Investment Opportunity

CSC is focused on partnering with best-in-class developers to acquire and build assets in major markets and operating them as co-living through best in class operators.

Model

Through the coliving operating model, we will stabilize assets at an unlevered yield on cost 100-150 bps above traditional multifamily, which will generate a cap rate spread of 200-250 bps upon exit.

Opportunity

CSC will consolidate this asset class and build scale in order to attract more institutional players to the space and benefit from the cap rate compression of coliving, as today the market is nascent and ownership is fragmented.

Risk Mitigation

CSC’s philosophy in every development is to refine the physical designs and typologies of every residential unit with convertibility back to traditional multifamily in mind; this option preserves a base value of traditional multifamily and although it is a less dense and thus less profitable design scheme for cashflow, it mitigates for the scenario where coliving is no longer feasible.

Our Markets

We focus on major markets and hard to penetrate with a multifamily platform and where renters are accustomed to dense living.

Higher Density

Larger density creates a more tenants per square foot at lower rents than comparable studios in the area.

Investment Vehicle

We have created funding lines for the largest coliving operators to offer equity investments to their development partners and through that created a pipeline to deliver above-market risk adjusted returns by developing a portfolio of well-located income producing assets in top US urban markets. Benefits include geographic diversification with nationwide exposure and a potential portfolio premium at exit.

Leveraging Existing Relationships with Coliving Operators

Structure

Partnership with 5-7 Year Hold Period

Target Return

10.0% gross unlevered / 16.0% gross levered IRR / 14.0% net levered IRR utilizing leverage not to exceed 65% LTC

Target Yield

6.5% un-trended yield-on-cost / 7.5% trended yield-on-cost

Venture Size

USD $1,000 million (Current LP: 90% / CSC: 5%, Developer Partner 5%)

Investment Structure

The Investment Vehicle will partner with Real Estate Developers and contribute the required equity capital for a real estate development project offering coliving premiums over multi family yields.

View Our Properties