FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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Confidentiality Agreement
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Funded
Estimated Hold Period 5 Years
Estimated First Distribution 8/2024
FUNDED 100%
...
View Our Due Diligence Process
Offered By
Heidenberg Properties Group
Investment Strategy Core Plus
Investment Type Equity
Minimum Investment 35000
Overview
At Colonie Center (the "Property") is a 243,389 square foot retail center anchored by Whole Foods, Floor & Décor and TJX's Sierra Trading Post with triple net leases extending over ten years. These anchors, in addition to the Bank of America outlot (15-year lease), comprise 64% of the in-place Base Rent. This high visibility center occupies the most desirable retail location in New York's Capital Region. While in-place anchors provide for downside protection, significant leasing opportunities provide for upside potential. Experienced Sponsors will be co-investing approximately 29% of the total deal equity.
Tenancy

At Colonie Center is anchored by a 33,783 square foot Whole Foods (with an additional 9,343 square feet of loading/storage space), one of the industry's most sought-after grocery operators. This is the only location in the Albany MSA and ranks in the top 12% (54/443) of Whole Foods locations nationwide in terms of visitation. Along with Floor & Décor, TJX's Sierra Trading Post, and the Bank of America outlot, $1.6 million of the nearly $2.5 million (64%) in-place Base Rent is attributed to good quality credit tenants. These key tenants feature leases extending 10+ years, ensuring durable cash flows to investors. The long lease terms and stable cash flows provide significant downside protection.

Co-Invested

Heidenberg Properties has a strong commitment and conviction to At Colonie Center, which is evidenced by their 29% (approximately $3.4 million) equity co-investment. With approximately four decades of expertise as developers, owners, and operators of open-air shopping centers and retail properties, the Sponsor has demonstrated a proven track record. They have successfully re-tenanted four former Sears/Kmart anchored locations in Michigan, Pennsylvania (2), and New York.

Location

Just off the I-87 access ramps, the Center is located at the convergence of Albany's key retail corridors, Wolf Road and Central Avenue. With I-87's daily traffic count exceeding 118,000 vehicles and the intersection of Wolf Road and Central Avenue seeing over 63,000 vehicles daily, the Center is strategically positioned for high visibility and to attract premier tenants. The Center is a retail destination for the ~800,000 individuals within the 30-mile trade area and is visited by over 6 million shoppers per year. The area's affluence is underscored by an average household income surpassing $110,000 within a 3, 5, and 10-mile radius.

 

(Data Source: CoStar and Sites USA)

Property at a glance
Year Built / Renovated 1966 / 2015-2024
Net Rentable SF 243,389
Parking Spaces 1,542 (6.3 spaces / 1,000 SF)
Exit Cap Rate 7.45%
Anchor Tenant Whole Foods
Acquisition Price $28,000,000
Investment Highlights
Durable In-Place Income: Purchasing a dominant, grocery-anchored center (Whole Foods), with co-tenants Sierra Trading (a TJX division) and Floor & Decor all under long-term leases (through at least 2034) at a 7.45% cap rate (with Year 1 cash flows north of 7%) providing resilient "downside protection." All existing tenants have NNN leases in place.
Location, Location, Location: Attracting the in-place roster of tenants is a direct result of the Center's unrivaled location at the intersection of the trade area's two major retail corridors -- Wolf Road and Central Avenue just off Interstate 87 access ramps.
Upside Potential: In addition to the stable in-place cash flows, there is upside potential through the lease-up of 94,000 square feet of upper-floor space. The Sponsor is currently in discussions with multiple entertainment and experiential uses and is negotiating a Letter of Intent for over 50% of this space. The successful lease-up of the upper-floor space is included in the current projections. In addition, there are also other opportunities to add value, such as developing additional outlots and leasing 20,000 square feet of lower-level space. These opportunities are not included in the current projections.
Experienced Sponsor: With nearly 40 years of retail investment and development experience, the Sponsor brings a wealth of expertise to the table. They have successfully re-developed four former Sears/Kmart anchored centers in New York, Pennsylvania (2), and Michigan. Notably, the Sponsor has exited three of these projects, demonstrating a track record of strategic decision-making and operational proficiency.
Cap Rate Arbitrage: Sale of Bank of America outlot as a sought-after NNN single-tenant investment grade asset projected in year 2 at a 5.5% exit cap rate (vs. 7.45% going-in cap rate) generates additional proceeds to partially pay down debt, develop the upper level and/or return capital to investors. In the base case underwriting, these proceeds are used to partially pay down debt and return capital to investors.
Compelling Risk-Adjusted Return: Assuming a five-year exit and execution of the business plan, the Sponsor is projecting an IRR of 16.7% without any cap rate compression (still 7.45%) net to the LP investors. However, should the Sponsor not succeed in its value-add leasing initiatives on the Upper Level and instead lease the Upper Level for $0/SF net (only recovering expenses), investors can expect a project-level IRR of 12%.
Cost-Effective Debt Financing: The Sponsor is utilizing debt financing from a lender with whom it has done three prior loans, including a development project. The existing structure will provide 62.5% of the purchase price, two years of interest only as well as "good news" capital to develop any vacancies subject to satisfaction of certain lender requirements.
Management
Cumulative Distributions

