Atlanta is a hotbed for tech, growth, and innovation. Microsoft’s new $75 million project, announced in 2020, will employ 1,500-2,500 workers. The property is 7 minutes from Dobbins Air Force Base and Lockheed Martin, who employ over 7,000 people. The Cumberland Platinum Triangle is 17-minutes away offering over 15 million square feet of ofﬁce and retail space and over 150,000 jobs.
The Marietta submarket is quickly growing with rents rising 5.2% over the past year. The area is also rapidly gentrifying as many older retail units are currently under redevelopment. Average in-place rents at the property are currently 12% below average rents in Marietta.
The previous owners have spent minimal capital upgrading property amenities and many of the units remain unrenovated. There are significant value-add opportunities to improve the building’s exterior appearance including a modern paint job and upgrades to the surrounding landscaping and pool area.
Western Wealth Capital
Western Wealth Capital ("WWC") has developed a proven, reliable system for investing in multi-family properties in key real estate markets across the U.S. WWC offers Investment Partners the opportunity to invest in cash-flowing properties with substantial value-add opportunities. Since its inception, they have successfully completed over $2.9 billion in real estate transactions.https://www.westernwealthcapital.com/
For the past decade, Janet has been focused on creating wealth through well-selected real estate. She has grown her precise business strategy from more than 50 residential transactions in Arizona to the purchase of 95+ multifamily buildings comprised of over 21,000 rental units. Under Janet’s leadership, Western Wealth Capital has grown to over 200 employees and successfully completed over $2.9 billion in real estate transactions.
In 2019, Janet was recognized in Canada’s Top 40 Under 40 for Business and 2019 RBC Canadian Female Entrepreneur of the Year. Janet was also a bronze winner of the International Stevie Awards for Women in Business and awarded the REIN’s Multifamily Investor of the Year.
In 2017, Janet was named Entrepreneur of the Year (Real Estate/Construction/Pacific region) by Ernst & Young. In 2016, Janet was named one of Business in Vancouver’s Forty Under 40 and was awarded the Veuve Clicquot Canadian New Generation Award which recognizes young female entrepreneurs.
Janet holds a Bachelor of Applied Science in Computer Science and Business Administration (Simon Fraser University) and a Project Management Professional designation. Janet is co-author of ‘Real Estate Action 2.0’, released in 2016 by Jurock Publishing Ltd.
Dave Steele is co-founder and General Partner of Western Wealth Capital, a company focused on creating wealth for its clients through well-selected investment real estate. Western Wealth Capital targets cash-flowing properties with exceptional value creation potential in North America’s top investment markets. Over the past seven years, Dave and his team have raised over $700 million in private equity, acquiring over 95 multi-family properties with 21,000 plus rental units and a purchase value of over $2.9 billion.
David is also the CEO of Western Canadian Properties Group, a company that is focused on helping real estate investors acquire investment properties in the hottest real estate markets in Canada and the Western United States.
Western Wealth Capital Track Record(1)
|Currently Under Management:|
|Property||City, State||Asset Type||Acq Date||Units||Purchase Price|
|Southwinds Point||Stockbridge, GA||Multi-family||Jan-19||240||$28,350,000|
|Bridgewater at Mt. Zion||Stockbridge, GA||Multi-family||Oct-18||200||$22,300,000|
|Parc at 1695||Norcross, GA||Multi-family||Jan-20||252||$31,650,000|
|Property||City, State||Asset Type||Acq Date||Units||Purchase Price||Sale Price||Sale/Refi Date|
(1) Representative of a selective track record. The Real Estate Company has transacted on over $2.9B of multifamily properties. They are currently invested in 16,214 units of MF with $2.3B of AUM. Please see their attached portfolio brochure for additional detail.
The above bios and track record were provided by Western Wealth Capital and have not been independently verified by RealtyMogul.
The Business Plan involves increasing the net operating income over a three-year period using Western Wealth Capital’s disciplined and consistent value-add program. The three main drivers to increase the net operating income:
- Normalize rents and bring to market average
- Current owners are operating with the disparity between rents of like-units across the property. Western Wealth Capital intends to reduce that disparity using a proven lease management approach.
