Advenir at Mallory Lake has already started horizontal construction and the construction loan has closed, mitigating a sizeable amount of development risk for potential investors. The site has been cleared and graded with utilities in place, foundation slabs are being poured, and wood framing has commenced. Additionally, the development partner, Imperium Development, is Atlanta-based with a strong track record of execution and has guaranteed cost overruns.
Advenir will develop Mallory Lake at a basis of $226,472 per unit, a discount to recent trades across the Atlanta MSA, which have averaged over $340,000 per unit in the past 18 months.
Local officials have been conservative with housing supply in relation to the rapid job growth that has taken place. Only 3 multifamily communities have been developed in the past 12 years for a total of 558 units. Forecasted job growth is +35% in the next 3 years with new announcements from Amazon, Remington, and expansions for EVs at the local and only KIA Manufacturing plant in the U.S.A. All of these factors will contribute to sustainable rental demand for Advenir at Mallory Lake.
Advenir
Advenir acquires, develops, and operates multi-family & single-family rental communities on behalf of high-net-worth and institutional investors. Founded in 1996, Advenir, LLC is a real estate investment company headquartered in Aventura, Florida (Miami-Dade) with over two decades of proven track record across multiple real estate cycles. Advenir has seen 44 fully realized investments with an average multiple on capital of 2.16x and an average annualized net investor returns of 24.1% over an average hold period of 4.7 years.
Advenir leverages 27+ years of experience within the multifamily investment space to identify selective JV partnerships with exceptional multi-family developers to capitalize on superior risk-adjusted returns. Advenir develops in markets that exhibit a pro-growth mentality with affordable living costs with a goal of building to a minimum 20% discount to recent trades within an identified submarket. Advenir's acquisitions team will “stress test” rents within a rental competitive set using internally verified data from Advenir's in-house property management team that oversees Advenir's 13,000+ unit portfolio and places a strong emphasis on the future supply pipeline and demand fundamentals.
Imperium Development is headquartered in Atlanta, Georgia, and is focused on creating value within the multifamily investment space. Imperium's leadership has more than 50 years of combined multifamily experience, inclusive of $1.6 billion in total projects with over 11,000 units constructed. This is the second deal that Advenir and Imperium Development have worked on together.
https://www.advenir.net/-
Stephen L. VecchittoManaging Member -
William J. SandbrookChairman
Mr. Vecchitto founded Advenir, Inc in 1996 and is its Managing Director. Advenir is a multi-family real estate investment, development, and management company. Advenir currently controls and owns jointly with investors over 14,000 plus units, valued in excess of $3.3B of real estate assets in Florida, Texas, Colorado, Alabama, Georgia, and the Carolinas, and generates $230M+ in annual revenue. The Company has over 400 employees, is based in Miami, Florida, and has offices in Atlanta, Houston, Denver, and Orlando.
Mr. Vecchitto was the founder of VSM, LLC; a Hartford-based Certified Public Accounting and financial services firm. The firm grew to 40 professionals and became the fifth-largest private firm in Hartford. While at the firm, Mr. Vecchitto was the Managing Partner, created and grew the litigation support division, concentrated on mergers and acquisitions, became certified as a Certified Fraud Examiner, and an Accredited Member of the Association of Appraisers – Business Valuation concentration. He was qualified to testify as an expert in both State and Federal courts. Mr. Vecchitto sold the Firm in 1996.
Mr. Vecchitto continues to be a strategic advisor to businesses and high-net-worth individuals.
Mr. Vecchitto dedicates much of his spare time and is very active in the business community at large and philanthropy. He is an Associate Board of Director for Apartment Life, participates on the Advisory Board of City-to-City Miami, and is a Cornerstone Member of Make-A-Wish Foundation in South Florida.
He is the father of two daughters and the proud grandfather of six grandchildren who all live in Hawaii.
