Bluerock Residential Growth REIT Investigation

Bluerock Residential Growth REIT

Have you suffered losses investing in Bluerock Residential Growth REIT? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to a Form-D filed with the SEC, Bluerock Residential Growth REIT was organized in 2014 by Bluerock Real Estate, LLC. Bluerock Real Estate, LLC, according to its website, is a national real estate investment firm headquartered in Manhattan with regional offices in Southfield, Michigan, Boise, Idaho and Newport Beach, California.

The Risks of Non-Traded REITs

A non-traded real estate investment trust (REIT) such as Bluerock is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar  to the structure mutual funds provide for investment in stocks.

Non-traded REITs are complex and high risk investments that are really only suitable for sophisticated investors. It is the duty of the brokerage firm to perform due diligence on any investment and to ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

Apart from the challenge of limited liquidity, another issue often linked with REIT recommendations is the substantial sales commissions brokers typically receive – sometimes reaching as high as 15%. Brokers are required to align their investment advice with their clients’ risk tolerance, net worth, investment goals, and market experience. Regrettably, the allure of hefty sales commissions might motivate some brokers to propose unsuitable investments. 

Broker-dealer firms are obligated to conduct thorough due diligence on any investment they endorse, ensuring that all recommendations align with the investor’s needs. Failure to adhere to these standards could hold firms accountable for losses in a FINRA arbitration claim. 

The White Law Group is actively investigating potential securities claims involving broker-dealers who might have inappropriately advised investors on non-traded REITs. The firm has represented numerous investors who incurred losses due to investments such as Bluerock Residential Growth REIT.

Free Consultation with Securities Attorneys

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Bluerock Residential Growth REIT or another Bluerock investment, please contact 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, Washinton. For more information on the firm, visit www.WhiteSecuritiesLaw.com.