Ravinia Capital Group (the "Real Estate Company"), founded in 2013, is a Chicago-based real estate investment and ownership firm. Founded by seasoned real estate professionals with 50 years of combined investment, asset management and redevelopment experience, the Ravinia team has owned over $346 million of commercial real estate. Ravinia focuses exclusively on middle market transactions with asset values ranging between $10 million and $100 million in targeted US submarkets. It seeks to acquire properties at prices below replacement cost with in-place cash flow and value-add upside. This approach is based upon the principals' real estate experience through various economic cycles.
RealtyMogul investors previously invested alongside Ravinia Capital Group in the acquisition of 544 Lakeview Parkway in Vernon Hills, IL in Q4 2018. In Q2 2019, Ravinia executed a lease with a technology company to move into suite 204 (3,512 SF) after completing the build-out of the space as a speculative suite, and is currently renovating the building common areas.
Brewery Tower (500 S. Front St.)
Brewery Tower is a 12 story, 94% leased, Class A office tower situated on approximately one acre totaling 142,315 square feet, and is connected to the 579 space, four-story Brewery Garage (4.1/1,000 rentable square feet). The Property is located at 500 South Front Street in Columbus, OH, within the Brewery District submarket of the Columbus Central Business District (“CBD”). The glass lobby and outdoor patio seating area of Brewery Tower were completed in 2018. Brewery Tower is within the immediate proximity of the Courthouse District and walking distance to neighborhood restaurants and bars. Another notable neighborhood feature is the new $70 million mixed-use redevelopment occurring across the street from Brewery Tower, featuring a 140-room boutique hotel, retail, office, and condominium residences.
855 Grandview Ave.
Located approximately three miles west of downtown Columbus, 855 Grandview is a Class B, 100% leased creative office complex of 84,832 square feet with an attached warehouse of 25,559 square feet. The Property is situated on 5.9 acres with 369 surface parking spaces (4.5/1,000 rentable square feet). It is comprised of two connected sections. The "Tower" is a three story all-glass office building of 44,712 square feet, built in 2004. 'Quonset Hut' contains 40,125 square feet and 22 foot ceilings, and was built in 1947 and renovated in 2016. The contiguous warehouse measures 25,554 square feet with 37.5 foot clear heights (at its center) and a loading dock. 855 Grandview boasts easy access to downtown and suburban Columbus via I-670 (0.25 miles away) and Dublin Road (0.1 miles away). The complex is also directly across the street from Wagenbrenner’s $300 million Grandview Crossing development, planned to be 56 acres of mixed use development, including 800 multifamily units, retail, a hotel, and two office buildings. Construction has already commenced.
Major Tenants
Woda Cooper Companies is an experienced developer, general contractor, and property manager, which specializes in the design, construction and management of affordable multi-family apartments, senior communities and single-family homes. Since 1990 Woda has created over 12,000 housing units in rural, suburban and urban settings across 15 states and manages/maintains over 300 properties. In 2018, Woda was ranked as the sixth largest affordable housing developer in the country and the twenty-ninth largest affordable housing owner by Affordable Housing Finance. Woda is headquartered in the building with six US offices, employing over 550 employees. This is Woda's original lease, which was signed in June 2017.
Crabbe, Brown & James, LLP is a law firm that has served Ohio and surrounding states for nearly a century. Clients include Fortune 500 corporations, privately held businesses, nonprofit institutions (including The Ohio State University), governmental entities, and individuals. The company's main practice areas are litigation, business/corporate, employment, class action, and sports law. Crabbe, Brown & James has been in the building since 1991, when the company signed for the same space it occupies today.
ScriptDrop provides prescription delivery by connecting pharmacies to their network of couriers across the Country. It is the first medication delivery program that integrates directly into the pharmacist’s existing workflow—making the delivery process more efficient for the pharmacy and leading to a seamless delivery solution for patients. ScriptDrop is in its original lease term, which commenced in November 2018.
Founded in 1997 in Columbus, Ohio, Dynamix Engineering is a full-service mechanical, electrical, plumbing, fire protection, and technology engineering firm with a focus in design engineering and systems assessments. The Dynamix team provides consulting engineering services for building and infrastructure systems used in a broad range of facilities across several markets and industries across the nation. It is a minority-owned business and is now one of the top 100 engineering firms in the United States, undertaking some of the largest projects in the nation. Dynamix signed its original lease in September 2010, and has undergone a series of amendments since to expand the company's space.
The Drug Enforcement Administration is a United States federal law enforcement agency under the United States Department of Justice, tasked with combating drug trafficking and distribution within the United States. The DEA signed its original lease in the building March of 2010. Since then, it has gone through a number of amendments. The Real Estate Company expressed confidence that the DEA would renew their existing term, given that Brewery Tower is the only known building in the area that offers direct-access parking for their team.
