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Open for investment
Multifamily
Park Place
Atlanta MSA, GA
INVESTMENT STRATEGY
Development
INVESTMENT TYPE
Equity
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Offered By Highlands Residential
19.8%* TARGET IRR 18.8%-20.8%
1.69X* TARGET EQUITY MULTIPLE
Estimated Hold Period 3 Years
Estimated First Distribution 11/2025
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Project Summary
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Overview
Ground-up development of a 148-unit multifamily active adult living community in suburban Atlanta by a repeat Sponsor on the RealtyMogul Platform.
Market

This development will target one of the fastest-growing housing segments. As households age, there is a demographic wave of people becoming empty nesters and entering the 55+ population. An increasing number of baby boomers and an increasing number of renters in this demographic equates to a secular shift in demand for age-restricted rental housing.

Partner

The Sponsor is an experienced developer of Active Lifestyle, senior living communities which cater to residents 55 and older. The Principals have $777 million in their current portfolio (Aggregate TDC of $561mm) with an average stabilized occupancy of 97%.

Location

Limited new multi-family in the market. Convenient access to local amenities including Downtown Lawrenceville, Rhodes Jordan Park, retail, restaurants, grocery, etc.

Property at a glance
# of Units 148
# of Buildings 3
Parking Ratio 1.18
Construction Start Date November 2022
Target Return on Cost 6.2%
Acquisition Price

$2,277,000

Investment Highlights
Demographics: This development will target one of the fastest-growing housing segments. As households age, there is a demographic wave of people becoming empty nesters and entering the 55+ population. An increasing number of baby boomers and an increasing number of renters in this demographic equates to a secular shift in demand for age-restricted rental housing.
Local Amenities: Aging cohorts value the immediate proximity (9-minute drive) to Northside Gwinnett Hospital, one of Atlanta’s top-rated hospitals. Additionally, residents will have direct access to walking trails, tennis courts, swimming facilities, and sporting fields at Rhodes Jordan Park.
Advantages versus Traditional Senior Living: Compared to nearby independent living facilities, the Property will sidestep the “amenities arms race” that inflates the cost of living for residents elsewhere. Park Place by Highlands will provide Senior Living without the expense of medical, meals, or maids. Residents will save more than $20,000 per year compared to alternatives. This allows the community to attract a broader and deeper market which will be a slightly younger demographic: empty nesters still “on the go” who are not dependent on the community for all their social and entertainment needs.
Building Amenities: Highlands Residential has designed the building so that the exterior and interior finishes are architecturally complementary to the surrounding area. The community will have multiple amenities, inclusive of a landscaped courtyard, a personal training studio, a library, a game room, and a shared common space to host large gatherings and community get-togethers.
Location: Limited new multi-family in Downtown Lawrenceville. Convenient access to local amenities including Downtown Lawrenceville, Rhodes Jordan Park, retail, restaurants, grocery, etc.
Sponsor Track Record: The Sponsor is an experienced developer of Active Lifestyle, senior living communities that cater to residents 55 and older. The Sponsor is a repeat sponsor on the RealtyMogul Platform. The Principals have $777 million in their current portfolio (Aggregate TDC of $561mm) with an average stabilized occupancy of 97%.
Management
Cumulative Distributions

Highlands Residential

Highlands Residential (the "Sponsor") was founded by Dave Loeffel, who has over 15 years of experience in development. The Sponsor represents a partnership between Dave Loeffel and Robert Lachapelle - Vice Chairman at CBRE, Tim Schrager - CEO and founder of Perennial Properties, and Aaron Goldman - President of Perennial Properties.

