Frequently Asked Questions

Common questions and answers surrounding commercial real estate investments.

About American Landmark Properties

SHOW/HIDE

Who is American Landmark Properties?

American Landmark Properties is a real estate investment group with a more than 30-year track record of delivering consistently strong returns to its investors. Over the past 20 years we have purchased more than 15 million square feet of commercial real estate and raised more than $213 million in real estate capital. What separates us from other firms is our strategic acquisition, development and management capabilities which leverage our combined 100-plus years of commercial real estate experience.

Our skills and expertise include syndication, financing, leasing, sales and marketing, repositioning, renovation property/asset management, and disposition.

Who founded American Landmark Properties?

The company was founded in 1986 in Skokie, Illinois, by Yisroel Gluck, the firm’s president. Yisroel Gluck’s real estate career began in 1972. He has more than 40 years of experience specializing in real estate syndication, acquisition, development, rehabilitation, and financing. As a real estate entrepreneur, Yisroel Gluck has concentrated primarily on the conception and implementation of rehabilitation and renovation programs for office and industrial properties.

Who makes up American Landmark Properties?

We have a team of professionals with experience in real estate, finance, construction, and marketing located in Skokie and our properties in the United States.

What is the firm’s investment focus?

Our strategic acquisition philosophy is to seek and acquire value-add and opportunistic mid-cap office, industrial, and multifamily properties in the Midwest and East Coast. Our management structure is streamlined to allow timely decision-making. When unique opportunities are presented, we act!

How much money has been raised by American Landmark Properties and invested in real estate?

To date, more than $213 million has been raised and invested in properties valued at over $1.4 billion.

General Investor Questions

SHOW/HIDE

Can anyone invest in American Landmark Properties real estate investments?

Currently, any accredited investors can invest with American Landmark Properties. An accredited investor is a term defined by the U.S. Securities and Exchange Commission (SEC) under Regulation D, Rule 501. An investor must accomplish at least one of the following in order to qualify as accredited:

  1. Earn an individual income of more than $200,000 per year, or a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income.
  2. Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
  3. Be a bank, insurance company, registered investment company, business development company, or small business investment company.
  4. Be a general partner, executive officer, director, or a related combination thereof for the issuer of a security being offered.
  5. Be a business in which all the equity owners are accredited investors.
  6. Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.

What is the minimum investment amount?

Minimums may be as low as $50,000 per investment, depending on the size of the capital raise. There is no standard minimum across all investments. Minimums will be clearly disclosed on the individual offering page.

What is a preferred return?

A preferred return is a return paid to investors before a sponsor receives any share of the cash flow. The preferred return can be paid out on a monthly, quarterly, or yearly basis depending on the specific terms of a deal.

What is the typical preferred return for American Landmark Properties?

American Landmark Properties real estate investments typically pay a regular 8% disbursement annually. There is a 70/30 gains split at the time of the asset sale, with investors receiving the 70% share according to their ownership stakes.

How long is the investment period?

The investment period varies widely depending on the type of investment. American Landmark Properties equity investments can range from five to more than 10 years. Please review the expected hold period for each investment before making an investment.

What is meant by a passive real estate investment?

In a passive real estate investment, the investor makes an upfront capital investment as an equity-based vehicle and then receives an ownership stake in that investment. From this, the investor is paid dividends or other types of regular income that is somewhat automated. American Landmark Properties real estate investments typically pay a regular 8% disbursement annually and then split gains at the time of the asset sale 70/30, with investors receiving the 70% share according to their ownership stakes.

How is this type of real estate investment different from a Real Estate Investment Trust (REIT)?

When investing in a REIT, most investors have little to no information regarding actual properties the REIT invests in and cannot select their own investments. With American Landmark Properties, investors can invest in individual properties, giving added transparency and control over the investment process. In addition, REITs are such large entities that they can rarely participate in many of the opportunistic mid-market investments that American Landmark Properties typically finds — both on- and off-market.

Are real estate investments secure?

Although no investment is guaranteed, one benefit of investing with American Landmark Properties is that you are investing in physical assets around the United States. Your investment is in an actual property as opposed to a stock, bond or other non-physical asset.

Are real estate investments risky?

Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change.

Can I purchase real estate as a self-directed IRA investment?

You can buy real estate in your IRA, Roth IRA, or other retirement account as a means for asset diversification outside of traditional stocks, bonds and mutual funds. However, you must establish a self-directed IRA (Roth or regular), which may mean setting up a limited liability company or other entity to hold the assets.

Self-directed IRAs that focus on real estate investments are often referred to as "Real Estate IRAs." With a Real Estate IRA, your retirement funds can invest in all kinds of real estate and real estate-related assets.

In a Real Estate IRA, the property becomes an asset of your IRA. This means your IRA owns it. You do not own it, personally.

American Landmark Properties Investments

SHOW/HIDE

What type of real estate investments does American Landmark Properties typically make?

The American Landmark Properties business strategy is to own and operate a portfolio of high-profit, commercial real estate investments in the United States. We seek to acquire high-quality value-add and opportunistic office, industrial, and multifamily assets. We then improve our properties through hands-on management and targeted capital improvement initiatives.

What makes American Landmark Properties different from other commercial real estate investment firms?

Our mission is the creation of maximum returns and growth for our investors. These goals are accomplished through an experienced and streamlined management team and their entrepreneurial approach, superior real estate knowledge, hard work, and resourcefulness. Investing our own capital alongside our investors ensures our interests are aligned. And because we are directly and proactively involved in the acquisition, financing, operation and marketing of all of our properties, our investments outperform the competition.

What has been the historical return for an American Landmark Properties investment?

