The FreeUp Storage DFW Portfolio provides investors with projected day 1 cash flow and additional upside potential. Currently, the Portfolio is realizing an 87% physical occupancy, and 80% economic occupancy. Year to date performance has been strong but in-place rents are below market. Spartan Investment Group's current presence in various Dallas and East Texas markets offers the opportunity to achieve operational efficiencies and streamline the performance of the Portfolio while increasing occupancy through targeted marketing strategies.
Over 1.3 million people have moved to DFW over the past 10 years fueling demand for storage. Texas, and specifically DFW, have seen extraordinarily high volumes of new population growth due in part to the suburbanization trends that have been playing out all across the country. The DFW area ranked 2nd in the country in 2020 for single-family construction permits and for the past twelve years, Texas has been the #1 destination for companies leaving California. 10 of the 14 properties are located in counties that are in the 90th percentile of highest net migration across the state of Texas.
While a total of 250,000+ square feet of expansion is possible, Spartan Investment Group conservatively underwrote a collective 160,000 square feet of expansion at five of the 18 sites based on feasibility analyses, projected new supply, and market fundamentals.
Spartan Investment Group
Spartan Investment Group ("SIG") was founded in 2013 and is headquartered in Golden, CO. In 2021, SIG was named the 5th fastest-growing private real estate company by Inc. 500. SIG focuses on value-add and ground-up development primarily in the self-storage asset classes. The vertically integrated team of professionals handles all aspects of the business to include acquisition, construction, property management, and asset management. SIG's business plan typically includes rebranding the property, hiring and training staff, and building additional units to increase the facilities' value. SIG currently owns ~12,000 units across Texas, Georgia, Florida, Colorado, Tennessee, Arkansas, the pacific northwest, and the midwest.https://spartan-investors.com/
Scott Lewis is the co-founder and Chief Executive Officer of Spartan Investment Group, LLC (SIG). As the CEO, Scott is responsible for the strategic direction of the company and ensuring it aligns with SIG’s mission to Improve Lives Through Real Estate. Prior to Spartan, Scott held positions as a regional sales manager for a biotech firm, various positions in strategic and project management for the federal government culminating at the GS 15 level, and was on active duty in the US Army as an Infantry Officer.
In addition to Spartan, Scott is active in the US Army Reserves and an Iraqi Freedom combat Vet.
Scott graduated from Michigan State University with degrees in Chemistry and Marketing, from Catholic University with an MS in Management, and from Georgetown University with a Certificate in Project Management.
Ryan Gibson is the Chief Investment Officer of Spartan Investment Group, LLC. As the Chief Investment Officer for Spartan Investment Group, Ryan is responsible for investor relations and capital raises for projects. Ryan has coordinated over $70M in private capital for SIG’s projects to date and oversees all of our marketing efforts, including our communication and outreach strategies. Ryan has previous experience in airline management overseeing the operation of 500 flights per day for the nation’s largest independently held airline. In this role, Ryan provided direct leadership to 200 pilots. In addition to holding the positions as Regional Chief Pilot, certified flight instructor, and Senior Aviation Analyst, Ryan was also directly involved with the FAA’s implementation of Public Law 111-216, which provided sweeping regulatory changes in the commercial aviation industry. Ryan graduated from Mercyhurst University with a bachelor’s degree in Business, with concentrations in Marketing, Management, and Advertising. In addition, Ryan attended Cornell’s Labor Relations certificate program.
Ben Lapidus is the Chief Financial Officer for Spartan Investment Group LLC, where he has applied his finance and business development skills to construct from scratch a portfolio of over $100M assets under management, build the corporate finance backbone for the organization, and organize over $20M of debt capital. In addition to completing over 60 real estate transactions at and prior to Spartan, Ben is also the founder and host of the national Best Ever Real Estate Investing Conference and managing partner of Indigo Ownerships LLC. Before Spartan, Ben founded and sold a multi-million dollar study abroad company and worked with several start-ups through IPO or acquisition. He graduated from Rutgers University with dual degrees in Finance and Economics where he founded the Rutgers Entrepreneurial Society.
Spartan Investment Group Track Record
|Property||City, State||Asset Type||Acq Date||Units or SF||Purchase Price||Current Market Value||Sale Price|
|Ridgmar Mall Storage||Fort Worth, Texas||Self-Storage||Feb 2020||1,106||$10,000,000||$18,200,000||N/A|
|FreeUp Storage Madison||Madison, WI||Self-Storage||July 2021||708||$12,200,000||$12,200,000||N/A|
|Mini-West Storage||Corsicana, Texas||Self-Storage||April 2019||979||$6,000,000||$14,500,000||N/A|
|FreeUp Storage Pea Ridge||Pea Ridge, AR||Self-Storage||Dec 2020||531||$5,500,000||$8,800,000||N/A|
|FreeUp Storage Fort Oglethorpe||Fort Oglethorpe, GA||Self-Storage||July 2021||441||$4,625,000||$4,625,000||N/A|
|FreeUp Storage Tyler Shiloh Road||Tyler, Texas||Self-Storage||Sept 2020||571||$2,500,000||$2,500,000||N/A|
|FreeUp Storage Boat Club Road||Fort Worth, Texas||Self-Storage||Sept 2019||219||$1,400,000||$3,850,000||N/A|
|FreeUp Storage Tyler SH-155||Tyler, Texas||Self-Storage||Sept 2020||395||$1,900,000||$1,900,000||N/A|
|FreeUp Storage Longview Gilmer Road||Longview, Texas||Self-Storage||Sept 2020||481||$1,800,000||$3,200,000||N/A|
|FreeUp Storage Longview Tyler Street||Longview, Texas||Self-Storage||Sept 2020||390||$1,800,000||$3,200,000||N/A|
|FreeUp Storage Huntsville||Huntsville, Texas||Self-Storage||Mar 2021||321||$4,200,000||$5,600,000||N/A|
|FreeUp Storage Ocala||Ocala, FL||Self-Storage||July 2021||387||$4,375,000||$4,375,000||N/A|
|FreeUp Storage Hudson||Hudson, FL||Self-Storage||July 2021||38||$3,940,000||$3,940,000||N/A|
|FreeUp Storage Palatka||Palatka, FL||Self-Storage||July 2021||249||$4,540,000||$4,540,000||N/A|
|FreeUp Storage Columbus||Columbus, GA||Self-Storage||July 2021||335||$3,095,000||$3,095,000||N/A|
|FreeUp Storage Lake Park||Lake Park, GA||Self-Storage||July 2021||432||$3,875,000||$3,875,000||N/A|
|FreeUp Storage Warner Robins||Warner Robins, GA||Self-Storage||July 2021||443||$1,575,000||$1,575,000||N/A|
|FreeUp Storage Warner Robins Storaway||Warner Robins, GA||Self-Storage||July 2021||239||$800,000||$800,000||N/A|
|FreeUp Storage Sharpsburg||Sharpsburg, GA||Self-Storage||Dec 2020||252||$2,990,000||$5,450,000||N/A|
|FreeUp Storage Fortson||Forston, GA||Self-Storage||July 2021||303||$2,250,000||$2,250,000||N/A|
|FreeUp Storage Centerville||Centerville, TN||Self-Storage||July 2021||503||$1,725,000||$1,725,000||N/A|
|Free Up Storage Aspen Park||Aspen Park, CO||Self-Storage||April 2020||190||$2,100,000||$2,100,000||N/A|
|FreeUp Storage Devonshire||Denver, CO||Self-Storage||April 2020||280||$1,450,000||$1,765,000||N/A|
|FreeUp Storage Sandy||Sandy, OR||Self-Storage||July 2021||351||$1,500,000||$1,500,000||N/A|
|FreeUp Storage Black Diamond||Pea Ridge, AR||Self-Storage||Feb 2017||755||$550,000||$33,300,000||N/A|
|HWY 285 RV Park||Pecos, TX||RV Park||Dec 2019||103||$2,300,000||$4,000,000||N/A|
|Goldenrod RV Park||Gardendale, TX||RV Park||Feb 2018||116||$1,750,000||$2,900,000||N/A|
|Lavender Meadows Park||Sequim, WA||MHC||Feb 2020||217||$3,540,000||$26,000,000||N/A|
|Aspen Park Self-Storage||Aspen Park, CO||Self-Storage||Aug 2018||129||$1,516,500||$2,100,000||$2,100,000|
|Chateau@1308||Washington, DC||Residential||Dec 2015||4||$455,000||$2,541,800||$2,541,800|
|SI Investors Six||Washington, DC||Residential||Aug 2017||2||$695,972||$1,292,500||$1,292,500|
|Elvans Road Lots||Washington, DC||Residential||Dec 2016||11||$450,000||$850,000||$850,000|
|Levis Street||Washington, DC||Residential||July 2016||1||$425,000||$785,000||$785,000|
|Evarts Street||Washington, DC||Residential||Mar 2015||1||$131,250||$750,000||$750,000|
|W Street||Washington, DC||Residential||Aug 2015||1||$100,000||$477,000||$477,000|
|L Street - 1354||Washington, DC||Residential||Apr 2011||1||$315,000||$715,000||$715,000|
|L Street - 1352||Washington, DC||Residential||Feb 2014||1||$100,000||$549,500||$549,500|
|L Street - 1350||Washington, DC||Residential||Sept 2009||1||$340,000||$615,000||$615,000|
The above bios and track record were provided by Spartan Investment Group and have not been independently verified by RealtyMogul.
