TBM Partners | NC Real Estate and Development

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Investment / Development Philosophy

TBM Partners is the for-profit development arm of Robuck Homes, Inc., a third generation, family-owned portfolio of companies founded in 1926. This privately owned group has successfully navigated many booms and downturns over the decades by following a resolute investment philosophy.

ACQUISITION of real estate assets by identifying land and development opportunities that can be converted into highest and best uses.

  • Regional expertise and history has enabled TBM to identify and acquire opportunities that are accretive to capital return objectives
  • A focus on comprehensive due diligence and analysis, increasing assurance of “buying it right”
  • Strong financial relationships yielding favorable financing terms resulting in a market competitive advantage

VALUE CREATION through entitlement, design and development

  • Proven front end market analysis
  • Leveraging best in class consultants and holding them accountable
  • Disciplined cost control
  • Emphasis on managing risk throughout the life cycle of a project

DISPOSITION

  • Selling to known buyers; when selling to proven/repeat buyers, typical risk of development and disposition is significantly reduced
  • Emphasis on comprehensive contracts, and cost management best practices to maximize investor profit

Risk Management

A guiding principle of TBM Partners is operating with an obsessive focus on identifying and mitigating risks associated with every development asset.

ECONOMIC DOWNTURN RISK
While there is no prevention of an economic downturn, TBM minimizes economic downturn risk by focusing on highly desirable locations, conservative projected lot sale absorptions, and diversification of product types.

PRICING RISK
To mitigate pricing risk, TBM will leverage third party market research to reduce bias and ensure product and pricing are achievable. In addition, deals will be underwritten so that home prices can easily accommodate the targeted preferred return.

COST OVERRUN RISK
Through strict budgeting and extensive experience across the state, costs will be managed based on industry best practices. Overall budgets and business plans will be continually refined until final construction documents are finalized. Budgets will be updated on a periodic basis and financial reporting will be provided throughout the life of the project.

BUILDER/DISPOSITION RISK
If accretive to the deal, Robuck Homes will be a primary builder/buyer of the asset. This will reduce investment risk by significantly reducing the risk of builder default. Disposition of non-residential assets will be minimized by identifying potential buyers early in the development process.

Investments

ASSET LOCATIONS

  • North Carolina; primarily in the Central and Coastal areas of the state

ASSET CLASSES

  • Residential Single Family Detached and Single Family Attached
  • Mixed Use with Residential and/or Multi-Family, and Commercial Retail components
  • Infill

ASSET TYPES

  • Fee simple ownership of real estate including unimproved or partially improved land
  • Bank Real Estate Owned (REO)
  • Mezzanine loans, with low loan to value ratio
  • Entitlement and sell opportunities

INVESTMENT STRUCTURE

  • Equity or equity/debt mix
  • Investor return of capital within 18 to 48 months
  • Market rate internal rate of return or better
  • Preferred Investor return combined with share of development profit