RealtyMogul Apartment Growth REIT
The RealtyMogul Apartment Growth REIT is currently not accepting new investments. Going forward, we plan to offer investments in the Apartment Growth REIT through an SEC-registered broker-dealer operated by our affiliate company, RM Securities, LLC. We are currently awaiting certain regulatory approvals. We anticipate that we will be able to again offer new investments in the Apartment Growth REIT in May 2024. We apologize for this temporary pause. If you have any questions, please contact us at (877) 781-7062
$263MM
Total Asset Value
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Distributed to Investors
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Inception to Date Return as of 3/31/2024
See historical returns below
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Consecutive Distribution Periods
Overview
Since inception, the RealtyMogul Apartment Growth REIT has made quarterly distributions equating to ${mogulReit2LastDistributionDeclared}% annualized based on purchase price.

The Apartment Growth REIT is a non-traded REIT that invests in apartment buildings located in resilient markets that can offer current income and solid growth potential. The Apartment Growth REIT’s primary objective is to realize capital appreciation in the value of its investments over the long term through the renovation or repositioning of multifamily properties as well as to pay attractive and stable cash distributions to stockholders.

RealtyMogul's Apartment Growth REIT has a minimum investment of just $5,000.
Capital Appreciation
Target value creation through property exterior and unit improvements in order to increase rental rates and ultimate resale value.
Targeted Markets
Focus on regions with strong economic fundamentals and apartment communities that have demonstrated consistently high occupancy and income levels across market cycles.
Potential Income
Cash flow derived from tenants paying rent and additional potential income stemming from enhancements to the property, such as the addition of a laundry facility, EV charging ports, package lockers, and covered parking.
Trusted
Annual audits conducted by Cohn Reznick.
What would happen if you invested $10K?
If you invested $10,000 in the RealtyMogul Apartment Growth REIT at inception and reinvested all of your quarterly distributions, your investment would now be worth $14,003:
invest chart
* Based on a $10,000 initial investment in 20171
The above chart is hypothetical and is not based on any specific client situation or outcome. This scenario should be considered for informational purposes only and should not be construed as actual performance.
Resources

RM ADVISER

The RealtyMogul Apartment Growth REIT is managed by RM Adviser, LLC, a SEC registered investment adviser and wholly-owned subsidiary of Realty Mogul, Co. RM Adviser, which manages the Apartment Growth REIT’s day-to-day operations, and its affiliates have access to an experienced team of real estate finance professionals employed by Realty Mogul, Co., including Jilliene Helman, its Chief Executive Officer. The team has adopted underwriting approaches used by real estate finance industry leaders in its analysis of real estate capital structures and financial strategies.

INDEPENDENT BOARD OF DIRECTORS

Although the Manager, RM Adviser, LLC, manages the day-to-day operations, the Apartment Growth REIT operates under the direction of its board of directors, a majority of whom are independent directors.

Other than the limited stockholder voting rights described in our offering circular, our charter vets most other decisions relating to our assets and to the business of the Company, including certain decisions relating to acquisitions and dispositions, the engagement of asset managers, the issuance of securities in the Company including additional shares of our common stock, mergers, roll-up transactions, listing on a national securities exchange, and other decisions relating to our business, to our board of directors.
What is a REIT?
A Real Estate Investment Trust (REIT) is a portfolio of real estate properties into which one can make a single investment, which are often diversified by property type, geography, or multiple categories to potentially achieve strategic objectives.

REITs are legally required to distribute 90% of all taxable income to investors annually.

Generally, REITs have historically outperformed the broad stock market more often than not when returns are measured in years.** REITs have also historically been positively correlated with inflation, which may make them a possible hedge for inflation.***


**. https://www.reit.com/news/blog/market-commentary/reit-average--historical-returns-vs-us-stocks
***. https://www.reit.com/news/blog/market-commentary/how-reits-provide-protection-against-inflation
What is the RealtyMogul Apartment Growth REIT?
The RealtyMogul Apartment Growth REIT is a Maryland corporation formed to own and manage a diversified portfolio of preferred equity and joint venture equity investments in multifamily properties located in target markets throughout the United States. The REIT’s objective is to make investments into apartment communities that follow one of two core criteria:

• Demonstrated consistently high occupancy and income levels across market cycles; and
• Offer value-add opportunities with appropriate risk-adjusted returns and the potential for significant value appreciation.
How is the purchase price determined?
The purchase price per share equals our net asset value (NAV) per share (calculated as our NAV divided by the number of our common stock outstanding as of the end of the prior fiscal quarter) and will be adjusted at the beginning of every fiscal quarter (or as soon as commercially reasonable thereafter). Investors will pay the most recent publicly announced offering price as of the date of their subscription. Our website, www.realtymogul.com, will identify the current offering price per share as well as our NAV per share.
How often will I receive distributions?
Although distributions are not guaranteed, they are expected to be paid quarterly; however, the board of directors may declare other periodic distributions as circumstances dictate. You may elect to participate in our distribution reinvestment plan (DRIP), in which case all potential distributions we pay to you may be automatically reinvested in shares of our common stock.
What is the Automatic Investment Program?
Existing Apartment Growth REIT investors who desire to purchase additional shares of either or both offerings at regular intervals may be able to do so by electing to participate in the auto investment program. The auto investment program allows an investor to choose a recurring investment amount that will be added to an existing REIT investment month-after-month automatically. The minimum periodic investment is $250 per month. If you elect to participate in both the auto investment program and our distribution reinvestment plan, distributions earned from shares purchased pursuant to the auto investment program will automatically be reinvested pursuant to our distribution reinvestment plan.

