RM Communities is a sister-company to RealtyMogul, one of the leading online platforms for real estate investing. RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities has acquired over 2,400 multifamily units and $400 million(1) in real estate with a fully dedicated team of acquisitions, underwriting, and asset management professionals.
Lease Comparables
| Property | Year Built | Floorplan | Sq. Ft. | Eff. Rent | Eff. Rent/SF | Distance from Subject |
|---|---|---|---|---|---|---|
| Studio | ||||||
| Normandy | 2014 | Studio | 475 | $1,142 | $3.38 | 0.5 miles |
| Xander Apartments | 2020 | Studio S | 422 | $1,150 | $2.73 | |
| Industry Columbus | 2020 | Studio | 458 | $1,178 | $2.57 | 0.4 miles |
| Xander Apartments | 2020 | Studio M | 505 | $1,300 | $2.58 | |
| Xander Apartments | 2020 | Studio L | 534 | $1,350 | $2.53 | |
| Library Park | 2020 | Studio | 554 | $1,385 | $2.50 | 0.2 miles |
| 250 High | 2015 | Studio | 670 | $1,449 | $2.16 | 0.7 miles |
| The Nicholas | 2019 | Studio | 602 | $1,450 | $2.41 | 1.0 miles |
| Library Park | 2020 | Studio | 650 | $1,450 | $2.23 | 0.2 miles |
| 1/1 | ||||||
| Normandy | 2014 | 1/1 | 715 | $1,252 | $1.75 | 0.5 miles |
| Industry Columbus | 2020 | 1/1 | 646 | $1,340 | $2.07 | 0.4 miles |
| 223e | 2017 | 1/1 | 725 | $1,350 | $1.86 | 0.3 miles |
| Xander Apartments | 2020 | 1/1 S | 637 | $1,375 | $2.16 | |
| Xander Apartments | 2020 | 1/1 M | 737 | $1,400 | $1.90 | |
| 250 High | 2015 | 1/1 | 845 | $1,457 | $1.72 | 0.7 miles |
| The Nicholas | 2019 | 1/1 | 680 | $1,645 | $2.42 | 1.0 miles |
| Library Park | 2020 | 1/1 | 698 | $1,650 | $2.36 | 0.2 miles |
| Library Park | 2020 | 1/1 | 728 | $1,675 | $2.30 | 0.2 miles |
| Normandy | 2014 | 1/1 | 925 | $1,677 | $1.81 | 0.5 miles |
| The Nicholas | 2019 | 1/1 | 755 | $1,706 | $2.26 | 1.0 miles |
| Xander Apartments | 2020 | 1/1 L | 1,046 | $1,850 | $1.77 | |
| Library Park | 2020 | 1/1 | 803 | $2,145 | $2.67 | 0.2 miles |
| 2/2 | ||||||
| Normandy | 2014 | 2/2 | 1,004 | $1,733 | $1.73 | 0.5 miles |
| Normandy | 2014 | 2/2 | 1,105 | $1,835 | $1.66 | 0.5 miles |
| Xander Apartments | 2020 | 2/2 S | 964 | $2,000 | $2.08 | |
| Xander Apartments | 2020 | 1/2 Den | 1,019 | $2,000 | $1.96 | |
| Xander Apartments | 2020 | 2/2 M | 1,034 | $2,100 | $2.03 | |
| 250 High | 2015 | 2/2 | 1,185 | $2,125 | $1.79 | 0.7 miles |
| Xander Apartments | 2020 | 2/2 L | 1,089 | $2,200 | $2.02 | |
| The Nicholas | 2019 | 2/2 | 1,101 | $2,314 | $2.10 | 1.0 miles |
| 223e | 2017 | 2/2 | 1,214 | $2,366 | $1.95 | 0.3 miles |
| Library Park | 2020 | 2/2 | 1,188 | $2,750 | $2.31 | 0.2 miles |
| Industry Columbus | 2020 | 2/2 | 1,200 | $2,790 | $2.33 | 0.4 miles |
Sales Comparables
| Property | Submarket | City, State | Sale Date | Sale Price | Units | NRSF | $/Unit | $/SF | Year Built |
|---|---|---|---|---|---|---|---|---|---|
| Xander Apartments | Discovery District | Columbus, OH | Q4 2024 | $43,550,000 | 229 | 152,595 | $190,175 | $285 | 2020 |
| Gravity II | East Franklinton | Columbus, OH | Pending | $87,779,320 | 382 | 302,162 | $229,789 | $291 | 2023/2024 |
| The View on Grant | Discovery District | Columbus, OH | 8/29/2023 | $17,250,000 | 86 | 87,445 | $200,581 | $197 | 2019 |
| 223e | Discovery District | Columbus, OH | 3/01/2024 | $19,600,000 | 84 | 71,400 | $233,333 | $275 | 2017 |
| Trotters Park | Flytown | Columbus, OH | 7/07/2022 | $29,800,000 | 144 | 132,168 | $206,944 | $225 | 2015 |
| The Jerome | Victorian Village | Columbus, OH | 9/13/2022 | $14,800,000 | 54 | 46,971 | $274,074 | $315 | 2017 |
| The Gemma | Olde Town East | Columbus, OH | 2/28/2023 | $6,100,000 | 24 | 20,075 | $254,167 | $304 | 2020 |
| Sources of Funds | Amount | $/Unit | % |
|---|---|---|---|
| Senior Loan | $30,000,000 | $131,004 | 63.1% |
| Investor Equity(1) | $17,500,000 | $76,419 | 36.8% |
