
Holding a 50% stake in the joint venture through Ross Turtle Crossing, LLC, Ross Realty is expected to perform the on-site property management and leasing functions.
Founded in 1987 by Barry Ross, Ross Realty Investments, Inc. has grown to be a well-recognized and respected player in the South Florida commercial real estate market. This privately held company specializes in the development, management, and leasing of well-located retail centers in attractive growth areas. Today, the company has a significant portfolio of properties and a track record of success.
This success has been built on successful projects and long term relationships with tenant, brokers, lenders and investors. This full service company consists of four divisions - Development, Acquisitions & Sales, Leasing and Property Management - and focuses on community shopping centers, neighborhood grocery-anchored centers, power centers, stand-alone retailers and office buildings. With corporate headquarters in Davie, Florida on University Drive near Interstate 595, Ross Realty Investments is a preferred source for retail development/redevelopment, acquisitions, sales and leasing.

Penn Dutch Plaza is a 95.5% occupied 155,622 square foot grocery anchored shopping center with a mix of national and local retailers. The center is anchored by Penn Dutch Food Center with YouFit Health Club and Florida Career College as junior anchors. Encompassing 19.9 acres, the Property was built in in 1989 and has a parking ratio of 6.06 per 1,000 square feet. The Property features concrete block construction with extended covered walkways supported by concrete columns with storefronts of bronze aluminum with glass windows and doors. The Property features 1,500 linear feet of frontage to State Road 7.
There is currently one existing separately parceled outparcel on the southeast east corner of the Property. The outparcel is contains a 3,368 square feet building which is occupied by Brighstar Credut Union through September 2018.
The Property is currently leased to 18 tenants, refer below for the tenant summary and tenant descriptions:
Penn Dutch - Main Tenant Summary | |||||
Tenant | Square Footage | % Square Foot | In-Place Rent ($/SF) | Lease Expiration | Remaining Options |
Penn Dutch Food Center | 70,358 | 45% | $5.00 | Dec-18 | 3 x 5 yrs |
Florida Career College | 28,600 | 18% | $12.57 | Feb-21 | 3 x 5 yrs |
You Fit | 17,500 | 11% | $10.00 | Dec-26 | 1 x 5 yrs |
Non-anchor/junior anchor in-line tenants | 24,700 | 16% | $22.76 | Various | Various |
Sponsor post-close leasing (1) | 7,532 | 5% | $15.00 | May-26 | 2 X 5 yrs |
Available space | 6,932 | 5% | |||
Property Total | 155,622 | 100% | $10.33 |
(1) - Sponsor recent leasing: Camp Canine has executed a 10-year lease to rent 7,532 square feet commencing June 2016 for $15.00 NNN.
Major Tenants
Penn Dutch Food Center is a family owned (3rd generation) specialty supermarket chain that has served the South Florida community since 1975. With two locations in Hollywood and Margate, Penn Dutch has captured an expansive trade area as a meat superstore of South Florida and serves over 30,000 shoppers each week. The chain has a loyal and wide customer base and was voted Best Butcher Shop and Deli in the “Herald’s Best of Broward/Dade” as well as Best Fresh Seafood by New Times Magazine in 2003. Featuring a full-service butcher shop and smokehouse, Penn Dutch offers a wide selection of fresh meats and seafood that are rare to find at a traditional supermarket in addition to common grocery items. Since much of the prepared foods, meats, and seafood are procured in-house, their prices are competitive with or below major grocer competition.
Serving as the anchor for the Property, Penn Dutch Food Center occupies 70,358 square feet (45.2%) through December 2018 with three remaining options of five years each at fixed rents of $5.25 NNN, $5.50 NNN, and $5.75 NNN per square foot, respectively. Only roughly 20,000 square feet of the total 70,358 square feet space is used for retail. The remainder of Penn Dutch’s current space is wholesale processing, packaging, and distribution – the in-house preparation of their foods, meats, and seafood which give them a competitive advantage against major grocer combination. A combination of their significantly below market rent, location, and unique use contribute to a package that would be difficult to replicate at another location. At a rental rate of $5 per square foot NNN, Penn Dutch is currently significantly below market average for comparable anchor space of approximately $9.95 per square foot NNN (based on market leasing comps).
