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Residential
Cottages at Foley Farms
Foley, AL
INVESTMENT STRATEGY
Development
INVESTMENT TYPE
Equity
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Offered By Ritmo Properties and M4 Development
19.2%* TARGET IRR 18.2%-20.2%
8.4%* TARGET AVG CASH ON CASH
3.56X* TARGET EQUITY MULTIPLE
Estimated Hold Period 10 Years
Estimated First Distribution 7/2025
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
Ground-up development of a Build-for-Rent ("BFR") community featuring 321 cottages and numerous on-site amenities in Alabama's fastest-growing county.
Market

The Project is located in Baldwin County, which is the fastest-growing county in the State of Alabama. Since 2010, the population in Baldwin County and the City of Foley have grown by 25.8% and 46.7%, respectively. This impressive growth is driven by thousands of new high-paying jobs. Over this period, the new housing supply has been insufficient, which has resulted in low vacancy rates and strong rent growth. Effective rents have increased 18.2% over the prior five-year period, a trend that is projected to continue.

Potential Efficiencies

Following on the success of the Single Family Rental ("SFR") market, Cottages at Foley Farms incorporates all of the best aspects of SFR with the operational efficiency of professionally managed, highly amenitized apartment communities. The Property will offer a more affordable option for the many people being priced out of home ownership due to the increase in interest rates and home prices. This highly efficient product has been termed "Build-for-Rent" or "BFR." This Project marks the third prototype developed by the M4_Ritmo partnership. 

Cash Flow

Based on a 10-year hold period, the Sponsors estimate returns of more than 19% IRR and 3.5x EMX, generating strong cash flow and considerable long-term value creation for investors. 

Property At A Glance
# of Units 321
First Units Delivered 2/29/2024
Project Stabilization 4/30/2025
Target Stabilized Year Cash on Cash 8.4% (Stabilized Year 4)
Land Acquisition Price $3,562,500
Total Development Budget

$68,014,874

Investment Highlights
Build-For-Rent ("BFR") development opportunity delivering long-term stable cash flow. Based on a 10-year hold period, the Sponsors estimate returns of more than 19% IRR to investors and a stabilized 7.4% return on cost for the whole Project.
Cottages at Foley Farms incorporates all of the best aspects of single-family rental with the operational efficiency of professionally managed, highly amenitized apartment communities. The M4_Ritmo Sponsors have designed a differentiated product to meet the needs of the growing demographic of renters looking for the best aspects of apartment living in a planned community setting while enjoying their own single-family, detached home.
While Baldwin County has experienced outstanding population and employment growth over the past ten years, the supply of new housing has been insufficient. The lack of quality rental housing has resulted in an increase in effective rents of 18.2% over the prior five-year period and an average vacancy rate of 3.5% for 2021.
Access to Mobile Bay, two interstate systems, and five Class 1 railways has made Baldwin County an ideal location for firms to relocate their operations. As a result, the county has added an astounding 20,000 new jobs since 2011, a 26% increase. Major firms include Airbus, Collins Aerospace, Austel, and Novelis.
In addition to its access to Mobile Bay, Pensacola, FL, and the diverse employment options in Baldwin County, Foley is less than 12 miles from Florida’s Gulf Coast, benefitting from numerous tourism amenities. This access results in a diversified renter base to include both working professionals and an aging, downsizer demographic.
The Project benefits from outstanding Sponsorship with over 50 years and $3.0 billion worth of combined multifamily and homebuilding development experience. The Principals have worked for some of the nation's leading development firms. The Project marks the Sponsor's third Cottages development in Alabama.
Management
Cumulative Distributions

Ritmo Properties and M4 Development

The Cottages joint venture is sponsored by Ritmo Properties and M4 Development. Ritmo Properties is owned and operated by Steve and Christy Strazzella, who have collectively been in the residential and commercial real estate markets since 1989 performing their own development, design, and general contracting services on single-family homes, townhouses, and multifamily apartment buildings. Steve has managed more than $2 billion in multifamily real estate construction and development projects for some of the largest firms in the country.

