Pacific Oak Strategic Opportunity REIT Decline in Value

Posted on March 9, 2021 by The White Law Group

Pacific Oak Strategic Opportunity REIT Shareholders may have Claims

The White Law Group is investigating potential securities claims involving the liability that brokerage firms may have for recommending Pacific Oak Strategic Opportunity REIT to investors.

Pacific Oak Strategic Opportunity REIT (formerly KBS Strategic Opportunity REIT II), a non-traded REIT closed its initial public offering on November 20, 2012.

Last October Pacific Oak Strategic Opportunity REIT II shareholders approved a merger into Pacific Oak Strategic Opportunity REIT. The REIT was designed to capitalize on “the dislocation, lack of liquidity, and government intervention” that exists in the commercial real estate markets by acquiring a diverse portfolio of opportunistic investments in discounted debt and distressed equity assets.

On December 4, 2020, the board of directors of Pacific Oak Strategic Opportunity REIT approved an estimated value per share of the Company’s common stock of $9.68. This is a decline from the previous year’s NAV of $10.25 per share.

According to Central Trade and Transfer, a secondary market for illiquid investments, shares of Pacifc Oak are currently listed to sell for just $6.50 per share. This may indicate losses for investors as the original offering price for the REIT was $10 per share.

The Trouble with Non-Traded REITs

The trouble with non-traded REITs is that they are complex and inherently risky products.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Investigating Potential Claims

If you have suffered losses investing in Pacific Oak Strategic Opportunity REIT, please contact The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

The Parking REIT Delays NAV Update Citing Covid-19

Posted on December 31, 2020 by The White Law Group

Concerned about investment losses in the Parking REIT?
Did you lose money in the Parking REIT at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm.

The Parking REIT is a non-traded REIT formed in December 2017 by the merger of MVP REIT and MVP REIT II that invests primarily in parking lots and garages in the United States.

The White Law Group has been investigating the Parking REIT/MVP REIT II since 2016 when it first announced that it would re-evaluate pursuing a listing on the NASDAQ Global Market, and consider other stockholder liquidity options.

The company suspended distributions paid on its Series A and Series 1 Preferred Stock last April due to economic turmoil caused by the COVID-19 global pandemic. Yet prior to the Coronavirus, the company suspended distributions and share repurchases for holders of its common stock in 2018.

According to a Form 8-K filing on December 30, The Parking REIT, Inc., has continued to delay its calculation of an updated NAV.

The company says that due to “the severe and continuing impact of the global COVID-19 pandemic and related governmental orders and in light of the extreme uncertainty, volatility and lack of liquidity in the market, which make values difficult to discern, the Board is still unable to determine an NAV estimate at this time.”

The Company cannot provide any assurance as to when the Board will be able to determine an estimated NAV in the future but intends to do so when circumstances permit.The REIT typically calculates its NAV in May each year.

The Trouble with Non-Traded REITs

The trouble with non-traded REITs, like The Parking REIT, is that they are complex and inherently risky products.

Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Filing a Complaint against your Brokerage Firm

If you have suffered losses investing in The Parking REIT (MVP REIT II), please contact The White Law Group at 888-637-5510 for a free consultation.

Northstar Healthcare Income Inc. Continues to Decline in Value

Posted on December 30, 2020 by The White Law Group

Recovery of Investment Losses in NorthStar Healthcare Income Inc.

NorthStar Healthcare Income was reportedly formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate, according to its website. The company launched in February 2013, and through November 8, 2018, reportedly raised total gross proceeds of $2 billion, including $225.3 million through its distribution reinvestment plan.

The White Law Group has been investigating claims involving the REIT since December 2017, when it reduced its distribution rate to 3.31% from 6.67%. It has continued a decline in NAV since 2017 when it was valued at $8.50 per share.

NorthStar Healthcare has announced a revised estimated net asset value of $3.89 per share, as of June 30, 2020. The REIT’s previous NAV was $6.25 per share, as of June 30, 2019, according to recent filings with the Securities and Exchange Commission.

The REIT notes that as of June 30, 2020, the estimated value of the REIT’s 75 healthcare properties was $1.6 billion, compared with an aggregate cost, including purchase price, deferred costs, and other assets of nearly $2.2 billion.

The estimated value of the REIT’s joint venture investments was $389.3 million, compared with a total equity contribution of $511.1 million.

In total, the estimated value of NorthStar Healthcare’s healthcare properties, joint venture investments and healthcare debt investment was approximately $2.06 billion, an approximate 25 percent decrease in value compared to the total cost.

The valuation is reportedly based on the estimated value of NorthStar Healthcare’s assets, less the estimated value of its liabilities, divided by the number of shares outstanding as of June 30, 2020.

In April 2020, the board suspended all repurchases under the share repurchase program in order to preserve capital and liquidity. Distributions were suspended in February 2019.

Unfortunately for investors, this new NAV share price represents a significant loss in value.

The White Law Group continues to investigate the liability that brokerage firms may have for unsuitably recommending that investors invest in Northstar Healthcare Income Inc.

Brokerage firms have an obligation to recommend only investments that are suitable for the investor in light of the investor’s age, investment experience, net worth, and investment objective. If a brokerage firm unsuitably recommends an investment they can be held responsible for the losses in a FINRA arbitration claim.

FINRA’s arbitration forum is a way for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment.

If you are concerned about investment losses in Northstar Healthcare Income Inc., the securities attorneys at the White Law Group may be able to help you, Please call 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. For more information on the firm please visit www.whitesecuritieslaw.com.

CIM Real Estate Finance Trust & Cole REITs Merger

Posted on November 4, 2020 by 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.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

Atlas Growth Partners LP Investment Losses

Posted on October 2, 2020 by The White Law Group

Atlas Growth Partners LP Shareholders may have Claims

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Atlas Growth Partners, LP to investors.

Atlas Growth Partners LP is a Delaware limited partnership and an independent developer and producer of natural gas, crude oil and NGLs with operations primarily focused in the Eagle Ford Shale in south Texas, according to filings with the SEC. The limited partnership is sponsored by Atlas Energy Group, LLC (“ATLS”), a Delaware limited liability company.

The company reportedly filed a form D private placement to raise capital from investors in 2015. According to the Form D, the total offering amount was purportedly $500,000,000 with an estimated $50,000,000 paid in sales commissions and fees.

Alternative investments such as these, have high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may even focus on the income potential and tax benefits while downplaying the risks.

Unfortunately for investors, many oil and gas LPs are struggling to make distribution payments and some may end up defunct.

Filing a Complaint against your Brokerage Firm

Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.

If you are concerned about investment losses in Atlas Growth Partners LP or another oil and gas LP, please contact The White Law Group at 1-888-637-5510 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. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, please visit www.whitesecuritieslaw.com.