
Ravinia Capital Group, founded in 2013, is a Chicago-based real estate investment and ownership firm. Founded by seasoned real estate professionals with 50 years of combined investment, asset management and redevelopment experience, the Ravinia team currently owns over $290 million of commercial real estate. Ravinia focuses exclusively on middle market transactions with asset values ranging between $5 million and $100 million in targeted US submarkets. They seek to acquire properties at prices below replacement cost with in-place cash flow and value-add upside. This approach is based upon the principals' real estate experience through various economic cycles.
RealtyMogul investors previously invested alongside Ravinia Capital Group in the acquisition of 544 Lakeview Parkway in Vernon Hills, IL in Q4 2018. Though it is early in the deal cycle, Ravinia has begun the capital improvement program and increased occupancy at the Property by 5%.

The Property is a three-story, Class A office building totaling 139,324 rentable square feet with 696 parking spaces (4.8 spaces per 1,000 square feet) and situated on 12.43 acres. The Property is located within the Continental Executive office park, approximately one eighth of a mile south of the intersection of Milwaukee Avenue and Route 60 (Townline Road), approximately 35 miles north of the Chicago CBD and adjacent to approximately 4 million square feet of retail.
As of 9/17/18, 544 Lakeview’s tenancy is comprised of five tenants (73% total in addition to 5% to kitchen and gym amenities), two of which (44% of the building) are either publicly traded companies or are subsidiaries of publicly traded companies. They each maintain Moody’s investment grade ratings ranging from Baa1 – Baa3. The weighted average lease term of the rent roll is 6.8 years.
The Property was built in 1994 for Allstate, which occupied the building until 2011, and vacated as part of a campus consolidation. Given the building’s original use, 544 Lakeview Parkway has inherited amenities and a higher parking ratio not typically available in similarly sized local office buildings.
Major Tenants:
Mercer - Founded in 1945, Mercer is a subsidiary of the Marsh McLennan Companies, and provides talent, health, retirement, and investment consulting. Credit Rating - Moody's: Baa1
OptionCare - Option Care, partially-owned by Walgreens Boots Alliance, is a national leader in providing home infusion services.
Wonderlic - Wonderlic, founded over 85 years ago, provides assessments and surveys for over 75,000 companies (including the NFL), helping hire and select new employees and students. 544 Lakeview is their company headquarters.
Brunswick - Brunswick, established in 1845, is a major producer in the marine, fitness, and billiards industries and employs over 14,000 people. 544 Lakeview is the headquarters of the boating division. Credit Rating - Baa3
Credit ratings as of 6/30/2018
Tenant | Square Footage | % of Total | Rent per SqFt | Lease Expiration | Lease Type |
---|---|---|---|---|---|
Mercer | 49,162 | 35% | $13.85 | 2/28/2023 | Net |
Option Care | 22,470 | 16% | $14.50 | 12/31/2026 | Net |
Wonderlic | 15,060 | 10% | $13.00 | 12/31/2027 | Net |
Brunswick | 12,100 | 9% | $13.00 | 8/30/2028 | Net |
Total | 97,889 | 70% | $13.77 | -- | -- |
475 Half Day Rd | 150 N. Field Dr | 100 N. Field Dr | 400 N. Lakeview Pky | 175 E. Hawthorn Pky | Total / Averages | Subject | |
---|---|---|---|---|---|---|---|
Submarket | Central North | Central North | Central North | Central North | Central North | -- | Central North |
Costar Rating | 4-star | 4-star | 4-star | 3-star | 4-star | -- | 4-star |
Date Signed | May-17 | Aug-16 | Jun-15 | Aug-15 | Apr-18 | -- | -- |
Square Footage | 6,400 | 13,443 | 12,323 | 5,763 | 1,843 | 7,954 | 139,324 |
Year Built | 1999 | 1998 | 1986 | 2000 | 1986 | 1994 | 1993 |
Tenant | Rivkin & Rivkin | PharmMEDium Healthcare | Not disclosed | Mercury Insurance | Nexus Pharma | -- | -- |
Average Rental Rate | $27.00 | $28.82 | $27.85 | $24.50 | $26.50 | $27.49 | $27.05 |
Parking Ratio per 1,000 SqFt | 2.81 | 3.70 | 3.10 | 4.48 | 3.60 | 3.48 | 4.8 |
Distance from Subject (mi.) | 2.7 | 2.5 | 2.5 | 0.2 | 0.8 | 1.7 | -- |
