The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
Arenda Capital Management
Arenda Capital Management, LLC (“Arenda”) is a private investment firm based in Los Angeles, CA that invests in real estate and real estate related opportunities across the United States, including both debt and equity investments, on behalf of select institutional and private investors. The firm takes an absolute return approach to its investment activities, with an emphasis on opportunities that offer superior risk-adjusted returns. Arenda’s principals have been involved in the acquisition of over 12,000 multifamily units and 580,000 square feet of retail, office and mixed-use properties in the past 12+ years. The principals of Arenda have acquired significant multifamily real estate throughout the southeast, including suburban garden style, urban apartments, and urban mid-rise apartment projects. Since 2011, Arenda Capital Management has acquired approximately $500 million of commercial real estate, while placing over $160 million of equity.
Sample Multifamily Holdings (Arenda Capital Partners II & III)
Property | Location | Units | Total Capitalization | Status |
---|---|---|---|---|
Aventine at Lindbergh | Buckhead,GA | 296 | $44,720,000 | Active |
Spinnaker Cove | Nashville, TN | 278 | $27,845,732 | Active |
93 East | Atlanta, GA | 192 | $12,000,000 | Active |
Mountain Park Estates | Kennesaw, GA | 450 | $51,041,000 | Active |
Lakeside Villages | Atlanta, GA | 310 | $22,336,000 | Active |
Bellevue West | Nashville, TN | 560 | $56,100,000 | Active |
Autumn Brook | Chattanooga, TN | 156 | $11,837,000 | Active |
10 Perimeter Park | Atlanta, GA | 230 | $27,484,000 | Active |
Grove at Trinity Pointe | Cordova, TN | 464 | $27,025,000 | Active |
Avondale Station | Decatur, GA | 212 | $12,291,000 | Active |
Hawthorne Gates | Dunwoody, GA | 164 | $20,654,000 | Active |
Courtney Station | Savannah, GA | 300 | $36,550,000 | Active |
Madison at Schilling Farms | Collierville, TN | 324 | $33,455,000 | Active |
Total | 3,936 | $383,338,732 |
At A Glance
Investment Strategy: | Buy and Hold |
Hold Period: | 7-10 years |
Total Project Budget: | $39,505,000 |
Property Type: | Multifamily |
Number of Units: | 358 units |
Net Rentable Area: | 390,594 square feet |
Distributions to Realty Mogul 23, LLC: | 8% preferred return 80/20 split to a 15% IRR 70/30 split thereafter |
Going-In Cap Rate: | 6.1% (based on Year 1 NOI) |
Transaction Closing Date: | 10/31/2014 |
Projected Distributions: | Quarterly |
Investment Details
Arenda Capital Management (the "Sponsor") acquired Lakeside at Town Center Apartments, a 358 unit Class A multifamily property (the "Property") located in Marietta, GA in March 2014. Realty Mogul investors are being provided the opportunity to invest in Realty Mogul 23, LLC. Realty Mogul 23, LLC will be making an investment in Lakeside Town Center Partners, LLC, which holds 50% of the ownership interest in Lakeside 358, LLC, the entity that holds title to the property. The other 50% interest in Lakeside 358, LLC is held by an entity wholly owned by Loma Linda University. The Sponsor is the manager of each of these entities.
The Sponsor has and will handle all aspects of the investment including purchasing the Property, completing a minor renovation program, re-positioning the asset, and ultimately selling the property. The Sponsor has budgeted $300,000 for minor cosmetic upgrades to the Property including repainting, refreshing the clubhouse/leasing office, landscaping/lighting upgrades, parking lot repairs, new fitness equipment, new pool furniture and some mechanical upgrades. This capital improvement plan, along with the $272,000 in capital improvements invested in the Property from 2012-2013, should enhance the Property’s overall appearance and curb appeal.
In addition to the benefits generated by capital improvements, the Sponsor plans to reduce expenses at the Property through several avenues:
- Administrative Expenses: Prior ownership charged various administrative expenses to the Property using an allocation based on the total portfolio expense. This will no longer be in place under new ownership.
- Software: Prior ownership used software with an annual expense of $14,262. The Sponsor will not be using this software and will therefore be eliminating this expense.
- Insurance: Prior ownership’s insurance was priced on a portfolio basis, and the pricing was above what the Sponsor was able to procure a policy for.
- Management Efficiencies: The Sponsor owns a similar size and vintage property in the submarket and expects to be able to implement management efficiencies across the two properties.
- New Service Contracts: All service contracts have been rebid, and budgets will be revamped going forward.
