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Funded
Multifamily
The Meadows at Canton
Canton, MI
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By The GSH Group
16.9%* TARGET IRR 15.9%-17.9%
11.3%* TARGET AVG CASH ON CASH
2.44X* TARGET EQUITY MULTIPLE
Estimated Hold Period 7 Years
Estimated First Distribution 5/2022
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
The Meadows at Canton is a 736-unit multifamily community located in Canton, MI, which is an affluent and growing city located in Wayne County.
Location

The Property is under ten minutes from a cluster of business and technical parks along Haggerty Road. Canton is well known for its top-rated public school system and the variety of shopping and dining options along Ford Road. 

Value-Add

75% of the units have already been fully upgraded with new lighting, kitchen hardware, electrical outlets, espresso cabinets, stainless steel appliances, quartz countertops in the kitchen and bathrooms, tile backsplash, and vinyl flooring. Upgraded units have been leased at a $139 average premium. By renovating the remaining units and beautifying the building exteriors and community spaces, GSH plans to bring the Property to its full potential.

Cash Flow

The Property has the potential to provide steady cash flow on over 700 units with a high IRR for potential investors. 

Property At A Glance
# of Units 736
# of Buildings 61 garden-style buildings
Year Built 1968-1972
Current Occupancy 90%
Parking Ratio 2.04 per unit
Acquisition Price

$125,715,000

Investment Highlights
The GSH Group is under contract to purchase the Property for $125,715,000, representing a going-in cap rate of 4.23% and a Year 1 cap rate of 4.95%
GSH is projecting a refinance in year 3 that should provide ~20-30% return of capital to investors.
The expected cash on cash return is above 11.0%.
GSH plans to hire a best-in-class management company, Beztak, based in Michigan and who manages over 32,000 units, to improve operational efficiencies and increase rental income at the Property.
The Meadows at Canton is the only property of its vintage to have fully renovated units in the Canton area.
Canton is a highly desirable, affluent suburb on the west side of Metro Detroit that offers close proximity to the region's major employers and retail centers.
The current owner has spent over $22M on exterior beautification, improved community spaces, and renovating 75% of the units over the past 4 years. GSH has a robust capital budget to further enhance the Property and renovate the remaining units.
A new Amazon Fulfillment Center and Henry Ford Health Center are being completed less than one mile from the Property.
Management
Cumulative Distributions

The GSH Group

The GSH Group (“The Real Estate Company") is a real estate investment company focused on class B/workforce housing across the United States. The leadership team has over 40 years of combined experience and the company has over $1 billion assets under management(1), made up of 8,333 multifamily units(2), inclusive of partner legacy assets.

With demonstrated experience as advisors, managers, and resolving problem loans, The Real Estate Company is attuned to the needs and processing of Special Servicers for the quick disposition of assets. The Real Estate Company employs a tactical strategy for value creation. Value enhancement is approached from multiple angles and scenarios. These include, but are not limited to, organic rental growth due to market inefficiencies, rent premiums generated through unit upgrades, and decreasing expenses through management efficiencies.

The Real Estate Company uses applicable, real-time software to help manage all assets on a minute-by-minute basis. Using real-time data, they can effectively keep all projects on track to ensure the business plan's proper implementation. Additionally, The Real Estate Company is vertically integrated, employing an affiliated general contractor and construction team to ensure projects stay on budget and on time.

(1) Portfolio value includes an assumed value based on current T1/T12 financials and a capitalization rate of 5.00%. This includes certain legacy properties owned and managed by partners.

(2) Units include legacy units owned by the partners as well as units sold.

https://gshrealestate.com/
  • Gideon Pfeffer
    Managing Partner
  • Shmuel Cohen
    Partner
  • Hannan Lis
    Partner
Gideon Pfeffer
Managing Partner

Gideon is responsible for strategic partnership initiatives and ventures, financing and debt opportunities, overseeing investment performance, strategic partner’s performance, and approving decisions on investments and acquisitions. He also oversees daily operations. Prior to GSH, Gideon operated a highly successful aggregation and renovation firm focused on single-family homes in the Midwest and Southeast.

