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Funded
Industrial
South Point Business Park
Sacramento, CA
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By Rising Realty Partners
17.3%* TARGET IRR 16.3%-18.3%
1.60X* TARGET EQUITY MULTIPLE
Estimated Hold Period 3 Years
Estimated First Distribution 10/2022
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Explore this Project
Overview
Best-in-class, value-add light industrial park comprised of 4 buildings totaling 83,549 square feet in the highly desirable South Sacramento industrial submarket.
Value-Add

The Property offers Rising Realty Partners the opportunity to acquire a multi-building portfolio in one of Sacramento's premier industrial submarkets. South Point provides extraordinary upside from current vacant space lease-up (22% vacancy), and near-term lease expirations that are 31% below current market rents, and collectively generate 40% NOI growth during our hold period. Implementation of ESG initiatives includes: solar, low flow water devices, LED lighting, and low maintenance landscaping that will help reduce carbon emissions and lower operating expenses. The cosmetic improvement plan includes building accents, new project and tenant signage, rebranding, and modest landscape improvements that will reposition the asset in the submarket to attract new tenants at market rents, entice existing tenants to renew early.

Basis

Class-A multi-tenant light industrial park acquired at a significant discount to replacement cost. Rising Realty Partners is buying this Project for $120 PSF with an estimated replacement cost of $200 to $225 PSF. South Point is ideally positioned in the market to provide functional units that range in size from 2,000 to 18,000 square feet and accommodate a wide range of users. The market has not seen multi-tenant light industrial products built in decades, and there is no similar product planned or under construction. Current market rents do not justify an acceptable return on cost for a speculative multi-use logistics project. The exit price at the end of the hold period is still below replacement cost today. 

Market

South Point Business Park is located in a supply-constrained market. This product has not been built since pre-GFC. Rising construction costs coupled with significant increases in land values have created a shortage in new business park deliveries. No new supply and steady demand are putting upward pressure on rental rates and sale values as a result. The scarcity of large industrial zoned, developable parcels further restricts future supply. Current Sacramento overall vacancy is 1.9%; South Sacramento submarket vacancy at 0.3%.  Projected rent growth of 28% over the next 5 years (source: CBRE).

Property At A Glance
Year Built 1985-2005
Total SF 83,549
# of Buildings 4
Current Occupancy 78%
Parking Ratio 3.15 per 1,000 SF
Acquisition Price

$9,750,000

Management
Cumulative Distributions

Rising Realty Partners

Founded in 2012 by industry veterans Nelson and Christopher Rising, Rising Realty Partners is a family-owned, Los-Angeles based, vertically integrated real estate investment and operating platform specializing in creating world-class commercial properties.

Their investment and operating philosophy is to add value and enhance financial returns through sustainable investment practices and leverage technology as a force multiplier to increase efficiency, reduce operating costs, and improve tenant satisfaction.

https://www.risingrp.com/
  • Christopher Rising
    Co-founder & CEO
  • Scott McMullin
    Principal & CIO
  • Scott Word
    Principal, Industrial Investments
Christopher Rising
Co-founder & CEO

Christopher Rising manages the day-to-day business activities of Rising, while also serving on its Investment Committee. Drawing on his experience as Senior Vice President, Asset Transactions at MPG Office Trust, Inc. (NYSE: MPG), Christopher is skilled at managing acquisitions and creative development. At MPG, he worked directly with the CEO to improve finances through debt reduction and restructuring.

In 2003, he founded his own company, The Rising Real Estate Group (RREG.) As the company grew, he seized the opportunity to partner with Barker Pacific Group and created Hamilton Capital Partners (HCP), an equity fund vehicle. RREG is also a principal in 626 Wilshire Blvd, a 156K square foot office building located in downtown Los Angeles.

He began his professional career as an associate at Pillsbury Madison & Sutro. He worked at Cushman Realty Corporation (CRC) under brokerage legend John C. Cushman, III. Christopher then served as a Director at Cushman & Wakefield of California, Inc. (C&W), joining C&W after its merger with CRC in 2001.