- Interior Upgrades
- Western Wealth Capital plans to complete a range of interior upgrades to 125 units and project a $165 per month per unit increase in rental income.
- Washer/Dryer Value-Add Opportunity
- Western Wealth Capital plans to install washers and dryers in 150 units of the 188 units, enabling a projected increase of $50 per unit per month of rental income.
|Interior upgrade (125 Units)||$937,500||$4,987|
|Total Interior Renovation Costs||$1,102,500||$8,574|
|Exterior Renovations||Amount||Per Unit|
|Pool Furniture + Deck||$50,000||$266|
|Exterior Paint - Rails/stairs||$80,000||$426|
|OPTION: Glass railing behind leasing office.||$30,000||$160|
|OPTION: Replace 3 paned windows in leasing office||$10,000||$53|
|Total Exterior Renovation Costs||$843,200||$4,485|
Built in 1987, the Property offers great upside potential with many units in need of upgrading. BelAire is positioned 11 minutes from Interstate 75 linking to downtown Atlanta in 24 minutes. BelAire Apartment Homes has a mix of studio, one, two, and three-bedroom apartments featuring sunrooms, patios, storage rooms, walk-in closets, and keyless building entry. Community amenities at this property feature a clubhouse, swimming pool, fitness center, dog park, playground, grill area, and walking trail.
|Classic||# of Units||Avg SF/Unit||Avg Rent||Avg Rent Stabilized||Rent per SF|
|1x1 (A) - Classic||13||690||960||1,134||$1.39|
|2x2 (A) - Classic||51||1,000||1,113||1,340||$1.11|
|2x2 (B) - Classic||82||1,100||1,134||1,340||$1.03|
|3x2 (A) - Classic||4||1,285||1,324||1,594||$1.03|
|Renovated||# of Units||Avg SF/Unit||Avg Rent||Avg Rent Stabilized||Rent per SF|
|0x1 (A) - 2020 Built||12||585||1,109||1,309||$1.90|
|0x1 (A) - 2020 Built||6||680||1,113||1,409||$1.64|
|1x1 (B) - Renovated||3||690||1,155||1,358||$1.67|
|2x2 (A) - Renovated||5||1,000||1,266||1,516||$1.27|
|2x2 (B) - Renovated||6||1,100||1,364||1,587||$1.24|
|3x2 (A) - Renovated||6||1,285||1,458||1,754||$1.13|
|The Bentley at Marietta||Magnolia at Whitlock||Wood Pointe||1250 West||Trellis Apartments||Comp Averages||BelAire Apartments|
|Average Rental Rate||$1,315||$1,297||$1,396||$1,437||$1,449||$1,414||$1,181|
|# Units (0x1)||18|
|# Units (1x1)||64||32||87||188||93||16|
|# Units (2x2)||58||96||67||222||166||122||144|
|# Units (3x2)||24||24||58||44||38||10|
|2330 Cobb||Vinings Palisades||The Everette at East Cobb||SoCo Apartments||Crest at East Cobb||Wildwood Ridge||Total/Averages||BelAire Apartments|
|Date||Under Contract||Under Contract||February 1, 2021||December 1, 2020||November 1, 2020||October 1, 2020||Jul '24|
|Distance from Subject (mi.)||6.6 miles||9.5 miles||4.8 miles||7.1 miles||5.3 miles||8.4 Miles||8.4 Miles|
Atlanta was the fourth fastest-growing metro area in the U.S. between 2010 and 2019 and rents in the city continue to rise at an impressive annual rate of 3.5%. The city is already home to more than a dozen Fortune 500 companies including Coca-Cola, Chick-ﬁl-A, and The Home Depot. Microsoft’s new $75 million project, announced in 2020, will employ 1,500-2,500 workers. Airbnb has chosen Atlanta for its new East Coast tech hub, employing roughly 300 people. Atlanta’s industrial market has seen strong leasing activity over the past year and Amazon is leading the way with 6.0 million square feet of industrial space leased in 2020 alone.
