May 8, 2018 Comments (0) Blog, Current Investigations

Phillips Edison Grocery Center REIT II – Third Party Tender Offer

Phillips Edison Grocery Center REIT II

Recovery of Investment losses – Phillips Edison Grocery Center REIT II

Have you suffered investment losses in Phillips Edison Grocery Center REIT II? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA Arbitration.

Phillips Edison Grocery Center REIT II, Inc. is a publicly registered non-traded real estate investment trust which seeks to invest primarily in grocery-anchored neighborhood shopping centers, according to its website.

Non-traded REITs like Phillips Edison Grocery Center REIT II Inc. often lack liquidity. Investors looking to sell often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Mackenzie Realty Capital has just extended a tender offer to purchase shares of the REIT for $14.89/share. Unfortunately for many investors, it appears that tender offer price would represent a significant loss on their initial capital investment.

According to Mackenzie’s offer , the REIT’s Share Repurchase Program is oversubscribed. About 573,000 shares were not redeemed last year. The Company stated that last year “repurchase requests surpassed the funding limits under the SRP … Due to the program’s funding limits, the funds available for repurchases in 2018 are expected to be insufficient to meet all requests.”  As a result, it could be difficult for investors to sell their Shares.

Risks of Non-Traded REITs

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Phillips Edison Grocery Center REIT II. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

REITs are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex. They are often better suited for sophisticated and institutional investors.

Unfortunately, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations. Brokers earn as much as 15% commission for selling REITs.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendations of high-risk non-traded REITs, like Phillips Edison Grocery Center REIT II Inc.

If you suffered losses investing in Phillips Edison Grocery Center REIT II, Inc. you may be able to recover your losses. For 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 White Law Group, visit www.whitesecuritieslaw.com.