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Multifamily
Louisville Multifamily - Chestnut Ridge
Jeffersontown, KY
Completed Equity
100% funded
...
Louisville Multifamily - Chestnut Ridge
Jeffersontown, KY
All Investments > Louisville Multifamily - Chestnut Ridge
...
Overview
Louisville Multifamily - Chestnut Ridge
Acquisition of a well located multifamily property in Louisville, KY by an experienced repeat Sponsor.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 9/2017
Estimated Hold Period 7 years
Investment Strategy Value-Add
Investment Type Equity
Year Built 1968
Number of Units 384
Current Occupancy 92%
Parking Ratio 1.38 spaces/unit
Sponsor Documents
The offering documents above 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.
Deal Highlights
Investment Highlights
Well Located Near Employment Centers, Retail Amenities and Within the Jeffersontown School District
Well Occupied With In-Place Cash Flow
Post-Renovation Rents Compare Favorably to Comps
Will Be the Sixth Transaction With the Sponsor on RealtyMogul.com
Well Located Near Employment Centers, Retail Amenities and Within the Jeffersontown School District
Well Occupied With In-Place Cash Flow
Post-Renovation Rents Compare Favorably to Comps
Will Be the Sixth Transaction With the Sponsor on RealtyMogul.com
Contact Us
Questions before investing?
Speak with our Investor Relations team.
Schedule a Call
Management
For more information, view the Sponsor's Investment Memorandum.
Birge & Held Asset Management

Birge & Held is a national apartment real estate, private equity and investment firm located in Carmel, Indiana.  In an effort to take advantage of strategic real estate acquisition opportunities in the distressed real estate marketplace, J. Taggart Birge and Andrew J. Held started what is now Birge & Held in 2008.  Birge & Held has acquired and managed over $400,000,000 in multi-family assets across the country and currently employs over 80 professionals, per the Sponsor.  Through private equity and creative debt structures, Birge & Held continues to grow its portfolio of assets.  For capital investors who seek to identify and pursue apartment real estate opportunities, Birge & Held provides an experienced operating partner.

Sponsor Track Record
Currently Owned Assets
Property Name Location Number of Units Date Acquired Total Cost Basis
Aurum Indianapolis, IN 208 2/12/13 $13,940,593
Beacon Hill Apartments Indianapolis, IN 14 4/1/13 $1,000,000
Clinton Estates Indianapolis, IN 184 7/1/13 $13,553,680
College Court Condominiums Frankfort, IN 48 11/25/13 $1,800,000
Cypress Square Apartments Indianapolis, IN 188 3/27/14 $12,350,000
Eagle Creek Apartments Muncie, IN 67 4/25/14 $5,279,925
Echo Ridge Apartments Muncie, IN 36 4/25/14 $2,376,609
Elston Point Apartments Elkhart, IN 76 10/16/14 $3,550,000
English Village Apartments Elkhart, IN 95 10/16/14 $3,300,000
Greenleaf Hunter's Pond Apartments Indianapolis, IN 208 10/22/14 $8,600,000
Kensington/Chesterfield South Bend, IN 60 11/7/14 $6,000,000
Parc Bordeaux Apartments Bloomington, IN 62 11/7/14 $4,000,000
Pheasant Run Apartments Indianapolis, IN 208 12/9/14 $8,700,000
Railway Manor Bloomington, IN 32 8/31/15 $3,575,000
Regency Park Indianapolis, IN 632 9/18/15 $45,000,000
The Arbors Bloomington, IN 24 10/6/15 $2,732,000
The Oaks of Eagle Creek Apartments Indianapolis, IN 304 12/22/15 $15,322,000
Walnut Springs Apartments Lafayette, IN 62 1/19/16 $3,882,000
Woodwind Apartments Lafayette, IN 44 1/28/16 $2,220,000
The Villager Centerville, OH 276 2/19/16 $22,900,000
Chesapeake Landing Centerville, OH 256 4/28/16 $22,110,000
Beechmill Apartments Indianapolis, IN 256 5/6/16 $19,175,000
Trails at Lakeside Apartments Indianapolis, IN 208 9/8/16 $18,100,000
Lakeshore Apartments Indianapolis, IN 740 9/15/16 $84,900,000
Cross Creek Apartments Indianapolis, IN 208 1/9/17 $14,725,000
Total   4,496   $339,091,808
Sold Assets
Property Name Location Number of Units Date Acquired Total Cost Basis Sale Price
Harborview Condominiums San Diego, CA 81 3/1/09  $20,406,491 $22,000,000
Bear Valley Apartments San Diego, CA 24 11/8/10  $4,200,000 $4,900,000
Walnut Manor Apartments Muncie, IN 120 11/30/11  $2,471,700 $4,850,000
Centro Apartments San Diego, CA 60 12/19/11  $11,213,764 $15,800,000
Palm Valley Apartments Goodyear, AZ 264 4/1/12  $22,925,000 $27,200,000
Fox Brook Apartments Muncie, IN 41 4/2/12  $1,275,000 $1,900,000
Total   590   $62,491,955 $76,650,000
Total Currently Owned and Sold   5,086   $401,583,763 $76,650,000

