TownCenter Partners LLC makes JV & Preferred Equity Investments across the U.S. in a variety of asset classes including lifestyle centers and retail real estate. We want to be your partner. Please contact email@example.com or by phone at 703-570-5264
Preferred Equity Disciplined Philosophy
Our disciplined philosophy is what enables us to outperform and succeed. We manage risk by aligning our historical experiences with experts in their geographic locations. We work to generate investment returns the right way, by creating value at the asset level through a hands-on approach.
JV: Joint Venture Aligned with Sponsors via JV
We’re the most aligned platform in the category. Investing our capital alongside yours ensures our interests are one and the same. It’s the right way to do business, and a strategic place for our capital.
Why Partner with TownCenter Partners(TCP) LLC?
In addition to being an equity provider, TCP seeks to be a strategic investment partner. Our Team has 20 year history as a full service real estate company. We understand the risks of investing in private real estate and the challenges faced by managers. We work diligently to ensure our partners have the necessary resources for our investments to succeed.
Capital Stack & Private Equity Strategy
• Invest in real estate with values ranging from $1 million to $500 million
• Invest $1-$50 million of TCP Equity per deal
• Prefer not to use more than 75% LTC, but will selectively consider using more debt
• Co-invest with local sponsors
• Capitalize on sponsor’s experience within the market to best source, finance, acquire, manage, and sell real estate assets
• Create joint venture partnership in which the capital stack is split between 90%/10% and 50%/50% between TCP and the sponsor Return Parameters
• TCP invests in stabilized and value add investments with investor capital seeking both current income and value growth
• Minimum levered cash on cash returns of 10% between years 2 and 3
• Minimum property level levered IRR’s of 18%
• Hold periods typically range from 2 to 5 years. Possibly can go more. Preferred Equity Strategy Provide Preferred Equity for local sponsors:
• Provide preferred equity to assist in recapitalization and deleveraging of current ownership groups or capitalizing new acquisitions
• Minimum 12% in current pay with a minimum look back IRR of 18% Partnership
• We prefer to partner with sponsors who self-manage the properties and agree to compensate them for their work as managers
Joint Venture Development Criteria
TownCenter Partners LLC is actively pursuing real estate development and investment opportunities with experienced, well-capitalized partners. We will entertain joint venture development structures with land owners, developers, real estate operating companies, retailers, hospitals, doctor groups and other value-added service providers. We will also consider master or ground lease opportunities. Our primary structuring goal is to appropriately align our interests with those of our joint development partners. In doing so, we are willing to tailor our transaction structures to fit the unique needs of each situation, including the use of preferred equity, mezzanine capital and pari passu joint venture interests. We will typically target the use of 75% debt leverage in achieving our desired investment returns.
Our general development criteria are described below:
Product Type/Size: Retail, medical and mixed-use projects with a retail component in a size range of 2,000-900,000 square feet in high-traffic / underserved urban and suburban locations throughout the U.S. The product type category can include grocery-neighborhood, power-community, specialty-Main Street, mixed-use, lifestyle, medical campus or redevelopment.
Transaction Size: Targeted investment sizes ranging from $1 million to $50 million per transaction, with total project values ranging from $5 million to $100 million. Our recent pipeline activity has included projects ranging in value from $5 million and up.
Return Parameters: Investment/development opportunities offering unlevered project cash returns starting at 10% (as stabilized), with targeted internal rates of return on equity of 18% or greater.
Location: Seeking opportunities throughout the U.S. We will consider all major urban and suburban markets, as well as secondary markets with high barriers to entry.