Realty Capital Securties, LLC (Member FINRA/SIPC), is the dealer manager for ARC Daily NAV. The achievement of any goals is not guaranteed. For more complete information about investing in ARC Daily NAV, including risks, charges and expenses, refer to our prospectus.
Realty Capital Securities, LLC, One Beacon Street, Floor 14, Boston, MA 02108, Phone:877-373-2522, or visit our Web Site: www.rcsecurities.com
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY A PROSPECTUS. THIS LITERATURE MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. AS SUCH, A COPY OF THE CURRENT PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING. YOU SHOULD READ THE CURRENT PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. AN INVESTMENT IN ARC DAILY NAV SHOULD BE MADE ONLY AFTER A CAREFUL REVIEW OF THE PROSPECTUS. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Attorney-General of the State of New York nor any other state or federal regulator has passed on or endorsed the merits of this offering or these securities or confirmed the adequacy or accuracy of the prospectus. Any representation to the contrary is unlawful. All information contained in this material is qualified in its entirety by the terms of the current prospectus.
Some of the risk factors associated with ARC Daily NAV include, without limitation:
- (1) The amount of the distributions paid may decrease at any time. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment.
- (2) No public market exists for our shares of common stock, nor may a public market ever exist and our shares are illiquid.
- (3) We are a “blind pool” offering because we currently own only eight properties and we have not identified any other properties to acquire.
- (4) Adverse changes in the financial condition of our advisor or our relationship with our advisor could adversely affect us.
- (5) There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, sponsor, dealer manager and our and their respective affiliates regarding compensation, investment opportunities and management resources. For example, we will pay substantial fees to our advisor and its affiliates, including fees based on NAV, which the advisor will be responsible for calculating. Because these fees are based on NAV, the advisor and its affiliates will benefit from our shares having higher NAV and therefore they have an incentive to cause the NAV to be higher.
- (6) Our organizational documents permit us to pay distributions from unlimited amounts of any source. Until substantially all the proceeds from this offering are invested, we may use proceeds from this offering and financings to fund distributions until we have sufficient cash flow. There are no established limits on the amounts of net proceeds and borrowings that we may use to fund such distribution payments.
- (7) Any of these distributions may reduce the amount of capital we ultimately invest in properties and other permitted investments and negatively impact the value of your investment.
- (8) Our failure to qualify, or remain qualified, as a REIT would result in higher taxes, may adversely affect our operations, and would reduce our NAV and
cash available for distributions.
- (9) The purchase price and redemption price for our shares will be based on NAV rather than a public trading market. Our published NAV may not accurately reflect the value of our assets. No public market exists for our shares of common stock, nor may a public market ever exist.
- (10) There are limitations on ownership and transferability of our shares. Please see “Description of Securities — Restrictions on Ownership and Transfer.”
- (11) Distributions are not guaranteed. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment.