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Industrial
Cheyenne Airport Center
North Las Vegas, NV
Funded
100% funded
...
Cheyenne Airport Center
North Las Vegas, NV
All Investments > Cheyenne Airport Center
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Overview
Cheyenne Airport Center
Cheyenne Airport Center is a Class A, multi-tenant industrial park with current cash flow located in the desirable North Las Vegas submarket.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 11/2021
Minimum Investment 35000
Estimated Hold Period 3 Years
Investment Strategy Value-Add
Investment Type Equity
Year Built 2006
Current Occupancy 94.2%
Parking Ratio 3.26 per 1,000 SF
# of Buildings 5
Rentable Square Feet 143,983
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
Rising Realty is under contract to purchase the Property for $145 per SF, representing an acquisition cap rate of 6.36%.
The Property will be managed by Rising Realty or a third-party property manager who has experience managing industrial assets in the market.
The exit strategy is to sell the Property after a 3-year hold at a 5.40% cap rate.
The Property's rent roll shows a diverse tenant base, including credit quality anchor tenants such as Veterans Affairs and Las Vegas Police (15% of Project), both of whom have occupied the Property since the asset was built in 2006.
The Property features include a minimum 14’ clearance, 32 Grade Level Doors, ample parking with 33% coverage, and high visibility with three points of ingress/egress.
Rising Realty is under contract to purchase the Property for $145 per SF, representing an acquisition cap rate of 6.36%.
The Property will be managed by Rising Realty or a third-party property manager who has experience managing industrial assets in the market.
The exit strategy is to sell the Property after a 3-year hold at a 5.40% cap rate.
The Property's rent roll shows a diverse tenant base, including credit quality anchor tenants such as Veterans Affairs and Las Vegas Police (15% of Project), both of whom have occupied the Property since the asset was built in 2006.
The Property features include a minimum 14’ clearance, 32 Grade Level Doors, ample parking with 33% coverage, and high visibility with three points of ingress/egress.
Contact Us
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Management
For more information, view the Sponsor's Investment Memorandum.
Rising Realty Partners

Founded in 2012 by industry veterans Nelson and Christopher Rising, Rising Realty Partners is a family-owned, Los-Angeles based, vertically integrated real estate investment and operating platform specializing in creating world-class commercial properties.

Their investment and operating philosophy is to add value and enhance financial returns through sustainable investment practices and leverage technology as a force multiplier to increase efficiency, reduce operating costs, and improve tenant satisfaction.

Sponsor Track Record

Rising Realty Partners Track Record

Property City, State Asset Type Acq Date SF Purchase Price Sale Date Sale Price
PacMutual Los Angeles, CA Office 4/12/2012 464,147 $59,000,000 4/17/2014 $129,000,000
PacMutual (recap) Los Angeles, CA Office 4/17/2014 464,147 $129,000,000 9/9/2015 $200,000,000
87 N Raymond Pasadena, CA Office 11/15/2013 62,000 $10,475,000 7/29/2016 $18,500,000
The CalEdison Los Angeles, CA Office 10/8/2015 277,074 $92,000,000 12/7/2018 $130,083,222
Bank of America Portfolio Los Angeles, CA Office 11/15/2013 1,770,624 $189,000,000 12/31/14 thru 3/31/21 $263,720,050
Heritage Financial Center Agoura Hills, CA Office 11/9/2016 62,225 $8,000,000 10/21/21 $9,500,000
The Park DTLA Los Angeles, CA Office 1/16/2015 273,448 $16,500,000 N/A N/A
West 7 Center Los Angeles, CA Office/Data 6/3/2016 733,762 $210,000,000 N/A N/A
The Trust Building Los Angeles, CA Office 6/9/2016 320,364 $80,400,000 N/A N/A
The CalEdison (recap) Los Angeles, CA Office 12/7/2018 287,615 $130,083,222 N/A N/A
1Cal Los Angeles, CA Office 6/6/2017 1,047,062 $459,000,000 N/A N/A
Civic Center Plaza Denver, CO Office 6/27/2019 598,592 $124,692,642 N/A N/A
9320 Telstar El Monte, CA Office/Industrial 2/26/2021 248,961 $41,050,000 N/A N/A
Cheyenne Airport Center Las Vegas, NV Office/Industrial 7/23/2021 143,983 $20,850,000 N/A N/A
Commerce Center Stafford Stafford, TX Office/Industrial 12/1/2021 245,495 $33,600,000 N/A N/A
Alpine Industrial Park Sacramento, CA Office/Industrial 2/25/2022 142,190 $21,895,000 N/A N/A
Total       7,141,689 $1,625,545,864   $741,303,272

