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The Property is located just twenty-five miles outside Washington, DC and within a 25-minute drive to Amazon's new HQ2 located in Crystal City, VA. Woodbridge has a median household income of $122,426 within a five miles radius of the Property. The Property has easy access to Interstate I-95 and 1.6 million SF of retail within a seven-mile drive from the Property.
The Property is being acquired at a 5.10% cap rate on in-place revenue with the expectation of increasing NOI by approximately 16.5% in the first three years of ownership. This Property has a history of operating efficiently with high occupancy at 90% or better. Georgetown Partners intends to continue to operate the Property at high occupancy levels while creating value by completing the unit renovation plan on the remaining 75% of the Property.
The Property has been well maintained and recently improved by the seller. The seller has injected approximately $1.6 million of capital into the Property with enhancements.
Georgetown Partners
Georgetown Partners is a private real estate investment company focused on real estate in the Washington, DC Metro area. Georgetown targets both stabilized and value-add opportunities, which will diversify the investment portfolios for investors. With over twenty years of commercial real estate experience, Georgetown Partners has worked with institutional clients delivering results. Georgetown Partners is a fully integrated company. Georgetown Partners was founded in late 2017 and has a portfolio of multiple assets valued at $40 million with projected stabilized values of $50 million. In addition, to the existing assets under management, Georgetown Partners is acquiring $60 million of multifamily deals under contract in the Washington DC Metro that are set to close in the first two quarters of 2021. As a company, Georgetown Partners is focused on recession-resistant asset classes including medical office and affordable/workforce housing. The principals of Georgetown Partners have depth of experience nationwide across all asset classes.
https://www.gtownpartners.com/-
Mario LevineManaging Director -
Corban TomlinsonManaging Director
Mario Levine is a Managing Director and Co-Founder of Georgetown Partners. Prior to forming Georgetown Partners, Mr. Levine was the Director of Real Estate for Maplewood and Allegiance Realty Corporation (joint venture partners), where he worked on the development and asset management of a conventional and medical office portfolio. At Allegiance, Mr. Levine was responsible for the asset management of 3 million square feet portfolio of CBD office across the nation. Allegiance is a private real estate investment company providing compelling alternatives to conventional investment vehicles for family offices, RIAs and high net worth individuals. Headquartered in Charlotte, North Carolina, the Company has acquired over 7 million square feet of commercial real estate, investing over $150 million of self-raised equity. The Company’s current portfolio is valued in excess of $400 million and consists of 3.5 million square feet of commercial real estate.
Prior to that experience, Mr. Levine was Director of Real Estate for Triglid, Inc. He was the portfolio manager for Trigild’s Mid Atlantic, Southeast, and Northeast portfolio of performing and non-performing assets valued at $500 million, which consisted of 1,400 units of multifamily and 3.5 million SF of commercial real estate. He worked with CMBS special servicers (CW Capital, LNR, C 3 Torchlight/ING), balance sheet lenders (GE Capital, Wells Fargo, Bank of America, Keybank, Varde), and FDIC in the re-positioning and disposition of assets through various loan workout strategies. He has experience across all asset classes including office, retail, industrial, multifamily, single family, and fractured condo developments. While at Trigild, Mr. Levine managed 1,696 units nationwide and over 1.5 million square feet of various types of commercial real estate (retail, office, industrial). He was successful in triage, stabilization, and turnaround of previously non-performing assets in some state of distress and/or mortgage default. Throughout his tenure, Mr. Levine was involved in the acquisition and disposition of over 45 assets totaling $400 million.
Before co-founding Georgetown Partners in late 2017, Corban Tomlinson was Director of Acquisitions for Maplewood and Allegiance Realty Corporation (joint venture partners). There, he sourced, underwrote, and structured the acquisition and development of conventional and medical office opportunities. His experience included opportunistic, value add and core-plus/stabilized opportunities. Deals were sourced both on and off market and were creatively structured and financed to best suit the needs of each deal. Mr. Tomlinson was also responsible for the project and portfolio level financial analysis, budgeting, and business strategy at the firm. At Allegiance, Mr. Tomlinson led efforts in the acquisition of over $250 million of conventional office and other real estate assets. In addition, Mr. Tomlinson was involved in the acquisition and development of $110 million of medical office assets for Maplewood Healthcare including the ground up development of over 250,000 square feet.
