Welcome To SG | T2
SG | T2 is a joint venture started in 2016 between Sanders Group (SG) and T2 Capital Partners (T2). This partnership set up a Multifamily Impact Fund focused primarily on workforce housing. Our mission is to make life better in the communities that we serve, one interaction at a time. Our goal is to deliver above average risk-adjusted returns to our Investors. SG | T2’s combined achievements include 1,300+ limited partners, $800+ million deployed since inception and $450+ million combined AUM.
Why choose SG | T2?
SG | T2 sources and identifies opportunities in alignment with the interests of Citi’s mandate to preserve affordable housing while also achieving strong risk-adjusted returns in the multi-family sector with a focus on affordable, mixed income (80% of Area Median Income) that span across opportunistic, value-add, core and core-plus assets in Michigan, Ohio, Indiana, Illinois, Wisconsin, Tennessee & Kentucky.
Manage $40-200 million of Community Reinvestment Act (“CRA”) qualifying private equity funds, the investment objective of which will be the preservation of affordable multifamily housing across the United States. The Fund will acquire multifamily housing primarily for the benefit of low to moderate income individuals and communities (including workforce, regulated and mixed-income housing) with a commitment to community development and engaging diverse professionals throughout the acquisition and ownership infrastructures.
• $40mm Equity Fund (currently) / max $200mm
• Founded in 2021
• Preservation of Affordable Housing
• Community. Commitment. Collaboration.
Our deal size typically requires equity & debt ranging between $20 – $35 million per transaction; hence $5-10 million of equity. We will seek to buy assets that have current in-place cash flow ranging between 6-10% cash on cash returns and seek to achieve 12-15% gross leveraged IRR over a 7-10 year hold period.
Originally acquired by SG in 2008, subsequently recapitalized with T2 in 2016, King’s Pointe is considered a workforce property with 170 units.
2008 – sold 2021
WEST BAY VILLAGE
We converted a 295-room hotel into a 254-unit workforce housing property.
2021 – Present
126 units upgraded. $2.2 million spent to date including unit upgrades, roof, window and door wall replacements, pool upgrade, asphalt replacement and common area/hallway upgrades.
272 units – Livonia, Michigan
SG originally acquired with T2 in 2017, recapitalized in 2019 with Hud 223f – Present
The original Owner/Developer was originally financed by T2; subsequently SG purchased below replacement costs. Bear Creek represents the only Class A poperty in the Petoskey area that caters to the area’s workforce housing needs.
2018 – Present