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* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
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We have formalized processes and checklists for every private placement deal listed on the platform.
The Bronx Charter School for Children has been a staple of excellence in the Bronx community school system since being approved in 2003 and officially opening its doors in 2004. The school has consistently outperformed the district of location and state average in both ELA and Math for each subgroup. Students' scores prior to the pandemic demonstrated consistent growth, to ensure this trend post-pandemic, the school immediately began a strategic planning process to enhance the academic program which included increased staffing and instructional time in ELA and math, and improved curriculum alignment to current standards. To sustain this positive momentum, the school has put in place a rigorous recruitment plan that draws on the expertise of a dedicated team.
629 Courtlandt Avenue is located in the largely mixed-use community school district 7 in the heart of the Bronx with a population of around 1.4 million. The Bronx is an attractive area to invest in, the area is experiencing high population growth driven by affordable real estate which is attracting young families. The area has also benefitted from strong public and private commercial development and investment which has driven local employment growth, and robust public transportation infrastructure which attracts commuters. The Subject Site is also in close proximity to New York's most iconic attractions such as Yankee Stadium.
In addition to the Project located at 629 Courtlandt Ave, Barone Management is currently in active development of six other charter school projects. Additionally, including the original Jamaica schools, Barone has five active and operating schools. Based upon these twelve schools, at full enrollment, the Sponsor takes pride in helping provide quality education to over 5,700 economically and socially disadvantaged students.
Barone Management
Founded in 1999, Barone is a Real Estate Development & Construction Firm operating in the New York City Metro market. With separate but complimentary divisions dedicated to developing their own real estate holdings, they have found a unique niche in the highly competitive NYC marketplace, allowing for an impressive track record, with a prestigious list of partners and projects. A dedicated approach focused on acquiring premium real estate, coupled with a commitment to a value-add business plan rooted in the ability to construct their own projects, has yielded a solid portfolio of NYC assets in the hospitality, multifamily, office, and industrial sectors. As of mid-year 2022, they have over 2 million square feet of projects that are completed or under development.
As its primary objective, Barone seeks to achieve high-yield opportunistic rates of return for its principals and investors, as opposed to more risk-averse “core” investment opportunities. It endeavors to accomplish this by leveraging a six-stage approach to real estate development that has been curated throughout the company’s 20+ year operating history, characterized by sourcing deals, underwriting investment opportunities, pre-development activities, financing arrangements, construction oversight, and finally asset management. During each stage of the process, Barone implements a carefully refined strategy characterized by in-house expertise and a wide-ranging network of third-party relationships.
https://www.baronemanagement.com/-
Scott BaroneFounder and Principal -
John SilvianoPrincipal
Scott Barone is the Founder and Principal of Barone Management LLC. Founded in 1999, the Company was initially focused on property management and small to medium-sized fee-based construction management projects before expanding into development consulting as well. By 2005, Barone had approximately 400,000 square feet of property under its stewardship, a mix of property management and active construction. However, Mr. Barone’s earliest success arrived via a partnership with The McSam Hotel Group, in which Mr. Barone endeavored to develop a series of hotels in 2009, the first located in Manhattan’s Tribeca neighborhood at 231 Hudson Street, and the second located in downtown Brooklyn within immediate proximity to the Barclays Center at 40 Nevins Street. Both projects proved to be profitable, shifting the firm’s focus solely to developing properties for its own account with an emphasis on long-term ownership. Since that time, Mr. Barone has led the strategic vision of the Company while overseeing its expansion into various market sectors, including hospitality, commercial, industrial, and community facility from the approach of both ground-up development as well as acquisition and renovation. Most recently, in 2018, Mr. Barone recognized what he believed to be a substantial gap that existed within the educational facilities market and has led his eponymous firm’s foray into the niche charter school sector. Today Mr. Barone manages all aspects of the Company’s financial dealings and project design, with a specific focus on creative deal-structuring and management of vital relationships among industry leaders, investors, government officials, and financial institutions.
