COLE CREDIT PROPERTY TRUST V, INC. ("CCPT V") - OVERVIEW
Cole Credit Property Trust V, Inc. ("CCPT V") is a non-listed REIT that invests primarily in income-producing necessity retail properties that are single-tenant properties or multi-tenant “power centers” subject to long-term triple-net or double-net leases with national or regional creditworthy tenants.
Necessity retail fulfills the daily needs of consumers
Cole Capital’s focus on necessity retail properties offers a distinct advantage because the tenants generally provide goods and services we all need on a daily basis. The multi-tenant properties held within the portfolio are predominantly power centers with multiple anchors or grocery-anchored centers. We typically do not invest in traditional enclosed shopping malls or strip centers.
Quality tenants provide stable stream of rental income
Cole Capital seeks creditworthy tenants that are able to withstand diverse economic cycles with corporate-backed leases. The ability of a tenant to consistently pay rent directly impacts the stability of the income stream passed on to the investor.
Real estate has provided favorable risk-adjusted returns over time
During the last 10 years, the retail sector of the commercial real estate market has provided competitive returns while moderating losses. We believe the types of Core properties we acquire reduce investment risk and increase performance stability.
|Offering Summary||Class A||Class T|
|Price to Public (POP)||$26.37 per share||$25.26 per share|
|Net Offering Price (NAV)||$24.00 per share||$24.00 per share|
|Distribution Reinvestment Program (DRIP)||$24.00 per share||$24.00 per share|
|Initial Minimum Investment||$2,500||$2,500|
Suitability Requirements: A net worth of at least $250,000 or a gross annual income of at least $70,000 and a net worth of at least $70,000.
Additional state suitability requirements can be found in the prospectus.
Cole Credit Property Trust V - Risks
Consider These Risk Factors Before Investing
The offering is being made by means of a prospectus only to qualified investors who meet minimum suitability requirements, as well as suitability standards as determined by your financial advisor. This material must be preceded or accompanied by a Cole Credit Property Trust V, Inc. (“CCPT V”) prospectus. Please read the prospectus in its entirety before investing and learn more about the risks associated with this offering, including, but not limited to:
- CCPT V is a “blind pool,” as it has limited operating history and has not identified all of the properties it intends to purchase. There can be no guarantee that it will meet its investment objectives.
- This investment has limited liquidity. No public market exists for CCPT V, and one may never exist, for the shares of its common stock. There is also the possibility that even if investors were able to sell their shares, they may have to sell them at a substantial discount. Investors should have an expected investment time horizon in excess of seven years, if at all.
- There is no guarantee that investors will receive a distribution. Distributions have been paid from the proceeds of the offering, from borrowings, or from the sale of assets, and there is no limit on the amounts that may be paid from such other sources. Payments of distributions from sources other than cash flow from operations reduce the amount of capital available for real estate investments and may decrease or diminish an investor’s interest.
- There are conflicts of interest between CCPT V and CCPT V’s advisor and its affiliates, including payment by CCPT V of significant fees to the advisor and its affiliates.
- Economic factors may adversely affect the commercial real estate markets, including: changes in the economy, tenant turnover, interest rates, availability of mortgage funds, operating expenses, cost of insurance and each tenant’s ability to continue to pay rent.
- If CCPT V fails to qualify as a REIT, it will be subject to federal income tax. Cash available for distributions could decrease materially and adversely affect the return on your investment.
- Leverage (debt) is borrowed money. It is often used to supplement or enhance the total return on an investment. However, it is also recognized that leverage, when used excessively, can have a significant negative impact on the performance of an investment. Leverage risks may include an inability to pay the interest from the cash flow from the property, rates that can adjust to higher levels, and the potential for default on loans. In an effort to maximize the performance of a REIT portfolio, a number of factors are considered in evaluating financing options. Some of the more common factors include cost of capital, fixed versus variable debt, loan-to-value and debt coverage ratios.
Cole Capital® is the sponsor of a number of real estate investment programs. Cole Capital is a trade name used to refer to a group of affiliated entities that provide external management services to the real estate investment programs sponsored by Cole Capital.