RealtyMogul Income REIT
For ${mogulReit1DistributionDuration} consecutively, our Income REIT has been doing exactly that by paying investors an annualized cash distribution of between 6-8% (net of fees).1
$358MM
Total Asset Value
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Distributed to Investors
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LTM Return as of ${mogulReit1LastTwelveMonthsReturnDate}
See historical returns below
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Consecutive Distribution Periods
Start Your Investment Now
Annualized Distribution Rate
${mogulReit1LastDistributionDeclared}%
Distribution Frequency
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Minimum Investment
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Property Type
Diverse
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Over ${mogulReit1DistributionAmount} distributed to investors to date
The RealtyMogul Income REIT (Real Estate Investment Trust) is a non-traded REIT making equity and debt investments in commercial real estate properties diversified by investment type, geography and property type.

The REIT's primary focus is to provide monthly income to investors by rigorously evaluating numerous investment opportunities to find those that can support the REIT's distribution target.

Anyone can invest in RealtyMogul’s Income REIT with a minimum investment of just $5,000, regardless of income level or net worth.

The Income REIT has:

  • Paid investors an annualized cash distribution of between 6-8% (net of fees) for ${mogulReit1DistributionDuration}
  • Distributed a total of ${mogulReit1DistributionAmount} to investors to date.
  • Delivered a ${mogulReit1LastTwelveMonthsReturn}% total return for the last twelve months.2
  • $358,000,000 in assets purchased by approximately 7,200 unique investors.3
Distribution History
Since inception, The Income REIT has distributed ${mogulReit1DistributionDuration} of consecutive distributions to investors totaling approximately ${mogulReit1DistributionAmount}.
Diversified
Broad selection of investments across property types and geographies designed to reduce risk.
Passive Income
Cash flow from equity and debt investments in commercial real estate properties.
Trusted
Regular audits conducted by Cohn Reznick.
What would happen if you invested $10k?
If you invested $10,000 in the RealtyMogul Income REIT at inception and reinvested all of your monthly distributions, your investment would now be worth $17,199:
invest chart
Based on a $10,000 initial investment in 20164
Resources
Income REIT Subscription Agreement
Download
Income REIT Operating Agreement
Download
Offering Circular
Download
Supplement Filings
Download
The RealtyMogul Income 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 Income REIT’s day-to-day operations, has access to the experienced team of real estate finance professionals employed by Realty Mogul, Co., including Jilliene Helman, its Chief Executive Officer. Senior executives and origination professionals at Realty Mogul Co. have experience in the commercial real estate sector and have been in leadership roles at financial services institutions for many years. Collectively, these professionals have approximately 167 years of combined direct experience in the commercial real estate business and have managed more than $27 billion of originations.

The credit team of RealtyMogul and its affiliates is experienced in reviewing and underwriting commercial real estate investments. The team has adopted approaches used by real estate finance industry leaders in its analysis of real estate capital structures and financial strategies.
What is a REIT?
A Real Estate Investment Trust (REIT) is a single investment into a portfolio of real estate properties, 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.3 REITs have also historically been positively correlated with inflation, which may make them a possible hedge for inflation.4


3. https://www.reit.com/news/blog/market-commentary/reit-average--historical-returns-vs-us-stocks
4. https://www.reit.com/news/blog/market-commentary/how-reits-provide-protection-against-inflation
What is the RealtyMogul Income REIT?
The RealtyMogul Income REIT is a private limited liability company formed to invest in a diversified portfolio of commercial real estate investments, such as loans, equity in commercial real estate ventures, and other real estate-related assets. The RealtyMogul Income REIT is managed by RM Adviser, LLC, a wholly owned subsidiary of Realty Mogul, Co.

The Income REIT is qualified under Regulation A and is a non-traded REIT. That means that its offerings are exempt from the registration requirements of the Securities and Exchange Commission and can be offered using general solicitation to non-accredited investors subject to certain limitations. The Income REIT is not traded on a stock exchange.

What's the difference between the two RealtyMogul REITs?
The main differences are their respective investment strategies. The RealtyMogul Apartment Growth REIT targets investments in multifamily properties that offer value-add opportunities with the potential for value appreciation, while the RealtyMogul Income REIT targets investments in properties of all asset types with the goal of generating consistent cash distributions.

In short, the RealtyMogul Apartment Growth REIT is focused on growth investments while the RealtyMogul Income REIT is more focused on income-producing investments.

To learn more about the RealtyMogul REITs, click here.

How is the purchase price determined?
The purchase price per share equals our NAV per share (calculated as our NAV divided by the number of our common shares 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 monthly; however, the Manager may declare other periodic distributions as circumstances dictate. You may elect to participate in our distribution reinvestment plan (DRIP), all potential distributions we pay to you may be automatically reinvested in shares of our common stock.
What is the Automatic Investment Program?
Existing Income REIT and 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 Income REIT and 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 public non-traded REIT offerings, RealtyMogul has direct access to its investors through its online portal. As a result, the Income REIT does not pay broker-dealers any selling commissions, which may average approximately 7% of the invested dollars. Therefore, the Income REIT offering has lower fees than some of the other REIT offerings available today in the market.

The following third-party expense reimbursements will be paid from proceeds of the sale of the Income 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 contributionNet Asset Value (NAV), at any given time, is net of Organization, Offering and Other Operating Expenses.
The following fees will be paid by the 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, LLC, and/or its affiliates1% annualized based on the “total equity value”.For purposes of this fee, total equity value equals (a) our then-current NAV per share, multiplied by (b) the number of our common shares 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 operations
Includes, but not limited to, license fees, auditing fees, fees associated with SEC reporting requirements, insurance costs, tax return preparation fees, taxes and filing fees, administration fees, fees for the services of an Independent Representative or Advisory Board, and third-party costs associated with the aforementioned expenses.
For Equity Assets only:

TYPE OF FEEAMOUNTNOTES
Servicing Fee (Performing Loans) - RM Originator, an affiliate of our Manager, RM Adviser, LLC0.5% of the principal balance plus accrued interest of each loan or preferred equity investments to RM   Originator for the servicing and administration of certain loans and 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 loans or preferred equity investments. We cannot determine these amounts at the present time.
Special Servicing Fee (Non-Performing Loans) - RM Originator, an affiliate of our Manager, RM Adviser, LLC
1% of the original value of a non-performing debt or preferred equity investment serviced by such RM Lender. Whether an investment is deemed to be non-performing is at the sole discretion of our Manager.
Actual amounts are dependent upon the occurrence of a debt or preferred equity investment becoming non-performing and the original value of such assets. We cannot determine these amounts at the present time.
**Other operating expenses, including, but not limited to the expense of an annual third-party audit and stock retainer for our portfolio manager, are paid by the REIT.
***There are other fees not paid by the REIT itself that may be paid to affiliates that originate or manage investments on behalf of the REIT. To learn more about our fees, estimated use of proceeds, and the Income REIT's estimated expenses, please refer to our full  offering circular 

Will I have the opportunity to redeem my common shares?
Non-traded REITs, such as the RealtyMogul Income REIT, are not liquid investments, which means you may think of an investment in the Income 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 for their investment in the Income REIT shares, subject to availability of capital.

As is more thoroughly discussed in the Share Repurchase Program section of RealtyMogul Income REIT’s Offering Circular, after 12 months of ownership, your shares may be repurchased at the most recently announced NAV per share multiplied by the Effective Repurchase Rate, which may discount the amount you receive for your repurchased shares 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 yearNo Repurchase Allowed
1 year until 2 years98%
2 years until 3 years99%
3 or more years100%
(1) As a percentage of the Repurchase Base Price per share. The repurchase price will be rounded down to the nearest $0.01.
Our REIT Manager 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, (iv) following any material decrease in our NAV, or (v) for any other reason.

To learn more about the Income REIT's Share Repurchase Plan, please refer to our full offering circular 

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 REIT's exit strategy?
The Company expects to seek a liquidity transaction 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 Company, consolidation with other REITs managed by our Manager, a listing of the Company on an exchange, or any other similar transaction.

The REIT does not have a stated term. The Income REIT's Manager 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?
The RealtyMogul Income REIT is available to all investors, subject to some regulatory limitations.

The regulators define some investors as either ‘accredited investors’ or ‘non-accredited investors’. Both may invest in the REIT, but the amount of money that you may invest is different depending on whether you are an accredited investor or a non-accredited investor.

