FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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Confidentiality Agreement
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Open for investment
Estimated Hold Period 7 Years
Estimated First Distribution 12/2022
...
View Our Due Diligence Process
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Offered By
The GSH Group
Investment Strategy Value-Add
Investment Type Equity
Minimum Investment 1
Overview
The Meadows at Hunters Ridge is a 455-unit apartment community located in Farmington Hills, MI, an affluent suburb in Michigan's wealthiest county, Oakland County.
Location

Hunters Ridge is conveniently located off of 14 Mile Road, just west of Orchard Lake Road, in Farmington Hills, MI. Orchard Lake Road provides direct access to I-696, which connects residents to other major freeways such as I-96, I-275, and I-75. Together, this highway system connects residents to all major employment hubs in southeast Michigan. Orchard Lake Road also serves as this community's major retail corridor, with upscale retailers and grocers such as Whole Foods, Tappers, and Saks Off Fifth.

Value-Add

The Sponsor believes current market rents at the Property are 25% below market, this is due to previous ownership having very low basis in the deal and managing to an occupancy percentage. Farmington Hills is an upper-middle-class community with rising demand for renovated rental products. The Sponsor believes substantial unit renovations will justify rent increases by anywhere from $250-$400 per unit.

Market

Farmington Hills is an affluent community with a high barrier to entry for its residents. Within a 3-mile radius of the Property, the median household income is $101,000 per year. In December 2021, Farmington Hills home prices were up 18.9% compared to last year, selling for a median price of $315,000.

Property at a glance
# of Units 455
# of Buildings 81
Year Built 1972
Current Occupancy 93.8%
Parking Ratio 1.98 per unit
Acquisition Price $107,000,000
Investment Highlights
The Sponsor has the opportunity to purchase Hunters Ridge in Farmington Hills, Michigan for $107,000,000 with a going-in cap rate of 4.59%.
The Property is located in an affluent submarket at the northern end of Farmington Hills, adjacent to West Bloomfield Township, directly across the street from a Whole Foods grocery store.
The Property is comprised of very large apartment units, with an average unit size of 1,565 square feet. Competing nearby apartment complexes average less than 1,000 square feet. This is very beneficial and sought-after in today's market.
Previous ownership has only renovated a small number of units. This presents a generational value-add opportunity due to the large unit sizes and the desirability of the submarket. The Meadows at Hunters Ridge will have comparable interior finishes to newer products when renovated. The units will offer a significant value to future tenants on a rent per square foot basis. The Sponsor expects their units to rent at a 20%-30% discount compared to new products in the submarket.
Upon acquisition, Beztak, the Sponsor's best-in-class management company, will manage the Property to increase rents on renewals and achieve premiums on freshly renovated units.
Management
Cumulative Distributions

The GSH Group

The GSH Group (“The Sponsor") is a real estate investment company focused on class B/workforce housing across the United States. The leadership team has over 40 years of combined experience and the company has over $1 billion assets under management(1), made up of 8,333 multifamily units(2), inclusive of partner legacy assets.

With demonstrated experience as advisors, managers, and resolving problem loans, GSH is attuned to the needs and processing of Special Servicers for the quick disposition of assets. The Sponsor employs a tactical strategy for value creation. Value enhancement is approached from multiple angles and scenarios. These include, but are not limited to, organic rental growth due to market inefficiencies, rent premiums generated through unit upgrades, and decreasing expenses through management efficiencies.

GSH uses applicable, real-time software to help manage all assets on a minute-by-minute basis. Using real-time data, they can effectively keep all projects on track to ensure the business plan's proper implementation. Additionally, GSH is vertically integrated, employing an affiliated general contractor and construction team to ensure projects stay on budget and on time.

(1) Portfolio value includes an assumed value based on current T1/T12 financials and a capitalization rate of 5.00%. This includes certain legacy properties owned and managed by partners.

(2) Units include legacy units owned by the partners as well as units sold.

https://gshrealestate.com/
  • Gideon Pfeffer
    Managing Partner
  • Shmuel Cohen
    Partner
  • Hannan Lis
    Partner
Gideon Pfeffer
Managing Partner

Gideon is responsible for strategic partnership initiatives and ventures, financing and debt opportunities, overseeing investment performance, strategic partner’s performance, and approving decisions on investments and acquisitions. He also oversees daily operations. Prior to GSH, Gideon operated a highly successful aggregation and renovation firm focused on single-family homes in the Midwest and Southeast.

