Are you concerned about your investment in The Parking REIT? If so, the securities attorneys at The White Law Group may be able to help you.
The Parking REIT, Inc. (formerly known as MVP REIT II, Inc.) is a publicly registered, non-listed REIT that invests primarily in parking lots and garages in the United States. Its assets include 44 parking facilities located in 15 states.
As we told you previously on March 22, 2018, the board of non-traded REIT suspended the company’s cash distributions and stock dividends.
According to SEC filings last week, The Parking REIT, Inc. has withdrawn its registration statement that was filed on October 5, 2018.
The company originally filed a preliminary prospectus with the SEC to raise up to $100 million in an initial public offering, but said that it “believes the withdrawal to be consistent with the public interest and the protection of investors.”
The REIT reportedly planned to use proceeds from the IPO to repay approximately $9.1 million in debt, and for general corporate and working capital purposes.
Although the REIT approved an estimated net asset value per share of $25.10 on May 15, 2019, shares have been sold at a secondary price of just $14.01 per share.
The original offering price was $25.00 per share.
The Risks of Non-traded REITs
Non-traded REITs are complicated and often risky investments which should only be sold to high-net worth and sophisticated investors.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk REITs, like The Parking REIT, to investors.
Notwithstanding the risks of investing in REITs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. Brokerage firms generally make between 7-10% for selling a REIT, which is far in excess of the typical commission for more traditional investment types.
To speak with a securities attorney regarding your investment in a The Parking REIT or MVP REIT II, please call The White Law Group at (888)637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit the firm’s website at https://www.whitesecuritieslaw.com.