Urban Infill Development
Internal Rate-Of-Return (IRR)
For most business projects and real estate development ventures, the surest measure of success is understood best by the Internal Rate‐of‐Return (IRR) performance metric.
As an investment metric IRR is ubiquitous as well.
So, IRR can be practically compared to all rational financial metrics present in today’s marketplace.
The overriding factor contributing to the above referenced phenomena is the time value‐of‐money (TVM) construct, being integral in the IRR calculation. This is due to the fact that the IRR is a “backward-looking” growth rate (“already happened”). As such, TVM itself is “backward-looking” (“look how much I have grown”); and should be analyzed cautiously as part of any forward looking projection in finance (Pro Forma).
So, when TPR Development publishes its IRR results it is our reality (our confidence).
In our opinion, Return‐On‐Investment (ROI) is the best measure for Pro Forma analytical work we have (forward looking estimations).
ROI itself does not contain any aspect of the TVM value. Instead, it is simply expressed as a percentage.
ROI also comes clothed in several other nomenclatures:
- Total Return (At Time of Divestment)
- Absolute Return
- Cumulative Return
- Holding Period Return (or Yield)
For forward looking statements, or, Pro Forma evaluation analytics (“before it happens estimations”), we prefer the Annualized ROI as an annual compound growth rate projection.
The advantage of the Annualized ROI is that it is basic.
It does not require obfuscation; in terms of applying hybrid financial analytics to obtain an estimated annual compound growth rate.
So, Annualized ROI is simply a geometric inference with simple inputs. This geometric inference mimics the effects of the TVM. But in itself is weak (a much less accurate TVM; due to the fact it is an estimation, and not reality itself).
In addition, Annualized ROI is also known as the Compound Annual Growth Rate (CAGR).
Knowledge & Expertise
As Merchant-Builders, our operational expertise is the bedrock of our investment performance, all else being equal.
So, at the TPR Development Company we are always out front, applying our craft to level the risk.
And, it is with these fundamentals that a great track-record intuits for our investors: a quality operational business partner, and superior investment return advantages.
So, with all the talk on the street, we prefer to let our track-record speak for itself.
Agilities & Efficiencies
The bedrock of efficiency is commonality.
We here at The TPR Development Company realize that commonality and the time value-of-money (TVM) go hand-in-hand, in the real world.
So, commonality in all things built.
Commonality in engineering, architecture, site selection, subcontractor selection, and broker selection.
Economics applied to every aspect of the new Development Project, from inception to the divestment of the new Commercial Real Estate (CRE) Multifamily product.
Consistent Architecture
Creativity is the adolescence of Art.
So, it is critical to complete the creative decision(s) early on, so to gain the Art, earmarked for our buying customers.
As such, top-flight architecture and interior design are the bedrock for any risk-averse minded real estate developer.
We here at The TPR Development Company have already proven our Art, and are "down-the-road" in terms of keen construction productivity, and continued site selection due diligence.