Shmuel Cohen
Partner

Shmuel is responsible for asset management and Israeli Investor relations. An Israeli citizen, Shmuel also owns a separate  portfolio of over 1,300 units in multifamily properties in Michigan and North Carolina. His experience as an owner and operator is an invaluable resource and he is responsible for the continued success of raising private capital in Israel for The GSH Group.

Hannan Lis
Partner

Hannan is responsible for banking, investor relations, and branding. He is an experienced real estate investor, owns several businesses, and is an active member of a prominent family office in Michigan. Hannan is president of WW Group, which holds Weight Watchers franchises for Michigan and Ontario, Canada. The company was formerly the largest franchisee in the Americas.

Track Record

GSH Group Track Record

Property City, State Asset Type Acq Date Units Purchase Price Sale Price
Cadieux Detroit, MI  Multifamily 2012 131 $900,000 $1,900,000
Greenfield Detroit, MI  Multifamily 2016 99 $1,750,000 $2,424,500
Cornerstone Apartments Detroit, MI  Multifamily 2016 476 $8,900,000 $12,025,000
Chapel Oaks Apartments Fort Wayne, IN Multifamily 2017 320 $7,500,000 $10,500,000
Holcomb, Chicago, Collage, & Jefferson Detroit, MI  Multifamily 2012 210 $2,450,000 $3,645,000 (1)
Whittier & Morang Detroit, MI  Multifamily 2012 44 $460,000 Under Management
Chapel Court Detroit, MI  Multifamily 2013 184 $2,090,000 Under Management
Pallister Detroit, MI  Multifamily 2016 187 $7,400,000 Under Management
Marina Bay Gibraltar, MI Multifamily 2016 137 $4,900,000 Under Management
Wakefield Apartments Southfield, MI Multifamily 2017 67 $7,200,000 Under Management
Ridge Pointe Apartments Conover, NC Multifamily 2017 160 $11,000,000 Under Management
Holiday Garden Apartments Mount Clemens, MI Multifamily 2017 64 $2,575,000 Under Management
Eastland Village Harper Woods, MI Multifamily 2017 408 $21,750,000 Under Management
Utica Square Apartments Roseville, MI Multifamily 2018 266 $11,000,000 Under Management
Barwin Place Mount Clemens, MI Multifamily 2018 48 $2,100,000 Under Management
Birch Hill Apartments Westland, MI Multifamily 2018 173 $10,650,000 Under Management
Hoover Square Warren, MI Multifamily 2018 342 $18,950,000 Under Management
Colony Club Bedford, OH Multifamily 2019 588 $35,515,200 Under Management
Louis Apartments Detroit, MI  Multifamily 2019 28 $962,000 Under Management
Pickford Apartments Detroit, MI  Multifamily 2019 35 $1,122,500 Under Management
Stacey Ann Apartments Detroit, MI  Multifamily 2019 49 $1,565,500 Under Management
Polo Club Marshall, MI Multifamily 2019 80 $3,400,000 Under Management
The Loop On Greenfield Oak Park, MI Multifamily 2019 717 $59,700,000 Under Management
Glengarry Park Waterford, MI Multifamily 2020 300 $22,650,000 Under Management
Foote Hills Grand Rapids, MI Multifamily 2020 182 $24,950,000 Under Management
BLVD West Apartments(2) Lansing, MI Multifamily 2021 144 $23,000,000 Under Management
The Landings on East Hill(2) Grand Blanc, MI Multifamily 2021 148 $14,800,000 Under Management
Veridian Castleton(2) Indianapolis, IN Multifamily 2021 398 $44,500,000 Under Management
Laurel Pines(2) Laurel, MD Multifamily 2021 235 $38,250,000 Under Management
The Orion Lake Orion, MI Multifamily 2021 200 $27,375,000 JV-Under Management
The Preserve at Spring Lake(2) Altamonte Springs, FL Multifamily 2021 320 $62,800,000 Under Management
The Meadows at Capitol Heights Capitol Heights, MD Multifamily 2021 272 $49,100,000 Under Management
Sherwood Oaks Riverview, FL Multifamily 2021 199 $35,000,000 JV-Under Management
The Meadows at Canton(2) Canton, MI Multifamily 2021 736 $125,715,000 Under Management
The Meadows at Farmington Hills(2) Farmington Hills, MI Multifamily 2021 424 $81,350,000 Under Management
Total       8,333 $773,580,200  

(1) Holcomb, Chicago, Collage, and Jefferson were a portfolio acquisition totaling 210 units in 2012. Holcomb, which makes up 90 of the 210 total units, was sold for $3,645,000. All of the other properties are still under management.

