CNL Healthcare Properties Liquidation

CNL Healthcare Properties Liquidation

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended CNL Healthcare Properties to investors. If you have suffered losses we may be able to help you to recover your losses by filing a FINRA Arbitration claim.    

According to its website, CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that “seeks to provide income and growth with a strategic focus on the seniors housing and healthcare sectors.”    

“Liquidation Opportunity” for CNL Healthcare Properties Shareholders  

Comrit Investments 1 LP reportedly extended a third-party tender offer in January 2024 to purchase 8.8 million shares of the REIT from investors for $3.94 per share. This may suggest losses for investors as the original purchase price was $10 per share. This offer may have been tempting to some investors as the REIT reportedly suspended its stock redemption plan in July 2018.    

This is not the first time Comrit and its affiliates have offered to buy shares of CNL. Comrit made two tender offers in 2023, in May 2023 and then again in July 2023. 

In July 2023, Comrit offered to purchase up to 8.8 million shares of common stock of CNL Healthcare at a price of $4.11 per share   

 Net Asset Value Continues to Decline  

CNL Healthcare Properties previously reported that its board of directors unanimously approved an estimated net asset value (NAV) per share of $6.28 per share as of Dec. 31, 2023.  This indicates a decline of $0.64, or 9.25% from the prior year.

The company’s previous estimated NAV was $6.92 per share as of Dec. 31, 2022. According to the company, the decline was due to “disrupted economic and transaction environments including persisting inflationary pressures,” due to rising interest rates.  

Recovery of Investment Losses   

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like CNL Healthcare Properties, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs.    

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.    

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.    

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

Class Action vs. Individual FINRA Arbitration Lawsuit 

People often wonder whether a large class action lawsuit is a better litigation option for them than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.   

Free Consultation

If you have invested in CNL Healthcare Properties and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.    

 The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.    

For more information on The White Law Group, please visit www.whitesecuritieslaw.com.