Existing Apartment Growth REIT investors can click on the “Auto Invest” tab on their investor Dashboard to begin the Auto Invest enrollment process. Once an enrollment form is submitted, the Auto Invest enrollment request will need to be processed before it will become active on your Dashboard. Please visit the “Auto Invest” tab on your investor Dashboard to get started and for more information.

Once your auto investment enrollment is active, you will have the option to either pause, edit, or cancel your enrollment right from the “Auto Invest” tab on your investor Dashboard. For more information, please refer to our full offering circular.
What fees and expenses will the REIT pay?
Unlike some non-traded REIT offerings, RealtyMogul has direct access to its investors through its online portal. As a result, the Apartment Growth REIT does not pay broker-dealers any selling commissions.

The following third-party expense reimbursements will be paid from proceeds of the sale of the Apartment Growth REIT shares:

TYPE OF FEEAMOUNTNOTES
Organization, Offering and Other Operating Expenses including, but not limited to, actually incurred third-party legal, accounting, and marketing expenses.
Up to 3% of equity contributionNAV, at any given time, is net of Organization, Offering and Other Operating Expenses.

The following fees will be paid by the Apartment Growth REIT to our Manager, RM Adviser, LLC, and/or its affiliates for services related to the offering, and the investment and management of our assets:††

TYPE OF FEEAMOUNTNOTES
Asset Management Fee paid to our Manager, RM Adviser, LLC1.25% annualized based on the "total equity value"
For purposes of this fee, total equity value equals (a) our then-current NAV per share, as determined by our board of directors, multiplied by (b) the number of shares of our common stock then outstanding. Actual amounts are dependent upon the offering proceeds we raise (and any leverage we employ) and the results of our operations and changes to our NAV.
Reimbursement of Other Operating Expenses paid to our Manager, RM Adviser, LLC Variable – dependent upon operationsIncludes, but is not limited to, license fees, auditing fees, fees associated with SEC reporting requirements, acquisition expenses, interest expenses, property management fees, insurance costs, tax return preparation fees, marketing costs, taxes and filing fees, administration fees, fees for the services of independent directors, and third-party costs associated with the aforementioned expenses.
Servicing Fee (Performing Preferred Equity Investments) - RM Originator, an affiliate of our Manager, RM Adviser, LLC0.5% of the principal balance plus accrued interest of each preferred equity investment to RM Originator for the servicing and administration of certain investments held by us. Servicing fees payable by us may be waived at RM Originator’s sole discretion.Actual amounts are dependent upon the principal amount of the preferred equity investments. We cannot determine these amounts at the present time.
Special Servicing Fee (Non- Performing Preferred Equity Investments) - RM Originator, an affiliate of our Manager, RM Adviser, LLC1% of the original value of a non-performing preferred equity investment serviced by such RM Originator. Whether an investment is deemed to be non-performing is at the sole discretion of our Manager.Actual amounts are dependent upon the principal amount of the preferred equity investments. We can not determine these amounts at the present time.

Other operating expenses, including, but not limited to the expense of an annual third-party audit, independent director stock compensation and stock retainer for our portfolio manager, are paid by the Apartment Growth REIT.
†† There are other fees not paid by the Apartment Growth REIT itself that may be paid to affiliates that originate or manage investments on behalf of the Apartment Growth REIT. To learn more about our fees, estimated use of proceeds, and the Apartment Growth REIT's estimated expenses, please refer to our full offering circular. Additionally, unaffiliated and affiliated third-parties will pay our Manager or affiliates of our Manager substantial fees related to the origination, investment, and management of our equity and preferred equity. A portion of these fees may be paid to personnel affiliated with our Manager, including officers of our Manager, Jilliene Helman and Eric Levy. These fees reduce the amount of funds that are invested in the underlying equity and preferred equity, or the amount of funds available to pay distributions to the Company, thereby reducing returns on that investment. Please carefully review the “Management Compensation” section of the Company’s Offering Circular for more information on these fees.
Will I have the opportunity to redeem my common stock?
Non-traded REITs, such as the RealtyMogul Apartment Growth REIT, are not liquid investments, which means you may think of an investment in the Apartment Growth REIT as a long-term investment into real estate. We have, however, adopted a Share Repurchase Program whereby we alone may purchase shares back from investors. The Share Repurchase Program is designed to provide our shareholders with limited liquidity on a quarterly basis for their investment in the Apartment Growth REIT shares, subject to availability of capital.

As is more thoroughly discussed in the Share Repurchase Program section of RealtyMogul Apartment Growth REIT’s Offering Circular, after 12 months of ownership, you may request up to 25% of your eligible shares to be repurchased on a quarterly basis at the most recently announced NAV per share multiplied by the Effective Repurchase Rate, a discount based on how long the shares have been held.

The Effective Repurchase Rate is based on the stock purchase anniversary as follows:
Share Repurchase Anniversary (Year)Effective Repurchase Rate(1)
Less than 1 year(Lock-up) 0%
1 year until 2 years98%
2 years until 3 years99%
3 or more years100%
Death (Exception Repurchases)100%
(1) As a percentage of the Repurchase Base Price per share. The repurchase price will be rounded down to the nearest $0.01.

