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Multifamily
65-Unit Gelber Apartments
Multiple Locations
Completed Equity
100% funded
...
65-Unit Gelber Apartments
Multiple Locations
All Investments > 65-Unit Gelber Apartments
...
Overview
65-Unit Gelber Apartments
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated Hold Period 7 to 10 years
Investment Strategy Value-Add
Investment Type Equity
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
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Management
For more information, view the Sponsor's Investment Memorandum.
Crawford Park Financial and Apts Mgmt, LLC

Crawford Park Financial ("CPF") is a company that is dedicated to finding opportunities in real estate, investing in urban rentals, and originating and buying debt.

CPF's strategy is to purchase multifamily assets in supply constrained markets with high barriers to entry. These properties are located in areas with a limited supply of land to build and a restrictive, costly and lengthy entitlement process. CPF focuses on properties that are below replacement cost and where the alternatives to renting are high cost, for sale housing. In addition, the targeted locations are near numerous job centers and public transportation options. By adding value to the property through capital improvements and a professional management program designed to maximize net operating income, CPF has been able to realize increased rents and higher occupancy rates. CPF actively manages and executes all aspects of a property's life cycle: acquisition, financing, rehab, property operation and final disposition.

The CPF portfolio located in Southern California includes 20 buildings totaling 324 apartment units, with an annual cash flow of over $3.9 million and a market capitalization in excess of $39.0 million. From January 2008 to December 2013, CPF has invested $41.0 million on behalf of its clients in real estate debt investments. From June 2011 to December 2013, CPF has invested over $11.0 million for its clients in Los Angeles apartment buildings.

Apts Mgmt, LLC

Apts Mgmt, LLC is 50% owned by Mark Crawford and 50% by Steve Bram. Mark and Steve met several years ago at the Moriah Real Estate Group. In 2011, they realized that the time was appropriate to acquire multifamily properties and started Apts Mgmt, LLC. Mark's primary responsibilities include identifying the properties and managing the operations. Steve consults with Mark on the acquisitions, provides capital and finances the purchases.

A detailed track record for Apts Mgmt, LLC can be found as an attachment at the bottom of this page. 

Mashcole Property Management

Mashcole Property Management ("Mashcole") is strictly a third party property management company focused on the California, Nevada, Arizona, and Texas markets. The company is hired by a variety of third-party clients to oversee the day-to-day operations and management responsibilities of their multifamily properties and portfolios. Mashcole's key personnel have extensive experience in the management of assets which include projects requiring repositioning, strong resident retention requirements and lease-ups. Mashcole also coordinates renovation projects, which have included projects ranging from $2,000 per unit to $20,000 per unit. The company was formed in 2004 and currently manages approximately 100 apartment communities totaling more than 3,000 units.

Management bios for the Mashcole team can be found as an attachment at the bottom of this page. 

Sample Transaction - 4112-4114 Palmwood

Purchase Date: March 6th, 2012
Total Units: 55 units
Purchase Price: $3,918,000 / $71,236 per unit
Equity Raised: $1,325,000
Financing: 4.10-4.25% rate for 7 years, Opus Bank
Renovation Budget: $550,000 / $10,000 per unit
Capital Improvements: Roof replacement, landscaping, facade work, security cameras, deck replacement,
window repairs, addition of laundry rooms, new appliances, new paint, ceiling fans,
flooring, countertops, plumbing repairs, blinds, lighting
Eneregy Conservation
Improvements:
Outdoor and hallway LED installations, low flow toilets and shower heads, upgraded
water system for landscaping, upgraded laundry appliances
Before CPF Purchase: 1b/1b - $700-800, 2b/2b - $800-$1,000
After CPF Purchase: 1b/1b - $950, 2b/2b - $1,250
Management Team
Management
Mark Crawford - Managing Partner

Mark Crawford brings 30 years of experience in the real estate business to his ventures. His primary focus as the President of Crawford Park Financial is syndicating funds to purchase and renovate apartment units. He currently owns 50% of Apts Mgmt, LLC. His experience includes development, brokerage, mortgages, and investments of residential and commercial properties. In addition, he has obtained government approvals for over 1,000 apartments and subdivisions. 

