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The Park Avenue House is located in “The District Detroit”, surrounded by a $1.5 billion masterplan development announced by Stephen Ross’ Related Company and the Ilitch Family’s Olympia Development, calling for 700 mixed-income residential units, 1.2 million square feet of commercial office space, 100,000 square feet of retail, and 467 hotel rooms across 10 properties. The Related Company / Olympia Development joint venture has also unveiled the plans to build the Detroit Center for Innovation, a $250 million, three-building satellite campus in partnership with the world-renowned University of Michigan. The University of Michigan Center for Innovation in Detroit (“UMCI”) will be located next to the Park Avenue House.
The Sponsor acquired the Property in an off-market transaction at a significant discount to replacement cost. Originally built as a hotel in 1924, the Louis Kemper Designed Royal Palm Hotel was operated as a hotel until the 1960s. In addition, the Property has secured tax abatements with the City of Detroit through the Obsolete Property Rehabilitation Act (OPRA), providing attractively discounted property taxes in exchange for the project’s renovation work.
The Sponsor will renovate and reposition the “shovel ready” Park Avenue House as a 170-unit market rate Class-A Multifamily asset featuring studio apartments and select top floor premium 1-bedroom units. Located in the heart of downtown, the Property will cater to major employment centers, including the Detroit CBD, Wayne State University, Detroit Medical Center, and the future University of Michigan Center for Innovation, totaling 100,000 employees, over 27,000+ students, and over 15,000 physicians and employees.
Alter Mile & Sturgeon Bay Partners
Alter Mile
Alter Mile Group LLC, “Alter Mile,” is a private investment firm with offices in Westwood/Los Angeles, Detroit, and Greenwich/CT that invests capital as a fiduciary to a family office, other high net worth individuals, and some large institutional investors with the mandate to invest in opportunistic high-yielding real assets including Opportunity Zone investments and distressed assets. Alter Mile is founded by two seasoned real estate executives who spent their careers working at some of the most active real estate private equity, development, and finance companies. Alter Mile is focused primarily on partnering and providing capital to developers in the residential and multifamily asset classes but also considers other property types such as office, retail, hospitality, and industrial. Alter Mile is focused on investing in opportunistic, special situation real estate investments in major markets across the United States, where the investors’ potential returns largely exceed the investment’s inherent risk. Sturgeon Bay Partners & Alter Mile currently own and operate over $135 million in a significant portfolio of apartments in Detroit. Notable transactions in Detroit, Baycrest Apartments (5440 Cass Ave), East English Village (14414 Corbett), Park Avenue Apartments (2305 Park Avenue), Walloon Lake, Harbor Springs, MI, Midtown Portfolio (4417 2nd Ave).
Sturgeon Bay Partners
Sturgeon Bay Partners is a real estate investment & development firm with a focus on acquiring value-add multifamily, student housing, retail, and office assets in urban cores. Sturgeon Bay seeks to acquire properties across the country with a primary focus on Detroit, Philadelphia, Washington, D.C., and the New York metro. Within the past year, Sturgeon Bay has acquired six Midtown Detroit multifamily properties and commercial condos at the iconic Park Shelton in Midtown Detroit. Notable transactions: Sheridan Court (4417 Second Avenue), 665 & 675 West Willis Street, 663 Prentis Street, 5764 Woodward, 653 West Hancock, and 15 East Kirby Street.
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Diego ReyesManaging Principal | Alter Mile Group -
Gabriel WeinertManaging Principal | Alter Mile Group -
John GibbsManaging Partner | Sturgeon Bay Partners -
Michael OaukineManaging Partner | Sturgeon Bay Partners
Mr. Reyes is a Founder and Managing Principal of Alter Mile Group. Prior to forming Alter Mile, Mr. Reyes was a Managing Director at CIM Group, LP, a Los Angeles-based institutional real asset investment manager. Throughout his fourteen-year tenure at CIM, Mr. Reyes worked closely with its institutional capital partners on equity investments and product structuring, as well as across multiple operational teams, including investments, development, commercial leasing, and asset management. While at CIM, the firm’s assets under management grew from less than $1B to approximately $25B. Mr. Reyes has also invested directly in numerous sub-institutional real estate assets, including residential, retail, and office properties, as well as in other private equity and venture capital interests across a variety of sectors, including real estate, energy, consumer goods & services, technology, and biotechnology. Born and raised in Detroit, MI, Mr. Reyes has lived and worked in Washington D.C., Austin, TX, Los Angeles, CA, and New York City prior to returning to his hometown to form Alter Mile. Mr. Reyes holds a B.B.A. from George Washington University and an M.B.A. from UCLA’s Anderson School of Management.
