Investments. Opportunities. Partnership.
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Trust, Growth and Mutual Success
Our strategy at Timberland Partners Investments has always been simple: strategically identify opportunities, create strong partnerships – and manage both exceptionally well.
Our first acquisition was in 1992. A modest 46-unit community in Mounds View, Minnesota planted the seed from which our business has grown. Today, Timberland Partners Investments is a national organization dedicated to enriching the lives of our partners, team members and residents. With more than 16,000 units in our portfolio, we’ve sustained a 28-year record of carefully managed growth, continually refining an equation that works. Our team seeks out the real estate investment opportunities found in changing market conditions, expanding employment markets, well-timed renovations or organizational changes. This allows our investment partners to enjoy the benefits of ownership without the hassles of property management.
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Million Equity Value
Invest with Timberland Partners
Our seventh – and largest – real estate fund is underway. Timberland Partners Apartment Fund VII (TPAF VII) will raise $100 million to acquire and manage quality multifamily rental properties in growing markets throughout Central and Southeastern U.S.
With increasing demands for apartments and a stable job market, we are confident in the timing and outlook of this fund. Learn more about this opportunity and how you can partner with Timberland Partners Investments.
I tell people this company has the “it” factor.
– Current Investor
A Message From Bob
“Say it. Mean it. Do it.”
Done well, a real estate investment is more than a financial transaction. It’s a strategic decision, one that takes insight, experience and vision. At Timberland Partners, wise investments are the outcome of teamwork and enduring, meaningful relationships. Our funds provide strong returns, often outperforming market expectations. And, by being committed to the highest integrity, service and communication, we are ensuring our clients succeed and thereby creating partners for life.
On behalf of our entire team, thank you for your consideration of our firm.
Robert L. Fransen
President, Timberland Partners
The Timberland Difference
A Commitment to Maximizing Value
Whether it’s acquisition or new development, identifying undiscovered revenue opportunities is our specialty. We look beyond the face-value of a property and see the potential. But we don’t stop there. Through calculated investment management, we bring that potential to life. Whether through a strategically timed renovation or simply repositioning a property to better align with market needs, we reduce avoidable costs, provide value-added enhancements and ensure each property is positioned to reach maximum earning potential.
We’re Your Partner
We invest in every project ourselves, ensuring you attention to detail and a commitment to success.
We Manage What We Own
Unlike other firms, we take a hands-on approach to managing every property within our portfolio – and only our properties. We believe delivering value means ensuring performance from the ground up. Each of our communities are managed by our professional team on a 24/7 basis to ensure success.
It’s Our People
Our strength lies in our people. Because delivering the greatest investment opportunities require talent, discipline and commitment. It’s why our team is determined to build enduring, meaningful relationships with investors. We want to be partners for life.
“Timberland really has the investor in mind first. They are all about the deal and creating good partnerships.”
– Current Investor
Transparency is Our Foundation
We’re committed to profitable, long-term relationships. Doing so takes meaningful communications with you as our investor, keeping you informed about your initiatives and their progress. Plus, when you partner with Timberland, you won’t find any hidden fees or unnecessary complexity. Our relationships and returns both grow by creating authentic value.
The Bottom Line: Outstanding Returns
Our approach to investing is the backbone of our company. Investing is more than a financial transaction; it’s an act of trust. Whether you are preparing for your retirement or simply diversifying your portfolio, you can expect clear communication and proven results.
“The kind of returns they’ve generated for me has just been tremendous, which is always the best testimony of the quality of management.”
– Current Investor
Timberland has been doing it longer than most. They are extremely reliable.
– Current Investor
Recent Success Stories
The Power of Positive Partnerships
France 98 Apartments
Creating Value Through Refinancing & Strategic Renovations
BLOOMINGTON, MN | 120 UNITS
The third asset identified and place into Timberland Partners Apartment Fund II (TPAF II) was France 98. France 98 was purchased out of foreclosure in April 2011 for $11,550,000. It took a few years and an additional $373,000 after the original purchase to close on the property’s final two units, which had previously been private-owned condos. The original acquisition loan had a principal amount of $9,241,000 and a fixed interest rate of 5.83%. This brought the total equity invested in the property to $3,100,000. Over the past nine years, the property has been a consistent cash producer for the fund, with quarterly distributions of cash flow from operations averaging 20.1%.