Shmuel Cohen
Partner

Shmuel is responsible for asset management and Israeli Investor relations. An Israeli citizen, Shmuel also owns a separate  portfolio of over 1,300 units in multifamily properties in Michigan and North Carolina. His experience as an owner and operator is an invaluable resource and he is responsible for the continued success of raising private capital in Israel for The GSH Group.

Hannan Lis
Partner

Hannan is responsible for banking, investor relations, and branding. He is an experienced real estate investor, owns several businesses, and is an active member of a prominent family office in Michigan. Hannan is president of WW Group, which holds Weight Watchers franchises for Michigan and Ontario, Canada. The company was formerly the largest franchisee in the Americas.

Track Record

GSH Group Track Record

Property City, State Asset Type Acq Date Units Purchase Price Sale Price
Cadieux Detroit, MI  Multifamily 2012 131 $900,000 $1,900,000
Greenfield Detroit, MI  Multifamily 2016 99 $1,750,000 $2,424,500
Cornerstone Apartments Detroit, MI  Multifamily 2016 476 $8,900,000 $12,025,000
Chapel Oaks Apartments Fort Wayne, IN Multifamily 2017 320 $7,500,000 $10,500,000
Holcomb, Chicago, Collage, & Jefferson Detroit, MI  Multifamily 2012 210 $2,450,000 $3,645,000 (1)
Whittier & Morang Detroit, MI  Multifamily 2012 44 $460,000 Under Management
Chapel Court Detroit, MI  Multifamily 2013 184 $2,090,000 Under Management
Pallister Detroit, MI  Multifamily 2016 187 $7,400,000 Under Management
Marina Bay Gibraltar, MI Multifamily 2016 137 $4,900,000 Under Management
Wakefield Apartments Southfield, MI Multifamily 2017 67 $7,200,000 Under Management
Ridge Pointe Apartments Conover, NC Multifamily 2017 160 $11,000,000 Under Management
Holiday Garden Apartments Mount Clemens, MI Multifamily 2017 64 $2,575,000 Under Management
Eastland Village Harper Woods, MI Multifamily 2017 408 $21,750,000 Under Management
Utica Square Apartments Roseville, MI Multifamily 2018 266 $11,000,000 Under Management
Barwin Place Mount Clemens, MI Multifamily 2018 48 $2,100,000 Under Management
Birch Hill Apartments Westland, MI Multifamily 2018 173 $10,650,000 Under Management
Hoover Square Warren, MI Multifamily 2018 342 $18,950,000 Under Management
Colony Club Bedford, OH Multifamily 2019 588 $35,515,200 Under Management
Louis Apartments Detroit, MI  Multifamily 2019 28 $962,000 Under Management
Pickford Apartments Detroit, MI  Multifamily 2019 35 $1,122,500 Under Management
Stacey Ann Apartments Detroit, MI  Multifamily 2019 49 $1,565,500 Under Management
Polo Club Marshall, MI Multifamily 2019 80 $3,400,000 Under Management
The Loop On Greenfield Oak Park, MI Multifamily 2019 717 $59,700,000 Under Management
Glengarry Park Waterford, MI Multifamily 2020 300 $22,650,000 Under Management
Foote Hills Grand Rapids, MI Multifamily 2020 182 $24,950,000 Under Management
BLVD West Apartments(2) Lansing, MI Multifamily 2021 144 $23,000,000 Under Management
The Landings on East Hill(2) Grand Blanc, MI Multifamily 2021 148 $14,800,000 Under Management
Veridian Castleton(2) Indianapolis, IN Multifamily 2021 398 $44,500,000 Under Management
Laurel Pines(2) Laurel, MD Multifamily 2021 235 $38,250,000 Under Management
The Orion Lake Orion, MI Multifamily 2021 200 $27,375,000 JV-Under Management
The Preserve at Spring Lake(2) Altamonte Springs, FL Multifamily 2021 320 $62,800,000 Under Management
The Meadows at Capitol Heights Capitol Heights, MD Multifamily 2021 272 $49,100,000 Under Management
Sherwood Oaks Riverview, FL Multifamily 2021 199 $35,000,000 JV-Under Management
The Meadows at Canton(2) Canton, MI Multifamily 2021 736 $125,715,000 Under Management
The Meadows at Farmington Hills(2) Farmington Hills, MI Multifamily 2021 424 $81,350,000 Under Management
Total       8,333 $773,580,200  

