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Our controls include visiting every property (or a subset of properties if it’s a fund) to confirm the real estate is what and where the real estate is supposed to be.
We have robust quality controls with detailed checklists and a review of third-party reports.
The purchase price value for South Hill of $11,700,000 represents a going-in 7.00% capitalization (“cap”) rate. Further, the going-in price/pound valuation is approximately $67,000/door and $92/SF for South Hill. Cooper Street Capital ("CSC") believes this valuation is in line with the valuations for this vintage asset class that the firm first saw when they began investing in the San Antonio market in 2019. Recent nearby sales have also traded for notably higher values, including The RiverBend Apartments, which although of a newer 1980s vintage, traded for $90k/door in April 2023.
The Brooks City Base area, where South Hill Apartments sits, is a unique, "up-and-coming", and fast-developing mixed-use pocket of south San Antonio that used to be a US Air Force Base until 2001. This southern pocket is now anchored by two large and long-term economic drivers, including the Mission Trails Baptist Hospital, with 110 beds, and the University of the Incarnate Word School of Osteopathic Medicine (UIWSOM). With these anchors, and its close proximity to downtown, the neighborhood has been the beneficiary of rapid development and revival in the last 15 years. Major national brands have opened new locations in Brooks City, including move-ins from Chick-fil-A, Krispy Kreme, Cheddar's Scratch Kitchen, Embassy Suites, Walmart Supercenter, Lowe's, and HEB (all within a mile of South Hill). Clustering nearby are also several large newly built apartment communities, including Landings at Brooks City-Base, The Kennedy Apartments, and the Anderson at Brooks.
Because of the favorable going-in basis and capitalization rate, the success of the South Hill acquisition will not depend on the implementation of a costly, systematic, and drawn-out value-add upgrade program, and CSC will finance the Project with a 7-year fixed rate note. As of September 2023, the asset is also currently occupied at 93%. Taken together, CSC expects South Hill to provide partners with cash flow not long after acquisition. To drive additional value, CSC will replace the asset’s roof and convert the master metered electric utility structure to sub-metering in order to pass the utility costs onto residents.
Cooper Street Capital
Cooper Street Capital (“CSC”) provides investment access to the commercial real estate space for retail, family offices, and institutional investors. As a private equity real estate firm, CSC applies targeted acquisition strategies and active asset management to provide consistent risk-adjusted returns for investors in value-add and core-plus multifamily real estate opportunities. CSC aims to capture upside potential for its partners through both physical renovations and/or major operational improvements.
Since the firm's founding in 2011, CSC’s team has stayed committed to sourcing commercial real estate investment opportunities from across the United States that have demonstrated strong financial performance in the past or that exhibit the potential for gains in the future. In either case, potential acquisitions must be supported by strong market fundamentals.
CSC aims to minimize downside risk for its partners through “deal-by-deal” and targeted acquisitions. The firm seeks out existing multifamily real estate assets that can provide for continued cash flow and where value can be built upon through the process of driving up an asset’s yearly Net Operating Income (NOI). The firm is headquartered in Aspen, Colorado.
https://www.cooperstreetcapital.com/-
Brandon CooperManaging Partner -
Matt CooperDirector of Acquisitions -
Robert FayDirector of Investor Relations
Brandon has spearheaded the acquisition of over $1.5 billion worth of real estate assets in the last twelve years. Prior to founding Cooper Street Capital, Brandon was the co-founder of two other real estate investment firms, including Maroon Peak Partners and I-95 Ventures. Before breaking into the real estate sector, Brandon worked as a financial advisor at Merrill Lynch and previous to that as a policy analyst at The Center for Middle East Peace in Washington, D.C. He graduated Magna Cum Laude from Bates College where he led the Bobcat’s Division I cross country ski team.
Prior to joining Cooper Street Capital, Matt spent several years with the US Delegation to the World Trade Organization (WTO) and the Organization for Economic Co-operation and Development (OECD) researching topics of international trade and the economics of corporate governance frameworks. Since joining, he has leveraged his analytical background to help CSC acquire over $1 billion of commercial real estate. He also holds a Bachelor of Arts in Political Science and French Language from the University of Virginia and a Masters of Science in International Political Economy from the London School of Economics.