M4 Development was formed in July 2010. Its Principals, Jonathan Meyers and Joseph Meyers, have in-depth experience in developing numerous product types within various real estate disciplines. Within the last five years, M4 has developed or has under construction 2 multi-family projects, 3 single-family subdivisions, and 3 build-for-rent communities. The thorough analysis of projects utilizing their extensive knowledge and background in development and construction has translated into the success of the projects they have pursued. 

https://cottageapts.com/our-team
  • Steve Strazzella
    President
  • Jonathan Meyers
    Principal
  • Joseph Meyers
    Principal
Steve Strazzella
President

Since 1989, Steve Strazzella has managed more than $2 Billion worth of development projects. Most recently he was President and Partner of Bozzuto Development Company and Bozzuto Homes Inc, where he spent nearly 20 years managing the development of over 15,000 apartments and homes in the major metropolitan markets on the U.S. East Coast. Prior to that, he served in various executive positions at the Clark Companies and Roy F. Weston, Inc. Steve holds a Bachelor of Civil Engineering degree from the Catholic University of America.

Some example projects are listed below:

Monroe Street Market
600+ unit apartment & retail mixed-use project
$150M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)

Aperture Apartments at Wiehle Avenue
420+ unit apartment & retail mixed-use project
$120M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)

The Abby Apartments at Quincy Transit Center
600+ unit apartment & retail mixed-use project
$300M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)

 

 

Jonathan Meyers
Principal

Jonathan Meyers began his real estate career in the mid 1990’s working for a large commercial contractor on retail projects in Salt Lake Valley. He gained experience there as a Superintendent/Project Manager until he moved to a large interior fit-out contractor in Dallas, Texas where he oversaw and completed the largest national distribution center for AT&T, among other projects at Pacific Builders. In the late 1990’s he began working for one of the largest privately held contractors, Clark Construction, in Bethesda, MD, as a Project Manager. In 2000, Mr. Meyers began working with ARC, one of the top ten developers in the Washington, DC area. In that capacity, he worked as an Owner’s Rep and then VP of Development until his departure in 2005, when he left to start WPC in Bethesda, MD.  While at ARC and WPC, Mr. Meyers's development experience includes the oversight, acquisition, entitlement, and development of over 6,000,000 SF of commercial, multifamily, and single-family development valued at over $1.4 billion.

He left to start M4 Development in 2009 with his partner and brother, Joseph Meyers. Since that time, he has partnered to oversee the growth of M4 Development from a startup to now having developed multiple single-family subdivisions, apartment communities, and Build-For-Rent communities.

Joseph Meyers
Principal

Joseph Meyers has extensive experience in multifamily, SFR, and single-family development. As a partner, Joe has managed all field operations for M4 Development for the past 9 years.

Track Record

Projects completed or under construction as part of The Cottages Partnership.

Property City, State Asset Type Acquisition Date Units or SF Purchase Price Sale Price/Est. Value
Cottages at Oak Grove Dairy Huntsville, AL BFR 9/27/2020 318 $54,000,000 $120,000,000
Cottages at Dothan (Phase 1) Dothan, AL BFR 1/1/2017 120 $15,700,000 $32,200,000

 

M4 Development Experience

Project Descriptions Year Location SF Type Use Project Value
Orchard Park 2013-2016 Dothan, AL 29 Lots Subdivision Residential $5,365,000
Mayberry Subdivision 2017-2019 New Brockton, AL 70 Lots Subdivision Residential $14,250,000
Highland Cove 2017-Present Dothan, AL 53 Lots Subdivision Residential $17,225,000
Camellia Apartments 2018-Present Enterprise, AL 176 Units Multifamily Commercial/Residential $28,000,000
Cottages Bentonville, AR 2020-Present Bentonville, AL 350 Units Build for Rent (BFR) Commercial/Residential $94,000,000
Cottages Dothan Phase 2 & 3 2019-Present Dothan, AL 90 Units Build for Rent (BFR) Commercial/Residential $17,200,000
Cottages Dothan Phase 5 & 6 2020-Present Dothan, AL 121 Units Build for Rent (BFR) Commercial/Residential $21,237,000
Cottages at Magnolia Place 2020-Present Foley, AL 300 Units Build for Rent (BFR) Commercial/Residential $81,421,000
Total     1,189     $278,698,000

 

See Sponsorship section for a detailed list of experiences.

