<SEC-DOCUMENT>0001144204-19-001501.txt : 20190114
<SEC-HEADER>0001144204-19-001501.hdr.sgml : 20190114
<ACCEPTANCE-DATETIME>20190114091958
ACCESSION NUMBER:		0001144204-19-001501
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190114
DATE AS OF CHANGE:		20190114

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RW HOLDINGS NNN REIT, INC.
		CENTRAL INDEX KEY:			0001645873
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				474156046
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-205684
		FILM NUMBER:		19524070

	BUSINESS ADDRESS:	
		STREET 1:		3090 BRISTOL STREET, SUITE 550
		CITY:			COSTA MESA
		STATE:			CA
		ZIP:			92626
		BUSINESS PHONE:		512-499-3626

	MAIL ADDRESS:	
		STREET 1:		3090 BRISTOL STREET, SUITE 550
		CITY:			COSTA MESA
		STATE:			CA
		ZIP:			92626

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Rich Uncles NNN REIT, Inc.
		DATE OF NAME CHANGE:	20151209

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Rich Uncles REIT, Inc.
		DATE OF NAME CHANGE:	20150623

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Rich Uncles Reit, Inc.
		DATE OF NAME CHANGE:	20150622
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>tv510980_424b3.htm
<DESCRIPTION>424B3
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Filed Pursuant to Rule 424(b)(3)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333-205684 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RW HOLDINGS NNN REIT, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SUPPLEMENT NO. 5 DATED JANUARY 14, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TO</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS DATED APRIL 25, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(as supplemented by Supplement No. 1 dated
May 16, 2018,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Supplement No. 2 dated August 15, 2018,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Supplement No. 3 dated August 17, 2018,
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Supplement No. 4 dated November 13, 2018)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus supplement (&ldquo;Supplement&rdquo;) amends
and supplements our prospectus, dated April 25, 2018, as supplemented by Supplement No. 1 dated May 16, 2018, Supplement No. 2
dated August 15, 2018, Supplement No. 3 dated August 17, 2018, and Supplement No. 4 dated November 13, 2018 (the &ldquo;Prospectus&rdquo;).
This Supplement should be read in conjunction with the Prospectus, as previously supplemented. This Supplement is not complete
without and may not be delivered or used except in conjunction with, the Prospectus, including any amendments or previous supplements
to it. This Supplement is qualified by reference to the Prospectus, as previously supplemented, except to the extent that the information
provided by this Supplement supersedes information contained in the Prospectus, as previously supplemented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">Unless the context suggests otherwise,
capitalized terms used in this Supplement shall have the same meanings as in the Prospectus. In addition, as used herein, references
in this Supplement to the &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;us&rdquo; and &ldquo;our&rdquo; refer to RW Holdings
NNN REIT, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">The purpose of this Supplement is to disclose:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our estimated net asset value (&ldquo;NAV&rdquo;) per share;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a change in the offering price for our shares in our distribution reinvestment plan; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>information regarding our share redemption program.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Estimated Net Asset Value Per Share</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Overview</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">On January 11, 2019, the conflicts committee
of the Company's board of directors recommended and the board of directors unanimously approved and established an estimated per
share NAV of the Company&rsquo;s common stock of $10.16 based on an estimated market value of the Company's assets less the estimated
market value of the Company's liabilities, divided by the number of shares outstanding as of December 31, 2018. The estimated per
share NAV as of December 31, 2018 will first appear on investor dashboards on January 14, 2019. This is the second time that the
board of directors has determined an estimated per share NAV of the Company's common stock and the Company intends to continue
to publish an updated estimated per share NAV on at least an annual basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Process</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The conflicts committee of our board of
directors, composed solely of all of our independent directors, is responsible for the oversight of the valuation process used
to determine the estimated NAV per share of our common stock, including oversight of the valuation processes and methodologies
used to determine our estimated NAV per share, the consistency of the valuation methodologies with real estate industry standards
and practices and the reasonableness of the assumptions used in the valuations and appraisals. In determining the estimated NAV
of our shares, our conflicts committee and board of directors considered information and analysis, including valuation materials
that were provided by Cushman &amp; Wakefield Western, Inc. (&ldquo;Cushman &amp; Wakefield&rdquo;) and information provided by
our advisor. Cushman &amp; Wakefield is an independent third-party real estate advisory and consulting firm that was engaged by
