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Funded
Multifamily
Woods of Ridgmar
Fort Worth, TX
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By Park Ave Capital
16.2%* TARGET IRR 15.2%-17.2%
9.4%* TARGET AVG CASH ON CASH
2.4X* TARGET EQUITY MULTIPLE
Estimated Hold Period 10 Years
Estimated First Distribution 6/2022
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Explore this Project
Overview
Woods of Ridgmar is a 235-unit, garden-style community located in Fort Worth, Texas with value-add potential.
Market

Dallas - Fort Worth (DFW) continues to outperform other large MSA's in job production. The area supports over 3.8 million workers and added more than 310,000 jobs over the past three years. In 2020, Dallas ranked first in the country in annual job growth at 3.1%.

Solar

Park Ave Capital is one of the most knowledgeable solar energy sponsors in the multifamily value-add market. They target master-metered electric properties to offset up to 100% of a property's electricity consumption with solar. Through this approach, they seek to increase NOI from the revenue side from traditional value add as well as the cost side with energy savings. 

Value-Add

The previous owners only upgraded 75 of the 235 units. There is potential upside in renovating the remaining 160 units and amenities, such as the laundry rooms, leasing office, and pools. 

Property At A Glance
# of Units 235
# of Buildings 35
Year Built 1969
Current Occupancy 91%
Parking Spots 250 (212 uncovered, 38 covered)
Acquisition Price

$23,875,000

Investment Highlights
The Sponsor is under contract to purchase an off-market 235-unit property for $23,875,000, representing an acquisition cap rate of 5.0%.
The Sponsor plans to capitalize on value-add opportunities such as unit renovations, exterior renovations, full-scale solar PV installation, and water efficiency upgrades.
There is a 11% projected cash-on-cash return in Year 1 which takes into account solar cash incentives.
Park Ave Capital is partnering with ZNE Capital to acquire the Property and add rooftop solar energy so the Property's electricity operating costs are greatly decreased or eliminated.
Management
Cumulative Distributions

Park Ave Capital

Park Ave Capital is a Midwest private investment firm with over 1,400 units and $100M of assets under management. They are a privately held investment company focused on the acquisition and management of value-add acquisitions. They seek to acquire income-producing assets for investors to meet their objectives of cash flow and equity growth. Over the last 10 years, they have successfully implemented their value-add business model and refinanced 100%+ of equity out of all 44 deals.

Park Ave Capital is partnering with ZNE Capital to acquire existing apartment buildings and add rooftop solar energy so the properties' electricity operating costs are greatly decreased or eliminated. ZNE will lead solar installation efforts at the Property to effectuate the sustainable energy initiative. 

https://parkaveinvesting.com/

https://www.znecapital.com/

  • Chris Pomerleau
    Co-Founder & Director of Investment Strategy
  • Owen Barrett
    Founder & President
  • Nico Suazo
    VP Construction Management
  • Collin Schwartz
    Co-Founder & Director of Operations
  • Grant Bowman
    VP Capital Markets
  • Joel Cesare
    VP Investor Relations
  • Earl Mohler
    VP Solar
  • Stephen Sykes
    Director of Acquisitions & Development
Chris Pomerleau
Co-Founder & Director of Investment Strategy

Chris is the Co-Founder of Park Ave Capital, a real estate investment firm with over 1,400 apartment units and $100M+ assets under management across 6 states. Chris has been investing in real estate since 2013, where his value-add business plan approach has proven successful in al 43 investments he has led. 

Owen Barrett
Founder & President

Over the past decade, Owen has implemented $35 million of energy projects, including solar PV, fuel cells, LED lighting, and HVAC improvements. His projects save 29.9 GWh annually. Owen is a serial entrepreneur and his first company hit eight figures in revenue in 18 months. Owen earned his BS in Finance from Bentley University and his MS in Environmental Science and Management from the Bren School at UCSB. Owen is a Certified Energy Manager by the Association of Energy Engineers. 

