If you invested in TNP Strategic Retail Trust or another Thompson National Properties investment, the following information may be of assistance to you.
According to their website, TNP Strategic Retail Trust primarily invests in income producing retail properties throughout the Western United States, and in real estate assets such as mortgages, mezzanine, bridge, and other commercial real estate loans.
The TNP Strategic Retail Trust is organized as an UPREIT and operates through an operating partnership, TNP Strategic Retail Operating Partnership, LP (the term UPREIT is short for Umbrella Partnership Real Estate Investment Trust).
According to TNP Strategic Retail Trust's website, the "UPREIT structure gives us an advantage in acquiring desired properties from persons who may not otherwise sell their properties because of unfavorable tax results."
In a recent SEC Filing, the TNP Strategic Retail Trust announced that they "may not be in compliance with certain provisions related to two secured loans totaling approximately $67.2 million." As a result of the loan default the redemption program was suspended, and distributions were reduced to quarterly payments as opposed to monthly payments.
In February 2013, the REIT announced that 88,966,650.25 common shares of the REIT were unsold.
The White Law Group is investigating potential FINRA arbitration claims against the brokerage firms that recommending Thompson National Properties investments. Despite the numerous risks, it appears that many broker-dealers may have misrepresented TNP Strategic Retail Trust to their clients.
Broker-dealers have a fiduciary duty to perform adequate due diligence on any investment. The Financial Industry Regulator Authority (FINRA) requires that broker-dealer fully disclose all the risk in any investment when making recommendations, and ensure that the investment is suitable given their clients age, risk tolerance, financial objectives, net worth, and investment experience.
For more information on the firm's investigation, visit: http://www.whitesecuritieslaw.com/2013/03/18/update-on-securities-fraud-investigation-involving-tnp-strategic-retail-trust-and-thompson-national-properties-investments/
To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.