FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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Confidentiality Agreement
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Funded
Estimated Hold Period 5 Years
Estimated First Distribution 7/2025
FUNDED 100%
...
View Our Due Diligence Process
Offered By
The Rilea Group
Investment Strategy Development
Investment Type Equity
Minimum Investment 35000
Overview
Ground-up development of a Class A, 225-unit mixed-use building with 22,000 square feet of ground-floor retail in the growing Wynwood neighborhood of Miami.
Class A

Mohawk at Wynwood will be a first-class, Class A building that offers residents a mix of amenities in combination with a growing and desirable location. Additionally, with just 225 units, the building will be smaller than many others in its competitive set, allowing for less density in a post-COVID world.

Location

The Wynwood submarket offers the appeal of being well-located near Midtown Miami and the Design District and has become attractive for corporations as well as individuals alike. Spotify recently agreed to open a South Florida HQ within the Wynwood submarket, which speaks to the growth and desirability of the area. Additionally, Trade Joe's recently agreed to a lease at the site directly across the street from the Project.

Capital Appreciation

Underwriting was done in COVID environment and based on a comp set that has already dealt with COVID pricing. By the time the Project is developed, underwriting may be conservative. 

Property at a glance
# of Units 225
Parking Ratio 1.3 per unit
Exit Cap Rate 4.50%
Target Return on Cost 6.9%
Construction Completion Date 11/1/2024
Acquisition Price $22,330,000
Investment Highlights
Located in the Wynwood submarket right by Midtown Miami and the Design District.
Amenities will include a rooftop pool deck, private hang-out, and dog park as well as a two-level resident's lounge and a two-level gym.
The Sponsor has an over 40-year Miami-centric track record that includes over 9,000,000 sq. ft. of development.
Management
Cumulative Distributions

The Rilea Group

Since 1981, the Rilea Group has transformed or is transforming over $1.1 billion and 9,000,000 square feet of South Florida real estate into some of the most recognizable and award-winning properties. The Rilea Group partners with investors and landowners interested in creating financially successful and sustainable structures. Their ethos is driven by their values and yearning to define transformational lifestyle experiences, long-term partner satisfaction, and financial return.

https://www.rileagroup.com
  • Alan Ojeda
    CEO
  • Diego Ojeda
    President
  • Marc Coleman
    Director of Development
  • Tony Rey
    Director of Construction
Alan Ojeda
CEO

Alan Ojeda, owner, founder, and CEO, has developed in South Florida since Rilea’s inception in 1981. Mr. Ojeda has been on the cutting edge of real estate developing marquee projects like 1450 Brickell, 1111 Brickell, The Bond, and One Broadway. Mr. Ojeda has always pushed the boundary with his projects, many times choosing non-traditional and out-of-the-box routes which have been quite fruitful and successful. A very hands-on minded individual, Mr. Ojeda considers himself a true artisan of buildings, as he enjoys every step of the process from early design through all steps of construction. Mr. Ojeda graduated from Madrid School of Law and the Madrid School of Economics. Mr. Ojeda is committed to the South Florida Community by serving as a board member in the following organizations:

  • Former chairman and board member of Carrfour (www.carrfour.org) providing homes to the homeless
  • Former board member of the Miami Children Hospital Foundation (www.mchf.org), the leader in local child healthcare
  • Board member of the University of Miami School of Architecture
  • Board member of the ULI
  • Board member of the Miami Downtown Development Authority (www.miamidda.com).
Diego Ojeda
President

Diego Ojeda, President of Rilea Group, joined the family enterprise in 2008. Mr. Ojeda’s responsibilities include devising and executing growth strategy, deal structuring and execution, project management, assets portfolio management, and performance management.

