CornerstoneREAL ESTATE INVESTMENT SERVICES

Combining the Power of §1031 & Securitized Real Estate

DST AND TIC INVESTMENTS FOR 1031 EXCHANGE COMMERCIAL AND MULTIFAMILY PROPERTIES FOR PASSIVE INVESTMENTS

ϭŝƚLJŽƵůĞǀĂƌĚtĞƐƚ^ƵŝƚĞϴϳϬKƌĂŶŐĞϵϮϴϲϴ;ϴϬϬͿϳϴϭͲϭϬϯϭͻǁǁǁĐŽƌŶĞƌƐƚŽŶĞĞdžĐŚĂŶŐĞĐŽŵ

Enjoy the full disclosure of a security and the tax advantages of real estate.

Cornerstone Real Estate Investment Services

ŽƌŶĞƌƐƚŽŶĞ ƐĞdžƉĞƌƟƐĞŝƐŚĞůƉŝŶŐĐůŝĞŶƚƐŝŶǀĞƐƚŝŶƉƌŽĨĞƐƐŝŽŶĂůůLJŵĂŶĂŐĞĚƐĞĐƵƌŝƟnjĞĚŝŶƐƟƚƵƟŽŶĂůƌĞĂůĞƐƚĂƚĞŽīĞƌŝŶŐƐ

KƵƌĞůĂǁĂƌĞ^ƚĂƚƵƚŽƌLJdƌƵƐƚ;^dͿĂŶĚdĞŶĂŶƚͲŝŶͲŽŵŵŽŶ;d/ͿŽīĞƌŝŶŐƐĂƌĞƐƚƌƵĐƚƵƌĞĚƚŽƐƵŝƚĂĐĐƌĞĚŝƚĞĚŝŶǀĞƐƚŽƌƐĐĂƌƌLJŝŶŐŽƵƚĂŶ/ZƐĞĐƟŽŶϭϬϯϭĞdžĐŚĂŶŐĞĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĐĂƉŝƚĂůŐĂŝŶƐƚĂdžĚĞĨĞƌƌĂůďƵƚǁŚŽĚŽŶŽƚĚĞƐŝƌĞƚŽďĞĂĐƟǀĞůLJŝŶǀŽůǀĞĚŝŶƚŚĞŽǀĞƌƐŝŐŚƚĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞƉƌŽƉĞƌƚLJ/ŶǀĞƐƚŽƌƐĐĂŶŶŽǁďĞŶĞĮƚĨƌŽŵĂƉĂƐƐŝǀĞŝŶǀĞƐƚŵĞŶƚŝŶŝŶƐƟƚƵƟŽŶĂůͲŐƌĂĚĞƌĞĂůĞƐƚĂƚĞǁŝƚŚĂŶĞƐƟŵĂƚĞĚƉƌŽũĞĐƚĞĚĂŶŶƵĂůĐĂƐŚŇŽǁĂƉƉƌĞĐŝĂƟŽŶƉŽƚĞŶƟĂůĂŶĚƚŚĞƉŽƐƐŝďůĞďĞŶĞĮƚƐŽĨƚĂdžĚĞĨĞƌƌĂů

/ŶĂĚĚŝƟŽŶ^dĂŶĚd/ŽǁŶĞƌƐŚŝƉƐƚƌƵĐƚƵƌĞƐĂůůŽǁƚŚĞƐŵĂůůĞƌĂĐĐƌĞĚŝƚĞĚƌĞĂůĞƐƚĂƚĞŝŶǀĞƐƚŽƌƚŽĂĐĐĞƐƐůĂƌŐĞƌŝŶƐƟƚƵƟŽŶĂůͲŐƌĂĚĞƉƌŽƉĞƌƟĞƐdŚĞƐĞǁĞƌĞĨŽƌŵĞƌůLJĂĐĐĞƐƐŝďůĞƚŽƚŚĞŝŶǀĞƐƚŽƌǁŝƚŚůŝŵŝƚĞĚĞƋƵŝƚLJŵĂŝŶůLJƚŚƌŽƵŐŚůĂƌŐĞƌZĞĂůƐƚĂƚĞ/ŶǀĞƐƚŵĞŶƚdƌƵƐƚƐ;Z/dƐͿĂŶĚŝŶƐƟƚƵƟŽŶĂůŝŶǀĞƐƚŵĞŶƚĨƵŶĚƐǁŚŝĐŚĚŝĚŶŽƚĂůůŽǁĨŽƌƚŚĞĂĚǀĂŶƚĂŐĞƐŽĨƚĂdžĚĞĨĞƌƌĂůǀŝĂĂϭϬϯϭĞdžĐŚĂŶŐĞ

/ŶĂĚĚŝƟŽŶƚŽƐĞĐƵƌŝƟnjĞĚŽīĞƌŝŶŐƐĨŽƌϭϬϯϭĞdžĐŚĂŶŐĞŽƌŶĞƌƐƚŽŶĞĂůƐŽƉƌŽǀŝĚĞƐĂĐĐƌĞĚŝƚĞĚŝŶǀĞƐƚŽƌƐĚŝƌĞĐƚŝŶǀĞƐƚŵĞŶƚƐŝŶƚŽƉƌŝǀĂƚĞZ/dƐƌĞĂůĞƐƚĂƚĞĨƵŶĚƐŽŝůΘŐĂƐĂŶĚEŽƚĞŽīĞƌŝŶŐƐ

About Our FirmŽƌŶĞƌƐƚŽŶĞŝƐĂůŝĐĞŶƐĞĚĂůŝĨŽƌŶŝĂƌĞĂůĞƐƚĂƚĞďƌŽŬĞƌĂŐĞƐƚĂīĞĚďLJŝŶǀĞƐƚŵĞŶƚĂĚǀŝƐŽƌƐƐĞĐƵƌŝƟĞƐƌĞƉƌĞƐĞŶƚĂƟǀĞƐĂŶĚWƐ^ƉĞĐŝĂůŝnjŝŶŐŝŶƐĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞĨŽƌΑϭϬϯϭĞdžĐŚĂŶŐĞŽƌŶĞƌƐƚŽŶĞŚĂƐďĞĞŶƐĞƌǀŝŶŐĂŶĂƟŽŶĂůĐůŝĞŶƚĞůĞƐŝŶĐĞϮϬϬϭŵƉŚĂƐŝnjŝŶŐŝŶƚĞŐƌŝƚLJĂŶĚƉƌƵĚĞŶĐĞŽƵƌǀŝƐŝŽŶŝƐƚŽďĞƚŚĞŽƌŶĞƌƐƚŽŶĞŝŶƚŚĞ^ĞĐƟŽŶΑϭϬϯϭĞdžĐŚĂŶŐĞƉƌŽĐĞƐƐďLJƉƌŽǀŝĚŝŶŐĐŽŵƉƌĞŚĞŶƐŝǀĞƚĂdžƌĞĂůĞƐƚĂƚĞĂŶĚĮŶĂŶĐŝĂůŝŶǀĞƐƚŵĞŶƚĂĚǀŝĐĞƚŽŽƵƌĐůŝĞŶƚĞůĞ