Mr. Silviano joined Barone in 2006. After establishing a reputation within the firm as an aggressive and savvy dealmaker, he was named a Principal in 2010 and helped guide the firm through a substantial growth period, characterized by higher value and more sophisticated transactions. Furthermore, the construction arm of the company began taking on larger projects than before with Mr. Silviano overseeing the development of commercial properties in Manhattan and Brooklyn, among others. In 2010, Mr. Silviano was intimately involved in all aspects of both the Hudson Square and Nevins Street hotel projects, from ongoing negotiations and transaction structuring to managing the finer points of the construction process. Since that time, he has assisted Mr. Barone in all aspects of the Company’s various development projects and helped to grow the firm to its current stature, with a focus on financial analysis, deal underwriting, and operational efficiency. In this capacity, Mr. Silviano is instrumental to the firm in managing lender relations and the monetization of the Company’s real estate holdings. Mr. Silviano also monitors the Company’s construction management division, including oversight of construction budgets, job scheduling, code compliance, and ultimate signoffs. Recently, Mr. Silviano was proudly named to the Top 40 Under 40 in Real Estate and Construction list by the City and State publication, as well as the Top 100 People in Real Estate by the Top 100 Magazine.
| Property Name | City, State | Asset Type | Role | Status | Acq Date | SF | Purchase Price | Sales Price or Estimated Value | Total Capitalization | IRR | EMx | Comment | |
| Marriot Fairfield Hotel: Central Park | Manhattan, NY | Hospitality | Co-GP | OWNED | 2013 | 82,000 | $17,500,000 | $90,800,000 | $70,000,000 | N/A | N/A | ||
| 456 Greenwich | Manhattan, NY | Hospitality | Co-GP | OWNED | 2013 | 85,000 | Ground Lease | N/A | $160,000,000 | N/A | N/A | ||
| Greenwich Street Commercial Condo | Manhattan, NY | Commercial | GP | OWNED | 2014 | 2,500 | $3,985,000 | $5,500,000 | $3,985,000 | N/A | N/A | ||
| Wyndham Hotel & Retail Complex | Queens, NY | Hospitality | GP | OWNED | 2014 | 64,556 | Ground Lease | N/A | $26,152,846 | N/A | N/A | ||
| The West | Brooklyn, NY | Hospitality | GP | OWNED | 2015 | 22,000 | Ground Lease | N/A | $17,325,000 | N/A | N/A | ||
| The Woodworks | Queens, NY | Commercial | GP | OWNED | 2015 | 86,000 | Ground Lease | N/A | $48,637,412 | N/A | N/A | ||
| Jamaica Educational Complex | Queens, NY | Community Facility | GP | OWNED | 2018 | 70,000 | $20,000,000 | N/A | $24,000,000 | N/A | N/A | ||
| OWN Charter School/ Retail Space | Queens, NY | Community Facility | GP | OWNED | 2021 | 40,000 | Ground Lease | N/A | $2,378,064 | N/A | N/A | ||
| The Donut Factory | Queens, NY | Community Facility | GP | OWNED | 2021 | 23,000 | Ground Lease | N/A | $11,800,000 | N/A | N/A | ||
| Syosset Self-Storage | Syosset, NY | Commercial | Co-GP | OWNED | 2022 | 133,000 | Ground Lease | N/A | $21,380,063 | N/A | N/A | ||
| The Renaissance Charter School | Queens, NY | Community Facility | GP | OWNED | 2022 | 67,000 | $14,300,000 | N/A | $45,532,500 | N/A | N/A | ||
| NCNW Child Development Center | Bronx, NY | Community Facility | Co-GP | OWNED | 2022 | 23,000 | Ground Lease | N/A | $785,928 | N/A | N/A | ||
| 1680 Southern Blvd. | Bronx, NY | Community Facility | Co-GP | OWNED | 2022 | 20,000 | Ground Lease | N/A | $577,030 | N/A | N/A | ||
