HOUSTON — Eastham Capital has sold two value-add properties about 14 miles apart from each other in the northern ring of the Houston suburbs. The Boca Raton, Florida-based private equity firm purchased Kensington Crossing in 2018 and Morgan Bay in 2019 as part of the Eastham Capital Fund V portfolio alongside joint venture partner Mosaic Residential. Kensington Crossing Apartments includes a mix of one-, two- and three-bedroom units ranging from 759 to 1317 square feet. Morgan Bay Apartments includes a mix of one and two-bedroom units ranging from 561 to 1042 square feet.
The owners implemented a repositioning strategy during their hold period. At the time of disposition, Kensington Crossing was approximately 96.5 percent occupied. Effective rents at the time of sale were $344 higher than they were when the asset was acquired. Morgan Bay was approximately 94.8 percent occupied, with in-place rents having increased from $632 at the time of acquisition to $922 at the time of sale. The buyer’s identity was not disclosed.