Presidium is a Texas-based real estate developer, owner and operator with a 20+ year operating history and an existing real estate portfolio with assets totaling $2.6 billion in valuation. Presidium is a vertically integrated firm co-headquartered in Dallas and Austin.
Presidium has extensive experience across both multifamily value-add acquisitions and development. For nearly two decades, Presidium has been acquiring and rehabilitating under-performing multifamily real estate in strong markets and submarkets across the Sunbelt. Further, Presidium has a robust ten-year development pipeline exceeding 25 million buildable SF across 20 individual projects and master-planned communities.
CSL Partners
CSL Partners is a growing private equity real estate company focused on investments in the Sunbelt and mid-western states.
CSL specializes in well-located, Class-B and Core-Plus multifamily real estate with untapped potential based on our investment management approach. Through strong broker relationships, CSL brings institutional-grade management to realize the upside in each opportunity.
By repositioning assets, optimizing efficiencies, and implementing our standardized management approach, CSL optimizes the tenant experience, positively impacting the community and adding value – ultimately leading to stronger resident demand and higher valuations.
Control Rights
Between GP investors, while CSL Partners will be involved in the asset management of the Project and support the day-to-day decision-making, Presidium has all of the control rights as the Sponsor.
Pura Vida Apartments has an Institutional LP Investor – Big Equity Investors. As the Investor Partner, BIG Equity holds oversight and control rights in the Partnership. It must approve major decisions, such as budgets, financings, property sales, and legal actions over $100,000. Starting on the third anniversary of the Agreement’s effective date, the Investor Partner has the right to exercise a forced sale of the Property.
Lease Comparables
| Property | Year Built | # of Units | Avg. Unit SF | Market Rent / Month | Market Rent / SF | Occupancy |
|---|---|---|---|---|---|---|
| Shoma Village | 2022 | 304 | 832 SF | $2,613 | $3.14 | 82% |
| Centrico by Windsor | 2020 | 385 | 941 SF | $3,149 | $3.35 | 95% |
| Gran Vista at Doral | 2015 | 146 | 876 SF | $2,811 | $3.21 | 98% |
| 6600 Main | 2019 | 361 | 1,109 SF | $2,827 | $2.55 | 99% |
| Palmera | 2020 | 440 | 1,021 SF | $3,020 | $2.96 | 89% |
| Windsor at Doral | 2015 | 249 | 1,149 SF | $3,201 | $2.79 | 96% |
| AMLI 8800 | 2016 | 550 | 937 SF | $2,802 | $2.99 | 94% |
| 5250 Park | 2019 | 231 | 967 SF | $3,350 | $3.46 | 96% |
| Average | 2018 | 333 | 982 SF | $2,955 | $3.01 | 96% (1) |
| Pura Vida | 2022 | 260 | 835 SF | $2,669 | $3.20 | 96% |
(1) Average occupancy reflects stabilized properties only.
Sales Comparables
| Property | Year Built | Sale Date | Sale Price | # of Units | $/Unit | $/SF |
|---|---|---|---|---|---|---|
| 275 Parc Fountain | 2020 | April-22 | $50,000,000 | 133 | $375,940 | $486 |
| Lakeridge at the Moors | 1991 | August-22 | $55,125,000 | 175 | $315,000 | $325 |
| 7 West | 1988 | May-22 | $125,000,000 | 304 | $411,184 | $443 |
| Casero Apartments | 2022 | September-22 | $156,000,000 | 356 | $438,202 | $444 |
| Milagro Coral Gable | 2013 | May-23 | $97,500,000 | 237 | $411,392 | $485 |
| Atlas Little Havana | 2022 | June-22 | $120,000,000 | 224 | $535,714 | $738 |
| Averages | 2009 | $100,604,167 | 238 | $414,572 | $487 | |
| Pura Vida | 2021 | $95,000,000 | 260 | $365,385 | $436 |
| Sources of Funds | Amount |
|---|---|
| LP Equity | $37,072,573 |
| GP Equity (1) | $2,366,334 |
| Senior Loan | $62,716,000 |
| Total Sources of Funds | $102,154,908 |
| Uses of Funds | Amount |
|---|---|
| Purchase Price | $95,000,000 |
| Closing Costs | $3,029,410 |
| Operating Reserves | $750,000 |
| Acquisition Fee | $950,000 |
| Financing Costs | $2,425,498 |
| Total Uses of Funds | $102,154,908 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
The expected terms of the debt financing are as follows:
Senior Loan
- Lender: Freddie Mac
- Loan Amount: $64,500,000
- Loan Term: 60 Months
- Interest Type: Fixed
- Interest Rate: 5-Year Treasury + 137 bps with a 3% rate Buydown (5.97% as of 1/13)
- Interest-Only Period: 24 Months
- Amortization: 35 Years
- Loan-to-Value (LTV): 68%
(1) 3% of the rate buydown fee and 2% of the loan prepayment fee have been included in the total project costs.
(2) Interest rate will be locked at or prior to closing.
(3) 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.
Presidium Group intends to make distributions from Pura Vida Investors II, LP as follows:
- Pari-passu all cash flow available for distribution to the Equity Investors(1) until the Equity Investors(1) receive a Preferred Return of 10.0% IRR;
- 70% / 30% (70% to Equity Investors(1) / 30% to Promoted/Carried Interest) of all cash flow available for distribution thereafter.
Presidium 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 September 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Presidium Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Presidium Group 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.
You will pay certain fees and compensation over the life of the transaction; please refer to Presidium Group'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 | 1.0% of Purchase Price | Sponsor | Capitalized Equity Contribution |
| Finders Fee | $300,000 | Third-Party(2) | Capitalized Equity Contribution |
| 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 | 2.0% of Effective Gross Income | Third-Party | Cash Flow |
| General Contractor Fee(3) | 5.0% of CapEx Budget | Sponsor Affiliate | 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) This fee is paid to a third-party company who introduced Big Equity Investors to the Sponsor. BIG Equity’s Control Rights: As the Investor Partner, BIG Equity holds oversight and control rights in the Partnership. It must approve major decisions, such as budgets, financings, property sales, and legal actions over $100,000. Starting on the third anniversary of the Agreement’s effective date, the Investor Partner has the right to exercise a forced sale of the Property.
(3) No major capital projects are anticipated during hold period.
(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, 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.