Christopher is a current member of the Pasadena Chapter of the Young Presidents Organization and is a member of the Board of Overseers at Loyola Law School and a member of the board of RiverLA. He is a former board member of Loyola High School and LA Phil. 

Christopher received his J.D. Law, Real Estate from Loyola Law School and his B.A. in History and Political Science from Duke University. He also attended Duke on a football scholarship and was a member of the 1989 ACC Championship team. 

Scott McMullin
Principal & CIO

Scott has been a capital partner with Rising since 2015 and recently joined Rising as Principal and CIO. He oversees the capital market needs for Rising, as well as serving on the company’s advisory board and investment committee.

Prior to joining Rising, Scott was a Founding Principal of Suntex Marina Investors. Originally partnering with SMI in 1994, Scott most recently served as Chairman of the Board, CIO, and COO as the company grew to acquire $750 million of marinas throughout the US. Scott also founded other successful real estate ventures such as Stratford Hospitality and Stratford Golf. 

Prior to forming Stratford, Scott spent 16 years as an Executive Managing Director with HFF. There, he oversaw over $30 billion of real estate transactions in all asset classes and served on the firm’s operating committee, facilitating the creation of the Los Angeles and San Francisco debt and equity platforms. Scott was also instrumental in the formation of the private equity affiliate, HFF Securities, holding the position of Principal at the broker/dealer. HFF executed an IPO in 2007.

Scott earned a degree from Duke University and is a member of the Young President's Organization.

Scott Word
Principal, Industrial Investments

Scott joined Rising in 2020 as Principal to lead the industrial platform. He oversees all industrial acquisition activities, including sourcing, strategy, market expansion, business development, market research, and underwriting. 

Prior to joining Rising, Scott held Principal positions with Landmark Realty Partners, Dvele, Waypoint, and Steelwave (formerly Legacy Partners). In this capacity, he led acquisition and development activities completing over $1.5B of “value add” industrial and office acquisitions. 

He began his professional career with The Seeley Company, one of the oldest and most established industrial brokerage firms in Los Angeles, where he quickly excelled to Partner and was a consistent Top Performer. 

Scott earned his bachelor’s in business finance from the University of Oklahoma.

Track Record

Rising Realty Partners Track Record

Property City, State Asset Type Acq Date SF Purchase Price Sale Date Sale Price
PacMutual Los Angeles, CA Office 4/12/2012 464,147 $59,000,000 4/17/2014 $129,000,000
PacMutual (recap) Los Angeles, CA Office 4/17/2014 464,147 $129,000,000 9/9/2015 $200,000,000
87 N Raymond Pasadena, CA Office 11/15/2013 62,000 $10,475,000 7/29/2016 $18,500,000
The CalEdison Los Angeles, CA Office 10/8/2015 277,074 $92,000,000 12/7/2018 $130,083,222
Bank of America Portfolio Los Angeles, CA Office 11/15/2013 1,770,624 $189,000,000 12/31/14 thru 3/31/21 $263,720,050
Heritage Financial Center Agoura Hills, CA Office 11/9/2016 62,225 $8,000,000 10/21/21 $9,500,000
The Park DTLA Los Angeles, CA Office 1/16/2015 273,448 $16,500,000 N/A N/A
West 7 Center Los Angeles, CA Office/Data 6/3/2016 733,762 $210,000,000 N/A N/A
The Trust Building Los Angeles, CA Office 6/9/2016 320,364 $80,400,000 N/A N/A
The CalEdison (recap) Los Angeles, CA Office 12/7/2018 287,615 $130,083,222 N/A N/A
1Cal Los Angeles, CA Office 6/6/2017 1,047,062 $459,000,000 N/A N/A
Civic Center Plaza Denver, CO Office 6/27/2019 598,592 $124,692,642 N/A N/A
9320 Telstar El Monte, CA Office/Industrial 2/26/2021 248,961 $41,050,000 N/A N/A
Cheyenne Airport Center Las Vegas, NV Office/Industrial 7/23/2021 143,983 $20,850,000 N/A N/A
Commerce Center Stafford Stafford, TX Office/Industrial 12/1/2021 245,495 $33,600,000 N/A N/A
Alpine Industrial Park Sacramento, CA Office/Industrial 2/25/2022 142,190 $21,895,000 N/A N/A
Total       7,141,689 $1,625,545,864   $741,303,272

