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Eligibility 1031 Exchange Only
Estimated Hold Period 10 Years
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Passco Cortana DST (OLD)
Offered By
Passco
Investment Strategy Value-Add
Investment Type Equity
Minimum Investment 100000
Overview
Cortona at Forest Park is a 278-unit apartment community built in 2014 located in St. Louis, MO
Basis

the property was purchased $2.4M below the appraised value. The Sponsor is budgeting $4.3M in operating reserves ($5.5M in total reserves). Also the proximity to University of Washington St. Louis, Boeing Defense and several of the area's largest employers

Location

The St. Louis, MO-IL Metropolitan Statistical area is home to 22 major headquarters listed on the Fortune 500/1000, Forbes Global 2000 and Forbes list of America’s Largest Private Companies and is home to 30 four-year colleges and 10 two-year community, vocational and technical colleges. In 2023, St. Louis, Missouri was ranked the 6th most beautiful and affordable place to live in the U.S., according to Travel + Leisure Magazine.

Partner

Passco has acquired over $8.0 billion in multifamily and commercial real estate in the United States. Passco Companies is directed by a team of dedicated senior real estate professionals who, collectively, have acquired over $35 billion in investment real estate projects. Nationally, Passco Companies has achieved the status of “Preferred Borrower” with Fannie Mae, ranked #1 “Best Places to Work in Multifamily for Women” in 2022 by Multifamily Leadership and listed as one of the “Top Owners” by Multihousing News in 2021, for its fourth year.

Property at a glance
Date Acquired November 8, 2023
# Units 278
Currently Occupancy 93.52% (as of 11/6/2023)
Leverage 44.80%
Year Built 2014
Distribution Frequency Monthly
Investment Highlights
The property is within 5 miles of the area’s largest employers – Barnes-Jewish Hospital, University of Washington St. Louis, Boeing Defense, Space and Security and SSM Health St. Louis University Hospital; BJC Healthcare, Boeing and Washington University are growing and expanding their footprints.
Cortona at Forest Park is located in The Highlands master-planned community within the Cheltenham neighborhood, near some of the highest-rated suburbs within the state of Missouri.
The strategy is to use the Property’s extensive amenities, unit finishes, and access to major arteries to achieve and maintain market occupancy, increase rental rates based on market dynamics, increase ancillary revenue opportunities, and monitor/control expenses and reserves to maximize investment performance. The Master Tenant will develop a marketing strategy to attract employees from nearby, high-paying employers.
Management
Cumulative Distributions

Passco

Since 1998, Passco Companies, LLC has operated throughout all market conditions and cycles. The company has acquired over $8.0 billion in multifamily and commercial real estate in the United States. Since its inception, Passco Companies has become a recognized provider of investment opportunities in real estate projects including 1031 exchanges, limited liability companies, value-add opportunities, development opportunities and private equity. Passco Companies is directed by a team of dedicated senior real estate professionals who, collectively, have acquired over $35 billion in investment real estate projects. Nationally, Passco Companies has achieved the status of “Preferred Borrower” with Fannie Mae, ranked #1 “Best Places to Work in Multifamily for Women” in 2022 by Multifamily Leadership and listed as one of the “Top Owners” by Multihousing News in 2021, for its fourth year. Passco Companies is also recognized locally on the 2019 lists: “Fastest Growing Private Company” and “Top Private Companies” by the Orange County Business Journal and one of Inc. 5000’s “Fastest-Growing Private Companies in America” in 2018. The company launched “Passco Gives Back” in 2015 and has given over a quarter of a million dollars to local charities benefiting education, medical research, family and children’s services, and veterans.

https://passco.com/
Track Record

Please see the Documents section for Passco's Company Brochure and Track Record.

