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:
Completed Debt
Estimated Hold Period 12 Months
FUNDED 100%
...
View Our Due Diligence Process
Investment Returns: Discerning investors don't rely on a single projected return metric as a basis to invest. Rather, when assessing a potential investment, we encourage you to evaluate all information provided by a sponsor including the business plan, assumptions, and risk factors which can be found in the relevant offering documents. This approach is consistent with our requirements as a broker-dealer, which prohibit us from communicating projected returns.
webinar-background
PROJECT WEBINAR
COMING SOON!
PROJECT WEBINAR COMING SOON!
The Adams Beverages Facility
Offered By
TenCal, LLC
Investment Type Debt
Overview
Management
Cumulative Distributions

TenCal, LLC

The Sponsor and asset manager is TenCal, LLC (“Sponsor”), an Alabama LLC formed in 2003 for the purpose of acquiring and managing income producing commercial properties. The Sponsors current portfolio includes industrial and office space in AL, TX, IN, NC and SC.

TenCal retains third party managers to provide day to day professional management for each of its properties. The principals of TENCAL provide continuous and on going asset management review for each property in the portfolio.

TenCal’s principals have over 75 years of experience acquiring, developing and operating commercial and industrial real estate. TenCal has historically raised capital from private investors for their acquisitions and have successfully raised $10,000,000 in equity capital acquiring ten (10) buildings, including the subject property. They currently operate our of Southern California and Tennessee.

http://www.tencal.com/Home/Commercial_Industrial_Investment_Properties.asp
  • Theodore J. Schwartz
Theodore J. Schwartz

Mr. Schwartz, a university graduate and certified public accountant, began his career in real estate and commercial financing with a regional office of a national commercial lending company. As an auditor and real estate lending officer he acquired significant experience in operations and financing.

Choosing to focus in the area of commercial and industrial real estate, Mr. Schwartz was appointed Controller of a successful Midwest industrial real estate developer. In his capacity as Controller, he developed the skills necessary to underwrite and structure construction and permanent financing, prepare detailed acquisition and development budgets and provide financial and tax analysis.

Mr. Schwartz founded Commercial Mortgage Underwriters, Inc. “CMU” in 1983, a real estate investment company and commercial real estate finance intermediary. Since its inception, CMU has arranged in excess of $2.5 Billion of transactions for its clients. Properties acquired and financed by CMU include office buildings, warehouses, shopping centers, apartments, hotels and healthcare facilities.

In 2003, Mr. Schwartz co-founded TenCal, LLC with Richard Botts. TENCAL has acquired and developed properties aggregating 1,350,000 square feet valued in excess of $40,000,000. Mr. Schwartz serves as asset manager for TENCAL and oversees the company’s property acquisition, development and financing activities.

Summary

RealtyMogul.com is offering investors the opportunity to invest in a $2.0MM (61% loan-to-value) bridge loan for a single-tenant, non owner-occupied industrial property in Opelika, AL. This is a pre-funded, full recourse loan to the Borrower and proceeds have been used to refinance a $1.84MM life company loan that recently matured. The remaining funds were applied to closing costs. The new loan was needed to bridge the gap between the maturity of the prior loan and the execution of a new lease by the tenant, Adams Beverages. The Adams Beverages lease expires in June 2017.

Adams Beverages has been in business since 1937 and has utilized the subject property as their headquarters and distribution facility since 1993. Because the property is built out specifically for the use of the tenant, including a cold storage facility, the Borrower and the Appraiser share a strong belief that the tenant will re-sign new lease terms prior to the current lease's expiration.

The Borrower plans to utilize the bridge loan for the next 12-24 months (two 6-month extensions are available) until Adams Beverage executes a long term lease. We expect our bridge loan will be refinanced with a fixed-rate permanent loan once the lease is extended. Additionally, to further mitigate risk, the borrower will also be depositing any excess cash flow into a lender controlled reserve account; to be utilized in the event the tenant decides not to renew the lease terms.

Deal Highlights:

  • Tenant is the sole Anheuser-Busch distributor to the 26,200-student Auburn University. 
  • Tenant has occupied the building for 22 years and the Borrower intends to negotiate a long-term lease within the next 12-24 months.
  • Tenant has made significant improvements to the building​ (including a 25,000 square foot refrigerated warehouse)​.
  • Local appraiser estimates the renewal probability at 90%.
  • Loan is full recourse to the borrower, who has a net worth of approximately $2.75 million.
  • Loan represents 61% of appraised value.

Loan Structure:

  • $2,000,000 total loan amount
  • 12% fixed rate
  • 12 month original term
  • Two 6-month extensions available
  • 6 month yield maintenance period
  • Full recourse to Borrower
  • All excess cash flow to be deposited into lender controlled reserve account*
  • First Deed of Trust

*The Appraiser has indicated that the hypothetical "go-dark" value is $2,010,000. In the event of a go-dark scenario, the property is protected with excess cash flow to accommodate necessary interest payments and/or Tenant Improvement Allowance and Leasing Commissions associated with the extension of the current lease or a new lease.

