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Multifamily
Spaxel Anthony Ave OZ
Bronx, NY
Funded
100% funded
...
Spaxel Anthony Ave OZ
Bronx, NY
All Investments > Spaxel Anthony Ave OZ
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Overview
Spaxel Anthony Ave OZ
Spaxel Anthony Ave OZ is a 128-unit multifamily development property located in an Opportunity Zone in The Bronx, NY. This development will be an institutional quality, well-located asset in a market that is exhibiting persistent demand growth but is significantly lacking in projected new market rate and affordable multifamily supply over the next few years. ***Please note that this offering is only available to investors with funds eligible for Opportunity Zone tax benefits. The benefits associated with the opportunity zone investments may adjust as of 12/31/21. We recommend that you speak with your financial advisor to understand whether your investment qualifies and whether you will qualify for the enhanced benefits and the related eligibility requirements.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 7/2025
Minimum Investment 35000
Estimated Hold Period 10 Years
Investment Strategy Development
Investment Type Equity
# of Units 128
Construction Completion Date January 2025
Parking Ratio 0.5 Per Unit
Target Return on Cost 7.0%*
OZ Target IRR 20.9%*
OZ Target Equity Multiple 3.0X*
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
*Please note that this offering is only available to investors with funds eligible for Opportunity Zone tax benefits. The benefits associated with the opportunity zone investments may adjust as of 12/31/21. We recommend that you speak with your financial advisor to understand whether your investment qualifies and whether you will qualify for the enhanced benefits and the related eligibility requirements.
Experienced institutional quality sponsor with proven project business plan
Projected 10% cash on cash in addition to significant recapture of equity in Year 3 and full recapture in Year 5.
Efficient construction process driving attractive 7.0% Yield on Cost
Located in tax-advantaged Opportunity Zone driving significant additional after-tax upside: increasing tax-adjusted IRR from 18.5% to ~21% and boosting the Equity Multiple from 2.5X to ~3.0X.
Air Rights acquisition significantly brings down the land basis compared to comps
Massive supply and demand imbalance for qualified Section 8 housing
Attractive interest-only financing throughout hold period driving strong cash-on-cash returns
*Please note that this offering is only available to investors with funds eligible for Opportunity Zone tax benefits. The benefits associated with the opportunity zone investments may adjust as of 12/31/21. We recommend that you speak with your financial advisor to understand whether your investment qualifies and whether you will qualify for the enhanced benefits and the related eligibility requirements.
Experienced institutional quality sponsor with proven project business plan
Projected 10% cash on cash in addition to significant recapture of equity in Year 3 and full recapture in Year 5.
Efficient construction process driving attractive 7.0% Yield on Cost
Located in tax-advantaged Opportunity Zone driving significant additional after-tax upside: increasing tax-adjusted IRR from 18.5% to ~21% and boosting the Equity Multiple from 2.5X to ~3.0X.
Air Rights acquisition significantly brings down the land basis compared to comps
Massive supply and demand imbalance for qualified Section 8 housing
Attractive interest-only financing throughout hold period driving strong cash-on-cash returns
Contact Us
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Management
For more information, view the Sponsor's Investment Memorandum.
Spaxel

Spaxel is a vertically integrated development and investment firm with in-house acquisitions, development, and management capabilities powered by best-in-class, bleeding-edge technology.

Spaxel pursues opportunities across a range of strategies with a primary focus on value-add and new construction multi-family targeting moderate-income housing. They select growth markets across the United States with high employment and significant job and population growth, yet have unmet housing needs and rising rents relative to income.

Spaxel is led by Managing Partner Granit Gjonbalaj (previously Chief Development Officer at WeWork) and Chairman David Hamamoto (previously CEO and Chairman of Northstar Realty, CEO of Morgans Hotel Group, and Co-Head of Real Estate at Goldman Sachs).

The Spaxel principals have raised and managed billions of dollars across the capital stack and collectively developed and operated millions of square feet of residential and commercial assets with extensive ground-up, repositioning, and value-add experience.

Spaxel currently employs over 75 professionals and owns or is developing 3,000 units across New York, New Jersey, and Georgia with total project capitalization exceeding $700M. 

