Location Thesis: The Southern DFW Growth Corridor
Cottages on Cantrell sits in Waxahachie — the Ellis County seat, about 30 minutes south of downtown Dallas via I-35E — inside a platted, utilities-installed subdivision that removes horizontal development risk entirely from the timeline. The surrounding county is one of the fastest-growing in Texas, riding the same southward DFW expansion that has already reshaped Ellis County's northern half.
One of Texas's Fastest-Growing Counties
Ellis County's population has grown ~66% since 2010 to an estimated 249,000+ in 2026, still adding roughly 3.5% a year. Waxahachie itself has grown nearly 25% since the 2020 census, to an estimated population of ~52,000.
Hyperscale Investment Wave
Northern Ellis County is in the middle of a multi-billion-dollar data-center build-out — Google's $600M+ Red Oak facility, plus a 1.8GW PowerHouse/Provident campus and additional projects from Compass Datacenters — bringing large-scale construction employment and long-term facility jobs into the same labor market Cottages on Cantrell draws renters from.
BTR Fills a Real Affordability Gap
Waxahachie's median household income (~$85,700) supports a comfortable rent band. Waxahachie houses rent at a ~$2,400 median versus ~$1,825 for apartments — detached BTR carries a clear premium over apartment product regardless of unit type.
Ready-to-Build Site, De-Risked Timeline
Zero horizontal development risk — the community's infrastructure is already in place.
Project Overview & Unit Mix
Cottages on Cantrell is built in two groups: the first 3 PODs (24 homes) go up immediately; the remaining 4 PODs (32 homes) follow, one at a time, as the completed homes lease up, completing the 56-unit community.
First 3 PODs — 24 Homes
15 Harper + 9 Georgia — 34,974 total rentable SF
The Harper — 3BR/3BA
The Georgia — 3BR/2BA
Remaining 4 PODs — 32 Homes
19 Harper + 13 Georgia — 46,446 total rentable SF
The Harper — 3BR/3BA
The Georgia — 3BR/2BA
How the Deal Is Capitalized
This is a turnkey offering: COSO originates the land, structures and carries the construction financing, executes the build, and operates the property through exit. You commit capital as a Limited Partner — that's the extent of it.
Your Capital vs. Total Capitalization
Sized against the full $13.5M cost of the 56-home community — land, construction, everything
What COSO Arranges
COSO originates the land, structures the senior construction financing, carries the project through construction, and manages leasing and operations through sale. Your capital is 14.8% of the total capitalization — the rest is financing and execution COSO has already arranged.
The Investment Timeline
You commit $2,000,000 at closing. Over roughly 14 months of construction and lease-up, your capital stays fully deployed in the project. At stabilization, the permanent refinance — your liquidity event — returns your full principal together with the complete 8% preferred return in a single payment. From there, you collect pro-rata quarterly cash flow, with your pro-rata share of net sale proceeds realized at the ~Year 5 exit.
Your Projected Return
As-Modeled reflects our underwriting case at a 6.0% exit cap rate. To show how sensitive that return is to market conditions, the table below stress-tests the single biggest swing factor in a BTR sale — the exit cap rate — while holding rents, costs, and financing fixed.
Equity Multiple
1.56x
Total value returned ÷ capital invested
IRR
25.6%
Annualized, based on actual cash-flow timing
Total ROI
56.0%
Cumulative return over the ~5-year hold
| Downside | As Modeled | Market Upside | Strong Upside |
|---|---|---|---|
| $2,802,709 | $3,120,142 | $3,259,259 | $3,395,772 |
At the permanent refinance, your full $2,000,000 principal and complete 8% preferred return are paid in a single payment. If refinance proceeds are not sufficient to make that payment, COSO Investments LLC contributes the shortfall at the closing of the refinance.
Your Full Return — As Modeled, Line by Line
Every dollar that gets you there — not just the sale, but what you collect along the way
Principal Returned
At your liquidity event (~Month 14, once the community is stabilized) — your full original $2,000,000
$2,000,000
8% Preferred Return — Full Period, One Payment
Paid alongside principal at that same refinance — nothing paid before this
$186,667
Cumulative Cash Flow
Pro-rata share, stabilization through the exit
$136,814
Exit Share at Sale
Your pro-rata share of net sale proceeds at the ~Year 5 exit
$796,662
Total Returned to You
$3,120,142
A Note on Upside
Each POD includes a carriage house that can be converted into an additional rentable home — no replat or rezoning required. COSO has received verbal approval on the feasibility of the conversion and is now working through the formal HOA and City steps. Every converted home adds rental income and exit value to the community. These homes are not included in any figure shown above, so they represent upside to this projection, not a requirement of it.
Cottages on Cantrell & the 3-Cycle Flywheel
COSO's platform runs on a minimum 3-cycle commitment — capital that recycles through consecutive developments rather than sitting in a single deal. Cottages on Cantrell is where that commitment starts.
Your Progress Toward the Minimum 3-Cycle Commitment
Cottages on Cantrell
Your $2,000,000, single commitment
Future COSO Development
Site TBD
Future COSO Development
Site TBD
Your $2,000,000 completes Cycle 1 of the minimum 3-cycle commitment. Two more future developments complete the program.
Partnership Governance & Offering Terms
One set of terms governs the whole commitment: your full principal returned, together with the full 8% preferred return for the entire period, in a single payment at your liquidity event — the permanent refinance once all 7 PODs are built and stabilized — plus 16% of your invested capital recognized as permanent equity, entitling you to pro-rata quarterly cash flow and a pro-rata share of net sale proceeds.
Key Risks & Open Items
This underwriting is built on real site data, but a few inputs are still being finalized — presented plainly:
Unit Mix Flexibility
The unit mix modeled here reflects current underwriting; the final mix may vary at time of construction if renter demand shifts, with costs and rents adjusted accordingly.
Property Tax & Special Districts
Modeled at the current Ellis County/Waxahachie combined rate; it's still being confirmed whether this parcel sits inside a MUD, ESD, or water district that could add to the rate.
Build Flow
The first 3 PODs are built immediately; the remaining 4 follow one at a time as the completed homes lease up. Vertical construction duration and lease-up pace are still being finalized with the general contractor for these specific homes.