If you’ve ever wondered how the top real estate investors navigate market cycles, pick only the best deals, and stay disciplined over decades—you’ll want to get to know Eric Silverman, Managing Partner at Eastham Capital.
Eric has spent the past two decades turning distressed multifamily housing into high-performing investments. With six successful funds under his belt—and a seventh in the works—his story is a masterclass in consistency, strategy, and operator selection.
We sat down with Eric to unpack how he approaches real estate investing and what he sees ahead for the sector. Whether you’re an LP, a fund manager, or just exploring real estate private equity, his insights offer both practical lessons and long-term perspective.
The Origin Story: From Family Roots to Fund I
Eric grew up in Detroit where his father was a developer. But it wasn’t until years later, after college and time in the banking world, that he came full circle—partnering with Matt Rosenthal to co-found Eastham Capital.
They launched their first fund in 2007, just before the financial crisis. Their timing? Impeccable. While many were overleveraged or overexposed, Eric and his partners didn’t deploy capital until 2008, waiting for the market to turn.
Result? A 2.2x fund with an 18–19% net IRR.
Why Eastham Bets Big on Themselves
One thing that stands out: Eastham doesn’t just raise money—they commit their own.
In Fund I, the team invested 20% of the total capital. Even in Fund VI, on a $400M raise, Eastham contributed over $40M of their own money.
Eric calls this “skin in the game”—and it’s core to how they operate. “We want our partners to put in real capital,” he said. “We apply the same rule to ourselves.”
Picking Operators Over Properties
Instead of building a national management company, Eastham partners with local operators on the ground. They review over 300 deals per quarter, but only invest in a handful. The reason? They’re selective about both the property and the partner.
Eric revealed they've interviewed over 2,000 operators but only invested with 18 to date. That level of discipline, he says, is what protects investor capital and drives consistent returns.
Staying in Their Lane: The Eastham Strategy
While real estate trends shift constantly, Eastham’s investment thesis has remained consistent:
Suburban garden-style multifamily properties
Built in the 70s and 80s
Located in secondary and tertiary markets
Needing renovation and operational improvement
These properties may be overlooked by institutional players chasing scale or glamour—but Eastham thrives by buying right, renovating smart, and stabilizing cash flow.
What They’re Seeing in Today’s Market
The conversation also touched on current challenges and opportunities, including:
Loan maturities from the low-interest era that are now coming due
Rising insurance costs in states like Florida
Increased bad debt and evictions post-COVID, even in higher-end assets
A continued slowdown in transactions, but with improving pricing opportunities
For Eastham, this isn’t a risk—it’s exactly when they want to be active. Fund VII is being raised to capitalize on distress-driven opportunities in 2025–2027.
Lessons from Venture and Beyond
Eric’s career spans more than just real estate. He led RentGrow—later acquired by Yardi—and sits on the board of Leader Bank. He says this cross-sector experience informs how he evaluates timing and exit potential.
One lesson? “If I can capture 90% of the two-year upside today, I’ll sell,” he said. “It’s about de-risking forward.”
What’s Next for Eastham Capital
Looking ahead, Eric is watching emerging opportunities like build-to-rent—though he’s cautious about jumping in too soon. He’s also excited to expand partnerships in Mid-Atlantic markets, continuing his model of carefully curated relationships.
And in case you’re wondering what drives a real estate veteran after all these years?
“I love being part of the apartment industry,” Eric said. “And I’m fascinated by where it’s going next.”
Final Takeaways
Eric Silverman’s disciplined, partner-first approach offers a blueprint for long-term success in real estate private equity:
Commit real capital alongside LPs
Stay consistent with your strategy
Partner only with operators who are truly excellent
Time the market by being ready—not by guessing
Be patient, and let renovation and operational discipline drive returns
Whether or not you listen to the episode, Eric’s playbook is worth studying.
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Chapters:
00:01 – Intro to Eric Silverman & Eastham Capital
00:51 – Growing up in real estate and founding story
02:46 – Launching Fund I in 2007 before the financial crisis
03:43 – Fund I mechanics, size, and investor returns
05:03 – GP commitment and skin in the game
06:24 – Fund structure: Why Eastham chose LP over REIT
08:43 – Strategy evolution and staying in their lane
10:31 – Vetting operators and sourcing 300+ deals per quarter
12:12 – Fund life cycle and exit timing
13:26 – Renovation strategy and adding property value
14:23 – Current market conditions and deal flow slowdown
15:35 – Interest rate impacts and upcoming loan maturities
16:59 – Distress in the market and timing opportunities
17:40 – Opportunity vs. risk in Fund VII
18:38 – Aligning LPs, GPs, and operating partners
20:02 – Lessons from the RentGrow exit and investment timing
22:47 – Board insights from banking and cross-sector experience
23:50 – Common mistakes real estate operators make
25:15 – What keeps Eric motivated in the industry
27:21 – A surprising talent: memorizing digits of pi
28:07 – What’s ahead for Eastham Capital and Fund VII
29:35 – Economic indicators Eric watches closely
29:47 – LP misconceptions about real estate private equity
31:17 – A recent deal surprise (Chicago suburbs case study)
33:38 – Rising evictions and post-COVID rent challenges
34:43 – Markets Eastham avoids (California and West Coast)
35:50 – Underrated markets Eric likes now
37:16 – What makes a great property manager
38:13 – Book and thoughts on U.S.-China and AI risks
38:44 – Wrap-up and where to find Eric online
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