Jun 03, 2017
Surprised to see the high ratings on this developer. I have a very different experience.
I invested a ground up restaurant deal in Mobile, AL with Kleban via RC since July, 2015. I went in counting on the reputation of the senior principals. Don't know if my hunch is correct but but I think the deals in the south are done by the son/grandson who was out of school few years ago and still are honing his skills. These deals seemed like the practice run for him with the backing from his elders. Most of the Kleban deals seemed stay in the Northeast prior to this.
Project reporting is soso. I had to ask for quarterly updates. The development should have been completed, rented to tenants and distributions started by July, 2016. I just received 1st dist in March, 2017. The development plan execution and control seem to be the problem. 12% and 90/10 was very ambitious when I DD the deal at beginning. Don't know it will never get there. when he proposed the deal, He may wanted to cut ahead of competitions or there were ways the developer get paid before the prepf.
Anyway, sorry, NOT satisfied. Not sure I'll invest with them again..