The Wideman Company is an affiliate of Susquehanna Holdings Ltd. (legacy investment manager). The Wideman Company is a cash flow driven, high-touch real estate investment company that identifies opportunities through tenant relationship building, strategic market selection, and operational precision to deliver exceptional returns for its investors. The Wideman Company employs a unique set of skills to work through complex or distressed situations to align financial, operational, and physical components of assets to generate outsized returns.
For over 50 years, The Wideman Company has carefully refined its relationships and asset management infrastructure. The Wideman Company has a storied track record of maximizing financial freedom for investors. With extensive experience pursuing office and industrial assets in fundamentally sound, burgeoning markets, The Wideman Company has built a portfolio spanning 7 MSF of interior space. Based in Orlando, Florida, The Wideman Company efficiently manages approximately $1.2 billion of commercial real estate throughout the Southeast and Sunbelt states.
Tenant Overview
Truist:
Truist (NYSE: TFC, S&P: A-) was formed in December 2019 following the merger of SunTrust and BB&T. Truist Financial Corporation provides a broad array of financial services and is the 4th largest deposit base in the nation. The Company offers a wide range of services, including retail, small business and commercial banking, asset management, capital markets, commercial real estate, corporate and institutional banking, insurance, mortgage, payments, and specialized lending and wealth management solutions.
E|SPACES:
E|SPACES combines the functionality of executive suites, coworking spaces, and shared offices to create a professional environment for entrepreneurs, small businesses, and corporate teams. The firm has 10 locations that they occupy or are committed to in Florida, Tennessee, and Texas. E|SPACES offers meeting, office, and coworking space, along with amenities such as 24/7 access, location manager assistance, free parking, coffee and snacks, WiFi and IT support. They provide an ideal workspace for a corporate team to focus and complete a project off-site or a business that's expanding and needs space in transition. For mobile professionals, they provide a hub for when collaborative space or meeting rooms are needed.
RSM:
RSM US LLP is an audit, tax, and consulting firm, focused on the middle market in the United States and a member of the global accounting network RSM International. It is the fifth largest accounting firm in the United States. The firm has over 16,000 employees across 79 cities nationwide, providing audit, tax, and consulting services.
HuntonBrady Architects:
HuntonBrady is a modern architecture and interior design firm based in Orlando, Florida. It was founded by Robert B. Murphy in 1947 and has received more than 50 American Institute of Design Awards. The practice's specialties include healthcare, education, and commercial office design. HuntonBrady was the lead architect for Truist Plaza.
Insight Global:
Insight Global is a staffing and services company that specializes in providing workforce solutions to businesses across various industries. Founded in 2001, the company is headquartered in Atlanta, Georgia, and has grown to become one of the largest staffing firms in the United States. Insight Global offers services such as temporary staffing, permanent placement, and managed services, focusing on sectors like IT, finance, engineering, and healthcare.
| Sources of Funds | Amount |
|---|---|
| Debt | $65,000,000 |
| LP Equity | $26,600,000 |
| GP Equity(1) | $4,400,000 |
| Preferred Equity(2) | $13,000,000 |
| Total Sources of Funds | $109,000,000 |
| Uses of Funds | Amount |
|---|---|
| Purchase Price | $101,250,000 |
| Acquisition Fee | $2,000,000 |
| 3rd Parties, Legal | $350,000 |
| Closing Costs | $650,000 |
| Working Capital/Reserves | $4,750,000 |
| Total Uses of Funds | $109,000,000 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) Preferred equity is structured as soft pref, with distributions due only if there is available cash flow from the property. Any distributions to the Preferred Equity Member from operating cash flow are paid pari-passu with the common equity members based on ownership percentage. Upon a capital event, the Preferred Equity Member receives a priority return of capital before any other member. Preferred equity accrues at an 8% annual non-compounded preferred return for Yrs 1-6 and 20% thereafter.
The expected terms of the debt financing are as follows:
Senior Loan
- Lender: IBC Bank
- Loan Type: Permanent Loan
- Term: 48 Months + one 24-Month Extension Option
- Loan-to-Value (based on Purchase Price)(1): 63.7%
- Loan-to-Cost (LTC): 59.6%
- Estimated Proceeds: $65,000,000
- Interest Type(2): Floating
- Annual Interest Rate: SOFR + 315 bps (6.00% floor)
- Interest-Only Period: 24 Months
- Amortization: 25 Years
- Prepayment Terms: None
- Recourse Description: 25% Recourse
(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclosures section below for additional information concerning the Sponsor's use of debt.
(2) The limited liability company may execute a rate swap during the hold period.
The Wideman Company intends to make distributions of Net Cash Flow from the limited liability company as follows(1):
- Pari-passu all cash flow available for distribution to the Equity Investors and Preferred Equity Investors until the Preferred Equity Investors receive a return of capital and all unpaid accrued interest(2)(3); and
- Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors receive a return of capital(2); and
- 80% / 20% (80% to Equity Investors / 20% to GP Equity Investors) of all cash flow available for distribution(2)(4).
The Wideman Company intends to make distributions of Net Proceeds of Capital Transactions from the limited liability company as follows(1):
- Pari-passu all cash flow available for distribution to the Preferred Equity Investors until the Preferred Equity Investors receive a return of capital and all unpaid accrued interest(3); and
- Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors receive a return of capital(2); and
- 80% / 20% (80% to Equity Investors / 20% to GP Equity Investors) of all cash flow available for distribution(2)(4).
The Wideman Company 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 April 2026 and are projected to continue on a monthly basis thereafter. Distributions are at the discretion of The Wideman Company, who may decide to delay distributions for any reason, including maintenance or capital reserves.
(1) The limited liability company will invest in the property owner alongside other investment entities and receive pro rata distributions.
(2) Equity Investors include all members who invested capital in the limited liability company, including the Sponsor and Sponsor-related entities.
(3) Preferred Equity Investors include all members who invested preferred equity in the limited liability company.
(4) GP Equity Investors include all members in the Sponsor-affiliated promote entity.
| Cash Flow Summary(1)(2) | ||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
| Effective Gross Revenue | $10,281,437 | $11,038,683 | $12,178,841 | $11,922,031 | $12,429,659 | $11,559,073 | $14,513,118 | |
| Total Operating Expenses | $3,272,903 | $3,384,554 | $3,510,361 | $3,597,006 | $3,709,416 | $3,783,394 | $3,975,114 | |
| Net Operating Income | $7,008,534 | $7,654,129 | $8,668,480 | $8,325,024 | $8,720,244 | $7,775,679 | $10,538,004 | |
| Project-Level Cash Flows | ||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
| Net Cash Flow | ($44,000,000) | $2,355,720 | $2,993,742 | $2,720,266 | $2,379,378 | $2,769,521 | $39,116,535 | $74,432,895 |
| Investor-Level Cash Flows | ||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
| Net Cash Flow(3) | ($3,487,000) | $153,033 | $202,335 | $181,202 | $154,861 | $185,008 | $2,922,084 | $5,083,626 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment | ||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
| Net Cash Flow | ($50,000) | $2,194 | $2,901 | $2,598 | $2,221 | $2,653 | $41,900 | $72,894 |
(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclosures sections below for additional information concerning Sponsor’s use of projected returns and fees paid to Sponsor and RM Technologies, LLC.
(2) The business plan assumes a Year 6 loan refinance, anticipated to return 89% of total LP capital.
(3) Investors from the RM Technology Platform will have an 8.6% pro-rata share of the LP Equity Cash Flows, assuming a target raise of $3,400,000 using the RM Technology Platform is met. The Sponsor is over-raising to $3,487,000 to cover expenses associated with the RM Technology Platform assuming a $60,000 average investment per RM Technology Platform investor. See disclosures in the PPM for additional detail.
Certain fees and compensation will be paid over the life of the transaction; please refer to The Wideman Company's materials for details. 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) | 1.98% of Purchase Price | Sponsor | Capitalized Equity Contribution |
| Technology Solution Licensing Fee(3) | Flat $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies' Technology Solution | RM Technologies, LLC | Capitalized Equity Contribution |
Recurring Fees:
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Asset Management Fee | 1.00% of Effective Gross Income(4) | Sponsor | Cash Flow |
| Property Management Fee | 3.00% of Effective Gross Income | Sponsor | Cash Flow |
| Construction Management Fee | 5.00% of Capital Improvements(5) | Sponsor | Cash Flow |
| Administration Solution Licensing Fee(3) | Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of RM Technologies' Administration Solution | RM Technologies, LLC | Cash Flow |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Fee is subordinate to the return of capital to the Equity Investors.
(3) Please see the Fees and Disclosures sections below for additional information concerning fees paid to RM Technologies, LLC.
(4) After a return of capital to the Equity Investors, Asset Management Fee will step up to 3.50% of Effective Gross Income.
(5) 5.00% fee if total cost is $0 - $250,000, 4.00% fee if total cost is $250,001 - $500,000, and 3.00% fee if total cost is at or above $500,001.
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. A Sponsor is 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, RealtyMogul does 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.
Target IRR
Targeted performance metrics, including the target internal rate of return (“Target IRR”), target cash-on-cash return (“Target Cash-on-Cash”) and target equity multiple (“Target Equity Multiple” and collectively, the “Target Returns”) presented herein are hypothetical, are provided for illustrative purposes only, and do not constitute a prediction, projection, or guarantee of future performance. Unless otherwise specified, the Target Cash-on-Cash reflects a hypothetical four-year hold period while the Target IRR and Target Equity Multiple reflect a hypothetical seven-year hold period. These differing time horizons are based on the Sponsor’s assumptions regarding operational performance, capital events and ultimate disposition. Actual hold periods may be shorter or longer. The Target Returns are based on a number of subjective assumptions, estimates, and forward-looking statements regarding future events, market conditions, strategy execution, and other factors that are inherently uncertain and beyond the control of the Sponsor. Actual results may differ materially from the Target Returns. The Target Returns are presented on a “net” basis, (i.e., they reflect the Sponsor fees, “promote,” taxes, transactions costs and other expenses reasonably expected to be borne by investors in the Offering). No representation or warranty, express or implied, is made by the Sponsor or any of its affiliates or representatives that the Target IRR, Target Cash-on-Cash or Target Equity Multiple will be achieved.
Affiliates of Realty Mogul
RM Technologies, LLC (“RM Tech”), an affiliate of RealtyMogul, operates the Platform and charges a fixed, non-percentage-based fee for the Sponsor to use the Platform and receive Platform-related services (the “Platform Fees”). RM Admin, also an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor (the “Admin Fees”). The Platform Fees that RM Tech receives and the Admin Fees that RM Admin receives are each disclosed in the Sponsor’s Investment Documents. RM Tech’s receipt of Platform fees and RM Admin’s receipt of Admin Fees each create a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
No Investment Advice
RealtyMogul is not a registered broker-dealer, investment adviser or crowdfunding portal. 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.
RM Adviser, LLC, a wholly owned subsidiary of RM Investor LLC and an affiliate of RealtyMogul, is an SEC-registered investment adviser. RM Adviser, LLC provides investment management services exclusively to certain REITs and single purpose funds and does not in any way provide investment advisory services to Sponsor, any other Platform sponsors or any Platform investors.