FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.

Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.

Boots on the ground

Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.

Detailed Checklists

We have formalized processes and checklists for every private placement deal listed on the platform.

Confidentiality Agreement
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By clicking the ‘I Agree’ button below:
Completed Equity
Estimated Hold Period 5 years
Estimated First Distribution 8/2017
FUNDED 100%
...
View Our Due Diligence Process
Investment Returns: Discerning investors don't rely on a single projected return metric as a basis to invest. Rather, when assessing a potential investment, we encourage you to evaluate all information provided by a sponsor including the business plan, assumptions, and risk factors which can be found in the relevant offering documents. This approach is consistent with our requirements as a broker-dealer, which prohibit us from communicating projected returns.
Offered By
Weaver Capital Partners
Investment Strategy Core Plus
Investment Type Equity
Overview
Historic, Duke University-anchored mixed-use office and retail portfolio in Downtown Durham, North Carolina.
Property at a glance
Year Built / Renovated 1930 & 1932 / 2001 & 2005
Total Square Feet 27,691
Current Occupancy 93%
Number of Tenants 5
Parking Ratio 1.66 spaces per 1,000 square feet
Acquisition Price $6,100,000
Investment Highlights
Main tenant is Duke University (S&P AA+)
The downtown Durham office market has a current vacancy of 1.7% according to CoStar
Historic buildings with high visibility recently renovated in the early 2000s
Experienced Sponsors who have partnered to acquire multiple properties representing more than $32 million in total capital
Attractive going-in yield may produce an average cash return of 6.8% in year one
Management
Cumulative Distributions

Weaver Capital Partners

Weaver Capital Partners is a private investment firm that is active in acquiring commercial real estate across the Southeast. The firm seeks opportunistic and value‐add transactions across most major property types including office, industrial, retail and mixed‐use projects. The company has been involved in six investments representing more than $185 million of total capitalization.

  • Jay Weaver
    President
  • Andrew Seng
    President
Jay Weaver
President

The founding principal of Weaver Capital Partners, Jay Weaver has for the last 14 years developed, repositioned and operated dozens of diverse office, industrial, retail, and residential projects throughout the Southeast. Jay has also served as an investment director for the Brookdale Group, where he was involved in the analysis of $275 million of suburban office properties in the Southeast.

Upon graduating from the University of Georgia, Mr. Weaver became the Development Manager for Dan Cowart, Inc., and was responsible for the development of a 150,000 square foot retail center on 17 acres in North Fulton, north of Atlanta. He has also served as an investment director for the Brookdale Group, where he was involved in the analysis of $275 million of suburban office properties in the southeast. As a development manager with Winter Properties, Inc., his projects included the successful acquisition of a 5.5 acre, 150,000 square‐foot office redevelopment in Midtown Atlanta, formerly known as the Baptist Home Mission Board Headquarters (Midtown Heights). Prior to forming Weaver Capital Partners, Mr. Weaver was a founding principal of Weaver & Woodbery Company, during which time he developed, owned and repositioned numerous projects including such notable properties as White Provision and Puritan Mill. Since forming Weaver Capital Partners, Mr. Weaver has concluded a number of successful acquisition and redevelopment projects.

Andrew Seng
President

Mr. Seng has been active in the investment management industry for his entire career. Since 2003, Mr. Seng has worked in commercial real estate gaining experience across all major asset classes including office, industrial, retail, residential, hotel and mixed‐use projects. Prior to beginning his firm, Mr. Seng was involved in arranging and concluding more than $1.6 billion in capital placements for real estate ranging from senior‐secured debt investments to subordinate capital such as mezzanine financing, preferred equity and joint ventures.

Mr. Seng began his career focusing mainly on busted residential subdivision deals. His only other office deal besides what was is listed in the “Sponsor Track Record” is Barrett Park in Kennesaw, GA. Mr. Seng bought that property with a different partner and it is still active and has returned about 30% annually to date.

Mr. Seng began his investment career with Putnam Investments and the Investment Office at the University of Notre Dame, which manages the school’s endowment. He served as Executive Vice President of the First Fidelity Companies for several years and subsequently served as Managing Director with HFF, LP. He’s been active in several organizations including the CFA Institute, NAIOP and the Urban Land Institute. In 2006, Andrew was selected as a member of the inaugural Future Leaders program for NAIOP Atlanta, and he was subsequently awarded the Emerging Leader award nationally by NAIOP in that program’s first year. He is a full member of ULI, and he previously served as a Vice Chair for one of the Urban Development & Mixed‐Use Councils. Andrew earned his MBA from the Goizueta Business School at Emory University where he was a Dean’s Scholar. He graduated with honors from the University of Notre Dame where he received his BBA.  Andrew is a CFA charterholder.

