Eileen is involved in the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.
Steadfast Apartment/ Income REIT Lawsuit Investigation
Steadfast Apartment REIT, Steadfast Apartment REIT III, and Steadfast Income REIT proposed merger
Gibbs Law Group is investigating Steadfast Apartment and Steadfast Income REITs on behalf of REIT investors. Two Steadfast Capital Markets Group investments, Steadfast Apartment REIT III and Stira Alcentra Global Credit Fund, reportedly suspended their offerings. Then, in 2019, Steadfast Apartment REIT (STAR), Steadfast Apartment REIT III (STAR III), and Steadfast Income REIT (SIR) announced a proposed merger of the funds. Many investors reportedly remain stuck in their Steadfast investments.
If you are a Steadfast REIT investor, you may have a claim. Speak with one of our securities lawyers to learn more about your options.
Invest in Steadfast REITs?
You may have a claim. Get a free and confidential consultation.
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Steadfast Apartment, Steadfast Apartment III, and Steadfast Income REIT Proposed Merger
In August of 2019, three Steadfast funds (STAR, STAR III, and SIR) announced proposed mergers. On December 19, 2019, the REITs filed their respective definitive proxies with the SEC, seeking shareholder approval for the mergers. If approved, Steadfast Apartment REIT is expected to acquire Steadfast Apartment REIT III and Steadfast Income REIT by the first quarter of 2020. The newly combined Steadfast Apartment REIT would then own 70 properties and approximately $3.2 billion in total assets.
Under the terms of the mergers, Steadfast Income REIT shareholders are expected to receive 0.5934 shares of Steadfast Apartment common stock. This means that shareholders who bought their Steadfast Income shares at $10 per share, will now only have an amount equivalent to $9.40 per share. Additionally, Steadfast Apartment REIT III shareholders are expected to receive 1.43 STAR shares, or $22.65 per Steadfast Apartment REIT III share. Steadfast Apartment III shares were originally sold for $25 per share.
Many investors have also reported feeling stuck in their Steadfast investments, and the mergers are not expected to constitute a liquidity event for STAR III and SIR shareholders.
Steadfast Capital Market Group offerings include:
- Steadfast Apartment REIT III
- Steadfast Apartment REIT
- Steadfast Income REIT
- Stira Alcentra Global Credit Fund
If you invested in any Steadfast REITs, you may have a claim. Contact us today to learn how you may recover your investment losses.
Steadfast REIT Investors Reportedly Placed In Other Bad Investments
We have heard reports that many Steadfast REIT investors were also placed in other risky investments by their stockbroker or financial advisor. These risky private placements include non-traded real estate investment trusts (REITs) and business development corps (BDCs).
A few of the risky investments seen with Steadfast investors include:
- Northstar Healthcare Income
- GPB Capital
- Business Development Corporation of America
- FS Energy and Power
- Cole Credit Property Trust III (“CCPT III”)
- Phillips Edison & Co.
- Healthcare Trust, Inc
Many investors in the funds listed above are reportedly stuck in their non-traded REITs.
The Dangers of REIT Investments
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.
Many firms have notoriously sold REITs to investors. If you invested in any Steadfast REITs 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 REIT fraud options.
Our REIT Lawsuit Investigations
Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. These REITs include:
- Northstar Healthcare Income REIT
- Hospitality Investors Trust
- Benefit Street Partners Realty Trust
- FS Credit Real Estate Income Trust–I
- Cole Credit Property Trust III (“CCPT III”)
- The Parking REIT
- New York City REIT
If you invested in any of these REITs, or others, we may be able to help. Speak with a lawyer today to learn more about our REIT lawsuits.
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