Griffin Capital Essential Asset REIT Tender Offer Price $4.08 per share may Suggest Losses for Investors
The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for recommending Griffin Capital Essential Asset REIT to investors.
Griffin Capital Essential Asset REIT is a non-traded REIT with a portfolio consisting primarily of single tenant business essential properties throughout the United States.
The company recently completed a stock-for-stock merger transaction with Cole Office & Industrial REIT Inc. and the portfolio now consists of 123 properties with a total asset value of $5.8 billion.
According to a letter to investors on April 9, the REIT’s board is urging shareholders to ignore a recent unsolicited tender offer from CMG Partners, LLC and its affiliates. The tender offer, for 400,000 shares of Class E stock, is priced at $4.08 per share. According to the board, CMG’s offer “would not be in the best interest” of the REIT’s Class E stockholders.
According to the letter, the current net asset value of the Class E Common Stock is $8.97 per share, approximately 54% higher than the tender offer price. The original offering price of the shares was $10.00 per share.
The Board notes that “it is possible that in the future additional liquidity will be made available to you, though we can make no assurances as to whether that will happen, or the timing or terms of any such liquidity and whether any such liquidity will be available at a price in excess of the CMG Offer price.”
Potential Lawsuits to Recover Financial Losses
The trouble with non-traded REITs is that they are complex and inherently risky products.
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.
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.
If you have suffered losses investing in Griffin Capital Essential Asset REIT, please contact 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 firm, visit www.WhiteSecuritiesLaw.com.