Staff Menu (IO ID#: 189574):
Chesapeake Landing Apartments
Dayton, OH
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100% funded
Offered By Birge & Held Asset Management
16.2%* TARGET IRR 16.2%-%
Estimated Hold Period 7 years
Estimated First Distribution 9/2016
*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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Property at a glance
Year Built 1986
Number of Units 256
Current Occupancy 93%
Parking Spaces 516 spaces (2.02/unit)
Amenities Pool, detached garages, tanning bed, volleyball court, fitness center, washer and dryer hookups, balconies/patios, wood burning fireplaces, microwaves, walk-in closets, and a lake on the property.
Acquisition Price


Investment Highlights
In-Place Cash Flow with Upside Potential
Well Located Near Demand Drivers
Experienced Multi-family Sponsor
Cumulative Distributions

Birge & Held Asset Management

Birge & Held is a national apartment real estate, private equity and investment firm located in Carmel, Indiana.  In an effort to take advantage of strategic real estate acquisition opportunities in the distressed real estate marketplace, J. Taggart Birge and Andrew J. Held started what is now Birge & Held in 2008.  Birge & Held has acquired and managed over $400,000,000 in multi-family assets across the country and currently employs over 80 professionals, per the Sponsor.  Through private equity and creative debt structures, Birge & Held continues to grow its portfolio of assets.  For capital investors who seek to identify and pursue apartment real estate opportunities, Birge & Held provides an experienced operating partner.
  • Tag Birge - CEO
  • Andrew Held - President & COO
Tag Birge - CEO

Mr. Birge has been involved in commercial development and financing since 1997. He graduated cum laude from Indiana University in 1993 (BA – Political Science). In 1997, he received his JD from the University of Virginia and joined Bose McKinney & Evans, LLP, Indianapolis, Indiana, as an associate, becoming a partner in the real estate group in 2004. His legal practice focused on office and industrial development representing Duke Realty Corporation on numerous transactions around the United States. As an attorney, Mr. Birge was ranked by his peers as one the best real estate attorneys in the State of Indiana. 

In 2004, Mr. Birge withdrew from the partnership of Bose McKinney & Evans and joined Lauth Property Group. While at Lauth Property Group, Mr. Birge developed approximately $200 million worth of office and health care buildings around the country. Initially, Mr. Birge ran the Midwest office and health care development for Lauth Property Group and in 2007 assumed responsibility for all of Lauth’s medical development in the United States. During his tenure at Lauth, they were named a top ten developer of medical office buildings as tracked by Modern Healthcare. 

Since 2008, Mr. Birge has overseen the acquisition, financing and management of BH's $230 million in multifamily assets. Mr. Birge currently serves on the Board of Directors of Bowen Engineering, the Sports Corporation Board, Heart of Gold Charity Board, and the Orchard School Board of Trustees.

Andrew Held - President & COO

Mr. Held has been involved in commercial and residential development and financing since 2003. He graduated from Indiana University in 1999 (BA – History) where he was a student-athlete and received academic All-American honors. In 2002, he received his JD from the Indiana University School of Law and practiced with the law firms of Hackman Hullet & Cracraft and Bose McKinney & Evans. His practice areas focused on commercial and residential real estate development, handling acquisitions, leasing, financing and dispositions for many of the largest commercial development and construction companies in the United States.

In 2007, Mr. Held received his MBA with a finance focus from Butler University. Since 2008, Mr. Held has overseen BH’s acquisition, financing and management of the company’s $230 million in multifamily assets. Mr. Held currently serves as the President of the Penrod Society focused on raising millions of dollars to serve the Indiana cultural and arts community. He was recently named to the Indianapolis Business Journal’s 2013 “Forty Under Forty” Class.

Track Record

Currently Owned Assets
Property Name Location Number of Units Date Acquired Total Cost Basis
Aurum Indianapolis, IN 208 2/12/13 $13,940,593
Beacon Hill Apartments Indianapolis, IN 14 4/1/13 $1,000,000
Clinton Estates Indianapolis, IN 184 7/1/13 $13,553,680
College Court Condominiums Frankfort, IN 48 11/25/13 $1,800,000
Cypress Square Apartments Indianapolis, IN 188 3/27/14 $12,350,000
Eagle Creek Apartments Muncie, IN 67 4/25/14 $5,279,925
Echo Ridge Apartments Muncie, IN 36 4/25/14 $2,376,609
Elston Point Apartments Elkhart, IN 76 10/16/14 $3,550,000
English Village Apartments Elkhart, IN 95 10/16/14 $3,300,000
Greenleaf Hunter's Pond Apartments Indianapolis, IN 208 10/22/14 $8,600,000
Kensington/Chesterfield South Bend, IN 60 11/7/14 $6,000,000
Parc Bordeaux Apartments Bloomington, IN 62 11/7/14 $4,000,000
Pheasant Run Apartments Indianapolis, IN 208 12/9/14 $8,700,000
Railway Manor Bloomington, IN 32 8/31/15 $3,575,000
Regency Park Indianapolis, IN 632 9/18/15 $45,000,000
The Arbors Bloomington, IN 24 10/6/15 $2,732,000
The Oaks of Eagle Creek Apartments Indianapolis, IN 304 12/22/15 $15,322,000
Walnut Springs Apartments Lafayette, IN 62 1/19/16 $3,882,000
Woodwind Apartments Lafayette, IN 44 1/28/16 $2,220,000
The Villager Centerville, OH 276 2/19/16 $22,900,000
Chesapeake Landing Centerville, OH 256 4/28/16 $22,110,000
Beechmill Apartments Indianapolis, IN 256 5/6/16 $19,175,000
Trails at Lakeside Apartments Indianapolis, IN 208 9/8/16 $18,100,000
Lakeshore Apartments Indianapolis, IN 740 9/15/16 $84,900,000
Cross Creek Apartments Indianapolis, IN 208 1/9/17 $14,725,000
Total   4,496   $339,091,808
Sold Assets
Property Name Location Number of Units Date Acquired Total Cost Basis Sale Price
Harborview Condominiums San Diego, CA 81 3/1/09  $20,406,491 $22,000,000
Bear Valley Apartments San Diego, CA 24 11/8/10  $4,200,000 $4,900,000
Walnut Manor Apartments Muncie, IN 120 11/30/11  $2,471,700 $4,850,000
Centro Apartments San Diego, CA 60 12/19/11  $11,213,764 $15,800,000
Palm Valley Apartments Goodyear, AZ 264 4/1/12  $22,925,000 $27,200,000
Fox Brook Apartments Muncie, IN 41 4/2/12  $1,275,000 $1,900,000
Total   590   $62,491,955 $76,650,000
Total Currently Owned and Sold   5,086   $401,583,763 $76,650,000

*Performance information provided by the Sponsor

Business Plan

In this transaction, investors will invest in Realty Mogul 62, LLC.  Realty Mogul 62, LLC will subsequently invest in BH Chesapeake Indy, LLC, a limited liability company that will (through another wholly-owned entity) acquire, renovate, and manage the Property. ​

Birge & Held Asset Management (the "Sponsor") believes that rents at the Property are currently below market, and plans to implement approximately $1,652,450 of interior and exterior renovations to achieve rental increases averaging $112/unit, a 15% increase.  Interior renovations will include painted cabinets, new kitchen and bath hardware, new flooring in the common areas, upgraded countertops and sinks, and new panel doors.  Exterior and common area improvements will include clubhouse remodeling, new roofs on all buildings, new signage throughout the property, and a new dog park. 

The Sponsor also intends to enhance the overall operations of the Property through improved management and marketing efforts, drawing from their ownership experience of over 3,000 multifamily units to date.

Budgeted Capital Improvements
Interior   Exterior
Paint Cabinets $128,000 $500/U   Clubhouse/ Fitness Center Remodeling $41,012 $160/U
Kitchen/Bath Hardware $64,000 $250/U   Signage $20,000 $78/U
LVT Flooring in Common Area $256,000 $1,000/U   New Roofs $464,238 $1,813/U
Panel Doors & Hardware $128,000 $500/U   Dog Park $20,000 $78/U
Upgrade Countertops & Sink $531,200 $2,075/U        
Total Cost of Interior: $1,107,200 $4,325/U   Total Cost of Exterior: $545,250 $2,130/U


Property, along with Birge & Held Asset Management, LLC (the "Sponsor"), is providing the opportunity to invest in the acquisition and renovation of a 256-unit multi-family property located in Dayton, OH (the "Property").

The primary objective of this investment is to acquire the Property, perform interior and exterior renovations, bring rents up to market, and sell the Property within approximately seven (7) years. 

The Sponsor sees this investment as an opportunity to capitalize on an under managed asset that is currently leasing at below market rents.  Comparable properties in the area suggest that rents at the Property are currently an average of $122/unit below market.  The Sponsor plans to implement a $1.65M ($6.5k/unit) renovation that is expected to increase rents by 15% to bring them in line with the market.

Property Details

Chesapeake Landing is a 256-unit garden style multi-family community that is currently 93% occupied.  The property was built in 1986 and consists of one bedroom/one bathroom, one bedroom/one bathroom with a den, and two bedroom/two bathroom unit types. Units range in size from 455-749 square feet for a one bedroom to 1,000 square feet for a two bedroom, averaging 804 square feet. Community amenities include a pool, detached garages, a tanning bed, a volleyball court, fitness center, washer and dryer hookups, balconies/patios, wood burning fireplaces, microwaves, walk-in closets, and a lake on the property, along with 516 parking spaces.

       Unit Mix
Unit Type Floorplan Name # Units % of Total Unit SF Avg. In-Place Rent Avg. In-Place Rent/ SF
1 Bed / 1 Bath The Junior 40 15.6% 455 $586 $1.29
1 Bed / 1 Bath The One Bedroom 66 25.8% 676 $669 $0.99
1 Bed / 1 Bath The One Bedroom + 6 2.3% 730 $694 $0.95
1 Bed / 1 Bath, Den The Den 36 14.1% 848 $759 $0.90
2 Bed / 2 Bath The Two Bedroom 108 42.2% 1000 $790 $0.79
Total/ Average   256 100.0% 804 $720 $0.94


Rent Comps
        1 Bed / 1 Bath 2 Bed / 1 Bath* 2 Bed / 2 Bath
Property Miles From Subject Year Built Total Units Rents PSF Rents PSF Rents PSF
Arbors of Yankee Vineyards 0.53 1994 140 $720 $0.98 $800 $0.95 $910 $0.90
Ashton Glen 2.32 1997 108 $783 $1.04 $910 $0.87 - -
Harbour Club 2.78 1988 184 $725 $1.01 $775 $0.92 - -
Normandy Club 1.72 1988 176 $820 $1.09 - - $952 $0.95
Spinnaker Cove 0.40 1993 154 $705 $0.96 $775 $0.92 $890 $0.88
Washington Place 0.65 2000 336 $675 $1.16 $879 $0.94 $1,063 $0.93
Average   1993 183 $738 $1.04 $828 $0.92 $954 $0.92
Subject   1986 256 $640 $1.07 $759 $0.90 $790 $0.79
Discount to Comp Set       $98   $69   $164  
Weighted Average Discount to Comp Set/Unit $122            
*At the subject property, these units are 1 Bed/ 1 Bath units that include a den, making them comparable to the 2 Bed / 1 Bath comp units shown above.

Rent Comparable information above was obtained from Axiometrics and the Sponsor

Sales Comps
Name City # Of Units Year Built Sale Date Sale Price Price Per Unit Cap Rate
St Andrews at Little Turtle Westerville, OH 102 1986 Mar-14 $8,165,000 $80,049 7.35%
Governours Square/Toulon Columbus, OH 820 1967 Oct-14 $66,691,100 $81,331 6.68%
Hickory Creek Columbus, OH 372 1988 Oct-14 $27,589,600 $74,166 7.06%
Ashton Glen Centerville, OH 108 1997 Dec-12 $7,500,000 $69,444 6.23%
Mallard Crossing Apartments Loveland, OH 350 1997 Dec-13 $39,800,000 $113,714 5.39%
The Villager Centerville, OH 276 1968 Feb-16 $20,300,000 $73,551 6.94%
Total / Average   338 1987   $28,340,950 $83,849 6.61%
Subject    256 1986   $20,000,000 $78,125 6.91%

Sales Comparable information above was obtained from Real Capital Analytics and the Sponsor


Chesapeake Landing is located in the suburb of Centerville, south of Dayton, OH, less than half of a mile south of I-675 (Dayton's circle freeway) and 13 miles (about 20 minutes) from downtown Dayton.​ According to the Sponsor, Centerville is well known for high-end residential developments and excellent schools. One and a half miles northeast of Chesapeake Landing is the 1.44M square foot Dayton Mall, which is the region's largest shopping mall. Chesapeake Landing is nine miles southwest of The Greene, a popular dining and entertainment destination whose 100+ stores attract more than 500,000 visitors per month. Centerville was awarded a nine out of ten rating by, an independent non-profit organization and national source of school information for millions of parents. According to the organization, the top four highest rated schools in Centerville are all located less than three and a half miles from the subject Property.

Market Overview 

According to the U.S. Census Bureau, the Dayton MSA is estimated to be inhabited by 800,909 residents, as of July 1, 2015. Dayton is home to Miami Valley Hospital, University of Dayton, GE Aviation's new $51 million research center, and the University of Dayton Research Institute.  Other major employers include Limited Brands (Victoria's Secret catalog fulfillment center), Reynolds and Reynolds, Kettering Medical Center, Miami Valley Hospital South, Wright State University, and Wright Patterson Air Force Base, which is located 15 minutes to the east by car and is Ohio's largest single-site employer with over 27,000 employees.

Submarket Overview

Out of the 120 markets ranked by Axiometrics nationally, Dayton, OH Metro Area was ninth for quarterly effective rent growth, and 25th for annual effective rent growth for the fourth quarter of 2015.  Axiometrics predicts a 4.31% average vacancy rate over the next five years for the submarket, along with an effective annual rent growth of 3.51% over the same period.

Axiometrics Submarket Rent Growth and Vacancy Rate
  2016 2017 2018 2019 2020
Rent Growth 5.12% 4.31% 3.26% 2.63% 2.24%
  2016 2017 2018 2019 2020
Vacancy Rate 4.18% 3.50% 3.85% 4.53% 5.48%

Demographic Information

Demographics 1 Mile 3 Miles 5 Miles
Population (2015)   6,467 60,752 150,295
Growth (2010-2015) -0.39% -1.11% -0.36%
Growth (2015-2020) -0.53% -0.71% -0.12%
Median HH Income (2015)  $48,769 $58,316 $59,536

Demographic information above was obtained from CoStar

Sources & Uses

Total Capitalization
Sources of Funds  
Senior Loan $15,420,000
Equity $6,690,000
Total Sources of Funds $22,110,000
Uses of Funds  
Purchase Price $20,000,000
Reserves/Third Party Reports/Other Fees $1,495,350
Sponsor Acquisition/Guarantor Fee $300,000
Financing Costs $145,650
Working Capital/PCNA Contingency $64,000
North Capital Broker-Dealer Fee $60,000
Due Diligence, Legal, & Closing Costs $45,000
Total Uses of Funds $22,110,000
Debt Assumptions

The projected terms of the debt financing are as follows:

  • Lender: Fannie Mae
  • Principal Balance: $15,420,000
  • Term: 12 Years
  • Rate: 4.46%
  • Amortization: 30 Years
  • Prepayment Penalty: Yield Maintenance

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All 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.


BH Chesapeake Indy, LLC will make distributions to Realty Mogul 62, LLC as follows: an 8% cumulative, non-compounding preferred return, followed by a 70/30 split (70% to members, 30% to Sponsor) of excess operating cash flows. Such distributions will not decrease member's capital contribution balance. Upon sale or refinance, available proceeds will be distributed to pay any unpaid accrued preferred return, followed by a return of member's capital contribution balance, followed by a 70/30 split (70% to members, 30% to Sponsor) of excess proceeds.  Realty Mogul 62, LLC will distribute 100% of its share of excess cash flow (after expenses) to the members of Realty Mogul 62, LLC (the investors).  The manager of Realty Mogul 62, LLC will receive a portion (up to 10%) of the Sponsor's promote interest.  Depreciation and tax losses will be allocated based on the promote structure, i.e. 70/30 (70% to members, 30% to Sponsor).

Order of Distributions to Realty Mogul 62, LLC (Operating Income)

  • First, to investors for any accumulated unpaid preferred return
  • Second, a cumulative non-compounded 8% annual preferred return
  • Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor

Order of Distributions to Realty Mogul 62, LLC (Sales or Refinance Proceeds)

  • First, to investors for any accumulated unpaid preferred return
  • Second, return of Capital Contribution
  • Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor

Distributions are projected to start in September 2016 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Projections
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Effective Gross Revenue $2,624,350 $2,829,650 $3,085,737 $3,178,309 $3,273,659 $3,371,869 $3,473,025
Total Operating Expenses $1,056,054 $1,092,798 $1,176,000 $1,254,849 $1,336,064 $1,419,715 $1,462,307
Net Operating Income $1,491,496 $1,660,052 $1,832,938 $1,846,660 $1,860,795 $1,875,353 $1,933,918
Distributions to Realty Mogul 62, LLC Investors $102,500 $124,191 $181,842 $169,910 $172,128 $174,413 $2,786,094

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

Type of Fee Amount of Fee Received By Paid From Notes
One-Time Fees:
Acquisition/ Guarantor Fee $300,000 Sponsor Capitalized Equity Contribution The greater of 1.48% of the property purchase price or $300,000
Broker-Dealer Fee The greater of 4.0% or $50,000 North Capital (1) Capitalized Equity Contribution 4.0% based on the amount of equity invested by Realty Mogul 62, LLC
Recurring Fees:
Property Management Fee 4.0% of effective gross revenues, plus $3.00 per unit per month Sponsor Operating Cash Flow 4.0% of effective gross revenues, plus an additional $3.00 per unit per month for the use of the Sponsor's centralized office resources
Management and Administrative Fee 1.0% of amount invested in Realty Mogul 62, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 62, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

(2) Fees may be deferred to reduce impact to investor distributions

The above presentation is based upon information supplied by the Sponsor or others.  Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 62, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

Offering Documentation

Apartment Complex Competition Risks

Competition in the Property’s local market area is significant and may affect the Property’s occupancy levels, rental rates and operating expenses.  The Property will compete with other residential alternatives to attract tenants, including other apartment units that are available for rent, as well as new and existing apartment residences. If development of apartment complexes by other operators were to increase, due to increases in availability of funds for investment or other reasons, then competition with the Property could intensify.  Competitive apartment residences in a particular area could adversely affect the ability of Sponsor to sell the property, rent its units as necessary to maintain occupancy, and/or to increase or maintain unit rental rates.

Renovation Risk

The Sponsor intends to renovate the Property in order to be able to demand the significantly higher rents it is projecting to receive at the Property following such renovations. Such renovations are expected to cost approximately $6,455 per unit and are projected to take around 30 months to complete.  There can be no assurance that such renovations will be consummated on a timely basis or that such work will not materially adversely affect other aspects of the operation of the Property.  Any delays or adverse effects of such renovation work could adversely affect the Property’s financial results or business operations and thus the value of the Realty Mogul 62, LLC's investment.  

Following the renovations, the sponsor expects to be able to rent the apartment units at average rates that would represent an approximate 15% increase over the existing rental rates.  Although the Sponsor believes that comparable properties are currently achieving rental rates that are greater than the future rental rates expected from the Property, there can be no assurance that such increased rental rates will be achieved.  Failure to realize such increased rental rates could adversely affect the Property’s financial results or business operations and thus the value of the Realty Mogul 62, LLC’s investment.

Tenants' Loss of Revenues Could Reduce the Sponsor's Cash Flow

Tenants of the Property may encounter significant macroeconomic, governmental and competitive forces.  Adverse changes in consumer spending or consumer preferences for particular goods, services or store-based retailing could severely impact these tenants’ ability to pay rent.  The default, financial distress, bankruptcy or liquidation of one or more of the Property’s tenants could cause substantial vacancies, which would likely reduce the Sponsor’s revenues, increase property expenses and could decrease the value of the Property.  Upon the expiration of a lease, the tenant may choose not to renew the lease and/or the Sponsor may not be able to re-lease the vacant space at a comparable lease rate or without incurring additional expenditures in connection with such renewal or re-leasing.

Vacancies and Tenant Defaults May Reduce the Property's Revenues

A vacancy or default of a tenant on its rent will cause the Sponsor to lose the revenue from that unit and, if enough effective vacancies occur, it could cause the Sponsor to have to find an alternative source of revenue to meet any loan payments and other operating expenses for a particular property and it may not be possible to have to find a viable alternative source of revenue.  If the company managing the investment property does not employ sufficiently aggressive marketing campaigns and/or lease incentive programs, vacancies may increase and an investment in Realty Mogul 62, LLC may be adversely affected.

Ohio Tornado Risk

Dayton, Ohio lies in the western part of the state of Ohio, in an area which can be subject to frequent and sometimes destructive tornadoes.  If no tornado insurance is available at reasonable rates, or if no insurance is otherwise obtained, a tornado could have a material adverse impact on the Sponsor, and thus Realty Mogul 62, LLC.  Further, even if tornado insurance is obtained, there can be no assurance that a tornado will not cause significant damage to the Property or otherwise interrupt its operations in a manner not covered by the Property’s insurance, in which case the business and financial condition of the Sponsor may be adversely effected.

Percentage of Depreciation and Tax Losses

Depreciation and tax losses are generally passed through to the members of an entity on a pro rata basis.  For this transaction, Realty Mogul 62, LLC and the Sponsor have agreed that the depreciation and tax losses shall be allocated on the following basis: (i) seventy (70%) percent to the members, which includes Realty Mogul 62, LLC, and (ii) Thirty (30%) percent to those entities and/or individuals who are entitled to any promote, which currently includes RM Manager, LLC.  Any deprecation and/or tax losses that are passed through to RM Manager, LLC will not be passed along to investors.   

Forward-Looking Statements

Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated”, “projected”, “forecasted”, “estimated”, “prospective”, “believes”, “expects”, “plans”, “future”, “intends”, “should”, “can”, “could”, “might”, “potential”, “continue”, “may”, “will” and similar expressions to identify these forward-looking statements

Illiquid Investment - Transfer Restrictions & No Public Market

The transferability of membership interests in Realty Mogul 62, LLC are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Uncertainty Surrounding Future Sales Price

There is risk associated with the Sponsor being unable to sell the Property as projected.

Interest Rate Risk

The Federal Reserve has methodically reduced the amount of stimulus it was earlier injecting into the U.S. economy, and has signaled that increases in the federal funds rate may be forthcoming. This could potentially lead to rising interest rates offered by other lenders and could have a negative effect on the future value of the Property (since higher loan interest rates might mean that potential buyers would face proportionately higher debt service expenses).

