Mobile Infrastructure Corp. (BEEP) IPO: Investor Alert

Mobile Infrastructure Corp. (BEEP) Stock Closes at $6.98 per Share 

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended the Parking REIT (now known as Mobile Infrastructure Corp.) to investors.    

Mobile Infrastructure Corporation’s common stock commenced trading on the New York Stock Exchange American under the ticker “BEEP” on August 28, 2023. 

Fifth Wall Acquisition Corp. III, a special purpose acquisition company (“SPAC”), and Mobile Infrastructure Corp. just announced the “completion of its business combination.” The transaction valued the equity of Mobile at $15.00 per share versus its published 2022 Net Asset Value (“NAV”) of $14.76 per share. The shares of BEEP stock reportedly closed at $6.98 on August 30, 2023.

The Parking REIT Changes its Name after Losing REIT Status

On November 12, 2021, The Parking REIT officially changed its name to Mobile Infrastructure Corporation, after losing its status as a REIT. The company, which invests primarily in parking lots and garages in the United States, reportedly lost REIT status during the pandemic when leases were converted to management agreements by the prior management team. The company noted that it was attempting to reassert REIT status. (Please see: The Parking REIT: Negative Effects of Covid-19 Pandemic) 

Company Sells Majority Stake after Lawsuits 

Amidst a myriad of problems for the Parking REIT including 3 pending class action lawsuits, and allegations of fraud against one of the company’s executives, the company agreed in January to sell a majority stake to an affiliate of Bombe Asset Management LLC, a Cincinnati-based alternative asset management firm, according to an 8-K filing.    

Color Up, LLC offered to tender up to 900,506 of the outstanding shares of common stock of The Parking REIT, Inc. at a price per share of $11.75 per share on October 5, 2021.  The other transactions contemplated by the Purchase Agreement closed on August 25, 2021 and included Color Up’s acquisition of 22.4% of the Company’s shares.    

Disappointing Net Asset Value (NAV)   

Mobile Infrastructure Corp. finally updated its net asset value (NAV) on January 14, 2021, to $11.75 per common share as of January 8, 2021, after reported delays due to the Covid-19 global pandemic. The last reported NAV as of May 15, 2019, was $25.10 per share, indicating significant losses for investors.  Shares were originally sold for $25.00 each. 

May 12, 2022 – Secondary Sales Price $5.00 per share 

In May 2022, shares of Mobile Infrastructure Corp. Were listed to sell for just $5.00 per share, indicating losses for investors.

Parking REIT Exec Charged with Fraud    

As we previously reported, the Securities and Exchange Commission on July 30, an executive of the Parking REIT, and his wholly owned investment advisory firm, Vestin Mortgage LLC, charged with fraud.     

(Please see: Parking REIT Executive Allegedly Charged with Defrauding Investors)   

 The executive allegedly funneled $29 million from Vestin Realty Mortgage I and Vestin Realty Mortgage II into The Parking REIT and then purportedly initiated “money-losing transactions in which the same six buildings were repeatedly re-sold”, all to allegedly benefit himself and The Parking REIT, according to the complaint.  

Potential Claims to Recover your Mobile Infrastructure Corp. investment

Unfortunately, many investors are not fully aware of the problems and risks associated with alternative investments before purchasing them.    

Alternative investments, such as non-traded REITs, are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.  Non-traded REITs and private placement investments lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale. 

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. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim. 

The Financial Industry Regulatory Authority (FINRA) operates the largest dispute resolution forum in the securities industry.  In fact, FINRA Dispute Resolution is the forum for almost all disputes between investors, brokerage firms and individual brokers.  This is mainly because the vast majority of brokerage firms have mandatory arbitration clauses in their account agreements that require investors to file their disputes through FINRA.    

Free Consultation with a National Securities Attorney    

The White Law Group is currently representing Mobile Infrastructure Corp. investors in claims against their brokerage firm. If you are concerned about your investment in the Parking REIT (now known as Mobile Infrastructure Corporation), the White Law Group may be able to help you.  For a free consultation with a securities attorney, please call 888-637-5510.    

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 White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.    

 To learn more about the firm’s investigation, please see:   

Parking REIT Update – Declining NAV $11.75 Per Share 
Mobile Infrastructure Corp./Parking REIT Lawsuit Investigation