Consider the Risks:
An investment in the interests involves substantial investment and tax risks, including, without limitation, the following risks:
• Past performance is not a guarantee of future results.
• The economic success of the interests will depend upon the results of operations of the property. Fluctuations in vacancy rates, rent schedules,
and operating expenses can adversely affect operating results or render the sale or refinancing of the property difficult or unattractive.
• The COVID-19 pandemic may lead to prolonged economic disruption that could lead to lower occupancy and a negative impact on the results of
operations of the property.
• The Trust’s capitalization is supported solely by the cash flow from the underlying tenant lease. The sponsor is not under any obligation to
contribute capital to the Trust.
• No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover
capital expenditures or operating expenses.
• No assurance can be given that beneficial owners of interests will realize a substantial return (if any) on their investment or that they will not lose
their entire investment in the trust.
• The interests are not freely transferable by the beneficial owners.
• There are various risks associated with owning, financing, operating, and leasing commercial properties in Texas.
• The interests do not represent a diversified investment.
• Beneficial owners must completely rely on the Trust to collect the rent and operate, manage, lease, and maintain the property.
• The beneficial owners have no voting rights with respect to the management or operations of the trust or in connection with the sale of the property.
• There are various conflicts of interest among the trust, the sponsor, the signatory trustee, and their affiliates.
• The interests are illiquid.
• There are tax risks associated with an investment in the Interests. Each prospective beneficial owner should consult with their tax advisor
regarding an investment in the Interests and the qualification of the prospective beneficial owner's transaction under Section 1031 for their unique
circumstances.
• There are risks related to competition from properties similar to and near the property.
• There may be environmental risks related to the property.
• There are various tax risks, including the risk that an acquisition of an Interest may not qualify as replacement property in a Section 1031 Exchange.
This is neither an offer to sell nor a solicitation on an offer to buy securities described herein. An offering is made only by the Confidential Private
Placement Memorandum (PPM). This sale and advertising literature must be read in conjunction with the PPM in order to understand fully all of the
implications and risks of the offering to which it relates. A copy of the PPM must be made available to you in connection with this offering.
Prospective Members should carefully read the PPM and review any additional information they desire prior to making an investment and should be able to bear the complete loss of their investment. Securities offered through Arête Wealth Management LLC member FINRA/SIPC. Arête Wealth Management LLC and BDP Holdings, LLC, are not affiliated companies.