The Sponsor is an experienced developer of Active Lifestyle, senior living communities which cater to residents 55 and older. The Principals have $777 million in their current portfolio (Aggregate TDC of $561mm) with an average stabilized occupancy of 97%. Of this, they have $76 million in communities under development and show a realized equity multiple of 2.78x in sold development assets thus far. 

https://www.highlandsresidential.com
  • Dave Loeffel
    Founder/CEO
  • Aaron Goldman
    GP Investor and Strategic Advisor, Development
  • Tim Schrager
    GP Investor and Strategic Advisor, Operations
  • Robert LaChapelle
    GP Investor and Strategic Advisor, Finance
Dave Loeffel
Founder/CEO

Dave Loeffel is the Founder and CEO of Highlands Residential, a development company committed to providing real estate where people make amazing memories, thrive in the present, and dream of the future. Dave holds an MBA from Emory’s Goizeuta Business School and a BS in Industrial Engineering from Georgia Institute of Technology and is a CFA charterholder. After nearly two decades in real-estate development with over 22 communities (16 as an owner and partner) for Walton Communities, Dave knows what drives successful design. His experience has driven him to provide a product that caters to residents 55 and older. Dave wants to help define this asset class to provide communities to the empty nester clientele.

Aaron Goldman
GP Investor and Strategic Advisor, Development

Aaron Goldman is the President and co-owner of Perennial Properties, Inc., a development, investment, and management firm focused on multi-family rental housing accompanied by retail establishments. Raised in Milwaukee, Aaron is a graduate of the University of Wisconsin Real Estate Program and served on the Wisconsin Real Estate Alumni Association Board of Trustees. Perennial’s existing portfolio is centered in Atlanta’s intown neighborhoods, including West Midtown, Virginia Highland, Morningside, Piedmont Heights, Emory, Buckhead, Inman Park, and the Old Fourth Ward. Aaron has executed successful subdivision developments, condominium conversions, and office/retail developments, comprising nearly 200 single-family home sites, 5,000 multiple dwelling units, and 200,000 square feet of commercial space.

Tim Schrager
GP Investor and Strategic Advisor, Operations

Tim Schrager founded Perennial Properties, Inc. in 1988. This Atlanta-based real estate development and property management company started as a one-man shop, where he learned the business from the ground up, building and renovating multi-family projects in Atlanta’s intown neighborhoods. In three decades, Perennial has been responsible for the development of numerous multi-family communities as mixed-use developments in Georgia and in Florida. Tim received a B.S. degree in Real Estate Finance from the University of Southern California.

He is currently involved in several Atlanta community organizations, including the Atlanta Contemporary Art Center (Past President – Board of Trustees); the Jewish Federation of Greater Atlanta (Annual Campaign Major Gift Fundraiser); Atlanta Apartment Association (Past Chairman – Board of Directors, and 2009/2010/2012 Co-Chair of the AAA’s Annual Food-A-Thon benefiting the Atlanta Community Food Bank).

Robert LaChapelle
GP Investor and Strategic Advisor, Finance

Robert LaChapelle is the Vice Chairman for CBRE's Debt and Structured Finance Group in Atlanta, Georgia. His investment in Highlands Residential is in his personal capacity and not on behalf of CBRE. Robert holds a BS in business management from Tulane University.

Robert has over 33 years of experience within the multi-family real estate industry. Robert was awarded the Coldwell Colbert Circle Award, recognizing the top three percent of commissioned salespeople worldwide in 2002, 2003, 2005, and 2008 through 2016, and has been among the top 25 producers within the entire CBRE platform.

Robert LaChapelle's investment in and association with Highlands Residential is entirely personal and has no connection with CBRE, Inc. or Robert LaChapelle's employment with CBRE.