Track Record

Weaver Capital Partners - Track Record

Property Location Product Type Property Size (SF) Purchase Date Total Deal Size
Puritan Mill Atlanta, GA Mixed-Use 85,000 2001 $14,500,000
White Provision Atlanta, GA Mixed-Use 150,000 2007 $76,000,000
Peachtree Square Atlanta, GA Industrial 300,000 2005 $11,000,000
4100 Henry Ford II Avenue Atlanta, GA Industrial 398,000 2006 $9,000,000
Cigar Factory Charleston, SC Mixed-Use 240,000 2014 $65,000,000
Edgehill Village Nashville, TN Mixed-Use 60,000 2014 $10,000,000
Total     1,233,000   $185,500,000

*Sponsor information and track record were provided by the Sponsor and have not been independently verified by RealtyMogul.com.

In this transaction, RealtyMogul.com investors will invest in Realty Mogul 74, LLC. Realty Mogul 74, LLC will subsequently invest in Foster Retail, LLC, the entity that is to hold title to the Property.

The Sponsor plans to add value by leasing the currently and soon to be vacant space at the Property, while rolling under market rents to market upon lease expirations. Duke University has occupied the Property since 2008, and the Sponsor believes that it is likely that they will exercise their second extension option due to the length of their tenure, as well as the approximately $4 million investment made in their space by Duke and the current property owner in robust lab infrastructure. The soon-to-be vacant space should be attractive to potential tenants given the street level visibility and location of the Property in downtown Durham.

The Sponsor’s current plan is to self-manage the Property. For leasing, they have been in discussions with a local broker as well as CBRE and Cushman & Wakefield.

Upon completion of the business plan, the Sponsor intends on selling the Property within five years, although the timing of the sale is at the discretion of the Sponsor and the hold period could be shorter or longer than five years depending on market conditions.

Summary

RealtyMogul.com, along with The Seng Company and Weaver Capital Partners (“Sponsor” or "Sponsors"), is providing the opportunity to invest in the acquisition and ownership of the Duke University-Anchored Portfolio (the "Property"), two stabilized office/retail properties in downtown Durham, North Carolina totaling 27,691 square feet.

The Sponsor sees this investment as an opportunity to acquire a well located, well occupied asset that benefits from a strong anchor in Duke University (S&P AA+), with additional upside potential through leasing of the to be vacated space.

The primary objective of this investment is to acquire the Property at an attractive going-in yield and basis, increase occupancy and rental rates and sell the Property within five years.

Property Information

The Property is a two-building portfolio of adjacent buildings located in downtown Durham, less than two miles from Duke University. The buildings were originally built in 1930 and 1932, then renovated in 2001 and 2005.

Triangle Biotechnology Center, or 323 Foster Street, was originally built in 1932 as Clark & Sorrell Garage, and was the oldest repair garage still in operation in the city when it was closed in 2000. The functional brick and concrete building is listed on the National Register of Historic Places and benefits from a 50% abatement on property taxes. In 2001, after extensive renovations, Triangle Biotechnology Center was opened to address a need for R&D facilities in downtown Durham with lab space. The historic building with modern lab and office space are designed to meet the functional requirements of a broad range of different types of research. The laboratories are designed around a central utility spine that provides easy access to all major building services.

401 Foster Street was originally constructed as a warehouse likely used by Liggett and Myers Tobacco Company. In the 1940s, the building was converted to auto service and sales at which time the interior posts were removed, the roof re‐supported by steel trusses and the front façade was converted to stucco. Later, the building became home to Southeastern Radio Supply and the land continues to be owned by a trust that evolved from Southeastern Radio. The redevelopment of 401 Foster Street into the destination spot it is today commenced in 2005 with new plumbing, electrical, HVAC, storefronts, exterior stucco and signage transforming the building while striving to maintain historical integrity.

Major Tenants

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Duke University (S&P AA+) has been a tenant at 323 Foster Street ("Triangle Biotechnology Center") since 2009. They recently exercised their first renewal option to extend the lease through 2020 and still have a second, five‐year renewal option remaining.

Duke University is a private research university with over 14,850 students as of Fall 2014. Duke consistently ranks as one of the top universities in the United States. In September 2015, CollegeFactual.com named Duke the 3rd best college for four‐year undergraduate programs ‐ beating out Stanford, Harvard and Princeton. Duke ranked eighth for best graduate school and medical programs by US News & World Report.

Duke’s research expenditures in the 2013 fiscal year were approximately $993 million, the eighth largest in the nation. In addition to its campuses spanning over 8,600 acres, Duke University occupies an estimated 1 million SF of space in downtown Durham according to Duke's head of real estate, including space at American Tobacco, Carmichael building (within Durham ID) and Triangle Biotechnology Center.