William J. (Bill) Sandbrook serves as Chairman of Imperium Development. A 1979 graduate of the US Military Academy at West Point, Bill served for 13 years in the Army, followed by 29 years in the construction and heavy materials industry. While in the service, he obtained an MBA from Wharton, Masters of Science in Systems Engineering from the University of Pennsylvania, a Masters in Public Policy from the Naval War College, and a Masters of Arts and International Relations from Salve Regina University. He holds his Professional Engineering License in Industrial Engineering. Since 2011, Bill was President and CEO of U.S. Concrete (NASDAQ: USCR) until his retirement in 2020, having also served as Chairman of the Board from 2018 to 2021. Prior to that, Bill was President and CEO of CRH Americas Products and Distribution responsible for all North and South American operations. He is also the past Chairman of the National Ready-Mixed Concrete Association and was inducted into the Pit and Quarry Magazines Hall of Fame. Bill currently serves as the Chairman and co-CEO of the Andretti Acquisition Corporation.
| Property Name | City, State | Asset Type | Equity Invested | EMx | Sale Date | Years Held | Annual Net Investor Return |
| Pier Club | Miramar, FL | Multifamily | $1,500,000 | 2.64X | 2000 | 1.9 | 86% |
| Waterview | North Miami, FL | Multifamily | $1,400,000 | 4.57X | 2003 | 4.1 | 87% |
| Asbury Park | Miami, FL | Multifamily | $1,750,000 | 1.35X | 2004 | 1 | 35% |
| Hamilton Pointe | Brandon, FL | Multifamily | $1,800,000 | 1.38X | 2004 | 3.2 | 12% |
| Remington | Homestead, FL | Multifamily | $950,000 | 2.20X | 2005 | 7.8 | 15% |
| Majestic Oaks | Orlando, FL | Multifamily | $1,650,000 | 2.25X | 2006 | 4.2 | 30% |
| Calypso Cay | Plantation, FL | Multifamily | $1,450,000 | 2.43X | 2006 | 2.5 | 57% |
| Aventura Bayview | Aventura, FL | Multifamily | $1,500,000 | 3.01X | 2006 | 2.2 | 92% |
| Kings Pointe | Plantation, FL | Multifamily | $1,750,000 | 1.48X | 2006 | 4.8 | 10% |
| Ola | Miami, FL | Multifamily | $1,540,000 | 3.45X | 2007 | 2.9 | 84% |
| Townhouses of Plantation | Plantation, FL | Multifamily | $2,500,000 | 1.32X | 2007 | 2.2 | 15% |
| Arlington | Jacksonville, FL | Multifamily | $1,650,000 | 0.00X | 2008 | 3 | -33% |
| Grand Cypress | New Braunfels, TX | Multifamily | $3,000,000 | 1.27X | 2010 | 2.6 | 10% |
| Waters Edge | Jacksonville, FL | Multifamily | $3,000,000 | 0.00X | 2011 | 4.2 | -24% |
| Lakes of Margate | Margate, FL | Multifamily | $5,150,000 | 1.97X | 2011 | 1.8 | 53% |
| Town Centre | Garland, TX | Multifamily | $8,300,000 | 1.87X | 2013 | 6.8 | 14% |
| Presidential House | Miami, FL | Multifamily | $4,400,000 | 1.91X | 2014 | 4.7 | 19% |
| Advenir at Foxmoor | Dallas, TX | Multifamily | $4,100,000 | 1.96X | 2014 | 6.3 | 16% |
| Advenir at Promontory Pointe | San Antonio, TX | Multifamily | $7,350,000 | 2.01X | 2015 | 7.08 | 15% |
| Advenir at Casa Bella | Charlotte, NC | Multifamily | $400,000 | 4.37X | 2015 | 8.2 | 49% |
| Advenir at Cheyenne Crossing | Colorado Springs, CO | Multifamily | $6,900,000 | 1.66X | 2015 | 3.6 | 19% |
| Advenir at Colony Club | Boynton Beach, FL | Multifamily | $10,500,000 | 1.82X | 2015 | 3.4 | 19% |
| Advenir at Stonelake | Ocala, FL | Multifamily | $2,850,000 | 1.12X | 2015 | 9 | 2% |
| Advenir at Pines | Palm Springs, FL | Multifamily | $4,200,000 | 1.08X | 2015 | 12.5 | 7% |
| Advenir at Highland Park | Dallas, TX | Multifamily | $2,900,000 | 2.15X | 2016 | 4.5 | 26% |
| Advenir at Briarglen | Colorado Springs, CO | Multifamily | $5,500,000 | 2.52X | 2016 | 4.9 | 31% |
| Advenir at Mission Ranch | Mesquite, TX | Multifamily | $8,200,000 | 1.58X | 2016 | 2.9 | 24% |
| Advenir at Castle Pines | Denver, CO | Multifamily | $13,530,000 | 2.87X | 2017 | 4.8 | 39% |
