The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
The Saxon Pond all-in cost basis is projected to be $172K per unit which compares very favorably with newly constructed properties selling in the market today at $200-230K per unit.
Rent growth was 5.4% year-over-year for the immediate comparables during 2022.
The Sponsor was able to acquire the 14-acre land site in 2021 at an attractive basis of $7.11 PSF versus recent sales at $9.00 PSF. The Sponsor is contributing the land to the partnership at cost, without markup.
![Cumulative Distributions](https://app.realtymogul.com/sites/default/files/styles/private_placement_management_logo/public/ascension_moriah_logo.png?itok=MTAWl420)
Ascension
Ascension Commercial Real Estate (“ACRE”) is a vertically integrated investment and management firm that specializes in realizing the operational and economic potential of multifamily assets through new development, proven value-add strategies, and hands-on management. ACRE’s foundation combines the entrepreneurial spirit with an institutional-quality approach toward investment underwriting and asset management.
Founded in 2008, ACRE has acquired or developed over 8,000 units across Texas and has experience managing multifamily assets through all stages of the real estate cycle. ACRE has operated a variety of multifamily assets including new construction lease-up projects, stabilized and value add assets, and distressed lender foreclosures/receiverships. ACRE has managed up to 10,000 units. The Principals of Ascension Multifamily Construction have 60 years of combined experience in multifamily construction with 6,900 units representing in excess of $700 million in hard costs. The Sponsor's average realized IRR has been 58.0% versus 21.6% proforma, and the average realized Equity Multiple of 3.8x outpaces 2.3x proforma.
Moriah
Moriah Real Estate Company, ("MREC“) provides a platform for its investors to leverage the experience and success of the principals as private equity investors and managers in commercial real estate. Since 2009, MREC has completed $2.2 billion in real estate transactions, including $466 million of equity. Together the Principals have over eighty years of combined experience in owning and managing a real estate investment portfolio that includes office, industrial, multifamily, hotel, retail, and ground-up development in 19 states. MREC has invested across multiple real estate asset classes including office, multifamily, condominium, university housing, hospitality, industrial, retail, manufactured housing communities, and commercial land.
Track Record of Ascension and Moriah
Property | Location | Date of Acquisition | Date of Exit | Units | Purchase Price | Total Project Costs | Realized Investor IRR | Realized Multiple |
Vista at Plum Creek | Kyle | Nov-13 | Oct-18 | 264 | $24,500,000 | $25,600,000 | 17.5% | 2.0x |
Faudree Ranch | Odessa | Nov-12 | May-17 | 300 | $29,812,239 | $39,581,239 | 30.3% | 2.7x |
Aria Plum Creek | Kyle | Dec-14 | Jul-17 | 180 | $18,975,000 | $15,275,000 | 20.2% | 1.6x |
Westchase Grand | Houston | Jul-11 | Jul-18 | 556 | $11,591,000 | $19,002,000 | 60.3% | 7.4x |
Westchase Preserve | Houston | Jul-11 | Jul-18 | 468 | $9,074,000 | $16,649,000 | 54.6% | 5.9x |
