April 25, 2018 Comments (0) Blog, Current Investigations

Benefit Street Partners Realty Trust – Third Party Tender offer

Benefit Street Partners Realty Trust
(Last Updated On: April 25, 2018)

Concerned about your investment in Benefit Street Partners Realty Trust?

Have you suffered losses investing in Benefit Street Partners Realty Trust? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA Arbitration.

Benefit Street Partners Realty Trust is a publicly registered non-traded real estate investment trust formerly known as Realty Finance Trust. The REIT, which began operations in November 2012 and raised $786 million in investor equity, focuses on commercial real estate debt investments secured by income-producing properties and targets loans and securities.

Bad News for Investors

According to its website, MacKenzie Realty Capital Inc., a non-traded business development company, has just extended a tender offer to purchase shares of Benefit Street Partners Realty Trust for $12.27/share. Unfortunately for many investors, it appears that the tender offer price would represent a significant loss on their initial capital investment since the original purchase price per share was $25.

According to the offer, the REIT’s share repurchase program was oversubscribed last year. Repurchases are only processed semiannually and 607,498 shares were not repurchased last year.

Additionally, the company recently announced an estimated NAV of $19.02 per share which is 24% lower than the initial offering price of $25, and the annual distribution was cut by 30% in 2017.

Are non-traded REITs a suitable investment for you?

real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs are complex and high risk investments that are really only suitable for sophisticated investors.

It is the duty of the brokerage firm 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.  Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

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.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments.  They must ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.

If you suffered losses investing 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.

 

 

 

 

 

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