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Multifamily
Villas del Mar
Fort Worth, TX
Completed Equity
100% funded
...
Villas del Mar
Fort Worth, TX
All Investments > Villas del Mar
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Overview
Villas del Mar
Value-add acquisition of a well located multifamily property by an experienced, repeat Real Estate Company.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 9/2018
Estimated Hold Period 5 years
Investment Strategy Value-Add
Investment Type Equity
Year Built 1968
# of Units 263
# of Buildings 35
Current Occupancy 94%
Parking Ratio 1.66 / Unit
Amenities Leasing office with full public kitchen, swimming pool, clubhouse, children's play area, a public mail  center, public laundry center and 24 hour emergency on-site maintenance.
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 Real Estate Company that owns and manages over $285 million in multifamily assets across 4,800 units and has transacted with RealtyMogul on six previous transactions.
Strong initial cash flow with achievable value-add upside through renovations: The Real Estate Company intends to increase the average rent at the Property by approximately $30 per unit upon completion of the capital improvement plan. The Real Estate Company's estimated post-renovation rents of $908 per unit is less than the Property appraisal's estimated current market rent figure of $919 per unit.
Stable market fundamentals: According to CoStar, Southwest Fort Worth anticipates population growth through 2022 of 10.6%, 9.5% and 8.9% within one, three and five miles of the Property.
Opportunity for Cost Efficiencies: The budgeted installation of low-flow water fixtures, LED exterior lighting, and zero-scape landscaping throughout the Property is expected to lower total utility expenditures by over 20%.
Experienced Real Estate Company that owns and manages over $285 million in multifamily assets across 4,800 units and has transacted with RealtyMogul on six previous transactions.
Strong initial cash flow with achievable value-add upside through renovations: The Real Estate Company intends to increase the average rent at the Property by approximately $30 per unit upon completion of the capital improvement plan. The Real Estate Company's estimated post-renovation rents of $908 per unit is less than the Property appraisal's estimated current market rent figure of $919 per unit.
Stable market fundamentals: According to CoStar, Southwest Fort Worth anticipates population growth through 2022 of 10.6%, 9.5% and 8.9% within one, three and five miles of the Property.
Opportunity for Cost Efficiencies: The budgeted installation of low-flow water fixtures, LED exterior lighting, and zero-scape landscaping throughout the Property is expected to lower total utility expenditures by over 20%.
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Management
For more information, view the Sponsor's Investment Memorandum.
Comunidad Realty Partners

Comunidad Realty Partners (CRP) is a dynamic real estate investment firm specializing in multifamily apartment communities in densely-populated Hispanic neighborhoods. Core to its investment strategy is creating culturally-relevant, inclusive communities that are tailored to the various ethnicities living at its communities. CRP owns and manages over $286 million in multifamily assets overall, comprising approximately 4,800 units. 

CRP specializes in acquiring and repositioning apartments in infill locations and implementing its proprietary cultural management platform which includes specific cultural upgrades and community-oriented resident services and programs. CRP uses its multifamily lifestyle brand “Buena Vida Community” at its properties to represent its mission of delivering an unparalleled experience of enhanced multifamily living by providing more than just a home but a lifestyle. The firm was founded on a simple principle: enrich lives through enhancing communities while creating value for all stakeholders involved. The firm takes a holistic approach to its investments through symbiotic stakeholder integration of residents, staff, vendors, the greater community, the environment, and investors in order to truly maximize economic and social returns. Its investment philosophy is predicated on fostering innovative lifestyle improvements that align with its residents wants and needs and differentiate the living experience in order to create long-term value for residents and communities in a socially responsible way. Additionally, the firm is focused on “green” environmental improvements that reduce its properties’ energy footprint while reducing utility costs for residents.

RealtyMogul has invested in six prior transactions with the Real Estate Company (Tuscany Apartments, Plano Portfolio, Gazebo Park, Villas de Serenada, Villas del Cabo & Villas de Santa Fe, and Villas de la Colonia). Villas de la Colonia (formerly Metrocrest Village) was acquired in Q2 2014, went full cycle in Q2 2017, and resulted in an IRR to RealtyMogul investors that exceeded pro forma. The renovation program at Villas de la Colonia pushed average leased rents up 20.1%, from $730 per unit to $877 per unit, and reduced the property's expense ratio from 56.8% to 37.3%. Net operating income increased by 32.4% at Villas de la Colonia over the hold period.

