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Multifamily
Woodford Ridge Townhomes
Bonaire, GA
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Woodford Ridge Townhomes
Bonaire, GA
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Overview
Woodford Ridge Townhomes
Woodford Ridge Townhomes is a newly developed, 93-unit community located in Bonaire, GA. The developer is motivated to sell, offering the Property at a distressed price of approximately $175,000/unit, well below the appraised value of $272,000 per townhome upon construction completion.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 3/2026
Minimum Investment 35000
Estimated Hold Period 18 Months
Investment Strategy Core Plus
Investment Type Equity
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
Distressed Sale: The developer is motivated to sell due to lender pressure, resulting in an acquisition price of approximately $175,000/unit. This distressed price is well below the appraised value of $272,000 per townhome upon construction completion.
Certainty and Risk Mitigation: The Property is being purchased in a three-phase approach aligned with the completion of each construction phase. Phase 1 closed on 11/22/2024 comprising 10 townhomes, a gym, and a leasing office. Some of the units in Phase 1 are already occupied and managed by Woodruff Property Management, offering immediate income and operational stability. Additionally, the loan has been secured, eliminating borrowing risks.
Experienced Sponsor: Reynolds Asset Management (RAM), led by seasoned real estate investor Louis Reynolds, is a multifaceted firm focused on development and value-add multifamily projects. With a track record of over $644 million in successful transactions, RAM has become a trusted name in real estate, particularly within the multifamily sector.
Proven Success in the Submarket: The Sponsor is building on the success of a previously acquired distressed property in the Warner Robins submarket that was left in disrepair. They successfully rehabilitated approx. 50% of the units (275 apartments), and completed significant capital improvements. These efforts resulted in an increase in net operating income through higher revenue and optimized expenses.
Stable Economic Driver: Robins Air Force Base (RAFB) in Warner Robins, GA, is a major economic driver, contributing $3.845 billion to Georgia’s economy in 2023—a 7.6% increase from the previous year. This includes $1.62 billion in payroll and $6.15 billion in contract awards, with $458 million awarded within Georgia. Of this, Houston and Bibb Counties received 40%. The base employs nearly 24,000 people, significantly impacting the local economy. (Robins Air Force Base Economic Impact Statement)
7.0% Exit Cap Rate: The Sponsor intends to exit the investment assuming a 7.0% exit cap rate, more conservative than the CoStar projections of 6.0% for this market. Based on the projections, the sale price of approximately $241,000 per unit is 14.5% lower than the stabilized price per unit of approximately $282,000, as indicated by the appraisal.
Above-Market Finishes: Each townhome features a spacious 1,044-square-foot layout with three bedrooms and two bathrooms. The units boast above-market finishes such as luxury vinyl plank flooring, granite countertops, stainless steel appliances, and in-unit washer/dryers. The units are complemented by desirable amenities, including a gym and 28 rentable storage units.
Experienced Property Manager: Woodruff Property Management is one of the top property management companies in the Southeast, with a 45-year history and nearly 7,000 multifamily units in their portfolio. RAM has partnered with Woodruff in the past, and they have already begun advertising and pre-leasing the Property as of November 2024.
Distressed Sale: The developer is motivated to sell due to lender pressure, resulting in an acquisition price of approximately $175,000/unit. This distressed price is well below the appraised value of $272,000 per townhome upon construction completion.
Certainty and Risk Mitigation: The Property is being purchased in a three-phase approach aligned with the completion of each construction phase. Phase 1 closed on 11/22/2024 comprising 10 townhomes, a gym, and a leasing office. Some of the units in Phase 1 are already occupied and managed by Woodruff Property Management, offering immediate income and operational stability. Additionally, the loan has been secured, eliminating borrowing risks.
Experienced Sponsor: Reynolds Asset Management (RAM), led by seasoned real estate investor Louis Reynolds, is a multifaceted firm focused on development and value-add multifamily projects. With a track record of over $644 million in successful transactions, RAM has become a trusted name in real estate, particularly within the multifamily sector.
Proven Success in the Submarket: The Sponsor is building on the success of a previously acquired distressed property in the Warner Robins submarket that was left in disrepair. They successfully rehabilitated approx. 50% of the units (275 apartments), and completed significant capital improvements. These efforts resulted in an increase in net operating income through higher revenue and optimized expenses.
Stable Economic Driver: Robins Air Force Base (RAFB) in Warner Robins, GA, is a major economic driver, contributing $3.845 billion to Georgia’s economy in 2023—a 7.6% increase from the previous year. This includes $1.62 billion in payroll and $6.15 billion in contract awards, with $458 million awarded within Georgia. Of this, Houston and Bibb Counties received 40%. The base employs nearly 24,000 people, significantly impacting the local economy. (Robins Air Force Base Economic Impact Statement)
7.0% Exit Cap Rate: The Sponsor intends to exit the investment assuming a 7.0% exit cap rate, more conservative than the CoStar projections of 6.0% for this market. Based on the projections, the sale price of approximately $241,000 per unit is 14.5% lower than the stabilized price per unit of approximately $282,000, as indicated by the appraisal.
Above-Market Finishes: Each townhome features a spacious 1,044-square-foot layout with three bedrooms and two bathrooms. The units boast above-market finishes such as luxury vinyl plank flooring, granite countertops, stainless steel appliances, and in-unit washer/dryers. The units are complemented by desirable amenities, including a gym and 28 rentable storage units.
Experienced Property Manager: Woodruff Property Management is one of the top property management companies in the Southeast, with a 45-year history and nearly 7,000 multifamily units in their portfolio. RAM has partnered with Woodruff in the past, and they have already begun advertising and pre-leasing the Property as of November 2024.
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Management
For more information, view the Sponsor's Investment Memorandum.
Reynolds Asset Management

