Type Public | Founded 2012 | |
Industry real estate investment trust Website www.unitedrealtytrust.com Headquarters New York City, New York, United States | ||
United Realty Trust is a New York based real estate investment trust. The company is incorporated in Maryland and is a small Public non traded REIT.
Contents
History
The company was founded by Jacob Frydman and Eli Verschleiser in 2012 and approved for independent IPO by the U.S. Securities and Exchange Commission in January 2013. United Realty was run by Jacob Frydman who was its chairman and chief executive officer. The company invests in real properties, and joint ventures with others. United Realty branded itself as "The Dual Strategy REIT". In September 2015 the company announced the sale of its advisor to Suneet Singal from Sacramento-based First Capital. The Company then changed its name to First Capital Realty Trust.
Controversy
In May 2013, a few months after the company had its initial public offering, United Realty Trust halted its fundraising efforts, due to a violation of the Financial Industry Regulatory Authority net-capital regulations by Allied Beacon Partners the underwriting broker-dealer and dealer manager. Allied Beacon, an independent broker-dealer, lost a Financial Industry Regulatory Authority independent arbitration award of $1.6 million and didn't have the money on hand to pay, causing the violation. The company continued its IPO sales a few months later with an affiliated broker dealer Cabot Lodge Securities.
Verschleiser resigned and sued Frydman for allegedly illegally moving investor funds into his own account. There have since been a series of lawsuits, mostly over control of the company, between Frydman and Verschleiser.
In 2015, the former Chief Compliance officer filed charges alleging numerous fraudulent acts and illegal dealings by Frydman. He has since recanted his allegations.
Portfolio
United Realty Trust made its first acquisition in April 2013. The company bought a NYC homeless shelter and transient housing facility in Brooklyn NY for the sum of $22.9 million. United Realty has since focused its efforts on acquiring multifamily and medical office properties on the East Coast of the United States located in NJ and one property in South Carolina.