FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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.

Escrow accounts

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.

Boots on the ground

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.

Detailed Checklists

We have formalized processes and checklists for every private placement deal listed on the platform.

Confidentiality Agreement
To access the Sponsor’s private offering documents for this investment, you must first acknowledge and agree to the below.
By clicking the ‘I Agree’ button below:
Canceled
Estimated Hold Period 3-5 years
Estimated First Distribution 4/2018
...
View Our Due Diligence Process
Offered By
ExchangeRight Real Estate LLC
Investment Type Equity
Overview
1031 eligible DST offering featuring credit tenants on long term leases. Diversified Portfolio Including Pharmaceutical, Discount, Health Care, and Auto Retailers.
Property at a glance
Leverage 54.2% Loan-to-Cost / 2.38x Debt Service Coverage Ratio
Tenant & Property Diversification 9 Different Tenants & 16 Different Properties
Credit Tenancy 13 of the 16 Properties are Leased to Investment Grade Tenants
Long Term Existing Leases Existing Lease Terms Range From 9 - 20 Years Remaining
Acquisition Price $62,020,402
Investment Highlights
Portfolio includes a diversified mix of tenants including multiple credit quality tenants
Experienced Repeat Sponsor with Multiple 1031 Eligible Net Leased Portfolios
Geographic diversification among properties in portfolio
Low leveraged portfolio (54.2% Loan-to-Value) with 2.38x Debt Service Coverage Ratio
Management
Cumulative Distributions

ExchangeRight Real Estate LLC

ExchangeRight is committed to providing 1031-exchangeable DST offerings of value-added multifamily properties and net-leased portfolios. Our multifamily platform targets Class B apartments with stable income and value added upside potential. Our multifamily offerings feature strong cash flow, high debt coverage ratios, conservative underwriting, long-term fixed-rate financing, and the potential to enhance return with value-added strategies.

In addition to intentionally structuring offerings with an alignment of interest with investors, the principals of the company have taken a personal investment position in each DST offering that has been brought to market. Each of our DST offerings provides both 1031 and cash investors with pass-through tax deferral advantages.

 

http://www.exchangeright.com/
  • Warren Thomas, CPA
    Founder and Managing Director
  • David Fisher, CPA
    Managing Member
  • Joshua Ungerecht
    Managing Member
  • Dave Van Steenis
    Chief Financial Officer
Warren Thomas, CPA
Founder and Managing Director

Warren currently serves as a managing member for ExchangeRight Real Estate. He is focused on the securitization, broker dealer, and registered representative relations sides of the business. Warren is the co-founder and president over a number of integrated wealth management and securitized real estate companies with Joshua Ungerecht. Prior to focusing on the securitized 1031 exchange market in 2003, Warren developed an extensive tax practice including estate planning, financial planning, and real estate advisory services. Warren has over 30 years of experience as a CPA and has been an active commercial real estate investor for the past 15 years. He graduated in 1978 from Biola University with a B.S. in Business Administration, specializing in Accounting. He also earned a master's degree in Taxation from Golden Gate University in 1993. He maintains Series 6, 7, 22, 24, 39,63, and 79 Securities Licenses.

David Fisher, CPA
Managing Member

David Fisher enjoyed a successful career in banking and finance for 20 years. He is now focused on the management success of ExchangeRight and on managing his own investments. He began his career with KPMG in the tax department, and then worked in tax, treasury, and acquisitions for Wells Fargo for over nine years. He was North American Head of Asset and Structured Finance for HSBC's Investment Banking division for the last seven years of his banking career. David and his banking teams executed international financings in excess of $4 billion. He has been an active real estate investor for the past 10 years and has interests in over 30 partnerships across nine states. He graduated from the University of Northern Iowa in 1993, Magna Cum Laude in Accounting, and earned national honors with the Elijah Watt Sells Award on the May 1993 CPA exam.

