CNSREIT-AR-2024 Final - Flipbook - Page 42
Acquiring or attempting to acquire multiple properties in a single transaction may adversely affect our operations.
From time to time, we may acquire multiple properties in a single transaction. Portfolio acquisitions typically are more
complex and expensive than single-property acquisitions, and the risk that a multiple-property acquisition does not close
may be greater than in a single-property acquisition. Portfolio acquisitions may also result in us owning investments in
geographically dispersed markets, placing additional demands on the Advisor in managing the properties in the portfolio.
In addition, a seller may require that a group of properties be purchased as a package even though we may not want to
purchase one or more properties in the portfolio. In these situations, if we are unable to identify another person or entity to
acquire the unwanted properties, we may be required to operate or attempt to dispose of these properties. We also may be
required to accumulate a large amount of cash to fund such acquisitions. We would expect the returns that we earn on such
cash to be less than the returns on investments in real property. Therefore, acquiring multiple properties in a single
transaction may reduce the overall yield on our portfolio.
If we obtain options to acquire properties, we may lose the amount paid for such options whether or not the underlying
property is purchased.
We may obtain options to acquire certain properties. The amount paid for an option, if any, is normally surrendered if
the property is not purchased and may or may not be credited against the purchase price if the property is purchased. Any
unreturned option payments will reduce the amount of cash available for further investments or distributions to our
stockholders.
In our due diligence review of potential investments, we may rely on third-party consultants and advisors and
representations made by sellers of potential portfolio properties, and we may not identify all relevant facts that may be
necessary or helpful in evaluating potential investments.
Before making investments, due diligence will typically be conducted in a manner that we deem reasonable and
appropriate based on the facts and circumstances applicable to each investment. Due diligence may entail evaluation of
important and complex business, financial, tax, accounting, environmental, social governance, real property and legal
issues. Outside consultants, legal advisors, appraisers, accountants, investment banks and other third parties, including
affiliates of the Advisor or Cohen & Steers, may be involved in the due diligence process to varying degrees depending on
the type of investment, the costs of which will be borne by us. Such involvement of third-party advisors or consultants may
present a number of risks primarily relating to the Advisor9s reduced control of the functions that are outsourced. Where
affiliates of Cohen & Steers are utilized, the Advisor9s management fee will not be offset for the fees paid or expenses
reimbursed to such affiliates. In addition, if the Advisor is unable to timely engage third-party providers, the ability to
evaluate and acquire more complex targets could be adversely affected. In the due diligence process and making an
assessment regarding a potential investment, the Advisor will rely on the resources available to it, including information
provided by the seller of the investment and, in some circumstances, third-party investigations. The due diligence
investigation carried out with respect to any investment opportunity may not reveal or highlight all relevant facts that may
be necessary or helpful in evaluating such investment opportunity, particularly for large portfolio investments. Moreover,
such an investigation will not necessarily result in the investment being successful. There can be no assurance that attempts
to provide downside protection with respect to investments, including pursuant to risk management procedures described in
this Annual Report on Form 10-K and our other SEC filings, will achieve their desired effect and potential investors should
regard an investment in us as being speculative and having a high degree of risk.
There can be no assurance that the Advisor will be able to detect or prevent irregular accounting, employee misconduct
or other fraudulent practices or material misstatements or omissions during the due diligence phase or during our
efforts to monitor and disclose information about the investment on an ongoing basis or that any risk management
procedures implemented by us will be adequate.
When conducting due diligence and making an assessment regarding an investment, the Advisor will rely on the
resources available to it, including information provided or reported by the seller of the investment and, in some
circumstances, third-party investigations. The due diligence investigation that the Advisor carries out with respect to any
investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such
investment opportunity. Moreover, such an investigation will not necessarily result in the investment being successful.
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