Sponsor Track Record
Schedule of Real Estate Owned
Property Name Location Asset Units Cost Basis Occupancy
Villas de la Luz Apartments Austin, TX MF 240 $10,865,000 89%
Villas de la Cascada Apartments San Antonio, TX MF 268 $18,265,000 94%
Villas del Zocalo Phase 1 Dallas, TX MF 206 $5,344,828 96%
Villas del Zocalo Phase 2 Dallas, TX MF 192 $4,810,345 95%
Villas del Zocalo Phase 3 Dallas, TX MF 224 $5,344,828 98%
Villas de Estancia Apartments Irving, TX MF 206 $12,667,724 95%
Villas de Serenada Apartments Euless, TX MF 208 $13,625,000 96%
Villas del Encanto Apartments San Antonio, TX MF 334 $15,580,000 95%
The Vive Apartments Dallas, TX MF 248 $14,836,104 90%
Cantera Creek Ph. 1 Apartments Dallas, TX MF 200 $11,038,800 90%
Cantera Creek Ph. 2 Apartments Dallas, TX MF 272 $15,012,768 90%
The Lantern Apartments Dallas, TX MF 340 $20,943,660 90%
Villas de Santa Fe Apartments San Antonio, TX MF 208 $13,172,676 90%
Azura Apartments Phoenix, AZ MF 387 $24,000,000 93%
Colinas Ranch Apartments Irving, TX MF 160 $10,418,000 98%
Villas del Solamar Dallas, TX MF 212 $5,800,000 96%
Villas del Cabo San Antonio, TX MF 272 $19,613,324 93%
Parkview on Hollybrook Longview, TX MF 209 $31,588,000 80%
Gazebo Park Apartments Acworth, GA MF 216 $17,540,840 96%
Tuscany Apartments San Antonio, TX MF 190 $16,046,556 93%
Total     4,792 $286,513,453  

 

Full Cycle Transactions
Property Name Location Asset Units Cost Basis Occupancy
Villas de Sendero Apartments  San Antonio, TX MF 209 $8,750,000 97%
Villas de las Colinas Apartments  Austin, TX MF 178 $4,700,000 98%
Villas del Sol Apartments  Austin, TX MF 294 $9,650,000 93%
Villas de Palmas Apartments  Houston, TX MF 659 $22,425,687 98%
Villas de la Colonia Apartments  Carrollton, TX MF 143 $6,055,000 99%
The Current Apartments Austin, TX MF 302 $22,650,000 95%
Total     1,785 $74,230,687  

The above track record information was provided by the Sponsor and has not been independently verified by RealtyMogul.

 

Website
Management Team
Management
J. Antonio Marquez
Managing Partner

J. Antonio Marquez serves as Principal and Managing Partner of Comunidad Realty Partners, a Quez Capital company. He is responsible for strategic planning, capital raising efforts, and sourcing acquisition opportunities for the firm. He is involved in business plan formation on new acquisitions, value-add strategy implementation, and Hispanic marketing efforts. Mr. Marquez has 15 years of experience with his family’s group of companies targeting the Hispanic demographic. He has been involved in over $130 million in commercial/multifamily real estate transactions working with GE Capital, Goldman Sachs, and Principal Real Estate Investors. He has over 10 years of experience managing his family’s commercial portfolio totaling over 1.5 million square feet of office, retail, and industrial space and valued over $110 million. Mr. Marquez graduated cum laude from California Polytechnic – San Luis Obispo and attended the University of Southern California’s Lusk Center for Real Estate where he focused his postgraduate studies in urban real estate with emphasis in affordable/workforce housing through the Stan Ross Program in Real Estate.

Management
Santiago Rivera Torres
Managing Director

Santiago Rivera Torres is a Managing Director at Comunidad Realty Capital. He oversees day to day operations across the portfolio including capital improvement projects, ancillary income services and cultural services & programs implementation. He also is involved in establishing and developing the firm’s commercial partnerships and strategic alliances as well as supporting capital raising efforts and investor relations. Mr. Rivera Torres has worked in the Real Estate and Construction sector in Mexico and U.S. for the last 12 years; his experience ranges from working on family-owned projects on beachfront developments in Baja to residential and low income housing projects in Northern Mexico and retail development in Cabo San Lucas. The Rivera Torres family has been involved in $3 billion USD in housing (400,000 units), hotels & resorts, industrial parks, retail/mall development, and infrastructure development throughout Mexico. In addition, he headed the sales effort for GlobalSolar, a Mexican green technology company specializing in energy-efficient and environmentally sustainable equipment for housing developments throughout Mexico. While he led the sales effort, the company quickly grew to become the largest provider of green technologies to the construction sector in Northern Mexico. Mr. Rivera Torres has a long lineage of real estate experience joined Quez Capital Interests in the early summer of 2012 after learning of their philosophy and Hispanic based multi-family business model.

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

Built in 1968, the Property consists of one, two and three-bedroom floor plans combining to 263 units, 35 buildings, 437 parking spaces (1.66 per unit), and 274,213 square feet.  As of December 2017, the Property was 94% occupied. The weighted average unit size and in-place net effective rent per unit is 1,043 square feet and $876 ($0.84 per square foot), respectively (per the December 2017 rent roll). Amenities across the Properties include a swimming pool, clubhouse, children's play area, a public mail center, a public laundry center, 24 hour emergency on-site maintenance, and a leasing center with full public kitchen. 

