The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
U.S. Realty / JG Managment / Zenda
In the acquisition of the Prune Tree Shopping Center, Realty Mogul will be partnering with established real estate players in the market, specifically, JG Management Inc, US Realty Partners and Zenda Properties. The property was put under contract by U.S. Realty Partners & JG Management Inc. All four companies, U.S. Realty Partners, JG Management, Zenda Properties and Realty Mogul will play an active role in the asset management of the property. While U.S. Realty Partners and JG Management will oversee the day-to-day operations, Realty Mogul and Zenda Properties will actively participate as Co-Owners. The Co-Owners will enter into an Operating Agreement pursuant to which U.S. Realty Partners & JG Management Inc. will act as the local Managing Partner handling all day-to-day operations and will be required to report regularly to Zenda Properties and Realty Mogul. All four entities will perform full asset management function and will be required to consent to all major decisions including the decision to sell or refinance the property.
U.S. Realty Partners ("USRP") is a real estate investment company specializing in the acquisition, asset management, development and redevelopment of high quality retail properties located in strategic metropolitan areas of the western United States.
USRP focuses on anchored retail properties in markets with strong demographics, high barriers to entry, and achieve competitive risk adjusted returns for our investors and partners. Their team takes pride in our vast shopping center experience, extensive market knowledge, disciplined underwriting and excellent history of efficient execution.
JG Management ("JGM") is a Los Angeles-based commercial real estate and asset management firm established in 1983 with a focus on investing in shopping centers, medical and general office buildings, flex office, hotels and single-user buildings nationwide. JGM is a closely held private company that provides high quality services in the areas of finance, leasing, property management, accounting and construction management. Their strong track record results from many years of experience, sound management decisions and long-term relationships with major financial institutions, brokers, tenants, vendors and investors. They continue to maintain our professional relationships through regular involvement in the International Council of Shopping Centers (ICSC).
JG Management's current portfolio consists of four million square feet of commercial real estate that spans across seven states, including over 660 hotel rooms.
Zenda Properties ("Zenda"), based in Montreal, Quebec, was formed by Gerald Levy in 1992. Gerald Levy is also a lawyer, licensed to practice in both the province of Quebec and the state of Arizona. Over the last twenty years, Zenda has earned a successful track record in all facets of commercial office, retail and industrial real estate development and management. Mr. Levy has over 30 years of experience as owner, manager and advisor, both in Canada and the United States.
Zenda was formed to invest in and manage real estate in its own name, with partners and with investors. They have developed extensive expertise in establishing and managing co-investment relationships.
Zenda has the experience and acumen required to deal with the cyclical nature of the real estate market. Whether the issue is a potential investment or finding a solution to an existing real estate problem, Zenda has the necessary hands-on expertise and tools to take the right course of action. The experience gained as owners, developers, investors, lawyers, managers and consultants gives Zenda a unique perspective and a broader viewpoint of real estate issues and opportunities.
http://usrpartners.com/-
Jay Kerner - CEO of U.S. Realty Partners -
Greg Greenstein - President of JG Management
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Gerald Levy - President of Zenda Properties -
William Levy - Vice President of Zenda Properties
Jay Kerner is the CEO of U.S. Realty Partners, a regional commercial real estate operating company and consulting firm focused on high quality properties in California and Arizona. He has over twenty seven years of experience in the acquisition, operation, development, leasing and management of retail, multi-family, office and mixed use properties.
Mr. Kerner was formerly Regional Director of Capital and Counties, U.S.A., a privately held real estate investment trust with 2.5 million square feet of retail, office, multi-family and mixed use properties organized as a subsidiary of Capital Shopping Centre Group, London (a publicly traded FTSE 100 company; CSCG.L). In addition to his duties overseeing acquisitions, dispositions, financing, and operations, he was a key executive involved in the sale of the company to Equity One (NYSE; EQY) in 2011 for more than $600 million. Prior to that, he was Senior Director of Acquisitions for Federal Realty Investment Trust, a public REIT with more than 19 million square feet of high quality mixed use and retail properties in the best markets in the U.S. (NYSE: FRT). Mr. Kerner was also President of Kerner Management and Investments, a regional shopping center operator and developer, for more than 10 years. Over his career, he has been personally involved in more than $1 billion in commercial real estate projects.
Mr. Kerner is a graduate of UCLA with a degree in Business & Economics. He is a member of the International Council of Shopping Centers and has served as a speaker at past events. In addition, his is a licensed California Real Estate Broker and General Contractor. Mr. Kerner is also the author of Chasing Yield: an Individual Investor’s Guide to Passive Commercial Real Estate Investments.
At A Glance
| Investment Strategy: | Buy and Hold |
| Hold Period: | 3-5 years |
| Total Project Budget: | $16,875,000 |
| Property Type: | Retail |
| Gross Leaseable Area: | 133,600 square feet |
| Distributions to Realty Mogul 9, LLC | 8% preferred return with excess cash flow and appreciation shared 70/30 |
Investment Details
U.S. Realty Partners, JG Management and Zenda ("USRP", "JGM" and "Zenda") plan to acquire and reposition Prune Tree Shopping Center, a 133,600 square feet, Safeway, CVS, and McDonald’s anchored center located at the gateway of the Monterey Peninsula at the northeast corner of Vera Canyon Road and US-101 in Prunedale, California. The investment represents a unique opportunity to acquire the dominant shopping center in the trade area anchored by Safeway with 2012 sales of nearly $21 million or $585 psf and CVS with 2012 sales of $6.9 million or $319 psf on its floor space. The property features significant value-add potential with in-place occupancy at 75% and an active Safeway proposal to lease a currently vacant pad on-site for a Safeway gas station.
Realty Mogul investors are being afforded the opportunity to invest in Realty Mogul 9, LLC. Realty Mogul 9, LLC, will be making an investment in another LLC which will hold title to the Prune Tree Shopping Center at 17533-17643 Vierra Canyon Road in Prunedale, CA 93907.
The managers of USRP and JGM will handle all aspects of the investment including acquiring the property, completing a strategic repositioning and lease-up program, and ultimately selling the asset. They will be responsible for negotiating lease renewals for Safeway and CVS, working to add a fuel pad for Safeway, and leasing up the remaining vacant space with a dedicated local leasing agent and focused property management team. USRP, JGM, Zenda and Realty Mogul plan on holding the property for 3-5 years before exiting the investment, but the hold period may be longer or shorter. Realty Mogul investors have the opportunity to participate as equity stakeholders and earn a share of the cash-flow and appreciation. Investors can expect to receive quarterly updates and quarterly distributions, with the first distribution expected in month 4 after the purchase of the property.
Prune Tree Shopping Center represents a unique opportunity to invest in the dominant shopping center in the trade area anchored by two investment grade tenants with historically strong sales. The property has existing, in-place cash flow while also offering investors value-add potential through a concentrated repositioning and lease-up program.
Investment Highlights
- Significant Upside with Improving Market Fundamentals: Prune Tree Shopping Center provides the opportunity to substantially increase cash flow through the lease-up of vacant space in the strengthening Monterey retail market. The current sellers have been inefficiently managing the property as it is the smallest property in their portfolio, gets little attention, and they do not have local leasing and management. Under new ownership, Prune Tree Shopping Center is well-positioned to capture the recovery in the Monterey retail market. Currently 75% leased, Prune Tree Shopping Center has below market occupancy which is averaging 93.8% (6.2% vacancy) for shopping centers across the region. The Monterey County shopping center submarket has had a robust recovery, absorbing over 123,000 square feet and vacancy tightening from 8% at the end of the third quarter of 2012 to 6.2% at the end of the second quarter of 2013, a 23% improvement in under a year. In addition, rental rates have increased 12% year-over-year from $1.29 NNN/square feet/month at the end of the second quarter of 2012 to $1.44 NNN/square feet/month at the end of the second quarter of 2013.
- Supermarket and Pharmacy Anchors with Historically Strong Sales: The Safeway and CVS anchored center provides a recession resistant “daily needs” draw to the property for the benefit of all tenants. Safeway had 2012 sales of nearly $21 million ($585 psf), an increase of nearly $660,000 from the already robust 2011 sales of $20.2 million ($560 psf). The strong sales at this Safeway equates to an exceptional 2.1% occupancy cost based on 2012 sales. CVS had 2012 sales of $6.9 million ($319 psf on retail space or $218 psf of total gross leasable area), an increase of nearly $300,000 from 2011 sales of $6.5 million ($306 psf on retail space or $209 psf on total gross leasable area). In addition, 10,000 square feet of the 31,500 sf CVS gross leasable area is used as the regional distribution center that serves their regional stores within Salinas and the Monterey peninsula. On the 2012 sales revenue, this CVS has a healthy occupancy cost of 3.5% on retail space or 5.1% on total gross leasable area.