We intend to limit the number of shares to be repurchased during any calendar year to 5.0% of the weighted average number of shares of common stock outstanding during the prior calendar year (or 1.25% per quarter, with excess capacity carried over to later quarters in the calendar year). In the event that share repurchase requests exceed the 5.0% annual limit of allowable repurchases, pending requests will be honored on a pro rata basis.

As of December 31, 2023, we are receiving requests for the repurchase of our shares in excess of the repurchase limit set forth in our share repurchase program. In accordance with our share repurchase program, such share repurchase requests are honored on a pro rata basis. For more information regarding our share repurchase program, see the section of our Offering Circular captioned “Description of Our Common Stock – Quarterly Share Repurchase Program."

Our board of directors may in its sole discretion, amend, suspend, or terminate the share repurchase program at any time. Reasons we may amend, suspend or terminate the share repurchase program include (i) to protect our operations and our remaining shareholders, (ii) to prevent an undue burden on our liquidity, (iii) to preserve our status as a REIT, or (iv) following any material decrease in our NAV.

Additional details regarding the RealtyMogul Apartment Growth REIT, Inc.’s Repurchase Program are found in the Offering Circular, including all supplements.

To learn more about the Apartment Growth REIT's Share Repurchase Plan, please refer to the section of our offering circular captioned “Description of our Common Stock – Quarterly Share Repurchase Program.”
How will the distributions I receive be taxed?
REIT distributions may be treated as ordinary income, capital gains, and/or return of capital for tax purposes, each of which may be taxed at a different rate for different investors.

Because each investor’s tax considerations are different, it is recommended that you consult with your tax advisor. You also should review the section of the offering circular entitled “U.S. Federal Income Tax Considerations,” including for a discussion of the special rules applicable to distributions in repurchase of shares and liquidating distributions.

Your annual detailed tax information will be reported on Form 1099-DIV, if required, and will be provided to you in electronic form by January 31 of the year following each taxable year.

What is the Apartment Growth REIT's exit strategy?
The Company expects to provide investors with a liquidity transaction, or exit, at some point in the future.

A liquidity transaction could consist of a sale of all assets, a roll-off to maturity of all assets, a sale or merger of the Apartment Growth REIT, consolidation with other REITs managed by our Manager, a listing of the Apartment Growth REIT on an exchange, or any other similar transaction.

The Apartment Growth REIT does not have a stated term. The board of directors has the discretion to consider and execute a liquidity transaction at any time if it determines it is in the best interest of the Company.
Am I eligible to invest?
RealtyMogul Apartment Growth REIT is available to “Qualified Purchasers” which includes: (i) “accredited investors” as defined under Rule 501(a) of Regulation D and (ii) all other investors subject to certain investment limitations based on annual income or net worth.

Accredited Investors include individuals who meet the following criteria:

  • Have a net worth over $1 million, excluding primary residence (individually or with spouse or partner)
  • Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
There are certain other criteria by which individuals and entities may meet the requirements to qualify as an accredited investor. For more information, please visit https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-3.

All Other Investors may invest so long as their investment in our common shares does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons)
What will the REIT invest in?
The RealtyMogul Apartment Growth REIT invests in joint venture equity and preferred equity investments in multifamily apartments.
Historical Performance
CUMULATIVE DISTRIBUTIONS
Cumulative Distributions
Purchase Price
$9.75
Per share as of 4/24/2024
Net Asset Value (NAV)
$9.75
Per share as of 3/31/2024
1-Year Return
${mogulReit2LastTwelveMonthsReturn}%
Per share as of 3/31/2024
3-Year Return
${mogulReit2ThreeYearReturn}%
Per share as of 3/31/2024
5-Year Return
${mogulReit2FiveYearReturn}%
Per share as of 3/31/2024
Inception to Date Return
${mogulReit2LifetimeReturn}%
Per share as of 3/31/2024
Consecutive Distribution Periods
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Property Type
Cumulative Distributions
Primary
Locations where the broader MSAs have a population of 5 million or greater.

Secondary
Locations where the broader MSAs have a population between 2 – 5 million.

Tertiary
Locations where the broader MSAs have a population less than 2 million.
Cumulative Distributions
Multi-Family
The RealtyMogul Apartment Growth REIT targets apartment communities that have demonstrated consistently high occupancy and income levels across market cycles as well as multifamily properties that offer value added opportunities with appropriate risk-adjusted returns and opportunity for value appreciation.
Portfolio
Investment Location Property Type Investment Type Weight
Brooklyn, NY Multi-family Joint Venture Equity 0%
Dallas, TX Multi-family Joint Venture Equity 0%
Orion Township, MI Multi-family Joint Venture Equity 0%
Austin, TX Multi-family Joint Venture Equity 0%
Riverview, FL Multi-family Joint Venture Equity 0%
Oklahoma City, OK Multi-family Preferred Equity 0%
Vancouver, WA Multi-family Joint Venture Equity 0%
Raleigh, NC Multi-family Joint Venture Equity 0%
East Lansing, MI Multi-family Joint Venture Equity 0%
Brooklyn Diversified Multifamily Portfolio
Brooklyn, NY
Brooklyn Diversified Multifamily Portfolio
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
3000000.00
Date Of Investment
11/30/17

Highlights

Experienced Real Estate Company
The Real Estate Company is locally based and has prior experience purchasing and adding value to rent stabilized multifamily properties in Brooklyn. RM has transacted with the Real Estate Company on three previous occasions.

Significant Owner Equity
The Real Estate Company invested over $3.7 million in the Portfolio.

