Staff Menu (IO ID#: 1626406):
EDIT IO DOCUMENTS
Funded
Multifamily
Trails at 2112
Modesto, CA
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
Add to Watchlist
100% funded
Offered By Valiance Capital
16.0%* TARGET IRR 15.0%-17.0%
11.6%* TARGET AVG CASH ON CASH
1.96X* TARGET EQUITY MULTIPLE
Estimated Hold Period 8 Years
Estimated First Distribution 2/2022
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Project Webinar
View The Webinar
Project Summary
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
Explore this Project
Overview
Trails at 2112 is a value-add repositioning of a 97-unit, garden-style suburban apartment community located 90 minutes from the San Francisco Bay Area in the heart of the California Central Valley in Modesto.
Risk Adjusted Returns

Trails at 2112 offers a significant return profile relative to the risks of the investment. Since acquiring the Property in January 2021, the Sponsor has fully renovated approximately 50% of the units.  Construction risk continues to drive down every month as they complete 10-12 renovations each month with a targeted completion date of December 2021.  Although the Property is subject to California rent control regulations, the tenancy risk continues to decline with the successful execution of the tenancy relocation plan. Over 90% of tenants have already accepted the transfer/renewal program. Market risk is diminishing as the Sponsor has successfully been able to achieve market rents that have surpassed their original proforma rents. 

Market

The Project has been a benefactor in the flight to affordability. Multifamily demand in the Modesto MSA has statistically proven to be resilient, market tested against both the ‘08 Great Financial Crisis and the COVID-19 Pandemic, with strong market dynamics due to an increasing desire for affordability in California housing. The submarket has been a benefactor of the current flight to suburbia, a strong workforce grounded in essential services, strong occupancy & collections, and overall strong market fundamentals.

Severe Supply Constraint

The Property offers a mid-level luxury apartment product which represents just 5% of the current housing stocking in Modesto.  The Property provides a highly desirable product that focuses on the unmet demand in the marketplace. A limited supply of new product and future delivery projections support the expectation for continued high occupancies and rent increases. During the past 12 months, absorption outpaced deliveries in Modesto. Only 100 new units were delivered (161 were absorbed). Aside from the new 100 units, there has not been any new construction of market-rate multifamily housing over the past 10 years. Furthermore, according to the Building Permits Survey (US Census), as of September 2020, year-to-date, there were no multifamily building (3+ units) permits pulled in Modesto.  

Property At A Glance
# of Units 97
# of Buildings 12
Year Built 1985
Current Occupancy 92%
Parking Ratio 1.97 Per Unit
Acquisition Price

$17,550,000

Investment Highlights
The Property is a premium suburban garden-style apartment community with spacious units and amenities spread across 12 buildings and over 5.32 acres.
Having acquired the Property in Jan 2021, the Sponsor has already executed nearly 50% (47 units) of its renovation plan and is expected to complete it ahead of schedule by Dec 2021.
The Sponsor is already proving the business plan by surpassing proforma market rents by nearly 14% to date and continues to trend upward.
The Property was acquired substantially below replacement costs.
Investors have the unique opportunity to invest at the same price as January 2021 with no mark-up.
Management
Cumulative Distributions

Valiance Capital

From the discovery and acquisition of dislocated market opportunities in high-demand, high-growth areas, to aesthetic upscale renovations and hospitality-driven property management; there’s a lot that goes into Valiance Capital's proven approach to multifamily real estate investing. To put it plainly, they seek to add value at every step of the investing process, no matter how seemingly insignificant the opportunity. This is what makes their properties so attractive to their residents, and in the end, what’s good for their residents is good for their business.

With a single-minded focus on achieving high risk-adjusted returns, Valiance Capital has engineered a vertically integrated approach to real estate investing through their family of companies: Valiance Capital, Bruno Construction, Inc., and The Berkeley Group. This synergy allows them to efficiently capitalize on undervalued opportunities in rapidly expanding, supply-constrained markets with highly-educated and highly-paid populations. Ultimately, their capital partners and stakeholders benefit from this exceptional efficiency, accelerating and amplifying their returns.

https://valiancecap.com/
  • Nhan Nguyen Le
    Managing Principal
  • Winston Lee
    Principal
Nhan Nguyen Le
Managing Principal

Mr. Nhan Nguyen Le is the CEO and Managing Principal of Valiance Capital, a commercial real estate private equity firm focusing on Student Housing and Multifamily assets. He leads the firm’s strategic vision, planning, investment decisions, and manages all aspects of the firm’s operations. With over 12 years of real estate investment experience and a track record of 30 principal-sponsored, value-add, and opportunistic transactions, he has grown a current portfolio of operating assets to a market value in excess of $180 million.