The above bios and track record were provided by Ritmo Properties and M4 Development and have not been independently verified by RealtyMogul.

Business Plan

Ritmo Properties and M4 Development (the "Sponsors") are proud to present an opportunity to invest in the ground-up development of Cottages at Foley Farms (the "Project"), a master-planned single-family rental community located in the City of Foley in Baldwin County, Alabama - the fastest growing county in the state.

The Project will consist of 321 single-story cottages with parking, storage, pool, and clubhouse amenities. The development will utilize a phased construction that will take an estimated 29 months to complete. The Project will consist of the construction of 321 cottages, 64 garages, 30 storage units, infrastructure, a clubhouse, a pool/grilling area, and a pet park. 

The Project has been financed with a floating-rate construction loan provided by Regions Bank. The terms of the loan are approximately 75% loan-to-cost with a term of 4 years plus a 1-year extension option at a rate of 250 bps over SOFR (0.50% SOFR floor). Total Project costs are anticipated to be roughly $68 million (or $212,000 per cottage).

Current underwriting assumes a phased delivery and a lease-up pace of 25 cottages per month with a refinance in Year 5 based on a 75% LTV, 1.20x DSCR assuming a 5.50% interest rate, and a 5.50% exit cap rate. Disposition is underwritten in Year 10 at a 5.50% exit cap rate. 

Upon stabilization, the Sponsors will determine whether to extend, modify or refinance the construction loan. The partnership plans to hold the asset for an estimated 7-10 years, however, the hold strategy is subject to change based on market conditions. 

Property
Property Details

Cottages at Foley Farms will be a Class A development consisting of 321 single-family rental cottages with amenities featuring on-site storage, a centrally located clubhouse and pool, a business center, a pet park, and a fitness center. The Project will cater to the area's growing workforce and retirement population while fostering a community-focused environment through its numerous amenities and organized community events.

Unit Mix

Unit Type # of Units Avg SF/Unit $ / Unit $ / SF % of Total
A - 1x1 108 781 $1,375 $1.76 34%
B - 2x2 103 1162 $1,735 $1.49 32%
C - 2x2 110 1177 $1,750 $1.49 34%
Total/Averages 321 1039 $1,619 $1.56 100%
Comparables

Lease Comparables

  Colonial Grand at Traditions Gulf Shores Sevilla Place Apartments The Reserve of Foley Magnolia Landing Apartments Subject
Year Built 2017/2021 2019 2018 2020 2024
# of Units 324 120 360 264 321
Average Unit Size 993 SF 1,260 SF 1,115 SF 961 SF 1,039 SF
Occupancy 96% 98% 98% 100%  
Distance from Subject 4.0 mi 1.2 mi 1.9 mi 1.4 mi  
           
$/Unit (1x1) $1,373 $1,168 $1,350 $936 $1,375
SF (1x1) 816 951 945 842 781
$/SF (1x1) 1.68 1.23 1.43 1.11 1.76
           
$/Unit (2x2) $1,588 $1,727 $1,614 $1,198 $1,735 - $1,750
SF (2x2) 1,075 1,234 1,220 1,074 1,162 - 1,177
$/SF (2x2) 1.48 1.40 1.32 1.12 1.48 - 1.49
           
Address 6061 Colonial Pkwy, Gulf Shores, AL 36542 3151 Boulevard de Sevilla, Foley, AL 36535 21450 County Rd 12 S, Foley, AL 36535 9167 Hickory St S south, Foley, AL 36535 County Rd 20 S & S McKenzie St, Foley, AL 36535

