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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.
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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.