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Completed Equity
Multifamily
Six Peak Venice
Los Angeles, CA
INVESTMENT STRATEGY
Development
INVESTMENT TYPE
Equity
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100% funded
Offered By Six Peak Capital
18.2%* TARGET IRR 17.2%-19.2%
1.88x* TARGET EQUITY MULTIPLE
Estimated Hold Period 5 years
Estimated First Distribution 7/2024
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Project Summary
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Explore this Project
Overview
Six Peak Venice is a Class A co-living development project located in Mar Vista, West LA, within minutes of countless amenities, beaches, and job centers.
Location

Located in Mar Vista, west of the 405 freeway, Six Peak Venice is located in one the most expensive housing markets in the country due to a lack of supply and proximity to high quality amenities and jobs. The area is in need of more affordable options for renters, so Six Peak Venice plans to offer a Class A experience at a lower cost, while targeting higher returns than a traditional building at the same location due to the increased density.

Capital Appreciation

Due to the difficulty in developing new product in Los Angeles, there is an outsized demand for housing, which when coupled with tight cap rates and significant area median income, provides the opportunity for value creation.

Cash Flow

By developing a co-living property, the Real Estate Company can potentially access otherwise difficult to find yield. Bedroom density provides a lower cost option to the tenant while simultaneously potentially creating outsized NOI to the investor. Coupled with low interest rates, this should create attractive cash flow in addition to the capital appreciation of a high growth market.

Property At A Glance
Construction Completion Date December 2022
# of Units 19
Target Return on Cost 6.95%
# of Buildings 1
Parking Ratio 35 spots for 19 units/112 beds
Total Deal Capitalization

$27.6M

Investment Highlights
The Real Estate Company will construct a 19-unit, 112-bed asset with 35 sub-grade parking spots from the ground up.
The development will be “by-right”, streamlining the process to get plans approved. Full approvals are expected in early Q2 2021.
Los Angeles zoning law caps density based on unit count which provides the Real Estate company an opportunity to unlock greater NOI through co-living design and execution.
The Property is in a prime location on the westside of Los Angeles, within walking distance to a grocery store and numerous retail options, is highly bikeable, and is proximal to I-405, allowing easy access to various employment areas in the market.
The exit strategy is to sell the Property in five years.
The Real Estate Company is an institutional co-living investment and development firm with 23 co-living and micro-studio projects stabilized or under construction comprising nearly 2,000 beds in four markets.
Management
Cumulative Distributions

Six Peak Capital

Six Peak is a privately held real estate asset management firm. Founded in 2016, Six Peak is the property company (“PropCo”) owning the real estate underlying ground-breaking operating companies (“OpCos”) that are taking innovative approaches to real estate. This provides limited partners risk-adjusted returns with the upside from innovation with the downside protection of real estate in Top U.S. cities. Six Peak deploys 2 main strategies: 1) Los Angeles Direct Sourcing, Acquisition, Entitlement, Development and Construction 2) Co-GP Investment partnerships in Seattle, New York, and Chicago.

The firm’s investment strategies include co-living property development and redevelopment, multi-property portfolio acquisitions, joint ventures, and public-private partnerships. With 23 coliving projects totalling more than 2,000 beds, Six Peak is one of the leaders in co-living investments in the U.S.

Six Peak’s investment strategy emphasizes capital preservation and incentive alignment between the firm’s principals and investors. The firm focuses on long-term value creation and has the flexibility to make investments with a longer hold period than typical real estate opportunity funds. Six Peak seeks to unlock unrealized value in its portfolio over time through execution and a hands-on asset management approach. 

https://www.sixpeakcapital.com
  • Christopher Aiello
    Partner
  • Bob Kennedy
    Partner
  • Rich Littlehale
    Partner
  • Derek Sanders
    Director of Development
  • Jabree Brooks
    CFO
  • Chris Andresen
    Controller
  • Laura Mueller-Soppart
    Head of Product
  • Grady LaKamp
    Managing Director at LV Construction, LLC (an affiliate of SPC)
  • Joe LaKamp
    Managing Director at LV Construction, LLC (an affiliate of SPC)
Christopher Aiello
Partner

Cofounder of Six Peak Capital, current board member. Leads all Los Angeles Sourcing, Acquisitions, Underwriting, Capital Markets and Development for the firm. Former Chief Financial Officer and Head of Real Estate Acquisitions & Investments at Pan Brothers Associates, a New York City-based, real estate focused, family office with over 40 years of investing and operating experience 