The Duke space within Triangle Biotechnology Center was designed to accommodate research which is currently led by Dr. Levin, as the Chief of the Neurobehavioral Research Lab in the Psychiatry Department, who rides his bike to work. The three main research components of his laboratory are focused on the themes of the basic neurobiology of cognition and addiction, neurobehavioral toxicology and the development of novel therapeutic treatments for cognitive dysfunction and substance abuse. Funding for Dr. Levin’s research comes from multiple sources including the EPA and NIEHS. The lab is used by both undergraduate and graduate students.

Site Plan

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Surrounding Developments

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1. Liberty Warehouse

Previously the location of a historic tobacco warehouse, Liberty Warehouse contains 246 luxury apartments including a pool and fitness center, over 24,000 SF of retail/commercial space and a bowling alley/entertainment complex.

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2. The Chesterfield

Located by West Village on W. Main Street, The Chesterfield is a 7-story, 284,000 SF adaptively reused historic building, which will focus on life science and technology and include office, lab and retail space with a large atrium to encourage collaboration and networking. The project is expected to be completed in first quarter 2017.

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3. City Center

City Center will be located in the heart of the City Center District of downtown Durham. It is a planned 28-story mixed use tower anticipated to include residential condos, luxury apartments, Class A office space and street level retail. The proposed building would be the tallest building in Durham, and is expected to be completed in second quarter 2017.

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4. Durham Innovation District (“Durham.ID”)

Durham Innovation District is a master planned research hub for downtown Durham led by Longfellow Real Estate Partners, Hank Scherich (CEO of Measurement Inc.) and Duke University. Durham.ID covers 15 acres and eventually will include over 1.48 million SF of both new and existing office and lab space as well as 50,000 SF of retail, 300 new residential units and three parking decks. Duke University is already located in the Carmichael Building and is expected to lease additional space within Durham.ID. The development plans to function as a research hub with emphasis on life science companies and researchers looking to collaborate with each other and Duke University. The project is estimated to cost $400-$500 million.

Source: Cushman & Wakefield

Comparables

Sales Comps

Property Sale Date Size (Square Feet) Price $/Square Foot Cap Rate
Rogers Alley Dec-14 30,000 $6,100,000 $203 6.30%
American Tobacco Hall Dec-14 71,600 $14,400,000 $201 7.25%
Venable Center Jan-16 85,886 $18,000,000 $210 N/A
211 Rigsbee Avenue Oct-15 7,920 $1,435,000 $181 6.50%
Average   48,852 $14,182,539 $204 6.68%
Subject   27,691 $6,100,000 $220 8.29%

Leasing Comps

Property Size (Square Feet) Rental Rate Year Built Lease Type
405 E. Chapel Hill Street 1,395 $24.00 1920 NNN
206-208 Rigsbee Avenue 3,882 $26.00 1912 NNN
401 E. Chapel Hill Street 3,000 $24.50 1922 NNN
125 E. Parish Street 1,636 $23.47 1910 NNN
353 W. Main Street 577 $22.88 1920 NNN
Average 2,098 $24.17 1917 NNN
Subject - Pro Forma Rents N/A $21.00 1930 & 1932 NNN

The comparables included in the above tables were either sourced from CoStar, Real Capital Analytics or they were provided by the Sponsor 

Location Information

The Property is located along Foster Street in Downtown Durham. The Property is adjacent to an estimated $500 million of new development including Durham.ID. Durham Innovation District (aka Durham.ID) is a master planned research hub for downtown Durham led by Longfellow Real Estate Partners, Hank Scherich (CEO of Measurement Inc.) and Duke University (number 5 on the “Surrounding Developments” map). Durham.ID covers 15 acres and eventually is to include over 1.48 million SF of both new and existing office and lab space as well as 50,000 SF of retail, 300 new residential units and three parking decks. Duke University is expected to lease additional space within Durham.ID. The development plans to function as a research hub with emphasis on life science companies and researchers looking to collaborate with each other and Duke University.

Duke’s increased presence and commitment downtown has spurred economic activity. Duke occupied 70,000 SF in 2004, just over 1 million SF in 2014 and is expected to occupy 1.5 million SF in 2018, according to Duke's head of real estate. The Property is highly visible along Foster Street which connects Downtown Durham with Geer Street, an area with bars/restaurants and new multifamily/condo development. During the site visit, numerous construction sites were observed, which is expected to increase population density over the next few years. The area has experienced robust gentrification over the recent years with many young professionals moving into the area. Over the past few years, 941 apartment units have been added in the immediate area. The surrounding population has grown by almost 15% annually over the past five years and is expected to grow by over 10% annually over the next five years according to CoStar.

Market Overview

According to CoStar, the Durham office market fundamentals continued to improve at the end of the third quarter of 2016. Vacancy rates decreased 170 basis points year-over-year, ending the quarter at 8.5%. Average direct asking rental rates increased slightly finishing the quarter at $20.33, an increase of 2.8% from one year ago. The third quarter experienced 576,000 square feet of absorption. Durham office metrics remain positive as we approach the close of 2016.

