RM Communities
An owner & operator of multifamily real estate
RM Communities has grown its real estate portfolio to include over 2,300 multifamily units and over $375 million in real estate with a fully dedicated team of acquisitions, underwriting, and asset management professionals.1,2
◆ Multifamily (50+ units preferred) and Mixed-Use
◆ $10 Million+ Purchase Price
◆ Class A & B Assets
◆ Primary, Secondary and Tertiary Markets
◆ Value-Add & Core-Plus
Date Acquired: 5/31/2019
Purchase Price: $18,700,000
Units: 310
An affiliate of RM Communities acquired this 310-unit apartment property in May, 2019. The business plan was to make capital improvements to the exterior of the building and renovate a majority of the units to bring rents up to market, which at sale, was projected to generate a property-level IRR of 17.4%.
In the subsequent months, 219 of the 310 units were renovated and all renovated units were successfully leased, achieving an average premium rent rate of $134/month over the prior rent rates.
Based on this strong execution of the business plan which drove a 23% increase in the rental rate, the affiliate of RM Communities was able to successfully sell the property on October 25, 2021, resulting in:
23.1% property-level IRR2,3
1.53x equity multiple2,3
5.3% average cash-on-cash return for investors.2,3
RM Communities is a subsidiary of RealtyMogul Co. and an affiliate of RM Securities
RealtyMogul is a leading online technology platform for real estate investing with the mission of empowering investors to build a diversified real estate portfolio.
The RealtyMogul approach blends personalized service, proven business discipline and data-driven insights. This empowers RealtyMogul’s 290k+ members to create their own real estate portfolios.
RealtyMogul members have collectively invested over $1 billion in capital into more than $7.0 billion of real estate nationwide, including over 38,000 investments made since inception and as of April 17, 20242,4
2 Past performance is not indicative of future results and should not be used as a basis for an investor’s decision to invest. Investments made on the Realty Mogul Platform (“Platform”) prior to ${brokerDealerLaunchDate} were not offered by RM Securities, LLC and should not be viewed as indicative of or attributable to any performance related to the investment products or services offered by RM Securities, LLC, nor should you assume that any products or services offered by RM Securities, LLC will in the future will be profitable or equal to any performance of cumulative or specific past investments made on the Platform. Investment opportunities offered on the Platform are speculative, involve substantial risk (including loss of capital), and are illiquid. Please carefully review all Defined Terms herein, Platform Disclosures, and all of the specific offering documents for each investment product which contain important information about the fees you will pay, conflicts of interest, and relevant specific and general risks. All information and any calculations used herein is based on information from inception through ${brokerDealerLaunchDate}.
3 The Terrace Hill asset was acquired and managed by an affiliate of RM Communities. That affiliate is under the same executive management and employs the same investment and asset management strategies as RM Communities. Terrace Hill is the only deal in the portfolio to have gone full cycle
4 Capital invested includes: (i) common equity investments in real estate companies and funds; (ii) fixed income investments including preferred equity, senior debt, and mezzanine debt in connection with the acquisition or refinance of commercial real estate; (iii) residential debt investments in connection with financing the acquisition, improvement/renovation, and sale of single family homes; and (iii) loans originated for sale which include non-fractionalized loans sold to institutional buyers. Includes capital that has been deployed by, as well as material amounts of committed but undeployed cash held by, affiliated and unaffiliated real estate companies and funds, including cash in real estate funds that has been returned from completed investments. Certain investments are made by Realty Mogul, Co. or its affiliates. This information should not be used as a basis for an investor’s decision to invest. Investment opportunities on the RealtyMogul Platform are speculative and involve substantial risk.