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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.
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.
A growing area, the 5-mile Primary Market Area (PMA) features 154,000 residents, which represents a robust 9.1% annual growth rate from 2010. Additionally, the Prosper PMA 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.
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 stabilized at 98% occupancy. The fourth broke ground in Q2 2021 and is due to deliver the first units 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'HanlonPrincipal -
Bart TinsleyPrincipal
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.
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.
| Property | City, State | Asset Type | Built | Units or SF | Total Project Cost | Sale Price/Est. Value |
| Alders at Twin Creeks(1) | 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(2) | 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) Operated as Larkspur at Twin Creeks
(2) LP Investors realized 38.5% IRR / 2.3X multiple (sold March 2022)
(3) The Alders Principals have over 40 years of combined residential construction experience. Prior to forming Alder Development Group, the Principals of Alder Development Group collectively built over 750 homes with a value in excess of $250 million.
The above bios and track record were provided by Alder Development Group and have not been independently verified by RealtyMogul.
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 (July 2024), lease-up, and stabilization of the Property (March 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 $66,230,000 ($13,383,000 higher than the total Project cost), and a stabilized value of $70,300,000, which is slightly higher than the target exit sales price. The Sponsor sold one of its Alders properties earlier 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 | |
| Land Acquisition Costs | $4,861,401 | $25,859 |
| 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 | $371,174 | $1,974 |
| Total Softs Costs | $3,872,611 | $20,599 |
| 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 |
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% |
Lease Comparables
| Watermere at Frisco | The Chateau | Presidium at Edgestone | Overture Frisco | The Links on PGA Parkway | Averages | Subject | |
| Property Type | Independent Living | Independent Living | Active Adult | Active Adult | Multifamily | ||
| 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 | $1,780 | $1,845 | $1,524 | $1,940 | $1,767 |
| SF (1x1) | 796 | 697 | 746 | 788 | 692 | 744 | 814 |
| $/SF (1x1) | $2.70 | $3.44 | $2.39 | $2.34 | $2.20 | $2.61 | $2.17 |
| $/Unit (2x2) | $2,646 | $2,898 | $2,277 | $2,241 | $2,356 | $2,484 | $2,331 |
| SF (2x2) | 1,137 | 1,066 | 1,015 | 1,073 | 1,104 | 1,079 | 1,129 |
| $/SF (2x2) | $2.33 | $2.72 | $2.24 | $2.09 | $2.13 | $2.30 | $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 | 1,004 SF | 1,016 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(1) | 50,000 SF | 204,510 SF | 294,616 SF | 262,423 SF | 202,887 SF | 235,817 SF |
| 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 | 1,282 SF | 1,003 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(1) | 200,000 SF | 553,752 SF | 550,000 SF | 386,950 SF | 422,676 SF | 235,817 SF |
| Distance from Subject | 12.7 mi | 24.6 mi | 28.5 mi | 8.6 mi | 18.6 mi | 0.0 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 | |
(1) Gross Square Footage
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.
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 Costs | $4,861,401 | $25,859 |
| Hard Costs | $34,245,228 | $182,155 |
| Hard Costs Contingency | $2,485,061 | $13,218 |
| Soft Costs | $3,872,611 | $20,599 |
| Interest Reserve | $3,118,500 | $16,588 |
| Operating Carry | $912,881 | $4,856 |
| Financing Costs(2) | $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) 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: 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.
Alder Development Group intends to make distributions of distributable cash flow as follows:
100% to the Preferred Equity Member until:
- Up to the total of accrued and unpaid preferred return of 14.50% or a 1.50X multiple (whichever is greater)
- Return of invested capital and exit fees.
Then to Common Equity members:
- Pari passu, all operating cash flows to a 10.0% IRR
- 75% / 25% (75% to Investors / 25% to Promote/Carried Interest) of excess cash flow to a 14.0% IRR;
- 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow to a 23.0% IRR;
- 45% / 55% (45% to Investors / 55% to Promote/Carried Interest) of excess cash flow to a 25.0% IRR;
- 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 March 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 | $174,987 | $18,509,996 |
| Project-Level Cash Flows | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Net Cash Flow | ($8,357,069) | $0 | $0 | $0 | $18,200,320 |
| LP Investor-Level Cash Flows(1) | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Net Cash Flow | ($7,055,000) | $0 | $0 | $0 | $14,175,075 |
| LP Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Net Cash Flow | ($50,000) | $0 | $0 | $0 | $100,433 |
(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 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 LP Equity | 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.
.
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.