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Confidentiality Agreement
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By clicking the ‘I Agree’ button below:
Funded
Estimated Hold Period 3 years
Estimated First Distribution 4/2024
FUNDED 100%
...
View Our Due Diligence Process
Investment Returns: Discerning investors don't rely on a single projected return metric as a basis to invest. Rather, when assessing a potential investment, we encourage you to evaluate all information provided by a sponsor including the business plan, assumptions, and risk factors which can be found in the relevant offering documents. This approach is consistent with our requirements as a broker-dealer, which prohibit us from communicating projected returns.
Offered By
Highlands Residential
Investment Strategy Development
Investment Type Equity
Minimum Investment 5000
Overview
Ground-up development of a 152-unit multifamily active adult living community in suburban Atlanta.
Market

This development will target one of the fastest growing housing segments. As households age, there is a demographic wave of people becoming empty nesters and entering the 55+ population. Increasing number of baby boomers and an increasing number of renters in this demographic equates to a secular shift in demand for age-restricted rental housing.

Partner

The Real Estate Company is an experienced developer of Active Lifestyle, senior living communities which cater to residents 55 and older. The principals have $622 million in their current portfolio with an average stabilized occupancy of 98% in their Active Adult communities.

Location

The South Hall / North Gwinnett Market Area’s housing costs and demographics support the demand for the site. The resident base for The Chateau is expanding and getting wealthier.

Property at a glance
Construction Start Date February 2021
# of Units 152
Rentable SF 141,768
# of Buildings 1
Parking Ratio 1.30 spaces per unit
Total Project Cost $30,552,959
Investment Highlights
The exit strategy is to sell the Property in three years at an expected cap rate of 5.50%.
Highlands Residential expects to close on initial investments in the first quarter of 2021 and to complete its construction of the Project in the fourth quarter of 2022, aiming to reach a point of stabilization (where roughly 95% of the units are leased or rented) approximately 16 months after the completion of construction.
The amenities and services provided by Highlands Residential are targeted specifically towards the active adult who wants to stay engaged in life. The Chateau’s rents are positioned to be less expensive than Pre-Independent communities.
The Sponsor has an extensive track record in development and operation of Active Adult Residential properties. The principals have $541 million in their current portfolio with an average stabilized occupancy of 97%. Currently, they have $119 million in communities under development and show a realized equity multiple of 2.01x in sold development assets thus far.
Management
Cumulative Distributions

Highlands Residential

Highlands Residential (the "Sponsor") was founded by Dave Loeffel, who has over 15 years of experience in development. The Sponsor represents a partnership between Dave Loeffel and Robert Lachapelle - Vice Chairman at CBRE, Tim Schrager - CEO and founder of Perennial Properties, and Aaron Goldman - President of Perennial Properties.

The Sponsor is an experienced developer of Active Lifestyle, senior living communities which cater to residents 55 and older. The Principals have $777 million in their current portfolio (Aggregate TDC of $561mm) with an average stabilized occupancy of 97%. Of this, they have $76 million in communities under development and show a realized equity multiple of 2.78x in sold development assets thus far. 

https://www.highlandsresidential.com
  • Dave Loeffel
    Founder/CEO
  • Aaron Goldman
    GP Investor and Strategic Advisor, Development
  • Tim Schrager
    GP Investor and Strategic Advisor, Operations
  • Robert LaChapelle
    GP Investor and Strategic Advisor, Finance
Dave Loeffel
Founder/CEO

Dave Loeffel is the Founder and CEO of Highlands Residential, a development company committed to providing real estate where people make amazing memories, thrive in the present, and dream of the future. Dave holds an MBA from Emory’s Goizeuta Business School and a BS in Industrial Engineering from Georgia Institute of Technology and is a CFA charterholder. After nearly two decades in real-estate development with over 22 communities (16 as an owner and partner) for Walton Communities, Dave knows what drives successful design. His experience has driven him to provide a product that caters to residents 55 and older. Dave wants to help define this asset class to provide communities to the empty nester clientele.