Heidenberg Properties Group

Heidenberg Properties and its predecessor has been a developer, owner, and operator of open-air shopping centers and retail properties for approximately 40 years. The Sponsor's current portfolio consists of nearly 2.5 million square feet of retail in the NE and Mid-Atlantic, including New York, New Jersey, Pennsylvania, Vermont, Virginia, and West Virginia, historically focusing on grocery-anchored, value-added centers. Currently, the Sponsor's portfolio is in excess of 98% occupied and continues to see positive leasing velocity and incremental development opportunities. Whether Heidenberg Properties is faced with repositioning, leasing, financing, or development challenges, the Sponsor acts quickly and efficiently to produce successful solutions and compelling results.

https://www.heidenbergproperties.com/
  • Robert Heidenberg
    CEO
  • Jason Lazar
    COO
Robert Heidenberg
CEO

Mr. Heidenberg is the founder and Managing Partner of Heidenberg Properties Group, the owner, developer and manager of shopping centers and retail properties. He provides the strategic vision for the group’s development, redevelopment and acquisition initiatives. Mr. Heidenberg co-founded a predecessor company in 1985 and led the company in acquiring and developing more than 4,000,000 square feet of shopping centers throughout New York, New Jersey, Pennsylvania, Arizona, Vermont, and Michigan. In 2013, Mr. Heidenberg founded Heidenberg Properties Group. Since its formation, Heidenberg Properties has acquired additional shopping centers in New York, Pennsylvania, Virginia, and West Virginia. Mr. Heidenberg is a graduate of Benjamin N. Cardozo School of Law and University of Pennsylvania.

Jason Lazar
COO

Jason Lazar is the Chief Operating Officer of Heidenberg Properties, a full-service real estate development company focused on the acquisition and development of open-air shopping centers in the Eastern United States. Jason joined Heidenberg Properties Group in January 2012. During that time, Heidenberg Properties has nearly tripled the size of its portfolio to contain approximately three million square feet of properties and expanded its geographic footprint from Vermont to Virginia. In his capacity as COO, Jason ensures that the current portfolio achieves its financial, operational, and strategic initiatives. He is responsible for sourcing and performing due diligence for all acquisition opportunities as well as structuring and negotiating all transactions, including financings, acquisitions, and divestitures. From February 2022 to February 2023, Jason led the successful exits of approximately $110 million of retail properties. Mr. Lazar holds a JD from the Benjamin N. Cardozo School of Law and a Bachelor of Arts degree from Lehigh University. He currently serves on the International Council of Shopping Centers’ (ICSC) Government Relations committee.

