News By Tag
News By Place
Strategic Storage Growth Trust, Inc. Losses?
By: Soreide Law Group PLLC
Strategic Storage is considered a non-traded real estate investment trust (non-traded REIT). Non-traded REITS can be problematic for investors who require liquidity because the investment is typically unable to be sold. Rather, investors obtain liquidity through a share redemption program. Yet, share redemption programs can be limited because investors are not always able to effect a full redemption of their shares.
The decision was reportedly made by Strategic Storage's board of directors to suspend not only its distribution reinvestment plan, but also its share redemption program. The board of directors apparently plans to address financial issues relating to liquidity. The suspension of distributions may have caused customers to experience illiquidity.
The news from Strategic Storage may come as a shock to investors who made the investment in Strategic Storage with expectations of receiving income. After all, Strategic Storage claims that its aim is improving cash flow and generating consistent cash distributions on a long-term basis.
It is possible that brokers or financial advisors have recommended Strategic Storage to customers without disclosing the risks and terms of the investment. And the risks of non-traded REITS do not just include illiquidity. Non-traded REITS often contain a lack of transparency concerning the types of assets that the real estate investment trust purchases.
Have you been inappropriately placed in Strategic Storage or other non-traded REITS by a broker or financial advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your losses. Soreide Law Group represents clients nationwide and only charges a fee upon the recovery of losses. Soreide Law has recovered millions for REIT investors nationwide. Call for your free consultation today. No fee if no Recovery and we advance all costs. For more information visit https://www.Securitieslawyer.com