Aaron Goldman
GP Investor and Strategic Advisor, Development

Aaron Goldman is the President and co-owner of Perennial Properties, Inc., a development, investment, and management firm focused on multi-family rental housing accompanied by retail establishments. Raised in Milwaukee, Aaron is a graduate of the University of Wisconsin Real Estate Program and served on the Wisconsin Real Estate Alumni Association Board of Trustees. Perennial’s existing portfolio is centered in Atlanta’s intown neighborhoods, including West Midtown, Virginia Highland, Morningside, Piedmont Heights, Emory, Buckhead, Inman Park, and the Old Fourth Ward. Aaron has executed successful subdivision developments, condominium conversions, and office/retail developments, comprising nearly 200 single-family home sites, 5,000 multiple dwelling units, and 200,000 square feet of commercial space.

Tim Schrager
GP Investor and Strategic Advisor, Operations

Tim Schrager founded Perennial Properties, Inc. in 1988. This Atlanta-based real estate development and property management company started as a one-man shop, where he learned the business from the ground up, building and renovating multi-family projects in Atlanta’s intown neighborhoods. In three decades, Perennial has been responsible for the development of numerous multi-family communities as mixed-use developments in Georgia and in Florida. Tim received a B.S. degree in Real Estate Finance from the University of Southern California.

He is currently involved in several Atlanta community organizations, including the Atlanta Contemporary Art Center (Past President – Board of Trustees); the Jewish Federation of Greater Atlanta (Annual Campaign Major Gift Fundraiser); Atlanta Apartment Association (Past Chairman – Board of Directors, and 2009/2010/2012 Co-Chair of the AAA’s Annual Food-A-Thon benefiting the Atlanta Community Food Bank).

Robert LaChapelle
GP Investor and Strategic Advisor, Finance

Robert LaChapelle is the Vice Chairman for CBRE's Debt and Structured Finance Group in Atlanta, Georgia. His investment in Highlands Residential is in his personal capacity and not on behalf of CBRE. Robert holds a BS in business management from Tulane University.

Robert has over 33 years of experience within the multi-family real estate industry. Robert was awarded the Coldwell Colbert Circle Award, recognizing the top three percent of commissioned salespeople worldwide in 2002, 2003, 2005, and 2008 through 2016, and has been among the top 25 producers within the entire CBRE platform.

Robert LaChapelle's investment in and association with Highlands Residential is entirely personal and has no connection with CBRE, Inc. or Robert LaChapelle's employment with CBRE.

