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Multifamily
Alders at Prosper
Prosper, TX
INVESTMENT STRATEGY
Development
INVESTMENT TYPE
Equity
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Offered By Alder Development Group
23.3%* TARGET IRR 22.3%-24.3%
2.01X* TARGET EQUITY MULTIPLE
Estimated Hold Period 3 to 4 Years
Estimated First Distribution 4/2026
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 Class A Active Adult senior living community in the affluent community of Prosper, Texas.
Class A

The Project will be a true Class A development that caters to the strong demographics of the Prosper market. Large units will be combined with best-in-class amenities such as a heated swimming pool and spa, full outdoor kitchen, putting green, pickle ball courts, gym, and a pub-style game room and pool table with wine lockers, amongst many other amenities. Creating such a high-end community will allow the Project to capture the 55+ community that the Sponsorship is seeking.

Market

Prosper is a rapidly growing city situated approximately 30 miles north of Downtown Dallas. Texas Health Prosper is located across the street from the Project and offers 24/7 emergency care as well as outpatient care. Omni PGA Frisco Resort will be located just over a mile from the Project and will be home to first-class amenities and services, including two championship and a short golf course. It will also feature a full-service spa, multiple pools, dining outlets, and a retail village.

Demographics

A growing area, Prosper features 154,000 residents, which represents a robust 9.1% annual growth rate from 2010. Additionally, Prosper is forecasted to have over 192,000 residents by 2026. The area features strong financial demographics as well, with a median household income of just under $130,000. 

Property At A Glance
# of Units 188
First Units Delivered 6/1/2024
Project Stabilization 2/1/2026
# of Buildings 1 Main Building (180 units), 4 Duplex Townhomes (8 units)
Land Acquisition Price $4,861,401
Total Development Budget

$52,847,396

Investment Highlights
Return Potential - Offers an attractive target internal rate of return of 23%+ and target equity multiple of 2.01x.
Desirable Location - Prosper, Texas is an affluent, high-growth North Dallas suburb. The Project is located one mile north of the largest resort under development in the country (Omni PGA Frisco Resort).
Strong Demand - Favorable tailwinds with 10,000 Baby Boomers turning 65 every day through 2030. The Active Adult segment is an underserved niche in the senior housing continuum.
Proven Product - The Alders brand is known for its upscale finishes, gracious spaces, and fostering an active sense of community for our residents.
Experienced Team - The fifth Alders property in Texas, the fourth Alders project constructed by the General Contractor, and Sponsor intends to engage Cushman & Wakefield to market and manage the community through lease-up and stabilization.
Demonstrated Exit Opportunities - A national buyer of active adult properties purchased one of our properties in March of this year and is scheduled to purchase a second in Q4 this year.
Management
Cumulative Distributions

Alder Development Group

Alder Development Group is a Texas-based development company that focuses on active adult multifamily properties. The Sponsor’s vision is to deliver world-class developments that enhance the surrounding areas as well as the lives of the people who live and work in its developments. The Sponsor has started construction on four active adult projects, totaling 743 units. One of the four projects was recapped in 2021, a second was sold earlier this year, and a third is under contract to be sold later this year to the same national buyer (almost $100 million in sales for the two). The fourth broke ground in Q2 2021 and is due to be completed later this year. The Sponsor has approximately $200 million in development between the four projects. All projects have been Texas-based (Katy, The Woodlands, Rockwall, and Allen).

http://alderdevelopment.com/
  • Tim O'Hanlon
    Principal
  • Bart Tinsley
    Principal
Tim O'Hanlon
Principal

Mr. O’Hanlon is a seasoned construction and real estate developer with a passion for delivering exceptional residences to both families and active adults. Prior to co-founding Alder Development Group, Mr. O’Hanlon was the Chief Operating Officer of a vertically-integrated apartment development and construction company with a portfolio of 1,000+ units across seven properties and an eighth property at permitting stage. Additionally, he founded and served as President of the property management company that took over operations of the entire portfolio.

