Timberline Real Estate Ventures

The Foundry was formerly the headquarters building of the General Services Administration before being was reimagined into a brand-new apartment asset. Each apartment is equipped with high-end, Class A interiors and boasts extensive community amenities that exceed all competition in the market. The property is strategically located in an infill, irreplaceable location near the new Amazon HQ2 and Virginia Tech Innovation Campus, which is targeted to create thousands of jobs, population growth, and ancillary demand drivers.

This transaction was achieved based on two previous successful transactions with the seller, enabling Timberline to acquire the asset in an efficient, off-market, pre-stabilized acquisition structure, with a closing contingent upon the asset achieving minimum economic thresholds offering our partners relative value to its comp set for a core newly-built asset.

The University of Maryland was a university market that Timberline had identified as an attractive market based on the limited supply pipeline and tremendous future enrollment growth market at the time of acquisition. The local conventional market was tightening with more infill development planned in the immediate area around Terrapin Row focused on more conventional multifamily, retail, and hospitality decreasing the near-term and immediate student housing competition supply while the university’s enrollment was growing with strong projected future enrollment growth. Terrapin Row is one of the best-located properties in the entire market bordered by campus and the new residential living portion of campus.

Timberline was able to acquire this property via an off-market transaction bringing in one of the largest U.S. public pension funds in the country. Over its first few years of operations, TREV has been successful in decreasing operating expenses from seller’s operations through more hands-on management and student housing specific expertise in day-to-day operations while significantly increasing rental rates each year through diligent prelease rent roll rate management and boosting unit premiums and increasing other income. Timberline increased NOI by 38% over the first 3 years of ownership with recurring capital unit-turn investment only.

The 230-unit and 628-bed purpose-built student housing community is located just a few steps from the main part of campus at G-Tech and immediately adjacent to Tech Square, which consists of the highest density of startups, corporate innovators, and academic researchers in the entire southeastern U.S. Timberline acquired SQ5 through an off-market transaction at the top 50 universities, Georgia Tech University with an enrollment of ~30,000 students, at the time of acquisition and projected enrollment of 40,000+ by 2022. Through partnering with an evergreen core fund, Timberline was able to secure this trophy asset with the best location in the entire market providing high barriers-to-entry competitive advantage given its acquisition economic basis and location next to campus in the renowned Tech Square, an innovation hub, home to some of the nation’s top technologists, designers, and engineers, a perfect outlet for GTech students. Starting in year 1, TREV was able to decrease operating expenses from seller’s operations as seller’s management was not focused on student housing operations and increase rental rates through diligent prelease rent roll rate management and boosting unit premiums based on floors and views.

The Property is located within South Norwalk (SONO) and is at the center of some of the highest-rent and most affluent areas of Fairfield County with excellent access to top employers, essential amenities, and recreational activities catering to the lifestyles of Fairfield County.

Timberline secured this transaction via a 1031 exchange after a successful recent sale of another multifamily asset. Timberline created relative value in an otherwise core opportunity in uniquely structuring the transaction to reap the benefit of the outsized cash yields from a state Enterprise Zone tax abatement coupled with several value-added investments into the asset enhancing cash yield.

Timberline identified this market as one of its top markets for acquisitions and was able to secure this asset in an off-market transaction with the developer of the property. Timberline saw tremendous upside in working with the University of Minnesota with an enrollment of over 50,000 to work through the current master lease with below-market rents by pushing Timberline’s property management company through its hands-on approach to streamline operating expenses and recurring capital improvements to yield a strong cash-on-cash for its evergreen core fund partner. TREV drove incremental revenues by reconfiguring the onsite parking garage to enable both resident and non-resident parking.

The Mix is a 2019 built, 26-story high rise in Atlanta GA representing the best-located purpose-built student housing asset serving the 33,000+ student population attending Georgia State University.

The Mix is a 237-unit and 685-bed purpose-built student housing community just a 5-minute walk from the center of campus at Georgia State University and immediately adjacent to the GSU dorms. Residents at The Mix enjoy access to a 26th floor Skydeck patio and indoor lounge featuring panoramic views of Atlanta and games. Unit amenities include stainless steel appliances with finishing, plank-style LVP flooring, flat-screen TVs in each living room, secure electronic entry, floor to ceiling windows with each resident having their own private bedroom and private bathroom.

Timberline secured this off-market transaction, pre-delivery, with a closing structure contingent upon the asset achieving minimum occupancy, rental rates, and expense levels. The transaction was structured to let our long-term investors take advantage of tax-advantaged exchange as well as incorporating a ground lease which will yield value-add level returns on a recently developed, core asset.

Hillcroft Village is an older vintage multifamily asset located on the CT/NY border in Danbury, CT that Timberline acquired at the end of 2016 and has already proven out its value-add business plan.

The 1970’s vintage work-force multifamily community is located about an hour north of New York City. Timberline renovated 65 units (~35% of total units) generating a 30%+ ROI on its renovation investment prompting a refinance into a long-term, cash-flowing hold. Timberline added a new common area space in the bottom floor of the clubhouse to go along with the already existing community room that includes a kitchen party room, game room, indoor gym and fitness center, leasing & management office, and outdoor pool with expansive sun deck. Through its approach to integrated management, Timberline has driven rents up ahead of the market while achieving 99% occupancy, well-exceeding market comps.

Aspire Tucson is a 2019 built student housing tower adjacent to the University of Arizona’s main campus.

The luxury student housing property has 150 fully furnished units with 505 beds across a mix of studio, 1, 2, 4, 5, and 6 bedroom apartments including 2 story duplex units on the top floors. Aspire was secured for a U.S. public pension fund in an off-market transaction upon completion of the development at the time of its first-move-in. Timberline underwrote the long-term hold to achieve the pension fund’s current cash yield requirement to benefit from Timberline’s singularly focused student-housing management through its B.HOM student housing management vehicle. This transaction was achieved based on a previous successful transaction with the seller, enabling a transaction to be completed in an accelerated manner.

CEV Wilmington is a multifamily/student housing value-add asset that serves both students attending the University of North Carolina Wilmington, as well, as young professionals in this growing coastal beach community.

This hybrid asset is located adjacent to the main entrance to one of the top universities in North Carolina, UNCW, in a highly desired conventional housing submarket of Wilmington, N.C. Timberline acquired this asset as a pure student housing asset but has repositioned the property to serve both students non-students across the 415 units in the 2 phases of the property. Through repositioning half the property to a conventional rental platform, Timberline is driving value for its investors enhancing rental rates and ultimate returns.

Timberline leverages its extensive private equity and investment banking backgrounds to source and invests in industry-leading asset-intensive businesses across numerous sectors.

Timberline’s operating company investments are typically alternative sectors or businesses with a dependence on real estate or assets where Timberline can leverage its expertise in financial structuring and operations to generate outsized returns for its investors. Our investments have included a leading-edge access control security system that enhances access, security, and delivery services through hi-tech video interfaces accessible by all residents on any mobile or desktop device.

Through a financial services investment, Timberline provides a worry-free renters insurance liability program that not only meets tenant’s insurance requirements but drives income to the participating properties. Prepared food delivery is an exploding consumer preference and Timberline was an early adopter/investor in a ghost kitchen platform which in addition to itself being a growing real estate vertical is a benefit to all multifamily residents.