TriStar co-invests with investment funds and local developers that have late-stage projects, using our commercial real estate expertise to help them execute their vision. We are true partners, able to offer significant value beyond financial resources.
TriStar is a creative and nimble capital partner, able to meet the challenges of complicated transactions and short timelines.
For a typical investment at the LP level, TriStar does not take any development fee or share of the promote for its contribution to the analysis and underwriting of a project.
We are only interested in participating in projects sponsored by professional funds and developers for which a detailed business case is available.
We are guided by a commitment to integrity and fair dealing.
Co-investing with Developers
TriStar co-invests with local developers who have excellent track records and projects that are ready for funding.
The experienced developers we partner with understand the nuances and market conditions in their areas and know the best local professionals to assist them in delivering quality projects. We take a long-term perspective with our JV relationships, seeking to establish partnerships that generate multiple joint venture opportunities over time.
The developers we fund must have:
- A good reputation and be willing to furnish references
- A verifiable track record of successful development activities
- The ability to fund at least 2.5% of the equity required for the project
Co-investing with CRE Funds
TriStar participates as a financially aligned partner, able to assist with the evaluation and execution of projects.
When TriStar co-invests with another fund, it gauges project risk with a data driven analysis of each project’s specific attributes, including a market/sub-market evaluation, matters related to complex environmental issues, the need for environmental indemnity/insurance, the applicability of governmental financing, local demographic modeling, complex financial, title & legal issues and more. Further, co-investment allows both our partner fund and TriStar to diversify risk.
We believe that the greatest financial rewards for all parties derive from enduring relationships with recurring transactions.
Project Investment Guidelines
TriStar does not invest in stabilized, core assets with predictable but modest returns. Instead, we focus our investments on the higher returns to be found in properties that are developed or upgraded. Every transaction is unique, but generally TriStar invests in individual projects which generally should meet these guidelines:
- Project must be located in the US
- Detailed financial projections must be available
- Project must have value-add/opportunistic returns
- Market study or business case must be available
- Project must be ready for funding with entitlements complete or nearing completion
- Total project cost between $10 and $75 million
- TriStar equity investment between $3 and $25 million
- TriStar's ownership percentage is negotiable
- Our preferred investment hold period is up to 10 years
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