The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
Clear Height Properties
Clear Height Properties ("Clear Height") is a real estate investment and management company headquartered in Chicago, Illinois. The company’s vision is to create value for its clients through acquiring and developing properties in the most desirable locations. From the beginning Clear Height has been driven by the belief that, “the work they do is a reflection of who they are.” That belief is what guides them in providing a transparent, dependable and entrepreneurial atmosphere for their team members, clients, and partners.
Acquisition
Clear Height, along with its partners, has developed a system designed to handle all aspects of real estate opportunities to allow for quick valuations, short due diligence, and “cash” closings. Their acumen and balance sheet gives them a competitive advantage in the market place to source the type of projects they are looking to invest in. With a heavy focus on industrial real estate opportunities, Clear Height is seeking value-add investments that are underperforming, distressed, and entrepreneurial in nature. In order to take advantage of these opportunists, they are experienced and capable of handling note purchases, build-to-suits, short-sales, portfolio sales and other opportunities.
Property Management
Clear Height’s property management group understands that each asset has its own specific financial objectives. With their approach to managing properties, they are able to provide customer service to their tenants, all while keeping a healthy bottom-line. Believing that tenant retention is the key to superb property management, their tenants have come to appreciate the high-touch they provide, and with most requests being handled within 24 hours. In addition, their team focuses on tenant relations, occupancy target levels, increased rental performance and an overall better understanding of a tenant's needs and how they compare with the owner's goals. They take this a step further with a proactive approach to lowering operating costs without sacrificing service to the tenants.
Asset Management
Clear Height’s asset management group looks to help investors receive measurable returns with their real estate holdings. Clear Height researches and evaluates the most optimal operational strategies for each asset with a focus on maximizing property values while mitigating risk. Clear Height’s track record of in-house leasing and management allows them to foster strong tenant relations that assist in maintaining occupancy levels. With Clear Height’s operational focus and expertise, they seek to control expenses and maximize efficiencies to create long-term cash flow sustainability and growth.
Leasing
Clear Height creates marketing strategies aligned with each asset's business plan that focus on obtaining and retaining the best tenants the market has to offer. They accomplish this by analyzing the local marketplace as it relates to trends, prospects, cycles and most importantly working with the brokerage community.
http://www.clearheight.com/-
Wes G. TaubelManaging Partner -
Daniel J. HumlChief Investment Officer -
Rick NevarezExecutive Vice President -
Joe SergiChief Operating Officer
Mr. Taubel has an extensive background in real estate development and construction, having built or developed over $350 million in real estate, primarily in mixed use and multifamily. Mr. Taubel has a deep knowledge of medium to high density residential having entitled and master planned in excess of $1 billion of urban mixed use residential projects. In his role at TWO he is responsible for setting the strategic direction of the Firm, sourcing opportunities and managing the entire development and acquisition process for the projects the Firm undertakes.
Prior to founding TWO, Mr. Taubel was an Assistant Vice President of Development at Ambling Companies, Inc., a full service multi-family real estate development firm located in Atlanta, Georgia. Mr. Taubel was responsible for all aspects of project development on all conventional and commercial transactions. Mr. Taubel was responsible for the development, master planning and entitlement of over three million square feet of urban mixed use transaction. He has successfully negotiated numerous municipal development agreements, facilitated the creation of TADs and repeatedly worked with municipalities to create custom and innovated zoning and entitlement classifications for multi-phased mixed use transactions. Prior to Ambling Mr. Taubel was a Regional Development Manager at Ashwood Development handling all aspects of land development in Atlanta and Northwest Florida, totaling over 1,800 lots and multiple commercial parcels. Prior to that, Mr. Taubel was an Assistant Project Manager at Hardin Construction working on multiple hotels and luxury condominiums totaling over $100 million in construction value, most notably the Intercontinental Hotel - Buckhead.
Mr. Taubel is a graduate of Auburn University with a Bachelor’s of Science in Building Science and a minor in Business. Mr. Taubel graduated with honors from the Goizueta Business School at Emory University, earning his MBA and membership in the National Business Honorary Society, Beta Gamma Sigma. Mr. Taubel is an active member of the Urban Land Institute and ICSC.
