901 North McDonald St.
Mckinney, TX 75069
Pref. Equity • INDUSTRIAL

Min. Invest

$50K

Target Hold

3.5 Yr.

Preferred Returns

8%

Investment Summary

RealtyeVest has a stake in all real estate investments offered in our marketplace.

RealtyeVest has obtained exclusive rights to an investment opportunity for accredited investors, REV McDonald Plaza, LLC . a Florida limited liability company (the “Company”). The manager of the company is RealtyeVest, LLC, a Florida limited liability company (the “Manager” and organizer of the company).

The Company has been formed for the purpose of providing investors the opportunity to invest an existing Industrial Business Plaza located at 901 North McDonald, McKinney, TX 75069 (the "Property").

This A-Class Stock offering is available with an annual 8% preferred return, 4% as a current Pay and 4% to accrue annually. Additionally, the sponsors are offering investors a 70/30 waterfall participation on all free cash flow based on their pro rata share. The total raise amount will be $3,000,000 the minimum investment amount from each investor will be $50,000. RealtyeVest will be paid a fee of $90,000 from the raise. Investors will earn a 8% annual yield on $3,090,000 while the sponsor will pay 8.25% on $3,000,000 net investment.


Investment Type:
Preferred Equity
8% Preferred Return 70/30 Cashflow Split
Term:
42 Months
Possible 1 Year Extension
Raise Amount:
$3,0000,000
Distributions:
Monthly
Equity Multiple:
1.86X

Business Plan:

The sponsor plans to acquire the property at a fair market value with the best financing terms he can find. The property will be managed by the existing professional property management company. The sponsor will be involved in all aspects of the business plan, sponsor will directly facilitate and implementation the gradual increase to market rents and be directly involved in all new leases and re-letting to current tenants. Sponsor will provide operating reports to all partners. Sponsor will handle all monthly distributions.

Why We Like This Deal:

  • Property is 100% Occupied and Presents a Strong Cash-Flow Opportunity
  • SubMarket is 97% Occupied, Ability to Raise Rents is Strong
  • Currently Below Market Rents
  • Barriers to Entry are Extremely High
  • Average Tenant Occupancy is Eight Years

Property Highlights:

  • Building Consumes One City Block, City Streets on All Four Sides
  • Multi Tenant, 44 Tenants, Easy to Re-Let Smaller Tenants.
  • Strong Demographics
  • Property Has Been Maintained in Excellent Condition, No Deferred Maintenance
  • Cement Parking Area and Lifetime Roofs


Risk Disclosures:

The offering materials to be reviewed and considered by investors with respect to this offering include the information described in the website content relating to this offering (as amended and supplemented through and until the closing of the transaction) and the subscription agreement relating to such securities (see the "Documents" tab). We refer to all of this information collectively as the "Property Information Package". Investors should review the Property Information Package in its entirety before investing and should consult with appropriate legal, tax, and investment advisors. Please note that RealtyeVest is not serving as your fiduciary or advisor with respect to this opportunity.

Below are certain risks associated with this investment that should be carefully reviewed prior to any investment in this opportunity:

Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” "plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty. Non-Transferability of Notes: The transferability of the Company's Notes is restricted both by the subscription agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer the Notes. There is also no public market for the Notes and none is expected to be available in the future. Moreover, although there is a defined redemption date for the preferred equity investment in the Fund, an extension option may be exercised and in any event, there can be no assurance that the investment will be liquidated at or promptly after such maturity date (as it may be extended). Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Real Estate Market Risk: Investments related to real estate are subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors. Such conditions are beyond the control of the Company and of the Fund. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both the Company and the Fund.

Borrower Credit Risk: The Company’s obligation to make payments on a Note will not be guaranteed for the length of the term corresponding to the borrower’s loan. The Company (and thus investors) will be relying on the borrower for the execution of its business plan in a way that enables the sponsor to repay the principal of the corresponding borrower loan. The borrower may not have a significant record of performance and may be unable to sell or refinance the underlying property in a way that enables the borrower to fulfill its obligations under the corresponding borrower loan. The borrower loan is being made with respect to a property that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the creditworthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan. The Company does not guarantee payment of the Notes or the corresponding borrower loan, and the Notes are not obligations of our borrower.

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Property Summary

McDonald Business Plaza is a ten building project totaling 95,310 SF. The property is very versatile being able to accommodate sizes ranging from 500 SF to 10,000 SF. It also has space that is 100% office and space that is mostly warehouse. The project attracts retail, office and industrial users. With thirty tenants and staggered lease terms the property offers stability and steady income. The property has historically maintained high occupancy.

Location Overview:

McKinney is positioned in the path of explosive growth being only 18 miles North of Dallas and having a city government that is eager to work with business and developers. McKinney was declared the fastest growing city in the state of Texas and the 8th fastest in the Nation in 2006. The quality of life and charm in McKinney has attracted many to the city. In the last 7 years the number of households has increased by 85% and over 45% of the adults have at least one college degree. In the 2010 census, the city's population was 131,117, making it the 19th most populated city in Texas. The most recent population estimate, produced by the city as of January 1, 2017, is 168,358. Forbes magazine ranked the Dallas-Fort Worth metro as one of "America's Recession-Proof Cities" in 2008. McKinney has been featured in the top 5 of Money Magazine “Best Places to Live” List since 2010. In 2014 McKinney was listed as the “#1 Best Place to Live.” The list, which comes out every other year and ranks cities with populations between 50,000 and 300,000, takes a definitive look at what makes a city a home. With excellent schools, beautiful natural parks and open spaces, affordable and diverse housing, plenty of jobs and a vibrant downtown, McKinney has become one of the most desirable places to live, not just in the metroplex, but in the United States.

