Staff Menu (IO ID#: 1927098):
EDIT IO DOCUMENTS
Funded
Multifamily
Tides on Oakland Hills Apartments
Fort Worth, TX
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
Add to Watchlist
100% funded
Offered By Tides Equities
20.2%* TARGET IRR 19.2%-21.2%
1.44X* TARGET EQUITY MULTIPLE
Estimated Hold Period 2 Years
Estimated First Distribution 7/2024
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Project Webinar
View The Webinar
Project Summary
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
Explore this Project
Overview
Tides Equities is under contract to purchase Tides on Oakland Hills (the "Property"), a 274-unit property located in Fort Worth, TX with immense value-add potential.
Management

Though the current owners have been good stewards of the Property, there exists an opportunity to capture significant upside via a thoughtful and strategic renovation. In addition to renovation upside, the Property will benefit significantly from improved management practices and the capture of loss-to-lease on current rents.

Portfolio

Tides has created economies of scale in this micro-location in which the Property will be their fourth asset and should be able to improve management efficiencies across the four properties.

Value-Add

There is ample opportunity to improve upon the existing scope, and planned renovations will follow the Tides Equities brand design, which includes new quartz countertops, stainless steel appliances, upgraded shaker-style cabinets with pulls, brushed nickel hardware, upgraded plumbing & lighting fixtures, a contemporary paint scheme, wood-like flooring and adding washers/dryers to each unit. This focus on interiors and accretive exterior improvements will allow Tides Equities to go on offense Day 1, driving up income with minimal transitional friction.

Property At A Glance
# of Units 274
# of Buildings 17
Year Built 1986
Parking Spaces 396
Exit Cap Rate 5.1%
Acquisition Price

$33,000,000

Investment Highlights
Attractive basis of $120k/unit and a Year 1 cap rate of 4.27%, which is where properties are trading in the DFW metro.
Improved economies of scale as this will be Tides 4th Property in the micro-location which has done very well within their portfolio.
Due to their expertise in the micro-location and property management group, they will be able to capture loss to lease upon renewals and new leases which is anywhere between $75-$100.
Located within the East Fort Worth submarket, one of the top-performing submarkets in all of DFW (ranked one of the top DFW submarkets in rent growth at 4.0%), the Property benefits from its close proximity to Downtown Fort Worth (10 minutes) - offering immediate access to the some of the Metroplex’s largest employers, world-class entertainment venues and highly acclaimed educational systems.
Superior property amenities compared to the micro-location with a swimming pool, turf soccer field, clubhouse, playground, and BBQ/Picnic area, making it a great community for families to call home
Management
Cumulative Distributions

Tides Equities

Tides Equities is a leading Commercial Real Estate Investment Company focused on investments throughout the Western United States. They specialize in well-located, Class-B, and Core Plus multifamily real estate with high value-add upside. Tides Equities brings institutional-grade acquisitions acumen and operational efficiency across all realms of multifamily real estate. One of the primary ways Tides provides value to their partners is through identifying and securing off-market transactions. Tides has acquired 23,300+ multifamily units across Arizona, Texas and Las Vegas with a total acquired portfolio value worth $4.6 billion, with 55% of that portfolio being acquired off-market. Tides has executed 27 dispositions totaling 6,100+ units for a net IRR of 54% and 1.9x MOIC.

Tides Equities has created a programmatic partnership with The Robinson Group, a property management company based in Phoenix. The Robinson Group acts as Tides' onsite arm for the execution of business plans, both on the management and construction management sides. In concert with Tides' expansion into the Dallas and Las Vegas markets, The Robinson Group has opened a Dallas office and relocated team members deeply familiar with the Tides process to Dallas and Las Vegas. In addition to the construction managers at The Robinson Group, Tides works directly with the same pre-approved general contractors, who know exactly how their renovations are done and are ready to start work on Day 1 of ownership with a minimal learning curve. The overarching theme of the Tides execution plan is efficiency by repetition and standardization. Tides now has a symbiotic relationship with the entire chain of vertical integration and can reproduce excellent results at any asset acquired.

