“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.
On October 26, Comrit Investments 1 LP completed its unsolicited tender offer for shares of CIM Real Estate Finance Trust. According to SEC filings , Comrit Investments 1 LP extended a tender offer to purchase up to 18.3 million shares of CIM Real Estate Finance Trust Inc., for $5.01 per share in cash in August of last year. Comrit reportedly purchased nearly 1.1 million shares of the REIT, which has a net asset value per share of $7.20 as of March 31, 2021. Comrit now reportedly owns a total of approximately 2.3 million shares, or 0.6 percent of the outstanding.
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.
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, 2021 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: