Staff Menu (IO ID#: 1708122):
EDIT IO DOCUMENTS
Funded
Industrial
Commerce Center Stafford
Stafford, TX
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
Add to Watchlist
100% funded
Offered By Rising Realty Partners
16.2%* TARGET IRR 15.2%-17.2%
7.5%* TARGET AVG CASH ON CASH
1.51X* TARGET EQUITY MULTIPLE
Estimated Hold Period 3 Years
Estimated First Distribution 5/2022
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
current
current
current
current
Explore this Project
Overview
Value-add acquisition of a best-in-class industrial park comprised of 16 buildings totaling 245,495 square feet in the highly desirable Southwest Houston industrial submarket.
Value-Add

Commerce Center Stafford offers Rising Realty Partners the opportunity to acquire a multi-building portfolio in one of Houston's premier industrial submarkets. The Property provides attractive current cash flow and significant upside via lease-up and marking rents to market rates. The Project is presently 90% leased with rents that are currently 16.5% below market. The potential implementation of ESG initiatives including solar panels, low flow water devices, LED lighting, and low maintenance landscaping plants to reduce carbon emissions and lower operating expenses.

Basis

Class-A multi-tenant industrial park acquired at a significant discount to replacement cost. The Sponsor is buying the Project for $137 PSF, and estimates the replacement cost at $225 PSF. Commerce Center Stafford is ideally positioned in the market to provide functional units that range in size from 1,875 to 13,975 square feet and accommodate a wide range of users. The highly stable and diversified tenancy enjoyed 99% average rent collections in 2020, and should provide predictable and sustainable cash flow going forward.

Severe Supply Constraint

Light/flex industrial product in this market has not been built since the Global Financial Crisis. Increasing construction costs coupled with significant increases in land values have created a shortage in new business park deliveries.  No new supply of light industrial/flex product and steady demand are putting upward pressure on rental rates and sale values as a result. The scarcity of large industrial zoned, developable parcels further restricts future supply. The current submarket vacancy is at 4% and no new supply is planned or under construction.

Property At A Glance
# of Buildings 16
Rentable Square Feet 245,495
Parking Ratio 1.86 per 1,000 SF
Current Occupancy 90%
Year Built 1996-2004
Acquisition Price

$33,600,000

Investment Highlights
Rising is acquiring this multi-use logistics industrial park for $33,600,000 with a going-in cap of 5.26%, and an average cash on cash return of 7.5% net to investors over the anticipated 3-year hold period.
The Project will be financed with attractive full term interest-only debt that lines up with the business plan and helps generate a projected LP IRR of 16.2%, and an equity multiple of 1.51X.
Commerce Center Stafford provides attractive current cash flow and significant upside via lease-up and marking rents to market rates. The Project is presently 90% leased with rents that are currently 16.5% below market.
Potential implementation of ESG initiatives including solar panels, low flow water devices, LED lighting, and low maintenance landscaping to reduce carbon emissions and lower operating expenses.
High quality multi-tenant industrial park acquired at a significant discount to replacement cost. The Sponsor is buying the Project for $137 PSF, and estimates replacement cost at $225 PSF.
Supply constrained market. Industrial product has not been built since pre-GFC (Great Financial Crisis). Rising construction costs coupled with significant increases in land values have created a shortage in new business park deliveries.
No new supply and steady demand are putting upward pressure on rental rates and sale values as a result. The scarcity of large industrial zoned, developable parcels further restricts future supply. The current submarket vacancy is at 4% and no new supply is planned or under construction.
Management
Cumulative Distributions

Rising Realty Partners

Founded in 2012 by industry veterans Nelson and Christopher Rising, Rising Realty Partners is a family-owned, Los-Angeles based, vertically integrated real estate investment and operating platform specializing in creating world-class commercial properties.