https://www.tidesequities.com/
  • Ryan Andrade
    Principal
  • Sean Kia
    Principal
Ryan Andrade
Principal

Ryan Andrade has built a successful real estate career with expertise in acquisitions, investor relations, mortgage financing, sales brokerage, and financial modeling. Prior to his role as Co-Founder and Principal of Tides Equities, LLC, Mr. Andrade held a position as an Acquisitions Manager at TruAmerica Multifamily, one of the premier owners and operators of multifamily real estate in the United States. During his tenure at TruAmerica, Mr. Andrade managed the acquisition of over $2BN of value-add multifamily assets. Prior to TruAmerica, Mr. Andrade financed over $5BN in loan proceeds with Freddie Mac Multifamily, first in an underwriting capacity and later through loan originations. Further relevant past positions include roles with Deloitte & Touche LLP, as well as Sotheby’s International Realty. Mr. Andrade graduated Magna Cum Laude from the University of California, Santa Barbara with a Bachelor of Arts degree in Business-Economics and concentrations in Accounting and Entrepreneurship.

Sean Kia
Principal

Sean Kia has amassed extensive experience in commercial real estate that covers a wide range of disciplines including sourcing new acquisitions, financial modeling, direct lending, mortgage banking, and asset management. Prior to his role as Co-Founder and Principal of Tides Equities, LLC, Mr. Kia worked for Benedict Canyon Equities (BCE), a national real estate investment company focusing on multifamily value-add acquisitions in the United States. During his tenure at BCE, Mr. Kia was a lead underwriter for new acquisitions and played a significant role in the portfolio management of BCE’s $2BN portfolio. Prior to BCE, Mr. Kia contributed in managing a $4BN dollar portfolio for JRK Property Holdings, another national real estate investment company focusing on multifamily value-add acquisitions in the United States. Mr. Kia holds a Bachelor of Science degree in Business, with a concentration in Finance from Boston University School of Management.

