Investigating Claims involving Bluerock Total Income+ Real Estate Fund
Have you suffered investment losses in the Bluerock Total Income+ Real Estate Fund? The White Law Group is investigating potential securities claims involving broker-dealers who may have improperly recommended this high-risk fund to retail investors.
Latest Developments – Shareholder Vote Falls Short
On September 4, 2025, Bluerock announced it fell short of the investor votes needed to approve listing the fund on the New York Stock Exchange (NYSE). According to CEO Ramin Kamfar and filings with the SEC, approximately 80% of votes cast supported the proposal, but quorum requirements were not met.
Shareholders approved most other proposals, but the NYSE listing vote was adjourned to September 25, 2025, to gather more support. Bluerock said a listing could lower expenses and improve liquidity, though industry observers warn shares may trade below NAV, potentially hurting long-time investors.
The shareholder meeting was adjourned until September 25, 2025, to allow more time to solicit votes. Industry observers warn that if the fund lists, shares may trade at a significant discount to net asset value (NAV), leaving long-time retail investors exposed to further losses. Bluerock acknowledged in SEC filings that it expects the fund to trade at a “substantial discount” to NAV upon listing. At the end of May 2025, the fund’s NAV per share ranged from $23.71 to $25.74, depending on share class.
What is Bluerock Total Income+ Real Estate Fund?
The Bluerock Total Income+ Real Estate Fund is a non-traded, closed-end interval fund that primarily invests in institutional real estate through a fund-of-funds strategy. Designed to provide income and diversification, the fund has historically offered quarterly repurchase offers, giving investors limited liquidity.
As of July 2025, the fund suspended its offering and announced plans to convert from an interval fund to a listed closed-end fund on the NYSE, subject to shareholder approval.
Background and Investor Concerns
On July 3, 2025, the fund suspended new share offerings and revealed its plan to pursue a listing on the NYSE. The decision followed mounting liquidity pressures and repeated oversubscription of repurchase offers, which left many investors unable to redeem their shares.
- Oversubscribed Repurchase Offers: 13 of 49 historical offers were oversubscribed. In February 2025, only 20% of tendered shares were repurchased.
- Liquidity Crunch: In 2024, redemptions of $1.07 billion far outpaced the $400 million raised in new sales.
- NAV vs. Liquidity Mismatch: Management cited unattractive real estate pricing as a reason to suspend redemptions and seek listing.
- Distribution Shifts: Management projected $8–$10 million in expense savings and higher annual distributions (targeting 8% compared to the prior 5.25%).
Risks of Alternative Investments like Bluerock
Alternative investments such as non-traded REITs and interval funds carry significant risks, including:
- Illiquidity – Long hold periods and limited redemption opportunities.
- Market Volatility – Rising interest rates and real estate pricing fluctuations.
- Opaque Pricing – NAVs may not reflect true market values.
- High Fees – Commissions and management fees can erode returns.
These products may be unsuitable for conservative investors or those who need access to liquidity.
Broker Due Diligence Obligations
Broker-dealers must conduct reasonable due diligence under FINRA Rule 2111 and only recommend investments that are suitable for a client’s objectives, risk tolerance, and financial profile. If brokers failed to fully disclose risks or improperly concentrated client portfolios in the Bluerock fund, they may be liable for investor losses.
Class Action vs. FINRA Arbitration
Class Actions – Typically target the issuer itself, with lower recovery distributed across many investors.
FINRA Arbitration – Allows investors to pursue claims directly against their brokerage firm for unsuitable recommendations, misrepresentation, or failure to supervise. This process is often faster and more tailored to individual investors.
The White Law Group has recovered millions of dollars through FINRA arbitration on behalf of investors nationwide.
Free Consultation with a Securities Attorney
If you invested in the Bluerock Total Income+ Real Estate Fund and are concerned about your losses or how the fund was presented to you, please call The White Law Group at (888) 637-5510 for a free consultation.
Learn more about your recovery options through FINRA arbitration.
Frequently Asked Questions – Bluerock Total Income+ Real Estate
What happens if the fund becomes listed on the NYSE?
If approved, the shares may offer more liquidity, but could trade at a substantial discount to NAV, reducing investor returns.
Can I sell my Bluerock shares now?
The fund has suspended new share offerings and redemptions remain limited. Liquidity is largely unavailable until the listing or other changes occur.
How do I know if my broker acted improperly?
If your broker failed to disclose risks, overconcentrated your portfolio, or recommended the fund without proper due diligence, they may have violated FINRA rules.