Sales Comparables

  Palladian at Daphne The Village at Hickory Meridian at the Port Gulf Stream Sandy Shores Village Averages Subject
Date Sold 12/1/2021 10/1/2021 10/1/2021 9/1/2021 7/1/2021   2032
Year Built 2017 2021 2019 2021 2016 2019 2024
# of Units 120 120 267 64 108   321
Average Unit Size 1794 SF 1600 SF 853 SF 1440 SF 1218 SF 1381 SF 1619 SF
Sale Price $31,000,000 $43,200,000 $69,500,000 $21,100,000 $23,150,000 $37,590,000 $116,973,695
$/Unit $258,333 $360,000 $260,300 $329,688 $214,352   $364,404
$/SF $144 $225 $305 $229 $176 $216 $225
Cap Rate 4.37% 4.30% 3.92% 4.24% 4.50% 4.27% 5.50%
Distance from Subject 27.4 mi 2.6 mi 44.4 mi 9.4 mi   21.0 mi  
Address 27821 State Highway 181, Daphne, AL 36526 904 Shagbark Rd, Foley, AL 36535 300 N Water St, Mobile, AL 36602 24802 Gulf Stream Cir, Orange Beach, AL 36561 25624 W Perdido Ave, Orange Beach, AL 36561   County Rd 20 S & S McKenzie St, Foley, AL 36535
Location

Market Overview

Over the last decade, demographic shifts have resulted in major population increases across the sunbelt, and Alabama has been one of its greatest beneficiaries. Baldwin County, along the coast of Alabama, has been the state’s greatest success story. The U.S. Census Bureau reported a population increase of 25.8% between 2010 and 2020 for the county; that increase equates to a net migration of 45,301 residents, making it the fastest growing county in the state and the top 3% among all counties in the U.S.  

The population growth story in Baldwin County is primarily a result of the impressive employment growth in this business-friendly community. Baldwin County has added 20,123 new jobs since 2011, equating to an increase of 26%. Although population growth has been strong, it hasn’t been able to keep pace with job growth. The unemployment rate in Baldwin County was reported at 2.7% in July 2022, compared with the national average of 3.5% for the same month. 

During a period of excessive growth in Baldwin County, there have been insufficient deliveries of new rental housing in the area. From 2011 to 2017, only 700 new multi-family units were delivered. During the same period, over 12,000 new jobs were added in the county. Delivery of new rental housing began to pick up in the latter half of the decade, averaging 300 units per year between 2016 and 2020. However, data shows that this new housing supply was insufficient, as Baldwin County absorbed an average of 294 units per year during the same period. 2021 saw the first above-average unit deliveries in years, reaching 360 units. However, during the same period, vacancy rates dropped to an average of 3.5%, pointing to pent-up demand for more housing. 

Lastly, effective rents have increased 18.2% over the prior five-year period.  

Submarket Overview

Foley, where the Project is located, has been one of the key drivers of Baldwin County’s impressive growth, having experienced a population increase of 46.7% since 2010. While COVID has impacted many economies, Baldwin County only experienced a minor retraction and has since expanded. Following a short-lived reduction in its employed population, Baldwin County has since expanded its employment by 3.2% from pre-pandemic levels. Baldwin County’s population growth, and specifically Foley, has included a high concentration of families. Value Tech Realty Services, Inc., a third-party market study provider, projects Foley to grow its household population by 11.9% over the next five years. This is important as families tend to prefer to have a yard, more space, and community activities, which the Project will provide. Furthermore, many of the families moving to Baldwin County are either uninterested or unable to buy homes, but still prefer the lifestyle of single-family living. Cottages at Foley Farms will deliver single-family living at a more affordable price point without the headache of home ownership. 

Sources provided by Baldwin County Economic Development Alliance, Federal Reserve Economic Data, Economic Research Division, Federal Reserve Bank of St. Louis. Custom ordered market study for Cottages at Foley Farms provided by ValueTech Realty Services, Inc.

