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Timberwalk Transaction Key Takeaways

September 12, 2022

A few weeks ago, we closed our latest acquisition, Timberwalk Apartments, a 300-unit multifamily property in Houston, and here are my 3 takeaways.

 

The debt markets are extremely choppy right now adding to the uncertainty in the market. Right now is not the time to necessarily be shopping around for the absolute lowest rate on your loan. Instead, choose a lender based on relationship, reputation, and certainty of execution. The last thing anyone needs is a lender retrade in today’s environment.

 

1031 exchanges remain a big part of our business as we had multiple investors exchange into Timberwalk. We take pride in being a great option for 1031 exchange investors looking for a passive investment in a professionally managed deal. I believe 1031s will continue to be a major source of equity for us as bonus depreciation is slowly phased out (2022 is the last year of 100% bonus depreciation).

 

New partners / investors are great, and we are always looking to build new relationships. However, I think it is wise to try to limit the number of new partners in a single deal because it adds more uncertainty and potential complications if multiple new partners end up having issues at the same time.

 

As with each deal, we learned a lot closing on this asset and we look forward to continuing to build our portfolio. We have a few more closings coming up so please reach out if you’d like to learn more about investing with us as a limited partner or co-GP.