Track Record

Tides Equities Current Portfolio as of March 2022

Property Name Purchase Date Year Built Units State Purchase Price Total Cost
Tides at 5400 3/17/2022 1981 168 TX(2)    
Tides on Cave Creek 3/15/2022 1986 206 AZ $59,000,000 $66,960,000
Tides on 7th 3/1/2022 1983 308 AZ $105,000,000 $115,333,232
Tides on 71st 2/28/2022 1985 1,012 AZ $255,000,000 $278,500,000
Tides at North Dallas 2/17/2022 1980 232 TX    
Tides on Esperanza 2/4/2022 1975/1980 370 TX    
Tides at Green Valley 1/27/2022 1988 376 NV $113,500,000 $126,495,000
Tides on Trinity 1/25/2022 1996/2000 500 TX    
Tides on Chadwick 1/21/2022 2009 264 TX    
Tides on Gilbert East 1/18/2022 1987 152 AZ $40,800,000 $46,660,000
Tides on Gilbert West  1/18/2022 1985 113 AZ $30,700,000 $35,300,000
Tides on 44th 1/18/2022 1983 256 AZ $50,950,000 $59,434,725
Tides on Copper Creek 1/13/2022 1978/1986/2016 636 TX    
Tides at North Paradise 1/7/2022 1972 557 NV $105,900,000 $122,520,000
Tides on Park Lane 1/7/2022 1975 343 TX    
Tides at East Summerlin 1/5/2022 1984 168 NV $36,900,000 $43,025,000
Tides at Highland Meadows 12/22/2021 1984 & 1986 650 TX    
Tides on Twain 12/1/2021 1989 192 NV $40,000,000 $47,269,000
Tides on Indios 12/1/2021 1990 152 NV $29,500,000 $35,492,221
Tides at Papago (1) 12/1/2021 1982 199 AZ $44,500,000 $49,136,210
Tides at Lewisville 12/1/2021 1994 404 TX    
Tides on Haverwood 12/1/2021 1994 376 TX    
Tides on Southern 11/30/2021 1984 306 AZ $84,250,000 $92,500,000
Tides at Mesa 11/30/2021 1986/1987 464 AZ $133,250,000 $145,000,000
Tides at Meadowbrook 11/29/2021 1984 154 TX    
Tides on McDowell 11/19/2021 1985 274 AZ $59,600,000 $67,550,000
Tides on East Cactus 11/17/2021 1981 179 AZ $28,640,000 $34,400,000
Tides on Wynn 11/16/2021 1979/1980/1983 555 NV $113,500,000 $129,490,000
Tides on West Dunlap 11/16/2021 1982 137 AZ $32,000,000 $36,700,000
Tides at Eastchase 10/29/2021 1984 340 TX    
Tides on Osborn 10/22/2021 1981 185 AZ $43,750,000 $50,615,000
Tides at Park43 10/19/2021 1998 240 TX    
Tides on Charleston 10/19/2021 1980 508 NV $110,000,000 $125,100,000
Tides on Dunlap (1) 10/18/2021 1973 288 AZ $67,400,000 $74,855,090
Tides on South Lamar 10/12/2021 1983 217 TX    
Tides on Duneville 10/8/2021 1986 228 NV $50,250,000 $56,818,000
Tides on West Cheyenne 9/30/2021 1984 180 NV $37,050,000 $42,933,240
Tides at Spring Mountain 9/23/2021 1981 225 NV $35,500,000 $42,213,597
Tides on McCallum North 9/9/2021 1988 297 TX    
Tides at Lakewood 9/2/2021 1986 252 TX    
Tides on McCallum South 8/30/2021 1985 322 TX    
Tides on Ranchview 8/23/2021 1999 357 TX    
Tides on East Broadway 8/18/2021 1972 262 AZ $53,100,000 $60,509,687
Tides on Mountain Vista 7/30/2021 1979 178 NV $29,000,000 $34,700,000
Tides at Plano 7/13/2021 1995 167 TX    
Tides on Overton Ridge 7/13/2021 1985 416 TX    
Tides at Lake Village 7/1/2021 1983 321 TX    
Tides at Woodhaven 6/30/2021 1979 332 TX    
Tides at Palm Valley 6/30/2021 1997 264 AZ $71,800,000 $77,300,000
Tides on Green Oaks 6/30/2021 1983 188 TX    
Tides on 51st 6/28/2021 1981 264 AZ $30,000,000 $35,057,178
Tides on Glendale 6/10/2021 1983 307 AZ $47,550,000 $54,263,840
Tides at Cheyenne 6/4/2021 1999 204 NV $35,000,000 $41,283,048
Tides on Post Oak 5/28/2021 1983 360 TX    
Tides on Tropicana 5/26/2021 1995 252 NV $54,000,000 $60,853,192
Tides at Valley Ranch 6/1/2021 1998 267 TX    
Tides on Westchester 5/25/2021 1997 316 TX    
Tides at Bear Creek 5/25/2021 1997 256 TX    
Tides on Harwood 5/25/2021 1998 424 TX    
Tides on Randol West 5/14/2021 1984 208 TX    
Tides on West Indian School 5/11/2021 1984 213 AZ $37,860,000 $43,246,008
Tides on Rosemeade East 4/30/2021 1991 252 TX    
Tides on Rosemeade West 4/30/2021 1987 200 TX    
Tides at Paradise Valley (1) 4/29/2021 1986 380 AZ $83,000,000 $90,387,476
Tides at Deer Valley (1) 4/29/2021 1984 436 AZ $86,500,000 $93,785,718
Tides at Spring Valley 4/29/2021 1988 218 NV $36,900,000 $42,354,119
Tides on North Collins 3/29/2021 1983 296 TX    
The Tides Waterfront 3/25/2021 1986 386 TX    
Tides on Randol East 3/22/2021 1984 356 TX    
Tides at North Arlington 2/3/2021 1978 436 TX    
Tides on University 3/31/2021 1978 286 AZ $35,175,000 $41,964,744
Tides at Downtown Chandler 1/29/2021 1986 374 AZ $54,250,000 $62,270,654
Tides on 61st 12/18/2020 1984 156 AZ $19,750,000 $23,946,875
Tides at East Glendale 12/4/2020 1987 430 AZ $53,500,000 $62,368,020
Tides on Country Club 11/3/2020 1986 582 AZ $83,000,000 $95,012,381
Tides on South Mill 9/24/2020 1969 515 AZ $77,000,000 $84,815,675
Tides at Chandler 9/16/2020 1985 248 AZ $46,025,000 $50,543,000
Tides at South Tempe (1) 6/23/2020 1979 442 AZ $71,500,000 $77,614,167
Tides at Grand Terrace 10/24/2019 1986 366 CA $72,250,000 $80,258,062
Current Portfolio Total     24,900   $4,473,815,220 $5,124,685,297

