CAI Reno Hotel Partners Fund: Investor Lawsuit Investigation

CAI Reno Hotel Partners Fund: Securities Investigation — featured by top securities fraud attorneys, The White Law Group

Update: Investors in the CAI Reno Hotel Partners Fund and related offerings have faced prolonged illiquidity and project setbacks tied to the stalled redevelopment of the former Harrah’s Reno into “Reno City Center.” Following a Chapter 11 filing in 2024 and subsequent ownership changes, many investors report valuation concerns and lack of clear exit options. If your advisor recommended these private placements and you suffered losses, you may have recovery options.

What We’re Investigating

The White Law Group is investigating potential claims on behalf of investors who purchased private real estate offerings sponsored or promoted by CAI Investments, including:

• CAI Reno Hotel Partners Fund
• CAI Reno Hotel OZ Fund
• CAI Las Vegas Hotel Partners Fund
• CAI Tempe Hotel Partners Fund

According to SEC filings, CAI raised capital through Form D private placement exemptions.

Project Background & Timeline (Reno City Center)

• 2020: CAI Investments and Gryphon Private Wealth Management acquire Harrah’s Reno for conversion to a mixed-use project (“Reno City Center”).
• 2023: CAI sells its stake to Gryphon; financing and tenancy challenges emerge.
• Feb. 16, 2024: The project files for Chapter 11 bankruptcy protection.
• 2025: Reports describe efforts under changed ownership/control to revive and rebrand the site; investors remain concerned about liquidity and valuation.

Risks of Reg D Private Placements & OZ Real Estate Funds

Private placement and Opportunity Zone investments often come with risks not adequately explained to retail investors:

• Illiquidity: No public market; secondary options may involve steep discounts.
• Valuation Uncertainty: Estimates are updated infrequently and may decline sharply.
• High Fees & Commissions: Significant upfront selling costs can reduce investor returns.
• Project/Execution Risk: Construction delays, financing challenges, or bankruptcy can erode distributions and principal.

Broker Duties & Potential Claims

Broker-dealers are obligated to conduct due diligence and ensure recommendations are suitable for each client’s risk tolerance, age, financial goals, and liquidity needs. Where firms fail to uphold these duties, investors may pursue recovery through FINRA arbitration.

Class Action vs. Individual FINRA Arbitration

• Class actions combine many smaller claims but typically limit individual investor control.
• Individual arbitration may be more effective when losses exceed $100,000, as it allows investors to pursue tailored claims and potentially larger recoveries.

Free Consultation

If you invested in CAI Reno Hotel Partners, the CAI Reno Hotel OZ Fund, or another CAI Investments offering and suffered losses, call The White Law Group at 888-637-5510 for a free consultation. Our attorneys represent investors nationwide on a contingency fee basis.

FAQs

1) Is the Reno City Center project still in bankruptcy?
Yes. The project filed for Chapter 11 in February 2024. Public reports in 2025 suggest attempts to revive the project under changed ownership, but status updates remain uncertain.

2) Can I sell my CAI investment?
These investments are illiquid. Transfers often require sponsor approval, and secondary markets are limited and typically involve steep discounts.

3) How do I recover losses in CAI Reno Hotel Partners?
Many investors pursue FINRA arbitration claims against the recommending brokerage firms for unsuitable advice or inadequate due diligence. An attorney can review your documents and circumstances to evaluate a potential claim.

About The White Law Group

The White Law Group, LLC is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We have helped hundreds of investors nationwide recover losses through FINRA arbitration and other legal forums.