Reynolds Asset Management (RAM), led by seasoned real estate investor Louis Reynolds, is a multifaceted firm with a focus on development and value-add multifamily projects. With an impressive track record of over $644 million in successful transactions, RAM has become a trusted name in real estate, particularly within the multifamily sector. The firm’s hands-on experience includes a spectrum of over 100 acquisitions, many of which target value-add opportunities where RAM’s team employs innovative strategies to maximize property value and investor returns

Sponsor Track Record
Date of Purchase Address City State Zip Purchase Price Rehab Budget Total Invested Date of Sale / Completion Sale Price / Value Total Transaction Costs Total Net Profits ROI Hold Time Status Units
01/01/97 Various Locations Hoboken NJ 07030  $2,500,000 $400,000 $2,900,000 02/01/07 $5,200,000 $263,000 $2,037,000 199% 3,683 Sold 28
01/01/97 Various Locations Hoboken NJ 07030 $5,680,000 $500,000 $6,180,000 02/01/07 $10,140,000 $522,600 $3,437,400 179% 3,683 Sold 54
02/01/99 1940 Route 57 Mansfield NJ   $100,000   $100,000 06/15/15 $750,000 $32,500 $617,500 2470% 5,978 Sold 1
05/01/99 435 New York Ave Jersey City NJ 07307 $120,000 $65,000 $185,000 04/02/07 $580,000 $26,200 $368,800 388% 2,893 Sold 2
06/07/00 849 Garden St Hoboken NJ 07030 $650,000 $110,000 $760,000 05/12/11 $1,514,000 $76,810 $677,190 249% 3,991 Sold 4
05/04/01 1125 Washington St Hoboken NJ 07030 $390,000 $15,000 $405,000 11/15/04 $530,000 $30,950 $94,050 84% 1,291 Sold 1
07/01/02 311 Monroe St Hoboken NJ 07030 $575,000 $350,000 $925,000 10/25/04 $1,530,000 $75,575 $529,425 107% 847 Sold 6
07/19/04 1125 Washington St Hoboken NJ 07030 $425,000 $100,000 $525,000 02/06/06 $800,000 $42,625 $232,375 113% 567 Sold 1
08/19/04 267 Webster Ave Jersey City NJ 07307 $400,443 $43,000 $443,443 02/26/15 $566,111 $38,317 $84,351 59% 3,843 Sold 4
07/18/08 265 Webster Ave Jersey City NJ 07307 $380,210 $81,000 $461,210 02/26/15 $611,018 $40,056 $109,752 62% 2,414 Sold 4
04/15/09 101 Martin Terr Woodbridge NJ 07095 $850,000 $30,000 $880,000 06/15/15 $1,800,000 $93,250 $826,750 341% 2,252 Sold 30
04/15/09 330 Crowells Rd Highland Park NJ 08904 $1,530,000 $30,000 $1,560,000 06/15/15 $3,24,000 $167,850 $1,512,150 367% 2,252 Sold 54
04/15/09 307 Division St Edison NJ 08817 $566,667 $30,000 $596,667 06/15/15 $1,200,000 $62,167 $541,166 315% 2,252 Sold 20
04/15/09 304 S. Second St Highland Park NJ 08904 $963,333 $30,000 $993,333 06/15/15 $2,040,000 $105,683 $940,984 347% 2,252 Sold 34
04/14/10 309 Monroe St Hoboken NJ 07030 $1,241,289 $69,000 $1,310,289 02/23/11 $1,717,975 $116,931 $290,755 77% 315 Sold 7
03/24/11 205 Webster Ave Jersey City NJ 07307 $375,000 $140,000 $515,000 02/26/15 $797,756 $49,263 $233,493 100% 1,435 Sold 6
02/23/12 41 Main Street Orange NJ 07050 $1,983,774 $370,000 $2,353,774 08/06/14 $2,765,000 $187,844 $223,382 26% 895 Sold 46