 

In-Place Unit Mix
Unit Type # of Units % of Total Unit (Square Feet) Total Square Feet Rent Per Unit Rent Per Square Foot
1 Bedroom 44 17% 860 37,840 $785 $0.91
2 Bedroom 162 61% 1,011 163,854 $846 $0.84
3 Bedroom 57 22% 1,272 72,519 $1,031 $0.81
Totals/Averages 263 100% 1,043 274,213 $876 $0.84
Comparables
For more information, view the Sponsor's Investment Memorandum.
Sale Comparables
  Tradewind I & II Sonoma Apartments French Colony Hampton Terrace Falls and Oak Village Averages Subject
Date February 2017 August 2017 August 2016 December 2016 January 2017   February 2018
# of Units 308 60 94 244 408 223 263
Year Built 1967 1964 1963 1969 1977 1973 1968
Purchase Price $16,700,000 $3,510,000 $5,100,000 $14,150,000 $26,000,000 $13,092,000 $14,530,000
$/Unit $54,221 $58,500 $54,255 $57,992 $63,725 $57,739 $55,250
Cap Rate 6.69% 6.50% 6.45% 5.40% 5.40% 6.09% 5.83%
Lease Comparables
  El Ranchito West Bella Terra Westlake Gardens El Jardin Apartments Parkside Apartment Homes Chilsolm Trail Townhomes Averages Subject (Post-Renovation)
# of Units 68 200 180 93 170 168 147 263
Year Built 1968 1970 1984 1965 1973 1982 1974 1968
Occupancy 92% 93% 95% 95% 89% 97% 94% 94%
Average SF 1,046 921 740 1,098 819 1,068 949 1,043
Average Rental Rate $906 $824 $834 $1,104 $881 $878 $905 $908
Average $/SF $0.87 $0.89 $1.13 $1.01 $1.08 $0.82 $0.97 $0.87
Distance (miles from subject) 0.1 0.7 0.7 1.9 1.9 0.4 1.0  

Lease and Sale Comparable information provided by Property appraisal.

Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $12,658,000
Equity $3,756,102
Total Sources of Funds $16,414,102
Uses of Funds Cost
Purchase Price $14,530,750
CapEx Reserve $860,000
Real Estate Company Acquisition Fee $217,960
MogulREIT II Acquisition Fee $48,750
North Capital Broker Dealer Fee $90,675
Lender Origination Fee $46,500
Buyer's Broker Fee $101,717
Working Capital $50,000
Escrows $95,000
Closing Costs $74,750
Cash Flow Reserve $298,000
Total Uses of Funds $16,414,102
Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Arbor Commercial Funding I, LLC (as DUS Lender for Fannie Mae)
  • Estimated Proceeds: $12,658,000
  • Estimated Rate (Fixed): 10 Year Treasury + 2.07% (4.93% all-in as of February 9, 2018)
  • Amortization: 30 years, with three years of interest-only
  • Term: 12 years
  • Prepayment Penalty: 11.5 years of yield maintenance
  • Assumption Fee: 1.0% of outstanding loan principal balance

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.

Distributions

The Target will make distributions to investors (The Company, MogulREIT II, and Real Estate Company, collectively, the "Members") as follows:  

Operating Income, Refinance, and Sales Proceeds

  1. To the Members, in proportion to, and to the extent of, their accrued but unpaid preferred returns (8.0%).
  2. To the Members, in proportion to, and to the extent of, their unreturned capital.
  3. 70.0% / 30.0% (70.0% to Members / 30.0% to the Real Estate Company) of excess cash flows and appreciation to a 16.0% IRR to Members. 
  4. 60.0% / 40.0% (60.0% to Members / 40.0% to the Real Estate Company) of excess cash flow and appreciation thereafter.  

Note that 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).

The Company will distribute 100% of its share of excess cash flow (after expenses) to the members of The Company (the RealtyMogul investors).  Distributions are expected to start in September 2018 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Real Estate Company, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Summary
  Year One Year Two Year Three Year Four Year Five
Effective Gross Revenue $2,493,314 $2,897,914 $2,992,545 $3,071,008 $3,143,439
Total Operating Expenses $1,611,838 $1,730,148 $1,775,415 $1,822,533 $1,870,701
Net Operating Income $881,476 $1,167,767 $1,217,130 $1,248,476 $1,272,739
Realty Mogul 109, LLC Cash Flows
  Year 0 2018 2019 2020 2021 2022 2023
Distributions to
Realty Mogul 109, LLC Investors
($1,875,000) $120,733 $222,811 $248,413 $189,322 $185,663 $2,505,006
Net Earnings to Investor
- Hypothetical $50,000 Investment
($50,000) $3,220 $5,942 $6,624 $5,049 $4,951 $66,800
Fees