  • Boston University – Bachelors in Communications and Business Management
  • Harvard University – Graduate of School of Design: AMDP Real Estate XVIII
  • Member of YPO – Young Presidents’ Organization
Marc Coleman
Director of Development

With over 25 years of leading-edge design and development experience, Mr. Coleman’s expertise in luxury development has spanned the country from Texas to New York and from California to South Florida. Most recently, Mr. Coleman has spent the past 18 years in South Florida. His experience encompasses millions of square feet of residential and mixed-use developments totaling well over 2-1/2 billion dollars worth of investment.

Educated as an architect, engineer, and developer, Mr. Coleman has spent most of his career leading development teams in various aspects of real estate projects ranging from acquisition, concept, design, and construction, to marketing, branding, leasing, and sales. His skill and expertise have proven indispensable in challenging situations, from highly escalated to severely distressed markets, while his ability to produce has been instrumental in the development and launch of many successful projects in densely populated urban markets. As Director of Development for the Rilea Group, Mr. Coleman brings extensive real-world experience and unparalleled commitment to high-quality, market-driven results.

Prior to Rilea Group, Mr. Coleman was President of Development at One Real Estate Investment. Previously he was Senior Vice-President of Development at Newgard Development and held senior management roles at the Related Group of Florida and Crescent Heights, two of the nation’s largest real estate developers.

Mr. Coleman is a graduate of the Massachusetts Institute of Technology where he earned a Master of Science in Real Estate Development. He is also a graduate of the University of Texas at Austin where he earned both a Bachelor of Architecture and a Bachelor of Science in Architectural Engineering. Mr. Coleman is currently Vice-Chair of the Wynwood Design Review Committee and a licensed architect in Florida and Texas and has served as a member of the Aventura Marketing Council, the Miami Beach Development Commission, and the American Institute of Architects.

 

Tony Rey
Director of Construction

Anthony Rey, Director of Construction, is responsible for pre-construction, procurement, compliance, coordination of construction and turnover operations as well as a liaison to property management. He adherently oversees pre-construction activities involving land acquisition, solicitation of RFP’s/RFQ’s, evaluate the feasibility, due diligence, budgeting, and scheduling. Throughout his career, he has been the principal in charge of numerous types of projects ranging from small volume to several hundred million dollars individually and overall cumulative operation nearing one billion dollars. These projects have included Railways, Hotels, Office/Residential Buildings, Light Industrial, Institutional, Lower and Higher Education, Affordable Housing, and Government Projects with Veteran’s Administration/Internal Services Department oversight as well as environmental assessment and cleanup assessments and reporting. Mr. Rey graduated with a Bachelor of Science in Civil Engineering from Florida International University.

Track Record

Property City, State Asset Type Acq Date Units or SF Notes
1450 Brickell (JP Morgan Tower) Miami, FL Office 2007 588,000  
Sabadell Financial Center Miami, FL Office 1996 420,000  
International Finance Bank Headquarters Miami, FL Office 2010 525,000 Fee dev deal
The Bond Miami, FL Residential 2010 328  
One Broadway at Brickell Miami, FL Residential 2003 371  
Monte Carlo Miami Beach, FL Residential 2011 136 Fee dev deal
Vista Verde at Westchester Miami, FL Residential 1988 306  
Vista Verde at Deerwood Miami, FL Residential 1997 206  
Green Key Pembroke Pines, FL Residential 2001 250  
Vista Verde at Coconut Creek Coconut Creek, FL Residential 2001 288  
Vista Verde at Sunrise Sunrise, FL Residential (Under Construction) 2017 288 Under construction
Parco Mare Dania Beach, FL Residential (Upcoming) 2009 237 Empty land
The Line - Phase 1 Miami, FL Residential (Upcoming) 2014 449 Empty land
Latin American Plaza Miami, FL Retail 1984 33,000  

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

The Rilea Group (the “Sponsor”) is pleased to present an opportunity to provide investment equity for the development of a mixed-use development to be called “Mohawk at Wynwood”. The project will consist of a 225-unit, 12-story luxury multi-family building containing 22,000 SF of prime ground floor retail. The site size is 1.5 acres (65,700 SF).

Located at 56 NE 29th Street, Miami, FL, Mohawk will find itself at the crossroads of Miami’s trendy and bourgeoning Wynwood and Midtown neighborhoods. Residents will be able to walk and scooter to their favorite destinations such as the Wynwood Walls, hip stores and restaurants with various flavors, and the shops at Midtown Mall. Located at just a short 5-minute drive to world-class shopping at the Miami Design District as well as to highway I-195, Mohawk will have access to a wide variety of amenities. 

The Project will boast attractive amenities such as a rooftop pool deck, a private hang-out, and dog park, a double volume resident’s lounge, a two-level state-of-the-art gym, and amenity private offices for an easy get-away to take care of work & zoom calls in a post-COVID-era.

The total project cost is estimated to be approximately $104 million. The Sponsor is seeking an equity investment of $41.5 million to be provided in 2 phases:

    Phase I: $27 million for the purchase of land (with existing performing retail) and most soft costs.
    Phase 2: $14.5 million for the construction of the Project.

This offering represents an opportunity to invest in an urban and proven neighborhood with excellent Sponsorship with a 40-year track record developing some of Miami’s most iconic projects. 

Development Budget:

  $ Amount Per SF
Land Acquisition Cost $22,330,000 $103.65
     
Hard Costs:    
Construction - Multifamily $47,482,525 $220.41
Construction - Retail & Office $6,375,000 $29.59
Builder's risk (based on Hard Cost) $538,600 $2.50
Payment & Performance Bond $538,600 $2.50
Cameras & Security System $350,000 $1.62
Gym Equipment $125,000 $0.58
Decoration $500,000 $2.32
Signage $200,000 $0.93
Asst. Project Managers $592,433 $2.75
Contingency $5,385,800 $25.00
Total Hard Costs $62,087,959 $288.20
     
Soft Costs:    
Architecture $969,435 $4.50
Interior Design $225,000 $1.04
MEP Design $350,100 $1.63
Structural Design $350,100 $1.63
Structural Peer Review $15,000 $0.07
Landscape Architect $37,500 $0.17
Civil Engineering $45,000 $0.21
Pool Consultant $30,000 $0.14
Fire Consultant $30,000 $0.14
Soil Test & Test Piles $20,000 $0.09
Glazing $45,000 $0.21
Concrete & Other Test on Mat $25,000 $0.12
Post Tension Cables Test $72,500 $0.34
Threshold Inspector $125,000 $0.58
Marketing $150,000 $0.70
Retail leasing broker commissions $429,000 $1.99
Cable Agreement Income ($61,600) ($0.29)
Operating Expense Deficit Reserve $67,746 $0.31
Developers Fee  $3,975,000 $18.45
Surveys $35,000 $0.16
Permit Fees $2,908,306 $13.50
Real Estate Taxes (Const) $300,000 $1.39
Appraisals $37,500 $0.17
Legal Costs $300,000 $1.39
Miscellaneous Soft Costs $277,000 $1.29
Project/Owner General Liability $35,000 $0.16
Construction Bond Warranty $10,000 $0.05
Total Soft Costs $10,802,588 $50.14
     
Financing Costs* $8,132,200 $37.75
     
Grand Total $103,352,746 $479.75

*Includes an estimate of the RM Tech fee

These amounts are subject to change at the discretion of the Real Estate Company.

Summary

Property Information

The Property sits in a location that is bordered by Wynwood, Midtown Miami, and the Design District, earning a Walk Score of 94. Wynwood is known for being Miami's epicenter of the arts and creative businesses and attracts 4M+ visitors annually. Midtown Miami is a 56-acre master-planned community with over 645,000 square feet of retail anchored by Target, Marshalls, HomeGoods, and restaurants. The Design District is known for high-end shopping and is home to 150+ luxury stores such as Louis Vuitton, Burberry, Fendi, and Dior. Collectively, these three walkable neighborhoods give the Property's future residents an array of dining, nightlife, and shopping options.