Bob Kennedy
Partner

Cofounder of Six Peak Capital, current board member. Leads all Investor relations, Institutional Capital Formation, Marketing and Operations of the firm. Former Partner at AGI Partners LLC, an independent sponsor with average portfolio revenues of over $100 million. Co-founder of Pristine Environments Inc., a facilities maintenance company with over 1,800 employees servicing over 150 million square feet of real estate in all 50 states and Canada

Rich Littlehale
Partner

Cofounder of Six Peak Capital, current board member. Leads all Co-GP Partnerships in Seattle, Chicago and New York Sourcing, Acquisitions, Underwriting, Capital markets and Development for the firm. Founder & Board Member of TripleMint, a top technology-enabled real estate brokerage. Early advisor to Common Living, Inc. Co-founded YouRenew Solutions, a mobile solutions company acquired by Clover Wireless. 

Derek Sanders
Director of Development

Leads the development arm of Six peak, with day-to-day oversight of acquisition, due diligence, pre-development, entitlements, design, and construction management. Since joining Six Peak, Derek has assisted in sourcing a pipeline of 600+ coliving beds in Los Angeles. Prior joining Six Peak, Derek worked for Greystar and CIM in Los Angeles. Holds a masters in Real Estate Development from Columbia University.

Jabree Brooks
CFO

Leads all financial and investor reporting for Six Peak and is a CPA/CFA. Former Chief Financial Officer at The Metro Group, a water treatment and mechanical contractor based in New York City. He has over 10 years of banking experience, most recently as Vice President in credit risk and commodities at JPMorgan.

Chris Andresen
Controller

Leads all day to day accounting functions and tax reporting for Six Peak and is a CPA. Former CPA for Prodigy network in NYC for 4+ years and Senior Associate in Audit at Friedman LLP

Laura Mueller-Soppart
Head of Product

Leads the asset design, interior product design and marketing in conjunction with operator Common for Six peak. Also the founder of Built Interest a real estate firm dedicated unlocking the value of the shared economy in the built environment. Former Marketing Director at Two Trees, a Brooklyn NY based development company

Grady LaKamp
Managing Director at LV Construction, LLC (an affiliate of SPC)

Graduated BS in Construction Management in 2015. Interned for two years and upon graduation went to work for The Weitz Company as a project engineer. Worked as project engineer on Univision Radio Expansion ($4M), preconstruction engineer on 17 story senior living high rise in Tempe, Az, preconstruction engineer on Timber Ridge at Talus, ($70M) a senior living project in Issaquah, WA, and project engineer on Encore on First West, a $7M , 44 unit apartment building in Mesa, AZ. After finishing that project in spring of 2016, he transferred to L&V to be part of a smaller family company, successfully bidding and securing a ($16M) 59 unit apartment project in Los Angeles. Along with that has completed roughly $6M in commercial tenant improvement projects and small lot subdivisions. 

Joe LaKamp
Managing Director at LV Construction, LLC (an affiliate of SPC)

Graduated BS in Construction Management in 1983. Worked for Dillingham in Hawaiian Island for 4 years on infrastructure projects, and 44 story high rise hotel in Waikiki. Started with L&V in 1988 as superintendent. 1993 Started Speer-Lakamp Inc. commercial contractor in San Fernando Valley. After 1994 Northridge Earthquake worked in contract with CalFed bank on earthquake damage and apartment remodeling in greater LA area. After earthquake scope wound down, primarily worked for Louis Ghonda Commercial Real Estate Development building roughly 300 Units worth of condominiums in Wilshire and Santa Monica. In 2000, competitively bid and constructed Hustler Casino located in Gardena. From 2000 on Joe worked exclusively in Glendale/Burbank completing numerous high margin/high quality tenant improvement projects. In 2008 Joe came back to L&V to take over ownership and operations, after his partner in Speer-Lakamp retired. From 2008-2015 L&V almost exclusively worked for GlenAir a large manufacturing company in Glendale rehabbing most of their properties (some 20 or so buildings) for necessary upgrades in their equipment and manufacturing development. 

