Dear Friends and Investors,

There’s a property type that rarely makes headlines, and it happens to be our favorite for investing. Apartment buildings from the 1970s, 80s, and 90s don’t generate buzz. They don’t get featured in development announcements or real estate trend pieces. They’ve been quietly housing families and generating income for decades, and in our experience they offer something newer buildings often can’t: proven demand, pricing inefficiency, and less competition from other buyers. That’s the type of asset we focus on in the Twin Cities, and 2026 is shaping up to be one of the better moments in the past decade to own them.

Why We Love “Boring” Buildings

When we say “boring,” we mean it as a compliment. Vintage buildings in established Twin Cities neighborhoods, particularly those from the 1970s through the 90s, tend to offer a combination of characteristics that’s hard to replicate.

These buildings have been rented successfully for 30 to 50 years. The neighborhoods are established and the tenant base is real. Many buyers walk away the moment they see a 1979 build date, and that’s not a red flag to us, it’s opportunity. Older construction often means thicker walls, simpler layouts, and structures that have already proven they can last. And because others overlook them, these assets are often priced below what their cash flow justifies.

We’re not buying every vintage building we see. We’re buying the right ones, the ones where the fundamentals are sound, the location is durable, and the path to stabilization is clear.

What We’re Seeing in the Market

Omar recently toured three multifamily properties in the Twin Cities, in Bloomington, Lauderdale, and Coon Rapids, all similar in vintage and scale to our existing portfolio and ranging from roughly 100 to 200 units. We submitted LOIs (letters of intent) on two of them. Neither made it through underwriting at a price we’d be comfortable with. Sellers are adjusting their expectations, but they’re not fully there yet, and we’re not going to close a deal that doesn’t meet our return profile just to stay active.

The conditions are improving in ways that matter for patient buyers. Cap rates in the Twin Cities multifamily market have expanded meaningfully from the 2021 and 2022 lows, and transaction volume has pulled back enough that serious buyers are finding more opportunity and less noise. Operators who over-leveraged during the peak years are beginning to feel pressure, and that’s starting to surface motivated sellers. We’re actively reviewing deals and expect to find the right one.

This is not an easy market to close in, but for investors who are patient and well-partnered, it may be one of the better entry points in years.

Portfolio Update

Across our two Twin Cities properties, occupancy is running between 95% and 98%.

Century Oaks. Heather was on-site this month, and tree removal work is underway as part of ongoing ground improvements. The property is in good shape, and the work is on schedule.

River Park Crossing. Two renovated units are available June 1, and every other unit in the building is rented. We expect a favorable inspection from the city of Fridley in June.

What’s Next

We’re continuing to review multifamily opportunities across the Twin Cities and we’re only moving when a deal meets our standards. We’d rather pass on ten deals than close the wrong one, and the pipeline right now gives us enough to be selective.

One more thing worth sharing: Omar begins a 9-month sabbatical from his surgical practice at Minnesota Eye Consultants in the coming weeks. He’ll be directing that time toward finding our next acquisition and building the Oculus Capital team. It’s a meaningful step for the firm, and we’re excited about what makes it possible. We’ll have a lot more to say about it in the next newsletter.

If you’ve been thinking about what a partnership with Oculus Capital could look like, or if you know a colleague who should be in this conversation, we’d love to hear from you. We’re happy to walk through how we structure deals, what our underwriting looks like, and what the investment experience has been for our current partners.

Thank you for your trust and your partnership. We’re building this alongside you, and we look forward to updating you again as the pipeline develops.

– Drs. Omar & Heather Awad

Oculus Capital

Join Us for a Conversation

If you’d like to learn more about how we’re evaluating opportunities in today’s market or discuss upcoming investments, we’d be happy to connect.

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Disclaimer:
This newsletter is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Before making any investment decision, investors should carefully review the official offering documents, including the Private Placement Memorandum and related materials, for complete details.

The information presented herein is believed to be accurate and reliable as of the date provided; however, no representations or warranties are made regarding its completeness or accuracy. We are not attorneys, accountants, or financial advisors, and this content should not be construed as legal, tax, or financial advice. Investors are encouraged to consult with their own professional advisors before making any investment decisions.

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