Well Located
The Portfolio is located in several gentrifying neighborhoods of Brooklyn, NY, within the Bedford-Stuyvesant/Bushwick, Crown Heights and Ditmas Park/Flatbush submarkets.

Ninety-Nine44 Apartments
Dallas, TX
Ninety-Nine44 Apartments
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
4000000.00
Date Of Investment
9/9/20

Highlights

Value Add

There is an opportunity to renovate the property and increase rental income. $8,109 is budgeted per unit for renovations which is anticipated to increase rents an average of $132 per unit upon completion. The Property is also being purchased at a basis below its comparative set and represents a discount to pre-COVID pricing.

Dynamic Market

The Property benefits from its close proximity to the Telecom Corridor. More than 5,700 companies have a presence in the area, including AT&T, Ericsson, Verizon, Texas Instruments and MetroPCS. The area also features a tight multifamily market, with 6.2% vacancy in June 2020 according to Axiometrics.

Repeat Sponsor

The Real Estate Company is a repeat sponsor of Realty Mogul Co. A previous transaction between the two companies recently completed its renovation plan, achieved 95% occupancy and is anticipated to be marketed for sale in September 2020.

The Orion
Orion Township, MI
The Orion
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
5000000.00
Date Of Investment
3/23/21

Highlights

Location

With a $1.3 billion asset value and over 15,000 apartments, Northwest Oakland County is the fifth largest submarket in Detroit that appeals to baby boomers and empty nesters seeking a more rural environment. The market takes advantage of strong suburban population growth, which captures workers who are employed in the suburbs of Detroit and allows for a greater market share of renters than in other parts of Michigan.

Market Rent Growth

The submarket had strong year-over-year rent growth of 7.2%. Per AxioMetrics, rent is forecasted to grow by 3.5% annually and vacancy to stay below 5% in the next five years.

Recent Performance

As of the acquisition date, the property was 98% occupied. The property has been at least 96% occupied since April 2020. Since September 2020, new lease rents were 10% above in-place rents, signaling an attractive upward trajectory.

Lotus Village
Austin, TX
Lotus Village
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
2500000.00
Date Of Investment
6/25/21

Highlights

Off-Market

The Real Estate Company reapproached a national brokerage firm following a broadly marketed process, due to the previous buyer's seeming uncertainty of execution. Following 6 months of consistent tracking, and the transaction ultimately falling through, the Real Estate Company contractually stepped in as the buyer at a lower price, with terms and a track record that ensures the ability to close.

Market

Austin has been named the #1 fastest-growing major metro area for population growth for nine straight years. Austin has also ranked the #1 place to live in the United States, for the third consecutive year in 2019. The Austin area consists of several Fortune 500 companies, including Apple, Facebook, Amazon, Dell, IBM, Oracle, and soon Tesla's new Gigafactory. Through the COVID-19 pandemic era, Austin added over 37,000 new jobs, marking 3.5% growth and making the city the 2nd fastest-growing metro in the United States. The City recently approved the Orange Line, a new metro rail that will be passing just two blocks from the Property and will provide commuters with convenient access to the Tech Ridge and Downtown Austin. The submarket has averaged 4%+ rent growth and 95%+ occupancy over the past 10 years. 

Value-Add

Though built in 2012, the Real Estate Company has an opportunity to enhance all 222 units at Lotus Village, while also further enhancing amenities and exterior spaces. The Real Estate Company has the ability to raise the average current rents of $1.33 per square foot to $1.51 per square foot, which results in a $172 premium over in-place rents and assumed stabilized occupancy at 92%.

 

Sherwood Oaks
Riverview, FL
Sherwood Oaks
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
4200000.00
Date Of Investment
11/30/21

Highlights

Desirable Product Type

Sherwood Oaks stands out amongst its competitors with its unique, predominantly single-story construction, a feature that is highly desirable with tenants, and a huge competitive advantage over nearby apartment properties. The low-density grounds feature abundant, mature oak trees, which create a shade canopy over the property, providing temperature control and natural curb appeal.

Renovated

Since 2020, the Property has received over $3MM/$15K+ per unit in capital improvements. This includes a complete roof replacement, exterior paint, dog park, landscaping enhancements, and unit interior renovations.

Market

According to research from Yardi Matrix, the Tampa metro saw the third biggest year-over-year increase in apartment rental rates growing 15.1% between June 2020 and June 2021. That rate is more than twice the national average. In the Southeast Tampa submarket where this asset is located, quarter-to-date year-over-year asking rent growth is 25%.

Restoration on Candlewood
Oklahoma City, OK
Restoration on Candlewood
Investment Type
Preferred Equity
Property Type
Multi-family
Invested
5250000.00
Date Of Investment
3/21/23

Highlights

Basis

At $82K/unit, this basis is over $12K/unit below any of the Property’s sales comparables.

Renovated

Since 2021, the Property has received over $11mm, or $33K/unit in capital improvements, including stainless steel appliances, new hardware, new vinyl plank flooring, new lighting, and new in-unit washer and dryers.

Sponsor

The real estate company sponsoring this transaction is a Colorado-based real estate investment company that has acquired more than 6,000 units of multifamily property with an aggregate value of over $1 billion. The real estate company is vertically integrated with in-house property management operations.  RealtyMogul has invested with the real estate company on two previous transactions, both of which went full cycle.

 

Ridgeline View Townhomes
Vancouver, WA
Ridgeline View Townhomes
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
4000000.00
Date Of Investment
5/19/23

Highlights

Basis

The real estate company sponsoring this transaction was able to identify the Property off-market through their relationship with the seller-developer. The seller's original asking price was 22% higher than the ultimately negotiated net purchase price of $356,000/unit.

