Transwestern Closes $160M Real Estate Fund

By IvyLee Rosario

Dallas—Transwestern Investment Group announced the closing of TSP Value and Income Fund I, a diversified, value-add fund that emphasizes income, disciplined risk management and proactive portfolio management, totaling $160 million.

One of the fund properties, Lincoln Town Center in Scottsdale, Arizona

The fund is principally invested in industrial and office assets in major and secondary markets with strong economic drivers, supply constraints and liquidity. It has acquired more than 3.6 million square feet of industrial assets in Chicago; Indianapolis; Columbus; Louisville, Ky.; and Austin, Texas, as well as more than 900,000 square feet of office assets in San Jose, Calif.; Scottsdale, Ariz., and Atlanta.

“We are pleased to close the TSP Value and Income Fund I with such resounding success,” said Laurie Dotter, president of Transwestern, in a statement. “We appreciate the trust of our institutional investors and their confidence in the combination of our independent investment management team and our nationwide operating platform to generate attractive risk-adjusted returns.”

Transwestern has $3.1 billion in assets under management and provides investors with the benefits of investing with a real estate operator versus a traditional capital allocator.

“Our guiding philosophy is to provide investors the least risky path to achieve value-add returns,” said Scott Fitzgerald, fund manager & executive managing director of Transwestern. “With approximately 85 percent of the capital invested to date, we are generating current cash-on-cash returns in excess of 9 percent with an expected gross internal rate of return of 16.5 percent.”

Following on the success of Fund I, the company plans to launch TSP Value and Income Fund II in early 2017.