The Sponsor intends to hold the property for 7-10 years before exiting the investment, though the hold period could be longer or shorter. Realty Mogul investors have the opportunity to participate as equity stakeholders and earn a share of the cash-flow and appreciation. Investors can expect to receive quarterly updates and distributions starting February 2015.
This Property represents a unique opportunity to invest in a well occupied, cash flowing multifamily property alongside a major institution. The Property has existing in-place cash flow while also offering investors value-add potential through a minor renovation and implementation of an aggressive leasing and management strategy by an experienced multifamily owner and operator.
Investment Highlights
- Experienced Sponsorship: The principals of Arenda have been involved in the acquisition of over 12,000 multifamily units in the past 12+ years, focused mainly on properties throughout the southeast. Since 2011, Arenda Capital Management has acquired approximately $500 million of commercial real estate, while placing over $160 million of equity. The Sponsor also owns a similar vintage property in the same submarket, which should allow for the sharing of market knowledge, as well as provide the opportunity to implement operational efficiencies across the two properties.
- Opportunity to Invest Alongside a Major Institution: Loma Linda University is a 50% equity partner in the transaction, indicative of the institutional nature of the deal, the quality of the real estate and the experience of the Sponsor.
- Class A Features and Construction: Lakeside at Town Center includes high quality features and construction. Exteriors consist of primarily HardiePlank (lap siding) and brick with low maintenance PVC railings and stone retaining walls throughout. The grounds are well kept and manicured and the porte-cochere with brick pavers at the front of the leasing office helps to make an inviting first impression. The leasing office overlooks a resort-style pool below, which leads to a large stocked lake with fountain and lighted boardwalk. A full array of common amenities also includes a cyber café, updated fitness room, lighted tennis court, playground, business center, movie library, laundry facility, car care facility and controlled access gates. Large floor plans average 1,091 square feet and feature nine foot ceilings, double crown moulding, open kitchens with gourmet islands, ceramic tile backsplash, wine racks, computer nooks and more.
- Favorable Basis Compared to Recent Trades: The Sponsor purchased the asset for $38.2 million ($107k/unit) at a 6.1% cap rate (based on Year 1 NOI), which compares favorably with other trades in the market. Parkside at Town Center, a similar vintage product located near the Property, sold for $116k/unit at a 5.32% cap rate in March 2014, the same month that the Sponsor purchased the Subject. In addition, the recently completed appraisal estimated an as-is value of $39.0 million, which is $800,000 or 2% above the purchase price of $38.2 million.
- Dynamic Town Center Location: Lakeside at Town Center offers its residents convenience and accessibility to major demand generators. Location attributes include:
- Town Center Mall: A 1.3 million square foot mall anchored by Macy’s, Sears, JC Penny and a wide variety of specialty stores. The surrounding area consists of more than 6.4 million square feet of retail. Town Center has experienced several retail expansions/additions since 2012 (see Location Section for details) reflecting a healthy submarket.
- Kennesaw State University (KSU): With 24,600 students and 3,000 employees, KSU’s ever-expanding student population and facilities provide an economic impact of $926 million to metro Atlanta. A new football program (and stadium expansion) was recently announced and will kick-off for the 2015 season which should provide a dramatic boost to local businesses.
- 6.6 Million Square Feet of Office Space: Significant office parks include Barrett Lakes Center, Barrett Business Center, Barrett Summit, Town Park and Chastain Meadows Business Park. WellStar Kennestone Hospital with 633 beds is also nearby.
- Continuous infrastructure improvements and local investment make the area attractive to residents and business alike. Current projects include Noonday Park Trail, Skip Spann Connector (over I-75), KSU facilities, and the just-approved Northwest Corridor Project (I-75/I-575 toll lanes).
Risks and Risk Mitigation*
- Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected”, “forecasted”, “estimated”, “prospective”, “believes,” “expects,” ”plans” “future” “intends,”, “should,” “can”, “could”, “might”, “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements.
- Illiquid Investment - Transfer Restrictions & No Public Market: The transferability of membership interests in Realty Mogul 23, LLC are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.
- Lakeside Town Center Partners, LLC Will Not Hold the Property Directly: Lakeside Town Center Partners, LLC holds a 50% interest in Lakeside 358, LLC, a Delaware limited liability company that is the actual title-holding entity for the Lakeside at Town Center apartment complex. The other 50% interest in that entity is held by LLU Lakeside, LLC, a Georgia limited liability company whose sole member is Loma Linda University, a California nonprofit religious corporation. Although the manager of Lakeside Town Center also serves as the manager of Lakeside 358, LLC, that entity has its own buy/sell procedures for resolving any decision deadlocks and is otherwise a separate legal entity with its own operating agreement. Despite the multiple entity structure and its potential to limit the liability of investing entities, it remains possible that multiple claims may still be filed against the various legal entities if such claims relate to the underlying investment.
