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Mixed-Use
Kings Landing - Member Loan 2024
Creve Coeur, MO
Open to Invest
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Kings Landing - Member Loan 2024
Creve Coeur, MO
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Overview
Kings Landing - Member Loan 2024
Kings Landing is a 2005 built, 152-unit multifamily asset with four ground-floor retail spaces located in Creve Coeur, an affluent suburb of St. Louis, MO.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 2/2022
Minimum Investment 1
Estimated Hold Period 5 Years
Investment Strategy Value-Add
Investment Type Debt
Year Built 2005
# of Units 152
Current Occupancy 98%
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
RM Communities is acquiring the Property for $40.1 million, which represents a going-in cap rate of 4.47% on expected year one net operating income.
Kings Landing is primed for a renovation, as it is the only property in the submarket built between 2001-2015. A capital improvement budget of $3.7 million (or $24,401 per unit) has been capitalized for interior and exterior renovations.
RM Communities intends to increase rents to an average of $1,799 /unit, an increase driven by a full high-end renovation, which includes vinyl flooring, hard surface countertops, updated cabinets, modern fixtures and hardware, new lighting, and a tech package. Exterior and common area expenditures include painting and carpentry, hallway refresh, roof repairs, landscaping, signage, and upgrading the fitness center, clubhouse, and barbeque area. Post-renovated rent figures will remain well below newer built rent comps.
RM Communities will retain property manager Village Green, a nationally recognized property management company. Village Green's expertise and familiarity with the market provide higher assurance of projected performance.
Due to the favorable financing environment, the Property is projected to have solid cash flow out of the gate with a projected year one cash-on-cash of 5.7%. Year two cash-on-cash projection is 8.2% as the renovation program accelerates and the one vacant retail space is leased up.
The exit strategy is to sell the Property in five years at an anticipated blended cap rate of 5.10% (5.0% from the residential revenue and 6.5% from the retail revenue).
RM Communities is acquiring the Property for $40.1 million, which represents a going-in cap rate of 4.47% on expected year one net operating income.
Kings Landing is primed for a renovation, as it is the only property in the submarket built between 2001-2015. A capital improvement budget of $3.7 million (or $24,401 per unit) has been capitalized for interior and exterior renovations.
RM Communities intends to increase rents to an average of $1,799 /unit, an increase driven by a full high-end renovation, which includes vinyl flooring, hard surface countertops, updated cabinets, modern fixtures and hardware, new lighting, and a tech package. Exterior and common area expenditures include painting and carpentry, hallway refresh, roof repairs, landscaping, signage, and upgrading the fitness center, clubhouse, and barbeque area. Post-renovated rent figures will remain well below newer built rent comps.
RM Communities will retain property manager Village Green, a nationally recognized property management company. Village Green's expertise and familiarity with the market provide higher assurance of projected performance.
Due to the favorable financing environment, the Property is projected to have solid cash flow out of the gate with a projected year one cash-on-cash of 5.7%. Year two cash-on-cash projection is 8.2% as the renovation program accelerates and the one vacant retail space is leased up.
The exit strategy is to sell the Property in five years at an anticipated blended cap rate of 5.10% (5.0% from the residential revenue and 6.5% from the retail revenue).
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Management
For more information, view the Sponsor's Investment Memorandum.
RM Communities

RM Communities is a sister-company to RealtyMogul, one of the leading online platforms for real estate investing. RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities has acquired over 2,300 multifamily units and $385 million(1) in real estate with a fully dedicated team of acquisitions, underwriting, and asset management professionals. 

