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.