StratCap Digital Infrastructure REIT: Investigating Claims
StratCap Digital Infrastructure REIT Inc., a non-listed, publicly registered perpetual-life REIT focused on digital infrastructure, reported a net asset value (NAV) of $122.31 million as of March 31, 2025, marking a 1.18% decrease from the previous month, according to Alt Wire. The NAV per share also reportedly declined 0.94% to $10.2317.
Formerly known as Strategic Wireless Infrastructure Fund II, the REIT reportedly converted from a private offering earlier in 2025. It invests in data centers, cell towers, wireless easements, and fiber networks.
As of March 31, it owned 41 towers, two data centers, and 61 tenant leases, plus a 51% interest in a joint venture with DataCom LP covering 139 towers, two rooftops, and 204 leases. The data centers were fully leased, while towers and rooftops were 35% occupied.
The REIT reported total assets of $153.57 million and is conducting a continuous public offering of up to $575 million in shares, but no shares had been sold as of April 21, 2025, according to AltWire.
The original private fund, launched in July 2021, raised about $117 million through the sale of various share classes before the public transition.
Risks of Investing in Non-Traded REITs
Non-traded REITs are high risk, complex investments. You should be aware of the following:
As an investor, you should know that non-traded REITs often rely on borrowing to finance property acquisitions and improvements. When interest rates rise, borrowing costs increase, potentially squeezing the REIT’s profitability and its ability to distribute dividends to investors. This situation might make the investment less appealing, especially in a rising interest rate environment.
Additionally, keep in mind the issue of liquidity. Non-traded REITs typically have less liquidity compared to publicly traded REITs. If you invest in non-traded REITs, you might find it challenging to sell your shares quickly, and you could face restrictions on when and how you can exit your investment. In uncertain market conditions or when the investment outlook is less favorable, this lack of liquidity can become a risk, as you may not be able to access your capital easily.
Lastly, consider the issue of valuation uncertainty. Non-traded REITs are known for their opaque valuation practices. As an investor, it can be challenging to assess the true value of your investment, particularly during turbulent times.
Broker Due Diligence
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.
FINRA Lawsuits to Recover Investment Losses
The White Law Group continues to investigate potential claims against the broker dealers that sold high risk non-traded REITs to investors. The high commission structure of these products leads to the possibility that unscrupulous financial advisors will push these products unsuitably to maximize their own commissions.
If you have suffered losses with StratCap Digital Infrastructure REIT Inc. (formerly Strategic Wireless Infrastructure Fund II) and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
About The White Law Group
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
With more than 30 years of experience in securities law, The White Law Group has the knowledge and expertise to help investors recover losses resulting from securities fraud.
Last modified: April 22, 2025