The FreeUp Storage DFW Portfolio includes 14 properties with 4 satellite facilities representing 742,285 square feet of storage spread over 5,046 units.
Capital Improvement Plan includes:
- Repair drive aisles and recoat for a refreshed look
- Repair all roofs to ensure units are leak-free
- Renovate offices to provide an enhanced experience and add storage retail goods
- Repaint/repair building damage
- Replace all security cameras with modern systems
- Enhance the signage at the facilities
- Develop an additional 160,000 sf of rentable space across five properties
The Operational Improvement Plan includes:
- Bring in-place rents to market as in-place leases are $0.13psf/month or $1.58psf/year below their competitive set
- Rebranding facilities to FreeUp Storage National Brand (affiliate Property Manager of SIG)
- Improve staff training to enhance the customer experience
- Develop community partnerships for cross-marketing purposes
- Target vendors to develop corporate business relationships
- Add ancillary revenue streams through tenant insurance and retail sales
|Acquisition Cost||$ Amount||Per Unit||Per SF|
|Mortgage Brokerage Fee||$619,500||$123||$0.83|
|Total Acquistion Costs||$92,931,808||$18,417||$125.20|
|Renovation||$ Amount||Per Unit||Per SF|
|Hard Costs (GC)||$2,913,453||$577||$3.92|
|Total Hard Costs||$3,400,000||$674||$4.58|
|Expansion||$ Amount||Per Unit||Per SF|
|Hard Costs (GC)||$8,738,502||$1,732||$11.77|
|Total Expansion Costs||$9,760,000||$1,934||$13.15|
|Other||$ Amount||Per Unit||Per SF|
The FreeUp Storage DFW Portfolio offering consists of a value-add portfolio with scale and significant upside through expanding sites, implementing revenue management, rate increases, and added management efficiencies. The Properties are strategically situated throughout Dallas-Fort Worth and East Texas where Spartan Investment Group/FreeUp Storage owns and operates numerous store locations.
|Property||City||# of Units (1)||Property SF (2)||Avg Unit Rent PSF /month||Occupancy||Expansion SF||Stabilized # Units
|Stabilized Avg Rent PSF/month|
|Tyler (Indian Creek Satellite)||Tyler||46||5,760||$0.66||90%||0||46||$0.89|
|Tyler (Smart Choice Satellite)||Ben Wheeler||48||6,000||$0.66||90%||0||48||$0.89|
|North Richland Hills||North Richland Hills||135||21,010||$0.89||83%||0||135||$0.99|
|Forest Hill||Forest Hill||186||24,300||$0.97||89%||0||186||$1.02|
|Forest Hill (Satellite)||Forest Hill||384||49,075||$0.97||89%||0||384||$1.02|
(1) Total units of traditional self-storage is 5,046. There are approximately 506 parking and warehouse/office units bringing the total to 5,552 rentable units.
(2)Total square footage of 742,285 includes 690,888 sf of traditional self-storage units and 51,397 sf of office and warehouse space.
|IN Self Storage||Public Storage||10 Federal||Advantage Self Storage||BTA Self Storage||Averages||Subject Averages|
|Net Rentable Square Feet||24,113||56,000||20,345||70,527||56,297||45,456||52,989|
|Distance from subject||5.7 mi||1.4 mi||5.0 mi||3.9 mi||3.8 mi||4.0 mi|
*Please refer to the supplemental "Competitive Set Analysis" in the Documents section for more details.
Portfolio Sales Comparables
|Comp 1||Comp 2||Comp 3||Comp 4||Comp 5||Averages||Subject|
|SF||607,117 SF||597,609 SF||1,487,884 SF||335,616 SF||436,184 SF||595,497 SF||690,888 SF|
(1) Subject Property total square feet and unit count account for storage units only.
(2) The going-in cap rate is calculated using the annualized first month of proforma net operating income.
The DFW area (Dallas, Fort Worth, and Arlington Metropolitan Statistical Area or MSA) covers 9,286 square miles as the 4th largest MSA in the United States with a population of 7.4 million, and the 12th largest MSA in the world. From 2010 to 2019 the Dallas Metro gained 1.3 million residents, ranking 1st among all U.S. MSA’s.
