Trez Capital is one of Canada’s largest non-bank lenders supporting borrowers with custom real estate financings and investors with reliable income. Founded in 1997, with the vision to help build a successful future for developers and investors alike. Through strategic lending and careful market evaluation, Trez Capital has funded more than 1,500 transactions totalling in excess of $13 billion CAD since inception.
With an entrepreneurial and proactive approach, Trez Capital looks to deliver creative and nimble solutions for the real estate industry in order to create value for Trez Capital investors. These values were the core of the business when founded over 24 years ago, and central to its expansion strategy into the United States over the last decade. Through its boots-on-the-ground analysis and expertise, Trez Capital expanded into Dallas in 2010 to build on the strength of lot development opportunities and to grow its lending business. Since then, Trez Capital has expanded its reach with offices in Palm Beach County, Atlanta, New York, Los Angeles and will open an office in Seattle this fall. Trez Capital continuously looks for 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 strong returns for Canadian investors. The five pooled U.S. real estate equity funds and multiple single-investment equity funds now total more than $350 million CAD in total underlying project assets with projects producing Internal Rates of Return (IRR) in excess of projections.
Low interest rates, strong residential markets and a lack of pre-built inventory have yielded strong dividends and a prime opportunity for increased multi-family residential equity investments. Given Trez Capital’s size and relationship with some of the best developers in the U.S. and Canada, the timing is right to expand these types of investments.
“We employ rigorous due diligence in our partner selection process, coupled with localized market research and analysis,” added John D. Hutchinson, President of Trez Capital, Central & Southwestern U.S. “We consider numerous factors before participating in a partnership project, including location, market positioning, and demand drivers such as regional job and population growth.”
Trez Capital partners with some of the top multi-faceted developers in the world for its equity investment program. In metropolitan Dallas, a partnership project has earned investors an impressive 50% IRR in a lot development project.
Other Texas partnerships have already earned investors higher-than-expected returns with a >20% IRR for Edge & Stone in San Antonio and a >40% IRR for both The Beacon on Westmoreland and Winding Creek in metro Dallas, through its Build-to-Sell strategy. Trez Capital is planning to partner again with these long-standing relationships to build more than 10,000 dwelling units over the next five years.
During a recent investor call, one of Trez Capital’s development partners cited “we are a part of the tremendous growth in Texas and the Southwestern U.S. and the ability to work with partners such as Trez Capital ensures that we are delivering the communities that residents are looking for.”
With people in mind, Trez Capital looks to build homes, create communities and bring true value to investors.
Growth yields opportunity
Trez Capital equity partnerships give investors access to development stage projects that are typically uncorrelated and less volatile than equity markets. Growth is driving increased demand in all asset classes including multi-family, single-family for rent, self-storage and industrial.
Momentum continues to build in major states where Trez Capital lends, such as Texas, Arizona, Florida and Colorado, driven by growth factors such as low taxation, low regulation and more freedom to do business.
“There is increased demand for the equity projects we are building, and there has been a massive housing shortage, especially due to migration. With self-storage, single-family, apartments and lot development, we have taken a truly diversified approach to meet market demands both geographically and in asset classes,” Hutchinson added.
Opportunity enhances market position, providing unique investment products
Capitalizing on the growth in the equity investment partnership program, Trez Capital developed a new fund, the Trez Capital Private Real Estate Fund (TPREF). The fund is a long-term Build-to-Hold strategy which had its first closing on August 31, 2021 and complements Trez Capital’s equity investment partnerships’ Build-to-Sell strategy.
Great opportunities in sunbelt states with high-growth cities have been identified as areas that will benefit Canadian investors who don’t typically have the chance to invest in U.S. properties with a boots-on-the-ground approach.
Trez Capital, along with its development partners, intends to provide capital appreciation for investors through the development process and sustainable tax-advantaged income from holding properties over the long-term.
About Trez Capital
Founded in 1997, Trez Capital is a diversified real estate investment firm and trusted provider of private commercial real estate financing solutions in the U.S. and Canada. With offices in Vancouver, Toronto, Montreal, Dallas, Palm Beach County, Atlanta, Los Angeles and New York, Trez Capital Corporate Group has over $3.9* billion CAD in assets under management and has funded over 1,500 transactions totalling more than $13 billion CAD since inception.
(*Corporate Group AUM includes assets held by all Trez related entities as well as $2.7 B Manager AUM (Trez Capital Fund Management Limited Partnership)).
To learn more about Trez Capital please visit www.trezcapital.com.