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Written by 10:20 am Blog, Current Investigations

Griffin Realty Trust Plans Spin-off, Liquidation as NAV Declines

How to Recover Investment Losses involving Griffin Realty Trust Inc.   

The White Law Group continues to investigate potential securities claims involving the liability that brokerage firms may have for improperly recommending Griffin Realty Trust Inc. to investors.     

Griffin Realty Trust (formerly known as Griffin Capital Essential Asset REIT), a publicly registered non-traded REIT, is focused on business-essential office and industrial properties that are primarily net leased to single tenants, according to its website.   

The company reported an updated Net Asset Value (NAV) per share of $7.37 as of June 30, 2022, a decrease from last year’s NAV of $9.10 per share – a decline of 18%. According to the filings, the company reported that the lowered NAV is due to the decrease in the value of office properties, which was partially offset by an increase in the value of its industrial properties.   

The company noted that “office properties continue to be negatively impacted by pandemic-related work-from-home trends.”    

The REIT also amended and restated its share redemption program (SRP) and will redeem shares in connection with a stockholder’s death, qualifying disability or determination of incompetence or incapacitation. Redemptions begin this quarter, and the first redemption date is September 30, 2022.   

On October 1, 2021, Griffin Realty Trust, Inc. suspended its share redemption program (SRP) and suspended its distribution reinvestment plan (DRP).    

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.     

This comes after the company completed a stock-for-stock merger transaction with Cole Office & Industrial REIT Inc.  

New Tender Offer – January 20, 2023

The board of Griffin Realty Trust Inc. reportedly sent a letter to their shareholders announcing their neutrality regarding an unsolicited tender offer from CMG Partners LLC and its affiliates.

CMG’s current offer includes the purchase of up to 500,000 shares of Class A and Class AA common stock for just $3.40 per share.

In a letter to stockholders, Griffin’s board of directors stated that CMG Partners’ offer is approximately 54% less than the most recently published NAV of  $7.37 as of June 30, 2022..

Liquidation and Possible listing on a Stock Exchange for “IndustrialCo.”    

According to recent filings with the SEC, the company announced that later this year it would spin off a part of its portfolio, comprised predominantly of industrial and office assets, to list the new entity’s shares on a stock exchange. The company reportedly calls the spin-off entity “IndustrialCo.”    

The company notes that it plans to sell off the remaining office assets which would result in liquidation and cessation of the company’s operations, with the spin-off entity surviving as a publicly-traded REIT.   

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 and Seattle, Washington. For more information on the firm, visit

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