- Major National Retailers with Investment Grade Tenancy: Prune Tree Shopping Center is currently 75% leased to a diverse tenant base, including two investment grade anchor tenants - Safeway (S&P: BBB) occupying 27% of gross leasable area and CVS Pharmacy (S&P: BBB+) occupying 24% of gross leasable area. Also among the tenant roster are several well-known national name brands including: Starbucks (S&P: A-), Subway, Verizon Wireless, Autozone (S&P: BBB), and McDonald’s (Ground Lease S&P: A). Starbucks has been a tenant at Prune Tree Center for over 10 years. It has indicated that it is interested in moving from its current in-line location to a pad location with a drive thru within the center if such an opportunity becomes available. In addition, Both Subway and McDonald’s have been tenants at Prune Tree Center since 1989.
- Existing Tenant Anchor Expansion: Safeway has indicated interest in leasing a vacant pad site on the property for the construction of a Safeway gas station. This would be structured as a long term ground lease (20+ years), with Safeway responsible for obtaining approvals and entitlements, as well as the costs of construction for the station. With this proposal along with the strong sales and low occupancy cost at this location, the sponsor is confident that Safeway will execute on their 5-year extension option over the initial lease term expiration at the end of May 2014.
- Unparalleled Location and Access: Prune Tree Shopping Center is strategically located along Highway-101 at the northeast corner of Vierra Canyon Road at the interchange of Highway-101 and Highway-156. These two thoroughfares feature strong daily traffic volume, with over 83,700 cars per day along Highway-101 and 28,000 cars per day along Highway-156. In addition to this, the property features a pylon sign visible from the freeway and 675 feet of frontage along Highway-101, ensuring tenants receive maximum exposure. A 4-way signalized interchange also allows passing traffic easy access to the property.
- Dominant Grocery-Anchored Shopping Center in Trade Area: The Safeway at Prune Tree Shopping Center is the only competitive grocery in the trade area, with the closest national grocers located six miles to the south in Salinas. The only competitive grocer in the immediate trade area is Super Max Discount Foods, which is not a direct competitor with Safeway.
- Strong Sponsorship: U.S. Realty Partners, JG Management, Zenda and Realty Mogul will be co-sponsoring this transaction. U.S. Realty Partners is a regional real estate investment company specializing in the acquisition, asset management, development and redevelopment of high quality retail properties located in strategic metropolitan areas of the western United States. Jay Kerner is the CEO of U.S. Realty Partners and a co-sponsor in this investment. Mr. Kerner has over 29 years of experience in the acquisition, operation, development, leasing and management of retail, multi-family, office and mixed-use properties. Over his career, he has been personally involved in more than $1 billion in commercial real estate projects. JG Management is a Los Angeles-based commercial real estate and asset management firm established in 1983 with a focus on investing in shopping centers, medical and general office buildings, flex office, hotels and single-user buildings nationwide. JG Management's current portfolio consists of four million square feet of commercial real estate that spans across seven states. Zenda is a Montreal, Quebec based real estate investment firm founded in 1992 by Gerald Levy. The firm has over 30 years of experience in real estate investing, including experience gained as owners, developers, investors, lawyers, managers and consultants.
Risks and Risk Mitigation*
- Anchor Tenant Renewal: A risk associated with this transaction is in renewing the existing anchor tenant leases. The leases for Safeway and CVS both expire in May 2014, and the inability to renew these leases would cause a significant decrease in occupancy. This risk is mitigated by the fact that both tenants have very strong sales and low operating cost ratios. Furthermore, in on-going dialogue between the sponsors and anchor tenants, Safeway and CVS have indicated strong interest that they intend to renew their lease. Safeway has also submitted a proposal to lease additional space for a fuel pad (gas station) at the vacant drive-through pad building, which will be a topic of discussion in the on-going renewal negotiation.
