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Funded
Multifamily
Cleo Apartments
Denver, CO
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By DB Capital Management
15.0%* TARGET IRR 14.0%-16.0%
1.50X* TARGET EQUITY MULTIPLE
Estimated Hold Period 3 Years
Estimated First Distribution 12/2022
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Project Summary
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Explore this Project
Overview
Cleo Apartments is a 142-unit multifamily apartment building built in 1979 and located in Denver, CO.
Market

The Property is centrally located between all of Denver's largest employment hubs including the Denver Tech Center (197,500 jobs), Downtown Denver (184,400 jobs), Fitzsimons Life Science District (45,000 jobs upon full build out), and Denver International Airport (35,000 jobs).

Potential Efficiencies

The Property is 93% occupied and has performed very strongly in the past 12 months. DB Capital plans to acquire the Property and focus on driving top-line and ancillary income coupled with reducing unnecessary spending patterns.

Location

Cleo is in a great location and resides in the Lowry submarket. Lowry includes 1.8 million square feet of new office space and 130,000 square feet of retail space – as well as an educational campus and 800 acres of parks and recreational space. Lowry has more than 140 employers with approximately 8,000 workers. Residents enjoy a variety of dining/entertainment options with abundant employment opportunities. Cleo residents will have direct access to all that Denver has to offer.

Property At A Glance
# of Units 142
# of Buildings 8
Year Built 1979
Parking Ratio 2.1 per unit
Exit Cap Rate 4.70%
Acquisition Price

$38,000,000

Investment Highlights
The purchase price of $38,000,000 equates to a 3.47% cap rate, adjusted for taxes, insurance, and property management fees.
There are only 254 units under development in the zip codes immediately surrounding Cleo Apartments. The majority of which are already beginning to be leased up.
Median household income in the immediate area is $104,800.
Skyline Property Management will be managing the Property. Skyline manages 2,500+ units nationwide and approximately 200 units in Denver.
Post-renovation rent projections are well supported by similar, adjacent assets demonstrating a clear path to stabilization.
The Real Estate Company is anticipating a 15.0% IRR and 1.50x EM based on a 3-year hold.
Management
Cumulative Distributions

DB Capital Management

DB Capital Management has built a concentrated strategy of investing exclusively in multifamily assets in select markets nationwide. Following extensive market research, the company identifies markets that exhibit common characteristics that will support long-term growth and attractive investment fundamentals. DB Capital focuses on investing in Class A and B product that appeals to the broadest swath of renters and is relatively well insulated from new supply concerns. With rising construction costs this subsection of the market is poised to draft off rent ceilings that are raised by new Class A deliveries. The company targets value-add and core-plus multi-family investments in submarkets with a highly educated, stable workforce with proximity to major employment hubs and tech companies. The company deploys a diversified but targeted investment allocation strategy across different metro markets and varying cash flow and appreciation strategies.

https://www.dbcap.com/
  • Brennen Degner
    CEO
  • Devin Antin
    Co-Founder
Brennen Degner
CEO

Mr. Degner is a Co-Founder and CEO of DB Capital. Prior to his role with DB Capital, Mr. Degner was COO and Director of Asset Management for MJW Investments, Inc. where he oversaw the operation and management of an approximately $1 Billion diversified real estate portfolio. He has broad experience in the acquisition and repositioning of underperforming projects in multifamily and student housing investments. Mr. Degner is a graduate of the prestigious Dollinger Master of Real Estate Development program at the University of Southern California, holds a Bachelor of Arts Degree in Political Science from the University of Arizona, and has received a certificate in Real Estate Investments from the University of California, Los Angeles.

Devin Antin
Co-Founder

Mr. Antin is a Co-Founder and Managing Director of DB Capital. Prior to his role with DB Capital, Mr. Antin was a founding partner and Managing Director of DRA Enterprises ("DRA"), a real estate investment fund focused on value-add apartment projects in the greater Los Angeles area. Mr. Antin played a key role in business plan strategy development and execution throughout all of DRA’s $30 million of assets under management. Additionally, Mr. Antin is an active venture investor with a diversified portfolio that includes investments in restaurants, apparel brands, and medical devices. Mr. Antin holds a Bachelor of Arts Degree in Regional Development from the University of Arizona and currently sits on the board of the Antin Family Foundation.

