The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
180 Harvester is 100% occupied by the University of Chicago Medical Center. 150 Harvester is 36% occupied by the University of Chicago Medical Center. The University of Chicago Medical Center, a credit-rated tenant, maintained tenancy in 180 Harvester since 2006 and has a current lease in place through Q1 of 2034 with no termination rights. Over its tenancy, the University of Chicago Medical Group expanded its footprint four times and extended its lease early three times. The University of Chicago Medical Group has requested an amendment to their lease that will allow them to convert their office space to medical and dental clinics at the Properties.
150 Harvester is currently 98% occupied and boasts a roster of tenants with an average tenure of 6.9 years with 6.6 years of the remaining lease term. The newest lease at this property to Inspiring Technologies Corp. was recently executed for $26.50/SF, which is almost $2.00/SF above asking rents at the comp set and $0.50/SF above initial projections. The new lease is set to commence in March of 2022.
Due to the profile of the portfolio's tenancy, the Properties are projected to produce a high coupon, durable cash return at the outset of the investment horizon. Year one Cash-on-Cash return is projected to be 10.25% with average cash-on-cash over the hold projected to be 10.7%.
The Property is located in an affluent residential community within a core of commercial and retail amenities. The Property is also adjacent to a major cloverleaf exchange at I-55 and County Line Road and other major roadways. Burr Ridge, a suburb of Chicago MSA is one of the wealthiest towns in the state of Illinois. CoStar places median incomes in the 1 and 3-mile radii at $148,000 and $110,000 respectively with median home values at $487,000 and $409,000 for the same distances. The area has an A+ rated school system according to Niche.com. Located in DuPage County, the Subject benefits from a more favorable property tax assessment than its neighboring Cook County suburban competitors
Morning Sky Capital
Morning Sky Capital (the "Sponsor") is a private real estate investment firm with a focus on acquiring undervalued, mispriced, or "special-situation" real estate, with a history of producing returns that are both outsized and uncorrelated with the larger market. Morning Sky Capital invests with a long-term perspective, and is asset-class and location-indifferent, investing in all major asset classes. The Sponsor currently owns real estate valued in excess of $500mm. Based in Philadelphia, PA, Morning Sky Capital has a sterling track record dating back to 1978. To date, the Sponsor has the unique distinction of never having returned a property to a lender or engaged in a workout.
https://morningskycapital.com/Morning Sky Capital Track Record(1)
Property | State | Asset Class | Acquisition Date | Sale Date | SF | Purchase Price | Acquisition Equity | Distributed Cash | Sale Price | Realized IRR |
Villa Park | VA | Office | Jan-17 | Mar-21 | 701,321 | $38,000,000 | $6,363,000 | $103,689,969 | $220,852,136 | 95.46% |
Cargill Hazelton | PA | Industrial | Sep-05 | Dec-11 | 230,000 | $31,511,221 | $2,979,537 | $5,714,350 | $32,000,000 | 10.98% |
Value City | OH | Office/Industrial | Apr-99 | May-06 | 410,388 | $17,442,681 | $1,725,500 | $5,196,076 | $19,500,000 | 16.83% |
Cargill Chambly | QC | Industrial | May-06 | Mar-13 | 113,932 | $15,293,654 | $1,000,000 | $3,552,078 | $15,447,689 | 20.36% |
AT&T Call Center | KY | Office | Mar-04 | Jan-19 | 104,320 | $13,078,730 | $1,207,134 | $3,368,238 | $8,317,107 | 7.16% |
Cargill Newnan | GA | Industrial | Jun-05 | Sep-18 | 104,880 | $9,774,529 | $948,233 | $8,043,000 | $11,600,000 | 16.76% |
Trailbridge Townhomes | OH | Multifamily | Apr-12 | Jul-21 | 152,364 | $4,500,000 | $1,370,474 | $2,004,445 | $8,000,000 | 4.19% |
CVS Edina | MN | Retail | Dec-11 | Dec-18 | 11,000 | $3,000,650 | $211,798 | $447,693 | $2,716,158 | 11.28% |
