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Funded
Multifamily
The Meadows at Farmington Hills
Farmington Hills, MI
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By The GSH Group
16.3%* TARGET IRR 15.3%-17.3%
11.0%* TARGET AVG CASH ON CASH
2.32X* 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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Project Summary
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Explore this Project
Overview
The Meadows at Farmington Hills is a 424-unit multifamily community located in Farmington Hills, MI, which is an affluent suburb in one of Michigan's wealthiest counties, Oakland County.
Location

The Meadows is a 10-minute drive from West Tech Park, a dense business park that is home to over 25 businesses. Notable employers include Bosch Group, Nissan Technical Center, Farmington Hills Public Works, I-Tech USA, Lordstown Motor Research, Five-Hour Energy and many others.  The Property is also within 15 minutes of various lifestyle and entertainment areas such as Twelve Oaks Mall, the Novi Town Center, Farmington Hills Golf Course, and Founders Sports Park. 

Value-Add

Current ownership has spent $13 million on significant exterior upgrades as well as full unit renovations on all 424 units over the past four years. With the interior renovations complete, the Sponsor's plan is to continue to improve the exterior, curb appeal, and communal spaces throughout the Property to create a resort-style feel for tenants. There is significant loss to lease, concessions, and vacancy that the Sponsor plans to improve since the renovation and "lease up" is complete. 

Cash Flow

The Property offers the potential for healthy cash flow on 424 units with a potential high IRR for investors.

Property At A Glance
# of Units 424
# of Buildings 41 garden-style buildings
Year Built 1975
Current Occupancy 94%
Parking Ratio 1.78 Per Unit
Acquisition Price

$81,350,000

Investment Highlights
The GSH Group is under contract to purchase the Property for $81,350,000, representing a going-in cap rate of 5.32%.
The expected cash on cash return is above 10.0%.
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.
Farmington Hills is an upper-middle-class suburb located in Michigan's most affluent and highest per capita income county, Oakland County.
Current ownership has already invested $13 million on exterior beautification and fully renovating all 424 units.
The Property benefits from close proximity to various interstates (I-696 and I-275) that provide tenants with short commute times to major employers and retail in Farmington Hills, Novi, Southfield, and Downtown Detroit.
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

The current ownership has already renovated all of the units at The Meadows at Farmington Hills.  Since the Property is the only pre-1980 apartment community in the Farmington Hills submarket with freshly renovated units, they have set themselves up as the more affordable option for potential tenants that are looking for a modern unit but cannot afford the rents at recently built apartment communities. 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.  The Sponsor 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 exterior and common area renovations and focus on realizing the benefits of the plan which were delayed by the COVID-19 pandemic pause.

CapEx Breakdown

Exterior Renovations $ Amount Per Unit
Resurface and Mill Parking Lot $500,000 $1,179
Touch up Paint Exterior $200,000 $472
Carport Restoration $150,000 $354
Deck Repair $200,000 $472
Landscaping $250,000 $590
Hallway Refresh $350,000 $825
Signage $50,000 $118
Exterior Lighting $75,000 $177
Split System - Furnaces $166,500 $393
Split System - A/C Condensers $124,800 $294
HVAC Magic Pack $67,200 $158
Hot Water Tanks $90,000 $212
Clubhouse $150,000 $354
Playground/grilling areas  $200,000 $472
Sliding Doors $70,000 $165
MISC/Contingency $1,000,000 $2,358
Concrete Replacement $200,000 $472
Plumbing Repairs $100,000 $236
Trash Receptacles $50,000 $118
Tuck Pointing $75,000 $177
Porch Repair $80,000 $189
Tree Removal $25,000 $59
Entry Doors $150,400 $355
Gutter Extenders/Maintenance $40,000 $94
Grading $50,000 $118
Total Renovation Costs $4,413,900 $10,410
Property
Property Details

The Meadows at Farmington Hills (the "Property") is a 424-unit multifamily community located in a suburb of Metro Detroit.  The Property is located in one of Michgan's most affluent counties, Oakland County, which has the highest income per capita of all Michigan counties per the 2019 Bureau of Economic Analysis report.  The Property benefits from short commute times to major employment hubs and retailers, and provides tenants with easy access to Metro Detroit's major highways, I-696 an I-275. There have been $13 million dollars of renovations put into the Property since 2017, which allows tenants to enjoy updated and modern units and amenities throughout the Property.

