Heidenberg Properties and its predecessor has been a developer, owner, and operator of open-air shopping centers and retail properties for approximately 40 years. The Sponsor's current portfolio consists of nearly 2.5 million square feet of retail in the NE and Mid-Atlantic, including New York, New Jersey, Pennsylvania, Vermont, Virginia, and West Virginia, historically focusing on grocery-anchored, value-added centers. Currently, the Sponsor's portfolio is in excess of 98% occupied and continues to see positive leasing velocity and incremental development opportunities. Whether Heidenberg Properties is faced with repositioning, leasing, financing, or development challenges, the Sponsor acts quickly and efficiently to produce successful solutions and compelling results.
At Colonie Center (the "Property"), a 243,389 square foot retail center, is anchored by Whole Foods, Floor & Décor, and TJX's Sierra Trading Post, all with leases extending over ten years. The Property enjoys immediate access to I-87 and I-90 and is adjacent to the larger Colonie Center, a dominant 1.1 million square foot regional mall anchored by Macy’s, Boscov’s, H&M, Nordstrom Rack, Barnes & Noble, and Regal Cinemas. With over 80 stores and restaurants, including PF Chang’s and Cheesecake Factory, the mall provides additional amenities. The long-term leases and high-quality credit tenants contribute to a secure cash flow from NNN leases. The existing vacancy in the 94,058 Upper Level and multi-tenant outlot simultaneously presents an opportunity to create significant value through leasing and development.
Unit Mix
Tenant | SF | % of Property | Lease Start | Lease End | Rent PSF | Lease Type |
FLOOR & DÉCOR | 57,204 | 23.5% | 10-2023 | 09-2038 | $9.00 | NNN |
WHOLE FOODS | 33,783 | 13.9% | 06-2014 | 06-2034 | $17.33 | NNN |
SIERRA TRADING | 19,100 | 7.8% | 06-2024 | 05-2034 | $15.00 | NNN |
VACANT (1130 LOWER) | 6,106 | 2.5% | - | - | $0.00 | Not Applicable |
ETHAN ALLEN | 8,000 | 3.3% | 06-2019 | 06-2029 | $33.60 | NNN |
BJ'S RESTAURANT | 7,807 | 3.2% | 06-2018 | 06-2028 | $44.00 | NNN |
CYCLE GEAR | 6,530 | 2.7% | 11-2021 | 11-2031 | $25.00 | NNN |
SLEEP NUMBER | 3,475 | 1.4% | 05-2022 | 05-2032 | $38.00 | NNN |
VACANT (2130 OUTLOT) | 2,113 | 0.9% | - | - | $0.00 | Not Applicable |
BANK OF AMERICA | 5,213 | 2.1% | 02-2025 | 01-2040 | $38.37 | NNN |
VACANT (UPPER LEVEL) | 94,058 | 38.6% | - | - | $0.00 | Not Applicable |
Totals / Averages | 243,389 | 100% | $10.25 |
Sales Comparables
69 & 79 Wolf Road | The Source at White Plains | Cortlandt Crossing | New City Center | The Shoppes at South Hills | Averages | At Colonie Center | |
Sale Date | 02-28-2023 | 02-01-2023 | 02-01-2022 | 10-01-2022 | 08-02-2022 | 09-25-2022 | 04-03-2024 |
Sales Price | $5,039,500 | $112,000,000 | $65,500,000 | $30,000,000 | $46,800,000 | $51,867,900 | $28,000,000 |
Year Built / Renovated | 1975 / 2000 | 1995 / 2003 | 2019 | 1970 | 1979 | 1989 | 1966 / 2015-2024 |
Net Rentable SF | 25,619 | 260,000 | 130,000 | 125,110 | 518,000 | 211,746 | 243,389 |
Sales Price / SF | $197 | $431 | $504 | $240 | $90 | $292 | $115 |
Cap Rate | 5.50% | 7.30% | 5.10% | 6.40% | 7.50% | 6.36% | 7.45% |
Address | 69 & 79 Wolf Rd, Albany, NY 12205 | 100 Bloomingdale Rd, White Plains, NY 10605 | 3144 E Main St, Mohegan Lake, NY 10547 | 2-88 N Main St, New City, NY 10956 | 1865 South Rd, Poughkeepsie, NY 12601 | 1425 Central Ave, Albany, NY 12205 |
Lease Comparables(1)
Inline Retail Locations | Staples (Northway Commons) |
Eddie Bauer (Northway Commons) |
Dressbarn (Northway Commons) |
Regal Cinemas (Clifton Park Mall) |
Sky Zone (Clifton Park Mall) |
Five Below (New Loudon Center) |
Averages | At Colonie Center |