Track Record

Property City, State Asset Type Acq Date Units or SF Purchase Price Current Occupancy
Myrtle Street Apartments, LLC Atlanta, GA Value Add - Multifamily 11/17/1997 32 $553,000 95%
Highland View Apartments Atlanta, GA New Construction - Multi 4/15/1998 110 $6,382,900 95%
Monroe Place Apartments Atlanta, GA New Construction - Multi 9/30/1998 241 $16,926,034 96%
Highland Walk Apartments Atlanta, GA New Construction - Multi 1/7/2002 350 + 6,000 SF retail $29,500,000 94%
N. Highland Steel Atlanta, GA New Construction - Multi 5/2/2005 239 + 30,000 SF retail $34,000,000 92%
The Telephone Factory Lofts Atlanta, GA Value Add - Multifamily 10/31/2013 65 $9,750,000 97%
The Brady Apartments Atlanta, GA New Construction - Multi 11/1/2013 230 $33,000,000 90%
The Arya on Peachtree Atlanta, GA New Construction - Multi/comm/retail 6/13/2014 282 + 17,000 commercial $91,000,000 In Lease-Up
755 North Apartments Atlanta, GA New Construction - Multi 9/1/2014 227 $28,750,000 97%
Ella at East Lake Atlanta, GA New Construction - Multi 12/19/2019 236 + 7,700 commercial $43,300,000 In Lease-Up
The Legacy at Walton Lakes (55+) Atlanta, GA New Construction - Multi 8/21/2008 125 $15,176,000 98%
The Legacy at Walton Village Ph 2 (55+) Marietta, GA New Construction - Multi 2/19/2010 78 $9,900,000 98%
The Legacy at Walton Oaks Ph 1 (55+) Augusta, GA New Construction - Multi 9/30/2010 75 $9,560,000 98%
The Legacy at Walton Oaks Ph 2 (55+) Augusta, GA New Construction - Multi 11/12/2014 62 $9,940,000 98%
Walton Oaks Ph 1 Augusta, GA New Construction - Multi 11/14/2011 75 $10,323,000 98%
Walton Oaks Ph 2 Augusta, GA New Construction - Multi 11/12/2013 106 $16,741,000 98%
The Legacy at Walton Overlook (55+) Acworth, GA New Construction - Multi 6/16/2011 108 $13,258,000 98%
Walton Renaissance on Henderson (62+) Marietta, GA Sub-Rehab - Multifamily 9/1/2012 150 $20,200,000 98%
Legacy at Walton Heights (55+) Marietta, GA New Construction - Multi 8/8/2012 100 $13,535,000 98%
The Legacy at Walton Mill (55+) Hiram, GA New Construction - Multi 12/18/2013 105 $13,962,000 98%
The Legacy at Walton Park (55+) Acworth, GA New Construction - Multi 8/29/2014 100 $15,870,000 98%
Walton Ridge Austell, GA New Construction - Multi 8/31/2016 71 $14,000,000 98%
The Legacy at Walton Green (55+) Augusta, GA New Construction - Multi 11/15/2016 80 $14,405,000 98%
Walton Summit Phase 1 Gainesville, GA New Construction - Multi 12/8/2016 84 $14,514,000 98%
Legacy at Walton Summit (55+) Gainesville, GA New Construction - Multi 10/10/2017 90 $14,816,000 98%
Hardy Springs by Highlands Residential Dallas, GA New Construction - Multi 2/16/2020 149 $28,798,000 In Lease-Up
The Chateau by Highlands Residential Braselton, GA New Construction - Multi 8/3/2021 152 $33,122,222 Under Construction
Total         $561,282,156 97%

The above bios and track record were provided by Highlands Residential and have not been independently verified by RealtyMogul.

Business Plan

Park Place by Highlands will be a top-quality, tangible asset that fills an unprecedented need for active adult housing. The asset, which will be delivered in 2024, is just 30 miles northeast of downtown Atlanta, in downtown Lawrenceville, the county seat of the 2nd largest county in Georgia. Park Place by Highlands will provide Senior Living without the expense of medical, meals, or maids. Residents will save more than $20,000 per year compared to alternatives. This allows the community to attract a broader and deeper market which will be a slightly younger demographic: empty nesters still “on the go” who are not dependent on the community for all their social and entertainment needs.