Property Information

The building is a 47,101 square foot industrial space built in 1989, located in an industrial park in Opelika, 10 miles east of Auburn, AL. The building includes 25,000 square feet of cooler space and 11,775 square feet of office space. Ceiling height ranges anywhere from 16 feet to 24 feet throughout the property. Additionally, the property includes 33 open parking spaces, 2 grade level overhead doors and 3 dock high overhead doors.

The property has been 100% leased for over twenty years to Adams Beverages, the local Anheuser-Busch distributor in business since 1937. Adams Beverage recently expanded with the purchase of the distribution rights to the Charlotte, NC market. Adams Beverage has annual revenues and Net Income of $150MM and $3.5MM, respectively.

The building is well maintained and would be difficult for the tenant to move and find comparable facilities. The appraiser estimates that the renewal probability incorporated within the market leasing assumptions has been estimated at 90%. This rate is considered reasonable based on the rent comparable data, a survey of market participants and the subject. RealtyMogul.com also conducted additional research in the market and did not locate any existing available properties with cold storage. Similar grade office buildings did not have the associated warehouse component and existing available warehouses lacked the high level of office finish of the current facility. Based on the available inventory, the ability to replace the existing facility with a comparable facility would seem to indicate that the tenant would need to construct a new facility or add cold storage and upgraded office to an existing industrial property. Both options would be a premium of the cost of a lease renewal.

Location Information

The property serves as the main headquarters and distribution center for Adams Beverages, one of the top Anheuser-Busch distribution companies in Alabama. Of the 16 other Anheuser-Busch distributors in the state, Adams Beverages is the sole distributor to the Auburn-Opelika market. The next closest distributor is located 50 miles away in Montgomery and has zero distribution rights in the county (Lee County). The pillar of the local Auburn-Opelika community is Auburn University, of which Adams Beverages has sole Budweiser distribution rights.

Auburn University is the third largest university in the state of Alabama and is one of the top members of the highly competitive Southeastern Conference (SEC). The school currently boasts a population of over 20,000 undergraduate students, 5,000 post-graduate students, and 1,200 faculty members.  The University's announced tuition increase for the fall semester is smaller than that proposed by the University of Alabama, helping the university compete for students across the state. Increasing enrollment will support revenue targets, but capital investment will hinge on a large fund-raising campaign to improve facilities and endow around 100 new faculty positions. As this trend continues, increasingly healthy finances will support new high-paying jobs and thus increased demand for goods and services in the broader Auburn-Opelika economy.

Along with the inherent economic influences of Auburn University, the local economy is further supported by a strong manufacturing and industrial market. The Auburn-Opelika area has already emerged as a hub for the development and production of new technology such as aviation components. High profit margins for these products have led manufacturing payrolls to grow by more than 20% since the trough of the Great Recession, compared to an 8% increase nationally.

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.

INVEST TODAY

...

Questions?

(877) 781-7062

Contact Investor Relations
Staff Menu (IO ID#: 89071):
EDIT IO DOCUMENTS
Staff Menu (IO ID#: 89071):
EDIT IO DOCUMENTS
JOIN REALTYMOGUL
Create an account or sign in.
Are you an Accredited Investor?
Must be 8 characters or more with an uppercase and lowercase character, a number, and a symbol.
By clicking "JOIN REALTYMOGUL" you are agreeing to our Terms of Service and Privacy Policy, and that you've had an opportunity to review RM Securities, LLC's Form Customer Relationship Summary.
SIGN IN
Don’t have an account yet? Join RealtyMogul.
Forgot Password?
Questions? Our Investor Relations team is available to help 8 AM - 6 PM PST Monday to Friday. Contact us at (877) 977-2776.
Forgot Password
Enter your email address to receive a code to reset your password.
Enter the code sent to your email address below and your new password.

Resend Code

WELCOME
Welcome,

Welcome to RealtyMogul! We need to ask a few additional questions to get to know you.

Your Net Worth
Are you interested in 1031 exchanges?
Thank you!

We’ve received your information and updated your Investor Profile.

Welcome to RealtyMogul

As part of RealtyMogul's commitment to transparency, we want to inform you that you have been directed to our website from an unaffiliated third-party marketing company who is compensated up to $250 for each investor who registers on our site. RealtyMogul and its affiliates have no relationship with the marketing company other than this compensation arrangement. RealtyMogul and its affiliates are not responsible for the preparation or accuracy of, and do not explicitly or implicitly adopt or endorse, any content provided by the unaffiliated marketing company.