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Multifamily
Dobson Station
Mesa, AZ
INVESTMENT STRATEGY
Development
INVESTMENT TYPE
Equity
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100% funded
Offered By StarPoint Properties
23.2%* TARGET IRR 22.2%-24.2%
1.54X* TARGET EQUITY MULTIPLE
Estimated Hold Period 2 Years
Estimated First Distribution 9/2024
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Explore this Project
Overview
StarPoint Properties and its affiliates are currently accepting equity commitments for Dobson Station (the “Project”), a 245-unit multifamily development located in Mesa, Arizona. Please refer to the Offering Documentation for specific details.
Market

Phoenix is one of the country’s fastest-growing markets. Urban Land Institute’s 2022 Emerging Trends in Real Estate ranked the MSA as a top migration destination for people & companies. The Phoenix MSA boasts 5.1M people and an unemployment rate of 3.2%, and rents increased in the Phoenix multifamily market by over 20% YoY in 2021. The vacancy rate across the market is sub-6%, with 2021 absorption of 11.9K units against delivery of 9.8K units.

Location

The site is an infill location adjacent to services, amenities, and a high-traffic count intersection. The Property is within walking distance to the light rail into downtown Tempe and is located less than 2 miles from the 101, 202, and 60 highways, providing direct access to the greater Phoenix area.

Potential Efficiencies

The development will benefit from a GPLET (property tax abatement) agreement with the City of Mesa for 8 years after construction, which will generate significant tax savings and add over $4M in present value to the exit price. The Project also includes optionality for an Opportunity Zone investment, after sale, with a generational opportunity to pay no capital gains tax on future profits.

Property At A Glance
# of Units 245
# of Buildings 1
First Units Delivered 7/1/2024
Project Stabilization 5/1/2025
Return on Cost 6.7%
Acquisition Price

$6,930,000

Investment Highlights
StarPoint Properties and its affiliates have secured the land and entitlements to build the Property for $75.8M, or $310K per unit, including a 13% total contingency.
The Property is located in Mesa, AZ, a city of 500K people in the greater Phoenix MSA, and is situated within two miles of the SR-101, SR-202, and US-60 freeways.
The greater Phoenix area has seen population growth of 20% since 2010, boasts an overall unemployment rate of 3.2%, and has a low rent-to-income ratio that indicates ample room for strong rent growth relative to other Tier 1 markets.
Additionally, the site is a five-minute walk from a Metro light-rail stop, which provides service into Phoenix and Tempe, and is adjacent to community-serving retail and several local college campuses.
The building will include modern amenities such as a swimming pool, fitness center, clubhouse, coworking facility, and group kitchen.
The exit strategy is to sell the Project to either an Opportunity Zone (OZ) fund or the general market at or prior to the time when the Project receives its Temporary Certificate of Occupancy (TCO), which is anticipated to occur in mid-2024.
Investors in the development will benefit from a quick exit and a sale to a motivated buyer pool, which can pay a premium due to the significant tax advantages of the OZ program and benefit from investing in assets completely removed of construction risk.
Management
Cumulative Distributions

StarPoint Properties

StarPoint Properties is a real estate investment and operating company with a 25-year+ track record. Founded in 1995 and headquartered in Beverly Hills, StarPoint aims to outperform other alternative investment vehicles by leveraging its seasoned management team, proprietary underwriting systems, decades of developed infrastructure, and deep acquisition network. With a focus on the acquisition, development, and redevelopment of under-valued multifamily and commercial properties, StarPoint has delivered a weighted average IRR of 24.6% to investors since inception.

https://starpointproperties.com/
  • Paul Daneshrad
    Chief Executive Officer
  • Greg Jones
    Chief Financial Officer
  • Sandy Schmid
    Director of Acquisitions & Development
Paul Daneshrad
Chief Executive Officer

Paul Daneshrad founded StarPoint Properties in 1995 and has built one of the most respected real estate investment and development firms in the industry. StarPoint prides itself on delivering, decade after decade, market-leading returns to its investors and providing asymmetrical returns that have proven to outperform most alternate investments. Mr. Daneshrad’s 30-year tenure and extensive real estate experience built the company into the vertically integrated real estate firm that it is today. He is considered an industry expert within the real estate investment community, often speaking at national conferences, and has been cited and interviewed by multiple real estate publications, including Net Lease Forum, Multi-Family Executive, California Real Estate Journal, Multi-Housing News, National Real Estate Investor, Real Estate Southern California, and Commercial Property News. Mr. Daneshrad graduated from California State University Northridge with a degree in Marketing. 

