SmartStop Self Storage REIT investors face major financial setbacks as the company’s shares trade at just $9.50 per share, far below their estimated value of $15.25. This real estate investment trust, which filed for a public offering in March 2025, planned to sell 27 million shares priced between $28.00 and $36.00 each.
Despite a one-for-four reverse stock split that pushed the estimated Net Asset Value (NAV) to $58.00 per share, actual market prices tell a different story. The company has twice suspended its share redemption program, raising red flags about its financial health.
Haselkorn & Thibaut is now investigating claims against brokers who may have wrongly pushed these investments. For many investors, the losses are real and growing. Legal options exist through FINRA arbitration.
The path to recovery starts with knowing your rights.
Key Takeaways
- SmartStop Self Storage REIT shares trade at $9.50 on the secondary market, well below their estimated value of $15.25 per share.
- The company suspended its share redemption program twice, trapping investor money for potentially years instead of months.
- Haselkorn & Thibaut offer free case evaluations by calling 1-888-784-3315 .
- Legal claims against brokers focus on unsuitable investment recommendations, hidden risks, and failure to conduct proper due diligence.
Reasons for Investor Losses in SmartStop Self Storage REIT
Investors in SmartStop Self Storage REIT faced major losses due to several market factors and company decisions. The REIT’s share value dropped sharply while management limited investors’ ability to sell their holdings.
Decline in Net Asset Value
SmartStop Self Storage REIT investors have faced major losses due to the dramatic decline in net asset value (NAV). The company’s shares now trade at just $9.50 on the secondary market, far below their estimated NAV of $15.25 per share.
This significant drop represents a substantial loss for many investors who purchased shares at higher prices. The company’s financial troubles became more apparent after a one-for-four reverse stock split that artificially inflated the NAV from $14.50 to $58.00 per share without adding real value.
Reverse stock splits often mask financial distress while creating misleading higher share prices for investors, notes securities fraud experts tracking the SmartStop situation.
The gap between current trading prices and actual value shows the severity of the problem. In July 2022, Comrit Investments 1 LP offered to buy shares at $12.03 each, which was 20% below the estimated NAV at that time.
This discount highlights the market’s lack of confidence in SmartStop’s stated valuations and raises serious questions about broker-dealer due diligence in recommending these investments to clients.
Suspension of Share Redemption Program
SmartStop’s recent suspension of their share redemption program creates serious problems for investors. This marks the second time the company has frozen this vital liquidity option, raising red flags about financial stability.
For many investors, this suspension means they cannot sell their shares back to the REIT when needed. The Securities and Exchange Commission views such actions as potential warning signs of deeper issues within non-traded REITs.
Investors now face prolonged capital lockup periods that could last years rather than months. Without access to redemption programs, shareholders lose their main exit strategy in these illiquid investments.
Financial advisors often fail to explain these risks during the initial sales process. The lack of transparency in reported Net Asset Values makes it even harder for investors to understand the true worth of their holdings during these suspension periods.
Legal Options for Affected Investors
Investors who lost money in SmartStop Self Storage REIT have clear legal paths to seek recovery. FINRA arbitration claims offer a direct route to challenge brokers who may have failed their duty of care when recommending this investment.
Filing Individual FINRA Arbitration Claims
Investors with SmartStop Self Storage REIT losses should consider filing individual FINRA arbitration claims rather than joining class action lawsuits. FINRA provides a faster path to possible recovery compared to court litigation.
The legal grounds for these claims often include broker misconduct such as unsuitable investment recommendations, material misrepresentations, and breaches of fiduciary duty. Brokerage firms may be held liable for failing to conduct proper due diligence or supervise their representatives who sold SmartStop investments.
Haselkorn & Thibaut is now investigates claims against broker-dealers who improperly recommended SmartStop Self Storage REIT to their clients. These legal actions focus on negligence and lack of proper supervision by financial firms.
Affected investors can seek free case evaluations by calling 1-888-784-3315 to discuss their specific situation. Most securities attorneys handle these cases on a contingency basis, meaning no upfront legal fees for the investor.
Class Action Lawsuits vs. Individual Legal Actions
Class action lawsuits combine many small claims into one legal case. This option works best for investors who lost smaller amounts in SmartStop Self Storage REIT. The court process handles these cases through civil procedure rules, with all victims sharing legal costs and any settlement money.
Individual FINRA arbitration claims offer a better choice. This process lets investors pursue their specific damages against broker-dealers who sold them unsuitable investments.
The burden of proof rests on the investor to show how the brokerage firm failed to meet the standard of care.
Steps to Recover SmartStop Self Storage REIT Losses
Investors who suffered losses in SmartStop Self Storage REIT can take action to recover their money. Haselkorn & Thibaut can help clients file claims against brokers who sold these risky investments.
Consulting a REIT Fraud Lawyer
A REIT fraud lawyer can review your SmartStop Self Storage case and explain your legal rights. Haselkorn & Thibaut offers free consultations at 1-888-784-3315 for investors who lost money. These experts focus on securities fraud claims and know how to fight broker-dealers who sold risky investments.
Haselkorn & Thaibut brings over 50 years of experience to help recover investor losses. Their team can file FINRA arbitration claims against the firms that sold SmartStop shares.
You can reach them at 1-888-784-3315 to discuss your options. A good lawyer will check if proper disclosures were made about the REIT’s valuation risk and potential illiquidity before you invested.
Pursuing Compensation from Brokerage Firms
Investors who lost money in SmartStop Self Storage REIT can seek payment from brokerage firms through FINRA arbitration. These firms may be legally responsible if they failed to research the investment or broke their duty to protect clients.
Haselkorn & Thibaut is now looking into claims against brokers who pushed SmartStop investments without proper care. Legal grounds for claims include false statements, hiding facts, pushing too many risky investments, breaking trust duties, and poor oversight.
Many SmartStop investors face losses because brokers sold them unsuitable investments. Brokerage companies must follow strict rules when recommending financial products. If your broker suggested SmartStop without explaining the risks or knowing your financial goals, you might recover damages.
Filing a claim requires proof that the firm acted wrongly and caused your losses – an expert witness can help build this case.
Conclusion
SmartStop Self Storage REIT investors face serious financial harm through declining asset values and frozen redemption programs. Legal action through FINRA arbitration offers a path to recovery that many find more effective than class action suits.
Your broker has a duty to recommend suitable investments – their failure to warn about non-traded REIT risks could make them liable for your losses. A securities attorney can review your case at no upfront cost and help pursue claims against negligent financial professionals.
The clock is ticking on your right to file claims, with strict deadlines that limit your recovery options. Many SmartStop investors have already secured compensation through individual legal actions against the firms that sold them these risky investments.