The above bios and track record were provided by Rising Realty Partners and have not been independently verified by RealtyMogul.

Website
Management Team
Management
Christopher Rising
Co-founder & CEO

Christopher Rising manages the day-to-day business activities of Rising, while also serving on its Investment Committee. Drawing on his experience as Senior Vice President, Asset Transactions at MPG Office Trust, Inc. (NYSE: MPG), Christopher is skilled at managing acquisitions and creative development. At MPG, he worked directly with the CEO to improve finances through debt reduction and restructuring.

In 2003, he founded his own company, The Rising Real Estate Group (RREG.) As the company grew, he seized the opportunity to partner with Barker Pacific Group and created Hamilton Capital Partners (HCP), an equity fund vehicle. RREG is also a principal in 626 Wilshire Blvd, a 156K square foot office building located in downtown Los Angeles.

He began his professional career as an associate at Pillsbury Madison & Sutro. He worked at Cushman Realty Corporation (CRC) under brokerage legend John C. Cushman, III. Christopher then served as a Director at Cushman & Wakefield of California, Inc. (C&W), joining C&W after its merger with CRC in 2001.

Christopher is a current member of the Pasadena Chapter of the Young Presidents Organization and is a member of the Board of Overseers at Loyola Law School and a member of the board of RiverLA. He is a former board member of Loyola High School and LA Phil. 

Christopher received his J.D. Law, Real Estate from Loyola Law School and his B.A. in History and Political Science from Duke University. He also attended Duke on a football scholarship and was a member of the 1989 ACC Championship team. 

Management
Scott McMullin
Principal & CIO

Scott has been a capital partner with Rising since 2015 and recently joined Rising as Principal and CIO. He oversees the capital market needs for Rising, as well as serving on the company’s advisory board and investment committee.

Prior to joining Rising, Scott was a Founding Principal of Suntex Marina Investors. Originally partnering with SMI in 1994, Scott most recently served as Chairman of the Board, CIO, and COO as the company grew to acquire $750 million of marinas throughout the US. Scott also founded other successful real estate ventures such as Stratford Hospitality and Stratford Golf. 

Prior to forming Stratford, Scott spent 16 years as an Executive Managing Director with HFF. There, he oversaw over $30 billion of real estate transactions in all asset classes and served on the firm’s operating committee, facilitating the creation of the Los Angeles and San Francisco debt and equity platforms. Scott was also instrumental in the formation of the private equity affiliate, HFF Securities, holding the position of Principal at the broker/dealer. HFF executed an IPO in 2007.

Scott earned a degree from Duke University and is a member of the Young President's Organization.

Management
Scott Word
Principal, Industrial Investments

Scott joined Rising in 2020 as Principal to lead the industrial platform. He oversees all industrial acquisition activities, including sourcing, strategy, market expansion, business development, market research, and underwriting. 

Prior to joining Rising, Scott held Principal positions with Landmark Realty Partners, Dvele, Waypoint, and Steelwave (formerly Legacy Partners). In this capacity, he led acquisition and development activities completing over $1.5B of “value add” industrial and office acquisitions. 

He began his professional career with The Seeley Company, one of the oldest and most established industrial brokerage firms in Los Angeles, where he quickly excelled to Partner and was a consistent Top Performer. 

Scott earned his bachelor’s in business finance from the University of Oklahoma.