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

Business Plan

South Point Business Park ("South Point") is a 78% leased, multi-tenant light industrial park located in one of the most desirable industrial submarkets in Sacramento. South Point is ideally positioned in the market to provide high-quality and functional light industrial space to a wide range of industrial users. Rising Realty Partners is acquiring this property from a non-institutional owner that has historically operated the Project with a focus on maintaining occupancy versus spending capital to rent in accelerating market conditions characterized by historic low vacancy and dramatic rent growth. The current vacancy is the result of a large tenant, Bayside Church, that operated from this location for over a decade before leaving the Project. Bayside occupied the majority of the 6524 building and 100% of the 6528 building and vacated South Point when they acquired their own facility in 2020. Their vacation of South Point left a significant hole in the Project that had historically enjoyed 100% occupancy for many years.  

Rather than spend the necessary capital to reposition the 6524 building, the ownership decided to pursue cheap "as is" transactions at significantly below market rental rates. Almost immediately following Bayside's departure, the 6528 building was backfilled with Streamline Church on a long-term lease. The 6524 building represents the majority of the Project vacancy, and is in shell condition, except for multiple bathroom pods. 

South Point is an excellent value-add opportunity. To implement our value-add repositioning strategy and generate significant Net Operating Income growth, the following initiatives will be executed post-close to reposition South Point as the market leader in the South Sacramento submarket.  

First, Rising Realty Partners will build out the remaining vacant space in the 6524 building to create multiple market-ready suites. Second, they will implement a modest cosmetic capital improvement plan to reposition the project. The Sponsor is budgeting $214,500 for cosmetic improvements to the project for rebranding and naming, monument and tenant signage, top of building accent striping, and modest landscaping improvements. Third, the Rising team will proactively manage the rollover of existing tenants, marking rents to market rates, and aggressively pursuing early renewals from tenants with near-term expirations. In addition to the current vacant space, South Point has a 51% roll of the existing leases over the hold period. This Project is a high-touch asset and plays into the strength of Rising’s multi-tenant operational expertise. The Rising team will proactively manage the asset to ensure a quick lease-up of vacant suites, manage near-term rollover, and implement operational efficiency to deliver superior results to its investor partners. Fourth, the Sponsor is evaluating ESG implementation initiatives including solar, low flow water devices, LED lighting, and low maintenance landscaping to reduce carbon emissions and lower operating expenses. 

Finally, the Property will be financed with highly attractive debt from a regional bank. The Sponsor has an executed loan term sheet with Pacific Western Bank, which provides for 65.9% initial funding and 100% CapEx/TI/LC funding at a floating rate of SOFR + 300 bps. The four-year loan features a 36-month interest-only period and a one-year extension option. The Sponsor does not anticipate the need for any future capital calls.  With their financing and a healthy working capital reserve, the business plan will deliver an exceptional leveraged internal rate of return over the three-year hold. 

Property

Investor Q&A 6/10/2022

Property Tour Video

Property Details

South Point was built between 1985-2005 with 16'-20’ clear height, ~50% office finishes, rear-load configuration, and is parked onsite with a 3.15/1000 parking ratio. Unique to South Point is the ability to create small fenced yard areas adjacent to the 6600 building. The product mix, parking, and unit configuration accommodate a wide range of light industrial users. The Project is located in the South Sacramento submarket, one of the most coveted institutional submarkets in Sacramento with a current submarket vacancy at 0.3%. The Project benefits from the exceptional freeway (99) access and visibility.

