Investment Strategy
Tall Timber Capital is seeking opportunities to acquire non-residential commercial assets between $1M and $10M throughout the Western and Southern US It is our goal to find exceptional, risk-adjusted assets in high-growth markets with a focus on Core Plus and Value-Add opportunities.
INVESTMENT CRITERIA
We are hyper-focused on Class B industrial as it has proven to be a scalable and stable strategy. Please submit any deal that matches this criteria to our Deal Team at [email protected].
1
CATEGORY
Class B Industrial
2
DEAL SIZE
$15M – $100M
3
TYPE
Light & Flex
4
USE
Warehouse
Distribution
Light Manufacturing
Cold Storage
5
LOCATION
Texas
Florida
Tennessee
North Carolina
South Carolina
Location
We target properties in stabile and growing markets across the Southern and Western regions of the U.S with a population of at least 50,000 people and a diverse employment base.
Target Assets
Industrial, Flex, Retail, and Office properties that are underperforming in comparison to todays market.
Add Value
Our strong systems and technical background aid us in improving operations, increasing lease up, and driving revenue in order to increase net operating income and provide strong financial returns for our investors.
Deal Size
Our sweet spot lies in single and multi-tenant assets in the $1.5M – $10M price range. Within this price range, we are able to source mis-priced and underperforming assets where we can execute our investment strategy after closing.
Investment Structure
We typically raise equity deal by deal, but may use pooled investment funds depending on the deal type and timeline. Accredited investors who have passed our new investor vetting process and have been invited to join our interest list are able to invest in deal offerings as they become available.
Off Market Deals
We source most of our opportunities “off-market” through both direct outreach to sellers and our strong broker relationships that allow us to get the first look at deals before hitting the market.
Solid Foundations
Using conservative underwriting and realistic lease rate, we never rely on market appreciation or high rent growth to hit our returns. Our deal evaluation is based on the spread between in place rents and the current market rates. We look at market appreciation as the “cherry on top” but is not necessary for our deals to perform well. We raise a healthy reserves amount ensuring that we are able to complete any necessary CapEx and weather any storms.
Hold Period
We aim to complete our business plan in 1-3 years and return 80%+ of investor capital through a refinance. We are opportunistic sellers, and while we only acquire assets we are comfortable holding for the long run, we will sell in a favorable market. Our typical hold period is 3 – 5 years, but various depending on the individual asset.
Tax Advantaged
Each property is held in a separate entity, reducing investors liability and allowing us to take advantage of accelerated depreciation. Tax liabilities are deferred through out the holding period and can offset other income for high earners. When possible, we will offer 1031 exchange opportunities to further defer taxes.
Co-Invest
Typically Tall Timber Capital will invest 5-10% of the equity alongside our investors in every deal.
- Interested In Investing?