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.
The Project is shovel ready, with the building permit in hand. This shortens the timeline from breaking ground to project stabilization. Additionally, many of the unknown elements of development are fully delineated upon completion of the preconstruction work, making it advantageous for an investor to come into a project at this stage.
Evanston Gateway offers many conveniences of the urban lifestyle, including restaurants, cafes, and lakefront access, perfectly blended in a less dense, more relaxed suburban setting. The Project is located near both the Chicago public transportation system as well as the suburban commuter train route. The commute to downtown is only 30 minutes (via Metra), to Evanston Hospital in under 20 minutes (by bike or car) and to Northwestern University in about 10 minutes (by bike or car).
The Project will be a first-class, boutique apartment building that offers residents a combination of privacy and top of the line amenities and finishes. The future building plans to be a response to resident preferences brought about by Covid, providing a highly sought-after alternative to extremely dense apartment buildings with overly crowded elevators, lobbies, and common areas.
LG Development Group LLC and Harrington Brown LLC
The Project is jointly sponsored by LG Development Group, LLC and Harrington Brown, LLC.
About LG Development Group, LLC
Opening their doors in 2005, LG Development Group (the "Developer") was founded by Brian Goldberg as a real estate development company focused on producing luxury residential and commercial properties. They quickly realized they had an opportunity to serve their clients and partners more effectively, and in 2008, they started LG Construction Group, offering general contracting services independent from LG Development Group, then LG Advantage, a fully staffed small projects and service division, and their most recent venture, LG Design, a modern interior design division. Each team offers a combination of different skills and abilities, and being under one roof, LG is able to provide those services in a collaborative, cohesive environment.
Their portfolio has expanded from boutique single-family homes to large residential and commercial multi-unit buildings, developing over 2,000 units and $2B in properties spanning more than two million square feet.
About Harrington Brown, LLC
Harrington Brown, LLC, a non-controlling partner, is a boutique commercial real estate company, focused on investing and developing projects in our community on the north side of Chicago and Evanston. The company also provides advisory and brokerage services to a wide variety of clients.
The company was founded by David R. Brown in 2009. Mr. Brown is a commercial real estate veteran with 34 years of experience generating property value through asset management, development, redevelopment, and leasing, as well as creatively positioning assets for sale. The company’s principal development and investment activities have focused on developing and renovating multi-family, retail, and mixed-use properties. On the advisory side, Harrington Brown has assisted institutional and entrepreneurial owners with asset management, property management, leasing property acquisitions and investment sales throughout the country. Prior to forming Harrington Brown, Mr. Brown was CEO of ORIX Real Estate Capital where he oversaw company operations nationwide and spearheaded more than $1B in real estate development, acquisition, financing, and dispositions. Mr. Brown also has executive experience at Lehman Brothers and Jones Lang LaSalle (JLL).
HTTP://LGDEVELOPMENTGROUP.COM/Developer | Property | City, State | Asset Type | Acq Date | Units or SF | Purchase Price | Sales Price | Project Value |
LG | 1241 N Milwaukee | Chicago, IL | Mixed Use | 12/17/2013 | 60 units, 16,000 SF retail | $3,350,000 | $31,470,000 | |
LG | 1643-47 N Milwaukee | Chicago, IL | Mixed Use | 8/26/2014 | 36 units, 11,000 SF retail, 20,000 SF office | $5,050,000 | $26,280,000 | |
LG | Illume | Chicago, IL | Condos | 10/30/2015 | 79 units | $6,350,000 | $84,849,978 | |
LG | 1879 N Milwaukee | Chicago, IL | Mixed Use | 4/1/2016 | 36 units, 7,000 SF retail | $1,487,500 | $11,875,911 | |
LG | 1437 N Wells | Chicago, IL | Mixed Use | 4/8/2016 | 50 units, 6,743 SF retail | $8,677,548 | $25,000 | |
LG | The Plymouth | Chicago, IL | Multi-family | 4/29/2016 | 30 units | $3,000,000 | $1,680,000 | |
LG | Ronsley | Chicago, IL | Condos | 5/18/2016 | 41 units | $11,540,000 | $72,273,674 | |
LG | The Insurance Center | Chicago, IL | Mixed Use | 7/14/2016 | 132 units, 24,489 SF office, 5,224 SF retail | $10,071,897 | $53,441,270 | |
LG | The Jax | Chicago, IL | Mixed Use | 9/7/2018 | 166 units, 7,426 SF retail | $5,435,000 | $51,713,729 | |
LG | Trailhead | Chicago, IL | Mixed Use | 4/2/2019 | 109 units, 9,791 SF retail | $5,100,000 | $51,169,964 | |
LG | Roots - Printers Row | Chicago, IL | Retail/Restaurant | 10/5/2018 | 9,365 SF | $2,730,000 | $9,500,000 | |
HB | Larchmont-Lincoln | Chicago, IL | Mixed Use Rehab | 6/1/2003 | 7,950 SF (6 units, ground floor retail) | $1,200,000 | $2,050,000 | |
HB | Montrose Green | Chicago, IL | Land Flip, Entitled, Designed | 12/1/2009 | $605,000 | $3,000,000 | ||
HB | Half Acre Brewery | Chicago, IL | Industrial Rehab/Repurpose | 6/1/2012 | 57,000 SF | $1,600,000 | $3,150,000 | |
HB | Montrose West | Chicago, IL | Retail Rehab | 3/1/2015 | 2,854 SF | $949,000 | $1,950,000 |
*The above bios and track record were provided by LG Development, LLC and Harrington Brown, LLC and have not been independently verified by RealtyMogul.
