Guterman Real Estate Partners-47, LLC Investor Portal

Guterman Real Estate Partners-47, LLC

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Guterman Real Estate Partners-47, LLC

Overview and Terms

  • Sponsor Investment in Partners-47: Sponsor has determined that it will purchase up to Ten Million ($10,000,000) Dollars of Series A Preferred Limited Liability Company interests.
  • Partnership Size: up to Three Hundred Million ($300,000,000) Dollars
  • Targeted Property Investment Period: 3 – 5 Years
  • Targeted Opportunity Zone Property Investment Period: 10 - 11 Years
  • Investment Profile: Series A Preferred Limited Liability Company Interests
  • Minimum Investment: $30,000 exclusively for individuals
  • Minimum Investment: $500,000 for Pension Funds, Investment and Hedge Funds, REITs and Family Offices
  • Partners-47 Property Types: Condominium Convertible; Multi-Family Residential, Medical Office and Retail Centers as well as Bulk Purchase of Developer, Converter and Speculator Owned Condominiums
  • Strategy: To purchase high quality, investment grade, multi-family rental properties as well as office and neighborhood retail properties and Bulk Purchases of Developer and Speculator Owned Condominiums, currently experiencing management, financing, legal and/or cash flow problems.

    To thereafter convert the rental properties to condominium ownership and resell each “separate part” (individual apartments, bulk purchase properties, offices, retail stores, roof antennas, vending machine areas, laundry rooms and parking garages or individual parking spaces if within a high rise building) by the square foot, for retail prices not constrained by the usual investor limitations. 
  • Partners-47 Management Fee: -0-
  • Guterman Partners Fund / Partnership Management Fees Billed and Collected Since 1969: -0-
  • Partners-47 Administration: Independently Administered by Redwood Real Estate Administration, LLC
  • Partners-47 NSCC-AIP Number: 00003994
  • Partners-47 Clearing Through: Depository Trust and Clearing Corporation
  • Partners-47 Legal Counsel: Duane Morris, LLP
  • Partners-47 Board of Directors Investor Members Three
  • Partners-47 Board of Directors Sponsor Members: Four
  • Partners-47 Major Decisions: At least two Investor Board Members
  • Partners-47 Operating Decisions: Simple Majority as required
  • GUTERMAN PARTNERS charges no fees for the management of any partnership or fund.

    Most importantly, One Hundred (100%) Percent of the Sponsor’s portion of the distributable proceeds are “subordinated” to the return of; One Hundred (100%) Percent of the stated Cumulative Annual Priority Return, calculated from the date of the Member’s original investment, until 72 hours prior to their receipt of all priority returns together with the full One Hundred (100%) Percent of the Members Original Capital Contributions
  • Partners-47 Distribution Period: Cumulative Annual Priority Return (“CAPR”)
    • Level of CAPR Based Upon Investment Amount (1) :
    • Investment Amounts Reserved Exclusively for Individual Investors:
      •   $30,000 - $124,999 – 7%
      • $125,000 - $499,999 – 8%
    • Investment Amounts Open to Individuals, Pension Funds, Investment and Hedge Funds, REITs Family Offices:
      •    $500,000 -    $999,999 – 9%
      • $1,000,000 - $4,999,999 – 10%
      • $5,000,000 -                      – 12%
    • Investor Targeted Condominmium Conversion IRR (2)(3) :
      •     $30,000 -     $124,999 – 42-44%
      •    $125,000 -    $499,999 – 45-47%
      •    $500,000 -    $999,999 – 48-50%
      • $1,000,000 - $4,999,999 – 51-53%
      • $5,000,000 -                      – 54-58%
  • (1) To the extent that Partners-47 does not pay the full amount of the cumulative annual preferred return, such unpaid amount shall accrue and be paid in its entirety, together with the full amount of the capital contribution, prior to any distribution to the Sponsor.
  • (2) The Targeted IRRs are based on the Average Annual Returns generated by the Condominium Conversion exit strategy followed between the years 1978 and 2017, with the same exit strategy followed for Guterman Real Estate Partners-47, LLC.
  • (3) There can be no assurance that any such targeted IRRs set forth hereinabove will be attained, and actual results may significantly differ from the targeted IRRs.
Distribution Waterfall
  • Distributable Cash from Operations:
    • First: To Series A Preferred Members until each has received an amount equal to 100% of his, her or its unpaid CAPR; then
    • Second: To Series A Preferred Members until each has received an amount equal to 100% of his, her or its unreturned Capital Contribution; and
    • The remaining balance, if any, 50% to the Preferred Member and 50% to the Sponsor.
  • Distributable Cash from Capital Transactions:
    • First: To Series A Preferred Members until each has received an amount equal to 100% of his, her or its unpaid CAPR; then
    • Second: To Series A Preferred Members until each has received an amount equal to 100% of his, her or its unreturned Capital Contributions; andd
    • The remaining balance, if any, 50% to the Preferred Member and 50% to the Sponsor.
  • Distributable Cash from Refinancing Transactions:
    • First: To Series A Preferred Members until each has received an amount equal to 100% of his, her or its unpaid CAPR; then
    • Second: To Series A Preferred Members until each has received an amount equal to 100% of his, her or its unreturned Capital Contribution; and
    • The remaining balance, if any, 50% to the Preferred Member and 50% to the Sponsor.