Throughout his career, Mr. Nguyen Le has actively participated as a principal sponsor or general partner and has built several operating companies and successful investment portfolios. Prior to Valiance, Mr. Nguyen Le was a co-founder and managing partner of Tesseract Capital Group, a commercial real estate private equity company. He is also the founder and key principal of The Berkeley Group, a real estate property management company specializing in Student Housing and Multifamily rental properties. Mr. Nguyen Le holds a California real estate license, Certified Commercial Investment Member (CCIM) designation, and LEED Green certification.

Winston Lee
Principal

Mr. Winston Lee is a Principal at Valiance and brings over 16 years of real estate development and structured finance experience to the team. Having closed over $650MM in transactions, from debt placements, equity capital raises, and JV equity structures, Mr. Lee brings a multi-faceted depth of experience in support of the firm’s strategy, investment decisions, construction management, operations, and the overall execution of our opportunistic investments.

Prior to joining Valiance, Mr. Lee started his career on the principal and lender side of the business, where he brings extensive acquisition and development experience in retail, multi-family, and office properties while working for a privately held boutique real estate firm. His entrepreneurial experience includes being a senior member on a 21-acre mixed-use development in Riverside, CA, a repositioned shopping center in Palmdale, CA, and 139-units of ground-up luxury apartments across 4-projects in Los Angeles, CA

On the lender side, Mr. Lee served as a Corporate Banking Officer for Comerica Bank in their Real Estate Group, where he financed construction and land development loans for many of LA’s largest real estate developers. In addition to his real estate experience, Mr. Lee was a successful start-up founder of a consumer product and brand where he grew annual sales to $2.5MM and gained distribution into over 1,000 stores including, Costco, Target, and Whole Foods. Mr. Lee’s unique background adds a valuable perspective to the team and is a positive influence on our company principles and culture.

Mr. Lee earned a Bachelor of Arts in Economics from the University of California, Los Angeles (UCLA), and a Master of Real Estate Development (MRED) from the University of Southern California (USC). He also holds a California real estate license. Mr. Lee currently resides in Oakland, CA.

Track Record

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

Business Plan

Thesis:

Trails at 2112 is a 1980’s vintage property with significant upside potential to capture unmet demand in the mid-level luxury category. Out of ~15,000 available housing units, only 100 new apartments were delivered in the last 10 years. Higher-end product is virtually nonexistent, and roughly 95% of the inventory is 1,2 & 3-star product. Further, the market is benefiting from a flight to affordability, and while there is land available to develop, the cost to construct new housing has proven to be difficult to pencil, thereby limiting new supply even more.  Market demand is strong. Vacancy has remained low, and rents have been rising even through COVID-19.

Opportunity:

The Sponsor's strategy is to reposition the entire Property to provide a highly desirable product that can command market rents that are 31.4% higher than current levels. Capital investment will be deployed to rebrand the Property with enhancements to the curb appeal, existing amenities, and the installation of new amenities. The exterior upgrades will also coincide with a full interior renovation of all 97 units. The finishes will be superior compared to nearby communities, and key interior scope items will include:

  • New LVP Flooring
  • Recessed Lighting
  • New Quartz Countertops
  • New Vanities and Refinished Cabinets
  • New Bathroom & Kitchen finishes
  • New Stainless-Steel Appliances

Since the Sponsor's acquisition in January 2021, nearly 50% of the renovations have been completed, and the expected stabilization timeline has been cut in half, down from 24 months to now only 11 months.  To date, all residents except for one have accepted to relocate, renew, or transfer within the Property, thereby solidifying the execution plan. The market has continued to show positive trends, and the Project is achieving rents above proforma with units leasing within one week of it being advertised.

