Why Invest in a Non-Traded REIT?

Non-traded REITs are not intended for all investors. However, for those investors with a long-term focus, REITs may provide:

  • Portfolio diversification.
  • Historically low correlation to traditional asset classes.
  • Potential protection against inflation.1,2
  • Long-term income and growth within a portfolio.
  • Protection against daily market fluctuations.3

There is no assurance these objectives will be met.

CNL Healthcare Properties II has a limited operating history and intends to qualify and elect REIT tax status beginning with the taxable year ending Dec. 31, 2017, although there is no assurance the REIT tax status will occur within the stated time frame. If the company fails to meet the REIT qualification standards now or in the future, the company will be subject to increased taxes, which will decrease investors' returns.

1 "NCREIF Property Index Returns," National Council on Real Estate Investment Fiduciaries, accessed on March 1, 2017.
2 "Consumer Price Index," U.S. Bureau of Labor Statistics, accessed on March 1, 2017.
3 Non-traded REITs are considered an illiquid investment. There are significant limitations on the redemption of shares.