Griffin Realty Trust Inc. (formerly Griffin Capital Essential Asset REIT) Tender Offer Price $4.08 per share may Suggest Losses for Investors

The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for recommending Griffin Realty Trust (formerly known as Griffin Capital Essential Asset REIT) to investors. 

Griffin Realty Trust is a non-traded REIT with a portfolio consisting primarily of single tenant business essential properties throughout the United States. 

The company recently completed a stock-for-stock merger transaction with Cole Office & Industrial REIT Inc. and the portfolio now consists of 123 properties with a total asset value of $5.8 billion.

According to a letter to investors on April 9, the REIT’s board is urging shareholders to ignore a recent unsolicited tender offer from CMG Partners, LLC and its affiliates. The tender offer, for 400,000 shares of Class E stock, is priced at $4.08 per share.  According to the board, CMG’s offer “would not be in the best interest” of the REIT’s Class E stockholders.

According to the letter, the current net asset value of the Class E Common Stock is $8.97 per share, approximately 54% higher than the tender offer price. The original offering price of the shares was $10.00 per share. 

The Board notes that  “it is possible that in the future additional liquidity will be made available to you, though we can make no assurances as to whether that will happen, or the timing or terms of any such liquidity and whether any such liquidity will be available at a price in excess of the CMG Offer price.”

Update on October 7, 2021 Griffin Realty Trust Suspends Redemptions & Publishing NAV

On October 1, 2021, Griffin Realty Trust, Inc. reported it is suspending its share redemption program (SRP) beginning with the next cycle commencing fourth quarter 2021. It has also suspended its distribution reinvestment plan (DRP), and the current monthly distribution for September 2021 is expected to be paid on or about October 11. 

The REIT also noted that it has temporarily suspended its quarterly publishing of net asset value per share of common stock due to certain “strategic initiatives” that the REIT currently is pursuing, according to filings with the SEC.  

The REIT notes it will resume publishing a quarterly net asset value per share of common stock when it “determines it is appropriate and no later than one year from its most recent net asset value publication.” 

Potential Lawsuits to Recover Financial Losses

The trouble with non-traded REITs  is that they are complex and inherently risky products.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

If you have suffered losses investing in Griffin Realty Trust, Inc.,  please contact The White Law Group at 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.