Their investment and operating philosophy is to add value and enhance financial returns through sustainable investment practices and leverage technology as a force multiplier to increase efficiency, reduce operating costs, and improve tenant satisfaction.

https://www.risingrp.com/
  • Christopher Rising
    Co-founder & CEO
  • Scott McMullin
    Principal & CIO
  • Scott Word
    Principal, Industrial Investments
Christopher Rising
Co-founder & CEO

Christopher Rising manages the day-to-day business activities of Rising, while also serving on its Investment Committee. Drawing on his experience as Senior Vice President, Asset Transactions at MPG Office Trust, Inc. (NYSE: MPG), Christopher is skilled at managing acquisitions and creative development. At MPG, he worked directly with the CEO to improve finances through debt reduction and restructuring.

In 2003, he founded his own company, The Rising Real Estate Group (RREG.) As the company grew, he seized the opportunity to partner with Barker Pacific Group and created Hamilton Capital Partners (HCP), an equity fund vehicle. RREG is also a principal in 626 Wilshire Blvd, a 156K square foot office building located in downtown Los Angeles.

He began his professional career as an associate at Pillsbury Madison & Sutro. He worked at Cushman Realty Corporation (CRC) under brokerage legend John C. Cushman, III. Christopher then served as a Director at Cushman & Wakefield of California, Inc. (C&W), joining C&W after its merger with CRC in 2001.

Christopher is a current member of the Pasadena Chapter of the Young Presidents Organization and is a member of the Board of Overseers at Loyola Law School and a member of the board of RiverLA. He is a former board member of Loyola High School and LA Phil. 

Christopher received his J.D. Law, Real Estate from Loyola Law School and his B.A. in History and Political Science from Duke University. He also attended Duke on a football scholarship and was a member of the 1989 ACC Championship team. 

Scott McMullin
Principal & CIO

Scott has been a capital partner with Rising since 2015 and recently joined Rising as Principal and CIO. He oversees the capital market needs for Rising, as well as serving on the company’s advisory board and investment committee.

Prior to joining Rising, Scott was a Founding Principal of Suntex Marina Investors. Originally partnering with SMI in 1994, Scott most recently served as Chairman of the Board, CIO, and COO as the company grew to acquire $750 million of marinas throughout the US. Scott also founded other successful real estate ventures such as Stratford Hospitality and Stratford Golf. 

Prior to forming Stratford, Scott spent 16 years as an Executive Managing Director with HFF. There, he oversaw over $30 billion of real estate transactions in all asset classes and served on the firm’s operating committee, facilitating the creation of the Los Angeles and San Francisco debt and equity platforms. Scott was also instrumental in the formation of the private equity affiliate, HFF Securities, holding the position of Principal at the broker/dealer. HFF executed an IPO in 2007.

Scott earned a degree from Duke University and is a member of the Young President's Organization.

Scott Word
Principal, Industrial Investments

Scott joined Rising in 2020 as Principal to lead the industrial platform. He oversees all industrial acquisition activities, including sourcing, strategy, market expansion, business development, market research, and underwriting. 

Prior to joining Rising, Scott held Principal positions with Landmark Realty Partners, Dvele, Waypoint, and Steelwave (formerly Legacy Partners). In this capacity, he led acquisition and development activities completing over $1.5B of “value add” industrial and office acquisitions. 

He began his professional career with The Seeley Company, one of the oldest and most established industrial brokerage firms in Los Angeles, where he quickly excelled to Partner and was a consistent Top Performer. 

Scott earned his bachelor’s in business finance from the University of Oklahoma.