Results: In April 2020, Timberland Partners refinanced the property with a new Freddie Mac loan for $16,125,000, with a fixed rate of 3.16%. The loan has a 12-year term with six years of interest-only. This was possible because the property had appraised for $23,900,000 – 100.5% of the original purchase price. Despite the increased principal balance, the lower rate will reduce the annual debt service by more than $143,000. The net equity after the refinance is $11,183,744 – a 361% increase since acquisition.
In addition to a $3,533,927, 26.2% (non-taxable) return-of-capital distribution to the partners following the refinance, Timberland Partners is also reserving $3,408,744 for future improvements to the property to set the asset up for another long-term hold. Of those reserves, roughly $1.8 million will be spent in the coming months on parking lot resurfacing, new roofs, window repairs, exterior paint, siding repairs, and other deferred maintenance. The balance will be used to renovate the 120 units, common areas, and certain amenities. Though renovations are temporarily suspended during the Covid-19 pandemic, we will initiate the upgrades when confident of earning a 20% return on investment for the unit renovations.
Between the operating cash flow distributions and increase in equity, France 98 has produced a total average annual return to our partners of 35.43% per year for nine years. With this refinance, we look forward to another successful run for the property.
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Creating Value Through Opportunistic Refinancing and Land Sell-offs
LINCOLN, NE | 270 UNITS
Ruskin Place has proven a phenomenal investment for Timberland Partners, surpassing even our most optimistic expectations at the time of acquisition. In the fall of 2005, Timberland Partners acquired the property for $13,097,500, with an equity investment of $3,280,000. The property included 22 acres of excess land. There was no guarantee we would be able to sell this excess land, but the possibility made the opportunity more enticing.
The property was a strong cash flow producer from the beginning. In the first year, in 2006, the cash-on-cash distributions to partners was 9.69%. A year later, in 2007, we were able to parcel off a section of the land to a local homebuilder and sold it for $1.7 million (52% of the original equity investment). Another year later, in 2008, another section was parceled off to a neighbor, a technology company, with a sale price of $230,000. The property continued to produce strong cash-on-cash returns for the partners, averaging 13.3% per year through 2019.
Results: In February 2020, the property appraised for $25.5 million and we refinanced with a new 12-year fixed-rate Fannie Mae loan with an interest rate of 3.57% – down from the previous rate of 5.83%. After the distribution to partners out of refinance proceeds in 2020, the equity in the property is estimated at $5.1 million. The total return to partners, including cash distributions and equity appreciation has achieved an average annual rate of 25.83% per year for 15 years. With the improved interest rate and replenished capital improvement reserves, we believe that we’ve positioned the property to ensure another decade of solid performance.
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Creating Value Through Opportunistic Purchase and Measured Risk
CLEVELAND, TN (Chattanooga) | 324 UNITS
In September of 2017, Timberland Partners Apartment Fund VI, LLC purchased Brookes Edge for $34,920,000 investing $8,800,000 in capital and financing the balance with a floating rate bank loan. The Class A property was constructed in 2017 and was still in its initial lease up with only 70% of the apartments leased at the time of acquisition. This allowed TPAF VI to purchase the property at a discount to replacement cost, as it assumed the risk of leasing the remaining units. The property is now fully leased.
Results: According to a recent appraisal, the property value has increased to $41,000,000, or by roughly 20%. In November of 2019, TPAF IV significantly reduced the floating rate risk by refinancing the property with a new twelve-year fixed rate Fannie Mae loan allowing the Fund to make a $3,500,000 distribution to its investment partners. The rental activities of Brookes Edge have produced an 8% cash return since acquisition. When combined with the refinance distribution above, Brookes Edge has produced an average annual return of 26% to TPAF VI in just over two years.
Increase in Property Value