From 2020 to 2029, the Dallas Metro is projected to add 1.4 million residents, and once again rank among the fastest-growing metro areas. The DFW MSA is the headquarters for 21 Fortune 1000 companies including AT&T, Dr Pepper Snapple Group, Exxon Mobil, Neiman Marcus Group LTD, Inc., and Texas Instruments, Inc. A 2019 report by the nonprofit Walton Family Foundation (of Walmart family fame) ranks Dallas-Fort Worth as the 27th most dynamic MSA and 6th among all major metro areas. There are more than 3 million jobs within Dallas-Fort Worth. In 2019, Inc. Magazine ranked Dallas in the top 10 hottest startup cities in America. The Dallas-Fort Worth area ranked 2nd in the country in 2020 for single-family construction permits.
For the past twelve years, Texas has been the #1 destination for companies leaving California. Nearly 100 businesses have recently relocated their headquarters to the Dallas-Fort Worth Metro or are planning to relocate their headquarters to the Dallas Metro. These include Caterpillar, Wayfair, Google, Samsung, and Charles Schwab. Google’s massive $600 million data center, spread across 375-acres, is currently under construction. Samsung recently consolidated operations within the Dallas Metro, bringing 1,000 jobs to the area. Additionally, Charles Schwab’s new campus in the Dallas-Fort Worth Metro will cost $100 million and will cover 70 acres. From a macro perspective, Dallas ranks #1 in the country for total job growth and for percent job growth. In 2019, Forbes ranked the Dallas-Fort Worth Metro area the #2 fastest growing economy. Dallas is home to three global 25 companies, with only Beijing hosting more. No other global metro hosts more than one. The Dallas-Fort Worth Metro also hosts 23 Fortune 500 companies, 3rd in the nation among all metros. There is a 4% lower cost of doing business than the national average.
Encompassing three MSAs - Longview, Texarkana, and Tyler - and the 12-county Texas Forest Country region, east Texas offers strong advantages for healthcare, manufacturing, distribution, and food processing operations.
Fueling the region’s growth is a highly skilled and educated workforce that continues to grow thanks to a wealth of educational opportunities and superb lifestyle assets. World-class real estate also abounds from massive industrial sites to cutting-edge biomedical research parks. The region’s robust interstate infrastructure provides easy links along the NAFTA corridor, linking Mexico and Canada to East and West Coast destinations. Union Pacific Railroad, one of the nation’s largest railroads, has major nodes in the region offering businesses efficient access to key ports and distribution centers. In 2019, Express Employment Professionals conducted an east Texas Employment Survey in partnership with the Tyler Area Chamber of Commerce and the Tyler Economic Development Council. While this survey was conducted prior to the economic disruption caused by COVID-19, the results represent a positive trending sentiment based on responses from 400 businesses on 12 straightforward questions, as seen on page 17 of the OM.
|Sources of Funds||$ Amount||$/Unit|
|GP Investor Equity||$500,000||$99|
|LP Investor Equity(1)||$37,150,000||$7,362|
|Total Sources of Funds||$108,812,000||$21,564|
|Uses of Funds||$ Amount||$/Unit|
|Total Uses of Funds||$108,812,000||$21,564|
The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(1) Approximately $4M of LP Investor equity will be contributed by the GP's family members and close friends/relatives identified as like-kind family.
(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
The expected terms of the debt financing are as follows:
- Lender: TBD
- Term: 60 Months
- Loan to Value: 70.0%
- Estimated Proceeds: $71,162,000
- Interest Type: Fixed
- Annual Interest Rate: 3.250%
- Interest-Only Period: 36 Months
- Amortization: 30 Years
- Prepayment Terms: 24-month minimum interest and 1 point exit fee
- Extension Requirements: 25 bps
There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all. All of the Sponsor’s estimated 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 risk of loss. If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.
Spartan Investment Group intends to make distributions from DFW Portfolio RM Offering, LLC as follows:
Operating Cash Flow
- 7.5% Preferred Return
- 65%/35% (65% to Members/35% to Promoted/Carried Interest) thereafter
- 7.5% Preferred Return
- Return of Capital
- 65%/35% (65% to Members/35% to Promoted/Carried Interest) thereafter
Spartan Investment Group 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 February 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Spartan Investment Group, who may decide to delay distributions for any reason, including maintenance or capital reserves. Spartan Investment Group will receive a promoted/carried interest as indicated above, and a portion of this promoted/carried interest may be received by RM Admin, LLC for administrative services.
