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January 23, 2018 Comments (0) Blog, Current Investigations

GTJ REIT Inc. – Mackenzie Extends Tender offer – $6.50/share

GTJ REIT

Investigating Potential Claims – GTJ REIT Inc.

Do you have concerns regarding your investment in GTJ REIT Inc.? If so, the securities attorneys at The White Law Group may be able to help you.

GTJ REIT, Inc. operates as a real estate investment trust (REIT) in the United States. The REIT engages in the acquisition, ownership, and management of commercial real estate properties primarily located in New York City. GTJ REIT has elected to be taxed as a REIT under the Internal Revenue Code. As a REIT, the company would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders.

The White Law Group is investigating potential claims involving FINRA registered brokerage firms may have for improperly selling high-risk REITs, like GTJ REIT, to their clients.

Non-traded REITs like GTJ REIT often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer. If they are able to find one can suffer significant losses on the sale. On Monday, MacKenzie Realty Capital, Inc. extended a tender off for GTJ REIT of $6.50 per Share. This appears to be a significant loss for investors.

According to the tender offer, GTJ REIT “has an infinite life, and it has said it has no plans to list its shares.  The Company now has a share redemption program (as of January 2018), but in its very first period (payment in December) it was oversubscribed so shares were purchased pro-rata (at 90% of estimated value). Redemptions will not be made again until June 2018 and there can be no assurance that you will be able to redeem all of your shares at that time.”

Is a REIT a suitable investment for you?

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, the high sales commissions may provide some brokers with enough incentive to make unsuitable investment recommendations.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must 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 are concerned about your investment in GTJ REIT or another real estate investment trust, The White Law Group may be able to help you recover your losses through FINRA Arbitration.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

To speak with a securities attorney regarding your investment in GTJ REIT, please call The White Law Group at (888) 637-5510 for a free consultation.

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.

For more information on The White Law Group, visit the firm’s website at https://www.whitesecuritieslaw.com.