Tempus Realty Partners, a commercial real estate firm based in Little Rock, Arkansas, has been making waves in the heartland with a series of successful sale-leaseback transactions. Founded in 2016 by Dan Andrews and Isaac Smith, Tempus found its big break during the pandemic when fear swept through the commercial real estate market, allowing them to capitalize on opportunities that others were hesitant to pursue. With over $1 billion in deals under its belt, Tempus Evergreen, the firm’s private REIT, boasts a 15% return from June 2022 through the end of 2023, outperforming public and private REIT indexes.
One of Tempus’ key transactions was the purchase of a 486,000 square foot warehouse in Oshkosh, Wisconsin from Hoffmaster Group, a maker of disposable cutlery and paper products. This deal marked Tempus’ first “arms-length sourced sale-leaseback” and helped solidify their presence in the commercial real estate market. Since then, Tempus has acquired 106 properties worth $1 billion, with a focus on multipurpose industrial buildings that make up about 65% of their portfolio. They tend to avoid specialty properties and focus on properties located in middle America.
Tempus’ success lies in its ability to move quickly and close deals efficiently, earning the trust of sellers and advisors in the industry. Chelsea Mandel, founder of Ascension Advisory, a sale-leaseback advisory firm, initially hesitated to work with Tempus until they demonstrated their commitment and efficiency. Since then, Ascension has completed four deals with Tempus totaling $28.6 million. Tempus’ founders, Andrews and Smith, leveraged their own capital along with bank loans to fund their transactions, allowing them to explore creative approaches that other firms might shy away from.
Despite challenges in the real estate market, Tempus remains bullish on the industrial sector, particularly in manufacturing. While the office market has seen a decline, the industrial sector continues to show strength, with the Midwest not experiencing the surge in property values seen in other parts of the country. Tempus believes their focus on mundane industrial properties and their under-the-radar approach will allow them to weather the current market conditions until it picks up again.
With a track record of successful deals and a commitment to quick decision-making and flexibility, Tempus Realty Partners has positioned itself as a leading player in the commercial real estate market. Their ability to close deals efficiently and earn the trust of sellers and advisors has allowed them to expand their portfolio to over $800 million in assets. As they continue to focus on manufacturing and industrial properties, Tempus remains optimistic about the future of the market and their role in it.