Florida Career College (IEC US Holdings, Inc.) has specialized in career training in Florida since 1982. Acquired by International Education Corporation in 2014, FCC currently operates 12 schools throughout the state of Florida. FCC offers beginning to advanced training in many areas such as Medical Front Office & Billing, Medical Assistant Technician, Cosmetology, Patient Care Technician, Nursing, Information Technology, HVAC (Heating Ventilation & Air Conditioning) Health Services Administration, X-ray Technician, Pharmacy Technician and Computer and Network Technician. Florida Career College occupies 28,600 square feet (18.4%) in Penn Dutch Plaza with a lease that runs through February 2021 with three remaining options of five years each at fixed rents of $16.75 NNN, $19.27 NNN, and $22.15 NNN per square foot, respectively. Much like Penn Dutch, a significant delta exists between the tenant's current rent and market rents as their current rental rate of $12.58 per square foot NNN compares favorably to market leasing comparables for educational space of $16.12 per square foot NNN.
YouFit Health Clubs is a gym and health club brand focused on simplicity and a no-frills experience with updated, modern equipment and essential gym services without the exorbitant fees and services offered by some of the more luxury health club brands. YouFit operates under a franchise model with franchisees having access to unified marketing strategies, site selection and design assistance, education and training, and cost control/monitoring. Founded in 2008 by South Florida native Rick Berks, the chain has quickly expanded to 97 locations spanning 13 states across the nation. A local franchisee of YouFit Health Club originally opened in 15,500 square feet in the Penn Dutch Plaza location in 2010. The Tenant recently expanded to 17,500 square feet (11.2%) with a current lease expiration of December 2026 and has one, five-year option.
Anchor Lease Comparables
Property | City | State | Tenant | Built | SF | Lease Date | Term | Base Rent (NNN) |
500-648 Riverside Drive | Coral Springs | FL | Dick's Sporting Goods | 2014 | 50,000 | Feb-14 | 10 years | $15.00 |
500-648 Riverside Drive | Coral Springs | FL | BJ's Wholesale Club | 2014 | 86,576 | Mar-14 | 20 years | $10.00 |
9201 West Flagler Street | Unincorporated MD | FL | Walmart | 2014 | 112,534 | Aug-14 | 20 years | $7.55 |
3551 W Hillsboro Blvd | Deerfield Beach | FL | Hobby Lobby | 2014 | 46,500 | Jan-15 | 15 years | $10.25 |
Total/Average | 73,903 | 16 years | $9.95 | |||||
Subject | Margate | FL | Penn Dutch | 1989 | 70,358 | Dec-02 | 16 years | $5.00 |
School Lease Comparables
Property | City | State | Tenant | Built | SF | Lease Date | Term | Base Rent (NNN) |
600 East Coast Avenue | Lantana | FL | Palm Beach Maritime Charter | 1971 | 34,177 | Aug-13 | 20 years | $17.14 |
2800 North Palm Avenue | Cooper City | FL | Renaissance Charter School | 2012 | 75,567 | Aug-12 | 20 years | $14.24 |
22665 SW 112th Ave | Unincorporated MD | FL | Palm Glades Charter School | 2012 | 47,588 | Sep-12 | 10 years | $19.94 |
6701 West Sunrise Boulevard | Plantation | FL | Renaissance Charter School | 1970 | 72,849 | Aug-13 | 20 years | $15.10 |
Total/Average | 57,545 | 18 years | $16.12 | |||||
Subject | Margate | FL | Florida Career College | 1989 | 28,600 | Jun-10 | 10.5 years | $12.58 |