Track Record

Property City, State Asset Type Acq Date Units or SF Purchase Price Current Occupancy
Myrtle Street Apartments, LLC Atlanta, GA Value Add - Multifamily 11/17/1997 32 $553,000 95%
Highland View Apartments Atlanta, GA New Construction - Multi 4/15/1998 110 $6,382,900 95%
Monroe Place Apartments Atlanta, GA New Construction - Multi 9/30/1998 241 $16,926,034 96%
Highland Walk Apartments Atlanta, GA New Construction - Multi 1/7/2002 350 + 6,000 SF retail $29,500,000 94%
N. Highland Steel Atlanta, GA New Construction - Multi 5/2/2005 239 + 30,000 SF retail $34,000,000 92%
The Telephone Factory Lofts Atlanta, GA Value Add - Multifamily 10/31/2013 65 $9,750,000 97%
The Brady Apartments Atlanta, GA New Construction - Multi 11/1/2013 230 $33,000,000 90%
The Arya on Peachtree Atlanta, GA New Construction - Multi/comm/retail 6/13/2014 282 + 17,000 commercial $91,000,000 In Lease-Up
755 North Apartments Atlanta, GA New Construction - Multi 9/1/2014 227 $28,750,000 97%
Ella at East Lake Atlanta, GA New Construction - Multi 12/19/2019 236 + 7,700 commercial $43,300,000 In Lease-Up
The Legacy at Walton Lakes (55+) Atlanta, GA New Construction - Multi 8/21/2008 125 $15,176,000 98%
The Legacy at Walton Village Ph 2 (55+) Marietta, GA New Construction - Multi 2/19/2010 78 $9,900,000 98%
The Legacy at Walton Oaks Ph 1 (55+) Augusta, GA New Construction - Multi 9/30/2010 75 $9,560,000 98%
The Legacy at Walton Oaks Ph 2 (55+) Augusta, GA New Construction - Multi 11/12/2014 62 $9,940,000 98%
Walton Oaks Ph 1 Augusta, GA New Construction - Multi 11/14/2011 75 $10,323,000 98%
Walton Oaks Ph 2 Augusta, GA New Construction - Multi 11/12/2013 106 $16,741,000 98%
The Legacy at Walton Overlook (55+) Acworth, GA New Construction - Multi 6/16/2011 108 $13,258,000 98%
Walton Renaissance on Henderson (62+) Marietta, GA Sub-Rehab - Multifamily 9/1/2012 150 $20,200,000 98%
Legacy at Walton Heights (55+) Marietta, GA New Construction - Multi 8/8/2012 100 $13,535,000 98%
The Legacy at Walton Mill (55+) Hiram, GA New Construction - Multi 12/18/2013 105 $13,962,000 98%
The Legacy at Walton Park (55+) Acworth, GA New Construction - Multi 8/29/2014 100 $15,870,000 98%
Walton Ridge Austell, GA New Construction - Multi 8/31/2016 71 $14,000,000 98%
The Legacy at Walton Green (55+) Augusta, GA New Construction - Multi 11/15/2016 80 $14,405,000 98%
Walton Summit Phase 1 Gainesville, GA New Construction - Multi 12/8/2016 84 $14,514,000 98%
Legacy at Walton Summit (55+) Gainesville, GA New Construction - Multi 10/10/2017 90 $14,816,000 98%
Hardy Springs by Highlands Residential Dallas, GA New Construction - Multi 2/16/2020 149 $28,798,000 In Lease-Up
The Chateau by Highlands Residential Braselton, GA New Construction - Multi 8/3/2021 152 $33,122,222 Under Construction
Total         $561,282,156 97%

The above bios and track record were provided by Highlands Residential and have not been independently verified by RealtyMogul.

The Chateau by Highlands will be a top quality, tangible asset that fills an unprecedented need for active adult housing. The asset, which will be delivered in 2022, is just 40 miles northeast of downtown Atlanta, in the fastest growing active adult lifestyle destination in the metropolitan area. The Chateau by Highlands will provide Senior Living without the expense of medical, meals, or maids. Residents will save more than $20,000 per year compared to alternatives. This allows our community to attract a broader and deeper market which will be a slightly younger demographic: empty nesters still “on the go” who are not dependent on the community for all their social and entertainment needs.

The Chateau offers a unique living experience for younger Seniors to join a retirement community without the high cost of a full nursing staff and meal plan. The Real Estate Company will begin construction in April 2021 and complete building in December 2022 - for a total construction timeline of 20 months. Units will be delivered in phases, and preleasing will begin in March 2022 four months prior to units becoming available. Total lease up time is expected to be 24 months at a rate of 6 units per month - seeing 95% stabilization by March 2024. The asset will be sold upon stabilization at the end of year 3 for approximately $40,550,000 ($266,775 per unit) at a projected reversion cap rate of 5.50%. Lender appraisal shows an exit value of $42,300,000.

Estimated Schedule:

April 2021 - Construction Begins

March 2022 - Begins Pre-Leasing First Units

June 2022 - Move-in begins

December 2022 - Construction Completes

March 2024 - Asset Stabilization

April 2024 - Sale of Asset

Development Budget:

Land Cost $1,939,000 $12,757
     
Soft Costs    
Architecture & Engineering $818,000 $5,382
Legal and Title $346,794 $2,282
Marketing $270,000 $1,776
Financing $220,750 $1,452
Impact Fees $430,196 $2,830
FF&E $440,000 $2,895
Taxes and Insurance $262,142 $1,725
Total Soft Costs $2,787,982 $18,341
     
Other Costs    
Developer Fee $1,160,000 $7,632
Net Interest/Lease Up Expense $760,977 $5,006
Total Other Costs $1,920,977 $12,638
     
Hard Costs    
Total Construction Hard Costs $22,005,000 $144,770
Contingency (8%) $1,900,000 $12,500
Total Construction Hard Costs $23,905,000 $157,270
     
Grand Total $30,552,959 $201,006

These amounts are subject to change at the discretion of the Real Estate Company.

