Investigating Potential Claims involving Griffin Realty Trust Inc.
The White Law Group continues to investigate potential securities claims involving broker dealers who may have unsuitably recommended Griffin Realty Trust (formerly known as Griffin Capital Essential Asset REIT, Inc.) to its clients.
On August 27, 2021, Griffin Realty Trust, Inc. reportedly announced that its board of directors was not making any recommendation related to whether Class AA shareholders should accept or reject a third-party tender offer from Comrit Investments I, LP. Comrit recently launched a third-party tender offer to purchase up to $4 million in outstanding Class AA common stock at a price of $6.91 per share. According to the REIT, its current estimated Net Asset Value (NAV) per share is $9.04 as of June 30, 2021.
The company stated that currently, Class AA Common Stockholders may only redeem their shares at NAV through the Griffin Realty Trust Share Redemption Plan (SRP), but that redemptions under the SRP are “very limited.”
Griffin’s Board noted that in light of the current and ongoing illiquidity related to its shares that it will “adopt a neutral stance as it relates to all tender offers.”
We reported about a 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.
Non-Traded REITs are High-Risk Investments
Non-traded REITs are complex and high-risk investments for several reasons. First, the investment itself is unsuitably risky because it is dependent on the overall health of specific sectors of the economy.
Second, non-traded REITs are generally illiquid, severely limiting the investor’s ability to access funds should the need arise.
Further, they are often less regulated than other types of investments (i.e., mutual funds, stocks, etc.) and generally pay a higher sales commissions and fees than these other products.
If you suffered losses investing in a Griffin Realty Trust or another REIT you may be able to recover your losses through FINRA arbitration. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
For more information on the firm’s investigation, see Griffin Realty Trust (Formerly Griffin Capital Essential Asset REIT) Lawsuits Investigation
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.
The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.