Grocery Anchored Retail Center Sale Comps
Property | City | State | Anchor | Built | SF | Sale Date | Purchase Price | $/SF | Cap Rate |
8100-8268 Wiles Rd | Coral Springs | FL | Publix | 1998 | 104,241 | Jun-14 | $ 12,380,000 | $ 119 | 6.8% |
Palm Lakes Plaza | Margate | FL | Publix | 1979 | 109,752 | Jan-13 | $ 14,183,086 | $ 129 | 5.5% |
4001 W Commercial Blvd | Tamarac | FL | Publix | 1972 | 234,000 | Jul-14 | $ 28,500,000 | $ 122 | 6.8% |
Pompano Marketplace | Pompano Beach | FL | Walmart | 1989 | 239,200 | Mar-15 | $ 46,800,000 | $ 196 | 6.0% |
Sawgress Center | Coral Springs | FL | Publix | 2000 | 83,800 | May-11 | $ 14,864,986 | $ 177 | 5.7% |
Total/Average | 154,199 | $ 23,345,614 | $ 151 | 6.2% | |||||
Subject | Margate | FL | 1989 | 155,622 | Aug-20 | $ 24,204,773 | $ 156 | 7.6% |
Outparcel Sale Comps
Property | City | State | Proposed Use | Acres | Sale Date | Purchase Price | $/SF | Notes | |
5700 Coconut Creek Pky | Margate | FL | Retail/Bank | 0.92 | Sep-15 | $ 1,390,000 | $ 35 | 49,900 VPD | |
8101 W Broward Blvd | Plantation | FL | Not available | 1.30 | Under contract | $ 2,200,000 | $ 39 | 59,000 VPD | |
Total/Average | 1.11 | $ 1,795,000 | $ 37 | ||||||
Subject | Margate | FL | Speculative | 0.80 | $ 1,304,000 | $ 37 | 60,000 VPD |


Debt | $13,055,000 |
Equity | $7,067,600 |
Total Sources | $20,122,600 |
Purchase Price | $18,500,000 |
Acquisition Fee to Sponsor (2%) | $370,000 |
Partial Roof Replacement | $300,000 |
Cap Ex Reserve | $292,565 |
Tenant Improvements/Leasing Commissions | $225,000 |
Loan Fees | $180,700 |
Tenant Improvements/Leasing Commissions Reserve | $150,000 |
Closing Costs | $83,235 |
SunCap Closing Costs | $53,600 |
Seller Credit | ($32,500) |
Total Uses | $20,122,600 |
The executed debt financing terms are as follows:
- Proceeds: $13,055,000 (65% loan to cost)
- Lender: NCB
- Term: Five years with one two-year option provided (a) notice of the election to exercise the Extension Option on or prior to August 1, 2020, (b) no event of default, (c) a Debt Service Coverage Ratio (DSCR) of no less than 1.20x for the 12-month period preceding the date of notice in as described in (a), (d) no material change with respect to the SunCap principles with regards to net worth. The extension term shall be at the greater of a 4.18% fixed rate or the yield on two-year US Treasuries as of the date which is ten days prior to the expiration of the initial term plus a 265 basis point spread.
- Extension Option Fee: None
- Interest-Only Period: one (1) year
- Reserves
- Replacement reserves of $0.35 per square foot annually
- $150,000 initial deposit for TI/LC reserve. $84,000 per annum up to $400,000 cap.
- If Penn Dutch renews & center is 90% occupied – reduce cap to $150,000 (assumed in underwriting)
- If Penn Dutch renews & center is below 90% occupied – reduce cap to $200,000
- If reserve goes below either of the caps then borrower shall replenish back to the $150,000 or $200,000 cap
- Amortization: 30 years
- Interest Rate: 4.18% Fixed
- Recourse: None except bad-boy carve outs
- Prepayment Fee: 4% in months 1-12, 3% in months 13-24, 2% in months 25-36, 1% in months 37-48
- Assumption Fee: 1%
- Bright-Star Credit Union sale of parcel is allowed based upon a 75% release price of the sales contract after commissions or appraisal (higher of).