Market Rent Schedule

For the Years Ending      SF % of Property Lease Start Lease End In-Place
Go Green Sustainability Centers, Inc. 16,545 19.8% 9/1/2021 9/1/2024 $5.52
Streamline Church of Assembly of God 12,400 14.8% 3/1/2020 4/1/2027 $7.92
Nursing Practice and Education Consultants 10,914 13.1% 6/1/2009 9/1/2024 $7.38
Sherwin-Williams Automotive Finishes 9,955 11.9% 9/1/1987 2/1/2028 $7.92
VACANT (204) 8,187 9.8%      
VACANT (208) 6,117 7.3%      
Comprehensive Skills Training Center 4,800 5.7% 7/1/2009 9/1/2024 $8.74
VACANT (206) 4,107 4.9%      
Extel Corporation 2,206 2.6% 81/2012 3/1/2023 $7.87
External Autoworks 2,170 2.6% 4/1/2021 4/1/2024 $6.72
Food Truck Factory 2,148 2.6% 8/1/2021 7/1/2022 $6.72
Praise Tabernacle Church 2,000 2.4% 6/1/2005 5/1/2023 $5.09
Design Octopus LLC 2,000 2.4% 1/1/2019 2/1/2024 $5.11
Total Market Rent 83,549 100%     $6.90

Tenant Overview

Sherwin Williams Auto:

Sherwin Williams has operated out of this location since 1987 and their lease does not expire until February of 2028. They have a market capitalization of $85.9 Billion. This location works very well for their automotive finish operation that serves retailers, dealers, jobbers, licensees, and other 3rd party distributors. They are a great credit tenant that is presently significantly below market, and their lease expires after our anticipated hold period.

Streamline Church of Assembly:

The previous tenant in this space, Bayside Church, vacated after they purchased their own property. This building sat vacant for one month before Streamline leased it. Streamline Church was founded in 2007 by Pastor Dave Novak and is part of the Assemblies of God church. Today there are nearly 13,000 Assemblies of God churches in the US, and this congregation has several hundred members and is growing. Their lease expires after our anticipated hold period.

Go Green Sustainability Centers:

Go Green Sustainability Centers provides waste transportation, management, remediation, and recycling services through the Greater Sacramento Region. The company recycles and destroys a wide range of e-waste items like computers, hard drives, monitors, cell phones, printers, scanners, etc. This location is primarily a collection center. They are paying a well below market rate, and appear to be a rate-sensitive user. As such, we have modeled them with a 50% renewal probability. Recapturing their space, which is readily divisible and improved as multiple small suites that were combined, can be easily repositioned for a variety of small light industrial users. In addition, this building offers exceptional 99 Freeway visibility, and the potential to create small fenced yard areas that are very desirable for small users that need outside storage.

Nursing Practice & Education:

Nursing Practice has been a tenant in the project since 2009 and has expanded and renewed with a series of renewal options. They are Sacramento’s premier institution for Licensed Vocational Nursing, Certified Nurse Assistant, and Home Health Aid training. Their use is very difficult to replicate and would be expensive and disruptive to relocate. They have secured licensing and operating permits that are tied specifically to this location, and are difficult to obtain and replace. They have operated and grown in this location for 13 years with no intentions of relocating. They continue to make significant investments in the facility, and this location is ideal for their students given the freeway access and visibility of the property. The healthcare industry is expanding and the demand for trained nurses is at an all-time high.

Comparables

Lease Comparables

  9844 Business Park Dr 4949 Florin Perkins Rd 9880 Waterman Dr Averages Subject
Date Signed 3/1/2022 12/1/21 9/1/2020    
Year Built 1980 1987 2006 1984 1985-2005
Tenant Lease Size 3,733 3,408 2,300 3,147 Various
Building NRSF 20,800 17,672 17,560 19,236 83,549
Rental Rate (Monthly) $0.85/SF $0.85/SF $0.90/SF $0.87/SF Various - $0.55-0.85/SF
Rental Rate (Annual) $10.20/SF $10.20/SF $10.80/SF $10.40/SF Various - $6.00 - $10.20
Lease Type NNN NNN NNN NNN NNN
Location Sacramento, CA Sacramento, CA Sacramento, CA   Sacramento, CA
Distance from Subject 13.1 mi 5.3 mi 11.8 mi 10.1 mi  