Track Record

Property Name(4) City, State Asset Type Status Acq Date SF Purchase Price Sales Price or Estimated Value IRR EMx
3500 Aramingo Avenue  Philadelphia, PA Retail SOLD 02-10-2010 64,163 $6,200,000 $12,650,000 15.38% 3.09X
CSP Albany Albany, NY Retail SOLD 10-28-2011 N/A $1,247,000 $2,351,000 32.44% 1.69X
Tops Plaza(1) Greenville, NY Retail SOLD 10-2014 92,888 N/A $5,572,625 N/A N/A
Hauppauge Plaza(2) Hauppauge, NY Retail SOLD 06-01-2015 34,919 N/A $11,000,000 11.74% 2.21X
Hazlet Hazlet, NJ Retail SOLD 11-20-2013 14,400 $2,800,000 $4,482,000 23.75% 2.05X
Rite Aid Portfolio Philadelphia, PA and Scranton, PA Retail SOLD 01-24-2014 47,633 $10,575,000 $14,000,000 15.59% 2.02X
Shelby Town Center(3) Shelby Township, MI Retail SOLD 03-01-2000 160,255 $10,250,000 $15,750,000 19.98% 3.49X
Mt Pocono Plaza Mt. Pocono, PA Retail SOLD 02-01-2013 195,735 $11,000,000 $17,000,000 12.51% 2.37X
Hershey Square Shopping Center Hummelstown, PA Retail SOLD 10-01-2014 229,724 $28,000,000 $48,872,857 12.12% 2.22X
Central Vermont Marketplace Berlin, VT Retail OWNED 08-01-2010 250,097 $13,660,000 $16,121,394 N/A N/A
Kohl's at Colonie Colonie, NY Retail OWNED N/A 146,573 N/A $8,059,733 N/A N/A
Culpeper Colonnade Culpeper, VA Retail OWNED 01-18-2018 180,683 $32,650,000 $35,627,084 N/A N/A
Heidenberg Plaza Closter, NJ Retail OWNED 01-2015 32,963 N/A N/A N/A N/A
HP Auction N/A Retail OWNED N/A N/A N/A $12,790,400 N/A N/A
Kohl's Staten Island Staten Island, NY Retail OWNED N/A 246,863 N/A $6,502,304 N/A N/A
Lake Plaza Shopping Center Mahopac, NY Retail OWNED 06-01-2008 166,186 N/A $26,955,738 N/A N/A
Plaza 48 Long Island City, NY Retail OWNED N/A 129,349 N/A $80,343,317 N/A N/A
Rocky Point Brookhaven, NY Retail OWNED 08-2000 N/A N/A $4,000,000 N/A N/A
Southport Shopping Center Shirley, NY Retail OWNED 01-16-2014 303,360 $38,400,000 $81,973,867 N/A N/A
Ephrata Commons Ephrata, PA Retail OWNED 11-01-2016 54,810 $6,100,000 $5,962,907 N/A N/A
Thompson Square Shopping Center Monticello, NY Retail OWNED 02-01-2017 123,219 $19,100,000 $22,516,317 N/A N/A
Potomac Marketplace Ranson, WV Retail OWNED 06-17-2017 379,196 $35,900,000 $46,029,013 N/A N/A
Totals/Weighted Avg.         2,853,016 $157,622,000 $478,560,556    

(1) Sale of the property reflected the exit of a 24% interest purchased as part of a portfolio. The total acquisition investment approx $400,000 and only principal was returned on the eventual sale.

(2) Sale metrics reflect the acquisition and exit pertaining to a 52% of after-acquired interest with outside capital, not the original acquisition of the property which occurred in 1997.

(3) Sale metrics reflect the acquistion and exit pertaining to a 30% of after-acquired interest as part of a portfolio with outside capital, not the original acquisition of the property which occurred in 2000.

(4) Sponsor began accepting outside capital in 2010. All dispositions shown were consummated after that time period. Dispositions prior to 2010 included only GP capital and involved either the sale of the property or the sale of a partial interest. In the Sponsor’s entire history, there was one loan default/property surrendered which occurred in 1995. Owned properties include all properties currently owned, irrespective of whether outside capital is a part of the capital stack.