 

Property Information

The Project will be designed and constructed as a three-story, attached building of 152 residential units with open air breezeways and approximately 145,000 net rentable square feet. Highlands Residential has designed the building so that the exterior and interior finishes are architecturally complementary to the surrounding area. The community will have multiple amenities, inclusive of a landscaped courtyard, BBQ areas, a personal training studio, library, game room, and a shared common space to host large gatherings and community get-togethers. Each unit will range in size from approximately 750 square feet to 1,230 square feet. Each unit will have 1 or 2 bedrooms, 1 or 2 baths, and a private, covered balcony or sunroom. The amenity package, interconnected living, and social community will make an easy transition for people moving from single family homes and offer a substantial upgrade for people moving from a traditional, non age-exclusive apartment.

Unit Type # of Units Avg SF/Unit Avg Rent (Stabilized)  Avg Rent per SF
1x1 (A1) 33 773 $1,492 $1.93
1x1 (A2) 39 807 $1,578 $1.96
1x1 (A3) 17 993 $1,858 $1.87
2x2 (B1) 34 1,040 $1,935 $1.86
2x2 (B2) 18 1,102 $2,028 $1.84
2x2 (B3) 5 1,229 $2,205 $1.79
2x2 (B4) 6 1,094 $2,013 $1.84
Total/Averages 152 933 $1,761 $1.89
Comparables

Competitive Landscape

There are several active adult communities for sale within a short driving distance of the Property, including:

- Del Webb Chateau Elan - 784 active adult homes (200 built and occupied and 120 additional homes sold)

- Cresswind at Twin Lakes - 1,300 active adult homes planned, not yet complete

- Village at Deaton Creek - 1,100 active adult homes.

The Chateau by Highlands will provide 152 rental units as an alternative to the 2,000 or more active adult for sale units currently in the market. The Chateau will benefit from the amenities that drew the active adult sale communities to the area and the amenities that have subsequently been built to target the growing active adult population.

The Chateau expects to compete against these and other independent living offerings by leveraging amenities available at nearby locations in lieu of manufacturing amenities on-site. By doing that, Highlands Residential intends to offer its customers the same experience as is available at competing sites but at a cost that will be approximately $20,000 less per year than traditional independent living.

Nearby amenities that will be available to residents of the Chateau include (i) 45 holes of golf at Chateau Elan Golf Club, (ii) 18 holes of golf at Reunion Country Club, located across the street from the Chateau, (iii) nearby Lake Lanier, metro Atlanta’s largest lake, less than 30 minutes from The Chateau, and (iv) the accommodations, spas, shops and resort activities at the Chateau Elan Resort.

Additional sale and lease comp studies performed by Highlands Residential are available under "Offering Documentation".

Location Information

The Property is located in the town of Braselton, Georgia, which is in Hall County, roughly 40 miles northeast of the City of Atlanta. The surrounding area is a mix of rural and suburban neighborhoods and includes access to Lake Lanier, the largest lake in the metro Atlanta area. Lake Lanier is a reservoir lake, formed in 1956 with the completion of Buford Dam on the Chattahoochee River. The lake encompasses 38,000 acres or 59 square miles of water, features 692 miles of shoreline, and the Lanier Islands and Margaritaville resorts. The lake provides swimming, boating and fishing opportunities and the shoreline features many luxurious private residences.

Market Overview

The market, Gainesville, is a booming economy, producing nearly 2% to 4% year over-year job growth most quarters in the 2010s, giving it solid tailwinds across the board. Hall County lies along one of Atlanta's primary paths of growth, and its populace has access not only to prominent local industries, such as poultry processing and Lake Lanier-related tourism, but also to a spectrum of jobs right down I-985 in the Atlanta metro. These attributes have led to a near doubling of the metro's population over the past 20 years, and over the next five years, the rate of growth could nearly triple that of the nation. Gainesville is that rare market where manufacturing employment still dominates the metro, with more than a fifth of jobs in the sector. Gainesville certainly caters to the small-business owner, where 93% of its companies employ fewer than 50 employees. Located about 50 miles northeast of Atlanta, the Gainesville metro is firmly in the economic orbit of one the largest economies in the South.