Accredited investors are defined as:

  • Individuals earning an annual income of over $200,000 per year for the last two years ($300,000 per year if filing as a couple), with the expectation of maintaining this level of income in the future; OR
  • Having a net worth of more than $1 million (individually or jointly), excluding the value of a primary residence; OR
  • Being a bank, insurance company, registered investment advisor, business development company, or small business investment company; OR
  • Being a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered; OR
  • Being a business in which all the equity owners are accredited investors; OR
  • Being an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
     
If you do not meet the above definition of an accredited investor you are likely a non-accredited investor. If you are a non-accredited investor, you may still invest in the REIT but your investment is limited based on your annual income or net worth. RealtyMogul may help you to calculate your maximum allowable investment amount when you initiate an investment on our platform.

What will the REIT invest in?
The RealtyMogul Income REIT may invest in a variety of property types, including but not limited to, multifamily, office, industrial, self-storage, and retail real estate opportunities. The Income REIT may invest in various commercial real estate-related equity and debt assets across these different property types.

The Income REIT focuses on investing in the following types of assets: mortgage loans, subordinated mortgage loans, mezzanine debt and participations (also referred to as B-Notes), preferred equity interests in companies whose primary business is to own and operate one or more specified commercial real estate projects, debt securities whose payments are tied to a pool of commercial real estate projects (such as commercial mortgage-backed securities (“CMBS”), collateralized debt obligations (“CDO”) and REIT senior unsecured debt), interests in publicly-traded REITs as well as direct interests in real estate that meet certain criteria outlined by the staff of the SEC. We intend to hold at least 55% of the total value of our assets in commercial mortgage-related instruments that are closely tied to one or more underlying commercial real estate projects, such as mortgage loans, subordinated mortgage loans, mezzanine debt and participations, as well as direct interests in real estate that meet certain criteria set by the staff of the SEC.

Historical Performance
CUMULATIVE DISTRIBUTIONS
Cumulative Distributions
Purchase Price
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Per share as of ${purchasePriceDateAlt}
Net Asset Value (NAV)
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Per share as of ${navPriceDate}
LTM Return
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3-Year Return
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5-Year Return
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Lifetime Return
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Consecutive Distribution Periods
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Portfolio Breakdown
Cumulative Distributions
  • Multi-FamilyProperties that have five or more residential units in a single building and may be further classified as garden style, low-rise, or high-rise.
  • OfficeMid-rise or high-rise, downtown or suburban.
  • RetailGrocery-anchored centers, shopping centers, power centers and strip malls.
Cumulative Distributions
  • Joint Venture EquityInvestors in Joint Venture Equity own an interest in an entity (usually an LLC) that invests in the equity portion of a property. After all debt is paid, and any Preferred Equity distributions are made, the Joint Venture Equity investor receives a pro rata portion of a preferred return, cash flow, and any profits upon sale. Joint Venture Equity is the riskiest investment as it has the lowest priority of distributions, although it has the greatest upside potential.
  • Mezzanine DebtSecond in line for repayment are investors in Mezzanine Debt and B Notes. Mezzanine Debt is structured as a loan secured by a pledge of interest in the entity owning the property. In the event of loan default, investors may have the right to foreclose on the interests of the entity and step into ownership of the property, subject to any senior debt. B Notes are secondary tranches of senior loans with an A/B structure, and are secured by the property itself. In the event of loan default, the investors in a B Note may participate in the right to foreclose on the property and receive sale proceeds to repay principal, unpaid interest and any fees, subject to the A Note investor.
  • Preferred EquityInvestors in Preferred Equity investments own an interest in the property and have a priority over the other equity investors to receive distributions of cash flow and capital invested. In the event of loan default, Preferred Equity investors may have the right to take over control and management of the property.
Portfolio
Investment Location Property Type Investment Type Weight
Multiple Cities, TX Retail Preferred Equity 0%
El Paso, TX Multi-family Joint Venture Equity 0%
Virginia Beach, VA Multi-family Joint Venture Equity 0%
Columbus, OH Office Joint Venture Equity 0%
Richmond, VA Multi-family Joint Venture Equity 0%
Lubbock, TX Office Joint Venture Equity 0%
Fenton, MO Multi-family Joint Venture Equity 0%
Creve Coeur, MO Multi-family Joint Venture Equity 0%
Vancouver, WA Multi-family Joint Venture Equity 0%
Vancouver, WA Multi-family Joint Venture Equity 0%
Grove City, OH Multi-family Joint Venture Equity 0%
Georgetown, KY Multi-family Joint Venture Equity 0%
Gresham, OR Multi-family Joint Venture Equity 0%
Cincinnati, OH Mixed-Use Joint Venture Equity 0%
Texas Retail Portfolio
Multiple Cities, TX
Texas Retail Portfolio
Investment Type
Preferred Equity
Property Type
Retail
Invested
3325000
Date Of Investment
7/18/17

Highlights

Senior Loan Originated by Starwood Mortgage Capital LLC ("Starwood")
The preferred equity investment will be subordinate to a senior loan originated by Starwood, which is anticipated for a Commercial Mortgage Backed Security (CMBS) execution

Historical Occupancy
Five of the six assets in the portfolio have been 100% leased since 2011 and portfolio occupancy is at 95% as of July 2017

Additional Equity Infusion
The Sponsor infused an additional $1.3 million into the transaction during the June 2017 refinance

La Privada
El Paso, TX
La Privada
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
4748228
Date Of Investment
5/31/19

Highlights

Cash Flow

The successful execution of the business plan is not overly dependent upon capital improvement implementation. The Property currently features strong in-place cash flow and high occupancy. 

Resilient Market

The Property is situated in a historically resilient market. Per CoStar, El Paso incurred cumulative job losses of less than 3% during the last recession, and the solid base of government jobs in the area should provide a hedge against future economic downturns.

Additional Upside

With below market rents, the Property offers significant rental upside via mark-to-market as well as additional renovation potential in the form of strategic amenitization. 

The Hamptons
Virginia Beach, VA
The Hamptons
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
9477966.34
Date Of Investment
10/8/19

Highlights

Cash Flow & Value-Add Opportunity

The property features in-place cash flow and the potential to increase rents by marking them to market. Additionally, there is the possibility of value creation through a strategic renovation program.

Demand for Multifamily

According to Newmark Knight Frank, the supply of new apartment units in the Virginia Beach submarket has slowed in recent years and demand remains high. Per CoStar, the Hampton Roads market sustains apartment demand because many residents are government employees in the prime renter cohort (20 to 34 years old).

Stable Market

Per CoStar, Virginia Beach fundamentals are stable, and the market continues to grow while vacancy remains low. There has been an inflow of new residents into the Virginia Beach submarket since 2010. Further, the large government employment base lends to this stability, and could hedge against an economic downtown.

Columbus Office Portfolio
Columbus, OH
Columbus Office Portfolio
Investment Type
Joint Venture Equity
Property Type
Office
Invested
7000000
Date Of Investment
11/5/19

Highlights

Cash Flow

The investment was underwritten to provide double-digit cash yield to the REIT, with underwritten annual cash flow ranging from 12.2% and 17.5% and underwritten average cash-on-cash of 15.3%.

Partner

The Real Estate Company is an experienced office operator, as well as a repeat partner of RealtyMogul. It has owned and operated real estate properties with a total basis exceeding $346 million.

Market

The Columbus office market is one of the healthiest in the country thanks to significant employment gains and years of conservative construction (according to CoStar). Over the past five years, the market has experienced average annual rent growth of 5.6% and an average vacancy rate of 5.1%.

Pohlig Box Factory & Superior Warehouse
Richmond, VA
Pohlig Box Factory & Superior Warehouse
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
7424307
Date Of Investment
2/19/20

Highlights

Growing Market and Sub-Market

Per CoStar, Richmond, and the Shockoe-Bottom sub-market in particular, are in the midst of an exceptional growth period. Affordable cost of living, high quality of life, and job growth in high paying sectors are attracting young professionals to the area with strong population growth projected in the near term. 

Management and Value-Add Upside

We believe there is both management upside by raising rents to market rates as well as value-creation potential by refreshing unit interiors, common areas and amenities to lease renovated units at higher rental rates.