Over the past seven years, Robert has capitalized, acquired, and repositioned over $1.25 billion worth of multifamily real estate raising and managing over $450 million in equity from family offices and high-net-worth individuals. Prior to Robert’s real estate ventures, he worked in equity research assisting in the valuation of publicly traded stocks with market caps between $30-$200 billion and for Bank of America Merrill Lynch. At Cooper Street Capital, Robert is in charge of all things Investor Relations where he works closely with the CEO and Director of Acquisition on capital events for the company and its investing partners. He graduated from the University of Colorado at Boulder with a dual degree in Economics and Psychology.
| Property Name | City, State | Asset Type | Status | Acq Date | Units | Purchase Price | Sales Price or Estimated Value | IRR | EMx |
| Highland Park | Albuquerque, NM | Multifamily | SOLD | 2/1/2013 | 80 | $5,125,000 | $6,400,000 | 18.40% | N/A |
| Maroon Peak Netherwood | Albuquerque, NM | Multifamily | SOLD | 8/1/2013 | 220 | $13,975,000 | $18,500,000 | 12.90% | N/A |
| Citadel Apartments | Albuquerque, NM | Multifamily | SOLD | 3/1/2014 | 233 | $9,719,000 | $14,792,000 | 33.40% | N/A |
| I-95 Portfolio | Portland, ME | Multifamily | SOLD | 7/1/2014 | 54 | $6,550,000 | $9,500,000 | 18.00% | N/A |
| Bowdoin Realty Portfolio | Portland, ME | Multifamily | SOLD | 12/1/2014 | 41 | $5,630,000 | $9,900,000 | 22.30% | N/A |
| 94-96 Winter | Portland, ME | Multifamily | SOLD | 2/1/2015 | 10 | $900,000 | $1,400,000 | 54.50% | N/A |
| Bricklight Capital Portfolio | Portland, ME | Multifamily | SOLD | 7/1/2015 | 45 | $4,900,000 | $7,100,000 | 20.50% | N/A |
| East End Apartments | Portland, ME | Multifamily | SOLD | 9/1/2015 | 37 | $4,300,000 | $5,800,000 | 24.10% | N/A |
| Bricklight II | Portland, ME | Multifamily | SOLD | 9/1/2015 | 24 | $2,730,000 | $3,250,000 | 25.20% | N/A |
| 773 Congress | Portland, ME | Multifamily | SOLD | 9/1/2015 | 5 | $390,000 | $420,000 | 29.60% | N/A |
| 59 Bramhall | Portland, ME | Multifamily | SOLD | 10/1/2015 | 9 | $625,000 | $750,000 | 48.00% | N/A |
| Bear Creek Apartments | Albuquerque, NM | Multifamily | SOLD | 6/1/2016 | 84 | $2,820,000 | $3,400,000 | 30.50% | N/A |
| Cedar 31 Apartments | Austin, TX | Multifamily | OWNED | 4/9/2017 | 14 | $2,310,000 | $3,100,000 | N/A | N/A |
| Bannister Apartments | Austin, TX | Multifamily | SOLD | 5/1/2017 | 34 | $2,485,000 | $3,300,000 | 18.30% | N/A |
| 1515 Clermont | Denver, CO | Multifamily | SOLD | 7/1/2017 | 36 | $5,500,000 | $7,150,000 | 14.00% | N/A |
| The Goose Nest Apartments | Portland, OR | Multifamily | SOLD | 8/1/2017 | 22 | $3,075,000 | $4,260,000 | 20.10% | N/A |
| Villas de la Luz | Austin, TX | Multifamily | SOLD | 1/1/2018 | 240 | $20,500,000 | $25,225,000 | 22.80% | N/A |
| Courtyard and Arbors Apartments | Albuquerque, NM | Multifamily | SOLD | 2/1/2018 | 529 | $31,100,000 | $38,000,000 | 18.30% | N/A |
| English Aire and Lafayette Landing | Austin, TX | Multifamily | SOLD | 8/1/2018 | 397 | $38,750,000 | $45,000,000 | 50.70% | N/A |
| Sage Canyon | Albuquerque, NM | Multifamily | SOLD | 8/24/2018 | 105 | $8,790,000 | $10,260,000 | 38.15% | 1.54x |