Per CoStar, the vacancy rate in the Oakwood/Flowery Branch Submarket has compressed substantially over the past four quarters, and at 3.8%, is slightly below the long-term average. While developers have been active in recent years, nothing has delivered over the past 12 months. Construction has started back up, and about 860 units are underway, which will substantially expand the existing inventory. Rents have increased by an impressive 5.8% over the past year, which significantly exceeds the average annual growth of 3.2% over the past decade.

Sources: ESRI Data, Axiometrics, CoStar

Gallery
current
current
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Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Construction Loan $19,500,000 128,289
RM Investor Equity $5,000,000 32,895
Other LP Equity $6,052,959 39,822
Total Sources of Funds $30,552,959 201,006
           
Uses of Funds   $/Unit
Land Purchase Price $1,939,000 12,757
Developer Fee $1,160,000 7,632
Hard Costs $23,905,000 157,270
Construction Period Interest $368,191 2,422
Soft Costs (1) $2,787,982 18,341
Initial Operating Deficit $392,787 2,584
Total Uses of Funds $30,552,959 201,006

 

Please note that Highlands Residential's equity contribution may consist of friends and family equity and equity from funds controlled by Highlands Residential. Additionally, the numbers represented above can change prior to closing depending on many factors including, but not limited to, final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

(1) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Estimated Proceeds: $19,500,000
  • Estimated Annual Interest Rate (Floating): 3.0% over LIBOR
  • Term: 4 years
  • Interest Only: 4 years
  • Operating Reserves: $200,000

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.

Distributions

Highlands Residential intends to make distributions from GA Hall Uninco 347, LLC to GA Hall Uninco 347 Core, LLC as follows:

  1. To the Members, pari passu, all excess operating cash flows to an 8.0% Preferred Return to the Members;
  2. 70% / 30% (70% to Members / 30% to Promote) of excess cash flow to a 14.0% IRR; 
  3. 55% / 45% (55% to Members / 45% to Promote) of excess cash flow and appreciation thereafter.  

GA Hall Uninco 347 Core, LLC intends to make distributions to investors. Note that all distributions will occur after the payment of both 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 at the discretion of Highlands Residential, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary

    Year 1 Year 2 Year 3
Effective Gross Revenue   $0 $577,350 $2,402,458
Total Operating Expenses   $10,000 $678,361 $1,028,634
Net Operating Income   -$10,000 -$101,011 $1,373,824

Investor-Level Cash Flows

  Year 1 Year 2 Year 3
Net Cash Flow -$11,052,959 $0 $18,049,446

Investor-Level Cash Flows - Hypothetical $50,000 Investment*

  Year 1 Year 2 Year 3
Net Cash Flow -$50,000 $0 $81,650

*Returns should be net of all fees including RealtyMogul's 1.0% annual asset management fee. 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Highlands Residential' materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees
Type of Fee Amount of Fee Received By Paid From
Developer Fee 4.00% of Total Project Costs Highlands Residential Capitalized Equity Contribution
  Recurring Fees
Type of Fee Amount of Fee Received By Paid From
Property Management Fee 4.0% of Effective Gross Income Highlands Residential Distributable Cash
Asset Management Fee $30,000/year Highlands Residential Distributable Cash

Administrative Services Fee

1.00% of amount invested RM Admin(3) Distributable Cash

(1) Fees may be deferred to reduce impact to investor distributions

(2) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

(3) RM Admin will be providing the following services:(a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from RM VA WB LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

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, LLC

Sponsor 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 Documents

The 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 Investment

This 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 Assumptions

Sponsor 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 Performance

Any 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 Debt

A 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 Registered

Sponsor’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 Advice

Nothing 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 Risk

Internal 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.

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