Form 253G2 -
September 13 2023 - 10:11AM
Edgar (US Regulatory)
Filed pursuant to Rule 253(g)(2)
File No. 024-11953
This Supplement No. 12, dated September 8, 2023 (which we refer to as "this supplement"), supplements, and should be
read in conjunction with, the offering circular (the "Offering Circular"), dated March 28, 2023, of Landa App, LLC, a
Delaware series limited liability company (which we refer to as "we," "us," "our" or "our company"), as supplemented.
The purpose of this supplement is to update, correct and supersede certain information for the following Series (the
"Updated Series"):
Landa App LLC — 773 Villa Way Douglasville GA LLC
Landa App LLC — 6710 Sunset Hills Boulevard Rex GA LLC
Landa App LLC — 2443 Hodges Farm Road Mansfield GA LLC
Landa App LLC — 1683 Spoonbill Board Hampton GA LLC
LANDA APP LLC
20 W. 22nd Street
Suite 1411
New York, NY 10010
(646) 905-0931
Landa.app
CURRENT AND PREVIOUS SERIES OFFERINGS
Refinance Note, Title Transfer, and Property Insurance Expiration
The tables below (the "Update Tables") show key information related to the Updated Series and its underlying Property.
The information in the Update Tables supersedes any contrary previous information contained in the Master Series Table
included in the Offering Circular, which can be found here;
all other information in the Offering Circular is
otherwise unchanged.
As previously disclosed in the
Company’s
latest Offering Circular, which can be found here,
each Series is expected to pay down, or otherwise discharge, the outstanding
balance of its Acquisition Note with (i) the proceeds received in exchange for a commercial promissory note bearing
interest at current
market rates to be issued by a third party lender (a “Refinance Lender”) after the qualification date of
the offering statement
of which the Offering Circular forms a part (a “Refinance Note”), and (ii) substantially all of the net
proceeds from the
Series Offering. Further, the Company filed Supplement #7 to its Offering Circular on June 26, 2023, which expressly
amended the definition
of “Refinance Lender” to include a third party lender or an affiliate of the Manager, a copy of which
can be found here.
In furtherance of the above, on
September 1, 2023,
the Series listed below entered into a Refinance Note with Landa Financing LLC, an affiliate of the Series and its
Manager, the terms
of which are listed in the table below. The Refinance Note is secured by the Property underlying the respective
Series and any other assets
of the Series, and bears interest at a rate equal to Overnight SOFR + 3.5%.
Landa Series LLC Borrower |
|
Loan Amount
|
|
|
Interest Rate |
|
Loan Date |
|
Maturity Date |
Landa App LLC – 773 Villa Way Jonesboro GA LLC |
|
$ |
71,906.0 |
|
|
(1) |
|
09/01/2023 |
|
09/01/2025 |
(1)
|
Bears interest at Overnight SOFR +
3.5%.
|
The foregoing is a summary of the
terms of the Refinance Note and does not purport to be a complete description of such terms. This summary is qualified
in its entirety by reference to the Commercial Promissory Note, a copy of which is filed as Exhibit 6.1 to our Form
1-U, filed on September 12, 2023, which can be found here.
Further, on September 1, 2023,
the Series listed below each entered into a Refinance Note with Kiavi
Funding, Inc., the terms of which are listed in the table below. The Refinance Notes are secured by the
Property underlying the respective Series and any other assets of the Series.
Landa Series LLC Borrower |
|
Loan Amount
|
|
|
Interest Rate |
|
Loan Date |
|
Maturity Date |
Landa App LLC – 6710 Sunset Hills Boulevard Rex GA LLC |
|
$ |
147,000.0 |
|
|
(1) |
|
09/01/2023 |
|
09/01/2024 |
Landa App LLC – 2443 Hodges Farm Road Mansfield GA LLC |
|
$ |
154,000.0 |
|
|
(1) |
|
09/01/2023 |
|
09/01/2024 |
Landa App LLC – 1683 Spoonbill Board Hampton GA LLC |
|
$ |
154,000.0 |
|
|
(1) |
|
09/01/2023 |
|
09/01/2024 |
(1)
|
Bears interest at 11%.
|
The foregoing is a summary of the
terms of the Refinance Notes and does not purport to be a complete description of such terms. This summary is
qualified in its entirety by reference to the Commercial Promissory Notes, copies of which are filed as Exhibits 6.2,
6.3 and 6.4 to our Form 1-U, filed on September 12, 2023, which can be found here.
On September 1, 2023, Landa
Properties LLC ("Landa Properties") transferred title (the "Transfer") of the
following properties ("Properties") to the Series set forth in the table below. In connection with the
Transfer, Landa Properties also assigned the applicable lease agreement for the Properties to the
Series.
Series
|
|
Property
|
Landa App LLC – 773 Villa Way
Jonesboro GA LLC
|
|
773 Villa Way, Jonesboro, GA 30238
|
Landa App LLC – 6710 Sunset Hills
Boulevard Rex GA LLC
|
|
6710 Sunset Hills Boulevard, Rex,
Georgia
|
Landa App LLC – 2443 Hodges Farm
Road Mansfield GA LLC
|
|
2443 Hodges Farm Road Mansfield,
Georgia 30055
|
Landa App LLC – 1683 Spoonbill
Board Hampton GA LLC
|
|
1683 Spoonbill Road Hampton, Georgia
30238
|
Lastly, the Offering Circular
states that the Manager
cannot ensure that property insurance will be adequate to cover actual losses or that such insurance will continue
to be available at
reasonable costs, if at all, which could inhibit a Series’ ability to finance or refinance the underlying
Property and result in
uninsured losses. In such instances, a Series may be required to provide other financial support, either through
financial assurances
or self-insurance to cover potential losses. A Series may not have adequate coverage for such losses. If a Property
incurs a loss that
is not fully insured, the value of the Series’ asset will be reduced by such uninsured loss, which would
reduce the value of the
investment.
Accordingly, and in connection
with the paragraph
above, the Manager has determined that carrying insurance for the following two Series is no longer reasonable or
available at reasonable
costs, and the property insurance policy for these two Series will expire effective immediately:
Series
|
|
Property
|
Landa App LLC – 773 Villa Way
Jonesboro GA LLC
|
|
773 Villa Way, Jonesboro, GA 30238
|
Resignation of Board Member of the
Manager
Effective August 25, 2023, Amit
Assaraf resigned from the Board of the Manager, which directs the
Company's operations.
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