The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
St. Clair Holdings - Student Quarters
St. Clair Holdings is a real estate investment company focused on a combination of opportunistic acquisitions and value-added programs that lead to high yield investment opportunities throughout the Southeast and Midwest United States. The firm focuses on three strategic investment areas: student housing, residential development, and apartments. St. Clair has approximately $400 million in assets between its three investment strategies.
Student Quarters is St. Clair Holdings' student housing investment arm. They seek to acquire well-located, often underperforming, boutique properties within walking distance to universities in the Southeast, Mid-Atlantic, and Midwest and reposition them to create new campus portfolios. Through efficient management and a student-centric focus, Student Quarters offers choice-located housing options that are affordable and practical for students and profitable for investors. The current partnership between St. Clair and Student Quarters was commenced in 2012. See examples of other Student Quarters projects here.
Student Quarters currently owns approximately 3,800 beds over 16 student housing complexes. Current assets under management are greater than $130 million of solely student housing and the Sponsor's focus stretches geographically from Michigan to Texas.
http://www.stclairholdings.com/divisions/student-quarters/
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W. Colin Cavill - Managing Principal - St. Clair Holdings, LLC -
Andy Feinour - President - Student Quarters, LLC -
Andrew T. Layton - Chief Acquisition Officer - Student Quarters
W. Colin Cavill has over 25 years of success on two continents in leadership, operations and capital markets and with deep experience as an entrepreneur, real estate investor and developer, operator, and business owner. An Australian native, Colin began his commercial real estate career in Brisbane. Colin is very well known in the real estate industry for setting standards, an eye for detail, creativity, and driving results. For over 15 years, Colin served as a Partner and broker for industrial assets with Colliers International where he specialized in complex investment sales, equity placement, and joint ventures. During his tenure with Colliers, Colin completed over 370 transactions in 32 states and represented over $1.3 billion in volume.
Colin takes an active, hands-on approach to his work, from rezoning negotiations, site development, construction, leasing, operational support, and asset management. He leads his current company, St. Clair Holdings, LLC with impeccable integrity and believes that the key to success is to build equity, trust, and life-long partnerships. His repeat institutional partners include JP Morgan, Lubert-Adler, and Protective Life Insurance.
Colin holds a Bachelor of Business in Real Estate Valuation from the University of Queensland and the Australian designation of chartered surveyor, Australian Valuers and Land Economists, AVLE (Econ). Colin has been a lifelong supporter of Children’s causes and serves in leadership roles for both The Empty Stocking Fund and Downtown Children Development Center. Colin also serves on the Trust for Public Land Advisory Board and the national Sustainable Development Council for ULI.
With more than 15 years of experience, Andy Feinour is an authority in student housing. As President of Student Quarters, a division of St Clair Holdings, Andy is responsible for generating high yield returns for investors by transforming underperforming, non-institutional units in to prime, yet affordable, student housing. He leverages deep industry knowledge and consulting experience to assess, acquire, and improve properties, while keeping student needs in mind.
Prior to Student Quarters, Andy served as Senior Vice President at Carter & Associates, a leader in the development of student housing. In this role, he led the firm’s off campus student housing development efforts and has been instrumental in projects totaling over 2,300 beds throughout his career.
Andy holds an MBA from the Darden Graduate School of Business and a Bachelor of Science in Commerce from the McIntire School of Commerce, both at the University of Virginia.
As Chief Acquisition Officer of Student Quarters, a division of St Clair Holdings, Andrew Layton is responsible for leading the origination, underwriting, structuring and due diligence efforts involving both the acquisition and development of student housing assets for Student Quarters’ investors.
Andrew was most recently Director of Acquisitions for Kayne Anderson real estate private equity activities where he originated and structured transactions in excess of $1 billion involving both the acquisition and development of off-campus student housing assets for Kayne Anderson’s $136 million Fund I and $580 million Fund II. During his tenure, he spearheaded “pipeline” relationships with nationally recognized and industry leading developers, owner/operators, brokers, and property managers.
Prior to joining Kayne Anderson in 2008, Andrew was a vice president in the Acquisition Finance Group for ING Capital, LLC, where he originated and structured senior secured credit facilities. At ING, Andrew had also previously been solely responsible for the restructuring of a telecommunications debt portfolio and several non-performing real estate loans, and had managed capital market transactions for privately-held and publicly-traded real estate companies.
Andrew began his career in real estate investment banking and structured finance at BT Alex. Brown. Andrew earned a B.A. in Public Policy Studies and Political Science from Duke University in 1990, a J.D. from Georgetown University Law Center in 1993, and a M.B.A. from the University of Maryland in 1996.