(1) Holcomb, Chicago, Collage, and Jefferson were a portfolio acquisition totaling 210 units in 2012. Holcomb, which makes up 90 of the 210 total units, was sold for $3,645,000. All of the other properties are still under management.

(2) JV Equity raised through RealtyMogul Platform.

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

Business Plan

Current ownership has renovated all but 191 units at the Property. GSH plans on finishing the prior owner's interior renovations as well as spending over $7M to enhance the exterior and common areas of the Property in order to beautify the Property and give tenants a resort-style throughout.  Also, since it took ownership 4 years to fully renovate the Property, loss to lease, concessions, and vacancy have been higher than normal during their four-year ownership period. GSH expects to be able to significantly lower all those items, and continue on the excellent trajectory started by ownership, through a comprehensive marketing and management process that will quickly complete the interior, exterior, and common area renovations mentioned above. This focus will allow the Sponsor to realize the benefits of the original owner's plan which was delayed by the COVID pandemic.

CapEx Breakdown:

Interior Renovations $ Amount Per Unit
Paint Scheme  $152,800 $800
Paint Cabinets $95,500 $500
Flooring  $171,900 $900
Countertops $210,100 $1,100
Hardware $76,400 $400
Doors $57,300 $300
Misc $191,000 $1,000
Unassigned $668,500 $3,500
Total Interior Renovation Costs $1,623,500 $8,500
     
Exterior Renovations $ Amount Per Unit
Closet/Bathroom Build Out $441,000 $599
Pool Repair $200,000 $272
Landscaping $400,000 $543
Parking Lot Resurface/Mill/Curbs $1,000,000 $1,359
Roof Replacement $750,000 $1,019
Plumbing Repairs $200,000 $272
Hallway Refresh $150,000 $204
Signage $100,000 $136
Maintenance Shop $75,000 $102
Exterior Architectural Design (Townhouses) $500,000 $679
Egrain Marketing $35,000 $48
Exterior Lighting $200,000 $272
Playgrounds $150,000 $204
Dog Parks $75,000 $102
Outdoor Amenities $165,000 $224
Grilling Stations $100,000 $136
Party Room Enhancement $50,000 $68
Chiller Replacement $100,000 $136
Boiler Replacement $300,000 $408
HVAC Magic Pack $145,700 $198
Split System - Furnaces $351,000 $477
Split System - A/C Condensers $249,600 $339
Concrete Replacement $250,000 $340
Tuck Pointing $150,000 $204
Storage Unit Cleanout $100,000 $136
Down Units $56,000 $76
Gutter and Downspouts  $75,000 $102
Basement Drains & Subpump Revamp $150,000 $204
Trash Recepticals $100,000 $136
Hot Water Tanks $80,000 $109
Misc & Contingency $1,000,000 $1,359
Total Exterior Renovation Costs $7,698,300 $10,460
     
Grand Total $9,321,800 $18,960

 

Property
Property Details

The Meadows at Canton is a 736-unit apartment community built from 1968-1972 (and renovated in 2019-2020) located on the west side of Canton, MI. The Property is currently 90% occupied and sits on Honeytree Boulevard, just east of I-275. Canton, Michigan is an affluent suburb with the third highest-rated public school system in Wayne County.  The Property's location offers easy access to major regional employers and Ford Road, the region’s major retail corridor.  The GSH Group believes the neighborhood is expected to see growth in population and economic development based on a 5.8% population increase over the past decade.  With that, they believe the Property will have strong demand and organic rent growth, which will allow the Property to increase revenue and eliminate high concessions left by the current ownership. 

