Hartman vREIT XXI Lawsuit – NAV Update & Investment Losses 

Concerned about investment losses in Hartman vREIT XXI, Inc.? You may be able to recover your losses through a FINRA arbitration claim.

Hartman vREIT XXI, Inc., a non-traded real estate investment trust (REIT) sponsored by Hartman Income REIT Management Inc., continues to raise red flags for investors. The company recently disclosed a decline in its estimated net asset value (NAV) per share, furthering concerns about the performance and viability of the REIT. Investors who were unsuitably sold Hartman vREIT XXI may have legal options to recover their losses.

New NAV per Share Decline – June 2025 Update

On June 13, 2025, Hartman vREIT XXI announced an updated estimated NAV per share of $9.83 as of December 31, 2024—a 3.3% decrease from the previously disclosed NAV of $10.17 as of December 31, 2021.

The NAV calculation was based on a valuation prepared by the company’s advisor and included third-party appraisals by LaPorte CPAs and Business Advisors. The company stated the board and audit committee also contributed to the valuation process.

Notably, a consent solicitation letter dated May 31, 2025, filed with the SEC on June 11, referenced an earlier NAV of $9.61 per share as of December 31, 2023—a figure that was not widely disclosed to investors prior to the filing.

This marks the first time since 2022 that Hartman vREIT XXI formally updated its NAV per share, according to Robert A. Stanger & Company.

Portfolio Snapshot

As of December 31, 2024, the REIT reported the following assets:

• 10 wholly owned commercial properties
• An 83% tenant-in-common interest in an office property
• A 2.47% interest in a special purpose affiliate owning 39 office, retail, and light industrial properties across Texas
• 1,258,406 shares of common stock and operating partnership units of Silver Star Properties REIT

Background: Distribution Suspensions & Financial Concerns

Although not new, ongoing concerns about Hartman vREIT XXI’s financial condition remain important for investors evaluating potential recovery options.

In December 2022, the company disclosed in SEC filings that there was substantial doubt about its ability to continue as a going concern. Key issues included:

• Two revolving credit loans totaling $55 million maturing in March 2023
• A $2.41 million term loan also maturing in March 2023

If the REIT fails to meet its debt obligations, the risk of foreclosure and a material adverse effect on operations and shareholder value remains high.

In early 2023, the company suspended investor distributions indefinitely due to rising interest rates, per a shareholder letter dated February 1, 2023.

Secondary Market Pricing & Illiquidity

Shares of Hartman vREIT XXI were originally sold at $10.00 per share, but according to secondary market platform Central Trade and Transfer, shares have recently been listed for just $0.30 per share. This may reflect a loss of nearly 95% in value for investors.

As a non-traded REIT, Hartman vREIT XXI is highly illiquid. Under the company’s redemption plan, investors generally must wait three years to redeem their shares, and redemptions are prioritized only for those experiencing death or disability.

Effects of Mergers on Shareholders

Hartman vREIT XXI has participated in multiple mergers with affiliated REITs:

• In 2020, three Hartman REITs merged with Hartman Short Term Income Properties XX Inc. as the surviving entity.
• In a later merger, Hartman XX merged into Hartman vREIT XXI, making the latter the surviving company.

Such corporate actions can cause confusion for shareholders, especially when combined with shifting NAVs, halted distributions, and lack of transparency. Mergers may dilute voting power and don’t always result in increased shareholder value—especially in an unfavorable economic environment.

FINRA Arbitration vs. Class Action – Which is Better?

If you were unsuitably sold this by a broker-dealer, you may be wondering how to recover your losses—through a class action or FINRA arbitration?

FINRA arbitration is often the better route for most retail investors. It allows individual investors to bring claims against their brokerage firms for unsuitable investment recommendations, misrepresentation, or failure to conduct due diligence.

Unlike class actions, which can take years and result in small payouts for participants, FINRA arbitration claims are usually resolved more quickly and based on the individual facts of your case.

The White Law Group has successfully handled thousands of FINRA arbitration cases nationwide.

FAQ – Hartman vREIT XXI Lawsuit

1. Can I sue my financial advisor for Hartman vREIT XXI losses?

Yes. If your advisor recommended Hartman vREIT XXI without properly explaining the risks or failed to conduct adequate due diligence, you may have grounds for a FINRA arbitration claim.

2. Is Hartman vREIT XXI still paying distributions?

No. As of early 2023, the company suspended all investor distributions indefinitely due to financial instability and rising interest rates.

3. What is Hartman vREIT XXI worth today?

Although the REIT’s official NAV was recently reported at $9.83 per share, shares have traded for as low as $0.30 on secondary markets, suggesting significant potential losses for investors.

Recover Your Hartman vREIT XXI Losses

If you invested in Hartman vREIT XXI or any other Hartman-sponsored REIT and are concerned about your losses, contact The White Law Group today for a free consultation.

Our securities attorneys are investigating potential claims against brokerage firms that unsuitably recommended these high-risk, illiquid investments to clients.

Call 888-637-5510
Visit https://www.whitesecuritieslaw.com