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Diversified
Government Lease Holdings 2 DST
Geographically Diversified
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Government Lease Holdings 2 DST
Geographically Diversified
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Overview
Government Lease Holdings 2 DST
Government Lease Holdings 2, DST (“GLH 2”) is a two-property portfolio consisting of mission-critical facilities encumbered by long-term leases to government agencies. Located in the Winston-Salem MSA, the first asset is a 353,238 SF build-to-suit outpatient care facility occupied by the United States Department of Veteran Affairs (“VA”). Located in the Washington D.C. MSA, the second asset is a 574,767 SF build-to-suit office building occupied by the U.S. Citizenship and Immigration Services (“USCIS”).
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Details
For more information, view the Sponsor's Investment Memorandum.
Eligibility 1031 Exchange Only
Minimum Investment 100000
Estimated Hold Period 10 Years
Investment Strategy Diversified Fund
Investment Type Equity
Offering Loan-to-Value 56.6%
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
Experienced Sponsor: Net Lease Capital Advisors is a real estate investment firm that specializes in net lease and U.S. Government-occupied properties, transacting on more than $14 billion in real estate.
Long Term Leases: Each tenant has 10+ years remaining on their lease term.
Leases Backed by Government Credit: The properties are leased to the General Services Administration (“GSA”), a government entity that leases space and then subleases that space to other government entities/agencies. The GSA is considered the nation’s largest public real estate organization with a 350+ million SF portfolio utilized by over one million federal employees. (GSA.gov)
Diversified Portfolio: The portfolio is diversified across two different property types occupied by two different tenants in two locations.
Built-to-Suit Assets: The VA and USCIS properties were build-to-suit assets, constructed specifically for their respective tenants’ needs. Developed in 2015 and 2020, respectively, both properties remain in good condition with minimal immediate or short-term repair needs, according to the physical condition reports. The USCIS property is a Level IV secured building, adding additional value to the property. (GSA.gov)
Growing Veteran Population: Per the VA, the veteran population continues to grow in the Piedmont Triad region, increasing demand for ambulatory/outpatient care. The facility’s Urgent Care Clinic plans to serve 10,000 local veterans each year. (VA.gov)
Consolidated Operations to Camp Springs Property: USCIS consolidated its headquarters from five leased locations and one federal asset to this one facility, centralizing their operations and reducing their footprint. (USCIS.gov)
Experienced Sponsor: Net Lease Capital Advisors is a real estate investment firm that specializes in net lease and U.S. Government-occupied properties, transacting on more than $14 billion in real estate.
Long Term Leases: Each tenant has 10+ years remaining on their lease term.
Leases Backed by Government Credit: The properties are leased to the General Services Administration (“GSA”), a government entity that leases space and then subleases that space to other government entities/agencies. The GSA is considered the nation’s largest public real estate organization with a 350+ million SF portfolio utilized by over one million federal employees. (GSA.gov)
Diversified Portfolio: The portfolio is diversified across two different property types occupied by two different tenants in two locations.
Built-to-Suit Assets: The VA and USCIS properties were build-to-suit assets, constructed specifically for their respective tenants’ needs. Developed in 2015 and 2020, respectively, both properties remain in good condition with minimal immediate or short-term repair needs, according to the physical condition reports. The USCIS property is a Level IV secured building, adding additional value to the property. (GSA.gov)
Growing Veteran Population: Per the VA, the veteran population continues to grow in the Piedmont Triad region, increasing demand for ambulatory/outpatient care. The facility’s Urgent Care Clinic plans to serve 10,000 local veterans each year. (VA.gov)
Consolidated Operations to Camp Springs Property: USCIS consolidated its headquarters from five leased locations and one federal asset to this one facility, centralizing their operations and reducing their footprint. (USCIS.gov)
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Management
For more information, view the Sponsor's Investment Memorandum.
Net Lease Capital

Net Lease Capital Advisors LLC (“NLCA”) is a real estate investment and advisory firm specializing in triple net lease and U.S. Government-occupied properties. The Sponsor was formed in 2005 as the operational successor to Net Lease Capital Advisors, Inc., through which the same leadership team has worked since 1996. Over those 25 years since inception, NLCA has closed more than $16 billion in transactions and has been involved in 34 DST real estate programs, which to date have raised approximately $1.0+ billion of equity.

Management Team
Management
Douglas F. Blough
Co-Founder & Chief Financial Officer

In 1996, Mr. Blough co-founded NLCA, developing tax-strategic applications for net-leased properties. In his current role, he is responsible for structuring the firm's acquisitions, financings, and sales, while also overseeing its new strategic initiatives.

Following college, he focused on the acquisition and financing of apartment complexes in the Northeast. In 1994, he joined NAI James E. Hanson, Inc., a New York area real estate development firm, where he acquired sale-leaseback portfolios using innovative financing based on the tenants’ credit, in addition to traditional real estate financing.

Mr. Blough attended Purdue University and graduated summa cum laude in Engineering in only three years.

Management
Bruce MacDonald
Co-Founder & President

In 1996, Mr. MacDonald co-founded NLCA and oversees the various business units of the firm. Under his leadership, Net Lease Capital has closed over $14 billion in transactions. Mr. MacDonald has been named Honorary Net Lease Executive of the Year four times by Commercial Investment Real Estate Magazine and has spoken frequently about the net lease industry to professional audiences.

Along with Mr. Blough, he worked previously for New Jersey real estate firm, NAI James E. Hanson, Inc., with a focus on the acquisition and financing of credit tenant properties. Applying the expertise they had developed investing in this arena to the tax-driven exchange market, Mr. MacDonald and Mr. Blough came to specialize in tax-advantaged transactions for property owners and sellers.

Management
Jay Hooper
Director of Acquisitions

Mr. Hooper joined Net Lease Capital in 2020, leading the origination and acquisition of government-leased cash flow investments as well as joint venture opportunities. He brings over 35 years of experience in real estate investment, investment banking, brokerage, appraisal, and consulting, and over 20 years in net lease and sale-leaseback investments.

Before Net Lease Capital, Mr. Hooper was Managing Partner at Taurus Corporate Properties, a global real estate private equity firm with approximately $3 billion AUM. Previously, Mr. Hooper worked as Managing Director of Equity at CRIC Capital, a joint venture with Prudential Real Estate Investors, and as Acquisitions Manager of multifamily properties at Corcoran Jennison.

Mr. Hooper received an AB, Economics from Harvard College and an MS, Real Estate Development from MIT. He is a member of the National Federal Development Association and also a member of the Real Estate Finance Association.

Property
For more information, view the Sponsor's Investment Memorandum.
Tenant City, State Year Built Size (SF) Lease Expiration Date
U.S. Department of Veterans Affairs (VA) Kernersville, NC 2015 353,238 12/10/2035
U.S. Citizenship & Immigration Services (USCIS) Camp Springs, MD 2020 574,767 1/16/2035
Financials
For more information, view the Sponsor's Investment Memorandum.
Distributions

Please refer to the Government Lease Holdings 2 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.

Distributions

Please refer to the Government Lease Holdings 2 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.

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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