Investigating Potential Claims Involving Benefit Street Partners Realty Trust
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that some investors purchase REITs like Benefit Street Partners Realty Trust.
Benefit Street Partners Realty Trust is a publicly registered non-traded REIT formerly known as Realty Finance Trust. The REIT appointed Benefit Street Partners as its new advisor at the end of September 2016, replacing AR Global Investments – formerly AR Capital.
Benefit Street Partners Realty Trust focuses on commercial real estate debt investments secured by income-producing properties and targets loans and securities.
The REIT began operations in November 2012 and raised $786 million in investor equity prior to closing the offering in January 2016. As of September 30, 2016, the company’s portfolio consisted of 73 loans and 7 CMBS investments.
Risks of REITs
REITs are complex and high risk investments that are really only suitable for sophisticated investors.
A real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, including office buildings, warehouses, hospitals, shopping centers, hotels and even timberlands. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.
Secondary Market Offer
According to CFX Trading, a secondary market for private placements, shares of Benefit Street Partners Realty Trust are currently listed for $12.99/share. This is unfortunate news for investors as the original purchase price per share was $25.
Additionally, the REIT stated that January 2017 it paid an average of $19.23 for nearly 473,806 shares repurchased from its stockholders.
Is this investment suitable for you?
Brokerage firms have a responsibility to perform due diligence on any investment. They must ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Such investments are likely only suitable for wealthy and/or sophisticated investors, due to the current risk of devaluation.
If you are concerned about investment losses in Benefit Street Partners Realty Trust and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on the firm, visit http://www.whitesecuritieslaw.com.