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Funded
Multifamily
Lakeshore Commons Apartments
Oak Creek, WI
INVESTMENT STRATEGY
Development
INVESTMENT TYPE
Equity
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100% funded
Offered By F Street Development Group
19.2%* TARGET IRR 18.2%-20.2%
2.34X* TARGET EQUITY MULTIPLE
Estimated Hold Period 5 Years
Estimated First Distribution 12/2024
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Overview
Lakeshore Commons Apartments (the "Property) will be a 199-unit multifamily property within an amenity-rich, three-phase residential master-planned community located along the shores of Lake Michigan in Oak Creek, Wisconsin.
Location

As a transformative project for the City of Oak Creek’s lakefront that builds upon the previous new development of Lake Vista Park, the City is providing a $30 million TIF to fund the infrastructure and incredible amenity package across all three phases of this master planned community. The site is also directly north of Bender Park, 14 minutes from Drexel Town Square, and 10 minutes from I-94.

Co-Invested

The Developer is contributing the land at cost totaling $1.23M (or $6,165/unit) and is co-investing $1,145,000 of the total $12,345,000 equity stack directly. Of the total $49.445M million stack, the Developer has secured a $37.1M construction loan with Bremer Bank (floating interest rate of 2.1% + 30-day SOFR, with a 36-month Interest Only period). 

Class A

This investment opportunity aligns with the Developer’s investment thesis of developing quality Class A multi-family housing in under-served markets in Wisconsin by incorporating well-crafted design, and amenity-rich features to provide residents with a desirable community to be proud of to call home. Development amenities include a community courtyard, outdoor pool, activated clubroom and lounge, elevated fitness center, theater room, and covered parking. Unit amenities include stainless steel appliances, quartz countertops, package room, open concept floor plans, and 9-foot ceilings. Neighborhood amenities include a dog park, community gardens, pocket parks, pedestrian trails, playgrounds, Oak Leaf Trail, Lake Vista Park, and Bender Park.

Property At A Glance
# of Units 199
# of Buildings 2
First Units Delivered July 2023
Project Stabilization October 2024
Land Acquisition Price $1,227,221
Total Development Budget

$49,445,000

Investment Highlights
This investment offers LP Investors an attractive target internal rate of return of over 19%, and Sponsor will send distributions to investors on a monthly basis.
Lakeshore Commons represents the culmination of a significant effort by the City of Oak Creek and the Wisconsin Department of Natural Resources to clean, reclaim, and intentionally repurpose a long-vacant former brownfield site for public benefit. The City is investing approximately $30 million in new infrastructure to the site, across three phases. Phase 1 is receiving $14.62 million for new roads, utilities, and amenities that enhance the neighborhood and connect the community to neighboring parks and trails.
Sponsor is developing this at $49.445M of total cost and projects a value of $72.8M at the sale (assuming a 5% cap rate).
Lakeshore Commons creates a sense of community by providing a thoughtful, master-planned neighborhood along the lakefront between Milwaukee and Chicago. Close to several large companies and nearby restaurants, shopping, county parks and trail systems, golf courses, and great schools, this development is a destination for residents and visitors alike.
The Sponsor has partnered with industry leaders to execute upon this vision and make this project shovel-ready: the site is expected to be ready for construction in June 2022.
Building amenities include: community courtyard; outdoor pool and lounge/grilling stations; activated clubroom and lounge; elevated fitness center; theater room; covered parking; package room. Unit amenities include: stainless steel appliances; quartz countertops; open concept floor plans; 9 foot ceilings. Neighborhood amenities include: dog park; community gardens; pocket parks; pedestrian trails; playgrounds; Oak Leaf Trail; Lake Vista Park; Bender Park.
Management
Cumulative Distributions