Nico Suazo
VP Construction Management

Nicolas has a 20-year career in commercial real estate, construction and project management, and developing and constructing an unprecedented portfolio of real estate and solar assets. Nico is the Founder of Platinum Commercial Solar, a C&I development and consulting firm with Fortune 500 clients for the deployment of solar capital, development, and EPC process concept to commercial operation.

Collin Schwartz
Co-Founder & Director of Operations

Collin is a full-time real estate investor and owner of Bricktown Management, a property management company located in Omaha, Nebraska. Collin is also the Co-Founder of Park Ave Capital, which has 1,200 apartment units (worth $100 million) under management. 

Grant Bowman
VP Capital Markets

In the sustainability community, Grant was an energy efficiency consultant at McKinstry, advising private and public sector clients on portfolio building retrofits utilizing grants and tax incentives to significantly reduce project costs. He also served in the Peace Corps in West Africa developing a successful ecotourism business. 

Joel Cesare
VP Investor Relations

Joel is an award-winning visionary recognized for executing some of the world's greenest real estate projects. As a development executive for the city of Santa Monica, he successfully built an $80M City Hall that is widely considered one of the world's most innovative buildings. In 2018, Engineering News Record Magazine named Joel a Top 25 Newsmaker. Building Design & Construction Magazine named Joel to its 2017 40 Under 40 list. 

Earl Mohler
VP Solar

Earl is a second generation design/build electrical contractor. In 2011, Earl started Mohler Electric and became a C-10 electrical contractor. The following year, Earl added a C-46 solar contractor classification to his license and became CALCTP certified in energy-efficient lighting and lighting controls. Earl has managed the installation of megawatts of solar across museums, schools, commercial buildings, apartments, and mobile home parks.

Stephen Sykes
Director of Acquisitions & Development

Stephen has acquired positions in multiple projects across the Midwest and holds real estate Broker's licenses in Nebraska, South Dakota, and Iowa. In his role at Park Ave Capital, Stephen focuses on acquiring and operating multifamily projects that create near-term and long-term wealth for his partners and clients.

Track Record

Consolidated Track Record

Apartment
Complex
Units Location Year Built Purchase
Price
Purchase date Current
Value
Refinance
Date
% of Capital
Returned
Omaha Portfolio 766 Omaha, NE 1950s - 1990s 38,049,400 July-19 $56,385,000 Sep-21 131%
Hickman Flats 203 Des Moines, IA 1973 8,729,000 June-21 $8,729,000 still in business plan  
Maples Park 76 Sioux Falls, SD 1990s - 2000s 5,800,000 September-20 $7,500,000 still in business plan  
Preserve 72 Sioux Falls, SD 1983 5,812,000 December-20 $6,400,000 still in business plan  
Lincoln Portfolio 99 Lincoln, NE 1960s - 1980s 6,150,000 June-21 $6,350,000 still in business plan  
Tall Oaks 52 Kansas City, MO 1986 4,110,000 February-21 $5,320,000 still in business plan  
Heston Pointe 64 Tulsa, OK 1980 3,300,000 December-20 $3,600,000 still in business plan  
Council Bluffs Portfolio 14 Council Bluffs, IA 1978 794,000 April-16 $1,390,000 Dec-21 102%
Total 1,346     $72,744,400   $95,674,000    

*Portfolios reflect average refinance date and % of capital returned.

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

Business Plan

Woods of Ridgmar has recently undergone renovations on a substantial amount of deferred maintenance items and the Sponsor has an opportunity to renovate 160 units.  Additionally, the Property is master metered and positioned well for a 556 kW solar PV installation. This presents an opportunity for the Sponsor to create value appreciation by stabilizing the rental revenues on upgraded units and reducing expenses at the Property.

