The Parking REIT Delays NAV Update Citing Covid-19

The Parking REIT Delays NAV Update Citing Covid-19, featured by top securities fraud attorneys, The White Law GroupConcerned 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.

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.

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.

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 (MVP REIT II) Withdraws $100 million IPO

The Parking REIT (MVP REIT) Lawsuits, Featured by Top Securities Attorneys, The White Law GroupThe Parking REIT (MVP REIT II) Lawsuits

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.