Peakstone Realty Trust, formerly known as Griffin Realty Trust, is an internally managed, publicly registered real estate investment trust (REIT) that primarily owns and operates a portfolio consisting primarily of single-tenant industrial and office properties.
In March 2023, the company changed its name from Griffin Realty Trust to Peakstone Realty Trust in anticipation of its intended listing on the New York Stock Exchange (NYSE). On April 13, 2023, Peakstone Realty Trust successfully listed its shares on the NYSE under the ticker symbol “PKST.”
Griffin Realty Trust, a publicly registered and non-traded real estate investment trust (REIT), has recently faced a number of complaints from investors who allege that their financial advisors and broker dealers misrepresented the REIT as a very conservative, short-term, and liquid investment.
This has resulted in many investors suffered losses investing in Griffin Realty and are seeking legal assistance to recover their losses.
If you’ve experienced investment losses with Peakstone Realty Trust, Haselkorn & Thibaut, InvestmentFraudLawyers.com, can help. Our law firm specializes in fighting for investors nationwide and has a 98% success rate. With over 50 years of experience and offices in Florida, New York, North Carolina, Arizona, and Texas, we have recovered millions for investors.
Call us now for a free consultation at 1-800-856-3352. No recovery, no fee.
This article will discuss the background of Griffin Realty Trust, Peakstone Realty Trust, complaints, and what investors can do to recover their losses.
Background on Peakstone Realty Trust (NYSE: PKST), Griffin Realty Trust, Cole Office & Industrial REIT
Table of Contents
Peakstone Realty Trust (NYSE: PKST) is an internally-managed, industrial and office real estate investment trust (REIT) that is listed on the New York Stock Exchange. The exchange listed information can be found in its Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. It was formerly known as Cole Office & Industrial REIT (CCIT II), Inc. Griffin Realty Trust, formerly known as Griffin Capital Essential Asset REIT, is a complex and risky investment product that may not be suitable for inexperienced retail investors . In recent times, Griffin Realty Trust has suspended its share redemption program and its distribution reinvestment plan. These events have led to investor dissatisfaction and a growing number of complaints.
Decline in Net Asset Value
In 2022, Griffin Realty Trust Inc reported a decline in its net asset value (NAV) per share from $9.10 to $7.37, an 18% decrease. The company attributed this decline to the decrease in the value of office properties.
Board of Directors Refreshment
In March 2023, Peakstone Realty Trust announced significant changes to its board of directors in anticipation of the NYSE listing. Kevin A. Shields, Kathleen S. Briscoe, Ranjit M. Kripalani, James F. Risoleo, and J. Grayson Sanders each communicated their intention to resign.
Financial Advisor Complaints
Despite its inherent risks and complexities, investors have reported that their financial advisors recommended Griffin Realty Trust as a conservative, short-term, and liquid investment. Meaning investors that it would continue to pay income and not lose value. Currently, there is no Griffin Realty Trust redemption. The net asset value is now tied to the stock which is a substantial loss for many investors.
As a result, some investors have experienced significant losses, leading to increasing legal claims against negligent brokers and brokerage firms.
Risks and Problems with Non-traded REITS
Non-traded REITs pose various problems and risks for investors compared to publicly traded REITs. Some of these issues include:
- Lack of liquidity: Non-traded REITs are illiquid, meaning that they are not traded on a stock exchange and can be difficult to sell or redeem, which may be problematic for investors needing to access their funds quickly.
- Lack of share value transparency: Since non-traded REITs are not publicly traded, there is no market for their shares, making it challenging to determine their true value. Some non-traded REITs will reveal all assets and value after 18 months of their offering, but this may not be comforting for investors who prefer more frequent updates on their investments’ worth [2].
- Use of offering proceeds and borrowings to pay distributions: Non-traded REITs may use the money from investors and borrowings to pay distributions, reducing the value of the shares and the cash available for the REIT to purchase real estate assets.
- Fees and expenses: All REITs come with fees and expenses, which can impact the overall return on investment. Non-traded REITs may have higher fees than publicly traded ones due to their complex structures and limited marketability.
- Market risk: Non-traded REITs, like other investment vehicles, are subject to market risk, which can result from factors such as recessions, interest rate changes, and natural disasters. Market risk can impact the entire financial market and may be difficult to eliminate through diversification.
- Regulatory changes: The North American Securities Administrators Association is considering new rules limiting the amount an investor can buy into a non-traded REIT and prohibiting such funds from paying out distributions based on borrowed money or offering proceeds. These potential changes could affect the attractiveness and returns of non-traded REITs for investors.
In conclusion, investors should carefully consider the risks and problems associated with non-traded REITs before investing, including liquidity, transparency, distribution funding practices, fees, market risks, and potential regulatory changes.
Investor Recovery Options
Investors who have suffered losses due to investing in Griffin Realty Trust may be able to recover their losses through legal means. One possible option is to file a Financial Industry Regulatory Authority (FINRA) Dispute Resolution Claim. A FINRA securities arbitration is a way investors can recover financial losses that are typically faster and less costly than traditional lawsuits.
If you’ve experienced investment losses with Peakstone Realty Trust, Haselkorn & Thibaut, InvestmentFraudLawyers.com, can help. Victims of national securities fraud often think losses are the result of the market.
Our law firm specializes in fighting for investors nationwide and has a 98% success rate. With over 50 years of experience and offices in Florida, New York, North Carolina, Arizona, and Texas, we have recovered millions for investors.
Call us now for a free consultation at 1-800-856-3352 or email us at [email protected]. Remember, no recovery, no fee.
In light of the growing number of complaints, the Griffin Realty Trust board has urged its stockholders to consult with their own financial, tax, and other advisors and/or brokers to consider their individual circumstances and the considerations set forth in the tender offer documentation.
Conclusion
Investors who have suffered losses from investing in Griffin Realty Trust should explore their legal options to recover their losses. Consulting with experienced law firms and filing a FINRA Dispute Resolution Claim may provide investors with a pathway to recovery. It is essential that investors consult with their financial advisors and consider their individual circumstances before making any decisions.
Peakstone Realty Trust FAQs
What does Peakstone Realty Trust do?
Peakstone Realty Trust is a publicly registered, internally managed real estate investment trust (REIT) that is listed on the NYSE under the ticker symbol PKST. The company was formerly known as Griffin Realty Trust.
Peakstone Realty Trust owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties.
These properties are mainly net leased to creditworthy and nationally recognized tenants under long-term agreements, often with contractual rent escalations. In their own words, they describe themselves as “America’s Blue-Chip Landlord™️”.
What is the tender offer for Griffin REIT?
There is no longer a tender offer for Griffin REIT. Griffin Realty Trust, now known as Peakstone Realty Trust, has been the target of multiple unsolicited tender offers.
In September 2022, MacKenzie and its affiliates launched a tender offer to purchase up to 1 million shares of Griffin Realty Trust for $4.09 per share in cash. Around the same time, CMG Partners extended an unsolicited tender offer to purchase up to 500,000 Class E shares for $3.76 per share in cash.
How much is Griffin Realty Trust worth?
The current share price of Peakstone Realty Trust (NYSE: PKST) is $24.78. Prior to the public listing, it was a non-traded REIT.
What is the E symbol for Griffin Realty Trust?
The ticker symbol for Griffin Realty Trust Class E shares is “GCEA”. Please note that Griffin Realty Trust changed its name to Peakstone Realty Trust in March 2023. It’s important to note that the current ticker symbol “PKST” is under the new name, Peakstone Realty Trust.
