United Realty Trust

United Realty Trust was a New York based real estate investment trust (REIT). The company is incorporated in Maryland and is a small Public non traded REIT.

United Realty Trust
TypePublic
Industryreal estate investment trust
Founded2012 (2012)
HeadquartersNew York City, New York, U.S.
Websitewww.unitedrealtytrust.com

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[1] in January 2013. United Realty was run by Eli Verschleiser as president and Jacob Frydman as chief executive officer. The company invested in real properties, and joint ventures with others. United Realty branded itself as[2] "The Dual Strategy REIT". In September 2015 the company announced the sale of its advisor to Suneet Singal from Sacramento-based First Capital.[3] 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.[4] 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.[5] 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.[6] There have since been a series of lawsuits, mostly over control of the company, between Frydman and Verschleiser.[7]

In 2015, the former Chief Compliance officer filed charges[8] alleging numerous fraudulent acts and illegal dealings by Frydman.[9] He has since recanted his allegations.[10]

In 2019 Frydman unsuccessfully sued Downey Brand, Sacramento’s largest law firm claiming the lawfirm that represented First Capital defrauded him.

Portfolio

United Realty Trust made its first acquisition in April 2013.[11] 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[12] located in NJ and one property in South Carolina.

References
  1. Wheatly, Mike (January 15, 2013). "United Realty Trust Launches IPO". realty biz news. Retrieved 24 May 2015.
  2. Alec, Parower (19 July 2012). "United Realty Follows Classic Mantra In Expansion". Real Estate Finance Intelligence. Archived from the original on 1 September 2012. Retrieved 4 September 2012.
  3. Kalinoski, Gail. "First Capital Makes a United Play". CP Executive.
  4. Kelly, Ray. "Nontraded REIT halts fundraising, seeks new broker-dealer. United Realty Trust shelves IPO until it can replace struggling Allied Beacon". Investment News. Retrieved 22 May 2015.
  5. NISH, CAITLIN. "Arbitration Award Forces Allied Beacon Out of Business". Wall Street Journal. Retrieved 30 July 2015.
  6. Chiem, Linda. "$200M UN Plaza Deal Suit Belongs In Arbitration, Court Hears". Law 360. Retrieved April 17, 2015.
  7. Kussin, Zachary. "Feud between United Realty CEO and ex-president turning ugly". The real deal. Archived from the original on 2015-07-07. Retrieved February 20, 2020.
  8. Kelly, Ray. "Former compliance officer sues Cabot Lodge owner. Jacob Frydman is focus of complaint that alleges plaintiff was fired for reporting 'certain improprieties' to Finra". Investment News. Retrieved May 22, 2015.
  9. Maurer, Mark. "United Realty exec claims he was fired for discovering illegal deals - REIT's former chief compliance officer is suing CEO Jacob Frydman". Retrieved May 26, 2015.
  10. Kelly, Ray. "In a twist, ex-Cabot Lodge chief compliance officer recants". Investment News. Retrieved May 26, 2015.
  11. "United Realty Trust acquires 86,360 s/f Tilden House for $22.9 million". New York Real Estate Journal. Retrieved May 22, 2015.
  12. LeGacy, Dave. "Non-Traded REIT Acquires Triple-Net Leased Medical Headquarters". The DI Wire. Retrieved May 22, 2015.
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