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.
Experienced real estate company that reports having over $2.6 billion of assets under management across over 675+ properties.
The Portfolio is 100% leased to investment-grade tenants with long term leases.
100% of the commercial tenants are essential businesses and have corporate-backed leases with Kroger, an investment-grade national grocer.
ExchangeRight Real Estate LLC - NLP 36
ExchangeRight is committed to providing 1031-exchangeable DST offerings of value-added multifamily properties and net-leased portfolios. Our multifamily platform targets Class B apartments with stable income and value added upside potential. We believe our multifamily offerings feature strong cash flow, high debt coverage ratios, conservative underwriting and long-term fixed-rate financing.
In addition to intentionally structuring offerings with an alignment of interest with investors, the principals of the company have taken a personal investment position in each DST offering that has been brought to market. Each of our DST offerings provides both 1031 and cash investors with pass-through tax deferral advantages.
Offering | Description | Targeted Annualized Return | Actual Annualized Return* |
---|---|---|---|
Net-Leased Preferred Equity Fund 1 | Shorter-term fund to acquire and sell net-leased assets for the Sponsor. | Range of 12-20%** | 12.93% |
Net-Leased Preferred Equity Fund 2 | Shorter-term fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. | Range of 8-12%** | 10.11% |
Acquisition Notes | Company that issues short term debt capital to the Sponsor to acquire and sell net-leased assets. Performing as expected. | Range of 12-14%** | 12% |
Multifamily 1 - Van Mark Creek Apartments | One apartment community consisting of 144 units. | 7.16% | 7.27% |
Multifamily 2 - Mira Bella and San Martin Apartments | Two apartment communities consisting of 378 units. | 6.68% | 6.82% |
Multifamily 3 - Lakeside at Arbor Place Apartments | One apartment community consisting of 246 units. | 6.54% | 11.08 |
Multifamily 5 - Crystal Lake Florida Apartments | One apartment community consisting of 224 units. | 6.44% | 8.51% |
Net-Leased Portfolio 1 | Portfolio of two long-term net-leased properties leased to Family Dollar. One of the two properties sold in January 2015 and the other sold in August 2019. | 7.25% | 9.40% - 10.53% |
Net-Leased Portfolio 2 | Portfolio of seven long-term net-leased properties leased to Family Dollar (6) and Dollar General (1). | 7.45% | 9.22% - 10.93% |
Net-Leased Portfolio 8 | Portfolio of thirteen long-term net-leased properties leased to Advance Auto Parts (3), AutoZone (2), CVS (1), Dollar General (2), Family Dollar (1), Franciscan Alliance (1), Ross Stores (1) and Tractor Supply (2). | 7.35% | 7.69% - 9.99% |
Net-Leased Portfolio 12 | Portfolio of nineteen single-tenant properties net-leased to necessity-based retail and healthcare tenants that are 100% occupied and operating as Advance Auto Parts (3), Dollar General (9), Family Dollar (1), Fresenius Medical Care (1), Kroger (1), Napa Auto Parts (2), Tractor Supply Co. (1), and Walgreens (1). | 6.30% | 7.01% - 9.92% |
Offering | Description | Targeted Annualized Return | Actual Annualized Return* |
---|---|---|---|
Income Fund - Class I | REIT offering of an identified portfolio of single-tenant, net-leased properties with investment-grade and national creditworthy tenants. | 6.53% | 6.89% |
Income Fund - Class A | REIT offering of an identified portfolio of single-tenant, net-leased properties with investment-grade and national creditworthy tenants. | 6.15% | 6.48% |
Net-Leased Preferred Equity Fund 4 | Shorter-term Fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. | 7.00% | 7.00% |
