Tempus Delivers Value

In Part 1 of this post, we discussed the investor centric origin of Tempus and how that served as the basis for making Tempus a truly unique real estate investment company. Today we’re going to discuss a few other attributes that set Tempus apart from other firms.

An interesting thing about the real estate business is that every product that is purchase or sold is unique. The fact that only one property can occupy a particular space at any given point in time combined with the fact that location is the most important factor in any piece of real estate means that real estate cannot be easily commoditized. Commoditization has been one of the most important factors in economic progress over the last 120 years driving revolutionary changes in entire business sectors ranging from manufacturing to shipping to fast food restaurants and capital markets. During all of this change, the process for purchasing and selling real estate has remained virtually unchanged. While missing out on the commoditization boom means that transaction costs in real estate have not decreased like they have for example with stocks, that inefficiency also drives opportunity.

One of the primary ways Tempus delivers value for its investors is to identify the profitable opportunities that arise from those inefficiencies. To do this, Tempus has developed a network of brokers across the country who are engaged in the most attractive markets in the country on a day-to-day basis. Tempus builds a relationship and a partnership over time with those brokers by approaching them with a wholly unique mindset.

Most real estate investors find it frustrating that the real estate space remains inefficient and that the transaction costs remain so high because of that inefficiency. This leads them to see the cost paid to brokers as a necessary evil, but one that should be minimized as much as possible in order to deliver the most efficient transaction possible. This is a very natural and linear thought process, and it presents an opportunity for Tempus.

Tempus looks at the commissions paid on a transaction as an integral part of the inefficient process that generates opportunity in the first place. When viewed as a normal part of a process that creates opportunity it opens an opportunity for Tempus to develop a relationship. By engaging with local brokers in a deferential way and treating them as partners rather than barriers to a more profitable deal, we develop a valuable ally within these markets. These allies them make sure that we see every opportunity that comes to market as well as their best ideas that aren’t on the market. We foster these relationships over time and go far beyond simple compensation arrangements. These local partners often invest with us, we join in charitable endeavors together and we gather socially with them as often as we can.

Beyond finding attractive investment opportunities, there is another, often less recognized but equally important way Tempus delivers value. Our asset strategy and management team work each asset rigorously to ensure that each property is positioned to capture the maximum amount of value available in the market. This process includes regular surveys of the markets to identify any changes to our position within the market, regular engagement with tenants to look for opportunities to provide additional value and proactive management of capital projects to make sure our assets remain in ideal condition. They wind up facing a wide range of issues on a day-to-day basis and each one is addressed promptly and in a way that brings maximum value to our partners.

Tempus is a different model for a real estate firm, but the financial results deliver the ultimate verdict. As of October 2022, the 25 investments on our platform have delivered returns of approximately 2.5 times that of the NAREIT equity index. Across 11 fully realized properties, our average annualized return is 33.9% deals on average returning 1.74 times initial invested capital.

So…what is Tempus? In short, Tempus is a uniquely investor centric real estate firm that leverages their proprietary network of local partners to source quality investment opportunities, positions them for resilience and delivers for investors with a track record of successful investments.

Dan Andrews
CEO