Benefit Street Partners REIT Investment Losses

Benefit Street Partners REIT is a non-traded real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States.

Benefit Street is managed by BSP, a credit-focused alternative asset manager with over $10 billion in assets. Benefit Street was created in November 2012.

The REIT raised $786 million in investor equity prior to closing its offering in January 2016. As of September 2016, their portfolio consisted of 73 loans and 7 CMBS investments. 

According to an SEC filing, MacKenzie Realty Capital Inc., a non-traded business development company, has offered to purchase up to 500,000 shares of Benefit Street Partners Realty Trust common stock for up to $12.05 per share. The original price per share was $25.00. 

These sorts of investments pose serious risks to investors, especially those without experience in securities.Non-traded REITs can be illiquid because they are not traded on the public securities exchange. Additionally, commissions generated on non-traded REITs are higher than industry averages. These investments are only suitable for investors with a long-term investment horizon who are willing to accept high levels of risk. Many investors in REITs are unaware of the losses they are suffering until they try to sell their investments. 

Because non-traded REITs are not bought or sold on the public securities exchange, investors are often forced to use secondary markets and often get paid only a fraction of what they originally paid. Investors may be able to recover losses in these situations by filing an arbitration claim against the broker-dealer that recommended the investment. 

If you suffered losses investing in Benefit Street Partners REIT, please call us now at 866-827-3202 or complete our contact form.