Trez Capital is a multibillion-dollar lender that contributes to investors’ financial success by providing a source of stable income through custom real estate financings. With approximately $4 billion in assets under management (including mortgages, loans and equity investments), Trez Capital currently offers investors multiple investment funds in private placements and open-ended investment trusts.
Since its inception in 1997, Trez Capital has funded more than 1,500 real estate transactions in excess of $12.5 billion. Trez Capital looks to deliver creative, entrepreneurial solutions for the real estate industry.
A Canadian-based company, Trez Capital has expanded across both Canada and the United States. Expansion began in 2010 in Dallas and Trez Capital has now grown to seven offices across North America.
Building on past success
Central to Trez Capital’s criteria for selecting a project is to look for opportunities in markets with a growing population, a higher-than-average GDP and job growth. Throughout market changes, the one thing that has stayed constant over the last 24 years is how Trez Capital delivers results to investors and borrowers. Trez Capital applies a rigorous, risk-managed approach to give clients a safe and consistent borrowing experience, with steady returns for investors.
Leveraging off a robust lending platform, in 2015, Trez Capital identified the opportunity for a short-term Build-to-Sell investment strategy that would result in strong returns for Canadian investors. Since then, Trez Capital has successfully closed five private real estate equity funds (Trez Opportunity Funds I through V). The company’s ability to source well established developers, while applying a rigorous due diligence and monitoring process, has led to recently completed projects delivering above market pre-tax IRRs via the Build-to-Sell strategy.
The five pooled U.S. real estate equity funds and multiple single-investment equity funds now total approximately $350 million in gross capital commitments.
Access to development stage projects
For many years, Trez Capital has had access to development stage products with impressive IRRs through an asset class that is typically uncorrelated and less volatile than equities. The projects have focused on multi-family, single-family for rent, self-storage and industrial asset classes in thriving markets in Canada and the U.S.
Historically, access to these projects has been offered on an exclusive basis to institutions and accredited investors. Trez Capital is now opening its equity investment management services to the investing public.
Trez Capital to launch a new Build-to-Hold fund in fall 2021
Trez Capital prides itself on deep real estate industry expertise, on-the-ground perspective and innovative offerings. This led Trez Capital to fulfill a need for investors: one of Canada’s first evergreen development real estate funds. This fund is a Build-to-Hold investment strategy that allows investors to maximize their real estate return by investing in a diversified basket of high-quality development projects located in some of the strongest real estate markets in Canada and the U.S.
The Trez Capital Private Real Estate Fund (TPREF) is a long-term Build-to-Hold strategy that will complement the equity investment partnerships’ Build-to-Sell strategy.
TPREF is a unique offering to investors, allowing them to increase their exposure to ground-up development and long-term asset management (direct ownership through to income producing), normally unavailable without substantially higher minimums.
Ground level benefits for investors
By allowing investors access at the development stage, Trez Capital anticipates that there will be significant capital appreciation during the initial years of the fund, and a steady, growing stream of cash flow as properties stabilize.
“Investors have driven the launch of this new fund,” said Morley Greene, Chairman and Chief Executive Officer, Trez Capital. “We have been helping to build and sell quality self-storage, offices and homes for many years, and we came to the conclusion that we should use our position in the market to give our investors the opportunity to invest at the ground level.”
“There is increased demand for the products 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 meeting market demands,” Greene added.
Given the price premium payable on the acquisition of stabilized income property, through this program, Trez Capital looks for opportunities where the all-in development cost to build or improve a portfolio property is notably less than the market replacement cost of a similar, albeit stabilized, acquisitions. The goal of this long-term strategy is to create a portfolio of modern buildings that outperform over the long term.
“Overall, the benefits to investors and developers are clear,” said John D. Hutchinson, President of Trez Capital, Central & Southwestern U.S. “It is difficult to invest in development projects without taking concentrated risk. Our due diligence ensures secure investments and returns. Plus, we allow investors to participate in a diversified pool of real estate developments, with certainty that each has been underwritten to an institutional standard. For developers, we offer flexible and consistent capital. Most of our business is with repeat borrowers, who value the flexibility and consistency in execution that Trez Capital provides.”
To learn more about Trez Capital visit www.trezcapital.com