The Covenant Diversified REIT, Inc. (the “Company”) is a newly formed Real Estate Investment Trust (a “REIT“) that has been formed by 1031 Crowdfunding, LLC, a California limited liability company (“1031 Crowdfunding” or the “Sponsor”) to invest in a diversified portfolio of stabilized, income-generating commercial real estate with an initial concentration in senior housing.  We will also seek to take advantage of market conditions to identify, underwrite and acquire value-add and turnaround properties to accrete value.

In general, you may buy Shares of our Class B Common Stock pursuant our Private Placement Memorandum provided that you are an “Accredited Investor” as defined in Rule 501(a) of Regulation D under the Securities Act.  Generally, you must initially invest at least $5,000 in Shares of our Class B Common Stock.

Here is a basic overview an Accredited Investor; you must meet one of these suitability requirements:

Income (over $200k)

You earned income that exceeded $200,000 in each of the prior two years, and reasonably expect the same for the current year. 

Joint Income (over $300k)

You and your spouse earned combined income that exceeded $300,000 in each of the prior two years, and reasonably expect the same for the current year. 

Net Worth (over $1 mil)

You have a net worth over $1 million, either alone or together with your spouse (excluding the value of your primary residence). 

Qualified Purchaser

You are a natural person (including any person who holds a joint, community property, or other similar shared ownership interest in an issuer that is accepted under Title 15 U.S.C. Chapter 2D, Sub Chapter I, with that person’s qualified purchaser spouse) who owns not less than $5,000,000 in investments. 

Other

You are an accredited investor as defined in Rule 501 of Regulation D for other reasons, such as a director, executive officer, general partner of the Issuer, or FINRA member.

Contact one of our Registered Representatives to invest. Call us at (844) 533-1031 or create an investor account here.  

The Company will invest primarily in stabilized income-generating commercial real estate in the United States, though we will not be precluded from investing outside the United States.  To a lesser extent we may also invest in real estate debt or real-estate related securities.  Our objective is to bring 1031 Crowdfunding’s healthcare real estate investment platform via Delaware Statutory Trusts (“DSTs”), to REIT investors seeking a hedge against inflation without the volatility of the publicly traded markets.  Through subsidiaries, we currently own three senior housing properties acquired from affiliated DSTs (the “Contribution Properties”) as further described herein.

Our initial portfolio, including our Contribution Properties, will be concentrated in the healthcare space, and, in particular, senior housing; however, the Company anticipates seeking to diversify its investments into additional real property segments including: healthcare (senior housing), residential, industrial, net lease, data centers, hospitality, self-storage, retail, and office properties, as well as potential investments in real estate debt and real estate related securities. Generally, we expect that a significant majority of our assets will ultimately be investments in healthcare, multifamily residential, and industrial properties.  However, we may invest in different asset classes in our discretion.  Senior housing includes assisted living, memory care, skilled nursing, and behavioral facilities.  Residential includes shorter-term leases in connection with multifamily and other types of rental housing such as manufactured, student, affordable, and single-family rental housing.  Industrial includes shorter-term leases in connection with multi-tenant and single-tenant properties that, like shorter-term residential leases, can mark-to-market quickly during inflationary times.  We anticipate our initial investments will be into assisted living and memory care facilities, such as our Contribution Properties.

We seek to provide an investment alternative for stockholders seeking to allocate a portion of their long-term investment portfolios to commercial real estate with lower volatility than listed public real estate companies.  Our primary investment objectives include the following: (i) preserve and protect our stockholders’ capital contributions; (ii) provide attractive current income in the form of regular, stable cash distributions to our stockholders; and (iii) generate attractive risk-adjusted returns and net asset value appreciation from proactive investment management and asset management.  In furtherance of these objectives, we will seek assets that enable us to mark rents to market quickly as a hedge against inflation.

There is no guarantee that we will achieve these investment objectives.  We intend to supplement our Private Placement Memorandum during the offering period to describe acquisitions of significant investments.

Form 1099-DIV.