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $50,828,632 $158,345
GP Investor Equity $171,863 $535
LP Investor Equity(1) $17,014,379 $53,004
Total Sources of Funds $68,014,874 $211,884
     
Uses of Funds $ Amount $/Unit
Residential Hard Costs $30,593,216 $95,306
Amenity Hard Costs $2,555,877 $7,962
Infrastructure $17,923,300 $55,836
Soft Costs $5,577,222 $17,375
Owner's Contingencies $3,100,000 $9,657
Developers Fee $2,408,756 $7,504
Operating Deficit & Interest Reserve $2,039,860 $6,355
Loan Fee $254,143 $792
Land $3,562,500 $11,098
Total Uses of Funds(1) $68,014,874 $211,884

(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 RM Technologies LLC’s proprietary Platform and receive Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. An estimate of this fee, in addition to estimated due diligence, travel, legal and other fees associated with the formation of the company and the related securities filings, in the amount of $200,000 is included in the Sources and Uses above; this estimated fee has also been factored into the calculation of projected economic returns. Please thoroughly review the Sponsor’s relevant offering documents and operating agreement(s) for additional detail concerning these fees. RM Technologies LLC’s receipt of fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

Debt Assumptions

The expected terms of the debt financing are as follows:

Construction Loan Permanent Debt Assumptions
Lender: Regions Bank Refinance Date: 8/31/2027
Term: 4+1 Lender: TBD
LTC: 74.7% Term: TBD
Estimated Proceeds: $50,828,632 Estimated Proceeds: $66,020,000
Interest Type: Floating Interest Type: Fixed
Spread above SOFR: 2.5%(1) Annual Interest Rate: 5.5%
Interest-Only Period: 42 months Interest-Only Period: TBD
Amortization: 30 years Amortization: 30 years
Prepayment Terms: N/A  
Extension Requirements: 1-year option  
Term Sheet: Executed  

(1) 0.50% SOFR floor

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

Ritmo Properties & M4 Development intend to make distributions as follows:

Cash Flow from Operations

  1. Prior to Stabilization of the Property (defined as 90% occupied for 90 consecutive days) and before Co-Investors are being paid current on their preferred return, the Cash Flow will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
  2. Thereafter, the Cash Flow will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").

Cash Flow from Capital Transactions

  1. Prior to return of capital, Capital Transactions will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
  2. Thereafter, the Capital Transactions will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").

Ritmo Properties & M4 Development 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 May 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Ritmo Properties & M4 Development, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Ritmo Properties & M4 Development will receive a promoted/carried interest as indicated above.

 

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Effective Gross Revenue   $0 $644,314 $5,903,099 $7,251,789 $7,472,359 $7,699,638 $7,933,830 $8,175,145 $8,423,800 $8,680,018
Total Operating Expenses   $0 ($993,054) ($1,810,934) ($2,049,224) ($2,108,624) ($2,169,831) ($2,232,899) ($2,297,886) ($2,364,849) ($2,433,849)
Net Operating Income   $0 ($348,740) $4,092,164 $5,202,565 $5,363,735 $5,529,807 $5,700,931 $5,877,259 $6,058,950 $6,246,168
                       
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($17,186,242) $0 $0 $4,656,730 $1,961,882 $18,363,258 $956,556 $1,127,679 $1,304,007 $1,485,699 $55,849,516
                       
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($3,200,000) $0 $0 $742,746 $212,145 $3,081,130 $88,063 $109,184 $130,947 $153,372 $6,863,227
                       
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($50,000) $0 $0 $11,605 $3,315 $48,143 $1,376 $1,706 $2,046 $2,396 $107,238

(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.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Ritmo Properties & M4 Development'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 Notes
Development Fee $2,408,756 Ritmo Properties & M4 Development Upfront Capitalization 3.5% of the Total Project Cost
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 Notes
Asset Management Fee $75,000/year Ritmo Properties & M4 Development Cash Flow Will be paid monthly after construction completion
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.

.

Disclaimers/FAQs
Disclaimers

*The average cash-on-cash calculation that results in an 8.4% average was achieved by using the stabilized cash-on-cash number upon reaching the projected stabilized occupancy of 95%. This number does not reflect any refinance proceeds, which would result in a higher average cash-on-cash calculation.

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.

Target Cash on Cash derived from annualized stabilized year cash flow net of fees.

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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