Concerned about your investment in Strategic Storage Growth Trust III?
Are you concerned about your investment in Strategic Storage Growth Trust III? If so, The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Strategic Storage Growth Trust III, sponsored by SmartStop Self Storage REIT, has elected to qualify as a REIT for federal income tax purposes. Its primary investment strategy focuses on growth-oriented self-storage facilities and related real estate investments in the United States and Canada. The company filed a Form D to raise capital from investors in 2022.
The Risks of Reg D Private Placement Investments- Strategic Storage Growth Trust III
Reg D private placements are typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The trouble with Reg D private placements is that they involve a high degree of risk and are typically sold as unregistered securities. These investments lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Another problem is the lack of liquidity. Investors are often forced to hold on to the investment long term until some type of liquidity event occurs. Sometimes there are secondary markets for these investments, but often the prices offered are much lower than the NAV.
According to Central Trade and Transfer, a secondary market for non-traded alternative investments, shares of Strategic Storage Growth Trust III are currently offered to sell for $8.50 per share.
Broker Due Diligence
The White Law Group is investigating the liability that brokerage firms may have for improperly selling Strategic Storage Growth Trust III to investors.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Unfortunately, sometimes financial advisors may misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be found liable for investment losses in a FINRA arbitration claim.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Strategic Storage Growth Trust III , please contact The White Law Group at 1-888-637-5510 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. The firm represents investors throughout the country in claims against their brokerage firm.
Last modified: July 25, 2024