Property
For more information, view the Sponsor's Investment Memorandum.

Cheyenne Airport Center is positioned in the market to provide functional units that range in size from 1,736 to 18,820 square feet and accommodate a wide range of users. The highly stable and diversified tenancy enjoyed 99% average rent collections in 2020 and should provide predictable and sustainable cash flow going forward.  Cheyenne Airport Center positions itself to be a great value add opportunity to reposition vacant space with “market-ready” light industrial units which are highly sought after and in high demand. Las Vegas is one of the best performing and most desirable industrial markets in the country and is positioned for significant growth over the next 5 years.

Tenant Name Suite SF Lease Start Lease End Monthly Rent per SF
Andres Serenity Family Mortuary and Crematory, LLC 3435-105              7,482 3/1/2021 4/30/2026 $0.70 NNN
Ashley Briggs 3395-111              6,020 6/1/2021 6/30/2026 $0.72 NNN
Boomer Natural Wellness - Expansion 3395-103, 3395-104, 3395-105, 3575-108            14,551 11/1/2019 10/31/2023 $0.72 NNN
C. Martin Company, Inc.  3395-101,  3395-102              7,776 1/1/2011 7/31/2021 $1.27 NNN
City of North Las Vegas 3525-102            10,250 7/1/2008 6/30/2023 $1.29 NNN
Diversified Thermal Services, Inc. 3575-107              3,868 12/1/2020 1/31/2024 $0.70 NNN
Element Resources, LLC 3395-110              1,736 5/1/2020 4/30/2023 $0.63 NNN
Enviro-Con Integrated Solutions, LTD 3575-101              2,521 5/15/2020 12/31/2023 $0.70 NNN
Heroic Supply 107-108              6,866 4/1/2019 3/31/2022 $0.69 NNN
Las Vegas Custom Signs, LLC 3575-103              3,465 9/1/2020 12/31/2025 $0.67 NNN
Lighthouse Charities, Inc.  3435-103-104              7,437 12/1/2016 11/30/2024 $0.65 NNN
Mobility Works 3575-105-106              8,290 9/1/2021 11/30/2031 $0.72 NNN
Nevada Orthotics & Prosthetics, Inc.  3435-102              4,034 4/1/2017 6/30/2022 $0.90 NNN
Pinnacle Community Services 3355-103,  3435-101            18,820 1/1/2011 11/30/2024 $1.04 NNN 
Rapid Expeditionary Concepts, LLC 3575-109-111            10,681 2/1/2019 10/31/2022 $0.67 NNN
RGL 3525-111              5,917 5/1/2021 6/30/2026 $0.72 NNN
Shield Fire & Security, LLC 3395-109              3,464 1/1/2013 2/28/2026 $0.71 NNN
The Department of Veteran Affairs 3525-106            11,576 5/10/2012 5/31/2022 $2.04 Gross
Wildhorse Investments, LLC 3395-106              4,176 9/1/2020 10/31/2023 $0.69 NNN
Zenza Life Sciences, LLC 3525-109              5,053 5/1/2019 4/30/2022 $0.69 NNN
Total/Averages            143,983     $0.83
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

  2410-2450 Fire Mesa Street 7371 Prairie Falcon Rd. 3965 W. Cheyenne Ave 3925 W. Cheyenne Ave 730 W. Cheyenne Ave 730 W. Cheyenne Ave 2915 Losee Road 2915 Losee Road Subject
Year Built 1963 2003 2003 2000 2004-2006 2004-2006 2001 2001 2006
Lease Date November 2019 June 2020 October 2020 September 2020 Lease Out December 2020 July 2020 November 2020 July 2021
In-Place Rent PSF $1.45 $1.25 $1.15 $0.95 $0.78 $0.75 $0.76 $0.77 $0.72
Term (Months) 60 36 86 36 62 36 37 62 62
Escalations 3% 3% 5% 3% 4% 4% 4% 4% 4%
Free Rent (Months) 2 2 2 1 1 1 1 1 2
Lease Type (New/Renew) New New New New New New New New New
Distance from subject 2.0 mi 4.8 mi 5.2 mi 0.3 mi 2.4 mi 2.4 mi 3.9 mi 3.9 mi  

