Concerned about your investment in Steadfast Apartment REIT?
Are you concerned about your investment in Steadfast Apartment REIT? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Steadfast Apartment REIT, a publicly listed non-traded REIT, invests in “multifamily properties” throughout the United States. The REIT closed its public offering in March 2016 and has reportedly raised $788 million in investor equity, as of December 31, 2018.
According to filings with the SEC, Comrit Investments I, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 337,268 shares of Steadfast Apartment REIT Inc.’s common stock at a price of $11.86 per share in cash. The offer expires on March 28, 2019.
Unfortunately for investors, the tender offer price is approximately 25% less than the most recent net asset value (NAV) per share of $15.84, as of December 31, 2018.
Although Steadfast currently offers a share repurchase program at 93 percent of the most recent estimated NAV per share, the annual limit on the number of shares repurchased under the plan during any calendar year is 5 percent of the average number of shares outstanding during the prior calendar year, and a $2 million limit on shares that may be repurchased during any quarter.
This could be a problem for investors if they need to sell their shares.
Lack of Liquidity – A Risk of Non-Traded REITs
Investors looking to sell alternative investments, like Steadfast Apartment REIT, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended Steadfast Apartment REIT and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. 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.
For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.
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.
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