Concerned about investment losses in Benefit Street Partners Realty Trust?
The White Law Group is investigating potential securities fraud claims involving broker-dealers' improper recommendation that some investors purchase REITs like Benefit Street Partners Realty Trust.
Benefit Street Partners Realty Trust is a publicly registered non-traded real estate investment trust formerly known as Realty Finance Trust. The REIT appointed Benefit Street Partners as its new advisor at the end of September 2016, replacing AR Global Investments - formerly AR Capital.
Benefit Street Partners Realty Trust focuses on commercial real estate debt investments secured by income-producing properties and targets loans and securities - diversified by duration, geographic location, property type, ownership, and tenancy.
MacKenzie Realty Capital Inc., a non-traded business development company, has offered to purchase up to 500,000 shares of Benefit Street Partners Realty Trust common stock for $12.05 per share, according to a filing with the Securities and Exchange Commission. Unless extended, the tender offer, which constitutes 1.58 percent of the outstanding shares, will expire on April 28th.
This is sad news for investors as the original purchase price per share was $25.
The offer price represents a 40 percent discount to the most recent NAV per share that was approved by the board in November 2016.
Benefit Street Partners Realty Trust sent a letter to stockholders recommending they reject the tender offer, stating that it is "substantially below the estimated net asset value per share of $20.05."
REITs are 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.
They must 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 likely only suitable for wealthy and/or sophisticated investors.
If you are concerned about investment losses in Benefit Street Partners Realty Trust and would like a free consultation with a securities attorney, please call The White Law Group at 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 please visit us on the web at http://www.whitesecuritieslaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.