May 14, 2018 Comments (0) Blog, Current Investigations

Carter Validus Mission Critical REIT – Third Party Tender Offer

Carter Validus Mission Critical REIT

Recover Investment Losses in Carter Validus Mission Critical REIT

Have you suffered losses investing in Carter Validus Mission Critical REIT? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the broker-dealer who sold you the investment.

Carter Validus Mission Critical REIT Inc. is a publicly registered non-traded real estate investment trust (REIT) that invests in net leased data center and healthcare assets.

According to recent filings with the SEC, the REIT’s major tenant is bankrupt. Bay Area Regional Medical Center, LLC, which accounted for approximately 20.9% of Carter’s 2017 rental revenue, is closing its operations and filing for bankruptcy. This tenant exposure may significantly reduce the company’s last reported net asset value if the tenant is not replaced promptly.

Mackenzie Realty Capital has just extended a third party tender off to purchase shares of Carter Validus Mission Critical REIT for just $3.36/Share. The original offering price was $10.00/share.

According to the offer, the REIT’s Share Repurchase Program is suspended, effective May 2018, after it had reached its 5% annual limitation on repurchases. The board of directors will not reinstate the program during the rest of 2018.

Investigating Potential Claims

The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended high risk non-traded REITs like Carter Validus Mission Critical REIT to investors.

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

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%.  Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like Carter Validus Mission Critical REIT often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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.

If you suffered losses investing in Carter Validus Mission Critical REIT 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 White Law Group, visit www.whitesecuritieslaw.com.