Track Record

Property Vintage City, State Asset Type Acq Date Units or SF Purchase Price Sale Price IRR(1) Equity Multiple(1)
1850 11th Street 1964 Santa Monica, CA Multifamily 11/18/2015 6 $1,927,000 $4,195,000 85% 1.89x
7511 Lexington Ave 1957 West Hollywood, CA Multifamily 11/9/2015 15 $4,250,000 $5,640,000 26% 1.48x
2428 Kansas Ave 1952 Santa Monica, CA Multifamily 2/17/2016 7 $2,063,000 $2,650,000 33% 1.51x
925 N Curson Ave 1957 West Hollywood, CA Multifamily 7/10/2015 10 $2,625,000 $3,740,000 77% 2.84x
1634 Arapahoe Street 1918 Los Angeles, CA Multifamily 5/1/2015 9 $860,000 $1,250,000 37% 1.95x
Edgewood Park 1994 Cottonwood Heights, UT Multifamily 9/6/2018 64 $11,000,000 $15,625,000 35% 1.85x
Avenue East 1971 Salt Lake City, UT Multifamily 8/9/2019 17 $2,325,000 $4,275,000 51% 1.66x
Century Apartments 1963 Salt Lake City, UT Multifamily 11/28/2018 30 $3,900,000 $7,100,000 23% 1.60x
Chateau De Ville 1973 Salt Lake City, UT Multifamily 4/11/2019 27 $4,600,000 $7,500,000 26% 1.62x
112 N Normandie 1950 Los Angeles, CA Multifamily 6/12/2012 12 $1,220,000 $2,539,600 21% 4.57x
Hidden Chalet & Haven Gardens 1976 Salt Lake City, UT Multifamily 2/13/2020 59 $6,700,000 $11,500,000 59% 2.15x
Fir Street 1952 San Diego, CA Multifamily 4/24/2018 10 $2,267,500 $3,176,471 13% 1.35x
Tempo West Apartments 1973 Portland, OR Multifamily 7/22/2019 60 $10,750,000 $16,500,000 26% 1.69x
Terra at Murrayhill 1986 Beaverton, OR Multifamily 12/6/2019 137 $34,100,000 $47,000,000 29% 1.68x
Mueller Place (I & II) 1969 Austin, TX Multifamily 7/31/2018 110 $10,533,000 $15,900,000 13% 1.35x
Lamar Station(2) 1984 Austin, TX Multifamily 10/11/2019 192 $28,800,000 $43,225,000 36% 2.07x
Morton Meadows 1973 Salt Lake City, UT Multifamily 7/2/2019 32 $3,600,000 $6,500,000 75% 2.53x
2515 Kansas Ave 1973 Santa Monica, CA Multifamily 12/15/2016 8 $3,750,000 N/A    
Venice Apts 1953 Venice, CA Multifamily 2/9/2018 13 $4,025,000 N/A    
Summit at Wash Park 2018 Denver, CO Multifamily 10/5/2020 46 $16,200,000 N/A    
Ascent at Union Square 1991 Provo, UT Multifamily 12/23/2020 139 $16,000,000 N/A    
Ascent at North Burnet 1980 & 1984 Austin, TX Multifamily 1/28/2021 422 $49,800,000 N/A    
Ascent at Cottonwood Creek 2004 West Jordan, UT Multifamily 6/1/2021 88 $12,250,000 N/A    
Ascent on the Highline 1984 Aurora Multifamily 6/30/2021 138 $31,000,000 N/A    
Summit at Layton 1997 Layton, UT Multifamily 11/9/2021 43 $13,015,000 N/A    
Summit at Westwood 1984 Austin, TX Multifamily 11/4/2021 150 $30,150,000 N/A    
Summit at Salado Creek 1997 San Antonio, TX Multifamily 11/18/2021 352 $52,500,000 N/A    
Ascent at Northgate 1972 Austin, TX Multifamily 12/2/2021 112 $15,500,000 N/A    
Ascent at Marmalade 1953 Salt Lake City, UT Multifamily 2/28/2022 71 $18,600,000 N/A    
TOTAL         2,379 $394,310,500      

(1) Not indicative of future returns.

(2) Currently listed, returns based on estimated strike of CBRE analysis. Whisper price is $46mm.

The above bios and track record were provided by DB Capital Management and have not been independently verified by RealtyMogul.

Business Plan

The Property represents a unique opportunity to acquire a 1979 vintage asset at a significant discount to replacement cost, including major renovations, in the suburban Denver, CO market. DB Capital has developed a capital plan that will significantly enhance curb appeal, update unit interiors to a more desirable finish, increase NOI through a more strategic hands-on management approach and drive prospective renter volume through a more targeted marketing plan. The Property will be sold at the end of year three at a projected cap rate of 4.70%.

With the improvements DB Capital has planned, the Property will be well-positioned to draft off newer construction rents in the submarket. DB Capital's business plan for the Property will focus on a four-pronged approach:

  • Modernize exterior and common area amenities to drive desirability
  • Design-driven unit interior renovations to increase appeal to prospective renters
  • Initial rebranding and enhanced digital marketing
  • Hands-on management to increase customer retention and reduce turnover 

INTERIOR UNIT RENOVATIONS

  • Quartz countertops and under-mount sinks
  • Vinyl plank flooring throughout common areas and carpet in bedrooms
  • New appliance package
  • Addition of washers/dryers
  • Shaker cabinets with new pulls
  • Two-tone paint scheme
  • Updated plumbing and lighting fixtures throughout
  • Framed bathroom mirror

EXTERIOR & COMMON AREA RENOVATIONS

  • New exterior paint
  • Update pool area and add new pool furniture
  • Resurface basketball court with new basketball hoop
  • Gym enhancements with new equipment
  • Parking lot resurface and restripe
  • Upgraded dog park with new obstacles

Development Budget

Capex Summary Budget Units Per Unit
Soft Costs $20,000 142 $141
Exterior Upgrades $275,000 142 $1,937
Exterior Deferred $100,000 142 $704
Amenity Upgrades $125,000 142 $880
Amenity Deferred $200,000 142 $1,408
Landscaping $50,000 142 $352
Unit Spec 1 $1,254,000 57 $22,000
Unit Spec 2 $650,800 85 $7,656
Const Mgmt Fee (5.0%) $132,740 142 $935
Contingency (5.0%) $133,740 142 $942
Total / Avg / Min / Max $2,941,280 142 $20,713
Property

Investor Q&A from 6/9/2022

 

Property Details

Cleo Apartments presents a unique opportunity to acquire a 1979 vintage asset, below replacement cost, in a high growth submarket. Through the renovation scope that DB Capital has planned, they expect to increase top-line revenue by 31%. 

Unit Mix

  # of Units Avg. SF/Unit Avg. Rent  Rent per SF Avg. Renovated Rent Avg. Renovated Rent per SF
0x1 6 532 $1,134 $2.13 $1,300 $2.44
1x1 64 689 $1,162 $1.69 $1,511 $2.19
2x1 24 900 $1,381 $1.53 $1,783 $1.98
2x2 48 1,000 $1,419 $1.42 $1,896 $1.90
Total/Averages 142 823 $1,285 $1.56 $1,678 $2.04
Comparables