Track Record

        Projected / Actual All-in Basis  
  No.   Name ($)  
LA Six Peak Development 1 North Hollywood Bonner $5,896,080 Under Management
  2 Hollywood Melrose $26,400,717 Construction
  3 Hollywood Kenmore $5,498,335 Construction
  4 Westchester Reading $24,381,675 Pre-Development
  5 Mar Vista Venice $24,378,659 Pre-Development
  6 Mar Vista Berryman $34,811,988 Pre-Development
  7 Mar Vista Berryman II $27,607,943 Pre-Development
  8 Koreatown Francis $65,232,987 Pre-Development
    8 Projects Total $214,208,384  
           
LA Six Peak Co-GP Development 9 Eagle Rock Eagle Rock $10,697,175 Construction
  10 Hollywood Normandie III $5,124,166 Construction
  11 Hollywood Normandie II $5,796,233 Under Management
  12 Hollywood ALX $7,264,467 Under Management
  13 Boyle Heights N Evergreen $10,175,613 Construction
  14 Mar Vista Matteson $14,649,126 Construction
  15 Westlake Ocean View $9,652,155 Pre-Development
  16 Chinatown Cleveland $11,108,361 Pre-Development
  17 Westchester Sepulveda $9,145,393 Pre-Development
    8 Projects Total $83,612,688  
           
NYC Co-Living 18 Ridgewood Cypress $1,927,176 Under Management
  19 Bushwick STN $12,209,290 Under Management
  20 Bushwick Evergreen $6,792,339 Construction
    3 Projects Total $20,928,805  
           
Seattle Microunits / MF 21 Capitol Hill Denny & Harvard $20,868,792 Construction
  22 Ballard 54th $15,118,185 Pre-Development
  23 Yesler Terrace 19th Ave $8,599,699 Pre-Development
  24 Capitol Hill Belmont $18,111,202 Pre-Development
  25 Fremont Phinney $15,791,817 Pre-Development
  26 North Beacon Hill Judkins Central $4,350,000 Pre-Development
  27 North Beacon Hill Judkins East $4,550,000 Pre-Development
  28 North Beacon Hill Judkins West $4,300,000 Pre-Development
    8 Projects Total $91,689,694  
           
Chicago Co-Living 29 South Loop State St $9,050,151 Construction
  30 South Loop State St II $3,947,381 Pre-Development
    2 Projects Total $12,997,532  
           
           
NYC Stabilized Traditional MF 31 Prospect Lefferts Summit Portfolio $2,665,480 Under Management
  32 Crown Heights Summit Portfolio $2,488,374 Under Management
  33 Crown Heights Summit Portfolio $2,909,744 Under Management
  34 Crown Heights Summit Portfolio $2,827,745 Under Management
  35 Park Slope 8th Ave $4,200,000 Under Management
  36 Park Slope Prospect Park West $4,925,000 Under Management
  37 Park Slope 6th Ave $2,990,000 Under Management
  38 Carroll Gardens President $3,700,000 Under Management
  39 East Village 9th Street $5,975,000 Under Management
    9 Projects Total $32,681,343  
           
    39 Total Projects   $456,118,447  
           
Notes:          
1. Many of these projects are not yet stabilized / still under construction so numbers are subject to change
2. Sponsor is in the process of selling the land for Cleveland and OceanView, which would reduce the total above
3. Under Management is either in lease-up or leased and stabilized  

The above bios and track record were provided by Six Peak Capital and has not been independently verified by RealtyMogul.

Business Plan

Six Peak purchased the Property in October 2019 and used the Ellis Act filed in November 2019 to vacate the building. The existing improvements are in disrepair and are projected to be demolished in March 2021. The Project is by-right and is currently in the plan check approval process with the City of LA. The permits are close to being finalized. 

The underlying zoning of the site limits any development to 19 units. Six Peak has designed a 19 Unit, 112-bedroom co-living project. There are 18 six-bedroom units and 1 four-bedroom unit, all with private ensuite bathrooms for each tenant. This provides relatively affordable private space for a tenant desiring west LA housing while sharing a common area kitchen and living room space. 

The Project has 1 level of underground parking for 35 parking spots with approximately 43,000 SF of habitable building space with interior common area space, interior courtyard space as well as a roof deck for tenant amenities. The Project will start construction in Q2 2021 and finish by Q4 2022 for lease up shortly thereafter. Upon stabilization, the Real Estate Company plans to refinance the project with long-term, low-cost debt. The Real Estate Company plans to exit the investment within a 5-year hold period but will assess market conditions to optimize value.

