Triton Global Partners Real Estate Fund, LLC
Invest with vision. Live with style.
About Us.
Triton Global Partners Real Estate Fund, LLC invests in wealth-generating real estate in the Dallas-Fort Worth Metroplex. Through multiple proven investment vehicles, Triton deploys capital into existing single-family real estate, multifamily real estate, and urban residential developments.
Existing Multifamily Market Bubble And Forthcoming Opportunity.
The Dallas-Fort Worth (DFW) multifamily market has witnessed an extraordinary surge in demand and rental rates over the past five+ years; multifamily property assets, in large part, have become overvalued due to these prime conditions and the previous accessibility of low-interest, high-leverage, non-recourse bridge debt. We see an exceptional opportunity forthcoming as the market recalibrates with previous low-interest rates, interest-only bridge financing expiring, and the required replacement with high-interest rate permanent debt, creating a bubble and subsequent market correction as leveraged property owners fall underwater based on previous overpriced acquisition costs + current higher interest rate economics. As lenders are currently beginning to foreclose on these types ofproperties, the market is returning to a more realistic state; we anticipate that promising investment opportunities will emerge in a significant way beginning in the second quarter, gaining steam in the third and fourth quarters of 2024. This shift in the market landscape signifies opportunity and a potential window for savvy investors to explore these avenues with significant advantages.
The Advantage.
We've cultivated unique synergies by leveraging the collective strengths of our seasoned single-family and urban residential town home construction group and our multifamily team. Drawing from our in-house experience overseeing thousands of units valued at $500 million and our extensive expertise in underwriting deals worth billions, we are strategically positioned to enter the market at the right moment. Throughout our history, our focus has been on pursuing value-added multifamily renovation opportunities, consistently targeting under performing assets in prime sought-after locations. This approach aligns with our commitment to enhancing property value and capitalizing on strategic investments.
Our disciplined underwriting acquisition process, based on proper market timing and fair value, defines us.
Operations Summary.
Location, Location, Location
We elevate the conventional real estate approach to a whole new level. Our selection of urban residential locations goes beyond the standard analysis of demographics and geographic factors. Instead, we strategically focus on neighborhoods where cities across the metroplex have revamped zoning ordinances to allow for high-density construction, granting developers the right to build without navigating years of bureaucratic hurdles. This approach expedites the development process and fosters the creation of vibrant communities that appeal to residents. These sought-after submarkets can be found throughout the metroplex, as cities actively encourage investment in local neighborhoods. What sets these neighborhoods apart is the urban experience created with eclectic character, walkable infrastructure, parks, and placement within mixed-use areas featuring boutique dining, work, and shopping establishments.
Our Edge
We've seamlessly applied our distinct experience and perspective to the realm of urban residential development, resulting in floor plans and building features that seamlessly align with current market preferences. Our in-house due diligence team meticulously evaluates numerous projects to pinpoint the most promising opportunities. Throughout this rigorous process, we work closely with our architects and engineers to incorporate any zoning or city requirements directly into our financial analysis. Our attention to detail is so thorough that we have our building footprint mapped out before we even submit an offer, ensuring that our approach is both comprehensive and forward-thinking with the end goal of maximizing. profits and stakeholder value.
Multiple Exit Strategies
New urban developments undergo thorough analysis, encompassing a spectrum of exit strategies, including institutional whole property sales, individual unit sales, corporate housing, long-term rentals, and short-term rentals.
Maximum Offering:
$10,000,000
Minimum Offering:
$1,000,000
Minimum Investment:
$50,000
DFW is one of the nation's largest employment markets, with nearly 3.6 million jobs.
$10,000,000
Minimum Offering: $1,000,000
Minimum Investment: $50,000
A total of two hundred (200) Class A Membership Interests are offered through this Offering. The Minimum Investment Amount is fifty thousand dollars ($50,000.00) or one (1) Class A Unit. Each Interest is priced at fifty thousand dollars ($50,000.00) per Class A Unit.