Submarket Overview

Per CoStar market research, the Downtown Durham office submarket totals almost 5.5 million square feet and is the market's third largest office submarket. Vacancy rates have decreased by 390 basis points since the end of 2013 to 1.7% today which has provided buoyancy to rental rates as prospective tenants vie for prime space in the area.

Demographic Information

Demographics 1 Mile 3 Miles 5 Miles
Population (2016)   16,573 97,031 188,136
Growth (2010-2016) 15.35% 12.40% 13.22%
Growth (2016-2021) 10.45% 10.06% 10.18%
Average HH Income (2016)  $51,852 $48,652 $57,760

Demographic information above was obtained from CoStar

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds
Debt $4,500,000
Equity $1,975,000
Total Sources of Funds $6,475,000
Uses of Funds
Purchase Price $6,100,000
Acquisition Fee $61,000
Broker-Dealer Fee $40,000
Closing Costs and Fees $122,250
Hard Costs $30,750
Tenant Improvement/Leasing Commission Reserve $121,000
Total Uses of Funds $6,475,000
Debt Assumptions

The projected terms of the debt financing are as follows:

  • Lender: AloStar Bank of Commerce
  • Proceeds: $4,500,000
  • Interest Rate: One-Month Libor + 325 bps Floating
  • Amortization: 25 years, with three (3) years of interest only
  • Term: Five (5) years
  • Extension Option: None
  • Recourse: 7% of the loan amount ($315,000) to the Sponsors
  • Exit Fee: $15,000  

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender controlled capital reserve account.

Distributions

Foster Retail, LLC intends to make distributions to Investors (Realty Mogul 74, LLC, other LP investors, and Sponsor, collectively, the "Members" or "Member") per the priority order below.

  • First, 100% of all distributable cash flow to Members pari passu until return of capital contributions;
  • Second, 100% pari passu to Members until each Member receives cash in the aggregate to constitute an 8% internal rate of return (“IRR”);
  • Third, 30% to Members and 70% to the Sponsor until the Sponsor has received cash in the aggregate equal to 30% of the amount by which all distributable cash exceeds all capital contributions (the “Catch Up”);
  • Thereafter, 70% to the Members pro rata and 30% to the Sponsor.

Distributions are expected to start in August 2017 and are anticipated to continue on a quarterly basis thereafter. Note that the return of initial capital occurs only upon a capital event (sale or refinance). These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves. Realty Mogul 74, LLC is to distribute 100% of its share of excess cash flow (after expenses and fees) to the Members of Realty Mogul 74, LLC (the RealtyMogul.com investors).

Targeted Cash Flows

  Year 1 Year 2 Year 3 Year 4   Year 5  
Effective Gross Revenue $779,639 $879,026 $910,118 $936,434 $963,006
Total Operating Expenses $312,880 $349,092 $357,771 $375,956 $385,827
Net Operating Income $466,759 $529,934 $552,347 $560,478 $577,179
Distributions to Realty Mogul 74, LLC Investors $71,843 $75,819 $76,375 $37,665 $1,512,844
Fees

Certain fees and compensation will be paid over the life of the transaction.  The following fees and compensation will be paid:

 
Type of Fee Amount of Fee Received By Paid From Notes
One-Time Fees
Acquisition Fee $61,000 Sponsor Capitalized Equity Contribution 1.0% of the Property purchase price
Broker-Dealer Fee  $40,000 North Capital (1) Capitalized Equity Contribution 4.0% based on the amount of equity invested by Realty Mogul 74, LLC with a minimum of $40,000
Leasing Commissions  3% New / 2% Renewal  Sponsor  Operating Cash Flow   
Recurring Fees
Property Management Fee 3.0% of effective gross income Sponsor Operating Cash Flow 3.0% of effective gross income
Asset Management Fee $19,750 per year Sponsor Operating Cash Flow 1.0% of invested equity
Management and Administrative Fee 1.0% of investment assets in Realty Mogul 74, LLC RM Manager, LLC Distributable Cash RM Manager, LLC is the Manager of Realty Mogul 74, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

Notes:
(1) Certain employees of Realty Mogul, Co. are also registered representatives of, and are paid commissions by, North Capital Private Securities Corporation, a Delaware Corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital, Co. are parties to a profit sharing arrangement. 

(2) Fees may be deferred to reduce impact to investor distributions. 

The above presentation is based upon information supplied by the Sponsors. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 74, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

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, LLC

Sponsor 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 Documents

The 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 Investment

This 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 Assumptions

Sponsor 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 Performance

Any 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 Debt

A 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 Registered

Sponsor’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 Advice

Nothing 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 Risk

Internal 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.

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Your Net Worth
Are you interested in 1031 exchanges?
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Welcome to RealtyMogul

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