| Advenir at Walnut Creek | Denver, CO | Multifamily | $8,800,000 | 1.53X | 2017 | 3.3 | 17% |
| Advenir at Broadwater | Orlando, FL | Multifamily | $13,000,000 | 1.68X | 2017 | 4.2 | 16% |
| Advenir at Saddle Rock | Aurora, CO | Multifamily | $13,020,000 | 3.16X | 2018 | 5.4 | 40% |
| Advenir at Mansfield | Mansfield, TX | Multifamily | $11,200,000 | 1.81X | 2018 | 4.9 | 17% |
| Advenir at Park Boulevard | Grapevine, TX | Multifamily | $7,200,000 | 1.75X | 2018 | 4 | 19% |
| Advenir at The Village | Colorado Springs, CO | Multifamily | $13,000,000 | 1.81X | 2018 | 3.2 | 24% |
| Advenir at Prestonwood | Dallas, TX | Multifamily | $9,800,000 | 1.34X | 2019 | 3 | 11% |
| Advenir at Spring Canyon | Colorado Springs, CO | Multifamily | $12,100,000 | 2.96X | 2019 | 5.5 | 36% |
| Advenir at Frankford | Dallas, TX | Multifamily | $12,000,000 | 2.20X | 2020 | 5.7 | 21% |
| Advenir at Lowry | Denver, CO | Multifamily | $11,450,000 | 2.93X | 2020 | 6.4 | 31% |
| Advenir at Stapleton | Denver, CO | Multifamily | $12,250,000 | 4.86X | 2021 | 8.9 | 55% |
| Advenir on Addison | Dallas, TX | Multifamily | $14,130,000 | 1.61X | 2021 | 4.8 | 13% |
| Advenir at Stone Park | Houston, TX | Multifamily | $15,300,000 | 1.85X | 2021 | 5.8 | 15% |
| Advenir at The Preserve | Houston, TX | Multifamily | $9,000,000 | 1.76X | 2022 | 5 | 15% |
| Advenir at Woodbridge | Houston, TX | Multifamily | $12,300,000 | 2.58X | 2022 | 7 | 22% |
| Advenir at Monterrey | Venice, FL | Multifamily | $8,600,000 | 4.02X | 2022 | 8 | 26% |
| Totals/Weighted Average | $292,860,513 | 2.21X | 4.8 | 24.1% | |||
| Total Capital Invested to Date | $1,300,000,000 | ||||||
The above bios and track record were provided by Advenir and have not been independently verified by RealtyMogul.
Advenir has entered into a JV agreement with Imperium Development, headquartered in Atlanta, GA to develop Advenir at Mallory Lake - a new construction, 300-unit garden-style apartment community located within the Atlanta MSA scheduled to be developed and stabilized by Q1 2025 for a total cost basis of $226,472 per unit. This favorable basis attributes to a 30% discount compared to established sales comps in addition to an untrended 6.25% return on cost. The Property is located along the employment powerhouse I-85 corridor, home to Georgia International Business Park, and is within 20 minutes of more than 36,000 jobs. Troup County is home to more Fortune 500 regional sites per capita than anywhere in the United States. As a gateway to both the Atlanta metro area and the pristine beauty of the Georgia Plains, Advenir at Mallory Lake will serve cultural enthusiasts and outdoor lovers alike. Residents of Advenir at Mallory Lake will enjoy its spacious, scenic community nestled amongst the foothills of the Southern Appalachian Mountains. Strong demand for quality housing in Troup County has contributed to annual rent growth of 7.9% (CoStar) and median home price growth of 28.1% (Realtor.com). Advenir has underwritten 3.0% rent growth. Housing demand is strong with currently 56% of the workforce being commuters and an additional 15,000 new jobs projected in the next 3 years. The LaGrange Economic Development Authority estimates a need for +2,800 new housing units over the next few years to accommodate the population and job growth. Advenir at Mallory Lake Year 1 pro forma rents start around $1,400 at the low end, which equates to a +40% discount to homeownership as new single-family homes less than 1 mile from Advenir at Mallory Lake have starting prices of $350k+.
Summit Contracting Group, Inc. is the general contractor for the Project. Advenir will self-perform property management functions after the Project has been developed. Of note, horizontal construction has already commenced and the construction loan has been secured through Great Southern Bank.