Mr. O’Hanlon began his business career as a consultant with McKinsey & Company focusing on strategy, operations, and organizational effectiveness. He was recruited by Centex Homes to work on the highest strategic priorities for the company and then led the national product development and supply chain groups. 

Mr. O'Hanlon began his professional career as a U.S. Navy fighter pilot flying the FA-18 Hornet. He accumulated 280 carrier landings and is a TOPGUN Adversary graduate. He earned an MBA from Harvard Business School and a Bachelor of Science in Mechanical Engineering from Georgia Tech, where he rowed on the crew team.

Bart Tinsley
Principal

Mr. Tinsley’s career includes over 20 years of experience in the construction industry and 12 years in the military, having served with the U.S. Marine Corps and the Army National Guard. Prior to co-founding Alder Development Group, he served as the Vice President of Operations for an Austin-based homebuilder and was tasked with developing and leading a construction operations group as part of a new market entry for the company. He was chosen for this role due to his extensive background in construction operations as well as his deep knowledge and relationships with subcontractors, land owners, and developers.

Previously, Mr. Tinsley spent 13 years with a residential construction company focused solely on the Active Adult and Independent Seniors customer segment. As Vice President of Operations, he oversaw all facets of the company’s operations including land development, sales operations, purchasing, permitting, construction, design center operations, and warranty services. He was instrumental in sourcing and negotiating land development contracts with land owners, developers, city planners, and other homebuilders to design and develop numerous senior housing communities. Under his leadership, the company was selected as one of the “Best Builders in Dallas” by D Home magazine for ten consecutive years.

Mr. Tinsley began his professional career in the Marine Corps and was selected for the elite Marine Security Guard Battalion as an Embassy Guard. He was awarded a Top Secret clearance and served as the Assistant Detachment Commander at numerous Embassy locations including Senegal, Chad, Hungary, and the Netherlands.

Track Record

Property City, State Asset Type Built Units or SF Total Project Cost Sale Price/Est. Value
Alders at Twin Creeks Allen, TX Active Adult MF 2018 243 $37,100,000 $72,900,000
Alders at Rockwall Rockwall, TX Active Adult MF 2021 144 $30,343,999 $39,000,000
Alders at Magnolia(1) The Woodlands, TX Active Adult MF 2021 184 $33,851,686 $49,700,000
Alders at Cross Creek Katy/Fulshear, TX Active Adult MF Under Construction 172 $35,397,429 $50,000,000

 

(1) LP Investors realized 38.5% IRR / 2.3X multiple (sold March 2022)

The above bios and track record were provided by Alder Development Group and have not been independently verified by RealtyMogul.

Business Plan

The business plan is to construct, lease-up, and then sell a 188-unit Class A mid-rise active adult (55+) multifamily community located in the North Dallas/Fort Worth affluent and high-growth submarket of Prosper, Texas. This will be the fifth Alders property developed by the Sponsor in Texas.

The site is located one mile north of the largest resort under development in the country (the Omni PGA Frisco Resort) and five miles north of the explosive growth of Frisco, Texas (new home to the Dallas Cowboys, as well as companies like Toyota, AT&T, Frito-Lay, Dr Pepper, and PGA of America).

There are numerous regional shopping, dining, neighborhood, and healthcare services options just minutes away. The submarket has strong fundamentals with a high median income (almost $130,000) and household growth (6.4% annually) with little to no age-restricted competition within five miles of the site. The land is under contract for $4,860,000.

Total capitalization of the Project is approximately $52,847,000 (or $281K per unit). The investment will be funded by a $33,000,000 construction loan (62% LTC), $11,490,000 in preferred equity, $7,055,000 in LP equity, and $1,302,000 in Sponsor equity. The Project's hold period is projected to be 40 months to complete construction (Jun 2024), lease-up, and stabilization of the Property (Feb 2026).