At A Glance
| Investment Strategy: | Buy and Hold |
| Projected Hold Period: | 5 years |
| Total Purchase Price1: | $34,375,000 |
| Total Project Budget1: | $37,476,155 |
| Property Type: | Student Housing |
| Total Beds2: | 1,108 |
| Distributions to Realty Mogul 52, LLC3: | Pari passu to an 12.0% IRR, then 83.3/16.7 split to a 17.0% IRR, then a 66.7/33.3 split to a 21.0% IRR, then a 58.3/41.7 split thereafter Realty Mogul 52, LLC investors then receive 6.0% of Sponsor's promote |
| Projected First Distribution: | June 2016 |
| Distribution Schedule: | Quarterly |
| Investor Funding Deadline: | December 18, 2015 |
| Estimated Closing Date: | December 31, 2015 |
1) If the Portfolio does not acquire the Fulton Place property than the anticipated total purchase price and total project budget will be approximately $23.4 million and $27.7 million, respectively.
2) These figures assume Fulton Place is acquired as part of the Portfolio. If not the Portfolio will consist of 864 beds, 228 units and 17 buildings.
3) See Financials tab for greater detail on Realty Mogul 52, LLC distributions.
Investment Details
Student Quarters (the "Sponsor") plans to acquire and increase the net operating income of The Park, The Heights at 1301 and Fulton Place (together the "Portfolio"). The Park was acquired October 15, 2015, the Heights at 1301 was acquired on October 29, 2015, and Fulton Place is anticipated to close on or before February 29, 2016. It is anticipated that investors in Realty Mogul 52, LLC will invest in the Portfolio by year-end 2015.
Greensboro, NC - Fulton Place and The Park
The Sponsor’s business plan for Fulton Place and The Park is focused on driving revenues primarily through an improved property management strategy and a selected capital improvement expenditure plan ($1,025 per bed at Fulton Place and $1,190 per bed at The Park).
The Sponsor believes that the current property manager, who is smaller and not student housing focused, is missing extensive additional revenue opportunities (such as renting on a "by bed" basis as opposed to a "by apartment" basis) and doesn't have the necessary scale to minimize expenses. The Sponsor intends to increase net operating income by driving revenue through the new, by-bed leasing approach as well as other revenue generators, such as a furniture rental program, geared specifically towards college students, while minimizing operational costs and implementing the capital program. The Sponsor also anticipates being able to charge tenants for certain utility expenses which are currently inclusive in tenant rental rates later in the hold period, after the capital expenditure plan has been implemented at the properties.
To help implement the business plan the Sponsors have chosen Peak Campus, the property management service whom has systematically served as the sole property manager provider for the Sponsor. Peak, who is already the property manager at the Johnson City property, is the second largest student housing property manager in the US, with $2.6 billion in student housing assets under management. Peak is headquartered in Atlanta, GA, as is the Sponsor, allowing them to interact frequently and giving the Sponsor persistent clarity as to the execution of the business plans for the assets in its portfolio.
Johnson City, TN - The Heights at 1301
The business plan for The Heights at 1301, which is the closest non-campus student housing to campus at East Tennessee State University, is focused on making select capital improvements to drive rents. The Sponsor views the project as currently efficiently managed for its physical state, as the Sponsor’s preferred property manager Peak Campus already manages the property.
The asset is one of three student housing assets in the market. The other two assets currently rent at $100 - $135 per bed above the Property, per the Sponsor. The Sponsor plans to implement a modest capital expenditure plan ($850 per bed) and push rents an average of 5.5% per year for the first three years of the hold period, before stabilizing in year three at $462 per bed, growing rents at 3.0% into perpetuity thereafter. Average rents per bed were $392 for the 2013-2014 academic year and $412 for the 2015-2016 academic year.
The Sponsor plans to hold the Portfolio for five (5) years before exiting the investment, but the hold period could be longer or shorter. Realty Mogul investors have the opportunity to participate as equity stakeholders and earn a share of the cash-flow and appreciation. Investors may expect to receive quarterly updates and distributions, with the first distribution expected in June 2016 and on a quarterly basis thereafter.
Investment Highlights
- The Largest Limited Partner in the Investment is a Real Estate Investment Firm that has over $7.5 Billion in Real Estate Assets Under Management
- Current Portfolio Occupancy is above 95%, which is Consistent with Historical Occupancy
- Institutional Sponsor with $130 million in Student Housing Assets Under Management
- Institutional, Student Housing-Focused Property Manager
- Realty Mogul 52, LLC Investors will receive 6.0% of the Sponsor's Promote
- All Properties in the Portfolio are Within One Mile of Campus
- If Fulton Place does not close on or before February 29, 2016, then Realty Mogul 52, LLC investors will receive a return of capital (estimated at approximately $240,000) and pay a reduced broker-dealer fee
Risks and Risk Mitigation*
- Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected”, “forecasted”, “estimated”, “prospective”, “believes,” “expects,” ”plans” “future” “intends,”, “should,” “can”, “could”, “might”, “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements.
