FRP Student Housing B LP: Investor Alert

Securities Investigation: FRP Student Housing B LP   

Are you concerned about your investment in FRP Student Housing B LP? If so, the securities attorneys at the White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.  

FRP Student Housing B LP, an investment fund, filed a Form D to raise capital from investors in 2018. The total offering amount sold to investors was purportedly $5,040,000.  

The Risks of Investing in Private Placements and Student Housing

The White Law Group is investigating potential claims involving brokerage firms who may have improperly recommended high-risk private placements to investors. Investments such as these are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.  

Private placements are often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. 

Additionally, investing in student housing carries considerable risk due to its heavy reliance on a single demand driver: the local college or university. Recent events, such as the COVID-19 pandemic, have starkly illustrated the vulnerability of student housing, with universities shutting down and causing significant spikes in vacancy rates.

This led to decreased or halted cash flow distributions for investors, impacting their investments. Many students returned home, reducing the demand for student housing and creating financial challenges for student housing projects. It’s essential for investors to proceed cautiously and recognize the genuine risks associated with investing in student housing, as evidenced by numerous foreclosure tales within this sector.

Broker Due Diligence

Brokerage firms have two main duties in recommending investments.  First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.  

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.  

Free Consultation

If you invested in FRP Student Housing B LP, and would like to speak with a securities attorney about your options, please call The White Law Group at 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.