| Bronx Charter School for Children | Bronx, NY | Community Facility | GP | OWNED | 2022 | 24,000 | Ground Lease | N/A | $9,666,514 | N/A | N/A | ||
| Elmhurst Residential Development | Bronx, NY | Multi-Family | GP | OWNED | 2022 | 140,000 | $7,700,000 | N/A | $24,517,500 | N/A | N/A | ||
| Equality Charter School | Bronx, NY | Community Facility | Co-GP | OWNED | 2022 | 63,000 | Ground Lease | N/A | $28,375,342 | N/A | N/A | ||
| Melrose Supportive Housing | Bronx, NY | Community Facility | GP | OWNED | 2022 | 85,000 | $6,250,000 | N/A | $67,000,000 | N/A | N/A | ||
| Bay Terrace Residential | Queens, NY | Mixed-Use | GP | OWNED | 2022 | 225,000 | $6,000,000 | N/A | $7,500,000 | N/A | N/A | ||
| Law and Social Justice Charter School | Bronx, NY | Community Facility | Co-GP | OWNED | 2022 | 50,000 | Ground Lease | N/A | $22,748,015 | N/A | N/A | ||
| LGA Parking | Queens, NY | Commercial | Co-GP | OWNED | 2023 | 45,000 | Ground Lease | N/A | $1,200,000 | N/A | N/A | ||
| Brooklyn Rise | Brooklyn, NY | Community Facility | Co-GP | OWNED | 2023 | 25,000 | Ground Lease | N/A | $4,000,000 | N/A | N/A | ||
| Arlo Hotel | Manhattan, NY | Hospitality | Co-GP | SOLD | 2011 | 86,000 | Ground Lease | $52,000,000 | $6,500,000 | 910.0% | 8.00x | Sponsor entered a ground lease and early on in construction they pre-sold the hotel. As such all of the equity and most of the profit was received prior to the completion of the development. | |
| Even Hotel: Downtown Brooklyn | Brooklyn, NY | Hospitality | Co-GP | SOLD | 2011 | 70,000 | $4,500,000 | $23,000,000 | $6,500,000 | 1,650.0% | 5.71x | Sponsor entered a ground lease and early on in construction they pre-sold the hotel. As such all of the equity and most of the profit was received prior to the completion of the development. | |
| Woodside Retail Complex | Queens, NY | Mixed-Use | Co-GP | SOLD | 2013 | 30,000 | $10,000,000 | $15,000,000 | $10,000,000 | 22.0% | 1.20x | ||
| Pestana Hotel: Time Square | Manhattan, NY | Hospitality | Co-GP | SOLD | 2015 | 85,000 | $22,500,000 | $31,500,000 | $22,500,000 | 24.0% | 4.23x | ||
| 111- East 24th Street | Manhattan, NY | Hospitality | Co-GP | SOLD | 2015 | 40,000 | Ground Lease | $600,000 | $4,166,667 | 20.0% | 1.20x | Co-GP Exited position early to other Co-GP. | |
| Marriot 324 W 44th Street | Manhattan, NY | Hospitality | Co-GP | SOLD | 2015 | 35,000 | Ground Lease | $600,000 | $4,166,667 | 20.0% | 1.20x | Co-GP Exited position early to other Co-GP. | |
| Long Island Self-Storage | East Meadow, NY | Commercial | GP | SOLD | 2016 | 100,000 | $2,700,000 | $6,400,000 | $3,200,000 | 540.0% | 3.80x | Sponsor acquired property, went through discretionary rezoning action to allow to built Self Storage Facility, and then sold. | |
| Angel Guardian Home | Brooklyn, NY | Community Facility | GP | SOLD | 2018 | 250,000 | $13,500,000 | $17,100,000 | $19,000,000 | -13.0% | 0.69x | Sponsor sold property at a loss after a failed rezoning action. | |
| Hebrew Language Academy | Brooklyn, NY | Community Facility | Co-GP | SOLD | 2020 | 35,000 | Ground Lease | $1,482,807 | $741,404 | 5.0% | 1.10x | Co-GP Exited position early to other Co-GP. | |
| Totals/Weighted Avg. | 2,106,056 | $128,935,000 | $243,982,807 | $674,335,952 | |||||||||
The above bios and track record were provided by Barone Management and have not been independently verified by RealtyMogul.