Prior to his time at Maplewood and Allegiance, Mr. Tomlinson worked at Sabal Financial (a wholly owned subsidiary of Oaktree Capital) as an asset manager, acquisitions associate, and underwriter. His asset management portfolio consisted of owned real estate assets and non-performing loans located nationwide that were collateralized by commercial real estate, multifamily apartment complexes, single family homes, land (in various stages of development), swap agreements, personal guarantees, and commercial and industrial assets. His acquisition duties included the underwriting of asset pools ranging from $20-200 million in value and was involved in the acquisition of over $3 billion of distressed assets. Mr. Tomlinson also served as an underwriter on Sabal’s bridge lending platform which included the underwriting and structuring of a $55 million bridge loan which was originated to provide capital to a regional investor developer for an eight-phased renovation and improvement of a 150,000 square foot waterfront mixed use development in Newport Beach, CA.
| Property | Location | Asset Type | Acquisition Date | Units/SF | Purchase Price | Recent Valuation | |||
|---|---|---|---|---|---|---|---|---|---|
| Lansdowne Medical Office Pavilion | Leesburg, VA | Medical | Nov 2017 | 70,000 SF | $7,950,000 | $19,350,000 | |||
| Commonwealth Medical Office | Richmond, VA | Medical | Apr 2018 | 40,000 SF | $4,650,000 | $7,240,000 | |||
| Ames Street Apartments | Washington, D.C. | Multifamily | Sep 2019 | 73 units | $5,950,000 | $7,350,000 | |||
| Foote Street Apartments | Washington, D.C. | Multifamily | Jan 2020 | 15 units | $2,000,000 | $2,000,000 | |||
| Skyland Apartments(1) | Washington, D.C. | Multifamily | Q1 2021 | 224 units | $25,727,000 | - | |||
| 618 12th(1) | Washington, D.C. | Multifamily | Q1 2021 | 12 units | $3,375,000 | - | |||
| Total | $49,652,000 | ||||||||
| Select Previous Multifamily Experience | |||||||||
| Riverwinds | 86 Pelican Place | Multifamily | 199 units | ||||||
| Single Family Home Portfolio | Detroit, MI | LIHTC SFR | 303 units | ||||||
| Veranda Village (West Point) | Pasadena, TX | Multifamily | 382 units | ||||||
| Watersong Villas | Dallas, TX | Multifamily | 250 units | ||||||
| St. John's VI Portfolio | Saint John, US VI | Multifamily | 36 units | ||||||
| The Ocean Club at Seven Seas | Fajardo, PR | Multifamily | 300 units | ||||||
| Victory Trail Apartments | Norcross, GA | Multifamily | 98 units | ||||||
| Bella Sol | Apollo Beach, FL | Multifamily | 72 units | ||||||
(1) Reflects anticipated closing dates.
The above bios and track record were provided by Georgetown Partners and has not been independently verified by RealtyMogul.
Georgetown Partners is seeking a portion of the equity capital required to acquire a 138-unit multifamily apartment building located in Woodbridge, VA (the "Property"). Realty Mogul Investors will invest in RM VA WB, LLC (‘The Company”), which will subsequently invest in VA WB, LLC, a limited liability company that will hold title to the Property.
The Property is located just 25 miles outside Washington, DC and within a 25-minute drive to Amazon's new HQ2 located in Crystal City, VA. Woodbridge has a median household income of $122,426 within a five miles radius of the Property. The Property has easy access to Interstate I-95 and 1.6 million SF of retail within a seven-mile drive from the Property. Additionally, the Property is adjacent to an elementary school and middle school, which provides a built-in demand driver for families with children.
Georgetown Partners has the Property under contract for $28,475,000 or $206,340/unit. This class and quality of the product is very attractive and is well below replacement cost. The total capitalization at acquisition is $32,167,399. The Property is being acquired at a 5.1% cap rate on in-place revenue with the expectation of increasing the Net Operating Income by ~16.5% in the first 3 years of ownership. This Property has a history of operating efficiently with high occupancy at 90% or better. Georgetown Partners intends to continue operating the Property in the same way while creating value by completing the unit renovation plan on the remaining 75% of the Property over a 24-36 month period. In addition to the unit renovation plan, Georgetown Partners will replace the roofs, improve the parking lot, and paint the exterior stairwells across the ten buildings at the Property.