Pedestrian Friendly

The properties are adjacent to the only supermarket in the Shockoe Bottom sub-market, a drug store, a coffee shop, and a public transit stop. There is also ground floor retail at the properties which includes a gym and fitness center, a salon, and a laundry pick-up/drop-off. In addition, there are many dining and cultural opportunites, as well as parks and schools within walking distance of the properties.

Lubbock Medical Office Building
Lubbock, TX
Lubbock Medical Office Building
Investment Type
Joint Venture Equity
Property Type
Office
Invested
2926477
Date Of Investment
6/26/20

Highlights

Building Location

The Lubbock Medical Office Building ("The Property") is well located within the Lubbock Medical District, proximal to over 1,100 hospital beds. The Property is adjacent to the largest hospital within the Covenant Health System network, the 394-bed Covenant Medical Center, and their new 150-bed hospital tower expecting completion in winter of 2021.

Credit Tenant

The tenant at the Property is Covenant Health System, whose parent company is Providence St. Joseph Health which has a Moody?s Aa3 rating. Covenant Health System is a dominant healthcare provider in the region; it serves most of the West Texas and New Mexico markets and has a strong presence in Lubbock with a 60% market share. 

NNN Lease 

Under its triple-net lease, the tenant is responsible for all expenses, including repairs and maintenance, capital expenditures, property management fees, and owner?s insurance.

Turtle Creek
Fenton, MO
Turtle Creek
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
6000000
Date Of Investment
1/28/21

Highlights

Market

Jefferson County has been resilient during the COVID-19 crisis. According to the Bureau of Labor Statistics, as of November 2020, the County reported an unemployment rate of 3.8% vs. 6.7% national average. We believe the submarket has weathered the coronavirus pandemic as compared to denser, urban areas.

High Barriers to Entry

The Property is the first new multifamily development in Fenton in over 12 years.  Given its newer build, we believe that it separates itself from the competition in terms of quality and location.  We believe the Property's strong lease-up velocity demonstrates the need for additional rental properties in the area; however, scarcity of land allowed for commercial/multifamily development in addition to strict municipal codes will help prevent an influx of supply for the forseeable future.  There are currently no apartment communities being developed in the immediate area.

Location

The Property benefits from having exceptional access and visibility and is conveniently located near virtually all of St. Louis' major interstates.  Within a ten-mile radius, there are over 175,000 jobs, 6.9 million square feet of retail space within a five-mile radius, as well as a wide variety of nearby amenities.

Kings Landing
Creve Coeur, MO
Kings Landing
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
8000000
Date Of Investment
7/28/21

Highlights

Value-Add

As the only property constructed in the submarket between 2001-2015, Kings Landing is uniquely positioned for a renovation. The business plan is to spend approximately $12,000 per unit to upgrade the interior of the units to include quartz counters, vinyl flooring, modern finishes, and a tech package.

Asset Quality

Kings Landing's construction as a mid-rise asset provides a significant contrast to the majority of Creve Coeur multifamily, which is primarily comprised of 1990s and older vintage, and largely garden-style units, with some high-end construction beginning in 2016. Additionally, the Property is the only property in the comparable set with ground-floor retail spaces.

Market

Kings Landing is in Creve Coeur, MO, an affluent suburb of St. Louis. Creve Coeur is one of the most educated suburbs in St. Louis, with higher education attainment of 68%. It has one of the highest median area incomes in the MSA at $96K, and an unemployment rate of 5.1% compared to 6.1% nationally.

Roosevelt Commons
Vancouver, WA
Roosevelt Commons
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
3209112
Date Of Investment
9/20/21

Highlights

Desirable Product Type

Roosevelt Commons is a brand new, 2020 built property comprised of 36 townhome style units. Interior finishes include stainless steel appliance packages, luxury vinyl plank flooring, and modern flat panel cabinetry amongst various other design touches which allow the property to achieve above market rents.

10-Year Tax Abatement

Eight of the units have been reserved for residents earning 80% Area Median Income (AMI). This qualifies the Property to receive a 10-year tax abatement from Vancouver's MFTE program which runs through the year 2030. By not having to pay taxes on the improvements to the land, the Property averages a tax savings of over $120,000 a year throughout the hold period.

Market

Roosevelt Commons is in Vancouver, a city just north of Portland on the Washington state side of the metro. Being in Washington state, Vancouver has no income tax. With over thirty-one thousand multifamily units, it is the largest submarket in the region. Vancouver's rent growth has outperformed the overall Portland metro for the past six years, and year-over-year submarket gains are significantly stronger than Portland's performance.

Minnehaha Meadows
Vancouver, WA
Minnehaha Meadows
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
3355018
Date Of Investment
9/20/21

Highlights

Desirable Product Type

Minnehaha Meadows is a brand new, 2020 built property comprised of 49 townhome style units. Interior finishes include stainless steel appliance packages, luxury vinyl plank flooring, and modern flat panel cabinetry 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 1,288 square feet and is ideally suited to a growing work from home tenant base.

Cash Flow

The Property has experienced exceptional leasing velocity since construction was completed in June 2020.  Within six months, the property reached 100% occupancy and between March and May of 2021 was averaging ten new leases per month.

Market

Minnehaha Meadows is in Vancouver, a city just north of Portland, Oregon on the Washington State side of the metro. Since Vancouver is located in the Washington State and not Oregon, there is no income tax in Vancouver. With over thirty-one thousand multifamily units, it is the largest submarket in the region. Vancouver's rent growth has outperformed the overall Portland metro for the past six years, and year-over-year submarket gains are significantly stronger than Portland's performance.

Bentley Apartments
Grove City, OH
Bentley Apartments
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
8000000
Date Of Investment
10/13/21

Highlights

New Construction

Bentley Apartments is a 138 unit apartment community built in 2020. Equipped with premium finishes and high-quality construction, the Sponsor believes the Property competes well against the new comparable properties in the submarket.

Cash Flow

The Property was developed within a Community Reinvestment Area and received a 15-year full tax abatement on the improved value of the Property starting in tax year 2021. As a result of the tax abatement, a potential to push rents organically, and the favorable interest rate environment, the Sponsor believes the Property is positioned to have strong cash flow.

Location

Bentley Apartments is located in Grove City, OH a thriving suburb south of downtown Columbus. Through a mix of public-private projects in downtown Grove City, the area has transformed over the past five years and attracted an influx of young professionals. Additionally, the Property is located near several retail, dining, and entertainment options.

Haverford Place
Georgetown, KY
Haverford Place
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
9000000
Date Of Investment
2/2/22

Highlights

Value-Add

Haverford Place, built in 2001, is primed for a value-add business plan. The submarket has exhibited strong demand for premium finishes. The Property is positioned to capture premiums to current rental rates through higher-end interior upgrades such as granite counters, backsplashes, flooring, upgraded lighting and fixtures, and other interior upgrades.

Desirable Product Type

Haverford Place is comprised of 73% large two- and three-bedroom townhomes, which are desirable in this submarket. The unit sizes at Haverford Place are on average 259 SF larger than other nearby comparable properties. Larger unit sizes are highly sought-after due to the increased prevalence of remote working.

Market

Georgetown, KY has seen significant development through recent investment in the Toyota manufacturing plant and public infrastructure throughout the city. There have been new developments such as shopping centers and dining options. Additionally, the submarket is home to Georgetown College, multiple historical reserves and museums, and state-renowned Scott County Community Park.

Edison Apartments
Gresham, OR
Edison Apartments
Investment Type
Joint Venture Equity
Property Type
Multi-family
Invested
5500000
Date Of Investment
3/30/22

Highlights

Market

The Portland-Vancouver-Hillsboro metropolitan statistical area (?MSA?) has recorded cumulative rent growth of 47.2% over the last 10 years, according to CoStar. The submarket of Gresham has exceeded that mark with rent growth of 58.8% over the same period. Over each of the past six years, rent growth in Gresham has been stronger than metro-wide performance in Portland.

Supply Constraint

An average of 27 permits were issued annually totaling 3,230 multifamily units in Multnomah County from 2015 to 2019 compared to 2021 where only two building permits were issued for a total of 352 units, according to JLL. Considering the City of Portland?s implementation of Inclusionary Housing and Urban Growth Boundary programs, we believe the MSA is one of the more challenging markets to develop in across the country.

