Securities Investigation – CV MC REIT – Carter Validus Mission Critical REIT
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended high risk non traded REITs such as Carter Validus Mission Critical REIT to investors.
On August 13, 2018, Carter Validus Mission Critical REIT, Inc. – CV MC REIT – announced that it had entered into a modification of a credit agreement on its revolving credit facility with KeyBank National Association, according to SEC filings.
The modifications reportedly reduced the tangible net worth base amount of the REIT to $475 million, from $600 million, and limited distributions to $0.106 per quarter, and limiting future distributions to 95% of annualized funds from operations.
According to reports, the modifications effectively limit CV MC REIT’s ability to over distribute from FFO, and reduce the amount of credit available from KeyBank. CV MC REIT noted the modifications are made in the wake of financial difficulties encountered with the REIT’s major tenant, Bay Area Regional Medical Center.
As we told you in May, Bay Area Regional Medical Center, LLC, which accounted for approximately 20.9% of Carter’s 2017 rental revenue, has closed its operations and filed for bankruptcy.
Non-traded REITs such as Carter Validus Mission Critical REIT are high-risk, complex, illiquid investments. They are typically only suitable for sophisticated investors.
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.
Free Consultation with a Securities Attorney
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.