TAILWIND INCOME FUND I
SUMMARY OF OPPORTUNITY FOR THE INVESTOR
The Tailwind Group is excited to introduce the Tailwind Income Fund I. This fund will focus on value-add student housing opportunities, which remain the cornerstone of the Tailwind portfolio. Tailwind Income Fund I offers accredited investors a unique opportunity to diversify their portfolios, with the potential to achieve an annual return of 10%. By investing in multiple real estate assets, at a level which is preferred in structure, this fund provides built-in diversification, unlike investing in a single real estate asset. We are confident that the Tailwind Income Fund I will play a key role in driving the continued growth and success of our portfolio, thanks to our high conviction and thematic investment strategy in the value-add student housing sector.
$25,000,000 to $35,000,000
Class A: up to $15,000,000 (minimum $2,000,000 investment)
Class B: up to $20,000,000 (minimum $100,000 investment)
Class A receives 85% of fund excess profit 0.25% Investors may request partial return of capital annually (subject to terms and conditions)
FUND HIGHLIGHTS
INVESTMENT STRATEGY
• Generate strong cash on cash returns through Preferred Equity & mezzanine debt investments
• Maximize total income over a rolling 3 – 5 year time horizon
• Diversification in Assets: 4 - 7 projects
• Liquidity Flexibility
WHY PREFERRED EQUITY & MEZZANINE DEBT
• Protection Priority over common equity in the capital structure
• Demand Tighter bank lending standards; lower initial loan to value
• Project Type Value-Add Projects provide ability to refinance and repay investment
PURPOSE OF FUND
• Refinancing Provide capital to projects refinancing debt
• Property Improvement Provide capital to assets needing capital improvement
• Acquisition Capital Provide capital to acquire new Tailwind assets
BLENDED TAX TREATMENT
• Tax impact varies depending upon underlying investments
• If investment as Preferred, taxed as capital gains
• If investment as unsecured notes, taxed as ordinary income (interest income)
INVESTMENT CRITERIA
• Tailwind Sponsored Projects
• Value-Add Student Housing
• Investment Size: $5M - $10M
• Income Fund Distribution: 10%
• Term: 3 - 5 years
CAPITAL STACK
Tailwind Income Fund Preferred Equity or Mezzanine Debt
IDENTIFIED PIPELINE & STRUCTURE
TAILWIND INCOME FUND I
FUND STRUCTURE & IDENTIFIED INVESTMENT PIPELINE
Investment Type
Investment Duration
Rate Paid to Fund
Investment Size
Real Estate Strategy
Real Estate Type
Number of Investments
Priority
Preferred Equity or Unsecured Debt
3 - 5 years
10% - 14% annual rate of return on investment
$5,000,000 to $10,000,000 per investment
Refinancing / Acquisition
Value-add Student Housing
4-7 Investments
Investments are priority in nature-above comon equity
INVESTMENT
Altitude COLUMBUS - Ohio State University
VALUE-ADD UPSIDE
After completion of the $8,000,000 renovation, Commons on Kinnear will have freshly renovated units that will align them competitively with the market, creating a luxurious space for prospective tenants.
Prior management has underperformed for several years now. Tailwind looks to implement our high-end management strategy to rejuvenate the property, rebuilding a community that’s been in desperate need of reparations. Upon acquisition, Tailwind will rebrand the property to Altitude Columbus
Ohio State University (OSU) is a world-renowned public research university located in Columbus, Ohio. Founded in 1870, it is one of the largest universities in the United States, with a diverse student body of over 51,000 students across its undergraduate, graduate, and professional programs. The university is also home to a vibrant athletics program, particularly its powerhouse football team, which has won multiple national championships.
#1 Columbus, Ohio is the fastest growing metropolitan area in the Midwest
#4 Largest four-year college campuses
INVESTMENT
THE QUARTERS AUBURN - Auburn University
VALUE-ADD UPSIDE
Current Property Name
Address
Capital
After completion of the $2,000,000 renovation, The Beacon will have a brand-new fitness center and refreshed amenity spaces providing a luxurious common area for tenants.
Along with renovations, Tailwind will implement an initial mark-to-market rent strategy while leveraging strategic leasing & management practices to achieve significant year over year rent growth. Upon acquisition, Tailwind will rebrand the asset to The Quarters Auburn.
Auburn University, located in Auburn, Alabama, is a prestigious public research university known for its commitment to academic excellence, innovation, and community engagement. Auburn is one of the oldest institutions of higher learning in the state and has grown into a nationally recognized university with over 28,000 students.
#1 University in Alabama (U.S. News & World Report, 2024)
TOP 25 Colleges with the best student life in America
INVESTMENT
THE QUARTERS HUNTSVILLE - Sam Houston State University
VALUE-ADD UPSIDE
After completion of the $3,110,000 renovation, The Connection will have a brand-new fitness center and refreshed amenity spaces providing a luxurious common area for tenants.
Prior management has underperformed for several years now. Tailwind looks to implement our high-end management strategy to rejuvenate the property, rebuilding a community that’s been in desperate need of reparations. Upon acquisition, Tailwind will rebrand the asset to The Quarters Huntsville.
Sam Houston State University (SHSU), located in Huntsville, Texas, is one of the oldest universities in the state, established in 1879. As part of the Texas State University System, it has grown into a prominent institution with over 18,000 students enrolled in a wide variety of academic programs.
18,000+ Students
23% Increase in Freshman Class
2020 NATIONAL CHAMPIONS
SENIOR LEADERSHIP
bsmith@thetailwindgroup.com
TAILWIND GROUP TRACK RECORD
Tailwind Group and its partners have exited on nearly $300M student housing real estate since inception, generating an overall 2.1x equity multiple and an average internal rate of return (IRR) of 34%.
PROPERTY
Quarters Tallahassee
Quarters Ames
The Grand at Rum Creek
Quarters Columbia
The Reserve on Perkins
Quarters Laramie
College Station
The Edge Mankato
Quarters Bloomington
College Town Mankato
College Town Oxford
UNIVERSITY
Florida State University
Iowa State University
University of Alabama
University of Missouri
Oklahoma State University
University of Wyoming
University
$22,206,318
$16,167,367
$15,195,204
$13,123,286
$9,788,887
$8,339,694
$5,058,000
2.1X EQUITY MULTIPLE AVERAGE INTERNAL RATE OF RETURN (IRR) OF 34%
DISCLAIMER
NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY SECURITIES
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