The above bios and track record were provided by Heidenberg Properties Group and have not been independently verified by RealtyMogul.

The Sponsor plans to close on At Colonie Center the first week of April and intends to implement the following business plan:

  • Manage cash flow from a strong roster of long-term tenants
  • Lease the vacant 94,000 SF of Upper Level space to several larger tenants
  • Lease the vacant 6,106 SF Lower Level vacancy and 2,113 SF Outlot vacancy with complimentary tenants
  • Sell the Bank of America Outlot ground lease at the end of Year 2

To finance the acquisition, the Sponsor has secured a term sheet from Provident Bank with whom they have closed three prior transactions. The Sponsor sourced acquisition financing of $17.5 million with a fixed interest rate of the 5-year treasury rate plus 215 basis points, with a minimum floor of 6.5%(1). The loan term is 5 years with a 2-year interest-only period, followed by a 25-year amortization schedule.

The Sponsor is targeting a sale of the BoA ground lease at the end of Year 2 at a 5.5% cap rate for $3.6 million. The remainder of the asset will be sold at the end of Year 5, at which point the Center is projected to be sold at a 7.45% cap rate for $44.4 million ($186 PSF).

Note, the Sponsor has already been in discussions with several experiential tenants such as fitness centers, trampoline parks, and children's entertainment centers for the Upper Level vacancy. The Sponsor estimates approximately $6.5M of additional leasing and development costs for the Upper Level, which is to be advanced as additional "good news" capital from their lender. 

The projected return profile is 16.7% IRR, 8.8% average CoC, and 1.91x EM over a 5-year hold.

 

(1) A fixed interest rate which shall be set three (3) days prior to closing equal to 215 basis points in excess of the weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of five (5) years with an interest rate floor of 6.50%. All interest and fees shall be computed on the basis of a 360-day year, actual number of days elapsed.

Summary
Property Information

At Colonie Center (the "Property"), a 243,389 square foot retail center, is anchored by Whole Foods, Floor & Décor, and TJX's Sierra Trading Post, all with leases extending over ten years. The Property enjoys immediate access to I-87 and I-90 and is adjacent to the larger Colonie Center, a dominant 1.1 million square foot regional mall anchored by Macy’s, Boscov’s, H&M, Nordstrom Rack, Barnes & Noble, and Regal Cinemas. With over 80 stores and restaurants, including PF Chang’s and Cheesecake Factory, the mall provides additional amenities. The long-term leases and high-quality credit tenants contribute to a secure cash flow from NNN leases. The existing vacancy in the 94,058 Upper Level and multi-tenant outlot simultaneously presents an opportunity to create significant value through leasing and development.

Unit Mix

Tenant SF % of Property Lease Start Lease End Rent PSF Lease Type
FLOOR & DÉCOR 57,204 23.5% 10-2023 09-2038 $9.00 NNN
WHOLE FOODS 33,783 13.9% 06-2014 06-2034 $17.33 NNN
SIERRA TRADING 19,100 7.8% 06-2024 05-2034 $15.00 NNN
VACANT (1130 LOWER) 6,106 2.5% - - $0.00 Not Applicable
ETHAN ALLEN 8,000 3.3% 06-2019 06-2029 $33.60 NNN
BJ'S RESTAURANT 7,807 3.2% 06-2018 06-2028 $44.00 NNN
CYCLE GEAR 6,530 2.7% 11-2021 11-2031 $25.00 NNN
SLEEP NUMBER 3,475 1.4% 05-2022 05-2032 $38.00 NNN
VACANT (2130 OUTLOT) 2,113 0.9% - - $0.00 Not Applicable
BANK OF AMERICA 5,213 2.1% 02-2025 01-2040 $38.37 NNN
VACANT (UPPER LEVEL) 94,058 38.6% - - $0.00 Not Applicable
Totals / Averages 243,389 100%     $10.25  
Comparables

