Transwestern Investment Group Raises $200MM Fund, Targets Bay Area Assets

Terreno Realty Corporation, San Francisco, Dogpatch, Central Waterfront, Los Angeles, New Jersey, New York City, Bay Area, Seattle, Miami, Washington D.C.

DALLAS (April 22, 2019) – Transwestern Investment Group (TIG®) today announces it has raised $200 million for TSP Value and Income Fund II, a real estate investment fund that will follow the initial strategy of reducing volatility in the value-add space by focusing on current income while providing value creation. At the final closing for Fund II, 40% of Fund II equity was already committed to seed assets. Fund II is targeting a 12.5% or higher net IRR to investors, with a substantial amount of the return coming from current income.

“We are extremely pleased with our fundraising results, particularly the return of all our Fund I investors, as well as the addition of prominent new institutional investors,” said TIG Senior Managing Director Jennifer White. “The resounding success of TSP Value and Income Fund I was a key factor in generating investor interest.”

TSP Value and Income Fund I was fully monetized in March 2019, achieving a 17% net IRR after fees, expenses and carried interest. Fund I targeted property types that deliver strong current cash flow during the value-add process.

Fund II will continue a disciplined focus on generating meaningful current income while simultaneously targeting undervalued properties that will benefit from value-add activity. TIG will utilize the Transwestern operating platform to transform the assets for higher future values through local market expertise, tactical capital investment and operational enhancements. At this stage of the economic cycle, TIG’s focus for Fund II is expected to be industrial, multifamily and healthcare assets.

“Our fund strategy targets property types with limited capital expenditure profiles that can deliver significant cash flow during the value-add process,” said TIG Executive Managing Director Scott Fitzgerald. “We are well-positioned to capitalize on the value-add opportunities we’ve identified in markets with strong economic drivers, supply constraints and liquidity to achieve superior results for our investors.”

“While Fund II does not yet own assets in the Bay Area or Seattle,” added Fitzgerald, “we are actively looking for value-add industrial and multifamily opportunities in those markets. Fund I owned Central Park Plaza, a six-building office campus in North San Jose. The fund sold the campus in the fall of 2018.”

About Transwestern Investment Group

Transwestern Investment Group (TIG®) is an investment adviser serving a broad range of clients through a diversified array of discretionary and non-discretionary investment vehicles. With $4.5 billion of assets under management as of year-end 2018, our client-focused, relationship-driven approach is built upon trust, integrity and transparency. TIG provides tactical investment management with an integrated operating platform through the Transwestern enterprise, which includes a diversified real estate services firm with 34 U.S. offices and a prominent commercial development company. For more information, visit transwesterninvest.com.

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