- Lease-up of Vacant Space: Given that the retail center is currently 75% leased, there is a risk that the vacant space will be difficult to lease. The low occupancy can be mainly attributed to the fact that the previous owner did not have local leasing and management. USRP and JGM will partially mitigate this risk by utilizing a dedicated local leasing agent and a focused property management team.
- Nearby Construction: Caltrans and the Transportation Agency of Monterey County ("TAMC") have proposed a two-phase infrastructure improvement project in the area around Highway-156 and US-101 in Prunedale proximate to the retail center. The purpose of this project is to improve traffic flow on both a local and regional basis. There are two ongoing proposals under consideration - one proposal is to widen Highway-156 to a four lane divided highway and add two new interchanges; the other proposal is to improve the interchange between Highway-156 and US-101 just southwest of the retail center and add a frontage road. The proposed highway construction could potentially increase traffic congestion in the area and limit the accessibility of the center to customers. Furthermore, the McDonalds pad building could be impacted and forced to relocate to make room for the potential highway widening work. The earliest proposed date to start construction is not until 2016, more than two years into the investment period and after the majority of the leasing and re-positioning work has been completed. Furthermore, there is currently no funding for the $250 million project, and it will likely be delayed past the 2016 start date due to lack of funding.
- Environmental Risk: The property site was formerly rural land that was potentially used as a poultry farm until the shopping center was constructed. After the retail center was completed, a dry cleaning facility and small wastewater treatment plant were also documented uses on the site. This environmental risk is partially mitigated by the successful completion of a Phase I Environmental Site Assessment ("ESA") and a Phase II ESA, both which identified no evidence of recognized environmental conditions. In addition, the Monterey County Department of Health issued a "No Further Action" letter, which further mitigates risk of any additional environmental damage.
- Fuel Station: The Valero fuel station that is located adjacent to and below Prune Tree Shopping Center abandoned their old septic system and installed a new drip dispersal system. Valero recently sent two letters claiming that irrigation and storm water runoff from Prune Tree Shopping Center was saturating their system and causing it to work improperly. Engineering consultants have reviewed the matter and concluded that Valero's claims are unfounded and that their issues are unrelated to Prune Tree Shopping Center.
*The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Investor Document Package for a discussion of additional risks.
| Address: | 17533-17643 Vierra Canyon Road Prunedale, California 93907 |
| Year Built: | 1989 |
| Current Occupancy: | 75.0% |
| Net Rentable Area: | 133,600 square feet |
| Parking: | 570 spaces or approximately 4.3 spaces per 1,000 square feet of leaseable area |
| Street Frontage: | 675 feet of frontage along Highway-101 and 900 feet along Vierra Canyon Road |
| Daily Traffic Count | Highway-101 at Vierra Canyon Road: 83,700 Highway-156 at Highway-101; 28,000 Total: 111,700 |
| TENANT NAME | SQUARE FOOTAGE CURRENTLY LEASED |
|---|---|
| Safeway | 35,722 |
| CVS Pharmacy | 31,472 |
| Normas Restaurant | 4,488 |
| McDonald's | 4,313 |
| Auto Zone | 3,381 |
| Coldwell Banker America | 3,032 |
| J.V. Liquor & Deli | 2,668 |
| Panda Garden | 2,127 |
| Starbucks | 1,425 |
| Verizon Wireless | 1,340 |
| Diggity's | 1,290 |
| Cottage & Castle Real | 1,279 |
| Master Cleaners | 1,226 |
| Sunshine Donuts | 1,206 |
| Subway | 1,072 |
| All About Me Tan | 1,039 |
| The Income Statement | 1,026 |
| All The Right Steps | 1,009 |
| Nails Art | 1,005 |
Prune Tree Shopping Center was built in 1989 and is the dominant grocery-anchored shopping center in the area. The Safeway at Prune Tree Shopping Center is the only competitive grocery in the trade area, with the closest national grocers located 6 miles to the south in Salinas. The only competitive grocer in the immediate trade area is Super Max Discount Foods, which is not a direct competitor with Safeway.
The property features a pylon sign visible from the freeway and 675 feet of frontage along Highway-101 and a 4-way signalized interchange for easy access to the property.