Sales Comparables

  69 & 79 Wolf Road The Source at White Plains Cortlandt Crossing New City Center The Shoppes at South Hills Averages At Colonie Center
Sale Date 02-28-2023 02-01-2023 02-01-2022 10-01-2022 08-02-2022 09-25-2022 04-03-2024
Sales Price $5,039,500 $112,000,000 $65,500,000 $30,000,000 $46,800,000 $51,867,900 $28,000,000
Year Built / Renovated 1975 / 2000 1995 / 2003 2019 1970 1979 1989 1966 / 2015-2024
Net Rentable SF 25,619 260,000 130,000 125,110 518,000 211,746 243,389
Sales Price / SF $197 $431 $504 $240 $90 $292 $115
Cap Rate 5.50% 7.30% 5.10% 6.40% 7.50% 6.36% 7.45%
Address 69 & 79 Wolf Rd, Albany, NY 12205 100 Bloomingdale Rd, White Plains, NY 10605 3144 E Main St, Mohegan Lake, NY 10547 2-88 N Main St, New City, NY 10956 1865 South Rd, Poughkeepsie, NY 12601   1425 Central Ave, Albany, NY 12205

 

Lease Comparables(1)

Inline Retail Locations Staples
(Northway Commons)
Eddie Bauer
(Northway Commons)
Dressbarn
(Northway Commons)
Regal Cinemas
(Clifton Park Mall)
Sky Zone
(Clifton Park Mall)
Five Below
(New Loudon Center)
Averages At Colonie Center
Distance from Subject Property 0.2 miles 0.4 miles 0.4 miles 10.5 miles 10.5 miles 4.5 miles 4.4 miles  
Year Built / Renovated 2005 1970 / 1994 1970 / 1994 1976 / 2006 1976 / 2006 1966 / 2003 2005 1966 / 2015-2024
Building NRSF 477,644 477,644 477,644 465,124 465,124 254,786 436,328 231,331
Rental Rate ( Per SF ) $16.50 $31.00 $23.50 $17.00 $14.00 $20.50 $20.42  
Tenant Lease Size ( SF ) 22,597 7,000 9,000 50,000 27,000 9,000 20,766  

 

Out-Parcel Retail Locations Mission BBQ
(Northway Commons)
Mattress Firm
(Northway Commons)
Club Pilates
(Residence 15 at Village Plaza)
Averages At Colonie Center
Distance from Subject Property 0.4 miles 0.2 miles 10.5 miles 3.7 miles  
Year Built / Renovated 1970 / 1994 1966 2018 1992 1966 / 2015-2024
Building NRSF 477,644 477,644 N/A 477,644 231,331
Rental Rate ( Per SF ) $40.00 $42.00 $46.00 $42.67  
Tenant Lease Size ( SF ) 4,142 12,000 N/A 8,071  

(1) For current leases at At Colonie Center, please reference Unit Mix.

Location Information

Market Overview

Attracting a roster of best-in-class tenants is the direct result of the Center's unrivaled location of the confluence of Colonie's two major retail corridors, Wolf Road and Central Avenue, just off the I-87 access ramps. I-87 has a daily traffic count of over 118,000 vehicles per day while over 63,000 vehicles per day pass through the intersection of Wolf Road and Central Avenue. Tenants congregating at this intersection include other prominent retailers such as Target, Lowe's, BJ's Marshalls, Trader Joe's, and Petco. Situated at the retail heart of the Albany-Troy-Schenectady MSA, with a population of nearly 1.1 million and boasting the state's most affluent area outside of New York City, the Center is visited by over 6 million shoppers annually while the Colonie Whole Foods ranks in the chains top 12% of stores (#54/443) in terms of visits according to Placer.ai.

