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Multifamily
Veridian Castleton
Indianapolis, IN
Funded
100% funded
...
Veridian Castleton
Indianapolis, IN
All Investments > Veridian Castleton
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Overview
Veridian Castleton
Veridian Castleton is a 398-unit multifamily community with value-add potential.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 4/2021
Minimum Investment 25000
Estimated Hold Period 7 Years
Investment Strategy Value-Add
Investment Type Equity
Year Built 1969 (Partial Renovation in 2017)
# of Units 398
# of Buildings 40 Residential, Clubhouse, Fitness Center, Maintenance Shop
Current Occupancy 94.0%
Parking Ratio 3.42 per unit
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
The GSH Group is under contract to purchase the Property for $111,809 per unit, representing an acquisition cap rate of 4.70%.
The Property will be managed by Birge & Held, an experienced owner and operator in the Indianapolis market.
The exit strategy is to sell the Property after a 7 year hold at a 5.25% cap rate.
The Property sits one mile away from Castleton Square Mall, the largest regional mall in the state of Indiana.
The Property has larger unit sizes relative to comparable properties in this submarket. Proforma rents for these larger units remain at a discount to average lease comparables.
The GSH Group is under contract to purchase the Property for $111,809 per unit, representing an acquisition cap rate of 4.70%.
The Property will be managed by Birge & Held, an experienced owner and operator in the Indianapolis market.
The exit strategy is to sell the Property after a 7 year hold at a 5.25% cap rate.
The Property sits one mile away from Castleton Square Mall, the largest regional mall in the state of Indiana.
The Property has larger unit sizes relative to comparable properties in this submarket. Proforma rents for these larger units remain at a discount to average lease comparables.
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Management
For more information, view the Sponsor's Investment Memorandum.
The GSH Group

The GSH Group (“The Sponsor") is a real estate investment company focused on class B/workforce housing across the United States. The leadership team has over 40 years of combined experience and the company has over $1 billion assets under management(1), made up of 8,333 multifamily units(2), inclusive of partner legacy assets.

With demonstrated experience as advisors, managers, and resolving problem loans, GSH is attuned to the needs and processing of Special Servicers for the quick disposition of assets. The Sponsor employs a tactical strategy for value creation. Value enhancement is approached from multiple angles and scenarios. These include, but are not limited to, organic rental growth due to market inefficiencies, rent premiums generated through unit upgrades, and decreasing expenses through management efficiencies.

GSH uses applicable, real-time software to help manage all assets on a minute-by-minute basis. Using real-time data, they can effectively keep all projects on track to ensure the business plan's proper implementation. Additionally, GSH is vertically integrated, employing an affiliated general contractor and construction team to ensure projects stay on budget and on time.

(1) Portfolio value includes an assumed value based on current T1/T12 financials and a capitalization rate of 5.00%. This includes certain legacy properties owned and managed by partners.

(2) Units include legacy units owned by the partners as well as units sold.