Over our 30-year history, American Landmark Properties has delivered an average IRR of 26.4%. Investors are typically entitled to a share of the cash flow from rents as their preferred return as well as a share of the proceeds when the property is eventually refinanced or sold. The hold period for an historical American Landmark Properties investment has ranged from 5–10 years. However, past performance does not guarantee future results.

How will my investment cash flow allocations be distributed?

Investors who invest in equity typically receive monthly distributions. Usually we will send distributions and cash flow income to the same bank account that the investor provided for their original investment. However, we can also accommodate changing a distribution bank account by request. We ask for bank information that will allow for monthly or quarterly standard ACH transfers. Distributions are never guaranteed in amount or timing and you should carefully read the offering documents on the specific deal you are interested in to fully understand projected distributions and what risks are involved.

Are there any fees associated with making investments with American Landmark Properties?

American Landmark Properties does not charge its investors any initial one-time or monthly management fees. Operating costs of the company are recouped through acquisition, refinance, and disposition fees — which vary slightly with deal type and size. There are no fees to set up an account with American Landmark Properties.

Are American Landmark Properties investments liquid?

No. Our real estate investments are private transactions in physical properties around the United States. These passive investments are not traded on public stock exchanges and cannot be easily sold or traded. In a passive real estate investment, the investor makes an upfront capital investment as an equity-based vehicle and then receives an ownership stake in that investment, from which the investor is paid dividends or other types of regular income that is somewhat automated. When the property is sold, a final distribution of the sale’s profits is made.

When will I get my investment back?

Different properties have different expected hold periods. A hold period is the anticipated time that investors will be involved with the investment until the underlying property is re-sold. It is important to read the offering documents for each investment opportunity for a deeper understanding of the hold period for each investment. Hold periods are always subject to change based on current market conditions.

How are American Landmark Properties investments typically structured?

Investors are typically purchasing shares in an American Landmark Properties Limited Liability Company (“LLC”) that in turn invests into an LLC or Limited Partnership (“LP”) that holds title to the real property.

Tax Questions

SHOW/HIDE

What is a K-1?

Similar to a 1099, a K-1 form is an accounting of the tax income from a real estate investment for the year. Each investor receives one K-1 form per investment. K-1 forms are most commonly used with real estate partnerships and real estate LLCs. When you invest in membership shares of an LLC you are generally taxed as a partner in a partnership. Although the partnership generally is not subject to income tax, you may be liable for tax on your share of the partnership income, whether or not distributed. Form K-1 is used by a partnership to report your share of the partnership's income, deductions, credits, etc. Include your share(s) on your tax return if a return is required. The partnership files a copy of Form K-1 with the IRS.

When will my K-1 be available?

We anticipate that your K-1 package will be available in your dashboard on our site on or around April 1st. Once your K-1 package is available you will receive a notification on your dashboard and via email. Please realize that because of the structure of our investments, we often are waiting for tax information from other parties. This may result in unanticipated delays and, accordingly, we cannot guarantee that you will receive your K-1 package before April 15th. Please be assured that every effort on our part will be made to ensure that we generate K-1s as timely as possible.

My K-1 shows income. How is it taxed?

Your K-1 may show income that relates to (among other things): (1) interest income; (2) net rental real estate; or (3) gains from the sale of real estate. Interest income is considered portfolio income and will typically be taxed at your marginal tax rate. Net income from rental real estate is also taxed at your marginal tax rate, but is subject typically to passive activity rules. Capital gains will be taxed at rates of 15% to 20% depending on your tax situation. The taxation of different categories of income is an important issue to taxpayers. Make sure that you discuss these classifications with your tax advisor.

Do I have to file a state tax return?

As a general rule, if an entity has an equitable interest in real property in a specific state, that state will subject the partners to taxation (assuming that state imposes income tax). Accordingly, when you invest in an American Landmark Properties equity investment opportunity, that state will typically tax you and it does not matter what state you reside in. If a state imposes a state income tax, withholding and filing requirements are typically done under the following scenarios:

  • No state withholdings are made by the partnership and the individual partners are required to file state tax returns and to pay income tax on their respective share of the partnership income.
  • The partnership withholds state income tax on behalf of the partner and remits it to the state. This withholding is then reflected on Form K-1 and the partner is responsible for filing the required tax forms.
  • The partnership withholds, remits, and files all information with the state and the individual partner is not required to file or pay anything. This is called a composite or group filing.
  • State filing requirements are complex. We strongly recommend that you discuss your state filing requirements with your tax professional.

Will income tax be withheld for foreign investors?

According to the Chambers Global Practice Guides: Real Estate 2017, The United States imposes federal income and withholding tax on income derived by non-US persons from real estate located within the United States. State and local jurisdictions frequently impose income or franchise tax on such income as well. In addition, a variety of other state and local taxes can apply to real estate transactions in the United States, including transfer taxes, mortgage recording taxes, and rent taxes (or sales taxes on rental income), as well as property taxes. Depending upon the ownership structure, estate and inheritance taxes - at the federal as well as at the state level - can also apply following the death of a non-US owner of US real property.

The specific income tax treatment of US real estate depends upon a number of considerations, including:

  • Whether the income is considered to be business income (e.g., income that is “effectively connected” with a trade or business in the United States) or investment income (also known as “fixed and determinable, annual and periodical” income, or “FDAP”);
  • Whether the property is held by the non-US person directly, indirectly through a tax-transparent or pass-through entity (such as a partnership), or through a US entity that is taxed as a corporation (a “blocker”);
  • The nature of the income (e.g., rental income as opposed to gain from the sale of real property);
  • The type of non-US investor (e.g., corporation, individual, partnership, trust, estate, tax-exempt pension fund, government entity, etc.); and
  • The availability of a tax treaty between the United States and the applicable foreign jurisdiction.

Make sure that you discuss these classifications with your tax advisor.