- Decrease in Rents or Occupancy: One of the risks associated with this transaction is the possibility of a significant decline in rents or occupancy. This risk is mitigated by three (3) things: 1) historical occupancy at the Property has averaged over 95% and the Property is currently 95% occupied, 2) once completed, the renovation should increase the attractiveness of the Property to potential renters which should allow the Sponsor to push rents further, and 3) the Sponsor is an experienced group that currently owns another property in the submarket which is currently 94% occupied.
- Loan Is Interest Only for 10 Years: The loan is interest only for a period of 10 years and therefore the principal balance will not be amortized during this time. This risk is partially offset by the increase in estimated returns to investors during the life of the deal due to the lower debt service. Additionally, despite the absence of principal loan balance reduction, it is estimated that the loan will be 52% loan-to-value in year 10 given the projected financial assumptions.
- Prepayment Penalty Risk: Subject to the terms of the loan agreement, if the loan is prepaid prior to 90 days before maturity, the loan is subject to a prepayment fee in the amount of the greater of 1) a 1% prepayment fee, or 2) yield maintenance through maturity. This risk is partially mitigated by the assumption that in a rising interest rate environment, a loan with a fixed rate of 4.9% would be attractive for a buyer to assume, with the option to place additional supplemental financing behind the first mortgage. Additionally, assuming a hold period of 7-10 years, a buyer would be likely interested in assuming a loan with up to three years of interest-only payments.
- Management Risk: Investors will be relying solely on the manager of Lakeside Town Center Partners (which manager is also the manager of Lakeside 358, LLC, the title-holding entity) for the execution of its business plan. That manager in turn may rely on other key personnel with relevant experience and knowledge, including contractors and consultants. Members of Lakeside Town Center Partners, LLC (including Realty Mogul 23, LLC) will agree to indemnify the manager in certain circumstances, which may result in a financial burden if any litigation results from the execution of the business plan. While the manager of Lakeside Town Center Partners, LLC has significant operating experience, Lakeside Town Center Partners, LLC was formed only six months ago and has no significant operating history or record of performance.
- Manager of Realty Mogul 23, LLC Will Participate in Sponsor's Promote Interest: The manager of Realty Mogul 23, LLC will have a consent right regarding certain major decisions for Lakeside Town Center Partners, LLC and will have a vote on major decisions involving Lakeside Town Center Partners, LLC. The manager (or one of its affiliates) will also be entitled to a participation in the value of any excess distributable cash flow and any appreciation of the Property realized upon its sale. This could lead to a potential conflict of interest between the manager and Realty Mogul 23, LLC. Investors must recognize and agree to waive and bear the risk of this conflict of interest.
- Uncertain Distributions: The manager of Lakeside Town Center Partners, LLC cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including Realty Mogul 23, LLC) from either net cash from operations or proceeds from the sale of the asset. That manager, in its discretion, may retain any portion of such funds for property operations or capital improvements.
- General Economic and Market Risks: While the Sponsor has conducted significant research to justify the intended rental rates and sales price relative to comparable properties in the market, its best efforts to forecast economic conditions cannot state for certain whether or not investor sentiment and the capital markets will be favorable to the property at the intended disposition date. The real estate market is affected by many factors, such as general economic conditions, the availability of financing, interest rates and other factors, including supply and demand for real estate investments, all of which are beyond the control of the manager of Lakeside Town Center Partners, LLC.
*The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Investor Document Package for a discussion of additional risks.
Address: | 425 Williams Drive Marietta, GA 30066 |
Submarket: | Cobb/Douglas |
Year Built: | 2001 |
Current Occupancy: | 95% |
Number of Units: | 358 units |
Net Rentable Area: | 390,594 square feet |
Buildings: | 21 total buildings 14 three and four-story garden apartment buildings 6 one-story garage/storage buildings 1 two-story clubhouse/leasing center |
Parking: | 704 total spaces |
Effective Rent Per Unit: | $1,027 |
Effective Rent Per Square Foot: | $0.94 |
UNIT TYPE | TOTAL UNITS |
AVG UNIT SF |
TOTAL SF | IN PLACE RENTS |
PSF |
---|---|---|---|---|---|
1 BR X 1 BA | 126 | 771 | 97,146 | $839 | $1.09 |
2 BR X 2 BA | 176 | 1,219 | 214,544 | $1,074 | $0.88 |
3 BR X 2 BA | 56 | 1,409 | 78,904 | $1,300 | $0.92 |
TOTAL/AVG | 358 | 1,091 | 390,594 | $1,027 | $0.94 |
Property Highlights
- The Property is located adjacent to I-75, a major north/south highway which provides ease of access to downtown Atlanta 20 miles to the south, as well as Kennesaw to the north.
