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Multifamily
Alders at Prosper
Prosper, TX
Funded
100% funded
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Alders at Prosper
Prosper, TX
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Overview
Alders at Prosper
Ground-up development of a Class A Active Adult senior living community in the affluent community of Prosper, Texas.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 5/2026
Minimum Investment 35000
Estimated Hold Period 40 Months*
Investment Strategy Development
Investment Type Equity
# of Units 188
First Units Delivered 7/1/2024
Project Stabilization 3/1/2026
# of Buildings 1 Main Building (180 units), 4 Duplex Townhomes (8 units)
Land Acquisition Price $4,861,401
Total Development Budget $52,847,396
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
Return Potential - Offers an attractive target internal rate of return of 23%+ and target equity multiple of 2.01x.
Desirable Location - Prosper, Texas is an affluent, high-growth North Dallas suburb. The Project is located one mile north of the largest resort under development in the country (Omni PGA Frisco Resort).
Strong Demand - Favorable tailwinds with 10,000 Baby Boomers turning 65 every day through 2030. The Active Adult segment is an underserved niche in the senior housing continuum.
Proven Product - The Alders brand is known for its upscale finishes, gracious spaces, and fostering an active sense of community for our residents. Two of the three properties the Sponsor has completed are stabilized, and the third was sold in March of this year. The fourth property broke ground in Q2 2021 and is due to deliver the first units later this year.
Experienced Team - The fifth Alders property in Texas, the fourth Alders project constructed by the General Contractor, and Sponsor intends to engage Cushman & Wakefield to market and manage the community through lease-up and stabilization.
Return Potential - Offers an attractive target internal rate of return of 23%+ and target equity multiple of 2.01x.
Desirable Location - Prosper, Texas is an affluent, high-growth North Dallas suburb. The Project is located one mile north of the largest resort under development in the country (Omni PGA Frisco Resort).
Strong Demand - Favorable tailwinds with 10,000 Baby Boomers turning 65 every day through 2030. The Active Adult segment is an underserved niche in the senior housing continuum.
Proven Product - The Alders brand is known for its upscale finishes, gracious spaces, and fostering an active sense of community for our residents. Two of the three properties the Sponsor has completed are stabilized, and the third was sold in March of this year. The fourth property broke ground in Q2 2021 and is due to deliver the first units later this year.
Experienced Team - The fifth Alders property in Texas, the fourth Alders project constructed by the General Contractor, and Sponsor intends to engage Cushman & Wakefield to market and manage the community through lease-up and stabilization.
Contact Us
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Management
For more information, view the Sponsor's Investment Memorandum.
Alder Development Group

Alder Development Group is a Texas-based development company that focuses on active adult multifamily properties. The Sponsor’s vision is to deliver world-class developments that enhance the surrounding areas as well as the lives of the people who live and work in its developments. The Sponsor has started construction on four active adult projects, totaling 743 units. One of the four projects was recapped in 2021, a second was sold earlier this year, and a third is stabilized at 98% occupancy. The fourth broke ground in Q2 2021 and is due to deliver the first units later this year. The Sponsor has approximately $200 million in development between the four projects. All projects have been Texas-based (Katy, The Woodlands, Rockwall, and Allen).

Sponsor Track Record
Property City, State Asset Type Built Units or SF Total Project Cost Sale Price/Est. Value
Alders at Twin Creeks(1) Allen, TX Active Adult MF 2018 243 $37,100,000 $72,900,000
Alders at Rockwall Rockwall, TX Active Adult MF 2021 144 $30,343,999 $39,000,000
Alders at Magnolia(2) The Woodlands, TX Active Adult MF 2021 184 $33,851,686 $49,700,000
Alders at Cross Creek Katy/Fulshear, TX Active Adult MF Under Construction 172 $35,397,429 $50,000,000

 

(1) Operated as Larkspur at Twin Creeks

(2) LP Investors realized 38.5% IRR / 2.3X multiple (sold March 2022)

(3) The Alders Principals have over 40 years of combined residential construction experience. Prior to forming Alder Development Group, the Principals of Alder Development Group collectively built over 750 homes with a value in excess of $250 million.

The above bios and track record were provided by Alder Development Group and have not been independently verified by RealtyMogul.

Website
Management Team
Management
Tim O'Hanlon
Principal

Mr. O’Hanlon is a seasoned construction and real estate developer with a passion for delivering exceptional residences to both families and active adults. Prior to co-founding Alder Development Group, Mr. O’Hanlon was the Chief Operating Officer of a vertically-integrated apartment development and construction company with a portfolio of 1,000+ units across seven properties and an eighth property at permitting stage. Additionally, he founded and served as President of the property management company that took over operations of the entire portfolio.