The Project is anticipated to be sold at stabilization for gross sale proceeds of $70,264,000 (or $374K per unit), representing a 5.00% cap rate. The Project appraised at a completed basis of $66,300,000 ($13,453,000 higher than the total Project cost), and a stabilized value of $70,400,000, which is slightly higher than the target exit sales price. The Sponsor sold one of its Alders properties to a national buyer of active adult properties earlier this year and is scheduled to sell a second in Q4 of this year.

The unit mix is as follows: 84 1BR/1BA units (45%), 96 2BR/2BA units (51%), and 8 duplex Town Home units (4%). The average unit size is 988 square feet, and the community will feature a large clubhouse, resort-style pool and outdoor living, fitness and aerobics facility, salon, theater, pub-style game room, arts and crafts room, and library. Unit amenities include 9-foot ceilings, kitchens with stainless steel appliances and granite countertops, walk-in closets, and covered patios or balconies. The Property will have 243 surface parking spaces including 48 attached garages, 32 detached garages, and 46 carports.

Development Costs

  $ Amount Per Unit/SF
Land Acquisition Cost(1) $4,896,669 $26,046
     
Hard Costs    
Site Work $2,747,650 $14,615
Construction $27,152,134 $144,426
General Conditions $1,470,921 $7,824
General Contractor's Fee & Overhead $1,794,523 $9,545
Contingency $2,485,061 $13,218
FF&E $1,080,000 $5,745
Total Hard Costs $36,730,288 $195,374
     
Soft Costs    
Municipal Permits & Fees $1,094,193 $5,820
Architectural, Engineering & Survey $907,495 $4,827
Taxes & Insurance $1,030,715 $5,483
Marketing, Sales & Leasing Costs $350,000 $1,862
Legal & Due Diligence $119,035 $633
Other Soft Costs $335,905 $1,787
Total Softs Costs $3,837,343 $20,411
     
Financing Costs    
Interest Reserve $3,118,500 $16,588
Operating Carry $912,881 $4,856
Financing Costs $1,515,200 $8,060
Total Financing Costs $5,546,581 $29,503
     
Development Fee $1,836,514 $9,769
     
Grand Total $52,847,396 $281,103

 

(1) Land Acquisition Cost = Land Acquisition Price + Recording Costs + Title Policy

Property
Property Details

Alders at Prosper (the "Project") will be a Class A active adult development consisting of 188 one- and two-bedroom units built around tremendous community amenities. The Project will cater to the affluent demographics of the Prosper area and be able to draw upon the region's growing population and numerous neighborhood restaurants, shopping, and hotels.

Unit Mix

Unit Type # of Units Avg SF/Unit $ / Unit $ / SF % of Total
1x1 84 814 $1,767 $2.17 45%
2x2 104 1,129 $2,331 $2.06 55%
Total/Averages 188 988 $2,079 $2.10 100%
Comparables

Lease Comparables

  Watermere at Frisco The Chateau Presidium at Edgestone Overture Frisco The Links on PGA Parkway Averages Subject
Year Built 2017 2005 2019 2017 2021 2016  
# of Units 251 212 188 162 375 238 188
Average Unit Size 1,029 990 870 909 856 931 988
Levels 4 3 3 3 4 3 3
Distance from Subject 7.2 mi 9.5 mi 8.3 mi 9.7 mi 2.1 mi 7.4 mi 0.0 mi
Address 4220 Cotton Gin Rd, Frisco, TX 75034 5701 Virginia Pkwy, McKinney, TX 75071 5857 Legacy Dr, Frisco, TX 75034 4140 Legendary Dr, Frisco, TX 75034 15950 Paramount Way, Frisco, TX 75033   SWC of Prarie Drive & Mahard Road, Prosper, TX
               
$/Unit (1x1) $2,153 $2,396 $1,679 $1,632 $1,524 $1,877 $1,767
SF (1x1) 796 697 746 788 692 744 814
$/SF (1x1) $2.70 $3.44 $2.25 $2.07 $2.20 $2.53 $2.17
               
