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ExchangeRight Affiliate Telos Capital Reports 19.5% Net Annual IRR with Value-Add Sale

Telos Capital, a private equity real estate investment company and affiliate of alternative investment sponsor ExchangeRight, has taken its TCF9 Milford MA Multifamily LLC offering full cycle.

Telos Capital, a private equity real estate investment company and affiliate of alternative investment sponsor ExchangeRight, has taken its TCF9 Milford MA Multifamily LLC offering full cycle. The sale price was not disclosed.

The investment was in a 304-unit garden-style multifamily property in suburban Boston. The company said that the management team “was able to extract significant value-add for investors by separately metering utilities, performing unit upgrades and making improvements to common areas.”

According to a filing with the Securities and Exchange Commission, the private placement offering launched in November 2016 and sought to raise $7.7 million from accredited investors.

The company said that the sale distribution to investors represents a return of 194.20 percent of original invested equity. Combined with previous cash flow distributions, the investment generated a 219.88 percent total return of original invested equity in less than five years. The investment’s net annual internal rate of return was 19.50 percent, which Telos said outperformed its base case underwriting of 14.05 percent and its upside case of 18.51 percent.

“We are proud to celebrate another successful completion of our value-add strategy on behalf of investors,” said David Fisher, a managing partner in Telos Capital and ExchangeRight. “Our values demand investors always come first in any opportunity, and we are delighted to have been able to achieve that goal and reap the benefits of the investment as substantial co-investors alongside them from inception. We invest alongside investors in each of our platforms to better align our interests with investors and help drive optimal long-term results.”

Telos Capital targets discounted, value-add or opportunistic private real estate investments across all asset classes and sectors. Telos is affiliated with ExchangeRight, a sponsor of 1031 Delaware statutory trusts and other alternative investment programs.

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