FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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.

Escrow accounts

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.

Boots on the ground

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.

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Confidentiality Agreement
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By clicking the ‘I Agree’ button below:
Funded
Estimated Hold Period 5 Years
Estimated First Distribution 8/2024
FUNDED 100%
...
View Our Due Diligence Process
Offered By
Lone Star Capital
Investment Strategy Value-Add
Investment Type Equity
Minimum Investment 35000
Overview
Aspire Apartments (the "Property") is a 335-unit, garden-style apartment community located in the growing Inspiration Hills submarket of San Antonio, TX, being purchased by a Texas-focused Sponsor (3,000+ units acquired in the state) with a strong track record. The Property is being acquired with a unique nonprofit partnership, resulting in a 50% property tax exemption.
Basis

The Property is being purchased for $25,550,000 ($76,269/unit) which reflects a substantial discount to recent trades. Including the partial tax exemption which will be placed on the Property at closing, the trailing cap rate is 7.43%

 

Location

Aspire is in the Inspiration Hills neighborhood of Northwest San Antonio and benefits strongly from San Antonio’s ongoing population growth. San Antonio’s steadily rising 5.8% job growth is easily capitalized by the property’s central location. Aspire has quick access to major highways, Loop 410 and Interstate Highway 10, which provide access to employers such as H-E-B (145,000 employees), USAA Headquarters (36,000 employees), Valero World Headquarters (9,743 employees), and South Texas Medical Center (30,000+ employees).

Cash Flow

Through attractive fixed-rate financing and the partial property tax exemption, cash flow is projected to be very strong and resilient. With a trailing cap rate of 7.43% (inclusive of the tax exemption) and fixed-rate debt at an interest rate of approximately 6%, the investment opportunity creates substantial positive leverage, which results in projected net cash on cash returns of 7.6% over a five-year hold period.

Property at a glance
# Units 335
Current Occupancy 94%
Year Built 1986
Total CapEx Budget $2,455,952
Exit Cap Rate 6.25%
Acquisition Price $25,550,000
Investment Highlights
A 50% property-tax exemption will allow for outsized consistent cash flow through the hold period.
Attractive five-year fixed rate debt provides positive leverage at closing and ample time to execute the business plan.
Since 2018, the owners of Aspire have completed ~$5M of major renovations, leading to substantial rental increases and 93.5% average occupancy over the past 27 years (Axiometrics).
Current owner rapidly accumulated a large portfolio and is currently unloading the majority of their assets to raise capital. Aspire has fallen through the cracks at its management arm, holding back the asset from reaching its full potential.
The Sponsor will push Other Income through the implementation of a bulk Wi-Fi package, generating $35/unit in net income.
Management
Cumulative Distributions

Lone Star Capital

Since 2018, Lone Star Capital has acquired over $500 million in acquisitions and delivered 30%+ returns on their full-cycle transactions through tax-advantaged multifamily investment opportunities with robust monthly cash flow and strong upside potential. Its exclusive focus on workforce housing in Dallas, Houston, and San Antonio submarkets with favorable growth enables them to pinpoint exceptional opportunities with superior risk-adjusted returns. By employing prudent, long-term financing, they aim to reduce risk for investors, ensuring their capital is well-positioned to profitably exit during opportune market conditions. 

Lone Star's Houston-based, vertically integrated property management firm, Radiance Living, adds value through improved management and strategic renovations. Additionally, Lone Star continually strives to create unique value for its extensive network of high-net-worth investors, family offices, and private equity firms through innovative property tax exemption strategies, creative financing, and 1031 exchange structuring. 

Furthermore, Lone Star delivers institutional-level reporting through consistent, transparent investor communication to ensure peace of mind.

https://www.lscre.com/
  • Rob Beardsley
    Principal
  • Kent Piotrkowski
    Principal
Rob Beardsley
Principal

Rob Beardsley oversees acquisitions and capital markets for Lone Star Capital and has acquired over $500M of multifamily real estate. He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions. He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.

