GVA Real Estate Group was founded in 2015. GVA is an Austin-based vertically integrated real estate company committed to creating value in the multi-family real estate sector. The company specializes in conventional as well as affordable opportunities, paying particular attention to expanding sub-markets.
GVA currently owns 138 properties, 25,796 units, and has $4.9B in assets under management in Texas, Tennessee, the Carolinas, Georgia, Oklahoma, and Colorado. GVA has sold 70 properties for an average gross IRR of 45.2%. GVA has refinanced 27 transactions returning, on average, 104.5% of equity to its investors while continuing to hold the assets and distribute property cash flows to investors. At GVA, their investment strategy is simple, find opportunities that can yield above-market cash flow once stabilized while generating capital appreciation in the short and long term.
Mission Matthews Place ("the Property") is a well-built 1994 vintage multifamily asset conveniently located in the heart of Matthews, one of the hottest submarkets of Charlotte. The Property is situated along East Independence Boulevard, one of the primary east-west thoroughfares, which connects Matthews with Uptown Charlotte (10 miles). This location offers residents access to multiple economic demand drivers, retail, and job opportunities throughout the Matthews submarket and the Charlotte MSA. Additionally, the Matthews submarket has impressive demographics and multi-family fundamentals, positioning the Property for growth for years to come.
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Avg Rent (In-Place) | Avg Rent (Post-Reno) | Avg Rent Per SF (In-Place) | Avg Rent Per SF (Post-Reno) |
| 1x1 | 63 | 685 | $1,027 | $1,429 | $1.50 | $2.09 |
| 1x1 | 84 | 774 | $1,067 | $1,449 | $1.38 | $1.87 |
| 1x1 Loft | 36 | 946 | $1,146 | $1,499 | $1.21 | $1.59 |
| 2x2 | 92 | 965 | $1,197 | $1,579 | $1.24 | $1.64 |
| 2x2 | 85 | 1,038 | $1,273 | $1,619 | $1.23 | $1.56 |
| 3x2 | 32 | 1,208 | $1,451 | $1,769 | $1.20 | $1.46 |
| Total/Averages | 392 | 913 | $1,174 | $1,544 | $1.29 | $1.69 |
Lease Comparables
| Sardis Place at Matthews | Park 2300 | Matthews Reserve | Averages | Subject (Post-Reno) | |
| Year Built | 1989 | 1985 | 1997 | 1990 | 1994 |
| Class | B | B | B+ | A- | |
| # of Units | 420 | 384 | 212 | 339 | 392 |
| Average Unit Size | 983 SF | 842 SF | 942 SF | 922 SF | 913 SF |
| Levels | 2 and 3 | 2 and 3 | 2 and 3 | 2 and 3 | 2 and 3 |
| Occupancy | 92.90% | 97.10% | 98.10% | 96% | 92% |
| Distance from Subject | 0.1 mi | 0.7 mi | 2.3 mi | 1.0 mi | |
| $/Unit (1x1) | $1,250 | $1,250 | $1,429 | ||
| SF (1x1) | 630 | 630 | 685 | ||
| $/SF (1x1) | $1.98 | $1.98 | $2.09 | ||
| $/Unit (1x1) | $1,400 | $1,457 | $1,544 | $1,467 | $1,449 |
| SF (1x1) | 724 | 750 | 719 | 731 | 774 |
| $/SF (1x1) | $1.93 | $1.94 | $2.15 | $2.01 | $1.87 |
| $/Unit (2x2) | $1,551 | $1,698 | $1,652 | $1,634 | $1,619 |
| SF (2x2) | 1,095 | 980 | 1,039 | 1,038 | 1,038 |
| $/SF (2x2) | $1.42 | $1.73 | $1.59 | $1.58 | $1.56 |
| $/Unit (3x2) | $2,085 | $1,680 | $1,825 | $1,863 | $1,769 |
| SF (3x2) | 1,252 | 1,252 | 1,266 | 1,257 | 1,208 |
| $/SF (3x2) | $1.67 | $1.34 | $1.44 | $1.48 | $1.46 |
Sales Comparables
| The Cove at Matthews | Matthews Square | Magnolia Heights | Creekside at Matthews | Montford at Madison Park | Averages | Subject (Going-in) | Subject (At-Exit) | |
| Date Sold | 6/3/2022 | 9/29/2021 | 12/30/2020 | 6/30/2021 | 1/5/2022 | |||
| Year Built | 1988 | 2020 | 2004 | 2000 | 1999 | 2002 | 1994 | 1994 |
| # of Units | 288 | 350 | 174 | 240 | 204 | 251 | 392 | 392 |
| Average Unit Size | 775 SF | 1,000 SF | 1,121 SF | 1,075 SF | 1,064 SF | 1,007 SF | 913 SF | 913 SF |
| Sale Price | $60,250,000 | $92,500,000 | $43,000,000 | $58,000,000 | $62,000,000 | $63,150,000 | $92,000,000 | $148,259,387 |
| $/Unit | $209,201 | $264,286 | $247,126 | $241,667 | $303,922 | $253,240 | $234,694 | $378,213 |
| $/SF | $270/SF | $264/SF | $220/SF | $225/SF | $285/SF | $253/SF | $257/SF | $414/SF |
| Cap Rate | 3.65% | 3.65% | 4.18% | 4.50% | ||||
| Building Size | 223,200 SF | 350,222 SF | 195,103 SF | 258,060 SF | 217,180 SF | 248,753 SF | 357,880 SF | 357,880 SF |
| Distance from Subject | 1.8 mi | 3.1 mi | 4.9 mi | 3.9 mi | 6.9 mi | 4.1 mi | ||
| Address | 1701 Gander Cove Lane, Matthews, NC | 4010 Waiting Street, Matthews, NC | 3720 Wendwood Lane, Charlotte, NC | 12825 Vinings Creek Dr, Matthews, NC | 1420 Estates Avenue, Charlotte, NC |
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $70,437,000 | $179,686 |
| GP Investor Equity(1) | $6,143,339 | $15,672 |
| LP Investor Equity | $26,480,761 | $67,553 |
| Total Sources of Funds | $103,061,100 | $262,911 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $92,000,000 | $234,694 |
| Acquisition Fee | $1,840,000 | $4,694 |
| Loan Fee | $704,370 | $1,797 |
| Closing Costs | $423,328 | $1,080 |