| CSC North Austin Portfolio | Austin, TX | Multifamily | SOLD | 1/1/2019 | 523 | $56,000,000 | $62,350,000 | 50.70% | N/A |
| Gallery Park and Westfal | Portland, OR | Multifamily | OWNED | 1/18/2019 | 93 | $18,200,000 | $2,600,000 | N/A | N/A |
| Mueller Rose | Austin, TX | Multifamily | SOLD | 3/15/2019 | 181 | $18,825,000 | $30,000,000 | 25.10% | 1.93x |
| CSC Spanish Trails | Austin, TX | Multifamily | SOLD | 3/1/2019 | 40 | $6,238,000 | $7,600,000 | 19.30% | N/A |
| 1919 Portsmouth, 1903 Portsmouth, 420 W. Alabama | Houston, TX | Multifamily | OWNED | 4/26/2019 | 75 | $13,000,000 | $14,000,000 | N/A | N/A |
| Rock Creek | Albuquerque, NM | Multifamily | SOLD | 6/28/2019 | 121 | $6,875,000 | $8,000,000 | 39.10% | 1.48x |
| Pyramid Portfolio | Albuquerque, NM | Multifamily | SOLD | 6/28/2019 | 34 | $1,905,000 | $2,300,000 | 25.20% | 1.25x |
| Bannister Place | Austin, TX | Multifamily | SOLD | 7/11/2019 | 20 | $3,300,000 | $4,000,000 | 13.21% | 1.40x |
| The French Quarter | Albuquerque, NM | Multifamily | SOLD | 7/2/2019 | 84 | $3,400,000 | $4,480,000 | 16.45% | 1.33x |
| Lexington Realty Capital | Albuquerque, NM | Multifamily | SOLD | 8/9/2019 | 156 | $7,400,000 | $11,750,000 | 142.16% | 2.43x |
| The Zeno Apartments | Portland, OR | Multifamily | OWNED | 8/27/2019 | 22 | $4,250,000 | $5,000,000 | N/A | N/A |
| Cascade Apartments | Austin, TX | Multifamily | SOLD | 9/19/2019 | 198 | $31,500,000 | $38,000,000 | 13.90% | 1.41x |
| Villas Esperanza | Albuquerque, NM | Multifamily | SOLD | 9/20/2019 | 188 | $12,250,000 | $19,000,000 | 35.60% | 2.28x |
| Miller Square | Austin, TX | Multifamily | SOLD | 9/1/2019 | 51 | $8,640,000 | $10,800,000 | 13.23% | 1.42x |
| Chestnut Park | San Antonio, TX | Multifamily | SOLD | 12/3/2019 | 145 | $12,000,000 | $18,500,000 | 30.20% | 1.89x |
| Arbors and Courtyards | Albuquerque, NM | Multifamily | SOLD | 12/23/2019 | 529 | $38,000,000 | $66,500,000 | 61.80% | 3.04x |
| Barberry Village | Portland, OR | Multifamily | SOLD | 1/10/2020 | 180 | $21,500,000 | $34,000,000 | 36.59% | 2.05x |
| Arcadian | Austin, TX | Multifamily | SOLD | 2/14/2020 | 83 | $11,350,000 | $13,400,000 | 29.27% | 1.80x |
| Amber Hill | San Antonio, TX | Multifamily | SOLD | 3/18/2020 | 244 | $16,750,000 | $20,700,000 | 52.90% | 1.57x |
| Blue Vine Apartments | San Antonio, TX | Multifamily | SOLD | 4/27/2020 | 111 | $10,050,000 | $14,500,000 | 17.54% | 1.39x |
| The Lexington Place | Albuquerque, NM | Multifamily | SOLD | 8/13/2020 | 156 | $11,750,000 | $15,752,000 | 35.57% | 1.68x |
| River Park Apartments | New Braunfels, TX | Multifamily | SOLD | 9/2/2020 | 100 | $7,800,000 | $11,195,000 | 64.80% | 1.67x |
| Luna Verde | El Paso, TX | Multifamily | OWNED | 9/9/2020 | 297 | $13,500,000 | $23,000,000 | N/A | N/A |
| Paso Oeste | El Paso, TX | Multifamily | SOLD | 9/9/2020 | 244 | $15,500,000 | $21,025,000 | 29.40% | N/A |
| Vista Grande | Albuquerque, NM | Multifamily | SOLD | 10/19/2020 | 168 | $11,000,000 | $19,200,000 | 130.08% | 3.80x |
| Mountaindale | El Paso, TX | Multifamily | SOLD | 10/1/2020 | 88 | $5,100,000 | $7,550,000 | 23.83% | 1.34x |
