Florida Panhandle Property Trades
A joint venture of Eastham Capital and Stratford Management sold the community.
A joint venture of Eastham Capital and Stratford Management has sold Pinnacle Pointe Apartments, a 150-unit community in Crestview, Fla. REI Capital of Brentwood, Tenn., acquired the property for approximately $21.8 million.
The property, located at 1000 Patriot Lane in the Florida Panhandle, was previously acquired in April 2019 for approximately $14.9 million from Great American Cos. through Eastham Capital Fund V, LP, in partnership with Stratford Management. It was the 12th collaboration between Eastham and Stratford at the time. To date, the partners have co-invested in 19 properties together.
Eastham Capital, a Boca Raton, Fla.,-based private equity real estate firm that invests in value-add multifamily communities, owned 75 percent of Pinnacle Pointe with Stratford and its affiliates owning the remaining 25 percent. Stratford has served as the property manager and implemented a repositioning strategy that substantially improved the property’s appearance and profitability.
During their ownership, Eastham and Stratford completed substantial exterior and interior unit renovations, decreased unit vacancies and increased average monthly rental revenue. The property continuously achieved up to 97 percent occupancy during their ownership. It also marked a 29.9 percent revenue growth during their ownership period, according to Matthew Rosenthal, founder and managing director of Eastham Capital.
Property details
Built in 2010, Pinnacle Point features a mix of one-, two- and three-bedroom units ranging from 829 to 1,280 square feet, with an average of 976 square feet. Rents range from $1,208 to $1,509, with an average of $1,255, according to Yardi Matrix data.
Apartments include carpeting and vinyl flooring, ceiling fans, full-size washers and dryers, kitchens with breakfast bars, oak cabinets, granite-style countertops and patios or decks with outdoor storage units. Community amenities include a swimming pool with a sundeck, a fitness center, a dog park and 287 parking spaces. Walking and biking trails are located nearby.
The property is within a mile of several shopping centers such as Bent Creek Plaza, Court Plaza Shopping Center and Crestview Corners. Pinnacle Point is about 1.4 miles from North Okaloosa Medical Center and nearly 26 miles from Eglin Air Force Base.
Eastham Capital funds
Founded in 2007, Eastham Capital has transacted on more than $5 billion in multifamily properties in collaboration with local operating partners. Rosenthal told Multi-Housing News that the company’s Fund V was launched in 2017.
“Since our funds are technically 10-year funds, we try to exit all of our investments during that timeframe,” he said. “Fund V was on that path, having exited 16 properties through 2022, but when the Fed interest rates skyrocketed and the multifamily market seized up, our pace of sales slowed to a virtual halt. Now that interest rates have dropped some and the market has loosened up, we are now able to sell the properties in the fund that have achieved their pro-forma goals and earn our investors a great return.”
Also this month, Eastham Capital and partner Bender Cos. sold Ridgeland Station, an 84-unit apartment community in Chicago Ridge, Ill., for $10 million. The property had been acquired in February 2019 through Fund V. That was the first collaboration between Eastham and Bender. The firms have since co-invested in nine projects with a 10th in the pipeline.
Rosenthal told MHN that more Fund V property dispositions are expected this year.
Eastham is also acquiring properties through its current fund, Eastham Capital Fund VI, LP. The firm partnered with Bender Cos. last month to purchase Haven Hoffman Estates, a 550-unit community in the Chicago suburb of Hoffman Estates, Ill., for $76 million. The property is being rebranded as Hoffman Hills Apartments. Bender Cos. will serve as property manager for the asset.