The Sponsor intends to optimize a tax strategy called Cost Segregation to immediately accelerate the depreciation of the building and once stabilized, will accelerate depreciation of the Sponsor's capital expenditure. Based on an initial analysis, the cost segregation is expected to return $1.05 in tax shelter losses for every $1.00 invested.

Furthermore, through the increase in rental income upon stabilization, the Sponsor expects to execute an additional 59.8% cash-out refinance distribution in Year 2 through a supplemental loan with Fannie Mae, thereby returning a significant 63.5% cumulative return of original equity back to the Partnership over 2 years.

Summary:

In summary, an investment in Trails at 2112 represents a fantastic opportunity to generate a high cash on cash return of 11.6%, a 63.5% return of original equity over the first two years, and a stable cash flow generating investment return of 16.0% IRR over the proposed 8-year hold period. Given that the acquisition cost is significantly below replacement cost, there is a healthy margin of safety with a high return profile relative to the risks.  Even the Sponsor's Year 8 exit price is below today’s replacement cost, which further supports their compelling investment thesis.  

CapEx Breakdown

Hard Costs      
Exterior Amount Per Unit Per SQFT
Branding & Signage $10,000 $103 $0.12
Security Gate Entrance System $25,000 $258 $0.29
WIFI Fiber Optics System $134,370 $1,385 $1.58
Security Cameras $10,000 $103 $0.12
Amazon Locker $17,150 $177 $0.20
Dog Park $22,960 $237 $0.27
BBQ Patio Areas  $10,000 $103 $0.12
Gym Renovation $16,744 $173 $0.20
Pool Area Improvements $24,000 $247 $0.28
Community Mural $7,500 $77 $0.09
Landscaping & Hardscape $49,650 $512 $0.58
Exterior Painting $38,800 $400 $0.46
Asphalt Repairs $25,000 $258 $0.29
Tree Trimming $15,000 $155 $0.18
Stair Repairs $1,500 $15 $0.02
Concrete Repairs $10,000 $103 $0.12
Exterior Lighting $12,000 $124 $0.14
Contingency $41,236 $425 $0.49
Exterior Total $470,910 $4,855 $5.54
       
Interior Amount Per Unit Per SQFT
1x1 Renovated Units $442,746 $4,564 $5.21
2x2 Renovated Units, Open Concept $1,347,146 $13,888 $15.86
Non-Renovated 2x2 $175,794 $1,812 $2.07
Total Interior $1,965,687 $20,265 $23.14
       
Total Hard Costs $2,436,597 $25,120 $28.68
       
Soft Costs Amount Per Unit Per SQFT
City Permit Fees $7,000 $72 $0.08
Marketing, Staging, Photography $15,000 $155 $0.18
Operational Costs $9,874 $102 $0.12
Tenant Buyouts $25,000 $258 $0.29
Engineering $9,900 $102 $0.12
General Goods $5,000 $52 $0.06
Onsite Storage $2,478 $26 $0.03
Soft Cost Contingency $3,200 $33 $0.04
Construction Fee $125,702 $1,296 $1.48
Total Soft Costs $203,154 $2,094 $2.39
       
Grand Total $2,639,751 $27,214 $31.08

 

Property

Property Details

Built in 1985, Trails is a two-story garden style apartment community spread across 12 residential buildings on 5.32 acres.  Designed with a great unit mix of spacious one-bedroom and two-bedroom floor plans, the Sponsor sees an opportunity in the market to renovate and deliver superior upgrades to capture unmet demand in the mid-level luxury category of apartment homes. Secured to purchase at $17,750,000—a price below replacement cost, Trails at 2112 represents an opportunity to generate a high cash on cash return of 11.6%, a 63.5% return of original equity within the first 2 years, and a stable cash flow generating investment return of a 16.0% IRR over the proposed 8-year hold period.