Joshua Ungerecht
Managing Member

Joshua currently serves as a managing member for ExchangeRight Real Estate. He is focused on the operations, investment structuring, and acquisitions aspects of the business. Concurrently, he serves as CEO and Chief Investment Officer over a number of integrated wealth management and securitized real estate companies. He developed one of the industry's leading due diligence platforms in securitized real estate analysis. Together with Warren Thomas, Joshua has overseen the acquisition of over $500 million in real estate since 2003. Joshua graduated from The Master's College, Summa Cum Laude with a B.A. in Theology, Apologetics, and Missions, and is currently on leave from Talbot Graduate School, where he was pursuing an M.A. in Philosophy of Religion and Ethics. He also maintains Series 7, 22, 24, 63, 65, and 79 Securities Licenses and an active California real estate license.

Dave Van Steenis
Chief Financial Officer

Dave currently serves as Chief Financial Officer for ExchangeRight Real Estate. He is focused on financial reporting and acquisitions for the Company. Dave began his career with KPMG in the financial services audit practice, and most recently was with Kaufman Jacobs Real Estate Investments were he was involved in the investment acquisition, capital markets, and financial reporting aspects of the business. Dave graduated from Trinity Christian College with highest honors with a B.S. in Accounting and a Finance concentration. Dave is a CPA and is also a CFA Level III candidate.

