Cole Office & Industrial REIT (CCIT II) is a private placement alternative investment. These are typically risky, complex securities, and in this instance, they were often marketed to retail investors as a non-traded real estate investment trusts (REITs) as if they were safe income-producing investments. The material risks of the product and the investment were not always adequately disclosed to investors.
Cole Office and Industrial REIT (CCIT II) invests primarily in single-tenant office and industrial properties under long-term leases.
It is believed that the recent Covid-19 events will have an impact on the property valuations and leased properties that might be rented to tenants who cannot meet the leases. Investors made original investments at or near the $10.00/share price range.
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The sponsor reported valuation currently remains near that price level.
Cole Office and Industrial REIT (CCIT II) reported that many investors sought redemption in the last quarter, and only a very small percentage of the overall redemptions requests were fulfilled. Nearly 12 million shares submitted for redemption were not able to be liquidated. In light of the events during the last quarter, it is anticipated than even more investors than those previously unfulfilled redemption requests are seeking liquidity.
Mackenzie Realty Capital recently initiated a tender-offer in which they are buying Cole Office & Industrial REIT (CCIT II) shares for $4.50/share. For investors who paid more than double that price, this may represent a 50% or more loss that was unexpected.
What Should Cole Office & Industrial REIT (CCIT II) Investors Do?
If you are an investor that was sold Cole Office and Industrial REIT (CCIT II) based on promises of an income stream, or you received inadequate (or non-existent) disclosures about your non-traded real estate investment trust (REIT) product investment or never had adequate disclosures of the complexity or risks of these investments. You have now incurred losses; you should consider your options and next steps.
As an investor, you can wait to see if the investment comes back. However, it would be best if you kept in mind that the statute of limitations, laws, and rules could impact your case.
Broker-dealer firms making the investment product available, offering and recommending these types of investments, had internal duties and responsibilities that typically include conducting thorough research and due diligence effort before making the investment product available. Some broker-dealer firms further fail (again) by not properly and adequately supervise the recommendations and sale of the investments to investors.
Several recent cases and the Financial Regulatory Authority (FINRA) regulators suggest that recommendations of illiquid, risky, private placement alternative investments similar not always appropriate for investors who may need liquidity.
For many Cole Office and Industrial REIT (CCIT II) investors, a good option includes filing a customer dispute with FINRA, an alternative form of dispute resolution that is private, and faster than traditional court lawsuits. Also, there are typically no depositions, as it is almost entirely paper-based discovery.
You should contact experienced investment fraud lawyers who can review the status of these and similar investments in your accounts, properly advise you regarding your rights and options, and help you by taking steps to help you recover your investment losses.
Experienced attorneys at Haselkorn & Thibaut, P.A., are available for a free consultation as a public service. Call today for more information at 888-628-5590 or visit our website and email us from there at www.investmentfraudlawyers.com.
The sole purpose of this press release is to investigate the manner in which Cole Office and Industrial REIT (CCIT II) were approved for sale by FINRA broker-dealers to investor clients, including new product reviews, due diligence, as well as the sales practice and supervision issues related to the recommendations and sales of AMJL and the transactions with investors related to same.