(1) Denotes asset was recapitalized with a new partner as an arms-length transaction

(2) Tides Equities currently manages 11,100 units in Texas with an aggregate purchase price of $1.67Bn and total cost of $1.96Bn

Tides Equities Dispositions as of March 2022

Property Name Purchase Date Year Built Units State Purchase Price Total Cost Sale Date Disposition Price IRR EMx
Tides on 61st (1) 1/29/2021 1984 156 AZ $19,750,000 $21,033,208 4/29/2022 $38,500,000 N/A N/A
Tides at North Avondale 7/24/2020 1984 120 AZ $16,200,000 $20,666,843 12/21/2021 $32,300,000 131.7% 3.3x
Tides at Papago 11/20/2020 1982 199 AZ $30,100,000 $34,541,619 12/1/2021 $44,500,000 135.2% 2.4x
Tides on 19th 7/24/2020 1973 236 AZ $27,000,000 $33,806,098 11/30/2021 $59,080,000 159.5% 3.6x
Tides on Main 10/13/2020 1985 472 AZ $86,500,000 $94,744,983 11/29/2021 $137,000,000 158.0% 2.9x
Tides on Lemon 5/23/2018 1966 65 AZ $7,500,000 $9,300,000 11/23/2021 $15,250,000 42.4% 3.1x
Tides on Dunlap 10/15/2020 1973 288 AZ $40,500,000 $42,653,735 10/18/2021 $67,400,000 185.0% 2.9x
Tides Lakeside 9/1/2018 1974 244 AZ $38,500,000 $43,045,977 8/20/2021 $64,500,000 27.3% 2.0x
Tides on 50th 12/19/2019 1973 / 1996 155 AZ $21,000,000 $24,927,551 7/23/2021 $34,275,000 99.7% 3.0x
Tides on 17th 12/11/2019 1986 160 AZ $18,725,000 $23,214,799 6/8/2021 $27,710,000 63.8% 2.1x
Tides on 25th 8/19/2019 1975 240 AZ $24,500,000 $32,160,000 5/27/2021 $40,625,000 71.2% 2.6x
Tides at Paradise Valley 8/27/2019 1986 380 AZ $57,250,000 $59,774,081 4/29/2021 $83,000,000 73.6% 2.5x
Tides at Deer Valley 7/1/2019 1984 436 AZ $56,700,000 $60,417,548 4/29/2021 $86,500,000 69.3% 2.6x
Tides on 28th 6/28/2019 1980 224 AZ $24,000,000 $29,730,000 2/11/2021 $34,800,000 56.7% 2.1x
Tides on 5th 12/11/2018 1966 197 AZ $27,500,000 $33,120,000 1/29/2021 $39,000,000 37.1% 1.9x
Tides at Downtown Tempe 1/18/2019 1971 227 AZ $31,300,000 $37,690,000 1/27/2021 $44,625,000 39.1% 1.9x
Tides on Rail 5/3/2019 1979 488 AZ $39,750,000 $45,116,812 12/17/2020 $60,000,000 67.9% 2.3x
Tides at East Arcadia 12/21/2018 1980 181 AZ $26,600,000 $29,047,282 12/16/2020 $38,000,000 44.3% 2.0x
Tides at North Phoenix  1/2/2019 1982 316 AZ $33,500,000 $35,763,626 12/4/2020 $54,000,000 66.4% 2.6x
Tides on Thomas 2/22/2018 1980 187 AZ $15,250,000 $17,699,014 7/31/2020 $24,500,000 38.1% 2.2x
Tides at South Tempe 10/1/2018 1979 442 AZ $55,500,000 $58,875,456 6/23/2020 $71,500,000 38.8% 1.7x
Tides on Thunderbird 5/23/2018 1981 376 AZ $37,250,000 $40,639,490 2/18/2020 $55,400,000 42.5% 1.8x
Tides on Mill 8/1/2018 1972 167 AZ $19,000,000 $20,674,445 2/27/2020 $25,600,000 33.5% 1.6x
Tides on Broadway 5/4/2018 1983 155 AZ $14,500,000 $15,900,433 10/1/2019 $21,000,000 49.2% 1.8x
Tides at Old Town 6/22/2017 1975 64 AZ $6,900,000 $8,240,000 12/20/2019 $10,500,000 26.2% 1.8x
Tides at Downtown Gilbert 10/20/2017 2005 42 AZ $6,764,000 $7,750,000 8/16/2019 $10,540,000 42.0% 2.0x
Coronado 137 1/19/2018 1971 43 AZ $4,100,000 $5,340,000 10/23/2019 $7,500,000 43.5% 1.9x
Tides at Arcadia 9/1/2016 1965 49 AZ $3,200,000 $3,960,000 4/12/2018 $6,300,000 83.7% 2.5x
Total Dispositions     6,309   $789,339,000 $889,833,001   $1,233,905,000    
Total Current Portfolio and Dispositions     31,209   $5,263,154,220 $6,014,518,298   $6,358,590,297    
Total Transaction Volume     37,518         $7,248,423,298    

