INVESTMENT OPPORTUNITY
Cordero Cabins · Unique Agritourism Project
INVESTMENT TARGET CLOSING: October 1, 2024
New Unique Lodging Project Within Driving Distance of 20,000,000 People
CoveMark is an alternative asset manager investing in operating companies and real estate. Cordero Cabins represents an expansion into the hospitality sector, leveraging the land and brand assets of their portfolio company, Capra Foods.
Cordero Cabins presents a unique investment opportunity in the rapidly growing unique stay market. Located on a 750-acre regenerative cattle ranch in the heart of Texas, this project offers modern luxury in an immersive nature experience. With 6 beautifully designed cabins overlooking a 7-acre lake, Cordero Cabins provides an affordable yet premium getaway for urban dwellers from Dallas, Austin, and surrounding areas. By leveraging Capra Foods' existing land and operations, we've created a distinctive concept that brings people closer to nature and creates memorable educational and dining experiences tied to their stay.
Investment terms
See details on this transaction below. Click “learn more” below to read our investment memorandum.
Total Capitalization
$2,500,000
Sponsor Contribution
$1,000,000
Equity Raise
$1,500,000
Minimum Investment
$50,000
Avg. Nightly Rate
$437
Yearly Occupancy
82%
Cordero Cabins is strategically located north of Killeen, Texas, offering easy access to major urban centers while providing a serene escape into nature. Our prime location puts us within reach of several key markets, allowing us to tap into a vast pool of potential guests seeking a convenient yet immersive nature retreat.
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Live Oak Lake
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Naturalist Boudoir
Market Opportunity
Cordero Cabins is positioned at the intersection of two powerful movements defining hospitality and consumer goods: the rise of unique stay experiences and the growing demand for conscious consumption.
Unique Stay Hospitality
Airbnb's rise to prominence introduced new operating models to consumers, changing the hospitality industry at large. One major change was the evolution of the new unique stay category, seen here:
- Guest Preferences Shift: Travelers now prioritize unique experiences over traditional hotel service
- New Opportunites: New tech like self-check-in reduces on-site staff, enabling remote properties
- Unique Stay Boom: Unique single-unit properties see success, leading to multi-unit developments
- Institutional Interest: Major acquisitions & investments in the last 24 months validate category
Conscious Consumption & Food Transparency
Parallel to the hospitality industry's evolution, a significant shift has occurred in how consumers approach food, health, and environmental consciousness.
Engaged, informed consumers who are reshaping the food and hospitality industries with new preferences and demands:
- Clean Eating Revolution: Consumers increasingly ditching processed foods in favor of organic, whole foods
- Farm-to-Table Movement: Growing desire to know the exact origin of food and ensure sustainable practices
- Environmental Consciousness: Preference for brands prioritizing sustainability & minimizing environmental impact
- Educational Experiences: Millennials & families learning about production, cooking techniques, sustainable practices
- Holistic Wellness: Concept of health expanded to include diet, mental well-being and connection with nature
These trends have transformed food consciousness from a niche interest to a mainstream lifestyle choice, creating opportunities for immersive, educational experiences around food and sustainability.
