302 North Apartments

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Funded

Estimated Hold Period 2 Years

Estimated First Distribution 5/2025

FUNDED 100%

...

View Our Due Diligence Process

Offered By

Cooper Street Capital

Investment Strategy Value-Add

Investment Type Equity

Minimum Investment 35000

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Overview

The 302 North Apartments represent an opportunity to acquire a well-located, stabilized, 1980s vintage multifamily asset, in a fast-growing sub-market of Austin, TX, and at an attractive basis from an operator seeking an expedited sale.

Basis

Over the last year, the multifamily real estate market in the US has faced an evolving set of challenges primarily driven by the rapid rise of interest rates. As interest rates have increased, buyers have dropped the values they are willing to pay for new acquisitions, and many operators, particularly those with short-term, floating rate debt (such as the seller of 302 North), are facing "cash crunch" problems and in some cases, the reality that an asset's current value may be less than the in-place loan amount. The Sponsor believes this dynamic is playing out in real-time at 302 North. While the current operator is able to sell 302 North above the loan balance, the purchase price of $25,250,000 ($143,465 per unit) represents an approximate 33% markdown from the most recent appraisal of $37,200,000 completed in 2022⁽¹⁾. Cooper Street Capital ("CSC") believes that the seller was willing to accept this markdown to free up liquidity where it was possible to do so in their portfolio.

(1) The Sponsor intends to obtain a new appraisal in connection with this acquisition. The reference of the appraisal from 2022 is in no way meant to anticipate the value that the new appraisal may determine.

Attractive Financing

CSC will structure the acquisition of 302 North by assuming the seller's in-place $23,031,000 Fannie Mae Structured Arm note. The benefits of assuming the in-place loan versus placing new financing are numerous. The Note has approximately 9 years remaining to its maturity on October 1st, 2032, all of which have interest-only ("IO") required payments. Because of the structure of the note, CSC will have maximum flexibility to exit the investment because the prepayment penalty will be 1% of the loan amount, whereas fixed-rate financing typically has a defeasance or minimum interest payment penalty, whenever the partnership sells. And, lastly, the in-place and replacement rate cap agreement will cap interest payments at 4.00% over the 30-day SOFR index, resulting in a maximum interest rate of 6.30%. In the event the 30-day SOFR index declines further (as some economic projections imply), interest costs for the Project could be reduced further.

Asset Quality

For CSC, 302 North's current physical condition and strong exterior presentation allow for a relatively smaller required capital expenditure ("CapEx") budget and will mitigate execution and operational risk. Over the last three years, the seller has completed nearly $1.8 million of CapEx projects, including replacing the asset's pitched roof and updating the asset's interiors with vinyl plank flooring, stainless steel appliances, and in-unit washer and dryers. As the wiring and plumbing are also copper, the majority of CSC's CapEx budget will be deployed for "defensive maintenance" purposes to provide for the longevity of the asset.

Property at a glance

# Units 176

Current Occupancy 88.6%

Year Built 1987

Total CapEx Budget $850,000

Exit Cap Rate 5.50%

Acquisition Price $25,250,000

Investment Highlights

302 North was initially marketed in the spring of 2023 by the investment sales group Walker & Dunlop. The whisper price was $33 million, but at the call for offers, the maximum bid that the seller received was for $28 million. The seller decided to wait to see if interest rates would moderate, thereby potentially boosting the value of future offers. Attracted by the fundamentals and growth of the Georgetown market and the overall quality of the asset, Cooper Street Capital ("CSC") decided to keep a hand on the pulse of any potential sale. By the end of the summer, the US 10-year Treasury rate rose to over 5.0%, and the seller decided to meet the market. Now, CSC has 302 under contract for $25,250,000, and the Project is expected to close in mid-March.

Since its inception in 2011, CSC has completed nearly $1.2B of multifamily transactions across the US, representing over 10,500 multifamily units. Austin has been one of CSC's primary investment markets during that time, and the firm has acquired a total of 2,102 units in the market since its first project in 2016 (of which 1,981 units have now gone full cycle). As a result, CSC has been able to closely track asset values and rent pricing in the market for the last six years, and CSC has a strong network of local vendors and contractors that will allow the 302 North acquisition to get off to a quick start.

CSC is a fully vertically integrated real estate platform. Each of the firm's properties is managed in-house by CSC Management, a subsidiary property management company owned by the Sponsor. The firm does not use third-party management and does not manage any property that the firm does not own. It is again becoming evident how important highly attentive, focused, and detail-oriented property management is as inflation slows relative to the last few years and properties can no longer rely on rapidly increasing rent prices for success. After years of iterating, CSC has found that the most effective operations are rooted in a direct line between the asset management team and the on-site team with no layers of management in between.