Houghton Lake | MI | Retail | Jun-10 | Sep-21 | 33,708 | $1,500,000 | $1,503,541 | $1,751,514 | $1,749,000 | 1.36% |
401 Pine St | MO | Office | Jul-17 | Dec-19 | 42,000 | $1,420,000 | $2,125,000 | $2,711,612 | $2,195,000 | 10.60% |
Towers at Wyncote | PA | Multifamily/Retail | Apr-14 | - | 1,758,471 | $113,524,000 | $25,000,000 | $34,500,000 | - | - |
Princeton Place | NJ | Office | Oct-17 | - | 306,534 | $72,600,000 | $16,650,000 | $1,248,750 | - | - |
Home Depot Tech Center | TX | Office | Aug-21 | - | 199,408 | $63,171,670 | $5,595,844 | - | - | - |
Trion Raleigh | NC | Industrial | Jun-21 | - | 270,017 | $20,001,259 | $13,303,500 | - | - | - |
ASC Raleigh | NC | Industrial | Mar-21 | - | 192,878 | $16,950,000 | $6,240,660 | - | - | - |
Museum Lofts | TN | Multifamily | Jul-21 | - | 68,000 | $12,535,000 | $4,458,567 | - | - | - |
ASC El Paso | TX | Industrial | Aug-21 | - | 161,348 | $9,219,886 | $3,058,496 | - | - | - |
251 DeKalb TIC | PA | Multifamily | Nov-21 | - | 804,184 | $7,673,760 | $2,100,000 | - | - | - |
Walmart Portfolio | Multiple | Retail/Industrial | Jun-09 | - | 263,584 | $5,750,000 | $5,750,000 | $16,460,000 | - | - |
Cintas | NY | Industrial | Jun-19 | - | 48,703 | $5,500,000 | $2,050,000 | $615,000 | - | - |
Wyoming Hills | OH | Multifamily | Jul-19 | - | 88,212 | $4,950,000 | $2,000,000 | $2,100,000 | - | - |
Saint Clair | OH | Multifamily/Retail | Dec-10 | - | 146,275 | $3,150,000 | $675,903 | $2,260,000 | - | - |
Stone Creek | FL | Multifamily | Oct-10 | - | 149,510 | $1,600,000 | $1,594,553 | $4,813,451 | - | - |
Total/Average | 6,361,037 | $473,147,039 | $107,911,241 | $198,476,177 | 19.50% |
(1) The above biography and track record were provided by the Sponsor and have not been independently verified by RM Technologies, LLC or its affiliates. Past performance is not indicative of future results. Please carefully review the Disclaimers section below.
Upon acquisition, the Real Estate Company will commence the business plan of continued operation and lease renewal on rolling leases for the next 9 years. The Real Estate Company plans to continue to engage the current manager, who developed the Properties and has successfully managed them since. The University of Chicago Medical Center ("UCMC") holds a single lease for its space at the Properties through 2034 with no termination rights; the Real Estate Company is currently creating separate leases with UCMC on each building, which will be complete at the time of closing of the acquisition. UCMC occupies 100% of 180 Harvester and occupies 36% of 150 Harvester as the anchor tenant of each building. With UCMC having separate leases at each building, they could potentially be sold separately and attract a wider buyer pool with unique investment appetites with 180 Harvester marketed as an investment-grade (A1/AA-) single-tenant property 100% occupied by UCMC and 150 Harvester marketed as a multi-tenant property 36% anchored by an investment-grade (A1/AA-) tenant. In addition, UCMC requested an amendment to their lease that will allow them to convert their standard office space to more valuable use as medical offices and dental clinics with no additional capital investment from the Real Estate Company and at the sole expense of UCMC which, with their investment, makes UCMC a “stickier,” more durable tenant. These aforementioned changes should increase the durability of the operating cash flow as well as the value of the Properties.
Occupancy and Leasing: the Real Estate Company indicated that a lease for the 3,856 SF unit in 150 Harvester was recently executed with no Tenant Improvement capital (TI’s) for $26.50/SF modified gross, which is higher than the Sponsor's current projected rents. The new lease commences in March 2022 and will bring current occupancy to ~98% across the two buildings. It should also be noted, UCMC expanded their footprint at the Property four times since their occupancy began in 2006 and extended their lease early three times.