Founded in 1891, and with offices in Columbus and Cincinnati, Loth designs "smarter spaces" for corporate, education, and healthcare markets. Loth's solutions incorporate furniture, walls, flooring, and technology configured in a way that facilitates workflow and enhances collaboration. LOTH will design existing or new space, manage projects from start to finish, install furniture and fixtures, and maintain and replace throughout the life of the space. Per the Real Estate Company, LOTH has a strong pipeline, including providing a portion of the furniture for the new $2 billion Ohio State Hospital project. Loth signed its original office lease in April 2008, and has expanded since through a series of amendments. The company signed for the warehouse space in March 2008.
Major Tenants Summary
| Tenant | Square Feet | % of Property | % of Portfolio | Rent per square foot | Lease Expiration | Lease Type |
|---|---|---|---|---|---|---|
| Brewery Tower | ||||||
| Woda Copper Co. | 26,145 | 18.4% | 10.3% | $11.12 | Aug '28 | NNN |
| Crabble, Brown & James | 22,513 | 15.8% | 8.9% | $12.25 | Oct '22 | NNN |
| DEA | 17,372 | 12.2% | 6.9% | $17.73** | Aug '20 | NNN |
| Other Tenants | 67,896 | 47.7% | 26.9% | $11.20 | Various | NNN |
| Subtotal | 133,926 | 94.1% | 53.0% | $12.21 | ||
| 855 Grandview | ||||||
| ScriptDrop | 21,950 | 19.9% | 8.7% | $12.75 | Feb '26 | NNN |
| Dynamix Engineering, Ltd. | 20,744 | 18.8% | 8.2% | $13.00 | Sep '28 | NNN |
| Loth, Inc. | 15,124 | 13.7% | 6.0% | $14.05 | Jul '25 | NNN |
| Other Office Tenants | 27,019 | 24.5% | 10.7% | $13.85 | Various | NNN |
| Loth, Inc. (warehouse) | 25,554 | 23.1% | 10.1% | $2.58 | Dec '20 | NNN |
| Subtotal | 110,391 | 100.0% | 53.7% | $13.39* | ||
| Grand Total | 244,317 | $12.67* |
*Average rent does not include warehouse space currently occupied by Loth, Inc.
**DEA rent includes parking.
| 1201 Dublin Rd. | 1123 Goodale Blvd | 1166 Dublin Rd. | 855 Grandview Ave. | Total/Averages | Subject | |
|---|---|---|---|---|---|---|
| Building SF | 47,000 | 102,956 | 22,000 | 110,391 | 70,587 | 110,391 |
| Year Built | 1970 | 2017 | 1952 | 1947/2004 | 1980 | 1947/2004 |
| Year Renovated | 2000 | N/A | N/A | 2004/2016 | 2004/2016 | |
| Rental Rate (NNN) | $13.95 | $16.50 | $14.50 | $14.05 | $14.75 | $14.00 |
| Leased SF | 3,931 | 11,331 | 11,673 | 15,124 | 10,515 | |
| Tenant | N/A | U-Haul | N/A | Loth, Inc. | ||
| Date Signed | Aug '19 | Dec '18 | May '19 | Jan '19 | ||
| Lease Term (years) | N/A | N/A | 7.0 | 6.0 | 6.5 | |
| Parking Ratio (per 1,000 sf) | 3.5 | 0.0 | 4.0 | 4.5 | 3.0 | 4.5 |
| Distance from Subject (mi.) | 0.4 | 0.7 | 0.4 | 0.0 | 0.4 |
| 495 S. High St. | 2 Miranova Place | 10 W Broad St. | 500 S. Front St. | Total/Averages | Subject | |
|---|---|---|---|---|---|---|
| Building SF | 80,063 | 243,527 | 407,472 | 142,315 | 218,344 | 142,315 |
| Year Built | 2001 | 2001 | 1985 | 1989 | 1994 | 1989 |
| Year Renovated | N/A | N/A | N/A | 2018 | 2018 | |
| Rental Rate (NNN) | $14.00 | $14.50 | $16.25 | $13.96 | $14.68 | $13.50 |
| Leased SF | 2,401 | 6,884 | 17,241 | 5,059 | 7,027 | |
| Tenant | N/A | N/A | N/A | Lendeavor | ||
| Date Signed | Jul '19 | Aug '19 | Apr '19 | Apr '19 | ||
| Lease Term (years) | 5.0 | N/A | 3.0 | 2.7 | 3.6 | |
| Parking Ratio (per 1,000 sf) | 3.0 | 3.0 | 4.0 | 4.1 | 3.5 | 4.1 |
| Distance from Subject (mi.) | 0.1 | 0.4 | 0.7 | 0.0 | 0.3 |
| 500 Olde Worthington | 1400 & 1404 Goodale Blvd. | 495 S. High St. | Total/Averages | Subject | |
|---|---|---|---|---|---|
| Date Sold | Sep '18 | Sep '17 | May '17 | Nov '19 | |
| Building SF | 97,000 | 80,491 | 69,188 | 82,226 | 252,706 |
| Occupancy at Purchase | 100% | 100% | 100% | 100% | 96.7% |
| Year Built | 2000 | 1955 | 2001 | 1985 | 1947/1989/2004 |
| Purchase Price | $15,100,000 | $12,714,518 | $10,000,000 | $12,604,839 | $37,800,000 |
| $/SF | $156 | $158 | $145 | $152 | $117* |
| Cap Rate | 8.10% | 8.00% | 7.50% | 7.87% | 8.72% |
| Parking Ratio (per 1,000 sf) | 4.5 | 4.3 | 3.0 | 3.9 | 4.2 |
| Distance from Portfolio Center | 12.9 miles | 1.3 miles | 1.5 miles | 5.2 miles |
*Per square foot adjusted for office and industrial space only
Lease and sale comparables were obtained from CoStar
| Sources of Funds | $ Amount | Per Square Foot |
| Debt | $33,739,635 | $81 |
| Equity | $12,372,188 | $30 |
| Total Sources of Funds | $46,111,823 | $111 |
| Purchase Price | $37,800,000 | $91 |
| Loan Fee | $84,349 | $0 |
| Real Estate Company Acquisition Fee | $546,698 | $1 |
| Broker Dealer Fee | $120,000 | $0 |