Sponsor Track Record
Property Name Location Class No. of Units Year Built Purchase Price CapEx Budget Acquisition Status
Terrace Hill El Paso, TX B 310 1983 $18,700,000 $4,095,000 Sold
La Privada El Paso, TX B 240 1982 $11,700,000 $1,867,000 Closed
The Hamptons Virginia Beach, VA B 212 1973 $19,051,000 $3,792,000 Closed
Pohlig Box Factory & Superior Warehouse Richmond, VA A- 93 & Retail 2004 $15,900,000 $1,348,000 Closed
Lubbock Medical Office Building Lubbock, TX B 20,880 SF 1966 $8,350,000 NNN Closed
Turtle Creek Fenton, MO A- 128 2018 $24,875,000 $596,000 Closed
The Orion Orion Township, MI B+ 200 1995 $27,375,000 $2,308,000 Closed
Kings Landing Creve Coeur, MO A- 152 & 9,229 Retail SF 2005 $40,100,000 $3,885,850 Closed
Minnehaha Meadows Vancouver, WA A 49 2021 $16,450,000 $83,950 Closed
Roosevelt Commons Vancouver, WA A 36 2020 $12,550,000 $78,200 Closed
Bentley Apartments Grove City, OH A- 138 2020 $30,200,000 $650,000 Closed
Sherwood Oaks Riverview, FL B 199 1984 $35,000,000 $1,266,725 Closed
Haverford Place Georgetown, KY A- 160 2001 $31,050,000 $2,836,734 Closed
Edison Apartments Gresham, OR A 64 2020 $19,500,000 $203,390 Closed
Ridgeline View Townhomes Vancouver, WA A 50 2022 $18,100,000 $37,500 Closed
Brookside Apartments Raleigh, NC B 68 1986 $9,400,000 $1,402,680 Closed
Hunters Ridge Apartments East Lansing, MI B 170 2004 $34,650,000 $2,056,660 Closed
223 E. Town Apartments Columbus, OH A 84 2017 $19,600,000 $301,566 Closed
Rose Hill Townhomes & Villas Columbus, OH B 132 1992 $19,400,000 $2,853,705 Pending
Total     2,485   $411,951,000 $29,662,960  

References made to the RM Communities portfolio includes four properties that were acquired prior to the formation of RM Communities. Consequently, these assets are included as part of the RM Communities portfolio as a result of being acquired and managed by the same executive leadership and according to the same investment strategy employed by RM Communities. Totals include Terrace Hill (sold) and pending acquisitions.

Management Team
Management
Jilliene Helman
Chief Executive Officer

Jilliene Helman is Chief Executive Officer of RM Communities where she has been involved with every acquisition since inception.  She is also Chief Executive Officer and Founder of RealtyMogul where she is responsible for the company’s strategic direction and operations. In this capacity, she has been involved in investments with property values worth over $7 billion including 197 multifamily transactions encompassing 33,000 multifamily units. Ms. Helman is also Chief Executive Officer of Realty Mogul Commercial Capital, Chief Executive Officer of RM Securities, a FINRA registered broker-dealer (BrokerCheck) and Chief Executive Officer of RM Adviser, an SEC Registered Investment Adviser.  She also sits on the Board of Directors for RealtyMogul Apartment Growth REIT.  Ms. Helman holds a Bachelor’s degrees in International Business and Management Change from Georgetown University.

Management
Todd Hanson
Managing Director

Todd Hanson is the Managing Director for RM Communities across the US and has responsibility for planning and execution of overall strategy and directing the investment and financing activities of the company. He is actively involved in maintaining existing client relationships and developing new capital and partnership opportunities for the company.  Mr. Hanson was previously EVP and Head of Investments at The ConAm Group, a private equity multifamily investment firm.  

Management
Ian Rosa
Director of Investments

Ian Rosa is the Director of Investments for RM Communities and has the responsibility of being involved at all levels of RM Communities, including strategies related to the firm as well as individual deals. Mr. Rosa is actively involved in developing and maintaining relationships with investors and partners. Mr. Rosa previously worked at Highline Real Estate Capital and Rialto Capital Management. Mr. Rosa has an M.B.A. from the University of Miami, a J.D. from DePaul University College of Law and a Bachelor’s degree from Indiana University.

