What Happened to the Parking REIT?
According to a letter to investors on November 12, 2021, The Parking REIT changed its name to Mobile Infrastructure Corporation. It is an internally-managed, publicly registered, non-listed company that invests primarily in parking lots and garages in the United States. According to the letter, Mobile Infrastructure Corporation is not a REIT as it currently does not qualify as such. REIT status was lost during the pandemic when leases were converted to management agreements by the prior management team. The Company notes in the letter that it is attempting to reassert REIT status.
The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended the Parking REIT (now known as Mobile Infrastructure Corp.) to investors.
Company Sells Majority Stake after Lawsuits
Amidst a myriad of problems for the Parking REIT including 3 pending class action lawsuits, and allegations of fraud against one of the company’s executives, the company agreed in January to sell a majority stake to an affiliate of Bombe Asset Management LLC, a Cincinnati-based alternative asset management firm, according to an 8-K filing.
Color Up, LLC offered to tender up to 900,506 of the outstanding shares of common stock of The Parking REIT, Inc. at a price per share of $11.75 per share on October 5, 2021. The other transactions contemplated by the Purchase Agreement closed on August 25, 2021 and included Color Up’s acquisition of 22.4% of the Company’s shares.
The company notes it has plans to take the $20 million equity capital investment to purchase two parking garages in Miami, FL and Denver, CO. At this time the company has no plans to pay a dividend to shareholders, according to the letter.
Disappointing Net Asset Value (NAV)
Mobile Infrastructure Corp. finally updated its net asset value (NAV) on January 14, 2021 to $11.75 per common share as of January 8, 2021, after reported delays due to the Covid-19 global pandemic. The last reported NAV as of May 15, 2019 was $25.10 per share, indicating significant losses for investors. Shares were originally sold for $25.00 each.
Update on May 12, 2022 – Secondary Sales Price $5.00 per share
According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of Mobile Infrastructure Corp. are currently listed to sell for just $5.00 per share, indicating big losses for investors.
Parking REIT Exec Charged with Fraud
As we previously reported, the Securities and Exchange Commission on July 30, charged an executive of the Parking REIT, and his wholly owned investment advisory firm, Vestin Mortgage LLC with fraud.
The executive allegedly funneled $29 million from Vestin Realty Mortgage I and Vestin Realty Mortgage II into The Parking REIT and then purportedly initiated “money-losing transactions in which the same six buildings were repeatedly re-sold”, all to allegedly benefit himself and The Parking REIT, according to the complaint.
Potential Lawsuits to Recover Financial Losses
Unfortunately, many investors are not fully aware of the problems and risks associated with alternative investments before purchasing them.
Alternative investments are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Alternative investments often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.
Free Consultation with a National Securities Attorney
The White Law Group is currently representing Mobile Infrastructure Corp. investors in claims against their brokerage firm. If you are concerned about your investment in the Parking REIT (now known as Mobile Infrastructure Corporation), the White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
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.
To learn more about the firm’s investigation, please see: