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RM Communities is a sister-company to RealtyMogul, one of the leading real estate technology platforms. RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities has grown its real estate portfolio to include nearly 2,200 multifamily units and over $350 million in real estate with a fully dedicated team of acquisitions, underwriting and asset management professionals.(1)
(1) References made to the RM Communities portfolio includes four properties that were acquired prior to the formation of RM Communities. Consequently, these assets are managed by an affiliate and are included as part of the RM Communities portfolio as a result of being acquired and managed by the same executive leadership and according to the same investment strategy employed by RM Communities.
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Units |
Type |
Unit SF |
Total SF |
In-Place Rent |
Stabilized Rent |
Rent/SF |
17 |
1/1 S |
644 |
10,942 |
$1,238 |
$1,350 |
$2.10 |
32 |
1/1 M |
725 |
23,200 |
$1,278 |
$1,500 |
$2.07 |
15 |
1/1 L |
783 |
11,745 |
$1,373 |
$1,525 |
$1.95 |
4 |
2/1 |
982 |
3,928 |
$1,546 |
$1,950 |
$1.99 |
4 |
2/2 S |
1,027 |
4,108 |
$1,738 |
$1,975 |
$1.92 |
5 |
2/2 M |
1,138 |
5,690 |
$2,134 |
$2,175 |
$1.91 |
4 |
2/2 L |
1,214 |
4,856 |
$2,215 |
$2,325 |
$1.92 |
3 |
2/2 XL |
1,321 |
3,963 |
$2,396 |
$2,375 |
$1.80 |
Lease Comparables
Property | The Nicholas | Normandy | Industry Columbus | Xander on State | 250 High | Averages | 223 E Town |
Distance to Subject | 0.7 Miles | 0.7 Miles | 0.6 Miles | 0.3 Miles | 0.4 Miles | 0.5 Miles | |
Year Built | 2019 | 2014 | 2020 | 2020 | 2015 | 2018 | 2017 |
Number of Units | 230 | 268 | 236 | 221 | 121 | 215 | 84 |
1/1 S | Studio | Studio | |||||
$ / Unit | $1,490 | $1,367 | $1,373 | $1,340 | $1,393 | $1,350 | |
SF | 602 | 582 | 646 | 631 | 615 | 644 | |
$ / SF | $2.48 | $2.35 | $2.13 | $2.12 | $2.26 | $2.10 | |
1/1 M | |||||||
$ / Unit | $1,627 | $1,529 | $1,449 | $1,535 | $1,500 | ||
SF | 690 | 715 | 725 | 710 | 725 | ||
$ / SF | $2.36 | $2.14 | $2.00 | $2.16 | $2.07 | ||
1/1 L | |||||||
$ / Unit | $1,844 | $1,555 | $1,668 | $1,684 | $1,688 | $1,525 | |
SF | 796 | 815 | 825 | 830 | 817 | 783 | |
$ / SF | $2.32 | $1.91 | $2.02 | $2.03 | $2.07 | $1.95 | |
2/1 | 2/2 | 2/2 | 2/2 | ||||
$ / Unit | $2,215 | $1,929 | $2,055 | $2,066 | $1,950 | ||
SF | 1,046 | 1,004 | 938 | 996 | 982 | ||
$ / SF | $2.12 | $1.92 | $2.19 | $2.07 | $1.99 | ||
2/2 S | |||||||
$ / Unit | $2,215 | $1,929 | $2,020 | $2,055 | $1,975 | ||
SF | 1,046 | 1,004 | 963 | 1,004 | 1027 | ||
$ / SF | $2.12 | $1.92 | $2.10 | $2.05 | $1.92 | ||
2/2 M | |||||||
$ / Unit | $2,310 | $2,355 | $2,135 | $2,005 | $2,201 | $2,175 | |
SF | 1,113 | 1,200 | 1,164 | 1,031 | 1,127 | 1,138 | |
$ / SF | $2.08 | $1.96 | $1.83 | $1.94 | $1.95 | $1.91 | |
2/2 L | |||||||
$ / Unit | $2,601 | $2,355 | $2,478 | $2,325 | |||
SF | 1198 | 1200 | 1,199 | 1,214 | |||
$ / SF | $2.17 | $1.96 | $2.07 | $1.92 | |||
2/2 XL | |||||||
$ / Unit | $2,513 | $2,355 | $2,235 | $2,497 | $2,400 | $2,375 | |
SF | 1,270 | 1,200 | 1,270 | 1370 | 1,278 | 1,321 | |
$ / SF | $1.98 | $1.96 | $1.76 | $1.82 | $1.88 | $1.80 |
Sales Comparables
Property Name |
Submarket Name |
Property Address |
City |
Sale Date |
Sale Price |
Number of Units |
Net Rentable SF |
Price per Unit |
Price per SF |
Year Built |
Building Class |
223 E Town Apartments |
Discovery District |
223 E Town St |
Columbus |
10/2023 |
$19,600,000 |
84 |
68,432 |
$233,333 |
$286 |
2017 |
A |
The Jerome |
Victorian Village |
1025 Dennison Ave |
Columbus |
9/13/2022 |
$14,800,000 |
54 |
46,971 |
$274,074 |
$315 |
2017 |
A |
The Gemma |
Olde Town East |
1117 Oak St |
Columbus |
2/28/2023 |
$6,100,000 |
24 |
20,075 |
$254,167 |
$304 |
2020 |
A |
The Yardley |
Bexley/Whitehall |
122 Parsons Ave |
Columbus |
3/29/2022 |
$18,055,000 |
78 |
81,300 |
$231,474 |
$222 |
2019 |
B |
Luxe 23 |
Downtown Columbus |
1079 N High St |
Columbus |
11/16/2021 |
$54,595,000 |
113 |
187,098 |
$483,142 |
$292 |
2020 |
A |
Industry Columbus |
Discovery District |
230 E Long St |
Columbus |
12/31/2021 |
$81,000,000 |
236 |
234,000 |
$343,220 |
$346 |
2020 |
A |
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Total Capitalization
Sources |
Amount |
Amount per Unit |
Percentage |
Senior Loan |
$14,089,000 |
$167,726 |
67.4% |
Investor Equity |
$6,805,000 |
$81,012 |
32.6% |
Total Sources |
$20,894,000 |
$248,738 |
100.0% |
Uses |
Amount |
Amount per Unit |
Percentage |
Purchase Price |
$19,600,000 |
$233,333 |
93.8% |
Loan Fee |
$140,890 |
$1,677 |
0.7% |
Non-Recourse Carveout Guarantor Fee | $70,445 | $839 | 0.3% |
Closing Costs |
$250,000 |
$2,976 |
1.2% |
CapEx Budget |
$340,616 |
$4,055 |
1.6% |
Seller Credit | ($344,000) | ($4,095) | -1.6% |
Acquisition Fee |
$392,000 |
$4,667 |
1.9% |
Taxes and Insurance |
$93,985 |
$1,119 |
0.4% |
Working Capital |
$80,000 |
$952 |
0.4% |
Excess Working Capital Reserve (1) | $270,064 | $3,215 | 1.3% |
Total Uses |
$20,894,000 |
$248,738 |
100.0% |
(1) The seller is providing a credit of $344,000 at close that will provide excess working capital during the first year of operation. Excess working capital, including net of any guarantor fee that may be necessitated by lender requirements, will be held in reserves and distributed to investors at the end of year 1.
