About Eagle Property Capital (EPC)
Despite the constant volatility of markets, companies like Eagle Property Capital (EPC) continue to promote the idea that real estate is a top investment choice. EPC specializes in U.S. real estate investment and aims to raise between $300 million and $500 million in private capital through its sixth fund focused on acquiring and renovating multi-family properties.
Expected Investments
According to EPC’s expectations, this fund will facilitate acquisitions totaling between $860 million and over $1 billion, considering the financial leverage accompanying these investments.
Property Acquisition and Renovation
EPC plans to purchase around 12 multi-family communities, totaling approximately 4,000 units. These properties were built between the 1980s and early 2000s, with most lacking modernization or professional management.
- EPC identifies well-located assets and conducts a technical review of their structural integrity.
- After acquisition, the firm invests between $8,000 and $15,000 per unit to upgrade kitchens, floors, appliances, lighting, and other elements that enhance the perceived value for tenants.
“Our goal is to continue doing what we have done for the past 14 years: buy well-located but poorly managed properties, modernize them, and create value from day one,” explained Mariana Robina, EPC’s executive director, in an interview.
EPC’s Investment Focus and Strategy
EPC has already invested in cities like Houston, Dallas, Orlando, and Tampa while monitoring markets such as San Antonio and Austin, which are adjusting after a period of overbuilding.
The fund primarily targets Latin American entrepreneurs, many of whom are Mexican investors with established capital in the U.S. or seeking to invest in dollars without direct property operation responsibility.
“These are people who don’t want to buy a job. We handle the property taxes, insurance, maintenance, and even install water sensors using AI to assist residents. Our scale allows us to do this efficiently,” Robina explained.
EPC’s Track Record
EPC has managed five previous funds, along with coinvestments and strategic alliances, acquiring over 10,700 units with an average net return of 23.7%. The committed capital from investors exceeds $643 million, and the transaction volume surpasses $1.4 billion.
- EPC’s model combines consistent operational cash flow (monthly rents) with appreciation upon sale, operating under a conservative financial structure: no more than 65% debt, primarily from U.S. government agencies like Fannie Mae or Freddie Mac.
- The minimum investment in the new fund is $250,000. Capital is called progressively as purchase opportunities arise, with a total horizon of seven years: two for fundraising and investment, three of regular rental payments, and two of disinvestment to recover the invested capital along with accumulated gains from each property.
Institutional Investors
With this new phase, EPC aims to strengthen its relationship with institutional investors in both the U.S. and Mexico.
“We would like to see pension funds participate. Today, many are overexposed to government bonds. Multi-family is an asset with consistent, adjustable-to-inflation cash flows and a moderate risk profile,” Robina pointed out.
However, she acknowledges that the current economic environment demands higher requirements. Nevertheless, she assured that the fund is prepared to operate resiliently, even during unfavorable cycles.
“Occupancy would need to drop below 65% for debt payment to be at risk. With our liquid reserves, we feel secure. We have weathered hurricanes, pandemics, and oil price drops in markets like Houston. Our experience enables us to navigate these conditions without losing assets,” Robina concluded.