Desirable Product Type

Edison offers desirable open-concept floorplans with modern design touches. All units have in-unit washers and dryers, as well as air conditioning. 60 of the 64 units are large 2-bed/2-bath, and the average unit is 900 square feet. Compared to the City of Portland's average apartment size of 765 square feet, renters at the Edison have over 17% more living space on average.

Columbia Square
Cincinnati, OH
Columbia Square
Investment Type
Joint Venture Equity
Property Type
Mixed-Use
Invested
4000000
Date Of Investment
8/23/22

Highlights


Strong Sub-Market

The Property is in a well located, highly visible location in Columbia Tusculum, Ohio, the oldest and one of the most prestigious neighborhoods in Cincinnati, Ohio. According to CoStar, submarket vacancy is 0.8% and 5.3% for retail and office, respectively, in a submarket that has 4.6 million square feet of retail and 3.9 million square feet of office. Additionally, we believe that this tenant mix is ideally suited for this high-income neighborhood, which has over a $146,000 average household income within a 1-mile radius, according to CoStar.

Operational Upside

We believe there is an opportunity to improve the Property through capital expenditures and property improvements as well as renewals of existing tenancy at the same or higher rental rates. According to CoStar, rents for the retail and office suites at the Property are 6% and 29% below submarket rents as of August 2022, respectively.

Highly Occupied

As of August 2022, the Property is 100% occupied by a diverse roster of tenants with a weighted average lease term of 3.1 years. The office building at the Property totals 48,137 square feet and is anchored by IPSOS SA, a French market research and consulting firm with 17,000 employees worldwide and a market capitalization of approximately $2 billion. IPSOS comprises 33,284 square feet and is leased through August 2026 at a below market rental rate, according to CoStar. The three retail buildings at the Property total 25,661 square feet and include retail uses that we believe are e-commerce resistant, such as a bank, gym, hair salon, and Verizon store as well as several restaurants.
Investment Location Property Type Investment Type Invested
San Antonio, TX Office Mezzanine Debt 3400000
Centennial, CO Office Mezzanine Debt 2300000
Pensacola, FL Retail Mezzanine Debt 1125000
Suwanee, GA Office Senior Debt 1500000
Jonesboro, GA Retail Preferred Equity 1250000
Corona, CA Retail Mezzanine Debt 3549300
Chula Vista, CA Multi-family Senior Debt 4490000
San Francisco, CA Mixed-Use Senior Debt 4750000
La Habra, CA Retail Preferred Equity 1900000
Tucson, AZ Multi-family Preferred Equity 2275000
Virginia Beach, VA Office Preferred Equity 1700000
Hanford, CA Retail Senior Debt 1900000
Garden Grove, CA Self-storage Mezzanine Debt 3915000
Brooklyn, NY Mixed-Use Senior Debt 1350000
Waterbury, CT Retail Preferred Equity 3000000
Riverside, CA Office Mezzanine Debt 2500000
West Chester, PA Flex Preferred Equity 1450128
Fresno, CA Retail Senior Debt 3600000
Portland, OR Office Senior Debt 3950000
Syracuse, NY Flex Preferred Equity 1500000
Las Vegas, NV Office Joint Venture Equity 6000000
Plano, TX Multi-family Preferred Equity 2323030
Parkway Plaza
San Antonio, TX
Parkway Plaza
Investment Type
Mezzanine Debt
Property Type
Office
Invested
3400000
Date Of Investment
2/17/17
Date Completed
12/30/19

Investment Summary

•    The Income REIT has acquired a $3,400,000 mezzanine debt investment related to the refinancing of a 189,388 square foot five-building office portfolio located in San Antonio, TX.
•    The mezzanine debt investment has a fixed interest rate of 10.0%.
•    The refinance allowed the Sponsor to pay off the existing senior loan, buyout an existing equity partner, and secure additional leasing dollars for future leasing. The Sponsor is retaining $4.8 million of retained cash equity in the transaction. 
•    The Sponsor plans to exit the investment in three years. 
•    Since 2011, the Sponsor has previously acquired 19 assets with a combined purchase price of over $290 million, including eleven office assets totaling approximately $249 million. 
•    Per Costar, the asset is located within the Northwest submarket of the San Antonio office market. The Northwest submarket has posted approximately 616,000 square feet of absorption over the past twelve months ending in December 2016, a figure that ranks first of all San Antonio submarkets over the span. 

 

Highland Place
Centennial, CO
Highland Place
Investment Type
Mezzanine Debt
Property Type
Office
Invested
2300000
Date Of Investment
3/23/17
Date Completed

Investment Summary

  • MogulREIT I has acquired a $2,300,000 mezzanine debt investment related to the refinancing of a 138,771 square foot three-story office building located in Centennial, CO. Centennial is located approximately 15 miles south east of Denver. 
  • The mezzanine debt investment has a fixed interest rate of 10.0% and a remaining term of approximately 31 months as of the acquisition date of March 23, 2017. 
  • The refinance allowed the Sponsor to pay off the existing senior loan, repatriate a portion of the initial equity contribution, and secure dollars for tenant improvements and capital expenditures related to the largest tenant’s recent expansion and extension. The Sponsor is retaining approximately $3.2 million of retained cash equity in the transaction.
  • Occupying nearly 45% of the square footage, Shane Co. has been at the Property since 2007 and recently executed a lease extension, extending their lease to March 2026 and expanding their square footage by 7,700 SF. Shane Co. is the largest privately owned jeweler in the United States and this location is ideally situated less than three miles away from their flagship retail store in nearby Greenwood Village.
  • Other main tenants at the Property include TCF National Bank (19.5% of gross leasing area ("GLA")), Open Technology Solutions (17.3% of GLA), and Yardi Systems (15.0% of GLA).
  • Since 2011, the Sponsor has previously acquired 19 assets with a combined purchase price of over $290 million, including eleven office assets totaling approximately $249 million. This includes Parkway Plaza, which was recently added to MogulREIT I. 
  • Per Costar, the asset is located in the Panorama/Highland Park submarket in the Denver office market. As of the fourth quarter, the Panorama/Highland Park submarket ranks second of 34 Denver submarkets in vacancy rate (3.1%) and 12-month absorption (447,000 square feet). 
Pensacola Marketplace
Pensacola, FL
Pensacola Marketplace
Investment Type
Mezzanine Debt
Property Type
Retail
Invested
1125000
Date Of Investment
6/12/17
Date Completed
3/31/21

Investment Summary

  • MogulREIT I has acquired a $1,125,000 mezzanine debt investment related to the refinancing of a 49,768 square foot anchored retail center located in Pensacola, FL (the “Property”).
  • The mezzanine debt investment has a fixed interest rate of 9.75% and a remaining term of approximately 34 months as of the acquisition date of June 12, 2017.
  • The refinance allowed the Sponsor to pay off the existing senior loan and replace it with a new senior loan and mezzanine loan in order to provide more flexible debt on the asset in anticipation of a sale in approximately three years. The Sponsor did not cash out any equity in the transaction and currently has approximately $830,000 of retained equity in this transaction.
  • The Property is currently 100% leased to Ross Dress for Less (54% of the rentable square footage, “RSF”), Office Depot (42% of RSF), and T-Mobile (4% of RSF).
  • Ross Dress for Less (“Ross”) has been at the Property since early 2011 and possesses an investment grade credit rating (BBB+ by Standard & Poor’s). Office Depot has been at the Property since early 2008 and recently renewed their lease in May 2016 to extend their lease expiration date through February 2023. Both tenants lease expirations extend beyond the initial loan term.
  • Since 2011, the Sponsor reports that they have acquired over $700 million of retail, office, multifamily, and medical buildings across the United States. Cumulatively, the principals of the firm have over 80 years of real estate experience.
Northside at Johns Creek
Suwanee, GA
Northside at Johns Creek
Investment Type
Senior Debt
Property Type
Office
Invested
1500000
Date Of Investment
6/20/17
Date Completed
8/30/19

