Cooper Street Capital (“CSC”) provides investment access to the commercial real estate space for retail, family office, 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.
The 302 North Apartments are a well-maintained, well-located, 1980s vintage, multifamily apartment community located in downtown Georgetown, TX. The 176-unit complex is positioned in close proximity to major transportation arteries, including IH-35 & Hwy 130, with access to several major employers in the area and northern Austin. Since the current owner purchased the Property in 2017, the asset has seen a systematic interior upgrade inclusive of granite countertops, stainless steel appliances, tile backslash, and in-unit washers and dryers. The roofs are pitched and were recently replaced in 2018, and the plumbing and wiring are both copper.
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Avg Rent (Proforma) | Rent PSF (Proforma) | Avg Rent (In-Place) | Rent PSF (In-Place) |
| 1 Bedroom / 1 Bath - Small | 48 | 447 | $1,180 | $2.64 | $1,128 | $2.52 |
| 1 Bedroom / 1 Bath - Large | 32 | 614 | $1,300 | $2.12 | $1,285 | $2.09 |
| 2 Bedroom / 1 Bath | 48 | 710 | $1,490 | $2.10 | $1,431 | $2.02 |
| 2 Bedroom / 2 Bath | 48 | 902 | $1,570 | $1.74 | $1,520 | $1.69 |
| Totals / Averages | 176 | 673 | $1,393 | $2.07 | $1,346 | $2.00 |
Lease Comparables
| Georgetown Park | Elevate Apartments | Indian Creek | Waters Edge | Fox Fire | Averages | 302 North Apartments | |
| Year Built | 1984 | 1998 | 1994 | 1999 | 1983 | 1991 | 1987 |
| # of Units | 159 | 176 | 240 | 330 | 160 | 213 | 176 |
| Distance from Subject Property | 3.0 mi | 0.8 mi | 3.8 mi | 1.6 mi | 10.0 mi | 3.8 mi | |
| 1x1 | |||||||
| $ / Unit | $1,196 | $1,290 | $1,253 | $1,280 | N/A | $1,255 | $1,228 |
| Square Feet | 447 SF | 668 SF | 582 SF | 610 SF | N/A | 577 SF | 514 SF |
| $ / SF | $2.68/SF | $1.93/SF | $2.15/SF | $2.10/SF | N/A | $2.21/SF | $2.39/SF |
| 2x1 | |||||||
| $ / Unit | $1,291 | N/A | $1,347 | N/A | $1,399 | $1,346 | $1,490 |
| Square Feet | 750 SF | N/A | 768 SF | N/A | 719 SF | 746 SF | 710 SF |
| $ / SF | $1.72/SF | N/A | $1.75/SF | N/A | $1.95/SF | $1.81/SF | $2.10/SF |
| 2x2 | |||||||
| $ / Unit | $1,535 | $1,757 | $1,537 | $1,541 | $1,699 | $1,614 | $1,570 |
| Square Feet | 850 SF | 895 SF | 955 SF | 1,031 SF | 850 SF | 916 SF | 902 SF |
| $ / SF | $1.81/SF | $1.96/SF | $1.61/SF | $1.49/SF | $2.00/SF | $1.77/SF | $1.74/SF |
Sales Comparables
| 12 Oaks | Iron Horse Flats | Hunt Club Apartments | Shadow Oaks | Cedar Station | Balcones Club | Rail at Georgetown | The Latern | Rock Spring Duplexes | Arbor Trails | Averages | 302 NORTH APARTMENTS (Going-In) | |
| Sale Date | 08-01-2023 | 10-01-2022 | 08-01-2022 | 05-01-2022 | 05-01-2022 | 03-01-2022 | 12-01-2021 | 10-01-2021 | 03-01-2021 | 09-01-2020 | ||
| Sales Price | $4,492,308 | $38,500,000 | $76,800,000 | $35,000,000 | $4,250,000 | $66,456,000 | $12,150,000 | $60,000,000 | $33,500,000 | $10,000,000 | $34,114,831 | $25,250,000 |
| Year Built | 1984 | 1985 | 1987 | 1985 | 1985 | 1983 | 1983 | 1983 | 1985 | 1984 | 1984 | 1987 |
| # of Units | 32 | 200 | 384 | 176 | 22 | 312 | 111 | 316 | 152 | 100 | 180 | 176 |
| Average Unit Size | 832 SF | 741 SF | 831 SF | 749 SF | 855 SF | 823 SF | 530 SF | 877 SF | 1066 SF | 577 SF | 788 SF | 673 SF |
| Sales Price / Unit | $140,385 | $192,500 | $200,000 | $198,864 | $193,182 | $213,000 | $109,459 | $189,873 | $220,395 | $100,000 | $175,766 | $143,466 |
| Sales Price / SF | $169 | $260 | $241 | $266 | $226 | $259 | $207 | $217 | $207 | $173 | $222 | $213 |
| Distance from Subject Property | 13.0 mi | 26.0 mi | 16.0 mi | 20.0 mi | 14.0 mi | 22.4 mi | 2.3 mi | 13.0 mi | 13.0 mi | 11.0 mi | 15.0 mi |
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| GP Equity(1) | $565,000 | $3,210 |
| LP Equity | $5,074,000 | $28,829 |
| Senior Loan | $23,031,000 | $130,858 |
