Griffin Realty Trust Inc. Redemptions Remain Suspended with exception of “Stockholder death”
Concerned about your investment in Griffin Realty Trust inc. (fka Griffin Capital Essential Asset REIT?)
The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for recommending Griffin Realty Trust Inc. to investors.
Griffin Realty Trust (formerly known as Griffin Capital Essential Asset REIT) 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.
Unsolicited Tender Offers – Updated on September 7, 2022
On September 1, CMG Partners LLC and its affiliates reportedly extended an unsolicited tender offer to purchase up to 500,000 Class E shares of the non-traded REIT, for $3.76 per share in cash. Griffin Realty Trust makes no recommendation on whether shareholders should accept or decline the CMG offer, according to a letter to shareholders filed with the SEC on Friday.
The CMG offer price of $3.76 per share is approximately 49 percent less than the most recently published NAV for Class E shares of $7.43 as of June 30, 2022.
Mackenzie Capital Management has also launched a tender offer to purchase shares of the REIT on September 5, reportedly offering $4.09 per share.
Limited Share Repurchase Plan – Updated on September 7, 2022
On October 1, 2021, Griffin Realty Trust, Inc. reported it was 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.
Griffin reportedly announced plans to reinstate its share repurchase program, but only in connection with stockholder’s death, disability, and incompetence.
The Board has previously noted 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.” To learn more, see: Griffin Realty Trust Plans Spin-off, Liquidation as NAV Declines
How to Recover Investment Losses involving Non-traded REITs
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.
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