Management
Christian Popoff
VP of Asset Management

Christian Popoff is the Vice President of Asset Management for the RM Communities portfolio. His focus is centered on RMC’s growing collection of investments with an emphasis on maximizing performance, value creation, and acquisitions collaboration. With over 18 years of professional experience in commercial real estate investment management, he has a versatile background in all asset types through various roles as an advisor and owner/lender representative. He holds a B.S. in Finance from the University of Nevada, an MBA from National University, and completed the Light Construction & Development Management certification program at the University of California, Irvine.

Management
Yacov Ronen
Acquisitions Associate

Yacov Ronen is an Acquisitions Associate for RM Communities supporting the direct acquisitions of multifamily opportunities in the Mountain West region of the United States and Texas. Prior to joining RM Communities, Mr. Ronen worked as an Associate at RealtyMogul where he was directly involved in $400M in acquisitions across various asset classes. He holds B.A. in Economics from University of California, Santa Barbara.

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

Kings Landing is a one-of-a-kind multifamily mixed-use asset located in Creve Coeur, an affluent suburb of St. Louis, MO. Creve Coeur has one of the highest median area incomes in the MSA at $96K.

The Property features unique one, two, and three-bedroom floor plans. Kings Landing has four stories and an adjacent parking structure with 275 spaces. The Property offers amenities such as a 24-hour fitness center, courtyard, and veranda with a grilling station, community clubhouse, business center, and off-leash dog park. The Property is currently 98% occupied.

Unit Mix:

Units Type Unit SF Total SF In-Place Rent Stabilized Rent Rent /SF
4 1 Bed / 1 Bath (Small) 670 2,680 $1,079 $1,300 $1.94
27 1 Bed / 1 Bath (Medium) 814 21,978 $1,224 $1,450 $1.78
8 1 Bed / 1 Bath (Large) 965 7,720 $1,233 $1,550 $1.61
16 1 Bed / 2 Bath Loft 1,313 21,010 $1,479 $1,825 $1.39
1 1 Bed / 2 Bath Loft (Large) 1,490 1,490 $1,671 $2,000 $1.34
55 2 Bed / 2 Bath (Small) 1,113 61,215 $1,413 $1,860 $1.66
31 2 Bed / 2 Bath (Medium) 1,228 38,068 $1,456 $1,895 $1.54
2 2 Bed / 2 Bath (Large) 1,270 2,540 $1,522 $2,000 $1.57
8 3 Bed / 2 Bath 1,740 13,920 $2,076 $2,550 $1.47
152   1,121 170,621 $1,415 $1,799 $1.61
             
2 Additional Studios 500 1,000 $0 $1,200 $2.40

Retail Units and Rent Schedule:

Unit Tenant Unit SF Rent/SF NNN Annual Rent Lease Term / Expiration Lease Type
1 Walgreens Community 1,855 SF 30.0 $55,742 10.1 years – 4/30/2027 NNN
2 Poke Munch Restaurant 1,000 SF 30.3 $30,259 4.8 years – 10/31/2022 NNN
3 Mulqueeny Eye Center 3,098 SF 36.3 $112,406 10 Years – 7/31/2024 NNN
4 Vacant/Proposed 3,276 SF 26.0 $85,176 10 Years NNN
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

  Vanguard Heights The Vue at Creve Coeur The Alinea At Town Comp Averages Kings Landing (Subject)
Year Built 2016 2017 2016 2014 2005
$ (1x1) M $1,745 $1,564 $1,400 $1,570 $1,450
SF (1x1) M 805 843 754 801 814
$/SF (1x1) M $2.17 $1.86 $1.86 $1.96 $1.78
           
$ (2x2) S $2,391 $2,125 $2,355 $2,290 $1,860
SF (2x2) S 1,100 1,084 1,103 1,096 1,113
$/SF (2x2) S $2.17 $1.96 $2.14 $2.09 $1.67
           
$ (2x2) M $2,391 $2,295 $2,345 $2,344 $1,895
SF (2x2) M 1,100 1,257 1,103 1,153 1,228
$/SF (2x2) M $2.17 $1.83 $2.13 $2.03 $1.54
           
$ (3x2) $3,169   $2,655 $2,912 $2,550
SF (3x2) 1,509   1,365 1,437 1,740
$/SF (3x2) $2.10   $1.95 $2.03 $1.47