| CapEx | $3,519,324 | $8,978 |
| Working Capital | $3,753,193 | $9,574 |
| Interest Rate Cap | $820,885 | $2,094 |
| Total Uses of Funds | $103,061,100 | $262,911 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) Please refer to PPM for more details.
The expected terms of the debt financing are as follows:
- Lender: ReadyCapital
- Term: 3 Years with two 12-month extension options
- LTC: 68.3%
- Estimated Proceeds: $70,437,000
- Interest Type: Floating
- Spread above one-month SOFR(1): 4.75%
- Interest-Only Period: 36 Months
- Amortization: 30 Years during extension options
- Prepayment Terms: Open prepay, subject to Minimum Interest and Exit Fee requirements
- Extension Requirement: No prior Events of Default or material adverse effect during the initial Loan Term; Payment of the Extension Fee; Maximum LTV of 70% subject to updated Lender engaged valuations; Minimum occupancy of 94%; Minimum debt yield of 6.75%; and Satisfactory renewal of interest rate cap (if applicable)
- Modeled Refinance: Yes
- Refinance Information: Agency
- Lender: Fannie/Freddie
- Term: 5 Years
- Estimated Proceeds: $88,519,971
- Interest Type: Floating
- Interest Rate: All-in rate of 4.0%
- Interest-Only Period: 60 Months
- Amortization: 30 Years
(1) The Sponsor has secured an interest rate cap with a 2.75% strike rate for the debt in place, capping the max interest rate at 7.50%
(2) The Loan is cross-collateralized with another property named Waterford Hills Apartments. The Waterford Property is located at 6219 Waterford Hills Drive, Charlotte, North Carolina 28269. Prospective investors are encouraged to read the PPM which provides more details on the cross-collateralization.
(3) 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 Sponsor's use of debt.
GVA Real Estate Group intends to make distributions from GVA PRO LLC as follows:
- To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
- 22.2% promote to Sponsor to a 16.0% IRR (70% to Investors / 30% to Sponsor);
- 44.4% promote to Sponsor thereafter (50% to Investors / 50% to Sponsor).
GVA Real Estate Group 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 May 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of GVA Real Estate Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
GVA Real Estate Group will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Effective Gross Revenue | $6,350,498 | $7,478,517 | $8,278,712 | $8,711,893 | $9,088,193 | |
| Total Operating Expenses | $2,300,147 | $2,524,243 | $2,581,822 | $2,627,146 | $2,710,278 | |
| Net Operating Income | $4,050,351 | $4,954,274 | $5,696,890 | $6,084,746 | $6,377,914 | |
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($32,624,100) | $655,709 | $1,216,470 | $18,449,639 | $2,438,437 | $63,422,710 |
| Investor-Level Cash Flows(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($5,000,000) | $49,495 | $135,437 | $2,776,609 | $322,717 | $7,111,405 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($50,000) | $495 | $1,354 | $27,766 | $3,227 | $71,114 |
(1) 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.
Certain fees and compensation will be paid over the life of the transaction; please refer to GVA Real Estate Group'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 | 2% of Purchase Price | GVA Real Estate | Capitalization |
| Construction Management Fee | 10% of Hard Costs | GVA Real Estate | Capitalization |
| Technology Solution Licensing Fee(2) | 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 |
Capitalization |
| Recurring Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Administration Solution Licensing Fee(2) | Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of RM Technologies’ Administration Solution | RM Technologies, LLC | Cash Flow |
| Property Management Fee | 3.5% of Total Revenues | GVA Real Estate | Cash Flow |
| Asset Management Fee | 1.5% of Total Revenues | GVA Real Estate | Cash Flow |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
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RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLCSponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including 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”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment DocumentsThe information on this Page 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 subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. 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. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering 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 offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership 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 Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
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1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.