Investment/Development Philosophy
TBM Partners began as the 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, downturns and periods of economic uncertainty over the decades by following a resolute investment philosophy.
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 and emphasis on managing risk throughout the life cycle of a project.
DISPOSITION
Selling to known buyers. When selling to Robuck Homes, typical risk of development and disposition is significantly reduced.
Emphasis on comprehensive contracts, and cost management best practices to maximize 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 will minimize economic downturn risk by focusing on highly desirable locations, conservative projected lot sale absorptions, and diversifying 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. Target acquisitions will offer home product from the mid-low to mid-high end of the market.
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 Raleigh, Durham, Chapel Hill and Coastal Wilmington areas.
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.
Target Internal Rate of Return of 20% or better