Track Record

Rising Realty Partners Track Record

Property City, State Asset Type Acq Date SF Purchase Price Sale Date Sale Price
PacMutual Los Angeles, CA Office 4/12/2012 464,147 $59,000,000 4/17/2014 $129,000,000
PacMutual (recap) Los Angeles, CA Office 4/17/2014 464,147 $129,000,000 9/9/2015 $200,000,000
87 N Raymond Pasadena, CA Office 11/15/2013 62,000 $10,475,000 7/29/2016 $18,500,000
The CalEdison Los Angeles, CA Office 10/8/2015 277,074 $92,000,000 12/7/2018 $130,083,222
Bank of America Portfolio Los Angeles, CA Office 11/15/2013 1,770,624 $189,000,000 12/31/14 thru 3/31/21 $263,720,050
Heritage Financial Center Agoura Hills, CA Office 11/9/2016 62,225 $8,000,000 10/21/21 $9,500,000
The Park DTLA Los Angeles, CA Office 1/16/2015 273,448 $16,500,000 N/A N/A
West 7 Center Los Angeles, CA Office/Data 6/3/2016 733,762 $210,000,000 N/A N/A
The Trust Building Los Angeles, CA Office 6/9/2016 320,364 $80,400,000 N/A N/A
The CalEdison (recap) Los Angeles, CA Office 12/7/2018 287,615 $130,083,222 N/A N/A
1Cal Los Angeles, CA Office 6/6/2017 1,047,062 $459,000,000 N/A N/A
Civic Center Plaza Denver, CO Office 6/27/2019 598,592 $124,692,642 N/A N/A
9320 Telstar El Monte, CA Office/Industrial 2/26/2021 248,961 $41,050,000 N/A N/A
Cheyenne Airport Center Las Vegas, NV Office/Industrial 7/23/2021 143,983 $20,850,000 N/A N/A
Commerce Center Stafford Stafford, TX Office/Industrial 12/1/2021 245,495 $33,600,000 N/A N/A
Alpine Industrial Park Sacramento, CA Office/Industrial 2/25/2022 142,190 $21,895,000 N/A N/A
Total       7,141,689 $1,625,545,864   $741,303,272

The above bios and track record were provided by Rising Realty Partners and have not been independently verified by RealtyMogul.

Business Plan

Commerce Center Stafford (“CCS”) is a 90% leased, multi-tenant light industrial park located in one of the most desirable industrial submarkets in Houston.  CCS is ideally positioned in the market to provide high-quality and functional light industrial/flex space to a wide range of industrial users.  CCS has enjoyed robust leasing activity over the last 12 months increasing the occupancy from 74% to 90% with project rental rates increasing by over 18% during the same period.  The business plan entails multiple initiatives to reposition this asset as the market leader in the Southwest submarket.  First, the Sponsor will build out the remaining eight (8) vacant suites to position them as "market ready" suites while proactively managing the rollover of existing tenants, marking rents to market rates, and aggressively pursuing early renewals from tenants with near term expirations.  CCS has over 60 tenants, and is a “high touch” asset with 62% of the leases rolling during the hold period, and plays into the strength of Rising’s multi-tenant operational expertise. The Rising team will proactively manage the asset to ensure a quick lease-up of vacant suites, manage near-term rollover, and implement operational efficiencies to deliver superior results to its investor partners.

Second, the Sponsor will pursue a modest “cosmetic” capital improvement plan to enhance the Project’s market appeal.  They are setting aside $710,473 to address cosmetic upgrades including project rebranding and naming, monument and tenant signage, top of building accent striping, and modest landscaping improvements. Third, the Sponsor is evaluating ESG implementation initiatives including solar panels, low flow water devices, LED lighting, and low maintenance landscaping to reduce carbon emissions and lower operating expenses.

Finally, the Property will be financed with highly attractive debt, taking advantage of historically low interest rates. The Sponsor will finance the Project with aggressive bank financing at 2.35% floating for the duration of the hold period, interest-only with no prepayment penalty. Their capital markets team is guiding the debt to 65% LTC with 100% of capital improvements, tenant improvements, and leasing commissions financed from the loan. There are no anticipated future capital calls.  Matching market rate financing and sufficient working capital reserves with the business plan should deliver strong predictable cash flow distributions and an exceptional leveraged internal rate of return over the three-year hold period. 