Sponsor Track Record

Spaxel Track Record

Property City, State Asset Type Acq Date Units or SF Project Capitalization Sale Price
2065 Ryer Ave Bronx, NY Ground-Up Multifamily March 2020 132 $35,148,406 n/a (Offer at 5.0% Cap Rate)
2047 Ryer Ave Bronx, NY Ground-Up Multifamily June 2020 102 $29,610,712 n/a
16 Wade Square Bronx, NY Ground-Up Multifamily June 2020 74 $31,058,370 n/a
3165 Villa Ave Bronx, NY Ground-Up Multifamily June 2020 57 $18,164,308 n/a
3168 Villa Ave Bronx, NY Ground-Up Multifamily June 2020 44 $11,319,138 n/a (Offer at 5.5% Cap Rate)
2710 Creston Ave Bronx, NY Ground-Up Multifamily Jan 2021 73 $28,023,448 n/a
2252 Aqueduct Ave Bronx, NY Ground-Up Multifamily March 2021 56 $25,549,645 n/a
1751 Monroe Bronx, NY Ground-Up Multifamily Feb 2021 50 $17,933,615 n/a
1695 Monroe Bronx, NY Ground-Up Multifamily Oct 2020 46 $15,236,341 n/a
East Orange Workforce Housing Portfolio East Orange, NJ Value-Add Multifamily  2021 - Various Dates 1,108 $237,821,222 n/a
Hills at East Cobb Marietta, GA Value-Add Multifamily  March 2021 266 $45,239,967 n/a
Spaulding Hills Peachtree Corners, GA Value-Add Multifamily  July 2021 378 $20,157,475 n/a

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

Website
Management Team
Management
Granit Gjonbalaj
CEO & Managing Partner

Prior to forming Spaxel, Granit was Chief Development Officer at WeWork where he was responsible for the entire real estate operation of the firm, leading a 3,000-person team that delivered ~50M square feet of innovative, flexible office space at 110 locations around the world. Prior to WeWork, Granit founded UA Builders, a preeminent tri-state multi-family and commercial construction firm, and Propco, a leading multi-family and affordable housing development company. Granit holds a BA in Finance and Investments from Baruch College.

Management
Jeff Dybas
Chief Investment Officer & Partner

Jeff has originated more than $5 billion of debt and equity investments over his 28 years in commercial real estate. Prior to joining Spaxel, Jeff was a Managing Director at Nuveen Real Estate and before that was a Senior Vice President at Starwood Property Trust where he originated mezzanine debt and preferred equity investments. Earlier in his career, Jeff was a Senior Vice President at Bank of America and at Anglo Irish Bank, where he originated, underwrote, and asset managed debt and equity investments. Before that, Jeff was a Senior Vice President at Marathon Asset Management where he focused primarily on commercial real estate equity investments. Jeff received a BA from the University of Virginia and an MBA from The Wharton School of Business at the University of Pennsylvania.

Management
Benjamin Siscovick
President & Partner

Ben was previously General Partner at IA Ventures, one of the top-performing venture capital funds of the past two decades. Ben was also an equities analyst and Head of Strategic Projects at Dayah Capital, the largest equity fund at Millennium Partners. In addition to his role on the investment team, Ben led Dayah’s data science and engineering teams. Ben is also a Venture Partner at i80 Group, a specialty finance/alternative credit firm, and an advisor to Designer Fund, an early-stage SF-based venture fund. Ben received his BA from the University of Pennsylvania and MBA from Columbia Business School.

Management
Glenn Palilla
CFO & Partner

Glenn is a Certified Public Accountant and serves as COO of Spaxel. Glenn was previously a Manager at KPMG, and more recently, owned and operated a tax and outsourced CFO consulting business. In addition to his role leading finance and accounting functions at Spaxel, Glenn oversees all operations as well as asset and property management.

Property
For more information, view the Sponsor's Investment Memorandum.

Spaxel has acquired 3 land parcels at 1824-1828 Anthony Ave. In addition, Spaxel was able to secure and purchase residual air rights from the adjacent property allowing them to increase the unit count from 78 to 128 units, significantly reducing land cost basis from $51,923/unit to $35,352/unit, representing a 32% reduction in land basis/unit.  In the proposed development, there are 66 studios, 12 one-bedroom, 23 two-bedroom, and 27 three-bedroom units, with the larger units significantly increasing potential revenues at rents guaranteed through the Section 8 Voucher program.

Unit Mix # of Units Avg SF/Unit 2021 Avg Rent 2021 Rent per SF 2025 Avg Rent 2025 Rent per SF
0x1 66 400 $1,794 $4.49 $2,018 $5.05
1x1 12 500 $1,824 $3.65 $2,052 $4.10
2x1 23 700 $2,057 $2.94 $2,314 $3.31
3x1 27 850 $2,605 $3.06 $2,930 $3.45
Total/Averages 128 558 $2,015 $3.61 $2,267 $4.06
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

Address Unit Type Rent
Subject  Studio $1,794
2030 Ryer Ave Studio $1,814
2010 Walton Ave Studio $1,824
1407 Sheridan Ave Studio $1,900
1378 College Ave Studio $1,900
1975 Lafontaine Ave Studio $1,930
Average 4.2% discount to market $1,874
     
Address Unit Type Rent
Subject  1 bedroom $1,824
21020 Tiebout Ave 1 bedroom $1,800
2080 Ryer Ave 1 bedroom $1,800
1900 Morris Ave 1 bedroom $1,900
1872 Washington Ave 1 bedroom $1,900
1890 Walton Ave 1 bedroom $1,900
Average 1.9% discount to market $1,860
     
Address Unit Type Rent
Subject  2 bedroom $2,057
1687 Anthony Ave 2 bedroom $2,050
1661 Topping Ave 2 bedroom $2,057
2080 Valentine Ave 2 bedroom $2,100
2105 Ryer Ave 2 bedroom $2,100
2080 Ryer Ave 2 bedroom $2,150
1770 Morris Ave 2 bedroom $2,405
1513 Findlay Ave 2 bedroom $2,450
Average 6.0% discount to market $2,187
     
Address Unit Type Rent
Subject  3 Bedroom $2,605
1665 Clay Ave 3 Bedroom $2,550
1766 Topping Ave 3 Bedroom $2,650
1759 Topping Ave 3 Bedroom $2,700
1898 Belmont Ave 3 Bedroom $2,850
1892 Arthur Ave 3 Bedroom $2,850
2058 Arthur Ave 3 Bedroom $2,850
Average 5.0% discount to market $2,742

Sales Comparables

  1228 Washington Avenue 1181 Sherman Avenue 428 East 148th Street 1072 University Avenue 3188 Riverdale Ave 1417 Longfellow Ave 1193 Fulton Ave Phoenix Realty S8 Portfolio 265 Cherry Street Averages Spaxel Anthony Ave OZ
Date Nov '20 Nov '19 Dec '19 Apr '19 May '18 Apr '18 Jul '18 Oct '21 Oct '20   May '24
Submarket Bronx Bronx Bronx Bronx Bronx Bronx Bronx Bronx Manhattan   Bronx
Sale Date November-20 November-19 December-19 April-19 May-18 April-18 July-18 October-21 October-20 October-19 December-31
SF 34,960 30,953 20,672 6,400 29,309 28,255 24,542 N/A N/A 25,013 112,759
Units 50 43 24 10 14 39 25 362 500 119 128
Sale Price $13,000,000 $12,250,000 $7,500,000 $2,200,000 $8,100,000 $9,880,000 $12,300,000 $96,000,000 $435,000,000 $66,247,778 $58,078,934
$/Unit $260,000 $284,884 $312,500 $220,000 $578,571 $253,333 $492,000 $265,193 $870,000 $392,942 $453,742
$/SF $582.00 $582.00 $582.00 $730.00 $592.00 $688.00 $430.00 $801.00 $524.00 $612.33 $515.07
Cap Rate Pre-TCO Sale (OZ) High Vacancy Not Reported High Vacancy 4.20% Affordable - Vacant Affordable - Vacant S8 Portfolio - Not Reported S8 Portfolio ~4.25%  4.20% 5.50%
Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $28,223,021 $220,492
GP Investor Equity $3,025,581 $23,637
LP Investor Equity $9,070,000 $70,859
Total Sources of Funds $40,318,602 $314,989
     
Uses of Funds   $/Unit
Purchase Price $5,129,474 $40,074
Hard Costs $25,751,630 $201,185
Soft Costs $5,737,942 $44,828
Closing Costs(1) $3,699,555 $28,903
Total Uses of Funds $40,318,602 $314,989

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

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: TBD
  • Term: 3 Years
  • Loan-to-Cost: 70.0%
  • Estimated Proceeds: $28,223,643
  • Interest Type: Floating
  • Spread above one-month LIBOR: 5.0%
  • Interest-Only Period: 48 Months
  • Amortization: 30 Years
  • Prepayment Terms: TBD
  • Extension Requirement: TBD

Modeled Refinance #1

  • Lender: TBD
  • Term: 2 Years
  • Estimated Proceeds: $36,290,843
  • Interest Type: Fixed
  • Annual Interest Rate: 3.5%
  • Interest-Only Period: 36 Months
  • Amortization: 30 Years

Modeled Refinance #2

  • Lender: TBD
  • Term: 5 Years
  • Estimated Proceeds: $46,200,000
  • Interest Type: Fixed
  • Annual Interest Rate: 3.0%
  • Interest-Only Period: 60 Months
  • Amortization: 30 Years

There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging.  Leveraging increases the risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

Please see the Project Summary in the Documents section for more information regarding financing assumptions and timing.

Distributions

Spaxel intends to make distributions from Anthony Investors QOZF, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 10.0% IRR;
  2. 80% / 20% (80% to Investors / 20% to Promoted/Carried Interest) of excess cash flow to a 15.0% IRR;
  3. 70% / 30% (70% to Investors / 30% to Promote/Carried Interest) of excess cash flow thereafter.

Spaxel 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 July 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Spaxel, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Spaxel 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 Year 8 Year 9 Year 10
Effective Gross Revenue   $0 $0 $0 $2,912,434 $3,559,674 $3,625,768 $3,693,235 $3,762,106 $3,832,415 $3,904,194
Total Operating Expenses   $0 $0 $0 ($555,338) ($684,794) ($703,710) ($723,170) ($743,188) ($763,781) ($784,967)
Net Operating Income   $0 $0 $0 $2,357,095 $2,874,879 $2,922,058 $2,970,066 $3,018,919 $3,068,634 $3,119,228
Development Costs   ($207,500) ($11,551,454) ($11,745,694) ($11,706,137) ($1,418,261)            
Disposition                        $55,755,776 
Unlevered Cash Flow   ($207,500) ($11,551,454) ($11,745,694) ($11,706,137)  $938,834   $2,874,879   $2,922,058   $2,970,066   $3,018,919   $3,068,634   $58,875,004 
                           
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Debt Funding     $0 $2,060,168 $9,146,567 $11,706,137 $9,283,977 $0 $9,566,759 $0 $0 $0 ($46,200,000)
Net Cash Flow ($207,500) ($9,491,286) ($2,599,127) $0 $10,011,138 $1,604,843 $11,102,816 $1,584,066 $1,632,919 $1,682,634 $11,289,004
                           
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow $0 ($4,680,000) $0 $0 $3,564,881 $554,816 $3,570,661 $371,868 $384,723 $397,804 $2,954,354
                           
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 Year 8 Year 9 Year 10
Net Cash Flow $0 ($50,000) $0 $0 $38,086 $5,927 $38,148 $3,972 $4,110 $4,250 $31,563

(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. 

(2) The Project also benefits from an opportunity zone designation, unlocking additional tax benefits to investors yielding an OZ adjusted IRR of 20.7% and 3.0X Equity Multiple.  

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 Spaxel's materials for details. The following fees and compensation will be paid(2)(3)(4)(5):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.0% of Purchase Price Spaxel Capitalized Budget
Development Fee 3.0% of Budget Spaxel Capitalized Budget
General Contractor Fee(1) 8.0% of Hard Costs Spaxel Affiliate Capitalized Budget
Property Management Fee 4.0% of EGI Spaxel Cash Flows
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Administrative Services Fee 1.0% of Equity(2) RM Admin, LLC(5) Cash Flow

(1) An affiliate of the Spaxel Member will be retained as the general contractor for the Project pursuant to guaranteed maximum price contracts with the following markups: 10% for general conditions; 8% for the general contractor’s fee

(2) Only applies to equity raised through the RealtyMogul Platform

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

(4) 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.

(5) 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.

