Did Your Broker Recommend The Parking REIT?

Soreide Law Group is investigating claims by investors who received recommendations from their broker/dealers to invest in the non-traded real estate investment trust, The Parking REIT Inc. This REIT could potentially lose 80% of it’s initial value.
According to their website, The Parking REIT Inc., is a publicly registered, non-traded real estate investment trust (REIT) that invests in a portfolio of parking facilities located throughout the United States and Canada. They focus primarily on parking lots, parking garages and other parking structures.
The Parking REIT Inc., according to the DI Wire, formed by the December 2017 merger of MVP REIT and MVP REIT II, sold a majority stake in the company to an affiliate of Bombe Asset Management LLC, a Cincinnati-based alternative asset management firm. Bombe has agreed to invest more than $125 million. The agreement provided for Bombe’s investment of $35 million in cash plus the contribution of parking assets and other property valued at more than $90 million in exchange for operating partnership units valued at $11.75 per unit and warrants to purchase The Parking REIT common stock.
The company’s most recent net asset value per share was $25.10, May 15, 2019. In late December 2020, the REIT informed the SEC that it would delay calculating its NAV per share, citing impacts of the global COVID-19 pandemic. Shares were originally sold for $25.00 each.
The agreement also provides that Bombe will offer to purchase approximately 15 percent of The Parking REIT’s outstanding shares of common stock for $11.75 per share in cash. Bombe agreed to purchase approximately 1.55 million shares of the REIT’s common stock for $11.75 per share from the REIT’s advisor and affiliates. In addition, at closing, the advisor will surrender its claim to 400,000 shares of common stock due to the advisor from The Parking REIT on December 31, 2021 and contribute 175,000 shares of common stock to a settlement fund. Bombe has agreed to purchase the shares from the settlement fund for $11.75 per share.
According to the DI Wire article, the settlement fund is being created as part of an agreement in principle to settle, subject to court approval, three pending class action lawsuits in which The Parking REIT is named as a defendant. Bombe will then own a majority of the company’s common equity on a fully diluted basis, according to DI Wire.
Mackenzie Realty Capital recently offered to purchase shares of the REIT for $5.50 per share, a deep drop from the offer in March 2018 of $12.17 per share.
If you’ve suffered losses in The Parking REIT, recommended by your broker/dealer, remember, non-traded REITs are complex, high-risk investments that should not be recommended to the conservative investor. Contact Soreide Law Group and speak to a lawyer at no cost and discuss the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.
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