Evanston Gateway presents a unique opportunity to invest in a completely shovel ready project on the boundary of Chicago and Evanston. The Project is fully entitled, GC contract is negotiated, building permit is in hand, and construction is set to commence in April 2021 with a build timeline of 12 months. Leasing is anticipated to begin in April 2022 with the residential move-ins starting in May 2022. The Real Estate Company anticipates stabilization during Year 2 and a target sale by April 2024 at an expected cap rate of 5.0%, totaling $13.2M.
Total project costs are estimated to be $12.46M, and the construction loan term sheet offers attractive terms at 3 years interest only at LIBOR + 2.65% with a LIBOR floor of .25%. Further, the Project has secured Tax-Increment Financing (TIF) from the City of Evanston, which provides for reimbursement of approximately $1.6M of costs to be incurred. The TIF is an additional source of equity in the deal, which results in a total equity raise of only 27%, therefore yielding higher returns to investors.
Project Schedule:
Year 1 - Construction
Year 2 - Lease-up
Year 3 - Stabilization and Disposition
A boutique 28-unit mixed-use project situated in the highly desirable Chicago North Shore, just steps from Lake Michigan, adjacent to Chicago's public transportation and the suburban commuter train. This transit-oriented building features a rooftop amenity space situated between two lush green roof gardens, a fitness room, and about 5,000 sf of ground floor retail.
Unit Mix
Unit Type | # of Units | Avg SF/Unit | Avg Rent (Stabilized) | Rent PSF | ||
1 x 1 (Market) | 10 | 745 | $1,877 | $2.52 | ||
1 x 1 (Affordable) | 3 | 811 | $1,185 | $1.46 | ||
2 x 2 (Market) | 13 | 1,115 | $2,607 | $2.34 | ||
2 x 2 (Affordable) | 2 | 1,055 | $1,422 | $1.35 | ||
Total/Averages | 28 | 946 | $2,109 | $2.23 |
Lease Comparables
Elevation Lofts | Edge on Broadway | The Main | Arcade Residences | Comp Averages | Evanston Gateway | |
Address | 1531 W Howard | 6149 Broadway | 847 Chicago Ave | 1135 Sheridan | 100 Chicago Ave | |
Year Built | 2020 | 2020 | 2016 | 2019 | 2018 | 2022 |
Units | 38 | 105 | 112 | 58 | 78 | 28 |
Average Rental Rate | $1,308 | $1,503 | $2,069 | $2,694 | $1,903 | $2,109 |
Average SF | 620 | 621 | 899 | 902 | 761 | 946 |
Average $/SF | $2.11 | $2.42 | $2.30 | $2.99 | $2.45 | $2.23 |
# Units (Studio) | 45 | 7 | 26 | |||
$ (Studio) | $1,267 | $1,438 | $1,290 | |||
SF (Studio) | 409 | 500 | 421 | |||
$/SF (Studio) | $3.10 | $2.88 | $3.06 | |||
$ (1x1) | $1,308 | $1,633 | $1,868 | $1,877 | $1,673 | $1,717 |
SF (1x1) | 620 | 635 | 788 | 652 | 689 | 760 |
$/SF (1x1) | $2.11 | $2.57 | $2.37 | $2.88 | $2.43 | $2.26 |
$ (2x2) | $1,776 | $2,226 | $3,027 | $2,345 | $2,449 | |
SF (2x2) | 772 | 1,027 | 978 | 954 | 1,107 | |
$/SF (2x2) | $2.30 | $2.17 | $3.10 | $2.46 | $2.21 | |
$ (3x2) | $3,364 | $3,528 | $3,468 | |||
SF (3x2) | 1,424 | 1,209 | 1,288 | |||
$/SF (3x2) | $2.36 | $2.92 | $2.69 | |||
Distance to Subject | 0.4 Miles | 2.4 Miles | 0.9 Miles | 2.1 Miles | 1.5 Miles | |
Notes | 78.9% occupied. Fitness center, dog run, and rooftop deck. | 94.2% occupied. Fitness center. Clubhouse. | 95.5% occupied. Rooftop terrace/resident area. | 77.6% occupied. Rooftop resident area with BBQ's. | Market rent following construction completion in 2022. |
Sales Comparables
