October 6, 2021 Comments Off on Griffin Realty Trust – Third Party Tender Offer  Blog, Current Investigations

Griffin Realty Trust – Third Party Tender Offer 

Griffin Realty Trust Makes No Recommendation on Third Party Tender Offer, featured by top securities fraud attorneys, The White Law Group

Griffin Realty Trust Inc. Suspends Redemptions & Publishing NAV 

Concerned about your investment in Griffin Realty Trust inc. (fka Griffin Capital Essential Asset REIT?)   

The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for recommending Griffin Realty Trus Inc. to investors.  

Griffin Realty Trust (formerly known as 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. 

On October 1, 2021, Griffin Realty Trust, Inc. reported it is suspending its share redemption program (SRP) beginning with the next cycle commencing fourth quarter 2021. It has also suspended its distribution reinvestment plan (DRP), and the current monthly distribution for September 2021 is expected to be paid on or about October 11. 

The REIT also noted that it has temporarily suspended its quarterly publishing of net asset value per share of common stock due to certain “strategic initiatives” that the REIT currently is pursuing, according to filings with the SEC.  

The REIT notes it will resume publishing a quarterly net asset value per share of common stock when it “determines it is appropriate and no later than one year from its most recent net asset value publication.” 

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. 

While the REIT’s board urged shareholders to ignore an unsolicited tender offer on April 9, the board stated it wouldn’t make any recommendation related to whether shareholders should accept or reject a second third-party tender offer from Comrit Investments I, LP on August 27, 2021. 

Comrit reportedly offered to purchase up to $4 million in outstanding Class AA common stock at a price of $6.91 per share.  The original offering price of the shares was $10.00 per share. As of June 30,2021, the estimated Net Asset Value (NAV) per share was $9.04 per share. 

We reported about the previous tender offer in April 2021 that Griffin’s board recommended shareholders reject from CMG Partners. The CMG offer was for $4.08 per share, at a time when the REIT’s shares had an estimated NAV per share of $8.97 as of December 31, 2020.  

The Board has previously noted 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 Realty Trust, Inc., 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. 

  

  

 

 

 

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