(2) JV Equity raised through RealtyMogul Platform.

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

The Real Estate Company estimates units at Hunters Ridge are currently renting about 25% below market rent. The average rent at 1980's vintage properties in Farmington Hills is over $300 higher than the average rent at Hunters Ridge. Furthermore, almost all of the units at Hunters Ridge have classic interiors or were renovated over twenty years ago. This presents a unique value-add opportunity in a Class-A submarket that supports the economics and potential premiums for an upscale renovation package. Compared to newer products, units at the Property are significantly larger with proforma leases 20% - 30% lower than newer multi-family communities.

CapEx Budget

Interior Renovation $ Amount Per Unit
Paint Scheme $694,620 $1,530
New Cabinetry $1,144,080 $2,520
New Flooring (Plank) $2,655,900 $5,850
Hard Surface Countertops $817,200 $1,800
New Hardware $183,870 $405
Bathroom Vanity $122,580 $270
Doors $286,020 $630
Lighting Upgrade $306,450 $675
Appliances $694,620 $1,530
Rewiring Electrical $204,300 $450
Demo Kitchen Wall $245,160 $540
Glaze $183,870 $405
Blinds $163,440 $360
USB Outlets $61,290 $135
Contingency $862,600 $1,900
Total Interior Renovation $8,626,000 $19,000
     
Exterior Renovation    
Entry Doors $180,000 $396
Hallways $900,000 $1,978
Mansard Roofs $800,000 $1,758
Clubhouse Redevelopment $900,000 $1,978
Amenities $450,000 $989
Roofs $900,000 $1,978
Windows $600,000 $1,319
HVAC $650,000 $1,429
Hot Water Heaters $250,000 $549
Pool $150,000 $330
Landscaping $250,000 $549
Egrain $40,000 $88
Signage $75,000 $165
Door Hardware $136,200 $299
Lighting $130,000 $286
Parking Lot Resurfacing (Y3) $650,000 $1,429
Exterior Paint $650,000 $1,429
Foundations, Basements & Garages $1,000,000 $2,198
Basements  $500,000 $1,099
Contingency $1,742,240 $3,829
Total Exterior Renovation $10,953,440 $24,073
Grand Total $19,579,440 $43,073
Property Information

Hunters Ridge is a 455-unit apartment community located at 31200 Hunters Drive, Farmington Hills, Michigan. The Property was originally established as a 487-unit gated condominium community with 455 units under common ownership and 32 individually owned units. Upon acquisition, The Real Estate Company will have the controlling interest over the condominium association. Hunters Ridge benefits from the strength of the Farmington Hills submarket and its high barriers-to-entry. Within a 3-miles radius of the property, the median household income is $101,000 per year. In December 2021, Farmington Hills home prices were up 18.9% compared to last year, selling for a median price of $315,000. Residents of Hunters Ridge enjoy nearby access to I-696, I-96, M-5 and M-10/Northwestern Highway. These roadways provide short commute times to all major employment centers throughout the metro area.

Current ownership acquired the Property from its long term owner who managed and maintained the property for over four decades. Hunters Ridge was part of a large portfolio sale in the summer of 2021. Previous ownership kept rents substantially below market rates and never completed any interior renovations. Hunters Ridge presents a generational value-add opportunity. All units at Hunters Ridge are outdated and primed for modernization. Hunters Ridge offers large floor plans that are uncommon in newer vintage communities. The Real Estate Company's high-end renovation package will allow Hunters Ridge to stand out in this market. Hunters Ridge will have comparable interior finishes to newer product. However, it will offer a significant value to tenants because of larger unit size. The Real Estate Company's management and renovation programs will significantly increase net rental income throughout their ownership period. 