Target Development Budget (subject to change):

  $ Amount Per SF*
Acquisition Costs (shovel ready, no land markup)  
Purchase Price (October 2019) $5,276,000 120.44
Predevelopment permitting expenses $1,374,000 31.37
Total Land Costs $6,650,000 $151.81
     
Hard Costs    
General Requirements $672,951 15.36
Off-site Construction $8,500 0.19
On-site Construction $1,264,051 28.86
Concrete $1,344,481 30.69
Metals  $1,350,003 30.82
Wood and Plastics $1,717,248 39.20
Thermal & Moisture Protection $386,847 8.83
Doors, Windows & Glazing $394,364 9.00
Finishes $1,396,425 31.88
Specialties $121,339 2.77
Equipment $170,596 3.89
Furnishings $36,823 0.84
Conveying Systems  $249,001 5.68
Mechanical  $2,465,809 56.29
Electric  $1,900,237 43.38
Project Administration $750,001 17.12
Building Electronics/Low Voltage $150,000 3.42
Utility Connection/Trenching $150,000 3.42
Demolition $90,000 2.05
Hard Cost Contingency $1,461,868 33.37
Total Hard Costs $16,080,545 $367.09
     
Soft Costs    
Permits/Fees $999,800 22.82
Vertical Soft Costs $865,000 19.75
Marketing/Leasing $75,000 1.71
FF&E $392,000 8.95
Development Fee $965,166 22.03
Total Soft Costs $3,296,966 $75.26
     
Financing Costs $1,026,489 $23.43
Closing Costs $522,170 $11.92
     
Grand Total $27,576,170 $629.52
*SF based on total habitable square feet.   
Property
Property Details

The Project is centered between Silicon Beach on walkable Venice Blvd, bikeable to the beach and Abbot Kinney Blvd in one of the most desirable locations in West LA. Its close proximity to more than 500,000 jobs located west of the 405 freeway make it an ideal location for shared housing and affordable by design rents to the 25-40 year old demographic.  Google, Snapchat, Microsoft, Amazon, Apple, and Facebook all have offices within a 5-10 minute drive from the Property. Its close proximity to Santa Monica, Culver City and Playa Vista make it an ideal location for the live/work/play lifestyle.

Unit Mix:

Unit Type # of Units Avg SF/Unit Avg Rent/Bed (Stabilized) Rent per SF
6BR Co-living 18 1,700 $2,021 $7.13
4BR Co-living 1 1,200 $2,021 $6.74
         
Total/Averages 19 1,674 $2,021 $7.11
Comparables

Lease Comparables - Co-living

  13348 Beach Ave 2432 Penmar Ave 4210 Del Rey Ave 29 Navy St 5842 Carlton Way Averages Subject
                   
Year Built 2018 2019 2019 1924/2018 2019 2019 2022
# of Bedrooms 242 12 108 31 84 95 112
Average Rental Rate (per bed) 2,674/month 1,700/month 1,941/month 2,074/month 2,020/month 2,329/month 2,021/month
Average $/SF $13.37/SF $11.33/SF $10.78/SF $17.28/SF $13.47/SF $13.00/SF $13.47/SF
Distance from subject 1.3 mi 1.6 mi 1.6 mi 3.1 mi 11.6 mi 3.8 mi  
Notes Partially co-living. 4-7 furnished bedrooms with en-suite bathroom. Amenities. Avg BR SF estimated. 4 3-bedroom units. Rooftop deck. Shared Bathroom. 4 shared kitchens.  Rooftop Spa. Shared bathroom. Fitness studio. Barbecue. 93% occupied. Studio & 2-bedroom co-living. Rooftop deck. Shared bathroom. 93.5% occupied. Boardwalk Adjacent.  5- & 3-bedroom units. Shared bathroom. Lounge & Café.  

Reflects year 3 stabilized rents;
18 6-Bedroom Units. 1 4-bedroom unit. Avg BR SF estimated. 

