Overall:
Communication/Reporting:
Track Record/Performance:
Sponsor Fees:
Kleban Properties is a value-added real estate developer headquartered in Fairfield, Connecticut. Kleban Properties owns and operates office, retail, and mixed-use properties in town centers across the East Coast.
The Kleban organization has achieved great success with real estate in Fairfield County that it has developed, acquired and managed over more than 45 years. The organization has a growing national reputation built on strong ethics, cogent value-add strategies, and a commitment to building quality.
Over the past few years, Kleban Properties has embarked on a strategy to leverage this reputation and expand through development in what we have identified as growth markets throughout the Gulf Coast. Previously financed in-house, we have decided to form multiple investment vehicles to more rapidly take full advantage of the opportunities we see.
We have identified markets with large universities and/or prolonged resort seasons including Mobile, Pensacola, Hattiesburg, Gulfport, Tallahassee and Baton Rouge. These markets have shown a commitment to economic development, transparency, and a fit with our tenant pool. Additionally, there is an absence of institutional capital and national development expertise in these markets, which are nonetheless experiencing significant overall growth.
We have developed a committed team of local professionals to identify and qualify these development opportunities exclusively for us. In many cases, we face local entitlement challenges, unconventional sellers, stigmatized properties, and other challenges that enable the value-add potential. We have also identified an inventory of tenants enthusiastic for these developments.
By dealing with the above challenges, taking a fresh look at hidden opportunities, and demonstrating an ability to close quickly, we are in possession of dynamic deal flow for our investors. While our model is based on an extended hold, we are targeting annual cash-on-cash returns in the 14-16% range with a sizeable cash return on exit.
Fees and Other information about the sponsor:
1. Acquisition fee (typical): 1.0%
2. Asset management fee (What is based? (Equity, Total Assets, or Revenue): 0.5% of equity
3. Management fee (typical): 4-6% of revenue (project specific)
4. Construction fee (typical): 0% (project specific)
5. Sponsors Loan fee (typical): 1.0% (often combined with or in lieu of an acquisition fee at initial closing)
6. Disposition fee (typical): 0%
7. Promote & waterfall (typical): Preferred return (7-12%), thereafter 10-20% promote to the Sponsor (project specific)
8. Catch up fees for sponsor: Sponsor catch up
9. Years of experience/existence: 60 (1956)
10. Number of deals sponsor has participated with outside investors: 8
11. Asset Value of Sponsor's Investments: ~$400 million
12. Average Investor IRR on completed deals (Low, high and median. If available): TBD on outside investor deals
13. Number of times exercise their callable right to investors: Never on outside investor deals
14. Typical co-invest percentage: No co-invests with outside investors
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.
Jan 28, 2017
I am in one development deal that is looking good, but its too early to know for sure. I will say they have the lowest fees of any sponor that I have invested with. I like that a lot! Communication is good and I would invest with this sponsor in the future...if the deal's fundamentals are good.
Jan 27, 2017
I've been invested in one of their projects for over a year. Too early to tell. Communication isn't bad, quarterly updates, distributions meeting expectations.
Kleban Properties is a value-added real estate developer headquartered in Fairfield, Connecticut. Kleban Properties owns and operates office, retail, and mixed-use properties in town centers across the East Coast.
The Kleban organization has achieved great success with real estate in Fairfield County that it has developed, acquired and managed over more than 45 years. The organization has a growing national reputation built on strong ethics, cogent value-add strategies, and a commitment to building quality.
Over the past few years, Kleban Properties has embarked on a strategy to leverage this reputation and expand through development in what we have identified as growth markets throughout the Gulf Coast. Previously financed in-house, we have decided to form multiple investment vehicles to more rapidly take full advantage of the opportunities we see.
We have identified markets with large universities and/or prolonged resort seasons including Mobile, Pensacola, Hattiesburg, Gulfport, Tallahassee and Baton Rouge. These markets have shown a commitment to economic development, transparency, and a fit with our tenant pool. Additionally, there is an absence of institutional capital and national development expertise in these markets, which are nonetheless experiencing significant overall growth.
We have developed a committed team of local professionals to identify and qualify these development opportunities exclusively for us. In many cases, we face local entitlement challenges, unconventional sellers, stigmatized properties, and other challenges that enable the value-add potential. We have also identified an inventory of tenants enthusiastic for these developments.
By dealing with the above challenges, taking a fresh look at hidden opportunities, and demonstrating an ability to close quickly, we are in possession of dynamic deal flow for our investors. While our model is based on an extended hold, we are targeting annual cash-on-cash returns in the 14-16% range with a sizeable cash return on exit.
Fees and Other information about the sponsor:
1. Acquisition fee (typical): 1.0%
2. Asset management fee (What is based? (Equity, Total Assets, or Revenue): 0.5% of equity
3. Management fee (typical): 4-6% of revenue (project specific)
4. Construction fee (typical): 0% (project specific)
5. Sponsors Loan fee (typical): 1.0% (often combined with or in lieu of an acquisition fee at initial closing)
6. Disposition fee (typical): 0%
7. Promote & waterfall (typical): Preferred return (7-12%), thereafter 10-20% promote to the Sponsor (project specific)
8. Catch up fees for sponsor: Sponsor catch up
9. Years of experience/existence: 60 (1956)
10. Number of deals sponsor has participated with outside investors: 8
11. Asset Value of Sponsor's Investments: ~$400 million
12. Average Investor IRR on completed deals (Low, high and median. If available): TBD on outside investor deals
13. Number of times exercise their callable right to investors: Never on outside investor deals
14. Typical co-invest percentage: No co-invests with outside investors
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