- Illiquid Investment - Transfer Restrictions & No Public Market: The transferability of membership interests in Realty Mogul 52, LLC are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.
- Management Risk: Investors will be relying solely on the Sponsor for the execution of its business plan. The Sponsor may in turn rely on other key personnel with relevant experience and knowledge, including contractors and consultants. Members of the investment (including Realty Mogul 52, LLC) will agree to indemnify the manager in certain circumstances, which may result in a financial burden if any litigation results from the execution of the business plan. Realty Mogul 52, LLC is pursuing a venture capital strategy through its investment in the Portfolio, and the manager of Realty Mogul 52, LLC is expected to be treated as an investment adviser exempt from federal or state registration under this strategy.
- Manager of Realty Mogul 52, LLC Will Participate in Sponsors' Promoted Interest:The manager of Realty Mogul 52, LLC will be entitled to a participation in the value of any excess distributable cash flow and any appreciation of the property realized upon its sale. This could lead to a potential conflict of interest between the manager and Realty Mogul 52, LLC. Investors must recognize and agree to waive and bear the risk of this conflict of interest.
- Uncertain Distributions: The Sponsor cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including Realty Mogul 52, LLC) from either net cash from operations or proceeds from the sale or refinancing of the asset. Sponsor, in its discretion, may retain any portion of such funds for tenant improvements, tenant refurbishments and other lease-up costs or for working capital reserves. Sponsor has chosen to make distributions quarterly, in its sole and absolute discretion.
- Risk of Interest Charges for Sponsor Capital Calls: The amount of capital that may be required by the Portfolio from Realty Mogul 52, LLC is unknown, and although the investment does not require that its members contribute additional capital to it, it may from time to time request additional funds in the form of loans or additional capital. Realty Mogul 52, LLC does not intend to participate in a capital call if one is requested by the Sponsor of the investment, and in such event the Sponsor of the investment may accept additional contributions from other members of the investment. Amounts that the Sponsor or other members of the investment advance on behalf of Realty Mogul 52, LLC will be deemed to be a manager loan at an interest rate of 18% or a 1.5x equity contribution. In either case, Realty Mogul 52, LLC's interest in the investment would suffer a dilutive effect. To create a buffer against a capital call Realty Mogul 52, LLC will overraise equity by $10,000 and set aside such money in a capital account for protection against potential future capital calls. Should such money never be needed, it will be returned to Realty Mogul 52, LLC investors upon the disposition of the Portfolio.
- Risk of Discounted Equity Buyout: Realty Mogul 52, LLC investors equity is being used to satisfy a portion of the Sponsor's equity requirement for the acquisition of the Portfolio, per the Sponsor's operating agreement with Harrison Street. In the operating agreement between the Sponsor and Harrison Street, the Sponsor is subject to Bad Boy provisions (such as, waste, fraud, misappropriation, bankruptcy, violation of Single Purpose Entity covenants, or incurring subordinate debt without lender's consent). As such, should the Sponsor be found guilty of Bad Boy acts by Harrison Street, Realty Mogul 52, LLC investors could potentially be bought out of the investment at 75% of Fair Market Value, per the operating agreement between the Sponsor and Harrison Street. Realty Mogul 52, LLC investors' 6.0% participation the the Sponsor's promote is intended to compensate them for this risk.
- Student Housing is Subject to Significant Capital Requirements: Due to the nature of student tenants, there is historically a need for significantly greater capital reserves in student housing than standard multifamily projects. The Sponsor has budgeted $150 per bed per year in reserves to account for this.
- Risk Associated with College Populations & Dormitory Construction: As the tenant base of the Portfolio is primarily students, should either school have a decline in population or closure due to a decrease in funding or any other factor, it could adversely effect the ability to lease the Portfolio. Alternatively, should either of the colleges elect to construct significant new on-campus student housing options it could also adversely effect the ability to lease the Portfolio.
- Uncertain Refinancing Debt Terms: The Portfolio is being acquired with the use of a subscription line of credit to satisfy the debt requirements for both The Heights at 1301 and The Park. Fulton Place is being acquired with assumed debt which will mature during the expected hold period. While the Sponsor has term sheets for loans on both The Park and The Heights at 1301 which are favorable to underwritten projections, future market volatility or interest rate increases could lead to refinance loan terms for each of the three properties in the Portfolio being inferior to underwritten projections.
- Uncertain Exit Timing: Although it is anticipated that the Property will be sold at the end of the expected five (5) year hold period, Realty Mogul 52, LLC will not have full control over the timing of the sale of the Property, and therefore we cannot offer assurances of when the exit will occur.