Construction has already started and the construction loan has closed. Notice to proceed was issued in November 2022 and all building permits have been received. Sitework is completed (see pictures) and wood framing has commenced. Slab on grade prep is underway and Summit Contracting Group has completed over 75% of the trade buyout. The first units and clubhouse are scheduled to be delivered in Q1 2024, with preleasing efforts to start in Q4 2023. The construction loan with Great Southern Bank has closed, with terms as follows: $42.6M, 42-Month Full Term Interest Only, floating over SOFR at 3.00%. Advenir has assumed an average interest rate of 8.3%, although Sponsorship believes it will be in the low 7% range for the length of the loan.
Development Costs
| Hard Costs | Total Amount | Per Unit | ||
| Construction Hard Costs | $53,955,530 | $179,852 | ||
| Hard Costs Contingency | $1,618,666 | $5,396 | ||
| Total Hard Costs | $55,574,196 | $185,248 | ||
| Soft Costs | Total Amount | Per Unit | ||
| Land | $2,720,000 | $9,067 | ||
| Architect | $649,000 | $2,163 | ||
| Environmental | $30,000 | $100 | ||
| Survey | $43,000 | $143 | ||
| Construction & Soils Testing | $140,000 | $467 | ||
| Engineering | $190,000 | $633 | ||
| Legal & Closing | $477,246 | $1,591 | ||
| Taxes & Insurance | $749,491 | $2,498 | ||
| Muni Fees & Building Permits | $615,000 | $2,050 | ||
| Preleasing Expense | $315,000 | $1,050 | ||
| Furniture, Fixtures, & Equipment | $550,000 | $1,833 | ||
| Soft Cost Contingency | $450,000 | $1,500 | ||
| Total Soft Costs | $6,928,737 | $23,095 | ||
| Financing + Other Costs | Total Amount | Per Unit | ||
| Financing Costs | $783,887 | $2,613 | ||
| Interest Reserve | $1,189,916 | $3,966 | ||
| Operating Deficit | $186,348 | $621 | ||
| Development Fees | $2,288,129 | $7,627 | ||
| Guaranty Fees | $219,905 | $733 | ||
| Construction Management Fees | $770,489 | $2,568 | ||
| Total Financing + Other Costs | $5,438,674 | $18,128 | ||
| Grand Total | $67,941,605 | $226,472 |
Advenir at Mallory Lake is a multifamily development project consisting of 300-unit apartment units located in La Grange, GA. Average proforma rents at the Advenir at Mallory Lake are $1,681 ($1.80 PSF) and the Property will target the large employment workforce located at the nearby and adjacent Georgia International Business Park, which boasts more than 36,000 jobs. Amenities at the Property will include a clubhouse with lounge room, cyber café and coffee bar, business center, 24-hr fitness center with towel service, resort-style saltwater pool with sundeck and cabanas, outdoor pavilion, grilling stations, and a package concierge.
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Avg Rent (Proforma) | Rent PSF (Proforma) |
| A1 | 120 | 756 | $1,399 | $1.85 |
| A2 | 60 | 816 | $1,510 | $1.85 |
| B2 | 90 | 1,176 | $2,046 | $1.74 |
| C1 | 30 | 1,248 | $2,059 | $1.65 |
| Totals/Averages | 300 | 943 | $1,681 | $1.80 |
Lease Comparables
| Exchange 1105 | Alta Ashley Park | Promenade at Newnan Crossing | The Springs at Newnan | The Yard on Mill | Averages | Advenir at Mallory Lake | |
| Distance from Subject Property | 0.6 mi | 31.6 mi | 30.6 mi | 29.7 mi | 3.3 mi | 19.2 mi | |
| Year Built | 2021 | 2022 | 2019 | 2020 | 2020 | 2020 | 2025 |
| Number of Units | 280 | 269 | 298 | 320 | 240 | 281.4 | 300 |
| 1 Bedrooms | Market Rent (Post-Reno) | ||||||