CSC is a repeat sponsor on the RealtyMogul technology platform with a proven track record. The firm has completed two projects full-circle using the RealtyMogul technology platform, including Barberry Village Apartments in Portland, OR, which sold for a project level 36.60% IRR, and the Amber Hill Apartments in San Antonio, which sold for a project level 63.30% IRR. CSC recently had a project on the technology platform called the South Hill Apartments.

The in-place Fannie Mae Structured Arm note has a floating interest rate that is calculated as the sum of a 230 bps spread plus the 30-day average SOFR index rate (underlying index + spread). The seller has an in-place cap rate agreement that "caps" the SOFR index rate exposure to a maximum of 4.00% with an all-in maximum rate today of 6.30%. CSC will purchase a new rate cap with Chatham Financial for another two-year term and the same maximum exposure of 4.00% of the base SOFR index. In addition, the forward-looking 30-day average SOFR rate curve is projected to fall below the cap level of 4.00% at the start of 2025. If the SOFR rate falls below 4.00%, the all-in rate will decrease.

302 North is located in downtown Georgetown, TX in the greater Austin MSA and approximately 20 miles from Austin's Domain, which many consider to be the city's "second downtown." The benefits of being close to Austin are numerous, but Georgetown as a town has several strong and noteworthy underlying fundamentals. Not only has Georgetown been the destination for several headline tech investments and corporate relocations, but the town's population also grew at one of the fastest paces in the US at 14.4% in 2022.

Since the onset of the pandemic, Austin has been among the top cities for construction deliveries, softening multifamily operating conditions. Along with rising rates, this dynamic is likely partially why CSC was able to pick up 302 North for such a favorable price. In the immediate term, construction is expected to outpace household formation, but CSC believes that construction pipeline data shows a growing supply gap due to more stringent lender underwriting, elevated construction costs, and a rising interest rate environment. Construction starts were at their peak in Q2 2022, and construction starts are now down 47% from that point.

CSC is optimistic about the longer-term outlook of Austin and Georgetown given the broader area's strong positive demographic growth and continued expansion in high-growth industries. Over the last decade, the Austin MSA grew by 33% and Williamson County, where 302 North sits, grew by 44.1%, according to the Austin Chamber of Commerce.

Management

Cooper Street Capital

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.

https://www.cooperstreetcapital.com/

Brandon Cooper

Managing Partner
Matt Cooper

Director of Acquisitions

Brandon Cooper

Managing Partner

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.

Matt Cooper

Director of Acquisitions

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.

Track Record

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	$26,000,000	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
South Hill Apartments	San Antonio, TX	Multifamily	OWNED	10/12/2023	174	$11,700,000	$11,700,000	N/A	N/A
Totals/Weighted Average					10,574	$943,192,000	$1,185,779,000

The above bios and track record were provided by Cooper Street Capital and have not been independently verified by RealtyMogul.

The investment strategy for the 302 North Apartments will be a slight departure from the "value-add" investment strategies that Cooper Street Capital ("CSC") most often implements. On the scale of multifamily investment strategies, the 302 North Apartments can be more closely categorized as one with a "core-plus" approach. More often than not, CSC is looking for arbitrage opportunities in the real estate market and, particularly, for assets that have notably underwhelming exterior presentation and lower-quality interior living conditions. These dynamics are often associated with financial underperformance, which can be isolated and addressed in order to drive an asset's value. For 302 North, the asset presents well from the street, and the interiors of the asset have all been upgraded by the current owner with stainless steel appliances, backsplash, and in-unit washers and dryers. As could be expected, the in-place rents at the asset, by consequence, are averaging $1.95-$2.00/SF, in line with nearby competitors. By consequence, CSC will not bring a large-scale capital expenditure budget ("CapEx") for a unit-by-unit interior upgrade program. Instead, CSC will use a smaller, more targeted CapEx budget of $850k to address deferred maintenance issues and to proactively replace and upgrade physical component parts to provide for long-term productive use. The less demanding CapEx requirements are expected to reduce execution and operational risk. Further, in contrast to many of its competitors, CSC will actively manage 302 North with its in-house property management company, CSC Management, to aggressively mitigate against vacancy and bad debt loss. The asset is stable now, and CSC will manage to consistently stable operations over a two-year projected hold period. Finally, CSC is acquiring the 302 North Apartments for an appropriate going-in T-12 capitalization rate ("cap rate") of 5.88% (or unlevered return of investment), which correctly reflects today's higher costs of borrowing in the current rate environment and the risk/reward profile of multifamily assets relative to the yield on other assets. The acquisition will be structured by assuming the in-place Fannie Mae Structured Arm loan, which has 9 years until maturity and a maximum prepayment penalty of 1% of the loan balance. With this going-in valuation, time horizon, and prepayment flexibility, CSC will have the ability to sell the asset back into the market if valuations rebound and interest rates come down from their current level, as some economic forecasts suggest.