Distance from Subject Property | 0.2 miles | 0.4 miles | 0.4 miles | 10.5 miles | 10.5 miles | 4.5 miles | 4.4 miles | |
Year Built / Renovated | 2005 | 1970 / 1994 | 1970 / 1994 | 1976 / 2006 | 1976 / 2006 | 1966 / 2003 | 2005 | 1966 / 2015-2024 |
Building NRSF | 477,644 | 477,644 | 477,644 | 465,124 | 465,124 | 254,786 | 436,328 | 231,331 |
Rental Rate ( Per SF ) | $16.50 | $31.00 | $23.50 | $17.00 | $14.00 | $20.50 | $20.42 | |
Tenant Lease Size ( SF ) | 22,597 | 7,000 | 9,000 | 50,000 | 27,000 | 9,000 | 20,766 |
Out-Parcel Retail Locations | Mission BBQ (Northway Commons) |
Mattress Firm (Northway Commons) |
Club Pilates (Residence 15 at Village Plaza) |
Averages | At Colonie Center |
Distance from Subject Property | 0.4 miles | 0.2 miles | 10.5 miles | 3.7 miles | |
Year Built / Renovated | 1970 / 1994 | 1966 | 2018 | 1992 | 1966 / 2015-2024 |
Building NRSF | 477,644 | 477,644 | N/A | 477,644 | 231,331 |
Rental Rate ( Per SF ) | $40.00 | $42.00 | $46.00 | $42.67 | |
Tenant Lease Size ( SF ) | 4,142 | 12,000 | N/A | 8,071 |
(1) For current leases at At Colonie Center, please reference Unit Mix.
Total Capitalization
Sources of Funds | $ Amount | $ / SF |
Senior Loan | $17,500,000 | $76 |
GP Equity(1) | $3,392,269 | $15 |
LP Equity | $8,406,928 | $36 |
Total Sources of Funds | $29,299,197 | $127 |
Uses of Funds | $ Amount | $ / SF |
Purchase Price | $28,000,000 | $121 |
Acquisition Fee | $280,000 | $1 |
Closing Costs | $1,019,197 | $4 |
Total Uses of Funds | $29,299,197 | $127 |
(1) The Sponsor contributes 25% or $2.95M to the total deal equity of $11.8M. Additionally, they contribute 5%, which equals $442k, of common equity in the issuing entity, RH at Colonie, LLC. In total, the Sponsor contributes 28.8% or $3.39M of the total deal equity, which equals $11.8M.
The expected terms of the debt financing are as follows:
- Lender: Provident Bank
- Loan Type: Permanent Loan
- Term: 60 Months
- Loan-to-Value (LTV): 62.50%
- Loan-to-Cost (LTC): 60.00%
- Estimated Proceeds: $17,500,000
- Interest Type: Fixed
- Annual Interest Rate: Fixed Rate set three (3) days prior to closing equal to greater of 5-year Treasury Rate + 2.15% and 6.50%(2)
- Interest-Only Period: 24 Months
- Amortization: 25 Years
- Prepayment Terms: The Lender shall be entitled to charge and collect a prepayment premium based on the amount prepaid as outlined: 4% in Year 1, 3% in Year 2, 2% in Year 3, and 1% in Years 4-5 with no penalty during the final six months of Year 5.
- Extension Requirements: No extension
(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 Sponsor's use of debt.
(2) The proforma assumes a fixed interest rate of 6.50%.
(3) As of 2/14/2024, the U.S. 5-Year Treasury rate is 4.243%.
(4) The Sponsor estimates approximately $6.5M of additional leasing and development costs for the Upper Level, which is to be advanced as additional "good news" capital from their lender subject to the satisfaction of certain conditions precedent.
The total equity amount of At Colonie Center is $11.8 million, which can be split as follows:
- GP Entities (Principals and Partners of Heidenberg Properties): 25% of the total equity ($2.95M)(1)
- RH at Colonie, LLC (Issuing Entity): 75% of the total equity ($8.85M)
Capital Structure at the issuing entity, RH at Colonie, LLC
- Heidenberg Properties Group (GP), contributes 5% of total capital ($442k) as common equity(1)
- LP Investors contribute 5% of total capital ($442k) as common equity(2)
- LP Investors contribute the remaining 90% of total capital ($7.96M) as preferred equity(2)
The PropCo, At Colonie Center 2024, LLC, is distributing 75% of the cash flows to the Issuing Entity, RH at Colonie, LLC, and 25% of the cash flows to the GP entities (1425 Colonie, LLC and SREP Colonie, LLC), which is pari passu.
