The Parking REIT Preferred Series 1, Secondary Sales Price suggests Losses for Investors

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

The Parking REIT, a publicly registered non-traded REIT, reportedly  invests primarily in parking lots and garages in the United States. Its assets include 42 parking facilities located in 17 states, according to its website.

The White Law Group has been investigating the Parking REIT (formerly known as MVP REIT II) since 2016 when it first announced that it would re-evaluate pursuing a listing on the NASDAQ Global Market, and consider other stockholder liquidity options. 

Secondary Sales Price for The Parking REIT Preferred Series 1

According to Central Trade & Transfer, a secondary sales market place for non-traded REITs, shares of The Parking REIT Preferred Series 1 were recently listed for sale for just $200 per share. The original offering price was $1,000, according to the PPM, suggesting huge losses for investors. 

In April 2020, we reported that the company suspended distributions paid on its Series A and Series 1 Preferred Stock, due to economic turmoil caused by the COVID-19 global pandemic. The REIT has reportedly delayed calculating its net asset value per share for its common stock, again noting financial impacts from the COVID-19 pandemic, according to filings with the SEC.

The Trouble with Non-Traded REITs

The trouble with non-traded REITs, like The Parking REIT, is that they are complex and inherently risky products.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Filing a Complaint against your Brokerage Firm

If you have suffered losses investing in The Parking REIT Preferred Series 1 (MVP REIT II),  please contact The White Law Group 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 Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.