Mr. Weinert is a Founder and Managing Principal of Alter Mile Group. Mr. Weinert has transacted and managed over 150 highly structured commercial real estate transactions and development projects requiring joint venture equity, mezzanine debt, senior secured construction debt, bridge loans, and permanent financing, representing over $2.5 B of terminal value. Prior to forming Alter Mile, Mr. Weinert established and led the West coast Structured Finance and SFR Division at Walker & Dunlop following the firm’s acquisition of Johnson Capital in 2014 where Mr. Weinert was a Managing Director/ SVP. Prior to this role, Mr. Weinert was an Investment Officer managing a $600 MM portfolio of investments with Emigrant Realty Finance, the balance sheet real estate investment division of Emigrant Savings Bank. Prior to joining Emigrant, Mr. Weinert was an Investment Officer with Troxler Venture Partners, (a Lehman Brothers and Morgan Stanley development partner), where he managed over $500 MM of real estate development projects. Mr. Weinert also previously worked in the real estate groups of UBS Warburg, JP Morgan, and Heitman Capital Management. Mr. Weinert received a B.B.A. in finance from the University of Michigan – Ross School of Business and an M.B.A. from the UCLA’s – Anderson School of Management. He is a frequently requested speaker at various real estate conferences, and is active with NMHC (National Multi-Housing Council), MBA (Mortgage Bankers Association), ICSC, ULI, IMN, and CREFC.
Mr. Gibbs co-founded Sturgeon Bay Partners in 2017 and oversees all investment activity for the company. He is responsible for executing new acquisitions, dispositions, structuring joint ventures, and assisting with redevelopment efforts. Prior to Sturgeon Bay, he worked on the acquisitions team at DDG Partners in New York City, a real estate investment and development firm with roughly $2 billion of assets under management. At DDG, John focused on sourcing and executing deals in New York City and San Francisco. Prior to DDG, John worked in investment sales at Kinsey Capital. At Kinsey Capital, John focused on urban retail transactions in New York City. Before entering the real estate investment business, John worked as a consultant at Gibbs Planning Group, a leading urban retail planning and market research consultancy as well as Realstone Systems, overseeing sales for the Mid-Atlantic region. He is a member of Urban Land Institute and Congress for the New Urbanism. He is an avid squash player and fly fisherman. John earned a B.A. in history from Ole Miss
Mr. Ouaknine co-founded Sturgeon Bay Partners in 2017 and oversees all development efforts for the company. He focuses the majority of his time on planning and design, development, and project execution. Prior to Sturgeon Bay Partners, Michael founded Prime Design Build, which offered millwork fabrication solutions to clients seeking high design. Michaels formerly trained and experienced team of carpenters worked with advanced machinery to fabricate various luxury residential, retail, hospitality, and creative office projects in New York City. Michael brings 20 years in the field of construction management, working for Lend Lease and McGovern & Company in New York City. His experience includes managing ground-up condo projects for Extell, Midtown office developments for LCOR, and various responsibilities managing the construction of the new Mets Stadium, Citi Field, in addition to a variety of retail stores, tenant fit outs, and residential apartments. He has always had a passion for design and details. This led him to pursue a Master’s degree in Industrial Design at Pratt Institute. Michael received an M.I.D from Pratt Institute and a B.A. in Finance from the University of Colorado at Boulder
| Property Name | City, State | Role | Asset Type | Status | Acq Date | Total Capitalization | Sales Price or Estimated Value |
| Park Avenue Apartments | Detroit, MI | GP | Multifamily | Under Development/ Management | 2021 | $40,000,000 | $51,000,000 |
| Sligh Building(1) | Los Angeles, CA | GP | Multi/Ind/Residential | Under Development/ Management | 2021 | $150,000,000 | $200,000,000 |
| Belcrest Apartments | Detriot, MI | GP | Multifamily | Under Development/ Management | 2022 | $28,000,000 | $40,000,000 |
| Chalmers Portfolio | Detriot, MI | GP | Multifamily | Under Development/ Management | 2015 | $4,100,000 | $7,500,000 |
| Walloon Hotel | Walloon Lake, MI | GP | Hotel | Under Development/ Management | 2022 | $6,750,000 | $10,000,000 |
| Midtown Portfolio | Detriot, MI | GP | Multifamily | Under Development/ Management | 2016 | $35,000,000 | $40,000,000 |
| Echo Park. Multifamily | Los Angeles, CA | GP | Multifamily | SOLD | 2019 | $12,000,000 | $15,000,000 |
| 55 Old Field Point Rd. | Greenwich, CT | GP | Office | SOLD | 2012 | $3,500,000 | $5,000,000 |
| 104 Field Point Rd. | Greenwich, CT | GP | Office | SOLD | 2016 | $4,800,000 | $6,000,000 |
