Investment in real estate involves a high degree of risk and may be speculative. Some of the risks involved with an investment in real estate through a Delaware Statutory Trust (a “DST”) include, but are not limited to, the risks listed below. The PPM for any particular investment opportunity will contain more complete information regarding the property or properties and the investment opportunity, including all of the material risk factors that a prospective investor should carefully consider before investing. An offer or solicitation can be made only through a PPM, which is always controlling and supersedes the information contained herein in its entirety. Prospective investors must read an applicable PPM in its entirety prior to investing in any offering.
• No public market currently exists, and one may never exist, for the interests of any Hines-sponsored DST program. The purchase of interests in any Hines-sponsored DST program is suitable only for persons who have no need for liquidity in their investment and who can afford to lose their entire investment.
• Hines-sponsored DST programs offer and sell interests pursuant to exemptions from the registration provisions of federal and state law and, accordingly, those interests are subject to restrictions on transfer.
• There is no guarantee that the investment objectives of any particular Hines-Sponsored DST program will be achieved.
• The actual amount and timing of distributions paid by Hines-Sponsored DST programs is not guaranteed, may vary and could be zero. There is no guarantee that investors will receive any distributions or a return of their capital in whole or in in part.
• Investments in real estate are subject to varying degrees of risk, including, among other things, local conditions such as an oversupply of space or reduced demand for properties, an inability to collect rent, vacancies, inflation and other increases in operating costs, adverse changes in laws and regulations applicable to owners of real estate and changing market demographics.
• If a DST property is transferred (or the DST is converted) to the Springing LLC, investors will likely lose their ability to participate in a future Section 1031 exchange with respect to the transferred property.
• Investors will have no voting rights and will have no control over management of the DST or its property.
• Hines-sponsored DST programs depend on tenants for their revenue, and may suffer adverse consequences as a result of any financial difficulties, bankruptcy or insolvency of their tenants.
• Hines-sponsored DST programs may own single-tenant properties, which may be difficult to re-lease upon tenant defaults or early lease terminations.
• Continued disruptions in the financial markets and challenging economic conditions could adversely affect the ability of any Hines-sponsored DST program to secure debt financing on attractive terms and its ability to service that indebtedness.
• The prior performance of other programs sponsored by Hines should not be used to predict the results of future programs.
• The Hines-sponsored DST programs do not have arm’s length agreements with their management entities.
• The Hines-sponsored DST programs pay significant commissions and fees to affiliates of Hines, which may affect the amount of income investors earn on their investment.
• Persons performing services for the managers of the Hines-sponsored programs perform services for other Hines-sponsored programs, and will face competing demands for their time and service.
• The acquisition of interests in an Hines-sponsored DST program may not qualify under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”) for tax-deferred exchange treatment.
• Changes in tax laws may occur, and may adversely affect an investor’s ability to defer capital gains tax and may result in immediate penalties.
• The DST structure is inflexible and, in certain events, may be converted to a LLC structure, which would have a tax impact on investors.
• The DST is not providing any prospective investor with separate legal, accounting or business advice or representation.