Investment Summary

  • MogulREIT I has acquired a $1,500,000 junior participation in a loan secured by a first deed trust related to the refinancing of a 52,090 square foot Class-A medical office building located in Suwanee, GA (the “Property”).
  • The debt investment has a fixed interest rate of 14.0% and a remaining term of approximately 24 months as of the acquisition date of June 20, 2017. 
  • The Property is currently 100% master leased to Northside Hospital. Northside is a leading healthcare system in Georgia with three hospitals and a leading presence across the metro Atlanta area. The Property was originally a build-to-suit for Northside Hospital and was completed in 1999.
  • At the time of origination, the property was 58% occupied with 80% of the property remaining on the original master lease which runs through December 2019. At the close of the refinance, a new lease was executed with Northside Hospital that extended the 20% of their lease that is no longer covered under the original master lease through May 2027 and released a portion of the currently encumbered space for market leasing by the borrower. Northside Hospital is expected to continue to pay rent on the unoccupied spaces until they relet or until the original master lease expires in December 2019.
  • The property management and leasing team, an affiliate of the borrower, is one of the largest private owner-operators of office properties in the Atlanta MSA, having completed over 50 investments to date including the sale of a 28-property portfolio to Blackstone in 2015.
  • The asset was originally purchased in 2004 and the Borrower reports that they have added an additional $1.1 million in equity since then. $800,000 of additional fresh equity was injected into the deal during the June 2017 refinance.
  • In a previous financing with a major bank, the Property was cross-collateralized and cross-defaulted with another asset that suffered the loss of a major tenant. That loan entered special servicing in early 2012 and was eventually sold in December 2014. The sponsor filed bankruptcy to protect the assets and ultimately sold the problem asset, bringing the loan out of default. 
Crossroads South
Jonesboro, GA
Crossroads South
Investment Type
Preferred Equity
Property Type
Retail
Invested
1250000
Date Of Investment
8/3/17
Date Completed
6/24/19

Investment Summary

  • MogulREIT I has acquired a $1,250,000 preferred equity investment related to the acquisition of a 207,404 square foot grocery-anchored retail shopping center located in Jonesboro, GA (the “Property”). Jonesboro is approximately 16 miles south of Atlanta.
  • The Property is located approximately seven miles south of Atlanta’s Hartsfield Jackson International Airport, named the busiest passenger airport in the world in 2016 for the 19th year in a row, with over 100 million annual passengers and an estimated $35 billion regional economic impact annually (according to a recent CNN report).
  • The preferred equity investment (the “Investment”) has a fixed interest rate of 12.0% and a remaining term of approximately 36 months as of the acquisition date of August 3, 2017. The Investment also features two 1 year extensions.
  • The Investment is interest-only throughout the entirety of the initial 36 month term.
  • As of July 2017, the Property was 91% leased to 34 tenants and anchored by Kroger, Rose’s Express, Badcock Furniture and Planet Fitness. The tenants occupy 28.5% of rentable square footage (“RSF”), 16.4% of RSF, 13.8% of RSF, and 9.6% of RSF, respectively.
  • Kroger, who occupies 59,134 square feet, is one of the world's largest grocery retailers with a market capitalization of $21.3 billion and annual sales in 2016 of more than $115.3 billion, according to its annual reports. Kroger has nearly 2,800 grocery retail stores in 35 states under nearly two dozen banners.
  • Upon acquisition the Sponsor intends to gradually increase cash flow by leasing up the remaining vacant space and increasing rents upon renewal for existing tenants who are currently paying below-market rent. Additionally, the Sponsor intends to pursue opportunities to optimize cash flow and/or proceeds on several outparcels on the site, which they believe are currently being underutilized.   
  • The Sponsor is a vertically-integrated real estate investment and property management company, whose partners have over 80 years of combined experience in real estate investment management, commercial property management and leasing. They own and operate 32 class A and B grocery and discount anchored neighborhood and community shopping centers totaling 3.2 million square feet, primarily located in secondary markets in the Southeast US.
Corona Marketplace
Corona, CA
Corona Marketplace
Investment Type
Mezzanine Debt
Property Type
Retail
Invested
3549300
Date Of Investment
8/17/17
Date Completed
7/2/19

Investment Summary

  • MogulREIT I has acquired a $3,549,300 mezzanine debt investment related to the acquisition and redevelopment of a proposed 114,858 square-foot community center located in Corona, CA.
  • The mezzanine debt investment is interest-only throughout the full 84 month term of the loan.  
  • Approximately $661,000 of the mezzanine loan is recourse to the sponsorship group. The Sponsor has a 25 year track record at a prominent real estate firm and has equity interests in over $250MM of assets. The Sponsor states he has personally brought the equity to this transaction without syndicating any portion to third parties.
  • The Property is currently 64% pre-leased to four tenants including Chuze Fitness and Aldi.
  • Chuze Fitness (“Chuze”) is a growing gym operator that was founded in 2008 in Carlsbad, California and is family owned and operated. According to the company website, as of August 2017, Chuze has twenty-three total gyms: eight gyms in San Diego County, four gyms in Orange County, two in the Inland Empire, four gyms in Tucson and five gyms in the Denver area.
  • Aldi is a leading global discount supermarket chain with almost 10,000 stores in 18 countries. The chain is based in Germany and founded in 1946 by brothers Karl and Theo Albrecht. It is one of the world's largest privately owned companies.  According to the company website, Aldi has doubled its presence in the United States over the past decade, to bring its total number of stores to 2,000, not including its associated Trader Joe’s brand.  In June 2017, the company announced they plan to invest $5 billion to open nearly 900 stores and remodel hundreds more in the United States over the next five years.
  • The mezzanine loan proceeds will be used to partially fund a $9.4 million capital expenditure plan that the sponsor intends to execute to redevelop the property to meet Class-A standards. The capital expenditure plan includes the renovation of the main building’s interior and exterior, implementation of seismic and structural upgrades, and the addition of new shop space and a new fast food outparcel.
  • The mezzanine loan will be disbursed in phases upon completion of certain benchmarks by the sponsor. Of the total $3,549,300, approximately $819,196 was funded at close and the additional $2,730,104 will be distributed throughout the term of the loan.
  • The mezzanine debt investment has a fixed interest rate of 14.0% and a remaining term of approximately 82 months as of the acquisition date of August 17, 2017. 
378 Moss St
Chula Vista, CA
378 Moss St
Investment Type
Senior Debt
Property Type
Multi-family
Invested
4490000
Date Of Investment
11/15/17
Date Completed
2/6/20

Investment Summary

  • MogulREIT I has acquired a $4,490,000 senior loan investment (the “Investment”) related to the refinance and renovation of a 16-unit multifamily property located in Chula Vista, CA. (the "Property").
  • The business plan is to rehabilitate the property by addressing all deferred maintenance items and substantially improving and modernizing the townhomes' interiors, exteriors, and landscaping.  Upon completion of the capital expenditure plan, the Property is anticipated to offer unique features including townhouse style units, a two-car garage, gated entry, and a dog run.
  • The Borrower acquired the asset in April 2017 from the original owner and anticipates using the refinance proceeds to (1) pay off an existing seller carry and (2) to repair and renovate the Property.  
  • The Borrower is a San Diego native with over ten years of real estate experience and has facilitated over $200 million in real estate transactions over his career. The Property will be managed by an affiliate of the Sponsor.
  • The initial term of the loan is 24 months with one 12-month extension option. 
  • The Investment has a remaining term of 24 months as of the acquisition date of November 15, 2017.   
  • The Investment is interest-only throughout the entire term.   
2395 29th Ave
San Francisco, CA
2395 29th Ave
Investment Type
Senior Debt
Property Type
Mixed-Use
Invested
4750000
Date Of Investment
2/23/18
Date Completed
7/29/20

Investment Summary

  • The Income REIT I has acquired a $4,750,000 senior loan investment (the “Investment”) related to the acquisition and renovation of a mixed use property located in the Sunset District of San Francisco, CA (the "Property"). The Property features 11 multifamily units above two commercial retail spaces on the ground floor. 
  • The business plan is to add value to the Property by converting the five existing garage spaces into two additional multifamily units via the City of San Francisco's Accessory Dwelling Unit ("ADU") ordinance. The Real Estate Company also plans to convert four currently vacant one-bedroom/one-bathroom units into two-bedroom/one-bathroom units. 
  • The Real Estate Company acquired the asset in February 2018 and intends to complete the proposed business plan, stabilize the Property, and exit the investment before loan maturity in three years. 
  • The Real Estate Company is based locally in San Francisco and focuses on finding and executing value-add multifamily and mixed-use real estate opportunities in primary urban cores within the Bay Area. 
  • The initial term of the loan is 36 months with one 12-month extension option. 
  • The Investment has a remaining term of 36 months as of the acquisition date of February 23, 2018.
  • The Investment is interest-only throughout the entire term.
Harbor Hills Plaza
La Habra, CA
Harbor Hills Plaza
Investment Type
Preferred Equity
Property Type
Retail
Invested
1900000
Date Of Investment
3/16/18
Date Completed
1/31/20