Budget:
Acquisition Cost | $ Amount | Per SF |
Purchase Price | $39,300,000 | $249.68 |
Sponsor Acquisition Fee | $589,500 | $3.75 |
RM Adviser Acquisition Fee | $393,000 | $2.50 |
Loan Closing Costs | $391,050 | $2.48 |
Title | $70,000 | $0.44 |
Legal | $120,000 | $0.76 |
Misc. | $100,000 | $0.64 |
3rd Party Fees | $70,000 | $0.44 |
Other Closing Costs | $30,000 | $0.19 |
Grand Total | $41,063,550 | $260.88 |
150 and 180 Harvester Drive, Burr Ridge, IL 60527 (the "Property" or "Properties") is a Class A, 157,428 SF (gross) office portfolio consisting of two buildings: 180 Harvester is a 49,687 SF single-story building with an adjacent parking parcel at 120 Harvester; 150 Harvester is a three-story 107,741 SF Class A multi-tenant office building with heated underground parking. 180 Harvester was constructed in 2005, 150 Harvester was constructed in 2006, and the parking lot at 120 Harvester was completed in 2019. The Property is located at the four-way interchange of County Line Road and I-55, giving them outstanding access to the western suburbs, both Midway and O’Hare Airports, and the City of Chicago.
Office Tenant Mix
Tenant (Credit) | Use / Industry | SF Leased | Current Rent | Lease Start | Lease Expiry | Remaining Lease Term |
180 Harvester | ||||||
The University of Chicago Medical Center (AA-/A1) | Health Plan / Physicians Group | 49,687 | $22.61 | 12/1/2005 | 3/31/2034 | 11.9 years |
150 Harvester | ||||||
The University of Chicago Medical Center (AA-/A1) | Health Plan / Physicians Group | 38,341 | $27.62 | 4/1/2017 | 3/31/2034 | 11.9 years |
Edward D Jones | Financial/Investment Advisor; Founded 1922 | 1,396 | $26.00 | 11/1/2021 | 4/30/2032 | 10.0 years |
Mars 2 | Family Office Investment Group; founded 1995 | 7,331 | $26.00 | 10/1/2006 | 5/31/2026 | 4.1 years |
Brookfield Global | Relocation Company (Founded 1964, 1300 global employees) | 29,861 | $25.50 | 6/1/2013 | 1/31/2026 | 3.8 years |
RML Health | Long-Term Acute Care; Founded 1987 | 7,294 | $26.75 | 12/1/2017 | 6/30/2025 | 3.2 years |
Axsun Corp | Canadian freight transportation/trucking company | 2,914 | $26.00 | 5/1/2014 | 9/30/2024 | 2.6 years |
Daubert Chemical | Specialty coatings, lubricants, adhesives; Founded 1935 | 4,786 | $26.50 | 9/1/2012 | 11/30/2023 | 1.6 years |
Permasteelisa | Global Curtain Wall Company; Founded 1973 | 6,367 | $26.50 | 1/1/2017 | 4/1/2023 | 0.9 years |
Kyle Wetzel (Farmer's) Insurance Agency | Insurance; Founded 1928 | 1,776 | $26.50 | 12/1/2016 | 8/31/2026 | 4.4 years |
Inspiring Technologies Corp | Technology and IT Solutions; Founded in 2013 | 3,856 | $26.50 | 3/1/2022 | 3/31/2025 | 3.0 years |
Vacant** | 3,379 | |||||
Office Total/Avg | 156,988 | $25.94 | Average Tenure | 10.2 years | 8.3 years WALT* |
*Weighted Average Remaining Lease Term
**New Lease proposed at $26.50 per square foot through July 2026
Lease Comparables
Lease Comps | 1000 Burr Ridge Parkway | 1333 Burr Ridge Pkwy | IPM Professional Center | 145 Tower Dr | Woodland Park Willowbrook | Averages | 150 Harvester | 180 Harvester |
Year Built | 1995 | 1996 | 2003 | 2000 | 2000 | 1999 | 2006 | 2005 |
Costar Class | B (Costar 4 Star) | A (Costar 4 Star) | B (Costar 3 Star) | B (Costar 3 Star) | B (Costar 3 Star) | A | B | |
SF | 57,222 | 150,000 | 45,684 | 63,933 | 33,832 | 70,134 | 107,301 | 49,687 |
Occupancy | 88% | 91% | 91% | 91% | 100% | 92% | 95% | 100% |
Lease Type | Modified Gross | Modified Gross | Modified Gross | Modified Gross | Modified Gross | Modified Gross | Modified Gross | |
Contracted Lease/SF | $25.00/SF | $26.05/SF | $25.00/SF | $22.05/SF | $18.95/SF | $24.33/SF | $26.59/SF | $22.61/SF |