| 55 Arch Street | Greenwich, CT | GP | Office | SOLD | 2017 | $5,100,000 | $7,000,000 |
| Catalina Apartments | Los Angeles, CA | Co-GP | Multifamily | SOLD | 2015 | $35,000,000 | $45,000,000 |
| Toluca Villas | Toluca Lake, CA | Co-GP | Multifamily | SOLD | 2018 | $14,100,000 | $18,000,000 |
| Swall Condos | Beverly Hills, CA | Co-GP | Residential Condos | SOLD | 2015 | $18,120,000 | $24,000,000 |
| Korea Town Multifamily | Los Angeles, CA | Co-GP | Multifamily | SOLD | 2017 | $33,000,000 | $45,000,000 |
| Rincon Tower | San Francisco, CA | Co-Invest | Multifamily | SOLD | 2014 | $250,000,000 | $300,000,000 |
| 432 Park Avenue | New York, NY | Co-Invest | Residential Condos | SOLD | 2011 | $1,000,000,000 | $1,200,000,000 |
| SLS Miami | Miami, FL | Co-Invest | Hotel | SOLD | 2013 | $75,000,000 | $90,000,000 |
| Seaholm Power | Austin, TX | Co-Invest | Mixed Use | SOLD | 2007 | $150,000,000 | $170,000,000 |
| Penn Field | Austin, TX | Co-Invest | Mixed Use | SOLD | 2007 | $41,000,000 | $55,000,000 |
| Total | $1,872,470,000 | $2,328,500,000 |
(1) Sligh Building is currently under development and expects to start construction soon, current terminal value is expected to be over $60 MM with over $20MM total project costs spent to date.
The above bios and track record were provided by Sturgeon Bay Partners & Alter Mile and have not been independently verified by RealtyMogul.
Alter Mile Group and Sturgeon Bay Partners (collectively the “Sponsor”) are excited to present an opportunity for joint venture investment in the historic Park Avenue House (the “Property”) located in CBD Detroit. The Sponsor acquired the property through an off-market transaction in August 2021 at a significant discount to replacement cost and is contributing the property at cost basis. The business plan is to immediately renovate the property and reposition it as a trendy, 170-unit market-rate apartment complex (with studios accounting for 96% or 164 units). The project is "shovel ready" with all necessary approvals, final architectural construction drawings, and a fully priced construction agreement with a leading Detroit-based general contractor, Monahan Construction. Additionally, a senior loan of $21.5 million, mezz loan of $3.7 million, and preferred equity of $9.6 million have been obtained by the Sponsor from Mercantile Bank, Invest Detroit, and a pension fund of Michigan, respectively, with an aggregated LTC of 62% (without preferred equity) and 85% (with preferred equity). Renovations are planned to complete in month 15 (Sept. 2024), and the property is projected to stabilize in month 27 (Oct. 2025), after a 12-month lease-up period. The Sponsor plans to engage Hayman Company for property management and to refinance in month 36, assuming a 71% LTV, a 1.20x DSCR, a 6.44% debt constant, and a 5% interest rate with a 5.50% cap rate.
The total project costs are estimated to be $41 million ($241k/unit), with a total project common equity of $6.15 million. The project's underwriting assumes that it will be sold after five years at a 5.5% cap rate ($334k/unit), with projected returns to investors via an RM platform at a 20.6% IRR and 2.5x equity multiple.
The Park Avenue House is a 170-unit high-rise apartment building located in downtown Detroit's entertainment district, boasting a prime location between the Central Business District (CBD) and the vibrant Midtown neighborhood. With approximately 100,000 square feet of space, including 5,000 square feet of retail space, the Property is surrounded by major sports arenas, prominent entertainment venues, and significant employment centers, such as Little Caesar's Arena, home to the Detroit Pistons and Red Wings, Comerica Park, the beloved stadium of the Detroit Tigers, and Ford Field, the impressive venue where the Detroit Lions play. Adjacent to the Property stands the iconic Fox Theatre, a historic theater known for its grand architecture and hosting world-class performances. Additionally, the Detroit Opera House, Detroit Athletic Club, Masonic Temple, and Wayne State University's Mike Ilitch School of Business contribute to the vibrant cultural fabric of the area. Park Avenue House is also part of a $1.5 billion master plan development led by Stephen Ross' Related Cos, Ilitch Family/Olympia Holdings, and the University of Michigan. The building, originally constructed as a hotel in 1924, features an elegant brick and limestone exterior with Italian Renaissance details. The 170 units primarily consist of efficient studios, ranging from 330 to 420 square feet, which meet the high demand for this unit type in the city. The Property also offers the opportunity to reposition the retail space to support the residents and the community. Conveniently connected to the CBD and Midtown through Detroit's downtown light rail system (The M-1), the Park Avenue House provides exceptional views of downtown Detroit and easy access to a wide range of amenities, including restaurants, offices, museums, and professional sports arenas.