us to develop an estimate of the fair value of the Company. Cushman &amp; Wakefield developed an opinion of fair value of the real
estate assets and real estate related liabilities associated with the Company&rsquo;s properties. The valuation was performed in
accordance with the provisions of the Investment Program Association Practice Guideline 2013-01, Valuations of Publicly Registered
Non-Listed REITs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Cushman &amp; Wakefield's scope of work
was conducted in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of
the Appraisal Institute. Several members of the Cushman &amp; Wakefield engagement team who certified the methodologies and assumptions
applied by us hold a Member of Appraisal Institute (&ldquo;MAI&rdquo;) designation. Other than its engagement as described herein,
Cushman &amp; Wakefield does not have any direct interests in any transaction with us and has not performed any services for us
other than Asset Allocation services pursuant to Accounting Standards Update No. 2017-01, <I>Clarifying the Definition of a Business</I>
(ASU No. 2017-01) and Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (ASC
Topic 805).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The materials provided by Cushman &amp;
Wakefield included a range of NAV of our shares, and the conflicts committee of our board of directors believes that the use of
the &ldquo;Valuation Methodology,&rdquo; as discussed below, as the primary or sole indicator of value has become widely accepted
as a best practice in the valuation of non-listed REIT shares, and therefore the conflicts committee and our board of directors
determined to use the Valuation Methodology in establishing the estimated per share NAV. This Valuation Methodology is consistent
with the Net Asset Value Calculation and Valuation Procedures adopted by the board of directors, including a majority of our independent
directors. Based on these considerations, the conflicts committee recommended that our board of directors establish an estimated
value of our common stock, as of December 31, 2018, of $10.16 per share, which estimated value was within the $9.30 to $10.51 per
share valuation range calculated by Cushman &amp; Wakefield using the Valuation Methodology. The board of directors unanimously
agreed to accept the recommendation of the conflicts committee and approved $10.16 as the estimated NAV per share of our common
stock. Our board of directors is ultimately and solely responsible for the establishment of the per share estimated value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Valuation Methodology</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In preparing its valuation materials and
in reaching its conclusions as to the reasonableness of the methodologies and assumptions used by the Company to value its assets,
Cushman &amp; Wakefield, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 58.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">investigated numerous sales in the properties' relevant markets, analyzed rental data and considered the input of buyers, sellers, brokers, property developers and public officials;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">reviewed and relied upon Company-provided data regarding the size, year built, construction quality and construction type of the properties in order to understand the characteristics of the existing improvements and underlying land;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">reviewed and relied upon Company-provided balance sheet items such as cash and other assets, as well as debt and other liabilities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">relied upon Company-provided derivative instrument valuation reports prepared by a third-party pricing service;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">researched the market by means of publications, public and private databases and other resources to measure current market conditions, supply and demand factors, and growth patterns and their effect on the properties; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">performed such other analyses and studies, and considered such other factors, as Cushman &amp; Wakefield considered appropriate.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Cushman &amp; Wakefield utilized two approaches
in valuing the Company&rsquo;s real estate assets that are commonly used in the commercial real estate industry. The following
is a summary of the NAV Methodology and the valuation approaches used by Cushman &amp; Wakefield:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>NAV Methodology-</I> The NAV Methodology
determines the value of the Company by determining the estimated market value of the Company's entity level assets, including real
estate assets, and subtracting the market value of its entity level liabilities, including its debt. The materials provided by
Cushman &amp; Wakefield to estimate the value of the real estate assets were prepared using discrete estimations of &quot;as is&quot;
market valuations for each of the properties in the Company's portfolio using the income capitalization approach as the primary
indicator of value and the sales comparison approach as a secondary approach to value, as discussed in greater detail below. Cushman
&amp; Wakefield also estimated the fair value of the Company's real estate related debt and also reviewed the methodology used
by a third-party pricing service to estimate the fair value of the Company&rsquo;s derivatives and determined that the approach
was reasonable. Cushman &amp; Wakefield then added the non-real estate related assets and subtracted non-real estate related liabilities.