Net-Leased Preferred Equity Fund 3 | Shorter-term Fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. | 8.25% | 8.25% |
Net-Leased Preferred Equity Income Fund | Preferred equity investment to acquire single-tenant, net-leased properties with investment-grade and national creditworthy tenants. | 6.53% | 6.89% |
Acquisitions Notes 2 | Company that issues short term debt capital to the Sponsor to acquire and sell net-leased assets. Performing as expected. | Range of 8- 12%** |
10.00% |
Acquisition Notes 3 | Company that issues short term debt capital to the Sponsor to acquire and sell assets. Performing as expected. | 8.25% | 8.25% |
Net-Leased Portfolio 3 | Portfolio of nine long-term net-leased properties leased to Family Dollar (8) and Dollar General (1). Performing as expected. | 7.52% | 7.52% |
Net-Leased Portfolio 4 | Portfolio of eleven long-term net-leased properties leased to Family Dollar (8), Dollar General (1), Aaron's (1) and Advance Auto Parts (1). Performing as expected. | 7.00% | 7.00% |
Net-Leased Portfolio 5 | Portfolio of fourteen long-term net-leased properties leased to Family Dollar (5), Dollar General (4), Advance Auto Parts (2), AutoZone (1), Sherwin Williams (1) and The Christ Hospital (1). Performing as expected. | 6.27% | 6.27% |
Net-Leased Portfolio 6 | Portfolio of sixteen long-term net-leased properties leased to Family Dollar (3), Dollar General (8), Advance Auto Parts (1), AutoZone (1), CVS (1), Dollar Tree (1) and Tractor Supply (1). Performing as expected. | 7.87% | 7.87% |
Net-Leased Portfolio 7 | Portfolio of sixteen long-term net-leased properties leased to Family Dollar (4), Dollar General (8), Advance Auto Parts (1), CVS (1), Napa Auto Parts (1), and O'Reilly Auto Parts (1). Performing as expected. | 7.80% | 7.80% |
Net-Leased Portfolio 9 | Portfolio of twenty-two long-term net-leased properties leased to Advance Auto Parts (4), AutoZone (4), CVS (1), Dollar General (9), Hobby Lobby (1), Napa Auto Parts (2) and TCF National Bank (1). Performing as expected. | 7.37% | 7.41% |
Net-Leased Portfolio 10 | Portfolio of twenty-two long-term net-leased properties leased to Advance Auto Parts (3), AutoZone (1), CVS (1), Dollar General (5), Dollar Tree (1), Family Dollar (4), Napa Auto Parts (2), O'Reilly Auto Parts (2), PNC Bank (1) and Tractor Supply (2). Performing as expected. | 7.13% | 7.13% |
Net-Leased Portfolio 11 | Portfolio of seventeen long-term net-leased properties leased to Advance Auto Parts (3), CVS (1), Dollar General (5), Family Dollar (2), Hobby Lobby (1), Napa Auto Parts (3), Sherwin- Williams (1) and Walgreens (1). | 6.78% | 6.78% |
Net-Leased Portfolio 13 | Portfolio of twenty long-term net-leased properties leased to Advance Auto Parts (1), CVS, (1), Dollar General (5), Family Dollar (4), Hobby Lobby (1), Napa Auto Parts (1), Sherwin Williams (4), Tractor Supply (1) and Walgreens (2). | 6.64% | 6.80% |
Net-Leased Portfolio 14 | Portfolio of seventeen long-term net-leased properties leased to Advance Auto Parts (1), Athletico Physical Therapy (1), Dollar General (6), Fresenius Medical Care (2), MedSpring (1), Napa Auto Parts (1), O’Reilly Auto Parts (1), Tractor Supply (1) and Walgreens (3). | 6.62% | 6.68% |
Net-Leased Portfolio 15 | Portfolio of sixteen long-term net-leased properties leased to Advance Auto Parts (2), CVS (1), Dollar General (6), Family Dollar (1), Fresenius Medical Care (1), Goodwill (1), Hobby Lobby (1), Indianapolis Osteopathic Hospital (1) and Walgreens (2). | 6.55% | 6.55% |
Net-Leased Portfolio 16 | Portfolio of nineteen long-term net-leased properties leased to Advance Auto Parts (3), Dollar General (7), Family Dollar (1), Hobby Lobby (1), Sherwin Williams (1), Tractor Supply (2) and Walgreens (4). | 6.78% | 6.78% |
Net-Leased Portfolio 17 | Portfolio of sixteen long-term net-leased properties leased to Advance Auto Parts (1), Dollar General (7), Goodwill (1), Pick ‘n Save (Kroger Guarantee) (1), Napa Auto Parts (1), Tractor Supply (2), Verizon Wireless (1) and Walgreens (2). | 6.84% | 6.84% |
Net-Leased Portfolio 18 | Portfolio of seventeen long-term net-leased properties leased to Advance Auto Parts (1), CVS (1), Dollar General (6), Fresenius Medical Care (1), Hobby Lobby (1), Napa Auto Parts (1), Tractor Supply (2) and Walgreens (4). | 6.65% | 6.65% |
Net-Leased Portfolio 19 | Portfolio of twenty-one long-term net-leased properties leased to Advance Auto Parts (2), Dollar General (9), Fresenius Medical Care (1), Hobby Lobby (1), Napa Auto Parts (2), Verizon Wireless (1) and Walgreens (3). | 6.78% | 6.78% |
Net-Leased Portfolio 20 | Portfolio of sixteen long-term net-leased properties leased to Advance Auto Parts (3), Dollar General (4), Fresenius Medical Care (1), BioLife Plasma Services LP (1), NAPA Auto Parts (1), Pick n Save (1), Tractor Supply (2), Verizon Wireless (1) and Walgreens (2). | 6.54% | 6.54% |
Net-Leased Portfolio 21 | Portfolio of twenty long-term net-leased properties leased to Advance Auto Parts (1), Dollar General (6), Fresenius Medical Care (3), Hobby Lobby (1), Nappa Auto Parts (2), O'Reilly Auto Parts (1), Tractor Supply (3) and Walgreens (3). | 6.39% | 6.43% |
Net-Leased Portfolio 22 | Portfolio of fifteen long-term net-leased properties leased to BioLife Plasma Services (1), CVS (1), Dollar General (4), Family Dollar (1), First Midwest Bank (1), Fresenius Medical Care (1), Pick ‘n Save (1), Tractor Supply (2) and Walgreens (3). | 6.33% | 6.33% |
Net-Leased Portfolio 23 | Portfolio of twenty-four long-term net-leased properties leased to Advance Auto Parts (2), AutoZone (2), Dollar General (8), Family Dollar (2), GIANT Food Store (1), Tractor Supply (2), and Walgreens (7). | 6.19% | 6.30% |
Net-Leased Portfolio 24 | Portfolio of twenty-four long-term net-leased properties leased to Advance Auto Parts (2), BioLife Plasma Services (2), CVS (1), Dollar General (5), Dollar Tree (1), Fresenius Medical Care (1), Pick ‘n Save (1), Sherwin Williams (1), Tractor Supply (3) and Walgreens (7). | 6.13% | 6.13% |
Net-Leased Portfolio 25 | Portfolio of twenty-one long-term net-leased properties leased to BioLife Plasma Services (2), Dollar General (8), Family Dollar (2), Hobby Lobby (1), Hy-Vee (1), Tractor Supply (3), and Walgreens (4). | 6.10% | 6.15% |
Net-Leased Portfolio 26 | Portfolio of nineteen long-term net-leased properties leased to Advance Auto Parts (1), AutoZone (1), CVS (1), Dollar General (5), Hy-Vee (1), Pick n' Save (1), Tractor Supply (4), and Walgreens (5). Performing as projected. | 6.10% | 6.11% |
Net-Leased Portfolio 27 | Portfolio of eighteen long-term net-leased properties leased to Advance Auto Parts (1), BioLife Plasma Services (1), Dollar General (4), Dollar Tree (1), Hy-Vee (1), O'Reilly Auto Parts (2), Pick n' Save (1), Tractor Supply (1), and Walgreens (6). Performing as projected. | 6.36% | 6.36% |
Net-Leased Portfolio 28 | Portfolio of twenty-three long-term net-leased properties leased to Dollar General (6), Dollar Tree (1), Fresenius Medical Care (1), Hobby Lobby (2), O'Reilly (1), Pick 'n Save (2), Tractor Supply (2), and Walgreens (8). Performing as projected. | 6.34% | 6.82% |
Net-Leased Portfolio 29 | Portfolio of twenty-four long-term net-leased properties leased to BioLife Plasma Services (1), CVS (1), Dollar General (10), Fresenius Medical Care (2), Hobby Lobby (1), Tractor Supply (2), and Walgreens (7). Performing as projected. | 6.75% | 6.82% |
Net-Leased Portfolio 30 | Portfolio of twenty-one long-term net-leased properties leased to AutoZone (1), Dollar General (8), Fresenius Medical Care (1), Giant Eagle (1), Hobby Lobby (1), Tractor Supply Co. (4), and Walgreens(5). Performing as projected. | 6.74% | 6.80% |
