We run extensive background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to never allowing a sponsor with a criminal history / any securities related issue to use the platform, we may also turn down sponsors due to poor reference checks even if background and criminal checks come back clear.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent. When an investor makes an investment with unaffiliated 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 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.
Our controls include visiting every property (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.
We have robust quality controls with detailed checklists and a review of third-party reports.
The property is located in the city of Jackson, Tennessee in Madison County, 70 miles east of Memphis and 110 miles west of Nashville. Jackson is Madison County's largest city, the second-largest city in West Tennessee after Memphis, and the state of Tennessee’s eighth-largest city. The population of Jackson is approximately 68,000,1 with the Jackson metropolitan statistical area (MSA) at a population of more than 180,000.2 The city serves as a regional hub for more than 300,000 people in West Tennessee.3
The property’s excellent highway visibility, proximate location to the I-40 exit, and abundant nearby retail/restaurant offerings position the property to continue capturing transient and corporate demand as well as insulating performance from new supply additions in the Jackson area.
Healthcare is Jackson's largest industry. The anchors of the medical community are West Tennessee Healthcare, Jackson-Madison County General Hospital and West Tennessee Healthcare North Hospital. West Tennessee Healthcare — the largest hospital system between Memphis and Nashville — is a comprehensive health care system serving a 17-county area of West Tennessee.4
Jackson is a key shipping and manufacturing hub, housing major companies like Delta Faucets, Toyota, Kellogg’s, and Pinnacle Foods Group. Major companies continue to develop manufacturing facilities in the Jackson area, including Georgia-Pacific with a facility scheduled to open in 2024 and Ford Motor Company with its Blue Oval City mega campus slated to start operations in 2025.
Peachtree
Peachtree Hotel Group is a privately held, fully integrated real estate investment management, lending, and servicing platform. The company owns, operates, manages and develops hotels, hotel- and other commercial real estate-related assets throughout the United States. Founded in 2008 as a family office, Peachtree has invested over $3.0 billion into real estate equity and fixed income transactions with a cost basis of more than $9.0 billion. The firm has approximately 250 employees outside hotel operations.
Peachtree Hospitality Management, a division of Peachtree Group, is an experienced hotel management company that creates loyalty across all stakeholders — associates, guests and owners.
Peachtree Hospitality Management delivers dedicated hotel management services for Peachtree Group’s own portfolio and extends that expertise to a growing number of owners as a third-party hotel manager. Their proprietary systems and processes seek to maximize financial performance and value of every asset, deliver efficiencies, and enable hotel teams to provide guests with an uncommon customer experience.
In 2020, Peachtree Hospitality Management ranked #40 on Hotel Business’ top hotel management companies. Peachtree Hospitality Management currently manages the performance of 90 hotels comprising 26 brands with more than 11,000 keys located in 22 states.
https://www.peachtreegroup.com/-
Greg FriedmanCEO
Mr. Friedman is the Chief Executive Officer of Peachtree Group and has more than 22 years of hospitality experience with an emphasis on deal-structure and financing. Mr. Friedman has successfully led Peachtree Group in more than $5 billion in hotel acquisitions, investments and development since cofounding the company. He formerly was Senior Vice President of Business Development for Specialty Finance Group, LLC (“Specialty Finance Group”), a direct lender providing hotel first mortgage and FF&E financing, where he originated more than $2 billion of hotel debt. Previously, Mr. Friedman was Vice President of Business Development for GMAC Commercial Mortgage – Asset-Backed Lending Division. During his six-year tenure, he originated, closed and funded more than 300 hospitality FF&E financing transactions with an aggregate capital structure exceeding $10 billion. Mr. Friedman holds a Bachelor of Arts in Biology from the University of Texas at Austin.
The award-winning Hilton Garden Inn is Hilton Worldwide’s second-largest brand, with more than 860 hotels in 49 countries and territories around the world.13 The brand provides business and leisure guests upscale, affordable accommodations and unexpected amenities for an experience that is “Simply on Another Level.” The Hilton Garden Inn Promise affirms the brand’s goal to make each guest’s stay better and brighter, starting with the first hello.