| Creeks Edge Apartments | Austin, TX | Multifamily | SOLD | 1/4/2021 | 200 | $23,000,000 | $33,250,000 | 21.97% | 1.32x |
| Netherwood Village | Albuquerque, NM | Multifamily | SOLD | 1/29/2021 | 220 | $18,500,000 | $31,500,000 | 366.94% | 4.59x |
| Amber Hill - 2 | San Antonio, TX | Multifamily | SOLD | 5/25/2021 | 244 | $27,000,000 | $27,000,000 | 69.30% | 1.73x |
| Raintree Village | El Paso, TX | Multifamily | SOLD | 4/15/2021 | 275 | $15,750,000 | $20,265,000 | 22.43% | 1.44x |
| Evergreen Apartments | Santa Fe, NM | Multifamily | OWNED | 5/3/2021 | 70 | $6,300,000 | $8,500,000 | N/A | N/A |
| Alexis Apartments | Las Cruces, NM | Multifamily | SOLD | 6/2/2021 | 170 | $13,235,000 | $25,000,000 | 299.90% | 4.25x |
| The Oasis, Speedway 38, Barton Ridge | Austin, TX | Multifamily | OWNED | 7/21/2021 | 121 | $21,650,000 | $21,650,000 | N/A | N/A |
| Velo Apartments | Spokane, WA | Multifamily | SOLD | 6/16/2021 | 58 | $7,900,000 | $8,400,000 | 30.16% | 1.44x |
| Orlo | Portland, OR | Multifamily | OWNED | 8/6/2021 | 38 | $5,000,000 | $5,000,000 | N/A | N/A |
| Regal Ridge | Spokane, WA | Multifamily | SOLD | 8/31/2021 | 97 | $18,250,000 | $21,500,000 | 8.30% | 1.16x |
| 1865 Union Street | San Francisco, CA | Multifamily | OWNED | 9/30/2021 | 5 | $4,100,000 | $4,100,000 | N/A | N/A |
| The Rosewood | Spokane, WA | Multifamily | OWNED | 12/15/2021 | 77 | $10,500,000 | $13,230,000 | N/A | N/A |
| Paso Norte, Santa Rosa, Rosetta | El Paso, TX | Multifamily | OWNED | 12/3/2021 | 288 | $19,475,000 | $24,000,000 | N/A | N/A |
| The Alexandra | Lexington, KY | Multifamily | OWNED | 2/15/2022 | 204 | $14,000,000 | $14,000,000 | N/A | N/A |
| The Lennox | Spokane, WA | Multifamily | OWNED | 3/7/2022 | 51 | $6,600,000 | $6,600,000 | N/A | N/A |
| Trinity Place/Casa Barranca | El Paso, TX | Multifamily | OWNED | 6/1/2022 | 429 | $32,400,000 | $32,400,000 | N/A | N/A |
| The Caterina/Paso Este | El Paso, TX | Multifamily | OWNED | 6/1/2022 | 131 | $8,825,000 | $8,825,000 | N/A | N/A |
| Arabella | San Antonio, TX | Multifamily | OWNED | 7/12/2022 | 144 | $12,700,000 | $12,700,000 | N/A | N/A |
| Crescent Ridge | Cincinnati, OH | Multifamily | OWNED | 8/1/2022 | 154 | $17,300,000 | $17,300,000 | N/A | N/A |
| White Willow | Portland, OR | Multifamily | OWNED | 9/21/2022 | 90 | $11,700,000 | $11,700,000 | N/A | N/A |
| Jackson / Morrison | Spokane, WA | Multifamily | OWNED | 10/14/2022 | 111 | $16,550,000 | $16,550,000 | N/A | N/A |
| Elm Creek | San Antonio, TX | Multifamily | OWNED | 12/13/2022 | 81 | $9,350,000 | $9,350,000 | N/A | N/A |
| Casa Loma | Santa Fe, NM | Multifamily | OWNED | 1/13/2023 | 132 | $26,500,000 | $26,500,000 | N/A | N/A |
| Dawn Run | Lexington, KY | Multifamily | OWNED | 4/27/2023 | 218 | $9,100,000 | $9,100,000 | N/A | N/A |
| The Izzy | Oklahoma City, OK | Multifamily | OWNED | 3/21/2023 | 328 | $32,250,000 | $32,250,000 | N/A | N/A |
| Villas on 50th | Oklahoma City, OK | Multifamily | OWNED | 5/8/2023 | 114 | $7,300,000 | $7,300,000 | N/A | N/A |
| Totals/Weighted Average | 10,400 | $931,492,000 | $1,150,679,000 |
The above bios and track record were provided by Cooper Street Capital and have not been independently verified by RealtyMogul.