*Performance information provided by the Sponsor

Website
Management Team
Management
Tag Birge - CEO

Mr. Birge has been involved in commercial development and financing since 1997. He graduated cum laude from Indiana University in 1993 (BA – Political Science). In 1997, he received his JD from the University of Virginia and joined Bose McKinney & Evans, LLP, Indianapolis, Indiana, as an associate, becoming a partner in the real estate group in 2004. His legal practice focused on office and industrial development representing Duke Realty Corporation on numerous transactions around the United States. As an attorney, Mr. Birge was ranked by his peers as one the best real estate attorneys in the State of Indiana. 

In 2004, Mr. Birge withdrew from the partnership of Bose McKinney & Evans and joined Lauth Property Group. While at Lauth Property Group, Mr. Birge developed approximately $200 million worth of office and health care buildings around the country. Initially, Mr. Birge ran the Midwest office and health care development for Lauth Property Group and in 2007 assumed responsibility for all of Lauth’s medical development in the United States. During his tenure at Lauth, they were named a top ten developer of medical office buildings as tracked by Modern Healthcare. 

Since 2008, Mr. Birge has overseen the acquisition, financing and management of BH's $230 million in multifamily assets. Mr. Birge currently serves on the Board of Directors of Bowen Engineering, the Sports Corporation Board, Heart of Gold Charity Board, and the Orchard School Board of Trustees.

Management
Andrew Held - President & COO

Mr. Held has been involved in commercial and residential development and financing since 2003. He graduated from Indiana University in 1999 (BA – History) where he was a student-athlete and received academic All-American honors. In 2002, he received his JD from the Indiana University School of Law and practiced with the law firms of Hackman Hullet & Cracraft and Bose McKinney & Evans. His practice areas focused on commercial and residential real estate development, handling acquisitions, leasing, financing and dispositions for many of the largest commercial development and construction companies in the United States.

In 2007, Mr. Held received his MBA with a finance focus from Butler University. Since 2008, Mr. Held has overseen BH’s acquisition, financing and management of the company’s $230 million in multifamily assets. Mr. Held currently serves as the President of the Penrod Society focused on raising millions of dollars to serve the Indiana cultural and arts community. He was recently named to the Indianapolis Business Journal’s 2013 “Forty Under Forty” Class.

Property
For more information, view the Sponsor's Investment Memorandum.

Chestnut Ridge is a 384-unit garden-style apartment complex located at 9601 Balsam Way, Jeffersontown, KY. Built in 1968, the unit mix consists of 72 one (1) bedroom, one (1) bathroom units, 201 two (2) bedroom, one (1) bathroom units, 51 two (2) bedroom, one and a half (1.5) bathroom units, 31 three (3) bedroom, one (1) bathroom units, and 29 three (3) bedroom, one and a half (1.5) bathroom units across 15 buildings. Current occupancy is 92% with in-place rents averaging $723 and ranging from $624 for one bedrooms and $851 for three bedrooms.

Amenities at the Property include a fitness center, a pool, laundry room, clubhouse, dog park, tennis court, playground, and mature landscaping. There are 528 parking spaces for a parking ratio of 1.38 spaces/unit. The Seller has renovated 23 unit interiors to date which are currently achieving rental premiums of $50-125 over unrenovated units. 

Unit Mix
Unit Type # of Units Avg SF/Unit In-Place Rent Rent/SF Stabilized Rent Rent/SF
1 Bed, 1 Bath 72 850 $624 $0.73 $659 $0.78
2 Bed, 1 Bath 201 950 $721 $0.76 $783 $0.82
2 Bed, 1.5 Bath 51 950 $739 $0.78 $774 $0.81
3 Bed, 1 Bath 31 1,000 $826 $0.83 $861 $0.86
3 Bed, 1.5 Bath 29 1,000 $851 $0.85 $886 $0.89
Total 384 939 $723 $0.77 $773 $0.82