As chief investment officer, Dan is responsible for the origination, underwriting, financing and closing of all real estate acquisitions, dispositions and joint venture agreements, along with all portfolio management activities. Prior to joining Clear Height Properties in 2010, Dan worked for BPG Properties, Ltd. (now Equus Capital Partners), a leading private equity fund manager. During his tenure with BPG, Dan was involved in the acquisition and management of more than six million square feet of institutional assets throughout the United States. Dan has also worked at Transwestern and in the Real Estate Acquisitions Department of Walgreens. Dan has served on the Advisory Board of the Urban Land Institute in Chicago, the Auxiliary Board of the Northwestern Memorial Hospital and the Cystic Fibrosis Foundation. Dan is a graduate of Indiana University, Kelley School of Business, B.S. in Finance and Real Estate and is an Illinois Licensed Real Estate Broker.
Rick Nevarez is a 10+ year commercial real estate veteran. Rick began his career in the commercial real estate industry with global industrial real estate investment trust Prologis. His responsibilities included management, leasing, client retention, project management, and overseeing an operating budget of six million square feet of industrial and office real estate. While at Prologis, Rick coordinated a multi-million dollar disposition of industrial real estate to the City of Chicago/O’Hare Modernization Project. Rick also worked at ML Realty Partners, a private industrial real estate investor. During his tenure at ML, Rick oversaw third party management teams and brokerage teams. Rick was also previously assigned to assist with the strategic leasing and disposition of Bridgestone Americas industrial real estate portfolio throughout the United States. Rick is actively involved in the DePaul Real Estate Alumni Alliance (DREAA) and is also a member of Young Real Estate Professionals (YREP), Young Professional of Chicago (YPC) and International Council of Shopping Centers (ICSC). Rick is a graduate of DePaul University, Driehaus College of Business, B.S. in Finance and Management and a Licensed Real Estate Broker in the State of Illinois.
As chief operating officer, Joe oversees property management, construction and business development. Prior to joining the firm, Joe was the Senior Vice President for Rex Electric & Technologies, where he oversaw employees both in the office and those in the field providing all electrical, maintenance and technology services to clients. Employed at REX since he was a teenager, Joe worked his way up from a warehouse laborer to office positions in estimating, project coordination and project management. While leading the Technology Division, Joe's business development efforts allowed it to double in size from 2009 to 2013. Joe was also responsible for the acquisition and strategic alliances in 2013‐14 that have extended REX’s reach and enabled the company to provide better service and value to REX clients. After graduating from college in 2007, with a degree in Communications, Joe was a Tenant Representative for nearly three years for Newmark Knight Frank, a commercial real estate company. Joe balances his demanding career while serving civic and philanthropic organizations throughout the area. He has been an active member of the Building Owners and Managers Association (BOMA) since 2010 and is a member of BOMA’s Emerging Leaders Board.
