Trinity Investors (formerly Trinity Private Equity Group) sold the building that was constructed for Walgreens in Ruston, Louisiana. The project was guaranteed by Walgreens, which was rated as an A+ credit risk, and Trinity also hedged the floating interest rate on the loan, eliminating a significant risk. The hedge proved expensive, reducing the Trinity equity investor IRR from 30% to 14%, but with substantial risk reduction. Including the cost of the hedging instrument, Trinity equity investors realized a 129% cash-on-cash return over the life of the investment.
Trinity Investors is a private equity firm located in Southlake, Texas. If you are interested in learning more about our alternative investing opportunities, please contact a member of our Client Relations Team.