Market

The Property is in Vancouver, a city just north of Portland, Oregon on the Washington State side of the metro. The submarket of Vancouver offers additional benefits given its location in the State of Washington. Residents in Washington benefit from no personal state income tax and Clark County, Washington allows for no personal county income tax. Additionally, there are no city/county business taxes in Clark County, Washington. On top of that, per Costar, Vancouver's cumulative rent growth over the last 10 years is above the national total over the same amount of time and since 2010, vacancy in the Vancouver submarket has been consistently below the national average.  

Desirable Product Type

The Property is a brand new, 2022 built property comprised of 50 four-bedroom townhome style units. Interior finishes include stainless steel appliance packages, luxury vinyl plank flooring, in-unit washers and dryers, and select units have private fenced-in yards and decks amongst various other design touches which allow the property to outperform the market. The Property also features central air which is a unique feature for apartments in the Pacific Northwest. Each unit is 1,426 square feet and is ideally suited for a growing work from home tenant base.  

Brookside Apartments
Raleigh, NC
Brookside Apartments
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
3000000.00
Date Of Investment
6/30/23

Highlights

Market

The Property is exceptionally located inside the I-440 Beltline in the highly rated Mordecai Historic District, situated minutes from Downtown Raleigh in a neighborhood where single-family homes are listed as high as $1.6 Million according to Zillow. Raleigh is one of the fastest growing metros in the U.S. and was recently projected to be the second fastest-growing large city in the U.S. between 2015 and 2030, according to the United Nations Population Division.

Affordable Stabilized Rents

Underwritten post-renovation market rents of $1,426 per month offer a 17.1% rent to income ratio given the average household income within a two-mile radius of the Property is just under $100,000 according to CoStar. This is also an affordable price point in relation to the rest of the Raleigh MSA, as the average market rent in Raleigh is $1,561 according to CoStar. The Property is well positioned to harness the tremendous rent and income growth in the Raleigh MSA while providing an economic alternative to more expensive Class A product in the Downtown submarket.

Value-Add Potential

The Property is uniquely positioned for immediate upside through the implementation of interior and exterior upgrades. The business plan is to spend approximately $13,500 per classic unit to upgrade appliances, flooring, countertops, and cabinetry. All units feature laundry connections and will receive new W&D appliances in each unit. The business plan also includes an exterior refresh with conversion of the existing laundry facility to a fitness center to improve desirability and tenant experience.

Hunters Ridge
East Lansing, MI
Hunters Ridge
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
5500000.00
Date Of Investment
12/7/23

Highlights

Favorable Debt Assumption

The loan on the property, at acquisition, was assumed from the previous owner in the amount of $21,026,000. The loan has approximately eight years of term remaining with a maturity date of August 2031, a fixed interest rate of 3.33% and approximately two years remaining for interest-only payments. This compelling interest rate, as well as the interest-only remaining, is not achievable on new loans in the market today. For comparison, a 7-year Fannie Mae loan at 65% leverage has an average interest rate of 5.78% as of December 7, 2023 according to Northmarq. 

Proven Value Add Renovation

The seller of the Property has renovated 38 units to date with updated counters, cabinets, bathrooms, flooring, and appliances, which have achieved average premiums of $280 per month compared to previous rents. The business plan is to continue with a similar renovation scope for the remaining 132 units while also charging the same average renovation premium. RM Communities also plans to upgrade the Property by adding a valet trash program to provide an amenity that better competes with new product in this submarket. We believe the renovation plan should allow the Property to ahieve competitive rents for this submarket. 

Submarket Affordability

The Property, after renovation, is projected to achieve average rents of $1,833 per month, which reflects a 25.5% rent to income ratio as the average household income within a three-mile radius of the Property is just over $86,000 according to CoStar. This monthly rent is also an affordable alternative to purchasing a home. According to Zillow, within four miles of the Property the average value for homes in the market is $550,000. We believe the property is well positioned to take advantage of the affordability in the immediate submarket while also providing an economic alternative to more expensive homeownership. 

Investment Location Property Type Investment Type Invested
Dallas, TX Multi-family Joint Venture Equity 4000000.00
Plano, TX Multi-family Joint Venture Equity 1000000.00
San Antonio, TX Multi-family Joint Venture Equity 1000000.00
Fort Worth, TX Multi-family Joint Venture Equity 1066558.00
Avon, CT Multi-family Joint Venture Equity 3000000.00
El Paso, TX Multi-family Joint Venture Equity 3385320.00
Chicago, IL Multi-family Preferred Equity 1440000.00
The Clover on Park Lane
Dallas, TX
The Clover on Park Lane
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
4000000.00
Date Of Investment
8/31/17
Date Completed
1/7/22

Investment Summary

  • On January 7, 2022, the Property was sold. As a result of the business plan for the renovation of the Property, since the Property’s acquisition, 279 of the 343 units had been renovated, and renovation costs remained under budget. The exterior and common area improvements were completed, including landscaping, installation of new signage, lighting, fencing, gates/security systems, a playground and dog park as well as a complete renovation of the leasing office/clubhouse. Other improvements included resurfacing of the pool, foundation repairs, exterior siding repairs and painting. Since the Property’s acquisition, the Property’s average rent rate increased from $578/month as of October 2017 to $830/month upon the sale of the Property, representing a 44% increase in rent rate.
  • The Property was originally acquired for $19,500,000, or $56,851 per unit, and was sold for $38,500,000, or $112,245 per unit. 