| Total Sources of Funds | $28,670,000 | $162,898 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $25,250,000 | $143,466 |
| Acquisition Fee (1%) | $252,500 | $1,435 |
| Capital Expenditure Budget ("CapEx") | $850,000 | $4,830 |
| Closing Costs | $1,220,000 | $6,932 |
| Interest Reserve | $1,097,500 | $6,236 |
| Total Uses of Funds | $28,670,000 | $162,898 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
The expected terms of the debt financing are as follows:
- Lender: Fannie Mae
- Loan Type: Permanent Loan
- Term: 120 Months(2)
- Loan-to-Value (LTV): 91.2%
- Loan-to-Cost (LTC): 80.3%
- Estimated Proceeds: $23,031,000
- Interest Type: Floating
- Spread Above SOFR: 2.30%
- Interest-Only Period: 120 Months(2)
- Amortization: Full-Term Interest Only
- Prepayment Terms: 1% prepayment premium
- Extension Requirements: None
- 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 Sponsor's use of debt.
(2) The Sponsor is assuming a loan originated on September 30th, 2022, with an original term of 10 years. The loan matures on October 1st, 2032.
(3) As part of the acquisition, CSC will purchase a new interest rate cap using Chatham Financial. The terms of the rate cap are expected to match the seller's existing rate cap agreement, including a 2-year term and a maximum rate of the 30-day SOFR average at 4.00%. The projected cost to purchase this rate cap is estimated to be $335k, which is budgeted in the closing costs for the 302 North acquisition. While the projected cost is currently $335k, the final cost will be determined by market factors at the time it is purchased right before the closing.
Cooper Street Capital intends to make distributions from CSC 302 North 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 Manager(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 May 2025 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.
| Cash Flow Summary | |||
| Year 1 | Year 2 | ||
| Effective Gross Revenue | $2,920,235 | $3,140,475 | |
| Total Operating Expenses | $1,443,839 | $1,494,104 | |
| Net Operating Income | $1,476,397 | $1,646,371 | |
| Project-Level Cash Flows | |||
| Year 0 | Year 1 | Year 2 | |
| Net Cash Flow | ($5,639,000) | $30,762 | $8,502,404 |
| Investor-Level Cash Flows(4) | |||
| Year 0 | Year 1 | Year 2 | |
| Net Cash Flow | ($2,000,000) | $10,910 | $2,817,627 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(4) | |||
| Year 0 | Year 1 | Year 2 | |
| Net Cash Flow | ($50,000) | $273 | $70,441 |
(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) The Manager of the Company is BSC Ventures, LLC, an affiliate of the Sponsor. Its carried interest is 30% of the Company's profit over the Preferred Return.
(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 | 1.00% of Purchase Price | BSC Ventures, LLC | Capitalized Equity Contribution |
| Technology Solution Licensing Fee(2) | 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 | 3.00% of Gross Rental Income | CSC Management | Cash Flow |
| Construction Management Fee | 5.00% of Total Costs Before Contingency | CSC Management | Construction Expenditure Budget |
| Administration Solution Licensing Fee(2) | 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.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLCSponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including 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”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment DocumentsThe information on this Page 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 subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. 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. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering 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 offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership 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 Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.