Unit Type # of Units AVG SF Avg Rent (In-Place) Rent PSF
1x1 91 939 $1,329 $1.42
2x1 47 960 $1,390 $1.45
2x2 286 1,039 $1,504 $1.45
Total/Averages 424 1,009 $1,454 $1.44
Comparables

Lease Comparables

  Spring Valley Diamond Forest Summit Averages Subject (Proforma)
Year Built 1986 1985 1980 1984 1975
Average Rental Rate $1,520 $1,384 $1,752 $1,552 $1,440
Average Unit Size 928 1065 1750 1248 1020
Average $/SF $1.64 $1.30 $1.00 $1.31 $1.42
           
$/Unit (1x1) $1,391 $1,170   $1,281 $1,326
SF (1x1) 820 880   850 926
$/SF (1x1) $1.70 $1.33   $1.51 $1.43
           
$/Unit (2x1)         $1,390
SF (2x1)         960
$/SF (2x1)         $1.45
           
$/Unit (2x2) $1,649 $1,597 $1,752 $1,666 $1,604
SF (2x2) 1,035 1,250 1,750 1,345 1,173
$/SF (2x2) $1.59 $1.28 $1.00 $1.29 $1.37

The Meadows at Farmington Hills offers two-bedroom units ranging from 960-1800 SF.

Values are averages based on unit type.

Sales Comparables

  Pavilion Court Village Green Townhomes Fountain Park Novi(1) Fountain Park Westland(1) Averages Subject
Date Sold 2/24/2021 8/19/2021 10/1/2021  10/1/2021    
Year Built 1986 1951 1988 1987 1978 1975
# of Units 377 374 264 448 366 424
Sale Price $66,500,000 $65,000,000 $57,500,000 $73,500,000 $65,625,000 $81,350,000
$/Unit $176,393 $173,797 $217,803 $164,063 $183,014 $191,863

(1) Properties 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 is a well-located property in Farmington Hills, Michigan. Farmington Hills is one of the largest upper middle-income communities in Southeast Michigan, located in Oakland County.  The Property's location on 12 Mile Road just west of Middlebelt Road and north of I-696, gives it terrific linkages to major employment hubs located off of I-696 and I-275 in Farmington Hills, Novi, and Southfield. Major area employers are located in and around the Southfield Town Center Complex, and along several large business parks that flank I-696 and I-275.  The Property is surrounded by regional shopping such as the retail cluster anchored by Twelve Oaks Mall in Novi, the regional retail area at 12 Mile and Telegraph, and the Orchard Lake Road Retail corridor. Farmington Hills schools are excellent, and the community recently transformed an adjacent high school into a 22 million dollar community recreation center called The Hawk

 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds(1) $ Amount $/Unit
Debt $68,973,000 $162,672
GP Investor Equity $3,554,000 $8,382
LP Investor Equity $14,725,000 $34,729
Senior Loan Reserved for CapEx $3,927,000 $9,262
Total Sources of Funds $91,179,000 $215,045
     
Uses of Funds(1) $ Amount $/Unit
Purchase Price(2) $81,350,000 $191,863
Legal Fee & Third Party Consulting Fees $707,000 $1,667
Acquisition Fee (2% of Purchase Price) $1,627,000 $3,837
Closing, Due Diligence, & Financing Fees(3) $1,357,000 $3,200
Tax, Insurance, Covid Reserves $974,000 $2,297
Initial Capital Plan Funds $4,414,000 $10,410
Working Capital & Reserves $750,000 $1,769
Total Uses of Funds $91,179,000 $215,045

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

(1) Values are rounded to the nearest thousand

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

(3) 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:  $72,900,000
  • 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.
      • 2nd extension requires written notice 30 days prior to expiration of extended term, an extension fee of 0.25%, interest reserve is resized, new rate cap to be purchased, and may be issued new DSCR.​

Modeled Refinance:

  • Refinance Date: 11/1/2024
  • Lender: Fannie Mae
  • Term: 7 Years
  • Estimated Proceeds: $77,945,000
  • 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 Farmington Hills 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   $6,998,763 $7,499,396 $7,905,417 $8,142,580 $8,386,857 $8,638,463 $8,897,617
Total Operating Expenses   $2,672,252  $2,818,919 $2,908,918 $2,996,186 $3,086,071 $3,178,653 $3,274,013
Net Operating Income   $4,326,511 $4,680,476 $4,996,499 $5,146,394 $5,300,786 $5,459,810 $5,623,604
                     
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow   ($18,279,000) $1,436,722 $1,569,968 $6,219,777 $1,869,720 $1,793,170 $1,847,161 $37,395,912
                     
LP Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Cash Flow   ($14,725,000) $1,157,379 $1,264,718 $5,010,461 $1,506,189 $1,444,522 $1,488,016 $23,297,281
                     
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) $480,197 $531,224 $2,311,883 $646,015 $616,700 $637,376 $11,005,108
                     
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) $3,430 $3,794 $16,513 $4,614 $4,405 $4,553 $78,608

(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 Proceeds 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 Service 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.*Only applies to equity raised through the RealtyMogul Platform

(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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