Did you lose money investing in Sila Realty Trust (f/k/a Carter Validus Mission Critical REIT II)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in Sila Realty Trust (f/k/a Carter Validus Mission Critical REIT II) at the recommendation of their financial advisor. If you suffered losses, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
UPDATE 7/31/2020: According to new filings with the SEC, Carter Validus Mission Critical REIT II is planning to purchase all of the assets from its sponsor and advisor, and will be changing its name to Sila Realty Trust on September 30, 2020. The cash deal reportedly consists of approximately $40 million paid over an approximately two-year period, with $25 million to be paid at closing, $7.5 million to be paid on March 31, 2021, and $7.5 million to be paid on March 31, 2022.
UPDATE 6/10/2020: Comrit Investments 1 LP has made an unsolicited tender offer to purchase up to 798,669 Class A shares and 199,667 Class T shares for $6.01 per share. No offer is being made for the REIT’s Class T2 or Class I shares. The offer expires June 30, 2020. The board of Carter Validus Mission Critical REIT II is urging shareholders to reject the unsolicited tender offer.
UPDATE 5/5/2020: The board of Carter Validus Mission Critical REIT II has partially suspended its share repurchase program, citing the uncertainty surrounding the coronavirus (COVID-19) pandemic. The company also disclosed that it has reached its 1.25 percent share repurchase limit for the second quarter of 2020 and will not be able to fully process all repurchase requests. The share repurchase program suspension goes into effect with repurchase requests that would otherwise be processed on the third quarter repurchase date, which is expected to be July 30, 2020. The company has reached the DRIP funding limitation during the 2020 second quarter repurchase date, therefor not all repurchase requests will be fully processed.
UPDATE 4/30/2020: MacKenzie Realty Capital Inc. is offering to purchase up to one million shares of the REIT’s common stock for $4.05 per share in an offer that expires on June 8, 2020. The REIT’s most recent NAV per share is $8.65 as of October 31, 2019.
UPDATE 12/23/2019: The board of Carter Validus Mission Critical REIT II approved an estimated net asset value of $8.65 per share for the REIT’s Class A, Class I, Class T, and Class T2 shares of common stock, calculated as of October 31, 2019. The previous NAV per share was $9.25 as of June 30, 2018 and shares originally sold for $10.00 each.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Carter Validus Mission Critical REIT II recently merged with an affiliated non-traded REIT, Carter Validus Mission Critical REIT. The company noted that while the value of its pre- and post-merger real estate portfolio increased, the NAV was negatively impacted by transaction costs incurred from Carter Validus Mission Critical REIT’s debt payoff and other merger-related costs ($0.37), distributions in excess of earnings ($0.08), and a change in the value of interest rate swaps ($0.08). Other offsets ($0.20) that impacted the valuation primarily include capital expenditures related to properties, leasing commissions, and acquisition fees related to a four-property portfolio the REIT acquired in September 2019.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Sila Realty Trust (f/k/a Carter Validus Mission Critical REIT II) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Sila Realty Trust (f/k/a Carter Validus Mission Critical REIT II), and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Sila Realty Trust (f/k/a Carter Validus Mission Critical REIT II), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Sila Realty Trust (f/k/a Carter Validus Mission Critical REIT II) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