Investment Summary

  • MogulREIT I has acquired a $1,900,000 preferred equity interest (the "Investment") related to the acquisition and redevelopment of an existing 27,080 square feet retail center located in La Habra, CA (the "Property").
  • Upon close, the Real Estate Company intends to execute a value-add business plan which is expected to renovate and reposition the Property into a lifestyle center tenanted with popular modern food concepts which cater to the surrounding demographics. The business plan includes a $1,100,000 renovation budget and anticipated future leasing dollars. 
  • The Real Estate Company intends to vacate the Property in its entirety. MogulREIT's investment has been structure to provide current distributions of its accrued preferred return.  
  • The preferred equity will be contribued in phases to the Real Estate Company upon completion of certain benchmarks. Of the total Investment, approximately $1,500,000 million was funded at close and the additional $400,000 is anticipated to be distributed throughout the term of the hold period for capital expenditures. The senior lender has additional funds reserved for the remainder of the capital expenditure budget, as well as all anticipated future leasing costs. 
  • The Real Estate Company is based in Southern California. The two principals grew up just a few miles from the Property and thus have extensive knowledge of the immediate area.
  • The Real Estate Company is personally funding all of the equity. 
  • The Investment has a remaining term of approximately 48 months as of the acquisition date of March 16, 2018. 
Orange Tree Village
Tucson, AZ
Orange Tree Village
Investment Type
Preferred Equity
Property Type
Multi-family
Invested
2275000
Date Of Investment
3/16/18
Date Completed
7/16/19

Investment Summary

  • RealtyMogul Income REIT has acquired a $2,275,000 preferred equity interest (the "Investment") related to the acquisition and renovation of a 110-unit apartment community located in Tucson, AZ (the "Property").
  • The Real Estate Company’s business plan is to bring in-place units to market rents and renovate all 110 units over a three-year period. The Real Estate Company has budgeted approximately $2.1 million ($19,000/unit) to be allocated towards interior and exterior capital improvements. Unit interior upgrades include new countertops, doors, flooring and refaced cabinets. Exterior/amenity improvements are to consist of new paint and landscaping, roof repairs, new fitness center and renovations to the clubhouse and pool area. Post-renovated rent increases are anticipated to be $1,127 per unit.
  • The Property was built in 1981 and is comprised of one, two- and three-bedroom floor plans with an average unit size of 1,274 square feet. 
  • As of March 2018, the property is 87% occupied with an average in-place rental rate of $978 per unit.
  • The Real Estate Company specializes in value-add transactions throughout the Western US with a portfolio of 1,272 multifamily units, 415 of which are in the Tucson market.
  • The Real Estate Company has secured a senior loan of $9,100,000, which includes a $2,101,000 holdback for property renovations. The loan has a three-year term with two 12-month extensions.
  • The investment has an estimated hold period of approximately three years as of the acquisition date of March 16, 2018.
Amerigroup HQ
Virginia Beach, VA
Amerigroup HQ
Investment Type
Preferred Equity
Property Type
Office
Invested
1700000
Date Of Investment
5/21/18
Date Completed
6/9/20

Investment Summary

  • MogulREIT I has acquired a $1,700,000 preferred equity interest (the "Investment") related to the acquisition of a 70,760 square foot office building located in Virginia Beach, VA (the "Property"). 
  • The Real Estate Company’s business plan is to hold the Property through tenant renewal, then sell or refinance the asset with a new five-year term.  
  • The Property is currently 100% leased by a single tenant, Amerigroup. Amerigroup is a wholly owned subsidiary of Anthem Group, a publically traded company that has provided a corporate guarantee for the lease through the entire lease term.  Amerigroup has been headquartered at the Property since 1995.
  • The Property was built in 1989 and is a 4-story class A office building. Amenities at the Property include ample parking, a café and multiple dining areas.
  • The Real Estate Company reports over 30 years of combined experience in real estate and private equity. Individually, they report having acquired and overseen asset management of over $3.5 billion in real estate and provided capital markets advisory services on over $2.0 billion of investments across a multitude of assets including multifamily, office, industrial, hospitality and lodging, and land developments.
  • The Real Estate Company has secured a senior loan of $6,500,000. The loan has a three-year term and a 30-month extension.
  • The Investment has an estimated hold period of approximately three years as of the acquisition date of 4/12/2018.  
Hanford Retail Center
Hanford, CA
Hanford Retail Center
Investment Type
Senior Debt
Property Type
Retail
Invested
1900000
Date Of Investment
4/3/17
Date Completed
12/15/17

Investment Summary

  • On December 12, 2017, the bridge loan originated on the Hanford Retail Center in Hanford, California (the “Hanford Loan”) was paid in full.  At the time of payoff, the balance of the Hanford Loan was $1,906,245.30, which included $1,900,000 in outstanding principal plus $6,245.30 in accrued interest through December 12, 2017.  Although the maturity date of the Hanford Loan was October 1, 2018, the borrower executed on his business plan and elected to prepay the loan earlier than anticipated.

Original Investment Highlights

  • MogulREIT I has acquired a $1,900,000 bridge loan investment to facilitate the refinancing of an 83.8% occupied 29,381 square foot retail building that is within a shopping center that is anchored by Big Lots and a regional grocery store.
  • The interest-only bridge loan has a floating interest rate of 8.5% plus one-month LIBOR with a floor rate of 1.0%. 
  • The term of the loan is 18 months with one six-month extension which may be exercised by the Borrower upon meeting conditions to extend.
  • Fitness Evolution, the largest tenant, has executed a 15-year lease agreement to occupy 51.0% of the leasable square footage. Fitness Evolution has undergone rapid growth in the past few years and now has 50 clubs across five states with 37 locations in Northern California.  
  • The Borrower has agreed to fund approximately $487,000 in tenant improvements, or $32.50 per square foot. As of April 1, 2017, tenant improvements were underway. 
  • The Borrower intends to refinance MogulREIT I, LLC out of the transaction once the main tenant’s rental concessions have burned off, which coincides with the loan maturity date. ?
  • The refinance allowed the Borrower to pay off the existing senior loan, secure dollars for tenant improvements and capital improvements to the common areas, as well as to fund an interest reserve that will cover the period until the expiration of Fitness Evolution’s free rent period. The Borrower will be retaining approximately $600,000 of cash equity in the deal.
  • The loan is full recourse to the Borrower and includes a carveout guaranty for bad boy acts, environmental matters, and a failure to meet the conditions necessary to fund Fitness Evolution’s tenant improvements. 
  • Since 2013, the Borrower has acquired four commercial properties in the Fresno market including the acquisition of the Big Lots building, the junior anchor, on the adjacent parcel within the same shopping center.  
California Self-Storage Facility
Garden Grove, CA
California Self-Storage Facility
Investment Type
Mezzanine Debt
Property Type
Self-storage
Invested
3915000
Date Of Investment
8/19/16
Date Completed
3/29/17

Investment Summary

  • This investment has paid off on March 29, 2017.
  • The borrower paid the loan balance in full in the amount of $3,915,000, plus $137,569 in interest. The interest payment included accrued interest through March 29, 2017 and a prepayment premium of $116,036 for the period from March 29, 2017 through July 4, 2017. As contemplated in the business plan, the borrower successfully converted the industrial building into a self-storage facility and sold the asset, using a portion of the sale proceeds to pay the mezzanine loan in full.  All interest payments and yield maintenance were paid in full during the investment period, amounting to an 11% interest received per annum.  This interest-only loan did not include any loan amortization.