Immediate Value-Add Opportunity: There is a clear path to growth and remaining with value-add potential. Georgetown Partners intends to renovate 103 units or 75% of Property. The projected renovation period is 24-36 months. The scope of the renovation has been budgeted at $7,453 per unit and is projected to generate an average premium of $134/unit per month. For context, recently renovated competitive rents in the submarket are achieving spreads up to $343/unit per month above Haven Woodbridge. An example is a nearby property named Kensington Place, which has an average rent of $1,822/unit per month.
Ideal Commuter Location: The Property has easy access to I-95 and Route 1 and direct walkability to Elizabeth Vaughan Elementary and Woodbridge Middle Schools. Washington, DC, is located 25 miles from the Property, and Crystal City, VA (Amazon HQ2) is 22 miles from the Property. The VRE Station, which connects to the DC Metro, is located 8 minutes from the Property.
Georgetown Partners has retained Noah Living to manage the Property. They are a “best-in-class” institutional-quality property management company. The business plan focuses on completing the renovation of the remaining units at the Property to create long-term value appreciation and additional cash flow.
Below is a summary of the capital improvements budget. Please note that the itemized budget below excludes the anticipated cost inflation that is included in the pro forma at 2.0% annually. For this reason, there is an appearance of a discrepancy between the capital improvements budget outlined below and the Sources & Uses table.
| Total $ Amount | Per Unit (103 units) | |||||||
| Interior Renovations | ||||||||
| Wood Plank | $230,720 | $2,240 | ||||||
| Appliances | $185,400 | $1,800 | ||||||
| Reface Kitchen Cabinets | $115,875 | $1,125 | ||||||
| Granite Tops | $61,800 | $600 | ||||||
| Reface Bathroom Cabinets | $46,350 | $450 | ||||||
| Reglaze Tubs | $30,900 | $300 | ||||||
| Light Fixtures | $26,780 | $260 | ||||||
| Contingency (10%) | $69,783 | $678 | ||||||
| Total Interior Renovation Costs | $767,608 | $7,453 | ||||||
| Exterior Renovations | ||||||||
| Roof replacement | $190,000 | $1,377 | ||||||
| Painting | $35,000 | $254 | ||||||
| Contingency (10%) | $22,500 | $163 | ||||||
| Total Exterior Renovation Costs | $247,500 | $1,793 | ||||||
| Grand Total | $1,015,108 | $9,246 | ||||||
These amounts are subject to change at the discretion of the Real Estate Company.
The Property, located at 13940 Longwood Manor Ct, Woodbridge, VA 22191, is a 138-unit apartment building located just 25 miles Southeast of Washington, DC. The Property comprises a unit mix of 42 one-bedroom and 96 two-bedroom units, across ten buildings totaling 120,630 SF, which sits on nine acres. The Property is currently 96% occupied and has historically touted 95% rent collections that have continued to date. Each unit is separately metered for electricity, and the resident pays for all the utilities.