Submarket Overview

The high ratio of household incomes to relatively low home values creates a customer base with substantial discretionary income—a crucial factor for successful retail sales. The average household income exceeds $110k in all 3, 5, and 10-mile radius. There are 24 hotels within a two-mile radius of Wolf Road, totaling 2,968 rooms, all approaching maximum occupancy rates every weekday. There is also a residential apartment building, The Towers of Colonie, within walking distance of Colonie Center. In addition, there are 22 colleges and Universities within 50 miles, with an economic impact of over $200 million. Notably, Albany's "Tech Valley" region encompasses 21,000 businesses, schools, and organizations that employ more than 531,000 workers. A total retail expenditure of $2.3 billion is observed within a 5-mile radius. Monthly, there are 512,459 shoppers, averaging over 128,000 shoppers per week. The trade population within a 30-mile radius amounts to 803,208 individuals.

Source: CoStar and Sites USA

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $ / SF
Senior Loan $17,500,000 $76
GP Equity(1) $3,392,269 $15
LP Equity $8,406,928 $36
Total Sources of Funds $29,299,197 $127
     
Uses of Funds $ Amount $ / SF
Purchase Price $28,000,000 $121
Acquisition Fee $280,000 $1
Closing Costs $1,019,197 $4
Total Uses of Funds $29,299,197 $127

(1) The Sponsor contributes 25% or $2.95M to the total deal equity of $11.8M. Additionally, they contribute 5%, which equals $442k, of common equity in the issuing entity, RH at Colonie, LLC. In total, the Sponsor contributes 28.8% or $3.39M of the total deal equity, which equals $11.8M. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Provident Bank
  • Loan Type: Permanent Loan
  • Term: 60 Months
  • Loan-to-Value (LTV): 62.50%
  • Loan-to-Cost (LTC): 60.00%
  • Estimated Proceeds: $17,500,000
  • Interest Type: Fixed
  • Annual Interest Rate: Fixed Rate set three (3) days prior to closing equal to greater of 5-year Treasury Rate + 2.15% and 6.50%(2)
  • Interest-Only Period: 24 Months
  • Amortization: 25 Years
  • Prepayment Terms: The Lender shall be entitled to charge and collect a prepayment premium based on the amount prepaid as outlined: 4% in Year 1, 3% in Year 2, 2% in Year 3, and 1% in Years 4-5 with no penalty during the final six months of Year 5.
  • Extension Requirements: No extension

(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 Sponsor's use of debt. 

(2) The proforma assumes a fixed interest rate of 6.50%.

(3) As of 2/14/2024, the U.S. 5-Year Treasury rate is 4.243%.

(4) The Sponsor estimates approximately $6.5M of additional leasing and development costs for the Upper Level, which is to be advanced as additional "good news" capital from their lender subject to the satisfaction of certain conditions precedent.

Distributions

The total equity amount of At Colonie Center is $11.8 million, which can be split as follows:

  1. GP Entities (Principals and Partners of Heidenberg Properties): 25% of the total equity ($2.95M)(1)
  2. RH at Colonie, LLC (Issuing Entity): 75% of the total equity ($8.85M)

Capital Structure at the issuing entity, RH at Colonie, LLC

  1. Heidenberg Properties Group (GP), contributes 5% of total capital ($442k) as common equity(1)
  2. LP Investors contribute 5% of total capital ($442k) as common equity(2)
  3. LP Investors contribute the remaining 90% of total capital ($7.96M) as preferred equity(2)

The PropCo, At Colonie Center 2024, LLC, is distributing 75% of the cash flows to the Issuing Entity, RH at Colonie, LLC, and 25% of the cash flows to the GP entities (1425 Colonie, LLC and SREP Colonie, LLC), which is pari passu.

Heidenberg Properties Group intends to make distributions from RH at Colonie, LLC as follows:

Distributions of Available Net Operating Income:

  1. Pari passu all cash flow available for distribution to each Preferred Equity Investor until such Preferred Equity Investor receives a Preferred Return of 7.5% Per Annum;
  2. Pari passu all cash flow available for distribution to each Preferred Equity Investor, the aggregate amount necessary to pay all accrued and unpaid Shortfalls due and owing to such Preferred Equity Investor in respect of any prior periods;
  3. 50% / 50% (50% to LP Equity Investors / 50% to GP Equity Investors) of all cash flow available for distribution thereafter.(3)