Property Information

Cortona at Forest Park is a 278-unit apartment community that was completed in 2014. The property is comprised of 1 residential building, 1 parking structure, and 1 pool house situated on approximately 5.24 acres, offering a diverse mix of studio, 1, and 2-bedroom units. Unit amenities include stainless steel appliances, electronic door entry, washer/dryer, vinyl wood flooring, walk-in closets, high ceilings, extra storage, and patios/balconies. Community amenities include a clubhouse with a business center and multipurpose room, a game room with pool table and shuffleboard, a three-tiered pool: lap pool, tanning ledge and hot tub, pool cabanas, private gated entrance, private reserved parking, pet spa, dog park, bike storage, elevators, and fully equipped fitness center.

https://www.cortonaforestpark.com/

Unit Type Units %/Unit SF Per Unit* Total SF
S1 - Studio 40 14.39% 575 23,000
A5 - 1BD/1BA 4 1.44% 611 2,444
A1 - 1BD/1BA 45 16.19% 650 29,250
A2 - 1BD/1BA 25 8.99% 675 16,875
A3 - 1BD/1BA 40 14.39% 711 28,440
A4 - 1BD/1BA 36 12.95% 743 26,748
A6 - 1BD/1BA 4 1.44% 867 3,468
B1 - 2BD/2BA 35 12.59% 978 34,230
B2 - 2BD/2BA 24 8.63% 1,097 26,328
B3 - 2BD/2BA 25 8.99% 1,285 32,125
Total 278 100.00% 802 222,908

*Total square footage divided by total number of units

Location Information

Market Overview

The St. Louis, MO-IL Metropolitan Statistical Area has a 2023 estimated population of 2,807,826 and is the largest Metropolitan Statistical Area (“MSA”) in the state of Missouri by population and economic Gross Domestic Product (“GDP”), the 24th largest MSA by GDP (2021) in the nation. The St. Louis MSA is one of the largest rail hubs in the U.S. and is served by Amtrak and six Class I Railroads (Burlington Northern Santa Fe, Canadian National Railway, CSX, Kansas City Southern, Norfolk Southern, and Union Pacific) that connect to five local and short line railroads. The Mississippi, Missouri, and Illinois rivers all meet in the St. Louis IL-MO Metropolitan Statical Area’s region, which is home to the nation’s second-largest inland water port by tonnage. In the St. Louis MSA, workers and employers both are supported by one of the largest educational markets in the U.S. thirty 4-year colleges and universities enroll more than 100,000 students and award more than 25,000 bachelor's or advanced degrees annually, while over 40,000 attend the St. Louis region’s 10, two-year community, vocational, and technical colleges. Moreover, more than 35 percent of adults have a bachelor’s degree or higher in the St. Louis, which is above the U.S. average. The greater St. Louis MSA is home to 22 major headquarters listed on the Fortune 1000, Forbes Global 2000, and Forbes list of America’s Largest Private Companies. Moreover, fifteen Fortune 1000 companies, seven of which are in the Fortune 500, are headquartered in the St. Louis Il-MO Metropolitan Statistical Area, along with eight of Forbes' largest private companies in America. CoStar notes several notable economic developments occurring and include the 609,000-SF, $816 million Neuroscience Research Center in midtown by Washington University. The 657,270-SF Ambulatory Cancer Center, a joint venture between BJC HealthCare and the Washington University School of Medicine, follows this. In addition, BJC HealthCare is building a new 16-story patient tower slated to open in 2025 at its midtown campus. Construction continues at the new $1.7 billion National Geospatial-Intelligence Agency (“NGA”) headquarters north of downtown St. Louis. The development, known as NGA West, is scheduled to open in 2026. The agency currently employs 3,000 people in the St. Louis region. The investment by the NGA has already boosted the geospatial scene in St. Louis, with several companies growing or establishing a presence in the area. NGA West will offer unclassified areas in its new facility to improve its interaction with outside companies in the geospatial industry. General Motors continues to spend heavily at its Wentzville plant, with a $1 billion investment to produce the new Canyon and Colorado pick-up trucks. Procter & Gamble plans a $180 million improvement at its plant along the riverfront north of downtown. American Foods has begun work on its 775,000-SF food processing facility. The company is investing $800 million in the Warren County building that is expected to employ 1,300 people. Cement fiber producer James Hardie is also planning a new facility in the southern part of the region near Festus. The company will build a new one-million-square-foot plant adjacent to a silica mine.