The Marietta submarket is quickly growing with rents rising 5.2% over the past year. The area is also rapidly gentrifying as many older retail units are currently under redevelopment. Major employers in the area include Dobbins Air Force Base and Lockheed Martin, who together employ over 7,000 people. The submarket neighbors "The Platinum Triangel" offering over 15 million square feet of ofﬁce and retail space and over 150,000 jobs.
|Sources of Funds||$ Amount||$/Unit|
|GP Investor Equity||$250,000||$1,330|
|LP Investor Equity||$10,840,000||$57,659|
|Total Sources of Funds||$40,590,000||$215,904|
|Uses of Funds||$ Amount||$/Unit|
|General Partner Fees(1)||$1,021,000||$5,431|
|Legal & Closing Costs(2)||$927,825||$4,935|
|Total Uses of Funds||$40,590,000||$215,904|
The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(1) General Partner Fees are inclusive of the Real Estate Company's acquisition fee and mortgage guarantee fee.
(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: Greystone
- Base Term: 3 Years
- Extensions: 2 Years
- Loan-to-Value: 81.3%
- Estimated Proceeds: $29,500,000
- Interest Type: Floating
- Spread: LIBOR + 295 with LIBOR floor of 0.25%
- Interest-Only Period: 5 Years
- Amortization: Interest Only
- Prepayment Terms: 75bps after 6 months
- Exit Fee: 75bps
- Extension Fees: 25bps
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.
Western Wealth Capital intends to make distributions from RM LXIII, LP as follows:
- To the Investors, pari passu, until a full return of LP capital;
- 65% / 35% (65% to Investors / 35% to Promote) of excess cash flow thereafter.
Western Wealth 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 November 2021 and are projected to continue on an annual basis thereafter. Distributions are at the discretion of Western Wealth Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves.
|Cash Flow Summary|
|Year 1||Year 2||Year 3|
|Effective Gross Revenue||$2,787,527||$3,146,974||$3,495,296|
|Total Operating Expenses||$1,162,387||$1,396,861||$1,431,850|
|Net Operating Income||$1,625,387||$1,750,113||$2,063,447|
|Project-Level Cash Flows(1)(2)|
|Year 0||Year 1||Year 2||Year 3|
|Net Cash Flow||-$11,090,000||$452,395||$569,932||$15,909,248|
|Investor-Level Cash Flows(1)(2)|
|Year 0||Year 1||Year 2||Year 3|
|Net Cash Flow||-$3,000,000||$122,379||$154,175||$4,303,674|
|Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)(2)|
|Year 0||Year 1||Year 2||Year 3|
|Net Cash Flow||-$50,000||$2,040||$2,570||$71,728|
(1) The Real Estate Company reserves the right to distribute 80% of net cash flow to Investors with the remaining 20% to be held back as working capital and redistributed at the end of the hold period.
(2) 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 Western Wealth Capital's materials for details. The following fees and compensation will be paid(1)(2)(3):
|Type of Fee||Amount of Fee||Received By||Paid From|
|Acquisition Fee||Up to 2.0% of Purchase Price||Western Wealth||Partnership at Close|
|Disposition Fee||1.0% of Disposition Sales Price||Western Wealth||Partnership at Sale|
|Mortgage Guarantee Fee||1.0% of Mortgage||Western Wealth||Partnership at Close|
|Construction Management Fee||5.0% of Interior Rehab Costs||Western Wealth||CapEx Budget|
|Type of Fee||Amount of Fee||Received By||Paid From|
|Property Management Fee||3.0% of EGI||Western Wealth Property Manager||Cash Flow|
|Asset Management Fee||2.0% of EGI||Western Wealth||Cash Flow|
|Administrative Services Fee||1.0% of Equity(4)||RM Admin(3)||Cash Flow|
(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) Only applies to equity raised through the RealtyMogul Platform
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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