03/29/12 222-224 N Arlington East Orange NJ 07017 $607,500 $66,000 $673,500 08/29/13 $999,999 $65,187 $261,312 120% 518 Sold 9
04/27/12 207 S Harrison Ave East Orange NJ 07018 $450,000 $150,000 $600,000 12/23/13 $1,601,222 $91,311 $909,911 347% 605 Sold 25
06/21/12 17 Summit East Orange NJ 07017 $1,672,384 $97,000 $1,769,384 04/25/14 $2,826,429 $183,131 $873,914 170% 673 Sold 48
08/30/12 75 Prospect St East Orange NJ 07020 $5,471,445 $370,000 $5,841,445 12/19/13 $7,248,395 $499,206 $907,744 52% 476 Sold 96
10/16/12 298-302 William St East Orange NJ 07019 $292,072 $15,000 $307,072 08/28/13 $578,822 $36,243 $235,507 268% 316 Sold 8
10/26/12 201 Webster Ave Jersey City NJ 07307 $482,679 $112,000 $594,679 02/26/15 $1,028,911 $63,513 $370,719 159% 853 Sold 11
12/21/12 60 N. Arlington East Orange NJ 07017 $2,963,655 $64,000 $3,027,655 11/03/14 $3,821,742 $265,178 $528,909 66% 682 Sold 64
11/21/13 426-432 Central Ave Orange NJ 07050 $2,275,000 $340,000 $2,615,000 07/23/17 $3,780,000 $208,075 $956,925 105% 1,340 Sold 42
07/24/13 546 Prospect St East Orange NJ 07317 $1,000,000 $55,000 $1,055,000 08/05/15 $2,100,000 $109,000 $936,000 307% 742 Sold 20
12/09/13 75 N Walnut St East Orange NJ 07317 $1,510,811 $350,000 $1,860,811 06/19/15 $2,850,000 $180,270 $808,919 111% 557 Sold 4
01/02/14 (Mill Creek) 131 Scarborough Wilmington DE 19804 $12,645,932 $781,900 $13,427,832 09/13/18 $15,100,000 $920,148 $752,020 19% 1,715 Sold 156
01/02/14 (Limestone) 4605 Patrician Wilmington DE 19808 $10,343,491 $234,570 $10,578,061 09/13/18 $11,800,000 $730,587 $491,352 17% 1,715 Sold 136
09/18/14 65 Prospect St East Orange NJ 07318 $799,725 $500,000 $1,299,725 05/29/15 $2,720,000 $155,993 $1,264,282 181% 253 Sold 21
10/22/14 245 Duncan Jersey City NJ 07307 $259,416 $74,000 $333,416 02/08/17 $800,000 $46,485 $420,099 303% 840 Sold 6
06/01/14 2900 Saint Clair Dr Temple Hills MD 20748 $10,900,000 $250,000 $11,150,000 08/27/17 $14,600,000 $856,500 $2,593,500 87% 1,183 Sold 127
06/01/14 4223 28th Ave Temple Hills MD 20748 $14,900,000 $250,000 $15,150,000 08/27/17 $20,000,000 $1,172,500 $3,677,500 93% 1,183 Sold 174
06/01/14 2900 Saint Clair Dr Temple Hills MD 20748 $11,700,000 $250,000 $11,950,000 08/27/17 $15,650,000 $918,500 $2,781,500 88% 1,183 Sold 136
04/30/15 12-20 Canfield Street Orange NJ 07050 $1,016,597 $3,300,000 $4,316,597 06/13/19 $7,325,000 $313,332 $2,695,071 76% 1,505 Sold 48
07/02/15 210-214 Franklin St. Bloomfield NJ 07003 $4,578,307   $4,578,307 07/13/16 $6,044,275 $416,671 $1,049,297 92% 377 Sold 49
07/21/15 235 Franklin Bloomfield NJ 07003 $285,000 $18,000 $303,000 07/13/16 $405,725 $27,411 $75,314 84% 358 Sold 4
11/01/15 2603 Southern Avenue SE Temple Hills MD 20748 $34,000,000 $350,000 $34,350,000 08/27/17 $45,500,000 $2,670,000 $8,480,000 96% 665 Sold 395
06/01/16 (Sandpiper) 800 Leisure Lake Warner Robins GA 31088 $21,000,000 $1,235,000 $22,235,000 03/04/19 $41,700,000 $1,567,500 $17,897,500 276% 1,006 Sold 530
