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Investment Benefits


Investment Benefits and Characteristics OF REITS

Public non-traded REITs provide investors with price stability and the potential for income and capital appreciation, increasing value while outpacing the effects of inflation on purchasing power.

INCOME & GROWTH

Income returns from real estate have historically provided a favorable alternative to traditional fixed-income investment options.

COMPETITIVE TOTAL RETURN

Based on the NCREIF Index measurement, commercial real estate has historically performed well during a variety of economic times, with less volatility than other investments.

LOW CORRELATION TO PUBLIC MARKETS

Real Estate that does not trade on an exchange (as measured by the NCREIF Index) is not correlated to stocks (S&P 500), bonds (Barclays Bond Index) and publicly traded REITs (NAREIT).

POTENTIAL FOR DECREASED PORTFOLIO RISK

The inclusion of real estate in an investment portfolio may decrease risk while increasing return.

INFLATION PROTECTION

Real estate has consistently delivered income and capital appreciation in excess of inflation, as measured by the U.S. Department of Labor's Consumer Price Index (CPI).

  • $1,000 worth of goods in services in 1990 would cost $1,627 today
  • Real estate plays an essential role in every well-balanced portfolio by providing inflation protection.

RISK & RETURN

Real estate portfolios are often constructed around three prevailing themes: (1) Core; (2) Value-Add; and (3) Opportunistic. The risk inherent in a real estate portfolio depends on the strategy utilized when the portfolio is constructed; the more Opportunistic a real estate portfolio is, the more risk and volatility surrounding the returns. A portfolio composed of Core investments should produce income which is more predictable and stable.


There can be no assurance that we will achieve any of our stated goals or objectives or how successfully we will implement our business model or strategies.

We have a limited operating history with a limited number of properties. You will be unable to evaluate the economic merit of our future investments before we make them.

There are substantial conflicts among us and our sponsor, advisor, dealer manager and property manager, such as the fact that our principal executive officers own a majority interest in our advisor, our dealer manager and our property manager. Our advisor and other affiliated entities may compete with us and acquire properties suitable to our investment objectives.

Our shares should only be purchased as a long term investment. No public market currently exists, and one may never exist, for shares of our common stock. If you are able to sell your shares, you would likely have to sell them at a substantial discount.

If our distributions exceed our available cash from operations, we may make distributions from the proceeds of this offering or from borrowings in anticipation of future cash flow, which may constitute a return of capital, reduce the amount of capital we have to invest in properties and negatively impact the value of your investment.

We have qualified as a REIT, but if we fail to maintain the requirements to be taxed as a REIT, it would reduce the amount of income available for distribution and limit our ability to make distributions to our stockholders.

We may incur substantial debt, which could hinder our ability to pay distributions to our stockholders or could decrease the value of your investment in the event that income on, or the value of, the property securing the debt falls.

We will pay substantial fees and expenses to our advisor, its affiliates and participating broker-dealers, which payments increase the risk that you will not earn a profit on your investment.

There is no public market for investments in non-traded REITS during the offering period and a public market for the REIT shares may never develop.  Also, any increases or decreases in share price and asset valuations may not be fully reflected at any given time in either the offering or redemption prices for the shares, which are set by the REITs management.

Non-traded public REITs are not directly comparable to NCREIF due to differences in the use of leverage, diversification of investments and fees.