Update on Investigation of Sila Realty Trust
The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended high-risk non-traded REIT Sila Realty Trust to investors.
Sila Realty Trust Inc., a non-traded REIT formerly known as Carter Validus Mission Critical REIT II, invests in data centers and healthcare facilities, according to its website. The company changed its name on September 30, 2020.
On May 12, the company reportedly terminated its Chief Accounting Officer, according to a filing with the Securities and Exchange Commission. Sila’s Chief Financial Officer will serve in the role until a new Chief Accounting Officer is hired, according to the company.
Secondary Sales: Sila Board Recommends Rejecting Tender Offer
According to a Letter to Stockholders on March 7, the Board recommended they reject an unsolicited tender offer by CMG Partners and its affiliates, CMG Income Fund II LLC, CMG Liquidity Fund LLC and Blue River Capital LLC.
CMG is offering to purchase up to 500,000 Class A shares for $4.15 each, close to 50 percent less than the REIT’s most recent net asset value (NAV) per share of $8.20, announced in July 2021. CMG’s offer expired on April 13, 2022, unless extended.
After Carter Validus Mission Critical REIT Inc. (CVMC REIT I) and CV REIT II merged in December 2019, they reportedly approved an estimated net asset value of $8.65 per share, calculated as of October 31, 2019.
The NAV was negatively impacted by transaction costs from the company’s debt payoff and other merger-related costs ($0.37), distributions in excess of earnings ($0.08), and a change in the value of interest rate swaps ($0.08), according to filings with the SEC.
To learn more about Sila Realty Trust and the firm’s investigation, please see:
The Risks of Investing in Non-Traded REITs
Non-traded REITs are complicated and often risky investments which should only be sold to high-net worth and sophisticated investors.
Aside from the risks of investing in non-traded REITs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. Brokerage firms generally make between 7-10% for selling a non-traded REIT, which is far in excess of the typical commission for more traditional investment types.
Fortunately, FINRA does provide an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
Filing a Complaint against your Brokerage Firm
To determine whether you may be able to recover investment losses incurred as a result of investing in Sila Realty Trust (Carter Validus Mission Critical REIT II), please contact the securities attorneys at the White Law Group at 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.
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