Sales Comparables

  Alpine Industrial Park 1 & 3 Wayne Ct Pacific Business Plaza Averages Subject
Date Sold 2/25/2022 2/1/2022 10/1/2021    
Year Built 1984 1988 1984 1985 1985
SF 142,190 52,800 87,250 94,080 83,549
Sale Price $21,895,000 $6,230,000 $11,500,000 $13,208,333 $10,350,000
$/SF $148/SF $118/SF $132/SF $133/SF $124/SF
Cap Rate 4.22% 3.95% N/A 4.09% 4.26%
Location Sacramento, CA Sacramento, CA Sacramento, CA   Sacramento, CA
Distance from Subject 4.8 mi 5.4 mi 14.3 mi 8.2 mi  
Location

Market Overview

At the end of the 4th Quarter 2021, the greater Sacramento industrial market added 4.5 MSF of new dock-high distribution completions and enjoyed 2.925 MSF of net absorption. The Sacramento industrial market, which comprises 185M SF, is currently experiencing record low vacancy of 1.9% and record high average asking rents of $0.74/SF/month NNN. The market is showing no signs of slowing down. As a matter of fact, industrial rents in Sacramento over the last three years have increased 25% and are projected to increase 28.8% over the next five years. 

For the year-end 2021, Sacramento experienced a record 6.7 MSF of positive net absorption of industrial space - a 160% increase over last year. The big-box segment (500,000 SF +) has a current market vacancy of 0.9% and average asking rates increased by 13.4% year-over-year. 

Smaller Buildings outpace larger distribution assets:
The smaller building inventory is 76 MSF and has not seen any supply additions in decades. Nor are there any small building projects planned or under construction.  

Average asking rents for smaller Sacramento industrial properties between 4,000 - 50,000 SF, like the Subject Property, have increased over the last four years from $0.72/SF/month NNN to the current $0.98/SF/month NNN, representing a 36% increase in asking rental rates. 

Submarket Overview

The submarket of South Sacramento, with a base of over 5.7M SF of industrial product, has the lowest vacancy rate in the region at 0.3%.

There is currently no industrial product under construction in the South Sacramento submarket. Additionally, there are no multi-tenant light industrial parks planned or under development in the Sacramento region. This Property presents a unique opportunity for an investor to invest capital in an industrial value-add, lease-up, and mark-to-market strategy in an environment with fixed supply and robust demand. 

The Property is significantly below a replacement cost of $16,700,000 or $200 PSF.  

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount   $/SF
Debt $8,175,000   $97.85
GP Investor Equity $1,050,666   $12.58
LP Investor Equity $3,495,000   $41.83
Total Sources of Funds $12,720,666   $152.25
       
Uses of Funds $ Amount   $/SF
Purchase Price $9,750,000   $116.70
Leasing Costs $650,658   $7.79
CapEx $1,066,205   $12.76
Operating Deficit Funding $42,136   $0.50
Working Capital $400,906   $4.80
Financing Fees $294,922   $3.53
Closing Costs(1) $515,838   $6.17
Total Uses of Funds $12,720,665   $152.25

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

(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Pacific West Bank
  • Initial Loan Balance: $6,416,000 at Acquisition
  • Future Funding: $1,759,000 for Tenant Improvements, Leasing Commissions and Capital Improvements
  • Loan-to-Cost: 65.8%
  • Term: Four years + one year extension
  • Interest Type: Floating
  • Rate: SOFR + 300 bps
  • Interest-Only Period: 36 months
  • Prepayment Terms: Open prepay
  • Extension Requirements: DSCR not less than 1.20x
  • Borrower Guarantees: Rising, LLC to provide debt service guaranty and standard non-recourse carve out guarantee and environmental indemnity satisfactory to Lender

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

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

Distributions

Rising Realty Partners intends to make distributions as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
  2. 80% / 20% (80% to Investors / 20% to Promoted/Carried Interest) of excess cash flow to a 12.0% IRR;
  3. 70% / 30% (70% to Investors / 30% to Promote/Carried Interest) of excess cash flow to a 16.0% IRR;
  4. 60% / 40% (60% to Investors / 40% to Promote/Carried Interest) of excess cash flow thereafter.

