Sentry and its partners have acquired or developed 24 apartment properties across six states, consisting of more than 7,500 units, with an aggregate purchase price of approximately $600 million.

Sentry understands the real estate business and has the complete infrastructure and experience to work with developers, acquisition partners, and management companies to maximize opportunities in this space. Sentry helps its partners make the right investment decisions by collaborating to thoroughly analyze the economics of each project. In addition to providing a significant portion of the required equity, Sentry has years of experience working with Fannie Mae, Freddie Mac, insurance companies, and banks to obtain construction financing and first mortgage financing. Then, after each project is acquired, Sentry works with each partner to maximize the value enhancement.

Qualified real estate property management companies and developers (of all sizes) can expand their ownership of properties (with Sentry providing a significant portion of the required equity capital), and augment their management fee income.

Sentry’s partners are typically small to medium-sized property management companies or developers (with a reasonable track record in their market niche) who identify significant opportunities in their markets, but who require a hands-on financial partner to acquire and/or develop the projects. In most cases, Sentry’s partners (and/or their principals) should have:

• At least five years of property management or development experience regarding properties in the size range of the property, e.g., for apartment projects, you should be currently managing at least five separate apartment properties, each in the size range of your expertise.
  
• Most or all of the systems and policies and procedures in place to operate your management or development business.
  
• A reasonable net worth and cash flow that is independent of the project under consideration.
  

Sentry acquires and develops apartment properties that have between 150 and 500 units, but will consider smaller projects that have intriguing characteristics or create unique opportunities.

In general, the properties that most interest Sentry have the following characteristics:

• An acquisition price of $5 million to $50 million;
  
• The ability to support, with adequate debt service coverage, a first mortgage loan in the amount of 75% of the acquisition price/value;
  
• A Total Equity Contribution from $250,000 to $15 million;
  
• A Class “A” or “B” property caliber (for large apartment properties);
  
• A Class “A,” “B,” or “C” with refurbishment potential (for smaller apartment properties);
  
• A location along the Wasatch Front (for smaller properties) or within a two-hour flight from Salt Lake City, Utah (for large properties).
  

After Sentry and a real estate management company or developer have agreed to participate in the Sentry Real Estate Funding Program, the Sentry Partner initiates its search for properties meeting mutually determined criteria. Once a property is identified, the Sentry Partner conducts a preliminary analysis of the property and, if Sentry and our Partner agree that the economics are favorable, the Sentry Partner makes an offer, subject to due diligence.

During the due diligence period, our Partner and Sentry work together to thoroughly understand the physical condition, historical performance, and potential of the property. If we both agree that the purchase should be finalized, a special purpose acquisition entity is formed, and the property is purchased.

The cash required to purchase a property is derived from a combination of the proceeds of the first mortgage loan or construction loan (which generally approximates seventy-five percent (75%) of the purchase price or construction cost) and an “Equity Contribution.” The majority of the Equity Contribution is provided by Sentry with some reasonable participation by our Partner (so that the Partner has “skin in the game”). Our Partner may take an agreed upon development fee or a carried interest (or some combination of the two). Generally, Sentry and our Partner receive a return on their capital invested, together with a preferred return, and thereafter cash is distributed in accordance with ownership interests.

To team up with Sentry and continue building your real estate empire, simply review whether we are a fit.  If your company (or the principals of your company) meet the guidelines, simply contact us and we will begin our journey together.