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Avg Rent | Rent PSF |
| Studio | 164 | 379 | $1,500 | $3.96 |
| 1 Bed | 6 | 801 | $2,450 | $3.06 |
| Totals / Averages | 170 | 394 | $1,534 | $3.89 |
Lease Comparables
Sale Comparables
| Timber Ridge Apartments | Encore at Ashby Preserve | E&B Brewery Lofts | Clover Apartments | The Griswold at Capitol Park | Valley Ranch | Averages | Park Avenue House | |||
| Sale Date | 01-01-2021 | 01-01-2021 | 12-01-2020 | 10-01-2020 | 05-01-2019 | 02-01-2019 | 5/7/2020 | |||
| Sales Price | $30,900,000 | $16,725,000 | $10,000,000 | $6,310,000 | $23,664,972 | $70,250,000 | $26,308,329 | $40,985,081(1) | ||
| Year Built | 1986 / 2003 | 2019 | 1891 | 2016 | 2017 | 1990 | 1987 | 1924 / 2024 | ||
| # of Units | 180 | 75 | 27 | 32 | 80 | 384 | 130 | 170 | ||
| Average Unit Size | 1,121 SF | 1,401 SF | N/A | 1,325 SF | 881 SF | 1,071 SF | 1,160 SF | 394 | ||
| Sales Price / Unit | $171,667 | $223,000 | $370,370 | $197,188 | $295,812 | $182,943 | $240,163 | $241,089 | ||
| Cap Rate | 5.28% | 5.30% | 5.50% | 5.75% | 5.06% | 5.35% | 5.37% | N/A | ||
| Distance from Subject Property | 159.0 Miles | 22.4 Miles | 1.6 Miles | 36.7 Miles | 0.8 Miles | 38.6 Miles | 43.2 mi | 0.0 Miles | ||
(1) The subject property's sales price is based on the total capitalization of this investment opportunity.
Market Overview - Detroit CBD
Detroit CBD is surrounded by top-tier sporting and entertainment destinations, as well as prominent civic venues. Additionally, Detroit CBD is in close proximity to key employment centers such as Google's Detroit headquarters and the Detroit Medical Center, providing an ideal location for businesses and residents alike. The area's rich history is reflected in its landmark buildings. Detroit CBE has easy access to the newly built downtown light rail system (the M-1) and major highways (The Lodge and I-75). Recent investments in the area have further stimulated growth, with $1.5 billion in announced developments planned. These include expanding residential, commercial, retail, and public spaces, as well as the new Detroit Center for Innovation, and the University of Michigan. Detroit CBD is home to numerous significant employers such as General Motors, DTE Energy, and Blue Cross Blue Shield of Michigan, making it a vital and thriving urban center for both work and leisure. Pre-COVID vacancy rates for efficient studio apartments in downtown Detroit were approximately 1%, with numerous properties having substantial waitlists. At Sponsor’s existing properties, studio apartments have remained 100% occupied.
Submarket Overview - Midtown Detroit (The Detroit District)
Stephen Ross’ Related Cos and the Ilitch Family’s Olympia Development announced $1.5 billion in development calling for 700 mixed-income residential units, 1.2 million square feet of commercial office space, 100,000 square feet of retail, and 467 hotel rooms across 10 properties immediately surrounding the Park Avenue House. It also plans to build the Detroit Center for Innovation, a $250 million, three-building satellite campus for the University of Michigan.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Senior Loan | $21,500,000 | $126,471 |
| Subordinated Loan | $3,700,000 | $21,765 |
| LP Equity | $5,000,000 | $29,412 |
| GP Equity(1) | $1,145,000 | $6,735 |
| Preferred Equity | $9,640,081 | $56,706 |
| Total Sources of Funds | $40,985,081 | $241,089 |
| Uses of Funds | $ Amount | $/Unit |
| Acquisition Costs | $13,825,000 | $81,324 |
| Hard Costs | $19,734,050 | $116,083 |
| Soft Costs | $3,037,323 | $17,867 |
| Bridge Financing Costs & Fees | $1,797,218 | $10,572 |
| Financing Costs & Fees | $668,465 | $3,932 |
| NOI Shortfall | $345,806 | $2,034 |
| Interest Shortfall | $1,577,219 | $9,278 |
| Total Uses of Funds | $40,985,081 | $241,089 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor. The Sponsor equity contribution is an estimate as of a point in time and is subject to increase up to $5M (but in no event will it be less than $1,145,000). The final membership roster post-close will serve as a reconciliation of the total Sponsor and Investor equity contributions.