As a recognized food and beverage (F&B) leader, Hilton Garden Inn serves locally sourced food and beverage at its full-service restaurants and bars, featuring cooked-to-order dishes, handcrafted cocktails, and on-trend small plates. Hilton
Honors members who book directly through preferred Hilton channels have access to instant benefits.
The brand’s efficient, scalable design, along with a focus on providing only those features travelers truly value, has already proven successful in the United States and has helped fuel growth globally.
Being a member of the Hilton brand family, Hilton Garden Inn leverages Hilton’s high-performing reservation system and Hilton Honors loyalty program to source a high volume of guests at favorable rates. The brand belongs to the Smith Travel
Research (STR) Upscale scale and key competitors include Courtyard by Marriott and Hyatt Place.
Hilton Garden Inn offers a complete package of unexpected extras designed to make guest stays even brighter. Typical amenities include:
- Free Wi-Fi
- Digital check-in/key
- Work area with flexible ergonomic desk chairs
- Business center with printing capabilities
- Restaurant
- Mini refrigerator
- Microwave
- Swimming pool
- Dry cleaning/laundry service
- Meeting Rooms
- Fitness Center
Market Overview
The population of Jackson is approximately 68,000,6, with the Jackson Metropolitan Statistical Area (MSA) at a population of more than 180,000.7 As a regional hub of over 300,000 people, Jackson is well connected.8 The nine-county regional workforce is fueled by six colleges and universities and a state technology center in Jackson, plus more in the region. In addition to developing talent, Jackson draws a top-ranked labor pool from major cities throughout the nation.8 A variety of entrepreneurs, creative professionals, and technical specialists in manufacturing, IT, and healthcare are calling Jackson home because of the quality of life, excellent schools, and low cost of living.8
Healthcare
West Tennessee Healthcare’s 642-bed tertiary care center is the only tertiary care hospital between Memphis and Nashville. It serves a 17-county area of rural West Tennessee.9 Approximately 400,000 people reside within its service area. Approximately 7,000 employees make up West Tennessee Healthcare, the majority of whom staff Jackson-Madison County General Hospital.9 Jackson-Madison County General Hospital offers the only open-heart surgery program in rural West Tennessee, allowing patients in rural West Tennessee to travel to Jackson for their cardiovascular care rather than to a larger city.9
Shipping and Manufacturing
From 2011 to 2020, manufacturing companies have invested more than $1.7 billion and created more than 6,900 jobs in the Jackson area.10 Jackson currently serves as a shipping and manufacturing hub for seven Japanese manufacturing companies, including Toyota and Pacific Industries, as well as several other companies, like Delta Faucets and Kellogg’s.
Ford’s Blue Oval City 6-square mile campus is being built in Stanton, Tennessee. Stanton, with a population of 400, is 40 miles from Jackson. The $5.6 billion facility is the largest investment ever in Tennessee.11 Ford expects to create 6,000 new jobs at the plant with a focus on innovating how EV vehicles and batteries are manufactured. New automotive plants attract suppliers and supporting businesses. For example, tier-one supplier Magna International announced plans to build three facilities employing 1,300 workers at a cost of $790 million. Total direct and indirect employment for Blue Oval City could reach 27,000,11, and Jackson, as the largest city in close proximity, is poised to benefit.
Education
The Jackson area boasts six accredited four-year and postgraduate institutions, including a top-tier university, driving demand for accommodations when visiting the schools or students.
- Bethel University
- Fred-Hardeman University
- Lane College
- Union University
- The University of Memphis – Lambuth Campus
- UT Martin
Leisure & Retail
The Columns shopping center is Jackson's largest retail space at more than three million square feet, comprised of more than 40 retail stores and restaurants.12 The Columns Phase III expansion is underway with plans for mixed-use real estate, including apartments and senior living.12 The Ballpark at Jackson hosts the Jackson Rockabillys and features 30 home games. In addition, it is frequently used for other professional sporting events, as well as concerts. The West Tennessee Sportsplex is a 70-acre travel baseball and softball complex used by middle school, high school, and college teams.