Mortgage Risk

The Sponsor has a signed term sheet with a lender to provide the debt financing for the acquisition of the Property, but there can be no assurance that the lender will complete financing on the rates and terms included in the underwriting being presented in the model for this investment opportunity. All rates and terms of the debt financing are subject to final lender committee approval, including but not limited to a modification in lender held capital reserve requirements that may result in a corresponding movement of certain funds currently projected as being held in a Sponsor controlled capital escrow account.

Management Risk

Investors will be relying solely on the Sponsor for the execution of its business plan. The Sponsor may in turn rely on other key personnel with relevant experience and knowledge, including contractors and consultants. Members of BH Chesapeake Indy, LLC (including Realty Mogul 62, LLC) will agree to indemnify the manager in certain circumstances, which may result in a financial burden if any litigation results from the execution of the business plan. While the Sponsor has significant operating experience, BH Chesapeake Indy, LLC is a newly formed company and has no operating history or record of performance. Realty Mogul 62, LLC is pursuing a venture capital strategy through its investment in BH Chesapeake Indy, LLC, and the manager of Realty Mogul 62, LLC is expected to be treated as an investment adviser exempt from federal or state registration under this strategy.

Manager of Realty Mogul 62, LLC Will Participate in Sponsors' Promote Interest

The manager of Realty Mogul 62, LLC will be entitled to a participation in the value of any excess distributable cash flow and any appreciation of the Property realized upon its sale. This could lead to a potential conflict of interest between the manager and Realty Mogul 62, LLC. Investors must recognize and agree to waive and bear the risk of this conflict of interest.

Uncertain Distributions

The Sponsor cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including Realty Mogul 62, LLC) from either net cash from operations or proceeds from the sale or refinancing of the asset. Sponsor, in its discretion, may retain any portion of such funds for tenant improvements, tenant refurbishments and other lease-up costs or for working capital reserves. Sponsor has chosen to make distributions quarterly.

Risk of Interest Charges for Sponsor Capital Calls

The amount of capital that may be required by BH Chesapeake Indy, LLC from Realty Mogul 62, LLC is unknown, and although BH Chesapeake Indy, LLC does not require that its members contribute additional capital to it, it may from time to time request additional funds in the form of loans or additional capital. Realty Mogul 62, LLC does not intend to participate in a capital call if one is requested by BH Chesapeake Indy, LLC, and in such event the manager of BH Chesapeake Indy, LLC may accept additional contributions from other members of BH Chesapeake Indy, LLC.  Any member may make a loan to BH Chesapeake Indy, LLC under such terms and conditions as may be agreed to by the member and BH Chesapeake Indy, LLC.  Such loans will not be considered capital contributions and shall not have an interest rate of higher than 10%.  Amounts (other than member loans) that are contributed by existing or new members will be deemed to be additional capital contributions, in which case Realty Mogul 62, LLC's interest in BH Chesapeake Indy, LLC will suffer a proportionate amount of dilution.

Uncertain Exit Timing

Although it is anticipated that the Property will be sold at the end of the expected seven (7) year hold period, Realty Mogul 62, LLC will not have full control over the timing of the sale of the Property, and therefore we cannot offer assurances of when the exit will occur.  Sponsor’s decision to hold the Property for longer than seven (7) years will require a vote of a majority of the then current members of BH Chesapeake Indy, LLC.  

General Economic and Market Risks

While the Sponsor has conducted significant research to justify the intended rental rates and sales price relative to comparable properties in the market, its best efforts to forecast economic conditions cannot state for certain whether or not rental rates will be achieved or investor sentiment and the capital markets will be favorable to the Property at the intended disposition date. The real estate market is affected by many factors, such as general economic conditions, the availability of financing, interest rates and other factors, including supply and demand for real estate investments, all of which are beyond the control of the Sponsor​​.

The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Issuer Document Package for a discussion of additional risks.

The above presentation is based upon information supplied by the Sponsor and others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 62, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.



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