The ground lease and school lease were executed in August 2022. Pre-development activities and minor asbestos abatement have already commenced with expected completion by July 2023. The closure of the Construction loan is anticipated in June 2023. Building plans were officially approved in April 2023, paving the way for construction to commence on schedule. The construction process is projected to conclude in December 2024, following necessary signoffs and completion milestones. The school will assume possession of the Property in December 2024, and the exit strategy is planned for June 2027.
The construction responsibilities will be managed by a highly experienced in-house construction team with a specialized focus on charter schools, boasting over 24 years of expertise in the industry. Barone Management's portfolio includes successful projects in various asset classes, including hospitality, commercial, and multi-family.
The Project is projected to be sold at the end of year four for a 6.0% forward-looking cap rate. The exit value is estimated to be $16.66M or $585.33 PSF.
CapEx Breakdown
| Hard Costs | Total Amount | PSF | ||
| New Construction | $7,112,500 | $250 | ||
| Contingency | $711,250 | $25 | ||
| Insurance | $177,813 | $6 | ||
| CM Fee | $400,078 | $14 | ||
| Total Hard Costs | $8,401,641 | $295 | ||
| Soft Costs | Total Amount | PSF | ||
| Project Legal | $75,270 | $3 | ||
| Architect/Engineering | $266,200 | $9 | ||
| Environmental/Geotech | $5,000 | $0 | ||
| Insurance | $28,726 | $1 | ||
| Permits & Filing Fees | $20,000 | $1 | ||
| Surveys | $10,250 | $0 | ||
| Controlled Inspections | $40,000 | $1 | ||
| Expediting | $40,000 | $1 | ||
| Project Accounting/Reporting | $25,000 | $1 | ||
| Development Coordination | $25,000 | $1 | ||
| Land Lease Closing Costs | $18,366 | $1 | ||
| Misc. Expense | $25,000 | $1 | ||
| Security Deposit | $158,861 | $6 | ||
| Key Money | $350,000 | $12 | ||
| Lease Carry Costs | $241,461 | $8 | ||
| Real Estate Taxes | $270,348 | $9 | ||
| Contingency | $79,974 | $3 | ||
| Total Exterior Renovation Costs | $1,679,456 | $59 | ||
| Financing Costs and Fees | Total Amount | PSF | ||
| Origination Fee | $80,738 | $3 | ||
| Broker Fee | $40,369 | $1 | ||
| Closing Costs/Reports/Admin Costs(1) | $400,208 | $14 | ||
| Title | $25,000 | $1 | ||
| Lender Legal | $20,000 | $1 | ||
| Construction Loan Interest | $327,998 | $12 | ||
| Recourse Fee | $80,738 | $3 | ||
| Acquisition Fee | $66,127 | $2 | ||
| Development Fee | $456,541 | $16 | ||
| Total Other Costs | $1,332,431 | $53 | ||
| Grand Total | $11,413,528 | $407 |
(1) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
The redevelopment of 629 Courtlandt Avenue, a 24,300 SF, three-story vacant commercial building for The Bronx Charter School for Children (BCSFC). The Sponsor has executed a 99-year ground lease with the fee owner (Lancourt Associates, LLC) creating a long-term leasehold position in the Property. The existing structure will largely remain in place and an additional floor will be created to redevelop the building into a four-story 28,500 SF educational facility that has been pre-leased to a successful and long-established charter school. The tenant (BCSFC) was K-5 until 2019/20 but received an expansion to K-8. BCSFC is fully enrolled through 8th grade and is moving its middle school program to this site. Zoning for the Property is as of right with entitlements in hand. In addition to a considerable amount of administrative and support space, the school features 11 classrooms, 2 science specifics rooms, an art room, a 3,300 SF full gymnasium, a nearly 1,750 SF cafeteria, and an outdoor terrace located on the first floor. The new additions and gut renovation to this already existing building will bring new life to the community and create a wonderful home for children of The Bronx. The Project site is located between 151st Street and 152nd Street, in the heart of The Bronx, making it a prime location with close proximity to some of the borough's most notable landmarks such as Yankee Stadium, Lincoln Hospital, Bronx Terminal Market, New York Botanical Garden, and The Bronx Zoo just to name a few.
