As it pertains to Real Estate, Transcendent Investment Management deploys capital via two primary strategies in the single family residential market. TIM both purchases generally newer single family and townhomes from major builders in the SFR strategy and, separately, creates purpose-built ground up, fully amenitized communities in its Build for Rent (BFR) business line. In both instances TIM leverages the in-house, wholly owned subsidiary, BUSB (fka Build US Back), to assess, acquire, construct, rent, manage, buy and sell the properties associated with both strategies to control costs and provide optimum yields to TIM investors. TIM is generally focused in the Southeast United States but is active outside of the area in select high-growth, tax-friendly states and MSAs.
Brand-new high-quality homes recently delivered from top homebuilders (80%+ purchased from publicly traded U.S. builders), leveraging TIM’s “most favored nation” agreements with these homebuilders.
Single community risk is mitigated as homes are generally spread over many communities.
Single property risk is also mitigated as cash flow and operational risk is spread across many homes.
Bulk purchases at significant discounts agreed to by builders at quarter end as they seek to smooth out reported earnings. The built-in equity from discounted purchase prices decouples portfolio reliance on overall market appreciation.
Vacant at purchase and generally stabilized within four to six months via professional in house vertically integrated internal management (BUSB).
Typically sold after 2-5 years either via direct retail sales to individual buyers or as cash-flowing portfolios.
Purpose-built, fully amenitized communities of 100-250 units functioning as horizontal apartments branded under TIM’s subsidiary CleanLiving Communities.
Ground-up development of generally smaller Single Family Homes and Attached Townhomes for more efficient, higher yielding rents.
Developed in partnership with top 5 publicly-traded national homebuilder.
TIM purchases or joint ventures high quality sites in its target markets with a preference for site-plan approved, shovel ready sites or those that can be ready in short order.
Greater operational efficiencies and lower costs given single communities that function similarly to multifamily.
Though exit is modeled almost exclusively via cap rate-based sales, downside protection exists in the ability to sell units at retail should the need arise.
TIM’s BFR communities generally exceed traditional multifamily yields given efficiencies in TIM’s program.