Kent Piotrkowski
Principal

Kent Piotrkowski leads operations and asset management for Lone Star Capital and is the CEO of Radiance Property Management, Lone Star's property management subsidiary. Kent has overseen the acquisition and management of over $500M in multifamily properties. Prior to Lone Star, Kent was a Senior Counsel at MetLife, where he managed a variety of corporate and international tax issues, advised on the tax implications for the company’s real estate and alternative investment transactions, and proposed, designed and implemented a global online platform for tracking all enterprise tax issues. He also led the tax department in MetLife’s $180M acquisition of the Fairmont Washington hotel in DC. Kent received his J.D. and L.L.M in Taxation from New York University School of Law and is a licensed attorney and real estate broker in New York State.

Track Record

Property Name City, State Asset Type Status Acq Date Units Purchase Price Sales Price or Estimated Value IRR EM
Meritage Houston, TX  Multifamily OWNED 11-01-2023 240 $45,900,000 $45,900,000 NA NA
Beckley Houston, TX  Multifamily OWNED 10-30-2023 210 $34,100,000 $34,100,000 NA NA
Highland Houston, TX  Multifamily OWNED 10-30-2023 216 $32,950,000 $32,950,000 NA NA
Azul Houston, TX  Multifamily OWNED 07-17-2023 90 $13,600,000 $13,600,000 NA NA
Candlelight Park Dallas, TX Multifamily OWNED 03-16-2023 128 $18,500,000 $18,500,000 NA NA
Madison at Bear Creek Houston, TX  Multifamily OWNED 11-03-2022 180 $26,000,000 $26,000,000 NA NA
Briar Court Houston, TX  Multifamily OWNED 09-08-2022 201 $33,200,000 $33,200,000 NA NA
5 Oaks Houston, TX  Multifamily OWNED 08-22-2022 228 $37,300,000 $37,300,000 NA NA
Timberwalk Houston, TX  Multifamily OWNED 07-13-2022 300 $39,500,000 $39,500,000 NA NA
Broadstone Briar Forest Houston, TX  Multifamily OWNED 04-29-2022 342 $55,400,000 $55,400,000 NA NA
Parc at Champion Forest Houston, TX  Multifamily OWNED 02-11-2022 232 $34,600,000 $34,600,000 NA NA
Encore on the Bay Houston, TX  Multifamily OWNED 12-21-2021 296 $40,500,000 $40,500,000 NA NA
Hollister Houston, TX  Multifamily OWNED 10-12-2021 156 $19,455,000 $20,000,000 NA NA
Solano Houston, TX  Multifamily OWNED 07-15-2021 262 $28,000,000 $30,000,000 NA NA
The Landing Lubbock, TX Multifamily OWNED 04-15-2021 228 $12,000,000 $16,500,000 NA NA
Forest Point Texarkana, TX Multifamily OWNED 01-20-2020 104 $5,075,000 $6,400,000 NA NA
The Commons Texarkana, TX Multifamily OWNED 08-19-2019 196 $7,200,000 $11,500,000 NA NA
Verandas at Bear Creek Houston, TX  Multifamily SOLD 06-19-2019 160 $12,800,000 $17,500,000 37.00% 2.24x
Cranbrook Forest  Houston, TX  Multifamily SOLD 07-18-2018 261 $17,900,000 $22,100,000 23.60% 1.69x
Total         4,030 $513,980,000 $535,550,000    

The above bios and track record were provided by Lone Star Capital and have not been independently verified by RealtyMogul.

Since 2018, the owners of Aspire have completed ~$5M of major renovations, leading to substantial rental increases and 93.5% average occupancy over the past 27 years (Axiometrics). These improvements will allow the Sponsor and its investors to achieve stable returns without the concern of major capital projects in the future. 46 units are classic, while the remaining 289 units have minor upgrades, including updated fixtures, black appliances, and refreshed paint. The Sponsor will complement the existing offering with new flooring and fixtures as needed. In addition, the Sponsor will push Other Income through the implementation of a bulk Wifi package, generating $35/unit in net income. A 50% property-tax exemption will allow for outsized cash flow through the hold period.

