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Previous Offerings

Single-asset in Illinois.
Single-asset in Minnesota.
Multi-asset in the Southeast.

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Opportunities

Become a partner.

Previous Offerings

Single-asset in Illinois.
Single-asset in Minnesota.
Multi-asset in the Southeast.

Strategic Overview

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

Our Strategy

Our strategy for success.

Acquisitions

Get insight into our precision-driven process.
Find answers to your questions.

Strategic Overview

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

Our Strategy

Our strategy for success.

Acquisitions

Get insight into our precision-driven process.
Find answers to your questions.

Return of Capital Versus Return on Capital

Return of Capital Versus Return on Capital

Case Study
The Bowie

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.

Photo of the pool area at The Bowie property in Springdale, Arkansas.
Photo of the kitchen in a unit at The Bowie in Springdale, Arkansas.
Photo of the living area in a unit at The Bowie property in Springdale, Arkansas.

The Bowie was Timberland Partners’ third apartment community in the fast-growing Northwest Arkansas market. The Class A- apartment community offers a variety of different one- and two-bedroom units made up of well-designed, craftsman style floor plans. The units feature fully equipped kitchens, nine-foot ceilings, stainless steel appliances, washer/dryer in all units, and tile backsplash. The common area amenities include a fitness center, pool, BBQ areas, and private office space/work from home areas.

The property is less than 20 miles from the new Wal-Mart headquarters and 10 miles from J.B. Hunt’s headquarters. The population for the Fayetteville Springdale-Rogers metro area (NWA) is projected to grow by 76% from 2022 to 2060 which is the 14th highest of all 384 U.S. metro areas. We had seen tremendous growth and strong performance from our existing properties in the market and were excited to add another property to the mix. Over the past decade, NWA has emerged as one of the country’s most dynamic economic regions. Wal-Mart will continue to play an integral part in the success and growth of the NWA market as a whole.

We entered into the purchase agreement to acquire The Bowie while it was in the early stages of development for $43,000,000. The acquisition was financed with a $22,500,000 loan from Old National Bank with a floating rate of 2.2% over the daily SOFR Index. The loan had a five-year term and was interest only for the first three years. Floating the interest rate at closing allowed flexibility to track the interest rate environment and position ourselves to lock into a longer-term fixed rate loan with Fannie Mae or Freddie Mac when appropriate.

Fast forward to October 31, 2024, when we successfully closed on the refinance. The former loan’s floating interest rate was up to 7.31%. The new $27,537,000 Fannie Mae ten year, interest-only loan has a fixed 5.27% interest rate and a loan-to-value ratio of 62.4%. The annual debt service on the new loan will be $270,181 per year lower than the interest paid on our acquisition loan over the trailing twelve months.

After repaying the existing loans, funding new escrows, paying transaction costs, adding back internal escrows and reserving funds for future capital improvements, the Fund was able to make a total (tax deferred) return of capital distribution of $3,575,000 to investors.

The most recent appraisal listed an asset value of $44,100,000 which would indicate an equity balance at the property of $16,563,000 after netting out the new loan proceeds. This represents a 348% increase over the original $3,700,000 investment base in Park West.

When considering total distributions and property appreciation, these properties have been phenomenal investments for the fund.

Case Study
The Bowie
Investment Summary
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.
Photo of the pool area at The Bowie property in Springdale, Arkansas.
Photo of the kitchen in a unit at The Bowie in Springdale, Arkansas.
Photo of the living area in a unit at The Bowie property in Springdale, Arkansas.

The Bowie was Timberland Partners’ third apartment community in the fast-growing Northwest Arkansas market. The Class A- apartment community offers a variety of different one- and two-bedroom units made up of well-designed, craftsman style floor plans. The units feature fully equipped kitchens, nine-foot ceilings, stainless steel appliances, washer/dryer in all units, and tile backsplash. The common area amenities include a fitness center, pool, BBQ areas, and private office space/work from home areas.

The property is less than 20 miles from the new Wal-Mart  headquarters and 10 miles from J.B. Hunt’s headquarters. The population for the Fayetteville Springdale-Rogers metro area (NWA) is projected to grow by 76% from 2022 to 2060 which is the 14th highest of all 384 U.S. metro areas. We had seen tremendous growth and strong performance from our existing properties in the market and were excited to add another property to the mix. Over the past decade, NWA has emerged as one of the country’s most dynamic economic regions. Wal-Mart will continue to play an integral part in the success and growth of the NWA market as a whole.

We entered into the purchase agreement to acquire The Bowie while it was in the early stages of development for $43,000,000. The acquisition was financed with a $22,500,000 loan from Old National Bank with a floating rate of 2.2% over the daily SOFR Index. The loan had a five-year term and was interest only for the first three years. Floating the interest rate at closing allowed flexibility to track the interest rate environment and position ourselves to lock into a longer-term fixed rate loan with Fannie Mae or Freddie Mac when appropriate.

Fast forward to October 31, 2024, when we successfully closed on the refinance. The former loan’s floating interest rate was up to 7.31%. The new $27,537,000 Fannie Mae ten year, interest-only loan has a fixed 5.27% interest rate and a loan-to-value ratio of 62.4%. The annual debt service on the new loan will be $270,181 per year lower than the interest paid on our acquisition loan over the trailing twelve months.

After repaying the existing loans, funding new escrows, paying transaction costs, adding back internal escrows and reserving funds for future capital improvements, the Fund was able to make a total (tax deferred) return of capital distribution of $3,575,000 to investors.

The most recent appraisal listed an asset value of $44,100,000 which would indicate an equity balance at the property of $16,563,000 after netting out the new loan proceeds. This represents a 348% increase over the original $3,700,000 investment base in Park West.

When considering total distributions and property appreciation, these properties have been phenomenal investments for the fund.

See Other Case Studies

Accredited Investor Qualification

Individuals (i.e., natural persons) may qualify as accredited investors based on wealth and income thresholds, as well as other measures of financial sophistication.

Financial Criteria

  • Net worth over $1 million, excluding primary residence (individually or with spouse or partner), or;
  • Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
Professional Criteria
  • Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
  • For further specifications please refer to the SEC website

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