Over a 2-3 year stretch, starting not long after the COVID-19 pandemic, the multifamily market saw valuations spike because of record low interest rates. Capital flows into the sector broke records, competition was fierce, and sellers could basically name their price. According to Real Capital Analytics, multifamily sales volume totaled $331 billion in 2021, an increase of more than $140 billion over the previous calendar year record established in 2019. Because the Federal Reserve (“The Fed”) has raised interest rates ten times since March 2022 to fight inflation, however, market dynamics have rapidly shifted. A sizable portion of investment equity has moved to the sidelines, anticipating an economic slowdown and real estate transactions have come nearly to a halt. According to Northmarq, sales velocity in the first quarter of 2023 in San Antonio, for example, was down roughly 30% from levels recorded at the end of last year. In addition, the median sales price through the first quarter this year was $97,700/unit — down 12% from the 2022 figure. Many would-be sellers have not adjusted asset prices in accordance with the new and higher cost of capital. Investors have rightly demanded that asset values reflect the higher borrowing costs and that equity invested in real estate provides adequate risk-adjusted returns compared to more liquid investments like bonds and other credit instruments. Cooper Street Capital ("CSC") believes the trajectory of South Hill’s sales process is a direct reflection of this changing environment and just how challenging it will be for asset values to re-adjust. Only after the asset went in and out of contract twice was the seller able to eventually find where the market actually was. Now CSC has the asset under contract for $11,700,000, or a 7.00% going-in cap rate, and the approximate $67k/door basis is in line with 2018/2019 values.
With the uncertainty in the market, and the strong going in metrics, CSC has decided against a more traditional value-add strategy to overhaul the asset’s exterior presentation and interior living quality to aggressively drive up the net operating income (“NOI”) with a large capital expenditure (“CapEx”) injection, as the firm most often does. Instead, the firm will focus a more targeted $1,347,000 CapEx budget on more large-scale projects that will ensure the asset’s long-term use. In addition, CSC will focus on driving up the asset's net operating income ("NOI") by shifting the asset from an all bills paid structure to one where residents are billed back for utility usage. To complete the transaction, CSC will utilize a Fannie Mae 7-year note with a fixed rate at 153 bps over the 7-year Treasury and 7 years of interest-only payments. By not focusing on a large-scale value-add project, CSC can use fixed-rate financing and remove interest rate risk over the course of the hold period.
CapEx Budget
| Exterior Renovations | Total Amount | Per Unit |
| Concrete / Asphalt | $38,500 | $221 |
| Amenities | $50,000 | $287 |
| Plumbing | $25,000 | $144 |
| Signage Package | $20,000 | $115 |
| Office | $20,000 | $115 |
| Mold Remediation | $36,000 | $207 |
| Green Initiatives | $162,000 | $931 |
| Sub-Meter | $150,000 | $862 |
| Roofs | $650,000 | $3,736 |
| Total Exterior Renovation Costs | $1,151,500 | $6,618 |
| Other Costs | Total Amount | Per Unit |
| Marketing | $15,000 | $86 |
| Construction Management (5%) | $60,000 | $345 |
| Reserve (10.4%) | $120,000 | $690 |
| Total Other Costs | $195,000 | $1,121 |
| Grand Total | $1,347,000 | $7,739 |
The South Hill Apartments is a 174-unit garden-style multifamily apartment community located in San Antonio's southern Brooks City Base neighborhood. The Sponsor believes that the Property boasts a desirable unit mix with an average unit size of 727 SF in addition to a noteworthy collection of amenities, including three pools, a tennis court, and ample covered parking. The Property is also strategically located just off of SE Military Drive, providing close-in access to the area's many retail and commercial destinations, while it sits within a short distance to US Highway 281, thereby providing excellent connectivity to the city's major employers.
