Nuveen Global Cities REIT: Investigating Securities Claims
Nuveen Global Cities REIT, Inc., a non-traded real estate investment trust (REIT) sponsored by Nuveen, LLC, focused on stabilized income-oriented commercial real estate in the United States, with a smaller portion allocated to properties in Canada, Europe, and the Asia-Pacific region.
The offering, effective since January 31, 2018, includes Class D, Class S, Class T, and Class I shares, each with different upfront commissions and ongoing fees. The purchase price per share is based on the company’s net asset value per share, plus applicable fees.
According to company filings, the current Net Asset Value, as of December 31, 2024, for Nuveen Global Cities REIT is as follows: Class T $11.99, Class S $11.86,
Class D $12.02, Class I $11.98.
High Interest Rates and Decline in Commerical Property Prices
According to a December 27, 2023 article in CoStar news, non-traded Real Estate Investment Trusts (REITs) experienced a significant decline in fundraising last year, dropping by two-thirds through November 2023 compared to the same period in the previous year.
Factors such as higher interest rates and declines in commercial property prices contributed to reduced investor interest, resulting in a 12% decline in non-traded REIT net asset values over the year.
In 2023, non-traded REITs raised $9.8 billion, down from $30 billion in the previous year.
With many American businesses still operating partially remotely post-pandemic and rising interest rates, commercial real estate is facing challenges. The Dow Jones U.S. Real Estate Index saw a nearly 15.7% decline over the past year, while the S&P 500 index increased slightly over the same period, as reported by Investment News.
Additionally, a recent report from real estate data firm CoStar Group Inc revealed that the U.S. office vacancy rate reached a new high of 12.9% in the first quarter, surpassing the peak during the 2008 financial crisis. This trend could adversely affect investors in non-traded REITs, given the limited share redemption programs these products typically offer. See: Non-traded REITs “Liquidity Issue”
Complex Investment Products – Nuveen Global Cities REIT
Non-traded REITs are complex investments that are only suitable for sophisticated investors. Your brokerage firm has a duty to perform due diligence on any investment.
They must ensure that the investment is suitable for a particular investor considering that investor’s age, investment objectives, income, net worth, and investment experience. Due to the current risk of devaluation of these REITs, its likely they are only suitable for wealthy and/or sophisticated investors.
Non-traded REITs also face several liquidity issues due to their unique characteristics and structure. They do not trade on a public exchange like traditional stocks. As a result, if they try to sell the shares on a secondary market before the REIT’s liquidation event, it is often at a loss.
Broker Due Diligence
Financial advisors have a fiduciary duty to put their client’s needs ahead of their own. If a stockbroker recommends an investment that is unsuitable for the client or fails to perform adequate due diligence on an investment, the advisor and his/her firm can be held liable for the resulting losses.
If you are concerned about your investment in Nuveen Global Cities REIT or another non-traded REIT, please contact The White Law Group for a free consultation at 888-637-5510. Our national securities fraud, securities arbitration, and investor protection attorneys are ready to assist you in understanding your rights and potential courses of action.
The White Law Group is dedicated to protecting investors’ interests and help those who may have suffered investment losses with their broker or financial advisor.
Visit our website at https://www.whitesecuritieslaw.com to learn more about our firm and the representation we provide for investors in FINRA arbitration claims.
Tags: illiquid investments, non-traded REITs, Nuveen Global Cities REIT Last modified: February 9, 2024