Investors in Strategic Realty Trust (“SRT”) may have FINRA arbitration claims, if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker. SRT, formerly known as TNP Strategic Retail Trust, is a non-traded real estate investment trust (REIT) which owns a portfolio of shopping centers that are anchored by such grocers as Publix, Kroger, and Wal-Mart. It is a non-traded REIT sponsored by Thompson National Properties, LLC.
A company known as Mackenzie Realty Capital has just extended a tender offer to purchase shares of the REIT for just $1.00 per share. According to Mackenzie’s letter to investors, SRT has given no indication when it might liquidate, and its charter does not require it to do so on any particular schedule.
Further, although SRT redeems shares on a quarterly basis, repurchases are limited to death or disability of a stockholder. SRT estimated the REIT’s net asset value per share as $5.86 as of April 2019, a 41.4% decline of from the original offering price of $10 per share. Shares of SRT have reportedly changed hands at even lower prices of between $2.30 and $2.50 a share in the limited secondary market.