Sales Comparables

  6565 Polaris Ave Hughes Airport Ctr 3955 W Mesa Vista Spencer Airport Ctr Buffalo Business Park Averages Subject
Date Sold July 2019 March 2020 December 2020 April 2020 Oct 2019   2021
Sales Price $51,100,000 $72,000,000 $29,989,250 $15,200,000 $13,850,000 $50,254,215 $20,850,000
Sales Price (PSF) $146 $169 $184 $147 $193 $163 $145
Year Built 1964-2000 1987-1991 1995 1999-2000 2019 2007 2006
Cap Rate 4.71% 4.81% 5.00% 5.15% 3.56% 4.65% 6.37%
Rentable SF 350,843 SF 425,752 SF 163,165 SF 103,613 SF 71,872 SF 223,049 SF 143,928 SF
Percentage Leased: 100% 100% 93% 100% 52% 89% 94%
Distance from subject 12.6 mi 16.1 mi 11.3 mi 16.0 mi 10.1 mi 13.2 mi  
Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/SF
Debt $13,552,500 $94
Additional Debt Future Funded (if any) $1,896,875 $13
GP Investor Equity $842,255 $6
LP Investor Equity $7,580,000 $53
Net Capitalized Cash Flow $45,171 $0
Total Sources of Funds $23,916,802 $166
     
Uses of Funds $ Amount $/Unit
Purchase Price $20,850,000 $145
Leasing Costs $716,875 $5
Capital Expenditures $1,225,171 $9
Working Capital $200,000 $1
Financing Fees $177,668 $1
Closing Costs(1) $747,088 $5
Total Uses of Funds $23,916,802 $166

Please note that Rising Realty Partner's equity contribution may consist of friends and family equity and equity from funds controlled by Rising Realty Partners. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

(1) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Citizen's Bank
  • Term: 3+1+1
  • Loan-to-Cost: 65.0%
  • Estimated Proceeds: $15,449,375
  • Interest Type: Full I/O
  • Spread Above One-Month LIBOR: L + 2.25% : L + 2.15% to swap to fixed (2.76% expected rate)
  • Interest-Only Period: 3+1+1
  • Amortization: 360 day schedule after Year 3
  • Prepayment Terms: N/A
  • Loan Extensions: Yes with conditional approvals

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.

Distributions

Rising Realty Partners intends to make distributions from RM RRP Cheyenne, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 9.0% IRR;
  2. 85% / 15% (85% to Investors / 15% to Promote) of excess cash flow to a 14.0% IRR;
  3. 80% / 20% (80% to Investors / 20% to Promote) of excess cash flow to a 18.0% IRR;
  4. 75% / 25% (75% to Investors / 25% to Promote) of excess cash flow thereafter. 

Rising Realty Partners intends to make distributions to investors after the payment of both company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in November 2021 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Rising Realty Partners, who may decide to delay distributions for any reason, including maintenance or capital reserves. Rising Realty Partners will receive a promote as indicated above, and a portion of this promote may be received by RM Admin, LLC for administrative services.

Cash Flow Summary
    Year 1 Year 2 Year 3
Effective Gross Revenue   $1,940,117 $2,011,436 $2,007,321
Total Operating Expenses   $614,882 $633,984 $649,781
Net Operating Income   $1,325,235 $1,377,452 $1,357,540
         
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow -$8,422,255 $817,919 $848,662 $12,438,162
         
Investor-Level Cash Flows*
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow -$7,580,030 $660,324 $687,993 $10,535,141
         
Investor-Level Cash Flows - Hypothetical $50,000 Investment*
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow -$50,000 $4,356 $4,538 $69,491

*Returns are net of all fees including RM Admin's 1.0% administrative services fee. 

