Written by The White Law Group• August 3, 2022• 4:32 pm• Blog, Current Investigations

SmartStop Self Storage REIT Tender Offer as SRP Remains Suspended

SmartStop Self Storage REIT Tender Offer Price Suggests Losses for Investors, featured by top securities fraud attorneys, The White Law Group

SmartStop Self Storage REIT Inc. – Investigating Potential Claims

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended SmartStop Self Storage REIT Inc. to investors.

SmartStop, formerly known as Strategic Storage Trust II, is a self-managed REIT with approximately 380 self-storage professionals, which also sponsors other self-storage programs, including Strategic Storage Trust IV, Inc., a public non-traded REIT, and other private programs, according to its website.

Third Party Tender Offers

According to a letter to stockholders on July 21, 2022, Comrit Investments 1 LP and its affiliates launched an unsolicited tender offer to purchase shares of SmartStop Self Storage REIT for $12.03 per share. SmartStop’s current net asset value per share is estimated at $15.08 for its Class A and Class T shares, as of June 30, 2021, indicating that the tender offer price of 20 percent less the current NAV.

The company reportedly instructed shareholders to reject the tender offer, claiming that it is “an attempt to capitalize on the suspension of our share redemption program.”

On September 16, 2021the REIT reported that its redemption program remains suspended other than for redemptions in connection with a stockholder’s death, qualifying disability, confinement to a long-term care facility or other “exigent circumstances.”

In March, SmartStop Self Storage REIT, Inc. and Strategic Storage Trust IV, Inc. closed a merger, in which SST IV merged into a subsidiary of SmartStop, in an all-stock transaction with a value of approximately $380 million.

Filing a Complaint against your Brokerage Firm

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like SmartStop Self Storage REIT, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

Brokerage firms that do not perform adequate due diligence on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.

If you have suffered losses investing in SmartStop Self Storage REIT Inc. the securities attorneys of The White Law Group may be able to help you. Please call the offices at 888-637-5510 for a free consultation.

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, visit https://whitesecuritieslaw.com

To learn more about the firm’s investigation, please see:
Strategic Storage Trust IV Merges into SmartStop Self Storage REIT

SmartStop Self Storage REIT Inc. Investment Losses