NEW YORK, March 31, 2021 / PRNewswire / – TF Management Group, LLC announced today that it will encourage deeper investments in hotel and apartment conversions as part of its fund allocation strategy, which began in 2020 and will continue in 2021.
“These conversion properties offer investors excellent profitability,” stated the CEO of TF Management Group LLC Mike Zlotnik“But they’re also the kind of investment that serves communities hard hit by the pandemic.”
Bigelow Residences, Ogden, UT
The demand for hotels almost collapsed during the pandemic. Oxford Economics cited an estimate $ 519 billion in lost revenue for the entire travel industry.
The demand for affordable housing is now higher than ever before. Since vacant hotels are on valuable property, more and more municipalities are promoting renovation projects.
“The ubiquitous need for affordable housing was particularly exacerbated by the pandemic, as many people are suffering from their livelihoods.” Yuriy Novodvorskiy, COO of TF Management Group LLC added. “These conversions are not only a great investment opportunity, but they also provide critical value to the communities – a long-term benefit that many of our investors interest and support.”
Investors are ready to take advantage of these quick, relatively inexpensive conversions, which are typically much cheaper than new build projects. One of the successful renovation investments of the TF Management Group is, for example, the Ben Lomond Suites Hotel in Ogden, Utah The building has been converted into a mixed-use property now called Bigelow Hotel and Residences. The purchase and renovation including closing costs were $ 13.52MM. The building was sold for in less than 21 months $ 20.55MM, which equates to an internal rate of return (IRR) on an investment of 73.35% and a 2.2 times equity multiple. This is a “personal investment” by most standards.
The pandemic merely accelerated the trend to target weak or isolated hotels for renovation projects.
TF Management Group LLC has launched Tempo Growth Fund LLC, a specialty growth fund, to benefit from this and other real estate strategies with added value. This fund started raising capital in 2020 and is planning to close Jan 2022, Investment in multiple hotel / office to multi-family conversion options. Here are some examples of such projects:
- Two hotels for long-term stays, Residence Inn, conversion to living space in Winston-Salem, NC and South Bend, IN
- Two Ramada Inn remodeling in Mesa, AZ and New Braunfels, TX
- Best Western Hotel renovation in Longmont, CO
- Conversion of an office building into multi-family houses in the city center St. Louis, across from the Cardinals Ballpark
TF Management Group LLC is a private real estate mutual fund management company that implements a variety of strategies, specializing in long-term “value-add” stock deals with strong sponsors, good cash flow, and forced appreciation with reasonable debt -adjusted to maximize risk -return.
To learn more, please visit www.tempofunding.com or call (800) 289-6755.
Contact:
Mike Zlotnik
800-289-6755
[email protected]
SOURCE TF Management Group LLC
