Trez Capital Announces the Portfolio Sale of Two Major Projects in Texas

The Beacon and The Dalton, highly sought-after developments in the Austin area, sell to a single purchaser

Trez Capital is proud to announce the dual sale from its Trez Opportunity Funds (TOF) #4 and TOF #5 of The Beacon and The Dalton, located in the Austin region of Texas, as a portfolio to a single purchaser at a price exceeding initial sale expectations and providing investors with returns higher than the original proforma. Both projects are highly sought-after Austin multi-family communities that serve an undersupplied housing market.

“The Trez Capital Equity Investment Program is thriving,” said Morley Greene, Chairman and Chief Executive Officer of Trez Capital. “For years, we have been providing equity investment solutions to experienced developers and are very proud to be selling both The Beacon and The Dalton projects at these prices. Our team did an amazing job of creating optimal value from these investments for our investors. The Austin market has been an extremely successful investment location for Trez Capital and we will continue to actively pursue opportunities in regions that will benefit our investors.”

Trez Capital’s Equity Investment Program partners with experienced developers in markets with strong population, job and gross domestic product (GDP) growth. The sale of both projects speaks to the continued growth and unwavering demand in Texas.

“We are incredibly proud of our team for consistently finding opportunities in any market condition. Our team’s expertise gave us the confidence to start these projects in 2020, in the midst of the pandemic, and our investors are benefiting from the forethought and conviction to develop The Beacon and The Dalton in the Austin area,” said John D. Hutchinson, Vice-Chairman & Global Head of Origination.

“Both of these projects are testaments to the success of the Trez Capital Equity Investment Program,” said Sam Salloway, Managing Director, Head of Equity. “Trez Capital considers numerous factors before participating in a project, and the success of The Dalton and The Beacon are examples of the high-quality assets we continue to develop. Our boots-on-the-ground knowledge and strong relationships with exceptional development partners is the differentiator for our investors. Exiting these investments underscores our enviable track record of consistently achieving above-average returns.”

Both projects are in TOF #4 and TOF #5. After the sale of the remaining investments held by each TOF #4 and TOF #5, the Internal Rate of Return (IRR) on these funds are projected to be between 30% and 40%, which is well in excess of the projected IRRs of approximately 15% at the time of underwriting. There are several existing projects still performing in these TOFs, which will provide additional income to investors upon sale.

The Beacon and The Dalton are the fourth and fifth projects that Trez Capital has built in partnership with Thompson Realty Capital, which has over 25 years of experience in acquisitions, development, and property management of multi-family, office, and single-family residential projects.

The Beacon contains 258 dwelling units, and The Dalton contains 350 dwelling units. Collectively, these two projects add more than 600 high-quality residential units to a booming region in Austin that needs more housing supply. The projects will also offer the communities attractive amenities.

“We are excited to be part of the tremendous growth that is happening right now in the Southwestern U.S. region, and the ability to work with world-class partners such as Trez Capital ensures that we are delivering high-quality projects in thriving communities, especially in Texas,” said Tom Field, President of Thompson Realty Capital, LLC.

Trez Capital continues to invest in high-quality development opportunities across North America, particularly in the Sunbelt states such as Texas, Arizona and Florida, for the TOF series and Trez Capital Private Real Estate Fund Trust (TPREF).

For more information about the projects and Trez Capital’s Equity Investment Program, please contact:

• John D. Hutchinson, Vice-Chairman & Global Head of Origination, Trez Capital at
  
  214.545.0952 or johnh@trezcapital.com
• Sam Salloway, Managing Director, Head of Equity, Trez Capital at
  
  416.350.1208 or sams@trezcapital.com

About Trez Capital

Founded in 1997, Trez Capital is a diversified real estate investment firm and preeminent provider of commercial real estate debt and equity financing solutions in Canada and the United States. Trez Capital offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured mortgage investment funds, syndication offerings and real estate joint-venture investments; and provides property developers with quick approvals on flexible short- to mid-term financing.

With offices across North America, Trez Corporate Group has over $5.3* billion CAD in assets under management and has funded over 1,700 transactions totalling more than $16.5 billion CAD since its inception. For more information, visit www.trezcapital.com. (*Trez Corporate Group AUM includes assets held by all Trez-related entities as well as $2.9 billion Manager AUM (Trez Capital Fund Management Limited Partnership)).

About Thompson Realty Capital

For over 40 years, Thompson Realty Capital, LLC, and its predecessor, has developed significant residential, mixed-use, office and retail properties in the Dallas/Fort Worth, Austin, San Antonio, and Northern Virginia markets. With multi-family development as its primary focus over the last decade, the company has developed, owned, managed, and sold nearly 10,000 units. The company has also developed mid-rise office buildings, suburban office buildings, and industrial and showroom projects.

*Past results are not indicative of future performance, which may differ significantly. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described in the present material. Views expressed in this material and forward-looking statements are as of the date indicated, based on the information available at that time and may change based on market and other conditions.

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