(1) Denotes asset was recapitalized with a new partner as an arms-length transaction

Tides' Nearest Assets

The above bios and track record were provided by Tides Equities and have not been independently verified by RealtyMogul.

Business Plan

Built in 1986, the community’s unit mix consists of one-bedroom/one bathroom and two-bedroom/two bathroom floor plans that range in size from ±523 to ±1,079 square feet. Though the property has numerous common area amenities such as a swimming pool, turf soccer field, playground, clubhouse, dog park, and BBQ/Picnic Area, the exterior is primed for a further makeover, and the business plan calls for a full re-branding of the Property, including a name change and design upgrade. The Property features classic and partially renovated units which very much remain a blank canvas. There is ample opportunity to improve upon the existing scope, and planned renovations will follow the Tides Equities brand design, which includes new quartz countertops, stainless steel appliances, upgraded shaker-style cabinets with pulls, brushed nickel hardware, upgraded plumbing & lighting fixtures, a contemporary paint scheme, wood-like flooring and adding washers/dryers. This focus on interiors and accretive exterior improvements will allow Tides Equities to go on offense Day 1, driving up income with minimal transitional friction. 

The business plan calls for a capital event to occur within a two-year period, via a sale or a cash-out refinance. Underwritten returns assume a sale in Year Two, though Tides Equities would perform a full-sale vs. refinance analysis upon completion of the renovation program and will elect whichever option is deemed most prudent given market conditions at the time. An additional scenario exists to sell the property partially renovated, with a future buyer paying a premium for the additional upside. 

Project Budget

Acquisition Cost $ Amount Per Unit
Purchase Price $33,000,000 $120,438
Closing Costs(1) $2,184,402 $7,972
Mortgage Brokerage Fee $523,050 $1,909
Acquisition Fee $495,000 $1,807
Prepaid Expenses $563,145 $2,055
Total Acquistion Costs $36,765,597 $134,181
     
Interior Capital Expenditures    
Stainless Steel Appliances $548,000 $2,000
Light Fixtures $82,200 $300
Wood-like Vinyl Roll Flooring $330,008 $1,204
Interior Paint $257,819 $941
Brushed Nickel Hardware $82,200 $300
Updated Countertops $411,000 $1,500
Upgraded Cabinets $548,000 $2,000
Plumbing Fixtures $82,200 $300
Backsplash $82,200 $300
Add W/D  $488,200 $1,782
Miscellaneous $822,000 $3,000
Interior Subtotal $3,733,827 $13,627
     