- NCB will allow an additional release of another parcel, subject to NCB approval, at 75% of the sale contract after commissions or 75% of the appraisal (higher of). All proceeds shall down the outstanding loan balance and the loan must continue to provide a minimum 1.35 Debt Service Coverage Ratio (DSCR).
SunCap IV - Penn Dutch LLC will make distributions to Realty Mogul 53, LLC as follows: pro rata share of cash flow up to an 8% Internal Rate of Return (IRR) hurdle with an 85/15 (Investor/Sponsor) split to a 13% IRR, then a 70/30 (Investor/Sponsor) split to a 17% IRR, any cash flows thereafter will be distributed on a 55/45 (Investor/Sponsor) basis. Note that the return of initial capital occurs only upon a capital event. Realty Mogul 53, LLC will distribute 100% of its share of excess cash flow (after expenses) to Realty Mogul investors.
Order of Distributions to Realty Mogul 53, LLC (Operating Income, Refinance, and Sales Proceeds)
- To all members pari passu until members have received an 8% IRR
- To all member pari passu until member contributions have been returned upon a capital event (sale and/or refinance).
- All distributions above an 8% IRR and up to a 13% IRR will be split 85% to investors pari passu and 15% to Sponsor
- All distributions above a 13% IRR and up to a 17% IRR will be split 70% to investors pari passu and 30% to Sponsor
- Any excess balance will be split 55% to investors pari passu and 45% to Sponsor.
Investor distributions are projected to start in June 2016 and be distributed on a quarterly basis thereafter. These distributions are at the discretion of the Sponsor, 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 | $2,132,259 | $2,384,355 | $2,475,521 | $2,547,961 | $2,617,040 |
Operating Expenses | $745,893 | $804,236 | $829,245 | $854,043 | $879,332 |
Net Operating Income | $1,386,366 | $1,580,099 | $1,646,276 | $1,693,918 | $1,737,708 |
Net Cash Flow (After Reserves & Debt Service) | $756,667 | $731,832 | $800,009 | $1,029,651 | $973,441 |
Distributions to Realty Mogul 53, LLC Investors | $72,168 | $68,608 | $75,932 | $102,384 | $1,522,725 |
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 |
---|---|---|---|---|
One-Time Fees | ||||
Acquisition Fee | $370,000 (2% of purchase price) | Ross Realty Investments, Inc. and Avison Young - Florida, LLC, an affiliate of SunCap IV - Penn Dutch LLC | Capitalized Equity Contribution | Each entity received half of the fee |
Broker-Dealer Fee | $40,000 | North Capital (1) | Sun Cap IV - Penn Dutch LLC / Realty Mogul 53, LLC | SunCap IV - Penn Dutch LLC and Realty Mogul 53, LLC shall each pay half of the fee |
Leasing Commissions | Standard leasing and renewal commissions | Ross Realty Investments, Inc. | Operating Cash Flow | |
Sale Commissions | One-half (1/2) of all standard sale commissions | Ross Realty Investments, Inc. and Avison Young - Florida, LLC | Operating Cash Flow | Each entity is entitled to half of the sale commissions paid to Ross Realty Investments, Inc. |
Recurring Fees | ||||
Property Management Fee | 3.5% of gross rents collected | Avison Young Property Management (USA), LLC, an affiliate of SunCap, and Ross Realty Investments, Inc. | Operating Cash Flow | Each entity is entitled to receive half of the fee |
Asset Management Fee | 1.0% of gross rents collected | SunCap Opportunity Fund | Operating Cash Flow | |
Management and Administrative Fee | 2.0% of investment assets in Realty Mogul 53, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 53, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
Notes:
(1) Certain employees of Realty Mogul, Co. are also registered representatives of, and are paid commissions by, North Capital Private Securities Corporation, 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, 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 Sponsors. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 53, LLC, 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.
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