Property Details
Asset Profile
Core Plus

The Zeno Apartments

Portland, OR

Multi-Family Property
Cooper Street Capital San Francisco, CA
Cooper Street Capital
  • IRR 15.1%
  • Equity Multiple 1.9x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 6.9%
  • Stabilized Cash on Cash 7.2% in Y2
  • First Distribution Jan 2020
  • Distribution Frequency Quarterly
  • Co-Investment 10%
  • Preferred Return 10%
  • Investor Profit Share 70%
  • Asset Profile Core Plus
  • Loan-to-Value 65%
  • Current Occupancy 96%

About this Property

Why This Property?

Cooper Street Capital: The strength of the acquisition of the Zeno Apartments is rooted in three main items:

  • Location - The asset is less than half a mile from Portland State University, providing for a resilient base market from which to target potential residents going-forward in the medium term.
  • Asset Profile - Unlike much of Portland's core multifamily supply, the Zeno Apartments are not classified as unreinforced masonry (URM), thereby eliminating the risk that the asset would be forced to under-go expensive seismic upgrades in the future.
  • Pricing - Lastly, through the use of interior upgrades, CSC has already proven it can bring to market a product that competes on living quality with nearby Class A options but that also sits approximately 30% those options on price.



Why Do You Like This Strategy?

Cooper Street Capital: CSC has confidence in the investment strategy because the recapitalization will allow us to continue along a proven value-add trajectory that we have already set out. The larger “heavy-lifting” associated with the deferred maintenance that we first inherited has been addressed, reducing the overall risk in the deal. We have seen, at the asset level, what it will take to be successful, and we can carry that forward with the same team in place.

 

How Are You Mitigating Risks?

Cooper Street Capital: There are three key items that are risk mitigating with the Zeno investment strategy:

  • New fixed-rate debt was put into place last year, thereby eliminating interest rate risk.
  • Execution of the value-add upgrades is now limited to interior upgrades only, as all deferred maintenance items have already been addressed. Our target pricing has already been achieved on several units.
  • At a more general market level, the timing of this recapitalization is also favorable. Since the passage of inclusionary zoning laws in 2017, new development has ground to a halt in Portland. The risk of a glut of supply putting downward pressure on asset and rent prices has, for the moment, been tempered.

About this Property

Why This Property?

Cooper Street Capital: The strength of the acquisition of the Zeno Apartments is rooted in three main items:

  • Location - The asset is less than half a mile from Portland State University, providing for a resilient base market from which to target potential residents going-forward in the medium term.
  • Asset Profile - Unlike much of Portland's core multifamily supply, the Zeno Apartments are not classified as unreinforced masonry (URM), thereby eliminating the risk that the asset would be forced to under-go expensive seismic upgrades in the future.
  • Pricing - Lastly, through the use of interior upgrades, CSC has already proven it can bring to market a product that competes on living quality with nearby Class A options but that also sits approximately 30% those options on price.



Why Do You Like This Strategy?

Cooper Street Capital: CSC has confidence in the investment strategy because the recapitalization will allow us to continue along a proven value-add trajectory that we have already set out. The larger “heavy-lifting” associated with the deferred maintenance that we first inherited has been addressed, reducing the overall risk in the deal. We have seen, at the asset level, what it will take to be successful, and we can carry that forward with the same team in place.

 

How Are You Mitigating Risks?

Cooper Street Capital: There are three key items that are risk mitigating with the Zeno investment strategy:

  • New fixed-rate debt was put into place last year, thereby eliminating interest rate risk.
  • Execution of the value-add upgrades is now limited to interior upgrades only, as all deferred maintenance items have already been addressed. Our target pricing has already been achieved on several units.
  • At a more general market level, the timing of this recapitalization is also favorable. Since the passage of inclusionary zoning laws in 2017, new development has ground to a halt in Portland. The risk of a glut of supply putting downward pressure on asset and rent prices has, for the moment, been tempered.

Offered By

Cooper Street Capital

Cooper Street Capital

San Francisco, CA

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Assets Under
Management

Currently
$315.59MM 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
8 Staff  
* All information is reported by Cooper Street Capital as of 5/23/2019.
Assets Under
Management

Currently
$315.59MM 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
8 Staff  
* All information is reported by Cooper Street Capital as of 5/23/2019.

Financials

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Offering Financial

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Location Details

Portland, OR

Located within walking distance of downtown and Portland State University (PSU), against the base of Washington Park, historic Goose Hollow is one of the oldest and most central neighborhoods in Portland. It dates back to 1845, before the City was even incorporated. Its central attractions are Multnomah Athletic Club and Providence Park, an outdoor sports venue that has hosted every imaginable sport in its 70-year history from baseball to soccer. The close-in area is popular for young professionals and students because of its proximity to the City’s main points of interest, along with choice eats, drinks and entertainment.

Documents

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Offering Agreement Documents

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