Telos Capital, a private equity real estate investment company and affiliate of alternative investment sponsor ExchangeRight, has brought its TCF2 Stella Mare investment fund full cycle on behalf of its investors.
According to a filing with the Securities and Exchange Commission, TCF2 Stella Mare LLC launched in late 2015 and sought to raise $3.8 million from investors.
Telos partnered with a joint venture operator to identify and develop an “RV resort,” leading to the investment in an approximately 25-acre parcel in Galveston, Texas. According to the company, “the investment opened in under a year and saw its performance consistently improve year-over-year even throughout the COVID-19 crisis.”
Telos said that the property generated total returns, including distributions during the hold period, of more than 168 percent of originally invested equity, with a net investor annual internal rate of return in excess of 11 percent annualized.
“We are proud of how our team proactively managed our TCF2 asset to optimize investor value and ensure a successful full cycle outcome,” said Joshua Ungerecht, a managing partner of Telos and ExchangeRight. “We are pleased that we were able to execute a profitable exit on behalf of investors in the face of multiple hurricanes, the COVID-19 crisis, government shutdowns, and increased competition.”
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.