Eastham Capital closed the disposition of two multifamily communities – Veranda Apartments, a 200-unit apartment community, and Stone Ridge Apartments, a 248-unit apartment community — 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.
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.