Greg Jones
Chief Financial Officer

Greg Jones directs all financial aspects of StarPoint Properties, including accounting practices, budgeting, financial analysis, corporate reporting, job costing, and monitoring of financial performance. Mr. Jones has over 30 years of experience in the real estate industry. Prior to joining StarPoint, he spent 7 years with The Irvine Company, one of America’s largest private real estate developers. Serving as Senior Vice President of Finance, Mr. Jones was responsible for all the financial aspects of its existing and growing portfolio of apartment homes. Prior to the Irvine Company, Mr. Jones spent 10 years as Vice President, Controller of Trizec Properties, Inc., a large, publicly-traded REIT with developments and holdings in both retail and office located throughout North America. Mr. Jones began his career in real estate in 1990 at Intercontinental Hotels. Mr. Jones earned a Bachelor of Commerce from the University of Calgary and further obtained his Chartered Accountant and Certified Public Accountant Designation during his four years as an Audit Manager with Thorne Ernst & Whiney Chartered Accountants. 

Sandy Schmid
Director of Acquisitions & Development

Sandy Schmid oversees the firm’s acquisition and development departments. Mr. Schmid has over 20 years of real estate experience as an acquisitions officer, architect, builder, and developer. He has sourced over $1billion of development projects for residential units and has led entitlements to over $1 billion of development. Prior to StarPoint, he sourced land acquisitions and managed diligence, entitlements, and construction for several of the country’s leading multifamily merchant developers. His roles included Director of Acquisitions and Development at JPI, Development Director at Blueridge Multifamily, and Development Associate at SummerHill Apartment Communities. Mr. Schmid started his real estate career as an architectural draftsman and builder for Habitat for Humanity. Mr. Schmid earned his bachelor’s degree from Trinity College in Hartford, CT, and a dual degree, Master of Business Admiration and Master of Real Estate Development from the University of Southern California.

Track Record

StarPoint Properties Track Record(1)

Property City State Asset Type Acq Date # Units  Sq. Ft. Purchase Price Sale Price/Est. Value
62 Historical Dispositions     Various Various     $250,018,007 $439,698,953
Longridge Studio City CA Multifamily 1995 29 25,088 $1,394,500 $14,500,000
Colfax  North Hollywood CA Multifamily 1997 108 90,400 $4,700,000 $58,955,750
PandO Fresno CA Office 2004   102,580 $21,250,000 $28,000,000
Roxbury Beverly Hills CA Office 2005 19 102,266 $43,450,000 $154,500,000
Peachtree  Norcross GA Retail 2007 24 88,835 $14,000,000 $18,000,000
Rosemead Pasadena CA Multifamily / Retail 2007 47 29,425 $1,400,000 $12,800,000
Washington Pasadena CA Multifamily 2007 61 52,600 $11,465,000 $24,500,000
William Cannon  Austin TX Retail 2007 31 144,657 $17,200,000 $23,000,000
Grismer  Burbank CA Multifamily 2008 54 45,285 $11,525,000 $22,500,000
Shaw Fresno CA Office 2012 61 152,419 $13,100,000 $15,160,000
Indian Hill Claremont CA Multifamily 2014 75 66,627 $15,750,000 $23,800,000
3rd Street Promenade Santa Monica CA Retail 2017 2 30,660 $30,300,000 $31,370,000
Camden Beverly Hills CA Office 2018 41 200,264 $193,000,000 $255,000,000
Telegraph Santa Fe Springs CA Retail / Industrial 2018 16 53,975 $12,300,000 $12,300,000
Aviation Hawthorne CA Office 2019   49,632 $13,400,000 $14,900,000
Legacy Plano TX Multifamily 2019 346 346,000 $32,000,000 $100,000,000
Ocean Santa Monica CA Ground Lease 2019   34,200 $65,000,000 $65,000,000
6th Street San Bernardino CA Land (OZ Industrial Development) 2020   427,895 $6,500,000 $6,500,000
Dalewood Austin TX Multifamily 2020 50 56,503 $8,000,000 $8,000,000
East Loop Fort Worth TX Retail 2020   58,400 $12,100,000 $12,100,000
Locust  Long Beach CA Land (OZ Multifamily Development) 2020   15,600 $3,150,000 $3,150,000
Mission  Jurupa Valley CA Retail 2020 8 16,450 $3,500,000 $3,500,000
Roscoe North Hills CA Retail 2020 2 52,260 $6,250,000 $6,250,000
73rd Ave Denver CO Land (OZ Industrial Development) 2021   415,562 $4,918,000 $4,918,000
Central  Riverside  CA Retail / Office 2021 9 16,002 $4,025,000 $4,025,000
Dobson Station (Subject) Mesa AZ Land (OZ Multifamily Development) 2021   264,652 $5,775,000 $5,775,000
Estrella  Goodyear AZ Retail 2021 8 38,913 $7,600,000 $7,600,000
Hawes Mesa AZ Land (OZ Industrial Development) 2021   1,510,380 $6,796,710 $6,796,710
Portland Newberg OR Retail 2021   14,418 $4,443,636 $4,443,636
Trinity Gas Portfolio Miami FL Retail 2021 2 7,296 $7,600,000 $7,600,000
68th Ave Denver CO Land (OZ Industrial Development) 2022   311,018 $6,700,000 $6,700,000
Total             $838,610,853 $1,401,343,049