Distributions of Available Net Capital Proceeds:

  1. Pari passu all cash flow available for distribution to each Preferred Equity Investor until such Preferred Equity Investor receives a Preferred Return of 7.5% Per Annum;
  2. Pari passu all cash flow available for distribution to each Preferred Equity Investor, the aggregate amount necessary to pay all accrued and unpaid Shortfalls due and owing to such Preferred Equity Investor in respect of any prior periods;
  3. Pari passu all cash flow available for distribution to each Preferred Equity Investor, the aggregate amount of all capital contributed by such Preferred Equity Investor in respect of its Preferred Interest;
  4. 50% / 50% (50% to LP Equity Investors / 50% to GP Equity Investors) of all cash flow available for distribution thereafter.(3)

Heidenberg Properties Group 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 Heidenberg Properties Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Effective Gross Revenue   $3,005,610 $4,355,311 $4,220,695 $4,265,643 $4,326,529 $4,455,494 $4,628,141 $4,659,567 $4,714,326 $4,781,357
Total Operating Expenses   $920,224 $998,212 $1,058,548 $1,087,037 $1,116,965 $1,150,441 $1,186,513 $1,217,812 $1,250,945 $1,285,498
Net Operating Income   $2,085,386 $3,357,099 $3,162,147 $3,178,606 $3,209,564 $3,305,053 $3,441,628 $3,441,755 $3,463,381 $3,495,859
                       
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5          
Net Cash Flow ($11,799,197) $833,843 $3,528,561 $1,232,551 $1,245,380 $23,164,540          
                       
Investor-Level Cash Flows(4)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5          
Net Cash Flow ($4,060,000) $290,883 $1,081,579 $297,280 $299,569 $5,775,323          
                       
Investor-Level Cash Flows - Hypothetical $50,000 Investment(4)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5          
Net Cash Flow ($50,000) $3,582 $13,320 $3,661 $3,689 $71,125          

 

(1) The Sponsor contributes 25% or $2.95M to the total deal equity of $11.8M. Additionally, they contribute 5%, which equals $442k, of common equity in the issuing entity, RH at Colonie, LLC. In total, the Sponsor contributes 28.8% or $3.39M of the total deal equity, which equals $11.8M. 

(2) LP Investor Capital is allocated 94.737% for Preferred Equity and 5.263% for Common Equity in the issuing entity RH at Colonie, LLC.

(3) The 50/50 split distribution at the issuing entity is a simple split.

(4) 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 Heidenberg Properties Group's materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.00% of Purchase Price Sponsor/Sponsor Affiliate Capitalized Equity Contribution
Disposition Fee(3) 0.50% of Sale Price Sponsor/Sponsor Affiliate Cash Flow
Financing Fee(4) 0.50% of the aggregate principal amount of any loan or refinancing related to the Shopping Center, excluding the acquisition loan Sponsor/Sponsor Affiliate Loan Proceeds
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
Property Management Fee 4.00% of Effective Gross Income Sponsor/Sponsor Affiliate Cash Flow
Leasing Consulting Fee for New Leases(5) 3.0% of fixed base rent for leases under 20,000 square feet (with no outside broker) or 2.0% with an outside broker, and $2.00 per square foot for leases of 20,000 square feet or more. Sponsor/Sponsor Affiliate "Good News" Capital
Hourly Oversight Fee(5) $200.00 for construction oversight or tenant plan reviews at the Shopping Center Sponsor/Sponsor Affiliate "Good News" Capital
Development Fee(5) 5.0% based on the approved construction budget for any Shopping Center Development Project Sponsor/Sponsor Affiliate "Good News" Capital
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) The disposition fee is a one-time fee. However, if the BoA ground lease is sold separately from the rest of the asset as contemplated in the base case underwriting, a disposition fee is charged on the Sale Price of both assets once they are sold.

(4) Additional financing or a refinancing has not been contemplated in the base case underwriting.

(5) Fees are payable in connection with leasing and developing vacant space at the Shopping Center.

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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