CapEx Budget $Amount PSF
AE Design $25,000 $0.10
As Builts $30,000 $0.12
Monument Signage $30,000 $0.12
Building Signage $7,000 $0.03
Building Accent Striping $80,000 $0.33
Tree Removal $20,000 $0.08
Landscaping $100,000 $0.41
Concrete Repair $30,000 $0.12
Tenant Signage $120,000 $0.49
Building Addressing $65,000 $0.26
Contingency $53,000 $0.22
HVAC $40,000 $0.16
Capital Reserves $110,473 $0.45
Total CapEx Costs $710,473 $2.89
Property
Property Details

The Business Park was built between 1996-2004 and offers 14'-16' clear height ceilings, 57% office finishes, rear load configuration, and 457 car parking spaces. The product mix, abundant parking, and unit configuration accommodate a wide range of light industrial users. The Project offers convenient access to US Highway 59 and Beltway 8.  This location provides Commerce Center Stafford with exceptional proximity to the center of Houston’s geographical population, major employment centers, and Houston’s expansive major thoroughfare and freeway system. 

Please refer to the Documents section to view Commerce Center Stafford's current rent roll.

Comparables

Lease Comparables

  Point West Business Park Point West Business Park Commerce Center Sugar Land Greenbriar Business Park Greenbriar Business Park Averages Subject
Year Built 1979 1979 2006 2001 2001 1993 1996-2004
Average $/SF- NNN $10.00 $10.00 $10.80 $9.56 $9.00 $9.87 $9.65
Distance from subject 7.8 mi 7.8 mi 3.1 mi 0.7 mi 0.2 mi 0.7 mi N/A

Sales Comparables

  West Belt Business Park Westport Business Center Woodlands Flex Portfolio Point West Business Park Beltway Southwest Averages Subject
Date Sold Jun-21 Aug-21 Apr-21 Under Contract Aug-18   2021
Year Built 1978 1985 1978-1983 1979 2016 1991 2006
Sale Price $30,500,000 $27,550,000 $38,200,000 $17,800,000 $79,200,000 $38,650,000 $33,600,000
$/SF $117 $156 $152 $122 $117 $133 $137
Cap Rate N/A 5.70% N/A 5.30% 5.30% 5.43% 5.26%
Building Size 260,687 SF 176,684 SF 250,723 SF 145,915 SF 674,418 SF 301,685 SF 245,495 SF
Distance from subject 14 mi 17 mi 9.9 mi 7.8 mi 5.7 mi 10.9 mi N/A
Location

Market Overview

The overall Houston industrial market is comprised of 471 MSF with a current market direct vacancy of 9.3%, which represents a 140 basis point decline from the Q1 vacancy.  The Houston market is considered one of the top industrial markets in the US and experienced almost 12 MSF of net absorption in the second quarter of 2021.  Record leasing activity coupled with reduced new construction starts is quickly returning the Houston industrial market to equalibrium with projected year-end vacancy reaching the mid 8% range.  In addition, over 72% of leasing activity was represented by industrial users that are new to the Houston market or existing tenants that are expanding their current footprint to keep pace with the robust demand associated with the expanding and dynamic Houston economy.  The market is experiencing modest rent growth and concessions have stabilized.

Submarket Overview

The Project is located in the Southwest Houston submarket, one of the most coveted institutional submarkets in Houston.   The Southwest submarket consists of 49.9 MSF of warehouse distribution space and is presently 8.9% vacant.  The light industrial/flex product represents approximately 12.4 MSF or 25% of the industrial base in this submarket.  Presently there is 3.82 MSF of dock high distribution space under construction that is presently 67% pre-leased (source: JLL).  In contrast, there is presently no new light industrial/flex product under construction or planned in the Southwest submarket, and this submarket has experienced minimal light industrial/flex product built in the last 10 years.  The current light industrial/flex vacancy in the Southwest submarket presently sits at 8.4%.  The Stafford subset of the Southwest submarket is 1.82 MSF, and the directly competitive buildings to CCS are presently at 96% occupancy.  In addition, Stafford enjoys a very favorable tax treatment (no inventory tax), which provides a competitive advantage to other Houston submarkets that cannot offer this same user benefit.  The lack of new supply coupled with consistent user demand continues to put upward pressure on rents.  The Southwest light industrial product has realized 10-year average rent growth of 3.56%, Stafford specifically has enjoyed 4.85% average rent growth the last decade, and 26% rent growth in the last 12 months. The forecast is modest rent growth over the next few years. 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount PSF
Debt $24,013,500 $98
GP Investor Equity $1,303,485 $5
LP Investor Equity $11,731,309 $48
Net Capitalized Cash Flow $200,146 $1
Total Sources of Funds $37,248,440 $152
     