Mr. O’Hanlon began his business career as a consultant with McKinsey & Company focusing on strategy, operations, and organizational effectiveness. He was recruited by Centex Homes to work on the highest strategic priorities for the company and then led the national product development and supply chain groups. 

Mr. O'Hanlon began his professional career as a U.S. Navy fighter pilot flying the FA-18 Hornet. He accumulated 280 carrier landings and is a TOPGUN Adversary graduate. He earned an MBA from Harvard Business School and a Bachelor of Science in Mechanical Engineering from Georgia Tech, where he rowed on the crew team.

Management
Bart Tinsley
Principal

Mr. Tinsley’s career includes over 20 years of experience in the construction industry and 12 years in the military, having served with the U.S. Marine Corps and the Army National Guard. Prior to co-founding Alder Development Group, he served as the Vice President of Operations for an Austin-based homebuilder and was tasked with developing and leading a construction operations group as part of a new market entry for the company. He was chosen for this role due to his extensive background in construction operations as well as his deep knowledge and relationships with subcontractors, land owners, and developers.

Previously, Mr. Tinsley spent 13 years with a residential construction company focused solely on the Active Adult and Independent Seniors customer segment. As Vice President of Operations, he oversaw all facets of the company’s operations including land development, sales operations, purchasing, permitting, construction, design center operations, and warranty services. He was instrumental in sourcing and negotiating land development contracts with land owners, developers, city planners, and other homebuilders to design and develop numerous senior housing communities. Under his leadership, the company was selected as one of the “Best Builders in Dallas” by D Home magazine for ten consecutive years.

Mr. Tinsley began his professional career in the Marine Corps and was selected for the elite Marine Security Guard Battalion as an Embassy Guard. He was awarded a Top Secret clearance and served as the Assistant Detachment Commander at numerous Embassy locations including Senegal, Chad, Hungary, and the Netherlands.

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

Alders at Prosper (the "Project") will be a Class A active adult development consisting of 188 one- and two-bedroom units built around tremendous community amenities. The Project will cater to the affluent demographics of the Prosper area and be able to draw upon the region's growing population and numerous neighborhood restaurants, shopping, and hotels.

Unit Mix

Unit Type # of Units Avg SF/Unit $ / Unit $ / SF % of Total
1x1 84 814 $1,767 $2.17 45%
2x2 104 1,129 $2,331 $2.06 55%
Total/Averages 188 988 $2,079 $2.10 100%
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

  Watermere at Frisco The Chateau Presidium at Edgestone Overture Frisco The Links on PGA Parkway Averages Subject
Property Type Independent Living Independent Living Active Adult Active Adult Multifamily    
Year Built 2017 2005 2019 2017 2021 2016  
# of Units 251 212 188 162 375 238 188
Average Unit Size 1,029 990 870 909 856 931 988
Levels 4 3 3 3 4 3 3
Distance from Subject 7.2 mi 9.5 mi 8.3 mi 9.7 mi 2.1 mi 7.4 mi 0.0 mi
Address 4220 Cotton Gin Rd, Frisco, TX 75034 5701 Virginia Pkwy, McKinney, TX 75071 5857 Legacy Dr, Frisco, TX 75034 4140 Legendary Dr, Frisco, TX 75034 15950 Paramount Way, Frisco, TX 75033   SWC of Prarie Drive & Mahard Road, Prosper, TX
               
$/Unit (1x1) $2,153 $2,396 $1,780 $1,845 $1,524 $1,940 $1,767
SF (1x1) 796 697 746 788 692 744 814
$/SF (1x1) $2.70 $3.44 $2.39 $2.34 $2.20 $2.61 $2.17
               
$/Unit (2x2) $2,646 $2,898 $2,277 $2,241 $2,356 $2,484 $2,331
SF (2x2) 1,137 1,066 1,015 1,073 1,104 1,079 1,129
$/SF (2x2) $2.33 $2.72 $2.24 $2.09 $2.13 $2.30 $2.06

 

Sales Comparables

Active Adult Sales Comps
  Overture Domain Overture Mueller  Overture Stone Oak Overture Plano Averages Subject
Date Sold Mar-22 Dec-21 Dec-21 Dec-19    
Year Built 2016 2017 2017 2016 2017  
# of Units 201 183 143 169 174 188
Average Unit Size 949 SF 943 SF 1,004 SF 1,016 SF 978 SF 988 SF
Sale Price $70,350,000 $61,000,000 $44,200,000 $50,300,000 $56,462,500 $52,847,396
$/Unit $350,000 $333,333 $309,091 $297,633 $322,514 $281,103
$/SF $368.80 $353.50 $307.90 $292.90 $330.80 $284.40
Cap Rate 2.00% 3.47% 4.06% N/A 3.18% N/A
Building Size(1) 50,000 SF 204,510 SF 294,616 SF 262,423 SF 202,887 SF 235,817 SF
Address 3100 Kramer Ln, Austin, TX 78758 4818 Berkman Dr, Austin, TX 78723 18610 Tuscany Stone, San Antonio, TX 78258 500 Coit Rd, Plano, TX 75075   SWC of Prarie Drive & Mahard Road, Prosper, TX
             
Multifamily Sales Comps
  Luxia Preston  Axis 110 301 Flower Mound The Reserve at Stonebridge Ranch Averages Subject
Date Sold Dec-21 Apr-22 Dec-21 Dec-21    
Year Built 2021 2017 2021 2002 2015  
# of Units 212 351 350 301 304 188
Average Unit Size 915 SF 897 SF 918 SF 1,282 SF 1,003 SF 988 SF
Sale Price $73,000,000 $111,000,000 $114,000,000 $95,300,000 $98,325,000 $52,847,396
$/Unit $344,340 $316,239 $325,714 $316,611 $325,726 $281,103
$/SF $376.30 $352.60 $354.80 $247.00 $332.70 $284.40
Building Size(1) 200,000 SF 553,752 SF 550,000 SF 386,950 SF 422,676 SF 235,817 SF
Distance from Subject 12.7 mi 24.6 mi 28.5 mi 8.6 mi 18.6 mi 0.0 mi
Address 4950 Broadway Dr., Plano, TX 75024 110 W CityLine Dr, Richardson, TX 75082 301 Silveron Blvd, Flower Mound, TX 75028 2305 Custer Rd, McKinney, TX 75070   SWC of Prarie Drive & Mahard Road, Prosper, TX

 

(1) Gross Square Footage

Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $33,000,000 $175,532
Sponsor Equity(1) $1,302,069 $6,926
LP Investor Equity $7,055,000 $37,527
Preferred Equity $11,490,327 $61,119
Total Sources of Funds $52,847,396 $281,103
     
Uses of Funds $ Amount $/Unit
Land Acquisition Costs $4,861,401 $25,859
Hard Costs $34,245,228 $182,155
Hard Costs Contingency $2,485,061 $13,218
Soft Costs $3,872,611 $20,599
Interest Reserve $3,118,500 $16,588
Operating Carry $912,881 $4,856
Financing Costs(2) $1,515,200 $8,060
Development Fee $1,836,514 $9,769
Total Uses of Funds $52,847,396 $281,103

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Prosperity Bank
  • Term: 3 years I/O + 25-year amortization
  • LTC: 62.4%
  • Estimated Proceeds: $33,000,000
  • Interest Type: Fixed
  • Annual Interest Rate: 5.25%
  • Interest-Only Period: 36 months

Permanent Loan Period

  • Interest Type: Floating
  • Annual Interest Rate: WSJ Prime + 50bps with Floor Rate of 4.75%
  • Amortization: 25 years
  • Prepayment Terms: Prepayment fee waived
  • Extension Requirements: Construction loan converts to Permanent loan following the interest-only period
  • Modeled Refinance: No

(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt. 

Distributions

Alder Development Group intends to make distributions of distributable cash flow as follows:

100% to the Preferred Equity Member until:

  1. Up to the total of accrued and unpaid preferred return of 14.50% or a 1.50X multiple (whichever is greater)
  2. Return of invested capital and exit fees.

Then to Common Equity members:

  1. Pari passu, all operating cash flows to a 10.0% IRR
  2. 75% / 25% (75% to Investors / 25% to Promote/Carried Interest) of excess cash flow to a 14.0% IRR;
  3. 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow to a 23.0% IRR;
  4. 45% / 55% (45% to Investors / 55% to Promote/Carried Interest) of excess cash flow to a 25.0% IRR;
  5. 15% / 85% (15% to Investors / 85% to Promote/Carried Interest) of excess cash flow thereafter.

