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Investment Rationale – Executive Summary

Cosmos Fund I offers investors a rare opportunity to access New York City residential real estate at a materially discounted entry point, combined with government-backed income stability and embedded upside from a major infrastructure upgrade. The strategy targets Parkchester in the Bronx—an established, professionally managed community that is currently priced like a “long-commute” neighborhood but is on track to become a sub-20-minute market to Midtown Manhattan once the new Metro-North station comes online. Investors benefit from predictable HUD-VASH rental income paid by the U.S. government, conservative leverage, and disciplined operations, while retaining meaningful appreciation potential as pricing converges toward comparable NYC submarkets. The fund is structured to prioritize downside protection first and upside second, making it particularly attractive for family offices and long-term capital seeking resilient, inflation-hedged returns.

Why Invest – Key Points

1. Mispriced Entry in a Global City

• Acquire NYC residential assets at ~$350/ft² versus ~$1,000/ft² in comparable sub-20-minute Manhattan-access neighborhoods.

• Structural “price-to-access” gap creates room for long-term convergence.

2. Government-Backed Income Stability

• Rents paid primarily via HUD-VASH Housing Assistance Payments from the U.S. government.

• Near-zero credit risk, historically reliable through economic cycles.

• Long-term rent growth history (~7%+ annually) embedded in the program.

3. Transit-Driven Upside (Not in Base Case)

• New Metro-North station expected to reduce commute from ~58 minutes to ~18 minutes.

• Historically, such transit upgrades materially increase demand, rents, and values.

• Base case underwriting does not rely on this upside—making it optional, not required.

4. Conservative, Downside-First Structuring

• Fixed-rate, amortizing debt with ~65% baseline LTV (70% cap).

• $5,000 per unit locked reserves plus additional operating/capex buffers.

• Underwritten at 5% vacancy, despite structurally higher expected occupancy.

5. Strong Cash Yield with Compounding Effect

• Initial cash yield ~6% with meaningful annual growth as rents rise and debt amortizes.

• Modeled outcomes of ~18–19% net IRR (7-year) and higher multiples with longer hold.

6. Experienced, Aligned Local Execution

• Sponsor and operating partner with 14+ years in Parkchester, managing hundreds of units.

• Direct condo board presence reduces HOA risk and improves operational control.

• GP co-investment ensures alignment with LP capital.

7. Institutional Transparency & Optional Liquidity

• Quarterly NAV and KPI reporting.

• Tokenized ownership enables peer-to-peer transfers if a buyer exists (no liquidity promise, but reduced friction).