6 https://jacksontn.com/economic/#content-Indicate
7 Woods & Poole Economics , Inc.
8 https://www.jacksontn.gov/business/demographics/
9 https://www.wth.org/locations/jackson-madison-co-general/
10 https://jacksontn.com/economic/#content-Indicate
11 https://tennesseelookout.com/2021/10/20/legislature-approves-fords-blue-oval-city-largest-investment-in-state-history/
12 https://www.jacksonsun.com/story/news/2021/04/05/columns-phase-iii-bring-more-jobs-living-facilities-area/7069914002/
| Sources | Amount | Percent of All Funds |
| Interests Being Offered | $26,845,615 | 100.00% |
| Total Sources of All Funds | $26,845,615 | 100.00% |
| Uses | Amount | Percent of All Funds |
| Acquisition Costs(1) | ||
| Real Estate Acquisition Price(2) | $21,000,000 | 78.23% |
| Trust Reserves(3) | $875,000 | 3.26% |
| Master Lease Inducement Payment Funding(4) | $705,000 | 2.63% |
| Acquisition Fee(5) | $587,050 | 2.19% |
| Closing Costs/Legal/Title Insurance | $226,275 | 0.84% |
| Depositor Bridge Capital Costs(6) | $794,574 | 2.96% |
| Total Acquisition Costs | $24,187,899 | 90.10% |
| Syndication Costs | ||
| Selling Commissions | $1,610,737 | 6.00% |
| Due Dilidence Allowance | $268,456 | 1.00% |
| Managing Broker-Dealer Fee | $510,067 | 1.90% |
| Organization & Offering Expenses(7) | $268,456 | 1.00% |
| Total Syndication Costs | $2,657,716 | 9.90% |
| Total Uses | $26,845,615 | 100.00% |
(1) The Trust will pay or reimburse some or all of these amounts to affiliates of the Trust, as described in this Memorandum.
(2) The Purchase Price for the Property was $21,000,000. $1,100,000 of the Purchase price was credited to the Trust by the Seller and deposited into a reserve account to be used exclusively for the PIP Work.
(3) The Trust will establish and maintain Trust Reserves to make funds available for capital expenditures and unanticipated costs relating to the Property and the Trust.
(4) The Master Lease Inducement Payment consists of initial funding of amounts the Trust is required to pay the Master Tenant which shall be used to provide working capital to the Master Tenant, to reimburse the Master Tenant for certain start-up costs incurred in connection with entering into the Master Lease and consists of the following: (a) the Franchise Fee Reimbursement of $200,000; (b) $172,746, to capitalize the Master Tenant with respect to certain operating prorations funded at the execution of the Master Lease; and (c) the Master Tenant Reserve of $332,254.
(5) The Trust will pay the Sponsor or an affiliate an acquisition fee equal to 2.8% of the total Purchase Price of the Property for its services in acquiring the Property.
(6) The Trust has and will incur carry costs relating to funds advanced by the Depositor to initially purchase one hundred percent (100%) of the Interests. The Depositor Bridge Capital Costs reflect the anticipated cost to the Depositor of the various sources of financing required for the Trust to acquire the Property. To the extent the actual Depositor Bridge Capital Costs are greater than this amount, the Sponsor will absorb such additional costs, and to the extent they are less than this amount, the Sponsor will retain the excess on a nonaccountable basis.
(7) The Sponsor anticipates that the organizational and offering expenses for the Offering will be $268,456. Any additional costs in excess of such amount will be paid by the Sponsor. Unused funds, if any, will be retained by the Managing Broker-Dealer.
The Investors will be entitled, based on their respective Interests, to monthly cash distributions, net of amounts required to pay and reimburse the Trustees, and to retain amounts necessary to pay anticipated ordinary current and future expenses of the Trust. Such cash flow will be distributed on a monthly basis. Amounts retained may be invested only in certain short-term government obligations or certificates of deposit in banks or trust companies having a minimum stated capital and surplus of $50,000,000.