Alder Development Group intends to make distributions to investors after the payment of the 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 be made when the Property is sold with a target exit date of March 2026. Distributions are at the discretion of Alder Development Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Alder Development Group will receive a promoted/carried interest as indicated above.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4
Effective Gross Revenue   $0 $497,589 $3,248,688 $5,423,465
Total Operating Expenses   $0 ($1,101,520) ($1,862,744) ($2,005,161)
Net Operating Income   $0 ($603,931) $1,385,944 $3,418,304
           
Preferred Equity-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($11,490,327) $0 $0 $174,987 $18,509,996
           
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($8,357,069) $0 $0 $0 $18,200,320
           
LP Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($7,055,000) $0 $0 $0 $14,175,075
           
LP Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($50,000) $0 $0 $0 $100,433

(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns.  Returns presented are net of all fees.  Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Alder Development Group's 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 Notes
Developer Fee 5.0% of Hard Costs(2) Alder Development Group Upfront Capitalization Capitalized upfront but paid during the first 19 months of construction
Technology Solution Licensing Fee(3) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC

Capitalization (at Sponsor’s discretion)

 
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee 1.5% of LP Equity Alder Development Group Cash Flow Monthly
Administration Solution Licensing Fee(3) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC Cash Flow Quarterly

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

(2) Hard Costs + Hard Costs contingency + FF&E

(3) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

.

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $33,000,000 $175,532
Sponsor Equity(1) $1,302,069 $6,926
LP Investor Equity $7,055,000 $37,527
Preferred Equity $11,490,327 $61,119
Total Sources of Funds $52,847,396 $281,103
     
Uses of Funds $ Amount $/Unit
Land Acquisition Costs $4,861,401 $25,859
Hard Costs $34,245,228 $182,155
Hard Costs Contingency $2,485,061 $13,218
Soft Costs $3,872,611 $20,599
Interest Reserve $3,118,500 $16,588
Operating Carry $912,881 $4,856
Financing Costs(2) $1,515,200 $8,060
Development Fee $1,836,514 $9,769
Total Uses of Funds $52,847,396 $281,103

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Prosperity Bank
  • Term: 3 years I/O + 25-year amortization
  • LTC: 62.4%
  • Estimated Proceeds: $33,000,000
  • Interest Type: Fixed
  • Annual Interest Rate: 5.25%
  • Interest-Only Period: 36 months

Permanent Loan Period

  • Interest Type: Floating
  • Annual Interest Rate: WSJ Prime + 50bps with Floor Rate of 4.75%
  • Amortization: 25 years
  • Prepayment Terms: Prepayment fee waived
  • Extension Requirements: Construction loan converts to Permanent loan following the interest-only period
  • Modeled Refinance: No

(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt. 

Distributions

Alder Development Group intends to make distributions of distributable cash flow as follows:

100% to the Preferred Equity Member until:

  1. Up to the total of accrued and unpaid preferred return of 14.50% or a 1.50X multiple (whichever is greater)
  2. Return of invested capital and exit fees.

Then to Common Equity members:

  1. Pari passu, all operating cash flows to a 10.0% IRR
  2. 75% / 25% (75% to Investors / 25% to Promote/Carried Interest) of excess cash flow to a 14.0% IRR;
  3. 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow to a 23.0% IRR;
  4. 45% / 55% (45% to Investors / 55% to Promote/Carried Interest) of excess cash flow to a 25.0% IRR;
  5. 15% / 85% (15% to Investors / 85% to Promote/Carried Interest) of excess cash flow thereafter.

Alder Development Group intends to make distributions to investors after the payment of the 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 be made when the Property is sold with a target exit date of March 2026. Distributions are at the discretion of Alder Development Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Alder Development Group will receive a promoted/carried interest as indicated above.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4
Effective Gross Revenue   $0 $497,589 $3,248,688 $5,423,465
Total Operating Expenses   $0 ($1,101,520) ($1,862,744) ($2,005,161)
Net Operating Income   $0 ($603,931) $1,385,944 $3,418,304
           
Preferred Equity-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($11,490,327) $0 $0 $174,987 $18,509,996
           
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($8,357,069) $0 $0 $0 $18,200,320
           
LP Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($7,055,000) $0 $0 $0 $14,175,075
           
LP Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($50,000) $0 $0 $0 $100,433

(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns.  Returns presented are net of all fees.  Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Alder Development Group's 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 Notes
Developer Fee 5.0% of Hard Costs(2) Alder Development Group Upfront Capitalization Capitalized upfront but paid during the first 19 months of construction
Technology Solution Licensing Fee(3) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC

Capitalization (at Sponsor’s discretion)

 
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee 1.5% of LP Equity Alder Development Group Cash Flow Monthly
Administration Solution Licensing Fee(3) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC Cash Flow Quarterly

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

(2) Hard Costs + Hard Costs contingency + FF&E

(3) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

.

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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