|Cash Flow Summary|
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Effective Gross Revenue||$7,667,201||$8,832,061||$10,788,315||$11,290,521||$11,518,413|
|Total Operating Expenses||$2,600,106||$3,087,905||$3,506,627||$3,601,300||$3,673,990|
|Net Operating Income||$5,067,095||$5,744,157||$7,281,688||$7,689,221||$7,844,423|
|Project-Level Cash Flows|
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Cash Flow||($37,650,000)||$1,949,574||$2,481,678||$3,600,553||$2,622,604||$60,592,021|
|Investor-Level Cash Flows*|
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Cash Flow||($5,000,000)||$258,908||$329,572||$478,161||$348,287||$8,046,749|
|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)||$2,589||$3,296||$4,782||$3,483||$80,467|
*Returns are net of all fees. Such Fees include fees paid to RM Admin, an affiliate of RealtyMogul, who charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor. Please see the Fees and Disclaimers sections and Disclaimers sections below for additional information concerning fees paid to RM Admin.
RM Technologies, LLC and its affiliates does not provide any assurance of returns. The content on this Page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof. Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates. There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved. For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below.
Certain fees and compensation will be paid over the life of the transaction; please refer to Spartan Investment Group materials for details. The following fees and compensation will be paid(1)(2)(3)(4)(5)(6):
|Type of Fee||Amount of Fee||Received By||Paid From|
|Acquisition Fee||2.0% of Acquisition Price||Spartan Investment Group||Project Capitalization|
|Construction Management Fee||10.0% of Hard and Soft Costs||Spartan GC (Sponsor Affiliate)||Total Capex Budget|
|Developer Fee||6.0% of Hard and Soft Costs||Spartan Investment Group||Total Capex Budget|
|Financing Fee(5)(6)||1.0% of Loan Amount||Spartan Investment Group||Loan Proceeds|
|Seller Brokerage Fee(4)(6)||2.0% of Sale Price||Affiliate Sales Broker||Sales Proceeds|
|Type of Fee||Amount of Fee||Received By||Paid From|
|Administrative Services Fee||1.0% of Equity Invested*||RM Admin, LLC(3)||Cash Flow|
|Property Management Fee||6.0% of Gross Operating Income||FreeUp Storage (Sponsor Affiliate)||Cash Flow|
|Asset Management Fee||0.25% of Total Costs (up to $262,639 per annum)||Spartan Investment Group||Cash Flow|
|Tenant Reinsurance||50% of Tenant Insurance, net of expenses||Spartan Investment Group||Cash Flow|
*Only applies to equity raised through the RealtyMogul Platform
(1) Fees may be deferred to reduce impact to investor distributions.
(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies, LLC’s proprietary Platform and receive Platform-related services. An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor. The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
(3) RM Admin, an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor. RM Admin’s administrative services and fees are disclosed in the relevant operating agreement(s). RM Admin’s receipt of administrative fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
(4) In no event will a "Seller Brokerage Fee" be paid to an affiliate of the Sponsor when "Seller Brokerage Fees" have been or will be paid to an unaffiliated third-parter sales broker
(5) In no event will a "Financing Fee" be paid to an affiliate of the Sponsor when the "Financing Fees" have been or will be paid to an unaffiliated third-party debt broker
(6) At this time, Spartan does not anticipate earning either the Financing Fee or the Seller Brokerage Fee. The current primary course of action is to work with 3rd parties and award both of these fees to those 3rd parties
The content on this Page was provided by the Sponsor or an affiliate thereof. Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. No part of the content and information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s offering materials. None of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.
The content on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s 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"). The content on this Page 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. The content on this page should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between the content on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents. The content on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the discretion of the Sponsor.
Assumptions and projections included in the content on this Page are not reflective of the position of RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates. There can be no assurance that the Sponsor’s methodology used for calculating any projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate. The Sponsor’s Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Targets are not a predictor, projection or guarantee of future performance. There can be no assurance that the Sponsor’s Targets will be met or that the Sponsor will be successful in meeting these Targets. Target returns should not be used as a primary basis for an investor’s decision to invest.
This real estate investment is speculative and involves substantial risk. There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved. In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses. 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. Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.
Please see the applicable Investment Documents for disclosure relating to forward-looking statements. All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in 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 offered by the Sponsor 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 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 Private Placements on the RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act. Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.
RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies LLC’s proprietary Platform and receive Platform-related services. An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor. The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
RM Admin, an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor. RM Admin’s administrative services and fees are disclosed in the relevant operating agreement(s). RM Admin’s receipt of administrative fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
RealtyMogul is not a registered broker-dealer, investment adviser or crowdfunding portal. Nothing on this Page should not be regarded as investment advice, either on behalf of 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, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.
For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.
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