National investment fraud lawyers KlaymanToskes is investigating firms, brokers, and financial advisors that recommended or sold Hartman vREIT XXI (Silver Star Properties REIT) to their customers following the REIT’s suspension of investor distributions for the foreseeable future.
Investors that suffered losses in Hartman vREIT XXI (Silver Star Properties REIT) at brokerage firms and at the hands of a broker/financial advisor, are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss recovery options.
All consultations are free and we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Hartman vREIT XXI Inc., is a non-traded real estate investment trust (“REIT”) sponsored by Hartman Income REIT Management Inc. The REIT broke escrow on December 1st 2016, and has raised nearly $91.6 million from investors, as of September 30th, 2022. In the third quarter of 2022, Hartman vREIT XXI reported a year-to-date net loss of approximately $1.4 million.
In November 2022, the REIT’s Board of Directors approved the suspension of the company’s share redemption program (“SRP”) according to an 8-K SEC filing. The company’s Board came to the decision “in order to combat the impact of rising interest costs, inflation, [and] recession uncertainty on free cash flow.”
In a recent Letter to Stockholders, the company stated that it has historically delivered a 6% return to its investors and that its weighted average interest rate now equals approximately 7.3%, more than doubling from January 2022. Their total monthly debt service obligation has also more than tripled. As a result, the company states it is not able to support a distribution.
In the letter, Allen R. Hartman, Executive Chairman and Chief Executive Office of Hartman vREIT XXI Inc., states “while our revenue has increased, we do not anticipate a meaningful decline in interest rates for the 2023 calendar year. Because of that, it is not anticipated that [Hartman vREIT] XXI will be able to pay a distribution for the foreseeable future as we navigate these market conditions.”
KlaymanToskes believes that the brokers/advisors who recommended that their customers invest in Hartman vREIT XXI may have misrepresented the lack of liquidity and related risk-factors to their customers. Brokerage/advisory firms and their representatives have a duty to make suitable investment recommendations.
Further, brokers/advisors who make unsuitable recommendations to invest in a financial product in order to generate large commissions and enrich themselves have conflicts of interest, in violation of securities rules. Brokers/advisors that over concentrated their customers’ assets in Hartman vREIT XXI may be liable for any losses incurred.
If your broker/advisor made unsuitable investment recommendations in Hartman vREIT XXI, or in other similar investments, contact attorney Lawrence L. Klayman, Esq. for a free consultation at 888-997-9956 or lklayman@klaymantoskes.com.
Our firm offers services on a contingency basis, we do not collect attorney’s fees unless we make a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com