Unit Mix:

Unit Type # of Units Avg SF/Unit Avg Rent (Stabilized) Rent per SF
Studio 47 532 $1,818 $3.42
1x1 119 773 $2,302 $2.98
2x2 51 1,184 $3,419 $2.89
3x3 8 1,535 $4,281 $2.79
Total/Averages 225 843 $2,524 $3.00
Comparables

Lease Comparables

  Wynwood 25 AMLI Midtown Miami Gio Midtown Midtown 5 Comp Averages Mohawk at Wynwood (untrended)
Address 240 NW 25th St 3000 NE 2nd Ave 3131 NE 1st Ave NE 125 NE 32nd St    
Year Built 2019 2020 2020 2017 2019 2025
Units 289 719 447 400 464 225
Average Rental Rate $2,378 $2,668 $2,718 $2,325 $2,561 $2,524
Average SF 772 771 890 915 837 843
Average $/SF $3.08 $3.46 $3.05 $2.54 $3.03 $3.00
             
$ (Studio) $1,737 $2,146 $1,718 $1,609 $1,845 $1,818
SF (Studio) 527 517 386 616 541 532
$/SF (Studio) $3.30 $4.15 $4.45 $2.61 $3.41 $3.42
             
$ (1x1) $2,321 $2,711 $2,275 $2,030 $2,432 $2,302
SF (1x1) 800 784 719 781 766 773
$/SF (1x1) $2.90 $3.46 $3.16 $2.60 $3.17 $2.98
             
$ (2x2) $3,841 $3,050 $3,242 $2,976 $3,194 $3,419
SF (2x2) 1,125 1,045 1,127 1,210 1,124 1,184
$/SF (2x2) $3.41 $2.92 $2.88 $2.46 $2.84 $2.89
             
$ (3x2) $4,114 $4,259 $5,298 $3,908 $4,290 $4,281
SF (3x2) 1,515 1,474 1,711 1,412 1,517 1,535
$/SF (3x2) $2.72 $2.89 $3.10 $2.77 $2.83 $2.79
             
Distance to Subject 0.7 Miles 0.3 Miles 0.2 Miles 0.2 Miles 0.4 Miles  
Notes     Trader Joes anchored      

National Sales Comparables

  8th & Hope Soho Lofts Serenity Apartments Amaray Las Olas Total/Averages Mohawk at Wynwood
Date Dec '18 Mar '19 Jan '19 Jun '17   Jun '26
Market Downtown Los Angeles Jersey City Boston Fort Lauderdale   Wynwood
Year Built 2014 2018 2017 2016 2016 2025
SF 300,000 399,000 244,700 285,329 307,257 215,430
Units 290 377 195 254 279 225
Average SF 1,075 1,187 752 1,123 1,034 843
Sale Price $220,000,000 $263,850,000 $123,250,000 $133,550,000 $185,162,500 $158,478,187
$/Unit $758,621 $699,867 $632,051 $525,787 $654,082 $704,347
$/SF $733.33 $661.28 $503.68 $468.06 $591.59 $735.64
Cap Rate N/A 4.60% 4.11% 4.25% 4.32% 4.50%
Location Information

Market Overview

Despite recent COVID disruptions, many large institutional developers and investors are bullish on Miami. Miami has long been considered the Gateway to Latin America within the U.S. Many overseas companies use the Miami area as their base for U.S. operations. More than 1,200 multinational companies have been lured to the area over the past 25 years, thanks in part to the multilingual workforce. With Florida’s relatively low taxes, including no state income tax, and diverse workforce, Miami-Dade and the region are becoming more attractive to companies seeking year-round sunshine and a lower cost of living. South Florida has become the #4 relocation destination for Americans who have moved during COVID according to FCP.  The South Florida MSA is now ranked as the 7th largest MSA in the United States and has grown by almost 50% in the last 25 years. 