Exterior Capital Expenditure    
Paint $200,000 $730
Pool Furnishings $15,000 $55
Clubhouse $50,000 $182
Lighting $35,000 $128
Full Signage Package $30,000 $109
Solar Screens $55,000 $201
Landscaping $55,000 $201
Tides Horizontal Wood $80,000 $292
Common Area (BBQ areas, dog park, cornhole, sports courts or other additions) $75,000 $274
Miscellaneous $75,000 $274
Exterior Subtotal $670,000 $2,445
     
Deferred Maintenance and Fees    
Deferred Maintenance $1,000,000 $3,650
CapEx Contingency (5% of CapEx and Deferred Maintenance) $270,191 $986
Construction Management Fee (7% of CapEx and Deferred Maintenance) $378,268 $1,381
Subtotal $1,648,459 $6,016
     
Capital Expenditure Total $6,052,286 $22,089
     
Grand Total $42,817,883 $156,270

(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.

Property

Investor Q&A - 6/14/2022

Property Details

Tides on Oakland Hills is a rare apartment community located in the East Fort Worth submarket which has immense value-add upside in a strong and upwardly trending location. Situated on approximately twelve acres of land, the Property consists of 17 two- and three-story garden-style buildings, totaling 274 units.

Unit Mix

Unit Type # of Units Avg SF/Unit Avg Rent (In-Place) Avg Rent (Stabilized) Rent per SF (Stabilized)
1x1 50 523 $805 $1,040 $1.54
1x1 75 652 $865 $1,110 $1.33
1x1 43 745 $923 $1,160 $1.24
1x1 30 748 $934 $1,170 $1.25
2x2 24 892 $1,074 $1,290 $1.20
2x2 6 948 $1,111 $1,360 $1.17
2x2 46 1,079 $1,186 $1,440 $1.10
Total/Averages 274 753 $948 $1,188 $1.58

 

Comparables

Lease Comparables

  Tides at Meadowbrook Tides at Woodhaven The Borough Apartments Verano Oaks Bella Via Apartments Comps Average Tides on Oakland Hills (Subject)
Year Built 1984 1979 1978 1985 1986   1986
# of Units 154 332 208 112 80   274
Distance from Subject 0.8 mi 0.5 mi 0.3 mi 4.4 mi 0.8 mi    
               
$/Unit (1x1) $1,065 $999 $945   $955 $991 $1,045
SF (1x1) 569 636 502   530 559 523
$/SF (1x1) $1.87 $1.57 $1.88   $1.80 $1.77 $2.00
  (1x1.5)            
$/Unit (1x1) $1,165 $1,029 $1,085 $1,219 $1,045 $1,109 $1,115
SF (1x1) 776 717 674 706 658 706 652
$/SF (1x1) $1.50 $1.44 $1.61 $1.73 $1.59 $1.57 $1.71
               
$/Unit (1x1)   $1,079 $1,135     $1,107 $1,165
SF (1x1)   786 820     803 745
$/SF (1x1)   $1.37 $1.38     $1.38 $1.56
    (2x1)   (2x1.5) (2x1)    
$/Unit (2x2) $1,295 $1,169   $1,075 $1,190 $1,182 $1,295
SF (2x2) 929 861   958 860 902 892
$/SF (2x2) $1.39 $1.36   $1.12 $1.38 $1.31 $1.45
    (2x1)          
$/Unit (2x2) $1,395 $1,225 $1,475     $1,365 $1,365
SF (2x2) 1,028 955 1,050     1,011 948
$/SF (2x2) $1.36 $1.28 $1.40     $1.35 $1.44
  (2x2.5)            
$/Unit (2x2) $1,445 $1,299   $1,412 $1,290 $1,362 $1,445
SF (2x2) 905 1,115   1,060 1,033 1,028 1,079
$/SF (2x2) $1.60 $1.17   $1.33 $1.25 $1.32 $1.34

