Property Details
Stabilized Occupancy  Stabilized Income  Stabilized Cashflow  Below Market Rents  NOI Growth 
Asset Profile
Value Add

CSC Cottonwood Portfolio

Oregon, Texas & New Mexico

Multi-Family Property
Cooper Street Capital San Francisco, CA
Cooper Street Capital
  • IRR 17.3%
  • Equity Multiple 1.51x
  • Hold Period 3Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 6.5%
  • Stabilized Cash on Cash 8% in Y2
  • First Distribution Sep 2021
  • Distribution Frequency Quarterly
  • Co-Investment 12% ($700K)
  • Preferred Return 10%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 71.6%
  • Current Occupancy 90%

About this Property

"CSC Cottonwood Portfolio is a collection of five well located, stable, and cash flowing multifamily properties located across New Mexico, Oregon, and Texas."

- Matt Cooper, Cooper Street Capital

Property  Cottonwood Portfolio
# of Units 107
Average SqFt/Unit 741
Current Occupancy  90%
Current Average Rent $1,196
Average Market Rent  $1,265
Acquisition Price $19,222,000
Loan to Value (LTV) 71.6%
Stabilized LTV 61.4%
Property Addresses

Zeno Apts.

1425 SW Clay St Portland, OR

Pyramid Apts.

3600 Lafayette Dr Albuquerque, NM

1919 Portsmouth

1919 Portsmouth St Houston, TX

1903 Portsmouth

1903 Portsmouth St Houston, TX

420 W. Alabama

420 W. Alabama St Houston, TX

Year Built 1909 1978 1971 1971 1971
Year Renovated 2019 2020 2019 2019 2019
Average SF/Unit 600 687 993 835 591
# of Units 22 10 30 29 16
Current Occupancy 96% 90% 93% 83% 88%
Market Occupancy 93.3% 96% 87.6% 87.6% 87.6%
Current Avg. Rents $1,324 $792 $1,299 $1,260 $1,019
Market Avg. Rents $1,355 $836 $1,378 $1,378 $1,378

 

Top Questions

All answers are provided by the sponsor, Cooper Street Capital, or its representatives.

 

Why are you buying the Property?

Matt Cooper, Cooper Street Capital: "Cooper Street Capital ("CSC") is selling 60% of its $1,831,000 equity position in the portfolio (a position that represents 32% of the current partnership), at par and at no added gain, to free up company equity in order to continue our rapid company growth and to be able to source new acquisitions for partners. CSC is willing to sell shares of its equity position, for no gain, in exchange for liquidity, while also retaining a sizable position in the portfolio."

 

What are the most important aspects of this investment opportunity for the investors?

Matt Cooper, Cooper Street Capital: "The CSC Cottonwood Portfolio opportunity presents an opportunity for partners to “takeover” a portion of CSC's company position in five multifamily assets, geographically diversified across the Western US, as if they had participated at the initial acquisition with no added gain to CSC. In addition to the projected 7.3% cash-on-cash yield, partners who participate in the CSC Cottonwood Portfolio will face notably reduced acquisition, operations, interest rate, and construction risk across a stable portfolio. CSC has addressed the deferred maintenance at each asset, and each sits on a separate fixed rate loan."

"The Pyramid Apartments sit in the busy Montgomery Boulevard corridor in Albuquerque, within close proximity to CSC’s larger assets. Its dated finishes provided for a straight forward value-add opportunity, and CSC has spent $64,278 on upgrades. Likewise, at the Zeno Apartments, through interior renovations, CSC has brought to market a product that nearly competes on living standards but sits 20-30% below Class A on rent pricing in Portland. Traditional brick facade multifamily in the area has been surrounded with expensive new Class A product, and the Zeno has an ideal rent price point. Portland State University has also recently announced that in-person learning will resume in the fall of 2021, which CSC expects will greatly benefit the Zeno. Lastly, 1919 Portsmouth, 1903 Portsmouth, and 420 W. Alabama in Houston have the best exterior presentation of any CSC assets, and they are located within walking distance of the Texas Medical Center. Since takeover, CSC has been pushing to bring the interiors to the same standards with $238,000 in upgrades."

 

What is your investment strategy/business plan?

Matt Cooper, Cooper Street Capital: "The CSC Cottonwood Portfolio is comprised of 107 units across five communities that have shown resilience through the COVID-19 pandemic, including: The Pyramid Apartments, Zeno Apartments, 1919 Portsmouth, 1903 Portsmouth, and 420 West Alabama. CSC has owned and managed each property for more than two years. In today’s uncertain market climate, with historically low interest rates and substantial equity shifting to the multifamily real estate sector, thereby increasing competition and driving up asset prices, CSC is motivated to present projects where the opportunity is not dependent on the low cost of borrowing, where CSC's partners do not have to overpay just to participate, and where the going-in basis will allow for a justifiable and targeted exit. The CSC team believes the CSC Cottonwood Portfolio fits this profile. Going forward, CSC aims to continue operating these assets at a high level, to take advantage of the expected rebound from the COVID-19 pandemic, and then to sell in 2-3 years. CSC believes that the partnership can continue to take advantage of these assets' superior central locations to maintain occupancy and sustain cash flow in the medium term before selling all five properties."