In-Place/Stabilized Unit Mix:
| Unit Type | # of Units | Average SF/Unit | Avg Rent (In-Place) | Avg Rent (Post-Reno) | Post-Reno Rent per SF |
| Classic | |||||
| 1x1 | 25 | 687 | $1,294 | $1,435 | $2.09 |
| 2x2 | 78 | 956 | $1,496 | $1,636 | $1.71 |
| Renovated | |||||
| 1x1 | 17 | 687 | $1,385 | $1,435 | $2.09 |
| 2x2 | 18 | 956 | $1,553 | $1,636 | $1.71 |
| Total/Averages | 138 | 874 | $1,453 | $1,575 | $1.83 |
| Dominion Middle Ridge | Dominion Lake Ridge | Windsor Park | Averages | Subject (Post-Reno Rents) | |
|---|---|---|---|---|---|
| Year Built | 1990 | 1987 | 1987 | 1988 | 1987 |
| # of Units | 280 | 192 | 220 | 231 | 138 |
| Class | C | C | B | B | |
| Levels | 2 | 2 | 3 | 3 | |
| Occupancy | 92.0% | 99.0% | 99.0% | 96.0% | |
| Distance from subject | 5.9 mi | 6.1 mi | 6.8 mi | ||
| $/Unit (1x1) | $1,448 | $1,440 | $1,425 | $1,438 | $1,435 |
| SF (1x1) | 691 SF | 718 SF | 796 SF | 735 SF | 687 SF |
| $/SF (1x1) | $2.10 | $2.01 | $1.79 | $1.96 | $2.09 |
| $/Unit (2x2) | $1,606 | $1,661 | $1,659 | $1,642 | $1,636 |
| SF (2x2) | 893 SF | 898 SF | 931 SF | 907 SF | 956 SF |
| $/SF (2x2) | $1.80 | $1.85 | $1.78 | $1.81 | $1.71 |
| The Preserve at Catons Crossing | The Glen at White Pines | Abbotts Run | Assembly Manassas | Averages | Subject | |
|---|---|---|---|---|---|---|
| Date Sold | Sep 2020 | Aug 2020 | Sep 2019 | Apr 2019 | ||
| Year Built | 2010 | 1974 | 1988 | 1986 | 1987 | |
| # of Units | 200 | 166 | 248 | 408 | 138 | |
| Class | B | B | B | B | B | |
| Average Unit Size | 922 SF | 1,059 SF | 1,022 SF | 1,100 SF | 1,026 SF | 874 SF |
| Sale Price | $57,000,000 | $34,500,000 | $66,000,000 | $84,396,000 | $60,474,000 | $28,475,000 |
| $/Unit | $285,000 | $207,831 | $266,129 | $206,853 | $241,453 | $206,341 |
| $/SF | $309 | $179 | $262 | $215 | $241 | $236 |
| Cap Rate | 4.50% | - | 4.75% | 5.07% | 4.77% | 5.00% |
| Building Size | 184,418 SF | 192,600 SF | 252,108 SF | 391,916 SF | ||
| Distance from subject | 3.1 mi | 17.0 mi | 11.7 mi | 20.4 mi |
Sale and lease comps were obtained from Georgetown Partners.
Market Overview
During previous recessions, Washington DC proved to be one of the most resilient metros in the country due to its diversified economy, strong market drivers and the presence of the nation’s largest employer—the federal government. The stability of the region’s economy underpins its resilient multifamily real estate market.
Minimal Vacancy Change: DC ranked third in the nation in terms of least amount of change in vacancy during the 2008 recession at an average increase of only 150 bps.
Most Stable Rents in the Nation: DC ranked second in the nation for least impacted rent growth. The metro recovered in just five quarters, compared to a national average of 12 quarters. The metro’s peak-to-trough rent change was a mere 2% during the previous recession—lower than the nearly 6% national average.
Prolific Investment Market: Since recovery in 2010, DC’s price per unit values increased by an average of 6% as investors remain bullish on the metro as a powerhouse center of the East Coast.
Durability of Employment Base: DC currently has the second lowest unemployment rate (9.9%) across the largest 40 metros in the country. It ranked sixth in terms of least YoY impacted for unemployment rate. DC has historically lower unemployment rates compared to the U.S. The strong and prominent labor markets of tech, “Eds and Meds,” biotech, and government are some of the most resilient industries. Tech, in particular, has proven to be a pillar of the economy, with significant future growth centered around the establishment of Amazon’s new HQ2. Washington is ranked #1 for lowest percentage of at-risk employment segments in the current downturn. These strong economic drivers will bolster the multifamily market, drive demand, and lead the region towards future growth. The Washington DC metro has many fundamental characteristics that position it to recover from the current recession in a similar fashion to the way it recovered in previous recessions.
Submarket Overview
The Property is located in Woodbridge, VA, a bedroom community of Washington, DC. It is less than 1 mile to the Prince William County Parkway exit for easy access to interstate I-95. The proximity to Washington, DC, Crystal City, VA, Alexandria, VA, Arlington, VA, and Fairfax County makes the Property an attractive area for commuters of the DC DMV.