*Rents shown are post-renovation

Sales Comparables

Property Name Submarket Property Address City, State Sale Date Sale Price # of Units Building SQFT* Price Per Unit Price Per SQFT Year Built Building Class
Kings Landing (subject) Creve Coeur 618 N. New Ballas Rd Creve Coeur, MO 7/1/2021  $40,100,000 154 217,688 $263,816 $184 2005 A
Vanguard Heights North Outlying Mid 10362 Old Olive Street  Creve Coeur, MO 4/4/2017  $39,600,000 174 75,946 $227,586 $521 2016
Cortona at Forest Park Cheltenham 5800 Highlands Plz Saint Louis, MO 1/27/2021  $71,100,000 278 222,908 $255,755 $319 2014 A
Clayton on the Park Downtown Clayton 8025 Bonhomme Ave Clayton, MO 4/11/2019  $71,500,000 213 267,375 $335,681 $267 2000 B
Lofts at the Highlands Cheltenham 1031 Highlands Plaza Saint Louis, MO 3/28/2018  $44,400,000 200 343,656 $222,000 $129 2005 A
Alinea Town and Country North Outlying Mid 1283 Daylight Dr Des Peres, mo 9/19/2017  $58,400,000 254 310,000 $229,921 $188 2016 A

* Based on gross building area (GBA) per CoStar

Sale and lease comps were obtained from CoStar and Axiometrics.

Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds Amount $/Unit
Senior Loan $33,335,501 $219,313
Equity $12,323,031 $81,073
Total Sources of Funds $45,658,532 $300,385
Uses of Funds Amount $/Unit
Purchase Price $40,100,000 $263,816
Loan Fee $333,355 $2,174
Closing & Legal Costs $305,000 $2,007
CapEx Budget $3,708,980 $21,844
Acquisition Fee $802,000 $5,276
Taxes & Insurance Escrow $225,297 $1,813
Working Capital $130,000 $855
Total Uses of Funds $45,658,532 $300,385

The numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Loan Type: Bridge
  • Total Loan Amount: $33,335,501
  • Estimated Rate (Floating): LIBOR* + 3.15%
  • Amortization: 30 years
  • Term: 5 Years
  • Interest Only: 3 years
  • Initial Loan-to-Value: 73.9%
  • Loan-to-Cost: 75.0%
  • Extension Options: Two 12-Month Options

*LIBOR floor of 0.25% and rate cap of 2.00%

NOTE:  RM Communities is expecting to refinance with long-term agency debt at the end of year 3. The refinance is assumed to be a 7-year term at 70% LTV, 4.00%, and with 3 years of interest only.

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.

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 funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), thelender might foreclose, and the Company could lose its investment in its property.

Distributions

RM Communities will make distributions from Kings Landing Investors, LLC to investors as follows:

Operating Cash Flow

  1. 8% Preferred Return
  2. 70%/30% (70% to Members/30% to RM Communities) to a 15% IRR
  3. 50%/50% (50% to Members/50% to RM Communities) thereafter

Capital Event

  1. 8% Preferred Return
  2. Return of Capital
  3. 70%/30% (70% to Members/30% to RM Communities) to a 15% IRR
  4. 50%/50% (50% to Members/50% to RM Communities) thereafter

Note: 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). Distributions are expected to start in February 2022 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of RM Communities, 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    Reversion 
 Effective Gross Income (EGI)   $3,032,602 $3,489,486 $3,763,723 $3,986,986 $4,148,491 $4,299,365
 Expenses  $1,240,686 $1,281,655 $1,310,595 $1,386,491 $1,421,230 $1,456,013
 Net Operating Income (NOI)  $1,791,917 $2,207,831 $2,453,128 $2,600,495 $2,727,261 $2,843,352
 Total Property Cash Flow  $699,046 $1,015,894 $3,128,795* $1,107,967 $19,779,473  

