“Liquidation Opportunity” for CIM Real Estate Finance Trust, Inc.
According to a letter to investors on February 11, 2021, Comrit Investments 1 LP extended a tender offer to purchase up to 15,550, 000 shares of CIM Real Estate Finance Trust Inc. for $4.50 per share in cash.
CIM Real Estate Finance Trust Inc, formerly known as Cole Credit Property Trust IV (CCPT IV) is a publicly registered non-traded REIT primarily invested in net lease assets and commercial real estate debt.
In December 2020, the company merged with two other affiliated CIM Group non- traded REITs, Cole Office & Industrial REIT, Inc. and Cole Credit Property Trust V, Inc. CIM Real Estate Finance Trust reportedly acquired the two REITs in separate stock-for-stock, tax-free merger transactions.
According to Comrit’s letter, the REIT does not have a fixed date or method for providing shareholders with liquidity and its share redemption plan has been suspended since August 30, 2020 in connection with its mergers with Cole Office & Industrial REIT (CCIT III), Inc. and Cole Credit Property Trust V, Inc., Cole Office & Industrial REIT, Cole Credit Property Trust V,
Decline in Net Asset Value
According to filings with the SEC, the REIT’s NAV continues to decline. The board has reportedly declared a $7.31 net asset value per share for the company’s common stock as of June 30, 2020 and shares originally sold for $10.00 each.
Filing a Complaint against your Brokerage Firm
The trouble with non-traded REITs is that they are complex and inherently risky products.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
If you are concerned about your investment losses in CIM Real Estate Finance Trust, or another CIM Group offering, please call the securities attorneys of The White Law Group at (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.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.