Did you lose money investing in CIM Income NAV REIT (f/k/a Cole Real Estate Income Strategy)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in CIM Income NAV REIT (f/k/a Cole Real Estate Income Strategy), a publicly registered non-traded real estate investment trust, at the recommendation of their financial advisor. If you suffered losses, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
UPDATE 8/24/2020: CIM Income NAV (f/k/a Cole Real Estate Income Strategy) has declared a net asset value per share for each of its four classes of common stock, as of July 31, 2020. The REIT offers four share classes: Class D, Class T, Class S and Class I shares. Class T and Class S shares are available to the general public, Class D shares are generally available for purchase through fee-based programs known as wrap accounts, and Class I shares are sold to institutional investors. The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of July 31, 2020. Shares were originally priced at $15.00 each. As of July 31, 2020, Class D shares had a net asset value per share of approximately $16.90 each. The previous month, Class D shares were valued at approximately $16.97. Class T shares had an NAV per share of approximately $16.49, and last month, the shares were valued at $16.56 each. Class S shares had an NAV per share of approximately $16.47. The previous month, Class S shares were valued at $16.54 each. Class I shares had an NAV per share of approximately $17.17, and the previous month, were valued at $17.23 each.
UPDATE 7/29/2020: CIM Income NAV (f/k/a Cole Real Estate Income Strategy) has limited the number of shares that can be redeemed through its share redemption plan. Effective immediately, monthly redemptions will be limited to shares whose total value is no more than 0.8 percent of the total net asset value as of the last calendar day of the previous calendar month. In any calendar quarter, redemptions will be limited to shares whose total value is no more than 2 percent of the aggregate NAV as of the last calendar day of the previous calendar quarter.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
CIM Income NAV REIT (f/k/a Cole Real Estate Income Strategy) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as CIM Income NAV REIT (f/k/a Cole Real Estate Income Strategy), and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as CIM Income NAV REIT (f/k/a Cole Real Estate Income Strategy), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in CIM Income NAV REIT (f/k/a Cole Real Estate Income Strategy) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
