STRATEGIES
As it pertains to Real Estate, Transcendent Investment Management deploys capital via its primary strategy in the single-family residential market. TIM focuses on the acquisition, development, and management of single-family homes and attached townhome rentals. TIM provides quality, new construction residences from national home builders that are competitively priced and support a healthy lifestyle for residents. TIM centers their investment strategy around scattered build-for-rent (BFR) newly constructed homes in highly-amenitized communities focusing generally in the Southeast United States but is active outside of the area in select high-growth states and MSAs.
1
Brand-new high-quality homes recently delivered from top homebuilders, leveraging TIM’s “most favored nation” agreements with these homebuilders.
2
Single community risk is mitigated as homes are generally spread over many communities.
3
Single property risk is also mitigated as cash flow and operational risk is spread across many homes.
4
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.
5
Vacant at purchase and generally stabilized within four to six months via professional in house vertically integrated internal management (BUSB).
6
Typically sold after 2-5 years either via direct retail sales to individual buyers or as cash-flowing portfolios.
SINGLE
FAMILY
HOMES
BUILD
FOR
RENT
1
Purpose-built, fully amenitized communities of 100-250 units functioning as horizontal apartments branded under TIM’s subsidiary CleanLiving Communities.
2
Ground-up development of generally smaller Single Family Homes and Attached Townhomes for more efficient, higher yielding rents.
3
Developed in partnership with Top publicly-traded national homebuilder.
4
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.
5
Greater operational efficiencies and lower costs given single communities that function similarly to multifamily.
6
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.
7
TIM’s BFR communities generally exceed traditional multifamily yields given efficiencies in TIM’s program.