Experienced, Repeat Sponsor: TS Communities is a private investment firm with over 2,700 multifamily units acquired and a fully dedicated team of acquisitions, underwriting, and asset management professionals.
Lower Potential Costs: No fees or expenses are charged by TS Communities at the fund level. TS Communities only shares in the carried interest with investors. This arrangement allows the potential for higher net returns due to lower direct costs.
Earn Carried Interest: As the Fund's general partner, TS Communities has the potential to receive carried interest on investments. The Fund will receive 25% of TS Communities' realized carried interest.
Distress in Multifamily: An evolving economic and interest rate environment has opened a window of opportunity where select multifamily properties can be acquired at prices that are significantly discounted. A tighter lending environment coupled with rapid interest rate hikes to combat inflation have put downward pressure on valuations and left many owners forced to sell. TS Communities believes the next 12-24 months will present opportunities to capitalize on a brief period of market dislocation.
Leveraged Equity Return: The Fund is structured to gain a leveraged equity return by co-investing an anticipated 5% to 25% in individual property acquisitions with various co-investors. By receiving a portion of TS Communities' carried interest, Fund investors will receive a return that is anticipated to be above the property-level returns, surpassing the returns of traditional limited partners.
Targeted Opportunities: The Fund will target core-plus and/or value-add multifamily opportunities that are experiencing distress, be it financial, operational, physical, or other situational distress.
Immediate Capital Deployment: The Fund has already made two investments, Rose Hill Townhomes & Villas and Xander Apartments, both located in the Columbus MSA. This allows for an immediate participation in cash flow distribution.