HPA DIGNITY HEALTH ARIZONA DST
For Broker Dealer and Investment Advisor home office Due Diligence purposes only.
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Sales - Peak Capital Solutions
www.peakcapitalsolutions.com/team | info@peakcapitalsolutions.com
Managing Broker-Dealer - American Alternative Capital
www.americanaltcap.com | support@americanaltcap.com
This is neither an offer to sell nor a solicitation on an offer to buy securities described herein. An offering is made only by the
Confidential Private Placement Memorandum (PPM). This sale and advertising literature must be read in conjunction with the PPM in order to understand fully all of the implications and risks of the offering to which it relates. A copy of the PPM must be made available to you in connection with this offering. Prospective Members should carefully read the PPM and review any additional information they desire prior to making an investment and should be able to bear the complete loss of their investment.
Securities offered through American Alternative Capital SM (AAC), LLC, member FINRA/SIPC. American Alternative Capital and HPA Exchange LLC are not affiliated companies.
“Investment-grade” refers to tenants whose long-term corporate debt rating is considered investment grade by Standard &
Poor’s, Moody’s, and/or Fitch. An investment grade rating is a rating that indicated that a corporate bond has a relatively lower
risk of default than a corporate bond with a speculative grade.
Consider the Risks
An investment in the interests involves substantial investment and tax risks, including, without limitation, the following risks:
Past performance is not a guarantee of future results.
• The economic success of the interests will depend upon the results of operations of the property. Fluctuations in vacancy
rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of
the property difficult or unattractive.
• The master tenant’s capitalization is supported solely by the cash flow from the underlying tenant lease. The sponsor is
not under any obligation to contribute capital to the master tenant.
• No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover capital expenditures or operating expenses.
• No assurance can be given that beneficial owners of interests will realize a substantial return (if any) on their investment or
that they will not lose their entire investment in the trust.
• The interests are not freely transferable by the beneficial owners.
• There are various risks associated with owning, financing, operating, and leasing commercial properties in Arizona.
• The interests do not represent a diversified investment. Beneficial owners must completely rely on the master
tenant to collect the rent and operate, manage, lease, and maintain the property.
• The beneficial owners have no voting rights with respect to the management or operations of the trust or in connection
with the sale of the property.
• There are various conflicts of interest among the trust, the sponsor, the signatory trustee, and their affiliates.
• The interests are illiquid.
• There are tax risks associated with an investment in the Interests. Each prospective beneficial owner should consult with their tax advisor regarding an investment in the Interests and the qualification of the prospective beneficial owner’s transaction under Section 1031 for their unique circumstances.
• There are risks related to competition from properties similar to and near the property.
• There may be environmental risks related to the property.
• There are various tax risks, including the risk that an acquisition of an Interest may not qualify as replacement property in a Section 1031 Exchange.