Westchase Estates | Houston | Jul-11 | Jul-18 | 307 | $6,184,000 | $9,833,000 | 55.7% | 7.0x |
Sheffield Square | Houston | Jul-11 | Jun-17 | 190 | $4,278,000 | $5,658,000 | 65.8% | 6.1x |
Pointe at Steeplechase | Houston | Jul-11 | Sep-15 | 316 | $7,585,000 | $11,886,000 | 42.5% | 2.8x |
Berkshire | Houston | Jul-11 | Jul-15 | 227 | $3,656,000 | $5,429,000 | 50.1% | 3.1x |
Park on Burke | Pasadena | Jul-11 | Apr-15 | 160 | $4,420,000 | $6,967,000 | 33.9% | 2.4x |
Shadow Creek | Houston | Jul-11 | Feb-15 | 296 | $3,753,000 | $6,984,000 | 75.7% | 4.8x |
The Bays | Houston | Jul-11 | Feb-15 | 289 | $8,837,000 | $8,837,000 | 38.1% | 2.6x |
Timber Run | Houston | Jul-11 | Sep-13 | 120 | $1,427,000 | $2,073,000 | 94.4% | 3.8x |
Princeton Club | Houston | Jul-11 | Dec-12 | 291 | $4,259,000 | $6,185,000 | 200.4% | 4.1x |
Aubry Hills | Austin | Jul-11 | Dec-12 | 192 | $5,873,000 | $8,529,000 | 30.4% | 1.4x |
Total: | 4,156 units | $144,224,239 | $188,488,239 | 58.0% | 3.8x |
Track Record of Ascension
Property | Location | Date of Acquisition | Date of Exit | Units | Original Cost | Realized Investor IRR | Realized Multiple |
Faudree Ranch | Odessa | Nov-12 | May-17 | 300 | $29,812,239 | 30.3% | 2.7x |
Aria Victoria | Victoria | Feb-14 | Jun-18 | 240 | $23,122,119 | 22.0% | 2.9x |
Aria Plum Creek | Kyle | Dec-14 | Jul-17 | 180 | $18,975,000 | 21.7% | 1.6x |
Retreat at Cinco Ranch | Cinco Ranch | Jun-07 | Jul-10 | 268 | $23,300,000 | 22.0% | 1.8x |
2125 Yale | Houston | Jul-06 | Dec-12 | 195 | $29,075,000 | 15.1% | 2.5x |
Retreat at The Woodlands | The Woodlands | Jul-11 | Oct-13 | 240 | $23,200,000 | 75.0% | 3.9x |
Retreat at Conroe | Conroe | Dec-11 | Jul-14 | 210 | $18,515,000 | 21.0% | 2.0x |
Retreat at Riverstone | Sugar Land | Apr-12 | Apr-20 | 249 | $33,816,000 | 25.0% | 2.7x |
Harpers Retreat | Conroe | Dec-13 | Sep-18 | 216 | $25,500,000 | 15.0% | 1.8x |
New Construction Total/Average | 2,098 | $225,315,358 | |||||
Value-Add Properties | Various | 5,947 | $203,844,000 | 53.6% | 3.9x | ||
Total: | 8,045 units | $429,159,358 | 45.4% | 3.4x |
The above biographies and track records 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.
Saxon Pond Flats will be a 360-unit Class A multifamily property beginning construction in early 2023. The Project is currently shovel-ready and permits are being pulled. The Property will feature 204 one-bedroom units, 138 two-bedroom units, and 18 three-bedroom units. It will feature built-in desks with cabinets, black stainless appliances, first-floor private yards, and larger balconies on the second and third floors. The Property also includes a walking path around a natural pond. The clubhouse and first residential building will be delivered in 1Q2024, approximately twelve months after construction commences. The Sponsor is underwriting that the Property will reach stabilization in 3Q2025. The Saxon Pond all-in cost basis is projected to be $172K per unit which compares very favorably with newly constructed properties trading the market today at $200-230K per unit. Submarket fundamentals are strong and absorption of multifamily units in Northwest Houston is one of the highest in the nation (according to Costar).