Original Investment Highlights

  • On August 31, 2017, MogulREIT II acquired a $4,000,000 joint-venture equity investment related to the acquisition and renovation of The Clover on Park Lane (fka Serendipity Apartments), a 343-unit garden-style apartment community located in Dallas, TX (the "Property").
  • The Property was built in 1975 and is comprised of studios, one, and two-bedroom floor plans with an average unit size of 610 square feet. Amenities at the Property include a clubhouse, business center, fitness center, laundry facilities, two pools, and picnic areas.
  • The real estate company’s business plan is to bring in-place units to market rents and renovate all 343 units over a three-year period. The real estate company has budgeted approximately $3.04 million ($8,861/unit) to be allocated towards interior and exterior capital improvements. Unit interior upgrades are to include new appliances, painted cabinetry, new ceiling fans, and new lighting packages. Exterior/amenity improvements are to consist of new paint, new carpentry, new landscaping and drainage, a dog park, renovated pool, resealed parking lots, and a new signage package. Post-renovated rent increases are anticipated to be $142 per unit.

Villas del Sol (fka Plano Portfolio)
Plano, TX
Villas del Sol (fka Plano Portfolio)
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
1000000.00
Date Of Investment
12/22/17
Date Completed
12/22/23

Investment Summary

  • On December 22, 2023, the Property was sold. As a result of the business plan for the renovation of the Villas del Sol I & II Property, since the Property’s acquisition, 67 of the 156 units had been renovated with new flooring, appliances, backsplash, and lighting packages. The exterior and common area improvements were also completed, including an updated leasing office, new gazebos, the addition of BBQ grills, an upgraded laundry room, and an upgraded soccer court.
  • The Property was originally acquired for $10,500,000, or $67,308 per unit, and was sold for $19,350,000, or $124,038 per unit.

Original Investment Highlights

  • MogulREIT II has acquired a $1,000,000 joint-venture equity investment related to the acquisition and renovation of two garden-style apartment communities comprising 156-units located in Plano, TX (the "Property").
  • The investment has an estimated hold period of approximately five years.  
  • The Properties are being purchased for $67,308 per unit at a 5.46% cap rate on tax-adjusted, trailing-12 month net operating income.
  • The Properties were built in 1950 (Oak Gate) and 1971 (Collin Park) and are comprised of one and two-bedroom floor plans with an average unit size of 815 square feet. Amenities across the Properties include laundry centers, BBQ grills, a covered pavilion, 268 parking spaces (1.7 spaces/unit), 24-hour maintenance, and a leasing center. 
  • As of October 2017, the Properties were 100% occupied with an average in-place rental rate of $806 per unit.
  • The real estate company’s business plan is to implement a value-add strategy by completing interior and exterior renovations at the Properties. Unit interior upgrades are expected to include a combination of black-on-black appliances, faux-wood flooring, energy saving devices, and new fixtures. Exterior and amenity improvements are expected to address painting, carpentry, landscaping, parking lots, leasing center, laundry facilities, and signage. The pro forma financials assume that classic and renovated units will be able to achieve rental premiums of approximately $59 and $82 per unit per month upon completion, respectively. 
  • The real estate company is a dynamic real estate investment firm specializing in multifamily apartment communities in densely-populated Hispanic neighborhoods. The real estate company owns and manages over $270 million in multifamily assets overall, comprising over 4,500 units. Core to its investment strategy is creating culturally-relevant, inclusive communities that are tailored to the various ethnicities living at its communities. The real estate company specializes in acquiring and repositioning apartments in infill locations and implementing its proprietary cultural management platform which includes specific cultural upgrades and community-oriented resident services and programs.
  • The real estate company has secured senior debt of $8,640,000, which includes a $750,000 reserve for capital expenditures. The debt has a ten-year term with three years of interest-only payments. The debt has a fixed, blended interest rate of 4.48%.
Villas de Toscana
San Antonio, TX
Villas de Toscana
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
1000000.00
Date Of Investment
1/31/18
Date Completed
12/20/21

Investment Summary

  • On December 20, 2021, the Property was sold. The Property was originally acquired for $14,350,000, or $75,526 per unit, and was sold for $17,650,000, or $92,895 per unit. 

Original Investment Highlights

  • On January 31, 2018, MogulREIT II acquired a $1,000,000 joint-venture equity investment related to the acquisition and renovation of Villas de Toscana (fka Tuscany at Westover Hills), a 190-unit garden-style apartment community located in San Antonio, TX (the "Property").
  • The Property was built in 1984 and is comprised of studios, one and two-bedroom floor plans with an average unit size of 684 square feet. The Property is a gated community with amenities that include a basketball court, fitness center, pool, dog park, picnic area, carports, laundry facilities and a BBQ area.
  • The Real Estate Company’s business plan is to implement a value-add strategy by completing interior and exterior renovations at the Property. Unit interior upgrades are expected to include a combination of black-on-black appliances, faux-wood flooring, utility saving devices, and new fixtures. Exterior and amenity improvements are expected to address painting, carpentry, landscaping, fitness center upgrades, backyard changes, pool enhancements, and balcony improvements.
Villas del Mar
Fort Worth, TX
Villas del Mar
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
1066558.00
Date Of Investment
2/28/18
Date Completed
10/25/22

Investment Summary

  • On October 25, 2022, the Property was sold. As a result of the business plan for the renovation of the Property, since the Property’s acquisition, 49 of the 263 units had been renovated. The exterior and common area improvements were completed, including painting, clubhouse renovations, the addition of BBQ grills, signage, and a water retrofit. Due to the weaker than anticipated tenant demographic both at the Property and in the surrounding submarket, the real estate company sponsoring the transaction was unable to lease renovated units as underwritten, and the Property required capital calls as a result to support operations and sale efforts; however, the Fort Worth market appreciated, and the Property was sold at a profit, causing the special purpose entity to receive its original investment without a loss of principal.
  • The Property was originally acquired for $14,530,750, or $55,250 per unit, and was sold for $21,150,000, or $80,418 per unit. 

