January 23, 2019 Comments (0) Blog, Current Investigations

“CV REIT” Carter Validus Mission Critical REIT


Concerned about your investment in “CV REIT”?

The White Law Group continues to investigate potential securities fraud claims involving broker dealers who may have improperly recommended high risk non-traded REITs such as CV REIT to investors.

According to recent filings with the Securities and Exchange Commission (SEC), CV REIT determined that it reached the share limitation for the 2019 first quarter Repurchase Date, and that it will not be able to fully process all repurchase requests for such Repurchase Date. This could be bad news for investors who are ready to sell their shares.

The problem with non-traded REITs such as CV REIT, is they are typically high-risk, complex and illiquid. Non-traded REITs do not trade on a stock exchange, and often when the investors are ready to sell, they cannot find a buyer.  A secondary market may be an option for some investors, though they may find they are selling their shares at a loss.

Recently shares of CV REIT were listed on Central Trade & Transfer, a secondary market for non- traded REITs and private placements, for just $4.25/share. The original offering price was $10/share.

More Bad News for Investors

Aside from the usual risks of non-traded REITs, CV REIT has been faced with some other issues that could signify bad news for investors. 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.

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. Brokerage 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 CV REIT please call The White Law Group at (888) 637-5510 for a free consultation with a securities attorney.

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 and its representation of investors, please visit www.whitesecuritieslaw.com.