F Street Development Group

F Street Development Group

F Street Development Group ("FSDG") is a privately-held investment group dedicated to creating value and above-market returns for their investors. FSDG invests responsibly in commercial real estate through a proven investment strategy while helping to shape and support the communities they invest in, across various asset classes. Their creative approach, in-depth understanding of the market, and relationships with real estate professionals help unlock value for each investment they undertake. Through deep-rooted and diverse relationships in commercial real estate, they have developed expertise in multi-family, office, industrial, and mixed-use properties. Over the past 20+ years, the principals have been involved in the investment and development of commercial real estate projects in the Milwaukee area and beyond with a typical deal size ranging from $2 million to $50 million. They are committed to best practices diligent research to uncover compelling investment and development opportunities so that they can create unmatched opportunities for their investors. In 2015, FSDG partnered with RINKA on Building 42, a mixed-use commercial office and retail space. Since then, FSDG and RINKA have partnered on multiple multifamily and mixed-use projects, including Greenlink Residences, Lakeshore Commons, River Point District, and many others. FSDG is pleased to present Lakeshore Commons Phase 1A.

https://www.fstreetdevelopment.com/

RINKA

RINKA has a commitment to designs that stand the test of time and ensure a long-lasting positive effect on the quality of life of the community. RINKA has extensive experience working with developers to deliver iconic projects to create destinations that are anchored by residential developments. In addition to top-tier architecture and design, RINKA specializes in master planning, rezoning, and achieving local and state approvals - all of which minimizes risk and allows the development to realize its highest and best use.

Most recently, RINKA partnered with F Street Development in the design and development of a unique and dynamic residential project in Brown Deer, Wisconsin. They also partnered on an exciting mixed-use development in the Historic Brewery District. This transformed a former Pabst distribution plant into the Factory Office Suites, restaurant, events space, and headquarters for Milwaukee Brewing Company. The two firms continue to work on many exciting projects in Wisconsin, including a master-planned community in LaCrosse, and another master-planned community in Pleasant Prairie. The two firms’ aligned missions are ultimately what continues to drive them to build meaningful projects to enhance the communities they invest in. This is what has generated past success and will continue to lay the foundation to continue creating important projects for neighborhoods that seek their services.

https://www.rinka.com/

  • Scott Lurie
    Principal, Investments & Development
  • Matt Rinka
    Partner, Architecture and Design
Scott Lurie
Principal, Investments & Development

Scott is the founder of F Street Group, an investment company that includes a number of industry vertical investments, including real estate, hospitality, lending, and emerging markets. After graduating from George Washington University, Scott returned home to Milwaukee in 2004 and began investing in real estate. Since then, he’s created a number of investment-specific portfolios using the “F Street” brand, including Development, Hospitality, and Investments. As President of F Street Development, Scott has been the driving force behind acquiring the initial real estate assets and continues to look for new investments that meet his stringent criteria, while focusing on helping to improve the communities where he invests.

Matt Rinka
Partner, Architecture and Design

Matt’s passion is to meaningfully enhance the built environments of our local and regional communities. Since founding RINKA in 2006 with a vision “to inspire through thoughtful design”, the firm has designed many high-profile projects in the Milwaukee area, Midwest, and across the United States. His design leadership has been recognized with many industry awards, including the Architect of the Year from The Daily Reporter, numerous AIA awards, Mayor’s Urban Design Awards, and recognition as Milwaukee Business Journal’s 40 Under 40 class of 2012.

Track Record

Property City, State Asset Type Acq Date Units or SF Involvement Purchase Price Development Cost Basis Sale Price Actual/Projected LP IRRs Notes
F STREET DEVELOPMENT GROUP (F STREET GROUP + RINKA)
HQ501 Milwaukee, WI Commercial Office 2019 370,000 SF Developer/GP $4,000,000 - $8,000,000 16% actual IRR is illustrated
4949 Office Building Brown Deer, WI Commercial Office 2020 60,000 SF Developer/GP $2,300,000 - $4,775,000 - partial sale of the entire asset
Greenlink Residences Brown Deer, WI Multifamily Residential 2019 134 units Developer/GP $832,654 27,925,000 - 29% projected IRR is illustrated
Wilson Drive Shorewood, WI Commercial Retail 2018 15,100 SF Developer/GP $750,000 1,010,000 - 27% projected IRR is illustrated
Riverside North La Crosse, WI Master Planned Residential N/A 390,750 SF Developer/GP TBD 70,000,000 - - reflective of development budget
Lakeview Racine, WI Mixed Use Multifamily N/A 292,925 SF Developer/GP TBD 60,000,000 - - reflective of development budget
Total           $7,882,654 $158,935,000 $12,775,000    
                     
