GAINESVILLE
EXECUTIVE SUMMARY
Tailwind Group (“Tailwind” or “Manager”) is excited to present The Quarters at Gainesville (“Property” or “Asset”), a 252 unit / 924 bed, 1996 vintage student housing community located near The University of Florida in Gainesville (“UF”). Tailwind is currently seeking equity for the opportunity. The investment is offering up to $26,400,000 in value-add focused capital to re-position the asset via a rebrand and strategic capital improvements.
Tailwind took over ownership and management on January 16th, 2025, acquiring the property at an attractive 47% discount to replacement cost. From 2022-2023, the previous ownership completed 96 unit upgrades (luxury furniture package, quartz countertops, upgrade lighting/ceiling fixtures, and smart 55” TV), fresh flooring in bedrooms, and refreshed clubhouse, further enhancing our acquisition price of $40,400,000 ($43,725/bed).
Tailwind anticipates beginning with a strategic renovation plan Spring of 2025. The plan totals $14,225,000 and will span 20 months. This plan includes bed-bath parity conversions, renovating all units to mirror current ownership’s upgrades, smart technology upgrades, unit access controls, and upgrades to the fitness center and pool area. Tailwind anticipates that these significant capital improvements will lead to substantial rent increases upon completion. Additionally, we will implement our flagship management standards and practices, further adding to the improved value of the asset.
INVESTMENT OFFERING
INVESTMENT OFFERINGS CAPITAL STACK
Total Class B Equity
Levered IRR Target
Equity Multiple
Initial Pay Supplemental Return Profit Participation Priority Return
Total Class A Equity
Levered IRR Targert
Equity Multiple
Initial Pay Supplemental Return
Participation
Return Total Manager Equity
Return
Return
OWNERSHIP GROUP
KYLE SMITH
Founding Principal ksmith@thetailwindgroup.com
MICHAEL SATHER Principal & Chief Investment Officer msather@thetailwindgroup.com
LANDON SMITH Founding Principal lsmith@thetailwindgroup.com
SENIOR LEADERSHIP
BRANDON SMITH
President & Chief Executive Officer bsmith@thetailwindgroup.com
CASEY PETERSEN Chief Operating Officer cpetersen@thetailwindgroup.com
INVESTOR RELATIONS
JACOB
Chief Financial Officer jouradnik@thetailwindgroup.com
KRYSTAL PIERCE VP, Investor Relations & General Counsel kpierce@thetailwindgroup.com
Investor Communications Specialist btheil@thetailwindgroup.com BRYCE ANDREWS Investor Relations Associate bandrews@thetailwindgroup.com
ALYSSA KOSTA Investor Relations Administrator akosta@thetailwindgroup.com
THE VERTICAL INTEGRATION ADVANTAGE
DEAL ORIGINATION
Extensive industry network that understands our investment profile and provides access to multiple off-market opportunities and capital partners.
INVESTOR ALIGNMENT
Tailwind Group principals and senior leadership invest significant personal capital into each transaction, aligning interests with partners and investors.
TRACK RECORD
Tailwind Group has a proven track record of executing successful projects ranging from ground up development to value-add opportunities that has provided strong returns through cash flow and long-term appreciation.
EXTENSIVE EXPERIENCE
Tailwind Group’s team includes real estate management, development, finance, and investment professionals with decades of combined transaction experience.
PROPERTY MANAGEMENT & ENHANCEMENT
Tailwind Group manages every property it owns to quickly respond to market uncertainty or allocate internal resources across all markets.
ACTIVE ASSET ALIGNMENT
Strong team of corporate resources that are engaged from acquisition to disposition.
