StratCap Digital Infrastructure REIT – Investor Lawsuit Investigation
The White Law Group is investigating potential securities claims involving StratCap Digital Infrastructure REIT Inc., a non-traded, publicly registered real estate investment trust.
According to the filling, the company recently reported a 1.18% decline in total net asset value (NAV), dropping from approximately $123.78 million to $122.31 million as of March 31, 2025. The NAV per share also decreased slightly, from $10.3287 to $10.2317, a 0.94% reduction. Even such a slight decline can signal shifts in asset performance or market conditions. Since non-traded REITs are illiquid, investors may not be able to sell if values continue to drop.
About StratCap Digital Infrastructure REIT
Formerly known as Strategic Wireless Infrastructure Fund II, StratCap focuses on acquiring and managing digital infrastructure assets, including cell towers, data centers, rooftop easements, and fiber networks. The company currently owns 41 communication towers, two data centers, and 61 tenant leases, along with a 51% interest in a joint venture portfolio of 139 towers and more than 200 leases.
Risks of Non-Traded REITs
While the reported NAV decline is modest, it highlights several risks that investors face with non-traded REITs such as StratCap:
- Liquidity Risk: Unlike publicly traded REITs, non-traded REIT shares are illiquid. Investors may be unable to sell their positions easily if values decline.
- Valuation Risk: NAV is based on appraisals and financial assumptions. Even small decreases may signal changes in underlying property performance or market conditions.
- Concentration Risk: StratCap’s focus on digital infrastructure means returns are tied closely to the demand for towers and data centers, as well as tenant stability.
- High Commissions and Fees: Non-traded REITs often carry significant upfront costs, which can erode investor returns.
Potential Recovery Options
If you invested in StratCap Digital Infrastructure REIT at the recommendation of your financial advisor, you may have legal options. Brokerage firms are required to perform adequate due diligence and ensure that investment recommendations are suitable for their clients. Failure to do so may open the door for claims to recover losses.
FINRA Arbitration for Non-Traded REIT Losses
Investors who believe they were misled or improperly advised may be able to pursue claims through FINRA arbitration. This forum provides a path for individual investors to seek damages from the brokerage firms that sold unsuitable investments.
Free Consultation with a Securities Attorney
If you have concerns about your investment in StratCap Digital Infrastructure REIT or other non-traded REITs, The White Law Group may be able to help. Please call us at (888) 637-5510 for a free consultation with a securities attorney.
FAQs – StratCap Digital Infrastructure
What does a slight NAV drop mean for non-traded REIT investors?
Even a small decline can signal shifts in asset performance or market conditions. Since non-traded REITs are illiquid, investors may not be able to sell if values continue to drop.
Are non-traded REITs safe investments?
While often marketed as income-generating, non-traded REITs carry risks such as illiquidity, high fees, and market sensitivity that can impact returns.
How can investors recover losses in StratCap Digital Infrastructure REIT?
Investors may be able to file claims through FINRA arbitration against the brokerage firms that recommended unsuitable REIT investments.