F STREET GROUP City, State Asset Type Acq Date Units or SF Involvement Purchase Price Development
Cost Basis
Sale Price Actual/Projected
LP IRRs
Notes
Building 42 Milwaukee, WI Commercial Office / Retail 2015  120,000 SF   Developer/GP  - $21,000,000 - -  
Tannery Falls Sheboygan Falls, WI Multifamily Residential 2019 71 units  Developer/GP  $500,000 $13,800,000 - 52% projected IRR is illustrated
The Glen Milwaukee, WI Multifamily Residential 2016 104 units  Developer/GP  $3,000,000 - - -  
Skyview Terraces Albany, NY Multifamily Residential 2019 112 units  Developer/GP  $347,200 $2,587,200 - -  
The Corners of Copley Akron, OH Multifamily Residential 2021 104 units  Developer/GP  $3,640,000 $5,928,000 - -  
The Pointe at East River Place Jackson, MS Multifamily Residential 2021 112 units  Developer/GP  $3,800,000 $6,264,000 - -  
Cypress Flats Tyler, TX Multifamily Residential 2022 128 units  Developer/GP  $5,120,000 $7,936,000 - -  
F Street Development 1919, LLC Appleton, WI Commercial Industrial 2019 152,000 SF  Developer/GP  $4,500,000 - $7,250,000 77% actual IRR is illustrated
F Street Appleton I, LLC Appleton, WI Commercial Industrial 2021  219,440 SF   Developer/GP  $532,000 $12,000,000 - -  
F Street Appleton II, LLC Appleton, WI Commercial Industrial 2022  249, 570 SF   Developer/GP  $443,080 $17,000,000 - -  
Total           $21,882,280 $86,515,200 $7,250,000    
 
RINKA'S RELEVANT EXPERIENCE: 
- as Investor, MCS Development LLC (an affiliate of RINKA INC which has common ownership with Matt RINKA as majority owner of both companies) was LP Investor.
- as KEY Strategic Partner, RINKA INC provided expanded services beyond traditional architectural services, such as (including ALL or in part of) the following: partnering with the developer on the pursuit of a SITE or PROJECT through an RFP process, acting as the masterplanner directly hired by municipalities, parcel identification, rezoning of Properties, PUD Development, and OTHER due diligence services.
- as Architect, RINKA was hired as a Vendor on those specific projects to execute on more traditional architectural services.
     
RINKA City, State Asset Type Acq Date  Units or SF   Involvement    Approximate
Construction Budget
     