The resulting amount, which is the estimated Preliminary NAV of the portfolio, is divided by the number of common shares outstanding
to determine the estimated per share Preliminary NAV. The Preliminary NAV was then used to calculate the subordinated participation
fee that is due to the advisor. The amount of the subordinated participation fee was deducted from the estimated Preliminary NAV
to calculate the estimated NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.45pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Determination of Estimated Market Value of the Company&rsquo;s
Real Estate Assets Under the NAV Methodology</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>Income Capitalization Approach</I> -
The income capitalization approach first determines the income-producing capacity of a property by using contract rents on existing
leases and by estimating market rent from rental activity at competing properties for the vacant space. Deductions are then made
for vacancy and collection loss and operating expenses. The net operating income (&ldquo;NOI&rdquo;) developed in Cushman &amp;
Wakefield's analysis is the balance of potential income remaining after vacancy and collection loss and operating expenses. This
NOI was then capitalized at an appropriate rate to derive an estimate of value (the &ldquo;Direct Capitalization Method&rdquo;)
or discounted by an appropriate yield rate over a typical projection period in a discounted cash flow analysis (the &ldquo;DCF
Method&rdquo;). Thus, two key steps were involved: (1) estimating the NOI applicable to the subject property and (2) choosing appropriate
capitalization rates and discount rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 68.75pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><I>Sales Comparison Approach</I> - The
sales comparison approach estimates value based on what other purchasers and sellers in the market have agreed to as the price
for comparable improved properties. This approach is based upon the principle of substitution, which states that the limits of
prices, rents, and rates tend to be set by the prevailing prices, rents, and rates of equally desirable substitutes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Utilizing the NAV Methodology, including
use of the two approaches to value the Company&rsquo;s real estate assets noted above, when divided by the 12.96 million shares
of the Company's common stock outstanding on December 31, 2018, Cushman &amp; Wakefield determined a valuation range of $9.30 to
$10.51 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Cushman &amp; Wakefield prepared and provided
to the Company a report containing, among other information, the range of net asset values for the Company's common stock as of
December 31, 2018 (the &ldquo;Valuation Report&rdquo;). On January 11, 2019, the conflicts committee of our board of directors
conferred with Cushman &amp; Wakefield regarding the methodologies and assumptions used in the Valuation Report. On January 11,
2019, the conflicts committee of our board of directors recommended, and our board of directors unanimously approved, an estimated
per share NAV of the Company's common stock, as of December 31, 2018, of $10.16 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;The table below sets forth the calculation
of the Company's estimated per share NAV as of December 31, 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Estimated Value</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Estimated<BR> Per Share NAV</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 72%; font-size: 10pt; text-align: left">Real estate properties</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">241,541,137</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">18.64</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Investment in unconsolidated entities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9pt">Santa Clara Property Tenant in Common Interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,125,847</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.01</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9pt">Rich Uncles Real Estate Investment Trust 1</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,347,510</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.34</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cash, cash equivalents and restricted cash</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,584,335</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.66</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,925,802</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.15</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 9pt">Total assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">269,524,631</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">20.80</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Mortgage notes payable and unsecured credit facility, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">130,503,181</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.07</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Tenant improvement liability</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,700,654</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.29</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,769,199</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.21</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Total liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">136,973,034</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10.57</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9pt">Preliminary NAV</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">132,551,597</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.23</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Subordinated participation fee payable (1)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(839,050</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">Total estimated value as of December 31, 2018</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">131,712,547</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">10.16</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">Shares outstanding</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">12,960,889</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) This fee is going to be paid in cash. <I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exclusions from Estimated NAV</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The estimated share value approved by the
board of directors does not reflect any &ldquo;portfolio premium,&rdquo; nor does it reflect an enterprise value of the Company,