$/Unit (2x2) $2,646 $2,898 $2,193 $2,262 $2,356 $2,471 $2,331
SF (2x2) 1,137 1,066 1,015 1,073 1,104 1,079 1,129
$/SF (2x2) $2.33 $2.72 $2.16 $2.11 $2.13 $2.29 $2.06

 

Sales Comparables

Active Adult Sales Comps
  Overture Domain Overture Mueller  Overture Stone Oak Overture Plano Averages Subject
Date Sold Mar-22 Dec-21 Dec-21 Dec-19    
Year Built 2016 2017 2017 2016 2017  
# of Units 201 183 143 169 174 188
Average Unit Size 949 SF 943 SF 1004 SF 1016 SF 978 SF 988 SF
Sale Price $70,350,000 $61,000,000 $44,200,000 $50,300,000 $56,462,500 $52,847,396
$/Unit $350,000 $333,333 $309,091 $297,633 $322,514 $281,103
$/SF $368.80 $353.50 $307.90 $292.90 $330.80 $284.40
Cap Rate 2.00% 3.47% 4.06% N/A 3.18% N/A
Building Size 50,000 SF 204,510 SF 294,616 SF 262,423 SF 202,887 SF 185,818 SF
Distance from Downtown  10.5 mi 4.4 mi 15.8 mi 21.6 mi 13.1 mi 38.6 mi
Address 3100 Kramer Ln, Austin, TX 78758 4818 Berkman Dr, Austin, TX 78723 18610 Tuscany Stone, San Antonio, TX 78258 500 Coit Rd, Plano, TX 75075   SWC of Prarie Drive & Mahard Road, Prosper, TX
             
Multifamily Sales Comps
  Luxia Preston  Axis 110 301 Flower Mound The Reserve at Stonebridge Ranch Averages Subject
Date Sold Dec-21 Apr-22 Dec-21 Dec-21    
Year Built 2021 2017 2021 2002 2015  
# of Units 212 351 350 301 304 188
Average Unit Size 915 SF 897 SF 918 SF 1282 SF 1003 SF 988 SF
Sale Price $73,000,000 $111,000,000 $114,000,000 $95,300,000 $98,325,000 $52,847,396
$/Unit $344,340 $316,239 $325,714 $316,611 $325,726 $281,103
$/SF $376.30 $352.60 $354.80 $247.00 $332.70 $284.40
Building Size 200,000 SF 553,752 SF 550,000 SF 386,950 SF 422,676 SF 185,818 SF
Distance from Downtown 24.6 mi 17.4 mi 24.0 mi 35.4 mi 25.4 mi 38.6 mi
Address 4950 Broadway Dr., Plano, TX 75024 110 W CityLine Dr, Richardson, TX 75082 301 Silveron Blvd, Flower Mound, TX 75028 2305 Custer Rd, McKinney, TX 75070   SWC of Prarie Drive & Mahard Road, Prosper, TX
Location

Market Overview

Located within the Dallas Fort Worth Metroplex (DFW), one of the most desirable and fastest-growing metro areas in the nation with a population exceeding 7.5 million residents and projected to exceed 10 million residents by 2030. DFW ranked third in employment growth over the past year, having added 650,000 jobs over the past 5 years, and is home to over 1,500 corporate headquarters including 25 Fortune 500 companies.

Submarket Overview

Alders at Prosper will be located in Prosper, Texas, a rapidly growing affluent city situated approximately 30 miles north of Downtown Dallas. The 10-acre development site is part of a large master-planned community known as the Villages of Prosper, which will include nearly 200 single-family homes and 150,000 square feet of retail space. The site is within a two-minute drive of The Gates of Prosper, an 800-acre mixed-use development that recently completed 550,000 square feet of retail and commercial space with an additional phase of 250,000 retail and commercial space currently underway. Texas Health Prosper is located across the street from the site and offers 24/7 emergency care as well as outpatient care, laboratory services, physical therapy, and advanced imagery.

