cross investments bio

Cross Investments, LLC

A Diversified Real Estate Company

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Cross Investments

Table of Contents

Company Overview

Partial Principal Experience

The Packard Building Page 3

Valley Square Lifestyle Center Page 4

50 Pine Street, NYC Page 5

1500 Walnut Street Page 6

1510/1530 Chestnut Page 7

The Graham Building Page 8

Landmark Apartments Page 9

Village of Windhover Page 10

Westin- Savannah Page 11

Management Team Overview Page 12-14

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Cross Investments

Company Overview: Cross Investments Cross Investments, LLC (“CI”) is a newly-formed real estate investment and development platform created by a team of experienced real estate professionals to take advantage of the exceptional investment opportunities caused by the current turmoil in financial and real estate markets. Without the burden of troubled legacy assets, CI is positioned to acquire both distressed and performing assets and create value through recapitalization, superior operational management and physical improvements to assets that have been starved of investment due to the financial distress of current ownership. Over the last 10 years, the Principals of Cross Investments have acquired, developed and managed over five (5) million square feet of office, retail, multifamily, and hospitality assets throughout the northeastern United States with a total transaction volume in excess of $500 million. The members of the Management Team have extensive direct experience spanning all areas of real estate development, construction, brokerage, finance, and property management. This experience, combined with CI’s market knowledge and strong relationships in the Northeastern United States urban and suburban markets, ensures efficient and effective execution of acquisition opportunities. Company Affiliates and Infrastructure [A Full-Service Real Estate Organization] The Company is fully integrated to provide property management, brokerage, and construction oversight services.

Internal brokerage, through the Company’s wholly owned affiliate, Porter Advisers, assists in generating high-quality deal flow, thereby maximizing acquisition opportunities. It also streamlines the sales and leasing process and provides direct and unbiased access to tenant and market intelligence.

In-house property management minimizes tenant default risk, provides direct control of operating costs, and maximizes both short and long-term income returns.

Direct construction oversight by the Principals allows the Company to mitigate construction risk, control costs and deliver projects in a timely fashion. Furthermore, through its partners, CI’s services include accounting, legal, lease administration and property maintenance.

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The Packard Building – Philadelphia, PA Location: 15th & Chestnut Streets, Philadelphia, PA Description: 400,000 square foot mixed-use residential, office, and retail building Notes:

Predecessor firm purchased a 400,000 square foot, 27-story, Class B historic office building ideally located in the Philadelphia Central Business District

Anchor lease with the City of Philadelphia Public Defenders’ office occupied the lower half of the building, with a new entrance created to segregate this use from the upper floors and ground floor retail space

Upper floors were converted into luxury rental apartments and later sold as individual condominium units

The historic former bank retail space on the ground floor, the mezzanine level, and the basement occupied by Del Frisco’s Steakhouse, a national premium steakhouse concept

Capitalization included a $12 million Federal Historic Tax Credit and utilized a commercial condominium structure to create flexibility in the development process

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Cross Investments

Valley Square Lifestyle Center – Bucks County, PA Location: Warrington Township, Bucks County, PA Description: 400,000 square foot mixed-use development

Notes:

Part of a larger development that includes 1.2 million square feet of retail, office and residential anchored by Wegman’s Food Market

Located at the high traffic intersection of Rt. 611 and Rt. 132 in affluent Bucks County, PA

Lifestyle phase features over 320,000 sf of retail and 80,000 sf of office with Main Street architecture

Grand Opening occurred November 2007. Phase I retail is stabilized. National retailers such as Wegman’s, Borders Books, P.F. Chang’s and Banana Republic anchor the development

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50 Pine Street – New York, NY Location: 50 Pine Street, New York, NY Description: 47,000 square foot, 12-story mixed-use residential building

Notes:

12-story residential building converted to 20 luxury condominium units with ground floor retail

Located in lower Manhattan’s Financial District one block north of Wall Street - one of the City’s fastest growing residential neighborhoods

Property acquired at an attractive purchase price, and overall development costs were quite low for this competitive market

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1500 Walnut Street – Philadelphia, PA

Location: 15th and Walnut Streets, Philadelphia Description: 22-story, 350,000 square foot office building, 160-car parking

Notes:

Opportunistic purchase of a prime Center City B-class office building

Located on the corner of Walnut and 15th Streets in the heart of the high-end Walnut Street shopping district and Restaurant Row

The property’s A+ location, size and layout made for an ideal conversion to multiple potential alternative uses

Within six months of the asset’s purchase, the Property received an unsolicited purchase offer which represented a 2x multiple on invested equity

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1510 and 1530 Chestnut – Philadelphia, PA Location: 1500 Block Chestnut Street, Philadelphia, PA Description: Combined 100,000 square feet mixed-use (student housing and retail) space Notes:

Purchased two 50,000 square feet Class B historic office buildings ideally located in the Philadelphia Central Business District

Strong relationship with the Art Institute secured master leases in both buildings for student housing above the ground floor retail space

Adaptive re-use and complete rehab of vacant office buildings into 50+ apartments and classroom space.

