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.
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.
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.
We have formalized processes and checklists for every private placement deal listed on the platform.
Demand for Industrial Real Estate is on the rise as U.S. companies look to ensure uninterrupted supply chains by adding more factory space nationwide. This strategy is growing as companies look to diversify their product sources, protect intellectual capital, and take advantage of government incentive programs.
The portfolio is 100% net leased to high-quality tenants. The weighted average remaining lease term of the portfolio is greater than 10 years. The Sponsor believes single-tenant net lease properties offer the benefit of stable cash flows from long-term leases with investment grade and other creditworthy tenants.
The Sponsor has acquired and syndicated approximately $680 million of single-tenant net lease properties for their proprietary DST offerings, with equity issued in excess of $370 million for 26 FSXchange-sponsored DST offerings.
Four Springs TEN31 Xchange
Four Springs Capital Market's mission is to lead with innovation and integrity in the realm of real estate exchanges. They aim to empower partners and clients through education, provide top-tier investment opportunities, and uphold the highest standards of compliance and due diligence. Their objective is to be the go-to resource and partner for professionals navigating the 1031 Exchange and replacement property landscape.
Since entering the 1031 Exchange market in 2014, Four Springs has successfully completed over 1000+ exchanges, involving more than $800 million in replacement properties and collaborating with over 3000 professionals. Their platform and approach is their strength. Four Springs works closely with a wide range of professionals involved in the 1031 Exchange process, providing them with the tools and knowledge necessary to navigate this complex field.
https://www.fscap.net/Prior DST Program Statistics(1)
- DST Programs: 27
- Occupancy: 100%
- Remaining Term(2): 11.99 years
- Leasable SF: 5,754,652 SF
- Total Properties: 65
- States: 26
- Tenant Industries: 28
- Investment Grade(2)(3): 49.5%
- Total Annual Base Rent(2): $43,805,476
- Average Building Age(2): 9.17 years
- Aggregate Offering Size(4): $832,004,366
- Property Types:
- Industrial: 74.8%
- Medical: 19.4%
- Retail: 5.8%
(1) Statistics represent all historical FSC-sponsored DST offerings as of the initial date of syndication.
(2) Aggregate Annual Base Rent ("ABR") as of the initial date of syndication. ABR is the amount equal to the monthly Base Rent due from such Tenants multiplied by 12.
(3) Tenants or lease guarantors, or parents of tenants of lease guarantors, that have an investment grade credit rating from a major credit rating agency or have a senior unsecured obligation that has been so rated. An investment grade credit rating refers to a published long-term credit rating of a Baa3/BBB- or above from all of Moody’s Investor Services, Inc., Standard & Poor’s Rating and AM Best.
(4) Including Debt and Equity Raised.
As of 1/01/2024
FSC Industrial Portfolio 27, DST (the “Parent Trust”) is a master-leased DST offering comprised of a diversified portfolio of 22 industrial properties net leased to creditworthy tenants in 10 industries. The investment objective of the Parent Trust is to provide monthly cash distributions and provide the potential for capital appreciation.
Tenant Overview
Tenant | # of Properties | Property Location | Aggregate Annualized Base Rent(1)(2) | % of Aggregate Annualized Base Rent(1)(2) |
Abrasive Technology | 2 | IL, OH | $648,067 | 7.60% |
Brenntag | 1 | OH | $828,600 | 9.70% |
Tech-24 | 2 | IL | $343,879 | 4.00% |
Columbia Gas | 1 | OH | $222,000 | 2.60% |
Continental Services | 4 | MI | $1,494,200 | 17.50% |
Domino's | 1 | MD | $890,400 | 10.40% |
Equipment Share | 3 | AZ, OR, PA | $708,180 | 8.30% |
International Paper | 1 | NE | $437,110 | 5.10% |
LiquiBox | 2 | FL, OH | $516,819 | 6.00% |
Mighty Distributing | 1 | TN | $751,717 | 8.80% |
NYSEG | 1 | NY | $319,805 | 3.70% |
Super Products | 1 | IN | $385,993 | 4.50% |
A. Stucki Company | 1 | OH | $726,776 | 8.50% |
MEDCO | 1 | MO | $282,256 | 3.30% |
Total | 22 | $8,555,801 | 100% |
(1) Annualized Base Rent ("ABR") is the amount equal to the monthly Base Rent in May 2023 due from such tenant multiplied by 12.
(2) Aggregate Annualized Base Rent is the sum of all monthly Base Rents due from the Tenants in the Offering multiplied by 12.
Please refer to the FSC Industrial Portfolio 27 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.
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.