CapEx Breakdown

Interior Renovations	Total Amount	Per Unit
Miscellaneous Interior Upgrades (as needed)	$55,000	$313
Total Interior Renovation Costs	$55,000	$313

Exterior Renovations	Total Amount	Per Unit
HVAC-Related Repairs	$366,600	$237
Concrete Repairs	$25,000	$142
CSC Branding Directionals	$25,000	$142
Landscape	$40,000	$227
Miscellaneous carpentry/ stair securing	$20,000	$16
Water Damage Repair	$8,400	$6
Gutter Repair	$30,000	$6
Pool Deck Crack	$80,000	$682
Carpentry and Stone Wall Repair	$50,000	$1,023
Paint	$30,000	$114
Total Exterior Renovation Costs	$675,000	$2,595

Other Costs	Total Amount	Per Unit
Marketing	$10,000	$57
Construction Management (5%)	$40,000	$227
Reserve	$70,000	$398
Total Other Costs	$120,000	$682

Grand Total	$850,000	$3,590

Property Information

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

Comparables

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

Location Information

Market Overview

Austin earned the nickname the “Silicon Hills” as early as the 1980s, as tech leaders like Dell, Intel, IBM, and Cisco began moving a larger presence and satellite offices to the area. Corporate relocations and tech investment began to pick up in earnest, however, over the last 10 years to rival other coastal markets like San Francisco and New York City. Austin is now home to 5,500 tech companies and startups, including the above listed companies as well as major offices for Tesla, Facebook, Google, Oracle, and Amazon. The firms have brought job and population growth to The Domain and Tech Ridge neighborhoods in particular (20 minutes from 302 North), while also strengthening network effects in the high-tech, manufacturing, and professional services sectors.

According to The Austin Chamber of Commerce, a year-over-year increase of 51,000 (4.1%) new jobs makes it one of the top-performing labor markets in the US and a favorable place to launch and build a career. To keep pace with the demands of Austin’s booming job market, the MSA has also seen healthy demographic growth. Ranked the fastest growing of the 100 largest metros in the United States, Austin’s population increased by 2.8% from 2021 to 2022 and 2.4% from 2022 to 2023, putting Austin as the 10th largest city in the US. Over the last 10 years, Austin's metro has grown by 33%, and it has become one of the hottest multifamily markets as a result.

Beyond the booming tech sector, Austin’s economy has no shortage of stabilizing segments and long-term economic drivers. The State of Texas employs 63,000, the University of Texas at Austin employs 23,000, and the City of Austin employs over 15,000 workers. The addition of two new hospitals, Texas Children’s Hospital and Dell Children’s Medical Center, round out Austin’s robust economy and are expected to bring another influx of talent to North Austin.

Submarket Overview

The state of Texas has seen tremendous demographic and job growth over the last 10 years, driven mainly by young professionals fleeing higher-cost coastal markets like San Francisco and New York. While Austin is often cited as one of the primary destinations for population growth and corporate investment, the state's fast growth also includes what is often cited as "the fastest-growing city in the US," Georgetown, TX, where the 302 North Apartments sit. Georgetown's population increased 14.4% year over year from 2022 to 2023 from 75,620 to 86,507, according to the US Census Bureau, while the county (Williamson County) grew by 44.1% over the last 10 years. Professionals commute between Austin and Georgetown, the sector networks between them are robust, and Georgetown is often considered a "suburb of Austin," but the city is very much its own market with attractive underlying economic fundamentals. One of the main anchors of employment and household demand in the market is Southwestern University, which is a private liberal arts college with ~1,500 undergraduate students. The city has an old-time Texas charm with a historic downtown square, but in recent years the city has also seen enviable growth in the high-tech, manufacturing, and professional services sectors. At the end of 2023, in a notable example, a New Jersey-based company that builds equipment used for cloud computing and artificial intelligence systems called ZT Systems, acquired a 435,000-square-foot building in Georgetown, where it plans to open a manufacturing plant and hire 1,500 people. At the same time, Valex, a manufacturer of a key part in semiconductors, Enflite, a manufacturer of aircraft components, and CeLink, a manufacturer of EV car parts, also all have manufacturing facilities in Georgetown.

Gallery

Cap Stack

Sources & Uses

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.

Debt Assumptions

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.

Distributions

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.

Fees

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.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.

RM Securities, LLC and its Affiliates Compensation

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, LLC

Sponsor 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 Documents

The 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 Investment

This 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 Assumptions

Sponsor 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 Performance

Any 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 Debt

A 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 Registered

Sponsor’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 Advice

Nothing 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 Risk

Internal 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.

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