(1) The above biography and track record were provided by the Sponsor and have not been independently verified by RM Technologies, LLC or its affiliates.  . Past performance is not indicative of future results. Please carefully review the Disclaimers section below.

(2) Refer to the documents section for a Performance Graph

Business Plan

Business Plan

The Manager will complete the design and construction of the Project as described below and expects to sell the asset to either an Opportunity Zone (OZ) fund or the general market at or prior to the time when the Project receives its Temporary Certificate of Occupancy (TCO), which is anticipated to occur in mid-2024. Investors in the development will benefit from a quick exit and a sale to a motivated buyer pool, with a StarPoint Right of First Refusal, which can pay a premium due to the significant tax advantages of the OZ program and benefit from investing in assets completely removed of construction risk. The returns will go beyond profits, with full implementation of policies and practices to create positive environmental, social, and governance impacts.

Project Description
Upon completion, Dobson Station will consist of four stories of Type V-A construction. The building will include modern amenities such as a swimming pool, fitness center, clubhouse, coworking facility, and group kitchen. The Project will also include 369 parking stalls, split between tuck-under and on-grade parking. The unit mix will consist of Studios, 1-Bed/1-Bath, and 2-Bed/2-Bath with an average unit size of 865 SF — well above the market average.

Location Description
Dobson Station boasts an exceptional location near Phoenix’s main transportation arteries. Located one mile from SR-101, one and ½  miles from SR-202, and two miles from US-60, future residents will have incredible access to the region’s polycentric job centers and amenities. Notably, located 5 minutes from the nearby Metro Phoenix light rail stop, residents will have easy, car-free access to Downtown Mesa, Arizona State University, Phoenix Sky Harbor Airport, and Downtown Phoenix. Additionally, the Project is directly adjacent to a Safeway neighborhood center with multiple retail amenities and boasts a walk score of 78 and a bike score of 94.

Development Costs

  $ Amount Per Unit
Land Price $6,930,000 $28,286
Acquisition Costs $34,650 $141
Total Land Costs $6,964,650 $28,427
     
Hard Costs    
Construction $44,291,907 $180,783
General Contractor's Fee & Overhead $1,664,009 $6,792
GC Contingency $2,049,878 $8,367
Owner Inflation $4,802,578 $19,602
Total Hard Costs $52,808,371 $215,544
     
Soft Costs    
Municipal Fees & Permits $1,570,805 $6,411
Consultants (DD, Entitlements, A&E) $2,050,000 $8,367
Marketing & FF&E $537,000 $2,192
Owners Insurance $650,000 $2,653
Legal & Accounting $140,000 $571
Property Taxes $247,581 $1,011
Pre-Opening Expense / Operating Deficit $1,434,671 $5,856
Total Softs Costs $6,630,057 $27,061
     
Financing Costs    
Construction Interest $2,765,991 $11,290
Financing Costs $859,992 $3,510
Total Financing Costs $3,625,983 $14,800
     
Other Costs    
Developers Fee $2,046,619 $8,354
Construction Management Fee $593,800 $2,424
Owner's Contingency $3,168,502 $12,933
Total Other Costs $5,808,921 $23,710
     
Grand Total $75,837,983 $309,543
Property

Investor Q&A 7/19/2022

Property Details

The Project, located near the intersection of Dobson Road and Main Street, is situated only one mile away from the SR-101 freeway and a five-minute walk from a Metro light-rail stop. Fully entitled, construction is scheduled to begin in mid-2022, with the Project exit expected in mid-2024.