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $28,223,021 $220,492
GP Investor Equity $3,025,581 $23,637
LP Investor Equity $9,070,000 $70,859
Total Sources of Funds $40,318,602 $314,989
     
Uses of Funds   $/Unit
Purchase Price $5,129,474 $40,074
Hard Costs $25,751,630 $201,185
Soft Costs $5,737,942 $44,828
Closing Costs(1) $3,699,555 $28,903
Total Uses of Funds $40,318,602 $314,989

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

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: TBD
  • Term: 3 Years
  • Loan-to-Cost: 70.0%
  • Estimated Proceeds: $28,223,643
  • Interest Type: Floating
  • Spread above one-month LIBOR: 5.0%
  • Interest-Only Period: 48 Months
  • Amortization: 30 Years
  • Prepayment Terms: TBD
  • Extension Requirement: TBD

Modeled Refinance #1

  • Lender: TBD
  • Term: 2 Years
  • Estimated Proceeds: $36,290,843
  • Interest Type: Fixed
  • Annual Interest Rate: 3.5%
  • Interest-Only Period: 36 Months
  • Amortization: 30 Years

Modeled Refinance #2

  • Lender: TBD
  • Term: 5 Years
  • Estimated Proceeds: $46,200,000
  • Interest Type: Fixed
  • Annual Interest Rate: 3.0%
  • Interest-Only Period: 60 Months
  • Amortization: 30 Years

There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging.  Leveraging increases the risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

Please see the Project Summary in the Documents section for more information regarding financing assumptions and timing.

Distributions

Spaxel intends to make distributions from Anthony Investors QOZF, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 10.0% IRR;
  2. 80% / 20% (80% to Investors / 20% to Promoted/Carried Interest) of excess cash flow to a 15.0% IRR;
  3. 70% / 30% (70% to Investors / 30% to Promote/Carried Interest) of excess cash flow thereafter.

Spaxel 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 July 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Spaxel, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Spaxel 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 Year 8 Year 9 Year 10
Effective Gross Revenue   $0 $0 $0 $2,912,434 $3,559,674 $3,625,768 $3,693,235 $3,762,106 $3,832,415 $3,904,194
Total Operating Expenses   $0 $0 $0 ($555,338) ($684,794) ($703,710) ($723,170) ($743,188) ($763,781) ($784,967)
Net Operating Income   $0 $0 $0 $2,357,095 $2,874,879 $2,922,058 $2,970,066 $3,018,919 $3,068,634 $3,119,228
Development Costs   ($207,500) ($11,551,454) ($11,745,694) ($11,706,137) ($1,418,261)            
Disposition                        $55,755,776 
Unlevered Cash Flow   ($207,500) ($11,551,454) ($11,745,694) ($11,706,137)  $938,834   $2,874,879   $2,922,058   $2,970,066   $3,018,919   $3,068,634   $58,875,004 
                           
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Debt Funding     $0 $2,060,168 $9,146,567 $11,706,137 $9,283,977 $0 $9,566,759 $0 $0 $0 ($46,200,000)
Net Cash Flow ($207,500) ($9,491,286) ($2,599,127) $0 $10,011,138 $1,604,843 $11,102,816 $1,584,066 $1,632,919 $1,682,634 $11,289,004
                           
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow $0 ($4,680,000) $0 $0 $3,564,881 $554,816 $3,570,661 $371,868 $384,723 $397,804 $2,954,354
                           
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 Year 8 Year 9 Year 10
Net Cash Flow $0 ($50,000) $0 $0 $38,086 $5,927 $38,148 $3,972 $4,110 $4,250 $31,563

(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. 

(2) The Project also benefits from an opportunity zone designation, unlocking additional tax benefits to investors yielding an OZ adjusted IRR of 20.7% and 3.0X Equity Multiple.  

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 Spaxel's materials for details. The following fees and compensation will be paid(2)(3)(4)(5):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.0% of Purchase Price Spaxel Capitalized Budget
Development Fee 3.0% of Budget Spaxel Capitalized Budget
General Contractor Fee(1) 8.0% of Hard Costs Spaxel Affiliate Capitalized Budget
Property Management Fee 4.0% of EGI Spaxel Cash Flows
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Administrative Services Fee 1.0% of Equity(2) RM Admin, LLC(5) Cash Flow

(1) An affiliate of the Spaxel Member will be retained as the general contractor for the Project pursuant to guaranteed maximum price contracts with the following markups: 10% for general conditions; 8% for the general contractor’s fee

(2) Only applies to equity raised through the RealtyMogul Platform

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

(4) 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.

(5) 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.

Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. 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. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering 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 offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership 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 Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to 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 to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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