Submarket Overview

Cortona at Forest Park is in The Highlands, a master planned
community within the Cheltenham neighborhood, which
abuts the I-64 and Forest Park, a 1,300-acre urban public park
attracting more than 13 million visitors annually. According
to Niche, the Property falls within the 63110-zip code area,
which possesses an overall Niche grade of A+ and is near some
of the highest-rated suburbs within the State of Missouri. The
Property’s location benefits from close access to Washington
University in St. Louis, the 24th (tied) best university in the
nation (2024 U.S. News & World Report Rankings) with the
second largest university enrollment size in the St. Louis, ILMO
MSA. Educational attainment levels (age 25+) exceed their
metro-level counterparts within a one-mile radius, three-mile
radius, and five-mile radius of the Property.
The Property is within commuting distance of the area’s
largest employers. Approximately 1.9 miles to the east is the
Barnes-Jewish Hospital (the largest employer in the MSA), the
largest hospital in Missouri, with more than 1,800 attending
physicians. Approximately 9.6 miles to the west Project is
Mercy Hospital St. Louis (the 3rd largest employer in the
MSA), an 859-bed short-term acute care facility with over 607
attending physicians. Approximately 2.2 miles to the northwest
is the Washington University in St. Louis (4th largest employer
in the MSA) with the 13th largest university endowment in the
nation. Approximately 2.8 miles to the east is a Boeing office
(5th largest employer in the MSA). Approximately 4.2 miles to
the east is the SSM Health St. Louis University Hospital (6th
largest employer in the MSA), a 356-bed short-term acute care
facility.
The Property lies within an urban infill area encircled by a mixture
of single-family residential tracks, multifamily communities,
open public space, and commercial space. Cortona at Forest Park
is approximately two miles southwest of the Central West End
neighborhood (Niche Grade: A-), a bustling mixed-use district
with upscale dining and retail options located on the eastern
edge of Forest Park. The Property is within nearby proximity to
several K-12 education options and also benefits from convenient
access to an array of retail options. Betty Wheeler Classical
Junior Academy, a PK-5th grade public school ranked 2nd in
Niche’s 2024 standout elementary schools in Missouri, is 2.8
miles south and possesses an overall grade of “B+”. McKinley
Classical Leadership Academy, a 6th-12th grade public school
ranked 2nd in Niche’s 2024 standout middle schools in Missouri,
is 4.9 miles east and possesses an overall grade of “B+”. Metro
High School, a 9th-12th grade public magnet school ranked 1st
in Niche’s 2024 best public magnet high schools in Missouri, is
3.4 miles northeast and possesses an overall grade of “A”. Within
approximately 3.7 and 4.1 miles west of the Property are The
Promenade at Brentwood and a retail PowerCenter with the
following tenants: Target, Ulta Beauty, World Market, Trader
Joe’s, PetSmart, and Total Wine & More, Michaels, Nordstrom
Rack, Whole Foods Market, REI, and The Container Store.

ST. LOUIS, IL-MO MSA TOP 10 EMPLOYERS
EMPLOYER EMPLOYEES
1 BJC Healthcare 29,305
2 Walmart Inc. 22,290
3 Mercy Health Care 20,182
4 Washington University in St. Louis 17,800
5 Boeing Defense, Space & Security 14,566
6 SSM Health Care System 13,500
7 Scott Air Force Base 13,000
8 Schnuck Markets Inc. 10,858
9 Mercy Clinic 9,305
10 Archdiocese of St. Louis 9,000
Source: Moody’s Analytics, June 2023

Distributions

Please refer to the Passco Cortona DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.

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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