Risk and Quality Controls
Steps we take to mitigate risk on the Platform
Sponsors

We run extensive background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to never allowing a sponsor with a criminal history / any securities related issue to use the platform, we may also turn down sponsors due to poor reference checks even if background and criminal checks come back clear.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent. When an investor makes an investment with unaffiliated sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.

Boots on the ground

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.

Detailed Checklists

We have robust quality controls with detailed checklists and a review of third-party reports.

Confidentiality Agreement
To access the Sponsor’s private offering documents for this investment, you must first acknowledge and agree to the below.
By clicking the ‘I Agree’ button below:
Open for investment
Target IRR  18%-20% *
19%
Target Avg. Cash on Cash* 2.1%
Target Equity Multiple* 1.41X
Estimated Hold Period* 2 Years
...
View our Risk and Quality Controls.
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Offered By
Cooper Street Capital
Investment Strategy Value-Add
Investment Type Equity
Estimated First Distribution 5/2025
Minimum Investment 35000
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
Cumulative Distributions

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. 

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:

  1. 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;
  2. 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.

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.

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