Unit Type # of Units Avg SF/Unit Avg Rent
(In-Place)
Avg Rent
(Stabilized)
Rent per SF
Studio 1 550 $1,015 $1,400 $2.55
1x1 28 707 $1,253 $1,650 $2.33
2x2 68 950 $1,419 $1,850 $1.95
Total/Averages 97 876 $1,265 $1,674 $1.91
Comparables

Lease Comparables

  Allure at 2920 Brooks Landing The Marc at 1600 Summerview Apartments Live Oak* The Villas at Villagio* Trails at 2112
Address 2920 Healthcare Way 3055 Floyd Ave 1600 Standiford Ave 3601 Prescott Rd 1900 Oakdale Rd 2920 Floyd Ave  
Year Built 2020 2005 1989 1988 1988 2009 1985
Units 100 231 100 136 328 240 97
Average Rental Rate $1,931 $1,901 $1,860 $1,835 $1,648 $1,726 $1,792
Average SF 725 977 799 813 761 774 825
Average $/SF $2.66   $1.95   $2.33   $2.26   $2.17   $2.23 $2.17
               
# Units (1x1) 48 67 50 68 160 72 28
$ (1x1) $1,795 $1,846 $1,775 $1,725 $1,489 $1,595 $1,650
SF (1x1) 679 786 682 700 680 707 550
$/SF (1x1) $2.64   $2.35   $2.60   $2.46   $2.19   $2.26 $3.00
               
# Units (2x2) 40 164 50 68 168 136 68
$ (2x2) $2,095 $1,924 $1,945 $1,945 $1,799 $1,795 $1,850
SF (2x2) 997 1,055 915 925 838 992 950
$/SF (2x2) $2.10 $1.82 $2.13 $2.10 $2.15 $1.81 $1.95
               
Distance to Subject 5.3 miles 1.2 miles 3.5 miles 4.1 miles 0.5 miles 0.9 miles  
Notes         *Unrenovated Property *Unrenovated Property  

Acquisition Comparables

  The Edge at Lakewood Sedona Park Lakewood The Marc at 1600 Summerview Apartments Cameron Villa Chardonnay Ridge Trails at 2112
Date Apr '21 Jan '19 Dec '20 Feb '20 Apr '20 Feb '19 Jun '19 Jan '21
Submarket East Stanislaus East Stanislaus East Stanislaus East Stanislaus East Stanislaus East Stanislaus East Stanislaus East Stanislaus
Year Built 1985 1987 1985 1989 1988 1977 1979 1985
SF 153,328 43,176 97,180 79,982 115,752 61,200 85,900 84,946
Units 196 42 116 100 136 68 116 97
Average SF 782 1,028 838 800 851 900 741 825
Sale Price $33,300,000 $7,950,000 $20,880,000 $16,500,000 $22,191,250 $10,250,000 $16,500,000 $17,550,000
$/Unit $169,898 $189,286 $180,000 $165,000 $163,171 $150,735 $142,241 $180,928
$/SF $217 $184 $215 $206 $192 $167 $192 $207
Cap Rate 5.77% 5.79% 6.07% 5.16% 5.16% 4.00% 6.76% 6.18%
Distance from Subject (mi.) 2.0 Miles 4.8 Miles 1.4 Miles 3.5 Miles 4.1 Miles 1.8 Miles 0.9 Miles  

Please refer to the Project Summary in the Documents section for more details on comparables.

 

Location

Market Overview

Central California is home to some of the most productive agricultural land in the country and produces nearly 25% of the nation's food supply. At an estimated production value of $17 billion per year, the region and local economy has been built around this core industry, and its continued production is what drives local jobs and employment, located just 20 minutes from Modesto.

Beginning in early May 2020, California permitted certain essential businesses to begin reopening. Modesto’s essential job employment sectors benefited from this and are the reason why Modesto is experiencing positive trends in high rent collections, increasing rents, and extremely low vacancy. Additionally, there is news that Amazon is opening a major fulfillment center of over 1.0 million square feet that will employ 1,000 workers in the neighboring city of Turlock, located just 20 minutes from Modesto.