Lease Comparables

  Santana Ridge Advenir South Liberty Creek Wentworth Comp Averages Cleo Apartments
Address 1355 S Galena St 1211 S Quebec Way 13100 E Kansas Dr 11255 E Alameda Ave   425 S Galena Way
Year Built 1985 1965 1981 1974 1978 1979
Units 384 260 584 264 373 142
Average Rental Rate $1,843 $1,519 $1,604 $1,481 $1,629 $1,678
Average SF 793 794 776 768 783 823
Average $/SF $2.33 $1.91 $2.07 $1.93 $2.08 $2.04
# Units (Studio)   20     20 6
$ (Studio)   $1,255     $1,255 $1,300
SF (Studio)   475     475 532
$/SF (Studio)   $2.64     $2.64 $2.44
# Units (1x1) 136 120 252 180 172 64
$ (1x1) $1,580 $1,399 $1,469 $1,363 $1,451 $1,511
SF (1x1) 644 667 653 660 655 689
$/SF (1x1) $2.45 $2.10 $2.25 $2.07 $2.21 $2.19
# Units (2x1) 48 60 80   63 24
$ (2x1) $1,833 $1,538 $1,686   $1,676 $1,783
SF (2x1) 850 950 828   873 900
$/SF (2x1) $2.16 $1.62 $2.04   $1.92 $1.98
# Units (2x2) 200 60 252 84 149 48
$ (2x2) $2,025 $1,828 $1,712 $1,735 $1,832 $1,896
SF (2x2) 880 1,000 882 1,000 910 1,000
$/SF (2x2) $2.30 $1.83 $1.94 $1.74 $2.01 $1.90
Distance to Subject 1.3 miles 3.4 miles 2.7 miles 1.0 miles 2.1 miles  

Sales Comparables

  Avery Park Chestnut Ridge Flats at Creekside Park Fairview The Hadley Highline Lofts Atrii Total/Averages Cleo Apartments
Date Oct '21 Jun '21 Sep '21 Mar '22 Nov '21 Mar '22 Dec '21   May '25
Submarket Arapahoe / I-25 SE Denver Arvada Aurora Thorton West Aurora Denver   Lowry
Year Built 1978 1986 1975 1974 1985 1972 1974 1978 1979
SF 262,857 133,634 98,551 82,143 104,905 95,016 135,890 130,428 116,888
Units 296 156 120 100 140 112 197 160 142
Sale Price $92,000,000 $44,500,000 $34,000,000 $27,600,000 $38,500,000 $29,075,000 $49,600,000 $45,039,286 $49,030,117
$/Unit $310,811 $285,256 $283,333 $276,000 $275,000 $259,598 $251,777 $277,396 $345,283
$/SF $350 $333 $345 $336 $367 $306 $365 $343 $419
Cap Rate   3.84% 3.73% 4.18% 3.68% 3.23% 3.84% 3.75% 4.70%
Distance from Subject 9.5 miles 5.4 miles 17.0 miles 3.3 miles 17.0 miles 0.6 miles 3.7 miles 8.1 miles  
Location

Market Overview

Metro Denver promotes a lifestyle where family, health, and career complement one another. Denver has nearly 300 days of sunshine per year with incredible views of Colorado's Rocky Mountains. The city has a goal to become "America’s Healthiest Community" by creating interlinked, walkable communities and programs that support wellness at school and work. A low operational cost, a multimodal transportation system, and a central location from both coasts have attracted some of the country's most successful and diverse companies to the Denver area. Public and private sectors collaborate on economic development for the benefit of the entire region.

Submarket Overview

Lowry is right in the heart of the vibrant Denver metro area. Lowry boasts over 800 acres of parks and open spaces including playgrounds, amphitheaters, golf courses, an ice arena, recreation center and pool, dog park, sports complexes, fields, and hiking/biking trails. The Lowry submarket includes 1.8 million square feet of new office space, 130,000 square feet of retail space, and 800 acres of parks and open recreational space. Lowry has more than 140 employers with approximately 8,000 workers. Residents enjoy a variety of dining/entertainment options with abundant employment opportunities. Cleo residents have direct access to all that Denver has to offer.