| $ / Unit | $1,290 | $1,469 | $1,685 | $1,592 | $1,215 | $1,450 | $1,436 |
| Square Feet | 718 SF | 758 SF | 782 SF | 778 SF | 782 SF | 764 SF | 776 SF |
| $ / SF | $1.80 / SF | $1.94 / SF | $2.15 / SF | $2.05 / SF | $1.55 / SF | 1.90 / SF | $1.85 / SF |
| 2 Bedrooms | |||||||
| $ / Unit | $1,775 | $2,154 | $2,125 | $1,905 | $1,463 | $1,884 | $2,046 |
| Square Feet | 2,010 SF | 1,185 SF | 1,079 SF | 1,180 SF | 1,155 SF | 1,322 SF | 1,176 SF |
| $ / SF | $0.88 / SF | $1.82 / SF | $1.97 / SF | $1.61 / SF | $1.27 / SF | $1.51 / SF | $1.74 / SF |
| 3 Bedrooms | |||||||
| $ / Unit | $2,045 | N/A | $2,420 | $2,422 | $1,695 | $1,716 | $2,059 |
| Square Feet | 1,235 SF | N/A | 1,423 SF | 1,368 SF | 1,334 SF | 1,072 SF | 1,248 SF |
| $ / SF | $1.66 / SF | N/A | $1.70 / SF | $1.77 / SF | $1.27 / SF | $1.28 / SF | $1.65 / SF |
Sales Comparables
| Exchange at 1105 | The Preserve Apartment Homes | Promenade at Newman Crossing | Solis Cumming | The Atwater at Flowery Branch | Elan Powers Ferry | The Lights at Northwinds | The Maven | Overlook at Huntcrest | The Reid | Averages | Advenir at Mallory Lake | |
| Sale Date | 03-01-2022 | 08-01-2022 | 10-01-2020 | 06-01-2022 | 02-01-2022 | 05-01-2022 | 04-01-2022 | 04-01-2022 | 04-01-2022 | 04-01-2022 | 2-17-2022 | 01-01-2026 |
| Sales Price | $65,004,000 | $72,000,000 | $65,858,000 | $134,400,000 | $89,250,000 | $127,500,000 | $66,500,000 | $101,000,000 | $107,500,000 | $85,000,000 | $91,401,200 | $88,500,000 |
| Year Built | 2021 | 2012 | 2019 | 2022 | 2021 | 2021 | 2021 | 2021 | 2017 | 2021 | 2019 | 2025 |
| # of Units | 280 | 300 | 298 | 320 | 313 | 276 | 140 | 276 | 299 | 242 | 274 | 300 |
| Average Unit Size | 890 SF | 1,075 SF | 1,000 SF | 953 SF | 995 SF | 915 SF | 908 SF | 957 SF | 930 SF | 962 SF | 959 SF | 943 SF |
| Sales Price / Unit | $232,157 | $240,000 | $221,000 | $420,000 | $285,144 | $461,957 | $475,000 | $365,942 | $359,532 | $351,240 | $341,197 | $295,000 |
| Sales Price / SF | $261 | $223 | $221 | $441 | $287 | $505 | $523 | $382 | $387 | $365 | $359 | $313 |
| Cap Rate | 4.25% | 4.15% | 4.25% | 3.65% | 4.25% | 3.65% | 3.60% | 3.75% | 2.87% | 3.80% | 3.82% | 0.00% |
| Distance from Subject Property | 0.6 mi | 30.3 mi | 30.6 mi | 104.0 mi | 112.0 mi | 75.7 mi | 94.8 mi | 98.8 mi | 94.4 mi | 79.9 mi | 72.1 mi | |
| Notes | Columbus, GA | Newnan, GA | Cumming, GA | Flowery Branch, GA | NW Atlanta | Alpharetta, GA | Suwanee, GA | Suwanee, GA | Tucker, GA |
Market Overview
Atlanta, the largest city in the No. 1 ranked state for business climate, continues to prove itself attractive to tech companies looking to capitalize on its deep and diverse talent pool. Atlanta is the No. 3 city for Fortune 500 companies and 29 Fortune 500/100 companies are headquartered in the metro Atlanta area, generating an aggregate revenue of $429 billion as of fiscal year 2020. From 2022 until the present day, Atlanta has seen Google, Capital One, Walmart, Cisco Systems, and Visa add a combined 3,700+ new high-paying office jobs while thousands of new jobs are expected to materialize in the future from expansions announced by Amazon, The Home Depot, and Kellogg's. Atlanta is also home to the busiest airport in the world (Hartsfield-Jackson Atlanta International Airport).
Advenir currently owns and operates 3 multifamily communities within the MSA and those investments are performing above projection.