400+ EMPLOYEES
19,500+ BEDS
15 STATES
40 PROPERTIES
$150M+ ANNUAL REVENUE
$1.2B+ IN ASSETS MANAGED
OUR INVESTOR CARE COMMITMENT
INVESTOR PORTAL - JUNIPER SQUARE
• Access investment documentation
• Upcoming investment opportunities
• Review periodic performance updates
CONSISTENT UPDATES
• Quarterly asset and leasing updates during implementation of value-add strategy
• Quarterly market and financial updates
INVESTOR RELATIONS
• Proactive communication
• Service orientated & focused
• We are available anytime on the web, email or phone
ANNUAL TAX RETURNS
• Our goal is to electronically deliver tax reporting by March 15th
• All tax documents remain archived in your investor portal
INVESTOR REQUIREMENTS
• Minimum investment: $100,000
• Must be an accredited investor
LIFE CYCLE TRACK RECORD (Five Most Recent Transactions) 1.5X EQUITY MULTIPLE | AVERAGE INTERNAL RATE
DISTRIBUTIONS
• Distributions available by electronic ACH on a monthly basis
INVESTMENT HIGHLIGHTS
IMMEDIATE CASH-ON-CASH DISTRIBUTIONS
The Quarters Gainsville offers investors an opportunity to invest in the Class B, Common Member Class.
• Class A: 10% Preferred Return, 4% Supplemental Return (NOT AVAILABLE FOR SUBSCRIPTION)
• Class B: 8% Preferred Return, 7% Supplemental Return & 25% Profit Split (8% annualized return is paid on a monthly basis, starting June 1st)
LOCATION, LOCATION, LOCATION
This prime location is one mile from campus, offering residents immediate access to on-campus destinations via the adjacent University of Florida regional transit system bus stop. Just up the street is Butler Plaza, a vibrant 267-acre hub with over 138 retail and dining options, offering unmatched convenience for shopping, dining, and entertainment. The site is also nearby Celebration Point that frequently hosts live music concerts, festivals, and a farmers market.
UNIVERSITY ENROLLMENT GROWTH
UF campus bolsters nearly 55,000 enrolled students with an acceptance rate of 24%. Full time enrollment from out of state students grew 2.1% in 2023. Ben Hill Griffin Stadium, also known as “The Swamp” is home to the renowned D1 Florida Gators football team and is set to undergo a multi-phase renovation expected to cost at least $400,000,000.
ATTAINABLE RENT GROWTH
The Quarters at Gainesville currently offers rates that are $290+ below our expected direct competitor for three-bedroom units and $215+ below for four-bedroom units. With our capital improvement strategy and the addition of bed-bath parity for select units, we aim to adjust our rents to align with the prevailing rates for our competitors.
PROJECT OVERVIEW
INVESTMENT OVERVIEW
VALUATION HIGHLIGHTS
In-Place NOI Going-In Cap Rate
Stabilized NOI
Stable YOC Exit Cap Rate
Exp. (Comp) Stable YOC to Exit Cap Rate
*Year 3 returns example includes a return of capital, the 8% annual distribution, the 7% accrual from years 1-3, and the 25% share of a projected of profit split
SOURCES & USES
Uses
Working & Capital Reserves
TOTAL USES
1 BUSINESS PLAN
YEAR 1 (ACQUISITION)
• Implementation of Tailwind Group management and leasing practices
• Rebranded the property to The Quarters Gainesville in March 2025
• Commenced bed/bath parity conversions and unit upgrades Spring 2025 (360 beds completed by Fall 2025)
YEAR 2 (1ST LEASING CYCLE)
• Mark to market rental rates at par with comparable properties
• Implement income and expense improvements:
• Implement ancillary income opportunities
• Benchmark general, administrative, marketing, and turnover expenses to portfolio
YEAR 3 & THEREAFTER (STABILIZATION)
• Target net operating income (“NOI”) of $4.6M, or 7.4% yield on cost (“YOC”)
• 1.10% bps risk premium over mid to high 6.25% exit cap rate
• Position the asset for permanent financing, either for partial or full recapitalization of the existing equity stack, or for disposition
UNIT MIX COMPOSITION, RENT, & OCCUPANCY DETAIL
The Quarters at Gainesville is made up of 3-bedroom and 4-bedroom apartments. At acquisition only 8% of 4-bedrooms currently have bed bath parity, which is 6% of the total unit mix. Over the next three years, Tailwind will increase bed - bath parity through the construction plan, and effectively increase rents. Proven strategy will reposition the asset to be aligned with direct competitors. UNIT MIX COMPOSITION
Concessions/Bed/Mo (%)
Strong market economics support the ability to significantly increase rental rates upon taking over leasing. Tailwind firmly believes the current rate discrepancy allows for steep rent increase.