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Comparables
For more information, view the Sponsor's Investment Memorandum.
Rental Comparables
  Saddle River Four Seasons The Park at Hurstbourne Mallgate at Saint Matthews Breckenridge Square Total / Averages Subject - Stabilized
Year Built 1972 1975 1976 1969 1970 1972.4 1968
# 1 Bed Units 40 52 106 129 112 88 72
1 Bedroom Rent $742 $625 $737 $675 $734 $705 $654
SF 914 700 850 768 800 801 850
# 2 Bed Units 150 84 159 246 32 134 252
2 Bedroom Rent $852 $745 $777 $832 $814 $812 $780
SF 1,291 1,000 967 1,065 1,000 1,081 950
# 3 Bed Units 38 40 53 38 40 42 60
3 Bedroom Rent $998 $900 $882 $1,008 $1,024 $957 $870
SF 1,525 1,500 1,260 1,301 1,550 1,417 1,000
Distance 2.4 mi 1.9 mi 3.2 mi 3.8 mi 4.0 mi    
Sales Comparables
  Subject Saddle River Woodbridge Apts Willowbrook Apts Enclave at Breckenridge Carlisle Arms Total / Averages
Date May-17 February-17 January-16 December-16 January-17 February-16  
# of Units 384 228 360 120 384 67 232
Year Built 1968 1972 1984 1970 1970 1971 1973
Purchase Price $26,000,000 $21,000,000 $30,450,000 $6,175,000 $34,000,000 $4,500,000 $19,225,000
$/Bed $67,708 $92,105 $84,583 $51,458 $88,542 $67,164 $82,938
Cap Rate 7.54% 5.50% 6.22% N/A N/A N/A 5.86%
Distance   2.4 mi 6.1 mi 5.5 mi 3.7 mi 4.4 mi  

 

Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $19,012,012
Equity $8,404,988
Total Sources of Funds $27,417,000
Uses of Funds Cost
Purchase Price $26,000,000
CapEx Reserve $1,000,000
Sponsor Acquisition/Guarantor Fee $390,000
Sr. Loan Assumption Costs $490,650
Supplemental Loan Financing Costs $98,500
Closing Costs $50,000
Working Capital $285,558
Broker Dealer Fee $64,000
Tax, Rent, CapEx and Deposit Credits ($961,708)
Total Uses of Funds $27,417,000
Debt Assumptions

The projected terms of the debt financing are as follows:

Loan Assumption: Due to the yield maintenance provisions, the Sponsor anticipates assuming the loan currently in place at the Property and plans to obtain additional supplemental financing from the existing lender which is to be coterminous with the existing debt. 

  • Lender: Fannie Mae (Arbor)
  • Estimated Balance at Closing: $15,712,012
  • Rate: Fixed (5.36%)
  • Amortization: 30 years
  • Maturity Date: February 2024
  • Prepayment Penalty: Yield maintenance until July 2023

Supplemental Debt:

  • Lender: Fannie Mae (Arbor)
  • Estimated Proceeds: $3,300,000
  • Rate: 7 Year Treasury + 3.43% (5.61% as of 4/6/2017). Rate has not been locked yet, RM has assumed a rate of 5.75% for underwriting purposes. 
  • Amortization: 30 years
  • Maturity Date: February 2024
  • Prepayment Penalty: Yield maintenance until August 2023, 1% thereafter

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

Distributions

BH Chestnut Ridge, LLC intends to make distributions to investors (Realty Mogul 78, LLC, Sponsor and Other LP Investors, collectively, the "Members")  as follows:

Operating Cash Flow

  1. First, to investors for any accumulated unpaid preferred return
  2. Second, a cumulative non-compounded 8% annual preferred return
  3. Then, any excess balance will be split 70% to members ​pari passu (which will reduce the Member's capital accounts) and 30% to Sponsor.

Capital Events (sale, refinance)

  1. First, to investors for any accumulated unpaid preferred return
  2. Second, a cumulative non-compounded 8% annual preferred return
  3. Third, return of capital
  4. Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor.

Note that these distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).

Realty Mogul 78, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 78, LLC (the RealtyMogul.com investors). 

Distributions are expected to start in September 2017 and are expected to continue on a semi-annual basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Expectations
  2017 2018 2019 2020 2021 2022 2023
Effective Gross Revenue $2,637,694 $3,686,821 $3,830,276 $3,959,566 $4,083,087 $4,205,782 $4,331,955
Total Operating Expenses $1,228,109 $1,673,610 $1,719,784 $1,766,697 $1,814,680 $1,863,943 $1,914,677
Net Operating Income $1,409,586 $2,013,211 $2,110,492 $2,192,869 $2,268,407 $2,341,839 $2,417,278
Annual Debt Service $1,003,490 $1,337,987 $1,337,987 $1,337,987 $1,337,987 $1,337,987 $1,337,987

Distributions to Realty
Mogul 78, LLC Investors

$62,049 $108,438 $124,230 $131,944 $141,196 $149,987 $2,990,864
Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

Type of Fee Amount of Fee Received By Paid From Notes
One-Time Fees
Acquisition/Guarantor Fee $390,000 Sponsor Capitalized Equity Contribution 1.5% of the Property purchase price
Broker-Dealer Fee $64,000 North Capital (1) Capitalized Equity Contribution 4.0% of the amount of equity raised by RealtyMogul.com
Recurring Fees
Property Management Fee 3.0% of Effective Gross Income Sponsor Operating Cash Flow  
Management and Administrative Fee 1.0% of amount invested in Realty Mogul 78, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 78, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

Notes:
(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

(2) Fees may be deferred to reduce impact to investor distributions.

