Introducing the Tempus Blog!
Welcome to the Tempus Blog!
This is a space where the professionals at Tempus and others can share their insights on the trends and factors influencing the commercial real estate market. Here we’ll share our thoughts ranging from how emerging trends affect our portfolio and where we think opportunities are likely to arise to major developments within our portfolio and impactful initiatives we’re engaged in with our communities. We have a tremendous network of partners who bring a wealth of perspective and experience to our network, and we hope this will be a forum for engagement among those who are like-minded and have chosen to join our investment platform.
So…what is Tempus? Tempus is a real estate investment firm unlike any other. The Tempus difference goes back to our founding in 2016. Tempus was founded by investors for investors. From it’s inception, Tempus was designed not with the goal of creating a successful investment manager, but with the goal of creating successful investment experiences for investors. The difference is more than just minor semantics, it shapes how we approach each decision in the investment process.
It’s reflected in our manager’s commitment to being the first capital in on every deal, taking at least 10% of each deal, but never taking the majority so that our partners can participate even in the very best deals. We don’t raise investor capital based on promises and then go to find opportunities to deploy that capital…we put our capital on the line for 100% of each deal and then offer our partners the chance to invest alongside us on the same terms as our capital.
It shows in the simple and investor-friendly economic structure we’ve adopted for our deals. Real Estate funds are often laden with a variety of fees or a heavy incentive allocation in favor of the general partner often with seemingly the only regulator being what will investors agree to. Our fee and incentive structure was intentionally designed to be sufficient to engage, incentivize and reward a talented investment team while maximizing the amount of return that remains with the capital that took the investment risk.
Our investor-first commitment shows in the types of deals we do and how we structure each of our investment offerings. Because we are investors first, we typically avoid investments that offer a high potential return but also carry a high possibility of significant or total loss. Instead, we focus on investments that have a high probability of a moderate return with the odds of outperforming vs underperforming skewed to the upside. We also often choose to carry significantly lower leverage than the maximum available in the market, we utilize fixed interest rates, and amortize our debt. We also reserve cash and reinvest heavily in our properties to ensure our assets increase over time and that we are positioned for potential disruption.
Perhaps most importantly, we demonstrate our investor-first philosophy with our commitment to impactful engagement in our communities. Both our investors and our investments benefit when the communities around them thrive. Beyond just our commitment to manage each property with care and pride, we have built into our investment model a financial commitment from our Tempus Evergreen fund and our management company to give a portion of the earnings from each investment to organizations and causes that are delivering real improvement in our communities. Tempus is dedicated to providing support for student achievement, addressing hunger, homelessness and financial insecurity, environmental responsibility, and foster care and adoption. We also encourage and support the charitable activities of our partners across the country as they join our commitment to be impactful to our communities.
Our investor centric model is key to the success of the Tempus platform but it’s only one part of the story. Go To Part Two
Dan Andrews
CEO