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Benefit Street Partners Realty Trust Securities Investigation

Benefit Street Partners Realty Trust

Investigating Potential Claims Involving 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 REIT 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.

The REIT began operations in November 2012 and raised $786 million in investor equity prior to closing the offering in January 2016. As of September 30, 2016, the company’s portfolio consisted of 73 loans and 7 CMBS investments.

Risks of REITs

REITs are complex and high risk investments that are really only suitable for sophisticated investors.

real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, including office buildings, warehouses, hospitals, shopping centers, hotels and even timberlands. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

Secondary Market Offer

According to CFX Trading, a secondary market for private placements, shares of Benefit Street Partners Realty Trust are currently listed for $12.99/share. This is unfortunate news for investors as the original purchase price per share was $25.

Additionally, the REIT stated that January 2017 it paid an average of $19.23 for nearly 473,806 shares repurchased from its stockholders.

Is this investment suitable for you?

Brokerage firms have a responsibility 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.  Such investments are likely only suitable for wealthy and/or sophisticated investors, due to the current risk of devaluation.

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 firm, visit https://whitesecuritieslaw.com.


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