Upside Avenue Comprehensive Review
(Parent: Casoro Capital)
Category: Non-accredited investor funds
Honors: Most experienced sponsors
Upside Avenue is a new multifamily (apartment) REIT that was just launched in August 2018. The target yield is 6-8% per year and IRR of 12-15%. They claim to target "recession resistant" deals, and intend to create a diversified portfolio of them.
Upside Avenue would be unremarkable if it wasn't for the extrodinarily impressive looking record of it's parent company (Casoro Capital). I personally feel we're late in the cycle, and as a conservative investor I don't even look at a multifamily deal unless the sponsor has full real estate cycle experience in the current strategy and didn't lose any investor money. (More aggressive investors will have different criteria). So for me, a top-notch sponsor can be hard to find.
So I was very pleased to see that Upside Avenue/Casoro Capital, claims to have acquired over $1 billion in multifamily real estate and done so not over one but multiple full real estate cycles. (16 deals since 2004). And they have $0 of reported losses. If true, that puts it in a rare class (and not just in the small universe of nonaccredited funds, but also the wider universe of accredited).
Upside Avenue also has full bankruptcy protection (set up as bankruptcy remote and a separate administrator from the company). That differentiates it from many other non-accredited offerings, and provides some nice peace of mind for the investor.
On the downside, Upside Avenue fees are almost universally on the high or highest side versus competitors. So this is not the cheapest fund on the block. I suspect some will be willing to pay top dollar for the other positives of the fund.
Also, target leverage is a too high for my tastes (70 to 80% versus 65% is what I like to see at this stage of the cycle). But a more aggressive investor may feel very differently and not have an issue with it.
Currently the fund has no assets (unseeded), which may be an issue for some investors. These investors may want to wait a couple of months to see which properties are put in, and make sure they meet expectations.
The minimum investment is $2000, which is a bit above the $1000 average for nonaccredited funds. So those who are a little squeezed for cash may have an issue with this.
Advantages: Multiple cycle experience in multifamily with no investor money lost, bankruptcy protection.
Disadvantages: High fees, high leverage, no assets yet.
Accolades: Most experienced sponsors.
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This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed.