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Multifamily Companies Combine

Crossbeam Capital and Concierge Asset Management Merge Creating Crossbeam Holdings, Nationwide Investment Fiduciary with Vertically Integrated Property Management, Redevelopment, Operating Expertise

Partnership Last Year Made Seven Acquisitions in 2010, Five in December Alone

Two Seasoned Institutional Investors Recognized Their Synergies, Compatibilities

BETHESDA, MD January 24, 2011--Crossbeam Capital LLC, an institutional real estate investment fund manager, has merged with Concierge Asset Management, LLC, a 40-year-old Houston-based investor, redeveloper and manager of apartment communities.

The combined company, Crossbeam Holdings, LLC, will focus on acquiring multifamily communities throughout the U.S. and redeveloping them to institutional quality. The merger formalizes a partnership established in 2010 which acquired seven multifamily communities including closing five properties in December alone.

“Crossbeam Capital and Concierge Asset Management were two successful, independently-run companies,” says Richard K. Devaney, formerly a principal and chief investment officer of Crossbeam Capital and now chairman and chief executive officer of the new company. “We were profitable and generating consistent returns for our investors. However, as we began working on acquisitions together, we recognized how compatible our two organizations were.

“Crossbeam brings strong, seasoned investment management to the new venture with expertise in acquisitions, capital markets, asset management and investor relations,” added Devaney. “This, combined with Concierge’s four decades of experience in spotting emerging markets, identifying and acquiring value opportunities, then repositioning and managing those assets, gives us a significant edge, we believe, in this extremely competitive multifamily marketplace.

“Plus, we are confident that our combined synergistic platform will enable us to execute on opportunities quickly and efficiently, maximize the performance of both companies’ property portfolios and provide exceptional service to our investors,” he says. “We have emerged from one of the worst real estate markets in history as a stronger organization with deeper capabilities and are proud to be one company with Maxwell Drever and his exceptional team.”

Maxwell Drever, founder-chairman of Concierge Asset Management who becomes chairman emeritus of Crossbeam Holdings, agreed the new company “has an extraordinary combined track record in creating real value for investors but it has also delivered reliable and sound solutions for sellers, lenders and brokers.

“In decades of property acquisition and transformation, we’ve had the priceless ingredient of ‘trial and error’and refined an expertise in recognizing value buys and cost-effectively redeveloping the apartment communities.” says Drever. “In partnering on seven deals last year with Rich Devaney and the Crossbeam team, I realized a merger could give us the financial leverage and additional acquisition talent to move quicker in identifying and closing on multifamily properties that are a fit for our signature redevelopment strategy. After more than a year of working together, we saw joining forces not only as a win-win for both companies, but also for those who entrust us to manage their real estate investment capital.

“We also found that vertically integrating all operations under the Crossbeam Holdings umbrella instead of outsourcing them is far more efficient and profitable," added Drever.

The management team of Crossbeam Holdings is led by Devaney as chairman and CEO. Prior to co-founding Crossbeam Capital, he was national vice president for Equity and Mezzanine Debt at Fannie Mae in Washington D.C. Ted Kerr, chief executive of Concierge Asset Management, is now president of Concierge Holdings. Kerr had been director of asset management of Drever Partners, which owned 18,000 apartment units when Maxwell Drever sold it in 1997 to Walden Residential, a Dallas-based, NYSE-listed REIT. W. Bradford Blash, chief acquisitions officer of Crossbeam Capital, is chief business officer of the merged company. Before co-founding Crossbeam, he was director of Equity at Fannie Mae in Washington, DC.

Combined, Crossbeam Holdings has $630 million in real estate assets under management, a portfolio of 29 multi-family properties with 9,045 rental residences primarily managed primarily by its 165 person property management subsidiary, Concierge Management Services. It also owns Concierge Construction Company, a construction management firm that has been responsible for the transformation and repositioning of more than 90 apartment communities nationwide during its history. The new consolidated company has deep experience in major institutional multifamily markets from Seattle to Washington D.C. and across the Sunbelt.

In addition to the seven properties bought and closed last year, Drever says Crossbeam Holdings is starting 2011 by working to acquire three apartment communities where prospective buyers of each failed to meet the sellers’ year-end deadline.

“Our niche,” he added, “is that we have the capital, ability and agility to move quickly, step in and solve problems for almost any seller or lender with a multifamily property and/or their non-performing loans.”