Guterman Real Estate Partners-47, LLC

Track Record of Guterman Partners

  • MULTI-FAMILY RESIDENTIAL PROPERTIES (Held for Investment)
    • Apartments acquired for Investment: 18,663
    • Apartments held for Investment by square feet: 18,103,110
  • MULTI-FAMILY RESIDENTIAL PROPERTIES (Converted to Condominium)
    • Apartments acquired and converted to condominium ownership: 16,028
    • Apartments acquired and converted to condominium ownership by square feet: 15,547,160
  • CONTRACT MANAGEMENT - UNAFFILATED PROPERTIES (held three years or greater)
    • Unaffiliated apartments / operational asset and property management: 61,106
    • Unaffiliated square feet / operational asset and property management: 60,189,140
  • TOTAL SQUARE FEET UNDER OPERATIONAL ASSET AND PROPERTY MANAGEMENT:  98,496,810
OPERATING HISTORY SUMMARY
  • MULTI-FAMILY ACQUISITIONS AND CONVERSIONS
    • Acquired and Operated eighteen thousand five hundred fifty-three (18,553) apartments in fifty-five multi-family communities (including approximately 8,000 “Special Assets-REO” apartments), located in 14 states.
    • Acquired, Operated and Converted, sixteen thousand twenty-eight (16,028) Apartments, including twelve thousand five hundred six (12,506) Apartments in the Greater New York Area, and three thousand five hundred twenty-two (3,522) additional apartments in nine (9) other states.
    • Operated three hundred five multi-family residential communities containing over seventy-eight thousand (78,000) apartments including approximately eleven thousand (11,000) limited income and tax incentive apartments located in 14 states.
  • MULTI-TENANT OFFICE AND HOTEL PROPERTIES
    • Planned, organized, negotiated and acquired, the largest single portfolio of office properties and hotels (Patriot American Investors) in the history of the Federal Deposit Insurance Corporation (“FDIC”), as well as separately owned office and hotel properties, containing more than three million four hundred fifty thousand (3,450,000) net rentable square feet, together located in eight states. Thereafter the FDIC portion of the office properties became known as Mack-Cali Real Estate Investment Trust and the FDIC portion of the hotels became known as Wyndham Hotels and Resorts.
  • CONSTRUCTION
    • Owned and operated two nation-wide construction companies:
    • Titan Group, Ltd and Sovereign Construction Co. Ltd.
    • Historical projects include;
      • Cleveland Hopkins Airport, Cleveland, Ohio
      • New York’s Roosevelt Island Development and Housing, New York, New York
      • United States Gold Depository, Fort Knox, Kentucky
      • United States Military Academy, West Point, New York

