Steadfast Apartment REIT Secondary Price may Suggest Losses for Investors
The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for recommending Steadfast Apartment REIT to investors.
Steadfast Apartment REIT, recently acquired Steadfast Income REIT and Steadfast Apartment REIT III to form a single REIT focused on moderate-income apartments that together will own approximately $3.3 billion in real estate assets.
Unfortunately for those investors who may be looking to liquidate, the redemption plan is limited.
During the year ended December 31, 2020, the Company repurchased a total of 767,143 shares with a total repurchase value of $10,907,826 and received requests for repurchases of 5,450,634 shares with a total repurchase value of $77,180,979, according to a Form 10-K filing on March 12, 2021.
As of December 31, 2020, the share repurchase price was $14.16 per share, which represented 93% of the then- most recently published estimated value per share of $15.23 per share.
According to Central Trade and Transfer, a secondary market place for non-traded REITs, shares of Steadfast Apartment REIT were sold in April 2021 for just $9.85 per share, which may indicate financial losses for investors.
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 Steadfast Apartment REIT, 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.