Unit Type # of Units Avg SF Avg Rent (In-Place) Rent PSF
1x1 217 742 $1,054 $1.42
2x1 168 866 $1,192 $1.38
2x1.5 18 940 $1,457 $1.55
2x2 127 889 $1,263 $1.42
2x2.5 20 1,300 $1,559 $1.20
3x2.5 165 1,384 $1,631 $1.18
4x2.5 21 1,500 $1,814 $1.21
Total/Averages 736 981 $1,296 $1.35
Comparables

Lease Comparables

  Fordham Green Wyndchase Village Club Averages Subject
Year Built 1975 2001 2001 1992 1968-1972
# of Units 146 341 272 253 736
Average Rental Rate $1,623 $2,016 $1,360 $1,666 $1,433
Average Unit Size 865 SF 1,269 SF 875 SF 1,003 SF 983 SF
Average $/SF $1.88 $1.59 $1.55 $1.67 $1.46
Distance from subject 3.9 miles 3.7 miles 3.3 miles 3.6 miles N/A
           
$/Unit (1x1) $1,340   $1,265 $1,303 $1,054
SF (1x1) 672 SF   875 SF 774 SF 739 SF
$/SF (1x1) $1.99   $1.45 $1.72 $1.43
           
$/Unit (2x1) $1,580     $1,580 $1,192
SF (2x1) 858 SF     858 SF 866 SF
$/SF (2x1) $1.84     $1.84 $1.38
           
$/Unit (2x1.5)         $1,457
SF (2x1.5)         940 SF
$/SF (2x1.5)         $1.55
           
$/Unit (2x2)     $1,527 $1,527 $1,263
SF (2x2)     1,000 SF 1,000 SF 889 SF
$/SF (2x2)     $1.53 $1.53 $1.42
           
$/Unit (2x2.5)   $1,816   $1,816 $1,559
SF (2x2.5)   1,188 SF   1,188 SF 1,300 SF
$/SF (2x2.5)   $1.53   $1.53 $1.20
           
$/Unit (3x2) $1,950 $2,215   $2,083 $1,631
SF (3x2) 1,065 SF 1,350 SF   1,208 SF 1,384 SF
$/SF (3x2) $1.83 $1.64   $1.72 $1.18
           
$/Unit (4x2.5)         $1,814
SF (4x2.5)         1,500 SF
$/SF (4x2.5)         $1.21

Sales Comparables

  Pavillion Court Village Green Townhomes of Oak Park Fountain Park Novi Fountain Park Westland Averages Subject
Date Sold 2/24/2021 8/19/2021 10/1/21* 10/1/21* N/A TBD
Year Built 1986 1951 1988 1987 1978 1968-1972
# of Units 377 374 264 448 366 736
Sale Price $66,500,000 $65,000,000 $57,500,000 $73,500,000 $65,625,000 $125,700,000
$/Unit $176,393 $173,797 $217,803 $164,063 $183,014 $170,788
Cap Rate 5.49% 4.82% 4.49% 5.12% 4.98% 4.23%
Distance from subject 8.6 mi 24.0 mi 11.5 mi 2.0 mi 11.5 mi N/A

*Under Contract

Location

Market Overview

The Detroit MSA is home to over 4.3 million residents, making it the second-most populous metro in the Midwest and the 14th-most populous in the nation. While the Detroit economy is primarily known for automobile manufacturing, this economy has gone through significant diversification over the past decade. Today, more than 315,000 companies - including ten Fortune 500 companies and 18 Fortune 1000 companies employ over 820,000 people. These major corporations generate a combined revenue of over $443 billion annually. The largest industries across the metro include technology, logistics, smart manufacturing, research, engineering & design, corporate & professional services, and financial services.                                                                                                                                                                              

Submarket Overview

The Meadows at Canton is a very well-located property on the I-275 corridor in Canton Township, Michigan. The Property is located just east of I-275 and south of Joy Road, between the Ann Arbor Road and Ford Road interchanges on I-275.  Canton Township is a very strong and growing upper middle income community in western Wayne County in Southeast Michigan.  The area offers great schools, as the Plymouth Canton School Districted is one of the higher-rated districts in the state.  I-275 is flanked by numerous regional employers who are located in the business and technical parks along I-275 such as major employers in Novi to the north, major engineering, industrial and distribution employers along I-96, and to the south, in Romulus around the Detroit Metro airport. The Property is close to the area's major regional shopping corridor along Ford Road anchored by numerous major retailers and the area’s only IKEA store. 

