Bluerock Residential Growth REIT Lawsuit Investigation

Bluerock Residential Growth REIT Investigation, Featured by Top Securities Fraud Attorneys, The White Law Group

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.

Bluerock Residential Growth REIT Background

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

The REIT was marketed as a way for retail investors to participate in real estate investment, primarily focused on apartment communities and multifamily housing.

Blackstone Acquisition and Spin-Off

On October 6, 2022, affiliates of Blackstone Real Estate completed the acquisition of Bluerock Residential Growth REIT, Inc. for $3.6 billion in an all-cash deal.

• Acquirer: Affiliates of Blackstone Real Estate
• Target: Bluerock Residential Growth REIT, Inc.
• Date: October 6, 2022
• Value: $3.6 billion, at $24.25 per share (all cash)
• Spin-Off: In conjunction with the acquisition, Bluerock spun off its single-family rental business into a separate, publicly traded REIT called Bluerock Homes Trust, Inc. (BHM).

For investors, the acquisition and spin-off may have affected the value and liquidity of their shares, and in some cases, investors may not have received the returns they were led to expect when purchasing the non-traded REIT through their broker.

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. Non-traded REITs are considered complex and high-risk investments, generally only suitable for sophisticated investors.

Key risks include:

• Lack of liquidity: Shares are not traded on a public exchange.
• High commissions: Sales loads can reach as high as 15%, incentivizing brokers to recommend unsuitable products.
• Valuation risk: Shares often experience steep devaluation when liquidity events occur.
• Suitability issues: Brokers are required to ensure investments align with an investor’s financial situation, risk tolerance, and objectives.

Broker-dealer firms that fail to perform adequate due diligence or recommend unsuitable REIT investments may be liable for losses through FINRA arbitration.

The White Law Group is actively investigating claims involving Bluerock and other non-traded REIT investments that may have been improperly sold to retail investors.

Frequently Asked Questions (FAQ)

What happened to Bluerock Residential Growth REIT?
Bluerock Residential Growth REIT was acquired by affiliates of Blackstone Real Estate in a $3.6 billion all-cash transaction that closed on October 6, 2022. Shareholders received $24.25 per share in cash as part of the deal.

What is Bluerock Homes Trust (BHM)?
As part of the transaction, Bluerock spun off its single-family rental business into a new, publicly traded REIT called Bluerock Homes Trust, Inc. (BHM). Investors in the original REIT may have also received shares in BHM.

Why are non-traded REITs like Bluerock considered risky?
Non-traded REITs carry risks such as illiquidity, high fees, valuation uncertainty, and limited transparency. They may not be suitable for many retail investors, especially those seeking short-term access to capital.

Can I recover losses from investing in Bluerock REIT?
Possibly. If your financial advisor or brokerage firm recommended Bluerock without fully disclosing the risks, or if the investment was unsuitable for your financial situation, you may be able to pursue a claim through FINRA arbitration.

Free Consultation with Securities Attorneys

If you are concerned about your investment in Bluerock Residential Growth REIT or Bluerock Homes Trust, Inc., the securities attorneys at The White Law Group may be able to help you recover your losses.

For a free consultation, please contact The White Law Group at 1-888-637-5510.

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

For more information, visit www.WhiteSecuritiesLaw.com.