The desirable unit mix features five floor plans ranging from 402 square feet to a spacious 1,420 square feet. The two- and three-bedroom units account for 33% of the total and generate considerably higher rental rates than the one-bedroom units.

The Sponsor's business plan involves increasing net operating income (NOI) and reducing operating expenses over a four-year period. The three main drivers to increase NOI are: 

  1. Renovate 160 of the 235 units and increase rents by $45/month; 
  2. Renovate the exterior of the Property including a full paint job, landscaping, and upgrading amenities like pools and laundry rooms resulting in the normalization of rents and bringing them to market average;
  3. Execute on a variety of environmental initiatives such as a 556 kW rooftop solar PV installation, window replacements, and water-saving programs instituting cost savings on utilities. The solar PV project is eligible for a ~ $260k federal tax credit and a $250k cash incentive from Oncor Energy.

CapEx Breakdown

Exterior Renovations $ Amount  Per Unit Per SQFT
Replace Zinsco Panels $166,752 $710 $0.80
Curb Appeal $237,091 $1,009 $1.13
Laundry room improvements $19,754 $84 $0.09
Leasing office improvements $46,093 $196 $0.22
Landscaping $47,500 $202 $0.23
Window Replacements $223,250 $950 $1.07
Metal rails $72,126 $307 $0.35
(4) Smart Valves $57,000 $243 $0.27
Exterior site lighting $46,465 $198 $0.22
Solar (558.9 kW roof mount) $955,719 $4,067 $4.57
HVAC Upgrades $111,625 $475 $0.53
Courtyard (Pool) Upgrades $47,500 $202 $0.23
Smart Apartment $111,625 $475 $0.53
Contingency $214,250 $912 $1.03
Construction Management Fee $107,125 $456 $0.51
Total Exterior Renovations $2,463,875 $10,485 $11.79
       
Interior Renovations $ Amount  Per Unit Per SQFT
Vinyl $387,399 $1,649 $1.85
Carpet $129,133 $550 $0.62
Appliances  $516,532 $2,198 $2.47
Paint $142,046 $604 $0.68
Hardware $64,566 $275 $0.31
Faucets $64,566 $275 $0.31
Backsplash $103,306 $440 $0.49
Staging $38,740 $165 $0.19
Cabinets $258,266 $1,099 $1.24
Total Interior Renovations $1,704,555 $7,253 $8.16
       
Total Capital Improvements Budget  $4,168,430 $17,738 $19.94
Property
Property Details

Built in 1969, Woods of Ridgmar offers upside potential with many units in need of upgrading. This 235-unit property, located in one of America's  fastest growing MSA's, is a combination of traditional value-add concepts combined with a large solar PV installation and energy/water efficiency upgrades. NOI growth should be the result of unit renovations and rent increases and significant decreases in energy and water costs. 

Unit Mix

Unit # of Units Avg SF/Unit Avg Rent
(In-Place)
Avg Rent (renovated) Post-reno rent per SF
Studio 4 417 $705 $775 $1.86
1B/1BA 152 773 $804 $908 $1.17
2B/2BA 32 1,069 $1,035 $1,115 $1.04
2B/2.5BA 38 1,130 $1,074 $1,194 $1.06
3B/3BA 9 1,418 $1,358 $1,375 $0.97
Total/Averages 235 890 $899 $998 $1.12
Comparables

Lease Comparables

  Valley View Apartments Park Villas Xander Westridge The Cassidy at Western Hills Averages Subject
Year Built 1966 1970 1965 1977 1979 1971 1969
# of Units 149 282 332 176 398 267 235
Average Rental Rate 971 891 1,098 932 990 976 998
Average Unit Size 1,167/SF 896/SF 961/SF 795/SF 956/SF 955/SF 890/SF
Average $/SF $0.83 $0.99 $1.14 $1.17 $1.04 $1.04 $1.12
Distance from subject 2.0 mi 0.3 mi 0.4 mi 2.0 mi 3.0 mi 1.2 mi  
                 