UNIVERSITY OF FLORIDA
The University of Florida campus encompasses over 2,000 acres. The campus is home to many notable structures, such as Century Tower, a 157-foot-tall carillon tower in the center of the historic district. Other notable facilities include the Health Science Center, Steve Spurrier-Florida Field at Ben Hill Griffin Stadium, Smathers Library, Phillips Center for the Performing Arts, Harn Museum, University Auditorium, O’Connell Center, and The Hub.
The Reitz is the campus union at the University of Florida. The 138,000 square feet of new space includes support space for student organizations, new lounges, study spaces, a game room, an arts and crafts center and dance studios. A number of the University of Florida’s buildings are historically significant. The University of Florida Campus Historic District comprises 19 buildings and encompasses approximately 650 acres. Two buildings outside the historic district, the old WRUF radio station (now the university police station) and Norman Hall (formerly the P.K. Yonge Laboratory School) are also listed on the historic register.
55,000+ STUDENTS
UF ATHLETICS
The Florida Gators have won thirty-five national team championships, thirty of which are NCAA championships. Florida Gators athletes have also won 267 NCAA championships in individual sports events. Florida is one of only two Division I FBS universities to win multiple national championships in each of the two most popular NCAA sports: football (1996, 2006, 2008) and men’s basketball (2006, 2007, 2025).
DISCLOSURES
NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY SECURITIES
PLEASE CAREFULLY READ THE FOLLOWING TERMS BEFORE REVIEWING THIS INVESTMENT SUMMARY (“Summary”). All persons reviewing the Summary expressly agree to the foregoing disclaimer as a pre-condition to reviewing this Summary for any purpose whatsoever.
The information on this Summary is for informational purposes only and is not an offering of or a solicitation to purchase securities or otherwise make an investment. Securities may only be offered or sold pursuant to registration of securities or an exemption therefrom using offering documents and sales of securities will be limited strictly to those persons who are qualified as “accredited investors” as defined in Regulation D promulgated under the United States Securities Act of 1933. Material information is detailed in the offering documents, including, but not limited to, risk factors.
Everything communicated by Tailwind Group, Inc. and its affiliates and agents, regardless of whether it is written, spoken, recorded audio or video, is intended for education and informational purposes only. All comments are solely the opinion of the presenter. Regardless of whether spoken or written, nothing shall be considered as giving investment advice, an offer, or solicitation, to buy and/or sell any type of investments products or securities. Prior to making any investment you should consult with a professional financial advisor, legal and tax advisor to assist in due diligence as may be appropriate and determining the appropriateness of the risk associated with a particular investment.
All information contained herein is provided “as is,” and Tailwind Group, Inc. and its affiliates each expressly disclaim making any express or implied warranties with respect to the fitness of the information contained herein for any particular usage, its merchantability or its application or purpose. In no event shall Tailwind Group, Inc. or its affiliates be responsible or liable for the correctness of any such material or for any damage or lost opportunities resulting from use of this data. The information in this Summary has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the presentation and the information contained herein and no reliance should be placed on it. Information in this Summary (including market data and statistical information) has been obtained from various sources (including third party sources) and Tailwind Group, Inc. and its affiliates do not guarantee the accuracy or completeness of such information. All projections, valuations and statistical analyses are provided for information purposes only. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and to the extent they are based on historical information, any they should not be relied upon as an accurate prediction of future performance.
No action has been or will be taken to permit an offering of securities in any state where action would be required for that purpose. In considering any prior performance information presented on this Summary, bear in mind that past performance does not indicate future results, and that there can be no assurance that comparable results will be achieved by Tailwind Group, Inc. or its affiliates. Moreover, any such past performance information is subject to, and should be reviewed in light of the assumptions accompanying that information. The use of terms such as higher, above average, safe or successful, express the opinion of Tailwind Group, Inc. and are not a promise or guarantee for any possible investment performance or safety of principal.
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