Peakstone Realty Trust (NYSE: PKST), previously Griffin Realty Trust, is a complex and potentially risky investment that may not be suitable for inexperienced retail investors. If your financial advisor misrepresented Peakstone Realty Trust as a safe, liquid, and/or short-term investment, you may be eligible for compensation.
Haselkorn & Thibaut, a leading investment fraud law firm, is here to help. We have over 50 years of experience and 98% success rate. Please call us at 1-800-856-3352 for a free consultation on recovery loss options.
Peakstone Realty Trust: An Overview
Peakstone Realty Trust, previously known as Griffin Realty Trust, is a publicly registered, non-traded real estate investment trust (REIT) that was formerly known as Griffin Capital Essential Asset REIT. According to its website, the multibillion-dollar REIT owns and manages a diversified portfolio of strategically located, high-quality office and industrial properties that are predominantly net leased to creditworthy and nationally recognized single tenants. The REIT changed its name to Peakstone Realty Trust in March 2023 before being listed on the New York Stock Exchange.
As of February 2023, Peakstone Realty Trust’s portfolio contained the following:
- 79 properties are generating $243 million in yearly in-place rent.
- 24% of these properties were industrial space.
- 76% of them were used as offices.
- The portfolio has a 95.1% occupancy rate.
Peakstone Realty Trust, headquartered in El Segundo, California, manages its assets using a net lease strategy. This means that tenants typically cover the costs of a rental property, relieving the landlord of the burden of handling numerous bills.
Is Investing in Peakstone Realty Trust Risky?
The prospectus for Griffin Capital Essential Asset REIT II describes the stock as a risky investment. It warns that investing in our common stock “involves substantial risks and is only appropriate for those with sufficient financial resources, desiring a relatively long-term investment and not needing liquidity from their investment.” It can be challenging for you to sell your shares because there won’t initially be a public market for them and we can’t guarantee that one will emerge.
The prospectus advises investors seeking short-term investments, assured income, or liquidity to avoid the REIT. Additional eligibility requirements include a minimum net worth of $250,000 or a gross yearly income of at least $70,000 and a net worth of at least $70,000.
Has Peakstone Realty Trust’s Value Decreased?
In August 2022, Peakstone Realty Trust announced that its updated net asset value was $7.42 per share, down from $9.10 per share the previous year. The company attributed the decline to falling office property valuations, while noting that the value of its industrial buildings had increased.
Why Did Peakstone Realty Trust SeLL its Properties?
In August 2022, Peakstone Realty Trust announced a “strategic monetization process.” This involved spinning off a new public company that would own a curated portfolio of primarily industrial assets and certain office assets. The trust would then sell its remaining portfolio of largely office assets over time and distribute net proceeds to stockholders. The final step would be to “completely liquidate and discontinue operations.”
Did Peakstone Realty Trust Go Public?
Peakstone Realty Trust went public on the NYSE in March 2023. Prior to this listing, it performed a “1-for-9 reverse share split with regard to each class of its common shares.” Its stock was trading at $21.20 a share as of May 16, 2023 at 12:46 PM.
Losses at Peakstone Realty Trust
Investors may have sustained significant losses since making their first investments in Peakstone Realty Trust. The company has suspended both its distribution reinvestment plan and share distribution program in recent years, in addition to witnessing losses in net asset value. Investors who were not made aware of the risks associated with the product may be eligible to recoup losses.
Contact Haselkorn & Thibaut for Your Case Today
Haselkorn & Thibaut, InvestmentFraudLawyers.com, represents investors nationwide making claims against financial advisors and investment companies. If you or a loved one has lost money investing with Peakstone Realty Trust, please call us at 1-800-856-3352 or fill out our contact form for a free, private consultation. With over 50 years of experience, we have recovered millions for investors and have a 98% success rate. Remember, there’s no recovery, no fee.