Real estate investments involve risk. Economic and market forces and unforeseen costs may adversely affect the ability of an investor to recoup its initial investment. Consequently, only an investor that can afford to lose its entire investment should consider the investments offered by SKB. Funds invested with SKB should not be invested for such purposes as emergency savings, home purchase, education funding, dependent care, safety of principal, or any short-term purpose.
Other risks associated with an investment in real estate include limited transferability of membership interests, illiquidity, uncertainties relating to the financial analysis, risk of members' capital, risk of leverage, financing risks, income/operating risks, environmental risks, reliance on third party management companies, absence of regulatory oversight, construction risks, capital expenditures which are not offset by cash flow, constructions risks, lack of fund operating history, cash flow, potential conflicts of interest, overbuilding of properties in competitive locations, uninsured and under insured losses, tax liability not limited to distributions, changes in tax laws, uncertain ability to meet capital needs.
This is not an offer to sell or a solicitation to buy. The Private Placement Memorandum for each investment opportunity contains more complete information, including a full explanation of all the risks associated with investing. Please read it carefully before investing.
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THANK YOU FOR YOUR INTEREST IN SKB
Unfortunately, we are unable to work with you at this time. By definition an accredited investor is an individual who had "individual income" in excess of $200,000, or joint income with that individual's spouse in excess of $300,000, in each of the last two calendar years and reasonably expects to reach the same income level in the current calendar year.
If you fit this criteria please click here to register.
SKB is regulated by FINRA (Financial Industry Regulatory Authority) and is limited to working with accredited investors only. Should your accreditation status change, we welcome you to visit us again to set up an account.
Whether you are new to real estate investment or familiar with the process, we recognize you may have questions about investing with ScanlanKemperBard. Below are some of the most frequently asked questions we receive.
If you don't see the question or answer you are looking for here, please reach out to our investor relations team directly by contacting Jennifer Engelman at 503-552-3528 or email Investor Relations at firstname.lastname@example.org.
ScanlanKemperBard (SKB) is a real estate merchant banking company founded in 1993 in Portland, Oregon (www.skbcos.com). SKB has acquired some 28.1 million square feet of office, industrial, retail and residential real estate totaling $4.12 billion in asset value, including over $1.43 billion of equity invested. The company has accredited investors from 32 states whose equity investments have ranged from $25,000 to $20,000,000, with high-net-worth and family offices typically investing from $100,000 to $500,000 per transaction. Institutional equity investments in SKB joint ventures have ranged from $10 million to $100 million per transaction.
To invest with us, you must be an accredited investor. As defined by the Securities and Exchange Commission (SEC), individuals must have income of over $200,000 per year ($300,000 per couple) and the expectation that it will continue, or a net worth of $1,000,000, not including the value of your primary residence.
The SEC acts to limit private placements of securities to investors who are sophisticated and are capable of appreciating the risks of investing. The earnings and net worth minimum requirements also help mitigate the possible total loss of investing in illiquid opportunities such as real estate.
The investment period varies depending on the investment profile. Loans can range from 6 months to 3 years, while equities can range from 1 to 10 years. SKB’s average equity holding period has been 3.3 years.
You can begin investing with ScanlanKemperBard within 14 to 30 days. The waiting period is required by the SEC and FINRA regulations and is to protect investors from acting without understanding the risk, a policy that ScanlanKemperBard adheres to.
Our real estate investment opportunities have been underwritten by ScanlanKemperBard, and usually an institutional partner, and meet our standards for inclusion on our site. Each investor must do their own due diligence on any specific opportunity before making a decision to invest in it, including reading the complete sponsor-issued information memorandum.
Distributions depend on the type of investment, amount of leverage and other factors. Normally, if cash flow permits, we make distributions quarterly. We encourage you to read the Distribution section in the Investment Memorandum carefully, as most SKB real estate investments don’t anticipate making regular distributions and none are guaranteed.
Most real estate equity investments do not schedule or plan capital calls. However, if funds are required for an unexpected need, there will be provisions for how an unexpected capital call will be treated by the sponsor. There will also be an explanation of how the capital call will affect the investor’s dilution of the investment if the investor chooses to not make its pro rata share of the capital call.
The LLC was created to replace the Limited Partnership (LP) though LPs are still used. “Limited” is the operative term. That is, as a limited liability member of an LLC, you are not liable for anything beyond your initial investment—regardless of the amount of debt the investment incurs. Governance is determined by an Operating Agreement and typically includes a designated Operating Manager (who is often a member) and limited members. The Operating Manager typically makes all day-to-day operating decisions, but major decisions (e.g., when to sell, refinance, etc.) usually require the members to vote. Members can typically remove the Operating Managing member for cause.
Investing in an SKB LLC takes full advantage of investing “on-line” and reduces processing time and cost for the sponsor (SKB). This makes reporting, distributions and tax matters more efficient, and allows us to make more opportunities available for investment.
Transmitting $50,000 or more (SKB’s minimum investment amount) requires the use of a wire transfer. Specific wiring instructions, including escrow account number, will be provided by SKB for each investor.
You will receive a K-1 each year for each equity investment you have, which you can use when preparing your tax return. These will include any profits, losses or depreciation associated with the investment. ScanlanKemperBard does not offer tax advice, so please consult with your tax advisor before making any investment decision.
As with all corporate entities, bankruptcy is a possibility. In this case, the court would determine the outcome for all concerned. ScanlanKemperBard will not be the specific investment sponsor or asset manager nor will we hold any investor’s funds or investments. As a result, none of our investors’ funds or investments would be at risk. SKB would facilitate arranging any necessary replacement third-party services to the extent necessary to service any transactions.
Yes, SKB specializes in bridge loans, typically ranging from 12 months to 3 years, with interest-only balloon payments at maturity. The funds may be used for commercial purposes other than real estate, using real estate as collateral.