Certain fees and compensation will be paid over the life of the transaction; please refer to Peachtree'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 |
| Reimbursement of Offering and Organizational Expenses | The Trust will reimburse the Sponsor, its affiliates and certain third parties for offering and organizational expenses in an amount equal to 1.0% of the gross cash proceeds of the Offering of the Offering. | ||
| Selling Commissions | The Trust will pay the Managing Broker-Dealer Selling Commissions of up to 6.00% of the gross cash proceeds of the Offering. The Managing Broker-Dealer may reallow (pay) the full amount of the Selling Commissions to broker/dealers who are members of FINRA. | ||
| Managing Broker-Dealer Fee | The Trust will pay the Managing Broker-Dealer a fee, equal to 1.90% of the gross cash proceeds of the Offering, for serving as the Managing Broker-Dealer. | ||
| Acquisition Fee | The Trust will pay the Sponsor or an affiliate an acquisition fee equal to 2.8% of the total Purchase Price of the Property $21,000,000 for its services in acquiring the Property. | ||
| 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 | The Trust will pay the Asset Manager an annual asset management in the amounts provided in the Asset Management Agreement. The Trust will pay the Asset Manager an asset management fee of $100,000 for the period through December 31, 2024, $100,000 for calendar year 2025, $120,000 for calendar years 2026 and 2027, $130,000 for calendar years 2028 and 2029 and $140,000 for calendar years 2030 and 2031. The asset management fees may be deferred or waived in whole or in part. | ||
| Property Management Fee | |||
| 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.
Sponsor’s Projects and Targets
*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates. RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates. There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate. The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance. There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets. Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.
No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC or it Affiliates
The information on this Page, including the 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”) was provided by the Sponsor or an affiliate thereof. RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. No part of the information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s Investment Documents. The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.
Sponsor’s Information Qualified by Investment Documents
The Information on this Page, including of the principal terms of the Sponsor’s offering, 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 each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment. The information on this page should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between the information on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents. The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.
Risk of Investment
This real estate investment is speculative and involves substantial risk. There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved. In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses. 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. Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.
Risk of Forward-Looking Statements
Forward-looking statements are found here and in the applicable Investment Documents and may include words like “expects,” “intends,” “anticipates,” “estimates” and other similar words. These statements are intended to convey the Project Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please see the applicable Investment Documents for disclosure relating to forward-looking statements. All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents. Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.
Sponsor’s use of Debt
A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all. All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the risk of loss. If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.
In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.
Sponsor’s Offering is Not Registered
The interests offered by the Sponsor 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 interests will not be registered under any state securities laws in reliance on exemptions from registration. Such 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 RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act. Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.
RM Technologies, LLC Fees and Conflicts
RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution. A portion of the offering proceeds may be allocated as a reserve to ensure timely payment of the ongoing licensing fees for RM Technologies’ Administration Solution. For the avoidance of doubt, the Administration Solution Fee is not due with respect to any quarter until the Administration Solution has been provided by RM Technologies and without regard to any amounts on reserve for the payment of such fees. An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor. The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering. RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
No Investment Advice
None of RM Technologies nor any affiliate are registered as a broker, dealer, investment adviser, or funding portal (except with respect to RM Adviser, LLC, which has no involvement in the transactions to be consummated hereby or contemplated herein and solely for the purposes hereof, shall not be deemed an affiliate or RM Technologies). They do not provide investment advice or recommend the purchase of any securities that are the subject of this agreement or the Sponsor’s offering with respect to the Project. Project Sponsor’s use of the Platform, including Project Sponsor’s license to utilize the Platform and any related technology, software and supporting services, Project Sponsor’s posting of offering documents and all related information on the Platform does not constitute the approval of or endorsement by RM Technologies or any of its affiliates of Project Sponsor’s securities offering with respect to the Project or signify the suitability thereof in any manner.
For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.