Cole Real Estate Income Strategy (Daily NAV), INC.
Cole Real Estate Income Strategy (Daily NAV), Inc. (hereafter ‘Cole Income NAV’) represents the next generation of non-listed REITs. Cole Income NAV is a continuously offered, non-listed public REIT that provides daily valuation and provides investors opportunities for daily purchases and redemptions. *Cole Income NAV invests in U.S. commercial real estate across the retail, office, and industrial sectors – seeking further diversification by tenant, property type and geography.
The primary investment objective is to provide a reasonably stable current income stream, paid on a monthly basis, and to provide the opportunity for capital appreciation over the long term. Cole Income NAV seeks to provide investors:
- Daily Share Purchases/Redemptions
Unlike traditional non-listed REITs, Cole Income NAV’s innovative structure is designed with daily liquidity, giving investors opportunities for daily purchases and redemptions, subject to certain limitations.
- Income Stream
Investing in commercial real estate through a conservatively managed REIT can provide a relatively consistent stream of income through the rents collected from the properties.
- Low Correlation to Other Asset Classes
Due to the nature of high quality commercial real estate, combined with the fact that Cole Income NAV is not traded on a stock exchange, shares of Cole Income NAV are expected to exhibit a low level of correlation to the broader equity markets and publicly traded REITs.
At Cole Capital our goal is to provide access to high-quality real estate to the individual investor. Cole Income NAV is available through the following share classes:
- Class W Shares - ZREITX - 19330A108
- Class A Shares - ZNAVAX - 19330A207
- Class I Shares - ZNAVIX - 19330A306
Minimum Investment: $2,500 (Share Classes A, W), $1,000,000 (Class I Shares)
Offering Structure: Continuous
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.
The following states have additional suitability requirements: AL, CA, ID, IA, KS, KY, MA, ME, MS, ND, NE, NJ, NM, OH, OR, PA, TN, TX, and VT.
Please consult the Prospectus for additional information.
Cole Income NAV StrategyConsider 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 Real Estate Income Strategy (Daily NAV), Inc. (“INAV”) 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:
- INAV is a “blind pool,” as it has a 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.
- No public market for INAV exists, and one may never exist, for the shares of INAV 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, and the INAV charter does not require INAV to effect a liquidity event at any point in time in the future.
- INAV’s redemption plan will provide stockholders with the opportunity to redeem their shares on a daily basis, but redemptions will be subject to available liquidity, board discretion and other potential restrictions. INAV may pay redemptions from sources other than cash flow from operations, including borrowing, offering proceeds or asset sales, and has no limits on the amounts it may pay from such sources.
- There is no guarantee that investors will receive a distribution. Distributions have been paid from the proceeds of the offering, and may be derived from borrowings, or from the sale of assets, and there is no limit on the amounts that may be paid from such other sources. As a result, the amount of distributions may not reflect the performance of the portfolio.
- The valuation methodologies used by INAV’s independent valuation expert to determine daily NAV involve subjective judgments and estimates, and may not accurately reflect the actual price at which assets could be liquidated on any given day.
- There are conflicts of interest between INAV and INAV’s advisor and its affiliates, including payment by INAV of significant fees to the advisor and its affiliates.
- If INAV fails to qualify as a REIT, it will be subject to federal income tax. NAV and cash available for distributions could decrease materially and adversely affect the return on your investment.
- 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.
- 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.