09/12/19 1300 Independence Place Hinesville GA 31313 $25,975,000 $300,000 $26,275,000 07/28/21 $34,200,000 $900,000 $7,025,000 103% 685 Sold 264
06/24/20 AmeriGas Portfolio Various IL   $2,615,000   $2,615,000 10/18/23 $3,430,000 $205,000 $610,000 93% 1,211 Sold 3
01/01/19 158 Phelps Rd Ridgewood NJ 07450 $1,500,000 $1,000,000 $2,500,000 06/15/23 $3,800,000 $205,000 $1,095,000 80% 1,626 Sold 1
01/01/16 2 Spring St Newark NJ   $1,000,000 $14,000,000 $15,000,000 01/22/25 $34,125,000   $19,125,000 134% 3,309 Owned 87
03/01/16 17-19 W. Main St Bound Brook NJ 08805 $350,000 $7,500,000 $7,850,000 01/22/25 $11,000,000   $3,150,000 42% 3,249 Owned 29
05/25/16 7-15 W. Main St Bound Brook NJ 08805 $1,590,000 $14,000,000 $15,590,000 11/10/22 $22,000,000 $630,000 $5,780,000 40% 2,360 Sold 64
03/01/19 2861 Mercer West Middlesex Rd West Middlesex PA   $5,600,000 $600,000 $6,200,000 01/22/25 $12,750,000   $6,550,000 328% 2,154 Owned 128
03/01/19 615 Flower St Grove City PA   $1,560,000 $185,000 $1,745,000 01/22/25 $4,600,000   $2,855,000 497% 2,154 Owned 52
04/01/19 15 Valley View Road New Wilmington PA   $450,000 $75,000 $525,000 01/22/25 $1,400,000   $875,000 467% 2,123 Owned 14
04/01/20 35 Violet Ave Poughkeepsie NY   $2,400,000 $12,000,000 $14,400,000 01/22/25 $32,700,000   $18,300,000 145% 1,757 Owned 90
04/01/21 606 Freeman St Orange NJ   $3,650,000 $19,000,000 $22,650,000 01/22/25 $40,200,000   $17,550,000 88% 1,392 Owned 103
06/01/21 Town Centre Road Pine Plains NY   $4,000,000 $13,500,000 $17,500,000 01/22/25 $21,600,000   $4,100,000 28% 1,331 Owned 48
06/01/21 Embers Parkway Cape Coral FL   $8,500,000 $2,500,000 $11,000,000 01/22/25 $40,110,000   $29,110,000 629% 1,331 Owned 1,337
06/01/21 Nelson Rd (2) Cape Coral FL   $20,000 $30,000 $50,000 01/22/25 $9,600,000   $9,550,000 27286% 1,331 Owned 320
04/01/22 3131 Princeton Pike Lawrenceville NJ   $12,500,000 $1,000,000 $13,500,000 01/22/25 $22,300,000   $8,800,000 213% 1,027 Owned 35
04/01/22 3131 Princeton Pike (3) Lawrenceville NJ   $1,000,000 $300,000 $1,300,000 01/22/25 $10,000,000   $8,700,000 1582% 1,027 Owned 203
06/15/23 14011 Brookpark Rd Brook Park OH 44142 $5,200,000 $850,000 $6,050,000 01/22/25 $9,150,000   $3,100,000 144% 587 Owned 125
10/01/23 1103 Dudley Dr Shreveport LA 71104 $9,000,000 $950,000 $9,950,000 01/22/25 $11,000,000   $1,050,000 33% 479 Owned 228
11/01/23 414 Preston Blvd Bossier City LA 71111 $21,750,000 $1,000,000 $22,750,000 01/22/25 $28,100,000   $5,350,000 83% 448 Owned 271
02/22/24 5201 Summerhill Road Texarkana TX   $10,038,000 $1,000,000 $11,038,000 01/22/25 $15,200,000   $4,162,000 119% 335 Owned 184
02/22/24 700 Sowell Lane Texarkana TX   $11,069,000 $1,000,000 $12,069,000 01/22/25 $14,700,000   $2,631,000 70% 335 Owned 176
04/25/24 5650 Knighthood Ln Columbus OH 43231 $15,000,000 $1,200,000 $16,200,000 01/22/25 $18,250,000   $2,050,000 41% 272 Owned 176
  Totals / Averages       $302,651,730 $103,215,470 $405,867,200   $644,477,380 $15,368,362 $223,241,818 125% (1)     1,477