Uses of Funds $ Amount PSF
Purchase Price $33,600,000 $137
Tenant Improvements & Leasing Costs $1,223,087 $5
Capital Improvements $710,473 $3
Working Capital $400,000 $2
Financing Fees  $414,200 $2
Closing Costs(1) 900,680 $4
Total Uses of Funds $37,248,440 $152

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: California Bank & Trust
  • Term: 60 Months + Two 12-month extensions, subject to Extension Conditions
  • Loan-to-Value: 65.0%
  • Closing Proceeds: $22,280,086
  • Future Funding: $1,733,414
  • Total Debt: $24,013,500
  • Interest Type: Floating
  • Spread above one-month SOFR: 2.35%
  • Interest-Only Period: 48 months
  • Amortization: 25 Years
  • Prepayment Terms: No prepayment penalty. Borrower is obligated under any interest rate hedging transaction for any termination fees and other payments in the event it is terminated.
  • Extension Requirements: Extension Fee of 0.25% of Loan Amount payable at extension closing
    The following conditions must be met prior to each extension: 
    1) No default
    2) Updated appraisal to confirm max LTV of 65% of the then-current loan amount 
    3) Minimum debt yield of 8.2%
    4) Payment of 0.25% extension fee
    5) Exercise extension option 60 days prior to maturity 
    6) Borrower in full compliance with all other terms and conditions of the loan

Please refer to the Project Summary in the Documents section for additional details on financing.

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

Rising Realty Partners intends to make distributions from Rising Commerce Center Stafford, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
  2. 80% / 20% (80% to Investors / 20% to Promoted/Carried Interest) of excess cash flow to a 12.0% IRR;
  3. 70% / 30% (70% to Investors / 30% to Promoted/Carried Interest) of excess cash flow to a 16.0% IRR;
  4. 60% / 40% (60% to Investors / 40% to Promote/Carried Interest) of excess cash flow thereafter.

Rising Realty Partners intends to make distributions to investors after the payment of the 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 May 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Rising Realty Partners, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Rising Realty Partners will receive a promoted/carried interest as indicated above, and a portion of this promoted/carried interest may be received by RM Admin, LLC.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4
Effective Gross Revenue   $2,599,608 $2,944,477 $3,078,114 $3,311,425
Total Operating Expenses   $836,888 $877,001 $908,947 $947,080
Net Operating Income   $1,762,721 $2,067,476 $2,169,167 $2,364,345
               
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3  
Net Cash Flow ($13,034,794) $975,136 $1,177,990 $19,540,728  
               
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3  
Net Cash Flow ($6,385,000) $413,813 $513,180 $8,734,021  
               
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3  
Net Cash Flow ($50,000) $3,241 $4,019 $68,395  

(1) 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 Rising Realty Partners' materials for details. The following fees and compensation will be paid(1)(2)(3)(4)(5)(6):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.25% of Purchase Price Rising Realty Partners Purchase Proceeds
Disposition Fee(1) 0.25% of Sale Price Rising Realty Partners Sale Proceeds
       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 2.0% of EGI Rising Realty Partners Cash Flow
Property Management Fee up to 5.0% of EGI Third-Party Property Manager(2) Cash Flow
Administrative Services Fee 1.0% of Equity(3) RM Admin(6) Cash Flow

(1) Disposition Fee shall only be paid if each RM Investor has received aggregate distributions from the Project Company in an amount equal to or exceeding such RM Investor’s capital contribution plus a 10% IRR.

(2) Rising Realty Partners may receive a portion of the property management fee.

(3) Only applies to equity raised through the RealtyMogul Platform.

(4) Fees may be deferred to reduce impact to investor distributions.

(5) 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.

(6) 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