Thompson Thrift Sells Last Watermark Fund Asset, Achieves 34.5% IRR, 2.16 Equity Multiple for Investors
National real estate company Thompson Thrift announced it has sold the last remaining property in the Watermark 3G Multifamily Development Fund II, LP, achieving a 34.5% internal rate of return and a 2.16 equity multiple.
“We’re incredibly proud of the outstanding performance of our 2020 [Watermark] fund and grateful for the dedicated team and partnerships that made this success possible,” said Paul Thrift, chief executive officer of Thompson Thrift. “These results highlight the strength of our data-driven market selection, disciplined site criteria, and unwavering commitment to excellence.”
The Watermark 3G offering met its $105 million funding goal in January 2020 and deployed capital to develop six Class A multifamily development projects in Alabama, Arizona, Colorado, Michigan, and Missouri. The first three assets were sold in the latter half of 2022, and one traded in 2023. The remaining two communities were sold in July and October of this year.
“Being good stewards of our investment partners’ investment is our top priority, and we are pleased to have delivered excellent returns for our partners,” said Carrie Thrift LaFay, vice president of equity capital markets at Thompson Thrift. “Our 2020 [Watermark] fund enabled us to launch excellent projects in areas where we identified strong opportunities, leading to a highly successful conclusion.”
Since adding a multifamily business unit in 2008, Thompson Thrift has raised and deployed more than $1.5 billion in equity capital and has developed more than 85 communities in suburban locations across the United States. Their portfolio offers three primary standard designs, providing construction efficiency, cost predictability, and an end-product that, according to the company, “has been tried and tested – winning the approval of residents through many builds and leases.”
The company is currently raising equity for its seventh multi-project development partnership, Thompson Thrift 2025 Multifamily Development, LP. The offering seeks to raise $230 million in total capital commitments from accredited investment partners who will participate in the development of a portfolio of ground-up, multifamily communities located in dynamic growth markets across the country.
The limited partnership is being offered exclusively to accredited investors pursuant to Regulation D, Rule 506(c) under the Securities Act of 1933, as amended. As general solicitation is permitted under Rule 506(c) offerings, purchasers must meet verification requirements for validation of their accredited investor status.
Last month, Thompson Thrift said it would develop The Logan, a 264-unit Class A multifamily community in Nampa, approximately 20 minutes southwest of Boise, Idaho. The company expects to complete construction in winter 2026. With the development of The Logan, Thompson Thrift enters its 23rd state. Thompson Thrift 2024 Multifamily Development, LP will provide equity for The Logan.
In September, the firm announced the beginning of construction on its multifamily community project within Colorado Springs’ Polaris Pointe development. The property was the 10th and final project funded with equity from the Thompson Thrift 2023 Multifamily Development, LP, a private placement fund that raised more than $390 million from accredited investors in 2023.
Thompson Thrift is a full-service real estate development company focused on multifamily, ground-up commercial, and mixed-use development across the Midwest, Southeast, and Southwest. The company continues to expand its 22-state footprint with eight new residential developments targeted for 2024, including new markets in Georgia, Idaho, and Utah. For nearly 40 years, Thompson Thrift has invested more than $6 billion into local communities and has become known as a trusted partner committed to developing high-quality, attractive multifamily, commercial, and industrial projects.
Click here to visit The DI Wire directory page.