- Uncertainty of Fulton Place Acquisition: As of date of this offering, the assumption of the Freddie Mac loan on the Fulton Place property by the Sponsor and the institutional LP partner has yet to be approved by Freddie Mac. Should this assumption not be approved in time to acquire Fulton Place on or before February 29, 2016 then the property will not be acquired as part of the Portfolio.
- RM 52, LLC Investors Could Experience Cash Drag on a Portion of their Investment in the Portfolio: Should the Fulton Place property not be acquired by the investment date of RM 52, LLC in the Portfolio, RM 52, LLC investors will experience cash drag on the investment dollars which would have otherwise been invested in the Fulton Place property. These dollars will not begin to count towards RM 52, LLC investors' IRR waterfall calculation until such time as they are invested in the Fulton Place property. Should the Fulton Place property not be acquired by the Portfolio on or before February 29, 2016, then RM 52, LLC investors will have their principal investment which would have been invested in the Fulton Place property returned as a cash distribution.
- General Economic and Market Risks: While the Sponsor has conducted significant research to justify the intended rental rates and sales price relative to comparable properties in the market, its best efforts to forecast economic conditions cannot state for certain whether or not investor sentiment and the capital markets will be favorable to the property at the intended disposition date. The real estate market is affected by many factors, such as general economic conditions, the availability of financing, interest rates and other factors, including supply and demand for real estate investments, all of which are beyond the control of the Sponsor.
*The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Investor Document Package for a discussion of additional risks.
The above presentation is based upon information supplied by the Sponsor. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 52, LLC, 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.
The investment will be structured as the purchase of limited liability company interests in Realty Mogul 52, LLC. Realty Mogul 52, LLC, (the “Company”) will invest in SQ Investor, LLC, a Delaware limited liability company (“Sponsor”) that expects to indirectly, through other LLCs, acquire and manage a portfolio of three (3) student housing complexes, (the "Portfolio"), two of the complexes (Fulton Place and The Park) are located near the University of North Carolina in Greensboro, NC and the third complex is located in Johnson City, TN (The Heights at 1301), near East Tennessee State University. Realty Mogul 52, LLC is a special purpose entity pursuing a venture capital strategy, and will be advised by RM Manager, LLC, an exempt reporting adviser and a wholly-owned subsidiary of Realty Mogul, Co.
| Addresses: | 742 Fulton Street, Greensboro, NC (Fulton Place) 2119 Spring Garden Street, Greensboro, NC (The Park) 1301 Seminole Drive, Johnson City, TN (The Heights at 1301) |
| Years Built: | 2008 (Fulton Place) 1996 (The Park) 2000 (The Heights at 1301) |
| Current Occupancy: | 95% |
| Total Beds*: | 1,108 (302 units) |
| Total Buildings*: | 24 |
| Distance From Campus: | Fulton Place - 0.5 miles The Park - 1.0 miles The Heights at 1301 - 0.2 miles |
Note: These figures assume Fulton Place is acquired as part of the Portfolio. If the Portfolio does not acquire Fulton Place, it will then consist of 864 beds, 228 units and 17 buildings.
The Portfolio is located in the college towns of Greensboro, NC, home of The University of North Carolina at Greensboro, and Johnson City, TN, the home of East Tennessee State University.
Demographic information below provided bythe 2014 US Census and www.onboardnavigator.com, and relates to Greensboro, NC.
Greensboro, NC - Fulton Place and The Park
Greensboro is the third largest city in North Carolina, with a greater metropolitan population of approximately 280,000 per the 2014 US Census. The University of North Carolina Greensboro, the college which the Properties serves as a student housing option for, serves approximately 16,000 students at its main campus in Greensboro. The school puts both Fulton Place and The Park on its list of recommended off-campus student housing, with Fulton Place being the college's first suggested off-campus housing destination. On campus student housing has a variety of options, ranging from $382 - $644 per month, if treating a semester’s tuition as six months of rent, per Greensboro's website. Average monthly rent in year one of the hold period is $499 at Fulton Place (utilities included) and $418 at The Park (utilities included).
Johnson City, TN - The Heights at 1301
Johnson City, TN has a population of roughly 65,000 per the US Census, making it the ninth largest city in the state of Tennessee, and East Tennessee State University comprises a healthy portion of the town’s population with over 14,500 students attending the college. The college is located in the Southern Central part of the town, and its facilities comprise a large portion of the center of the town’s business loop. Private bedrooms on campus (The Heights is entirely four bedroom, four bathroom units) run from $489 - $857 per month, whereas the average per unit rent at The Heights in the first year of the hold period is $412 per month.
The above presentation is based upon information supplied by the Sponsor. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 52, LLC, 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.