Parterre Oak Creek, WI Multifamily Residential 2018  240 units  Third Party Architect, Key Strategic Partner  - $38,700,000      
Emerald Row Oak Creek, WI Multifamily Residential 2015  167 units  Third Party Architect, Key Strategic Partner  - $25,000,000      
Forge and Flare Oak Creek, WI Multifamily Residential 2015  78 units  Third Party Architect, Key Strategic Partner  - $16,000,000      
The Quin Milwaukee, WI Multifamily Residential 2017  70 units  Third Party Architect  - $9,930,000      
The Yards Milwaukee, Wi Multifamily Residential 2019  86 units  Third Party Architect, Investor  - $13,893,000      
The Contour Milwaukee, Wi Multifamily Residential 2017  88 units  Third Party Architect  - $14,500,000      
The Couture - Multifamily & Commercial Milwaukee, WI Multifamily Residential 2016  322 units,
43,000 SF commercial 
Third Party Architect, Key Strategic Partner  - $188,000,000      
The Moderne - Multifamily Milwaukee, WI Multifamily Residential 2010  203 units  Third Party Architect, Key Strategic Partner  - $54,500,000      
RiverOne - Multifamily Milwaukee, WI Multifamily Residential 2019  95 units  Third Party Architect, Key Strategic Partner  - $22,647,000      
RiverOne - Commercial Milwaukee, WI Commercial Office 2019  220000 SF  Third Party Architect, Key Strategic Partner  - $30,000,000      
Johnson Financial Group Milwaukee, WI Commercial Office 2018  45,000 SF  Third Party Architect  - $8,000,000      
Badger Mutual Milwaukee, WI Commercial Office 2016  16,800 SF  Third Party Architect  - $1,750,000      
Cream City Labs Milwaukee, WI Commercial Office 2016  20,350 SF  Third Party Architect  - $1,950,000      
Pabst Professional Center Milwaukee, WI Commercial Office 2013  71,200 SF  Third Party Architect  - $6,500,000      
The Bradley Foundation Milwaukee, WI Commercial Office 2014  14,500 SF  Third Party Architect  - $1,700,000      
Schlitz Park Milwaukee, WI Commercial Office 2020  32,000 SF  Third Party Architect, Key Strategic Partner  - $5,000,000      
JLL Milwaukee Milwaukee, WI Commercial Office 2019  5,000 SF  Third Party Architect  - $700,000      
Forward Space Milwaukee, WI Commercial Office 2019 10,000 SF Third Party Architect  - $1,500,000      
Total             $440,270,000      

The above bios and track record were provided by F Street Group and Rinka and have not been independently verified by RealtyMogul.

Business Plan

F Street Development Group (“The Sponsor”) is pleased to bring to market a truly outstanding and unique multifamily development within a three-phase residential community that is positioned to absorb quickly. This will be the first phase of multifamily within the residential community and will consist of 199 rental units (hereafter referred to as “Phase 1a”). Based on modern housing movements across the United States, Lakeshore Commons is focused on providing lot sizes and rich amenities that make sense for the modern family. Designed by award-winning architecture firm RINKA, the residences in Lakeshore Commons will be unlike any in the Midwest. Delivery of the entire residential community will occur over three phases, with approximately 350 total multifamily units and 100 for-sale condominium units delivered in Phase 1. Phase 1 of the residential development will also provide amenities for the Oak Creek community, such as a public plaza, basketball, tennis and pickleball courts, and a pedestrian trail with pocket parks, connecting every corner of the development to Lake Vista Park and Lake Michigan. The Sponsor began infrastructure construction in October 2021 for roads and utilities and anticipates starting construction on Phase 1A Multifamily in June 2022.

Development Costs

Hard Costs $ Amount Per Unit
Procurement and Contracting Requirements $2,778,875 $13,964
General Requirements $100,647 $506
Concrete $4,217,944 $21,196
Masonry $250,723 $1,260
Metals $821,232 $4,127
Wood, Plastics, Composite $9,782,559 $49,159
Thermal and Moisture Protection $3,155,362 $15,856
Openings $2,661,648 $13,375
Finishes $3,642,618 $18,305
Specialties $245,179 $1,232
Equipment $761,186 $3,825
Furnishings $1,608,023 $8,081
Swimming Pool $149,705 $752
Conveying Equipment $630,655 $3,169
Fire Suppression $651,581 $3,274
Plumbing $2,222,721 $11,169
HVAC $1,853,286 $9,313
Electrical $2,673,150  
Earthwork $620,299 $3,117
Exterior Improvements $635,850 $3,195
Utilities $304,816 $1,532
Total Hard Costs $39,768,059 $199,839
     