Rent Roll

Property Units SF Avg Rent In-Place Avg Stabilized Rent Stabilized Rent PSF Stabilized Unit Count
1b/1.5b 72 1,040 $951 $1,410 $1.36 72
2b/1.5b TH 12 1,136 $1,275 $1,889 $1.66 12
2b/2b 7 1,265 $1,130 $1,675 $1.32 7
2b/2b 7 1,265 $1,083 $1,605 $1.27 7
2b/2b TH 6 1,310 $1,300 $1,926 $1.47 6
2b/2b 18 1,330 $1,340 $1,986 $1.49 18
2b/2b 18 1,330 $1,346 $1,995 $1.50 18
3b/1.5b TH 16 1,400 $1,435 $2,127 $1.52 16
2b/2.5b TH 6 1,460 $1,325 $1,963 $1.34 6
2b/2b TH 14 1,499 $1,499 $2,221 $1.48 14
2b/2b 18 1,500 $1,394 $2,067 $1.38 18
2b/2b 22 1,500 $1,342 $1,989 $1.33 22
2b/2b 21 1,635 $1,415 $2,097 $1.28 21
2b/2b 21 1,635 $1,350 $2,000 $1.22 21
3b/2.5b TH 6 1,660 $1,490 $2,208 $1.33 6
2b/2b 47 1,740 $1,428 $2,116 $1.22 47
2b/2b 47 1,740 $1,415 $2,097 $1.21 47
2b/2b 2 1,800 $1,590 $2,356 $1.31 2
2b/2b 1 1,800 $1,455 $2,156 $1.20 1
3b/2b 4 1,999 $1,400 $2,075 $1.04 4
3b/2b 3 1,999 $1,413 $2,095 $1.05 3
3b/2b 40 2,000 $1,687 $2,500 $1.25 40
3b/2b 44 2,000 $1,611 $2,387 $1.19 44
3b/2b 3 2,764 $1,970 $2,920 $1.06 3
Total 455 1,565 $1,366 $2,024 $1.29 455
Comparables

Lease Comparables

  Citation Club Aldingbrooke Chimney Hill Muirwood Ascent at Farmington Hills Averages Subject (Proforma)
Year Built 1989 1998 1986 1998 1986 1991 1973
Average Rental Rate $1,687 $2,000 $1,650 $1,550 $1,555 $1,688 $1,365
Average Unit Size 1,118 1,807 1,035 1,077 1,068 1,221 1,566
Average $/SF $1.51 $1.11 $1.59 $1.44 $1.46 $1.42 $0.87
Distance from Subject 4.9 mi 3.6 mi 1.2 mi 6.7 mi 4.4 mi 4.2 mi 0.0 mi
               
$/Unit (1x1) $1,379 $1,307   $1,192 $1,465 $1,336 $972
SF (1x1) 768 1,000   735 975 870 1,058
$/SF (1x1) $1.80 $1.31   $1.62 $1.50 $1.56 $0.92
               
$/Unit (2x2) $1,725 $1,877 $1,656 $1,503 $1,645 $1,681 $1,387
SF (2x2) 1,209 1,738 1,050 1,155 1,160 1,262 1,506
$/SF (2x2) $1.43 $1.08 $1.58 $1.30 $1.42 $1.36 $0.92
               
$/Unit (3x2) $1,920 $2,718   $2,133   $2,257 $1,485
SF (3x2) 1,285 1,418   1,370   1,358 1,744
$/SF (3x2) $1.49 $1.92   $1.56   $1.66 $0.85

Sales Comparables

  Fountain Park Novi Fountain Park Westland Manors at Knollwood Averages Subject
Date Sold 10/1/2021 10/1/2021 9/1/2021 9/15/2021  
Year Built 1988 1987 1994 1990 1972
Units 264 448 600 437 455
Sale Price $57,500,000 $73,500,000 $131,250,000 $87,416,667 $107,000,000
$/Unit $217,803 $164,063 $218,750 $200,205 $235,165
Location Novi Westland Clinton Twp   Farmington Hills
Distance from Subject 9.0 mi 17.7 mi 30.4 mi 19.0 mi 0.0 mi

Please see attachments for more information.

Location Information

Market Overview

The Detroit MSA is home to over 4.4 million residents, making it the second-most populous metro in the Midwest and the 14th-most populous in the nation. While the Detroit economy is primarily known for automobile manufacturing, this economy has gone through significant diversification over the past decade. Today, the Detroit MSA is home to more than 315,000 companies - including 10 Fortune 500 companies and 18 Fortune 1000 companies that employ over 820,000 people. These major corporations generate a combined revenue of over $443 billion annually. The largest industries across the metro include technology, logistics, smart manufacturing, research, engineering & design, corporate & professional services, and financial services.

Submarket Overview

Hunters Ridge is a well-located Property in Farmington Hills, Michigan. Farmington Hills is one of the largest upper-middle income communities in Southeast Michigan, located in Oakland County. The Property's location on 14 Mile Road just west of Orchard Lake Road and north of I-696, gives residents excellent linkages to major employment hubs located off of I-696 in Farmington Hills, Novi, and Southfield. Major area employers are located in and around the Southfield Town Center Complex as well as several large business parks that flank I-696. The Property is located just off Orchard Lake Road, which serves as this region's major retail corridor. There is a long list of upscale grocers, retailers, and restaurants within one mile of the Property. Notable businesses include Whole Foods, Saks Off Fifth, Tappers, and a Ferrari dealership. Farmington Hills schools are excellent. This community continues to expand to meet the growing population. There are multiple Class-A multi-family communities currently in the early stages of development along Orchard Lake Road within a mile of the Property. These new developments will only strengthen the desirability of this submarket.

