Did You Suffer Hartman vREIT XXI Investor Losses?
You May Want To Speak With Our Knowledgeable Non-Traded REIT Lawyers
Shepherd Smith Edwards and Kantas (investorlawyers.com) represent investors who may have been unsuitably recommended Hartman vREIT XXI by their financial advisor. Like many non-traded real estate investment trusts (non-traded REITs), Hartman vREIT XXI is risky and complex and may not be an appropriate investment for many investors, including conservative retail investors and elderly retirees.
This non-traded REIT invests in commercial properties, primarily in Texas, that it considers “value-oriented.” These include retail, industrial, office, and warehouse properties that the company believed showed potential for value and income growth related to repositioning, re-tenanting, development, and operational enhancements. After breaking escrow in December 2016, as of the end of September 2020 Hartman vREIT XXI had raised almost $92M from investors.
Concerns grew in late 2022 when in its quarterly report to the US Securities and Exchange Commission (SEC), the non-traded REIT announced that its own management was experiencing “substantial doubt” regarding the company’s ability to keep on as a “going concern” in the wake of upcoming loan maturities. This includes two revolving credit loans ($55M in total) and a $2.41M term loan that will mature in March 2023. Also, at the end of its third quarter of 2022, Hartman vREIT XXI reported about $1.4M year-to-date loss and $407K in bank overdrafts.
It said that if debt service obligations couldn’t be fulfilled, lenders may turn to foreclosure, which would impact the non-traded REITs financial health, as well as its being able to pay stockholder distributions and stay in business. Also, secondary market quotes for non-traded REITs have had Hartman vREIT XXI shares listed at prices as low as $5.30/share, which indicates that investors already have lost a significant amount of their principal as the original offering price was $10/share. The company’s share redemption plan says Hartman vREIT XXI investors cannot do so for three years.
Our savvy Hartman vREIT XXI investor loss lawyers can help you determine whether you have grounds for filing a broker negligence lawsuit against your financial advisor and their brokerage firm for damages.
Why Work With Our Seasoned Non-Traded REIT Lawyers?
These are complex investments that are usually less regulated than other less-risky investments. Generally illiquid, non-traded REIT risks can be hard for retail investors to fully understand unless properly explained by their stockbrokers. Unfortunately, unsuitable investment recommendations and misrepresentations and omissions by financial advisors happen all too often leaving non-traded REIT investors confused as to why they ended up losing money.
Also, non-traded REITs usually charge investors a high up-front commission of about 7-10%, as well as additional fees of 1-3%. Such costs may eat into an investor’s profits.
You want to work with an experienced securities law firm that understands the nature of non-traded REITs, the risks involved, and the ways in which broker misconduct or negligence can lead to serious investor losses.
Suing your broker for damages is hard enough and there is no reason to do this on your own. At Shepherd Smith Edwards and Kantas, our skilled non-traded REIT investment loss attorneys have a solid background in both securities law and the securities industry. Some of us used to be former financial advisors and we are well aware of the negligent and unsavory practices that can take place. This is why we have created a securities fraud law firm that is solely dedicated to protecting investors and fighting for their financial recovery.
We have represented non-traded REIT investors in FINRA arbitration, mediation, and litigation for over three decades and have helped thousands of our clients to secure damages through settlements and awards.
Call (800) 259-9010 to ask to speak with one of our trusted Hartman vREIT XXI investor loss attorneys today.