Non-Traded REITs Frozen in 2026 | Investor Recovery Guide
A growing list of non-traded real estate investment trusts (REITs) have suspended share repurchase programs, frozen or cut distributions, or filed for bankruptcy protection in 2026. For investors who bought these products through a broker-dealer with the expectation of steady income and eventual liquidity, the current environment has left many holding shares they cannot sell at a price they cannot verify. Investors concerned about a non-traded REIT in their portfolio may want to speak with a FINRA arbitration attorney about their options for recovering losses. This page is intended as an updated roundup of the non-traded REITs The White Law Group is currently investigating, with links to our full write-up on each.
Why So Many Non-Traded REITs Are Under Pressure in 2026
Non-traded REITs are sold with no public trading market, meaning investors depend entirely on the sponsor’s own share repurchase program, periodic tender offers, or a future liquidity event to get their money out. When commercial real estate values come under pressure — from higher interest rates, refinancing stress, or sector-specific problems in office, hotel, or healthcare properties — sponsors often respond by suspending redemptions, cutting distributions, or reporting declining net asset values (NAV). Several sponsors have gone further in 2026, filing for Chapter 11 protection or disclosing loan defaults. Because these REITs are priced internally rather than by a public market, investors often have no independent way to verify that a stated NAV reflects the actual value of the underlying real estate.
Non-Traded REITs With Suspended Redemptions, NAV Declines, or Bankruptcy Filings
Below is a summary of non-traded REITs currently under investigation by The White Law Group. Each entry links to our full, regularly updated post on that offering.
Silver Star Properties REIT
Formerly Hartman Short Term Income Properties XX, Silver Star Properties filed a voluntary Chapter 11 petition on May 28, 2026, in the U.S. Bankruptcy Court for the Northern District of Texas. The filing disclosed four guaranteed loans totaling more than $65 million in default, plus a fifth defaulted loan tied to a property already posted for foreclosure. Investors who purchased shares at $10 through broker-dealers face a near-total loss, as the company has warned that existing equity may be impaired or cancelled. Read our full update on the Silver Star Properties bankruptcy.
InPoint Commercial Real Estate Income
InPoint suspended its share repurchase program and distribution reinvestment plan, and its commercial mortgage loan portfolio has continued to shrink, falling to approximately $333.4 million as of March 31, 2026, from $350.9 million at the end of 2025, per company disclosures. NAV per share has also continued to decline month over month. Read our full update on InPoint Commercial Real Estate Income.
Procaccianti Hotel REIT
Shares of Procaccianti Hotel REIT have reportedly traded on a secondary marketplace for as little as $4.25 per share, compared to the original $10.00 offering price — a decline of more than 55 percent. The gap between the sponsor’s stated NAV and the price investors can actually obtain on resale is a central issue in our ongoing investigation. Read our full update on Procaccianti Hotel REIT.
Cottonwood Communities
Cottonwood Communities temporarily halted subscriptions for its common stock and private preferred equity offerings in September 2023 after disclosing errors in its 2022 quarterly and annual financial reports. The White Law Group is investigating whether broker-dealers adequately disclosed these risks to investors who purchased Cottonwood offerings. Read our full update on Cottonwood Communities.
Black Creek Industrial REIT IV / Ares Industrial Real Estate Income Trust
Black Creek Industrial REIT IV, which later became Ares Industrial Real Estate Income Trust, reduced its NAV during a prior downturn and has been the subject of ongoing scrutiny over whether the illiquid, high-fee structure was suitable for the retail investors who purchased it. Read our full update on Black Creek Industrial REIT IV.
Moody National REIT
Moody National REIT and Moody National REIT II, both non-traded hospitality-focused REITs, are the subject of an ongoing White Law Group investigation into liquidation terms and whether investors received adequate disclosure of the risks involved. Read our full update on Moody National REIT.
National Healthcare Properties (formerly Healthcare Trust, Inc.)
National Healthcare Properties, previously known as Healthcare Trust, Inc., is a non-traded healthcare REIT under continued investigation by The White Law Group regarding investor losses and broker-dealer recommendations. Read our full update on National Healthcare Properties.
Bluerock Industrial Growth REIT
Bluerock Industrial Growth REIT is another non-traded industrial REIT under investigation for potential unsuitable recommendations by broker-dealers who sold the offering to retail investors. Read our full update on Bluerock Industrial Growth REIT.
Inland Real Estate Income Trust
Inland Real Estate Income Trust is a non-traded REIT that has faced investor losses tied to valuation and liquidity concerns typical of the sector, and remains under investigation by The White Law Group. Read our full update on Inland Real Estate Income Trust.
What Investors Should Watch For
Investors holding a non-traded REIT should review their account statements for signs of trouble: a suspended or reduced share repurchase program, a distribution that has been cut or paid partly from borrowed funds rather than operating income, a NAV that has declined sharply or not been updated recently, or public disclosures of loan defaults. None of these events alone proves wrongdoing by a broker, but they are often the first signal that an investment sold as a stable income vehicle carried more risk and less liquidity than was disclosed at the time of purchase.
Recovering Losses Through FINRA Arbitration
Broker-dealers are required to perform reasonable due diligence on any non-traded REIT before recommending it, and to ensure the investment is suitable for each investor’s specific financial situation and objectives. When a firm fails to meet that standard, or fails to adequately disclose the illiquidity, fees, and conflicts of interest built into these products, investors may have grounds to pursue a claim. Most disputes of this kind are resolved through FINRA arbitration, a process that generally takes 12 to 18 months and can result in recovery of principal, along with applicable interest and fees. If you hold shares in any of the REITs listed above, or another non-traded REIT facing similar issues, contact a FINRA arbitration attorney to discuss your options.
Frequently Asked Questions
Why can’t I sell my non-traded REIT shares?
Non-traded REITs have no public trading market. Investors can typically only redeem shares through the REIT’s own share repurchase program, which sponsors regularly suspend, limit, or reduce during periods of financial stress — leaving investors with few options to exit the investment.
How do I know if my non-traded REIT’s stated value is accurate?
Non-traded REITs set their own NAV, typically through periodic third-party appraisals, rather than through public market trading. Investors often have no independent way to confirm that this figure reflects what the shares could actually be sold for, which is why steep discounts on secondary markets are common once a sale becomes possible.
What can I do if my broker recommended a non-traded REIT that is now frozen or in bankruptcy?
If you believe the investment was unsuitable for your circumstances, or that the risks were not adequately disclosed at the time of purchase, you may be able to pursue a claim against the recommending broker-dealer through FINRA arbitration. An attorney can review your account statements and the disclosure documents you received to assess whether you have a claim.
Contact The White Law Group
The White Law Group is a national securities fraud law firm representing investors in claims against brokerage firms and financial advisors, with offices in Chicago and Seattle. If you have questions about a non-traded REIT investment or believe you may have a claim, contact The White Law Group for a free consultation at (888) 637-5510.
