Township Capital’s TPE Division Investment Criteria

Matthew Gorelik

Matthew Josef Gorelik is a private equity investor who has achieved success in multimillion-dollar hospitality and student housing real estate ventures. Matthew Gorelik applies his expertise as the chairman, founder, and CEO of Township Capital, a Los Angeles-based private equity real estate fund. The firm collaborates with owners, developers, and operators on a global scale to identify new developments and other value-added real estate investment opportunities in America.

Township’s private equity division, known as TPE, employs a set of criteria to guide the investment selection process. These include:

– Real estate deal value of $400,000 to $10 million with a duration of three to five years, and a maximum platform commitment of $20 million.
– Geographic location of metropolitan areas across the United States.
– A wide range of asset classes, which include multifamily, office, retail, industrial, hospitality, and student or senior housing.
– A project investment split of 90 percent limited partners and 10 percent general partners.
– Target returns of 5 percent cash on existing assets and 17 percent on individual projects.

For further detail on Township’s investment criteria, visit http://www.townshipinc.com/private-equity.

Hotel Industry Poised for Growth in 2017

 

Hotel Industry
Image: zacks.com

Experienced real estate investment professional Matthew Josef Gorelik functions as the founder, CEO, and chairman of Los Angeles-based firm Township Capital, LLC. Recently, Matthew J. Gorelik and the team at Township Capital, LLC, secured a co-investment deal for a portfolio of four limited-service hotel properties with a tenured developer in the hospitality industry.

Recent research indicates that the United States hotel sector is expected to see modest, but reliable, gains through the end of 2017, in spite of potential turbulence in the political and economic sectors. Listed below are three factors that are suspected to influence the positive growth of the American hotel industry this year.

1. Greater demand for rooms than supply. Occupancy growth in the US lodging sector is expected to incur a demand rate of 2.1 percent, compared to a 2 percent rate of supply. As the economy continues along its path to recovery, travelers are growing in number, creating a stronger desire for lodgings with modern amenities.

2. US hoteliers investing abroad. Many American real estate investors are looking at properties in China, India, Brazil, Russia, Africa, and the Middle East. These international markets have potential to turn significant profits for US companies as these foreign locales expand their potential as new hubs for tourism and business.

3. Brand loyalty initiatives. Many companies are looking to connect with guests on a more personal level in order to earn brand loyalty and improve rates of customer retention. By relying more heavily on social media marketing and the development of apps that allow for easy booking and mobile check-in, professionals within the hotel industry are set to improve the overall customer experience, resulting in higher rates of guest return.

Township Capital’s Successful $360 Million Portfolio Closing

Township Capital, LLC
Image: townshipinc.com

Matthew Josef Gorelik guides the real estate private equity fund Township Capital, LLC, as CEO and founder. Among the transactions Matthew J. Gorelik has recently overseen is the closing of a $360 million portfolio in tandem with a leading student housing developer.

The transaction involved a recapitalization spanning a half-dozen purpose-built rental student housing communities associated with large universities across the United States. With some projects completed and stabilized and others in the construction phase, the opportunistic investment is described as presenting significant upside potential.

The timing of the transaction was vital in avoiding predevelopment and entitlement risks, and in defining the pro forma development budget in an accurate and predictable way. The structuring is also unique in offering equity partners predictable cash flow from the start. This helps ensure that the overall equity joint venture provides investors with optimal risk-adjusted metrics and superior returns on investment.