RealtyMogul Income REIT Sells Three Pacific Northwest Multifamily Assets at Deep Losses to Underwriting

RealtyMogul Income REIT, Inc. has exited three Class A multifamily properties in the Portland-Vancouver metropolitan area at prices substantially below both acquisition cost and initial return projections, according to a Form 1-U current report detected by AltStreet monitoring on August 28, 2026. The sale, which closed August 20, generated equity multiples between approximately 0.3x and 0.6x across the three assets, against underwriting projections ranging from 1.9x to 2.6x, and represents one of the most significant disclosed loss events in the REIT's public filing history among the entities AltStreet monitors.

What the filings show

The Form 1-U (accession 000149315226040457, filed August 27, 2026, reporting events of August 20, 2026) discloses the simultaneous sale of all three properties to a single unaffiliated third-party buyer. The filing reports the following sale prices and outcomes, each compared to original acquisition costs disclosed in prior filings:

Edison Apartments, a 64-unit Class A community in Gresham, Oregon, within the Portland MSA, was acquired via a $5.5 million joint-venture limited partnership equity investment on March 30, 2022. The property sold for $13.6 million against an original acquisition cost of $19.5 million, with the filing indicating an equity multiple of approximately 0.3x versus a projected 2.4x. Roosevelt Commons, a multifamily property in Vancouver, Washington, sold for $10.07 million against an acquisition cost of $12.55 million, achieving approximately 0.6x versus a projected 1.9x. Minnehaha Meadows, also in Vancouver, sold for $14.225 million against an acquisition cost of $16.45 million, achieving approximately 0.5x against a projected 2.6x over a stated 4.9-year hold period.

The filing states that all three sales were executed together as a portfolio transaction with the same unaffiliated buyer. The REIT's stated rationale, taken verbatim from the filing, is that continuing to hold the investments 'was not expected to produce an attractive risk-adjusted return.' The filing further states the company intends to redeploy proceeds 'into opportunities better aligned with its long-term strategy and return objectives.'

• —Edison Apartments (Gresham, OR): sold $13.6M / acquired $19.5M / ~0.3x actual vs. 2.4x projected
• —Roosevelt Commons (Vancouver, WA): sold $10.07M / acquired $12.55M / ~0.6x actual vs. 1.9x projected
• —Minnehaha Meadows (Vancouver, WA): sold $14.225M / acquired $16.45M / ~0.5x actual vs. 2.6x projected
• —Sale date: August 20, 2026; buyer: unaffiliated third party (unnamed in filing)
• —Filing contains no explanation for how redeployment proceeds will be allocated or on what timeline

Background

RealtyMogul was founded in 2012 and launched in 2013 by Jilliene Helman and Justin Hughes as an online marketplace for commercial real estate investing. The Income REIT, structured as a non-traded REIT regulated under Regulation A, holds debt and equity investments across multifamily, office, and retail property types, targeting monthly income distributions for investors. The minimum investment is $5,000 and the vehicle is open to both accredited and non-accredited investors, per platform-reported terms.

The three divested assets were all acquired in 2021 and 2022, a period of elevated multifamily valuations across the Pacific Northwest. The legislative context cited in the filing is material: Oregon adopted a statewide rent control law via Senate Bill 608 in 2019, which limits annual rent increases to 7% plus inflation, requires 90-180 day notice periods for increases, and bans no-cause evictions after a tenant's first year of occupancy. Washington State extended a parallel framework to Vancouver: on May 8, 2025, Washington Governor Bob Ferguson signed House Bill 1217 into law, establishing statewide rent control, capping annual rent increases at 7% plus inflation or 10%, whichever is lower, for a period of 15 years. The effective date of Washington's law postdates the original underwriting for all three properties.

A prior Form 1-U filing for the Income REIT, dated June 1, 2026 (separate accession), reported that the aggregate value of properties owned by or underlying loans and other investments was approximately $479 million at that date, with aggregate inception-to-date property value of approximately $900 million. The three divested assets were part of that portfolio. The August 27 filing itself reports an aggregate portfolio value of approximately $441 million as of that date — after the three sales. Separately, a January 2026 Form 1-U reported aggregate gross offering proceeds of approximately $148,194,000 and approximately 7,700 unique investors as of November 30, 2025.