Property Address 901 North McDonald St. Mckinney, TX 75069
Property Type Industrial

Market Overview

#1 Best Place to Live in America by Money Magazine:

McKinney was deemed the best place to live in the country by Money magazine on its “Best Places to Live in America” list in 2014. McKinney earned this distinction based on housing affordability, education, arts and culture, safety, health care, diversity and the economy, including the fiscal strength of the government. McKinney ranked #2 in 2012, #5 in 2010 and debuted on the list at #14 in 2008. In the Best Places to Live listing, Money magazine editors and writers rank cities with populations between 50,000 and 300,000 every other year. Money writers visited McKinney to interview residents and city leaders and to assess new developments in McKinney since their last visit in 2012. In addition to statistics, the list takes into account the qualities that make a great home. “In a country, so full of great places, choosing the best is no easy task...Underlying McKinney’s homey Southern charm is a thoroughly modern city. The area is a hotbed for growth-industry jobs...Career and college prep are big in McKinney’s schools.” -Money Magazine

McKinney is the #2 Best Real Estate Market in the U.S.

WalletHub.com rated McKinney the #2 Best Real Estate Market in the country. WalletHub’s analysts compared 300 cities across two key dimensions, including “Real-Estate Market” and “Affordability and Economic Environment.” They used 21 relevant metrics. Each metric was graded on a 100-point scale, with a score of 100 representing the healthiest housing market. McKinney is the #1 U.S. City for First-Time Buyers According to WalletHub.com, McKinney is the #1 U.S. city for first-time buyers. WalletHub’s analysts compared 300 cities of varying sizes across 23 key indicators of market attractiveness, affordability and quality of life. Their data sets ranged from cost of living to real-estate taxes to property-crime rate.

McKinney is the #4 Place to Raise a Family in Texas:

Smartasset.com rated McKinney #4 on its list of Best Places in Texas to Raise a Family. McKinney ranked first for both percent of students who take AP exams (almost 40%) and percent of those students who score 3 or better on their AP exams (76.7%). Additionally, buying a home and staying in McKinney long term tends to pay off. Families in the area saw a 10% increase in median home values from 2011 to 2015.

McKinney #3 in Percentage of Population Growth

McKinney gained the third largest percentage of population in the U.S. between July 2015 and July 2016 according to U.S. Census Bureau estimates. Five of the top 10 cities with more than 50,000 in population growth, and six of the top 15 in percent of population growth were in Texas. McKinney #2 Best City to Start a Family Lendedu ranked McKinney #2 on its list of Best Cities to Start a Family. Factors considered in the study were quality local education system, comparison of median household income to average cost of initial home purchase, crime statistics and population of young families in the area. McKinney #13 Best Place to Buy a Forever Home GoodCall analyzed 509 cities nationwide and McKinney was ranked #13 in the U.S. and within the top 10% for affordability, low crime and unemployment rate, growing population and strong education values.

McKinney is the #5 Most Successful City in America:

Zippa.com ranked McKinney the #5 most successful city in the country based on poverty level, median household income and a low unemployment rate.

McKinney #38 Best Cities for Families:

ApartmentList.com ranked 500 cities in the U.S. on safety, housing affordability, education quality and child friendliness, and McKinney was ranked #38 on the list.

McKinney #11 Best Place in America for First-time Homebuyers:

Out of 448 American cities, Nerdwallet deemed the City of McKinney the #11 Best Place in America for First-time Homebuyers. NerdWallet analyzed the most recent data from the U.S. Census Bureau’s American Community Survey, online data provider NeighborhoodScout and Down Payment Resource for the 448 largest places in the U.S. by population.

McKinney #8 Fastest-Growing City:

WalletHub named McKinney the #8 fastest growing city in the U.S. The analysis compared 515 U.S. cities of varying populations based on 14 key indicators. Criteria included population growth, unemployment rate decrease and growth in regional GDP per capita.

McKinney #12 Safest City for Women:

ValuePenguin.com studied not only crime statistics but also availability and access to healthcare, cancer rates, education levels, workplace policies, female representation at the mayoral level as well as in the police force, conviction rates of offenders and income levels.

McKinney #2 Best Real Estate Market:

WalletHub compared 300 U.S. cities across 16 key metrics to help prospective home buyers find the most attractive real-estate markets. McKinney was ranked #2. Data sets ranged from “median home-price appreciation” to "housing affordability" to "job growth."

McKinney #5 on The 10 Most Successful Cities in America List:

Zippia.com has ranked McKinney #5 on its list of The 10 Most Successful Cities in America. In addition, McKinney also had the lowest unemployment rate in the country. Zippia used poverty level, median household income and unemployment rate to determine the rankings in cities with more than 100,000 people.

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