| MogulREIT I Origination Fee | $280,000 | $1 |
| CapEx Budget | $2,473,900 | $7 |
| Closing Costs | $465,894 | $1 |
| Tenant Improvements & Leasing Commissions | $4,040,982 | $10 |
| Working Capital | $300,000 | $1 |
| Total Uses of Funds | $46,111,823 | $111 |
The expected terms of the debt financing are as follows:
- Estimated Initial Proceeds: $27,924,753
- Estimated Future Funding: $5,909,618
- Interest Rate: LIBOR + 2.15% (an interest rate swap is required, and estimated to be 3.73%)
- Interest Only Period: Five years
- Loan Term: Four years
- Extension Options: One (1) one-year extension option (0.1% fee), subject to minimum debt yield of 8.75%
- Prepayment Penalty: N/A
There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender controlled capital reserve account.
The Real Estate Company intends to make distributions of all available cash and capital proceeds to investors (The Company and Real Estate Company, collectively, the "Members") as follows:
- To the Members, pari passu, all excess operating cash flows to an 8.0% IRR to the Members;
- 80% / 20% (80% to the Members / 20% to the Real Estate Company) of all excess operating cash flows to an 11% IRR;
- 70% / 30% (70% to the Members / 30% to the Real Estate Company) of excess cash flow and appreciation thereafter.
Note that these distributions will occur after the payment of The Company's liabilities (loan payments, operating expenses and other fees as set forth in the operating agreement, in addition to any member loans or returns due on member loans).
The Company will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of The Company (the RealtyMogul investors).
Distributions are expected to start in March 2020 and are expected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Real Estate Company, who may decide to delay distributions for any reason, including maintenance or capital reserves.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Effective Gross Revenue | $5,648,805 | $6,328,860 | $6,402,209 | $6,713,760 | $6,882,439 |
| Total Operating Expenses | $2,688,089 | $2,874,320 | $2,940,749 | $3,020,760 | $3,096,312 |
| Net Operating Income | $2,960,716 | $3,454,540 | $3,461,460 | $3,693,000 | $3,786,127 |
| Year 0 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|
| Distributions to RealtyMogul 141, LLC Investors | ($3,030,000) | $65,643 | $369,819 | $469,276 | $449,976 | $513,376 | $2,993,221 |
| Net Earnings to Investor - Hypothetical $50,000 Investment | ($50,000) | $1,083 | $6,103 | $7,744 | $7,425 | $8,472 | $49,393 |
Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
|---|---|---|---|---|
| Acquisition Fee | $546,698 | Real Estate Company | Capitalized Equity Contribution | 1.45% of the Purchase Price |
| Broker-Dealer Fee | $120,000 | North Capital (1) | Capitalized Equity Contribution | 4.0% of the equity raised by RealtyMogul 141, LCC |
| Origination Fee | $280,000 | RM Adviser, LLC | Capitalized Equity Contribution | 0.74% of Purchase Price |
| Disposition Fee | 0.41% of gross sale price | RM Adviser, LLC | Distributable Cash |
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
|---|---|---|---|---|
| Asset Management Fee | 0.25% of Purchase Price | Real Estate Company | Distributable Cash |
Subject to annual inflation adjustments |
| Management and Administrative Fee | 1.0% of amount invested in RealtyMogul 141, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of The Company and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
| Property Management Fee | 3.0% of Effective Gross Income | Colliers | Distributable Cash |
(1) North Capital Private Securities Corporation (“NCPS”), a registered broker-dealer who will act as placement agent for interests in the Company will be paid a fee as outlined above. NCPS will pay a referral fee to Mogul Securities, LLC (“MS”), an affiliate of the Manager and RealtyMogul, Co., for referring the transaction pursuant to a referral agreement between NCPS and MS. Certain employees of Realty Mogul, Co., an affiliate of Manager are registered representatives of, and are paid commissions by, NCPS.
(2) Fees may be deferred to reduce impact to investor distributions.
The above presentation is based upon information supplied by the Real Estate Company or others. Realty Mogul, Co., RM Manager, LLC, and The Company, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLCSponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment DocumentsThe information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.