The above presentation is based upon information supplied by the Sponsor or others.  Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 78, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $19,012,012
Equity $8,404,988
Total Sources of Funds $27,417,000
Uses of Funds Cost
Purchase Price $26,000,000
CapEx Reserve $1,000,000
Sponsor Acquisition/Guarantor Fee $390,000
Sr. Loan Assumption Costs $490,650
Supplemental Loan Financing Costs $98,500
Closing Costs $50,000
Working Capital $285,558
Broker Dealer Fee $64,000
Tax, Rent, CapEx and Deposit Credits ($961,708)
Total Uses of Funds $27,417,000
Debt Assumptions

The projected terms of the debt financing are as follows:

Loan Assumption: Due to the yield maintenance provisions, the Sponsor anticipates assuming the loan currently in place at the Property and plans to obtain additional supplemental financing from the existing lender which is to be coterminous with the existing debt. 

  • Lender: Fannie Mae (Arbor)
  • Estimated Balance at Closing: $15,712,012
  • Rate: Fixed (5.36%)
  • Amortization: 30 years
  • Maturity Date: February 2024
  • Prepayment Penalty: Yield maintenance until July 2023

Supplemental Debt:

  • Lender: Fannie Mae (Arbor)
  • Estimated Proceeds: $3,300,000
  • Rate: 7 Year Treasury + 3.43% (5.61% as of 4/6/2017). Rate has not been locked yet, RM has assumed a rate of 5.75% for underwriting purposes. 
  • Amortization: 30 years
  • Maturity Date: February 2024
  • Prepayment Penalty: Yield maintenance until August 2023, 1% thereafter

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

Distributions

BH Chestnut Ridge, LLC intends to make distributions to investors (Realty Mogul 78, LLC, Sponsor and Other LP Investors, collectively, the "Members")  as follows:

Operating Cash Flow

  1. First, to investors for any accumulated unpaid preferred return
  2. Second, a cumulative non-compounded 8% annual preferred return
  3. Then, any excess balance will be split 70% to members ​pari passu (which will reduce the Member's capital accounts) and 30% to Sponsor.

Capital Events (sale, refinance)

  1. First, to investors for any accumulated unpaid preferred return
  2. Second, a cumulative non-compounded 8% annual preferred return
  3. Third, return of capital
  4. Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor.

Note that these distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).

Realty Mogul 78, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 78, LLC (the RealtyMogul.com investors). 

Distributions are expected to start in September 2017 and are expected to continue on a semi-annual basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Expectations
  2017 2018 2019 2020 2021 2022 2023
Effective Gross Revenue $2,637,694 $3,686,821 $3,830,276 $3,959,566 $4,083,087 $4,205,782 $4,331,955
Total Operating Expenses $1,228,109 $1,673,610 $1,719,784 $1,766,697 $1,814,680 $1,863,943 $1,914,677
Net Operating Income $1,409,586 $2,013,211 $2,110,492 $2,192,869 $2,268,407 $2,341,839 $2,417,278
Annual Debt Service $1,003,490 $1,337,987 $1,337,987 $1,337,987 $1,337,987 $1,337,987 $1,337,987

Distributions to Realty
Mogul 78, LLC Investors

$62,049 $108,438 $124,230 $131,944 $141,196 $149,987 $2,990,864
Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

Type of Fee Amount of Fee Received By Paid From Notes
One-Time Fees
Acquisition/Guarantor Fee $390,000 Sponsor Capitalized Equity Contribution 1.5% of the Property purchase price
Broker-Dealer Fee $64,000 North Capital (1) Capitalized Equity Contribution 4.0% of the amount of equity raised by RealtyMogul.com
Recurring Fees
Property Management Fee 3.0% of Effective Gross Income Sponsor Operating Cash Flow  
Management and Administrative Fee 1.0% of amount invested in Realty Mogul 78, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 78, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

Notes:
(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

(2) Fees may be deferred to reduce impact to investor distributions.

The above presentation is based upon information supplied by the Sponsor or others.  Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 78, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

Disclosures
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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