Soft Costs    
Land Acquisition $1,227,221 $6,167
Engineering & Architectural $1,392,500 $6,997
Construction Fees, Insurance, & Loan Fees $991,093 $4,980
Owner Contingency $1,501,443 $7,545
Soft Costs $495,001 $2,487
Developer Fee $888,393 $4,464
Construction Fee $1,250,000 $6,281
Technology Platform Fee $248,012 $1,246
Interest / OpEx Reserve $1,500,000 $7,538
Technology Admin Services Reserve $110,000 $553
Structural/Replacement Reserve $73,278 $368
Total Soft Costs $9,676,941 $48,628
     
Grand Total $49,445,000 $248,467
Property

Investor Q&A 6/15/22

 

Property Details

The Property features two, new construction, Class A buildings with thoughtful amenities. The north building is a 3-story above grade, one-story below grade building offering 84 apartment units above covered parking. The south building is a 4-story above grade, one-story below grade building with 115 apartment units above covered parking. These buildings frame Lake Michigan and offer Best in Class amenities, including an outdoor pool, clubhouse, two theater rooms, dedicated parking, storage lockers, and an elevated fitness center. The green courtyard is available to residents of the overall development, as well as the community at large - it can be used to host public events and performances, connects to Lake Vista Park, and offers a center of activity and engagement within the overall development.

Unit Mix

Unit Type # of Units Avg SF/Unit Pro Forma Rent (Per Unit) Pro Forma Rent (Per SF)
A1A - Junior 1 Bedroom / 1 Bath 1 589 $1,480 $2.51
A1 - Junior 1 Bedroom / 1 Bath 18 575 $1,480 $2.57
B1A - 1 Bedroom / 1 Bath 2 743 $1,655 $2.23
B1 - 1 Bedroom / 1 Bath 69 673 $1,630 $2.42
B2- 1 Bedroom / 1 Bath 7 734 $1,605 $2.19
B3 - 1 Bedroom / 1 Bath 1 833 $1,730 $2.08
C1 - 1 Bedroom + Den / 1 Bath 7 909 $1,855 $2.04
C2 - 1 Bedroom + Den / 1 Bath 7 933 $1,875 $2.01
C3 - 1 Bedroom + Den / 1 Bath 7 893 $1,830 $2.05
D1 - 2 Bedroom / 2 Bath 14 1,049 $1,905 $1.82
D2 - 2 Bedroom / 2 Bath 6 1,023 $1,855 $1.81
D2A - 2 Bedroom / 2 Bath 1 1,030 $1,855 $1.80
D3 - 2 Bedroom / 2 Bath 7 1,050 $1,905 $1.81
D4 - 2 Bedroom / 2 Bath 7 1,014 $1,805 $1.78
D5 - 2 Bedroom / 2 Bath 6 1,093 $1,955 $1.79
D6 - 2 Bedroom / 2 Bath 7 1,201 $1,975 $1.64
D7 - 2 Bedroom / 2 Bath 5 1,140 $1,955 $1.71
D8 - 2 Bedroom / 2 Bath 5 1,225 $2,080 $1.70
D9 - 2 Bedroom / 2 Bath 2 1,037 $1,875 $1.81
D10 - 2 Bedroom / 2 Bath 1 1,174 $1,975 $1.68
E1 - 3 Bedroom / 2 Bath 7 1,375 $2,530 $1.84
E2 - 3 Bedroom / 2 Bath 7 1,266 $2,455 $1.94
E3 - 3 Bedroom / 2 Bath 5 1,499 $2,580 $1.72
Averages   886 SF $1,812 $2.05
Totals 199 176,300 SF $4,327,920  

 

