Benefit Street Partners Realty Trust REIT Lawsuit Investigation

Benefit Street REIT suffers from decreased NAV; Investors remain stuck in risky investment

Our firm is investigating possible legal claims on behalf of investors in Benefit Street Partners Realty Trust and Business Development Corporation of America (BDCA).

Benefit Street Partners, a non-traded real estate investment trust (REIT), conducted its initial offering at $25 per share. Since then, the price of the REIT has decreased substantially; reaching an estimated net asset value of $18.57 per share as November 2019.

This decrease in price may have significantly harmed shareholders. If you are a Benefit Street or BDCA investor, speak with one of our securities attorneys about recovering your losses.

Invest in Benefit Street Partners REIT?

You may have a claim. Get a free and confidential consultation.

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Benefit Street REIT News: Price Drops, Distribution Re-Investment Plan Suspended

Benefit Street Partners Reality Trust, formerly known as Realty Finance Trust, is a non-traded real estate investment trust (REIT). This REIT had declined approximately 25% from its initial price as of September 2018.

Additionally, some investors may have limited ability to exit their investment after the price drop. For example, investors may be limited in both time and scope in redeeming their shares from the company for cash consideration. According to Benefit Street’s Form 10-K,

Repurchases pursuant to the [share repurchase program] generally will be made semiannually… Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year… Due to these limitations, we cannot guarantee that [we] will be able to accommodate all repurchase requests.

REIT Distribution Re-Investment and Stock Purchase Plan Suspended

In March of 2020, Benefit Street Partners suspended its distribution reinvestment and stock purchase plan (DRIP). This suspension, effective immediately, means that shareholders will no longer be able to re-invest their distributions, and will receive future distributions in cash. According to The DI Wire, the company did not disclose a reason for the suspension in its filing with the Securities and Exchange Commission (SEC).

Investors in Benefit Street Partners may have a claim. Speak with a lawyer to learn more about your options.

The Dangers of Non-Traded REITs

While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result.

If you invested in the Benefit Street REIT and have lost part of your investment, not received your distributions, or remain stuck in the uncertain REIT, you may be eligible for monetary recovery. Contact our firm to learn more about your options.

Business Development Corporation of America

Business Development Corporation of America (BDCA) is a non-traded business development company managed by Benefit Street Partners.

Investors in BDCA may be have incurred substantial losses. In its Q2 2019 Investor Presentation, the BDCA estimated its net asset value at $7.97 per share as of June 30, 2019. This is lower than the NAV of $8.58 estimated on September 30, 2016. Additionally, some tender offers have offered purchases of shares for a much lower value.

If you are a BDCA investor and have incurred substantial losses, or feel stuck in an uncertain investment, you may be eligible to recover your losses. Speak with an attorney for more details.

Our REIT Lawsuit Investigations

Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. These REITs include:

If you invested in any of these REITs, or others, we may be able to help. Speak with a lawyer today to learn more.

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Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others.

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Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation.

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