Submarket Overview

The Wynwood submarket is a trendy location that is sandwiched between Midtown Miami and the Design District. Even during the peak of the COVID, Wynwood saw expansion in multiple forms, inclusive of several restaurant openings, Spotify announcing a South Florida HQ location and Trader Joe's agreeing to a lease across the street from this Project. The submarket's central location is just minutes north of downtown Miami and is ideal for artists, residents, creative office users, and small business owners. 

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds   $ Amount $/Unit
Debt   $62,012,000 $275,609
GP Investor Equity   $4,134,075 $18,374
LP Investor Equity   $37,206,671 $165,363
Total Sources of Funds   $103,352,746 $459,346
       
Uses of Funds   $ Amount $/Unit
Purchase Price   $22,330,000 $99,244
Financing Costs(1)   $8,132,200 $36,143
Hard Costs   $62,087,959 $275,946
Soft Costs   $10,802,588 $48,012
Total Uses of Funds   $103,352,746 $459,346

Please note that The Rilea Group's equity contribution may consist of friends and family equity and equity from funds controlled by The Rilea Group. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

(1) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the 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: TBD
  • Term: 4 years
  • LTV: 60.0%
  • Estimated Proceeds: $62,012,000
  • Interest Type: Fixed
  • Annual Interest Rate: 4.50%
  • Interest-Only Period: 60 Months
  • Amortization: 30 Years
  • Prepayment Terms: TBD
  • Extension Requirements: TBD

Modeled Refinance:

  • Lender: TBD
  • Term: 5 Years
  • Estimated Proceeds: $107,532,379
  • Interest Type: Fixed
  • Annual Interest Rate: 3.0%
  • Interest-Only Period: 60 Months
  • 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.

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

Distributions

Investors shall be entitled to the following Preferred Return on its Capital Contributions: from the date of its Initial Capital Contribution until the Project is disposed equal to 8% per annum on its Capital Contributions.  The project will be recapitalized at the end of the pre-development period with construction debt and an additional round of equity.  In the event that land is contributed at a value greater than basis, investors in this initial round of financing will benefit on a pro-rata basis.  There can be no assurance, however,  that there will be an increase in land value.  

The Rilea Group intends to make distributions from RM Mohawk, LLC as follows:

  1. To the Investors, pro-rata, until such time as the Investors shall have received an 8% IRR;
  2. 75.0% to the Members, pro-rata, 25.0% to the Manager, until such time as the Investors shall have received a 15% IRR;
  3. Thereafter, 65.0% to the Investors, pro-rata, 35.0% to the Manager.

In the event that distributions from operating cash flow exceed the preferred returns listed above, Manager will receive a cash flow promote according to the percentages above, as detailed in the Mowyn, LLC agreement.

The Rilea 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 August 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of The Rilea Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5
Effective Gross Revenue   $0 $0 $0 $4,408,508 $9,452,004
Total Operating Expenses   $0 $0 $0 ($1,890,809) ($2,316,241)
Net Operating Income   $0 $0 $0 $2,517,700 $7,135,763
             
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($27,000,000) $0 ($14,340,746) $0 $2,585,445 $97,913,056
             
Investor-Level Cash Flows*
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($10,000,000) $0 $0 $0 $742,331 $21,830,642
             
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 $0 $0 $3,712 $109,153

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

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

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to The Rilea 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
Development Fee   4.0% of Total Development Costs Rilea Group Development Costs
Construction Management Fee   1.0% of Hard Costs Rilea Group Development Costs
           
Recurring Fees:
Type of Fee   Amount of Fee Received By Paid From
Property Management Fee   3.0% of EGI Rilea Group Cash Flow
Administrative Services Fee   1.0% of Equity* RM Admin(3) 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 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 Mohawk, LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

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

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

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

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

Sponsor’s Information Qualified by Investment Documents

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

Risk of Investment

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

No Reliance on Forward-Looking Statements; Sponsor Assumptions

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

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

No Reliance on Past Performance

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

Sponsor’s Use of Debt

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

Sponsor’s Offering is Not Registered

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

No Investment Advice

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

1031 Exchange Risk

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

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