Submarket Overview

The average Modesto multifamily rents are meaningfully lower than high cost urban cities of the San Francisco Bay Area, whose rents are 2.1x Modesto rents. Due to the pandemic, many sectors have transitioned to remote work, accelerating outflow from high rent centers like San Francisco and inflow to low rent centers like Modesto. This trend is evidenced by high vacancy rates in high rent centers like San Francisco (10.0%) and low vacancy rates in low-cost centers like Modesto (2.0%) during the pandemic. In Q4 2020, the submarket saw a 5.0% increase in market rents. In Q1 2021, the submarket saw an additional 5.7% increase in market rents. 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $13,065,000 $134,691
GP Investor Equity $1,850,000 $19,072
LP Investor Equity $5,850,000 $60,309
Total Sources of Funds $20,765,000 $214,072
     
Uses of Funds $ Amount $/Unit
Purchase Price $17,550,000 $180,928
Closing Costs(1) $499,908 $5,154
Interest & Cash Reserves $75,341 $777
Soft Costs $203,154 $2,094
Hard Costs $2,436,597 $25,120
Total Uses of Funds $20,765,000 $214,072

The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

(1) 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. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Fannie Mae
  • Term: 144 Months
  • Loan to Value: 62.9%
  • Estimated Proceeds: $13,065,000
  • Interest Type: Fixed
  • Annual Interest Rate: 4.42%
  • Interest-Only Period: 34 Months
  • Amortization: 30 Years
  • Prepayment Terms: YM through 4/30/2029
  • Extension Requirements: None

Supplemental Loan:

  • Lender: Fannie Mae
  • Term: Coterminous
  • Estimated Proceeds: $5,177,663
  • Interest Type: Fixed
  • Annual Interest Rate: 4.59%
  • Interest-Only Period: 0 Months
  • Amortization: 30 Years

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.

Distributions

Valiance Capital intends to make distributions from RM 2112 Trails LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
  2. 80% / 20% (80% to Investors / 20% to Promote) of excess cash flow to a 15% preferred return; 
  3. 65% / 35% (65% to Investors / 35% to Promote) of excess cash flow to a 20% preferred return; 
  4. 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter. 

Valiance 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 February 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Valiance Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves. Valiance Capital will receive a promote as indicated above, and a portion of this promote may be received by RM Admin, LLC for administrative services.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Effective Gross Revenue   $1,599,782 $1,989,627 $2,132,456 $2,191,582 $2,252,349 $2,314,801 $2,378,987 $2,238,569
Total Operating Expenses   $598,077 $624,330 $633,005 $646,118 $659,506 $673,175 $687,130 $642,246
Net Operating Income   $1,001,705 $1,365,297 $1,499,451 $1,545,464 $1,592,843 $1,641,627 $1,691,857 $1,596,323
                   
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Net Cash Flow ($7,700,000) $283,431 $4,919,715 $327,878 $282,415 $324,115 $369,253 $415,754 $10,521,593
 
Investor-Level Cash Flows*
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Net Cash Flow ($3,000,000) $18,793 $1,886,772 $97,745 $80,032 $96,279 $113,865 $131,982 $3,514,198
 
Investor-Level Cash Flows - Hypothetical $50,000 Investment*
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Net Cash Flow ($50,000) $313 $31,446 $1,629 $1,334 $1,605 $1,898 $2,200 $58,570

*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. 

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Valiance 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
Completion Distribution 2.00% of Stabilized Appraised Value Valiance Capital Refinance Proceeds  
Construction Management Fee 5.00% of Total CapEx  Bruno Construction Partnership Affiliate to Valiance Capital
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management^ 2.25% of EGI Valiance Capital Partnership  
Administrative Services Fee 1% of Equity* RM Admin(3) RM Distributions  

*Only applies to equity raised through the RealtyMogul Platform

^Asset management fee is 5% of EGI, however, property management fee (2.75% of EGI) must be paid from asset management fee. Asset management is projected at 2.25% of EGI for illustrative purposes.

An acquisition fee of 1.75% of the purchase price was paid to Sponsor in January 2021, which is capitalized in the transaction. 

(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.

Disclaimers/FAQs
Disclaimers

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.

INVEST TODAY

Questions?

(877) 781-7062

Contact Investor Relations
Join RealtyMogul
Gain access to commercial real estate deals across the country
Easily review, compare and invest in deals that meet your criteria
Build the real estate portfolio that’s right for you
Potential benefits include diversification, growth and passive income
ARE YOU AN ACCREDITED INVESTOR?
Password should be at least 8 characters, contain an uppercase character, a lowercase character, a number and a symbol.
Sign In
Don’t have an account yet? Join RealtyMogul
Please enter your email and password below.

Forgot Password?

Forgot Password
Enter your email address to receive a code to reset your password.
Enter the code sent to your email address below and your new password.

Resend Code