 

How has COVID-19 impacted your business plan?

Matt Cooper, Cooper Street Capital: "The impact of Covid-19 on the Cottonwood Portfolio has been limited. While CSC's portfolio has seen a small increase in delinquent rent and a handful of residents applying for rental assistance, the portfolio weathered COVID-19 well. CSC will continue to focus on occupancy and rent collections as a means to offset the potential rise in bad debt figures if the residents struggle to pay rent."

 

How are risks being mitigated during the hold period?

Matt Cooper, Cooper Street Capital: "Partners who participate in the CSC Cottonwood Portfolio will face broadly reduced acquisition, operations, and construction risk when compared with a new acquisition. At the asset level, CSC's in-house property management company, CSC Management, has been operating each of the five assets in the portfolio for more than two years and has addressed all the deferred maintenance. CSC's on-site staff is familiar with the main selling points of these communities, how to drive traffic, and with the broader market dynamics and price points. Structurally, each of the assets has in-place financing on fixed rate loans, thereby nearly eliminating interest rate risk or the risk of rising rates due to inflation. Lastly, because CSC is selling part of its equity stake at par value, the portfolio provides for a competitive basis to partners for this portfolio."

 

NOTE: All answers provided by the sponsor, Cooper Street Capital, or its representatives.

About this Property

"CSC Cottonwood Portfolio is a collection of five well located, stable, and cash flowing multifamily properties located across New Mexico, Oregon, and Texas."

- Matt Cooper, Cooper Street Capital

Property  Cottonwood Portfolio
# of Units 107
Average SqFt/Unit 741
Current Occupancy  90%
Current Average Rent $1,196
Average Market Rent  $1,265
Acquisition Price $19,222,000
Loan to Value (LTV) 71.6%
Stabilized LTV 61.4%
Property Addresses

Zeno Apts.

1425 SW Clay St Portland, OR

Pyramid Apts.

3600 Lafayette Dr Albuquerque, NM

1919 Portsmouth

1919 Portsmouth St Houston, TX

1903 Portsmouth

1903 Portsmouth St Houston, TX

420 W. Alabama

420 W. Alabama St Houston, TX

Year Built 1909 1978 1971 1971 1971
Year Renovated 2019 2020 2019 2019 2019
Average SF/Unit 600 687 993 835 591
# of Units 22 10 30 29 16
Current Occupancy 96% 90% 93% 83% 88%
Market Occupancy 93.3% 96% 87.6% 87.6% 87.6%
Current Avg. Rents $1,324 $792 $1,299 $1,260 $1,019
Market Avg. Rents $1,355 $836 $1,378 $1,378 $1,378

 

Top Questions

All answers are provided by the sponsor, Cooper Street Capital, or its representatives.

 

Why are you buying the Property?

Matt Cooper, Cooper Street Capital: "Cooper Street Capital ("CSC") is selling 60% of its $1,831,000 equity position in the portfolio (a position that represents 32% of the current partnership), at par and at no added gain, to free up company equity in order to continue our rapid company growth and to be able to source new acquisitions for partners. CSC is willing to sell shares of its equity position, for no gain, in exchange for liquidity, while also retaining a sizable position in the portfolio."

 

What are the most important aspects of this investment opportunity for the investors?

Matt Cooper, Cooper Street Capital: "The CSC Cottonwood Portfolio opportunity presents an opportunity for partners to “takeover” a portion of CSC's company position in five multifamily assets, geographically diversified across the Western US, as if they had participated at the initial acquisition with no added gain to CSC. In addition to the projected 7.3% cash-on-cash yield, partners who participate in the CSC Cottonwood Portfolio will face notably reduced acquisition, operations, interest rate, and construction risk across a stable portfolio. CSC has addressed the deferred maintenance at each asset, and each sits on a separate fixed rate loan."

"The Pyramid Apartments sit in the busy Montgomery Boulevard corridor in Albuquerque, within close proximity to CSC’s larger assets. Its dated finishes provided for a straight forward value-add opportunity, and CSC has spent $64,278 on upgrades. Likewise, at the Zeno Apartments, through interior renovations, CSC has brought to market a product that nearly competes on living standards but sits 20-30% below Class A on rent pricing in Portland. Traditional brick facade multifamily in the area has been surrounded with expensive new Class A product, and the Zeno has an ideal rent price point. Portland State University has also recently announced that in-person learning will resume in the fall of 2021, which CSC expects will greatly benefit the Zeno. Lastly, 1919 Portsmouth, 1903 Portsmouth, and 420 W. Alabama in Houston have the best exterior presentation of any CSC assets, and they are located within walking distance of the Texas Medical Center. Since takeover, CSC has been pushing to bring the interiors to the same standards with $238,000 in upgrades."