John Harvey, CPA, MBT:ŽŚŶ,ĂƌǀĞLJŝƐƚŚĞĮƌŵ ƐŽǁŶĞƌĂŶĚŐĞŶĞƌĂůƐĞĐƵƌŝƟĞƐƉƌŝŶĐŝƉĂůDƌ ,ĂƌǀĞLJŚŽůĚƐĂDĂƐƚĞƌŽĨƵƐŝŶĞƐƐdĂdžĂƟŽŶĂŶĚĂ^ŝŶĐĐŽƵŶƟŶŐĨƌŽŵh^,ĞďĞŐĂŶŚŝƐĐĂƌĞĞƌŝŶϭϵϴϵǁŝƚŚƚŚĞĞǀĞƌůLJ,ŝůůƐŽĸĐĞŽĨƌŶƐƚΘzŽƵŶŐĂƐĂƚĂdžĐŽŶƐƵůƚĂŶƚƚŽŚŝŐŚŶĞƚǁŽƌƚŚĐĞůĞďƌŝƟĞƐDƌ ,ĂƌǀĞLJŚĂƐďĞĞŶĂůŝĐĞŶƐĞĚWƐŝŶĐĞϭϵϵϭĂŶĚŚĂƐǁŽƌŬĞĚĂƐĂƚĂdžĐŽŶƐƵůƚĂŶƚĨŽƌWƌŝĐĞtĂƚĞƌŚŽƵƐĞĂŶĚĂƐĂ^ĞŶŝŽƌDĂŶĂŐĞƌǁŝƚŚĞůŽŝƩĞΘdŽƵĐŚĠŝŶ>ŽƐŶŐĞůĞƐ

$400 Million in Securitized Real EstateDƌ,ĂƌǀĞLJŝƐĂZĞŐŝƐƚĞƌĞĚ /ŶǀĞƐƚŵĞŶƚĚǀŝƐŽƌ'ĞŶĞƌĂů ^ĞĐƵƌŝƟĞƐZĞƉƌĞƐĞŶƚĂƟǀĞĂŶĚ 'ĞŶĞƌĂů^ĞĐƵƌŝƟĞƐWƌŝŶĐŝƉĂů ;&/EZƐĞƌŝĞƐϮϰϳϲϲĂŶĚ ϲϯͿDƌ,ĂƌǀĞLJhas assisted investŽƌƐŝŶƚŚĞƉƵƌĐŚĂƐĞŽĨŽǀĞƌΨϰϬϬŵŝůůŝŽŶŝŶƐĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞ

,ĞŝƐĂůƐŽĂůŝĐĞŶƐĞĚZĞĂůƐƚĂƚĞƌŽŬĞƌŝŶƚŚĞƐƚĂƚĞŽĨĂůŝĨŽƌŶŝĂĂŶĚĂŵĞŵďĞƌŽĨƚŚĞZĞĂůƐƚĂƚĞ/ŶǀĞƐƚŵĞŶƚ^ĞĐƵƌŝƟĞƐƐƐŽĐŝĂƟŽŶ;Z/^ͿEĂƟŽŶĂůƐƐŽĐŝĂƟŽŶŽĨZĞĂůƚŽƌƐ;EZͿƉĂƌƚŵĞŶƚKǁŶĞƌƐƐƐŽĐŝĂƟŽŶ;KͿĂŶĚƚŚĞĂůŝĨŽƌŶŝĂ^ŽĐŝĞƚLJŽĨW Ɛ

dŚĞƐĞĐƌĞĚĞŶƟĂůƐƚŽŐĞƚŚĞƌǁŝƚŚDƌ ,ĂƌǀĞLJ ƐďƵƐŝŶĞƐƐŬŶŽǁůĞĚŐĞĂŶĚƌĞĂůͲǁŽƌůĚĞdžƉĞƌŝĞŶĐĞĂůůŽǁƚŚĞĮƌŵƚŽŽīĞƌŝŶͲĚĞƉƚŚƌĞĂůĞƐƚĂƚĞƚĂdžĂŶĚŝŶǀĞƐƚŵĞŶƚĂĚǀŝĐĞŽŶƐĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞŽīĞƌŝŶŐƐĨŽƌ^d ϭϬϯϭĞdžĐŚĂŶŐĞŽƌĚŝƌĞĐƚŝŶǀĞƐƚŵĞŶƚƐ

Securitized Real Estate^ĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞŝƐƌĞĂůĞƐƚĂƚĞƚŚĂƚŝƐƉĂĐŬĂŐĞĚĂŶĚƐŽůĚĂƐĂƐĞĐƵƌŝƚLJĂŶĚŝƐƚŚĞƌĞĨŽƌĞƌĞŐƵůĂƚĞĚďLJĨĞĚĞƌĂůƐĞĐƵƌŝƟĞƐůĞŐŝƐůĂƟŽŶĞŶĂĐƚĞĚƚŽƉƌŽŵŽƚĞĨƵůůĞƌĚŝƐĐůŽƐƵƌĞƐĂŶĚƉƌŽǀŝĚĞĨŽƌŵŽƌĞƐƵŝƚĂďůĞŝŶǀĞƐƚŵĞŶƚƐĨŽƌƚŚĞŝŶǀĞƐƚŽƌ

/ŶǀĞƐƚŵĞŶƚŝŶƌĞĂůĞƐƚĂƚĞŚĂƐŚŝƐƚŽƌŝĐĂůůLJďĞĞŶĂƩƌĂĐƟǀĞƚŽŝŶǀĞƐƚŽƌƐĨŽƌƚĂdžĂĚǀĂŶƚĂŐĞƐĂŶƟĐŝƉĂƟŽŶŽĨƌĞŐƵůĂƌŵŽŶƚŚůLJŝŶĐŽŵĞƉŽƚĞŶƟĂůĞƋƵŝƚLJĂƉƉƌĞĐŝĂƟŽŶĂŶĚƚŽƉƌŽǀŝĚĞƉŽƌƞŽůŝŽĚŝǀĞƌƐŝĮĐĂƟŽŶ,ŽǁĞǀĞƌ ƚŚĞƌĞĂƐŽŶĂďůĞĐŽŶĐĞƌŶŚĂƐďĞĞŶƚŚĂƚƚŚĞĮĞůĚŽĨƌĞĂůĞƐƚĂƚĞŝƐůĞƐƐƌĞŐƵůĂƚĞĚĂŶĚůĞƐƐƚƌĂŶƐƉĂƌĞŶƚƚŚĂŶƚŚĞĮĞůĚŽĨƚƌĂĚŝƟŽŶĂůƐĞĐƵƌŝƟĞƐ/ŶĂĚĚŝƟŽŶƚŚĞŽǁŶĞƌƐŚŝƉŽĨƌĞĂůĞƐƚĂƚĞƵƐƵĂůůLJĐĂƌƌŝĞƐǁŝƚŚŝƚƚŚĞĞdžƚƌĂďƵƌĚĞŶŽĨƉƌŽƉĞƌƚLJŽǀĞƌƐŝŐŚƚĂŶĚŵĂŶĂŐĞŵĞŶƚ

^ĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞŵĂŝŶƚĂŝŶƐƚŚĞďĞŶĞĮƚƐŽĨƌĞĂůĞƐƚĂƚĞŽǁŶĞƌƐŚŝƉĂŶĚĂĚĚƐƚŚĞĚŝƐĐůŽƐƵƌĞŽĨĂƐĞĐƵƌŝƚLJ/ŶĂĚĚŝƟŽŶŝƚƌĞŵŽǀĞƐŝŶǀĞƐƚŽƌƐŚĂŶĚƐŽŶƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƉƌŽƉĞƌƚLJŵĂŶĂŐĞŵĞŶƚ/ŶŶŽƌŵĂůƐŝƚƵĂƟŽŶƐŝŶǀĞƐƚŽƌƐƐŝŵƉůLJƌĞĐĞŝǀĞƚŚĞŝƌŵŽŶƚŚůLJŝŶĐŽŵĞ

