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?

With principals that have over 50 years of combined experience, SG | T2 (a Minority Business Enterprise) is a fully-integrated real estate firm that stands ready to assist. As contrarian investors, we focus on preserving affordable workforce housing. In applying an opportunistic approach, we pursue assets that may be overlooked by other institutional investors. We believe our primary strengths lie in our relationships, experience and ability to quickly and intelligently apply capital.

Investment Strategy

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.

business person meeting in the modern office, team group of businessman teamwork discussion

KEY POINTS

• $40mm Equity Fund (currently) / max $200mm
• Founded in 2021
• Preservation of Affordable Housing
• Community. Commitment. Collaboration.

Representative Transactions

​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.

KING’S POINTE

Originally acquired by SG in 2008, subsequently recapitalized with T2 in 2016, King’s Pointe is considered a workforce property with 170 units.

Warren, Michigan
2008 – sold 2021

WEST BAY VILLAGE

We converted a 295-room hotel into a 254-unit workforce housing property.

Kissimmee, Florida
2021 – Present

aPPLE RIDGE

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

bEAR CREEK

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.

Petoskey, Michigan
2018 – Present

meet our team

Derron Sanders

• Co-Founder, CEO, SG • Michigan State University • Wayne State University MBA • 25+ years in real estate

Jeff Brown

• Co-Founder, CEO, T2 • Wheaton College • Chicago Booth MBA • 20+ years in real estate