Unit Mix
| Unit Type | Avg SF/Unit | Avg Rent | Rent PSF | Avg Rent (In-Place) | Rent PSF (In-Place) | Lease Type |
| Studio | 485 | $745 | $1.54 | $741 | $1.53 | NMI |
| 1 BD / 1 BA (Small) | 520 | $835 | $1.61 | $820 | $1.58 | NMI |
| 1 BD / 1 BA (Large) | 720 | $930 | $1.29 | $896 | $1.24 | NMI |
| 2 BD / 2 BA (Small) | 800 | $1,050 | $1.31 | $945 | $1.18 | NMI |
| 2 BD / 2 BA (Large) | 920 | $1,050 | $1.14 | $1,038 | $1.13 | NMI |
| 2 BD / 2 BA (XL) | 940 | $1,050 | $1.12 | $1,078 | $1.15 | NMI |
| 2 BD / 2.5 BA | 1,040 | $1,080 | $1.04 | $1,067 | $1.03 | NMI |
| 3 BD / 1.5 BA | 1,100 | $1,300 | $1.18 | $1,161 | $1.06 | NMI |
| Totals / Averages | 727 | $939 | $1.29 | $919 | $1.26 |
Sales Comparables
| Ivy Plains | Seven Pines | Amber Hill | The Establishment | Villa de Oro | Arcos | RiverBend | Willow Run | Averages | South Hill Apartments (Going-in) | |
| Sale Date | 05-15-2022 | 06-15-2022 | 06-15-2022 | 08-15-2022 | 09-15-2022 | 02-15-2022 | 04-15-2023 | 09-01-2022 | ||
| Sale Price | $15,500,000 | $9,500,000 | $27,100,000 | $13,642,000 | $17,000,000 | $13,400,000 | $18,000,000 | $12,700,000 | $15,855,250 | $11,700,000 |
| Year Built | 1974 | 1969 | 1969 | 1969 | 1987 | 1970 | 1984 | 1960 | 1972 | 1965 |
| # of Units | 135 | 87 | 244 | 144 | 150 | 117 | 200 | 154 | 154 | 174 |
| Average Unit Size | 735 SF | 695 SF | 788 SF | 744 SF | 603 SF | 771 SF | 730 SF | 867 SF | 742 SF | 727 SF |
| Sales Price / Unit | $114,815 | $109,195 | $111,066 | $94,736 | $113,333 | $114,530 | $90,000 | $82,468 | $103,768 | $67,241 |
| Sales Price / SF | $156 | $157 | $141 | $127 | $188 | $149 | $123 | $95 | $142 | $93 |
| Distance from Subject Property | 1.4 mi | 6.1 mi | 17.5 mi | 10.0 mi | 6.9 mi | 16.8 mi | 3.5 mi | 12.9 mi | 9.4 mi |
Lease Comparables
| Highland Hills | Brooksfield Apartments | Ivy Plains at Brooks | Salem Creek | RiverBend | The Aliso | Ridge at Southcross | Averages | South Hill Apartments | |
| Distance from Subject Property | 2.0 mi | 1.1 mi | 1.4 mi | 3.2 mi | 3.5 mi | 3.3 mi | 2.3 mi | 2.4 mi | |
| Year Built | 1956 | 1987 | 1978 | 1985 | 1984 | 1965 | 1974 | 1975 | 1965 |
| Number of Units | 176 | 156 | 135 | 75 | 200 | 176 | 210 | 161 | 174 |
| 1 Bedrooms | Averages | Market Rent (Target Rent) | |||||||
| $ / Unit | $820 | $999 | $1,149 | $1,041 | $811 | $999 | $795 | $945 | $835 |
| Square Feet | 529 SF | 500 SF | 667 SF | 560 SF | 516 SF | 640 SF | 618 SF | 576 SF | 520 SF |
| $ / SF | $1.55/SF | $2.00/SF | $1.72/SF | $1.86/SF | $1.57/SF | $1.56/SF | $1.29/SF | $1.65/SF | $1.61/SF |
| 1 Bedrooms | |||||||||
| $ / Unit | $840 | $1,098 | N/A | $1,066 | $765 | $945 | N/A | $943 | $930 |
| Square Feet | 546 SF | 675 SF | N/A | 678 SF | 678 SF | 740 SF | N/A | 663 SF | 720 SF |
| $ / SF | $1.54/SF | $1.63/SF | N/A | $1.57/SF | $1.13/SF | $1.28/SF | N/A | $1.43/SF | $1.29/SF |
| 2 Bedrooms | |||||||||
| $ / Unit | $965 | $1,170 | $1,371 | $1,354 | $869 | $1,213 | $965 | $1,130 | $1,050 |
| Square Feet | 682 SF | 790 SF | 971 SF | 844 SF | 837 SF | 840 SF | 861 SF | 832 SF | 920 SF |
| $ / SF | $1.41/SF | $1.48/SF | $1.41/SF | $1.60/SF | $1.04/SF | $1.44/SF | $1.12/SF | $1.36/SF | $1.14/SF |
| 2 Bedrooms | |||||||||
| $ / Unit | $913 | N/A | N/A | $1,386 | $924 | N/A | $1,292 | $1,129 | $1,080 |
| Square Feet | 694 SF | N/A | N/A | 901 SF | 910 SF | N/A | 1,132 SF | 909 SF | 1,040 SF |
| $ / SF | $1.32/SF | N/A | N/A | $1.54/SF | $1.02/SF | N/A | $1.14/SF | $1.25/SF | $1.04/SF |
Market Overview
CSC believes in the importance of stable and long-term economic drivers and engines when evaluating the merits of urban markets and multifamily projects, particularly in the face of potential economic headwinds in the year to come. For CSC, the big three long-term economic drivers of any US metro include “eds” (education institutions/universities), “feds” (federal spending), and “meds” (healthcare/medical institutions). San Antonio has it all, and these segments have been growing in the last few years. The largest and most well-known university in San Antonio is the University of Texas at San Antonio with 34,000 undergraduates, but the city