| Property Location | Type | Date Acquired | # of Units | SF | Total Capitalization |
| Addison, IL | Industrial | 1994 | 15 | 24,038 | $985,231 |
| Addison, IL | Industrial | 2000 | 1 | 25,000 | $1,501,634 |
| Kankakee, IL | Land | 2006 | 0 | 217,800 | $823,000 |
| Addison, IL | Industrial | 2011 | 9 | 49,515 | $1,575,000 |
| Milwaukee, WI | Retail/Office | 2012 | 8 | 22,500 | $1,062,000 |
| Elk Grove Village, IL | Industrial | 2013 | 10 | 29,580 | $1,236,062 |
| Addison, IL | Industrial | 2013 | 13 | 79,997 | $2,965,073 |
| Des Plaines, IL | Industrial | 2013 | 30 | 48,101 | $2,034,722 |
| Wooddale, IL | Office/Industrial | 2014 | 5 | 33,745 | $1,657,850 |
| Northbrook, IL | Industrial | 2014 | 6 | 42,679 | $2,342,113 |
| Northbrook, IL | Industrial | 2015 | 6 | 41,835 | $2,431,808 |
| Schaumburg, IL | Industrial | 2015 | 10 | 43,799 | $2,498,220 |
| Bensenville, IL | Industrial | 2015 | 10 | 100,000 | $3,686,655 |
| Mount Prospect, IL | Industrial | 2015 | 28 | 127,642 | $6,562,763 |
| Elk Grove Village, IL | Industrial | 2015 | 6 | 21,400 | $961,795 |
| Franklin Park, IL | Industrial | 2015 | 1 | 61,050 | $1,871,725 |
| Aurora, IL | Industrial | 2015 | 1 | 30,000 | $1,652,876 |
| Rolling Meadows, IL | Industrial | 2015 | 1 | 22,644 | $1,188,955 |
| Wheeling, IL | Industrial | 2015 | 11 | 31,726 | $1,611,094 |
| Elk Grove Village, IL | Industrial | 2015 | 3 | 20,000 | $904,124 |
| Elgin, IL | Industrial | 2015 | 4 | 27,600 | $1,083,933 |
| Des Plaines, IL | Industrial | 2015 | 2 | 14,372 | $598,365 |
| Chicago, IL 1 | Multifamily | 2011 | 11 | 10,000 | $1,450,000 |
| Bolingbrook, IL 2 | Industrial | 2012 | 8 | 25,000 | $1,988,567 |
| Elk Grove Village, IL 3 | Industrial | 2014 | 1 | 11,922 | $464,593 |
| Total | 200 | 1,161,945 | $45,138,157 |
1 Sold in 2012 for $1.75M
2 Sold in 2014 for $2.5M
3 Sold in 2015 for $540K
In this transaction, RealtyMogul.com investors will invest in Realty Mogul 58, LLC. Realty Mogul 58, LLC will subsequently invest in CHP Bloomingdale Real Estate, LLC, the entity that will hold title to the Property.
Clear Height Properties (the "Sponsor") believes the upside potential of this investment is the result of an absentee owner reluctant to spend the capital necessary to maximize leasing, along with poor maintenance and expense management by the existing third party manager.
Current vacancy at the Property of 14.5% is well above the 4% level seen across the submarket, and while existing leases at the Property average $6.88 per square foot, comparable leasing in the submarket is achieving average rents over $8.00 per square foot.
The Sponsor's business plan entails stabilizing the Property and enhancing net operating income by re-leasing the remaining vacant suites and increasing to market the currently below market leases as they expire. The Sponsor also intends to enhance the overall operations of the Property through improved management, and by leveraging the economies of scale provided by their local industrial portfolio of approximately one million square feet.
RealtyMogul.com, along with Clear Height Properties (the "Sponsor"), is providing the opportunity to invest in the acquisition and ownership of a 104,419 square foot, flex-industrial property located in Glendale Heights, IL within the Chicago MSA (the "Property").
The primary objective of this investment is to acquire the Property below replacement cost, stabilize occupancy through tenant retention and acquisition, bring rents up to market, and sell the Property within approximately five (5) years.
The Sponsor sees this investment as an opportunity to capitalize on an under managed asset in a market where they are an owner and manager of twenty industrial assets totaling approximately one million square feet.
Clear Height Properties is a dba for SFP Commercial Real Estate, LLC
Built in 1980, this 85.5% occupied flex-industrial asset is comprised of 104,419 square feet across two buildings that have been subdivided into 16 suites ranging in size from 1,107 to 14,794 square feet. The majority of the suites contain a mix of both warehouse and office space (office build-outs range from 0-100% and average 26%). The Property is equipped with 17 exterior docks, 14 drive-in doors, has estimated clear heights of 15 feet, and features 200 surface parking spaces (1.91 spaces per 1,000 square feet). It also enjoys five access points that provide the necessary space for truck maneuverability.