Heidenberg Properties Group intends to make distributions from RH at Colonie, LLC as follows:
Distributions of Available Net Operating Income:
- Pari passu all cash flow available for distribution to each Preferred Equity Investor until such Preferred Equity Investor receives a Preferred Return of 7.5% Per Annum;
- Pari passu all cash flow available for distribution to each Preferred Equity Investor, the aggregate amount necessary to pay all accrued and unpaid Shortfalls due and owing to such Preferred Equity Investor in respect of any prior periods;
- 50% / 50% (50% to LP Equity Investors / 50% to GP Equity Investors) of all cash flow available for distribution thereafter.(3)
Distributions of Available Net Capital Proceeds:
- Pari passu all cash flow available for distribution to each Preferred Equity Investor until such Preferred Equity Investor receives a Preferred Return of 7.5% Per Annum;
- Pari passu all cash flow available for distribution to each Preferred Equity Investor, the aggregate amount necessary to pay all accrued and unpaid Shortfalls due and owing to such Preferred Equity Investor in respect of any prior periods;
- Pari passu all cash flow available for distribution to each Preferred Equity Investor, the aggregate amount of all capital contributed by such Preferred Equity Investor in respect of its Preferred Interest;
- 50% / 50% (50% to LP Equity Investors / 50% to GP Equity Investors) of all cash flow available for distribution thereafter.(3)
Heidenberg Properties 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 start in August 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Heidenberg Properties Group, 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 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
Effective Gross Revenue | $3,005,610 | $4,355,311 | $4,220,695 | $4,265,643 | $4,326,529 | $4,455,494 | $4,628,141 | $4,659,567 | $4,714,326 | $4,781,357 | |
Total Operating Expenses | $920,224 | $998,212 | $1,058,548 | $1,087,037 | $1,116,965 | $1,150,441 | $1,186,513 | $1,217,812 | $1,250,945 | $1,285,498 | |
Net Operating Income | $2,085,386 | $3,357,099 | $3,162,147 | $3,178,606 | $3,209,564 | $3,305,053 | $3,441,628 | $3,441,755 | $3,463,381 | $3,495,859 | |
Project-Level Cash Flows | |||||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||||
Net Cash Flow | ($11,799,197) | $833,843 | $3,528,561 | $1,232,551 | $1,245,380 | $23,164,540 | |||||
Investor-Level Cash Flows(4) | |||||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||||
Net Cash Flow | ($4,060,000) | $290,883 | $1,081,579 | $297,280 | $299,569 | $5,775,323 | |||||
Investor-Level Cash Flows - Hypothetical $50,000 Investment(4) | |||||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||||
Net Cash Flow | ($50,000) | $3,582 | $13,320 | $3,661 | $3,689 | $71,125 |
(1) The Sponsor contributes 25% or $2.95M to the total deal equity of $11.8M. Additionally, they contribute 5%, which equals $442k, of common equity in the issuing entity, RH at Colonie, LLC. In total, the Sponsor contributes 28.8% or $3.39M of the total deal equity, which equals $11.8M.
(2) LP Investor Capital is allocated 94.737% for Preferred Equity and 5.263% for Common Equity in the issuing entity RH at Colonie, LLC.
(3) The 50/50 split distribution at the issuing entity is a simple split.
(4) 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.
Certain fees and compensation will be paid over the life of the transaction; please refer to Heidenberg Properties Group's materials for details. The following fees and compensation will be paid(1)(2):
One-Time Fees: | |||
Type of Fee | Amount of Fee | Received By | Paid From |
Acquisition Fee | 1.00% of Purchase Price | Sponsor/Sponsor Affiliate | Capitalized Equity Contribution |
Disposition Fee(3) | 0.50% of Sale Price | Sponsor/Sponsor Affiliate | Cash Flow |
Financing Fee(4) | 0.50% of the aggregate principal amount of any loan or refinancing related to the Shopping Center, excluding the acquisition loan | Sponsor/Sponsor Affiliate | Loan Proceeds |
Technology Solution Licensing Fee(2) | 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 |
Property Management Fee | 4.00% of Effective Gross Income | Sponsor/Sponsor Affiliate | Cash Flow |
Leasing Consulting Fee for New Leases(5) | 3.0% of fixed base rent for leases under 20,000 square feet (with no outside broker) or 2.0% with an outside broker, and $2.00 per square foot for leases of 20,000 square feet or more. | Sponsor/Sponsor Affiliate | "Good News" Capital |
Hourly Oversight Fee(5) | $200.00 for construction oversight or tenant plan reviews at the Shopping Center | Sponsor/Sponsor Affiliate | "Good News" Capital |
Development Fee(5) | 5.0% based on the approved construction budget for any Shopping Center Development Project | Sponsor/Sponsor Affiliate | "Good News" Capital |
Administration Solution Licensing Fee(2) | 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 |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
(3) The disposition fee is a one-time fee. However, if the BoA ground lease is sold separately from the rest of the asset as contemplated in the base case underwriting, a disposition fee is charged on the Sale Price of both assets once they are sold.
(4) Additional financing or a refinancing has not been contemplated in the base case underwriting.
(5) Fees are payable in connection with leasing and developing vacant space at the Shopping Center.
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.
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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.