Industry:
Real Estate

Security Type:
Preferred Stock
Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

Equity Opportunity

Date Filed:
October 02, 2020

Date Expires:
January 31, 2021

Open to Investors

Platform:
Small Change

Management

The developer of the Project is RH-RP Management LLC, a company owned by Ricardo Hernandez and Reinaldo Padron. Ricardo Hernandez is a multi-disciplinary real estate expert with over 25-years’ experience in the real estate industry. He has experience and expertise in brokerage, real estate development, financial analysis, project management and architectural design. As the founder and CEO of the Office America Group, Ricardo is well versed in evaluating and executing acquisitions through financial modeling and market research for ground up residential, commercial and mixed-use developments. Office America Group, a boutique real estate development company located in Miami, Florida has developed commercial and residential projects in the $5 - $15 million range. Currently, the group has five projects in the permitting process, three in Miami and one in Palm Beach, Florida and one in Jamaica Plain in Boston, Massachusetts. When completed, these projects will yield 191,000 square feet of developed space, including 261 rental units and +/- 6,000 SF of retail. Previously Ricardo built and managed a 36,000 square foot office building for the Florida Department of Health which was sold in 2018. Ricardo was the successful bidder in an Request For Proposals invitation for this project.

In addition, Ricardo is a senior commercial real estate advisor at ONE Commercial and ONE Sotheby’s, where he helps investors and developers find real estate opportunities in the South Florida market. Ricardo also represents owners in the acquisition/disposition of real estate assets. Past professional roles have included CFO and Executive VP at Riviera Point Development Group, where he oversaw company financials and evaluated potential acquisitions and dispositions and VP Real Estate Special Assets Officer at Mercantil Commercebank where he analyzed risk factors associated with various types of real estate credit facilities.

Ricardo holds a master’s degree in real estate development from Columbia University, a Master of Science in Project Management, a Bachelor of Science in Architecture, and advanced courses at MIT.

Reinaldo Padron, is a civil engineer, real estate analyst and marketing expert. Throughout the years he has combined and applied his experience to different projects, most often related to the real estate industry. An entrepreneur by nature and a blockchain advocate, Reinaldo successfully launched a sports/wellness application in Mexico, which was featured on Shark Tank (MX). Reinaldo is planning to launch a real estate division under this brand, to provide holistic wellness design services to real estate projects.

Deal Structure

Under the Company’s LLC agreement, the Company will make distributions to its owners quarterly, starting at the end of the first quarter after this Offering closes. The source of the distribution is immaterial. Instead, all distributions will be made in the following order of priority:

1. First, the Available Cash shall be distributed to the Investor Members until they have received their Preferred Return for the current year.
2. Second, the balance of the Available Cash, if any, shall be distributed to the Investor Members until they have received any shortfall in the Preferred Return for any prior year.
3. Third, the balance of the Available Cash, if any, shall be distributed to the Investor Members until they have received a full return of their Unreturned Investment.
4. Fourth, the balance of the Available Cash, if any, shall be distributed to the Sponsor as a promoted interest.

Each Investor will receive an annual preferred return of 8% on their investment, which will accumulate but not be compounded starting on the date the investment is made. The Company plans to sell or refinance the property approximately 2 years after construction is completed and expects the sale price of the property at that time to be approximatetly $4,000,000.

If the Project does not move forward for any reason, the Company plans to sell the property and return the funds invested. The current value of the property is estimated to be $470,000 as compared to similar-sized lots sold near the Project property over the last 20 months.

Additional Reports

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Key Deal Facts

• Proximity to a scene. Adjacent to Miami’s Wynwood Arts District.
• A cultural hub. Galleries, museums and open-air art installations.
• Good transit. Plenty of transportation options nearby.
• Density encouraged. New zoning regulations that encourage density and mixed use.
• A redevelopment hub. Lots of development underway nearby.
• Supports the big picture. Part of a comprehensive neighborhood plan.

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