Tempo Growth Fund LLC (the “Fund”) is a limited liability company organized under the laws of the state of Delaware on November 4, 2019.

Tempo Growth Fund LLC overview video with Ryan and Mike

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Tempo Growth Fund LLC Objectives Summary

  • Fund target capital raise: $25,000,000
  • Management: Tempo Growth Management LLC (Ryan Parson and Mike Zlotnik managers)
  • Growth focused
  • Closed-ended
  • Target ROI = 12-18%
  • Tax efficient
  • 5-7 years term
  • IRA Friendly
  • Areas of investment:
    • Distressed Commercial Real Estate debt
    • Value-add investments (Self-storage, Multifamily, etc.)
  • 8% Pref with 80/20 Class A ($1,000,000+), and 70/30 Class B ($250,000 – $999,999)
  • 12 months fundraising period (two extensions of 6 months each are allowed)

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Pros and Cons of Tempo Growth Fund LLC

Pros

  • Institutional level Preferred return and Split
  • Projected ROI 12-18%
  • Tax Efficient: Depreciation tax benefits and Capital gains focused
  • Potentially strong return based on value-add and good management, strong sponsors/projects
  • Diversification
  • IRA Friendly as we p lan no-leverage on the Fund level

Cons

  • No cash distributions in the early years, e.g. 1-2 years
  • No liquidity (capital invested in long-term projects)
  • No re-investment of distributions
  • Fund is projected to take 5-7 years (could be longer) to life cycle all investments
  • Not all “committed” capital may go to work immediately

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Tempo Growth Fund LLC planned areas of investment

Distressed Commercial Debt
  • Quadrant 2 deals with good downside protection, but no initial cashflow
  • Target fund level IRR 16%+
  • Collect late fees and default interest (18-24% rate)
  • Foreclose if needed.  Usually, get repaid with 1-2 years as borrower finds money to repay
Self-Storage value-add deals
  • Conversions from retail, industrial or other to Self-Storage
  • Ground up construction
  • Quadrant 4 deals typically, but could be some Q2 deals
  • Target fund level IRR 20%+
Multi-family value-add deals
  • Quadrant 2 deals typically, sometimes Quadrant 4
  • Moderate to heavy value-add work
  • Renovations 1-2 years with no / limited cashflow
  • Exit strategy:
    • Stabilization and refi in year 3, and then cashflow or
    • Sale upon stabilization
  • Target IRR 20%+
Industrial, Office and other value-add deal
  • Q2 or Q4 deals (TBD)
  • Execute Value-add plan and then refi (return capital) or resell
  • Target IRR 20%+

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Investment Objective and Strategy

The Tempo Growth Fund LLC’s strategy is to acquire growth-focused real estate-based investments in various forms, including equity securities in other 506 Regulation D funds or intermediary entities that own interests in real property or debt instruments secured by real property, and direct investments in real property or debt instruments secured by real property (each, an “Asset”). The Tempo Growth Fund LLC will acquire Assets whose underlying real estate-based assets are located in target markets across the United States and have a value-add strategy, producing little to no upfront income until value-add work is completed and stabilization is achieved.

The Fund intends to invest primarily in entities and funds managed by Fairway America, LLC or one of its affiliates (collectively “Fairway”) and other selected non-Fairway funds and syndications. The Managing Members have extensive experience investing with Fairway and believe they can use that experience to produce attractive returns for Fund investors. The Fund may invest in entities and funds managed by other parties (“Sponsors”), in the Tempo Growth Fund LLC’s sole discretion. The Tempo Growth Fund LLC intends to identify Sponsors that are high quality real estate deal syndicators and originators, and fund Tempo Growth Fund LLCs, with demonstrable character, integrity, track records, and Tempo Growth Fund LLCial capabilities in their particular geographic area and real estate-based asset type niche.

By investing in individual deals or funds through Fairway and other high-quality Sponsors, and by diversifying the Fund’s holdings over a variety of investments with varying real estate asset-based investment strategies and widespread geographic territories, the Tempo Growth Fund LLC believes it can produce superior risk-adjusted returns for the Fund.

The Tempo Growth Fund LLC and its members may be members or general partners of other entities which have investment objectives that have some similarities to the Fund, which may cause the Tempo Growth Fund LLC’s members to pursue investments that are competitive with those of the Fund. While the Tempo Growth Fund LLC intends to pursue such investment opportunities outside the Fund primarily when an asset does not fully match the Fund’s investment strategy or when the Fund is unable to pursue the asset due to capital restraints or other concerns, the Tempo Growth Fund LLC retains discretion to pursue assets outside the Fund. The decision as to the suitability of any investment by the Fund will be determined by the Tempo Growth Fund LLC in its sole discretion and will be based upon a review of the Fund’s investment portfolio and upon factors including but not limited to asset allocation, investment size, net income, the effect of the investment on diversification of the Fund’s portfolio, and the amount of Fund capital then available for investment. Notwithstanding the Tempo Growth Fund LLC’s broad discretion, the Tempo Growth Fund LLC intends primarily to pursue all investments that are in alignment with the Fund’s objectives through the Fund, and not through other entities.

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Asset Selection Criteria

The Fund expects to acquire Assets that meet the following selection criteria, as determined by the Manager in its sole discretion:

  • Primarily entities and funds managed by Fairway America, LLC, but the Fund may also invest in entities and funds managed by other Sponsors, in the sole discretion of the Manager
  • Underlying real estate-based assets that have a growth-focused value-add strategy with little to no up-front income
  • Underlying real estate-based assets may include real property and/or debt instruments secured by real property
  • Various asset classes, including but not limited to self-storage, retail, multifamily, office, and industrial
  • Acquisition price for each Asset will typically range from $500,000 to $2,000,000
  • Total capitalization of underlying real estate-based assets (including debt and equity) typically ranging from $2,000,000 to $20,000,000
  • Typical hold periods for underlying real estate-based assets of six to nine years

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How to invest into Tempo Growth Fund LLC

Request Fund PPM, Term Sheet and subscription info:

Please email to: Mike@TempoFunding.com

OR

Electronic subscription: https://Secure.TempoGrowthFund.com

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It is our goal to keep our investors, borrowers, closing agents, and other stakeholders informed and in-touch with the latest developments at TF Management Group LLC.   We aim to accomplish this by providing you updates, education and industry news through our Monthly Newsletter.  We hope you will enjoy it and welcome your feedback.

Mike ZlotnikCEO

TF Management Group LLC