Eastham Capital, a private equity real estate firm dedicated to providing superior, risk-adjusted returns to investors through the transformation of undervalued multifamily real estate, has launched its seventh multifamily investment fund, Eastham Capital Fund VII, LP.
Building upon the success of Eastham Capital’s six prior Funds, this fund will also target income-producing, value-add (C+ to A-) properties in A&B locations throughout the United States. Eastham Capital Fund VII, LP is targeting to raise $500-750 million in equity commitments.
Eastham Capital believes that the climate for multifamily investment hasn’t been this good since 2010. As the Federal Reserve raised the target rate a record 525 basis points from 0.00% to 5.25%, significant rate pressure began negatively affecting multifamily investors. Over $500 billion of multifamily loans are set to mature between 2025 to 2027, of which, over $100 billion are variable rate and will not be able to be refinanced without a significant cash infusion.
Due to these upcoming loan maturities, distressed owners are beginning to initiate property sales at reduced prices to mitigate the risk of foreclosure. This seller-based distress has created an ideal environment to purchase properties at discounted pricing and will continue to do so for the next couple of years. We are seeing a notable increase in distressed acquisition opportunities and Eastham Capital Fund VII is being launched in order to take advantage of this situation.
Founded in 2007 by Matthew Rosenthal and Eric Silverman, Eastham Capital is a private equity real estate firm based in Boca Raton dedicated to providing superior, risk-adjusted returns to investors through investment in value-add or distressed multifamily real estate. Eastham Capital partners with local real estate owners and managers with operational expertise, and an exceptional track record in the management, repositioning and disposition of distressed real estate assets. To date, the firm has transacted on more than $5 billion in multifamily properties in collaboration with its local operating partners whose regions span the Continental US. Eastham Capital has earned above market returns in six funds since its inception in 2007.