Original Investment Highlights

  • MogulREIT I has acquired a $3,915,000 mezzanine loan to finance the conversion of an existing industrial asset to a two-level 896-unit self-storage facility in Garden Grove, California. 
  • The investment has a 11% fixed interest rate through July 2018 and a 12.5% fixed interest rate for the remaining 60 months.
  • The property was originally built in 1973 and is situated on a 3.30-acre site. The sponsor of the project intends to perform extensive improvements and convert the property from industrial to self-storage. The first floor will be 383 units and the second floor will be climate controlled with 513 units.
  • The sponsor and its affiliates have designed, developed, owned and managed approximately 100 self-storage facilities.  Furthermore, they own another storage property close to this property in Westminster.
  • The sponsor plans to sell the property after the conversion and has an executed a (non-binding) letter of intent with a self-storage REIT. In the event it cannot sell the property upon conversion, we believe it is equipped to lease up and manage the asset during any extended marketing period. 
Wyckoff Avenue Apartments
Brooklyn, NY
Wyckoff Avenue Apartments
Investment Type
Senior Debt
Property Type
Mixed-Use
Invested
1350000
Date Of Investment
6/20/17
Date Completed
6/13/18

Investment Summary

  • The junior participation loan related to the subject investment (below) was paid off in full on June 13, 2018. 
  • The payoff of $1,355,488 included the outstanding principle of the participation loan of $1,350,000 and accrued interest of $5,488 through June 13, 2018. As contemplated in the business plan, the sponsor used the loan and other sources of capital to fund the completion of an existing renovation plan and repay a construction loan nearing maturity secured by the portfolio. All interest payments were paid in full during the investment period, equating to an interest rate of 11.75% for the first six months, and 12.25% for the remaining six months. 

Original Investment Highlights

  • MogulREIT I has acquired a $1,350,000 junior participation in a loan secured by a first mortgage related to the refinancing and redevelopment of a four-property portfolio located in the Bushwick neighborhood of Brooklyn, NY (the “Properties”).
  • The 12-month loan has a fixed interest rate of 11.75% throughout the first six months and 12.25% through months seven to twelve. The loan features two six-month extensions at 12.75% and 13.25%, respectively. The investment has a remaining term of approximately 12 months as of the acquisition date of June 20, 2017. 
  • The loan will be used to fund the completion of an existing renovation plan and retire a construction loan nearing maturity. The Sponsor intends to renovate the exterior, make structural improvements, and reconfigure units. All construction plans have been approved by the city and renovations are currently underway.
  • The Properties are within walking distance of multiple subway stops including the Myrtle ? Wyckoff Avenue subway station (L train ? one block) and the Seneca Avenue subway station (M train ? four blocks).
  • The Sponsor has over 12 years of experience as owners/operators in the Brooklyn market. The Sponsor reports that they have a current portfolio of 41 properties totaling over 445 multifamily units and over 450,000 commercial square feet. They estimate their assets under management to be $512 million.
  • The Properties were originally purchased in 2015 and over $140,000 of additional equity was added during the recent June 2017 refinance. The Sponsor and its limited partners have contributed over $4 million of equity, or roughly 32% of total capitalization.        
Naugatuck Valley Shopping Center
Waterbury, CT
Naugatuck Valley Shopping Center
Investment Type
Preferred Equity
Property Type
Retail
Invested
3000000
Date Of Investment
3/27/18
Date Completed
3/16/20

Investment Summary

  • MogulREIT I has acquired a $3,000,000 preferred equity investment related to the acquisition of a 382,884-square foot retail center in Waterbury, CT (the “Property”). The Property consists of three multi-tenant strips (totaling 17 suites), three out parcels, and a gas station, situated across 50.5 acres.
  • The business plan is to acquire a well-maintained retail asset with value-add potential at a discount to replacement cost.  The Real Estate Company plans to add value to the Property by addressing tenant improvements and leasing commissions associated with a retention and lease-up strategy. As of March 2018, the Property is 77.1% leased to tenants including Walmart (on a ground lease) and Stop & Shop. Wal-Mart Stores, Inc. operates 11,593 stores, and occupies 37% of the Property. The Stop & Shop Supermarket Company is one of the region's largest supermarket chains, with approximately 375 outlets, and occupies 18% of the Property.
  • The Real Estate Company secured the Property in March 2018 and, upon stabilization, plans to exit this investment via sale or refinance in five years or less. 
  • The Real Estate Company is based in New York and focuses on finding and executing on commercial investment opportunities primarily in the New York market.
  • The preferred equity investment is interest-only throughout the entire term.
Riverside Office Portfolio
Riverside, CA
Riverside Office Portfolio
Investment Type
Mezzanine Debt
Property Type
Office
Invested
2500000
Date Of Investment
10/22/18
Date Completed
3/6/20

Investment Summary

  • RealtyMogul Income REIT  has provided a $2,500,000 mezzanine debt loan (the "Investment") related to the acquisition and renovation of a five-building, 223,711 square foot office portfolio in Riverside, CA (the "Portfolio").
  • The Real Estate Company’s business plan is to execute a lease-up of six suites between 2,000 and 7,000 square feet and one 12,000-square foot suite, as well as a renovation of the common areas. The Real Estate Company has budgeted approximately $3.4 million to be allocated towards tenant improvements and leasing commissions and $1,000,000 for common area renovation.
  • The Portfolio was built between 2003 and 2006 and is comprised of four three-story buildings and one single-story building. 
  • As of October 2018, the Portfolio is 85% occupied with an average in-place rental rate of $27.81 per square foot.
  • The Real Estate Company specializes in investments throughout the Western US, with a focus on Arizona, California, Colorado, Nevada and Texas, with a portfolio of 1.5 million square feet of office, multifamily and hotel properties.
  • The Real Estate Company has secured a senior loan of $39,625,000, which includes a $6,120,000 holdback for tenant improvements, leasing commissions, and common area renovations. The loan has a two-year term with three 12-month extensions.
  • The investment has an estimated hold period of approximately two years as of the acquisition date of 10/22/2018.
Animas Flex
West Chester, PA
Animas Flex
Investment Type
Preferred Equity
Property Type
Flex
Invested
1450128
Date Of Investment
1/11/17
Date Completed
9/18/18

Investment Summary

  • On September 18, 2018, the sponsor under the preferred equity investment we acquired on January 11, 2017 relating to the acquisition of the Animas Building, a 111,451 square foot office/warehouse/production property located in West Chester, Pennsylvania, paid off the balance in full in the amount of $873,832, which included $869,521 in outstanding principal plus $4,311 in accrued interest through September 18, 2018.
  • The property was 100% leased to Animas Corporation, its sole tenant, through 2021 under a triple-net lease. Animas Corporation designs, develops and distributes insulin pumps to individuals with diabetes, and was acquired by Johnson & Johnson in 2006 for over $500,000,000. On October 5, 2017, Animas Corporation announced that it would discontinue the production of insulin pumps. Shortly thereafter, the sponsor alerted our Manager that Animas Corporation would be vacating by December 31, 2018. In order to mitigate the risks associated with re-tenanting the building and limit potentially negative exposure, our Manager determined that the best course of action for investors is to exit the investment on the condition that the full principal and all accrued interest was paid through the exit date.

Original Investment Highlights

  • MogulREIT I has acquired a $1,450,128** preferred equity investment related to the acquisition of a 111,451 square foot flex building that is 100% leased to the Animas Corporation on a triple net basis through March 2021.  
  • The Animas Corporation is a wholly owned subsidiary of Johnson & Johnson and specializes in the design, development, and distribution of insulin pumps for patients with diabetes. Johnson & Johnson acquired Animas in a cash-for-stock merger for an estimated $518 million in 2006. 
  • The preferred equity investment has a fixed preferred return of 10.5%. With nearly four years of term remaining, the preferred equity investment fully amortizes in October 2020, five months prior to the tenant’s lease expiration date.  
  • The Animas Corporation has leased the premises since 2003 and their lease features annual increases of approximately 3.0%. 
  • The sponsor and its affiliates have previously acquired 12 assets with a combined value of $56 million, and specialize in acquiring office and retail assets with long term investment objectives.  This is Realty Mogul’s second transaction with the sponsor. Synchrony Financial, the first transaction with the sponsor, was previously acquired by MogulREIT I. 
  • The Sponsor plans to hold the asset long term. 
  • The lease is a triple-net lease. As typical with such leases, the tenant carries all property taxes, insurance, and maintenance expenses, typically resulting in lower landlord expenses when compared to other types of leases. 
Ashlan Park Shopping Center
Fresno, CA
Ashlan Park Shopping Center
Investment Type
Senior Debt
Property Type
Retail
Invested
3600000
Date Of Investment
11/19/18
Date Completed
4/17/20