The Advantages of Securitized Real Estateͻ ĐĐĞƐƐƚŽ/ŶƐƟƚƵƟŽŶĂůͲŐƌĂĚĞ/ŶǀĞƐƚŵĞŶƚWƌŽƉĞƌƟĞƐ

ͻ dŚĞĚŝƐĐůŽƐƵƌĞŽĨĂƐĞĐƵƌŝƚLJƚŚƌŽƵŐŚĂWƌŝǀĂƚĞWůĂĐĞŵĞŶƚDĞŵŽƌĂŶĚƵŵ;WWDͿ

ͻ ƉĂƐƐŝǀĞŝŶǀĞƐƚŵĞŶƚ

ͻ WŽƚĞŶƟĂůŝŶĐŽŵĞLJŝĞůĚĂŶĚĂƉƉƌĞĐŝĂƟŽŶ

ͻ dĂdžƐŚĞůƚĞƌĞĚĐĂƐŚŇŽǁΎ

ͻ WŽƌƞŽůŝŽĚŝǀĞƌƐŝĮĐĂƟŽŶΎ

'ŝǀĞŶƚŚĞƚƌĂĚŝƟŽŶĂůďĞŶĞĮƚƐŽĨƌĞĂůĞƐƚĂƚĞĂŶĚƚŚĞĚŝƐĐůŽƐƵƌĞŽĨĂƐĞĐƵƌŝƚLJ ŶŽƚƚŽŵĞŶƟŽŶƚĂdžĚĞĨĞƌƌĂůŝĨŝŶƚŚĞĐŽŶƚĞdžƚŽĨĂϭϬϯϭĞdžĐŚĂŶŐĞǁĞďĞůŝĞǀĞĂƐĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞŝŶǀĞƐƚŵĞŶƚŝƐĂŶĂƩƌĂĐƟǀĞŽƉƟŽŶĨŽƌƚŚŽƐĞĐŽŶƚĞŵƉůĂƟŶŐƌĞƟƌĞŵĞŶƚĂƐǁĞůůĂƐĨŽƌƚŚŽƐĞďƵŝůĚŝŶŐƵƉĂĚŝǀĞƌƐŝĮĞĚŝŶǀĞƐƚŵĞŶƚƉŽƌƞŽůŝŽ

What is Securitized Real Estate?

For Accredited Investors Only

*Refer to your tax advisor or accountant for advise onwhether you qualify for a tax deferral or tax shelter.

Investment real estate, including securitized real estate, comes with substantial risks, including but not limited to; the absence of guaranteed income; lack of liquidity; the risks of owning, managing, operating and leasing properties; possible conflicts of interest with managers and affiliated persons or entities; the risks associated with leverage; tax risks, including possible changes in tax law; declining markets and challenging economic conditions; on-going fees; and known or unknown regulatory challenges. Finally, it should be understood that the ultimate risk of investing in real estate could include the total loss of principal investment.

ĞůĂǁĂƌĞ^ƚĂƚƵƚŽƌLJdƌƵƐƚ;^dͿŝƐĂƐĞƉĂƌĂƚĞůĞŐĂůĞŶƟƚLJĐƌĞĂƚĞĚĂƐĂƚƌƵƐƚƵŶĚĞƌĞůĂǁĂƌĞƐƚĂƚƵƚŽƌLJůĂǁǁŚŝĐŚƉĞƌŵŝƚƐĂǀĞƌLJŇĞdžŝďůĞĂƉƉƌŽĂĐŚƚŽƚŚĞĚĞƐŝŐŶĂŶĚŽƉĞƌĂƟŽŶŽĨƚŚĞĞŶƟƚLJ>ŝŬĞƚĞŶĂŶĐLJŝŶĐŽŵŵŽŶ^dƐĂůůŽǁŵƵůƟƉůĞŝŶǀĞƐƚŽƌƐƉŽŽůƚŚĞŝƌĨƵŶĚƐƚŽŽǁŶŽŶĞĞŶƟƌĞƉƌŽƉĞƌƚLJ/ŶǀĞƐƚŽƌƐŝŶĂ^dŽǁŶĂƉƌŽƌĂƚĂŝŶƚĞƌĞƐƚŝŶƚŚĞƚƌƵƐƚĂŶĚŚĂǀĞƚŚĞƌŝŐŚƚƚŽƌĞĐĞŝǀĞĚŝƐƚƌŝďƵƟŽŶƐĨƌŽŵƚŚĞŽƉĞƌĂƟŽŶŽĨƚŚĞƚƌƵƐƚĞŝƚŚĞƌĨƌŽŵƌĞŶƚĂůŝŶĐŽŵĞŽƌĨƌŽŵƚŚĞĞǀĞŶƚƵĂůƐĂůĞŽĨƚŚĞƉƌŽƉĞƌƚLJdŚĞLJĚŽŶŽƚŚĂǀĞĚĞĞĚĞĚƟƚůĞƚŽƚŚĞƉƌŽƉĞƌƚLJ/ƚŝƐƚŚĞƚƌƵƐƚŝƚƐĞůĨǁŚŽŚĂƐĚĞĞĚƚŽƚŚĞƉƌŽƉĞƌƚLJĂŶĚǁŚŽƚŚƌŽƵŐŚƚŚĞƐŝŐŶĂƚŽƌLJƚƌƵƐƚĞĞŵĂŬĞƐƚŚĞĚĞĐŝƐŝŽŶƐƌĞŐĂƌĚŝŶŐƚŚĞĚŝƐƉŽƐŝƟŽŶŽĨƚŚĞƉƌŽƉĞƌƚLJŝŶĐůƵĚŝŶŐŝƚƐĞǀĞŶƚƵĂůƐĂůĞdŚĞďĞŶĞĮĐŝĂƌŝĞƐŽĨƚŚĞƚƌƵƐƚŚĂǀĞŶŽĂƵƚŚŽƌŝƚLJŽǀĞƌƚŚĞĚĂLJƚŽĚĂLJŚĂŶĚůŝŶŐŽĨƚŚĞƉƌŽƉĞƌƚLJŽƌƚŚĞƟŵŝŶŐĂŶĚĚĞƚĂŝůƐŽĨŝƚƐĞǀĞŶƚƵĂůƐĂůĞtŚŝůĞŝŶŝƟĂůůLJƚŚŝƐŵĂLJƐĞĞŵƚŽďĞĚŝƐĂĚǀĂŶƚĂŐĞŽƵƐƚŽƚŚĞŝŶǀĞƐƚŽƌ ƚŚŝƐƐƚƌƵĐƚƵƌĞĂĐƚƵĂůůLJŽƉĞŶƐƵƉƚŚĞƉŽƐƐŝďŝůŝƚLJĨŽƌƐŝŐŶŝĮĐĂŶƚĂĚǀĂŶƚĂŐĞƐ

&ŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨĂϭϬϯϭƚĂdžͲĚĞĨĞƌƌĞĚĞdžĐŚĂŶŐĞƚŚĞƉƵƌĐŚĂƐĞŽĨĂďĞŶĞĮĐŝĂůŝŶƚĞƌĞƐƚŝŶĂ^dŝƐƚƌĞĂƚĞĚĂƐĂĚŝƌĞĐƚŝŶƚĞƌĞƐƚŝŶƌĞĂůĞƐƚĂƚĞƚŚƵƐƐĂƟƐĨLJŝŶŐƚŚĂƚƌĞƋƵŝƌĞŵĞŶƚŽĨ/Z^ZĞǀĞŶƵĞZƵůŝŶŐϮϬϬϰͲϴϲ

What is a Delaware Statutory Trust (DST) ?