CapEx Breakdown

Interior Renovations Total Amount Per Unit
Interior Unit Upgrades $950,765 $2,838
AC (100 units) $80,000 $239
Down Units (4 @ $16k each) $64,000 $191
Total Interior Renovations $1,094,765 $3,268
     
Exterior Renovations Total Amount Per Unit
Common Area Amenities (Leasing Office, Fitness Center, Dog Park, Soccer Court, Pool Area, Common Area) $191,000 $570
Common Area Improvements (Signage, Carports, Lighting, Park Lot, Carports, Security) $175,000 $522
Mechanical System Upgrades $167,100 $499
HVAC 4 / Building (16 total buildings) $153,600 $459
Deferred Maintenance $104,900 $313
Landscaping Enhancements $90,000 $269
Driveway/Sidewalk  $60,000 $179
Gates/Entry System $55,000 $164
Wooden Fence Line  $35,000 $104
Total Exterior Renovation Costs $1,031,600 $3,079
     
Contingency (10%) $212,637 $635
Construction Management Fee (5%) $116,950 $349
     
Grand Total $2,455,952 $7,331
Summary
Property Information

Built in 1989, Aspire is strategically located on Bandera Road, which is one of the most trafficked thoroughfares in the North West submarket. The property has notable drive-by visibility to the 29,325 vehicles that pass the 10-acre site daily. Current ownership has repositioned this asset with some of the best-in-class amenities within this submarket, having executed a transformational renovation in excess of $5M that included major exterior ($2.2M) improvements and the successful implementation of an upscale interior ($3.4M) value-add program that led to rental increases of over $100 per renovated unit.

In addition to its premier location, Aspire features economical floorplans for the blue collar working class renter in San Antonio that consist of efficiencies, one and two-bedroom residences that average 521 square feet. The 84 efficiencies average 395 SF, the one-bedroom residences average 525 SF, and the 89 two-bedroom residences average 629 SF.

Unit Type # of Units Avg SF/Unit Avg Rent (Proforma) Rent PSF (Proforma) Avg Rent (In-Place) Rent PSF (In-Place)
EFF-D (Studio) 75 395 $775 $1.96 $775 $1.96
Eff-P (Studio) 9 395 $774 $1.96 $774 $1.96
A1-D (1x1) 66 500 $896 $1.79 $896 $1.79
A1-P (1x1) 12 500 $889 $1.78 $889 $1.78
A2L-D (1x1) 74 550 $900 $1.64 $900 $1.64
A2L-P (1x1) 10 550 $899 $1.63 $899 $1.63
B1-D (2x1) 69 610 $1,168 $1.91 $1,168 $1.91
B1-P (2x1) 15 610 $1,168 $1.91 $1,168 $1.91
B2-D (2x1.5) 3 900 $1,240 $1.38 $1,284 $1.43
B3-D (2x1.5) 2 1,050 $1,247 $1.19 $1,299 $1.24
Totals / Averages 335 521 $940 $1.80 $940 $1.80
Comparables

Lease Comparables

  The Branch at Medical Center Fredericksburg Place Diamond Ridge Vivid Balcones Urban Flats Averages Aspire Apartments (Post-Reno)
Distance from Subject Property 3.2 Miles 2.9 Miles 1.7 Miles 3.4 Miles 2.5 Miles 2.7 mi NA
Year Built 1985 1983 1978 1983 1974 1981 1986
Number of Units 426 224 304 104 327 277 335
                   
Studios              
$ / Unit - $818 - - $710 $764 $895
Square Feet - 480 SF - - 350 SF 415 SF 500 SF
$ / SF - $1.70/SF - - $2.03/SF $1.87/SF $1.79/SF
               
1 Bedrooms              
$ / Unit $934 $907 $947 $1,091 $810 $938 $1,034
Square Feet 674 SF 654 SF 632 SF 672 SF 500 SF 626 SF 580 SF
$ / SF $1.39/SF $1.39/SF $1.50/SF $1.62/SF $1.62/SF $1.50/SF $1.78/SF
               