| Seller Credit | $72,387 | $316 | 0.1% |
| Total Sources of Funds | $47,572,387 | $207,740 | 100.0% |
| Uses of Funds | Amount | $/Unit | % |
|---|---|---|---|
| Purchase Price | $43,550,000 | $190,175 | 91.5% |
| Loan Fee (Brokerage + Lender) | $487,500 | $2,129 | 1.8% |
| Non-Recourse Carveout Guarantor Fee | $75,000 | $328 | 0.2% |
| Closing Costs | $1,020,000 | $4,454 | 2.1% |
| CapEx Budget | $804,126 | $3,511 | 1.7% |
| Acquisition Fee | $871,000 | $3,803 | 1.8% |
| Taxes and Insurance | $158,695 | $693 | 0.3% |
| Working Capital | $606,066 | $2,647 | 1.3% |
| Total Uses of Funds | $47,572,387 | $207,740 | 100.0% |
(1) Investor Equity includes equity contributions from the Sponsor(s) and/or Affiliates of the Sponsor(s).
The expected terms of the debt financing are as follows:(1)
Acquisition Debt Assumptions
- Loan Type: Bridge
- Lender: ACRE
- Loan Amount: $30,000,000
- Loan Term + Extension Options: 2 + 1 + 1 + 1
- Amortization: N/A
- Interest Type: Floating
- Interest Rate: SOFR + 2.90%
- Interest-Only Period: Full-Term
- Initial Loan-to-Value: 68.3%
- Loan-to-Cost:(2) 67.6%
Future Agency Refinance in Mo. 13
- Loan Type: Refinance
- Loan Amount: $31,600,000
- Loan Term: 5 Years
- Extension Options: N/A
- Yield Maintenance: 3 Years
- Amortization: 30 Years
- Interest Type: Fixed
- Interest Rate: 5.17%
- Interest-Only Period: 2 Years
- Loan-to-Stabilized-Value: 53.8%
- Loan-to-Initial-Cost:(2) 70.0%
(1) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclosures section below for additional information concerning the Sponsor's use of debt.
(2) Loan-to-cost is calculated as the loan amount divided by total cost (purchase price + capex budget).
RM Communities intends to make distributions as follows:
Operating Cash Flow:
- 8% Preferred Return
- 70% Members / 30% GP to a 17% IRR
- 50% Members / 50% GP thereafter
Capital Event:
- 8% Preferred Return
- Return of Capital to Members
- 70% Members / 30% GP to a 17% IRR
- 50% Members / 50% GP 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 following Q1 2025 operations and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves.
The Sponsor will receive a promoted/carried interest as indicated above.
You will pay certain fees and compensation 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)(4)
One-Time Fees:
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Acquisition Fee | 2.0% of Purchase Price | Sponsor & Affiliates | Capitalized Equity Contribution |
| Financing Fee(1) | 1.0% of Refinanced Loan Amount or Supplemental | Sponsor & Affiliates | Financing Proceeds |
| Non-Recourse Carveout Guarantor Fee | 0.25% of Loan Amount | Crawford Hoying & Affiliates | Capitalized Equity Contribution |
| Construction Management Fee | 5.0% of cost of Major Capital Improvements | Crawford Hoying | CapEx Budget |
Recurring Fees:
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Asset Management Fee | 1.5% of Effective Gross Income | Sponsor & Affiliates | Cash Flow |
| Property Management Fee | 3.0% of Effective Gross Income | Crawford Hoying | Cash Flow |
(1) A Financing Fee will only be charged in the event of a refinancing or supplemental event.
(2) Fees may be deferred to reduce impact to investor distributions.
(3) RM Communities will pay RM Securities a 1% commission on the proceeds from the sale of any equity in the issuer executed by RM Securities, all or a portion of which will be paid to RM Securities registered representatives. These commissions will be paid out of the acquisition fee paid to RM Communities by the issuer and will not impact investor returns.
(4) For more information on the fees paid to RM Securities and its affiliates 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.
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.