Sales Comparables

  Trinity Heights Diamond Loch Barrett Creek Tides at Meadowbrook 1505 Exchange Comps Average Tides on Oakland Hills (Subject)
Date Sold Dec-22 May-22 Apr-22 Nov-22 Jun-22    
Year Built 1985 1978 1985 1984 1980 1982 1986
# of Units 316 138 256 154 256 224 274
Average Unit Size 843 SF 1,009 SF 893 SF 813 SF 870 SF 885 SF 753 SF
Sale Price $44,000,000 $19,050,667 $33,086,667 $19,600,000 $31,273,334 $29,402,133 $33,000,000
$/Unit $139,241 $138,048 $129,245 $127,273 $122,161 $131,193 $120,438
$/SF $165.02 $136.68 $144.71 $157.00 $140.26 $148.73 $160.00
Distance from Subject 0.6 mi 4.7 mi 4.1 mi 1.1 mi 1.7 mi 2.4 mi  
Location

Market Overview

The Dallas/Fort Worth Metroplex is the fourth-most populous metro in the nation with an aggregate of more than 7.1 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 800,000 residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metro’s numerous corporations and growing industries.

  • The Metroplex’s temperate climate, no state income tax, and a right-to-work labor policy attract employers.
  • Dallas/Fort Worth is one of the nation’s largest employment markets, with nearly 3.6 million jobs.
  • The region is home to 21 Fortune 500 companies in a variety of sectors, including ExxonMobil, American Airlines Group, Southwest Airlines, Fluor, AT&T, Tenet Healthcare, Kimberly-Clark and J.C. Penney.
  • The area is forecast to add jobs at an annual rate of 1.5 percent through 2021, well above the U.S. level.
  • Economic expansion will be further fueled by a rise in financial services and high-tech companies.

Submarket Overview

The East Fort Worth submarket has been one of the top-performing submarkets in all of DFW as it achieved 8.3% rent growth in 2021 and 96.4% occupancy. All of which has been heavily driven by the massive 33% population growth since 2010, which is projected to increase another 10% by 2025. The Real Estate Company believes the strong performance of the submarket, aligned with a comprehensive interior renovation program presents an opportunity to capitalize on loss to lease at the Property. The Property has direct access to I-30 and Highway 820 interchange; which accommodates 225,000 VPD allowing easy access throughout the metroplex. The Property provides tenants with easy access to numerous big box retailers and grocers,  the metroplex’s most popular sports and entertainment venues such as the newly developed Texas Live!, and the ability to reach major DFW employment centers within 30 minutes of drive time. Proximity to the I-30 and I-820 interchanges allows residents access to a multitude of DFW’s employment and service providers including River Bend Business Park (6 min), East Chase Shopping Center (11 min), Fort Worth CBD (16 min), Texas Health Harris Methodist Hospital Fort Worth (17 min), American Airlines Headquarters (20 min) and Bank of America Headquarters (20 min). In addition, there are also many big box retailers in the area that include Home Depot, Albertsons, Family Dollar, CVS, Fiesta Mart, Marshalls, Target, Ross Dress for Less, and ALDI less than 15 minutes away from the Property. 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt (Initial Funding) $25,647,714 $93,605
Debt (Future Funding) $6,052,286 $22,089
GP Investor Equity $847,883 $3,094
LP Investor Equity $10,270,000 $37,482
Total Sources of Funds $42,817,883 $156,270
     
Uses of Funds $ Amount $/Unit
Purchase Price $33,000,000 $120,438
Closing Costs(1) $3,202,452 $11,688
Hard Costs and Deferred Maintenance $6,052,286 $22,089
Prepaid Expenses $563,145 $2,055
Total Uses of Funds $42,817,883 $156,270

