MacKenzie Realty Capital Investor Losses?

Soreide Law Group is investigating potential claims on behalf of investors who were sold shares of MacKenzie Realty Capital, Inc. by their financial advisors or brokerage firms. This investment has recently been the subject of troubling updates that may signal losses for shareholders. Investors should be aware of the risks and issues tied to this product, which are outlined below.

What is MacKenzie Realty Capital?

MacKenzie Realty Capital, Inc. is a publicly registered real estate investment trust, or REIT. Its business model centers on acquiring multifamily housing and office properties in different states across the country. In November 2024, the company was approved to trade on the Nasdaq Capital Market under the ticker MKZR, after previously being listed on the OTCQX. Financial filings show that the company managed more than $200 million in assets and over $100 million in equity at the end of 2023. Like other REITs, the company’s stated goal is to provide income to investors while growing the value of its real estate holdings.

Concerns About MacKenzie Realty Capital

While a Nasdaq listing can increase visibility, MacKenzie Realty Capital has faced significant challenges. In July 2025, the board approved a one-for-ten reverse stock split to bring its share price back above the minimum required for continued Nasdaq trading. A reverse split does not change the overall value of the company but can be a sign of ongoing financial or operational struggles.

Market pricing is another area of concern. The company reported a net asset value of $7.75 per share in 2024, but shares in the secondary market have been trading under $6.00. This is well below the original $10 per share offering price, apparently leaving some investors with substantial paper losses. Adding to the risk profile, MacKenzie has noted issues such as sensitivity to inflation, high debt obligations, and limits on liquidity, all of which can impact investors’ ability to access their funds.

Possible Sales Practice Violations

Investments like non-traded REITs are often associated with high commissions and limited transparency. Financial professionals may have recommended MacKenzie Realty Capital without adequately explaining its risks, or they may have promoted it to clients for whom the investment was not appropriate. Common sales practice concerns include unsuitable recommendations, misrepresentation of potential returns, and failure to disclose illiquidity. Investors who believe they were misled or sold this product inappropriately may have legal options to recover their losses through FINRA arbitration or similar claims.

Did You Sustain Losses by Investing in MacKenzie Realty Capital?

Did you experience losses because of investing in MacKenzie Realty Capital, Inc. because of your financial advisor or securities broker? If so, reach out to Soreide Law Group online or at (888) 760-6552 and speak with a securities attorney about the possibility of recovering your investment losses. Soreide Law Group has helped investors nationwide recover damages. The firm works on a contingency basis, meaning it advances all costs and only collects fees if a recovery is made.