Unit Mix

Unit Type # of Units Avg SF / Unit $ / Unit $ / SF % of Total
Studio 25 582 $1,298 $2.23 10%
1x1 127 784 $1,513 $1.93 52%
2x2 93 1052 $1,940 $1.84 38%
Total/Averages 245 865 $1,653 $1.91 100%
Comparables

Lease Comparables

  Metro 101 Cadia Crossing Broadstone Rio Salado Tempo at McClintock 1221 Broadway Averages Subject
Year Built 2019 2017 2020 2017 2016 2018 2024
# of Units 259 256 276 423 194 282 245
Average Rental Rate $1,884 $1,613 $1,922 $1,510 $1,552 $1,696 $1,653
Average Unit Size 781 1,034 910 914 940 916 865
Average $/SF $2.41/SF $1.56/SF $2.11/SF $1.65/SF $1.65/SF $1.88/SF $1.93/SF
Levels 4 4 4 4 4 4 4
Occupancy 93.00% 93.60% 89.70% 98.00% 98.20% 94.50%  
Distance from Subject 1.2 mi 7.5 mi 1.2 mi 2.0 mi 2.7 mi 2.9 mi  
               
$/Unit (Studio) $1,594 N/A $1,501 $1,459 $1,385 $1,485 $1,298
SF (Studio) 522 N/A 617 600 738 619 582
$/SF (Studio) $3.05/SF N/A $2.43/SF $2.43/SF $1.88/SF $2.45/SF $2.23/SF
               
$/Unit (1x1) $1,677 $1,584 $1,673 $1,509 $1,535 $1,596 $1,513
SF (1x1) 651 790 728 685 738 718 784
$/SF (1x1) $2.58/SF $2.01/SF $2.30/SF $2.20/SF $2.08/SF $2.23/SF $1.93/SF
               
$/Unit (2x2) $2,155 $1,805 $2,380 $1,969 $1,680 $1,998 $1,940
SF (2x2) 1,053 1,111 1,221 1,071 978 1,087 1,052
$/SF (2x2) $2.05/SF $1.62/SF $1.95/SF $1.84/SF $1.72/SF $1.84/SF $1.84/SF

Sales Comparables

  Tempo at McClintock Station Peak 16 Broadstone Grand Elevation San Tan Hampton East Averages Subject
Date Sold Oct-21 Sep-21 Sep-21 Aug-21 May-21   2024
Year Built 2017 2018 2020 2020 2018 2019 2024
# of Units 423 233 300 297 143 279 245
Average Unit Size 902 SF 833 SF 885 SF 865 SF 970 SF 891 SF 865 SF
Sale Price $160,000,000 $81,350,000 $106,500,000 $91,179,000 $38,000,000 $95,405,800 $96,405,000
$/Unit $378,251 $349,142 $355,000 $307,000 $265,734 $331,025 $393,490
$/SF $419.35 $419.14 $401.13 $354.91 $273.95 $373.70 $454.84
Building Size 381,546 SF 194,089 SF 265,500 SF 256,905 SF 138,710 SF 247,350 SF 211,954 SF
Distance from Subject 2.0 mi 11.8 mi 4.6 mi 10.8 mi 14.8 mi 8.8 mi  
Location

Market Overview

Phoenix is a Tier-1, rapidly growing market. The Phoenix MSA boasts 5.1M people, with a population growth of 20% since 2010. The unemployment rate was 3.2% as of the end of 2021, with YoY job growth of 5.6%. Over 30 Fortune 500 companies are headquartered or have major operations in Phoenix, and the Greater Phoenix Economic Council reported that 270 global companies are seeking to add or increase their presence. More employment opportunities in the Valley combined with a lower cost of living compared to other large metros (Rent Share of Wallet is 31.9%) will continue to attract new residents, creating historic housing demand.

Phoenix multifamily rents have increased by over 20% YoY in 2021, with substantial growth forecasted through 2026. The vacancy rate across the market is currently below 6% and is forecast to end 2022 at 97.0%, 130 basis points higher than the preceding five-year average.

Submarket Overview

Mesa, with over 500K residents, is the 37th largest city in the US (larger than Miami, St. Louis, and Minneapolis) & the 2nd largest city in the Phoenix MSA, with over 40K students enrolled in 10 colleges and universities within the city limits.

The Competitive Market Area ("CMA") demographics are as follows (the CMA is defined as the area of Mesa north of Route 60):

  • 375K people in 143K total households, with 143K people in the workforce
  • Median age of 36, with a median income of $53K
  • 42% of the population are renters
  • High job density, with 123K jobs in the CMA
  • 89% of people over age 25 have a high school diploma, while 27% have a bachelor’s degree or higher

Dobson Station is adjacent to community-serving retail, public transportation, and higher education options, and is a short drive from the main highways of Phoenix.

