Founded in April 2014, RSN Property Group is a multi-real estate investment firm owned by Australian investors living in the U.S. They specialize in acquiring and operating properties with significant value-add components within strong MSAs throughout the U.S. The key principal, Reed Goossens, has been the lead operator on over 24 multifamily value-add syndications acquiring assets worth more than $883MM today.
The Property is a boutique rental community tailored to families, offering a total of 100 one-bedroom and two-bedroom apartment homes in a two-story garden-style layout. It is conveniently located in the heart of downtown Peoria only a 25-minute drive from downtown Phoenix. The surrounding area boasts a long list of restaurants, shopping centers, and major highways (101 Loop & US-60). Furthermore, the community is adjacent to highly sought-after top-rated public schools in the State with an A- rating on Niche (Peoria Unified School District).
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Average Rent / Unit (In-Place) | Average Rent PSF (In-Place) | Average Rent / Unit (Post Renovation) | Average Rent PSF (Post Renovation) |
| 1-Bed (Partially Renovated) | 17 | 480 | $1,185 | $2.47 | $1,230 | $2.56 |
| 1-Bed (Non-Renovated) | 3 | 480 | $1,088 | $2.27 | $1,240 | $2.58 |
| 2-Bed (Partially Renovated) | 73 | 780 | $1,340 | $1.72 | $1,479 | $1.90 |
| 2-Bed (Non-Renovated) | 7 | 780 | $1,151 | $1.48 | $1,501 | $1.92 |
| Totals / Averages | 100 | 720 | $1,293 | $1.66 | $1,431 | $2.05 |
Lease Comparables
| Flats at Peoria | Moxi | Artisan Park | Fountain Place | Bingham Blocks | Stone View | Rise at Northridge | Napa Place Apartments | Peoria Grand | Averages | THE TALLOWS @ PEORIA | |
| Distance from Subject Property | 2.8 miles | 0.5 miles | 3.4 miles | 3.4 miles | 3.7 miles | 4.2 miles | 5.5 miles | 1.9 miles | 0.4 miles | 2.9 miles | |
| Year Built | 1984 | 1984 | 1984 | 1984 | 1972 | 1974 | 1979 | 1985 | 1985 | 1981 | 1975 |
| Number of Units | 154 | 216 | 197 | 164 | 207 | 123 | 130 | 100 | 145 | 160 | 100 |
| 1 Bedrooms | Averages | Market Rent (Post-Reno) | |||||||||
| $ / Unit | $1,465 | $1,414 | $1,221 | $1,230 | $1,300 | $1,461 | $1,256 | N/A | N/A | $1,335 | $1,232 |
| Square Feet | 700 SF | 695 SF | 600 SF | 550 SF | 450 SF | 706 SF | 575 SF | N/A | N/A | 611 SF | 480 SF |
| $ / SF | $2.09 / SF | $2.03 / SF | $2.04 / SF | $2.24 / SF | $2.89 / SF | $2.07 / SF | $2.18 / SF | N/A | N/A | $2.22 / SF | $2.57 / SF |
| 2 Bedrooms | |||||||||||
| $ / Unit | $1,919 | $1,544 | $1,346 | $1,450 | $1,500 | $1,600 | $1,450 | $1,350 | $1,445 | $1,517 | $1,481 |
| Square Feet | 900 SF | 977 SF | 842 SF | 812 SF | 1,150 SF | 925 SF | 852 SF | 811 SF | 864 SF | 904 SF | 780 SF |
| $ / SF | $2.13 / SF | $1.58 / SF | $1.60 / SF | $1.79 / SF | $1.30 / SF | $1.73 / SF | $1.70 / SF | $1.66 / SF | $1.67 / SF | $1.69 / SF | $1.90 / SF |
Sales Comparables
| The Parker | Edge @ Westgate | Glenridge Apartments | Rise on Cactus | Rise at the Meadows | Sunrise on Bethany | Tides on 67th | Tides on 59th | Peoria Grand | Country Gables | Averages | THE TALLOWS @ PEORIA | |
| Sale Date | 05-01-2022 | 07-01-2022 | 09-10-2022 | 09-15-2022 | 09-15-2022 | 11-01-2022 | 12-01-2022 | 12-01-2022 | In Escrow | In Escrow | 09-14-2022 | In Escrow |
| Sales Price | $45,000,000 | $18,270,000 | $31,500,000 | $31,000,000 | $29,200,000 | $25,000,000 | $33,362,765 | $32,508,414 | $31,000,000 | $27,800,000 | $31,205,775 | $18,500,000 |
| Year Built | 1984 | 1975 | 1985 | 1984 | 1983 | 1974 | 1985 | 1985 | 1985 | 1984 | 1983 | 1975 |
| Number of Units | 152 | 87 | 135 | 124 | 120 | 120 | 148 | 141 | 144 | 139 | 131 | 100 |
| Average Unit Size | 676 SF | 757 SF | 699 SF | 745 SF | 740 SF | 950 SF | 805 SF | 724 SF | 889 SF | 604 SF | 757 SF | 720 SF |
| Sales Price / Unit | $296,053 | $210,000 | $233,333 | $250,000 | $243,333 | $208,333 | $225,424 | $230,556 | $215,278 | $200,000 | $232,551 | $185,000 |
| Sales Price / SF | $438 | $277 | $334 | $336 | $329 | $219 | $280 | $318 | $242 | $331 | $313 | $257 |
| Cap Rate | 5.00% | N/A | 3.64% | 4.30% | 3.66% | N/A | N/A | N/A | N/A | N/A | 4.15% | 5.70% |
| Occupancy at Sale | 93.00% | 94.00% | 93.50% | 95.00% | 93.50% | 96.00% | 95.50% | 96.00% | 98.00% | 96.00% | 95.10% | 94.60% |
| Distance from Subject Property | 6.2 miles | 4.0 miles | 6.0 miles | 6.4 miles | 8.3 miles | 5.7 miles | 5.1 miles | 4.5 miles | 0.1 miles | 6.0 miles | 5.2 miles |
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Preferred Equity (Class A) | $1,831,398 | $18,314 |
| LP Investor Equity (Class B) | $4,705,590 | $47,056 |
| LP Investor Equity (Class C) | $2,000,000 | $20,000 |
| GP Investor Equity(1) | $620,000 | $6,200 |
