SmartStop Self Storage REIT -Tender offer price could mean losses for investors.
Are you concerned about your investment in SmartStop Self Storage REIT? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
According to SEC filings on August 28, 2019, the REIT reportedly announced the suspension of the share redemption program (“SRP”) in order to maintain “operating flexibility, continue to invest in future business initiatives, and prepare for strategic alternatives.”
The board reportedly approved the suspension of the SRP effective as of September 27, 2019, except with respect to redemption requests made in connection with the death or disability of a stockholder, as outlined in the Registrant’s SRP.
Third Party Tender Offer
On September 30, 2019, Mackenzie Realty Capital reportedly launched a third party tender offer to purchase 1,000,000 Class A shares for $5.51/share.
Mackenzie reportedly urges investors to sell their shares at this reduced price since “there can be no guarantee as to when a liquidity event will occur or that you will receive more than the amount we are offering to pay today.”
As of March 31, 2019, the company’s estimated Per Share Net Asset Value is $10.66/share, according to SEC filings.
The Trouble with Non-Traded REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like SmartStop Self Storage REIT, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these 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. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have invested in SmartStop Self Storage REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
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.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.