Management
Steve Bram - Principal

Steve Bram is a co-founder of George Smith Partners and currently owns 50% of Apts Mgmt, LLC. He has served as the President of George Smith Partners for over 6 years and is widely recognized as one of the nation's leading real estate investment banking professionals. During his more than two-decade tenure at the George Smith Partners, he has arranged billions of dollars in financing. He is a specialist in the area of structured financing and is recognized nationally for his expertise in the hotel and hospitality sector. Prior to joining George Smith Partners, he worked in management for Hyatt Hotels and also in financial consulting. He lectures regularly on finance to UCLA Extension classes.

Management
Joanna Crawford - Vice President

Joanna Crawford is a Certified Public Accountant. As Vice President of Crawford Park Financial, she manages the finance, compliance, and operational functions.  Prior to joining Crawford Park in 2007, she was a Senior Vice President of Compliance with Countrywide Home Loans, where she acted as a liaison between internal support groups (legal, compliance, and audit) and the loan origination divisions regarding development and implementation of best practices, corrective actions, and system enhancements to achieve optimal quality and compliance for HMDA and Fair Lending.  Prior to that, she was in Countrywide's internal audit group, auditing the loan origination and administrative divisions.  Before Countrywide, she practiced as a public accountant at Price Waterhouse.  Joanna has a BBA in Accounting from the University of Texas at Austin.

Management
Jonathan Dannenfelser - VP of Operations

Jonathan Dannenfelser is Vice President of Operations at Crawford Park Financial where he oversees the acquisition, rehabilitation and disposition of apartment building investments. Jonathan started his real estate career in Long Island, NY in the mid 1990’s where he worked for a contractor who would purchase, renovate and sell residential properties for profit. During that tenure, Jonathan learned construction including: framing, electrical, plumbing, roofing, siding, windows, landscaping, finish work and reading blueprints.  In addition to working with Crawford Park, Jonathan works as a regional property manager, and has gained extensive experience with short sale negotiations, foreclosures and acquiring properties at auction.

Property
For more information, view the Sponsor's Investment Memorandum.
Address: Various - see chart below
Los Angeles, CA 90008
Year Built: 1957-1960
Current Occupancy: 98.5% (one vacant unit)
Number of Units: 65 units across 3 buildings
Net Rentable Area: 60,674 square feet
Buildings: Three two-story residential buildings
Parking: 51 spaces
Effective Rent Per Unit: $908
Effective Rent PSF: $0.97
Unit Mix
  Address Studio 1b/1b 2b/1b 2b/2b 3b/2b Units Avg. Size SF Total SF
  4029 Gelber Place 0 16 11 0 0 27 974 26,288
  4030-4036 Gelber Place 0 3 13 2 0 18  924 16,636
  4005 Ursula 1 14 0 3 2 20 888 17,750
                   
  Total/Avg 1 33 24 5 2 65 933 60,674

Gelber Apts, LLC will be acquiring a set of three (3) multifamily garden-style apartments, each constructed in the late 1950's. Each building includes covered parking and laundry facilities. Two of the properties - 4005 Ursula Avenue and 4029 Gelber Place - have a pool. The tenant base is typically looking for a residence that is clean, functional, and safe. 

Although the properties are currently 98.5% occupied, the buildings are suffering from deferred maintenance and depressed operations. Crawford Park Financial ("CPF") believes that the current property rents are below market rates, and the goal will be to increase those rents through a capital improvement program that will make the complexes more competitive in the marketplace.

A property overview is available for download below the map on the right side of this page. 

Below are a few before and after pictures from two projects in the same neighborhood that the sponsor recently redeveloped. The "before" pictures are on the left and the "after" pictures are on the right.

Financials
For more information, view the Sponsor's Investment Memorandum.
Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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