$/Unit (Studio)     $800   $800 $775
SF (Studio)       515   515 417
$/SF (Studio)       $1.55   $1.55 $1.86
                 
$/Unit (1x1) $770 $833 $963 $890 $808 $853 $908
SF (1x1) 780 762 756 733 609 728 773
$/SF (1x1) $0.99 $1.09 $1.27 $1.21 $1.33 $1.18 $1.17
                 
$/Unit (2x2) $926 $1,001 $1,251 $1,038 $1,092 $1,062 $1,115
SF (2x2) 1,147 1,147 1,159 984 1,092 1,106 1,069
$/SF (2x2) $0.81 $0.87 $1.08 $1.05 $1.00 $0.96 $1.04
                 
$/Unit (3x2) $1,243   $1,398   $1,177 $1,273 $1,375
SF (3x2) 1,606   1,525   1,392 1,508 1,428
$/SF (3x2) $0.77   $0.92   $0.85 $0.85 $0.96

Sales Comparables

  Barcelona on Chisholm Trail River Park Chisholm Ranch The Aspen Valley Oaks Apartments Averages Subject
Date Sold Mar-20 Mar-20 Jun-19 Jul-21 Feb-20   Sep-21
Year Built 1982 1984 1980 1978 1979 1981 1969
# of Units 248 280 272 224 322 269 235
Average Unit Size 828 SF 784 SF 1,086 SF 794 SF 917 SF 882 SF 889 SF
Sale Price $26,750,000 $33,750,000 $30,130,000 $23,700,000 $33,000,000 $29,466,000 $23,850,000
$/Unit   $107,863 $120,536 $110,772 $105,804 $102,484 $109,492 $101,489
$/SF   $136 $148 $108 $133 $112 $127 $114
Cap Rate     5.20% 4.20%   4.70% 4.98%
Building Size 196,691 SF 228,041 SF 278,981 SF 177,912 SF 295,276 SF 235,380 SF 209,009 SF
Distance from subject 4.4 mi 2.6 mi 5.2 mi 13.0 mi 15.0 mi 8.0 mi  
Location

Market Overview

Dallas-Fort Worth has gained more new residents than any MSA in the country, adding more than one million people in an eight-year period. The region's population now tops 7.5 million, solidifying North Texas' ranking as the fourth-largest MSA. As for the state, new data from the U.S. Census Bureau shows Texas gained more than 3.5 million people from April 2010 through July 2018. That's the equivalent of 1,000 new residents a day - with a third of those settling down in DFW. 

Submarket Overview

Woods of Ridgmar is located minutes from affluent Fort Worth neighborhoods, premier shopping centers, and major employment hubs. Within a three-mile radius, residents have access to Fort Worth CBD, Near Southside Medical District, Cultural District, Texas Christian University, and West 7th Entertainment District. Additionally, the property is just a quarter-mile from I-30, allowing a convenient commute throughout the metroplex. Consistent demand for this job-centric location is the leading reason why there's been a 23% population increase since 2010 (3-mile radius). 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $22,074,680 $93,935
GP Investor Equity $727,000 $3,094
LP Investor Equity $6,750,000 $28,723
Total Sources of Funds $29,551,680 $125,752
     
Uses of Funds $ Amount $/Unit
Purchase Price $23,875,000 $101,596
Closing Costs(1) $831,756 $3,539
Exterior Renovations $2,463,875 $10,485
Interior Renovations $1,704,555 $7,253
Financing Costs $441,494 $1,879
Reserves $235,000 $1,000
Total Uses of Funds $29,551,680 $125,752

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: TBD
  • Term: 3+1+1
  • Loan-to-Value: 70%
  • Loan-to-Cost: 75%
  • Estimated Proceeds: $22,074,680
  • Interest Type: Fixed
  • All-In Interest Rate: 3.50%
  • Interest-Only Period: 60 Months
  • Amortization: 30 Years
  • Future Funding Reserves: $4,168,430 (100% of budgeted capex)
  • Prepayment Terms: 18 Months of Minimum Interest
  • Financial Covenants: 8.0% minimum stabilized debt yield
  • Exit Fee: 1.0%

