Reap Capital

San Antonio’s multifamily market is in a fascinating position- while we’ve seen healthy absorption and a bump in occupancy, the real story is ahead: new supply will slow dramatically in 2026, creating the foundation for strong rent growth from 2027 onward. The numbers tell a clear story: • Absorption of 15,083 units in the past 12 months (6.25% of supply) • Occupancy up 2.0% year-over-year • 70% reduction in new supply, setting the stage for robust rent growth Cycles like this highlight why strategic patience and smart acquisitions today can pay off tomorrow. The trajectory is hard to ignore; San Antonio is set for strong growth. Position your investments with these trends by partnering with us on our latest investment opportunity in San Antonio, The Sage at 1955. Get the deal via the link in comments.

The U.S. multifamily market continues to show remarkable resilience in 2025. Strong demand, limited new supply, and rising investment activity are shaping a dynamic landscape for investors and residents alike. According to Newmark’s 2Q 2025 Multifamily Capital Markets Report, vacancy rates are tightening, sales are surging in key markets, and debt activity is gaining momentum—highlighting both opportunities and challenges in today’s multifamily sector. 1. Record-Breaking Demand in Multifamily Housing The second quarter of 2025 saw unprecedented demand in the U.S. multifamily sector. Despite a surge in new apartment deliveries, demand remained robust, leading to vacancy rates declining to 5.0%, a 90 basis point drop from the previous year. This trend indicates a tightening market and sustained investor confidence. 2. Investment Sales Surge Investment sales in the multifamily sector reached $30.0 billion in Q1 2025, marking a 35.5% year-over-year increase. Notably, Dallas, Boston, Austin, and Manhattan each recorded over $900 million in sales transactions, with South Florida markets like Miami/Dade County and Broward County leading in year-over-year growth. 3. Slowdown in New Deliveries After a peak in 2024, new multifamily deliveries are expected to decelerate. In Q1 2025, 116,092 units were delivered, a 27% decline from the 3Q24 peak. This slowdown is anticipated to continue through 2026, potentially leading to a more balanced supply-demand dynamic in the coming years. 4. Debt Organization Activity on the Rise Debt origination activity gained momentum in Q1 2025, with volume exceeding both Q1 2023 and Q1 2024 levels. This uptick is attributed to lower interest rates, stronger market fundamentals, and reduced construction activity, signaling a positive outlook for multifamily financing.

Here’s to a day well spent — recharging, relaxing, and enjoying time with the people who matter most. Happy Labor Day!

Very impressed with the results our Reap Management and Reap Construction teams have been able to achieve across the three properties we purchased out of foreclosure this time last year! The Charlie Occ. at takeover - 76.1% Occ. today- 86.6% or a 10.5% increase Units renovated- 106 The Warren Occ. at takeover - 62.7% Occ. today- 91.2% or a 28.5% increase Units renovated- 113 The Bryant Occ. at takeover - 65.6% Occ. today- 85.3% or a 19.7% increase Units renovated- 165 Totals Avg. occupancy increase- 19.6% Units renovated 384

Dallas continues to prove why it's one of the strongest multifamily markets in the country, and the numbers speak for themselves. -Dallas ranked #1 in the nation for apartment demand in Q1 -#2 nationally (behind Houston) for demand outpacing new supply -220,000 net units absorbed through May (the most since 2021 for this time period) -National rent growth hit 3.3% year-over-year Tailwinds are pushing even harder: -MMG projects just over 21,000 new units delivered in DFW this year—roughly half of 2024’s volume -Wage growth has outpaced inflation for two consecutive years -It costs $1,210 more per month to own a home than to rent- 2.8x the long-term average The Fed funds rate is expected to be significantly lower by end of 2025 with leadership changes on the horizon Dallas isn’t just weathering the cycle- it’s outperforming through it. #MultifamilyRealEstate #DFWMarket #RealEstateInvesting #ReapCapital #GrowthMindset

We are excited to announce Reap Capital's first equity investment of the year- The Sage at 1955. We are acquiring this asset for nearly half the price paid in 2022. Here's the highlights- Year 1 in place CoC: 5% Debt: 275 bps over SOFR, 73% LTC, 5.25% Interest Rate fixed for initial 2-year term Entry Cap Rate: 6.37% (Tax Adjusted) Projected Exit Cap Rate: 6.50% Business Plan: Year 1- stabilize occupancy, focus on renewals, streamline operations, and allow demand to build while supply shortage persists. Year 2- interior renovations will begin at scale. Year Built: 1984 Location: San Antonio, TX Hold Period: 5 Years Fill out the contact form via the link in the comments for immediate access to the deal! #dealalert #realestate #investing #multifamily #valueadd

Curb appeal starts from the ground up. Our Reap Construction team gave The Bryant a fresh new look with sealcoating and restriping — clean, polished, and ready to impress. Check out these before and after pictures! #TheBryant #ReapConstruction #BeforeAndAfter

Plano named the fittest city in Texas and ranked #14 nationally in the 2025 American Fitness Index—outpacing even Austin and Houston, thanks to top-tier park access, bike trails, excellent air quality, and health-conscious residents. At The Calvin, we're committed to wellness beyond just community. That’s why our residents have exclusive access to an on-site cold plunge pool—perfect for recovery, circulation, and post-workout refreshment. A fit city deserves fit living. At The Calvin, we're proud to match Plano’s wellness-first spirit with amenities that support it! #TheCalvinLiving #PlanoFitness #WellnessLiving #ColdPlunge #ReapCapitalLife

The Calvin PicklePool Party was one for the books! 🏖️ The good vibes were flowing with BBQ on the grill, cold drinks from the open bar, a splash-worthy pool party, and a pickleball tournament to bring the heat! Thanks to everyone who came through, competed, and made it a summer highlight to remember! Catch the recap and relive the fun!

The pickleball court at The Calvin is officially complete! What started as a vision to enhance our residents’ lifestyle is now a finished amenity we’re proud to deliver. Reap Construction went above and beyond to bring this project to life with quality and care every step of the way. Now to add some landscaping touches! #TheCalvin #PickleballComplete #ReapConstruction #ReapCapital #MultifamilyLiving #ResidentExperience