Worked with City, State and National Park Service officials to secure Federal Historic designations on both buildings, thereby enabling the creation of $5 million of Federal Historic Tax Credits

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The Graham Building – Philadelphia, PA

Location: 30 S. 15th Street, Philadelphia Description: 240,000 square foot Class “A” CBD office tower

Notes:

Prime Central Business District location in the Market Street West sub market

Core plus asset purchased by predecessor firm in a joint venture with long time institutional capital partner

CI Principals led improvements in building operations, management and leasing, increasing occupancy from 85% to 92%. Implementation of deferred maintenance to core systems, active oversight of building operations and aggressive collection of overdue receivables generated increased cash flow in excess of $200,000 per annum

Successful implementation of stated strategy by CI Principals led to additional property management mandate from institutional partner for 600,000 sf portfolio in Baltimore CBD

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The Landmark Apartments

Location: 1900 Frontage Road, Cherry Hill, NJ Description: 544 Unit, High Rise Apartment Buildings

Notes:

Market leading $131,000 / unit brokerage transaction, structured debt and equity totaling $187,000 / unit.

Exhaustive marketing to more than 20,000 investors and 56 tours for operators, equity partners and lenders.

Consummated in 2008 as the market declined. Certain New Jersey construction and zoning ordinances became barriers and CI Principals worked through these to mutually beneficial transaction.

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Village of Windhover

Location: 104 Sandburg Place, New Castle County, Delaware Description: $19M Cash Out Refinancing and Value-Add Program

Notes:

Structured financing and value-add repositioning of 384 unit garden apartment complex.

Strenuous transaction as advisor to ownership. Provided market intelligence, staffing recommendations, $6M capital expenditure and schedule, drawn down facility and continued guidance to achieve $110 rent bump goals and revenue benchmarks.

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The Westin Savannah Harbor Resort

Location: One Resort Drive, Savannah, Georgia Description: $55M Performing Mortgage Note Purchase, Buyer Representation

Notes:

Represented national hotel owner/operator.

Leveraged lender and brokerage relationships to discover programmatic decision of lender to jettison certain debt and uncover this off-market opportunity.

LOI to close in 21 days.

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Management Team Overview

Cross Investments is led by a highly experienced management team which has more than 75 years of combined real estate and related experience. Each management team member’s role and experience is summarized below and detailed further in the following pages.

Management

Role

Experience

Contributions/Notes

David Blumenfeld, Esquire President

Acquisitions Financing Legal

25 Significant site selection and development experience

Bachelor’s degree -Northwestern University

J.D. - University of Miami

Member PA and NY State Bar,

Licensed RE Broker- PA and NY

Kevin Michals Principal

Origination Acquisition Strategic Planning Development

15 Directs strategy for acquisitions, development, leasing and property management

Primary source of proprietary deal flow

Arranges debt and equity financing

Rudyard Porter Principal

Origination Financing Deal Management Due Diligence

20

20+ years experience in sales and investment Broker

Power Broker 2008

Over $750 million in transactions

Licensed RE Broker – PA and NJ

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Management Biographies

David Blumenfeld, Esq. – President David’s real estate career spans over 25 years and is part of a multigenerational development family in Philadelphia. David’s experience includes new construction and renovations for apartments, condominiums, independent senior living community, and student housing. Mr. Blumenfeld has completed retail developments, urban mixed-use projects and lifestyle properties. His portfolio acquisition, development and disposition exceed 4 million square feet across all asset classes and over $500 million in transactions. David was also instrumental in structuring and investing a $35+ million Real Estate Equity Fund. David is a member of the Pennsylvania and New York Bar and holds a Pennsylvania Real Estate Broker’s License. Mr. Blumenfeld earned his Bachelor’s degree from Northwestern University and his Juris Doctorate from the University of Miami. Kevin Michals – Principal Kevin has over 15 years experience in investments and capital placement. Kevin has been closely involved in real estate transactions that span millions of square feet, valued at hundreds of millions and across all asset classes. His experience includes fund raising, acquisitions, structuring financing (debt and equity), tax credits, leasing and property management. Prior to real estate, Mr. Michals was a successful financial adviser in San Francisco helping manage hundreds of millions of dollars for Silicon Valley executives and Napa Valley winery owners. Kevin sold his practice in 2004 to focus on real estate investments. Kevin graduated cum laude with a degree in accounting from the University of Illinois- Champaign Urbana.

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Rudyard Porter – Principal Rud has been involved in investment sales for nearly a decade with cumulative transaction volume that exceeds $750 million, including nearly $230 million in notes sales in 2009 alone. Rud was awarded a 2008 CoStar Power Broker award for market-leading transactions. Mr. Porter is a licensed real estate broker in 2 states and president of Porter Advisors, LLC, a transaction-oriented firm selling assets and placing equity. He has represented private and institutional property owner’s interests as well as banks and insurance companies in sales of their real estate assets. Prior to real estate, Rud spent nearly 20 years with Medtronic, Inc., a world leader in medical device technology. He consistently ranked as a top sales producer and lead sales and marketing teams in Asia as Director of Market Development for Emerging Markets, based in Hong Kong.

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Cross Investments

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Cross Investments

cross investments bio

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