| Senior Loan (Net Proceeds) | $12,090,000 | $120,900 |
| Total Sources of Funds | $21,246,988 | $212,470 |
| Uses of Funds | $ Amount | $/Unit |
| Acquisition Price | $18,500,000 | $185,000 |
| Acquisition Fee | $370,000 | $3,700 |
| Rate Buy Down | $241,800 | $2,418 |
| Closing Costs(2) | $148,000 | $1,480 |
| Financing | $181,350 | $1,814 |
| Working Capital | $250,000 | $2,500 |
| Capital Expenditures | $1,555,838 | $15,558 |
| Total Uses of Funds | $21,246,988 | $212,470 |
(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: Freddie Mac
- Loan Type: Agency
- Term: 60 Months
- Loan-to-Value (LTV): 65.0%
- Loan-to-Cost (LTC): 56.9%
- Estimated Proceeds(1): $12,090,000
- Interest Type: Fixed
- Annual Interest Rate: 5.58%
- Interest -Only Period: 36 Months
- Amortization: 35 Years
- Prepayment Terms: Two (2) year lockout period in which neither prepayment nor defeasance is permitted. Thereafter the Loan cannot be prepaid but can be defeased as defined in the Loan Documents (“Defeasance Period”), with securities substituted as collateral for the Loan in place of the Property. After expiration of the Defeasance Period (i.e., the last three (3) calendar months of the Loan Term) the Loan may be prepaid with no prepayment premium due.
- Extension Requirements: None (agency debt)
- Recourse Description: Non-recourse
(1) Estimated Proceeds are net of a $241,800 buy-down fee, in exchange for a 34-basis-point reduction in rate.
(2) 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.
RSN Property Group intends to make distributions from RSNPG Tallows Apts Partners RM, LLC to investors on a pro rata basis, based on distributions received as the holder of a Class C interest from RSNPG Tallows Apts Partners, LLC. RSNPG Talllows Apts Partners, LLC will make distributions as follows:
- To the Class A Investors, until they receive a 10% annualized preferred equity return;
- Pari-passu all cash flow available for distribution to the Class C Investors(1) until the Class C Investors receive an 8.0% IRR;
- 80% / 20% (80% to Class C Investors / 20% to GP as Promoted/Carried Interest) of excess cash flow thereafter.
RSN Property Group 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 loans. As set forth in the operating agreement, Class C Investors are subordinate to the Class A Investors, who receive a 10% annualized preferred equity return. After payments of amounts to the Class A Investors, Class C Investors will recieve their pro rata share of the amount remaining which will be distributed as provided above.
Distributions are expected to start in February 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of RSN Property Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
RSN Property Group will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Effective Gross Revenue | $1,607,276 | $1,850,047 | $1,983,481 | $2,056,741 | $2,151,822 | |
| Total Operating Expenses | ($550,071) | ($550,071) | ($569,113) | ($586,911) | ($605,954) | |
| Net Operating Income | $1,078,198 | $1,299,976 | $1,414,368 | $1,469,830 | $1,545,868 | |
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($9,156,988) | $446,430 | $638,353 | $750,077 | $691,972 | $15,817,002 |
| Investor-Level Cash Flows(2) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($2,030,000) | $74,038 | $116,436 | $136,938 | $121,074 | $3,451,074 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(2) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($50,000) | $1,824 | $2,868 | $3,373 | $2,982 | $85,002 |
(1) Class C Investors include the Sponsor and investors who invest via the RealtyMogul platform. Please refer to the Business Plan section for the delineation of different share classes.
(2) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections 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 RSN Property Group'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 | 2.00% of Purchase Price | RSN Property Group | Capitalized Equity Contribution |
| Financing Fee | 1.50% of Loan Proceeds | Walker Dunlop Debt | 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 |
| Asset Management Fee | 2.00% of Effective Gross Income | RSN PG Operations, LLC | Cash Flow |
| Property Management Fee | 3.00% of Effective Gross Income | Chamberlin & Associates | Cash Flow |
| Construction Management Fee | 5.00% of Construction Budget (Paid in 4 Equal Installments during the 12-month period after the Company Effective Date) | RSN PG Operations, LLC | 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 | Cash Flow |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Please see the Fees and Disclaimers sections 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.