Investing in commercial real estate involves substantial risk. This disclosure outlines key risks you should understand before considering any investment opportunity. Past performance is not indicative of future results, and there is no guarantee that any investment will achieve projected returns or avoid losses.

Historical performance data, including our 16.4% Historical IRR, is provided for reference only. Past results do not guarantee future performance. Actual returns may be materially different from historical averages or projections. Investors may lose some or all of their invested capital.

All real estate investments carry the risk of total loss of capital. Property values can decline due to market conditions, economic downturns, property-specific issues, local market trends, or changes in demand. There is no assurance that an investment will maintain or increase in value.

Real estate is an illiquid asset class. Investors should not expect to liquidate their position quickly or at a favorable price. Selling a property can take months or years, and there may be significant transaction costs, taxes, and other expenses associated with any exit. Investors should be prepared to hold their investments for an extended period.

Some properties may be financed using debt. While leverage can enhance returns, it also increases risk. If property performance declines, debt obligations remain constant. In severe scenarios, default on financing could result in foreclosure and loss of the underlying property and investor capital.

Commercial real estate performance is sensitive to broader economic conditions. Changes in interest rates, inflation, employment, credit availability, and consumer spending patterns can negatively impact property values and rental income. Recession, economic slowdown, or localized market downturns may severely affect investment returns.

Individual properties face unique risks including tenant turnover, lease non-renewal, vacancy periods, maintenance costs, unexpected repairs, insurance increases, and inability to pass costs through to tenants. Property-specific challenges may result in lower-than-expected cash flow or reduced property value.

Rising interest rates can increase financing costs, reduce property values, lower demand for real estate, and compress investor returns. Falling rates may trigger refinancing opportunities but do not guarantee better terms. Rate changes can significantly impact both acquisitions and valuations of existing holdings.

Changes in zoning laws, building codes, environmental regulations, tax policies, or other governmental actions can materially affect property value and investment returns. Tax treatment of real estate investments can be complex and varies by investor type and jurisdiction. Consult your tax advisors regarding your specific situation.

Real estate portfolios often involve concentration in specific geographic markets, property types, or tenant bases. Concentration increases exposure to localized downturns, industry-specific challenges, or single-tenant dependency. Diversification does not guarantee profit or protect against loss.

Investment performance depends on the skill, judgment, and integrity of management teams. Poor management decisions, operational errors, fraud, or management turnover can adversely affect returns. Due diligence cannot eliminate all management-related risks.

While real estate can serve as an inflation hedge through rent escalations, it is not guaranteed. Inflation can increase operating costs, property taxes, insurance, and financing expenses, potentially outpacing rental income growth and reducing investor returns.

Properties may have environmental contamination, hidden defects, or liability exposure that is not apparent during due diligence. Environmental remediation, litigation, or liability claims can result in unexpected costs that materially reduce returns or eliminate investor capital.

Property valuations are estimates subject to significant variance based on appraisal methodology, market assumptions, and timing. Valuation disagreements can arise between buyers, sellers, lenders, and investors. Actual property sale prices may differ materially from appraisals or prior valuations.

Investment opportunities are limited to qualified investors in jurisdictions where such participation is permitted. Investors must meet eligibility requirements and comply with applicable securities laws. Investors are responsible for determining their own eligibility and understanding applicable restrictions in their jurisdiction.

This website provides general information only and does not constitute investment, legal, tax, or financial advice. Nothing herein should be relied upon as a substitute for personalized guidance from qualified professional advisors. Before making any investment decision, you should consult with investment, legal, tax, and financial professionals to evaluate suitability based on your specific circumstances, goals, and risk tolerance.

Last updated: February 2, 2026