 

What is your investment strategy/business plan?

Matt Cooper, Cooper Street Capital: "The CSC Cottonwood Portfolio is comprised of 107 units across five communities that have shown resilience through the COVID-19 pandemic, including: The Pyramid Apartments, Zeno Apartments, 1919 Portsmouth, 1903 Portsmouth, and 420 West Alabama. CSC has owned and managed each property for more than two years. In today’s uncertain market climate, with historically low interest rates and substantial equity shifting to the multifamily real estate sector, thereby increasing competition and driving up asset prices, CSC is motivated to present projects where the opportunity is not dependent on the low cost of borrowing, where CSC's partners do not have to overpay just to participate, and where the going-in basis will allow for a justifiable and targeted exit. The CSC team believes the CSC Cottonwood Portfolio fits this profile. Going forward, CSC aims to continue operating these assets at a high level, to take advantage of the expected rebound from the COVID-19 pandemic, and then to sell in 2-3 years. CSC believes that the partnership can continue to take advantage of these assets' superior central locations to maintain occupancy and sustain cash flow in the medium term before selling all five properties."

 

How has COVID-19 impacted your business plan?

Matt Cooper, Cooper Street Capital: "The impact of Covid-19 on the Cottonwood Portfolio has been limited. While CSC's portfolio has seen a small increase in delinquent rent and a handful of residents applying for rental assistance, the portfolio weathered COVID-19 well. CSC will continue to focus on occupancy and rent collections as a means to offset the potential rise in bad debt figures if the residents struggle to pay rent."

 

How are risks being mitigated during the hold period?

Matt Cooper, Cooper Street Capital: "Partners who participate in the CSC Cottonwood Portfolio will face broadly reduced acquisition, operations, and construction risk when compared with a new acquisition. At the asset level, CSC's in-house property management company, CSC Management, has been operating each of the five assets in the portfolio for more than two years and has addressed all the deferred maintenance. CSC's on-site staff is familiar with the main selling points of these communities, how to drive traffic, and with the broader market dynamics and price points. Structurally, each of the assets has in-place financing on fixed rate loans, thereby nearly eliminating interest rate risk or the risk of rising rates due to inflation. Lastly, because CSC is selling part of its equity stake at par value, the portfolio provides for a competitive basis to partners for this portfolio."

 

NOTE: All answers provided by the sponsor, Cooper Street Capital, or its representatives.

Offered By

Cooper Street Capital

Cooper Street Capital

San Francisco, CA

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Assets Under
Management

Currently
$400MM 10+ assets
Exited
$151MM 20+ assets
Portfolio LTV
64%  
Historical
Realized Returns

Total IRR
28.8%  
Equity Multiple
2.14x  
Annual Cash
8.7%  
Years Of
Experience

As Principals
5+ years  
In Business
8 years  
Size
10 Staff * Dedicated investor relations
* All information is reported by Cooper Street Capital as of 3/16/2021.
Assets Under
Management

Currently
$400MM 10+ assets
Exited
$151MM 20+ assets
Portfolio LTV
64%  
Historical
Returns

Total IRR
28.8%  
Equity Multiple
2.14x  
Annual Cash
8.7%  
Years Of
Experience

As Principals
5+ years  
In Business
8 years  
Size
10 Staff * Dedicated investor relations
* All information is reported by Cooper Street Capital as of 3/16/2021.

Financials

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Location Details

Oregon, Texas & New Mexico

Matt Cooper, Cooper Street Capital: "Each of the five assets in the CSC Cottonwood Portfolio are centrally located near large, stable, and long-term metro economic drivers and employers. The Zeno Apartments is located within a 10-minute walk from downtown Portland, OR, and a 5-minute walk from Portland State University. The University just announced in-person learning for the fall of 2021. 1919 Portsmouth, 1903 Portsmouth, and 420 W. Alabama are located in Houston's Montrose neighborhood, just north of the Texas Medical Center and three Universities, including Rice University. The Texas Medical Center provides for an employment anchor, with over 100,000 full time personnel. Lastly, the Pyramid Apartments sit in the busy and central Montgomery Boulevard corridor in Albuquerque, NM within close proximity to CSC’s larger assets, the University of New Mexico, and approximately 10-minutes by car from downtown Albuquerque."

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Offering Agreement Documents

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