REAL ESTATE INVESTMENT SERVICES

;ϴϬϬͿϳϴϭͲϭϬϯϭĐŽƌŶĞƌƐƚŽŶĞĞdžĐŚĂŶŐĞĐŽŵ

Combining the Power of §1031 & Securitized Real Estate

Cornerstone

Today about 90% of the securitized real estate offerings

ƵĞƚŽůĞŐĂůůŝŵŝƚĂƟŽŶƐĂŶĚƚŚĞŶĂƚƵƌĞŽĨ^d

ĮŶĂŶĐŝŶŐƚŚĞƵƐĞŽĨĂ^dǁŝůůŐĞŶĞƌĂůůLJďĞůŝŵŝƚĞĚ

ƚŽůŽŶŐͲƚĞƌŵĐƌĞĚŝƚƚƌŝƉůĞͲŶĞƚůĞĂƐĞĚƉƌŽƉĞƌƟĞƐ

;ďŽdžͲŝŶͲŽŶĞͿŽƌƉƌŽƉĞƌƟĞƐůĞĂƐĞĚƚŽĂŶĂĸůŝĂƚĞŽĨ

ƚŚĞƐƉŽŶƐŽƌ;ĂŵĂƐƚĞƌƚĞŶĂŶƚͿǁŚŽǁŝůůŽƉĞƌĂƚĞƚŚĞ

ƉƌŽƉĞƌƚLJŽŶĂƚƌŝƉůĞͲŶĞƚďĂƐŝƐ;ĂŵĂƐƚĞƌůĞĂƐĞͿ

DST Benefits/ŶĂĚĚŝƟŽŶƚŽĂůůƚŚĞďĞŶĞĮƚƐŽĨƐĞĐƵƌŝƟnjĞĚƌĞĂů

ĞƐƚĂƚĞŝŶǀĞƐƚŽƌƐƉƵƌĐŚĂƐŝŶŐĂŶŝŶƚĞƌĞƐƚŝŶĂ^d

ĞŶũŽLJƚŚĞĨŽůůŽǁŝŶŐĂĚĚŝƟŽŶĂůďĞŶĞĮƚƐ

In such a trust, assets, securities, real estate, etc. are purchased for the trust and held until such a time as the proceeds are distributed to the investors. The trust is not considered a taxable entity and, therefore, all the profits, losses, etc. are passed through directly to the investors.

A Delaware Statutory Trust is in the nature of a unit investment trust or a fixed investment trust.

No Need for Unanimous Owner ApprovalhŶĂŶŝŵŽƵƐĂƉƉƌŽǀĂůŽĨŝŶĚŝǀŝĚƵĂůŝŶǀĞƐƚŽƌƐŝƐŶŽƚƌĞƋƵŝƌĞĚƚŽĚĞĂůǁŝƚŚĂŶLJĂĚǀĞƌƐĞĚĞǀĞůŽƉŵĞŶƚƐdŚĞƐŝŐŶĂƚŽƌLJƚƌƵƐƚĞĞĐĂŶƚĂŬĞŶĞĐĞƐƐĂƌLJĂĐƟŽŶƐƚŽƌĞĚƵĐĞůŽƐƐĂŶĚƉƌŽƚĞĐƚƚŚĞĂƐƐĞƚƐŽĨƚŚĞƚƌƵƐƚ

Easier Financing, Less ExpensivedŚĞůĞŶĚĞƌĚĞĂůƐǁŝƚŚƚŚĞƚƌƵƐƚĂƐƚŚĞŽŶůLJďŽƌƌŽǁĞƌƚŚƵƐŵĂŬŝŶŐŝƚĞĂƐŝĞƌĂŶĚůĞƐƐĞdžƉĞŶƐŝǀĞƚŽŽďƚĂŝŶĮŶĂŶĐŝŶŐdŚĞůŽĂŶŝƐŽďƚĂŝŶĞĚďLJƚŚĞƚƌƵƐƚƐŽŶŽŶĞĞĚĨŽƌŝŶĚŝǀŝĚƵĂůŝŶǀĞƐƚŽƌƐƚŽďĞƋƵĂůŝĮĞĚŽƌŝŶǀŽůǀĞƚŚĞŝƌĐƌĞĚŝƚƌĂƟŶŐ

No Need to Sign Loan Carve-Outs/ŶĂ^d ŝŶǀĞƐƚŽƌĨƌĂƵĚĐĂƌǀĞͲŽƵƚƐĂƌĞĞůŝŵŝŶĂƚĞĚdŚĞůĞŶĚĞƌůŽŽŬƐŽŶůLJƚŽƚŚĞƐƉŽŶƐŽƌƐŝŐŶĂƚŽƌLJƚƌƵƐƚĞĞĨŽƌĐĂƌǀĞͲŽƵƚƐĨƌŽŵƚŚĞŶŽŶͲƌĞĐŽƵƌƐĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞůŽĂŶ

Limited Personal Liability^dŝŶǀĞƐƚŽƌƐĞŶũŽLJůŝŵŝƚĞĚůŝĂďŝůŝƚLJƚŽƚŚĞŝƌƉĞƌƐŽŶĂůĂƐƐĞƚƐĚƵĞƚŽƚŚĞďĂŶŬƌƵƉƚĐLJͲƌĞŵŽƚĞƉƌŽǀŝƐŝŽŶŽĨƚŚĞ^d ŶLJƉŽƚĞŶƟĂůĐƌĞĚŝƚŽƌƐŽĨƚŚĞƚƌƵƐƚŽƌƚŚĞůĞŶĚĞƌ ǁŽƵůĚďĞůŝŵŝƚĞĚďLJƉƌŽǀŝƐŝŽŶƐŝŶƚŚĞƚƌƵƐƚĨƌŽŵƌĞĂĐŚŝŶŐƚŚĞŽƚŚĞƌĂƐƐĞƚƐŽĨƚŚĞŝŶǀĞƐƚŽƌƐdŚĞƌĞĨŽƌĞŶŽ>>ĞŶƟƚLJŝƐŶĞĐĞƐƐĂƌLJƚŽŚŽůĚĂ^dŝŶǀĞƐƚŵĞŶƚ

Lower Minimum Investment^dŽīĞƌŝŶŐŵĂLJŚĂǀĞƵƉƚŽϰϵϵŝŶǀĞƐƚŽƌƐĂƐŚŝŶǀĞƐƚŵĞŶƚƐĐĂŶďĞĂƐůŽǁĂƐΨϮϱϬϬϬϭϬϯϭĞdžĐŚĂŶŐĞŵŝŶŝŵƵŵƐĂƌĞŽŌĞŶΨϭϬϬϬϬϬ

IRS Revenue Ruling 2004-86, which forms the basis for a DST transaction in a Section 1031 exchange program, has prohibitions on the powers of the trustee, in order for a beneficiary to be treated as acquiring a direct interest in real estate for tax purposes. These

restrictions are built into the trust agreement.

brokered by Cornerstone for1031 exchange are DSTs.