Lease Comparables - Conventional Multifamily

      12636 Matteson Ave 12821 Washington Blvd 13365 Washington Blvd 4044 Redwood Ave 1107 Venice Blvd Averages Subject
                   
Year Built     2017 2020 2013 2015 2009 2015 2022
# of Units 29 37 19 22 38 29 19
# of Bedrooms 49 47 34 29 40 40 112
Average Rental Rate (per bed) 2,190/month 2,969/month 2,148/month 1,920/month 3,062/month 2,503/month 2,021/month
Average $/SF $3.29 $4.15 $2.82 $3.07 $3.52 $3.43 $6.94
Distance from subject 0.3 mi 0.8 mi 1.1 mi 1.1 mi 1.2 mi 0.9 mi  
Notes     New construction, no amenities.  New construction, no amenities.  Spa. 1 mile west of subject, adjacent to Costco. Rooftop deck. Barbecue. 1 mile west of subject.   
Reflects year 3 stabilized rents; 
Avg $/sf based on total unit rent.

Sales Comparables

  9901 Washington Blvd 11400 Culver Blvd 4227 McLaughlin Ave 3667 Mentone Ave 12626 Matteson Ave Averages Subject
               
Date Sold 1/3/2018 8/14/2020 6/29/2018 10/8/2019 10/8/2019   1/31/2026
Year Built 2016 2018 2018 2019 1988 2012 2022
# of Units 131 21 14 10 20 39 19
# of Bedrooms 226 25 26 20 40 67 112
Sale Price $42,529,019 $10,500,000 $9,457,500 $7,500,000 $9,687,500 $15,934,804 $38,774,166
$/Bedroom $188,182 $420,000 $363,750 $375,000 $242,188 $317,824 $346,198
$/SF $343 $404 $596 $586 $463 $478 $885
Cap Rate N/A 4.11% 4.26% 3.95% 4.13% 4.11% 4.50%
Building Size 123,991 SF 25,990 SF 15,868 SF 12,799 SF 20,923 SF 39,914 SF 43,805 SF
Distance from subject 2.7 mi 2.3 mi 1.3 mi 2.4 mi 0.2 mi 1.8 mi  
Location

 

Market/Submarket Overview

Los Angeles West—known to locals as “the Westside”—is regarded as one of the most desirable live-work-play destinations in Southern California. Benefiting from a vast tenant base, a highly skilled workforce, high-quality office and housing supply and world-class retail and entertainment amenities, Los Angeles West continues to maintain its status as one of the nation’s premier markets. With approximately 890,000 residents, the Westside offers a young, highly educated labor force to support the region’s high-wage employers. The Westside remains a key financial hub for Greater Los Angeles, and a preferred location for entertainment, media, legal and professional services firms. In recent years, however, the market has also evolved to include more technology firms, amplifying office demand even further. Districts like Playa Vista, Venice, Marina del Rey and even Culver City have become an epicenter for major technology, media and creative players like Google, Apple and Amazon, earning the area the nickname of “Silicon Beach.”

The Los Angeles West office market also encompasses some of the region’s most coveted and prestigious communities including Santa Monica, Pacific Palisades, Beverly Hills, Century City, Westwood and Brentwood, each with distinct attributes that accommodate different office users, from entertainment agencies in Westwood high-rises to chic lifestyle brands in the boutiques of Beverly Hills.

Strong and steady job growth in the region remains a potent source of office demand – since last year, Los Angeles’ employment base expanded by approximately 63,400 jobs (nonfarm) with an unemployment rate amongst the lowest seen over the last decade at 5.0% (July 2019). In addition, consumer demand and spending have remained resilient while in-migration and tourism continue to thrive.

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/SF
Debt $16,000,000 $365
GP Investor Equity $1,156,170 $26
LP Investor Equity $10,420,000 $238
Total Sources of Funds $27,576,170 $630
           
Uses of Funds   $/SF
Purchase Price $5,276,000 $120
Predevelopment and Permitting Expenses $1,374,000 $31
Loan Fee $120,000 $3
Closing Costs(1) $622,170 $14
CapEx $19,377,508 $442
Loan Reserve $806,489 $18
Total Uses of Funds $27,576,170 $630


Please note that Six Peak Capital's equity contribution may consist of friends and family equity and equity from funds controlled by Six Peak Capital. 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.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: City National Bank
  • Term: 24 Months
  • Loan to Value: 58.0%
  • Estimated Proceeds: $16,000,000
  • Interest Type: Floating
  • Spread above one-month LIBOR: 3.75%
  • Interest-Only Period: Full
  • Amortization: None
  • Prepayment Terms: None
  • Extensions: 12 Months

Modeled Refinance:

  • Lender: Unknown
  • Term: 5-10 Years
  • Estimated Proceeds: $23M
  • Interest Type: Amortizing
  • Spread above one-month LIBOR: 4.00%
  • Interest-Only Period: None
  • Amortization: 30 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.