Submarket Overview
Advenir at Mallory Lake is located within the Troup County submarket, which has seen +25% job growth over the past 12 years. Local officials have been conservative with housing supply in relation to the rapid job growth that has taken place. Only 3 multifamily communities have been developed in the past 12 years for a total of 558 units. Strong demand for quality housing has contributed to year-over-year effective rent growth of 8% for September 2022 (CoStar). Advenir has underwritten 3.0% rent growth. Physical occupancy within the submarket is strong, averaging 96% across 5 competitive properties. Occupancy and rent growth in the submarket are projected to remain strong as Georgia’s economy continues to attract corporations in search of a more favorable business and tax environment while providing a lower cost of living to employees.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $42,637,000 | $142,123 |
| LP Equity | $22,776,366 | $75,921 |
| GP Equity(1) | $2,528,239 | $8,427 |
| Total Sources of Funds | $67,941,605 | $226,472 |
| Uses of Funds | $ Amount | $/Unit |
| Land | $2,720,000 | $9,067 |
| Hard Costs | $53,955,530 | $179,852 |
| Hard Cost Contingency | $1,618,666 | $5,396 |
| Soft Costs(2) | $9,647,409 | $32,158 |
| Total Uses of Funds | $67,941,605 | $226,472 |
(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: Great Southern Bank
- Loan Type: Construction Loan
- Term: 42 Months & Two (2) 12-month extension options.
- LTC: 62.8%
- Estimated Proceeds: $42,637,000
- Interest Type: Floating
- Spread Above SOFR: 3.00%
- Interest-Only Period: 42 Months
- Amortization: 30 Years
- Prepayment Terms: N/A (at any time)
- Extension Requirements: (a) 30 days written notice, (b) not in default, (c) with all documents required by lender, (d) with a fee of 0.15% of commitment to lender, (e) with a DSCR of not less than 1.15 to 1.0 for the first extension and not less than 1.25 to 1.0 for the second extension.
- Recourse Description: Partial 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.
Advenir intends to make distributions from Advenir@Mallory Lake Investors, LP as follows:
- Pari-passu all cash flow available for distribution to the Equity Investors(1) until the Equity Investors receive a Preferred Return of 9.0%(2) Per Annum (non-compounded);
- Return of Capital to all Equity Investors;
- 70% / 30% (70% to the LP Equity Investors(3)/ 30% to the GP Equity Investors(4)) of all cash flow available for distribution thereafter.
Advenir 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 April 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Advenir, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Advenir will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||
| Year 1 | Year 2 | Year 3 | ||
| Effective Gross Revenue | $0 | $2,740,348 | $5,542,576 | |
| Total Operating Expenses | $0 | $1,175,441 | $1,568,652 | |
| Net Operating Income | $0 | $1,564,907 | $3,973,923 | |
| Project-Level Cash Flows | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($25,304,605) | $0 | $586,648 | $40,860,611 |
| Investor-Level Cash Flows(5) | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($3,035,000) | $0 | $27,050 | $4,581,375 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(5) | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($50,000) | $0 | $446 | $75,476 |
(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including Advenir.
(2) After stabilization, the Preferred Return is reduced to 7.0%. Please review the Offering Materials for additional information.
(3) LP Equity Investors include members part of the Limited Partnership.
(4) GP Equity Investors include members part of the General Partnership, including Advenir.
(5) 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 Advenir'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 | $300,000 | Advenir | Capitalized Equity Contribution |
| Guarantee Fee | Approximately $219,906 | IDP South Davis | 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 |
| Construction Management Fee | $150,000 | Advenir | Capitalized Equity Contribution |
| Property Management Fee | 3.0% of Monthly Gross Revenues | Advenir | Cash Flow |
| Construction Management Fee | 1.15% of Hard Costs | IDP South Davis | Capitalized Equity Contribution |
| Development Fee | 3.5% of Total Project Costs | IDP South Davis | Construction Expenditure Budget |
| Inspection Fee | $150,000 | Advenir | Construction Expenditure Budget |
| 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 | Capitalized Equity Contribution |
(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.
.
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
None of RM Technologies nor any affiliate are registered as a broker, dealer, investment adviser, or funding portal (except with respect to RM Adviser, LLC, which has no involvement in the transactions to be consummated hereby or contemplated herein and solely for the purposes hereof, shall not be deemed an affiliate or RM Technologies). They do not provide investment advice or recommend the purchase of any securities that are the subject of this agreement or the Sponsor’s offering with respect to the Project. Project Sponsor’s use of the Platform, including Project Sponsor’s license to utilize the Platform and any related technology, software and supporting services, Project Sponsor’s posting of offering documents and all related information on the Platform does not constitute the approval of or endorsement by RM Technologies or any of its affiliates of Project Sponsor’s securities offering with respect to the Project or signify the suitability thereof in any manner.
For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.