Nontraded REITs
Wells REIT II is a publicly registered nontraded REIT. This means that we file regular disclosures with the SEC, such as quarterly and annual financial reports. Since the shares may not be actively bought and sold on a national exchange, the shares are considered illiquid.
A nontraded REIT such as Wells REIT II may be right for an investor who is interested in:
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A long-term, "buy-and-hold" investment strategy
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Current income opportunity
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Portfolio diversification and the potential to reduce volatility
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Reducing cash holdings previously invested in the stock market
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Benefiting from the potential tax-deferral of REITs
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A nontraded REIT is not suitable for all investors. An investor must meet certain income, net worth and other suitability standards
An investment in Wells REIT II is subject to substantial risks. These risks include:
- Limited transferability and lack of liquidity
- Limited operating history
- Reliance on our advisor and its affiliates
- Payment of significant fees to the advisor and its affiliates
- Potential conflicts of interest
- Failure to qualify as a REIT for federal income tax purposes
- Inability to invest all of the net offering proceeds promptly
- Continuing high demand for the type of properties we desire to acquire
