CIM Real Estate Finance Trust & Cole REITs Merger

CIM Real Estate Finance Trust & Cole REITs Merger, featured by top attorneys, The White Law Group

CIM Real Estate Finance Trust & Cole REITs Merger

CIM to Merge with Cole Office & Industrial REIT and Cole Credit Property Trust V

Have you suffered losses investing in CIM Real Estate Finance Trust? If so, the securities attorneys at The White Law Group may be able to help you.

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as CIM Real Estate Finance Trust Inc., may have understated or misrepresented the risks and liquidity problems.

CIM Real Estate Finance Trust has announced plans to move forward with a merger involving Cole Office & Industrial REIT (CCIT III) and Cole Credit Property Trust V, after reports this week that one of the REITs in the original proposal, Cole Office & Industrial REIT (CCIT II), would be acquired by Griffin Capital Essential Asset REIT.

In August we reported plans for four Cole REITs to merge, but after the “go-shop” period, CCIT II decided to instead go with an offer from Griffin Capital Essential Asset REIT in a $1.2 billion stock-for-stock transaction.

CCIT III and CCPT V stockholders will vote at special meetings of stockholders scheduled to be held virtually on December 17, 2020.

Risks of Non-Traded REITs

Real estate investment trusts (REITs) are complex and inherently risky products. Unfortunately for investors, many REITs have taken a hit due to the Covid-19 global pandemic, and some have suspended distributions during this  uncertain time.

Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling  REITs – as high as 15%.  In addition to the high risks, non-traded REITs often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Filing a Complaint Against your Brokerage Firm

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell non-traded REITs regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

If you are concerned about your investment in CIM Real Estate Finance Trust or another Cole REIT , you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of 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.

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