The retail buildings are woodframed structures with load-bearing, steel columns which support the upper floors and roofs. The exterior walls are finished with painted wood siding, and portions of the exterior walls are accented with stone masonry or concrete masonry units. The primary roofs are classified as flat roofs. The roofs are finished with an elastomeric, roofing membrane and insulated with fiberglass batts. The secondary roofs are classified as a sloped roofs and are finished with asphalt composition shingles over asphalt-saturated paper. These sections of roof are not insulated and have sheet metal flashing elements.
Prune Tree Shopping Center is strategically located at the interchange at Highway-101 (83,700 cars/day) and Highway-156 (28,000 cars/day), the main arterial in and out of the Monterey Peninsula. The property enjoys excellent visibility and accessibility from Highway-101 as well as from Vierra Canyon Road.
Monterey County Overview
Covering 46 square miles, Prunedale is approximately 18 miles north of the Monterey Peninsula, 35 miles south of Santa Cruz, and 10 miles north of Salinas. Monterey County is situated on the California Pacific coastline almost at its midpoint, 106 miles south of San Francisco and approximately 241 miles north of Los Angeles with a population of 431,892. The county encompasses 3,322 square miles (or 2,127,359 acres), with almost 100 miles of coastline — the largest amount of coastline in California. Monterey County is bounded by Santa Cruz County to the north, San Benito County to the east, San Luis Obispo County to the south, while on the west lies the Pacific Ocean. The beautiful coastline, including Big Sur, California Highway and 17-mile drive on the Monterey Peninsula has made the county world famous.
The county has a population of approximately 430,000, with a majority of the populous congregated in the northern part of the county along the Monterey Peninsula and in Salinas. The unemployment rate stood at 9.8% as of Q4 2012 and the average household income is $77,903, 11% above the national average of $69,637. Monterey County has an extremely robust leisure and hospitality industry, and is home to some of the world’s most famous golf courses including Pebble Beach and Cypress Point. In addition, the county is home to Big Sur, a popular tourist destination where the Santa Lucia Mountains rise abruptly from the Pacific Ocean. The region stretches south from Monterey Peninsula 90 miles, and is one of the nation’s most spectacular coastlines.
- Leisure and hospitality, which includes the arts, recreation, entertainment, accommodations and food service, brings in approximately $1.8 billion in annual revenue for Monterey County and accounts for approximately 12% of the county’s total workforce.
- Agriculture is the largest industry in the county and accounts for approximately 27% of all employment and totals $3.8 billion in annual county revenue.
Monterey County has recently experienced a significant decline in the county’s unemployment rate. From Q4 2010 to Q4 2012, unemployment fell significantly by 32%, indicating a major, positive shift in this economy. As of Q4 2012, the unemployment rate stood at 9.8%.
Monterey County Retail Overview
The Monterey County retail market is comprised of approximately 18 million square feet and encompasses the submarkets of Carmel/Pebble Beach, Marina/Seaside, Monterey, North Monterey County, Pacific Grove, Salinas, Soledad, and South Monterey County.
The Monterey County retail market is experiencing significant growth as vacancy rates have dropped and average asking rates have risen. As of Q4 2012, shopping center vacancy within Monterey County was at 6.1%, down from 6.7% in Q3 2012, reflecting 38,456 square feet of positive net absorption over that period. The current average asking rate stands at $16.79 (NNN) per square foot, per year, which is a 7.0% increase over the county’s average rate of $15.65 (NNN) per square foot, per year as of Q4 2011.
- As of Q4 2012, the North County region of Monterey County had the lowest vacancy of 4.6% compared with the South County at 5.9% and the Central County at 13.8%. In addition, the North County’s average asking rate was $19.32 (NNN) per square foot, per year as of Q4 2012, which was 13% above the average for the entire county.
- Prune Tree Center is located in the North Monterey County retail market, which is made up of approximately 3 million square feet of space. North Monterey makes up approximately 17% of the entire retail market in Monterey County.
- North Monterey county has seen a recent rise in retail rental rates with a 20% increase occurring between Q2 2011 and Q4 2012. As of Q4 2012, the average asking rent was $19.10 (NNN) per square foot, per year.
Located in North Monterey County, Prune Tree Center is well positioned to take advantage of the growth in the economy and the associated increase in retail rental rates.
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.
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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.
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