This is not an offer to sell nor a solicitation of an offer to buy shares of the REIT. Only the REIT’s prospectus makes such an offer. This website must be read in conjunction with the prospectus in order to understand fully all of the investment objectives, risks, charges and expenses associated with an investment in the REIT and must not be relied upon to make an investment decision. The information herein does not supplement or revise any information in the REIT's public filings. To the extent information herein conflicts with the prospectus, the information in the prospectus shall govern.
This website is for general information purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provided is not all-inclusive and should not be relied upon as being all-inclusive.
Forward-looking statements are based on current expectations and may be identified by words such as believes, expects, may, could and terms of similar substance, and speak only as of the date made. Actual results could differ materially due to risks and uncertainties that are beyond the REIT’s ability to control or accurately predict. Investors should not place undue reliance on forward-looking statements.
Shares are offered to the public through CNL Securities, Member FINRA/SIPC, the REIT’s managing dealer, and through other broker-dealers or with the assistance of registered investment advisors. Broker-dealers are reminded that communications delivered to any person must be accompanied or preceded by a prospectus in accordance with the Securities Act of 1933, as amended.
An investment in the REIT is subject to significant risks, some of which are summarized in the Risk Factors section below. See also Risk Factors in the REIT’s prospectus for a more detailed description. Investors should read and understand all of the risks and the entire prospectus before making a decision to invest.
Investing in a non-traded REIT is a higher-risk, mid- to long-term investment and is not suitable for all investors. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on investment. The shares may lose value or investors could lose their entire investment. The shares are not FDIC-insured nor bank guaranteed.
The REIT and its advisor were recently organized and have limited operating histories on which investors may evaluate the REIT’s operations and prospects for the future.
Non-traded REITs are illiquid. There is no public trading market for the shares. The REIT has no obligation to list on any public securities market and does not expect to list the shares in the near future. If investors are able to sell their shares, it would likely be at a substantial discount.
There are significant limitations on the redemption of investors’ shares under the REIT’s redemption plan. Funds available for redemption, if any, are within the REIT’s sole discretion and are not expected to exceed the proceeds of the REIT’s distribution reinvestment plan, unless the board of directors chooses to use other sources to redeem shares. The REIT can determine not to redeem any shares, or only a portion of the shares for which redemption is requested. In no event will more than 5 percent of the outstanding shares be redeemed in any 12-month period. The REIT may suspend, terminate or reduce the redemption plan at any time. For more specific information, please refer to the prospectus. No shares will be redeemed on any date that distributions are paid. Holding periods may be waived and redemptions paid at the purchase price in the event of death, qualifying disability, confinement to a long-term care facility or bankruptcy.
This is a blind-pool offering. The REIT has not identified all of the investments that it will make in the future, and investors will not have the opportunity to evaluate future investments before they are made. Investors must rely on the REIT’s advisor and board of directors to evaluate, structure and implement future investments.
The REIT is obligated to pay substantial fees to its advisor, managing dealer, property manager and their respective affiliates based upon agreements that have not been negotiated at arm’s length, and some of which are payable based upon factors other than the quality of services. These fees could influence their advice and judgment in performing services. In addition, certain officers and directors of the advisor also serve as the REIT’s officers and directors, as well as officers and directors of competing programs, resulting in conflicts of interest. Those persons could take actions more favorable to other entities.
The REIT has made and may continue to make distributions to its stockholders in the form of shares of its stock. Stock distributions will cause the interests of later investors to be diluted as a result of the distributions made to earlier investors. The REIT may make distributions to investors from sources other than from its cash flows or funds from operations, such as from borrowings and/or the proceeds of its public offering. To the extent the REIT pays cash distributions from such sources it will reduce the cash available for investment in properties and other real estate-related assets, and lower investors’ overall return on investment. The REIT has not established a limit on the extent to which it may use borrowings, the proceeds of this offering, or shares of common stock to pay distributions. There is no assurance that the REIT’s current distribution rate will not change or that it can be sustained at any level. The amount or basis of distributions will be determined by and at the discretion of the REIT’s board of directors and is dependent upon a number of factors including, but not limited to, expected and actual net cash flow from operations, funds from operations, the REIT’s financial condition, capital requirements, and avoidance of volatility of distributions. The distribution of solely new common stock to stockholders is not currently included as a component of the recipient’s gross income under the IRS Code and is therefore tax deferred and not taxable when received. Investors should consult with their financial advisor, accountant and/or attorney for tax advice specific to their particular needs and objectives.
If the REIT fails to maintain its qualification as a REIT for any taxable year, it will be subject to federal income tax on taxable income at regular corporate rates. In such an event, net earnings available for investment or distributions would be reduced.
The use of leverage to acquire assets may hinder the REIT’s ability to pay distributions and/or decrease the value of stockholders’ investment in the event income from or the value of the property securing the debt declines.
The REIT’s public offering is a “best-efforts” offering. The managing dealer and participating brokers are only required to use their best efforts to sell shares and are not required to sell any specific number of shares. If the REIT raises substantially less than the maximum offering amount, the REIT’s portfolio of properties may be less diversified, and your investment will be subject to greater risk.
The REIT has invested primarily in multifamily development properties in the Southeast and Sun Belt regions of the United States. An investment in the REIT’s shares may be subject to greater risk to the extent that the REIT has limited diversification in its portfolio of investments.
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