Direct Investments

ŽƌŶĞƌƐƚŽŶĞƉƌŽǀŝĚĞƐďƌŽŬĞƌĂŐĞƐĞƌǀŝĐĞƐĨŽƌŽƚŚĞƌ ŝŶǀĞƐƚŵĞŶƚƐƚƌƵĐƚƵƌĞƐƐƵĐŚĂƐZĞĂůƐƚĂƚĞ/ŶǀĞƐƚŵĞŶƚ dƌƵƐƚƐ;Z/dƐͿƌĞĂůĞƐƚĂƚĞĨƵŶĚƐand ŽŝůΘŐĂƐƌŽLJĂůƟĞs

ŝƌĞĐƚŽǁŶĞƌƐŚŝƉŽĨƐŽŵĞŽŝůΘŐĂƐƌŽLJĂůƚLJƉƌŽŐƌĂŵƐĂƌĞĐŽŶƐŝĚĞƌĞĚĂĚŝƌĞĐƚŝŶƚĞƌĞƐƚŝŶƌĞĂůĞƐƚĂƚĞĂŶĚĂƌĞƚŚƵƐĞůŝŐŝďůĞĨŽƌϭϬϯϭĞdžĐŚĂŶŐĞ

dŚĞƐĞŬŝŶĚƐŽĨŽīĞƌŝŶŐƐƚŚƌŽƵŐŚŽƌŶĞƌƐƚŽŶĞĂƌĞWƌŝǀĂƚĞWůĂĐĞŵĞŶƚKīĞƌŝŶŐƐĂǀĂŝůĂďůĞƚŽĂĐĐƌĞĚŝƚĞĚŝŶǀĞƐƚŽƌƐŽŶůLJdŚĞLJĂƌĞŶŽƚƉƵďůŝĐůLJƚƌĂĚĞĚĂŶĚƐŚŽƵůĚďĞĐŽŶƐŝĚĞƌĞĚŝůůŝƋƵŝĚŝŶǀĞƐƚŵĞŶƚƐ

ĂĐŚŽīĞƌŝŶŐŝƐƐŽůĚďĂƐĞĚƵƉŽŶĂWƌŝǀĂƚĞWůĂĐĞŵĞŶƚDĞŵŽƌĂŶĚƵŵ;WWDͿĂŶĚƵŶĚĞƌŐŽĞƐĂƐŝŵŝůĂƌƌŝŐŽƌŽƵƐĚƵĞĚŝůŝŐĞŶĐĞƉƌŽĐĞƐƐƚŽ^dĂŶĚd/ŽǁŶĞƌƐŚŝƉ ƐƚƌƵĐƚƵƌĞƐ

Due to their structure, REITs, real estate funds and most oil & gas royalty programs are not eligible for 1031 exchange which we explain on the following pages.

ĐĐŽƌĚŝŶŐƚŽƚŚĞ/ŶƚĞƌŶĂůZĞǀĞŶƵĞŽĚĞ^ĞĐƟŽŶϭϬϯϭĂŶŝŶǀĞƐƚŽƌĐĂŶĚĞĨĞƌĐĂƉŝƚĂůŐĂŝŶƐƚĂdžĂŶĚĚĞƉƌĞĐŝĂƟŽŶƌĞĐĂƉƚƵƌĞďLJƌĞŝŶǀĞƐƟŶŐƚŚĞƉƌŽĐĞĞĚƐĨƌŽŵƚŚĞƐĂůĞŽĨŝŶǀĞƐƚŵĞŶƚƉƌŽƉĞƌƚLJŝŶƚŽƌĞƉůĂĐĞŵĞŶƚƉƌŽƉĞƌƚLJ ƚŚƵƐƉƌĞƐĞƌǀŝŶŐƐŝŐŶŝĮĐĂŶƚǁĞĂůƚŚŝŶƚŚĞŝƌĞƐƚĂƚĞ

/ŶĂĚĚŝƟŽŶƚŽƚĂdžĚĞĨĞƌƌĂůĂϭϬϯϭĞdžĐŚĂŶŐĞƉĞƌŵŝƚƐŝŶǀĞƐƚŽƌƐƚŽƉƵƌĐŚĂƐĞĂůĞǀĞƌĂŐĞĚƌĞƉůĂĐĞŵĞŶƚƉƌŽƉĞƌƚLJĂŶĚƚŚƵƐŝŶĐƌĞĂƐĞƚŚĞŝƌďĂƐŝƐŝŶƚŚĞĂŵŽƵŶƚŽĨĂĚĚŝƟŽŶĂůĚĞďƚĂƐƐƵŵĞĚdŚŝƐĂůůŽǁƐĨŽƌĂĚĚŝƟŽŶĂůĚĞƉƌĞĐŝĂƟŽŶƉĂƐƐͲƚŚƌŽƵŐŚǁŚŝĐŚĐĂŶƐŚĞůƚĞƌĂƐŵƵĐŚĂƐϱϬйƚŽϲϬйŽĨƚŚĞƌĞŶƚĂůŝŶĐŽŵĞĐĂƐŚŇŽǁĨƌŽŵŝŶĐŽŵĞƚĂdžĂƟŽŶdŚƵƐŽŶĂŶĂŌĞƌƚĂdžďĂƐŝƐƚŚĞƌĂƚĞŽĨƌĞƚƵƌŶ;ZKZͿĨŽƌĂϭϬϯϭĞdžĐŚĂŶŐĞŝŶƚŽƐĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞŝƐĐŽŵƉĂƌĂďůĞƚŽZKZƐŽŶŝŶǀĞƐƚŵĞŶƚƐǁŝƚŚƐŝŐŶŝĮĐĂŶƚůLJŵŽƌĞƌŝƐŬtŝƚŚƚŚĞƉŽƐƐŝďŝůŝƚLJŽĨĂĚĚŝƟŽŶĂůƌĞƚƵƌŶĨƌŽŵĂƉƉƌĞĐŝĂƟŽŶŽĨƚŚĞƉƌŽƉĞƌƚLJ ƚŚĞĂŌĞƌͲƚĂdžƌĞƚƵƌŶŽŶŝŶǀĞƐƚŵĞŶƚŽŶĂŶĂŶŶƵĂůŝnjĞĚďĂƐŝƐĐĂŶďĞĞǀĞŶŐƌĞĂƚĞƌ

^ŝŐŶŝĮĐĂŶƚůLJ ŝĨŝŶǀĞƐƚŽƌƐŚŽůĚƚŚĞƉƌŽƉĞƌƚLJƵŶƟůŝƚŝƐƉĂƐƐĞĚŽŶĂƐƉĂƌƚŽĨƚŚĞŝƌĞƐƚĂƚĞƚŚĞĚĞĨĞƌƌĞĚƚĂdžůŝĂďŝůŝƚLJƌĞƐƵůƟŶŐĨƌŽŵŽŶĞŽƌŵŽƌĞϭϬϯϭĞdžĐŚĂŶŐĞƐŝƐĞůŝŵŝŶĂƚĞĚĂŶĚƚŚĞŚĞŝƌƐŝŶŚĞƌŝƚƚŚĞƉƌŽƉĞƌƚLJǁŝƚŚĂƐƚĞƉƉĞĚͲƵƉďĂƐŝƐĞƋƵĂůƚŽƚŚĞŵĂƌŬĞƚǀĂůƵĞŽĨƚŚĞƉƌŽƉĞƌƚLJĂƚƚŚĞƟŵĞŽĨƚŚĞŝŶŚĞƌŝƚĂŶĐĞ

What is a 1031 Exchange?