Development Costs
$ Amount | Per Unit | |
Hard Costs | ||
General Conditions & Insurance | $2,351,517 | $6,532 |
Concrete | $2,592,801 | $7,202 |
Masonry | $159,100 | $442 |
Steel | $828,629 | $2,302 |
Woods & Plastics | $13,475,427 | $37,432 |
Thermal & Moisture Protection | $1,327,386 | $3,687 |
Doors & Windows | $1,904,795 | $5,291 |
Finishes | $4,517,227 | $12,548 |
Special Conditions | $381,608 | $1,060 |
Equipment | $1,777,478 | $4,937 |
Furnishings | $2,236,814 | $6,213 |
Special Construction | $219,630 | $610 |
Fire Protection | $632,800 | $1,758 |
Plumbing | $2,804,507 | $7,790 |
Mechanical | $1,585,690 | $4,405 |
Electrical | $2,937,281 | $8,159 |
Communications | $137,001 | $381 |
Electronic Safety & Security | $360,330 | $1,001 |
Earthwork | $1,368,293 | $3,801 |
Exterior Improvements | $2,055,528 | $5,710 |
Utilities | $1,791,000 | $4,975 |
Total Hard Costs | $45,444,842 | $126,236 |
Additional Contingency | $2,387,158 | $6,631 |
Grand Total | $47,832,000 | $132,867 |
Investor Q&A 3/14/2023
Saxon Pond Flats will be a 360-unit Class A multifamily property beginning construction in early 2023. The Property will feature 204 one-bedroom units, 138 two-bedroom units, and 18 three-bedroom units. It will feature built-in desks with cabinets, the latest black stainless appliances, first-floor private yards, and larger balconies on the second and third floors. The Property also includes a walking path around a natural pond.
Unit Mix
Unit | # of Units | % of Total | Style | Unit Sq.Ft. | Total Sq. Ft. | Total $/Month | $ Per Sq. Ft. | $ Per Month |
A1 | 120 | 33.33% | 1B - 1B | 674 | 80,880 | $148,440 | $1.84 | $1,237 |
A2 | 48 | 13.33% | 1B- 1B | 798 | 38,304 | $69,072 | $1.80 | $1,439 |
A2 - End Con. | 36 | 10.00% | 1B - 1B | 809 | 29,124 | $52,380 | $1.80 | $1,455 |
B1 | 30 | 8.33% | 2B - 2B | 1,025 | 30,750 | $51,180 | $1.66 | $1,706 |
B1 - End Con. | 48 | 13.33% | 2B - 2B | 1,033 | 49,584 | $82,368 | $1.66 | $1,716 |
B2 | 24 | 6.67% | 2B - 2B | 1,098 | 26,352 | $43,488 | $1.65 | $1,812 |
B2 - End Con. | 36 | 10.00% | 2B - 2B | 1,105 | 39,780 | $65,808 | $1.65 | $1,828 |
C1 | 18 | 5.00% | 3B - 2B | 1,318 | 23,724 | $35,118 | $1.48 | $1,951 |
Total | 360 | 318,498 | $547,854 | |||||
Avg | 885 | $1.72 | $1,522 |
Lease Comparables
Ariza Gosling | Berkshire Exchange | Harmony Park | Canopy at Springwoods | Abbey at Northpoint | Averages | Subject | |
Year Built | May 2021 | Apr 2019 | Jun 2016 | Jan 2021 | Sept 2016 | ||
# of Units | 316 | 352 | 273 | 332 | 307 | 316 | 360 |
Average Unit Size | 873 SF | 934 SF | 921 SF | 940 SF | 872 SF | 908 SF | 885 SF |
Levels | 3 | 3 | 3 | 3 | 4 | 3 | |
Occupancy | 94.7% | 94.8% | 99.2% | 96.1% | 93.1% | 95.6% | |
Distance from Subject | 4.4 mi | 1.9 mi | 6.5 mi | 2.6 mi | 4.3 mi | 3.9 mi | |
$/Unit (1 BR) | $1,375 | $1,223 | $1,384 | $1,597 | $1,413 | $1,398 | $1,323 |
SF (1 BR) | 751 SF | 665 SF | 754 SF | 779 SF | 703 SF | 730 SF | 727 SF |
$/SF (1 BR) | $1.83/SF | $1.84/SF | $1.84/SF | $2.05/SF | $2.01/SF | $1.91/SF | $1.82/SF |
$/Unit (2 BR) | $1,697 | $1,448 | $1,728 | $1,898 | $1,896 | $1,733 | $1,760 |