Net-Leased Portfolio 31 | Portfolio of twenty-five long-term net-leased properties leased to Advance Auto Parts (1), BioLife Plasma Services (1), CVS (4), Dollar General (7), Giant Eagle (1), Hobby Lobby (2), Hy-Vee (1), Tractor Supply Co. (5), and Walgreens (3). Performing as projected. | 6.72% | 6.76% |
Net-Leased Portfolio 32 | Portfolio of twenty-seven long-term net-leased properties leased to Advance Auto Parts (1), BioLife Plasma Services (1), CVS (7), Dollar General (7), Fresenius Medical Care (2), Hobby Lobby (2), Tractor Supply Co. (4), and Walgreens (3). Performing as projected. | 6.63% | 6.65% |
Net-Leased Portfolio 33 | Portfolio of eleven long-term net-leased properties leased to Dollar General (7), Tractor Supply Co. (2), and Walgreens (2). | 5.15% | 5.15% |
Net-Leased Portfolio 34 | Portfolio of four long-term net-leased properties leased to Ballad Health (1), Dollar General (1), FedEx (1), and Walgreens (1). | 5.11% | 5.11% |
Net-Leased Portfolio 35 | Portfolio of four long-term net-leased properties leased to Tractor Supply (2) and Walgreens (2). | 6.00% | 6.01% |
Multifamily 4 - North Austin Apartment Portfolio | Three (3) apartment communities consisting of 422 units. Performing as expected. | 6.68% | 6.68% |
Multifamily 6 - El Paso Apartment Portfolio | Two (2) apartment communities consisting of 393 units. Performing as projected. | 6.06% | 6.36% |
*These returns were provided by and calculated by the Sponsor
**These investment opportunities are open-ended (i.e. Investors come into the fund at different times) resulting in a range of returns
*** Past performance may not be indicative of future results.
On June 30, 2020 (the “Loan Closing Date”), the Sponsor acquired the Properties for an aggregate acquisition cost of $38,867,268 and then assigned all of the Properties to the Trust pursuant to the terms of the Trust Agreement. The Properties are now owned 100% by the Trust. In conjunction with the purchase of the Properties, ExchangeRight NLP 36 Master Lessee ("Master Lessee") became the lessor under the Tenants’ leases. The Trust is a passive owner of the Properties and is not to be involved in any manner in the active management of the Properties. The Manager has been appointed to manage the Trust pursuant to the Trust Agreement.
Investors are being offered the opportunity to invest in a portfolio of two (2) single-tenant, long-term net-leased retail assets (the "Portfolio", or the "Properties") that are currently 100% occupied by Pick n' Save.
ExchangeRight Net-Leased Portfolio 36 DST, a Delaware Statutory Trust ("DST"), owns the Portfolio, and ExchangeRight Real Estate, LLC ("Sponsor") is offering beneficial interests in the trust to investors. The Sponsor is retaining at least a 1.0% ownership interest in the Portfolio and is offering up to 99.0% of the beneficial interests in the DST to accredited investors ("Beneficial Owners"). The Trust expects to provide the Beneficial Owners a return on their investment in two primary ways: (i) in the form of monthly cash distributions to the Beneficial Owners; and (ii) upon any Disposition of the Properties.
The total offering amount is $44,503,300 of which $24,295,000 is equity and $20,208,300 is long-term fixed rate financing.
This offering is designed for two types of investors. "Existing 1031 Investors" who have already sold or are planning to sell an existing property that is 1031 eligible and want to invest in this offering to complete their 1031 exchange. As well as "Cash Investors" who are investing with funds that are not part of an existing 1031 exchange but want the option for future sales to be 1031 exchange eligible. Existing 1031 Investors may invest for a minimum of $100,000; Cash Investors may invest for a minimum of $25,000 at the Sponsor's discretion.