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Guterman Real Estate Partners-47, LLC, a Florida limited liability company (“Partners-47”) is managed by Guterman Companies-47, LLC, a Florida limited liability company (the “Manager”). Partners-47 was recently established on May 3, 2018, by Guterman Holding Partners-47, LLC (the “Sponsor”) to realize gains and generate returns through Partners-47’s purchase and operation of high-rise residential and garden apartment communities, multi-tenant office buildings and mixed-use properties. Partners-47 anticipates holding properties from approximately three to five years, with the possibility of as much as seven years, depending on the then current, changing and future demographics affecting the strength of the specific and general area, as well as local rental and ownership markets. Partners-47’s operations will be based on and strategies set forth by the Sponsor.

In addition, Partners-47’s acquisitions and operations are anticipated to be consistent with our expected goal of delivering investments that are intended to provide Partners-47’s Series A Preferred Members with their applicable cumulative annual priority returns (“CAPR”), as well as the return of their capital contributions and certain additional distributions, which are anticipated to be realized at the time of sale, conversion, or refinancing (a “Capital Transaction”).

Partners-47’s investment strategy will be based on the Sponsor’s original guidelines, first developed by the principals of the Sponsor in 1971 and continuously modified and updated, to reflect constantly changing circumstances. However, the year 1978 has perhaps been most important year in the principals’ history to date. 1978 is the year when the principals of the Sponsor began their first venture into an exit strategy that utilized the conversion of rental properties, into separate and specific, individual ownership of the “Parts” of each property, by separate, individual, unrelated owners.

Parts include: individual apartments; retail stores; offices; vending machine concession areas; laundry rooms; corporate service antennas; roof top signs; parking spaces and parking concessions; as well as others, as determined by the Manager.

This exit strategy, which the Manager intends to be a significant and important part of the exit strategy for all Partners-47 properties, has previously been one hundred percent (100%) successful for the principals and affiliates of Partners-47 for one hundred (100%) percent of their conversions from rental to cooperative and or condominium ownership.

The expected price that Partners-47 will pay for currently existing, income producing properties, is based on free and clear, cash on cash returns at the time of purchase. However, when sold, the properties will be broken up by residential, retail, office, individual parking spaces or full area commercial parking concessions and type 2 commercial space (laundry rooms, vending areas, antennas, etc). The property is broken up in this manner because residential portions of a property are thereafter generally sold for personal occupancy and commercial areas are sold for direct private business ownership. Pricing is generally irrelevant to existing cash on cash returns as a rental.

As the principal of Sponsor’s experience has previously demonstrated the profit spread on conversions can be substantially higher than is realized with new development properties. Any portion of a property that remains unsold automatically continues as a cash flowing rental property, which the Sponsor and Manager believes eliminates a significant portion of uncovered risk.

Guterman Real Estate Partners-47, LLC

Company Management Team

Partners-47 through its Manager is managed by seasoned business professionals with extensive business and real estate sector experience. The management team is dedicated to the success of Partners-47 and to maximizing the investment performance of the real estate assets to be acquired. Partners-47 will begin operations under the management and control of the six members of Guterman Companies-47, LLC (the “Manager”).

Gerald Guterman

Gerald Guterman

Senior Principal Partner, Chief Executive Officer

Gerald Guterman is a “hands-on” pragmatic, investment, finance and operational management executive and team leader, with a long term, continuously successful track record.

Mr. Guterman’s background includes: limited income; market rate and luxury high-rise multi-family rental buildings; garden apartment residential communities; multi-tenant high-rise and garden office buildings; mixed use developments; and full-service hotels, throughout the United States.

As Senior Principal Partner of his firm, Mr. Guterman directs acquisitions and participates in all final decisions.

