ExchangeRight’s sister company, Telos Capital, a private equity company that focuses on discounted and opportunistic value-add real estate investments, has brought its private placement offering, TCF18 Norwood, MA Biotech Facility LLC, full cycle on behalf of its investors.
According to a filing with the Securities and Exchange Commission, the 506(b) Regulation D offering was registered in July 2019 with a total offering amount of nearly $3 million.
The company said that the investment generated total returns of approximately 143 percent of originally invested equity and a net investor annual internal rate of returns of approximately 38 percent annualized, three times higher than its original base-case projected rate of return.
TCF18 Norwood, MA Biotech Facility LLC invested in an office building with research and development space that was redeveloped and net-leased on a 15-year term to Moderna, a public biotech company that is working to produce a vaccine for the COVID-19 virus.
“Moderna’s commitment to the building through tenant improvements, and the fact that Moderna is a frontrunner in the race for a COVID-19 vaccine as the first company in the United States to conduct a Phase 3 clinical trial of a vaccine, brought a significant amount of value to the property and our investment,” said Joshua Ungerecht, a managing partner of Telos and ExchangeRight.
Telos Capital targets discounted, value-add, or opportunistic private real estate investments across all asset classes and sectors. Telos is affiliated with ExchangeRight Real Estate, a sponsor of 1031 Delaware statutory trusts, and together, the companies have total assets under management of approximately $2.8 billion.