)s.
Summary
Texas spotlight
DFW & Houston remain high-growth markets with strong rent fundamentals.
New investment opportunity
Next Texas acquisition expected to go under contract next week, with investor reservations open soon.
Fed stays soft on rates
Affordability improves, and deals start to pencil again.
Retirement investing made simple
Learn how to invest through Self-Directed IRAs or Solo 401(k)s with our new custodian partners.
Portfolio Momentum
The Avenues and Stone Ridge continue to move closer to full stabilization, positioning both assets for a strong 2026.
Year-End Outlook
Between lower rates, solid Texas fundamentals, and new opportunities coming online, the next few months are shaping up to be EagleCap’s strongest yet.
Market Update
Houston & Dallas–Fort Worth: Two Texas Growth Engines
Houston Highlights
Occupancy rose to ~89.0% in Q2 2025, up ~50 bps from the prior quarter.
New deliveries slowed (2,275 units in Q2 vs 3,359 previously) while absorption hit 5,521 units—hinting at supply normalization ahead.
Construction pipeline is shrinking after a surge; investors expect positive rent growth (2–2.7% YoY) as new supply eases.
Houston’s expanding economy—led by healthcare, energy, logistics, and inbound corporate moves—is fueling demand even as development winds down.
Dallas-Fort Worth (DFW) Highlights
Inventory is rising and price growth is cooling, giving savvy buyers more negotiation room without collapsing demand.
Job growth remains solid at ~2–3% annually in early 2025, underwriting long-term housing and rent stability in the region.
On the ground: Buyers are seeing less bidding war pressure, while sellers still benefit from the metro’s population and corporate inflow trends.
Why this matters for EagleCap investors…
We’re strategically positioning in both DFW and Houston where the macro fundamentals support value-add outcomes.
Lower development competition + stabilizing supply = better margin opportunity for disciplined operators.
With Texas being business-friendly, lower cost, and growing in population, our decision to focus here allows us to capture upside sooner with less risk.
The combined Texas footprint gives us deal flexibility and scale. More pathways to execute our Trusted Legacy Wealth System.
Bottom Line
Between DFW’s undersupplied momentum and Houston’s tightening pipeline + strong fundamentals, the Texas corridor is shaping up as a premier value-add gateway. We’re already active and ready to leverage this shift.
Market Pulse: Rates, Fed, and Data Fog
Mortgage rates eased to ~6.30%, the lowest in about a year, improving affordability on financed purchases and refi math. Keep your pre-approval fresh and be ready to lock.
The Fed cut 25 bps on Sept 17 and remains open to more easing; markets are watching for another move even as the shutdown delays key data (CPI, jobs)—meaning policymakers are flying with less visibility.
Why it matters: Slightly cheaper debt + potential additional easing = better DSCR, tighter spreads, and more deals that pencil—if you stress-test at today’s rates and move when numbers work.
Policy Tailwind: Opportunity Zones Get Staying Power
The One Big Beautiful Bill (Public Law 119-21) makes the Opportunity Zone (OZ) program permanent, giving investors long-term certainty around deferral and potential tax-free growth after a 10-year hold. That stability matters when planning multi-year value-add business plans.
Why it matters: If you have realized or upcoming gains, OZs now look structurally more attractive for compounding after improvements.
Bottom Line
Rates are drifting lower, the Fed is leaning easier, DFW fundamentals remain intact, and OZ policy just got stickier. Net-net: conditions favor prepared operators—underwrite at 7%+, keep approvals current, and be ready to strike when a property pencils.
Investor Opportunities
Going Under Contract—The Next Big Step
After months of due diligence and negotiation, we’ve reached an agreement with the seller of Pasadena-172 and expect to be under contract next week on our next multifamily acquisition in Texas.
Here’s what the next phase looks like:
45-Day Due Diligence Period: During this time, we’ll begin allowing investors to reserve their allocation in the deal while we check out the property from top to bottom.
Funding Period to Follow
Once due diligence is near completion, the funding window will open for accepted investors, while we work to finalize the loan arrangements.
First Come, First Served
Based on current interest, we expect this opportunity to be oversubscribed, so early reservations are encouraged.
This acquisition perfectly fits our Trusted Legacy Wealth System: a value-add property with strong cash flow potential, operational upside, and a below-market purchase price secured by experienced management.
*Legal Disclaimer: This is not a solicitation for investment. Details for qualified investors can be seen by contacting the EagleCap Investment Relations Team.
Investor Insights
Taking Control of Your Retirement Investments
EagleCap partners with Madison Trust (for Self-Directed IRAs) and Broad Financial (for Solo 401(k)s) to help investors put retirement funds to work in real assets—without relying solely on Wall Street.
Learn more about how this works at eaglecapinvesting.com/invest-to-retire
Solo 401(k)s
Max Control, Max Growth
If you’re self-employed or own a small business, a Solo 401(k) is one of the most flexible and powerful retirement tools available.
With a Self-Directed Solo 401(k), you can:
Invest directly in real estate or private placements—no brokers, no delays
Use checkbook control to write checks or wire funds straight from your plan
Contribute up to $70,000 (2025)—even more if you’re 50+
Choose your tax structure—traditional (pre-tax) or Roth (post-tax)
Stay in control as trustee, deciding how and when your funds are used
Broad Financial calls it checkbook control: fast, compliant, and fully under your management.
Why it matters
Unlike traditional brokerages that limit your options, a Solo 401(k) lets you build diversified, cash-flowing wealth through assets you understand—like multifamily real estate.
Learn more and get started:
Deal Activity
Stone Ridge Apartments
Occupancy
Now 25 of 33 units leased, continuing steady month-over-month progress.
Operations
Focused on completing tenant work orders and final post-construction adjustments as the property stabilizes.
Upgrades
All smart water sub-meters are now installed and active, allowing us to bill utilities individually and improve expense recovery.
The Avenues
Renovation Progress
After a couple of months of delays, Unit 7 is now complete.
Units 13 and 14 are leased and occupied after offering a one-month free concession to help fill vacancies and stabilize income as the slower fall leasing season sets in.
Remaining interiors include Unit 5 (≈ 50% complete), Unit 12 (recently started), and Units 2 & 3 (not yet started).
Exterior Work
Teams are pushing to complete additional siding, paint, and landscaping before year-end to enhance curb appeal and support stronger rents in the new year.
Looking Ahead
Goal for Q4 2025: Finish Units 5 and 12 and push on exterior upgrades.
Q1 2026: Complete the final two units and finalize exterior improvements.
This timeline positions the property to be fully stabilized by Spring 2026, setting us up for a target refinance next fall.
Looking Ahead
Under Contract Soon
Our next multifamily acquisition in Texas is nearly across the finish line. We expect to be under contract next week.
Qualified investors can reserve their allocation in Pasadena-172. Given strong early interest, spots are expected to fill quickly.
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