which may include a premium or discount to NAV for:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 45pt; text-align: justify"><FONT STYLE="font-size: 10pt">the size of the Company's portfolio as some buyers may pay more for a portfolio compared to prices for individual investments;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 45pt; text-align: justify"><FONT STYLE="font-size: 10pt">the overall geographic and tenant diversity of the portfolio as a whole;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 45pt; text-align: justify"><FONT STYLE="font-size: 10pt">the characteristics of the Company's working capital, leverage, credit facilities and other financial structures where some buyers may ascribe different values based on synergies, cost savings or other attributes;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 45pt; text-align: justify"><FONT STYLE="font-size: 10pt">certain third-party transaction or other expenses that would be necessary to realize the value;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 45pt; text-align: justify"><FONT STYLE="font-size: 10pt">services being provided by personnel of advisors under the advisory agreement and the Company's potential ability to secure the services of a management team on a long-term basis; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 45pt; text-align: justify"><FONT STYLE="font-size: 10pt">the potential difference in per share value if the Company were to list its shares of common stock on a national securities exchange.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Limitations of the Estimated Share Value</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As with any valuation methodology, the
NAV Methodology used by the board of directors in reaching an estimate of the value of the Company's shares is based upon a number
of estimates, assumptions, judgments and opinions that may, or may not, prove to be correct. The use of different valuation methods,
estimates, assumptions, judgments or opinions may have resulted in significantly different estimates of the value of the Company's
shares. In addition, the board of directors&rsquo; estimate of share value is not based on the book values of the Company's real
estate, as determined by generally accepted accounting principles, as the Company's book value for most real estate is based on
the amortized cost of the property, subject to certain adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Furthermore, in reaching an estimate of
the value of the Company's shares, our board of directors did not include a discount for debt that may include a prepayment obligation
or a provision precluding assumption of the debt by a third party. In addition, selling costs were not considered by Cushman &amp;
Wakefield in the valuation of the properties. Other costs that are likely to be incurred in connection with an appropriate exit
strategy, whether that strategy involves a listing of the Company's shares of common stock on a national securities exchange, a
merger of the Company, or a sale of the Company's portfolio were also not included in the board of directors&rsquo; estimate of
the value of the Company's shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As a result, there can be no assurance
that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 103.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">stockholders will be able to realize the estimated share value upon attempting to sell their shares;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 103.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">the Company will be able to achieve, for its stockholders, the estimated per share NAV upon a listing of the Company's shares of common stock on a national securities exchange, a merger of the Company, or a sale of the Company's portfolio; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="padding-right: 103.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">the estimated share value, or the methodology relied upon by the board of directors to estimate the share value, will be found by any regulatory authority to comply with ERISA, the Internal Revenue Code or other regulatory requirements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Furthermore, the estimated value of the
Company's shares was calculated as of a particular point in time. The value of the Company's shares will fluctuate over time as
a result of, among other things, developments related to individual assets and responses to the real estate and capital markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Information Regarding Engagement of Cushman &amp;
Wakefield</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Cushman &amp; Wakefield was selected by
our advisor and approved by our conflicts committee and board of directors to estimate the fair value of the real estate assets
and real estate related liabilities associated with the Company&rsquo;s properties. Cushman &amp; Wakefield's valuation materials
were addressed solely to the advisor in connection with the approval by the board of directors of an estimated value of the Company's
common shares as of December 31, 2018. Cushman &amp; Wakefield's valuation materials provided to the Company do not constitute
a recommendation to purchase or sell any shares of the Company's common stock or other securities. The estimated value of the Company's
common stock may vary depending on numerous factors that generally impact the price of securities, the financial condition of the
Company and the state of the real estate industry more generally, such as changes in economic or market conditions, changes in
interest rates, changes in the supply of and demand for commercial real estate properties and changes in tenants' financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In connection with its review, while Cushman
&amp; Wakefield reviewed the information supplied or otherwise made available to it by the Company and its advisor for reasonableness,
Cushman &amp; Wakefield assumed and relied upon the accuracy and completeness of all such information and of all information supplied
or otherwise made available to it by any other party, and did not undertake any duty or responsibility to verify independently
any of such information. With respect to financial forecasts and other information and data provided to or otherwise reviewed by
or discussed with Cushman &amp; Wakefield, Cushman &amp; Wakefield assumed that such forecasts and other information and data were
reasonably prepared in good faith on bases reflecting the best currently available estimates and judgments of management of the
Company and its advisor, and relied upon the Company and its advisor to advise Cushman &amp; Wakefield promptly if any information
previously provided became inaccurate or was required to be updated during the period of its review.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In preparing its valuation materials, Cushman
&amp; Wakefield did not, and was not requested to, solicit third party indications of interest for the Company in connection with
possible purchases of the Company's securities or the acquisition of all or any part of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In performing its analyses, Cushman &amp;
Wakefield made numerous assumptions with respect to industry performance, general business, economic and regulatory conditions
and other matters, many of which are beyond Cushman &amp; Wakefield's control and the control of the Company. The analyses performed
by Cushman &amp; Wakefield are not necessarily indicative of actual values, trading values or actual future results of the Company's
common stock that might be achieved, all of which may be significantly more or less favorable than suggested by such analyses.
The analyses do not reflect the prices at which properties may actually be sold, and such estimates are inherently subject to uncertainty.