Mr. Guterman has spent over forty (40) years owning, investing, developing and converting real estate assets. Mr. Guterman is the only New York historical rehabilitation sponsor, whose grand openings of award-winning landmark building restorations, including the famed Stanhope Hotel, Fifth Avenue, Manhattan, New York, The Parc Vendome, West 57th Street, Manhattan, New York and Gramercy House, East 22 Street, Manhattan, New York, were sponsored by the New York City Landmarks Commission, under the direction of Mrs. Brooke Aster and Mrs. Jacquelyn Kennedy Onassis. Mr. Guterman has also directed operations of two nationwide construction companies: Titan Group, Ltd and Sovereign Construction Co. Ltd.

In additional, Gerald Guterman is well known for his deep and continuing interest in education, as well as his active and continuing participation in charitable work.

Edward P. Weinman

Edward P. Weinman

Senior Principal Partner, Chief Operating Officer

Edward Weinman attended CW Post, where he graduated Cum Laude in 1967, with a Bachelor of Science Degree in Psychology and in 1974, from Colombia University with a Master’s Degree in Industrial Psychology. After graduation, he became a Vice President of Residential Management for Rose Associates. In 1979, Edward Weinman joined Gerald Guterman’s Ahrens Barrell Management Group and thereafter became the Executive Vice President and Chief Operating Officer of Guterman Partner’s Hanover Companies, a publicly traded company. He continued his relationship with Gerald Guterman and is a Senior Principal Partner of Guterman Partners. Mr. Weinman serves as Senior Operating Officer, Asset and Property Management.

Mr. Weinman has been a Guest Speaker at New York University, as well as the Institute of Real Estate Management, NYC Housing and Urban Development Agency, the Joint Purchasing Corporation of NY and Realty Views, the Manhattan Cable Television show.

He has provided asset management consulting services for multi-family rental apartment properties, as well as condominium associations and cooperative corporations and is an active participant with civic and charitable non-profit organizations, including Schools and Hospitals. Mr. Weinman served as a member of the Board of Directors, of Brooklyn Community Housing Services, the non-profit Children’s Shelter.

Jonathan J. Miller, CRE, CRP

Jonathan J. Miller, CRE, CRP

Senior Principal Partner, Senior Officer, Demographics and Comparative Analytics Group

Jonathan Miller is a state-certified real estate appraiser in New York and Connecticut, performing court testimony as an expert witness in various local, state and federal courts. He holds the Counselors of Real Estate (CRE) and Certified Relocation Professional (CRP) designations. He is an Appraiser “A” Member of the Real Estate Board of New York and the President of RAC, a premier appraisal organization whose members focus on complex residential properties for relocation, litigation support, testimony and reviews. He is Senior Principal Partner of the Demographic and Comparative Analytics Group at Guterman Partners, LLC and the President and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm he co-founded in 1986.

Mr. Miller is an Adjunct Associate Professor of Architecture, Planning and Preservation in the Master of Science in Real Estate Development (MSRED) Program at Columbia University teaching Market Analysis. Mr. Miller is also a New York State Real Estate Instructor for both qualifying and continuing education courses as well as a New York State Real Estate Appraiser Instructor for both qualifying certified general and continuing education courses.

Mr. Miller is also real estate commentator, covering U.S. and regional housing issues in print and digital media including The New York Times, Bloomberg, The Wall Street Journal, Reuters, AP, CNBC, CNN, ABC, The Real Deal, Crain’s New York Business and others.

Barry Manson

Barry Manson

Senior Principal Partner, Senior Officer, Chief Legal Officer

Barry Manson graduated Queens College (B.A./1956) and, after spending four years in the U.S. Air Force, graduated New York Law School (B.L./1967). Mr. Manson was a Deputy Commissioner in the New York City Housing Development Administration under Mayor John Lindsay (1968-1970). Mr. Manson joined Mr. Gerald Guterman in 1978 as General Counsel, Chief Legal Officer and Vice President of Gerald Guterman’s Hanover Companies Inc., a publicly listed company, and affiliate of Guterman Partners, the largest converter of rental properties to cooperative and condominium ownership in the United States. In addition to representing Guterman Partner’s interests Mr. Manson is currently outside counsel to nine (9) cooperative and condominium boards located in Nassau, Suffolk and Queens Counties.

