TRISTAR COMMUNITY IMPACT FUND, L.P.

A Socially Responsible Housing Investment

Our Focus

According to the U.S. Census, THERE ARE 40.2 MILLION RENTERS IN THE UNITED STATES OF WHICH 11.2 MILLION ARE LIVING AT OR BELOW THE POVERTY LINE.

The majority of renters living at or below the poverty live in properties that were built:

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Our business model focuses on older, workforce apartment communities that house families living near the poverty line. Many of the workforce housing communities built before 1980 can be purchased, renovated, and then rented to families at affordable rents.  Our goal is to foster stabilized communities by offering affordable rents combined with thoughtful community programs focused on education, wellness (medical navigation) and food security (gardening).  Over time, our programs have a stabilizing influence on our residents and the community-at-large, most notably the local public elementary, middle and high school.  A stabilized community reduces student transciency, a key factor in successful learning and education.  Schools with lower transciency rates have a better learning environment, higher test scores and school success.
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A socially responsible landlord can build community by delivering social services to its residents and not escalating rents. Tri-Star has proven this model and now seeks to expand upon its success.

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Fund Overview

The Fund’s objective is to acquire partial or total ownership of apartment communities located in areas suffering from urban blight and situated near schools which are performing in the bottom third of their respective state as ranked by test scores. Apartment communities which satisfy these criteria are referred to in as “Target Communities.” The Fund will initially invest in Target Communities located in the southeastern United States generally and in the Atlanta metropolitan statistical area in particular.
Tri-Star’s mission is to positively impact communities as socially responsible landlords by delivering to it’s residents affordable rents combined with important social services. TriStar will follow a structured program to purchase, renovate and manage the community with a focus on stability.  Rents will be offered at affordable levels and adjusted for inflation and increased expenses.  TriStar will partner with Star-C and other community organizations to provide thoughtful, yet important community programs focused on education, wellness (medical navigation) and food security (gardening).

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Experience

The principals of TriStar have a proven successful model for building stable communities and impacting local elementary schools since 1996.  Below are case studies of TriStar’s work at the communities of Madison Hills (Marietta, Georgia) and Willow Branch  (Clarkston, Georgia).

Willow Branch Madison Hills
Willow Branch

Willow Branch

  • 186-Units – Clarkston, Georgia
  • Average HH Income $16,050
  • Built 1972 and purchased 1996
  • Tri-Star implemented on-site Education, Wellness and Gardening Programs
    • After school education program is at capacity with 65 children and a wait-list of 30
    • The Indian Creek Elementary School CRCT scores are improving each year
    • The wellness program is a partnership with Emory University to assist residents in obtaining state or federal healthcare
  • The community gardens provide plots for residents to grow their own food
  • ***$641,000 in measurable community impact in 2014
  • ***Tenancy is at 96% capacity with future resident wait-list
Madison Hills

Madison Hills

  • 446-Units – Marietta, Georgia
  • Built 1968 and purchased 2006
  • On-Site Education Programs grew to
    90+ children/teenagers
  • Elementary school went from Federal Watch
    list of Failing Schools to Title I School of
    Distinction in 2012
  • Acquired with 200 down units and went to 95% occupancy in 18 months after renovations, crime reduction, and after school programs.

The Offering

TRISTAR COMMUNITY IMPACT FUND, L.P.
A SOCIALLY RESPONSIBLE HOUSING INVESTMENT

The fund is a debt offering seeking to raise $10 Million  from accredited investors to buy workforce housing apartment communities suffering from urban blight and situated near schools which are performing at the bottom third of the state performance, according to ranking by test scores.

RETURNS FOR OUR INVESTORS

 

The Fund will purchase, renovate and repair the Target Communities it acquires, and will operate and manage them in a manner that achieves sufficient profitability to fund their operating expenses and the Fund’s obligations under the Notes, while at the same time delivering on the Fund’s goal of improving and increasing the value of the surrounding community.  The Fund expects its activities to greatly enhance the social development of the area surrounding the Target Communities, and to use the proceeds therefrom to, among other things, repay principal and interest on the Notes.  Thus, in addition to the monetary return to investors in the Notes, the social impact of the fund’s investment in each Target Community will be measured annually to produce a measure of economic impact in the immediate community where the Target Community is located.

