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/-
Zell KravinskyPrincipal -
Lev KravinskyPrincipal
Zell Kravinsky is the lead principal of Morning Sky Capital, heading MSC's investment strategy. He has been investing in commercial real estate since 1978. He is a net lease specialist, with specific expertise in complex real estate financing/structuring. He is known for his philanthropy, including gifts to the CDC and the Ohio State College of Public Health. He has been praised by President Bill Clinton for his philanthropic efforts, and is widely known for giving his kidney away to a stranger in a non-directed gift. He has two PhDs from the University of Pennsylvania.
Lev Kravinsky is a principal of Morning Sky Capital, focused on acquisitions and asset management. Since 2017 he has transacted $1bn+ in deal volume, with counterparties ranging from private investors to S&P 500 corporations and public REITs, with debt financing from CMBS/GSE/CTL lenders. He has particular interest in deal structuring, real estate arbitrage opportunities, and sale-leaseback transactions.
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.
Sponsor’s Projects and Targets
*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates. RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates. There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate. The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance. There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets. Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.
No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC or it Affiliates
The information on this Page, including the 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”) was provided by the Sponsor or an affiliate thereof. RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. No part of the information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s Investment Documents. The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.
Sponsor’s Information Qualified by Investment Documents
The Information on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment. The information on this page should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between the information on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents. The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.
Risk of Investment
This real estate investment is speculative and involves substantial risk. There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved. In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.
Risk of Forward-Looking Statements
Forward-looking statements are found here and in the applicable Investment Documents and may include words like “expects,” “intends,” “anticipates,” “estimates” and other similar words. These statements are intended to convey the Project Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please see the applicable Investment Documents for disclosure relating to forward-looking statements. All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents. Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.
Sponsor’s use of Debt
A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. 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 the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. 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.
In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.
Sponsor’s Offering is Not Registered
The interests offered by the Sponsor will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement.”). In addition, the interests will not be registered under any state securities laws in reliance on exemptions from registration. Such interests are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act. Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.
RM Technologies, LLC Fees and Conflicts
RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution. An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor. The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering. RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
No Investment Advice
RealtyMogul and RM Technologies, LLC are not a registered broker-dealer, investment adviser or crowdfunding portal. Nothing on this Page should not be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.
For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.