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New Tender Offer Price For Parking REIT Suggests Big Losses For Investors

Feb. 23, 2021 12:34 PM ET
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  • Mackenzie Realty Capital Offers Parking REIT Shareholders $5.50 per Share Parking REIT – Update on Investigation.

Parking REIT – Update on Investigation

The White Law Group continues to investigate securities claims involving broker dealers who may have unsuitably recommended the Parking REIT to investors.

The Parking REIT, a non-traded REIT formed in December 2017 by the merger of MVP REIT and MVP REIT II, invests primarily in parking lots and garages in the United States.

Delay in NAV Calculation - Declining Tender Offer Price  - $5.50 per share

Mackenzie Realty Capital has just launched another tender offer to purchase shares of the REIT for $5.50 per share, a deep decline from the previous tender offer price in March 2018 of $12.17 per share.

The original purchase price of the Parking REIT was $25.00 per share. According to reports on May 22, 2020, the REIT has delayed calculating its net asset value per share, noting financial impacts from the COVID-19 pandemic.

In April 2020, the company suspended distributions paid on its Series A and Series 1 Preferred Stock, reportedly due to economic turmoil caused by the COVID-19 global pandemic. The company suspended distributions and share repurchases for holders of its common stock in 2018.

It has been a continual string of bad news for shareholders since 2016 when it first announced that it would re-evaluate pursuing a listing on the NASDAQ Global Market, and consider other stockholder liquidity options.

In August 2019, the company withdrew its registration statement that was filed on October 5, 2018 to raise up to $100 million in an initial public offering, but said that it “believes the withdrawal to be consistent with the public interest and the protection of investors.”

The REIT reportedly planned to use proceeds from the IPO to repay approximately $9.1 million in debt, and for general corporate and working capital purposes.

Prior to that, in March 2019, a stockholder reportedly filed a class action lawsuit in a Nevada federal court in regards to the proxy statements filed with the SEC to obtain shareholder approval for the merger with MVP REIT.

Recovery of Investment Losses

Non-traded REITs are complex, high risk investments that are typically 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 likely 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, 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. For more information on The White Law Group, visit www.whitesecuritieslaw.com.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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