Original Investment Highlights

  • MogulREIT II has acquired a $1,000,000 joint-venture equity investment related to the acquisition and renovation of a 263-unit garden-style apartment community located in Fort Worth, TX (the "Property"). 
  • The Property was purchased for $55,250 per unit.
  • The Property was built in 1968 and is comprised of one, two, and three-bedroom floor plans with an average unit size of 1,043 square feet. Amenities include a swimming pool, clubhouse, children's play area, a public mail center, a public laundry center, 24 hour emergency on-site maintenance, and a leasing center with full public kitchen. 
  • The Real Estate Company’s business plan is to implement a value-add strategy by completing interior and exterior renovations at the Property. Interior upgrades are expected to include black-on-black appliances, faux-wood flooring, utility-efficient devices and new fixtures.  Exterior and amenity improvements are expected to include a parking lot seal coat and restriping, new signage, leasing clubhouse upgrades and a dog park, among other improvements.​
Avon Place Apartments
Avon, CT
Avon Place Apartments
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
3000000.00
Date Of Investment
10/22/18
Date Completed
9/30/22

Investment Summary

  • On September 30, 2022, the Property was sold for $33,750,000, or $205,793 per unit, reflecting a 40.6% increase in property value since acquisition. As a result of the business plan for the renovation of the Property, since the Property’s acquisition, 39 of the 164 units had been renovated. The exterior and common area improvements were completed, including painting all common areas and hallways, furnishing the pool area, as well as renovating the clubhouse/game room and kitchen. Since the Property’s acquisition, the Property’s average rental rate increased from $1,499/month as of November 2018 to $1,706/month upon the sale of the Property, representing a 14% increase in rental rate.

Original Investment Highlights

  • MogulREIT II has acquired a $3,000,000 joint-venture equity investment related to the acquisition and renovation of a 164-unit garden-style apartment community located in Avon, CT (the "Property").
  • The Property was purchased for $146,341 per unit.
  • The Property was built in 1973 and is comprised of one, two, and three-bedroom floor plans with an average unit size of 1,165 square feet. Amenities at the Property include a fitness center, pool, picnic area, dog park, tot lot, tennis court, elevators, community laundry, WiFi, low-density wooded landscape, and a clubhouse.
  • The Real Estate Company's business plan is to implement a value-add strategy by completing interior and exterior renovations at the Property. Planned unit interior upgrades will include the addition of new appliances, countertops, cabinetry, fixtures, flooring, lighting, and in-unit washers and dryers. Exterior / amenity improvements will consist of painting, lighting, new landscaping, a grill area and fire pit, and patio fences. 
Terrace Hill Apartments
El Paso, TX
Terrace Hill Apartments
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
3385320.00
Date Of Investment
5/31/19
Date Completed
11/1/21

Investment Summary

  • On November 1, 2021, the Property was sold. As a result of the business plan for the renovation of the Property, since the Property’s acquisition, 219 of the 310 units had been renovated, and renovation costs remained under budget. Of those 219 units, all were leased and achieved an average premium rent rate of $134/month over prior rent rates and within 4% of projected rent rates. The exterior capex work was completed, including HVAC conversion to refrigerated air, new roofs, new exterior paint, upgraded landscaping, pool renovation, re-purposing of an old tennis court to a new resident lounge area with a new basketball court and open grass area, new tables and benches, new BBQ grills, and low-flow toilets and showerheads retrofit. Since the Property’s acquisition, the Property’s average rent rate increased from $668/month at acquisition to $820/month upon the sale of the Property, representing a 23% increase in rent rate.
  • The Property was originally acquired for $18,700,000, or $60,323 per unit, and was sold for $27,325,000, or $88,145 per unit.

Original Investment Highlights

  • On May 31, 2019, MogulREIT II acquired a $3,385,320 joint venture limited partnership equity investment in connection with the acquisition and renovation of Terrace Hill Apartments, a Class B 310-unit multifamily apartment complex in El Paso, Texas (the “Property”).
  • The real estate company managing the project plans to improve the Property through a strategic renovation program, renovating units that become available due to normal tenant turnover, and re-leasing the renovated units at a higher rental rate. Unit interior renovations may include vinyl plank flooring, new hardware and lighting fixtures, upgrades to the cabinets, the addition of backsplashes in select units, and resurfaced countertops. The real estate company also intends to convert the air conditioning to refrigerated air for select units and replace all toilets, showerheads, and aerators with low-flow models, resulting in resource conservation and cost savings. The unit interior renovations will take place in conjunction with common area and amenity enhancements including new pool furniture, upgraded BBQ areas, and an outdoor lounge with gazebos. This renovation strategy assumes a renovation budget of approximately $14,000 per unit financed by loan proceeds. As of April 2019, the Property was 94.8% occupied with average in place rents of $668 per unit.
Ashland Apartments
Chicago, IL
Ashland Apartments
Investment Type
Preferred Equity
Property Type
Multi-family
Invested
1440000.00
Date Of Investment
6/22/18
Date Completed
6/6/19

Investment Summary

  • On June 6, 2019, the preferred equity investment was paid off in full.
  • All interest payments were paid in full during the hold period at an interest rate of 15%. 

