Taylor Fitzpatrick Capital, LLC (“TFC”) is a private equity real estate investment firm designed to raise, deploy, and manage equity capital in opportunistic and value-added real-estate assets west of the Mississippi. It looks like they closed shop and are no longer available in 2020 after losing investors a lot of money in a RealtyShares deal.
Where TFC acts as a sponsor of private equity real estate partnerships and Funds, a wholly owned affiliate management company, RJW Management, LLC (“RJW”) provides property and/or construction management services to most all TFC sponsored assets.
Their success is tied to specializing in three segments of the multi-family residential investment arena: student housing in select supply-constrained markets, value-add conventional multi-family apartments in supply-constrained sub-markets in the path of growth or gentrification areas, and senior housing/healthcare in partnership with a world-class experienced operating partner (Independent Living, Assisted Living & Memory Care).
To date, Taylor Fitzpatrick Capital has acquired five student housing properties and developed another two properties for a total of 999 units across $64.4 million of gross invested capital.
Taylor Fitzpatrick Capital is led by Ted Taylor, Jake Taylor, Randy Fitzpatrick, and Michael Jensen.
Taylor Fitzpatrick Capital Is A Bad Real Estate Investor
I invested in a student housing project with Taylor Fitzpatrick Capital in College Town, Arizona via the RealtyShares DME Fund.
Taylor Fitzpatrick Capital advertised a 16.5% IRR objective and successfully raised $2,900,000 to rehab the property.
Here’s what they said they’d do with the money:
College Town Tucson (“the Property”) is an 88-unit, 247 bed, student-housing apartment complex in Tucson, Arizona, located 7 blocks from the University of Arizona campus. The Property is comprised of four two-story buildings with community amenities including a clubhouse, fitness center, swimming pool, picnic area, and landscaped common areas throughout the complex. The Property was built in 1972 and partially renovated in 2006 and 2013.
The Sponsor intends to reposition the Property with a $1.73 million (1) renovation program that is to make improvements to the common areas and amenities, renovate and update 53 of the 88 units, update HVAC and mechanical infrastructure, and rebrand the Property. The Sponsor anticipates the renovation program to be largely completed within 15 months of closing.
As part of the renovation plan, the Sponsor intends to upgrade floors, kitchens, and bathrooms as well as outfit each unit with modern furniture, 55” smart TVs, in-unit and property-wide wifi, wiring to high-speed Gigabit Ethernet internet, robust DirecTV packageincluding NFL Sunday Ticket, and in-unit washer/dryers. Property-wide renovations are to include improvements to exterior paint, landscaping,
Instead of being doing what they said they would do, Taylor failed and is going to lose me and the other investors totally $2,900,000 most, if not all of their money.
This is the 4Q2018 update from the DME Fund.
Student Housing at College Town is currently performing below plan and is on our watchlist. After an underwhelming response to a capital call to finance operations and capital improvements, the Sponsor proposed to exit the investment in order to avoid default on the senior loan.
We have requested a BOV from the Sponsor in order to better assess options available for RealtyShares investors. Based on preliminary discussions with market participants, the Sponsor believes that we will incur some loss on this investment.
Taylor Fitzpatrick LLC Doesn’t Know What They Are Doing
I feel that Taylor Fitzpatrick LLC misled investors and took advantage of our capital. Some might say that is the cost investing in risk assets. Fine. But to fail so miserably, so quickly makes me want to WARN other investors NOT to invest in or with Taylor Fitzpatrick LLC.
The sale of Student Housing at College Town closed on May 10th for $8,000,000. The sponsor is still waiting to receive and pay the final utility bills and receive the final property insurance refund which is anticipated to happen by 06/30/19, then the sponsor will send to RealtyShares the final payout proceeds calculation with these remaining proceeds from the sale being distributed to RealtyShares by 08/10/19. Once this is completed, please allow 5-7 business days for ACH disbursements to be processed. We will post an update with the details of the exit proceeds once this is finalized.
Unfortunately, RealtyShares still anticipates an 80%-90% loss on your investment.