also boasts campuses for Trinity College and San Antonio College. According to YardiMatrix, the education and health services sectors led job gains in 2022 in the city with 15,200 new jobs. The University of Texas at San Antonio recently opened its $92 mil new data science building, in the first phase of the school’s 10-year plan to revitalize its downtown campus. Not for nothing, San Antonio is also called "Military City" with four military bases, including Fort Sam Houston, Camp Bullis, Randolph Air Force Base, and Lackland Air Force Base, comprised of 70,000 members. The City of San Antonio also estimates that the United Services Automobile Association (USAA), the insurance and banking provider for military families, employs just over 19,000 employees. According to Fannie Mae, San Antonio has averaged more than 28,000 new residents per year for the last four years. Driven in part by the growth in those long-term driver market segments, the population is forecasted to grow this year at twice the speed of the national average, with the 20-to-34-year-old segment growing even faster.
Submarket Overview
The Brooks City neighborhood, previously known as the Brooks City Air Force Base, is rapidly becoming a cluster of new retail, restaurants, manufacturing, and new housing. This pocket of south San Antonio, where the South Hill sits, is a 1,308-acre mixed-use community approximately 7 miles south of the city's downtown. According to the Brooks Development Authority, since 2001, when the Air Force base was finally closed by the US Government, more than $1.2 billion has been invested into the area, which is rapidly changing the area landscape. As of 2022, according to Northmarq, the population at Brooks had increased by 14.4% to 43,236 since 2012 and 13,250 regional jobs had been created at the surrounding businesses. Several significant and recent corporate announcements are helping to expand the area beyond its historically renter-by-necessity demographic. OKIN BPS, a Prague-based business processes supplier, for example, set plans in 2018 to invest nearly $23 million in Brooks to build its headquarters. Cuisine Solutions at Brooks, in another example, cut the ribbon on a very large and new $200 million facility in 2021 with a goal of bringing 300 new employees to Brooks. As more companies continue to open up operations at Brooks, and the word gets out about some of the new restaurants and retail options, the submarket is expected to see an influx of renters coming from more traditional suburban locations like Northwest and Far West San Antonio. As a result, CSC believes South Hill is well situated for steady demand in the medium term.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| GP Equity(1) | $500,000 | $2,874 |
| LP Equity | $4,324,000 | $24,851 |
| Senior Loan | $8,925,000 | $51,293 |
| Total Sources of Funds | $13,749,000 | $79,017 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $11,700,000 | $67,241 |
| Acquisition Fee (1%) | $117,000 | $672 |
| CapEx | $1,347,000 | $7,741 |
| Closing Costs(2) | $585,000 | $3,362 |
| Total Uses of Funds | $13,749,000 | $79,017 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
The expected terms of the debt financing are as follows:
- Lender: Fannie Mae
- Loan Type: Permanent Loan
- Term: 84 Months
- Loan-to-Value (LTV): 76.3%
- Loan-to-Cost (LTC): 64.9%
- Estimated Proceeds: $8,925,000
- Interest Type: Fixed
- Annual Interest Rate: 153 bps over 7-year Treasury (Indicative Rate, Fixed Rate to be set prior to Closing)
- Interest-Only Period: 84 Months
- Prepayment Terms: Yield Maintenance
- Extension Requirements: N/A
- Recourse Description: Non-Recourse
(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt.
Cooper Street Capital intends to make distributions from CSC South Hill Realty Capital, LLC as follows:
- Pari passu all cash flow available for distribution to the Equity Investors(1) until the Equity Investors receive a Preferred Return of 10.0% IRR;
- 70% / 30% (70% to LP Equity Investors(2) / 30% to GP Equity Investors(3)) of all cash flow available for distribution thereafter.
