Tender Offer Price may Suggest Losses for Cole Office & Industrial REIT Shareholders.

Concerned about investment losses in Cole Office & Industrial REIT (CCIT II)?

Have you suffered losses investing in Cole Office & Industrial REIT? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

According to its website, Cole Office & Industrial REIT (CCIT II)  is a public, non-listed REIT that invests primarily in single-tenant, income-producing, necessity office and industrial properties that are leased to creditworthy tenants under long-term leases. CIM defines necessity corporate properties as those that are essential to the day-to-day operations of a company.

On May 8, 2020, Mackenzie Realty Capital extended an offer to purchase shares of Class A and Class T common stock in Cole Office & Industrial REIT, Inc. for $4.50 per Share, according to a letter to investors. 

According to Mackenzie, the share redemption program is oversubscribed. In its most recent annual report, the REIT reported that approximately 11.9 million shares submitted for redemption went unfulfilled. 

Further, the letter states that the REIT’s board “would defer making a determination as to the amount and timing of distributions for the second quarter until the disruption of COVID-19 to the company’s operations could be ascertained.”

The original offering price of  the REIT was $10 per share. As of December 31, 2019, the company’s estimated Per Share Net Asset Value is $10.06 per share.

The Trouble with Non-Traded REITs

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like CCIT II, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.

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. Recommendations should be in line with 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.

If you have invested in CCIT 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.

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 and Vero Beach, Florida.

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