Track Record

Completed Prior Programs
Offering Description Targeted Annualized Return Actual Annualized Return*
Net-Leased Preferred Equity Fund 1 Shorter-term fund to acquire and sell net-leased assets for the Sponsor. Range of 12-20%** Average
Annualized
Fund
Return of
14%
Acquisition Notes Company that issues short term debt capital to the Sponsor to acquire and sell net-leased assets. Performing as expected. Range of 12-14%** 12%
Current Programs
Offering Description Targeted Annualized Return Actual Annualized Return*
Net-Leased Preferred Equity Fund 2 Shorter-term fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. Range of 8-12%** 10%
Net-Leased Preferred Equity Fund 3 Shorter-term fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. 8.25% 8.25%
Acquisitions Notes II Company that issues short term debt capital to the Sponsor to acquire and sell net-leased assets. Performing as expected. Range of 8-
12%**
10%
Acquisition Notes 3 Company that issues short term debt capital to the Sponsor to acquire and sell assets. Performing as expected. 8.25% 8.25%
Net-Leased Portfolio 1 Portfolio of two long-term net-leased properties leased to Family Dollar. One of the two properties sold in January, 2015 at a 10.59% annualized  net profit to investors. Current remaining property return shown in chart and is exceeding expectations. 7.25% 7.39%
Net-Leased Portfolio 2 Portfolio of seven long-term net-leased properties leased to Family Dollar (6) and Dollar General (1). Performing as expected. 7.45% 7.45%
Net-Leased Portfolio 3 Portfolio of nine long-term net-leased properties leased to Family Dollar (8) and Dollar General (1). Performing as expected. 7.30% 7.30%
Net-Leased Portfolio 4 Portfolio of eleven long-term net-leased properties leased to Family Dollar (8), Dollar General (1), Aaron's (1) and Advance Auto Parts (1). Performing as expected. 8.10% 8.10%
Net-Leased Portfolio 5 Portfolio of fourteen long-term net- leased properties leased to Family Dollar (5), Dollar General (4), Advance Auto Parts (2), AutoZone (1), Sherwin Williams (1) and The Christ Hospital (1). Performing as expected. 7.53% 7.53%
Net-Leased Portfolio 6 Portfolio of sixteen long-term net- leased properties leased to Family Dollar (3), Dollar General (8), Advance Auto Parts (1), AutoZone (1), CVS (1), Dollar Tree (1) and Tractor Supply  (1). Performing as expected. 7.51% 7.51%
Net-Leased Portfolio 7 Portfolio of sixteen long-term net- leased properties leased to Family Dollar (4), Dollar General (8), Advance Auto Parts (1), CVS (1), Napa Auto Parts (1), and O'Reilly Auto Parts (1). Performing  as expected. 7.75% 7.75%
Net-Leased Portfolio 8 Portfolio of thirteen long- term net- leased properties leased to Advance Auto Parts (3), AutoZone (2), CVS (1), Dollar General (2), Family Dollar (1), Franciscan Alliance (1), Ross Stores (1) and Tractor Supply (2). Performing as expected. 7.32% 7.32%
Net-Leased  Portfolio 9 Portfolio of twenty-two long- term net- leased properties leased to Advance Auto Parts (4), AutoZone (4), CVS (1), Dollar General (9), Hobby Lobby (1), Napa Auto Parts (2) and TCF National Bank (1). Performing  as expected. 7.14% 7.14%
Net-Leased Portfolio 10 Portfolio of twenty-two long-term net- leased properties leased to Advance Auto Parts (3), AutoZone (1), CVS (1), Dollar General (5), Dollar Tree (1), Family Dollar (4), Napa Auto Parts (2), O'Reilly Auto Parts (2), PNC Bank (1) and Tractor Supply (2). Performing as expected. 7.06% 7.06%
Net-Leased Portfolio 11 Portfolio of seventeen long-term net- leased properties leased to Advance Auto Parts (3), CVS (1), Dollar General (5), Family Dollar (2), Hobby Lobby (1), Napa  Auto Parts (3), Sherwin- Williams (1) and Walgreens (1). 6.75% 6.75%
Net-Leased Portfolio 12 Portfolio of nineteen long-term net- leased properties leased to Advance Auto Parts (3), Dollar General (9), Family Dollar (1), Fresenius Medical Care (1), Kroger (1), Napa Auto Parts (2), Tractor Supply (1), and Walgreens (1). 6.15% 6.30%
Net-Leased Portfolio 13 Portfolio of twenty long-term net- leased properties leased to Advance Auto Parts (1), CVS, (1), Dollar General (5), Family Dollar (4), Hobby Lobby (1), Napa Auto Parts (1), Sherwin Williams (4), Tractor Supply (1) and Walgreens (2). 6.64% 6.80%
Net-Leased Portfolio 14 Portfolio of seventeen long-term net- leased properties leased to Advance Auto Parts (1), Athletico Physical Therapy (1), Dollar General (6), Fresenius Medical Care (2), MedSpring (1), Napa Auto Parts (1), O’Reilly Auto Parts (1), Tractor Supply (1) and Walgreens (3). 6.50% 6.57%
Net-Leased Portfolio 15 Portfolio of sixteen long-term net- leased properties leased to Advance Auto Parts (2), CVS (1), Dollar General (6), Family Dollar (1), Fresenius Medical Care (1), Goodwill (1), Hobby Lobby (1), Indianapolis Osteopathic Hospital (1) and Walgreens (2). 6.51% 6.51%
Net-Leased Portfolio 16 Portfolio of nineteen long-term net- leased properties leased to Advance Auto Parts (3), Dollar General (7), Family Dollar (1), Hobby Lobby (1), Sherwin Williams (1), Tractor Supply (2) and Walgreens (4). 6.78% 6.78%
Net-Leased Portfolio 17 Portfolio of sixteen long-term net- leased properties leased to Advance Auto Parts (1), Dollar General (7), Goodwill (1), Pick ‘n Save (Kroger Guarantee) (1), Napa Auto Parts (1), Tractor Supply (2), Verizon Wireless (1) and Walgreens (2) . 6.84% 6.84%
Net-Leased Portfolio 18 Portfolio of seventeen long-term net- leased properties leased to Advance Auto Parts (1), CVS (1), Dollar General (6), Fresenius Medical Care (1), Hobby Lobby (1), Napa Auto Parts (1), Tractor Supply (2) and Walgreens (4). 6.62% 6.62%
Net-Leased Portfolio 19 Portfolio of twenty one long-term net- leased properties leased to Advance Auto Parts (2), Dollar General (9), Fresenius Medical Care (1), Hobby Lobby (1), Napa Auto Parts (2), Verizon Wireless (1) and Walgreens (3). 6.73% 6.73%
Multifamily 1 - Van Mark Creek Apartments One (1) apartment community consisting of 144 units. Performing as expected. 7.21% 7.21%
Mira Bella  and San Martin One (1) apartment community consisting of 378 units. Performing as expected. 6.71% 6.71%
Lakeside at Arbor Place Apartments One (1) apartment community consisting of 246 units. Performing as expected. 6.54% 6.54%
North Austin Apartment Portfolio Three (3) apartment communities consisting of 422 units. Performing as expected. 6.48% 6.48%
Crystal Lake Florida Apartments One (1) apartment community consisting of 224 units. Performing as expected. 6.35% 6.35%
El Paso Apartment Portfolio  Two (2) apartment communities consisting of 393 units. Performing as projected.  5.75% 5.75%