Rising Realty Partners 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 October 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Rising Realty Partners, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Rising Realty Partners 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
Effective Gross Revenue   $915,710 $1,110,797 $1,107,722
Total Operating Expenses   $443,661 $467,466 $478,877
Net Operating Income   $472,049 $643,331 $628,845
             
Project-Level Cash Flows
      Year 0 Year 1 Year 2 Year 3
Net Cash Flow   ($4,545,666) $103,127 $126,523 $7,861,231
             
Investor-Level Cash Flows(1)
      Year 0 Year 1 Year 2 Year 3
Net Cash Flow   ($3,495,000) $76,788 $62,329 $5,449,723
             
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
      Year 0 Year 1 Year 2 Year 3
Net Cash Flow   ($50,000) $1,099 $892 $77,965

(1) Returns are net of all fees.  Such Fees include fees paid to RM Admin, an affiliate of RealtyMogul, who charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor.  Please see the Fees and Disclaimers sections and Disclaimers sections below for additional information concerning fees paid to RM Admin. 

RM Technologies, LLC and its affiliates does not provide any assurance of returns.  The content on this Page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof.  Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates.  There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved.  For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below. 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Rising Realty Partners' materials for details. The following fees and compensation will be paid(2)(3)(4):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition 2.5% of Purchase Price Sponsor Purchase Proceeds  
Disposition 0.25% of Sale Price Sponsor Sale Proceeds  
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee $40,000 Sponsor Cash Flow Annually
Property Management Fee Up to 5% of EGI Sponsor Cash Flow  
Administrative Services Fee 1.0% of Equity(1) RM Admin(3) Cash Flow  

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

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

(3) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies, LLC’s proprietary Platform and receive Platform-related services.  An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s).  RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

(4) RM Admin, an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor. RM Admin’s administrative services and fees are disclosed in the relevant operating agreement(s). RM Admin’s receipt of administrative fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

Disclaimers/FAQs
Disclaimers

The content on this Page was provided by the Sponsor or an affiliate thereof.  Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  No part of the content and information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s offering materials.  None of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.

The content on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s offering documents, including, without limitation, the Private Placement Memorandum, Operating Agreement, Subscription Agreement and all exhibits and other documents attached thereto or referenced therein (collectively, the "Investment Documents").  The content on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment.  The content on this page should not be used as a primary basis for an investor’s decision to invest.  In the event of an inconsistency between the content on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents.  The content on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the discretion of the Sponsor. 

Assumptions and projections included in the content on this Page are not reflective of the position of RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates.  There can be no assurance that the Sponsor’s methodology used for calculating any projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate.  The Sponsor’s Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Targets are not a predictor, projection or guarantee of future performance.  There can be no assurance that the Sponsor’s Targets will be met or that the Sponsor will be successful in meeting these Targets.  Target returns should not be used as a primary basis for an investor’s decision to invest.

This real estate investment is speculative and involves substantial risk.  There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved.  In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses.  A loss of part or all of the principal value of your investment may occur.  You should not invest unless you can readily bear the consequences of such loss.  Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.

Please see the applicable Investment Documents for disclosure relating to forward-looking statements.  All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents.  Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.  Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

The interests offered by the Sponsor will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement.”).  In addition, the interests will not be registered under any state securities laws in reliance on exemptions from registration.  Such interests are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption.  All Private Placements on the RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act.  Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.

RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies LLC’s proprietary Platform and receive Platform-related services.  An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

RM Admin, an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor.  RM Admin’s administrative services and fees are disclosed in the relevant operating agreement(s). RM Admin’s receipt of administrative fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

RealtyMogul is not a registered broker-dealer, investment adviser or crowdfunding portal.  Nothing on this Page should not be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security.  Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.

For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.

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