Multifamily Real Estate Investment Offering Near Austin, TX, With A 19% Target IRR

A new private market multi-family real estate investment opportunity is being made available to prospective investors entailing a multi-family apartment community in the metropolitan statistical area (MSA) of Austin, Texas.

302 North is located in one of the country’s fastest-growing counties, Williamson, with the population growing by 44.1% between 2010 and 2020 according to data obtained by the U.S. Census Bureau. The apartment community has a total of 176 units and was acquired at an advantageous acquisition cost. 

The property is being purchased for $25,250,000, a figure that is 33% below the appraised value in 2022 of $37.2 million. Over the previous three years, the selling interest invested nearly $1.8 million in improvements to the property including a roof replacement and installing new vinyl plank flooring, backsplashes, stainless steel appliances and in-unit washer and drying units. 

With improvement projects having already been largely completed, significant capital is being spared from being invested in the overall appearance and unit interiors. The complex currently has an 88.6% occupancy rate and offers tenants a swimming pool and deck area, fitness center and more. 

Georgetown, the location of the property, is roughly 20 miles from Austin and has benefited from the influx of industry and population. The Austin MSA saw a 33% increase in population during the previous decade according to the Austin Chamber of Commerce, which has increased the demand for local housing. The growth levels are expected to help maintain and improve upon the occupancy rate throughout the investment holding period. 

• Minimum investment: $35,000
• Target IRR: 19%
• Target cash on cash: 2.1%
• Target equity multiple: 1.41x
• Target investment term: 2 years

The offering sponsor, Cooper Street Capital (CSC), has completed nearly $1.2 billion in multifamily transactions since its 2011 inception. The private real estate equity firm has extensive experience within the metro Austin market, having acquired 2,102 units since 2016. The 302 North Apartments offering is currently available on the fractional real state investment platform RealtyMogul, with a minimum investment contribution amount of $35,000.