January 22, 2021 Comments Off on Griffin-American Healthcare REIT III Liquidation Blog, Current Investigations

Griffin-American Healthcare REIT III Liquidation

Griffin-American Healthcare REIT III Liquidation, featured by top securities fraud attorneys, The White Law Group

Tender Offer Price – $5.41 per share – Griffin-American Healthcare REIT III

The White Law Group continues to investigate securities lawsuits involving the liability that broker dealers may have for improperly recommending non-traded REITs such as Griffin-American Healthcare REIT III Inc. to  investors.

According to new filings with the SEC this week, Griffin-American Healthcare REIT III Inc., a publicly registered non-traded real estate investment trust, is urging investors to reject an unsolicited tender offer from Comrit Investments 1, Limited Partnership.

Comrit apparently extended a tender offer to purchase up to 554,529 shares of the REIT’s common stock for $5.41 each, which is 42 percent lower than the most recent estimated net asset value of $9.40 per share as of June 30, 2019. 

According to a letter to shareholders, the board believes that the Comrit offer is “an opportunistic attempt” by Comrit to make a profit and will prevent stockholders from realizing “the long-term value of their investment in the company.” 

The board reportedly also notes that Comrit is making the offer to capitalize on the market disruption and fears caused by the coronavirus pandemic.

Investors are still waiting for a new NAV that is reportedly planned to be announced by March 31, 2021, which will take into account the impact of the COVID-19 pandemic on the value of its assets.

As we previously reported, the REIT suspended monthly distributions to shareholders on June 1, 2020 and suspended its distribution reinvestment plan and share repurchase plan, citing the effects of the COVID-19 pandemic on the healthcare sector and its portfolio. In addition, the REIT’s advisor deferred half the asset management fee for six months beginning in June 2020.

Investors are still waiting for a new NAV that is reportedly planned to be announced by March 31, 2021, which will take into account the impact of the COVID-19 pandemic on the value of its assets.

Investigating Potential Securities Fraud Claims

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

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, in many cases, the high sales commission 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 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.

If you are concerned about investment losses in Griffin-American Healthcare REIT III and would like a free consultation with a securities attorney, please call The White Law Group at 888-647-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

 

 

 

 

 

 

 

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