Park Place offers a unique living experience for younger Seniors to join a retirement community without the high cost of a full nursing staff and meal plan. The Sponsor will begin construction in November 2022 and complete building in May 2024 - for a total construction timeline of 20 months. Units will be delivered in phases, and preleasing will begin in November 2023 as units become available. Total lease-up time is expected to be 20 months at a rate of 7.5 units per month - seeing 95% stabilization by August 2025. The asset will be sold or recapitalized upon stabilization at the end of year 3 for $59,428,985 ($401,547 per unit) at a projected reversion cap rate of 4.75%. 

Estimated Schedule:
November 2022 - Construction Begins
November 2023 - First Units Delivered Begins/Pre-Leasing 
January 2024 - Move-in begins
June 2024 - Construction Completes
August 2025 - Asset Stabilization
October 2025 - Exit

Development Budget

    $ Amount Per Unit/SF
Land Cost   $2,277,000 $15,385
       
Soft Costs      
Professional Services   $1,416,930 $9,574
Legal and Organizational   $1,099,150 $7,427
Capitalized Marketing Costs   $400,000 $2,703
Points on Construction Loan $147,270 $995
Impact Fees   $640,000 $4,324
FF&E & Owner Costs   $596,620 $4,031
Capitalized Taxes During Construction $346,373 $2,340
Total Soft Costs   $4,646,343 $31,394
       
Other Costs      
Developer Fee   $1,670,000 $11,284
Construction Period Interest $1,416,691 $9,572
Initial Operating Deficit   $821,782 $5,553
Total Other Costs   $3,908,473 $26,409
       
Hard Costs      
Total Construction Hard Costs $31,900,000 $215,541
Contingency   $1,500,000 $10,135
Total Hard Costs   $33,400,000 $225,676
       
Grand Total   $44,231,816 $298,864
Property
Property Details

The Project will be designed and constructed as three four-story buildings totaling 148 residential units tailored to an active adult clientele. Highlands Residential has designed the building so that the exterior and interior finishes are architecturally complementary to the surrounding area. The community will have multiple amenities, inclusive of landscaped courtyard, a personal training studio, a library, a game room, and a shared common space to host large gatherings and community get-togethers.

Each unit will range in size from 820 square feet to 1,480 square feet. Each unit will have 1 or 2 bedrooms, 1 or 2 baths, and a private, covered balcony, sunroom, or extended bedroom. The amenity package, interconnected living, and social community will make for an easy transition for homeowners seeking a lock-and-leave lifestyle and offer a substantial upgrade for people moving from a traditional, non-age-exclusive apartment. More importantly, it will provide each resident with a community full of potential friendships and incredible memories for years to come.

Unit Mix

Unit Type # of Units Avg SF/Unit Avg Rent (Stabilized) Avg rent per SF
1x1 (A1) 45 819 $1,975 $2.41
1x1 (A1a) 2 862 $2,025 $2.35
1x1 (A2) 38 860 $2,060 $2.40
1x1 (A2a) 5 913 $2,110 $2.31
2x2 (B0) 4 958 $2,250 $2.35
2x2 (B1) 39 1,125 $2,550 $2.27
2x2 (B1a) 5 1,243 $2,850 $2.29
2x2 (B1a2) 2 1,181 $2,600 $2.20
2x2 (B2) 8 1,481 $3,200 $2.16
Total/Averages 148 973 $2,265 $2.33
Comparables

Lease Comparables

Active Adult Comparables

  Overture Powers Ferry Evoq Town Flats Everleigh Duluth Everleigh Halcyon Village Outlook Gwinnett Comp Averages Park Place
Submarket Cumberland Johns Creek Duluth Forsyth County Buford   Lawrenceville
Year Built 2021 2019 2021 2020 2022 2021 2024
Units 171 140 164 160 180 163 148
Average Rental Rate $2,565 $2,456 $2,295 $2,516 $2,202 $2,402 $2,265
Average SF 950 1,107 932 961 854 954 972
Average $/SF $2.70 $2.22 $2.46 $2.62 $2.58 $2.53 $2.33
# Units (1x1) 88 74 91 108 112 95 90
$ (1x1) $2,114 $2,152 $2,190 $2,250 $1,845 $2,102 $2,020
SF (1x1) 703 957 823 848 736 807 842
$/SF (1x1) $3.01 $2.25 $2.66 $2.65 $2.51 $2.61 $2.40
# Units (2x2) 83 66 73 52 68 68 58
$ (2x2) $3,093 $2,799 $2,933 $3,069 $2,613 $2,903 $2,647
SF (2x2) 1,240 1,278 1,197 1,195 1,047 1,193 1,175
$/SF (2x2) $2.49 $2.19 $2.45 $2.57 $2.50 $2.38 $2.25
Distance to Subject 32.2 miles 15.0 miles 11.1 miles 20.5 miles 7.4 miles 17.2 miles  