ͻ dŚĞĞdžĐŚĂŶŐĞƉƌŽĐĞƐƐŵƵƐƚďĞĨĂĐŝůŝƚĂƚĞĚďLJĂYƵĂůŝĮĞĚ/ŶƚĞƌŵĞĚŝĂƌLJ;Y/ͿƚŚĞƉƌŽĨĞƐƐŝŽŶĂůĞdžĞĐƵƚŽƌŽĨĂŶĞdžĐŚĂŶŐĞdŚĞLJŚŽůĚƚŚĞƉƌŽĐĞĞĚƐĨƌŽŵƚŚĞƌĞůŝŶƋƵŝƐŚĞĚƉƌŽƉĞƌƚLJƵŶƟůƚŚĞLJĂƌĞƌĞŝŶǀĞƐƚĞĚŝŶƚŚĞĞdžĐŚĂŶŐĞƉƌŽƉĞƌƚLJ

ͻ dŚĞƉƌŽƉĞƌƟĞƐŵƵƐƚďĞůŝŬĞͲŬŝŶĚ dŚŝƐƌĞƋƵŝƌĞŵĞŶƚŝƐvery general and includes virtually any investment real estate including raw land However, REITs, real estate funds or securities do not qualify.

ͻ dŚĞŝŶǀĞƐƚŽƌDh^dŝĚĞŶƟĨLJŝŶǁƌŝƟŶŐƚŚĞĞdžĐŚĂŶŐĞƉƌŽƉĞƌƟĞƐǁŝƚŚŝŶϰϱĚĂLJƐŽĨƚŚĞĐůŽƐƵƌĞĨŽƌƚŚĞƌĞůŝŶƋƵŝƐŚĞĚƉƌŽƉĞƌƚLJĂŶĚĐůŽƐĞŽŶƚŚĞƌĞƉůĂĐĞŵĞŶƚƉƌŽƉĞƌƚLJŽƌƉƌŽƉĞƌƟĞƐǁŝƚŚŝŶϭϴϬĚĂLJƐŽĨƚŚĞĐůŽƐƵƌĞĨŽƌƚŚĞƌĞůŝŶƋƵŝƐŚĞĚƉƌŽƉĞƌƚLJ

ͻ dŚĞƉƌŽƉĞƌƟĞƐŵƵƐƚďĞŚĞůĚĞŝƚŚĞƌĨŽƌƉƌŽĚƵĐƟǀĞƵƐĞŝŶĂďƵƐŝŶĞƐƐŽƌĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŝŶǀĞƐƚŵĞŶƚ

ͻ dŚĞƚŽƚĂůǀĂůƵĞĞƋƵŝƚLJĂŶĚĚĞďƚŽĨƚŚĞƌĞƉůĂĐĞŵĞŶƚƉƌŽƉĞƌƚLJŵƵƐƚďĞŽĨĞƋƵĂůŽƌŐƌĞĂƚĞƌǀĂůƵĞƚŚĂŶƚŚĞƚŽƚĂůǀĂůƵĞĞƋƵŝƚLJĂŶĚĚĞďƚŽĨƚŚĞƌĞůŝŶƋƵŝƐŚĞĚƉƌŽƉĞƌƚLJ

ͻ ůůŶĞƚƉƌŽĮƚĨƌŽŵƚŚĞƌĞůŝŶƋƵŝƐŚĞĚƉƌŽƉĞƌƚLJŵƵƐƚďĞƵƐĞĚŝŶƚŚĞƉƵƌĐŚĂƐĞŽĨƚŚĞƌĞƉůĂĐĞŵĞŶƚƉƌŽƉĞƌƚLJ

Section 1031 RequirementshƐĞĂƉƌŽĨĞƐƐŝŽŶĂůƚĂdžĂĚǀŝƐŽƌƚŽĞŶƐƵƌĞƚŚĂƚĞǀĞƌLJƌĞƋƵŝƌĞŵĞŶƚŽĨ^ĞĐƟŽŶϭϬϯϭŝƐŵĞƚ&ĂŝůƵƌĞƚŽĚŽƚŚŝƐĐĂŶƌĞƐƵůƚŝŶŝŵŵĞĚŝĂƚĞƚĂdžůŝĂďŝůŝƟĞƐĂŶĚĂƐƐŽĐŝĂƚĞĚƉĞŶĂůƟĞƐ/ŶĂĚĚŝƟŽŶƚŚĞƐƚƌŝĐƚƟŵĞůŝŶĞĂŶĚƉƌŽĐĞĚƵƌĞƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌĂƉƌŽƉĞƌϭϬϯϭĞdžĐŚĂŶŐĞŵƵƐƚďĞĨŽůůŽǁĞĚƚŽƚŚĞůĞƩĞƌ

What is a Tenant-In-Common (TIC)?

ƚĞŶĂŶƚͲŝŶͲĐŽŵŵŽŶŝƐĂĐŽͲŽǁŶĞƌƐŚŝƉƐƚƌƵĐƚƵƌĞƵŶĚĞƌǁŚŝĐŚŵƵůƟƉůĞŝŶǀĞƐƚŽƌƐƉŽŽůƚŚĞŝƌĨƵŶĚƐƚŽŽǁŶŽŶĞĞŶƟƌĞƉƌŽƉĞƌƚLJĂĐŚŝŶǀĞƐƚŽƌŽǁŶƐĂŶƵŶĚŝǀŝĚĞĚĨƌĂĐƟŽŶĂůŝŶƚĞƌĞƐƚŝŶĂŶĞŶƟƌĞƉƌŽƉĞƌƚLJĂŶĚƉĂƌƟĐŝƉĂƚĞƐŝŶĂƉƌŽƉŽƌƟŽŶĂƚĞƐŚĂƌĞŽĨƚŚĞŶĞƚŝŶĐŽŵĞƚĂdžƐŚĞůƚĞƌƐĂŶĚŐƌŽǁƚŚ

ĂĐŚŽǁŶĞƌƌĞĐĞŝǀĞƐĂƐĞƉĂƌĂƚĞƉƌŽƉĞƌƚLJĚĞĞĚĂŶĚƟƚůĞŝŶƐƵƌĂŶĐĞĨŽƌƚŚĞŝƌƉĞƌĐĞŶƚĂŐĞŝŶƚĞƌĞƐƚŝŶƚŚĞƉƌŽƉĞƌƚLJ ĂŶĚŚĂƐĂůůƚŚĞƐĂŵĞƌŝŐŚƚƐĂŶĚƉƌŝǀŝůĞŐĞƐĂƐĂƐŝŶŐůĞ;ĨĞĞƐŝŵƉůĞͿŽǁŶĞƌ dŚĞƉƵƌĐŚĂƐĞŽĨĂd/ŝŶƚĞƌĞƐƚŝƐƚƌĞĂƚĞĚĂƐĂĚŝƌĞĐƚŝŶƚĞƌĞƐƚŝŶƌĞĂůĞƐƚĂƚĞƋƵĂůŝĨLJŝŶŐĂƐůŝŬĞŬŝŶĚƌĞĂůĞƐƚĂƚĞĨŽƌϭϬϯϭĞdžĐŚĂŶŐĞ,ŽǁĞǀĞƌ ďĞĐĂƵƐĞĞĂĐŚd/ŝŶǀĞƐƚŽƌŚŽůĚƐƟƚůĞƚŚĞƌĞŵĂLJďĞƚŚĞŶĞĞĚƚŽƐŝŐŶĐĂƌǀĞͲŽƵƚƐƌĞůĂƚĞĚƚŽŝŶǀĞƐƚŽƌĨƌĂƵĚĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůŝƐƐƵĞƐ

dƌĂĚŝƟŽŶĂůůLJ d/ŽīĞƌŝŶŐƐĐĂŵĞǁŝƚŚƉƌĞͲĂƌƌĂŶŐĞĚŶŽŶͲƌĞĐŽƵƌƐĞĮŶĂŶĐŝŶŐ,ŽǁĞǀĞƌ ĚƵĞƚŽƐƚƌŝĐƚĞƌƵŶĚĞƌͲǁƌŝƟŶŐƐƚĂŶĚĂƌĚƐƚŚĞƌĞĐĞŶƚƚƌĞŶĚŚĂƐďĞĞŶƚŽůŝŵŝƚd/ŽīĞƌŝŶŐƐƚŽĂůůĐĂƐŚŽīĞƌŝŶŐƐǁŝƚŚŶŽŵŽƌƚŐĂŐĞĚĞďƚ

dŚĞŵĂŝŶĂĚǀĂŶƚĂŐĞŽĨd/ŽǁŶĞƌƐŚŝƉǀŝƐͲăͲǀŝƐ^dŽǁŶĞƌƐŚŝƉŝƐƚŚĂƚƚŚĞd/ŽǁŶĞƌ ǁŚŽƌĞĐĞŝǀĞƐĚĞĞĚĞĚƟƚůĞƚŽƚŚĞƉƌŽƉĞƌƚLJ ŚĂƐŐƌĞĂƚĞƌƐĂLJŝŶƚŚĞĚĂLJͲƚŽͲĚĂLJŽƉĞƌĂƟŽŶŽĨƚŚĞƉƌŽƉĞƌƚLJĂŶĚŝƚƐĞǀĞŶƚƵĂůƐĂůĞdŚŝƐĂƌƌĂŶŐĞŵĞŶƚŵĂLJďĞƉƌĞĨĞƌƌĞĚďLJƚŚĞŝŶǀĞƐƚŽƌǁŚŽŝƐŶŽƚĨƵůůLJĐŽŵĨŽƌƚĂďůĞǁŝƚŚĂ^dƐƚƌƵĐƚƵƌĞǁŚĞƌĞƚŚĞƐŝŐŶĂƚŽƌLJƚƌƵƐƚĞĞŚĂƐĂƵƚŚŽƌŝƚLJƚŽŚĂŶĚůĞĂůůƚŚĞŵĂƩĞƌƐƌĞůĂƚĞĚƚŽƚŚĞƉƌŽƉĞƌƚLJ ŽƌŝĨƚŚĞŝŶǀĞƐƚŽƌŽǁŶƐĂŶĞƐƉĞĐŝĂůůLJůĂƌŐĞƉŽƌƟŽŶŽĨĂƉƌŽƉĞƌƚLJĂŶĚǁŽƵůĚůŝŬĞƚŽƌĞƚĂŝŶĂŚŝŐŚĞƌůĞǀĞůŽĨĐŽŶƚƌŽů

Risks of Investment Real Estate/ŶǀĞƐƚŵĞŶƚƌĞĂůĞƐƚĂƚĞŝŶĐůƵĚŝŶŐƐĞĐƵƌŝƟnjĞĚƌĞĂůĞƐƚĂƚĞĐŽŵĞƐǁŝƚŚƐƵďƐƚĂŶƟĂůƌŝƐŬƐŝŶĐůƵĚŝŶŐďƵƚŶŽƚůŝŵŝƚĞĚƚŽƚŚĞĂďƐĞŶĐĞŽĨŐƵĂƌĂŶƚĞĞĚŝŶĐŽŵĞůĂĐŬŽĨůŝƋƵŝĚŝƚLJƚŚĞƌŝƐŬƐŽĨŽǁŶŝŶŐŵĂŶĂŐŝŶŐŽƉĞƌĂƟŶŐĂŶĚůĞĂƐŝŶŐƉƌŽƉĞƌƟĞƐƉŽƐƐŝďůĞĐŽŶŇŝĐƚƐŽĨŝŶƚĞƌĞƐƚǁŝƚŚŵĂŶĂŐĞƌƐĂŶĚĂĸůŝĂƚĞĚƉĞƌƐŽŶƐŽƌĞŶƟƟĞƐƚŚĞƌŝƐŬƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚůĞǀĞƌĂŐĞƚĂdžƌŝƐŬƐŝŶĐůƵĚŝŶŐƉŽƐƐŝďůĞĐŚĂŶŐĞƐŝŶƚĂdžůĂǁĚĞĐůŝŶŝŶŐŵĂƌŬĞƚƐĂŶĚĐŚĂůůĞŶŐŝŶŐĞĐŽŶŽŵŝĐĐŽŶĚŝƟŽŶƐŽŶͲŐŽŝŶŐĨĞĞƐĂŶĚŬŶŽǁŶŽƌƵŶŬŶŽǁŶƌĞŐƵůĂƚŽƌLJĐŚĂůůĞŶŐĞƐ&ŝŶĂůůLJ ŝƚƐŚŽƵůĚďĞƵŶĚĞƌƐƚŽŽĚƚŚĂƚƚŚĞƵůƟŵĂƚĞƌŝƐŬŽĨŝŶǀĞƐƟŶŐŝŶƌĞĂůĞƐƚĂƚĞĐŽƵůĚŝŶĐůƵĚĞƚŚĞƚŽƚĂůůŽƐƐŽĨƉƌŝŶĐŝƉĂůŝŶǀĞƐƚŵĞŶƚ/ŶĂĚĚŝƟŽŶƚŽďĞŝŶŐĂǁĂƌĞŽĨƚŚĞƐĞƌŝƐŬƐŝƚŝƐĞǀĞŶŵŽƌĞŝŵƉŽƌƚĂŶƚĨŽƌƚŚĞŝŶǀĞƐƚŽƌƚŽƌĞĂĚƚŚĞWƌŝǀĂƚĞWůĂĐĞŵĞŶƚDĞŵŽƌĂŶĚƵŵ;WWDͿĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂƐƉĞĐŝĮĐŝŶǀĞƐƚŵĞŶƚǁŚŝĐŚĚĞƚĂŝůƐĂůůƚŚĞƌŝƐŬƐƌĞůĂƚĞĚƚŽƚŚĂƚƉĂƌƟĐƵůĂƌŽīĞƌŝŶŐ

Risks of a 1031 Exchange/ĨƚŚĞƐƚƌŝĐƚƟŵĞůŝŶĞĂŶĚƉƌŽĐĞĚƵƌĂůƌƵůĞƐĂƌĞŶŽƚĨŽůůŽǁĞĚƚŚĞϭϬϯϭĞdžĐŚĂŶŐĞŵĂLJďĞĚŝƐƋƵĂůŝĮĞĚůƐŽƚŚĞƌĞŝƐŶŽŐƵĂƌĂŶƚĞĞƚŚĂƚƚŚĞ/Z^ǁŝůůĂƉƉƌŽǀĞĞĂĐŚŝŶĚŝǀŝĚƵĂůĞdžĐŚĂŶŐĞŽƌƚŚĂƚƚĂdžůĂǁǁŝůůŶŽƚďĞĂůƚĞƌĞĚŝŶƚŚĞĨƵƚƵƌĞŶŽƌƚŚĂƚƚŚĞ/Z^ǁŝůůŶŽƚĐŚĂŶŐĞƚŚĞŝƌĂƉƉůŝĐĂƟŽŶŽĨƉƌĞƐĞŶƚůĂǁƚŽĨƵƚƵƌĞĐĂƐĞƐ