| Tenant | SF | Lease Start | Lease End |
Rent PSF (In-Place)(1) |
Lease Type |
| Bronx Charter School for Children | 28,469 | 8/1/2024 | 9/30/2056 | $37.20 | NNN |
(1) Per Tenant Lease Agreement, base rent is $35.08 PSF based on a minimum rent factor of $5,284.69 and a current student enrollment of 189 students. Rent factor and student enrollment are subject to minimum annual escalations which are included in the Investments' rent escalation assumptions.
Sales Comparables
| 45-20 83rd Street | 34-12 10th Street | 89-17/25 161st St Jamaica | Averages | Bronx Charter School for Children | |
| Sale Date | 06-21-2022 | 09-01-2023 | 07-01-2022 | 06-01-2027 | |
| Sales Price | $45,000,000 | $16,400,000 | $57,600,000 | $39,666,667 | $16,663,567 |
| Year Built | 2022 | 2023 | 2020 | 2022 | 2024 |
| Average Size | 67,568 SF | 23,820 SF | 63,976 SF | 51,788 SF | 24,469 SF |
| Sales Price / SF | $666 | $688 | $450 | $602 | $681 |
| Cap Rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% |
| Occupancy at Sale | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
| Distance from Subject Property | 8.0 mi | 6.5 mi | 15.0 mi | 9.8 mi | |
| Notes | Sponsor currently owns assets, value represents As-Is appraised value of June 21, 2022 | Sponsor currently owns assets, value represents As-Stabilized appraised value of 9/1/2023, appraisal completed 9/13/21 |
Market Overview
The Bronx is a borough of New York City, located in the northernmost part of the city. It is home to approximately 1.4 million people and is known for its diverse population, with Hispanic/Latino representing 56% of the population and Black/African American representing around 26% of the population. Interestingly enough, approximately 30% of the population is foreign-born. If the Bronx were its own stand-alone city, it would be the eighth-largest metropolis in the United States, ranking over urban areas such as San Diego, San Antonio, and Dallas. The commercial real estate market in the Bronx has also seen growth in recent years, particularly in the areas of retail and office space. Major developments, such as the recently opened Mall at Bay Plaza, have helped to drive the retail sector in the borough. The Bronx offers a good location for a school due to several factors; Growing Population: the growth over the years correlates to a demand for more educational facilities. Affordable Real Estate: the Bronx has a more affordable real estate market compared to other areas of New York City bringing in lots of young families. Diverse Population: The Bronx offers a diverse population, which allows the school to attract students from a wide range of backgrounds. Lastly, Accessible Transportation: The Bronx has several public transportation options including buses and subways allowing kids to get to and from school easily. The Property is located within just a 10-minute walk or 0.5-mile walk from Grand Concourse Station which includes stops for 2, 3, 4, and 5 Trains.