100 N. Field | 3 Overlook Point | 25-300 Tri State | Total / Averages | Subject | |
---|---|---|---|---|---|
Date Signed | Nov-16 | Aug-16 | Sep-17 | -- | Jun-18 |
Submarket | Central North | Central North | Central North | -- | Central North |
Costar Rating | 4-star | 4-star | 4-star | -- | -- |
Square Footage | 105,000 | 283,257 | 559,204 | 271,696 | 139,324 |
Year Built | 1986 | 1991 | 1984 | 1988 | 1993 |
Tenant | N/A | Essendant | N/A | -- | -- |
Purchase Price | $19,350,000 | $60,150,000 | $73,250,000 | $41,737,500 | $14,200,000 |
Price per SqFt | $184.29 | $212.35 | $130.99 | $153.62 | $101.92 |
Cap Rate | 8.50% | 6.80% | 7.51% | 7.60% | -- |
Distance from Subject (mi.) | 2.6 | 3.3 | 5.6 | 3.8 | -- |


$ Amount | Per SqFt | % | |
---|---|---|---|
Senior Loan | $13,388,886 | $96 | 80% |
RM Equity (59%) | $2,000,000 | $14 | 12% |
Sponsor Equity (41%) | $1,394,257 | $10 | 8% |
Total | $16,783,143 | $121 | 100% |
$ Amount | Per SqFt | % | |
---|---|---|---|
Purchase Price | $14,200,000 | $102 | 85% |
Acquisition Fee (1.0%) | $142,000 | $1 | 1% |
BD Placement Fee (4.0%) | $80,000 | $1 | 0% |
CapEx, TI, LC | $1,501,064 | $11 | 9% |
Working Capital | $171,042 | $1 | 1% |
Debt Placement Fee | $134,344 | $1 | 1% |
Financing Fee | $213,752 | $2 | 1% |
Closing Costs & Fees | $340,941 | $3 | 2% |
Total | $16,783,143 | $121 | 100% |
The Real Estate Company closed on a senior loan upon acquisition of the Property. The terms of the debt financing are as follows:
- Lender: Hines Realty Income Fund LLC
- Estimated Initial Proceeds: $11,887,822
- Maximum Additional Funding: $1,501,064
- Estimated Interest Rate: 1 Month LIBOR + 4.00% with an index floor of 1.90%
- Interest Only Period: 36 Months and two (2) one-year extension options
- Amortization Period: N/A
- Loan Term: 36 Months
- Extension Options: Two (2) one-year extension options
- Prepayment Penalty: 12-months minimum interest and 0.50% exit fee
- Interest Rate Cap: Index cap of 3.00% for the initial 18 months of the loan
- Recourse: No
The Target intends to make distributions of all available cash and capital proceeds to investors (The Company, Other LP investors and Real Estate Company, collectively, the "Members") as follows:
- Pro rata share of cash flow to an 9% preferred return hurdle;
- Return of capital;
- Excess balances will be split pro rata 80% to Members (pro rata in accordance with and in proportion to their respective Company Percentages) and 20% to Real Estate Company to a 12% IRR;
- Excess balances will be split pro rata 70% to Members (pro rata in accordance with and in proportion to their respective Company Percentages) and 30% to Real Estate Company to an 18% IRR;
- Excess balances will be split pro rata 60% to Members (pro rata in accordance with and in proportion to their respective Company Percentages) and 40% to Real Estate Company.
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 operating agreement, in addition to any member loans or returns due on member loans).
Year 1 | Year 2 | Year 3 | |
---|---|---|---|
Effective Gross Revenue | $2,548,806 | $2,796,346 | $2,901,443 |
Total Operating Expenses | $1,275,871 | $1,392,535 | $1,428,230 |
Net Operating Income | $1,272,935 | $1,403,811 | $1,473,213 |
Year 0 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|
Distributions to Company | ($2,020,000) | $8,278 | $185,951 | $231,471 | $2,731,361 |
Net Earnings to Investor - Hypothetical $50,000 Investment | ($50,000) | $205 | $4,603 | $5,729 | $67,608 |
Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Acquisition Fee | $142,000 | Real Estate Company | Capitalized Equity Contribution | 1.0% of the Property purchase price |
Broker-Dealer Fee | $80,000 | North Capital 1 | Capitalized Equity Contribution | 4.0% of equity raised by RealtyMogul ($50,000 minimum) |
Marketing Fee | $20,000 | RM Manager, LLC | Investor Overraise | -- |
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Asset Management Fee | $30,000 | Real Estate Company | Distributable Cash | -- |
Management and Administrative Fee | 1.0% of amount invested in Realty Mogul 111, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of The Company 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.
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.