A.J. Khair Construction, Inc. ('A.J. Khair') is a real estate development and construction firm that excels in creating and constructing real estate developments of all types. The firm’s expertise in both the development and construction aspects of the process allows it to identify, plan, and construct projects in a timely and cost-effective manner. A.J. Khair takes on a variety of projects ranging in size from single-family homes to large mixed-use developments that include hotels, residential units, and retail space specializing in those that create value for both investors and the community. The Company takes pride in crafting real estate developments distinguished by their high-quality design and construction. To uphold their reputation, they collaborate closely with city officials, renowned architects, and handpicked subcontractors, ensuring the delivery of extraordinary products.
At A.J. Khair, their extensive industry knowledge and dedication to clients result in comprehensive project planning from start to finish. Furthermore, the Company is actively focusing on sustainable design and construction methods, recognizing the increasing importance of these factors. They prioritize real estate development and construction that combines distinctive design with environmentally friendly practices and building materials.
Upon completion, Moss & Company will manage day-to-day operations at the Property. Founded in 1960, Moss & Company is Southern California's leader in property management, maximizing revenue growth along with expense control to increase both property value and cash flow. They actively manage over 13,000 residential units, 100 furnished apartment homes, 10 student housing properties, and over 2M SF of retail and office space in Southern California. President of Moss & Company, Chris Gray has been instrumental in building its multifamily business from 4,500 to over 14,000 units under management in the Greater Los Angeles Area.
The strategically located 0.15-acre development site is located in the heart of the burgeoning Echo Park and Silver Lake neighborhoods ideally positioned at the nexus of three of Southern California’s major arterials including I-5, US-101, and I-110 providing convenient access to the entire Los Angeles Metro region. The 43-unit Property will feature 37 one-bedroom units (including three affordable units) averaging a large 920 square feet and office space, and 6 two-bedroom units (including one affordable unit) averaging 973 square feet.
Units at Allesandro Apartments will be complemented by best-in-class in-unit and community amenities including in-unit washer/dryer, hardwood flooring, secure/covered parking, amenitized rooftop, and high-end finishes. A.J. Khair is turning its energies towards the increasingly important concept of sustainable design and building techniques as evidenced by recently completed projects such as 60-unit Solari Silverlake located less than 2 miles from the Property and 40-unit 6630 Sunset Blvd located in Hollywood.
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Avg Rent | Rent PSF |
| One Bedroom | 34 | 920 | $3,451 | $3.75 |
| One Bedroom - BMR | 3 | 920 | $1,726 | $1.88 |
| Two Bedroom | 5 | 973 | $3,553 | $3.65 |
| Two Bedroom - BMR | 1 | 973 | $1,776 | $1.82 |
| Totals/Averages | 43 | 928 | $3,304 | $3.56 |
Lease Comparables
| Solari Silver Lake | Vica Silver Lake | Milo on Morton | Dillon Silver Lake II | Dillion Silver Lake | Averages | Allesandro Apartments | |
| Distance from Subject Property | 1.8 mi | 1.7 mi | 1.0 mi | 1.8 mi | 1.8 mi | 1.6 mi | |
| Year Built | 2022 | 2021 | 1972 | 2022 | 2019 | 2011 | 2025 |
| Number of Units | 60 | 31 | 66 | 53 | 49 | 52 | 43 |
| 1 Bedrooms | Market Rent | ||||||
| $ / Unit | $2,636 | $4,181 | $2,399 | $2,708 | $2,579 | $2,901 | $3,451 |
| Square Feet | 655 SF | 718 SF | 601 SF | 629 SF | 653 SF | 651 SF | 920 SF |
| $ / SF | $4.02 / SF | $5.82 / SF | $3.99 / SF | $4.31 / SF | $3.95 / SF | $4.42 / SF | $3.75 / SF |
| 2 Bedrooms | |||||||
| $ / Unit | $3,174 | $4,800 | $3,415 | N/A | $3,458 | $3,712 | $3,553 |
| Square Feet | 977 SF | 945 SF | 744 SF | N/A | 905 SF | 893 SF | 973 SF |
| $ / SF | $3.25 / SF | $5.08 / SF | $4.59 / SF | N/A | $3.82 / SF | $3.35 / SF | $3.65 / SF |
Sales Comparables
| 689 S Catalina St | 2812 Temple Street | The LC | 552 N Hobart Blvd | HIVE Los Angeles | Olivia Apartments | Averages | Allesandro Apartments | ||
| Sale Date | Jun-23 | Apr-23 | Jan-23 | Oct-22 | Oct-22 | Mar-22 | Nov-22 | Nov-26 | |
| Sales Price | $29,614,500 | $29,800,000 | $46,500,000 | $13,700,000 | $24,250,000 | $32,100,000 | $29,327,417 | $30,101,303 | |
| Year Built | 2023 | 2023 | 2015 | 2021 | 2022 | 2021 | 2021 | 2025 | |
| # of Units | 61 | 42 | 84 | 26 | 33 | 45 | 49 | 43 | |
| Average Unit Size | 799 SF | N/A | 978 SF | 938 SF | 939 SF | 1,163 SF | 963 SF | 928 | |
| Sales Price / Unit | $485,484 | $709,524 | $553,571 | $526,923 | $734,848 | $713,333 | $620,614 | $700,030 | |
| Sales Price / SF | $608 | N/A | $566 | $562 | $783 | $613 | $522 | $754 | |
| Cap Rate | N/A | N/A | N/A | 4.01% | 4.30% | 3.50% | 3.94% | 4.50% | |