Just a mile south of the site is the Omni PGA Frisco Resort which is the largest resort currently in development in the country and will be the preeminent home for golf, offering first-class amenities and services that will set the bar for golf resorts throughout the U.S. This unprecedented development will become a leading destination for golf enthusiasts providing an unparalleled experience for advanced players, new players, families, and business travelers alike. In addition to two Championship Golf Courses, the resort will include an expansive retail and entertainment district featuring 12 dining outlets, shopping, an outdoor concert stage, Lounge by Top Golf, a destination spa, and three resort pools.

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $33,000,000 $175,532
Sponsor Equity(1) $1,302,069 $6,926
LP Investor Equity $7,055,000 $37,527
Preferred Equity $11,490,327 $61,119
Total Sources of Funds $52,847,396 $281,103
     
Uses of Funds $ Amount $/Unit
Land Acquisition Cost(2) $4,896,669 $26,046
Hard Costs $34,245,228 $182,155
Hard Costs Contingency $2,485,061 $13,218
Soft Costs $3,837,343 $20,411
Interest Reserve $3,118,500 $16,588
Operating Carry $912,881 $4,856
Financing Costs(3) $1,515,200 $8,060
Development Fee $1,836,514 $9,769
Total Uses of Funds $52,847,396 $281,103

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

(2) Land Acquisition Cost = Land Acquisition Price + Recording Costs + Title Policy

(3) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Prosperity Bank
  • Term: 3 years I/O + 25-year amortization
  • LTC: 62.4%
  • Estimated Proceeds: $33,000,000
  • Interest Type: Fixed
  • Annual Interest Rate: 5.25%
  • Interest-Only Period: 36 months

Permanent Loan Period

  • Interest Type: Floating
  • Annual Interest Rate: WSJ Prime + 50bps with Floor Rate of 4.75%
  • Amortization: 25 years
  • Prepayment Terms: Prepayment fee waived
  • Extension Requirements: Construction loan converts to Permanent loan following the interest-only period
  • 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. 

Distributions

Alder Development Group intends to make distributions as follows:

100% to the Preferred Equity Member until:

  1. Up to the total of accrued and unpaid preferred return of 13.50% or a 1.40X multiple (whichever is greater)
  2. Return of invested capital and exit fees.

Then to Common Equity members:

  1. Pari passu, all operating cash flows to a 10.0% IRR
  2. 75% / 25% (75% to Investors / 25% to Promote/Carried Interest) of excess cash flow to a 14.0% IRR;
  3. 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow to a 21.0% IRR;
  4. 45% / 55% (45% to Investors / 55% to Promote/Carried Interest) of excess cash flow to a 25.0% IRR;
  5. 15% / 85% (15% to Investors / 85% to Promote/Carried Interest) of excess cash flow thereafter.

Alder Development 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 be made when the Property is sold with a target exit date of February 2026. Distributions are at the discretion of Alder Development Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Alder Development Group will receive a promoted/carried interest as indicated above.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4
Effective Gross Revenue   $0 $497,589 $3,248,688 $5,423,465
Total Operating Expenses   $0 ($1,101,520) ($1,862,744) ($2,005,161)
Net Operating Income   $0 ($603,931) $1,385,944 $3,418,304
           
Preferred Equity-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($11,490,327) $0 $0 $177,151 $17,894,456
           
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($8,357,069) $0 $0 $0 $18,815,860
           
LP Investor-Level Cash Flows(1)(2)
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($7,055,000) $0 $0 $0 $14,189,829
           
LP Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)(2)
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($50,000) $0 $0 $0 $100,566

(1) Calculation based on forward 12 month NOI of $3,507,228 after stabilization in month 40

(2) 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 Alder Development Group's materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Developer Fee 5.0% of Hard Costs(2) Alder Development Group Upfront Capitalization Capitalized upfront but paid during the first 19 months of construction
Technology Solution Licensing Fee(3) 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 1.5% of Equity Invested Alder Development Group Cash Flow Monthly
Administration Solution Licensing Fee(3) 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 Quarterly

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

(2) Hard Costs + Hard Costs contingency + FF&E

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

.

Documents
Offering Documentation

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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