(1) ROIs in excess of 100% are rare and uncharacteristic of our typical result and should not be the basis of your investment decision.

(2) This represents the current value and ROI is based upon projected returns. This is a subdivision of a larger parcel where the additional value is realized due to zoning and land use changes post-closing.

(3) Subdivided from the original larger office complex parcel. The value was created by various zoning and redevelopment agreements to allow for the property to be developed into 203 apartments + retail.

The above bios and track record were provided by Reynolds Asset Management and have not been independently verified by RealtyMogul.

Management Team
Management
Louis Reynolds
Founder & CEO

Lou Reynolds began his real estate investing career in 1998, investing in both development and existing multifamily projects. Over the years, Lou has gained extensive experience and a strong track record of successful investments. Regardless of asset class, area, or market challenge, Lou strives to maximize an investment's potential while minimizing downside risk.

Lou has a pedigree of over 100 successful purchase and sale transactions in the multifamily space, primarily in the value-added or opportunistic area. He is skilled in evaluating and managing real estate investments, bringing a comprehensive understanding of both physical and financial aspects. Lou's expertise spans deal sourcing, modeling, evaluation, and management.

Management
Eric Jeanette
Project Manager

Eric Jeanette is an asset manager who brings a diverse skillset to the team. Soon after attaining a finance degree from Ramapo College, he began investing in distressed condos at auction. While working for a top 100 CPG company, he was a licensed real estate agent and has been a loan originator for the past few decades.

Working on multiple projects for RAM enabled Eric to develop construction and asset management skills. He recently completed a new build of a 103-unit project in New Jersey and helped transition the asset to the management company.

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

Lease Comparables

Property Year Built Floorplan # of Units $/Unit SF $/SF Distance from Subject
Cadia Warner Robins 2023 3 BR, 2.5 BA 251 $2,120 1,458 $1.45 1.8 miles
Joy Park Apartments 2024 3 BR, 2 BA 280 $1,850 1,386 $1.33 5.0 miles
The Patrician 2001 3 BR, 2 BA 120 $1,920 1,030 $1.60 1.6 miles
Averages     217 $1,963 1,291 $1.46 2.8 miles
Woodford Ridge (Subject) 2024-2025 3 BR, 2 BA 93 $1,833 1,044 $1.76  

 

Sales Comparables

Property Date Sold Year Built Units Avg. Unit Size Sale Price $/Unit $/SF Distance from Subject
Cadia Warner Robins(1) Dec-23 2023 251 1,024 SF $64,700,000 $257,769 $252 1.8 miles
Subject (Going-In) Nov-24 2024-2025 93 1,044 SF $16,245,340 $174,681 $167  
Subject (At Exit) May-26 2024-2025 93 1,044 SF $22,536,040 $242,323 $232  

(1) According to the Sponsor, Cadia Warner Robins is the best comp due to proximity, newer vintage, and similar layout (3x2 w/o garage).

Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses
Sources of Funds Amount
LP Equity $3,708,573
GP Equity(1) $927,143
Loan Proceeds $13,650,000
Total Sources of Funds $18,285,716

 

Uses of Funds Amount
Purchase Price $16,245,340
Closing Costs(2) $441,421
Acquisition Loan Fees $409,500
Year 1 Insurance $65,100
3 Mos RET $51,708
Operating Account $109,603
Interest Reserve $638,138
Sponsor Acquisition Fee $324,907
Total Uses of Fund $18,285,716

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

(2) Includes fees paid to RM Securities, LLC and RM Technologies, LLC. For more information, please see the Fees and Disclosures sections.

Debt Assumptions

The terms of the debt financing are as follows:

Senior Loan

  • Lender: Encore SFR Finance LLC
  • Loan Amount: $13,650,000
  • Loan Term: 24 months
  • Extension Options: One 6-month extension
  • Interest Rate: SOFR + 4.5% with a floor of 4.5% (1)
  • Interest Type: Floating
  • Interest-Only Period: Full Term I/O
  • Amortization: Full Term I/O
  • Stabilized Loan-to-Value (LTV): 62.0%
  • Loan-to-Cost (LTC): 75.0%

(1) SOFR is 4.3% as of January 16, 2025, resulting in an interest rate of 9.0%. The Sponsor has underwritten a rate of 9.35% for the duration of the hold period.

(2) 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.

Distributions

Reynolds Asset Management intends to make distributions from DCS Peach Blossom, LLC as follows:

  1. Pari-passu all cash flow available for distribution to the Equity Investors(1) until the Equity Investors(1) receive a Preferred Return of 8.0% IRR;
  2. 70% / 30% (70% Equity Investors(1) / 30% Promoted/Carried Interest) of all cash flow available for distribution thereafter.

Reynolds Asset Management 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 March 2026 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Reynolds Asset Management, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Reynolds Asset Management will receive a promoted/carried interest as indicated above.

(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including the Sponsorship Group.

(2) Given the Property Owner will close on the condominium units located on the Property in various tranches and at different closings, the IRR will be calculated as follows: (a) the IRR will begin accruing on the closing date of the next tranche for all Subscribers who have submitted their funds as of that date; and (b) the IRR will begin accruing on the date funds are submitted to escrow for Subscribers who subscribe after the closing of the next tranche (even if funds are not released from escrow until later).

Fees

You will pay certain fees and compensation over the life of the transaction; please refer to Reynolds Asset Management's materials for details. The following fees and compensation will be paid(1)(4):

One-Time Fees:

Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 3.0% of Purchase Price (2% is paid at deal closing; 1% is paid at exit) Sponsor Capitalized Equity Contribution / Sale Proceeds
Loan Guarantee Fee 1.0% of Loan Amount Sponsor Capitalized Equity Contribution
Disposition Fee 1.0% of Sale Price Sponsor Sale Proceeds
Refinancing Fee(2) 1.0% of Loan Amount Sponsor Refinance Loan Proceeds
Platform Fee Flat One-Time Fee of $15,000 RM Securities, LLC Capitalized Equity Contribution
Placement Fee(4) 4.00% of the Raised Amount up to $2 million, plus 3.50% of the Raised Amount in excess of $2 million. RM Securities, LLC Capitalized Equity Contribution

Recurring Fees:

Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 2.0% of Effective Gross Income Sponsor Cash Flow
Property Management Fee 3.0% of Effective Gross Income with a monthly floor of $3,000 Third-Party Property Manager Cash Flow
CapEx Fee(3) 5% of any Capital Expenditure Sponsor Cash Flow
Administration Solution Licensing Fee(4) 1.00% per annum of the aggregate capital contributions of the RM platform investor for whom RM Technologies provides the Administration Solution. RM Securities, LLC Cash Flow / Capitalized Equity Contribution

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

(2) Given the 18-month hold period and the loan terms of 24 months plus one extension, a refinance has not been included in the base-case underwriting.