Comparables

Lease Comparables

  42 Hundred on the Lake Parterre at Emerald Row The Mariner The Statesman Emerald Row Averages Subject (Weighted Avg)
Year Built 2021 2020 2019 2019 2015 2019 2023
# of Units 236 240 221 180 167 209 199
Average Rental Rate $2,251 $1,984 $2,128 $1,545 $1,967 $1,975 $1,812
Average Unit Size 895 SF 1,144 SF 991 SF 1,014 SF 1,048 SF 1,018 SF 886 SF
Average $/SF $2.52/SF $1.73/SF $2.15/SF $1.52/SF $1.88/SF $1.96/SF $1.90/SF
Levels 4 4 2 3 4 4 4
Occupancy 98% 97% 94% 96% 99% 97% 95%
Distance from Subject 7.0 mi 5.2 mi 7.5 mi 8.0 mi 5.3 mi 6.6 mi  
               
$/Unit (Studio) N/A $1,268 N/A N/A N/A $1,268 $1,480
SF (Studio) N/A 569 SF N/A N/A N/A 569 SF 576 SF
$/SF (Studio) N/A $2.23/SF N/A N/A N/A $2.23/SF $2.54/SF
               
$/Unit (1x1) $1,560 $1,685 $1,585 $1,455 $1,530 $1,563 $1,677
SF (1x1) 624 SF 722 SF 712 SF 790 SF 785 SF 727 SF 730 SF
$/SF (1x1) $2.50/SF $2.33/SF $2.23/SF $1.84/SF $1.95/SF $2.17/SF $2.13/SF
               
$/Unit (2x2) $2,943 $2,091 $2,208 $1,635 $1,935 $2,162 $1,919
SF (2x2) 1,106 SF 1,176 SF 1,128 SF 1,045 SF 1,330 SF 1,157 SF 1,088 SF
$/SF (2x2) $2.66/SF $1.78/SF $1.96/SF $1.56/SF $1.45/SF $1.88/SF $1.76/SF
               
$/Unit (3x2) N/A $2,890 $2,590 N/A $2,436 $2,639 $2,516
SF (3x2) N/A 1,643 SF 1,362 SF N/A 1,570 SF 1,525 SF 1,367 SF
$/SF (3x2) N/A $1.76/SF $1.90/SF N/A $1.55/SF $1.74/SF $1.83/SF

Sales Comparables

  Vim + Vigor 1 Glenn Place Quartet 1910 on Water Vantage on the Park Enclave Averages Subject (At Exit)
Address 1003 W Winnebago St., Milwaukee, WI 5351 Nobel Dr, Fitchburg, WI 211 W Mineral St., Milwaukee, WI 1910 N. Water St., Milwaukee, WI 916 E State St., Milwaukee, WI 1200 N 62nd St., Wauwatosa, WI   4001 Lake Vista Parkway, Oak Creek, WI
Date Sold 7/1/2021 7/1/2021 10/1/2021 6/1/2020 11/1/2020 12/1/2020    
Year Built 2018 2019 2020 2012 2019 2011 2017 2022
# of Units 274 191 48 68 96 192 145 199
Occupancy 95% N/A 93% 96% 97% 99% 96%  
Average Unit Size 547 SF 908 SF 1,000 SF 901 SF 787 SF 1,189 SF 889 SF 886 SF
Sale Price $53,000,000 $43,500,000 $11,950,000 $11,850,000 $32,500,000 $43,500,000 $32,716,667 $69,297,708
$/Unit $193,431 $227,749 $248,958 $174,265 $338,542 $226,563 $234,918 $348,230
$/SF $353/SF $251/SF $249/SF $193/SF $430/SF $190/SF $278/SF $300/SF
Cap Rate 5.00% 4.50% 4.53% 4.55% 4.89% 4.30% 4.63% 5.00%
Building Size 150,000 SF 173,428 SF 48,000 SF 61,292 SF 75,574 SF 228,347 SF 122,774 SF 231,000 SF

Additional Cap Rate Data

  River's Edge Shady Lane Apartments Normandy Village The Easton Jade at North Hills   Averages Subject (At Exit)
  2420 Watertown Rd,
Pewaukee, WI
17045 Apple Tree Ct,
Menomonee Falls, WI
2562 N 124th St,
Wauwatosa, WI
1632 N Franklin Pl, Milwaukee, WI 53202 12727 Good Hope Rd,
Menomonee Falls, WI
     
