Website Terms & Conditions
Please read the following terms and conditions (“Terms and Conditions”) carefully before using this website.
Chestnut Real Estate Funds is an investment advisor firm with its principal place of business located in Chattanooga, Tennessee. We do not currently have individual, natural-person clients or institutional, company-clients. We serve as the investment adviser to affiliated real estate Private Funds and have no other clients. All management and investment decisions regarding our Private Funds is based on the individual fund objectives, strategies and policies. We are responsible for all major investment decisions including, without limitation, amending or changing an individual real estate Private Fund’s investment objective; determining investment strategies; and establishing and implementing investment policies or limitations.
Past performance is not indicative of future results. Therefore, no current or prospective investor should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Chestnut Real Estate Funds) made reference to directly or indirectly by Chestnut Real Estate Funds in its website, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s).
Investing in securities involves risk of loss. Further, depending on the different types of investments there may be varying degrees of risk. Private Funds managed by Chestnut Real Estate Funds and their Investors should be prepared to bear investment loss, including loss of original investment.
Because of the inherent risk of loss associated with investing in any type of securities, Chestnut Real Estate Funds is unable to represent, guarantee, or even imply that its services and methods of analysis can or will predict future results, successfully identify market tops or bottoms, or insulate you from losses due to market corrections or declines.
Real estate Funds under our management and the real estate properties we hold within those Private Funds involve a high degree of risk and Investors must have sufficient economic resources to bear the economic risk of the complete loss of their investments. In addition, we do not guarantee due diligence efforts will reveal all critical risks associated with private securities and real estate properties. We do not undertake responsibility for or work with Investors regarding allocation of their assets between real estate investments and other, more traditional securities. Nearly all investments held by our Private Funds and indirectly by Investors will be illiquid and Private Funds and Investors must be prepared to hold these investments indefinitely. Illiquid means that the investments can be difficult to sell and a Fund’s ability to dispose of such investments in a timely manner and at an advantageous price may be limited.
Private securities and investment funds generally involve various other risk factors. A complete discussion of which is set forth in each Fund’s offering documents, which will be provided to each prospective Investor for review and consideration.
Investments will be subject to the risks generally inherent to the ownership of real property and loans, including: uncertainty of cash flow to meet fixed and other obligations; uncertainty in capital markets as it relates to both procurements of equity and debt; adverse changes in local market conditions, population trends, neighborhood values, community conditions, general economic conditions, local employment conditions, interest rates, and real estate tax rates; changes in fiscal policies; changes in applicable laws and regulations (including tax laws); uninsured losses; delays in foreclosure; borrower bankruptcy and related legal expenses; and other risks that are beyond the control of the General Partner or Chestnut Real Estate Funds. There can be no assurance of profitable operations because the cost of owning the properties may exceed the income produced, particularly since certain expenses related to real estate and its ownership, such as property taxes, utility costs, maintenance costs and insurance, tend to increase over time and are largely beyond the control of the owner. Moreover, although insurance is expected to be obtained to cover most casualty losses and general liability arising from the properties, no insurance will be available to cover cash deficits from ongoing operations.
Risks of Private Placements - A security exempt from registering with the U.S. Securities and Exchange Commission and state securities regulator is often referred to as a private placement or unregistered offering.
Only an “accredited” investor should invest in a private placement offering. To qualify as “accredited” investor, the investor must (a) have a net worth (not including primary residence) of at least $1 million, or (b) have an income exceeding $200,000 in each of the 2 most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
Private placement offerings often are speculative, high risk and illiquid investments. An investor can lose his or her entire investment in a private placement offering.
Private placement offerings are not subject to same laws and regulations, which are designed to protect investors, as registered securities offerings.
Private placement offerings have not been reviewed by a regulator to make sure risks associated with the risks of private placement investment have been adequately disclosed to prospective investors.
Private placement offerings often project higher rates of return, but this is typically because the risks of the underlying the private placement investment are also higher.
Private placement offerings are generally illiquid, meaning there are limited opportunities to resell the underlying security of the private placement. Therefore, an investor may be forced to hold the private placement security indefinitely.
Investors in a private placement offering are usually provided with less disclosure information than they would receive in a public securities offering. Consequently, investors know much less about the private placement investment and the people behind it.
Private placement offerings have been used by fraudsters in the past, and consequently private placement offerings are one of the most frequent sources of enforcement cases conducted by state securities regulators. It may be very difficult or impossible for an investor in a private placement offering to recover the money invested from the sponsor of the private placement offering if such offering turns out to be fraudulent.
Before investing in a private placement offering, an investor should carefully read and fully understand the subscription agreement and the offering memorandum/private placement memorandum.
For additional details about private placement offerings and red flags associated with such offerings, please visit http://www.sec.gov/oiea/investor-alerts-bulletins/ib_privateplacements.html#.VDane410yUk
This website is published in the United States for residents of the United States. Chestnut Real Estate Funds is not soliciting business in international jurisdictions where it is not registered.
This website is intended for informational purposes only. Despite our efforts to be accurate, these pages may contain errors and information that is no longer current. The information published on this website is subject to change on a regular basis without notice. This website should not be regarded as a complete analysis of the subjects discussed.
Nothing on this website should be constructed as a solicitation or offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction.
Viewing or utilizing information on this website, or contacting or responding to our offices or investment adviser representatives does not create an investment advisory relationship of any kind.
Chestnut Real Estate Funds uses links to other web sites in an effort to assist users in locating information on topics that might be of interest to them. We cannot attest to the accuracy of information provided by linked sites. Linking to a web site does not constitute an endorsement by Chestnut Real Estate Funds or any of its employees of the sponsors of the site or the products presented on the site. Technical problems with outside links, other than a link that has been moved or changed, should be reported to the entity that maintains the site.
Our website is provided to you without charge as a convenience and for your information only. By providing access to our website content, we do not warrant nor represent the following:
the content is accurate or complete;
the content is up-to-date or current;
we have a duty to update any content;
the content is free from technical inaccuracies or typographical errors; and
your access to our website will be free from interruptions, errors, computer viruses, or other harmful components.
We do not assume any liability for these matters. In other words, you use our website at your own risk. Under no circumstances, including but not limited to negligence, shall we be liable for any direct or indirect, special, incidental or consequential damages. This includes loss of data or profit arising out of the use or the inability to use the content of this website, even if one of our representatives has been advised of the possibility of your damages. Some jurisdictions do not allow the exclusion or limitation of liability for consequential or incidental damages. In such jurisdictions, our liability is limited to the greatest extent permitted by law.