The securities lawyers of Gana Weinstein LLP are investigating investor losses in American Finance Trust, a non-traded real estate investment trust (Non-Traded REIT). According to the firm’s website, American Finance Trust is designed to protect shareholder capital and produce stable cash distributions through the acquisition and management of diversified portfolio of commercial properties leased to investment grade tenants. The portfolio consists of core retail properties such as power centers and lifestyle centers.
According to a secondary market providers which allow investors to bid and sell illiquid products such as Non-Traded REITs, American Finance Trust sells for just under $15.50 per share – a significant loss on the original purchase price of $25.00.
Our firm often handles cases involving direct participation products (DPPs), private placements, Non-Traded REITs, and other alternative investments. These products are almost always unsuitable for middle class investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments providing perverse incentives for brokers to sell high risk and low reward investments.