Attached files
| file | filename |
|---|---|
| 8-K - CORNERSTONE REALTY FUND LLC | v182295_8k.htm |
Exhibit
99.1
April 23,
2010
Dear
Cornerstone Realty Fund, LLC (CRF) Investor:
This
letter is to inform you of CRF’s progress with regard to voting on a proposal to
amend the operating agreement to permit CRF to incur debt
financing.
As a
reminder, the amendment allows CRF to incur a low level of debt in order to meet
current cash needs, including unit holder distributions. The managing
member recommended a vote FOR the proposal to incur debt in order to meet
operating costs of the properties and the Fund, and to maintain the same level
of cash distributions to unit holders.
I am
pleased to report that CRF has received the necessary votes to approve the
amendment to the operating agreement.
At this
point, we are in the negotiation process with several banks to obtain
appropriate financing. While it is difficult to tell how long this
process will take given the extreme tightening that has taken place in the
credit markets, we hope to have everything resolved within 60 to 90
days. Nonetheless, unforeseen circumstances could dictate an even
longer timeframe.
At that
time, the managing member will evaluate the company’s cash resources and
requirements and re-establish distributions and redemptions
accordingly.
We
appreciate your patience as we move forward. If you have any
questions, please contact us at (877) 805-3333.
Sincerely,
Sharon
Kaiser
Chief
Financial Officer
Cornerstone
Ventures, Inc.
Cornerstone Ventures, Inc.
• 1920 Main Street, Suite 400 • Irvine, California 92614
Toll-free
(877) 805-3333 • Local (949) 852-1007 • www.CREfunds.com
Securities
Offered Through Pacific Cornerstone Capital, Inc. Member FINRA and
SIPC
Pacific
Cornerstone Capital, Inc. is an affiliate of Cornerstone Ventures,
Inc.
The
unit repurchase program is subject to certain conditions and limitations.
Repurchases are subject to the limitations of Section 17254 of the
Beverly-Killea Limited Liability Company Act, which prohibits repurchases if the
Fund would be unable to pay its debts as they become due in the usual course of
business or if the Fund’s total assets would be less than the sum of its total
liabilities plus the amount that would be needed to satisfy any preferential
rights of members upon dissolution. In addition, repurchases could be restricted
if such repurchases would jeopardize the status of the Fund as a partnership for
federal income tax purposes or cause the Fund to be treated as a publicly-traded
partnership. To minimize the adverse affect on regular cash distributions to
members and to avoid the possibility of adverse tax consequences, we plan to
initially cap the number of units that can be redeemed in any calendar year at
two percent (2%) of the total amount of units outstanding. The managing member
may impose other conditions and limitations upon repurchases that the managing
member determines in its sole discretion.
This
material does not constitute an offer to sell or a solicitation of an offer to
buy Cornerstone Realty Fund, LLC. An offer can only be made by a
private offering memorandum that contains more complete information on risks,
management fees and other expenses. There is no guarantee that any real estate
strategy will be successful. Past performance does not guarantee future results.
Investors in a real estate investment fund will be subjected to risks associated
with owning real estate including: economic and regulatory changes that impact
the real estate market, lease terminations which reduce rental income, rising
expenses, environmental claims, uninsured losses, potential loss of principal
and the relative illiquidity of equity real estate investments. Investments are
not bank guaranteed, not FDIC insured and may lose value. Securities offered
through Pacific Cornerstone Capital, Inc. Member FINRA and
SIPC
This
letter contains forward-looking statements relating to the business and
financial outlook of Cornerstone Healthcare Plus REIT, Inc. that are based on
our current expectations, estimates, forecasts and projections and are not
guarantees of future performance. Actual results may differ materially from
those expressed in these forward-looking statements, and you should not place
undue reliance on any such statements. A number of important factors could cause
actual results to differ materially from the forward-looking statements
contained in this release. Such factors include those described in the Risk
Factors sections of the prospectus for the offering of shares of Cornerstone
Healthcare Plus REIT, Inc. Forward-looking statements in this document speak
only as of the date on which such statements were made, and we undertake no
obligation to update any such statements that may become untrue because of
subsequent events. We claim the safe harbor protection for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995.