According to reports, another non-traded REIT, Cole Credit Property Trust II, is in the beginning stages of initiating its “exit event,” wherein a non-traded REIT either sells its assets or does an initial public offering.
Several other non-traded REITs have gone through their “exit events” recently and most of these have not gone well, with shares in the offering often declining by 30% or more as a result of the exit event.
With almost $3.4 billion in invested assets, Cole Credit Property Trust II is the industry’s seventh-largest nontraded REIT. The REIT primarily invests in single-tenant buildings occupied by such retailers as Walgreens and Rite Aid.
Reports indicate that Cole Credit Property Trust II has hired Morgan Stanley and UBS Investment Bank explore their exit event options.
Although Cole REIT’s estimated valuation is $9.35 per share, the market has not been kind to non-traded REITs so this still bears monitoring.
The White Law Group is currently representing many non-traded REIT investors in claims against the brokerage firms that recommended these products.
Those claims generally involve claims that the broker-dealers failed to perform adequate due diligence on the REITs before offering them for sale to their clients and that the brokerage firms failed to determine whether the investments were appropriate in light of their clients age, investment, experience, net worth, and tolerance for risk.
Non-traded REITs are generally high risk investment, but financial advisor often sell them as low-risk, conservative investments.
If you are concerned about your non-traded REIT investments, please call the securities attorneys of The White Law Group at 312/238-9650 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 and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.