Trez Capital extends its equity investment and partnership program | RENX
Trez Capital is one of Canada’s largest non-bank lenders supporting borrowers with personalized real estate finance and investors with reliable income. Founded in 1997, with a vision to help build a prosperous future for developers and investors. Through strategic loans and careful market assessment, Trez Capital has funded more than 1,500 transactions totaling over C $ 13 billion since its inception.
With an entrepreneurial and proactive approach, Trez Capital seeks to provide creative and agile solutions for the real estate industry to create value for Trez Capital investors. These values ââwere at the heart of the company when it was founded over 24 years ago, and at the heart of its strategy for expansion in the United States over the past decade. Thanks to its analysis and expertise in the field, Trez Capital expanded to Dallas in 2010 to take advantage of lot development opportunities and develop its lending business. Since then, Trez Capital has expanded its reach with offices in Palm Beach County, Atlanta, New York and Los Angeles and will open an office in Seattle this fall. Trez Capital continually seeks opportunities in North America that support developers and, through its multiple fund offerings, creates strong and reliable returns for investors.
Strong relationships drive proven results
In 2015, Trez Capital identified the opportunity for a short-term build-to-sell equity investment strategy that resulted in high returns for Canadian investors. The five pooled US real estate equity funds and multiple single-investment equity funds now total over C $ 350 million in total underlying project assets, with projects producing internal rates of return (IRR) higher than projections.
Low interest rates, strong residential markets and a lack of pre-built inventory have generated significant dividends and a great opportunity to increase investment in multi-family residential capital. Given Trez Capital’s size and relationships with some of the top developers in the United States and Canada, now is the time to expand these types of investments.
âWe employ rigorous due diligence in our partner selection process, coupled with market research and localized analysis,â added John D. Hutchinson, president of Trez Capital, Central & Southwestern US. âWe take into account many factors before participating in a partnership project, including location, market positioning and demand drivers such as regional employment and population growth.
Trez Capital partners with some of the world’s best, multi-faceted developers for its equity investing program. In the Dallas metro area, a partnership project earned investors an impressive 50% IRR in a lot development project.
Other partnerships in Texas have already provided investors with higher than expected returns with an IRR> 20% for Edge & Stone in San Antonio and an IRR> 40% for The Beacon on Westmoreland and Winding Creek in the Dallas Metro, thanks to its Build-to -Selling Strategy. Trez Capital plans to re-partner with these long-standing relationships to build more than 10,000 homes over the next five years.
In a recent call for investors, one of Trez Capital’s development partners said, âWe are participating in the tremendous growth in Texas and the Southwestern United States and the ability to work with partners such that Trez Capital ensures that we deliver the communities that residents seek. for.”
With people in mind, Trez Capital seeks to build homes, create communities and bring real value to investors.
Trez Capital’s equity partnerships give investors access to development-stage projects that are generally uncorrelated and less volatile than equity markets. Growth is driving increased demand in all asset classes including multi-family, single-family rental homes, self-storage and industrial.
Momentum continues to grow in key states where Trez Capital lends, such as Texas, Arizona, Florida and Colorado, thanks to growth factors such as low taxes, low regulation and greater freedom. to do business.
âThere is an increased demand for the equity projects that we are building, and there has been a massive housing shortage, especially due to migration. With self-storage, single-family homes, apartments and lot development, we’ve taken a truly diverse approach to meet market demands both geographically and across asset classes, âadded Hutchinson.
Opportunity improves market position, offering unique investment products
Capitalizing on the growth of the equity investment partnership program, Trez Capital has developed a new fund, the Trez Capital Private Real Estate Fund (TPREF). The fund is a long-term build-to-hold strategy that first closed on August 31, 2021 and complements the build-to-sell strategy of Trez Capital’s equity investment partnerships.
Great opportunities in the Sunbelt States with high growth cities have been identified as areas that will benefit Canadian investors who are generally not fortunate enough to invest in US properties with a hands-on approach.
Trez Capital, along with its development partners, intends to provide capital appreciation to investors throughout the development process and sustainable, tax-efficient income from long-term property ownership.
About Trez Capital
Founded in 1997, Trez Capital is a diversified real estate investment company and a trusted provider of private commercial real estate finance solutions in the United States and Canada. With offices in Vancouver, Toronto, Montreal, Dallas, Palm Beach County, Atlanta, Los Angeles and New York, Trez Capital Corporate Group manages more than C $ 3.9 billion in assets under management and has funded more than 1,500 transactions totaling over C $ 13 billion since inception.
(* Assets under management of the group of companies include assets held by all entities related to Trez as well as AUM of the manager of $ 2.7 billion (Trez Capital Fund Management Limited Partnership)).
To learn more about Trez Capital, please visit www.trezcapital.com.