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

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee $217,961 Real Estate Company  Capitalized Equity Contribution 1.5% of the Property purchase price. 
Acquisition Fee $48,750 RM Advisor, LLC Capitalized Equity Contribution RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co.
Disposition Fee 1.0% of gross sale proceeds RM Advisor, LLC Distributable Cash RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co.
Broker-Dealer Fee $90,675 North Capital (1) Capitalized Equity Contribution 4.875% based on the amount of equity invested by Realty Mogul 109, LLC.
Construction Management Fee 10.0% of costs Real Estate Company Capitalized Equity Contribution  
Recurring Fees
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee 1.5% of effective gross revenues Real Estate Company Operating Cash Flow  
Management and Administrative Fee 1.25% of amount invested in Realty Mogul 109, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 109, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

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

The above presentation is based upon information supplied by the Real Estate Company or others.  Realty Mogul, Co., RM Manager, LLC, and The Company, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $12,658,000
Equity $3,756,102
Total Sources of Funds $16,414,102
Uses of Funds Cost
Purchase Price $14,530,750
CapEx Reserve $860,000
Real Estate Company Acquisition Fee $217,960
MogulREIT II Acquisition Fee $48,750
North Capital Broker Dealer Fee $90,675
Lender Origination Fee $46,500
Buyer's Broker Fee $101,717
Working Capital $50,000
Escrows $95,000
Closing Costs $74,750
Cash Flow Reserve $298,000
Total Uses of Funds $16,414,102
Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Arbor Commercial Funding I, LLC (as DUS Lender for Fannie Mae)
  • Estimated Proceeds: $12,658,000
  • Estimated Rate (Fixed): 10 Year Treasury + 2.07% (4.93% all-in as of February 9, 2018)
  • Amortization: 30 years, with three years of interest-only
  • Term: 12 years
  • Prepayment Penalty: 11.5 years of yield maintenance
  • Assumption Fee: 1.0% of outstanding loan principal balance

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.

Distributions

The Target will make distributions to investors (The Company, MogulREIT II, and Real Estate Company, collectively, the "Members") as follows:  

Operating Income, Refinance, and Sales Proceeds

  1. To the Members, in proportion to, and to the extent of, their accrued but unpaid preferred returns (8.0%).
  2. To the Members, in proportion to, and to the extent of, their unreturned capital.
  3. 70.0% / 30.0% (70.0% to Members / 30.0% to the Real Estate Company) of excess cash flows and appreciation to a 16.0% IRR to Members. 
  4. 60.0% / 40.0% (60.0% to Members / 40.0% to the Real Estate Company) of excess cash flow and appreciation thereafter.  

Note that 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).

The Company will distribute 100% of its share of excess cash flow (after expenses) to the members of The Company (the RealtyMogul investors).  Distributions are expected to start in September 2018 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Real Estate Company, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Summary
  Year One Year Two Year Three Year Four Year Five
Effective Gross Revenue $2,493,314 $2,897,914 $2,992,545 $3,071,008 $3,143,439
Total Operating Expenses $1,611,838 $1,730,148 $1,775,415 $1,822,533 $1,870,701
Net Operating Income $881,476 $1,167,767 $1,217,130 $1,248,476 $1,272,739
Realty Mogul 109, LLC Cash Flows
  Year 0 2018 2019 2020 2021 2022 2023
Distributions to
Realty Mogul 109, LLC Investors
($1,875,000) $120,733 $222,811 $248,413 $189,322 $185,663 $2,505,006
Net Earnings to Investor
- Hypothetical $50,000 Investment
($50,000) $3,220 $5,942 $6,624 $5,049 $4,951 $66,800
Fees

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

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee $217,961 Real Estate Company  Capitalized Equity Contribution 1.5% of the Property purchase price. 
Acquisition Fee $48,750 RM Advisor, LLC Capitalized Equity Contribution RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co.
Disposition Fee 1.0% of gross sale proceeds RM Advisor, LLC Distributable Cash RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co.
Broker-Dealer Fee $90,675 North Capital (1) Capitalized Equity Contribution 4.875% based on the amount of equity invested by Realty Mogul 109, LLC.
Construction Management Fee 10.0% of costs Real Estate Company Capitalized Equity Contribution  
Recurring Fees
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee 1.5% of effective gross revenues Real Estate Company Operating Cash Flow  
Management and Administrative Fee 1.25% of amount invested in Realty Mogul 109, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 109, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

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

The above presentation is based upon information supplied by the Real Estate Company or others.  Realty Mogul, Co., RM Manager, LLC, and The Company, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

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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