The pattern in AltStreet's data

AltStreet's monitoring of the Income REIT shows a sequence of filing activity in 2026 that frames the divestiture. An August 6, 2026 Form 1-U reported additional equity investments in three industrial and mixed-use properties, including a Chattanooga, Tennessee industrial building and an Orlando, Florida mixed-use tower. That filing predates the Pacific Northwest exit by roughly three weeks and is consistent with the rotation language in the August 27 filing, which references redeployment into 'better-aligned opportunities.' Whether that sequence reflects a deliberate asset-class rotation or an independent disposition driven by asset-level stress cannot be determined from the filings alone.

The distribution history filed in August 2026 reports that the Income REIT has paid 113 consecutive distributions totaling over $47 million since inception, with distributions shifting from monthly to quarterly cadence per a March 2026 board authorization. AltStreet's monitoring detected the cadence change at the April 2026 filing; no filing-based explanation for that shift was identified in the public record at the time of detection.

The three-property portfolio exit is a single economic event reported in a single filing, not a pattern of separately filed transactions across sibling entities. It should not be read as a coordinated multi-entity reporting event.

Why it matters

For investors and advisers performing diligence on the Income REIT, the magnitude of the underwriting deviation is the primary disclosure of note. Equity multiples of 0.3x to 0.6x against projections of 1.9x to 2.6x represent a range of outcomes that, at the low end, imply the return of approximately 30 cents on each equity dollar invested in that asset, before fees and other allocations. The filing does not specify how losses are allocated between the REIT's equity layer and any debt or preferred equity in the capital stack of each joint-venture entity, so the impact at the REIT investor level requires additional analysis of the underlying partnership agreements not available in the Form 1-U.

The legislative backdrop the filing cites is verifiable. Oregon's rent stabilization law and Washington's 2025 statewide rent control legislation materially constrained the revenue ceiling for Pacific Northwest multifamily assets acquired at peak-cycle valuations. That constraint was prospectively identifiable for the Oregon properties at acquisition (Oregon's law predates the 2022 purchase of Edison) and became applicable to the Vancouver, Washington properties upon Washington's May 2025 enactment. The filing does not quantify the specific impact of these legislative changes on property-level cash flows; that distinction is material for any causal analysis.

The stated intention to redeploy proceeds into industrial and mixed-use opportunities is consistent with the Income REIT's recent acquisition disclosures, which have emphasized industrial assets in business-friendly Sunbelt markets. Whether the redeployment will offset realized losses, and on what timeline, is not established by any filing reviewed by AltStreet as of this writing.

What the filings do not show

The Form 1-U discloses sale prices and equity multiples at the property level, but does not show: (1) the full capital stack for each joint-venture entity, including any mortgage debt, mezzanine debt, or preferred equity that would affect net proceeds to the REIT; (2) the fees paid to the manager or any affiliated parties in connection with the sale; (3) the identity of the buyer or any relationship between the buyer and any REIT affiliate; (4) the specific per-share or aggregate dollar impact on Income REIT NAV or distributions; or (5) any independent appraisal or broker opinion of value supporting or contradicting the sale prices.

The filing cites legislative changes as a factor in the decision to sell, but does not provide property-level financial statements, occupancy data, rent rolls, or any other operational metric that would allow an independent assessment of whether legislative constraints, broader market conditions, original underwriting assumptions, or asset-management decisions were the primary contributors to the outcome. These are unresolved possibilities that the public filing record does not adjudicate.

The filing contains no explanation for why all three properties were sold simultaneously to a single buyer rather than marketed individually, and no disclosure of whether a formal sale process was conducted. The term 'unaffiliated third party' is a legal representation, not a description of the buyer's identity or market standing.

AltStreet has not reviewed the Income REIT's full partnership agreements, private placement memoranda, or subscription agreements. Nothing in this article constitutes investment advice or a recommendation regarding any security.