Griffin Realty Trust: Non-Traded REIT
Griffin Realty Trust is an internally managed, publicly registered non-traded real estate investment trust (non-traded REIT). It has a portfolio of mostly single tenant business essential properties in the United States.
These include industrial properties and corporate offices that the company considers credit-worthy. Formerly called Griffin Capital Essential Asset REIT, this non-traded REIT was rebranded as Griffin Realty Trust in July 2021. Its initial offering price was $10/share.
Unfortunately, there are Griffin Realty Trust investors who have reported significant investment losses. Their broker may have even unsuitably sold this non-traded REIT to them.
Our REIT fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent Griffin Realty Trust investors in recovering their losses from the brokerage firms responsible for selling them this investment. Call us at (800) 259-9010 today.Key Events in 2021 Involving Griffin Realty Trust March 2021
Griffin Realty Trust, which recently finalized a stock-for-stock merger transaction with Cole Office & Industrial REIT Inc., now has more than 120 properties with a $5.8B total asset valuation.April 9, 2021
Shareholders received a letter from the REIT’s board pressing them to disregard a tender offer by CMG Partners, LLC, and affiliates for 400,000 Class E stock shares at $4.08/share. At the time, the current net asset value (NAV) of Class E Common Stock was $8.97/share.
However, it did note that at some point, “future additional liquidity” might be available to investors —although it couldn’t guarantee if and when that would happen and whether the price would be greater than what CMG Partners was offering.June 30, 2021
Griffin Realty Trust’s estimated net asset value (NAV) was $9.04 share.August 2021
Tel-Aviv-based investment fund Comrit Investments I, LP made an unsolicited tender offer to buy up to $4M of outstanding Griffin Realty Trust Class AA shares for $6.91/share.
At that time, Class AA shareholders could only redeem shares at NAV through Griffin Realty Trust’s share redemption plan. The non-traded REIT’s Board stated it would not make a recommendation one way or the other to shareholders.Griffin Realty Trust Suspends Share Redemptions
October 1, 2021, Griffin Realty Trust announced it was suspending its share redemption program starting its next cycle during the fourth quarter of the year. The non-traded REIT also said it was suspending its distribution reinvestment plan. The distribution for September 2021 was to be paid by around October 11, 2021.
In filings with the Securities and Exchange Commission (SEC), Griffin Realty Trust said it was suspending publishing its NAV per share of common stock every quarter because of “strategic initiatives.”Why Are Public Non-Traded REITs Like Griffin Realty Trust So Risky for Investors?
Although appealing to investors looking for products with greater yield, non-traded REITs tend to be illiquid because they don’t trade on a national securities exchange.
Early share redemption is often limited and usually priced lower than the original purchase price or even the current price. Non-traded REIT investors should expect to hold on to their investments for years. This means that this investment is not suitable for anyone who cannot handle or does not want a long-term investing strategy. Unfortunately, distributions from non-traded real estate investment trusts are not guaranteed.
Even upon liquidation, there is a chance that investors will not profit much beyond the return of their capital. Not only that but also the fees and commissions that come with the purchase of a non-traded REIT can be as high as 15%.Griffin Realty Trust Investors Seeking To Recover Their Losses
Unfortunately, the lure of high commissions can compel many financial advisors and their broker-dealers to market and sell non-traded REITs, such as Griffin Realty Trust, to investors even if they were never a good fit for these customers’ investing goals and risk tolerance. Many investors may not have been apprised of the risks involved and were the victims of misrepresentations and omissions by their brokers.
Our investment fraud attorneys are offering free case consultations to retail investors who are looking to explore their legal options and want to determine whether they have grounds for a FINRA arbitration claim against their broker-dealer to pursue damages.