Asking Lease/SF | $26.00/SF | $26.05/SF | $25.00/SF | $22.05/SF | $18.95/SF | $24.49/SF | $26.50/SF | |
Address | 1000 Burr Ridge Parkway | 1333 Burr Ridge Pkwy | 60 N Frontage Rd | 145 Tower Dr | 535 Plainfield Rd | 150 Harvester Drive | 180 Harvester Drive | |
Distance from Subject (mi.) | 0.6 miles | 0.5 miles | 0.3 miles | 0.5 miles | 1.0 miles | 0.5 miles |
Sales Comparables
Sale Comps | Oakmont Point West | Advocate Good Samaritan Outpatient Center (Medical) | 901 N Elm St (Medical) | 8 Salt Creek Ln (Medical) | 8255 Lemont Rd | Averages | 150 Harvester | 180 Harvester |
Year Built | 1989 | 2008 | 1968 | 2016 | 1990 | 1994 | 2006 | 2005 |
SF | 92,553 | 35,011 | 26,816 | 32,000 | 33,068 | 43,890 | 107,301 | 49,687 |
Class | A | A | B | A | B | A | B | |
Sale Date | 12/21 | 8/21 | 8/20 | 8/20 | 5/21 | 8/26 | ||
Sale Price | $21,700,000 | $17,390,000 | $8,800,000 | $16,000,000 | $7,200,000 | $14,218,000 | $20,750,000 | $18,500,000 |
Price per SF | $234/SF | $497/SF | $328/SF | $500/SF | $218/SF | $355/SF | $193/SF | $372/SF |
Cap Rate | N/A | N/A | N/A | N/A | N/A | N/A | 9.4% | 6.4% |
Address | 700 Oakmont Ln | 6840 Main St | 901 Elm St | 8 Salt Creek Ln | 8255 Lemont Rd | |||
Distance from Subject (mi.) | 7.1 miles | 6.3 miles | 7.5 miles | 7.4 miles | 8.1 miles | 7.3 miles |
Market Overview
Home to over 400 large and small, local and national businesses, including Motorola, CDW, United Airlines, and Accenture, Burr Ridge has a carefully planned mix of office and industrial parks as well as two well-designed retail areas in a natural setting. The two retail centers, County Line Square and Burr Ridge Village Center, are conveniently located at the southeast corner of County Line Road and feature a Kohler Water Spa, Cooper’s Hawk, and Evereve. Worth magazine named the community one of the top 250 wealthiest communities in the country. In 2011 The Business Journals exclusive ‘On Numbers’ report ranked the quality of life in Burr Ridge second out of 955 Midwestern communities. Chicago has the third-largest office market in the U.S., with a total existing inventory of nearly 240 million RSF, of which roughly 45 percent – or 107 million SF – is in the suburban submarket.
Suburban Chicago proved its resiliency due to the extensive diversity of its economy and is well-positioned for evolving occupancy strategies, given its well-trained, highly educated workforce and a strong public transportation system. The suburban market is poised to adapt to the ever-changing requirements that tenants will be demanding in a post-Covid world and will continue to benefit from lower taxes when compared to the City of Chicago and Cook County.
Leasing activity in the Chicago suburban market showed signs of a strong recovery in Q1 2021, bolstered by the growing availability and distribution of COVID-19 vaccines in Illinois.
Submarket Overview
The Property is located in an affluent residential community within a core of commercial and retail amenities. The Property is also adjacent to a major cloverleaf exchange at I-55 and County Line Road and other major roadways.
Burr Ridge, a suburb of Chicago MSA is one of the wealthiest towns in the state of Illinois. Costar places median incomes in the 1 and 3-mile radii at $148,000 and $110,000 respectively with median home values at $487,000 and $409,000 for the same distances. The area has an A+ rated school system according to Niche.com. Located in DuPage County, the Property benefits from a more favorable property tax assessment than its neighboring Cook County suburban competitors.
