Acquisitions

Investment Strategy

Acquisitions Focus

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.

Strategic Considerations

Acquisitions Process

Identify an Acquisition Opportunity

Our team has strict investment criteria and look for suburban, garden-style properties across the central and southeastern US. We conduct due diligence on the property, the financials, the local market, and the financing options, seeking opportunities that present attractive going-in yields with growth potential.

Develop a Business Plan

Each property is unique. We craft custom business plans to maximize the potential operating income at the property. Depending on the asset and the market, this can include some combination of capital improvements on deferred maintenance, improving operational efficiencies, adding resident amenities, re-branding the asset, or implementing strategic unit renovations.

Structure Financing

Each acquisition is made with a combination of debt and cash equity from our principals and our investment partners. We have strong relationships in the debt markets and can negotiate attractive terms for our financing needs.

In-House Management

After acquisition, we transition the asset to ongoing operations through our vertically integrated in-house property management team. In conjunction with our asset managers, we oversee the execution of the business plan and work to operate the property at its peak potential.

A record of strong returns.

$ 1 M

Q1 2025 Net Distributions

1 %¹

Q1 2025 Weighted Average Net Yield²

¹Current Yield calculated on original investment base and current quarter distribution to investment partners. Investment base not adjusted for “Return of Capital” distributions. Yield does not include any value to equity appreciation.

1 %

LTV²

²Portfolio weighted average.

Track Record

Acquisitions Case Studies

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THE BOWIE – Springdale, AR

0 %

IRR (Estimated)

0 %

CCR (Operations)

$ 0 M

Market Value

On May 31, 2023, The Bowie, a 234-unit Class A- community in Springdale, AR, was acquired by successfully completing the 1031 tax-deferred exchange of Park West Apartments. Newly constructed, the property was purchased during its initial lease-up phase. We rebranded upon acquisition and executed on plans to complete the lease-up and bring it to stabilization.

Towne Park – Troy, OH

0 %

IRR (Estimated)

0 %

CCR (Operations)

$ 0 M

Market Value

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.

Indigo – Bloomington, MN

0 %

IRR (Estimated)

0 %

CCR (Operations)

$ 0 M

Market Value

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.

frequently asked questions

Investments FAQ

Who are your investors?

We serve a growing network of high-net-worth individuals, family offices, and select Registered Investment Advisors (RIAs) around the country. Today, we have over 1,200 active investment partners. All of our offerings are 506(c) Regulation D securities and are restricted to accredited investors only.

What are your differentiators?

Timberland Partners has several differentiators as an investment manager:

Exclusively multifamily. We strive for a deep expertise in a proven sector where we have 30+ years of experience.
Long-term mindset. We look to buy great properties at fair prices, where we can expect cash flow and values to rise over time. We are not in the business of timing markets, and we profit from the tax advantages afforded to long-term owners, including refinancing and executing 1031 tax-deferred exchanges.
Sponsor alignment. Our principals invest significant personal capital directly alongside our investment partners, contributing between 10%-20% of all cash equity in each new deal. While this does not ensure investment success, it does ensure alignment. We win when you win.
Vertically integrated. We manage every property in our portfolio and do not third-party manage for any other owners. With a 20,000+ unit portfolio, our scale delivers direct cost savings in expense management and affords us industry-leading technology to maximize property operating income. Additionally, in-house management leads to better underwriting from real-time operational data, and efficient transitions from acquisition to ongoing operations.
Unmatched transparency. You can expect best-in-class reporting from a highly responsive investor relations team. We pride ourselves on the relationships we build with our partners and the timeliness of our reporting.

How do I stay in the loop on new investment opportunities?

Subscribe to our monthly newsletter for all the latest offerings, company updates, investor resources, and market commentary. Additionally, becoming an “Investment Insider” ensures you see the latest opportunities as soon as they are released.

What is the exit strategy?

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.

What liquidity options are available?

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.

Who is managing my investment(s)?

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.

Who manages your properties?

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.

How do you finance your acquisitions?

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.

What are the tax benefits?

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.

How do these investments build generational wealth?

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.

What should I tell my heirs about these investments?

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.

What should I tell my estate planning attorney about these investments?

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.

Can I invest with 1031 exchange proceeds?

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.

Can I reinvest my distributions?

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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Strategic Overview

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Our Strategy

Acquisitions

Strategic Overview

Explore our process focused on long-term value and wealth creation.

Our Strategy

Acquisitions

Return of Capital Versus Return on Capital

Education Hub

News

Return of Capital Versus Return on Capital

Education Hub

News

Acquisitions

Acquisitions Focus

Acquisitions Process

Identify an Acquisition Opportunity

Develop a Business Plan

Structure Financing

In-House Management

A record of strong returns.

Acquisitions Case Studies

Investments FAQ

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Strategy

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Get alerted to the next opportunity.

Don’t miss out on our next investment offering.

Opportunities

Previous Offerings

Get alerted to the next opportunity.

Don’t miss out on our next investment offering.

Opportunities

Previous Offerings

Strategic Overview

Explore our process focused on long-term value and wealth creation.

Our Strategy

Acquisitions

Strategic Overview

Explore our process focused on long-term value and wealth creation.

Our Strategy

Acquisitions

Return of Capital Versus Return on Capital

Education Hub

News

Return of Capital Versus Return on Capital

Education Hub

News

Acquisitions

Acquisitions Focus

Acquisitions Process

Identify an Acquisition Opportunity

Develop a Business Plan

Structure Financing

In-House Management

A record of strong returns.

Acquisitions Case Studies

Investments FAQ

Invest with us.

Stay informed.

Investments

Strategy

Resources

About

Contact

Stay in the know.

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