Transwestern Investment Group has closed its TSP Value and Income Fund I and will start another early next year. The fund, with commitments of $160 million, has acquired more than 3.6 million square feet of industrial assets and 900,000 square feet of office assets in eight states.
"Our guiding philosophy is to provide investors the least risky path to achieve value-add returns. With approximately 85 percent of the capital invested to date, we are generating current cash-on-cash returns in excess of 9 percent with an expected gross internal rate of return of 16.5 percent." Scott Fitzgerald, fund manager and executive managing director of TIG, said in an announcement.
Transwestern Investment Group, an arm the Transwestern commercial real estate firm, has $3.1 billion of assets under management. TSP Value and Income Fund I is a diversified, value-add fund that emphasizes income, disciplined risk management and proactive portfolio management. Based on market opportunities, the fund is principally invested in industrial and office assets in major and secondary markets with strong economic drivers, supply constraints and liquidity. The fund has acquired more than 3.6 million square feet of industrial assets in Chicago; Indianapolis; Columbus, Ohio; Louisville, Kentucky; and Austin, Texas; as well as over 900,000 square feet of office assets in San Jose, California; Scottsdale, Arizona; and Atlanta.
"We are pleased to close the TSP Value and Income Fund I with such resounding success," said Laurie Dotter, president of TIG. "We appreciate the trust of our institutional investors and their confidence in the combination of our independent investment management team and our nationwide operating platform to generate attractive risk-adjusted returns."
TIG has approximately $3.1 billion of assets under management and provides investors with the benefits of investing with a true real estate operator versus a traditional capital allocator. Following on the success of Fund I, TIG plans to launch TSP Value and Income Fund II in early 2017.
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