SF (2 BR) | 1,042 SF | 809 SF | 1,104 SF | 1,171 SF | 1,142 SF | 1,054 SF | 1,061 SF |
$/SF (2 BR) | $1.63/SF | $1.79/SF | $1.57/SF | $1.62/SF | $1.66/SF | $1.65/SF | $1.66/SF |
$/Unit (3 BR) | $2,004 | $1,844 | $2,189 | $2,490 | $2,484 | $2,202 | $1,951 |
SF (3 BR) | 1,214 SF | 1,279 SF | 1,438 SF | 1,541 SF | 1,588 SF | 1,412 SF | 1,318 SF |
$/SF (3 BR) | $1.65/SF | $1.44/SF | $1.52/SF | $1.62/SF | $1.56/SF | $1.56/SF | $1.48/SF |
Sales Comparables
Woodbridge at Grand Central | The Sarah at Lake Houston | Pavilion at the Groves | Magnolia by Watermark | Alta Cathedral Lakes | Enclave at Woodland Lakes | Averages | Subject (Project Cost) | |
Date Sold | Aug-22 | Jul-22 | Mar-22 | Mar-22 | Dec-21 | Nov-21 | ||
Year Built | Mar 2021 | Nov 2020 | May 2021 | Jul 2020 | Dec 2020 | May 2021 | ||
# of Units | 288 | 350 | 318 | 336 | 300 | 316 | 318 | 360 |
Average Unit Size | 947 SF | 908 SF | 955 SF | 976 SF | 919 SF | 873 SF | 930 SF | 885 SF |
Sale Price | $64,000,000 | $79,250,150 | $68,500,062 | $64,000,000 | $65,100,000 | $67,249,856 | $68,016,678 | $62,041,000 |
$/Unit | $222,222 | $232,857 | $215,409 | $209,003 | $217,000 | $212,816 | $218,218 | $172,336 |
$/SF | $164/SF | $302/SF | $216/SF | $191/SF | $325/SF | $283/SF | $247/SF | $195/SF |
Building Size | 389,369 SF | 262,500 SF | 316,000 SF | 335,258 SF | 200,000 SF | 237,000 SF | 290,021 SF | |
Distance from Subject | 17.2 mi | 24.0 mi | 21.6 mi | 4.5 mi | 5.4 mi | 4.5 mi | 12.9 mi |
Market Overview
Houston has been the nation's second most active real estate market over the last decade. Houston MSA reports 3.3 million jobs in the area; with the world's #1 largest medical center and the 11th large tech workforce. Houston is the primary destination for newcomers moving to Texas.
Vacancy rate is 8.3% city-wide and is expected to remain at its historical average in the near term. Vacancy rate is 4.4% in the submarket which is considerably better than the city as a whole. Rent growth was 3.0% year-over-year for the Houston MSA over the same time period. While rent growth was 5.4% year-over-year for the immediate comparables during 2022.
New construction sales average over $200,000 per unit in the suburbs, which far exceeds the construction cost. Multifamily investment volume in Houston totaled nearly $9 billion through the end of the third quarter of 2022.
Submarket Overview
The Northwest Submarket of Houston has been one of the most vibrant in the region. Almost 80% of all population growth has happened in the unincorporated area of Harris County, in which the Northwest Submarket is located. Saxon Pond Flats is located at the intersection of two major regional highway systems: Interstate 45 (leading to Downtown Houston) and The Grand Parkway (the newest major freeway that has seen billions of dollars in commercial development).
Saxon Pond Flats is located in the Klein Independent School District. It is ranked in the top 8% of best school districts in the state, top 7% of best places to teach in Texas, and top 1% of most diverse school districts in Texas. The Property is located less than two miles from Klein Collins High School.