The conflicts committee and the board of directors considered other factors in establishing the estimated value of the Company's
common stock in addition to the materials prepared by Cushman &amp; Wakefield. Consequently, the analyses contained in the Cushman
&amp; Wakefield materials should not be viewed as being determinative of the board of directors&rsquo; estimate of the value of
the Company&rsquo;s common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Cushman &amp; Wakefield's materials were
necessarily based upon market, economic, financial and other circumstances and conditions existing as of December 31, 2018, and
any material change in such circumstances and conditions may have affected Cushman &amp; Wakefield's analysis, but Cushman &amp;
Wakefield does not have, and has disclaimed, any obligation to update, revise or reaffirm its materials as of any date subsequent
to December 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">For services rendered in connection with
and upon the delivery of its valuation materials, the Company paid Cushman &amp; Wakefield a customary fee. The compensation Cushman
&amp; Wakefield received was based on the scope of work and was not contingent on an action or event resulting from analyses, opinions,
or conclusions in its valuation materials or from its use, in addition, Cushman &amp; Wakefield's compensation for completing the
valuation was not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause
of the Company, the amount of the estimated value, the attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the intended use of the valuation materials. The Company also agreed to reimburse Cushman &amp; Wakefield for
its expenses incurred in connection with its services and will indemnify Cushman &amp; Wakefield against certain liabilities arising
out of its engagement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Offering Price</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Commencing on January 14, 2019, the offering
price for shares of the Company's Class C common stock pursuant to the Company's current registered public offering (the &ldquo;Registered
Offering&rdquo;) is $10.16 per share. All subscriptions that were received in good order and fully funded by the close of business
on January 11, 2019 were processed using the $10.05 per share offering price; all subscriptions for offering shares received on
or after January 14, 2019 will be processed using a $10.16 per share offering price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Distribution Reinvestment Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Pursuant to the terms of the Company's
distribution reinvestment plan currently in effect (the &ldquo;DRIP&rdquo;), on or after the date that the board of directors determines
a reasonable estimated value of the Company's shares, distributions will be reinvested in shares of our common stock at a price
equal to the most recently disclosed estimated per share value, as determined by the board of directors excluding those the board
of directors designates as ineligible for reinvestment through the DRIP. Accordingly, shares of the Company's common stock issued
pursuant to the DRIP will be issued for $10.16 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">A participant may terminate participation
in the DRIP at any time by delivering a written notice to the administrator. To be effective for any monthly distribution, such
termination notice must be received by the Company at least ten (10) business days prior to the last day of the month to which
the distribution relates. Any termination should be provided by written notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Stockholders who presently participate
in the DRIP do not need to take any action to continue their participation in the DRIP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Share Redemption Program</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In accordance with the Company's share
redemption program for its Registered Offering, after such time as the board of directors has determined a reasonable estimate
of the value of the Company's shares, the per share redemption price will depend on the length of time the redeeming stockholder
has held such shares as follows: less than one year from the purchase date, 97% of the most recently published NAV; after at least
one year but less than two years from the purchase date, 98% of the most recently published NAV; after at least two years but less
than three years from the purchase date, 99% of the most recently published NAV; and after three years from the purchase date,
100% of the most recently published NAV. As a result of the board of directors&rsquo; determination of an estimated value of the
Company's shares of common stock, the estimated per share value of $10.16 shall serve as the most recently published NAV for purposes
of the share redemption program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Certain statements contained herein, other
than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited
to, statements related to the Company's expectations regarding the performance of its business and the estimated net asset value
per share of the Company's common stock. Cushman &amp; Wakefield relied on forward-looking information, some of which was provided
by or on behalf of the Company, in preparing its valuation materials. Therefore, neither such statements nor Cushman &amp; Wakefield's
valuation materials are intended to, nor shall they, serve as a guarantee of the Company's performance in future periods. You can
identify these forward-looking statements by the use of words such as &ldquo;believes,&rdquo; &ldquo;potential,&rdquo; &ldquo;may,&rdquo;
&ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;intends,&rdquo; &ldquo;estimates,&rdquo; &ldquo;anticipates&rdquo; or the negative
version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties,
including those described under the section entitled &ldquo;Risk Factors&rdquo; in the Company's Annual Report on Form 10-K for
the year ended December 31, 2017, filed with the U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;). Accordingly, there
are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these
statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements
that are included herein and in the Company&rsquo;s other filings with the SEC. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Actual events
may cause the valuation and returns on the Company&rsquo;s investments to be less than that used for purposes of the Company&rsquo;s
estimated per share NAV.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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