Cimbra Partners

Overview

Cimbra Partners is a real estate investment firm specializing in the development and management of residential communities, with a particular emphasis on build-to-rent projects in high-demand markets. The firm pursues co-general partner status in residential ground-up development and value-add projects, partnering with local developers to generate compelling risk-reward opportunities for investors. Their investment strategy includes a target minimum internal rate of return (IRR) of 20% for ground-up development projects and 15% for value-add projects, with a target minimum equity multiple of 2.5x on build-to-rent projects and 2.0x on build-to-sell projects. Cimbra Partners also seeks to combine their development and investment expertise with partners that share the same values, allowing for a one-time step-up on incurred expenses and sharing in pre-development expenses. They do not participate in more than 25% of the development fees and help raise limited partner (LP) equity. The firm has been involved in projects such as Parasol in Melbourne, Florida, and The Driftway in Philadelphia, Pennsylvania. In February 2023, Cimbra Partners partnered with Trilogy Investment Company on an 84-unit build-to-rent project called Encanto Villas in Avondale, Arizona, with the first units expected to deliver in the fourth quarter of 2024. This project marks the first of three purpose-built communities Trilogy plans for Avondale. Cimbra Partners' approach emphasizes adaptability, creativity, and personal relationships, aiming to deliver strong after-tax cash flow, stable appreciation, and long-term value creation for their investors. They focus on middle-market transactions with strong fundamentals that can be stabilized at a discount to intrinsic value, aligning their strategies with investor interests while maintaining a commitment to integrity and excellence. Cimbra Partners' investment philosophy centers on adaptability, creativity, and personal relationships, aiming to deliver strong after-tax cash flow, stable appreciation, and long-term value creation for their investors. They focus on middle-market transactions with strong fundamentals that can be stabilized at a discount to intrinsic value, aligning their strategies with investor interests while maintaining a commitment to integrity and excellence. Their portfolio includes projects such as Parasol in Melbourne, Florida, and The Driftway in Philadelphia, Pennsylvania. In February 2023, Cimbra Partners partnered with Trilogy Investment Company on an 84-unit build-to-rent project called Encanto Villas in Avondale, Arizona, with the first units expected to deliver in the fourth quarter of 2024. This project marks the first of three purpose-built communities Trilogy plans for Avondale. Cimbra Partners' approach emphasizes adaptability, creativity, and personal relationships, aiming to deliver strong after-tax cash flow, stable appreciation, and long-term value creation for their investors. They focus on middle-market transactions with strong fundamentals that can be stabilized at a discount to intrinsic value, aligning their strategies with investor interests while maintaining a commitment to integrity and excellence.

Investment Focus

• Co-general partner status
• Partnership with local developers
• Target minimum IRR of 20% for ground-up development projects
• Target minimum IRR of 15% for value-add projects
• Target minimum equity multiple of 2.5x on build-to-rent projects
• Target minimum equity multiple of 2.0x on build-to-sell projects
• Leverage up to 70% loan-to-cost (LTC) for ground-up development projects
• Leverage up to 75% loan-to-value (LTV) and debt service coverage ratio (DSCR) of 1.2x for value-add projects
• Project hold/life of 5-8 years from start of construction to sale for build-to-rent projects
• Project hold/life of 3 years for build-to-sell projects
• Target 75%+ capital recovery after 36-48 months through refinance on build-to-rent projects
• Yield on equity of 7%+ upon stabilization for value-add projects

Portfolio Companies