Modeled Refinance:

  • Lender: TBD
  • Loan-to-Value: 76.3%
  • Term: 10 Years
  • Estimated Proceeds: $26,840,000
  • Interest Type: Fixed
  • Annual Interest Rate: 4.25%
  • Interest-Only Period: 60 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

Park Ave Capital intends to make distributions from Ridgmar Partners, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
  2. 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 14% IRR; 
  3. 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.

Park Ave 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 June 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Park Ave Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves. Park Ave 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 Year 9 Year 10
Effective Gross Revenue   $2,841,772 $3,089,833 $3,376,012 $3,495,407 $3,598,365 $3,704,374 $3,813,525 $3,925,910 $4,041,627 $4,160,774
Total Operating Expenses   $1,585,162 $1,633,513 $1,683,446 $1,729,493 $1,776,197 $1,824,172 $1,873,454 $1,924,079 $1,976,084 $2,029,506
Net Operating Income   $1,256,610 $1,456,320 $1,692,566 $1,765,914 $1,822,168 $1,880,202 $1,940,070 $2,001,831 $2,065,543 $2,131,268
                           
 
 
Project-Level Cash Flows EXCLUSIVE of Solar Tax Credit
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($7,477,000) $828,661 $596,424 $795,462 $5,595,293 $549,760 $605,957 $663,934 $723,746 $785,452 $11,575,206
                           
Investor-Level Cash Flows - EXCLUSIVE of Solar Tax Credit[1]
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($6,750,000) $687,152 $477,496 $657,181 $4,990,318 $435,369 $486,102 $538,442 $592,439 $570,640 $6,977,399
                           
Investor-Level Cash Flows EXCLUSIVE of Solar Tax Credit - Hypothetical $50,000 Investment*[1]
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($50,000) $5,090 $3,537 $4,868 $36,965 $3,225 $3,601 $3,988 $4,388 $4,227 $51,684
                           
 
 
Project-Level Cash Flows INCLUSIVE of Solar Tax Credit [2]
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($7,477,000) $1,090,226 $596,424 $795,462 $5,595,293 $549,760 $605,957 $663,934 $723,746 $785,452 $11,575,206
                           
Investor-Level Cash Flows  INCLUSIVE of Solar Tax Credit[1][2]
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($6,750,000) $923,285 $477,496 $657,181 $4,990,318 $435,369 $486,102 $538,442 $565,951 $502,566 $6,782,504
                           
Investor-Level Cash Flows  INCLUSIVE of Solar Tax Credit - Hypothetical $50,000 Investment*[1][2]
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($50,000) $6,839 $3,537 $4,868 $36,965 $3,225 $3,601 $3,988 $4,192 $3,723 $50,241

[1] Reflects average LP Cash on Cash return in Year 1 to Year 5 prior to refinance. Average LP Cash on Cash return in Year 5 through 10 following the refinance is 17.20%. 

[2] Inclusive of the Solar Tax Credit, net returns to RM Investors are: 16.53% IRR, 2.42x equity multiple, and a 10.22% cash on cash return. Average LP Cash on Cash return in Year 5 through 10 following the refinance is 16.62%. 

[3] Returns above are calculated on a monthly basis, which slightly differs from an annual IRR calculation.

[4] Underwriten returns assume a 10-year hold, however, the partnership will reassess in Year 7 whether to recapitalize or sell the project.

*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 Park Ave 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
Acquisition Fee 2.0% of Purchase Price Park Ave Capital Capitalization
Construction Management Fee 5.0% of Hard Costs Park Ave Capital Capitalization
       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 2.0% of EGI Park Ave Capital 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, 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.

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