Distributions

Six Peak Capital intends to make distributions as follows:

  1. To the Investors, pari passu, all operating cash flows to a 12.0% preferred return;
  2. 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow thereafter. 

Six Peak Capital intends to make distributions to investors after the payment of both company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in September 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Six Peak Capital, 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^
Effective Gross Revenue   $0 $76,290 $2,397,478 $2,741,381 $2,586,120
Total Operating Expenses   $0 $44,327 $922,079 $838,234 $790,760
Net Operating Income   $0 $31,963 $1,475,400 $1,903,147 $1,795,360
                 
Project-Level Cash Flows          
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow -$11,576,094 $0 $31,963 $7,760,219 $523,852 $15,820,015
                 
Investor-Level Cash Flows*          
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow -$10,420,000 $0 $11,400 $6,879,997 $367,267 $12,286,132
                 
Investor-Level Cash Flows - Hypothetical $50,000 Investment*  
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow -$50,000 $0 $55 $33,013 $1,762 $58,955

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

^Reflects 11 months of year 5 revenue due to sale. Annualized year 5 NOI: $1,961,033.


 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Six Peak Capital'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
Development Fee 5.0% of Hard & Soft Costs Six Peak Capital Development Costs  
Contractor Fee $600,000 LV Construction Development Costs Affiliate to Six Peak Capital
Pre-Development Fee $75,000 HC Land Management LLC Development Costs  
Acquisition Fee $105,520 HC Land Management LLC Development Costs 2% of Purchase Price
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Administrative Services Fee 1% of equity* RM Admin(3) Cash Flow Dev period capitalized upfront

*Only applies to equity raised through the RealtyMogul Platform

(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 the Real Estate Company 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.

Disclaimers/FAQs
Disclaimers

The content on this detail page was provided by the Sponsor or an affiliate thereof. The Sponsor is under no obligation to update this detail page. None of the opinions expressed on this detail page are the opinions of RealtyMogul and they are not endorsed by RealtyMogul. Assumptions and projections included in this detail page are not reflective of the position of RealtyMogul or any other person or entity other than the Sponsor’s investment vehicle (“Investment Entity”) or its affiliates.

The preceding summary of principal terms of the offering is qualified in its entirety by reference to the more complete information about the offering contained in the offering documents, including, without limitation, the Private Placement Memorandum, Operating Agreement, Subscription Agreement and all exhibits and other documents attached thereto or referenced therein (collectively, the "Investment Documents"). This summary is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment. In the event of an inconsistency between the preceding summary and the Investment Documents, investors should rely on the content of the Investment Documents.

There can be no assurance that the methodology used for calculating targeted IRR is appropriate or adequate. Target IRR is presented solely for the purpose of providing insight into the Investment Entity’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Investment Entity’s performance. Targeted IRR is not a predictor, projection or guarantee of future performance. There can be no assurance that the Investment Entity’s targets will be met or that the Investment Entity will be successful in identifying and investing in investment opportunities that would allow the Investment Entity to meet these return parameters. Target returns should not be used as a primary basis for an investor’s decision to invest in the Investment Entity. Please see the applicable Investment Documents for disclosure relating to forward-looking statements.

All forward–looking statements attributable to the Sponsor or persons acting on its behalf apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in this summary and the Investment Documents. Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

The interests in the Investment Entity will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon exemptions contained in Rule 506(b) or 506(c) of Regulation D as promulgated under the Securities Act. In addition, the interests will not be registered under any state securities laws in reliance on exemptions from registration. Such 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 investing activities risk the loss of capital. There can be no assurance that investors will not suffer significant losses. No guarantee or representation is made that investment objectives of the Investment Entity will be achieved. You should not subscribe to purchase interests in the Investment Entity unless you can readily bear the consequences of such loss.

Interests in the Investment Entity are listed on the RealtyMogul Platform. RealtyMogul receives fees from the Sponsor or the Investment Entity partially based on the number of investors investing in such Investment Entity through the RealtyMogul Platform. This arrangement could create a conflict of interest between RealtyMogul and investors.

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