January 20, 2017 Comments (0) Current Investigations

Carter Validus Mission Critical REIT II, Inc. Investment Losses

Dawn J. Bennett

Concerned about investment losses in Carter Validus Mission Critical REIT II?

Have you suffered investment losses in Carter Validus Mission Critical REIT II? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

SC Distributors (a/k/a Strategic Capital) is a leading provider of select alternative investments to financial advisors and their clients, according to their website.

SC Distributors often raises money for investments through Reg D private placement offerings like the company did for Carter Validus Mission Critical REIT II.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

Carter Validus Mission Critical REIT II is a non-traded, publicly registered REIT that intends to employ a long-term, net lease strategy in order to help mitigate risk, provide greater certainty of rental income and maximize value for fund shareholders, according to their website.

Latest News on Carter Validus Mission Critical REIT II

On January 18, Carter Validus Mission Critical REIT II, Inc. filed supplementary articles to CV MC REIT’s second articles of amendment and restatement.  The supplementary articles reclassify 50,000,000 authorized and unissued shares of CV MV REIT’s class A shares as 100,000,000 shares of class I common stock.

The Trouble with Alternative Investment Products

The trouble with alternative investment products, like Carter Validus Mission Critical REIT II, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling private placements like Carter Validus Mission Critical REIT II.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

Reg D private placements are also known for high sales commissions and due diligence fees. Brokers have an enormous incentive to push these products to unsuspecting investors who do not fully understand the risks. Sometimes brokers misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

Free Consultation

Please contact The White Law Group at 1-888-637-5510 for a free consultation, to determine whether you may be able to recover investment losses incurred as a result of your purchase of Carter Validus Mission Critical REIT II or another SC Distributors’ private placement investment.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.