2 Bedrooms              
$ / Unit $1,249 $1,314 $1,318 $1,207 $1,100 $1,238 $1,243
Square Feet 954 SF 870 SF 955 SF 834 SF 700 SF 863 SF 960 SF
$ / SF $1.31/SF $1.51/SF $1.38/SF $1.45/SF $1.57/SF $1.44/SF $1.29/SF

 

Sales Comparables

  Sterling at Viva Max Parc 410 Branch at Medical Center Villas de Santa Fe Broadstone on Medical Averages Aspire Apartments (Going-in)
Sale Date Aug-22 Oct-22 Mar-22 May-22 Aug-21 April-22  
Sales Price $27,315,936 $36,000,000 $51,900,000 $24,250,000 $54,000,000 $38,693,187 $25,550,000
Year Built 1983 1980 1984 1982 1981 1982 1986
# of Units 240 344 426 208 384 320 335
Average Unit Size 764 SF 716 SF 721 SF 735 SF 681 SF 723 SF 521
Sales Price / Unit $113,816 $104,651 $121,831 $116,587 $140,625 $119,502 $76,269
Sales Price / SF $149 $146 $169 $159 $206 $166 $146
Cap Rate 5.25% 5.00% 5.00% 5.00% 4.75% 5.00%  
Occupancy at Sale 93.0% 92.0% 93.0% 94.0% 94.0% 93.2% 88.0%
Distance from Subject Property 2.0 Miles 2.1 Miles 2.3 Miles 2.6 Miles 2.7 Miles 2.3 mi  
Location Information

Market Overview

San Antonio, Texas, is rapidly emerging as a powerhouse in the multifamily real estate market, offering a compelling investment opportunity for savvy investors. With a thriving economy, a growing population, and a diverse range of attractions, San Antonio boasts several key factors that make it a strong multifamily investment market.

Economic Vibrancy: San Antonio's economy is robust and diverse, with a strong foundation in the healthcare, military, and technology sectors. The presence of major companies, including USAA, H-E-B, and Toyota, has contributed to steady job growth, making it an attractive destination for professionals seeking employment opportunities. The city's economic stability is a promising sign for multifamily investors, as a strong job market often correlates with a high demand for rental housing.

Population Growth: San Antonio's population has been steadily increasing over the years. With a population exceeding 1.5 million, it is the seventh-largest city in the United States. This growth is driven by both natural increases and an influx of newcomers drawn to the city's affordability, quality of life, and employment prospects. As the population continues to rise, the demand for multifamily housing is expected to remain strong, creating a favorable environment for investors.

Tourism and Culture: San Antonio's rich cultural heritage and vibrant tourism industry contribute to its multifamily appeal. The city is home to world-famous attractions like the Alamo, the River Walk, and numerous festivals, drawing millions of visitors annually. Investors can capitalize on this by offering short-term rentals or long-term housing options to the workforce employed in the tourism sector.

Affordability: Compared to other major Texas cities like Austin and Dallas, San Antonio offers a more affordable cost of living. This affordability makes it an attractive destination for individuals and families looking for housing options that won't break the bank. Investors can leverage this affordability factor to maintain competitive rental rates and maximize their returns.

Infrastructure Investment: San Antonio has been actively investing in its infrastructure, including transportation and education. These improvements enhance the city's overall appeal and contribute to long-term stability, making it an even more attractive multifamily investment location.

Submarket Overview

According to the Bureau of Labor Statistics, San Antonio’s steadily rising 5.8% job growth is easily capitalized by the property’s central location. Aspire has quick access to major highways Loop 410 and Interstate Highway 10, which provide access to Forbes’ “Best of” employers like H-E-B (145,000 employees), USAA Headquarters (36,000 employees), Valero World Headquarters (9,743 employees), South Texas Medical Center (30,000+ employees). Job growth is expected to average an additional 11,016 jobs to the MSA each year. Major attractions are also available such as Six Flags Fiesta Texas, Ingram Park Mall (1.12M SF), La Cantera (1.3M SF) and the Rim (2.4M SF), and the city’s central business and tourist destination, Downtown San Antonio. Additionally, educational opportunities continue to grow in and around the submarket. Established universities, St. Mary’s University and the University of Texas at San Antonio, continue to expand their programs to support the city’s demand for first-generation and Latinx graduates.

