Black Creek Industrial REIT IV Reduces NAV

Black Creek Industrial REIT IV Reduces NAV

The White Law Group is investigating potential securities claims involving FINRA registered broker dealers who may have unsuitably recommended high risk non-traded REITs such as Black Creek Industrial REIT IV to investors.

Black Creek Industrial REIT IV Inc., an externally managed real estate investment trust, acquires and operates distribution warehouses and other real estate properties, according to its website.

The REIT has recently announced a lower net asset value (NAV) for its Class T, Class W, and Class I common stock, as of May 31, 2020. The shares are currently valued at 10.0597 per share, compared to $10.0629 per share in April and were originally priced at $10.00 each.

The company notes, in filings with the SEC, that the “global pandemic and resulting shutdown of large parts of the U.S. economy” has increased investment risk in many asset classes including real estate.

The company also notes that lines of credit, term loan and mortgage notes increased from $356.8 million to $464.3 million, while other liabilities increased from $16.2 million in April to $18.4 million in May 2020, according to SEC filings.

Is a Non-traded REIT a Suitable Investment for you?

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling  REITs – as high as 15%.  Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like Black Creek Industrial REIT IV often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

If you suffered losses investing in Black Creek Industrial REIT IV 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 Franklin, Tennessee.

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