June 14, 2019 Comments (0) Blog, Current Investigations

Phillips Edison Grocery Center REIT III | Investigation

Phillips Edison Grocery Center REIT III Investigation, Featured by Top Securities Fraud Attorneys, The White Law Group

Phillips Edison Grocery Center REIT III Suspends Offering

The White Law Group continues to investigate claims involving broker dealers who may have improperly recommended high risk non-traded REITs like Phillips Edison Grocery Center REIT III to investors.

Phillips Edison Grocery Center REIT III, co-sponsored by Phillips Edison & Company and Griffin Capital Company, is a real estate investment trust that seeks to invest primarily in grocery-anchored shopping centers.

According to SEC filings this week, the non-traded REIT has suspended the company’s public offering on June 14th pending a review of strategic alternatives.

The REIT has also reportedly suspended its distribution reinvestment plan and share repurchase program, and all future distributions will reportedly be received in cash.

Liquidity Problems

Investments such as Phillips Edison Grocery Center REIT III are illiquid and it can be difficult to find a buyer when the investor is ready to sell.

Additionally, non-traded REITs often have high commissions, which could be a motivating factor for unscrupulous financial advisors to sell non-traded REITs.

The total commissions and expenses make it difficult for the REIT to perform in line with the market. Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment.

Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

Free Consultation

If you are concerned about your investment in Phillips Edison Grocery Center REIT III and would like to discuss your recovery options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

Click here for your FREE consultation.

 

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