The expected terms of the debt financing are as follows:
- Loan Type: Assumable/Fixed
- Lender/Servicer: Bank of America/Midland
- Total Loan Amount: $14,089,000
- Loan Term Remaining: 5.4 Years
- Interest Rate: 4.93%
- Interest-Only Remaining: 0.4 Years
- Amortization: 30 Years
- Initial Loan-to-Value: 71.9%
- Loan-to-Cost(1): 70.7%
- Extension Options: N/A
There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all. All of the Sponsor’s estimated 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 risk of loss. If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.
(1) Loan-to-cost is calculated as the loan amount divided by total cost (purchase price + capex budget)
RM Communities intends to make distributions from 223 E Town Investors, LLC as follows:
Operating Cash Flow:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 16% IRR;
- 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.
Capital Event:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- Return of Capital to Members
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 16% IRR;
- 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.
RM Communities 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 start in May 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of RM Communities, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Cash Flow Summary | ||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 (2) | Reversion (3) | |
Effective Gross Income (EGI) | $1,873,380 | $2,120,433 | $2,212,008 | $2,286,060 | $2,351,806 | $2,435,437 |
Expense | $626,114 | $672,206 | $706,697 | $726,597 | $746,611 | $1,142,489 |
Net Operating Income | $1,247,267 | $1,448,227 | $1,505,311 | $1,559,464 | $1,605,195 | $1,292,948 |
Total Property Cash Flow | $680,481 (1) | $515,650 | $571,345 | $624,387 | $13,461,745 | |
Projected Investor Cash Flow | ||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Investor-Level Cash Flows - Hypothetical $50,000 Investment(3) | ($50,000) | $4,632 | $3,756 | $4,062 | $4,316 | $82,937 |
(1) Includes assumed return of excess working capital following the first year of operations.
(2) Year 5 cash flows include the projected sale of the Property.
(3) Reversion Expenses and Net Operating Income are tax-adjusted without the tax abatement based on the projected purchase price at sale.
(4) Projected returns are net of all fees.
(5) The Company's pro forma projections are based on assumptions regarding future events, such as the condition of the local residential market and the stabilization of the debt markets. While the Company 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 Owner or its Manager and that could impair the ability of the Property to meet the projections. Please carefully review the disclosures and risks in this presentation and in the Company’s Investment Documents.
RM Technologies, LLC and its affiliates do not provide any assurance of returns. The content on this page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof. Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates. There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved. For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below.
Certain fees and compensation will be paid over the life of the transaction; please refer to RM Communities' 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 |
Acquisition Fee | 2.0% of Purchase Price | RM Communities |
Financing Fee (1) | 1.0% of Refinanced Loan Amount | RM Communities |
Non-Recourse Carveout Guarantor Fee (2) | 0.5% of Assumed Loan Amount | CEO of RM Communities |
Recurring Fees | ||
Type of Fee | Amount of Fee | Received By |
Asset Management Fee | 1.5% of Effective Gross Income (EGI) | RM Communities |
Property Management Fee | Monthly, the greater of 3.0% of Effective Gross Income (EGI) or $35 per unit | AMC, LLC, Third Party Property Manager |
(1) A Financing Fee will only be charged in the event of a refinancing event. The current business plan and returns presented herein do not assume a refinancing event during the investment hold period outlined.
(2) The lender may require a warm body guarantor in connection with the loan assumption. If required by the lender, the CEO of RM Communities will be paid this fee in connection with serving as the guarantor and facilitating the loan assumption.
(3) Fees may be deferred to reduce impact to investor distributions.
The above table is a summary and there may be additional fees and expenses associated with this offering. Please carefully review the Disclaimers on page 2 of the Project Summary. Please carefully review the disclosures and risks in this presentation and in the Company’s Investment Documents.
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, LLCSponsor 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 DocumentsThe 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 InvestmentThis 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 AssumptionsSponsor 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 PerformanceAny 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 DebtA 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 RegisteredSponsor’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 AdviceNothing 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 RiskInternal 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.