Eagle Property Capital's Unique Approach to the Multifamily Sunbelt Markets

Hispanics are the fastest growing demographic in the US, and the demographic is creating demand for quality housing. Eagle Property Capital, a Mexican-owned organization, is strategically targeting opportunities to serve this group in the US.

“We target predominantly, but not exclusively, Hispanic communities in fast-growing Sunbelt metropolitan areas,” Gerardo Mahuad, Managing Principal at Eagle Property Capital Investments. “Hispanics have become a major force driving US demographic and economic growth. They are the fastest growing demographic in the United States and have a higher labor force participation relative to the general public as a result, there’s significant demand for high-quality workforce housing in the cities and communities where Hispanic populations tend to settle and form families.”

As a Mexican-owned firm with an exclusively Hispanic workforce, EPC says it is uniquely attuned to investing in these communities. “We ourselves are Hispanic. We’re a minority-owned business—both my partner and I were born, raised and educated in Mexico City—and every member of our team is Hispanic or has worked in the Hispanic market for several years,” says Mahuad. “So while we are an equal opportunity employer and landlord, we have some unique insights into Hispanic culture that made it logical for us to focus on markets with a significant Hispanic population.”

The firm executes a value-add strategy in these communities, producing stable cash flow with continued growth potential. “Our goal is always to generate superior risk-adjusted returns for investors by implementing a value-add strategy, which involves acquiring underperforming, neglected and/or inefficiently managed multifamily apartment communities at values below intrinsic replacement costs and repositioning them as best-in-class in their respective markets,” says Mahuad. “At the end of the day, our goal is to create value for our investors, and for the communities in which we operate.”

Houston, Dallas-Fort Worth, Orlando and Tampa are the top target markets for the strategy, which is where EPC is seeing the most opportunities as well. “Sunbelt metros in general are showing exceptional migration, household formation and employment growth,” says Mahaud. “The pandemic has made people prioritize more living space, in less dense, suburban markets where assets generally have larger floorplans, and where rents are comparatively lower, so that’s the type of product we are targeting.”