Conventional Multifamily Comparables

  Populus at Southlawn The Fieldhouse District at Duluth Artesia Big Creek Heights at Exchange Comp Averages Park Place
Submarket Lawrenceville Lawrenceville Duluth Alpharetta Buford   Lawrenceville
Year Built 2019 2021 2017 2019 2021 2019 2024
Units 329 252 359 269 384 302 148
Average Rental Rate $1,995 $1,932 $1,968 $2,185 $2,008 $2,016 $2,265
Average SF 903 944 889 1,011 974 931 972
Average $/SF   $2.21   $2.05   $2.21   $2.16   $2.06 $2.17 $2.33
# Units (1x1) 125 120 182 140 248 142 90
$ (1x1) $1,780 $1,835 $1,737 $1,984 $1,753 $1,828 $2,020
SF (1x1) 756 844 775 803 798 792 842
$/SF (1x1) $2.35 $2.18 $2.24 $2.47 $2.20 $2.31 $2.40
# Units (2x2) 147 99 70 129 136 111 58
$ (2x2) $2,177 $2,147 $2,278 $2,405 $2,341 $2,252 $2,647
SF (2x2) 1,029 1,179 1,042 1,237 1,233 1,125 1,175
$/SF (2x2) $2.12 $1.82 $2.19 $1.94 $1.90 $2.01 $2.25
Distance to Subject 0.7 miles 6.6 miles 10.5 miles 20.8 miles 7.3 miles 9.7 miles  

 

Sales Comparables

  Cadence Sugar Hill Hudson Northridge Symphony at Suwanee Creek Adley at City Springs Artesia Big Creek Total/Averages Park Place
Date Mar '22 Dec '21 Nov '21 Jul '21 May '21   Sep '22
Submarket Sugar Hill/Gwinnett Atlanta - Sandy Springs - Marietta Suwanee/Gwinnett Atlanta - Sandy Springs - Alpharetta Atlanta - Sandy Springs - Alpharetta   Lawrenceville
Year Built 2022 2017 2021 2020 2020   2022
SF 290,732 222,640 194,800 267,432 271,453 249,411 149,682
Units 294 220 200 291 269 255 148
Average SF 989 1,012 974 919 1,009 979 972
Sale Price $107,373,750 $67,350,000 $65,500,000 $102,940,000 $82,045,000 $85,041,750 $59,428,985
$/Unit $365,217 $306,136 $327,500 $353,746 $305,000 $333,759 $401,547
$/SF $369 $303 $336 $385 $302 $341 $397
Cap Rate 3.96% 4.17% 4.69% 3.75% 4.00% 4.06% 4.75%
Distance from Subject 12.8 miles 30.1 miles 11.6 miles 26.1 miles 21.6 miles 20.4 miles  
Location

Market Overview

The Subject Property is located within the Atlanta-Sandy Springs-Roswell metropolitan statistical area (MSA), which encompasses 29 counties. Metro Atlanta remains one of the fastest-growing areas in the country, with over 1.8 million people added from 2000 to 2021. Metro Atlanta is home to 14 Fortune 500 companies. Atlanta has also become known as the technology hub of the South with various tech companies relocating to Midtown in recent years. Atlanta is the logistics hub of the Southeast due to its transportation network, international airport, railroad system, and proximity to the Port of Savannah. Hartsfield-Jackson Atlanta International Airport has sustained its position as the world’s busiest passenger airport since 1998, with facilities that comprise the largest passenger terminal complex in the world.

