CPE News (4.14.2023) – Trez Capital announced the closing of Trez Capital US Opportunity Fund #7 Limited Partnership (TOF#7) with US $27 million committed capital.
Together with the final close of (TOF#6) and 6 other retail funds, Trez Capital raised CDN $76.8 million in aggregate last week.
Vancouver based Trez Capital is one of North America’s leading non-bank commercial real estate lenders and alternative investment asset managers.
photo credit: Trez Capital
News Release
Trez Capital Announces Successful Closing of Seventh Opportunity Fund
$27-million-dollar fund projected to return 19% to Canadian investors.
Vancouver, BC– CNW – April 12, 2023 – Trez Capital, one of North America’s leading non-bank commercial real estate lenders and alternative investment asset managers, is proud to announce the successful close of over USD $27 million in Trez Capital US Opportunity Fund #7 Limited Partnership (TOF#7, or the Fund), its seventh equity opportunity fund offering to investors since 2015.
“Trez Capital provides strategic real estate equity investments to investors across North America. TOF#7 is an add-on to the long-term strategy that the firm has with Hines, a privately owned global real estate investment, development and management firm founded in 1957 that has historically developed, redeveloped or acquired 1,610 properties, totaling over 537 million square feet,” said John Hutchinson, Vice-Chairman & Global Head of Origination, Trez Capital. “The Sunbelt region continues to outperform growth projections, and our Build-to-Sell strategy of Trez Capital’s opportunity funds will continue to provide strong returns for investors.”
TOF#7 is a broad and diversified residential strategy that will give Trez Capital investors access to quality development opportunities that will deliver much-needed housing product in regions with longer-term undersupply fundamentals. The fund is co-investing alongside TOF#6 in two ground-up multi-family developments in Texas and will also invest in single-family lot development projects in the U.S. Sunbelt region, largely in partnership with Hines. All projects are Build-to-Sell, and the fund’s pre-tax IRR to investors is projected at 19%.
Since 2013, Trez Capital has provided investors real estate equity investment opportunities. This is the seventh successful close of an equity opportunity fund.
“The equity program at Trez Capital continues to gain momentum,” said Morley Greene, Chairman & Chief Executive Officer, Trez Capital. “Several years ago, Trez Capital recognized a looming shortage of housing in the U.S. Sunbelt, and we made a conscious decision to focus on residential real estate. This fund focuses on the housing shortage in the Sunbelt region due to the migration to tax-friendly states in warmer climates. Trez Capital continues to look for development opportunities in regions with strong fundamentals in order to provide the best opportunities for our investors.”
Trez Capital has provided exceptional returns to its investors and has built a reputation for providing innovative financing for commercial properties in major centres throughout Canada and the U.S. for more than 25 years.
About Trez Capital
Founded in 1997, Trez Capital is a diversified real estate investment firm and preeminent provider of commercial real estate debt and equity financing solutions in Canada and the United States. Trez Capital offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured mortgage investment funds, syndication offerings and real estate joint-venture investments; and provides property developers with quick approvals on flexible short- to mid-term financing.
With offices across North America, Trez Corporate Group has over $5.5* billion CAD in assets under management and has funded over 1,700 transactions totalling more than $17 billion CAD since inception. For more information, visit www.trezcapital.com. (*Trez Corporate Group AUM includes assets held by all Trez-related entities as well as $3.0 billion Manager AUM (Trez Capital Fund Management Limited Partnership)).
These materials are for informational purposes only and do not constitute an offer to sell or a solicitation to buy securities. Past results are not indicative of future performance. Forward-looking statements are included. Actual results, performance and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained above. Examples of such forward-looking statements include, but are not limited to: the target IRR of the Fund, the nature of the Fund and its affairs. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect including, but not limited to: the ability of the Fund to acquire and maintain a portfolio of mortgages capable of generating the necessary annual yield or returns to enable the Fund to achieve their investment objectives, the ability of the Fund to establish and maintain relationships and agreements with key financial partners, the maintenance of prevailing interest rates at favorable levels, the ability of borrowers to service their obligations under the mortgages, the ability of the Trez Capital Fund Management Limited Partnership (the Manager) to effectively perform its obligations to the Fund, anticipated costs and expenses, competition, and changes in general economic conditions. While the Funds anticipate that subsequent events and developments may cause its views to change, the Manager specifically disclaims any obligation to update these forward-looking statements, except as required by applicable law.
These materials should be read in conjunction with the Confidential Memorandum relating to the Fund dated February 28, 2023 including the risk factors identified therein. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described in the present material. Views expressed in this material and forward-looking statements are as of the date indicated, based on the information available at that time and may change based on market and other conditions.