Original Investment Highlights

  • MogulREIT II has acquired a $1,440,000 preferred equity interest (the “Investment”) related to the renovation of a 31-unit multifamily property located in Chicago, IL (the "Property").
  • The business plan is to rehabilitate the Property by addressing all deferred maintenance items and substantially improving and modernizing the Property's interiors, exteriors, and landscaping.  Upon completion of the capital expenditure plan, the Property is anticipated to offer renovated interiors and amenities including a new workout room, storage lockers, a bike room, and new landscaping of the common area garden. The business plan is anticipated to take approximately 15 months to complete. 
  • The Property was built in 1918 and is comprised of one and two-bedroom floor plans wtih an average unit size of 777 square feet. 
  • The Property is approximately 77% leased. The Real Estate Company has intentionally left particular units vacant in order to execute the interior renovations immediately. 
  • The Real Estate Company acquired the Property in March 2018 from the original owner and anticipates using the refinance proceeds to (1) pay off an existing senior loan and (2) to repair and renovate the Property.  
  • The Real Estate Company has over thirty five years of real estate experience and has managed the repositioning of nine investment properties in the Chicago area since 2014. The Property will be managed by an affiliate of the Sponsor.
  • The Real Estate Company has secured a senior loan of $6,200,000, which includes a $1,047,000 holdback for property renovations. The loan has a three-year initial term with two 12-month extensions. 
  • The Investment has a remaining term of 60 months as of the acquisition date of June 22, 2018.   
  • The Investment is interest-only throughout the entire term.   
For a detailed description of the investments in the portfolio, please see your most recent quarterly update, as provided in the "Resources" section. Information for the properties above is dated as of the acquisition date.
Disclaimers and Risk Factors
Investing in the Company's common stock is speculative and involves substantial risks. The Company provides no assurance that it will attain its objectives or that the value of its assets will not decrease. Investors should purchase the Company’s securities only if they can afford a complete loss of their investment. Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis for an investor’s decision to invest. The information on this webpage is not complete and is qualified in its entirety by the more complete information in the Company’s offering circular and any supplements thereto (together, “Offering Circular”), links to which are provided above. In the event of an inconsistency between the information on this page and in the Offering, investors should rely on the information contained in the Offering Circular. The information on this webpage is subject to last minute changes without notice. Nothing on this webpage should be regarded as investment advice to any individual investor, (either with respect to a particular security or regarding an overall investment strategy). The information on this webpage, including any past performance, should not be relied upon as the primary basis for an investor’s decision to invest. Advice from a securities professional is strongly advised.

The NAV per share calculation reflects the total value of our assets minus the total value of our liabilities, divided by the number of shares outstanding. As with any methodology used to estimate value, the methodology employed calculating our NAV per share is based upon a number of estimates and assumptions about future events that may not be accurate or complete. Further, different parties using different assumptions and estimates could derive a different NAV per share, which could be significantly different from our calculated NAV per share. Our NAV will fluctuate over time and does not represent: (i) the price at which our shares would trade on a national securities exchange, (ii) the amount per share a shareholder would obtain if he, she or it tried to sell his, her or its shares or (iii) the amount per share shareholders would receive if we liquidated our assets and distributed the proceeds after paying all our expenses and liabilities.

You should carefully review the “Risk Factors” section of this offering circular which contains a detailed discussion of the material risks that you should consider before you invest in our common shares. These risks include the following:

  • The RealtyMogul Apartment Growth REIT has no prior operating history.    
  • Because no public trading market for shares of our common stock currently exists, it will be difficult for an investor to sell their shares and, if an investor is able to sell their shares, they will likely sell them at a substantial discount to the public offering price.
  • We may be unable to pay or maintain cash distributions or increase distributions over time.
  • Future disruptions in the financial markets or deteriorating economic conditions could adversely impact the commercial real estate market as well as the market for debt-related investments generally, which could hinder our ability to implement our business strategy and generate returns to you.
  • This is a blind pool offering, and the REIT is not committed to acquiring any particular investments with the net proceeds of this offering.
  • There are conflicts of interest between the REIT, its Manager and its affiliates.
  • Our investments may be concentrated and will be subject to the risk of default.
  • We are dependent on our Manager and Realty Mogul, Co.’s key personnel for our success.
  • The REIT may allocate the net proceeds from this offering to investments with which you may not agree.
  • Number of unique investors, consecutive distribution periods, and amount distributed to investors as of May, 2024.
Note: The foregoing statements may contain forward-looking statements and are based on our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements.
1 These hypothetical case studies are provided for illustrative purposes only and do not represent an actual investor or an actual investor's experience, but rather are meant to provide an example of the Apartment Growth REIT's process and methodology. An individual's experience may vary based on his or her individual circumstances. There can be no assurance that the Apartment Growth REIT will be able to achieve similar results in comparable situations. Hypothetical returns are net of advisory fees and transaction costs; all dividends are assumed to be reinvested quarterly. Actual returns may differ materially from hypothetical returns. Hypothetical returns are from the Apartment Growth REIT's inception date through April 15, 2024. There is no substitute for actual returns. Past hypothetical performance is not a guarantee of future returns.
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