Summary Risk Factors

You should purchase these securities only if you can afford a complete loss of your investment. See “Risk Factors” in our prospectus for a discussion of certain factors that should be carefully considered by prospective investors before making an investment in the shares offered hereby. These risks include, but are not limited to, the following:  

  • There is currently no public trading market for shares of our common stock and there may never be one. Therefore, it will be difficult for you to sell your shares.
  • The purchase and redemption price for shares of our common stock is based on the NAV of each class of common stock and is not based on any public trading market. Our NAV does not currently represent our enterprise value and may not accurately reflect the actual prices at which our assets could be liquidated on any given day, the value a third party would pay for all or substantially all of our shares, or the price that our shares would trade at on a national stock exchange. Furthermore, our board of directors may amend our NAV procedures from time to time.
  • Our share redemption program generally imposes a quarterly cap on aggregate redemptions of our shares equal to a value of up to 5% of the aggregate NAV of the outstanding shares as of the last business day of the previous quarter. We may also amend, suspend or terminate our share redemption program at any time.
  • We have paid, and may continue to pay, distributions from sources other than our cash flow from operations, including out of net proceeds from this offering; therefore, we will have fewer funds available for the acquisition of properties, and our stockholders’ overall return may be reduced.
  • This is a "best efforts" offering. If we are unable to raise substantial funds, we will be limited in the number and type of additional investments we may make, and the value of your investment will be based on the performance of the specific properties we own and acquire.
  • You are bound by the majority vote on matters on which our stockholders are entitled to vote and, therefore, your vote on a particular matter may be superseded by the vote of other stockholders.
  • Many of our properties will depend upon a single tenant for all or a majority of their rental income, and our financial condition and ability to make distributions may be adversely affected by bankruptcy or insolvency, a downturn in the business, or a lease termination of a single tenant.
  • As of April 30, 2019, our five largest tenants based upon estimated annual net rental income were General Electric Company, located in Georgia, Ohio and Texas (approximately 3.9%), Wood Group, located in Texas (approximately 3.4%), Southern Company Services, located in Alabama (approximately 3.1%), American Express Travel Related Services Co., Inc., located in Arizona (approximately 3.0%), and LPL Holdings, Inc., located in South Carolina (approximately 2.9%); therefore we currently rely on these five tenants for a meaningful amount of revenue and adverse effects to their business could affect our performance.
  • Our newly-issued Series A Preferred Shares (as defined in our prospectus) issued in connection with the Mergers (as defined in our prospectus) rank senior to our common stock and therefore, any cash we have to pay distributions will be used to pay distributions to the holders of Series A Preferred Shares first, which could have a negative impact on our ability to pay distributions to our common stockholders.
  • We may not be able to sell our properties at a price equal to, or greater than, the price for which we purchased such properties, which may lead to a decrease in the value of our assets. Adverse economic conditions may negatively affect our property values, returns and profitability.
  • If we breach covenants under our credit agreement, we could be held in default under such agreement, which could accelerate our repayment date and materially adversely affect the value of our stockholders’ investment in us.
  • Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to make distributions to you at our current level.
  • Disruptions in the credit markets could have a material adverse effect on our results of operations, financial condition and ability to pay distributions to you at our current level.
  • Failure to maintain our status as a Real Estate Investment Trust (“REIT”) would adversely affect our operations and our ability to make distributions as we will incur additional tax liabilities.
  • You may have tax liability on distributions you elect to reinvest in our common stock.
  • There are special considerations that apply to employee benefit plans, IRAs, tax-qualified retirement plans, or other tax-favored benefit accounts investing in our shares which could cause an investment in our shares to be a prohibited transaction which could result in additional tax consequences.