 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $106,584,000 $144,815
GP Investor Equity $5,528,000 $7,511
LP Investor Equity $23,468,000 $31,886
Senior Loan Reserved for CapEx $8,197,000 $11,137
Total Sources of Funds $143,777,000 $195,349
     
Uses of Funds $ Amount $/Unit
Purchase Price(1) $125,715,000 $170,808
Legal Fee & Third Party Consulting Fees $896,000 $1,217
Acquisition Fee (2% of Purchase Price) $2,514,000 $3,416
Closing, Due Diligence, & Financing Fees(2) $2,134,000 $2,899
Tax, Insurance, Covid Reserves $1,796,000 $2,440
Initial Capital Plan Funds $9,322,000 $12,666
Working Capital & Reserves $1,400,000 $1,902
Total Uses of Funds $143,777,000 $195,349

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

(1) There is an additional buyer broker fee of 2% paid to an affiliate of GSH from the seller's proceeds

(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Arbor
  • Term: 3 Years
  • Loan-to-Cost: 80.0%
  • Estimated Proceeds: $114,781,000
  • Interest Type: Floating
  • Spread Above One-Month LIBOR: 3.55%
  • Interest-Only Period: Term of the Loan
  • Amortization: N/A
  • Loan Fees: 1.0% to Lender, 0.75% to broker
  • Extension Requirements: 
    • Two 12-month extensions:
      • 1st extension requires written notice 30 days prior to original expiration, an extension fee of .25%, interest reserve is resized, new rate cap to be purchased, and may be issued a new DSCR requirement.
      • 2nd extension requires written notice 30 days prior to expiration of extended term, an extension fee of .25%, interest reserve is resized, new rate cap to be purchased, and may be issued new DSCR requirement.

Modeled Refinance:

  • Refinance Date: 11/1/2024
  • Lender: Fannie Mae
  • Term: 12 Years
  • Estimated Proceeds: $121,850,000
  • Interest Type: Fixed
  • Annual Interest Rate: 4.25%
  • Interest-Only Period: 5 Years
  • 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

The GSH Group intends to make distributions from Canton Domestic Investors, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 9.0% Preferred Return;
  2. 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow thereafter.

The GSH Group 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 The GSH Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

The GSH Group 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 Year 5 Year 6 Year 7
Effective Gross Revenue   $10,989,850 $12,160,297 $13,042,416 $13,578,154 $13,977,771 $14,389,377 $14,813,331
Total Operating Expenses   $4,760,743 $4,976,795 $4,941,477 $5,048,553 $5,153,366 $5,260,394 $5,369,687
Net Operating Income   $6,229,107 $7,183,502 $8,100,940 $8,529,601 $8,824,406 $9,128,983 $9,443,644
                     
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow   ($28,996,000) $2,132,314 $2,496,467 $8,811,279 $2,858,552 $3,145,364 $3,441,709 $64,832,332
                     
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow   ($7,000,000) $444,767 $532,679 $2,057,154 $620,090 $689,331 $760,872 $11,946,978
                     
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow   ($50,000) $3,177 $3,805 $14,694 $4,429 $4,924 $5,435 $85,336

(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 The GSH Group's materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee 2.0% of Purchase Price GSH Group, LLC Capitalization  
Buyer Broker Fee  2.0% of Purchase Price Momentum Realty, LLC Seller Proceeds Momentum Realty, LLC is an affiliate to the principals at GSH
Refinance Fee 1.0% of Loan Amount GSH Group, LLC Loan Proceeds To be paid out on the sale of the property.
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee 2.0% of EGI GSH Group, LLC Operations  
Administrative Services Fee 1.0% of Equity* RM Admin(3) Cash Flows  

*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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