 

*These returns were provided by and calculated by the Sponsor

**These investment opportunities are open-ended (i.e. Investors come into the fund at different times) resulting in a range of returns

On February 22, 2018 (the “Loan Closing Date”), the Sponsor acquired the Properties for an aggregate acquisition cost of $62,020,402 and then assigned all of the Properties to the Trust pursuant to the terms of the Trust Agreement. The Properties are now owned 100% by the Trust. In conjunction with the purchase of the Properties, ExchangeRight NLP 20 Master Lessee ("Master Lessee") became the lessor under the Tenants’ leases. The Trust is a passive owner of the Properties and is not to be involved in any manner in the active management of the Properties. The Manager has been appointed to manage the Trust pursuant to the Trust Agreement.

Investors are being offered the opportunity to invest in a portfolio of sixteen (16) single-tenant, long-term net-leased retail assets (the "Portfolio", or the "Properties") that are currently 100% occupied. The Portfolio is composed of a diversified tenant base:

  • 21% Grocery (Pick n Save/Kroger Guarantee)
  • 20.5% Health Care (Fresenius Medical Care, BioLife)
  • 14.9% Agriculture (Tractor Supply)
  • 14.1% Pharmaceutical (Walgreens)
  • 11.5% Discount Automotive (NAPA, Advance Auto)
  • 10.4% Discount Necessity Retail (Dollar General)
  • 7.6% Communications (Verizon)

ExchangeRight Net-Leased Portfolio 20 DST, a Delaware Statutory Trust ("DST"), owns the Portfolio, and ExchangeRight Real Estate, LLC ("Sponsor") is offering beneficial interests in the trust to investors. The Sponsor is retaining at least a 1.0% ownership interest in the Portfolio and is offering up to 99.0% of the beneficial interests in the DST to accredited investors ("Beneficial Owners"). The Trust expects to provide the Beneficial Owners a return on their investment in two primary ways: (i) in the form of monthly cash distributions to the Beneficial Owners; and (ii) upon any Disposition of the Properties.

The total offering amount is $71,007,000, of which $32,550,000 is equity and $38,457,000 is long-term fixed rate financing.​

This offering is designed for two types of investors. "Existing 1031 Investors" who have already sold or are planning to sell an existing property that is 1031 eligible and want to invest in this offering to complete their 1031 exchange.  As well as "Cash Investors" who are investing with funds that are not part of an existing 1031 exchange but want the option for future sales to be 1031 exchange eligible. Existing 1031 Investors may invest for a minimum of $100,000; Cash Investors may invest for a minimum of $25,000.

 

Property Information
Property Details
Tenant Location Credit Rating* Size Annual Rent Lease Type Lease Expiration
Advance Auto Parts Columbus, OH BBB- 6,987 $96,296 NNN 11/30/31
Advance Auto Parts Humble, TX BBB- 6,923 $123,981 NNN 7/31/31
Advance Auto Parts San Antonio, TX BBB- 6,896 $125,834 NNN 6/30/29
BioLife Plasma Services L.P. Cordova, TN Baa3 16,767 $593,451 NNN 2/28/33
Dollar General Copley, OH BBB 11,130 $114,999 NNN 10/31/32
Dollar General Griffin, GA BBB 9,260 $94,236 NN 2/29/32
Dollar General Toledo, OH BBB 9,367 $102,900 NNN 4/30/28
Dollar General Youngstown, OH BBB 9,100 $95,295 NNN 1/31/33
Fresenious Medical Care Warren, OH BBB- 8,698 $207,677 NN 11/27/32
NAPA Auto Parts Pekin, IL n/a 14,858 $102,000 NNN 2/5/38
Pick n Save Grafton, WI BBB 60,799 $818,904 NN 12/31/29
Tractor Supply Mobile, AL n/a 18,867 $227,000 NN 11/30/32
Tractor Supply Tallahassee, FL n/a 22,332 $356,400 NN 4/30/28
Verizon Wireless Columbia, SC BBB+ 5,010 $297,202 NN 10/31/27
Walgreens Homewood, IL BBB 13,494 $180,342 NN 8/31/29
Walgreens Mobile, AL BBB 14,504 $370,000 NNN 1/31/29

*Credit Ratings are from S&P (Standard & Poor)

**Credit rating for BioLife lease is from Moody's. BioLife lease is guaranteed by Baxalta, which was acquired by Shire plc and has a Baa3 rating by Moody's. 