(3) The Sponsor doesn't intend to undertake any capital projects on the Property.

(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 CRSRegulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

Sources & Uses
Sources of Funds Amount
LP Equity $3,708,573
GP Equity(1) $927,143
Loan Proceeds $13,650,000
Total Sources of Funds $18,285,716

 

Uses of Funds Amount
Purchase Price $16,245,340
Closing Costs(2) $441,421
Acquisition Loan Fees $409,500
Year 1 Insurance $65,100
3 Mos RET $51,708
Operating Account $109,603
Interest Reserve $638,138
Sponsor Acquisition Fee $324,907
Total Uses of Fund $18,285,716

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

(2) Includes fees paid to RM Securities, LLC and RM Technologies, LLC. For more information, please see the Fees and Disclosures sections.

Debt Assumptions

The terms of the debt financing are as follows:

Senior Loan

  • Lender: Encore SFR Finance LLC
  • Loan Amount: $13,650,000
  • Loan Term: 24 months
  • Extension Options: One 6-month extension
  • Interest Rate: SOFR + 4.5% with a floor of 4.5% (1)
  • Interest Type: Floating
  • Interest-Only Period: Full Term I/O
  • Amortization: Full Term I/O
  • Stabilized Loan-to-Value (LTV): 62.0%
  • Loan-to-Cost (LTC): 75.0%

(1) SOFR is 4.3% as of January 16, 2025, resulting in an interest rate of 9.0%. The Sponsor has underwritten a rate of 9.35% for the duration of the hold period.

(2) 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.

Distributions

Reynolds Asset Management intends to make distributions from DCS Peach Blossom, LLC as follows:

  1. Pari-passu all cash flow available for distribution to the Equity Investors(1) until the Equity Investors(1) receive a Preferred Return of 8.0% IRR;
  2. 70% / 30% (70% Equity Investors(1) / 30% Promoted/Carried Interest) of all cash flow available for distribution thereafter.

Reynolds Asset Management 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 March 2026 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Reynolds Asset Management, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Reynolds Asset Management will receive a promoted/carried interest as indicated above.

(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including the Sponsorship Group.

(2) Given the Property Owner will close on the condominium units located on the Property in various tranches and at different closings, the IRR will be calculated as follows: (a) the IRR will begin accruing on the closing date of the next tranche for all Subscribers who have submitted their funds as of that date; and (b) the IRR will begin accruing on the date funds are submitted to escrow for Subscribers who subscribe after the closing of the next tranche (even if funds are not released from escrow until later).

Fees

You will pay certain fees and compensation over the life of the transaction; please refer to Reynolds Asset Management's materials for details. The following fees and compensation will be paid(1)(4):

One-Time Fees:

Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 3.0% of Purchase Price (2% is paid at deal closing; 1% is paid at exit) Sponsor Capitalized Equity Contribution / Sale Proceeds
Loan Guarantee Fee 1.0% of Loan Amount Sponsor Capitalized Equity Contribution
Disposition Fee 1.0% of Sale Price Sponsor Sale Proceeds
Refinancing Fee(2) 1.0% of Loan Amount Sponsor Refinance Loan Proceeds
Platform Fee Flat One-Time Fee of $15,000 RM Securities, LLC Capitalized Equity Contribution
Placement Fee(4) 4.00% of the Raised Amount up to $2 million, plus 3.50% of the Raised Amount in excess of $2 million. RM Securities, LLC Capitalized Equity Contribution

Recurring Fees:

Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 2.0% of Effective Gross Income Sponsor Cash Flow
Property Management Fee 3.0% of Effective Gross Income with a monthly floor of $3,000 Third-Party Property Manager Cash Flow
CapEx Fee(3) 5% of any Capital Expenditure Sponsor Cash Flow
Administration Solution Licensing Fee(4) 1.00% per annum of the aggregate capital contributions of the RM platform investor for whom RM Technologies provides the Administration Solution. RM Securities, LLC Cash Flow / Capitalized Equity Contribution

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

(2) Given the 18-month hold period and the loan terms of 24 months plus one extension, a refinance has not been included in the base-case underwriting.

(3) The Sponsor doesn't intend to undertake any capital projects on the Property.

(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 CRSRegulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

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.
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