![](https://app.realtymogul.com/sites/default/files/styles/private_placement_cap_stack/public/io/capstack/saxon_capstack2.png?itok=Cm0d-hSd)
Total Capitalization(1)
Sources of Funds | $ Amount | $/Unit |
Debt | $40,326,650 | $112,018 |
GP Investor Equity(2)(3) | $1,086,350 | $3,018 |
LP Investor Equity | $20,628,000 | $57,300 |
Total Sources of Funds | $62,041,000 | $172,336 |
Uses of Funds | $ Amount | $/Unit |
Land Acquisition Price | $4,344,000 | $12,067 |
Hard Costs | $47,832,000 | $132,867 |
Office / Models / Signage | $856,393 | $2,379 |
Architect | $491,801 | $1,366 |
Government Fees | $506,139 | $1,406 |
Engineering | $481,801 | $1,338 |
Interest Rate Cap | $734,327 | $2,040 |
Construction Loan Fee | $483,920 | $1,344 |
Developer Fee | $2,172,000 | $6,033 |
Closing Costs(4) | $1,125,359 | $3,126 |
Contingency | $1,910,000 | $5,306 |
Operating Deficit | $392,386 | $1,090 |
Interest Deficit | $710,874 | $1,975 |
Total Uses of Funds | $62,041,000 | $172,336 |
(1) Moriah is funding $10MM in LP Equity.
(2) The Sponsor is contributing the land to the partnership at cost, without markup.
(3) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(4) 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 expected terms of the debt financing are as follows:
- Lender: IBC
- Initial Term: 48 months
- Extension: 24 months extension option
- LTC: 65.0%
- Estimated Proceeds: $40,326,650
- Interest Type: Floating
- Spread: New York Prime index + 0%
- Interest-Only Period: 48 months
- Amortization: 25 years
- Modeled Refinance: No
(1) 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.
Ascension and Moriah intend to make distributions from AM 2920, LLC as follows:
- To the Investors, pari passu, all operating cash flows to an 8.0% Preferred Return compounded quarterly;
- 70% / 30% (70% to Investors / 30% to Promoted/Carried Interest) of excess cash flow to a 16.0% IRR;
- 50% / 50% (50% to Investors / 50% to Promote/Carried Interest) of excess cash flow thereafter.
Ascension and Moriah intend 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 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Ascension and Moriah, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Ascension and Moriah will receive a promoted/carried interest as indicated above.
Cash Flow Summary | |||||
Month 1-12 | Month 13-24 | Month 25-36 | Month 37-42 | ||
Effective Gross Revenue | $3,509 | $2,657,186 | $6,863,978 | $1,911,057 | |
Total Operating Expenses | $256,096 | $1,224,907 | $2,060,452 | $590,967 | |
Net Operating Income | ($252,587) | $1,432,279 | $4,803,526 | $1,320,090 | |
Project-Level Cash Flows | |||||
Month 0 | Month 1-12 | Month 13-24 | Month 25-36 | Month 37-42 | |
Net Cash Flow | ($21,714,350) | $0 | $0 | $1,481,107 | $44,909,230 |
Investor-Level Cash Flows(1) | |||||
Month 0 | Month 1-12 | Month 13-24 | Month 25-36 | Month 37-42 | |
Net Cash Flow | ($6,120,000) | $0 | $0 | $349,252 | $10,747,589 |
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | |||||
Month 0 | Month 1-12 | Month 13-24 | Month 25-36 | Month 37-42 | |
Net Cash Flow | ($50,000) | $0 | $0 | $2,910 | $89,563 |
(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 Ascension and Moriah'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 |
Development Fee | 3.5% of all costs | Ascension/Moriah | Capitalized Equity Contribution |
Brokerage Fee | 3% of land purchase price | Ascension | Land Seller |
Fund Equity Fee | 3% of Moriah equity | Moriah | Capitalized Equity Contribution |
Construction Management Fee | 4.25% of development hard costs | Ascension | Capitalized Equity Contribution |
Refinance Fee | 0.50% of loan proceeds | Ascension/Moriah | Capitalized Equity Contribution |
Disposition Fee | If Project sale price is over $70MM, 1%; if less than $70MM, $50k fee | Ascension/Moriah | Capitalized Equity Contribution |
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 (at Sponsor’s discretion) |
Recurring Fees: | |||
Type of Fee | Amount of Fee | Received By | Paid From |
Asset Management Fee | 0.75% of EGI | Moriah | Cash Flow |
Property Management Fee | 3.25% of EGI | Ascension | Cash Flow |
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 |
(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.
.
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.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to 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 to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
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.