Photos
Financials
Sources & Uses

Total Project Capitalization

Sources of Funds $ Amount $/Unit
Debt $48,362,153 $197,397
GP Investor Equity $1,358,400 $5,544
LP Investor Equity $26,117,430 $106,602
Total Sources of Funds $75,837,983 $309,543
     
Uses of Funds $ Amount $/Unit
Site Acquisition Costs $6,964,650 $28,427
Hard Costs $48,005,794 $195,942
Soft Costs $9,270,476 $37,839
Owner's Inflation & Contingency $7,971,080 $32,535
Capitalized Interest Expense $2,765,991 $11,290
Finance Fees & Other $859,992 $3,510
Total Uses of Funds $75,837,983 $309,543

(3) 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 for the Project are as follows:

  • Term: 5 Years
  • LTC: 63.0%
  • Estimated Proceeds: $47,807,800
  • Interest Type: Actual/360 up until the Full Funding Date and 30/360 thereafter
  • Spread above one-month SOFR: 3.25%
  • Interest-only Period: Full Term
  • Amortization: N/A
  • Prepayment Terms: Months 1-24: Closed to Prepayment; Months 25-60: Open at Par
  • Extension Requirements: N/A
  • Modeled Refinance: No

(4) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt. 

Distributions

The Manager intends to make distributions as follows:

  1. To the Investors, pari passu, all operating cash flows to an 10.0% IRR;
  2. 80% / 20% (80% to Investors / 20% to Promoted/Carried Interest) of excess cash flow to a 14.0% IRR;
  3. 70% / 30% (70% to Investors / 30% to Promote/Carried Interest) of excess cash flow thereafter.

​The Manager 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 Offering  Documentation, in addition to any member loans or returns due on member loans). Distributions are at the discretion of ​the Manager, who may decide to delay distributions for any reason, including maintenance or capital reserves.

​The Manager will receive a promoted/carried interest as indicated above.

Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 (5)
Net Cash Flow ($27,475,830) $0 $0 $43,367,640
         
Investor-Level Cash Flows (2)
  Year 0 Year 1 Year 2 Year 3 (5)
Net Cash Flow ($10,222,222) $0 $0 $15,783,923
         
Investor-Level Cash Flows - Hypothetical $50,000 Investment (6)
  Year 0 Year 1 Year 2 Year 3 (5
Net Cash Flow ($50,000) $0 $0 $77,204

(5) Stub year of one month

(6) RM Technologies, LLC and its affiliates do not provide any assurance of returns.  Returns presented are net of all fees.  Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC

Fees

Certain fees and compensation will be paid over the life of the ownership of the Project; please refer to the Offering Documentation for specific details. The following fees and compensation will be paid(7)(8):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Developer Fee 3.9% of all development costs Manager or its designated affiliate Capitalization
Equity Financing Fee 2.5% of aggregate capital contributions Manager or its designated affiliate Capitalization
Debt Financing Fee 1.0% of the Loan Amount Manager or its designated affiliate Capitalization
       
Recurring Fees:
Type of Fee Amount of Fee   Paid From
Asset Management Fee 1.5% of aggregate capital contributions, paid monthly Manager Cash Flow
Property Management Fee 3.0% of gross operating income, paid monthly StarPoint Property Management, LLC, or a designated affiliate of Manager Cash Flow
       
RM Technologies, LLC Fees, to be paid by the Manager:   Received By  
Technology Solution Licensing Fee(8) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC  
Administration Solution Licensing Fee(8) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC  

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

(8) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

Disclaimers/FAQs
Disclaimers

Sponsor’s Projects and Targets

*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates.  RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates.   There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate.  The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance.  There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets.  Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.

No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC or it Affiliates

The information on this Page, including the Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”) was provided by the Sponsor or an affiliate thereof.  RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  No part of the information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s Investment Documents.  The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.

Sponsor’s Information Qualified by Investment Documents

The Information on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents.  The information on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment.  The information on this page should not be used as a primary basis for an investor’s decision to invest.  In the event of an inconsistency between the information on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents.  The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.

Risk of Investment

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

Risk of Forward-Looking Statements

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

Sponsor’s use of Debt

A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. The use of borrowed money to acquire real estate is referred to as leveraging.  Leveraging increases the risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.

Sponsor’s Offering is Not Registered

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

RM Technologies, LLC Fees and Conflicts

RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution.  An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering.  RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

No Investment Advice

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

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

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