Peachtree 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 $3.8 billion into real estate equity and fixed-income transactions with a cost basis of more than $10.3 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.
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
| 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.
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.