ORIGINATOR PROFILE
Transcendent Electra
Transcendent Electra, is a joint venture between single-family rental platform Transcendent Investment Management (TIM) and multifamily owner/operator Electra America. The joint venture was launched in 2021 with a goal to acquire or develop approximately $3 billion in SFR housing over the next three years.
TIM has been in the SFR space since 2008 as one of the first large-scale investors. In 2014, the firm shifted its strategy from buying through traditional channels and began bulk buying new and warrantied units at discounts from large homebuilders.
Electra America has been in operation since 1991. Under their American Landmark Apartments brand, they own and operate more than 90 apartment communities and over 35,000 units across the Southern U.S.
Transcendent Electra currently manages and/or has under control about 6,300 single family rental homes.
Investment Methodology
The Sponsor has established relationships with homebuilders and generally receives potential opportunities on a monthly basis. The Sponsor underwrites each unit, with the aim of constructing a portfolio of units across multiple homebuilders for purchase. The portfolio construction process is an iterative procedure which includes diligence on the individual units, community, aggregate portfolio, and market dynamics, and involves input from the Sponsor’s analytics team, property management team, and affiliated brokers. At each stage of the underwriting process, units that do not meet the Sponsor’s requirements are removed from consideration.
Portfolio Management
The Sponsor’s Asset Management team works alongside the Property Manager to manage the assets post-acquisition. Upon closing, each unit is onboarded onto the property management platform, through which all aspects of property management, including property status, leasing, and resident services, are processed. The Asset Management team maintains an internal reporting model which tracks the asset’s performance as compared to its projected performance. Investor reports are generated on a monthly basis in coordination with the accounting team.
Transcendent Electra Management (“Property Manager”) is a wholly owned subsidiary of the Sponsor that provides property management, brokerage, and construction management services to the Sponsor and third-party owned single-family and multi-family assets. Property managers are located within all of the MSAs where Sponsor is acquiring assets and where Sponsor has existing assets. The Property Manager employs regional salaried property management employees and 1099 leasing agents to handle lease up and sales. Since inception, it has managed over 6,000 single family homes.
Management Team
Jordan Kavana
CEO of Transcendent ElectraJordan Kavana established Transcendent Investment Management in 2008 to lay the foundation for his vision of a data driven real estate investment platform in the single-family residential space to capitalize on what he saw as clear opportunities created by the distressed U.S. real estate market of the time. After further developing his proprietary ERP solution, TIAS ResiPro ™, Jordan formed the firm’s vertically-integrated Build US Back® line of companies as its operating platform to research, select, acquire, renovate, rent and, at the right time, resell properties in-house; becoming the subject of a 2014 Harvard Business School case study entitled, "Build U.S. Back: Opportunities in the U.S. housing market."
Prior to launching Transcendent, Jordan successfully formed and grew an international high-tech toy company in Hong Kong and China, which he sold in 2003 to return to the U.S. and co-found JL Real Ventures, a private equity fund that assembled a portfolio of multi-family properties in the Southeastern United States.
Jordan earned his B.A. in Hospitality Management and Finance from Florida International University, pursued graduate level studies in real estate finance at Harvard University and is a graduate of Harvard Business School’s OPM program. He served as a trustee on the Florida State Pension Plan Board, which oversees $127.8 billion in total assets and currently serves on the Advisory Board for Aviator Capital Management, a full-service commercial passenger aircraft leasing and management firm based in Miami, Florida.
Prior to launching Transcendent, Jordan successfully formed and grew an international high-tech toy company in Hong Kong and China, which he sold in 2003 to return to the U.S. and co-found JL Real Ventures, a private equity fund that assembled a portfolio of multi-family properties in the Southeastern United States.
Most recently, Jordan received inclusion into Latin Trade’s TOP 100 Most Powerful Businesspeople listing of 2017.
Joseph Lubeck
Principal of Transcendent ElectraJoe Lubeck is Principal of Transcendent Electra, and CEO of Electra American Landmark and is responsible for the oversight of all aspects of the firm’s operations. An expert in multifamily, value-add and distressed repositioning transactions, Joe has overseen the buildout of four successful multifamily portfolios totaling in excess of $9 billion.
Over the last 25 years, he has led the acquisition, operation and disposition of more than 100,000 units. He was thefounder of Landmark Apartment Trust, which sold its portfolio in 2015 for $1.9 billion. Joe is an honors graduate of Cornell University and holds a Juris Doctor Degree from Delaware Law School.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]