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Multifamily
Skyland Apartments
Washington, DC
Canceled
...
Skyland Apartments
Washington, DC
All Investments > Skyland Apartments
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Overview
Skyland Apartments
Acquisition of a value add multifamily and retail property in Anacostia, in the Washington DC MSA, by a DC-based real estate company.
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Details
Estimated First Distribution 12/2020
Minimum Investment 40000
Estimated Hold Period 5 years
Investment Type Equity
Year Built 1939
Year Renovated 1992
# of Units 224
# of Buildings 24
Current Occupancy 97%
Amenities The Property includes a community garden with a playground, two laundry facilities and 10,666 SF of retail space.
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
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Management
Georgetown Partners

Georgetown Partners is a private real estate investment and management firm focused on the Mid-Atlantic Region. The firm targets both stabilized and value-add opportunities and has over 20 years of commercial real estate experience. Georgetown Partners is vertically integrated and capable of all asset, leasing, and property management functions. RealtyMogul has previously invested alongside Georgetown Partners on Commonwealth Office in Richmond, VA.

Management Team
Management
Property

Built in 1939 and renovated between 1991 and 1992, Skyland Apartments is comprised of one- (153) two- (65) and three-bedroom (6) floor plans combining to 224 units in suburban Washington DC, and operates under the Rental Housing Act of 1985 (i.e. rent control). The majority of units have received upgrades to appliances, cabinetry, countertops, and flooring on-turn, while exteriors and mechanical systems have been upgraded in recent years as well. The Property also includes a 10,666 SF retail component which is fully leased to seven tenants. Annual retail income averages $20 per square foot and comprises approximately 6.1% of total annual revenue over the projected hold period. 


The Property is located east of the Anacostia River, six miles from the Washington, DC CBD, and is walking distance from Good Hope Market (which includes a Safeway and Starbucks), and 11th street bridge. The Property is less than two miles from I-295, I-695, Naylor Road Metro, and seven miles from Ronald Reagan National Airport. 

Unit Mix

Unit Type # of Units Avg SF/Unit In-Place Rent Post-Reno Rent
1 Bed, 1 Bath 114 575 $1,029 $1,029
1 Bed, 1 Bath Duplex 39 723 $1,165 $1,196
2 Bed, 1 Bath Duplex 65 810 $1,408 $1,742
3 Bed, 1 Bath Duplex 6 970 $1,631 $2,104
Total 224 680 $1,171 $1,361

Retail

Tenant Description SF $/SF
Vision Hair Salon Beauty Salon 1,162 $22.07
Erim Eyecare Optometrist 2,875 $19.28
Like That Barber Shop Barber Shop 1,490 $19.83
Capitol City Training  Government Office 824 $14.93
ACE Cash Express Financial Solutions 1,389 $23.38
DRS Medical Supply  Medical Equipment Rental 1,500 $18.17
Elite Telecom Telecommunications Provider 1,426 $26.85
Total 10,666 $20.71
Comparables

Lease Comps

  Park Naylor Capital Crossing Marlborough House Carriage Hill Total/Averages Subject
Submarket Southeast DC Suitland/District Heights/Capitol Heights Prince George's County Suitland   Anacostia 
Year Built 1964 1966 1964 1965 1965 1939 / 1992
# of Units (1x1) 51 102 217 175 136 153
Rent (1x1) $1,390 $1,345 $1,410 $1,380 $1,381 $1,223
SF (1x1) 580 785 714 577 664 613
Rent/SF (1x1) $2.40 $1.71 $1.97 $2.39 $2.12 $2.00
# of Units (2x1) 181 200 53 120 139 10
Rent (2x1) $1,678 $1,444 $1,665 $1,640 $1,607 $1,605
SF (2x1) 1,000 906 940 858 926 810
Rent/SF (2x1) $1.68 $1.55 $1.77 $1.91 $1.73 $1.98
# of Units (3x1)   2   75 39 6
Rent (3x1)   $1,671   $1,740 $1,706 $1,655
SF (3x1)   1,060   996 1,028 970
Rent/SF (3x1)   $1.58   $1.75 $1.66 $1.71
Distance from Subject (mi.) .3 miles 1.2 miles .6 miles 1.3 miles .9 miles N/A

