Concerned about your investment in Carter Validus Mission Critical REIT II?
Have you suffered investment losses in Carter Validus Mission Critical REIT II (CVMC 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.
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
Investigation – Carter Validus Mission Critical REIT II
To cash out its investors, Carter Validus is considering two separate transactions to divest its assets: one for its portfolio of data centers and one for its medical properties, according to Financial-Advisor Magazine.
Carter Validus is looking for buyers for its data center assets, valued at more than $1 billion, according to the company. It is also reviewing options, including a potential sale, for the remainder of the portfolio.
According to the sources, no deal is certain and asked not to be identified because the deliberations are confidential.
Healthcare real estate has been caught up in the same U.S. post-election tumult that has challenged the wider industry, as lawmakers debate healthcare reforms that could greatly alter many hospitals and medical facilities.
Update on April 12, 2019
According to reports today, Carter Validus Mission Critical REIT Inc. (CVMC REIT I) and Carter Validus Mission Critical REIT II Inc. have entered into a definitive agreement to merge in a stock and cash transaction, creating an entity valued at approximately $3.2 billion.
The transaction is expected to close in the second half of 2019, with the approval of CVMC REIT I stockholders.
The combined company will retain the name Carter Validus Mission Critical REIT II Inc. and will own 146 healthcare and data center properties in 33 states, totaling approximately 8.4 million square feet of space, according to reports.
Under the new agreement, CVMC REIT I stockholders will reportedly receive $1.00 per share in cash and 4681 shares of CVMC REIT II Class A common stock for each share of CVMC REIT I common stock owned.
CVMC REIT I declared an estimated net asset value of $5.33 per share, as of June 30, 2018, according to SEC filings. The company’s previously declared NAV per share was $9.26. Shares were originally sold for $10.00 each.
Update on April 23, 2019
Mackenzie Realty Capital has just extended an unsolicited tender offer to purchase shares of Carter Validus REIT for just $3.16/share.
According to Mackenzie, the merger is subject to closing conditions and “its consummation cannot be assured. Even if approved, however, there can be no guarantee that the merger will close in a timely manner, or at all, and does not provide full cash-out to Carter stockholders.”
Further, the repurchase program is now reportedly limited to requests in connection with the death, qualifying disability, or involuntary exigent circumstances of a stockholder. Also, Carter Validus II could be similarly limited, making it difficult for investors to sell any or all their shares in the repurchase program.
The Trouble with Non-traded REITs
Non-traded REITs are complicated and often risky investments which should only be sold to high-net worth and sophisticated investors.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk REITs, like Carter Validus Mission Critical REIT II, to their clients.
Notwithstanding the risks of investing in REITs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. Brokerage firms generally make between 7-10% for selling a REIT, which is far in excess of the typical commission for more traditional investment types.
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.
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 Carter Validus Mission Critical REIT I.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. 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.