&ŝŶĂůůLJ ƚŚĞĨƵůůƐĐŽƉĞŽĨƚĂdžƌĞůĂƚĞĚƌŝƐŬƐĐĂŶŽŶůLJďĞĚĞƚĞƌŵŝŶĞĚŝŶĐŽƵŶƐĞůǁŝƚŚƚŚĞĐůŝĞŶƚ ƐƉĞƌƐŽŶĂůƚĂdžĂĚǀŝƐŽƌ ƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚĂůůƚŚĞĚĞƚĂŝůƐŽĨƚŚĂƚĐůŝĞŶƚ ƐƚĂdžƐŝƚƵĂƟŽŶĂŶĚƚŚĞƐƉĞĐŝĮĐůĂǁƐŽĨƚŚĞƐƚĂƚĞǁŚĞƌĞƚŚĞLJƌĞƐŝĚĞ

Risks of Delaware Statutory Trusts dŚĞƌŝƐŬƐŽĨŝŶǀĞƐƟŶŐŝŶĂ^dŝŶĐůƵĚĞďƵƚĂƌĞŶŽƚůŝŵŝƚĞĚƚŽƚŚĞƌŝƐŬŽĨƌĞůLJŝŶŐƵƉŽŶƚŚĞƉƌŽŐƌĂŵƐƉŽŶƐŽƌĂŶĚƚŚĞŝƌĐŽŶƟŶƵĞĚĐŽŵƉĞƚĞŶĐLJĂŶĚƐƵĐĐĞƐƐƚŚĞƌŝƐŬŽĨƐƉŽŶƐŽƌŝŶƐŽůǀĞŶĐLJĂŶĚƚŚĞƌŝƐŬƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚŐŝǀŝŶŐĐŽŵƉůĞƚĞĚŝƐĐƌĞƟŽŶƌĞŐĂƌĚŝŶŐƚŚĞŵĂŶĂŐĞŵĞŶƚůĞĂƐŝŶŐŽƌĚŝƐƉŽƐŝƟŽŶŽĨƚŚĞƉƌŽƉĞƌƚLJƚŽĂƚŚŝƌĚƉĂƌƚLJ/ĨƚŚĞƉƌŽƉĞƌƚLJŚĞůĚďLJƚŚĞ^dŝƐůĞǀĞƌĂŐĞĚƚŚĞƌĞŝƐƚŚĞƌŝƐŬŽĨďĞŝŶŐƵŶĂďůĞƚŽƌĞͲĮŶĂŶĐĞƚŚĞƉƌŽŐƌĂŵĂƚƚŚĞĞŶĚŽĨƚŚĞƚĞƌŵŽĨƐĂŝĚůŽĂŶůƐŽƚŚĞƌĞŝƐƚŚĞƌŝƐŬŽĨƉŽƐƐŝďůĞĐŽŶŇŝĐƚƐŽĨŝŶƚĞƌĞƐƚǁŝƚŚƉƌŽŐƌĂŵƐƉŽŶƐŽƌƐƚƌƵƐƚĞĞƐŽƌƉƌŽƉĞƌƚLJŵĂŶĂŐĞƌƐ

/ŶĂĚĚŝƟŽŶƚŚĞƌĞĂƌĞƚĂdžͲƌĞůĂƚĞĚƌŝƐŬƐǁŚĞŶƵƐŝŶŐĂ^dŽǁŶĞƌƐŚŝƉƐƚƌƵĐƚƵƌĞĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĂϭϬϯϭĞdžĐŚĂŶŐĞtŚŝůĞƚŚĞ^dŽīĞƌŝŶŐƐƚŚƌŽƵŐŚŽƌŶĞƌƐƚŽŶĞĂƌĞĚĞƐŝŐŶĞĚĨŽƌƚŚŝƐƉƵƌƉŽƐĞĂŶĚĂƌĞĂĐĐŽŵƉĂŶŝĞĚďLJĂƐŚŽƵůĚůĞǀĞůůĞŐĂůŽƉŝŶŝŽŶƚŚĂƚƚŚĞLJĂƌĞƐƵŝƚĂďůĞĨŽƌϭϬϯϭĞdžĐŚĂŶŐĞƚŚĞƌĞŝƐŶŽŐƵĂƌĂŶƚĞĞƚŚĂƚƚŚĞ/Z^ǁŝůůĂƉƉƌŽǀĞĞĂĐŚŝŶĚŝǀŝĚƵĂů^dƐƚƌƵĐƚƵƌĞŽƌĞĂĐŚŝŶĚŝǀŝĚƵĂůĞdžĐŚĂŶŐĞ

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Contact:

Cornerstone Real Estate Investment ServicesŝƌĞĐƚ;ϳϭϰͿϵϯϵͲϭϬϯϭ

dŽůůĨƌĞĞ;ϴϬϬͿϳϴϭͲϭϬϯϭ

ǁǁǁĐŽƌŶĞƌƐƚŽŶĞĞdžĐŚĂŶŐĞĐŽŵ

Risks of Tenant-In-Common/ŶĂĚĚŝƟŽŶƚŽĂůůƚŚĞƌŝƐŬƐŽĨŝŶǀĞƐƚŵĞŶƚƌĞĂůĞƐƚĂƚĞŽǁŶŝŶŐƌĞĂůĞƐƚĂƚĞŝŶĐŽŵŵŽŶĞŶƚĂŝůƐƚŚĞƌŝƐŬŽĨĚŝƐĂŐƌĞĞŵĞŶƚŽƌĐŽŶŇŝĐƚǁŝƚŚƚŚĞŽƚŚĞƌƚĞŶĂŶƚƐĂƐƚŽƚŚĞŵĂŶĂŐĞŵĞŶƚĮŶĂŶĐŝŶŐŽƌƐĂůĞŽĨƚŚĞƉƌŽƉĞƌƚLJhŶĂŶŝŵŝƚLJĂŵŽŶŐƚŚĞƚĞŶĂŶƚƐŝƐƌĞƋƵŝƌĞĚĨŽƌĂůůŵĂũŽƌĚĞĐŝƐŝŽŶƐĂŶĚƚŚŽƵŐŚƚŚĞƌĞĂƌĞƵƐƵĂůůLJƉƌŽǀŝƐŝŽŶƐĂůůŽǁŝŶŐƚŚĞƉƵƌĐŚĂƐĞƚŚĞŝŶƚĞƌĞƐƚŽĨĂĚŝƐƐĞŶƟŶŐƚĞŶĂŶƚƚŚŝƐĐŽƵůĚƉƌŽǀĞĚŝĸĐƵůƚŽƌƟŵĞĐŽŶƐƵŵŝŶŐ/ĨƚŚĞƉƌŽƉĞƌƚLJŚĞůĚŝŶĐŽŵŵŽŶŝƐůĞǀĞƌĂŐĞĚƚŚĞƌĞŝƐƚŚĞƌŝƐŬŽĨďĞŝŶŐƵŶĂďůĞƚŽƌĞͲĮŶĂŶĐĞƚŚĞƉƌŽŐƌĂŵĂƚƚŚĞĞŶĚŽĨƚŚĞƚĞƌŵŽĨƐĂŝĚůŽĂŶůƐŽƚŚĞƌĞŝƐƚŚĞƌŝƐŬŽĨƉŽƐƐŝďůĞĐŽŶŇŝĐƚƐŽĨŝŶƚĞƌĞƐƚǁŝƚŚƉƌŽŐƌĂŵƐƉŽŶƐŽƌƐƚƌƵƐƚĞĞƐŽƌƉƌŽƉĞƌƚLJŵĂŶĂŐĞƌƐ

CornerstoneREAL ESTATE INVESTMENT SERVICES

Combining the Power of §1031 & Securitized Real Estate

Cornerstone Real Estate Investment Services, 1 City Boulevard West, Suite 870, Orange, CA 92868

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