Project Concept
Cordero Cabins: A Unique Synthesis of Trends
Cordero Cabins capitalizes on these converging trends by offering:
- Immersive Farm Experience: Guided tours of Capra Foods' regenerative beef and lamb operation
- Farm-to-Table Dining: On-site experiences w/ Capra Foods' products, high-quality, sustainably produced meals
- Educational Programming: Workshops and classes on sustainable farming & cooking with grass-fed meats
- Wellness Integration: Activities combining natural ranch setting w/ wellness practices like yoga and mindfulness walks
- Family-Friendly Learning: Programs educating children about where their food comes from
Target Market
Our primary target market includes:
- Urban Escapees: City dwellers from nearby metropolitan areas seeking a peaceful retreat with a purpose
- Food Enthusiasts: Individuals passionate about high-quality, sustainably produced food and culinary experiences
- Eco-Conscious Travelers: Those who prioritize environmentally responsible travel and accommodations
- Wellness Seekers: Guests looking to combine relaxation with healthy living and mindful experiences
- Young Families: Parents wanting to educate children on sustainability & healthy eating in a hands-on environment
- Corporate Retreats: Companies looking for team experiences rooted in sustainability & conscious business practices
Property Details
Cordero Cabins will be developed on a 50-acre portion of Capra Foods total 750-acre operating cattle ranch. Guests will have direct access from the road to the lodging cluster, which overlooks one of several lakes on the property. More details:
- 6 modern cabins, each approximately 600 sq ft
- One bedroom, full kitchen, living area, and bathroom in each unit
- Large wraparound deck with private hot tub for each cabin
- Overlooking a 7-acre stocked fishing lake
- Set on a 50-acre parcel within a 750-acre working cattle ranch
Location Details
Our strategic location provides easy access from major urban centers:
City | Population | Drive Time |
Waco | 277,547 | 1hr |
Austin | 2,283,371 | 1hr 45m |
Fort Worth | 2,558,240 | 2hr |
Dallas | 5,079,147 | 2hr 20m |
San Antonio | 2,550,960 | 2hr 40m |
Houston | 7,122,240 | 3hr 30m |
Property Images
Cabin Renderings
Financial Projections
Based on our financial model, we project:
LP IRR: 20.3% / LP MOIC: 2.65x / LP Avg. Annual Return: 23.6%
Full Model attached below or available here: link
Exit Strategy
While we believe in the long-term potential of Cordero Cabins, we have identified several exit strategies to maximize investor returns:
- Sale to a larger hospitality group or REIT
- Refinancing to return capital to investors while maintaining ownership
- Expansion and conversion to a larger resort property
Recent Acquisitions
Live Oak Lake ($7M, source)
Onera Fredericksburg ($9M, source)
Conclusion
Cordero Cabins represents a compelling investment opportunity at the convergence of two powerful trends: unique stay experiences and conscious consumption. By offering an immersive, educational retreat that connects guests with sustainable food practices and natural surroundings, we are poised to capture a growing market of travelers seeking meaningful, health-conscious experiences. With strong financial projections and multiple paths to liquidity, Cordero Cabins offers investors the chance to be part of the future of experiential, purpose-driven hospitality.
Progress Update
August 28, 2024
Aug. 16, 2024 | Construction has started, with framing going up through the end of August.
CoveMark is an alternative investment firm founded in 2012 with a focus on real assets. Delivering risk-adjusted returns to our investment partners through diversified real estate holdings. Since inception CoveMark has lead syndications from multifamily, manufactured housing to ranch land and other niche opportunities. We provide our investors access to co-invest alongside us and our operating partners passively while providing them tax-efficient income, appreciation and capital preservation.
Aaron Cook
Aaron Cook has over two decades experience in real estate syndication in a variety of capacities and asset classes. From general partner, fund manager and administration to investor relations. He has raised significant capital and works with hundreds of investors. As founder and CEO of CoveMark his focus today is stewarding Capra Foods, a CoveMark portfolio company and our operating ranch.
read moreCoveMark is an alternative investment firm founded in 2012 with a focus on real assets. Delivering risk-adjusted returns to our investment partners through diversified real estate holdings. Since inception CoveMark has lead syndications from multifamily, manufactured housing to ranch land and other niche opportunities. We provide our investors access to co-invest alongside us and our operating partners passively while providing them tax-efficient income, appreciation and capital preservation.
Live Oak Lake
Live Oak Lake, located near Waco, Texas, demonstrates the potential of the unique stay market in our region. With just 7 units, Live Oak Lake achieved remarkable success, showcasing the strong demand for unique stay experiences in Texas and the potential for significant returns on investment in this market segment.
$2.3M
$7M
Next Steps
Cordero Cabins represents a compelling opportunity to invest in the growing unique stay market while benefiting from the established operations of Capra Foods. With our strategic location, innovative concept, and strong market demand, we're poised for success in this exciting sector. With our first phase of cabins set to break ground in Q3 2024 and limited investment slots available, we encourage you to act quickly.