931-933 Belle Plaine Ave | 1620 Central St | 3200 N Clark St | 5427-5437 N Broadway | 3905 N Western | Total/Averages | Evanston Gateway | |
Date | Mar '20 | May '19 | Jul '18 | May '18 | Feb '17 | Mar '23 | |
Submarket | Chicago | Evanston | Chicago | Chicago | Chicago | Evanston | |
Year Built | 2018 | 2017 | 2016 | 2015 | 2009 | 2015 | 2022 |
SF | 13,600 | 42,300 | 160,000 | 95,000 | 56,739 | 73,528 | 42,558 |
Units | 17 | 47 | 98 | 42 | 30 | 47 | 28 |
Average SF | 800 | 900 | 850 | 1,164 | 1,000 | 943 | 946 |
Sale Price | $6,700,000 | $20,500,000 | $53,000,000 | $15,800,000 | $14,125,000 | $22,025,000 | $13,263,811 |
$/Unit | $394,118 | $436,170 | $540,816 | $376,190 | $470,833 | $443,626 | $473,708 |
$/SF | $492.65 | $484.63 | $331.25 | $166.32 | $248.95 | $344.76 | $311.66 |
Cap Rate | N/A | 4.75% | 6.00% | N/A | 6.08% | 5.61% | 5.00% |
Distance from Subject (mi.) | 5.1 Miles | 3.7 Miles | 5.9 Miles | 3.2 Miles | 5.5 Miles | 4.7 Miles | |
Notes | 94.1% leased at sale. Local buyer (Fairmont Properties). | 87.2% leased at sale. Institutional buyer (Highlands REIT). | 20% retail mix (Target Express) valued at $10MM. $438K per unit excluding retail. Institutional buyer (Standard Companies). | 25% retail mix valued at $5MM. $255K per unit excluding retail. Institutional buyer (Laramar Group). | 16% retail mix valued at $3MM. $367K per unit excluding retail. Local buyer (Vestian Group). | 12% retail mix valued at $1.7MM. $411K per unit excluding retail. Fitness center. Rooftop deck. BBQ. |
Market Overview
The Evanston area remains a strong market with numerous drivers that continue to attract renters to the submarket, including a major university (Northwestern University), an expansive healthcare sector, convenient public transportation within Evanston and into the Chicago Business District, and a superb location along Lake Michigan. In the previous 12 months, 206 units have been delivered, while 240 units have been absorbed, resulting in positive absorption despite the ongoing coronavirus pandemic (Costar). Additionally, after an influx of 4- and 5-star assets delivered in Q42019 and Q12020, no development activity is currently underway in the Evanston submarket.
The largest employers in Evanston include the NorthShore University HealthSystem, Saint Francis Hospital and Northwestern University. All three employers employ approximately 5,000 individuals each. Evanston features a walkable downtown area and public transportation via the Chicago Transit Authority (CTA) Purple line and Metra, which has historically attracted young professionals who work in Downtown Chicago. Evanston has a population of nearly 75,000, boasts a median household income of $95,497 and a median age of 34-years-old.
Submarket Overview
Commonly known as where Chicago meets the North Shore, Evanston combines the relaxing nature of suburban living with much of the shopping, cuisine, culture, and arts found in urban settings. The city boasts the largest downtown workforce in the North Shore, with over 10,000 employees in the CBD. Evanston is home to Northwestern University, one of the most prestigious institutions in the country. Northwestern enhances Evanston's uniqueness through its Big Ten Conference athletic events, performing arts concerts, musicals and plays, and unrivaled landmarked architecture dating back to the turn of the century.