The Property receives over 30,000 vehicles per day via Bandera Road and the property's adjacent roadways. This vehicle's per day count rivals that of the immediate Loop 410 but is dwarfed by I-10’s 200,000 VPD, of which the property benefits the most by their intersection less than 5 miles north of Aspire. A seasoned neighborhood of San Antonio, Aspire and the surrounding Woodlawn Hills are well established and offer a stabilized submarket that sits between the expanding Medical District, Downtown, and Joint Base San Antonio.

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $ / Unit
Senior Debt $21,424,000 $63,952
LP Investor Equity $7,932,204 $23,678
GP Investor Equity(1) $1,000,000 $2,985
Total Sources of Funds $30,356,204 $90,616
     
Uses of Funds $ Amount $/Unit
Purchase Price $25,550,000 $76,269
Closing Costs $832,360 $2,485
Acquisition Fee $383,250 $1,144
CapEx & Reserves $3,590,594 $10,718
Total Uses of Funds $30,356,204 $90,616

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Greystone (Freddie Mac)
  • Loan Type: Permanent Loan
  • Term: 60 Months
  • Loan-to-Value (LTV): 83.9%
  • Loan-to-Cost (LTC): 76.5%
  • Estimated Proceeds: $21,424,000
  • Interest Type: Fixed
  • Annual Interest Rate: 1.84% + 5-Year U.S. Treasury (with Treasury floor rate of 3.56%)
  • Interest-Only Period: 2 Years
  • Amortization: 30 Years
  • Prepayment Terms: Standard Defeasance
  • Extension Requirements: N/A
  • Recourse Description: Non-recourse

(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt. 

Distributions

Lone Star Capital intends to make distributions as follows:

  1. Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors receive a cumulative, 8.00% Preferred Return (Compounding Annually);
  2. Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors have received aggregate distributions equal to the aggregate unreturned equity Contributions;                                                                                                    
  3. 70% / 30% ( 70% to Equity Investors / 30% to Promoted/Carried Interest ) of all cash flow available for distribution to a 15.0% IRR;
  4. 60% / 40% ( 60% to Equity Investors / 40% to Promoted/Carried Interest ) of all cash flow available for distribution thereafter.

Lone Star Capital intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in August 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Lone Star Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves.

(1)  Equity Investors include all members part of the Limited Partnership and General Partnership, including Lone Star Capital.

(2) Lone Star Capital will receive a promoted/carried interest as indicated above.

Cash Flow Summary
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Effective Gross Revenue   $4,068,398 $4,382,668 $4,612,862 $4,753,167 $4,897,739
Total Operating Expenses   $2,118,338 $2,159,265 $2,222,754 $2,287,304 $2,353,818
Net Operating Income   $1,950,060 $2,223,402 $2,390,109 $2,465,863 $2,543,921
             
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($8,932,154) $603,594 $872,222 $695,793 $769,443 $22,530,655
             
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($2,105,000) $135,151 $185,299 $135,795 $152,286 $3,998,176
             
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($50,000) $3,210 $4,401 $3,226 $3,617 $94,969

(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns.  Returns presented are net of all fees.  Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Lone Star Capital's 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
Acquisition Fee 1.50% of Purchase Price(4) Lone Star Capital Capitalized Equity Contribution
Debt Guarantee Fee 0.50% of Loan Proceeds Lone Star Capital Capitalized Equity Contribution
Construction Management Fee 5.00% of Hard and Soft Costs Lone Star Capital Construction Expenditure Budget
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 1.50% of Gross Collected Rent Lone Star Capital Cash Flow
Property Management Fee 3.00% of Gross Collected Rent Radiance Living(3) Cash Flow
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.

(3) Radiance Living is a wholly-owned subsidiary of Lone Star Capital.

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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