| Sales Comps | ||||
| Address | Sale Date | Size (SF) | Price | $/SF |
| SFP Armitage, Addison 1 | Under Contract | 79,992 | $4,250,000 | $53 |
| 1198 Nagel Blvd., DuPage | 9/18/2015 | 131,250 | $7,937,500 | $60 |
| 6350 Church Rd., North DuPage | 6/15/2015 | 83,666 | $5,800,000 | $69 |
| 10 W. North Ave., Lombard | 3Q2015 | 118,680 | $7,863,500 | $66 |
| 999 Regency Dr., Glendale Heights | 3Q2015 | 48,663 | $3,202,000 | $66 |
| 1101 Lombard Rd. N, Lombard | 3Q2015 | 40,896 | $2,126,592 | $52 |
| Average | 83,858 | $62 | ||
| Submarket Average (since 2003) | $77 | |||
| Subject | 104,419 | $5,110,000 | $49 | |
1 The Sponsor is an owner and manager of this deal that is currently under contract to be sold
| Leasing Comps | |||||||
| Deal | Type | Size | Lease Rate | Lease Start | Term | Escalation | Abatement |
| 1032 N DuPage, Lombard | MG | 2,912 | $8.25 | 07/01/14 | 3.17 | 2.75% | 1 |
| 1040 N DuPage, Lombard | MG | 5,661 | $8.10 | 10/01/14 | 5.25 | 3.00% | 2 |
| 972 N DuPage, Lombard | MG | 2,547 | $8.25 | 08/01/14 | 2.17 | 2.50% | 0 |
| 960 N DuPage, Lombard | MG | 5,036 | $7.70 | 08/01/14 | 3.00 | 3.00% | 1 |
| 976 N DuPage, Lombard | MG | 2,553 | $8.15 | 09/01/14 | 2.00 | 3.00% | 0 |
| 1040 N DuPage, Lombard | MG | 5,661 | $8.35 | 01/01/15 | 5.25 | 2.50% | 4 |
| 1054 N DuPage, Lombard | MG | 5,133 | $8.25 | 02/01/15 | 5.25 | 2.50% | 3 |
| 974 N DuPage, Lombard | MG | 2,533 | $8.00 | 02/01/15 | 1.00 | 0.00% | 0 |
| 1034 N DuPage, Lombard | MG | 5,117 | $8.25 | 05/01/15 | 1.00 | 0.00% | 0 |
| 980 N DuPage, Lombard | MG | 5,036 | $8.95 | 09/01/15 | 5.08 | 3.00% | 1 |
| Average | MG | 4,219 | $8.24 | 3.32 | 2.78% | 1.20 | |
| Subject - In Place | MG | 6,526 | $6.88 | 3.20 | |||
| Subject - Projected 1 | MG | 6,526 | $7.88 | 5.00 | 2.50% | 0.00 | |
1 Weighted average for new and renewal leases within the first 24 months
The comparables included in the above tables were either sourced from CoStar or Real Capital Analytics, or they were provided by the Sponsor
The Property is located in the Glendale Industrial Park of Glendale Heights, IL approximately 29 miles west of the Chicago CBD in the Central DuPage submarket. Situated on a hard corner less than three miles west of I-355, the Property's main intersection (Bloomingdale Road/Brandon Drive) receives a daily traffic count of 27,300 cars per day (CoStar - 2014). The depth of this industrial pocket of the Central DuPage submarket is due to its proximity to Interstate 355, which is the primary north-south artery in the region. There is minimal inventory in Glendale Industrial Park that competes with this product.
Market Overview
As one of the three largest industrial markets in the U.S., Chicago remains the most influential industrial market in the Midwest due to its growing prominence as an inland port and its diverse, comparatively low-cost labor force. Chicago’s strategic location and transportation infrastructure make it one of the most important transportation centers in the country.