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Rising Realty Partners' materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.5% of Purchase Price Rising Realty Partners Total Capitalization
Disposition Fee 0.25% of Sale Price Rising Realty Partners Total Capitalization

 

Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.0% of EGI Rising Realty Partners Cash Flow
Property Management Fee 5.0% of EGI Rising Realty Partners Cash Flow
Administrative Services Fee 1.0% of Equity* RM Admin(3) Cash Flow

*Only applies to equity raised through the RealtyMogul Platform

(1) Fees may be deferred to reduce impact to investor distributions.

(2) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

(3) RM Admin will be providing the following services: (a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from RM RRP Cheyenne, LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/SF
Debt $13,552,500 $94
Additional Debt Future Funded (if any) $1,896,875 $13
GP Investor Equity $842,255 $6
LP Investor Equity $7,580,000 $53
Net Capitalized Cash Flow $45,171 $0
Total Sources of Funds $23,916,802 $166
     
Uses of Funds $ Amount $/Unit
Purchase Price $20,850,000 $145
Leasing Costs $716,875 $5
Capital Expenditures $1,225,171 $9
Working Capital $200,000 $1
Financing Fees $177,668 $1
Closing Costs(1) $747,088 $5
Total Uses of Funds $23,916,802 $166

Please note that Rising Realty Partner's equity contribution may consist of friends and family equity and equity from funds controlled by Rising Realty Partners. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

(1) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Citizen's Bank
  • Term: 3+1+1
  • Loan-to-Cost: 65.0%
  • Estimated Proceeds: $15,449,375
  • Interest Type: Full I/O
  • Spread Above One-Month LIBOR: L + 2.25% : L + 2.15% to swap to fixed (2.76% expected rate)
  • Interest-Only Period: 3+1+1
  • Amortization: 360 day schedule after Year 3
  • Prepayment Terms: N/A
  • Loan Extensions: Yes with conditional approvals

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.

A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.

Distributions

Rising Realty Partners intends to make distributions from RM RRP Cheyenne, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 9.0% IRR;
  2. 85% / 15% (85% to Investors / 15% to Promote) of excess cash flow to a 14.0% IRR;
  3. 80% / 20% (80% to Investors / 20% to Promote) of excess cash flow to a 18.0% IRR;
  4. 75% / 25% (75% to Investors / 25% to Promote) of excess cash flow thereafter. 

Rising Realty Partners intends to make distributions to investors after the payment of both company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in November 2021 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Rising Realty Partners, who may decide to delay distributions for any reason, including maintenance or capital reserves. Rising Realty Partners will receive a promote as indicated above, and a portion of this promote may be received by RM Admin, LLC for administrative services.

Cash Flow Summary
    Year 1 Year 2 Year 3
Effective Gross Revenue   $1,940,117 $2,011,436 $2,007,321
Total Operating Expenses   $614,882 $633,984 $649,781
Net Operating Income   $1,325,235 $1,377,452 $1,357,540
         
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow -$8,422,255 $817,919 $848,662 $12,438,162
         
Investor-Level Cash Flows*
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow -$7,580,030 $660,324 $687,993 $10,535,141
         
Investor-Level Cash Flows - Hypothetical $50,000 Investment*
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow -$50,000 $4,356 $4,538 $69,491

*Returns are net of all fees including RM Admin's 1.0% administrative services fee. 

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Rising Realty Partners' materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.5% of Purchase Price Rising Realty Partners Total Capitalization
Disposition Fee 0.25% of Sale Price Rising Realty Partners Total Capitalization

 

Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.0% of EGI Rising Realty Partners Cash Flow
Property Management Fee 5.0% of EGI Rising Realty Partners Cash Flow
Administrative Services Fee 1.0% of Equity* RM Admin(3) Cash Flow

*Only applies to equity raised through the RealtyMogul Platform

(1) Fees may be deferred to reduce impact to investor distributions.

(2) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.

(3) RM Admin will be providing the following services: (a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from RM RRP Cheyenne, LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.

Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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