TSG the Tenant in Common Sponsor has turned its back on it investors.
At the spring symposium of TICA it was discovered that TSG was attempting to cancel its Master Lease program and go directly to a property management style. What does this mean? It means TSG can stop paying out to its investors and use the money to fund there bad properties.
What are there bad properties? They own 3 student housing deals in a college town where the college has had a drop in enrollment from 30,000 to 24,000 in 3 years. First of more people are going to college today then ever, how in the world did TSG find a college that would shrink by 20% over 3 years?
It sounds like there acquisitions department and due diligence team need to answer some questions.
Visit TSG's website
http://tsgre.com/resources/tenant-in-common/
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