With several miles of frontage, Evanston gets to have direct access to Chicagoland's most prized asset, Lake Michigan, with seven different beaches. Culturally, Evanston is thriving with art galleries, festivals, public art, and museums. In addition to Evanston's downtown, there are charming commercial corridors on Central Ave on the north side of the city, and Howard St on the southern gateway. It’s easily accessible by an abundance of public transit options, and appreciated for its safe, walkable streets.
Sources of Funds | $ Amount | $/Unit | |||
Debt | $7,453,489 | $266,196 | |||
GP Investor Equity | $335,112 | $11,968 | |||
RM Investor Equity | $3,080,000 | $110,000 | |||
TIF Agreement | $1,590,000 | $56,786 | |||
Total Sources of Funds | $12,458,601 | $444,950 | |||
Uses of Funds | $ Amount | $/Unit | |||
Purchase Price | $2,500,000 | $89,286 | |||
Acquisition Fee | $25,000 | $893 | |||
Loan Fee | $119,535 | $4,269 | |||
Hard Costs, excluding contingency | $7,300,813 | $260,743 | |||
Retail Tenant Improvement Reserve | $224,550 | $8,020 | |||
Soft Costs(1) | $1,466,209 | $52,365 | |||
Interest Reserve | $175,000 | $6,250 | |||
Contingency | $647,494 | $23,125 | |||
Total Uses of Funds | $12,458,601 | $444,950 |
Please note that the equity contribution from LG Development Group and Harrington Brown may consist of friends and family equity and equity from funds controlled by LG Development Group and Harrington Brown. 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.
The expected terms of the debt financing are as follows:
- Lender: Busey Bank
- Term: 3 years with a 2-year mini perm option
- LTV: 60.0%
- Total Estimated Proceeds: $7,453,489
- Interest Type: Floating
- Spread above one-month LIBOR: 2.65%
- Interest Only: 3 years
- Amortization: 27 years
- Prepayment terms: After conversion to mini perm, prepayment is 2% in year 1 and 1% in year 2 but only applies to a refi and not to a sale.
- Extension requirements: Debt Service Coverage Ratio before distributions to be at least 1.20 to 1.00; DSCR after distributions to be at least 1.05 to 1.00.
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.
LG Development Group and Harrington Brown intend to make distributions from 100 Chicago Holdings, LLC as follows:
1. To the Investors, pari passu, all operating cash flows to a 10% preferred return
2. 70% / 30% (70% to Investors / 30% 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 occur after the sale of the property, which is expected to be in April 2024. These distributions are at the discretion of LG Development Group and Harrington Brown, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Cash Flow Summary | ||||||
Year 1 | Year 2 | Year 3 | ||||
Effective Gross Revenue | $0 | $756,689 | $914,675 | |||
Total Operating Expenses | $0 | $253,904 | $288,237 | |||
Net Operating Income | $0 | $502,785 | $626,438 | |||
Project-Level Cash Flows | ||||||
Year 0 | Year 1 | Year 2 | Year 3 | |||
Net Cash Flow | -$3,415,112 | $0 | $0 | $6,241,967 | ||
Investor-Level Cash Flows* | ||||||
Year 0 | Year 1 | Year 2 | Year 3 | |||
Net Cash Flow | -$3,080,000 | $0 | $0 | $5,139,670 | ||
Investor-Level Cash Flows - Hypothetical $50,000 Investment* | ||||||
Year 0 | Year 1 | Year 2 | Year 3 | |||
Net Cash Flow | -$50,000 | $0 | $0 | $83,439 |
*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
.
Certain fees and compensation will be paid over the life of the transaction; please refer to LG Development 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 | 1.0% of Acquisition Price | LG Development | Development Costs | |
Loan Guaranty Fee | 1.0% of Loan | Brian Goldberg | Development Costs | |
Loan Broker Fee | 1.0% of Loan | LG Development | Development Costs | |
Development Fee | 4.0% of Hard & Soft Costs | LG Development | Development Costs | |
General Contractor Fee | 3.0% of Total Construction Costs | LG Construction Group, LLC | Development Costs | Affiliate to LG Development |
Recurring Fees: | ||||
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
Administrative Services Fee | 1.0% of amount invested | RM Admin(3) | Cash Flow | |
Asset Management Fee | 2.5% of EGI | LG Development | Cash Flow |
(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.
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.