Submarket Overview
According to NAI Capital: As of Q3 2015, the mature Central DuPage Submarket has long been favored by users and both private and public investors for its relatively low property taxes, well-educated workforce and access to Metropolitan Chicago’s arterial roads and interstate system. Users in the Central DuPage submarket vary by type and are not limited to primarily distribution like other nearby submarkets. This diversified economy has grown over the past few decades and as a result there are very few vacant land sites that remain available for infill development. The Central DuPage submarket vacancy rate decreased 38 basis points from the previous quarter to the current rate of 4.01%. This submarket has the lowest vacancy rate throughout the Chicago metropolitan industrial market.
Demographic Information
| Demographics | 1 Mile | 3 Miles | 5 Miles | |
| Population (2015) | 20,042 | 99,398 | 275,689 | |
| Growth (2010-2015) | 0.80% | 2.53% | 1.70% | |
| Growth (2015-2020) | 1.99% | 2.41% | 2.19% | |
| Median HH Income (2015) | $59,119 | $65,432 | $73,637 | |
Demographic information above was obtained from CoStar
| Total Capitalization | ||
| Debt | $3,729,959 | |
| Equity | $1,951,993 | |
| Total Sources of Funds | $5,681,952 | |
| Purchase Price | $5,110,000 | |
| Acquisition Fee | $127,750 | |
| Broker-Dealer Fee | $40,000 | |
| CapEx, TI, LC | $226,728 | |
| Working Capital | $100,000 | |
| Closing Costs & Other Fees | $77,473 | |
| Total Uses of Funds | $5,681,952 | |
The projected terms of the debt financing are as follows:
- Lender: First Community Financial Bank
- Estimated Proceeds: $3,729,959, of which $152,959 to be reserved for capital improvements and leasing costs
- Estimated Rate: Fixed (4.25%)
- Amortization: 25 years, with two years of interest-only
- Term: 5 years
- Prepayment Penalty: While there will be no prepayment penalty if the Property is sold to an unrelated third party, the loan will contain a 3/2/1/1/1 prepayment penalty if the loan is refinanced at another financial institution, with the last six months of the loan term being at par.
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.
CHP Bloomingdale Real Estate, LLC will make distributions to Realty Mogul 58, LLC as follows: pro rata share of cash flow to a 10% Internal Rate of Return ("IRR") hurdle, with a 70/30 split thereafter (70% to members, 30% to Sponsor) of excess cash flows and appreciation. Realty Mogul 58, LLC will distribute 100% of its share of excess cash flow (after expenses) to the members of Realty Mogul 58, LLC (the RealtyMogul.com investors). The manager of Realty Mogul 58, LLC will receive a portion (up to 10%) of the Sponsor's promote interest.
Order of Distributions to Realty Mogul 58, LLC (Operating Income, Refinance, and Sales Proceeds)
- To all members pari passu until contributions have been returned and members have received a 10% IRR
- Any excess balance will be split 70% to members pari passu and 30% to Sponsor
Distributions are projected to start in September 2016 and are projected to continue 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 | $627,680 | $737,726 | $791,251 | $846,530 | $876,563 |
| Total Operating Expenses | $272,835 | $286,363 | $293,521 | $305,989 | $312,647 |
| Net Operating Income | $354,845 | $451,363 | $497,730 | $540,541 | $563,916 |
| Distributions to Realty Mogul 58, LLC Investors | $76,708 | $77,617 | $78,578 | $79,240 | $106,427 |
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 | $127,750 | Sponsor | Capitalized Equity Contribution | 2.5% of the property purchase price |
| Broker-Dealer Fee | The greater of 4.0% or $40,000 | North Capital (1) | Capitalized Equity Contribution | 4.0% based on the amount of equity invested by Realty Mogul 58, LLC |
| Legal Expense Fee | $10,000 | North Capital | Capitalized Equity Contribution | |
| Recurring Fees: | ||||
| Property Management Fee | 4.0% of effective gross revenues | SFP Commercial Real Estate, LLC, an affiliate of the Sponsor | Operating Cash Flow | |
| Asset Management Fee | 1.0% of effective gross revenues | Sponsor | Operating Cash Flow | |
| Management and Administrative Fee | 1.5% of amount invested in Realty Mogul 58, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 58, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
Notes:
(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 Sponsor or others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 58, 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.
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.