Investment Summary

  • MogulREIT I has provided a $3,600,000 secured second mortgage (the "Investment") related to the acquisition of an existing 153,840 square foot grocery anchored retail center located in Fresno, CA (the "Property").
  • The Property is currently 91% leased to a diversified rent roll that provide a variety of uses to customers including grocery, discount shopping, gasoline, and fast food. The tenant roster includes SaveMart, Starbucks, Dollar Tree, and dd's Discounts. 
  • Dollar Tree and dd's Discounts comprise roughly 20% of the Property's rentable square footage and possess investment grade credit ratings. 
  • Upon close, the Real Estate Company intends to execute a value-add business plan to sell off individual outparcels before selling or re-financing the remaining collateral. 
  • The Real Estate Company is based in the Central Valley and reports a real estate portfolio of over $136 million. The Real Estate Company has gone full cycle on another $41 million of real estate properties. 
  • The Investment has a remaining term of approximately 21 months as of the acquisition date of November 15, 2018. 
Portland Office
Portland, OR
Portland Office
Investment Type
Senior Debt
Property Type
Office
Invested
3950000
Date Of Investment
11/27/18
Date Completed
10/15/20

Investment Summary

  • MogulREIT I has acquired a $3,950,000 senior mortgage loan in connection with the acquisition of a 20,000 square-foot Class C office building located in Portland, Oregon.
  • At closing, the property was 100% owner-occupied by the seller.  The borrower executed a 10-year lease for the entire building with American Medical Concepts (AMC), a medical device company located in nearby Wilsonville, Orgeon.
  • The business plan is to (i) acquire the property and execute a light capital improvement plan to prepare AMC's space for occupancy, (ii) deliver the space to AMC per the lease agreement and (iii) refinance the senior loan in order to hold the property long-term for cash flow.
  • The initial term of the loan is 36 months with one six-month extension option. 
  • The Investment is interest-only throughout the entire term.   
JADAK HQ
Syracuse, NY
JADAK HQ
Investment Type
Preferred Equity
Property Type
Flex
Invested
1500000
Date Of Investment
6/28/17
Date Completed
6/3/19

Investment Summary

  • MogulREIT I has acquired a $1,500,000 preferred equity investment related to the acquisition of a 55,000 square foot Class-A flex building located in Syracuse, NY (the “Property”).
  • The preferred equity investment has a fixed interest rate of 11.0% and a remaining term of approximately 60 months as of the acquisition date of June 28, 2017. 
  • The preferred equity investment features 24 months of interest-only followed by a 10-year amortization schedule.
  • The Property is currently 100% leased to JADAK Technologies (“JADAK), a wholly-owned subsidiary of Novanta, Inc. (“Novanta”), on a NNN basis through 2029. The Property serves as JADAK’s headquarters and primary manufacturing hub.
  • JADAK provides machine vision, RFID, barcode scanning, printing, and color and light measurement products and services for original equipment manufacturers (OEMs). The company designs and manufactures embedded detection and analysis solutions to help customers solve unique inspection, tracking, scanning, and documenting challenges in the healthcare market.
  • The 55,000 square foot flex building consists of 40,000 square feet of office space and 15,000 square feet of industrial space. The industrial portion of the building was originally developed in 2008 as a build-to-suit. The remaining 40,000 square feet of office space was built as part of the tenant’s expansion in 2014.
  • JADAK was acquired by Novanta in 2014 for $93.7 million. As of March 2017, Novanta had a market capitalization of approximately $930 million. 
NV Energy NNN
Las Vegas, NV
NV Energy NNN
Investment Type
Joint Venture Equity
Property Type
Office
Invested
6000000
Date Of Investment
7/9/20
Date Completed
12/31/21

Investment Summary

  • On July 9, 2020, we acquired a $6MM investment in NV Energy NNN, a 292,000 square-foot single-tenant office property 100% leased to NV Energy, a Berkshire Hathaway subsidiary.

  • We purchased this investment at the height of the pandemic, and we strategically targeted this asset due to its long-term lease with high-quality tenancy to provide cash flow for the REIT.

  • On December 31, our investment was paid off via an equity redemption by an affiliate of the Sponsor in the amount of $10,146,051.

  • The initial underwriting for the Property projected a REIT-level internal rate of return (“IRR”) of 13.4%, a 2.0x equity multiple and a 10.8% average cash-on-cash return throughout a seven-year hold period. The investment achieved an approximately 53.2% REIT-level IRR, a 1.8x equity multiple and a 119.9% average cash-on-cash return over the 1.5-year hold period.

Shiloh Park Apartments
Plano, TX
Shiloh Park Apartments
Investment Type
Preferred Equity
Property Type
Multi-family
Invested
2323030
Date Of Investment
11/18/20
Date Completed
5/18/22

Investment Summary

  • RealtyMogul Income REIT acquired a $2,323,030 preferred equity investment in connection with the acquisition and renovation of Shiloh Park Apartments, a 73-unit apartment community located in Plano, Texas.
  • The real estate company sponsoring this transaction viewed it as an opportunity to acquire a well-maintained multifamily asset with value-add potential. The real estate company anticipated using approximately $750,000 to renovate unit interiors, including new flooring and appliances, and complete exterior improvements, including new signs and lighting, painting, HVAC units and landscaping. In addition to the physical improvements, the real estate company planned to implement a number of initiatives to improve operating cash flows, including improving both online and physical marketing, building a stronger tenant profile, controlling operating expenses and driving rent increases through tenant turn-over and conversion of below market rents to market.
  • The term of the preferred equity investment was 10 years with a current fixed interest rate of 8% per annum plus 4% per annum of payment-in-kind interest in years one through five, 10% in year six, increasing by 2.0% each year thereafter.
  • The investment was interest-only throughout the entire term.
  • On May 18, 2022, the preferred equity investment was paid off in full.
For a detailed description of the investments in the portfolio, please see your most recent quarterly update, as provided in the "Resources" section.
Disclaimers and Risk Factors
Investing in the Company's common shares is speculative and involves substantial risks. The Company cannot assure you that it will attain its objectives or that the value of its assets will not decrease. Therefore, you should purchase these securities only if you can afford a complete loss of your investment.

You should carefully review the “Risk Factors” section of this offering circular, beginning on page 26, 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 Income REIT has a limited 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.
  • The REIT's ability to implement its investment strategy is dependent, in part, upon its ability to successfully conduct this offering through the Realty Mogul Platform, which makes an investment in it more speculative.
  • 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.
  • Failure to qualify as a REIT would cause the Company to be taxed as a regular corporation, which would substantially reduce funds available for distributions to our shareholders.
  • The REIT may allocate the net proceeds from this offering to investments with which you may not agree.
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.
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1. As with all investments, past performance does not guarantee future results and there is no guarantee that the REIT will make distributions.

2. Returns shown reflect the percent change in the NAV per share from the beginning of the applicable period, plus the amount of any distribution per share declared in the period. All returns shown assume reinvestment of distributions pursuant to RealtyMogul Income REIT's distribution reinvestment plan, are derived from unaudited financial information and are net of all RealtyMogul Income REIT expenses, including management fees. An individual shareholder’s total return may vary from the total return, and there is no assurance that shareholders will be able to realize the estimated NAV per share upon attempting to sell their shares. Past performance is historical and not a guarantee of future results.

3. Aggregate value of all underlying properties in RealtyMogul Income REIT, LLC is based on the most recent internal valuations as of June 30, 2022 pursuant to our valuation policies, provided, however, the property value of investments made since that date is based on the most recent purchase price . The aggregate value of the properties underlying loans made by RealtyMogul Income REIT, LLC is based on independent appraisals dated within six months of the original acquisition dates by RM Adviser, Realty Mogul, Co. or Realty Mogul Commercial Capital, Co., as applicable. As with any methodology used to estimate value, the methodology employed by our affiliates’ internal accountants or asset managers is based upon a number of estimates and assumptions about future events that may not be accurate or complete. For more information, see the “Description of Our Common Stock – Valuation Policies” section of our offering circular.

4. 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 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 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 annually. Actual returns may differ materially from hypothetical returns. Hypothetical returns are from RealtyMogul Income REIT inception date thru September 30, 2022. There is no substitute for actual returns. Past hypothetical performance is not a guarantee of future returns.
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