The Wolper Law Firm, P.A. is currently investigation claims against brokerage firms and investment advisors that recommended that clients invest in the Benefit Street Partners Non-Traded REIT.
Non-Traded REITs are securities that do not trade on a public securities exchange. For this reason, Non-Traded REITs can be illiquid, meaning investors may be unable to sell their investments on demand. The underlying collateral of the REITs consists of income producing residential or commercial real estate. Typically, the commissions generated on Non-Traded REITs are higher than industry norm (approx. 7%) and the investments themselves may be subject to extreme volatility due to associated risk factors. Non-Traded REITs are only suitable for investors with a long-term investment horizon who are willing to accept higher levels of risk in their investments.
Benefit Street is a publicly registered, Non-Traded REIT that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. Benefit Street is managed by BSP, a credit-focused alternative asset manager with over $20 billion of assets under management. Benefit Street commenced its operations in November 2012, and raised $786 million in investor equity prior to closing its offering in January 2016. As of September 2016, the Company’s portfolio consisted of 73 loans and 7 CMBS investments.
Investors who purchased Benefit Street shares at the initial offering acquired shares at $25 per share. As of December 31, 2017, the Company’s Board has assigned a net asset value (“NAV”) of $19.17 per share to Benefit Street shares. Thus, it would appear that investors who are actually able to redeem some or all of their shares with the Company will lock in a loss of approximately 23%, excluding commissions paid in connection with the initial purchase and any distributions received to date.
Benefit Street is a publicly registered, Non-Traded REIT that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. Benefit Street is managed by BSP, a credit-focused alternative asset manager with over $20 billion of assets under management.
The prospectus for the Benefit Street Non-Traded REIT states that the investment involves “significant risk” and is suitable only for persons who have adequate financial means, desire a relatively long-term investment and will not need immediate liquidity from their investment. Many financial advisors pitched Non-Traded REITs as safe, income producing investment vehicles. In reality, Non-Traded REITs are only suitable for those investors with aggressive risk profiles who have a long-term investment horizon.
If you or someone you know invested in Benefit Street Partners and experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.