Cooper Street Capital intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).
Distributions are expected to start in July 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Cooper Street Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Cooper Street Capital will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||
| Year 1 | Year 2 | Year 3 | ||
| Effective Gross Revenue | $2,032,400 | $2,186,644 | $2,252,810 | |
| Total Operating Expenses | ($1,219,875) | ($1,282,768) | ($1,296,896) | |
| Net Operating Income | $812,525 | $903,876 | $955,914 | |
| Project-Level Cash Flows | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($4,824,000) | $306,796 | $398,148 | $7,662,748 |
| Investor-Level Cash Flows(4) | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($2,000,000) | $127,196 | $155,070 | $2,896,169 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(4) | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($50,000) | $3,180 | $3,877 | $72,404 |
(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including Cooper Street Capital.
(2) LP Equity Investors include members part of the Limited Partnership.
(3) GP Equity Investors include members part of the General Partnership, including Cooper Street Capital.
(4) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to Cooper Street Capital's materials for details. The following fees and compensation will be paid(1)(2):
| One-Time Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Acquisition Fee | 1.0% of Purchase Price | Sponsor Affiliate | Capitalized Equity Contribution |
| Mortgage Brokerage Fee | 1.0% of Loan Proceeds | Sponsor Affiliate | Capitalized Equity Contribution |
| Financing Fee | 1.0% of Loan Fees | Sponsor/Sponsor Affiliate | Capitalized Equity Contribution |
| Technology Solution Licensing Fee(xx) | Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution | RM Technologies, LLC |
Capitalization (at Sponsor’s discretion) |
| Recurring Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Property Management Fee | 2.5% of Gross Rental Income | Sponsor/Sponsor Affiliate | Cash Flow |
| Asset Management Fee | 0.5% of Gross Rental Income | Sponsor/Sponsor Affiliate | Cash Flow |
| Construction Management Fee | 5.0% of Total Costs Before Contingency | CSC Management, LLC | Construction Expenditure Budget |
| Administration Solution Licensing Fee | Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of RM Technologies’ Administration Solution | RM Technologies, LLC | Cash Flow |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
Sponsor’s Projects and Targets
*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates. RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates. There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate. The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance. There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets. Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.
No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC or it Affiliates
The information on this Page, including the Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”) was provided by the Sponsor or an affiliate thereof. RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. No part of the information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s Investment Documents. The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.
Sponsor’s Information Qualified by Investment Documents
The Information on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment. The information on this page should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between the information on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents. The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.
Risk of Investment
This real estate investment is speculative and involves substantial risk. There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved. In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.
Risk of Forward-Looking Statements
Forward-looking statements are found here and in the applicable Investment Documents and may include words like “expects,” “intends,” “anticipates,” “estimates” and other similar words. These statements are intended to convey the Project Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please see the applicable Investment Documents for disclosure relating to forward-looking statements. All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents. Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.
Sponsor’s use of Debt
A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all. All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the risk of loss. If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.
In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.
Sponsor’s Offering is Not Registered
The interests offered by the Sponsor will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement.”). In addition, the interests will not be registered under any state securities laws in reliance on exemptions from registration. Such interests are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act. Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.
RM Technologies, LLC Fees and Conflicts
RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution. A portion of the offering proceeds may be allocated as a reserve to ensure timely payment of the ongoing licensing fees for RM Technologies’ Administration Solution. For the avoidance of doubt, the Administration Solution Fee is not due with respect to any quarter until the Administration Solution has been provided by RM Technologies and without regard to any amounts on reserve for the payment of such fees. An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor. The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering. RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
No Investment Advice
None of RM Technologies nor any affiliate are registered as a broker, dealer, investment adviser, or funding portal (except with respect to RM Adviser, LLC, which has no involvement in the transactions to be consummated hereby or contemplated herein and solely for the purposes hereof, shall not be deemed an affiliate or RM Technologies). They do not provide investment advice or recommend the purchase of any securities that are the subject of this agreement or the Sponsor’s offering with respect to the Project. Project Sponsor’s use of the Platform, including Project Sponsor’s license to utilize the Platform and any related technology, software and supporting services, Project Sponsor’s posting of offering documents and all related information on the Platform does not constitute the approval of or endorsement by RM Technologies or any of its affiliates of Project Sponsor’s securities offering with respect to the Project or signify the suitability thereof in any manner.
For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.