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Benefit Street Partners Realty Trust (Now Franklin BSP Realty Trust)

What is Franklin BSP Realty Trust?

This real estate investment trust (REIT) originates, acquires, and oversees commercial real estate debt that is secured by properties based in the United States. It is the result of the merger between formerly publicly registered private REIT Benefit Street Partners Realty Trust and residential mortgage REIT Capstead Mortgage Corporation.

The new company, called Franklin BSP Realty Trust (FBRT), began trading on the New York Stock Exchange (NYSE) on October 19, 2021 with the closing price of its stock at $17.10/share that day.

Franklin BSP Realty Trust is now one of the largest commercial mortgage REITs in the country. Benefit Street Partners Realty shares, originally sold for $25/share, were reportedly available for $11.25/share on secondary market Central Trade and Transfer.

Our REIT investment attorneys are investigating claims of losses because brokers unsuitably sold their customers shares in Benefit Street Partners Realty Trust. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.

Some Background Facts About Benefit Street Partners Realty Trust Prior to the Merger

November 2012: Originally called Realty Finance Trust, Benefit Street Partners Realty Trust was created this year. Overseen by alternative asset manager Benefit Street Partners (BSP), which had replaced AR Global Investments (formerly AR Capital), its aim was to originate, obtain, and manage commercial debt investments, including loans and collateralized mortgage-backed securities (CMBS).

January 2016: Before closing its offering, the REIT had raised $786M in investor equity.

March 2020: Benefit Street Partners Realty Trust temporarily suspended its distribution reinvestment and stock purchase plan (DRIP). While no reasons for the suspension were provided in filings with the Securities and the Exchange Commission (SEC), other non-traded REITs also took similar action at around this time because of the COVID-19 pandemic.

July 2021: The merger with Capstead Mortgage Corp. was announced. The deal came after the completion of Comrit Investments 1, Limited Partnership’s tender offer to purchase up to 2,500,000 of Benefit Street Partners Realty Trust’s common stock.

September 2021: The private REIT’s Board of Directors announced a third quarter common stock dividend of $0.355/common share payable on or around October 1, 2021 to common stockholders of record as of September 1, 2021.

How did Benefit Street Partners Realty Trust Investors Lose Money?

This private REIT was a complex, illiquid investment that should only have been recommended and sold to investors who had the kind of investing profile that could handle the potential risks.

Many investors contend that their financial advisors made misrepresentations, causing them to think that this was a safe, income generating investment. This was despite the fact the Benefit Street Partners Realty Trust’s own prospectus specified how high risk this real estate investment trust could be.

The lure of high commissions and other fee payments from Benefit Street Partners REIT to financial advisors may have been incentive enough to get brokers to breach their fiduciary duty to certain customers, neglect to conduct the proper due diligence, or for brokerage firms to fail to properly supervise such sales.

What Can You Do if Your Suffered Losses From Benefit Street Partners Realty Trust/Franklin BSP Realty Trust?

If you are someone who lost money in Benefit Street Partners Realty Trust, now Franklin BSP Realty Trust, it is important that you explore your legal options right away.

Our experienced REIT fraud investment attorneys have filed thousands of investor claims over the years on behalf of clients pursuing damages from losses they sustained in complex, risky products, including real estate investment trusts and other alternative investments.

While the merger may have been beneficial for this private REIT, many Benefit Street Partners Realty Trust investors, especially those who purchased shares at the original price, continue to deal with significant losses.

Your best bet for financial recovery is to pursue your own REIT investor claim through Financial Industry Regulatory Authority (FINRA) arbitration with the help of seasoned real estate investment trust attorneys. Call SSEK Law Firm at (800) 225-9010 or contact us online today.

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