ATTENTION INVESTORS: Carter Validus Mission Critical REIT Losses?

Soreide Law Group is evaluating claims against brokers and financial advisors who may have made unsuitable recommendations for investors to buy Carter Validus Mission Critical REIT products.

Carter Validus Mission Critical REIT Share Prices Drop Significantly In Estimated Value

Apparently, Carter Validus (CV) has offered investors non-traded real estate investment trust programs including Carter Validus Mission Critical REIT (“CVMCR”) and Carter Validus Mission Critical REIT II (“CVMCR”). The company claims that its programs support providing investors regular distributions, preservation of capital contributions, and capital appreciation with a focus on stable, diversified assets.
The original offering price for Carter Validus Mission Critical REITs was $10.00 per share. Apparently, as of June 30, 2018, Carter Validus claimed that its NAV is just $5.33. Moreover, at least one secondary market company – Central Trade & Transfer, LLC - who operates an automated auction Website for buyers and sellers of illiquid real estate investment trust shares – listed Carter Validus Mission Critical REIT shares for nearly sixty percent less than the original offering price.

Carter Validus Mission Critical REIT Unable To Honor Repurchase Requests

Notably, the Carter Validus Mission Critical REIT recently disclosed to the Securities and Exchange Commission (“SEC”) that it cannot honor all repurchase requests for the 2019 Q1 repurchase date. This comes after the board of directors suspended its share repurchase program in 2018. Therefore, some investors who have requested the repurchase of their shares may have to wait longer before they can sell them because there is no public market for its shares.
Brokers and financial advisors may have sold Carter Validus Mission Critical REITs without informing investors about its downsides. Specifically, investors have to deal with the risk that the proceeds from a redemption of CV Mission Critical REIT shares may be less than the original amount invested. Moreover, brokers and financial advisors sometimes overlook due diligence on the investments they sell to investors. Because of this, some brokers and advisors lack a reasonable basis to believe that the investments they sell are suitable for investors. Given the high commissions and fees associated with REITS, there is an elevated risk that brokers and advisors may make inappropriate or unsuitable sales.

Have you experienced losses by purchasing Carter Validus Mission Critical REIT from your broker or advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advance all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.