Low costs of doing business, availability of tech talent, and high affordability relative to other major urban areas remain key to Atlanta’s ability to attract new businesses. The Atlanta area is expected to continue to see strong in-migration and population growth over the next decade. The Atlanta area has a diverse economy and will continue to be the cultural center of the southeastern U.S. The metro area’s transportation and distribution infrastructure, economic diversity, and current development steam will keep Atlanta on track to outperform the nation over the long term. 

Submarket Overview

Per CoStar, the vacancy rate in the Lawrenceville Submarket has increased over the past four quarters due to new deliveries in the market, and at 7.0%, is slightly above the long-term average. 1,400 units have been delivered over the past 12 months and 4,500 units are underway, which will substantially expand the existing inventory. Rents have increased by an impressive 5.4% over the past year, which significantly exceeds the average annual growth of 2.5% over the past decade. 

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Construction Loan $29,454,092 $199,014
GP Investor Equity(1) $1,477,772 $9,985
LP Investor Equity $13,299,952 $89,864
Total Sources of Funds $44,231,816 $298,864
     
Uses of Funds $ Amount $/Unit
Land Purchase Price $2,277,000 $15,385
Technology Solution Licensing Fee $105,000 $709
Developer Fee $1,670,000 $11,284
Hard Costs $33,400,000 $225,676
Construction Period Interest $1,416,691 $9,572
Soft Costs $4,541,343 $30,685
Initial Operating Deficit $821,782 $5,553
Total Uses of Funds $44,231,816 $298,864

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

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Seacoast Bank
  • Term: 42 months, interest only; 2 12-month extensions
  • LTC: 66.59%
  • Estimated Proceeds: $29,454,092
  • Interest Type: Floating
  • Spread above 1-month term SOFR: 2.50%
  • Interest-Only Period: 42 months
  • Amortization: 30 years
  • Loan Fees: 50 bps origination, legal and third party at cost
  • Operating Reserves: $200,000
  • 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

Highlands Residential intends to make distributions as follows:

Distribution of Cash Flow

  1. 100% to the Equity Investors until the Equity Investors have received all accrued but unpaid Preferred Return;
  2. 70% to the Equity Investors and 30% to the Sponsor.

Distribution upon a Capital Event

  1. 100% to the Equity Investors until the Equity Investors have received all accrued but unpaid Preferred Return;
  2. 100% to the Equity Investors until the Equity Investors have received a return of their initial Equity Investment;
  3. 70% to the Equity Investors and 30% to the Sponsor until the Equity Investors have received a 14.0% IRR;
  4. 55% to the Equity Investors and 45% to the Sponsor.

Highlands Residential intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in November 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Highlands Residential, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Highlands Residential will receive a promoted/carried interest as indicated above.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4
Effective Gross Revenue   $0 $811,542 $3,547,053 $4,623,736
Total Operating Expenses   $0 $750,751 $1,316,095 $1,536,862
Net Operating Income   $0 $60,791 $2,230,958 $3,086,874
           
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3  
Net Cash Flow ($14,777,724) $0 $0 $29,912,028  
           
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3  
Net Cash Flow ($3,000,000) $0 $0 $5,079,092  
           
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3  
Net Cash Flow ($50,000) $0 $0 $84,652  

(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 Highland Residential'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
Developer Fee 4% of Project Costs Highlands Residential Capitalized Equity Contribution
Technology Solution Licensing Fee(2) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC

Capitalization (at Sponsor’s discretion)

       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Property Management Fee 4% of EGI Perennial Properties (Sponsor Affiliate) Initially Capitalized Equity Contribution, then Distributable Cash
Asset Management Fee $48,000/year Highlands Residential Initially Capitalized Equity Contribution, then Distributable Cash
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
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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