Sales Comps

  3930 Suitland Ridgecrest Village Regency Court Dunhill South Capital Crossing Total/Averages Subject
Date Sep '19 Feb '19 Aug '18 May '19 Sep '19   May '20
Submarket Capitol Heights Anacostia Anacostia Anacostia Anacostia   Anacostia 
# Units 351 272 115 116 351 241 224 Units 
Year Built 1960 1951 1962 1965 1960 1,960 1939 / 1992
Average SF 783 883 867 116 783 686 680
Purchase Price $52,000,000 $28,560,000 $12,250,000 $14,640,000 $52,000,000 31,890,000 $25,100,000
$/Unit $148,148 $105,000 $106,522 $126,207 $148,148 126,805 $112,054
Cap Rate N/A 4.80% N/A 5.80% N/A 5.30% 5.60%
Distance from Subject (mi.) 1.5 miles 1.1 miles 2.7 miles 3.4 miles 1.2 miles 2.0 miles N/A

 

Financials
Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $16,310,000
Equity $11,009,942
Total Sources of Funds $27,319,942
Uses of Funds Cost
Purchase Price $25,100,000
Acquisition Fee $300,000
Broker Dealer Fee $160,000
CapEx $782,498
Loan Fee $181,255
Tax & Insurance Reserve $104,244
Working Capital $50,000
Closing Costs $641,945
Total Uses of Funds $27,319,942
Debt Assumptions

The expected terms of the debt financing are as follows:

  • Total Estimated Proceeds: $16,310,000
  • Estimated Rate (Fixed): 3.49%
  • Amortization: 30 years
  • Term: 5 years
  • Interest Only: 108 months
  • Prepayment Penalty: TBD
  • Extension Options: TBD

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.

Distributions

The Target intends to make distributions to investors (the Company and Real Estate Company, collectively, the "Members") as follows:

  1. Pari passu, all excess operating cash flows to a 10.0% IRR to the Members;
  2. 90.0% / 10.0% (90.0% to Members / 10.0% to Real Estate Company) of excess cash flow and appreciation to a 14.0% IRR to the Members;
  3. 70.0% / 30.0% (70.0% to Members / 30.0% to 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 LLC agreement, in addition to any member loans or returns due on member loans).

Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

One-Time Fees
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee $300,000 Real Estate Company  Capitalized Equity Contribution 1.0% of the Property purchase price
Broker-Dealer Fee $160,000 North Capital Capitalized Equity Contribution Greater of $50,000 and 4.0% of the equity raised by RealtyMogul 145, LLC
Recurring Fees
Type of Fee Amount of Fee Received By Paid From Notes
Management and Administrative Fee 1.0% of amount invested in RealtyMogul 133, LLC RM Manager, LLC Distributable Cash RM Manager, LLC is the Manager of RealtyMogul 133, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)
Asset Management Fee 2.0% of Effective Gross Income South Coast Commercial Distributable Cash  

(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

(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.

Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $16,310,000
Equity $11,009,942
Total Sources of Funds $27,319,942
Uses of Funds Cost
Purchase Price $25,100,000
Acquisition Fee $300,000
Broker Dealer Fee $160,000
CapEx $782,498
Loan Fee $181,255
Tax & Insurance Reserve $104,244
Working Capital $50,000
Closing Costs $641,945
Total Uses of Funds $27,319,942
Debt Assumptions

The expected terms of the debt financing are as follows:

  • Total Estimated Proceeds: $16,310,000
  • Estimated Rate (Fixed): 3.49%
  • Amortization: 30 years
  • Term: 5 years
  • Interest Only: 108 months
  • Prepayment Penalty: TBD
  • Extension Options: TBD

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.

Distributions

The Target intends to make distributions to investors (the Company and Real Estate Company, collectively, the "Members") as follows:

  1. Pari passu, all excess operating cash flows to a 10.0% IRR to the Members;
  2. 90.0% / 10.0% (90.0% to Members / 10.0% to Real Estate Company) of excess cash flow and appreciation to a 14.0% IRR to the Members;
  3. 70.0% / 30.0% (70.0% to Members / 30.0% to 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 LLC agreement, in addition to any member loans or returns due on member loans).

Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

One-Time Fees
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee $300,000 Real Estate Company  Capitalized Equity Contribution 1.0% of the Property purchase price
Broker-Dealer Fee $160,000 North Capital Capitalized Equity Contribution Greater of $50,000 and 4.0% of the equity raised by RealtyMogul 145, LLC
Recurring Fees
Type of Fee Amount of Fee Received By Paid From Notes
Management and Administrative Fee 1.0% of amount invested in RealtyMogul 133, LLC RM Manager, LLC Distributable Cash RM Manager, LLC is the Manager of RealtyMogul 133, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)
Asset Management Fee 2.0% of Effective Gross Income South Coast Commercial Distributable Cash  

(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

(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.

Disclosures
RM Securities, LLC and its Affiliates Compensation

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, LLC

Sponsor 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 Documents

The 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 Investment

This 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 Assumptions

Sponsor 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 Performance

Any 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 Debt

A 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 Registered

Sponsor’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 Advice

Nothing 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 Risk

Internal 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.

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