“Liquidation Opportunity” for CIM Real Estate Finance Trust, Inc.
The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended CIM Real Estate Finance Trust (formerly Cole Credit Property Trust IV (CCPT IV) to investors.
According to a letter to shareholders on January 31, 2022, Mackenzie Capital Management is extending an offer to purchase shares of CIM Real Estate Finance Trust, Inc for just $3.15 per share.
CIM Real Estate Finance Trust Inc, formerly known as Cole Credit Property Trust IV (CCPT IV) is a publicly registered non-traded REIT invested in net lease and multi-tenant retail assets as well as real estate loans and other credit investments.
According to the letter, although the REIT has announced intentions of a publicly listing its shares in 2022, there is “no guarantee that it will take place this year or at all.” The letter also notes that the share redemption program is oversubscribed, and failed to redeem approximately 59 million of the shares submitted for redemption as of September 30, 2021.
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.
CIM Real Estate Finance Trust recently announced plans to acquire CIM Income NAV Inc., an affiliated non-traded REIT, in a stock-for-stock merger transaction to create a “commercial credit-focused REIT” with approximately $6 billion in total enterprise value and $3.2 billion equity value, if approved by shareholders.
According to the filings with the SEC, 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.
Net Asset Value Continues to Decline
According to filings with the SEC, the REIT’s NAV continues to decline. The board has reportedly declared a $7.20 net asset value per share for the company’s common stock as of March 31, 2022 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 and Seattle, Washington.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.
To learn more about the firm’s investigation, please see: