Securities Investigation Involving The Parking REIT
The Parking REIT Inc. is a publicly registered non-traded real estate investment trust that was formerly known as MVP REIT II. The REIT recently closed its merger with affiliated MVP REIT Inc. The combined company is now known as The Parking REIT Inc.
The transaction was approved by MVP REIT I’s stockholders at the end of September 2017.
The Parking REIT invests primarily in parking lots and facilities in the United States and Canada and is managed by MVP Realty Advisors LLC.
MVP I shareholders received 0.365 shares of MVP II common stock for each share of MVP I common stock they owned. Fractional shares were paid in cash. According to SEC filings, MVP I original offering price was $9/share. MVP II’s original offering price was $25/share.
Mackenzie Realty Capital is currently offering to purchase shares of The Parking REIT for just $12.17/share. This appears to be at a significant loss for investors.
According to the tender offer from Mackenzie on March 5, “While management intends to list the Parking REIT’s shares for trading on a national securities exchange, there can be no guarantee that such a listing will occur at all, or in a timely manner.”
Further, as of September 30, 2017 (also according to Mackenzie), there were no shares eligible for redemption other than in connection with a death or disability of a stockholder.
Non-traded REITs, like The Parking REIT, MVP I and MVP II, are often complex and high risk investments that are really only suitable for sophisticated investors. It is the duty of the brokerage firm to perform due diligence on any investment and to ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience.
Given the current risk of devaluation of these REITs, such investments are only suitable for wealthy and/or sophisticated investors who can properly evaluate the risks of the investment and afford substantial losses.
If you have suffered losses investing in The Parking REIT, or MVP REIT I and II, and would like a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on The White Law Group, visit www.whitesecuritieslaw.com.