Sponsor Track Record

GSH Group Track Record

Property City, State Asset Type Acq Date Units Purchase Price Sale Price
Cadieux Detroit, MI  Multifamily 2012 131 $900,000 $1,900,000
Greenfield Detroit, MI  Multifamily 2016 99 $1,750,000 $2,424,500
Cornerstone Apartments Detroit, MI  Multifamily 2016 476 $8,900,000 $12,025,000
Chapel Oaks Apartments Fort Wayne, IN Multifamily 2017 320 $7,500,000 $10,500,000
Holcomb, Chicago, Collage, & Jefferson Detroit, MI  Multifamily 2012 210 $2,450,000 $3,645,000 (1)
Whittier & Morang Detroit, MI  Multifamily 2012 44 $460,000 Under Management
Chapel Court Detroit, MI  Multifamily 2013 184 $2,090,000 Under Management
Pallister Detroit, MI  Multifamily 2016 187 $7,400,000 Under Management
Marina Bay Gibraltar, MI Multifamily 2016 137 $4,900,000 Under Management
Wakefield Apartments Southfield, MI Multifamily 2017 67 $7,200,000 Under Management
Ridge Pointe Apartments Conover, NC Multifamily 2017 160 $11,000,000 Under Management
Holiday Garden Apartments Mount Clemens, MI Multifamily 2017 64 $2,575,000 Under Management
Eastland Village Harper Woods, MI Multifamily 2017 408 $21,750,000 Under Management
Utica Square Apartments Roseville, MI Multifamily 2018 266 $11,000,000 Under Management
Barwin Place Mount Clemens, MI Multifamily 2018 48 $2,100,000 Under Management
Birch Hill Apartments Westland, MI Multifamily 2018 173 $10,650,000 Under Management
Hoover Square Warren, MI Multifamily 2018 342 $18,950,000 Under Management
Colony Club Bedford, OH Multifamily 2019 588 $35,515,200 Under Management
Louis Apartments Detroit, MI  Multifamily 2019 28 $962,000 Under Management
Pickford Apartments Detroit, MI  Multifamily 2019 35 $1,122,500 Under Management
Stacey Ann Apartments Detroit, MI  Multifamily 2019 49 $1,565,500 Under Management
Polo Club Marshall, MI Multifamily 2019 80 $3,400,000 Under Management
The Loop On Greenfield Oak Park, MI Multifamily 2019 717 $59,700,000 Under Management
Glengarry Park Waterford, MI Multifamily 2020 300 $22,650,000 Under Management
Foote Hills Grand Rapids, MI Multifamily 2020 182 $24,950,000 Under Management
BLVD West Apartments(2) Lansing, MI Multifamily 2021 144 $23,000,000 Under Management
The Landings on East Hill(2) Grand Blanc, MI Multifamily 2021 148 $14,800,000 Under Management
Veridian Castleton(2) Indianapolis, IN Multifamily 2021 398 $44,500,000 Under Management
Laurel Pines(2) Laurel, MD Multifamily 2021 235 $38,250,000 Under Management
The Orion Lake Orion, MI Multifamily 2021 200 $27,375,000 JV-Under Management
The Preserve at Spring Lake(2) Altamonte Springs, FL Multifamily 2021 320 $62,800,000 Under Management
The Meadows at Capitol Heights Capitol Heights, MD Multifamily 2021 272 $49,100,000 Under Management
Sherwood Oaks Riverview, FL Multifamily 2021 199 $35,000,000 JV-Under Management
The Meadows at Canton(2) Canton, MI Multifamily 2021 736 $125,715,000 Under Management
The Meadows at Farmington Hills(2) Farmington Hills, MI Multifamily 2021 424 $81,350,000 Under Management
Total       8,333 $773,580,200  

(1) Holcomb, Chicago, Collage, and Jefferson were a portfolio acquisition totaling 210 units in 2012. Holcomb, which makes up 90 of the 210 total units, was sold for $3,645,000. All of the other properties are still under management.

(2) JV Equity raised through RealtyMogul Platform.

The above bios and track record were provided by GSH Group and have not been independently verified by RealtyMogul.

Website
Management Team
Management
Gideon Pfeffer
Managing Partner

Gideon is responsible for strategic partnership initiatives and ventures, financing and debt opportunities, overseeing investment performance, strategic partner’s performance, and approving decisions on investments and acquisitions. He also oversees daily operations. Prior to GSH, Gideon operated a highly successful aggregation and renovation firm focused on single-family homes in the Midwest and Southeast.

Management
Shmuel Cohen
Partner

Shmuel is responsible for asset management and Israeli Investor relations. An Israeli citizen, Shmuel also owns a separate  portfolio of over 1,300 units in multifamily properties in Michigan and North Carolina. His experience as an owner and operator is an invaluable resource and he is responsible for the continued success of raising private capital in Israel for The GSH Group.

Management
Hannan Lis
Partner

Hannan is responsible for banking, investor relations, and branding. He is an experienced real estate investor, owns several businesses, and is an active member of a prominent family office in Michigan. Hannan is president of WW Group, which holds Weight Watchers franchises for Michigan and Ontario, Canada. The company was formerly the largest franchisee in the Americas.

Property
For more information, view the Sponsor's Investment Memorandum.

The Property is an apartment community located in Castleton, IN, an infill submarket of the Indianapolis metro area. It is close to robust retail including Castleton Square Mall, a hospital campus and employment districts. The Real Estate Company believes that by updating the interior and exterior, the Property can capture rent premiums ranging from $125-$250. High quality renovations should allow the Property to compete with newer product in the rental market by offering a lower price while boasting larger floor plans than the competitive set.

Current Unit Mix

Unit Type # of Units Avg SF/Unit Avg Rent
(In-Place)
Rent/SF
(In-Place)
Avg Rent (Proforma) Rent/SF (Proforma)
1x1 49 890 $827 $0.93 $893 $1.00
2x1.5 (Townhome) 52 1,300 $995 $0.77 $1,230 $0.95
2x2 279 1,176 $868 $0.74 $1,088 $0.93
3x1.5 18 1,416 $1,176 $0.83 $1,209 $0.85
Total/Averages 398 1,168 $893 $0.77 $1,088 $0.93
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

  Riverbend Apartments Waterside at Castleton Woods of Castleton Brockton Apartments Comp Averages Veridian Castleton
Year Built 1983 1983 1982 1979 1982 1969
Units 528 400 260 173 340 398
Distance to Subject 2.0 Miles 1.7 Miles 1.5 Miles 3.4 Miles 2.2 Miles  
Average Rental Rate $1,250 $976 $933 $1,217 $1,105 $1,088
Average SF 1,060 830 961 1,260 1,028 1,168
Average $/SF   $1.18   $1.18   $0.97   $0.97 $1.08 $0.93
             
$/Unit (1x1) $1,053 $875 $844 $874 $892 $893
SF (1x1) 845 700 830 812 770 890
$/SF (1x1) $1.25 $1.25 $1.02 $1.08 $1.16 $1.00
             
$/Unit (2x1.5) Townhome     $969 $1,154 $1,028 $1,230
SF (2x1.5) Townhome     1,000 1,156 1,050 1,300
$/SF (2x1.5) Townhome     $0.97 $1.00 $0.98 $0.95
             
$/Unit (2x2) $1,275 $1,070   $1,014 $1,195 $1,088
SF (2x2) 1,087 950   1,130 1,052 1,176
$/SF (2x2) $1.17 $1.13   $0.90 $1.14 $0.93
             
$/Unit (3x1.5)     $1,139 $1,224 $1,183 $1,209
SF (3x1.5)     1,325 1,340 1,333 1,416
$/SF (3x1.5)     $0.86 $0.91 $0.89 $0.85

Sales Comparables

  Waterside at Castleton Grande Reserve at Geist Carmel Woods Northlake Village Apartments Total/Averages Subject: Veridian Castleton
Date Dec '19 Feb '19 Dec '18 Jul '20    
Submarket Fall Creek Lawrence Carmel Noblesville   Castleton
Year Built 1983 1996 1986 1983 1987 1969
SF 483,872 160,704 302,872 419,408 341,714 464,664
Units 400 146 314 348 302 398
Average SF 1,210 1,101 965 1,205 1,132 1,168
Sale Price $45,625,000 $20,650,000 $33,900,000 $44,300,000 $36,118,750 $44,500,000
$/Unit $114,063 $141,438 $107,962 $127,299 $119,599 $111,809
$/SF $94.29 $128.50 $111.93 $105.63 $105.70 $95.77
Distance from Subject (mi.) 1.7 Miles 5.1 Miles 7.7 Miles 12.0 Miles 6.6 Miles  

 

 

Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses
Sources of Funds $ Amount $/Unit
Debt $34,265,000 $86,093
Real Estate Company Equity $2,192,000 $5,508
LP Investor Equity $18,500,000 $46,482
Total Sources of Funds $54,957,000 $138,083
     
Uses of Funds   $/Unit
Purchase Price $44,500,000 $111,809
Transactional Costs(1) $1,571,291 $3,948
Acquisition Fee $890,000 $2,236
Closing & Due Diligence $387,300 $973
Tax, Insurance, Covid Reserve $2,374,409 $5,966
Initial CapEx Plan Funds $3,925,780 $9,864
Initial CapEx Plan Funds - Contingency $458,220 $1,151
Working Capital & Reserves $850,000 $2,136
Total Uses of Funds $54,957,000 $138,083

 

Please note that the GSH Group's equity contribution may consist of friends and family equity and equity from funds controlled by GSH Group. 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 Transactional Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Capital One
  • Term: 15 years
  • LTV: 77.00%
  • Total Estimated Proceeds: $34,265,000
  • Estimated Rate (Fixed): 3.64%
  • Interest Only: 7 years
  • Amortization: 30 years
  • Loan Origination Fee: 1.00% of Loan Proceeds

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.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.

Distributions

GSH Group intends to make distributions from Veridian Domestic Investors, LLC as follows:

1. To the Investors, pari passu, all operating cash flows to a 9.5% preferred return 

2. 65% / 35% (65% to Investors / 35% to Promote) of excess operating cash flows

Note: These distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).

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 GSH Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary

    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Effective Gross Revenue   $4,885,655 $5,351,591 $5,841,995 $6,114,000 $6,273,564 $6,437,914 $6,607,195
Total Operating Expenses   $2,224,848 $2,280,391 $2,482,359 $2,536,661 $2,588,512 $2,641,449 $2,695,494
Net Operating Income   $2,660,807 $3,071,199 $3,359,636 $3,577,340 $3,685,051 $3,796,465 $3,911,701

Project-Level Cash Flows

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow -$20,692,000 $1,646,448 $1,847,521 $1,876,150 $11,747,231 $1,599,724 $1,707,851 $35,027,150

Investor-Level Cash Flows*

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Cash Flow -$7,000,000 $486,985 $555,007 $564,692 $3,904,029 $471,179 $507,757 $8,982,197

Investor-Level Cash Flows - Hypothetical $50,000 Investment*

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow -$50,000 $3,478 $3,964 $4,034 $27,886 $3,366 $3,627 $64,159

*Returns are net of all fees including RM Admin's 1.0% administrative services fee. 

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to GSH Group's materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee 2.00% of purchase price GSH Group LLC Capitalization  
Buyer Broker Fee 2.25% of purchase price Momentum Realty Capitalization Affiliate to GSH
Refinancing Fee 1.00% of refinance proceeds GSH Group Loan Proceeds Subordinated to Return of Capital

 

Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Administrative Services Fee 1.00% of amount invested RM Admin(3) Distributable Cash  
Asset Management Fee 2.00% of EGI GSH Group, LLC Distributable Cash  


(1) Fees may be deferred to reduce impact to investor distributions. The above table is a summary and there may be additional fees and expenses associated with this offering. Please refer to the Private Placement Memorandum for further details.

(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 Investors 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.

Sources & Uses
Sources of Funds $ Amount $/Unit
Debt $34,265,000 $86,093
Real Estate Company Equity $2,192,000 $5,508
LP Investor Equity $18,500,000 $46,482
Total Sources of Funds $54,957,000 $138,083
     
Uses of Funds   $/Unit
Purchase Price $44,500,000 $111,809
Transactional Costs(1) $1,571,291 $3,948
Acquisition Fee $890,000 $2,236
Closing & Due Diligence $387,300 $973
Tax, Insurance, Covid Reserve $2,374,409 $5,966
Initial CapEx Plan Funds $3,925,780 $9,864
Initial CapEx Plan Funds - Contingency $458,220 $1,151
Working Capital & Reserves $850,000 $2,136
Total Uses of Funds $54,957,000 $138,083

 

Please note that the GSH Group's equity contribution may consist of friends and family equity and equity from funds controlled by GSH Group. 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 Transactional Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Capital One
  • Term: 15 years
  • LTV: 77.00%
  • Total Estimated Proceeds: $34,265,000
  • Estimated Rate (Fixed): 3.64%
  • Interest Only: 7 years
  • Amortization: 30 years
  • Loan Origination Fee: 1.00% of Loan Proceeds

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.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.

Distributions

GSH Group intends to make distributions from Veridian Domestic Investors, LLC as follows:

1. To the Investors, pari passu, all operating cash flows to a 9.5% preferred return 

2. 65% / 35% (65% to Investors / 35% to Promote) of excess operating cash flows

Note: These distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).

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 GSH Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary

    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Effective Gross Revenue   $4,885,655 $5,351,591 $5,841,995 $6,114,000 $6,273,564 $6,437,914 $6,607,195
Total Operating Expenses   $2,224,848 $2,280,391 $2,482,359 $2,536,661 $2,588,512 $2,641,449 $2,695,494
Net Operating Income   $2,660,807 $3,071,199 $3,359,636 $3,577,340 $3,685,051 $3,796,465 $3,911,701

Project-Level Cash Flows

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow -$20,692,000 $1,646,448 $1,847,521 $1,876,150 $11,747,231 $1,599,724 $1,707,851 $35,027,150

Investor-Level Cash Flows*

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Cash Flow -$7,000,000 $486,985 $555,007 $564,692 $3,904,029 $471,179 $507,757 $8,982,197

Investor-Level Cash Flows - Hypothetical $50,000 Investment*

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow -$50,000 $3,478 $3,964 $4,034 $27,886 $3,366 $3,627 $64,159

*Returns are net of all fees including RM Admin's 1.0% administrative services fee. 

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to GSH Group's materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee 2.00% of purchase price GSH Group LLC Capitalization  
Buyer Broker Fee 2.25% of purchase price Momentum Realty Capitalization Affiliate to GSH
Refinancing Fee 1.00% of refinance proceeds GSH Group Loan Proceeds Subordinated to Return of Capital

 

Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Administrative Services Fee 1.00% of amount invested RM Admin(3) Distributable Cash  
Asset Management Fee 2.00% of EGI GSH Group, LLC Distributable Cash  


(1) Fees may be deferred to reduce impact to investor distributions. The above table is a summary and there may be additional fees and expenses associated with this offering. Please refer to the Private Placement Memorandum for further details.

(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 Investors 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.

Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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