Written by The White Law Group• November 15, 2021• 4:16 pm• Blog, Current Investigations, Securities Fraud Articles

Mobile Infrastructure Corp./Parking REIT Lawsuit Investigation

Mobile Infrastructure Corp. (formerly The Parking REIT) Secondary Sales Price $5.00 Per Share

Have you suffered investment losses in Mobile Infrastructure Corp. (formerly The Parking REIT)? The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended the REIT to investors.

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The Parking REIT, an internally-managed, publicly registered, non-listed REIT, that invests primarily in parking lots and garages in the United States, announced on November 12 that it has changed its name to “Mobile Infrastructure Corporation”. The REIT’s assets include 43 parking facilities located in 17 states. The REIT was originally formed during a merger between MVP REIT and MVP REIT II in 2017.

*UPDATE* According to a filing with the SEC on May 31, 2022, the company announced it had reached a merger agreement with Mobile Infrastructure Trust (MIT), a newly formed entity that is planning an initial public offering (IPO) and subsequent listing of its shares on the NYSE under the ticker symbol “BEEP”. The merger will depend on certain customary closing conditions, including shareholder approval and MIT’s initial public offering, which has not yet been priced and is pending SEC review. The company anticipates the merger will close in the third quarter of 2022.

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 REIT 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.

As part of the Equity Purchase and Contribution Agreement, Color Up, LLC reportedly 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.

The company 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.

Unfortunately for investors, as of May 12, 2022, shares of Mobile Infrastructure Corp. are currently being listed for sale for just $5.00 per share, according to Central Trade and Transfer, a secondary market for non-traded REITs.

Shares were originally sold for $25.00 each.

Parking REIT Exec Charged with Fraud

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

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 Lawsuits to Recover Financial Losses

Many investors are not fully aware of the problems and risks associated with non-traded REITs before purchasing them.

Real estate investment trusts (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 often 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.

Non-traded REITs are generally complex, high-risk investments and not suitable for every investor. They are also illiquid, meaning they are not traded on any market. Often investors find themselves in the situation of being unable to sell the investment when they are ready. If they are able to find a buyer, it is often at a reduced price.

Free Consultation with a National Securities Attorney

The White Law Group is currently representing Parking REIT 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 http://whitesecuritieslaw.com.

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