*Proceeds include refinance in year 3

Projected Investor Cash Flows

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Earnings to Investor
- Hypothetical $50,000 Investment
($50,000) $2,818 $4,104 $12,677 $4,101 $68,376

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid(1):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 2.0% of Purchase Price RM Communities Capitalized Equity Contribution
Construction Management Fee 5.0% of Capital Improvement Budget Village Green, Third Party Property Manager Capitalized Equity Contribution
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.5% of Effective Gross Income RM Communities Distributable Cash
Property Management Fee 3.0% of Effective Gross Income and
Incentive Fee if NOI Exceeds Budget
Village Green, Third Party Property Manager Distributable Cash

The above table is a summary and there may be additional fees and expenses associated with this offering. Please refer to the Private Placement Memorandum for further details.

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

Sources & Uses

Total Capitalization

Sources of Funds Amount $/Unit
Senior Loan $33,335,501 $219,313
Equity $12,323,031 $81,073
Total Sources of Funds $45,658,532 $300,385
Uses of Funds Amount $/Unit
Purchase Price $40,100,000 $263,816
Loan Fee $333,355 $2,174
Closing & Legal Costs $305,000 $2,007
CapEx Budget $3,708,980 $21,844
Acquisition Fee $802,000 $5,276
Taxes & Insurance Escrow $225,297 $1,813
Working Capital $130,000 $855
Total Uses of Funds $45,658,532 $300,385

The numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Loan Type: Bridge
  • Total Loan Amount: $33,335,501
  • Estimated Rate (Floating): LIBOR* + 3.15%
  • Amortization: 30 years
  • Term: 5 Years
  • Interest Only: 3 years
  • Initial Loan-to-Value: 73.9%
  • Loan-to-Cost: 75.0%
  • Extension Options: Two 12-Month Options

*LIBOR floor of 0.25% and rate cap of 2.00%

NOTE:  RM Communities is expecting to refinance with long-term agency debt at the end of year 3. The refinance is assumed to be a 7-year term at 70% LTV, 4.00%, and with 3 years of interest only.

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.

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 funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), thelender might foreclose, and the Company could lose its investment in its property.

Distributions

RM Communities will make distributions from Kings Landing Investors, LLC to investors as follows:

Operating Cash Flow

  1. 8% Preferred Return
  2. 70%/30% (70% to Members/30% to RM Communities) to a 15% IRR
  3. 50%/50% (50% to Members/50% to RM Communities) thereafter

Capital Event

  1. 8% Preferred Return
  2. Return of Capital
  3. 70%/30% (70% to Members/30% to RM Communities) to a 15% IRR
  4. 50%/50% (50% to Members/50% to RM Communities) thereafter

Note: 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). Distributions are expected to start in February 2022 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of RM Communities, 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    Reversion 
 Effective Gross Income (EGI)   $3,032,602 $3,489,486 $3,763,723 $3,986,986 $4,148,491 $4,299,365
 Expenses  $1,240,686 $1,281,655 $1,310,595 $1,386,491 $1,421,230 $1,456,013
 Net Operating Income (NOI)  $1,791,917 $2,207,831 $2,453,128 $2,600,495 $2,727,261 $2,843,352
 Total Property Cash Flow  $699,046 $1,015,894 $3,128,795* $1,107,967 $19,779,473  

*Proceeds include refinance in year 3

Projected Investor Cash Flows

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Earnings to Investor
- Hypothetical $50,000 Investment
($50,000) $2,818 $4,104 $12,677 $4,101 $68,376

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid(1):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 2.0% of Purchase Price RM Communities Capitalized Equity Contribution
Construction Management Fee 5.0% of Capital Improvement Budget Village Green, Third Party Property Manager Capitalized Equity Contribution
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.5% of Effective Gross Income RM Communities Distributable Cash
Property Management Fee 3.0% of Effective Gross Income and
Incentive Fee if NOI Exceeds Budget
Village Green, Third Party Property Manager Distributable Cash

The above table is a summary and there may be additional fees and expenses associated with this offering. Please refer to the Private Placement Memorandum for further details.

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

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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