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

Hyde Park Collective

Austin, TX

Multi-Family Property
Cooper Street Capital San Francisco, CA
Cooper Street Capital
  • IRR 17.6%
  • Equity Multiple 1.58x
  • Hold Period 3Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 7.2%
  • Stabilized Cash on Cash 7.7% in Y2
  • First Distribution Apr 2020
  • Distribution Frequency Quarterly
  • Asset Profile Value Add
  • Loan-to-Value 62%
  • Current Occupancy 97%

About this Property

Why These Properties?

Cooper Street Capital: The strength of the Hyde Park Collective is rooted in two key characteristics: (1) the central and close-in location of each asset in a fast growing and dynamic market and (2) the opportunity to participate in a value-add opportunity in a competitive real estate market and at an attractive price point. First, the portfolio of assets is located within walking distance of the University of Texas at Austin, a central economic hub with over 50,000 students, the Texas State Capital, and several major employers, together providing for what is arguably one of the more resilient multifamily markets for potential residents going-forward. Second, CSC has proven its ability to effectively manage the portfolio. Now, through the completion of modest interior upgrades, CSC believes it can capture upside on in-place rents estimated to be approximately 18% below comparable properties. There is notable capital interest in a portfolio with these characteristics in Austin, which is why CSC has opted to keep the portfolio and present the opportunity to partners.

 

Why Do You Like This Strategy?

Cooper Street Capital: CSC has confidence in the investment strategy because the firm has effectively managed the assets for two years, and their close relationship with residents and familiarity with the asset will be valuable going forward. CSC believes the recapitalization process will allow them to put into place a more systematic value-add program, to build on the success of their operations, and to sustain occupancy into the medium term. In recapitalizing the portfolio at a ~$158,000 per unit valuation, CSC believes partners will be participating at an attractive entry point, estimated to be 10-15% below what comparable assets have sold for on the open market.

 

How Are You Mitigating Risks?

Cooper Street Capital: There are three key items that are risk-mitigating with the Hyde Park Collective investment strategy. First, by participating at this portfolio level, partners have the opportunity to diversity across three individual and separate investment projects at the same time, and each property is structured with its own financing. Second, the underlying assets are individually leveraged with fixed financing and a blended DSCR of 1.5x. The risk stemming from fluctuations in interest rates is limited, and the current debt coverage provides a notable cover of future debt payments. Lastly, the larger “heavy-lifting” associated with new acquisitions, including larger deferred maintenance projects, of the properties has also been addressed. The scheduled upgrades to the assets will focus on interior unit upgrades, including new appliances, countertops, and backsplashes, which will be completed as units become vacant. There are ample data points to suggest that these upgrades will be well received in the market.

About this Property

Why These Properties?

Cooper Street Capital: The strength of the Hyde Park Collective is rooted in two key characteristics: (1) the central and close-in location of each asset in a fast growing and dynamic market and (2) the opportunity to participate in a value-add opportunity in a competitive real estate market and at an attractive price point. First, the portfolio of assets is located within walking distance of the University of Texas at Austin, a central economic hub with over 50,000 students, the Texas State Capital, and several major employers, together providing for what is arguably one of the more resilient multifamily markets for potential residents going-forward. Second, CSC has proven its ability to effectively manage the portfolio. Now, through the completion of modest interior upgrades, CSC believes it can capture upside on in-place rents estimated to be approximately 18% below comparable properties. There is notable capital interest in a portfolio with these characteristics in Austin, which is why CSC has opted to keep the portfolio and present the opportunity to partners.

 

Why Do You Like This Strategy?

Cooper Street Capital: CSC has confidence in the investment strategy because the firm has effectively managed the assets for two years, and their close relationship with residents and familiarity with the asset will be valuable going forward. CSC believes the recapitalization process will allow them to put into place a more systematic value-add program, to build on the success of their operations, and to sustain occupancy into the medium term. In recapitalizing the portfolio at a ~$158,000 per unit valuation, CSC believes partners will be participating at an attractive entry point, estimated to be 10-15% below what comparable assets have sold for on the open market.

 

How Are You Mitigating Risks?

Cooper Street Capital: There are three key items that are risk-mitigating with the Hyde Park Collective investment strategy. First, by participating at this portfolio level, partners have the opportunity to diversity across three individual and separate investment projects at the same time, and each property is structured with its own financing. Second, the underlying assets are individually leveraged with fixed financing and a blended DSCR of 1.5x. The risk stemming from fluctuations in interest rates is limited, and the current debt coverage provides a notable cover of future debt payments. Lastly, the larger “heavy-lifting” associated with new acquisitions, including larger deferred maintenance projects, of the properties has also been addressed. The scheduled upgrades to the assets will focus on interior unit upgrades, including new appliances, countertops, and backsplashes, which will be completed as units become vacant. There are ample data points to suggest that these upgrades will be well received in the market.

Offered By

Cooper Street Capital

Cooper Street Capital

San Francisco, CA

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Assets Under
Management

Currently
$376.07MM 10+ assets
Exited
$84.81MM 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
20+ years  
In Business
7 years  
Size
9 Staff * Dedicated investor relations
* All information is reported by Cooper Street Capital as of 10/1/2019.
Assets Under
Management

Currently
$376.07MM 10+ assets
Exited
$84.81MM 20+ assets
Portfolio LTV
64%  
Historical
Returns

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

As Principals
20+ years  
In Business
7 years  
Size
9 Staff * Dedicated investor relations
* All information is reported by Cooper Street Capital as of 10/1/2019.

Financials

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Location Details

Austin, TX

The Hyde Park Collective is located in the close-in and central Hyde Park neighborhood, one of Austin’s oldest and historic neighborhoods, known for its youthful demographics and easy access to UT Austin, the Capital, and downtown. From an acquisitions standpoint, the location is notably advantageous as development is nearly completely restricted (most properties were built in the 1960s and 1970s) because of its historic status. CSC’s current operations include eight assets in the area, allowing for continued economies of scale. From the standpoint of potential residents, close-in proximity is quickly becoming a top amenity in the City, as traffic has grown progressively worse with the large influx of new residents over the last decade. When the cars back up on I-35 or the MoPac Expressway, residents at the Hyde Park Collective can still easily commute to major hubs in the city’s core.

Documents

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Offering Agreement Documents

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