Strategic Realty Trust – Investment Losses?
The White Law Group is investigating potential claims involving broker-dealers who may have unsuitably recommended Strategic Realty Trust to investors.
Strategic Realty Trust, formerly known as TNP Strategic Retail Trust, Inc. is a non-traded real estate investment trust which owns a portfolio of shopping centers that are anchored by such grocers as Publix, Kroger, and Wal-Mart. It is a non-traded REIT sponsored by Thompson National Properties, LLC and launched in 2008.
According to a letter to investors dated July 29th, 2016, the board of directors of the Company has approved an estimated value (“NAV”) of $6.36 per share as of April 30, 2016 based on a new third‐party valuation report from Robert A. Stanger & Co., Inc. This value is down slightly from last year’s NAV of $6.57.
“The main factor in the change was that over the last year we paid approximately $3,800,000 in yield maintenance or prepayment costs on old loans associated with properties that were sold in furtherance of our strategic plan. Without this 24¢ per share financing charge our NAV would have increased to $6.60. Please keep in mind that the NAV is an estimate and the ultimate value we all receive from our shares may vary.”
Risks of Non-traded REITs
Many investors were not made adequately aware of the risk and lack of liquidity associated with non-traded REITs like Strategic Realty Trust (TNP Strategic Retail Trust).
Brokers that sold non-traded REITs had a responsibility to make investment recommendations that were suitable for each individual client. Brokers must take into account more than just a client’s net worth, such factors as age, investment experience, product knowledge, objectives, and risk tolerance should have been taken into consideration.
When brokers mislead clients and fail to perform adequate due diligence when making investment recommendations, can be liable for investment losses.
If you have concerns regarding your investment in TNP Strategic Retail Trust or another TNP investment and would like to speak with a securities attorney about your litigation options, please call 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 and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.