Cooper Street Capital

This morning's (very good) inflation report is a motivator to ramp up acquisitions, particularly distressed opportunities. In operation, there is also some clarity and guidance in how to underwrite and evaluate these projects. Taking a seller's in-place rents at face value, or leaning on market rents informed from the last 12-months, may not serve as accurate guidance for where rents will be in 6-12-18 months. https://lnkd.in/gqfBsjjg

For a recent acquisition in Georgetown, our team debated the strengths of the project in balance with the risks of new supply. In the medium to long term, these continuing dynamics are exciting to see, particularly as the development pipeline slows. “Boomer-rich Georgetown has now been the No. 1 city for population growth for three years in a row, according to an analysis of Census Bureau data for cities with populations of at least 50,000.” https://lnkd.in/etg7u7tu

From Costar, "Home prices have increased 106% since 2014 far outpacing the 33% increase in average asking rents, helping to sustain the renter pool." Austin's rental market is currently getting walloped with new supply, but that's not likely to last.

Thanks to @jayparsons for circulating. Some of the key insights include: "The secular trend is toward more demand, not less." "Performance has traditionally remained stable through economic cycles." "As owners come under more pressure to sell assets, we see an exciting opportunity coming to buy high-quality properties below replacement cost while achieving attractive long-term yields." https://lnkd.in/e_3VbATT

👀 "Distress in the apartment market is also on the rise, as more landlords miss payments on variable rate loans. Distressed apartment building sales rose sharply to nearly $1 billion in the first quarter of this year" https://lnkd.in/g8bvKqPH

Cooper Street Capital is pleased to announce its latest acquisition of the 302 North Apartments in Georgetown, TX (Austin MSA), and the firm's second acquisition of the year. We're excited to pick up a well-maintained, late-80s vintage project, in a fast growing market. With its partners, CSC plans to expand on the stable in-place operations, and to complete a series of exterior projects to provide for the long-term use of the asset. A huge thanks to the team at Walker & Dunlop, including Forrest Bass and Spencer Roy for helping shepherding this project along, and to Alex Inman for grinding it out on the loan assumption side. And, thanks to Kyle Barnas and his team at RealtyMogul for their work getting this project across the finish! #acquisitionsrampingup #wereback #letsdosomedeals

The rise in delinquent loans in the CLOs tracks with what we have been seeing/hearing in the market. Valuations today significantly off from peaks in 2022. https://lnkd.in/eHqXcucD

Great write-up. CSC continues to believe in the long-term growth and dynamics of San Antonio, and we will continue to focus on potential projects in the market.

Cooper Street Capital is pleased to present its newest acquisition: the Manchester on May Apartments in Oklahoma City, OK. Manchester on May is a 100-unit apartment complex located in Oklahoma City's Belle Isle West neighborhood, which is conveniently situated near Oklahoma's Penn Square Mall and across the street from another one of CSC's assets, the Villas on 50th Apartments. This is CSC's first acquisition of 2024 and we anticipate healthy deal flow in the months to come. CSC plans to upgrade the assets interior's with modern appliances and contemporary finishes. Thank you to Dave Pinson, CAM, Chase Lord and the SVN® International Corp. team, as well as Ryan Herron at Fidelity Bank / Oklahoma Fidelity Bank for their help in closing another great deal. #multifamily #community #thankyou