| Occupancy at Sale | N/A | N/A | 95.00% | 80.00% | 95.00% | 100.00% | 92.50% | 95.00% | |
| Distance from Subject Property | 3.5 mi | 1.3 mi | 4.7 mi | 3.7 mi | 8.0 mi | 9.5 mi | 5.1 mi |
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Class B Members (Sponsor)(1) | $3,000,000 | $69,767 |
| Class A Members(2)(3) | $5,159,614 | $119,991 |
| Century Loan | $11,700,000 | $272,093 |
| Total Sources of Funds | $19,859,614 | $461,851 |
| Uses of Funds | $ Amount | $/Unit |
| Property (includes acquisition costs) | $3,630,500 | $84,430 |
| Hard Costs | $11,500,000 | $267,442 |
| Developer Contingency | $287,500 | $6,686 |
| Developer Fee | $402,500 | $9,360 |
| Post Opening Interest Reserve (Over and Above Construction Interest Reserves with Lender) | $315,413 | $7,335 |
| Interest Carry to Date | $150,000 | $3,488 |
| Soft Costs | $2,296,414 | $53,405 |
| Construction Interest & Financing Costs | $1,160,287 | $26,983 |
| Loan Extension Costs (additional WC) | $117,000 | $2,721 |
| Total Uses of Funds | $19,859,614 | $461,851 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) Up to $2,000,000 of this amount may include friends and family equity, in which case those investors would be Class B Members. This would increase the Class B investment and decrease the Class A investment by the same amount.
(3) The Sponsor anticipates up to $3,000,000 of the Class A equity via the RealtyMogul Platform.
The expected terms of the debt financing are as follows:
- Loan Type: Construction Loan
- Lender: Century Bank
- Term: 24 Months & 100 bps at end of 24 months for single-year extension
- Loan-to-Value (LTV): 38.9%
- Loan-to-Cost (LTC): 58.9%
- Estimated Proceeds: $11,700,000
- Interest Type: Floating
- Spread Above SOFR: 2.19% (All-in Rate Floor: 7.25%)
- Interest-Only Period: Full-Term
- Prepayment Terms: No lockout or prepayment penalties. No exit fee.
- Extension Requirements: May extend if no prior incidences of default and if borrower may replenish interest reserves, to the extent necessary, to carry through the extension period
- Recourse Description: Full 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 Sponsor's use of debt.
A.J. Khair Construction, Inc. intends to make distributions from 1667 Allesandro LLC as follows:
- Pari passu all cash flow available for distribution to the Equity Investors until the Equity Investors receive a Preferred Return of 6.0%;
- Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors have received aggregate distributions equal to the aggregate unreturned equity Contributions;
- 85% / 15% (85% to Investors / 15% to Promote/Carried Interest) of all cash flow available for distribution thereafter.
A.J. Khair Construction, Inc. 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 in February 2027. Distributions are at the discretion of A.J. Khair Construction, Inc., who may decide to delay distributions for any reason, including maintenance or capital reserves.
An affiliate of A.J. Khair Construction, Inc. will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||
| Year 1 | Year 2 | Year 3 | ||
| Effective Gross Revenue | $0 | $1,334,966 | $1,833,134 | |
| Total Operating Expenses | $0 | $445,111 | $478,575 | |
| Net Operating Income | $0 | $889,855 | $1,354,559 | |
| Project-Level Cash Flows | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($8,159,614) | $0 | $0 | $16,454,010 |
| Investor-Level Cash Flows(2) | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($3,060,000) | $0 | $0 | $5,645,011 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(2) | ||||
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Net Cash Flow | ($50,000) | $0 | $0 | $92,239 |
(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including affiliates of A.J. Khair Construction, Inc.
(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 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 A.J. Khair Construction, Inc.'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 | 1.00% of Purchase Price | A.J. Khair Construction, Inc. | Capitalized Equity Contribution |
| Financing Fee | 0.75% of Loan Proceeds | A.J. Khair Construction, Inc. | Capitalized Equity Contribution |
| Guarantee Fee | 1.50% of Loan Proceeds | Demitri Samaha and Mousa Mesho | Capitalized Equity Contribution |
| Disposition Fee | 0.50% of Gross Sales Price | A.J. Khair Construction, Inc. | Sale Proceeds |
| 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) |
| Consulting Fee | 3.00% of Class A funds raised by Sponsor | Jones Lang LaSalle Americas, Inc. | Capitalized Equity Conrtibution |
| Recurring Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Asset Management Fee | 1.25% of Effective Gross Income | A.J. Khair Construction, Inc. | Cash Flow |
| Property Management Fee | 4.00% of Effective Gross Income | Moss Management Services, Inc. | Cash Flow |
| Developer Fee | 3.50% of Hard Costs | A.J. Khair Construction, Inc. | 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 below for additional information concerning fees paid to RM Technologies, LLC.
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.