The I-395 Corridor stretches from The Pentagon to I-495 and south of I-95 and runs through Arlington, Alexandria, and Springfield. The I-395 Corridor offers tens of thousands of jobs with numerous amenities and retail centers. Major employers include Fort Belvoir/ Quantico (50,000+ jobs), The Pentagon (23,000+ jobs), U.S. Patent & Trademark Office (10,000+ jobs), Department of Defense’s Mark Center Campus (6,000+ jobs), and Inova Alexandria Hospital (1,000+ jobs). In addition, Ronald Reagan Washington National Airport is located in the I-395 Corridor, the closest commercial airport to Washington, DC, handling more than 24 million passengers in 2019 (Federal Aviation Administration, 2020). Haven Woodbridge has a prime inside-the-beltway location with immediate access to I-395 with the multitude of employers surrounding the Property and minutes to Washington, DC’s CBD.
The Fort Belvoir North Area, located 12 miles from Haven Woodbridge, has experienced rapid growth over the last ten years due to BRAC. Fort Belvoir now employs over twice the workforce of The Pentagon. Increased military and defense spending by the new administration is expected to create thousands of additional jobs at Fort Belvoir and the Marine Corps Base Quantico. As these large employment hubs continue to grow, Haven Woodbridge is perfectly positioned to fulfill the increasing rental demand.
Sources: CBRE Washington D.C., Axiometrics, CoStar
| Sources of Funds | Amount |
|---|---|
| Debt | $21,360,000 |
| Equity | $10,807,399 |
| Total Sources of Funds | $32,167,399 |
| Uses of Funds | Amount |
| Purchase Price | $28,475,000 |
| Acquisition Fee | $284,750 |
| Loan Costs | $339,880 |
| CapEx | $1,027,683 |
| Closing Costs(1) | $398,837 |
| Loan Reserves | $1,641,249 |
| Total Uses of Funds | $32,167,399 |
Please note that the Georgetown Partners' equity contribution may consist of friends and family equity and equity from funds controlled by Georgetown Partners. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.
(1) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.
The expected terms of the debt financing are as follows:
- Estimated Proceeds: $21,360,000
- Estimated Annual Interest Rate (Fixed): 3.27%
- Term: 10 years
- Interest Only: 5 years
Supplemental loan:
- Origination Month: Month 36
- Estimated Proceeds: $2,520,000
- Estimated Annual Interest Rate (Fixed): 3.77%
- Interest Only: 2 years
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.
Georgetown Partners intends to make distributions from VA WB, LLC to RM VA WB LLC as follows:
- To the Members, pari passu, all excess operating cash flows to an 8.0% IRR to the Members;
- 90% / 10% (90% to Members / 10% to Promote) of excess cash flow to a 10.0% IRR;
- 80% / 20% (80% to Members / 20% to Promote) of excess cash flow to a 12.0% IRR;
- 70% / 30% (70% to Members / 30% to Promote) of excess cash flow and appreciation thereafter.
VA WB, LLC intends to make distributions to investors. Note that all distributions will occur after the payment of both company's liabilities (loan payments, operating expenses, and other fees as set forth in the LLC agreements, in addition to any member loans or returns due on member loan).
Distributions are expected to start in August 2021 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of Georgetown Partners, 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 | $2,428,602 | $2,574,837 | $2,700,326 | $2,789,796 | $2,863,441 |
| Total Operating Expenses | $932,456 | $962,221 | $991,794 | $1,013,968 | $1,034,444 |
| Net Operating Income | $1,461,646 | $1,577,426 | $1,672,638 | $1,739,216 | $1,791,653 |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Investor-Level Cash Flows | ($4,000,000) | $376,253 | $392,428 | $1,349,751 | $415,556 | $4,693,463 |
| Net Earnings to Investor - Hypothetical $50,000 Investment | ($50,000) | $4,703 | $4,905 | $16,872 | $5,194 | $58,668 |
Certain fees and compensation will be paid over the life of the transaction; please refer to Georgetown Partners' materials for details. The following fees and compensation will be paid(1)(2)(3):
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
|---|---|---|---|---|
| Acquisition Fee | $284,750 | Georgetown Partners | Capitalized Equity Contribution | 1.0% of purchase price |
| Financing Fee | 0.75% of loan amount | Georgetown Partners | Capitalized Equity Contribution |
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Administrative Services Fee | 1.0% of amount invested into RM VA WB LLC | RM Admin(3) | Distributable Cash |
| Asset Management Fee | 2.0% of Effective Gross Income | Georgetown Partners | Distributable Cash |
(1) Fees may be deferred to reduce impact to investor distributions
(2) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.
(3) RM Admin will be providing the following services:(a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from RM VA WB LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.
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.