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $103,796,000 $228,123
GP Investor Equity $4,530,000 $9,956
LP Investor Equity $30,187,000 $66,345
Total Sources of Funds $138,513,000 $304,424
     
Uses of Funds $ Amount $/Unit
Purchase Price $107,000,000 $235,165
Transactional Costs $1,807,000 $3,971
Acquisition Fee $2,140,000 $4,703
Closing and Due Diligence Fee (1) $1,902,000 $4,180
Tax and Insurance Reserves $1,985,000 $4,363
Initial Capital Plan Funds $19,579,000 $43,031
Working Capital and Reserves $2,600,000 $5,714
Condominium Association Fees $1,500,000 $3,297
Total Uses of Funds $138,513,000 $304,424

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

(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Arbor
  • Term: 10 Years
  • LTC: 81.5%
  • Estimated Proceeds: $103,796,000
  • Interest-Type: Floating
  • Spread above one-month LIBOR: 3.75% + 1-month CME Term SOFR
  • Interest-Only Period: 3 Years
  • Amortization: None
  • Prepayment Terms: Borrower must pay 1% of the maximum loan amount. Exit fee is reduced to 0.5% of the maximum loan amount if early exit is the result of a sale.
  • Extension Requirements: One twelve (12) month extension. Extension fee is one-quarter of one percent (0.25%) of maximum loan amount.
  • Modeled Refinance: Yes
  • Refinance Date: 4/1/2025
  • Lender: TBD
  • Term: 12 Years
  • Estimated Proceeds: $118,268,000
  • Interest Type: Fixed
  • Annual Interest Rate: 4.5%
  • Interest-Only Period: 7 Years
  • LTV: 77%
  • Amortization: 30 Years

There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated 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.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging.  Leveraging increases the risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

Distributions

The GSH Group intends to make distributions as follows:

  1. To the Investors, pari passu, all operating cash flows to a 9.0% Preferred Return;
  2. 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow thereafter.

The GSH 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 December 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of The GSH Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

The GSH Group will receive a promoted/carried interest as indicated above, and a portion of this promoted/carried interest may be received by RM Admin, LLC.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Effective Gross Revenue   $8,760,184 $11,021,210 $12,152,343 $12,765,035 $13,132,346 $13,483,085 $13,844,347 $14,216,446
Total Operating Expenses   $4,203,308 $4,358,141 $4,472,625 $4,573,167 $4,667,991 $4,763,993 $4,862,021 $4,962,118
Net Operating Income   $4,556,876 $6,663,068 $7,679,718 $8,191,868 $8,464,355 $8,719,092 $8,982,326 $9,254,328
                   
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7  
Net Cash Flow -$34,717,000 $1,723,249 $2,196,509 $16,084,193 $2,678,323 $2,943,464 $2,991,186 $66,220,961  
                   
Investor-Level Cash Flows (1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7  
Net Cash Flow -$5,000,000 $192,185 $260,345 $2,260,472 $329,737 $367,923 $374,796 $7,341,616  
                   
Investor-Level Cash Flows - Hypothetical $50,000 Investment (1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7  
Net Cash Flow -$50,000 $1,922 $2,603 $22,605 $3,297 $3,679 $3,748 $73,416  

(1) Returns are net of all fees.  Such Fees include fees paid to RM Admin, an affiliate of RealtyMogul, who charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor.  Please see the Fees and Disclaimers sections and Disclaimers sections below for additional information concerning fees paid to RM Admin. 

RM Technologies, LLC and its affiliates does not provide any assurance of returns.  The content on this Page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof.  Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates.  There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved.  For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below. 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to The GSH 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 Notes
Acquisition Fee 2% of Purchase Price GSH Group LLC Capitalization  
Buyer Broker Fee 2% of Purchase Price Momentum Realty LLC Seller Proceeds GSH Affiliate
Refinance Fee 1% of Refinance Proceeds GSH Group LLC Loan Proceeds  
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From  
Administrative Solutions Fee Flat quarterly fee of $125 per investor services through the Administration Solution RM Technologies, LLC(2) Cash Flow  
Asset Management Fee 2% of Effective Gross Income GSH Group LLC Operations  

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

(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies, LLC’s proprietary Platform and receive Platform-related services.  An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s).  RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

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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