EQUITY

Preferred Stock

The Company’s charter authorizes the Company to issue 10,000,000 shares of its $0.01 par value preferred stock. As of September 30, 2014, no shares of preferred stock were issued or outstanding.

Convertible Stock

As of September 30, 2014, the Company had 50,000 shares of $0.01 par value convertible stock outstanding, which are owned by the Advisor. The convertible stock will convert into shares of the Company’s common stock upon the occurrence of (a) the Company having paid distributions to common stockholders that in the aggregate equal 100% of the price at which the Company originally sold the shares plus an amount sufficient to produce a 7% cumulative, non-compounded annual return on the shares at that price; or (b) if the Company lists its common stock on a national securities exchange and, on or after the 31st trading day following the listing, the Company’s value based on the average trading price of its common stock since the listing, plus prior distributions, combine to meet the same 7% return threshold.

Common Stock

As of September 30, 2014, the Company had an aggregate of 1,730,937 shares of $0.01 par value common stock outstanding, including the Advisor's additional purchase of 117,778 shares of common stock for $1,060,000, as follows:



	Shares Issued	Gross Proceeds
Initial public offering	1,711,887	$	16,927,796
Shares issued through stock distributions	2,350	—
Shares issued through distribution reinvestment plan	1,700	16,152
Advisor's initial investment, net of 5,000 share conversion	15,000	200,000
	1,730,937	$	17,143,948

Distributions

On June 5, 2014, the Company's Board of Directors authorized cash distributions to the stockholders of record at the close of business each day in the period commencing July 1, 2014 through and including September 30, 2014. The declared distributions will equal a daily amount of $0.00068493 per share of common stock. The July distribution of $5,524 was paid on August 1, 2014, the August distribution of $8,845 was paid on September 2, 2014, and the September distribution of $11,194 was paid on October 1, 2014.

On June 5, 2014, the Company's Board of Directors authorized a stock distribution of 0.00625 shares of the Company's common stock, $0.01 par value per share, or 0.625% of each outstanding share of common stock to the stockholders of record at the close of business on June 30, 2014. Such stock distribution was issued on July 14, 2014.

On August 14, 2014, the Company's Board of Directors authorized a stock distribution of 0.01 shares of the Company's common stock, $0.01 par value per share, or 1.0% of each outstanding share of common stock to the stockholders of record at the close of business on September 30, 2014. Such stock distribution was issued on October 15, 2014.