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $30,764,020 $216,648
GP Investor Equity $1,185,738 $8,350
LP Investor Equity $10,671,644 $75,152
Total Sources of Funds $42,621,403 $300,151
     
Uses of Funds $ Amount $/Unit
Purchase Price $38,000,000 $267,606
Acquisition Cost (1) $1,033,203 $7,276
Financing Costs $646,920 $4,556
Hard Costs $2,788,540 $19,638
Soft Costs $152,740 $1,076
Total Uses of Funds $42,621,403 $300,151

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: Bright Spire
  • Term: 36 Months
  • LTV: 73% (initial funding)
  • Estimated Proceeds: $30,764,020
  • Interest Type: I/O
  • Spread above one-month SOFR: 3.45%
  • Interest-Only Period: 36 Months
  • Amortization: N/A
  • Prepayment Terms: None
  • Extension Requirements: None
  • 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

Investors shall be investing into an entity called 425 S Galena RM Investors DB, LLC (“RM Investors LLC”) which shall acquire an approximate 52.56% interest in an entity called  425 S Galena Investors DB, LLC (“DB Investors LLC”).  Investors LLC shall in turn own (through a subsidiary) an approximate 81.31% tenant in common interest in the Property.  The remaining approximate 18.69% tenant in common interest in the Property shall be owned by an affiliate of DB Capital Management.  See attached organization chart for further information.

DB Investors LLC shall receive 81.31% of all operating cash flows and capital transaction proceeds generated by the Company.  All operating cash flow received by DB Investors LLC shall be distributed by DB Investors LLC to its members as follows:

  1. First, 100% to the members of DB Investors LLC (including RM Investors LLC) pari passu, until each member (including RM Investors LLC) has received an 8% preferred return; and
  2. Thereafter, 70% to the members of DB Investors LLC (including RM Investors LLC) pari passu, and 30% to DB Capital Management (or its Affiliate) as Promote/Carried Interest.

All capital transaction proceeds received by DB Investors LLC shall be distributed by DB Investors LLC to its members as follows:

  1. First, 100% to the members of DB Investors LLC (including RM Investors LLC) pari passu, until each member (including RM Investors LLC) has received an 8% preferred return;
  2. Second, 100% to the members of DB Investors LLC (including RM Investors LLC) pari passu, until each member (including RM Investors LLC) has received a return of its capital contributions; and
  3. Thereafter, 70% to the members of DB Investors LLC (including RM Investors LLC) pari passu, and 30% to DB Capital Management (or its Affiliate) as Promote/Carried Interest.

Upon receipt of any distributions from DB Investors LLC, 100% of all proceeds received by RM investors LLC pursuant to the waterfalls above shall be distributed to the Investors pari pasu.  The waterfalls and distributions are more particularly set forth in the LLC Agreements and Subscription Agreement.

DB Capital Management intends to make any distributions at either the DB Investors LLC level or the RM Investors LLC level to the Investors after the payment of such company’s applicable liabilities (including any loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements attached, in addition to any member loans or returns due on member loan).

Distributions are expected to start in December 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of DB Capital Management, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary
    Year 1 Year 2 Year 3
Effective Gross Revenue   $2,555,790 $2,964,318 $3,173,897
Total Operating Expenses   $839,646 $932,178 $963,482
Net Operating Income   $1,716,145 $2,032,140 $2,210,415
         
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($11,857,382) $460,945 $467,624 $18,238,230
         
Investor-Level Cash Flows (1)
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($5,000,000) $138,871 $141,687 $7,235,309
         
Investor-Level Cash Flows - Hypothetical $50,000 Investment (1)
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($50,000) $1,389 $1,417 $72,353

(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 DB Capital Management's materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.0% of Purchase Price DB Capital Capitalized Equity Contribution
Construction Management Fee 5.0% of Hard Costs DB Capital Capitalized Equity Contribution
Refinancing Fee 0.5% of Loan Proceeds from Refinancing DB Capital Future Loan Proceeds
       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Administrative Solution Fee Flat quarterly fee of $125 per investor services through the Administration Solution RM Technologies LLC(2) Cash Flow
Property Management Fee(3) 3.0% of EGI Skyline Property Management (Sponsor Affiliate) Cash Flow
Asset Management Fee 1.5% of EGI DB Capital Cash Flow

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

(2) 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.

(3) Property Management Fee is the greater of 3% of monthly effective gross income or $2,000 per month

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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