Tenant Summaries**

Dollar General (NYSE: DG) is one of the nation’s largest small-box discount retailers. Dollar General has over 121,000 employees operating over 13,300 locations in 43 states. It strives to make shopping for everyday needs simpler and hassle-free by offering a carefully selected assortment of the most popular brands at low everyday prices in small, convenient locations. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

 

Advance Auto Parts (NYSE: AAP) is an aftermarket retailer of automotive parts and supplies and a provider of auto maintenance services. It operates nearly 4,000 stores and employs about 55,000 “Team Members.” Increases in new vehicle sales allow Advance Auto to demonstrate its key strategies: superior availability and service leadership. It continues to increase its delivery speed, reliability, and supply chain, and it is opening new stores in underserved markets.

Pick ‘n Save was founded in 1975 in Milwaukee, Wisconsin and is now the premier supermarket chain in Wisconsin with over 100 stores serving customers. Pick ‘n Save is focused on giving back to their community and have supported them with nearly $4 million in funds and food since 2003. Featuring competitive employee benefits and a strong commitment to promote from within, Pick ‘n Save employs approximately 10,000 employees. In 2015, Pick ‘n Save became a wholly owned subsidiary of Kroger (NYSE: KR).

BioLife Plasma Services is an industry leader in the collection of high-quality plasma that is processed into life-saving plasma-based therapies. They operate numerous state-of-the-art plasma collection facilities throughout the United States and Austria. BioLife Plasma Services is part of Shire (NASDAQ: SHPG), the leading global biotechnology company focused on serving people affected by rare diseases and highly specialized conditions. Shire plc was founded in 1986 and is based in Dublin, Ireland.

 

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Tractor Supply Co. (NASDAQ: TSCO) is a leading chain of retail stores that each carry products related to home improvement, agriculture, truck maintenance, livestock, equine care, and household pet care. It employs over 17,000 individuals and operates over 1,200 stores across 47 states. Stores are strategically located in towns outlying major metropolitan areas and in rural communities. It was listed by Forbes among the 100 fastest growing businesses.

 

 

Fresenius Medical Care (NYSE: FMS) provides dialysis and related products, inpatient/outpatient care products, and services such as engineering to hospitals and related facilities. Fresenius operates more than 2,100 dialysis centers in North America and has over 100,000 employees. These facilities routinely provide medically necessary renal care to hundreds of thousands of patients with chronic kidney failure, a condition that affects more than 2.1 million individuals globally.

Walgreens (NASDAQ: WBA) is the largest drug retailer in America—employing approximately 248,000 people and operating 8,678 stores throughout the United States. Walgreens’ products include over-the-counter medicine and consumer products, pharmacy services and photo services. Walgreens has expanded through a series of strategic acquisitions and was included in Fortune’s World’s Most Admired Companies list for the 20th consecutive year.

 NAPA (The National Automotive Parts Association) is an American-based voluntary trade association that distributes and sells over 400,000 products to auto and industrial sectors. NAPA’s sole member and majority owner is Genuine Parts Company (NYSE: GPC). Its infrastructure and commitment to quality produce higher revenues, a stronger operating margin, and a more-credit-positive debt-to-EBITDA ratio than found in the rest of the industry.?

 

Verizon Communications Inc., through its subsidiaries, provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. As of December 31, 2016, it had 114.2 million retail connections. Verizon Communications Inc. was founded in 1983 and is headquartered in New York City, New York.

 

**Tenant Summaries have been provided by Sponsor and have not been verified by Realty Mogul or North Capital Private Securities

Comparables

Appraisals for all properties available upon request. Please email investor-help@realtymogul.com.

