Eastham JV Wraps Up Metro Houston Value-Add Deal
In-place rents rose significantly at the 448-unit property following the sellers’ upgrades.
A joint venture between Eastham Capital and Mosaic Residential sold Veranda and Stone Ridge Apartments, two adjacent communities totaling 448 units in Texas City, Texas. Ascenda Capital and the Texas City Housing Authority purchased the assets, merging them into one property, according to Yardi Matrix data.
CBRE Capital Markets originated a $41.4 million Freddie Mac acquisition loan for the asset, which is now dubbed The Flats at Veranda Ridge, the data provider shows.
Eastham and Mosaic acquired the then-split assets in 2018 and implemented a value-add strategy, including interior and exterior renovations, as well as amenity enhancements at the 1982- and 2002-built properties.
READ ALSO: Houston Multifamily Report – December 2025
The assets averaged an occupancy rate of 94.5 percent at closing, while the in-place rents were 35 percent higher compared to the reading at their previous trade in 2018.
Located on more than 19 acres at 1115 Texas Route 146, the merged community is more than 37 miles southeast of downtown Houston. Approximately 600,000 square feet of retail space can be found within walking distance.
The Flats at Veranda Ridge comprises studio and one- to three-bedroom layouts that average 779 square feet spread throughout 28 buildings. Amenities include a basketball court, swimming pool, theater and clubhouse, among other features.
Eastham Capital operates by allocating capital to local operating partners that then acquire, renovate, manage and subsequently divest the assets. Across its 18-year lifespan, the company has closed on more than 23,000 units for a transaction volume of $5 billion.
Some of its latest deals include the acquisition of The Colonial, a 258-unit asset in Omaha, Neb., as well as the divestment of Pinnacle Pointe Apartments in Crestview, Fla. Eastham sold the Sunshine State property, which encompasses 150 units, in a joint venture with Stratford Management.
Multifamily investment continues to improve in Houston
Metro Houston’s multifamily transaction volume clocked in at nearly $3.5 billion in 2025, marking a 25.1 percent growth compared to 2024, which was also up 37.2 percent year-over-year, according to Yardi Matrix data. The figures are still substantially below the 2021 peak of more than $12 billion.
One month into 2026, the market’s advertised rent growth was in the red, mirroring broader Sun Belt trends, according to a recent Yardi Matrix report. The rate fell 1.2 percent year-over-year in January, yet the data provider forecasts a positive 1.0 percent change by year’s end as new supply dwindles and units get absorbed.