Total Capitalization
Sources of Funds | $ Amount | $/SF |
Debt | $26,070,000 | $165.63 |
GP Investor Equity | $1,499,355 | $9.53 |
LP Investor Equity | $13,494,195 | $85.73 |
Total Sources of Funds | $41,063,550 | $260.88 |
Uses of Funds | $ Amount | $/SF |
Purchase Price | $39,300,000 | $249.68 |
Morning Sky Capital Acquisition Fee | $589,500 | $3.75 |
RM Adviser Acquisition Fee | $393,000 | $2.50 |
Loan Closing Costs | $391,050 | $2.48 |
Title | $70,000 | $0.44 |
Legal | $120,000 | $0.76 |
Misc. | $100,000 | $0.64 |
3rd Party Fees | $70,000 | $0.44 |
Other Closing Costs | $30,000 | $0.19 |
Total Uses of Funds | $41,063,550 | $260.88 |
(2) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
The expected terms of the debt financing are as follows:
150 Harvester
- Lender: Societe Generale
- Term: 8.75 Years ARD
- Maturity Date: March 31, 2034
- Loan-to-Value: 66.5%
- Estimated Proceeds: $13,800,000
- Interest Type: Fixed
- Annual Interest Rate: 4.975%
- Interest-Only Period: Full Term
- Amortization: Non-Amortizing
- Prepayment Terms: TBD
- Extension Requirements: TBD
180 Harvester
- Lender: Societe Generale
- Term: 9 years
- Loan-to-Value: 66.2%
- Estimated Proceeds: $12,270,000
- Interest Type: Fixed
- Annual Interest Rate: 4.625%
- Interest-Only Period: Full Term
- Amortization: Non-Amortizing
- Prepayment Terms: TBD
- Extension Requirements: TBD
(3) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt.
Morning Sky Capital intends to make distributions as follows:
- To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
- 75% / 25% (75% to Investors / 25% to Promote/Carried Interest) of excess cash flow to a 15.0% IRR;
- 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow thereafter.
Morning Sky Capital 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 August 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Morning Sky Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Morning Sky Capital 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 | ||
Effective Gross Revenue | $4,367,150 | $4,373,494 | $4,526,506 | $4,268,907 | $4,338,471 | $4,907,508 | $4,928,736 | $5,051,272 | $5,071,134 | |
Total Operating Expenses | $1,146,464 | $1,153,199 | $1,182,279 | $1,199,633 | $1,227,408 | $1,270,785 | $1,298,365 | $1,329,634 | $1,358,490 | |
Net Operating Income | $3,220,686 | $3,220,296 | $3,344,227 | $3,069,274 | $3,111,063 | $3,636,722 | $3,630,370 | $3,721,637 | $3,712,644 | |
Project-Level Cash Flows | ||||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | |
Net Cash Flow | ($14,993,550) | $1,686,994 | $1,533,855 | $1,825,551 | $523,687 | $1,492,961 | $2,278,735 | $2,127,537 | $2,251,788 | $20,014,908 |
Investor-Level Cash Flows(4) | ||||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | |
Net Cash Flow | ($13,494,195) | $1,383,352 | $1,245,527 | $1,508,054 | $336,377 | $1,208,723 | $1,915,920 | $1,779,841 | $1,891,667 | $15,791,469 |
Investor-Level Cash Flows - Hypothetical $50,000 Investment(4) | ||||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | |
Net Cash Flow | ($50,000) | $5,126 | $4,615 | $5,588 | $1,246 | $4,479 | $7,099 | $6,595 | $7,009 | $58,512 |
(4) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to Morning Sky Capital's materials for details. The following fees and compensation will be paid(5)(6)(7):
One-Time Fees: | |||
Type of Fee | Amount of Fee | Received By | Paid From |
Morning Sky Capital Acquisition Fee | 1.5% of Purchase Price | Morning Sky Capital | Capitalization |
RM Adviser Acquisition Fee | 1.0% of Purchase Price | RM Adviser, LLC | Capitalization |
Disposition Fee | 0.5% of Gross Sale Proceeds | RM Adviser, LLC | Distributable Cash |
Recurring Fees: | |||
Type of Fee | Amount of Fee | Received By | Paid From |
Asset Management Fee | 1.5% of EGI | Morning Sky Capital | Cash Flow |
Administrative Services Fee | 1.0% of Equity(1) | RM Admin(3) | Cash Flow |
(5) Only applies to equity raised through the RealtyMogul Platform
(6) Fees may be deferred to reduce impact to investor distributions.
(7) 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.
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, LLCSponsor 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 DocumentsThe 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 InvestmentThis 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 AssumptionsSponsor 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 PerformanceAny 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 DebtA 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 RegisteredSponsor’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 AdviceNothing 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 RiskInternal 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.