(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: MF1
  • Term: 2 years + three 1-year extensions
  • LTC: 74.0%
  • Estimated Proceeds: $31,700,000
  • Interest Type: Floating
  • Spread above one-month SOFR: 4.25%
  • Interest-Only Period: 60 months
  • Amortization: None (Interest-Only)
  • Prepayment Terms: 12-month lock-out/yield maintenance in place for the first 12 months
    An Exit Fee of 0.50%; provided that the Exit Fee will be waived if the Loan is refinanced with a fixed-rate loan originated by Lender or if the Property is sold.
  • Extension Requirements: Two years (plus any partial accrual period at the beginning of the term) (the “Initial Term”), with three available 12-month extension terms (each, an “Extension Term”, and together with the Initial Term, the “Term”), subject to Lender’s extension conditions, including the following:
    (1) 30-day advanced notice to Lender;
    (2) No payment for the first extension. Payment of an extension fee equal to 0.25% of the Loan Amount for the second and third extensions;
    (3) No minimum Debt Yield for the first extension. A minimum Debt Yield of 6.50% for the first extension, and 7.00% for the second extension;
    (4) Borrower must have completed the Renovation Plan substantially in accordance with the renovation schedule contained in the Renovation Plan; and
    (5) Purchase of an acceptable Rate Cap for the applicable Extension Term, in the amount of the Loan, at a Strike Rate that results in a DSCR of not less than 1.0:1.0 based on the ratio of Underwritten NCF to projected debt service.
  • 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

Tides Equities intends to make distributions from Tides on Oakland Hills Investors, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
  2. 64.75% / 35.25% (64.75% to Investors / 35.25% to Promoted/Carried Interest) of excess cash flow to a 12.0% IRR;
  3. 55.50% / 44.50% (55.50% to Investors / 44.50% to Promote/Carried Interest) of excess cash flow to a 18.0% IRR;
  4. 41.62% / 58.38% (41.62% to Investors / 58.38% to Promote/Carried Interest) of excess cash flow thereafter.

Tides Equities 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 July 2024. Distributions are at the discretion of Tides Equities, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Tides Equities 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
  Pre-Acquisition Year 1 Year 2 Year 3
Effective Gross Revenue $2,986,394 $3,199,362 $3,945,442 $4,393,425
Total Operating Expenses $1,905,597 $1,788,719 $1,931,094 $1,945,424
Net Operating Income $1,080,797 $1,410,643 $2,014,348 $2,448,001
         
Project-Level Cash Flows
  Year 0 Year 1 Year 2  
Net Cash Flow ($11,117,883) $0 $17,804,690  
         
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2  
Net Cash Flow ($10,270,000) $0 $14,840,647  
         
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2  
Net Cash Flow ($50,000) $0 $72,252  

(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 Tides Equities' 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
Guarantor Fee (2) $75,000 Tides Equities Capitalization
Acquisition Fee $495,000 Tides Equities Capitalization
 
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Administrative Solutions Fee(4) Flat quarterly fee of $125 per investor services through the Administration Solution RM Technologies, LLC(3) Cash Flow
Asset Management Fee 1.5% of Effective Gross Income Tides Equities Cash Flow
Property Management Fee 2.5% of Effective Gross Income Sponsor Affiliate Cash Flow
Construction Management Fee 7.0% of Renovation and Deferred Maintenance Budget Sponsor Affiliate Cash Flow

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

(2) The Guarantee Fee is a flat $75,000 fee paid to the Sponsor in connection with the acquisition loan. The fee is paid irrespective of whether the acquisition loan is recourse or non-recourse.

(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) Only applies to equity raised through the RealtyMogul Platform

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.

INVEST TODAY

Questions?

(877) 781-7062

Contact Investor Relations
Join RealtyMogul
Gain access to commercial real estate deals across the country
Easily review, compare and invest in deals that meet your criteria
Build the real estate portfolio that’s right for you
Potential benefits include diversification, growth and passive income
ARE YOU AN ACCREDITED INVESTOR?
Password should be at least 8 characters, contain an uppercase character, a lowercase character, a number and a symbol.
Sign In
Don’t have an account yet? Join RealtyMogul
Please enter your email and password below.

Forgot Password?

Forgot Password
Enter your email address to receive a code to reset your password.
Enter the code sent to your email address below and your new password.

Resend Code