Date Sold 10/1/2021 10/1/2021 12/1/2021 10/1/2021 3/1/2021      
Year Built 1993 1995 1968 2019 2018   1999 2022
# of Units 340 56 275 96 139   181 199
Sale Price $60,000,000 $10,550,000 $52,000,000 $27,400,000 $28,100,000   $35,610,000 $69,297,708
$/Unit $176,471 $188,393 $189,091 $285,417 $202,158   $208,306 $348,230
Cap Rate 4.60% 4.75% 4.53% 3.34% 4.95%   4.43% 5.00%
Distance to subject 28.6 miles 11.2 miles 15.7 miles   9.8 miles      

 

Location

Market Overview

In 2019, Wisconsin had a population of 5.82M people with a median age of 39.9 and a median household income of $64,168. Between 2018 and 2019, the population of Wisconsin grew from 5.81M to 5.82M, a 0.153% increase and its median household income grew from $60,773 to $64,168, a 5.59% increase. The 5 largest ethnic groups in Wisconsin are White (Non-Hispanic) (80.8%), Black or African American (Non-Hispanic) (6.3%), White (Hispanic) (4.44%), Asian (Non-Hispanic) (2.86%), and Other (Hispanic) (1.98%). 8.75% of the households in Wisconsin speak a non-English language at home as their primary language. 97.3% of the residents in Wisconsin are U.S. citizens. The largest universities in Wisconsin are the University of Wisconsin-Madison (15,614 degrees awarded in 2019), the University of Wisconsin-Milwaukee (5,754 degrees), and the Madison Area Technical College (3,932 degrees). In 2019, the median property value in Wisconsin was $197,200, and the homeownership rate was 67.2%. Most people in Wisconsin drove alone to work, and the average commute time was 21.5 minutes. The average car ownership in Wisconsin was 2 cars per household. Wisconsin borders Illinois, Iowa, Michigan, and Minnesota.

Submarket Overview

The primary geographic area for this development consists of south suburban Milwaukee. This area, which includes the municipalities of Oak Creek, Franklin, Muskego, New Berlin, South Milwaukee, St. Francis, Cudahy, Greendale, Greenfield, and Hales Corners, forms a relatively homogenous component of the Milwaukee region defined upon its dependence upon like sources of employment, socio-economic similarities in demographic and household composition, and the alignment and location of residential developments which will serve as a source of competition, both direct and indirect. Based upon an analysis of growth projections provided by the Southeastern Wisconsin Regional Planning Commission, the Wisconsin Department of Administration and Environics Analytics, it is estimated that this market area will grow by a total of 4,235 households during the 2019-2024 time period, or 847 annually.

  • 20.4% resident households under the age of 35
  • 37.2% resident households between 35 and 54
  • 34% households aged 55-74
  • 8% households aged 75+
  • 60.9% owners vs. 39.1% renters
  • More than sufficient demand from Oak Creek market, in addition to spillover potential from outside defined market area (i.e. other portions of Milwaukee region and Racine County)
  • Median salary of $78,378
    • 70% households earn $50k+ per annum
    • 37% households earn $100+
Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $37,100,000 $186,432
GP Investor Equity $1,145,000 $5,754
LP Investor Equity $11,200,000 $56,281
Total Sources of Funds $49,445,000 $248,467
     
Uses of Funds $ Amount $/Unit
Land Acquisition $1,227,221 $6,167
Construction Cost $39,768,059 $199,839
Engineering & Architectural $1,392,500 $6,997
Construction Fees, Insurance, & Loan Fees $991,093 $4,980
Owner Contingency $1,501,443 $7,545
Soft Costs $495,001 $2,487
Developer Fee $888,393 $4,464
Construction Fee $1,250,000 $6,281
Technology Platform Fee(1) $248,012 $1,246
Interest / OpEx Reserve $1,500,000 $7,538
Technology Admin Services Reserve $110,000 $553
Structural/Replacement Reserve $73,278 $368
Total Uses of Funds $49,445,000 $248,467

