Our acquisitions team maintains an in-depth knowledge of apartment markets throughout the country. Their expertise provides us the opportunity to underwrite and ultimately close on acquisitions in a timely and diligent manner. The team pursues acquisitions in markets where our expertise can be leveraged to deliver exceptional results, and where economic conditions present opportunities for growth.
In January, 2014 we had the opportunity to acquire Towne Park Apartments out of foreclosure. The property is strategically located in the primary commercial and retail corridor in Troy (Dayton), OH, has 204 units and was built in 2004. A TIC based in Wisconsin bought the property in 2005 and the real estate downturn created liquidity problems which ultimately led to the property being taken through the foreclosure process. U.S. Bank reacquired the property at the Sheriff’s Sale in June, 2012 and CW Capital was appointed the special servicer. We then acquired the property through an online auction facilitated by auction.com in 2014.
On October 7, 2024 we acquired Indigo, a 395 unit, Class A, apartment community in Bloomington, MN. This property offers a sophisticated blend of luxury and convenience. Located minutes from the Minneapolis/St. Paul International Airport and the Mall of America, the site is near numerous major employers and adjacent to the Metro Transit Light Rail. The community is comprised of studio, one, two and three bedroom residences, featuring granite countertops, kitchen islands, stainless steel appliances, and full-sized washers and dryers.
In January, 2014 we had the opportunity to acquire Towne Park Apartments out of foreclosure. The property is strategically located in the primary commercial and retail corridor in Troy (Dayton), OH, has 204 units and was built in 2004. A TIC based in Wisconsin bought the property in 2005 and the real estate downturn created liquidity problems which ultimately led to the property being taken through the foreclosure process. U.S. Bank reacquired the property at the Sheriff’s Sale in June, 2012 and CW Capital was appointed the special servicer. We then acquired the property through an online auction facilitated by auction.com in 2014.
On October 7, 2024 we acquired Indigo, a 395 unit, Class A, apartment community in Bloomington, MN. This property offers a sophisticated blend of luxury and convenience. Located minutes from the Minneapolis/St. Paul International Airport and the Mall of America, the site is near numerous major employers and adjacent to the Metro Transit Light Rail. The community is comprised of studio, one, two and three bedroom residences, featuring granite countertops, kitchen islands, stainless steel appliances, and full-sized washers and dryers.
In January, 2014 we had the opportunity to acquire Towne Park Apartments out of foreclosure. The property is strategically located in the primary commercial and retail corridor in Troy (Dayton), OH, has 204 units and was built in 2004. A TIC based in Wisconsin bought the property in 2005 and the real estate downturn created liquidity problems which ultimately led to the property being taken through the foreclosure process. U.S. Bank reacquired the property at the Sheriff’s Sale in June, 2012 and CW Capital was appointed the special servicer. We then acquired the property through an online auction facilitated by auction.com in 2014.
Timberland Partners has several differentiators as an investment manager:
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Our investment partnerships are deliberately structured as long-term investment vehicles. Near a loan maturity, we will seek to either refinance the property and hopefully return capital to our partners, or otherwise sell the property and seek to complete a 1031 tax-deferred exchange for a newer asset. In either case, equity from the partnership is harvested tax deferred.
For investors who need to liquidate their interest, our team acts as an administrator to list your share(s) to other investors in the partnership and facilitate a sale and transfer.
All investors should enter the partnership planning for a long-term (10+ year) hold. Our partnerships are ideal for investors seeking regular cash distributions and long-term equity appreciation.
For investors who need to liquidate their interest, our team acts as an administrator to list your share(s) to other investors in the partnership and facilitate a sale and transfer.
The first level of oversight comes from our in-house property management arm, which will oversee the leasing and operations of the property.
Next, each acquisition will have a dedicated in-house Asset Manager who will oversee the execution of the business plan at the property and represent the ownership group. This individual will be responsible for developing the annual budget, approving capital expenses at the property, assisting with future refinance or sale activities, and ultimately holding the property management team accountable to the execution of the business plan.
Beyond the asset manager, the principals of the company all have a stake in the success of each investment, regularly review the ongoing performance of the asset, and participate in the execution of the business plan.
All properties within our portfolio are managed by our in-house property management team. They are led by industry veterans with over 20 years of experience each. In addition to the site-level team, each property will also have a regional manager and a regional vice president. Our national scale affords best-in-class management technology and buying power with local vendors to keep costs down. We take pride in attracting and retaining top talent in the management business to keep all our assets operating at their peak potential.
Value-add or non-stabilized properties are purchased with short-term floating-rate bank financing. The objective in these cases is to refinance the property upon stabilization with 10- or 12-year fixed-rate agency financing through Fannie Mae or Freddie Mac.
Most acquisitions, however, are stabilized at acquisition and here we utilize the same agency financing upon acquisition. This eliminates short-term, floating interest rate exposure. Timberland Partners is a preferred borrower with both agencies and we receive the most competitive rate pricing available in the country.
Private real estate offers several powerful tax benefits.
First, distributions are tax-deferred. Instead, investors receive an annual Schedule K-1 that reports their proportionate share of the net income from the partnership. Here, depreciation and other non-cash charges reduce the income from the partnership.
Second, refinancing a property allows investors to tap the equity of the property without paying capital gains tax. Refinance proceeds reduce your tax basis in the partnership, but distributed proceeds are non-taxable.
Finally, by completing a 1031 exchange, equity proceeds from a sale can be reinvested tax-deferred in newer asset, resetting the depreciation clock and unlocking potential for higher future returns on equity.
Our strategy is rooted in a long-term perspective, 10 years or more, and we work to create and grow value at each apartment community. This approach, amplified by tax benefits such as pass-through depreciation, stepped-up basis, and 1031 exchanges, provides a powerful vehicle for the growth of generational wealth.
Heirs can inherit your interest in these partnerships at a stepped-up tax basis, which is the value of the partnership interest at the time of your death. This becomes important at the time of liquidation of either a property or partnership interest, the proceeds from which are taxed at the applicable capital gains rates. With the stepped-up basis, your heirs' tax liability will be lower than it would have been if they had made the original investment directly. The longer you hold the partnership interest before your heirs receive it at a stepped-up basis, the more potentially significant the effect of the tax benefit will be.
Like all of our partners, they will receive tax-advantaged quarterly distributions and an annual K-1 for their tax reporting. They will get the additional tax benefit of increased pass-through depreciation from the inherited partnership interest.
Our team welcomes the opportunity to connect with you and your family to discuss how our investments work and what they can expect as future partners.
Suggest that he/she designs your estate plan to allow you and your heirs to access the advantages of the step up in basis.
Your partnership interest is transferable and may be split among any number of heirs.
You can invest in our partnerships as an individual, with your spouse as joint tenants, or through an entity such as a trust, LLC, or self-directed IRA. If, for example, you form a new trust at some point down the road, you can transfer your partnership interest into the new trust at that time. Please note that transfers are subject to legal fees.
We cannot accept 1031-exchange proceeds. IRS rules stipulate that 1031-exchange proceeds be invested in a “like-kind” property – in other words, into real estate directly. Investing with Timberland Partners means purchasing shares for an interest in a partnership. 1031-exchange proceeds cannot be exchanged into partnership interest.
The best way to reinvest distributions is to invest in a future Timberland Partners offering. There is no mechanism to automatically reinvest distributions.
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