Location Information

The Portfolio contains properties located in the following cities and states:

  • San Antonio, TX
  • Humble, TX
  • Toledo, OH
  • Youngstown, OH
  • Columbus, OH
  • Copley, OH
  • Warren, OH
  • Griffin, GA
  • Cordova, TN
  • Columbia, SC
  • Pekin, IL
  • Homewood, IL
  • Mobile, AL
  • Grafton, WI
  • Tallahassee, FL
Cap Stack
Sources & Uses
Total Capitalization
Sources of Funds Cost
Equity $32,550,000
Debt $38,457,000
Total Sources of Funds $71,007,000
Uses of Funds Cost
Purchase Price $62,020,402
Acquisition Closing Costs $3,118,304
Acquisition Fee $1,138,169
Reallowance of Acquisition Fee $325,500
Broker-Dealer Fee and Marketing Allowance $2,604,000
Syndication Costs & Third Party Costs $110,000
Organizational, Offering Costs, Pre-Paid Taxes, & Insurance $225,636
Reserves (excluding Pre-paid Taxes & Insurance) $1,383,614
Sponsorship Cost $81,375
Total Uses of Funds $71,007,000
Debt Assumptions

The Portfolio has existing debt: 

  • Lender: Societe Generale
  • Loan Origination Date: 2/22/2018
  • Loan Proceeds: $38,457,000
  • Loan to Cost: 54.2%
  • Interest Rate: Fixed (4.202%)
  • Amortization: 10-year interest only
  • Recourse: Non-recourse to the Trust, but recourse to the Trust and principals of the Sponsor for certain (i) "bad acts," and (ii) environmental indemnification
  • Term: 10 years
Distributions

The Sponsor is to make distributions directly to investors who own a beneficial interest in the DST on a pro-rata basis.

Distributions are expected to start for each investor within 45 days of the completion of that investors beneficial interest in the DST. Distributions are expected to continue on a monthly basis thereafter. These distributions are at the discretion of the Sponsor and made directly by the Sponsor, neither Realty Mogul Co. nor any of its affiliates have any control or discretion on the timing or amount of distributions.

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 $1,138,169 Sponsor Capitalized Equity Contribution 3.5% of the offering amount.
Reallowance of Acquisition Fee $325,500 Sponsor Capitalized Equity Contribution 1% of the offering amount. Paid to ExchangeRight Securities, an affiliate of Sponsor.
Broker-Dealer Fee 7.0% Broker Dealers Capitalized Equity Contribution Paid to North Capital(1) or other licensed broker-dealers based on the amount of equity capital raised. Surplus fees retained by Sponsor.
Marketing & Due Diligence Fee 1.0% Broker Dealers Capitalized Equity Contribution 1.0% based on the amount of equity invested by investors through RealtyMogul.com, third-party Broker Dealers (including North Capital(1)) are entitled to additional fees based on equity they originate. Surplus fees retained by Sponsor.
Syndication Costs $80,000 Sponsor or Third Parties Capitalized Equity Contribution Approximately 0.25% of the Maximum Offering Amount
Organizational & Offering Costs $65,100 Sponsor Capitalized Equity Contribution 0.2% of maximum offering amount.
Sponsorship Cost $81,375 Sponsor Capitalized Equity Contribution 0.25% of the offering amount. To reimburse Sponsor for accounting, due diligence, marketing, distribution, and other costs.
Disposition Fee 2.0% Manager Disposition Proceeds 2.0% of gross proceeds from disposition of property if disposition price is greater than $71,007,000
Recurring Fees
Type of Fee Amount of Fee Received By Paid From Notes

Asset Management Fee

.04% of gross rental income Manager Operating Cash Flow  
Property Management Fee 2.5% of gross rental income Manager Operating Cash Flow

 

Trustee Fee $750 annually Third-Party Operating Cash Flow Unaffiliated third party
Master Lease Operating Profit N/A Master Lessee Operating Cash Flow Master Lessee will retain operating revenues from the Properties that exceed the annual base rent. 

Notes:
(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.

The above presentation is based upon information supplied by the Sponsor or others.  Realty Mogul, Co. along with its 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.

The following offering documents 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.
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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