The expected terms of the debt financing are as follows:
Senior Loan:
- Lender: Mercantile Bank
- Loan Type: Construction Loan
- Term: 30 months (construction) + 2-year term
- Loan-to-Value (LTV): N/A
- Loan-to-Cost (LTC): 52.5%
- Estimated Proceeds: $21,500,000
- Interest Type: Floating
- Spread Above SOFR: 2.75% (Floor of 4%)
- Interest-Only Period: 30 Months
- Amortization: 30 Years
- Prepayment Terms: Floating Rate: None; Swap Rate: Swap Break
- Extension Requirements: N/A
- Recourse Description: Full recourse
Supplemental Loan:
- Lender: Invest Detroit
- Loan Type: Mezzanine Loan
- Term: 60 months & no extension
- Loan-to-Cost (LTC): 61.5%
- Estimated Proceeds: $3,700,000
- Interest Type: 8% Fixed
- Interest-Only Period: 18 Months
- Amortization: 30 Years
- Prepayment Terms: N/A
- Extension Requirements: No extension
Modeled Refinance:
- Refi Month: Month 36
- Loan Amount: $37,434,836
- LTV: 71.1%
- DSCR: 1.20x
- Annual Interest Rate: 5.0%
- Amortization: 30 Years
- Interest-Only Period: 60 Months
(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.
Alter Mile and Sturgeon Bay Partners intend to make distributions to investors from Park Avenue RM Fund, LLC from amounts received as the common equity holder in SBAM Park Avenue, LLC as follows:
Common Equity Members:
- Pari-passu until the common equity members have received a preferred return of a 10% Preferred Return (compounded monthly);
- Pari-passu until the common equity members have received aggregate distributions equal to the aggregate unreturned equity Contributions;
- 75% / 25% (75% to Equity Investors / 25% to Promoted/Carried Interest) of all cash flow available for distribution to a 16.0% IRR;
- 60% / 40% (60% to Equity Investors / 40% to Promoted/Carried Interest) of all cash flow available for distribution thereafter.
Note: The preferred equity investors in SBAM Park Avenue, LLC will receive a preferred return of 12.5% (compounded monthly) and return of capital prior to the distributions of preferred returns to the common equity investors. After the common equity investors receive a preferred return of 10% (compounded monthly) and the return of capital, the preferred equity investors will receive a 5% promote prior to subsequent waterfall distributions.
Alter Mile and Sturgeon Bay Partners intend 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 loans).
Distributions are expected to start in October 2026 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Alter Mile and Sturgeon Bay Partners, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Alter Mile and Sturgeon Bay Partners will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Effective Gross Revenue | $0 | $0 | $1,785,329 | $3,679,670 | $3,862,130 | $3,977,844 |
| Total Operating Expenses | $0 | ($319,124) | ($666,926) | ($893,082) | ($930,878) | ($1,025,150) |
| Net Operating Income | $0 | ($319,124) | $1,118,403 | $2,786,588 | $2,931,253 | $2,952,694 |
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($1,262,010) | ($4,882,990) | $0 | $0 | $988,678 | $20,204,089 |
| Investor-Level Cash Flows(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($5,175,000) | $0 | $0 | $0 | $732,948 | $12,187,122 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($50,000) | $0 | $0 | $0 | $7,082 | $117,750 |
(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to Alter Mile and Sturgeon Bay Partners' materials for details. The following fees and compensation will be paid(1)(2):
| One-Time Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Developer Fee | 5.00% of Hard Cost budget not to exceed $870,000 | Alter Mile and Sturgeon Bay Partners | Capitalized Equity Contribution |
| General Contractor Fee | 3.00% of Hard Costs | The Monahan Company | Capitalized Equity Contribution |
| Acquisition Fee | $250,000 | Alter Mile and Sturgeon Bay Partners | 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 | 3.00% of Effective Gross Income | Friedman Real Estate | Cash Flow |
| Refinancing Fee | 0.75% of Loan Proceeds | Alter Mile and Sturgeon Bay Partners | Cash Flow |
| Disposition Fee | 0.50% of Sale Price | Alter Mile and Sturgeon Bay Partners | 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.