- The Property is located near numerous demand drivers such as the 1.3 million square foot Town Center Mall (3.4 miles away), Kennesaw University (6.5 miles away), the fastest growing university in the University System of Georgia with a student body of approximately 25,000, as well as other employment and retail centers.
- The Property has significant frontage and signage along Williams Drive, and is situated 200 yards from Bells Ferry Road, which has a daily traffic count of 11,660 cars per day, and is approximately one mile west of the Canton Road Connector, which has a daily traffic count of 20,660 cars per day. Bells Ferry Road and Canton Road Connector are major local arteries that provide access to the nearby employment and retail centers.
- Amenities consist of a business center, cyber café, fitness center, swimming pool, tennis court, playground, car wash facility and a large stocked lake featuring a fountain and boardwalk.
- The Property is nicely landscaped and has been well maintained, with approximately $275,000 in capital improvements having been spent at the Property since 2012. These improvements include, but were not limited to, painting, clubhouse refurbishment, pool and deck repairs and landscaping.
Lakeside at Town Center is located near Kennesaw, a northwest Atlanta suburb, close to the I-75/Barrett Parkway exit. Kennesaw is one of the fastest growing municipalities in Cobb County, marking a 63% growth rate since 2000. Situated amid a thriving retail hub anchored by Town Center Mall, Lakeside at Town Center offers convenient access to Kennesaw State University, whose 384-acre campus is located one exit north on I-75. Several Class A office and industrial developments are also located nearby, including Barrett Business Center, Town Park and Chastain Meadows Industrial Park. To the south, I-75 provides relatively easy access to several key Atlanta business and employment centers including Cobb/Galleria, Midtown and Downtown. Finally, Georgia’s third busiest airport, Cobb County Airport-McCollum Field, is only minutes away and caters to business travelers using personal or corporate aircraft.
Town Center Mall and Surrounding Retail District
Built in 1986, expanded in 1998 and renovated in 2009, Town Center Mall is one of the largest malls in the Atlanta area and propelled much of the Northwest Cobb County development boom. At 1.3 million square feet, the mall anchors the major retail hub in northern Cobb County along Barrett Parkway between I-75 and I-575, just north of where the interstates meet and split from each other. Anchor retailers include Belk, JC Penney, Macy’s and Sears. Other notable area stores include the AMC Theatres, Dick’s Sporting Goods, Office Depot, Best Buy and PetSmart.
Stimulated by retail construction and establishment, the Town Center area continues to experience considerable growth and has become increasingly popular for investment since the area initially grew. With 6.6 million square feet of office space, Town Center has been a stable niche area with several factors contributing to this market’s continued success, most notably the easy accessibility commuters enjoy to quality space without the traffic woes often experienced closer to the city center. Transportation infrastructure remains a key attribute of this market, with I-75 and I-575 providing quick access to residential areas throughout the metro area and to national markets to the north. Meanwhile, the West Cobb Loop provides a direct route between Town Center and growing southwestern Cobb County.
Atlanta Market Overview
According to the US Census, the Atlanta metropolitan area ranked as the nation’s ninth largest with a 2013 population of 5.5 million. Atlanta is one of ten U.S. cities classified as an "alpha-world city", and ranks fourth in the number of Fortune 500 companies headquartered within city boundaries, behind New York City, Houston, and Dallas. Atlanta's economy is primarily driven by the financial, healthcare, manufacturing, media and film/television sectors.
Atlanta Multifamily Overview
The market information below is provided by the Colliers International Mid-Year 2014 Atlanta Multifamily Report:
Looking at the multi-family market, Atlanta’s occupancy increased 150 basis points from the end of 2013 to finish off mid-year 2014 at 93.5%, despite the seasonal occupancy weakness generally seen during the winter months. The metro area’s occupancy increased 1.3% (year over year mid-year 2014) after a slight dip earlier in 2013. As occupancy in Atlanta has continued to increase in recent quarters, apartment owners have begun to push rents. Effective rents increased by 0.28% during the second quarter of the year, and on an annual basis the metro’s effective rents are up 5.5%, ahead of the US (3.5%) and Southeast regional (3.0%) averages. This marks the 15th consecutive quarter of annual rent growth for the Atlanta MSA. Apartment owners in the northern suburbs are expected to continue aggressively pushing rents while assets located in more established areas will experience much more modest rent growth due to the influx of new product during the next 12 months.
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, LLCSponsor 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 DocumentsThe 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 InvestmentThis 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 AssumptionsSponsor 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 PerformanceAny 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 DebtA 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 RegisteredSponsor’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 AdviceNothing 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 RiskInternal 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.