Submarket Overview
The South Bronx, in recent years, has undergone significant redevelopment with new construction projects and investment in infrastructure. The commercial real estate market in the South Bronx has also seen growth, with new office and retail spaces being developed. The Bronx Terminal Market, for example, is a large shopping center in the South Bronx that features national retailers such as Target, Home Depot, and Best Buy. Moreover, the South Bronx has become an attractive location for new businesses, particularly in the tech and creative industries, with co-working spaces such as Bronx Coworks providing office space and resources for entrepreneurs and small business owners. The overall economic outlook for the South Bronx is positive, with new businesses and development projects bringing jobs and life to the area, with the healthcare, educational, and hospitality sectors being among the largest employers. The South Bronx is the densest area of the borough, comprising over one-third of its total population and taking up less than 20% of its land area. After decades of decline, the last 20 years have seen a substantial shift in new development across all asset classes. Despite an increase in home and rental prices, affordable options are still available in the area, making it the perfect location for growing families.
Total Capitalization
| Sources of Funds | $ Amount | $/SF |
| Debt | $8,073,802 | $284 |
| GP Equity(1) | $339,726 | $12 |
| LP Equity | $3,000,000 | $105 |
| Total Sources of Funds | $11,413,528 | $401 |
| Uses of Funds | $ Amount | $/SF |
| Hard Costs | $8,401,641 | $295 |
| Soft Costs | $1,679,456 | $59 |
| Financing | $563,737 | $20 |
| RM Technologies Fee(2) | $165,288 | $6 |
| Recourse Fee | $80,738 | $3 |
| Acquisitions Fee | $66,127 | $2 |
| Development Fee | $456,541 | $16 |
| Total Uses of Funds | $11,413,528 | $401 |
(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: LIIF
- Loan Type: Construction Interim Loan
- Term: 84 Months
- Loan-To-Value: 71.0%
- Loan-To-Cost: 70.7%
- Estimated Proceeds: $8,073,802
- Interest Type: Fixed
- Annual Interest Rate: 7Y Treasury + 288bps (6.50%)
- Interest-Only Period: During Construction Only. Post-Construction, monthly payments of principal and interest based on the 25-year amortization schedule.
- Amortization: 25 Years
- Prepayment Terms: Yield Maintenance Until Month 60
- Extension Requirements: None
- Recourse Description: Full Recourse
(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.
Barone Management intends to make distributions from Courtlandt Fund LLC as follows:
- Pari passu to all cash flows available for distribution to the Equity Investors(1) until Equity Investors(1) receive a Preferred Return of 9.0% IRR;
- 65% / 35% (65% to Equity Investors(1) / 35% to Promote/Carried Interest) of all cash flow available for distribution thereafter.
Barone Management 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 June 2025 and are projected to continue on an Annual basis thereafter. Distributions are at the discretion of Barone Management, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Barone Management will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Effective Gross Revenue | $0 | $529,479 | $1,148,606 | $1,253,847 | |
| Total Operating Expenses | $0 | $88,406 | $339,022 | $355,710 | |
| Net Operating Income | $0 | $441,073 | $809,585 | $898,138 | |
| Project-Level Cash Flows | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Net Cash Flow | ($3,339,726) | $0 | $111,246 | $149,930 | $8,579,925 |
| Investor-Level Cash Flows(2) | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Net Cash Flow | ($3,005,753) | $0 | $100,122 | $104,880 | $6,381,089 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(2) | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Net Cash Flow | ($50,000) | $0 | $1,665 | $1,745 | $106,148 |
(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including Barone Management.
(2) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to Barone Management'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 |
| Acquisition Fee | $66,126.56 (1.0% of all base rent payable under the Ground Lease, discounted at a 5% cap rate) | Sponsor | Capitalized Equity Contribution |
| Recourse Fee | 1.0% of Debt | Sponsor | Capitalized Equity Contribution |
| Development Fee | 4.0% of Total Costs | Sponsor | Capitalized Equity Contribution |
| Construction Management Fee | 5.0% of Hard Costs | Sponsor | 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 | 2.0% of Net Rent | 3rd Party Property Manager | Cash Flow |
| 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.
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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.