 

The fund will donate 2% of the loan principal per year, to fund the community programs provided by Star-C or other 501(c) organizations to support their services.  It is anticipated that Star-C and other non-profits will also seek grants and community volunteer involvement to support their programs in the Target Communities.

Offering Size
Minimum Subscription
Term of Note
Financial Return

10 Million
$25,000
10 year
Year 1
Year 2 & 3
Year 4 & 5
Year 6 & 7
Year 8 & 9
Year 10

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——————————
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1.0%
2.0%
2.5%
3.0%
4.0%
5.0%

 

SOCIAL RETURN:

In addition to an interest payment, Investors shall receive a quarterly report which measures the social impact of our mission on the communities we invest in. We anticipate an estimated a “Community Return” to stabilize at an 8-12% of the loan principal.

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About Tristar

The TriStar Team came together in the Fall of 2013 with aspirations of applying our diverse industry experience to purchase and operate innovative investment funds in a collaborative environment.  Recent publications by community thought-leaders indicate an affordable housing crisis; however, our experience working in the for-profit affordable housing market leads us to a different conclusion. We have identified an abundance of affordable housing in the older workforce housing market which through thoughtful community programs, collaboration with community leaders and an affordable rental model, can be a catalyst for community stabilization.  

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THE KEY COMPONENTS OF OUR MISSION ARE TRUST, TRANSPARENCY, AND TIMING.

TRUST.
We build trust with our clients because we can demonstrate market experience, deliver consistent results, and maintain integrity, making good on promises. Fifty-Three years of combined experience, with over $1 billion in transactions, asset management, and fund experience lend confidence to our investors and community collaborators.
TRANSPARENCY.
Our effective and consistent communication in a collaborative environment delivers current and transparent information. We grasp the realities of the market, study the directions to be taken, and proactively consult with stakeholders, and measure our performance.
TIMING.
We correlate the life of every investment with the dynamics of a market cycle with a focus on delivering. Our obligation is to purchase communities which are timed for positive community impact.

 

The key to our ongoing success is an established and innovative platform. An alliance with sister company TI Asset Management gives us the additional structure to operate our workforce housing communities in order to maximize impact returns for our investors and the community. The full cycle of an investment is nurtured by a team that handles due diligence, asset management, property management, financial/tax reporting, community outreach and associated services. Our platform gives assures investors that our communities are operated efficiently to produce results.

Visit Tristar Real Estate Investment’s website at www.tristarinvest.com

About Star C

Tristar’s vision as a socially responsible landlord is to scale its community impact success at the Madison Hills and Willow Branch apartment communities.  The principals at TriStar have founded Star-C (501c3) to administer and grow the community programs at future affordable apartment communities, whether owned by TriStar or other landlords seeking solutions for urban blight.  Star-C’s mission is to serve apartment communities located in under-performing elementary school districts.

There is great need for Star C’s EDUCATIONAL, MEDICAL, and COMMUNITY BUILDING INITIATIVES. It’s innovative model has a measured track record measuring the impact on the lives of its residents and the success of the local elementary school. Through free after-school, teen, senior, gardening and wellness programs located on-site in Target Communities, STAR C will help economically disadvantaged residents combat poverty, food insecurity, inadequate education and create environmental sustainability, all of which are severe problems contributing to community decline.  The social impact of these low-income families is severe on the local public school system and community at large. Heightened criminal activity, demands placed on government services and an inadequate local healthcare system have lead to the continued decline of the community and surrounding neighborhoods.

The real estate investors and committed board members who launched Star C are entrusted to acquire additional affordable workforce communities where public services are provided by well-intended but overwhelmed agencies. The goal is to have several more collaborative communities in Metro-Atlanta served by Star-C with a franchisable business footprint for expansion beyond.

Visit Star C’s website at www.star-c.org

How to Invest

Tri-Star has launched a community impact fund to make further socially responsible housing investments by acquiring apartment complexes in failing elementary school districts.
The Offering described above is available to accredited investors through a private placement memorandum (PPM) with a minimum investment of $25,000. If you are interested in learning more about the Tri-Star Community Impact Fund, please insert your name and email address below and information will be forwarded to you shortly.