Tenant | Location | Credit Rating | Size | Current NOI | Lease Type | Lease Expiration |
Pick n' Save (Kroger Guarantee) | Menomonee Falls, WI | BBB | 103,611 | $1,710,100 | NN | 12/31/30 |
Pick n' Save (Kroger Guarantee) | Sussex, WI | BBB | 83,771 | $687,956 | NN | 12/31/29 |
*Credit Ratings are from S&P (Standard & Poor)
Tennant Summaries**
Pick ‘n Save was founded in 1975 in Milwaukee, Wisconsin and is now the premier supermarket chain in Wisconsin with over 100 stores serving customers. Featuring competitive employee benefits and a strong commitment to promote from within, Pick ‘n Save employs approximately 10,000 employees. In 2015, Pick ‘n Save became a wholly owned subsidiary of Kroger (NYSE: KR). The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. It operates under the banner brands, such as Kroger, Ralphs, Fred Meyer, King Soopers, etc., as well as Simple Truth and Simple Truth Organic brands.
**Tenant Summaries have been provided by Sponsor and have not been verified by Realty Mogul or North Capital Private Securities
Appraisals for all properties available upon request. Please email investor-help@realtymogul.com.
The Portfolio contains properties located in the following cities and states:
- Menomonee Falls, WI
- Sussex, WI
Sources of Funds | Cost |
Equity | $24,295,000 |
Debt | $20,208,300 |
Total Sources of Funds | $44,503,300 |
Use of Funds | Cost |
Purchase Price | $38,629,831 |
Acquisition Closing Cost | $1,669,231 |
Acquisition Fee | $609,241 |
Reallowance of Acquisition Fee | $242,950 |
Broker-Dealer Fee and Marketing Allowance | $1,943,600 |
Syndication Costs & Third Party Costs | $90,000 |
Organizational, Offering Costs, Pre-Paid Taxes, & Insurance | $62,980 |
Reserves (excluding Pre-paid Taxes & Insurance) | $1,194,730 |
Sponsorship Cost | $60,738 |
Total Use of Funds | $44,503,300 |
The Sponsor is to make distributions directly to investors who own a beneficial interest in the DST on a pro-rata basis.
Distributions are expected to start for each investor within 45 days of the completion of that investors beneficial interest in the DST. Distributions are expected to continue on a monthly basis thereafter. These distributions are at the discretion of the Sponsor and made directly by the Sponsor, neither Realty Mogul Co. nor any of its affiliates have any control or discretion on the timing or amount of distributions.
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 | $609,241 | Sponsor | Capitalized Equity Contribution | 2.51% of the offering amount. |
Reallowance of Acquisition Fee | $242,950 | Sponsor | Capitalized Equity Contribution | Up to 1.0% of the offering amount. Paid to Exchange Right Securities, an affiliate of Sponsor. |
Broker-Dealer Fee | $1,700,650 | Broker Dealers | Capitalized Equity Contribution | 6.5% of the offering amount. Paid to North Capital(1) or other licensed broker-dealers based on the amount of equity capital raised. Additional 0.5% paid to Exchange Right Securities, an affiliate of Sponsor, of which up to half may be reallowed to the Sponsor. Surplus fees retained by Sponsor. |
Marketing & Due Diligence Fee |
$242,950 |
Broker Dealers | Capitalized Equity Contribution | 1.0% based on the amount of equity invested by investors through RealtyMogul.com, third-party Broker Dealers (including North Capital(1))are entitled to additional fees based on equity they originate. Surplus fees retained by Sponsor. |
Syndication Costs | $70,000 | Sponsor or Third Parties | Capitalized Equity Contribution | Approximately 0.29% of the Maximum Offering Amount |
Organizational & Offering Costs | $48,590 | Sponsor | Capitalized Equity Contribution | 0.2% of maximum offering amount. |
Sponsorship Cost | $60,738 | Sponsor | Capitalized Equity Contribution | Approximately 0.25% of the offering amount. To reimburse Sponsor for accounting, due diligence, marketing, distribution, and other costs. |
Disposition Fee | 2.0% | Manager | Disposition Proceeds |
2.0% of gross proceeds from disposition of property if disposition price is greater than $38,629,831. |
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Asset Management Fee |
0.31%-0.40% of gross rental income | Manager | Operating Cash Flow | |
Property Management Fee | 2.5% of gross rental income | Manager | Operating Cash Flow |
|
Trustee Fee | $750 annually | Third-Party | Operating Cash Flow | Unaffiliated third party |
Master Lease Operating Profit | N/A | Master Lessee | Operating Cash Flow | Master Lessee will retain operating revenues from the Properties that exceed the annual base rent. |
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.
The above presentation is based upon information supplied by the Sponsor or others. Realty Mogul, Co. along with its 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.