(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Bremer Bank
  • Term: 3 Years + 1 + 1
  • LTC: 75.0%
  • Estimated Proceeds: $37,100,000
  • Interest Type: Floating
  • Spread Above One-Month SOFR: 2.10% + 30 Day SOFR
  • Interest-Only Period: 36 Months
  • Amortization: 30 Years
  • Prepayment Terms: Borrower may prepay the variable rate loan at any time without premium
  • Extension Requirements: The Borrower will have two 1-year extension options available subject to the terms found in the Debt Service Coverage Ratio section and the following conditions:
    • No default status of the Loan
    • Project Completion and receipt of Certificate of Occupancy
    • A written request for the extension from the Borrower 45 days in advance, as well as payment of 10bps Extension Fee
    • Lender will have the option to reappraise the Project at the time Borrower notifies Lender of its intent to exercise Extension Options. LTV not to exceed 75%.
    • 1.20 times DCR by the maturity of the Initial Loan Term for Extension Option 1
    • 1.20 times DCR by the maturity of Extension Option 1 for Extension Option 2
    • If the Project does not meet either Extension Option Test, the Borrower will have the right to pay down the loan to meet the Extension Options Tests.
  • Modeled Refinance: No

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

F Street Development intends to make distributions as follows:

Operating Cash Flow:

  1. To the Investors, pari passu, all operating cash flows to a 7% Preferred Return;
  2. 25% promote to Sponsor to a 13% IRR - (67.1% to Investors / 32.9% to Sponsor);
  3. 35% promote to Sponsor to a 17% IRR - (58.2% to Investors / 41.8% to Sponsor);
  4. 50% promote to Sponsor thereafter - (44.8% to Investors / 55.3% to Sponsor).

Capital Event:

  1. To the Investors, pari passu, all cash flows from a capital event to a 7% Preferred Return;
  2. Return of capital balance
  3. 25% promote to Sponsor to a 13% IRR - (67.1% to Investors / 32.9% to Sponsor);
  4. 35% promote to Sponsor to a 17% IRR - (58.2% to Investors / 41.8% to Sponsor);
  5. 50% promote to Sponsor thereafter - (44.8% to Investors / 55.3% to Sponsor).

F Street Development 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 December 2024 and are projected to continue on a monthly basis thereafter. Distributions are at the discretion of F Street Development, who may decide to delay distributions for any reason, including maintenance or capital reserves.

F Street Development 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
Effective Gross Revenue     $1,637,018 $4,544,502 $5,051,392 $5,155,843
Total Operating Expenses     ($1,342,909) ($1,568,669) ($1,620,988) ($1,587,533)
Net Operating Income     $294,109 $2,975,833 $3,430,404 $3,568,310
                 
Project-Level Cash Flows
      Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
      ($12,345,000) $0 ($27,933) $1,209,255 $1,162,564 $36,977,443
                 
Investor-Level Cash Flows(1)
      Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow   ($5,500,000) $0 ($17,028) $483,753 $462,951 $11,913,496
                 
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
      Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow   ($50,000) $0 ($155) $4,398 $4,209 $108,305

(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 therefore.  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 LXMI Capital's materials for details. The following fees and compensation will be paid(1)(2)(3)(4):

Real Estate Company Fees:
Type of Fee Amount of Fee Received By Paid From
Developer Fee 2.5% of Hard Costs F Street OCLV MF 1, LLC Development Budget
Construction Management Fee 3.0% of Hard Costs and Soft Costs F Street OCLV MF 1, LLC Development Budget
       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Administrative Services Fee 1.0% of Equity Invested(1) RM Admin, LLC(4) Cash Flow
Property Management Fee 3.5% of EGR Harmoniq Residential(5) Operating Expenses

(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.

(5) Unaffiliated third party management company

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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