Terms of the Offering.
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Distribution Rights
All distributions, if any, made to Class A Members will be from Net Distributable Proceeds and in amounts and at times that are at the sole discretion of Manager. Net Distributable Proceeds determined by the Manager to be distributed to Members shall be allocated and disbursed as follows:
First, Net Distributable Proceeds shall be paid to Class A Members until they receive the prorated, non-compounded per annum IRR of ten percent (10.0%) on their respective Capital Contribution (the “Preferred Return”).
Second, after the Class A Members have received their Preferred Return, eighty percent (80%) of Net Distributable Proceeds shall be paid to the Class A Members as a return of Capital Contributions, with the remaining twenty percent (20%) of the Net Distributable
Lastly, after all Capital Contributions are returned to Class A Members through Net Distributable Proceeds and their respective Unrecovered Capital Contribution account balances are zero, Class A Members will receive twenty percent (20%) of and the Class B Member will receive eighty percent (80%) of any further Net Distributable Proceeds for the remaining life of the Company payable in amounts and at times that are at the sole discretion of Manager.
Distributions to each class will be done concurrently. No Member has any right to demand and receive any distribution from the Company in any form other than money in the form of US Currency. No Investor may be compelled to accept from the Company a distribution of any asset in kind.
Voting Rights
Each Class A Unit shall be entitled to one vote per Unit (or such percentage vote equal to the applicable fraction of one Unit in the event of the issuance of a fractional unit) on all matters to be voted upon by the Investors. For example, if a Class A Interest-holder owns four (4) Class A Units and there are two hundred (200) Units then outstanding, that Limited Member would be entitled to a vote equal to two percent (2.0%) of all Investors.
The affirmative vote of Members holding not less than a majority (50%) of the Percentage Interests of each class, voting as a class represented, is required to:
Admit one or more Additional Members to the Company from the sale of additional Units; and
Approve any loan to any Manager or any guarantee of a Manager's obligations; and
Amend this Agreement in such a way that would result in a change to the Preferred Allocation as set forth on Exhibit “1” of the Operating Agreement or adversely affect the rights, or the interest in the capital, distributions, profits, or losses of any Member as set forth on Exhibit “1” of the Operating Agreement; and,
Select a Manager in the event of a Manager vacancy.
Unanimous consent of all Company Members, not including the Manager, is required to issue a Notice to Perform or remove the Manager for Cause.
Unanimous consent of all Company Members is required for any of the following matters:
To authorize an act that is not in the ordinary course of the business of the Company; and
To amend the Articles of Organization of the Company or make substantive amendments to this Agreement.
Class A Membership Interests have very limited voting rights. Please refer to the Operating Agreement for a full definition and description of the voting rights.
Liquidation Rights
Upon dissolution and termination, proceeds from the liquidation of the assets of the Company and collection of the receivables of the Company, to the extent sufficient therefore, shall be applied and distributed in the following order of priority:
First, to creditors in the payment and discharge of all of the Company’s Debts and other Liabilities (whether by payment or the making of reasonable provision for payment thereof to the extent required by law), including any Member Loans and accrued Manager fees; then
Second, to the Members, pro-rata in accordance with their Unrecovered Capital Contributions until such Capital Contributions have been returned in full; then,
Third, in accordance with the profit and loss Allocations as found in Operating Agreement Section 7.1.1.
This is the anticipated order of priority but changes to the anticipated order of priority may occur as a result of court order, administrative ruling, change in law, or agreement of the affected parties.
Estimated Use of Proceeds
Dallas/Fort Worth's population growth in recent years ranks among the highest in the U.S for a major metro. Cushman and Wakefield expect the population to reach 9 million by 2030.
Management Team
The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
Shawn Zafarpour
Michael P. Bezdek
Michele Ostrander
Justin Miller
Rob Ratchinsky
Stuart Massey
The metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The diversity of companies in Dallas insulates the economy from sector specific downturns.
So Much More Than What You See
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