Craig Eastmond

Craig Eastmond

Senior Partner, Senior Officer, Investments and Financial Analysis

Mr. Eastmond was born in Brooklyn in 1963. He graduated Magna Cum Laude with a BBA in accounting from Baruch College and served honorably in the United States Marine Corps.

Mr. Eastmond has over twenty-five years of commercial real estate experience, beginning his real estate career as an associate with EY/Kenneth Leventhal’s Real Estate Group, the preeminent real estate accounting/ consulting firm. During his tenure, he provided financial modeling and quantitative analysis, as well as property level underwriting, due diligence and valuation services to clients such as Goldman Sachs, GE Capital, Chase and Royal Bank of Canada.

He was a Senior Vice President in charge of the Northeast Region of Deutsche Bank’s CMBS division, with signature authority of up 50 million per transaction, and a Managing Director at United Realty Capital, the merchant banking arm of the public non-traded REIT, United Realty Trust, Inc. During his career, Mr. Eastmond originated, underwrote and executed over $750 million of commercial real estate arbitrage transactions as well financing for over $1 billion of commercial real estate, with signature authority for up to $50 million dollars per transaction and separately, acted as an advisor for over $5 billion of commercial real estate related investments. Mr. Eastmond has served as a volunteer with the Thurgood Marshall Mentors, Bronx Students & Scholars and the Caribbean Medical Mission.

Conor Melville

Conor Melville

Partner, Senior Officer, Rehabilitation and Construction Group

Conor Melville graduated from Quinnipiac University in 2001 with a BA in Business Management. Almost immediately thereafter, Mr. Melville began working at Guterman Partners LLC. Mr. Melville is now a Partner and head of all ground up and rehabilitation construction activities for Guterman Partners. He has successfully developed and/or constructed and stabilized over fifteen hundred (1500) condominium apartments, totaling over one and one half million (1,500,000) square feet of residential space in Florida, Mississippi, Rhode Island and Alabama. Mr. Melville is currently completing several new residential subdivisions as well as renovating and repurposing Historic Assets for use as multifamily luxury rental housing.

Guterman Real Estate Partners-47, LLC

Our Investment Process

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Guterman Real Estate Partners-47, LLC 506(c) utilizes an online portal to provide prospective investors with detailed information about the investment partnership. After you complete the registration, we are able to approve your profile and you will have:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering. Download a PDF to review on your time, read the ebook presentation online or request a hard copy of the documents;
  • Access to our SEC filing. Download a copy for your records or visit the sec.gov website;
  • View real time offering metrics of where we are in the offering process;
  • View the timeline of where you are in the investment process;
  • View company contact information and send emails directly to the administrator;
  • Easily request investor-level access through the click of a button.

We will upgrade your account receive ‘Investor’ level access, which adds:

  • The ability to download subscription documents for completion;
  • Document upload of subscription and accreditation documents;
  • Specific process information for investing and instructions on transfer of investment funds;
  • Access to quarterly and annual reports;
  • Access to Financial documents;
  • Access to Supporting Documents;
  • Access to Asset Portfolio;
  • Access to News articles written by the company for the investors;
  • Access to documents that you have uploaded and have been uploaded to your account.
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Ready to learn more about our investment opportunity?

Contact Us

Please complete the contact form and we will get back to you about any questions you have about our offering.

Guterman Real Estate Partners-47, LLC

8983 Okeechobee Boulevard Suite 202

West Palm Beach, FL 33411

info@thepartners-47.com

For Company and Strategy Inquiries

Adam Manson

Vice President, Investor Services

am@thepartners-47.com

917-570-2100

For Company and Strategy Inquiries

Michael Guterman

Senior Director, Investor Services

mpg@thepartners-47.com

646-417-0635

For Document Inquiries

Michael Guterman

Investor Intake Director

a href="mailto:mpg@thepartners-47.com" style="color:#FFF; border-bottom:1px solid #FFF; font-size:1.2em; font-weight:300; font-family:'Lato Light';">mpg@thepartners-47.com

646-417-0635