Reflecting on the Past, Striving for the Future - Tempus Realty Partners

Axis Park

Milestones offer a great opportunity to reflect on what has been as we think of what is to come. As we close our eighth year as a firm and approach a milestone that seemed almost unthinkable in 2016, it seems fitting to reflect with gratitude on some of the important moments that led to this point.  

First, it's hard to overstate the importance of my partners at Tempus. As much as anything, our success is rooted in the fact that four partners, each with very different but complementary skill sets, came together around a shared vision. We're all clearly better for having partnered with the rest of the team, and I'm thankful they've been there along the way to fill critical roles for our firm.

Second, I think about Gaffney...our first major win. In 2018, we purchased this 500,000-square-foot building completely empty with a plan to renovate it and find a tenant. Our team executed the plan flawlessly and the building turned out great, but we finished runner up to one tenant, and then a second, and then a third. Eventually, we did find a user and delivered a great result for our investors well ahead of plan, but the raw returns don't reflect the emotional rollercoaster that is inherent with such a deal.

Next, I think about Axis, an empty office building in Greenville, SC. Like Gaffney, our team executed a complex plan expertly, but there were more than a few ups and downs with potential tenants. Ultimately, like Gaffney, the right user came along, and we sold the property for an outstanding result in March of 2020. The transaction closed literally days before the COVID-related market turmoil of March 2020, which would have made the transaction impossible. Not only did this sale happen right before the world shut down, it provided a sizeable return for our firm and investors, enabling us with the strength to be opportunistic later that year.

Speaking of COVID...it's hard to think about the last eight years and not think about that. While there were several gut-wrenching days, we were spared the worst of the issues in the industry as our tenants largely remained current or worked out negotiated modifications. Within a few months, all of our tenants were brought current, and we even began to see some positive leasing activity in our office buildings. Our team met virtually and/or outdoors for most of a year while our ability to travel was severely limited, but by the end of 2020, we had secured several exciting new investments and wound up having a strong year.

In 2021 and 2022, we were able to monetize several investments, each of which exceeded original expectations. To date, we've fully realized 18 of the nearly 90 properties purchased and each of those sales delivered returns above initial underwriting.

In 2022, we launched Tempus Evergreen to allow us to own the very best assets in our portfolio indefinitely. Evergreen is off to a strong start with $250 million in assets already in the portfolio, and its first full year performance significantly outperforming public and private benchmarks.

With all this excitement, we've bolstered our team. Today, the Tempus team is comprised of eleven professionals including three more partners, and we're adding members to our team as we continue to grow. I can't say enough about the team at Tempus...they're amazing, and it's no stretch to say that their success is our success. There are numerous things I could recount here, but just as it's good to reflect on the past, so it is to strive for the future.

So, thanks to all of our partners for making this milestone possible, and here's to the future with many more milestones to come!

Dan Andrews
CEO and Managing Partner