Bluerock Private Real Estate Fund (BPRE): Investor Losses and Lawsuits
The White Law Group is investigating potential securities claims involving broker-dealers who may have improperly recommended Bluerock Total Income+ Real Estate Fund, a high-risk fund to retail investors.
The Bluerock Private Real Estate Fund was previously known as the Bluerock Total Income+ Real Estate Fund, now trading publicly under the ticker BPRE, has drawn increased attention after investors experienced substantial losses following a major structural change. The fund, which previously operated as an interval fund with limited liquidity, transitioned to a publicly traded closed-end fund — a move that immediately exposed many investors to losses they say they did not anticipate.
For investors who purchased shares through brokerage firms or financial advisors, these events raise important questions about broker due diligence, suitability, and disclosure obligations. As with many private and interval real estate funds, investor claims often focus not on market performance alone, but on how the investment was sold.
Overview of the Bluerock Private Real Estate Fund
Bluerock Total Income+ Real Estate Fund was reportedly an interval fund that offered only limited quarterly liquidity at net asset value (NAV). Interval funds are commonly marketed to retail investors as income-producing alternatives to traditional investments, while limiting redemptions to manage liquidity.
In December 2025, the fund:
-
Changed its name to Bluerock Private Real Estate Fund
-
Converted from an interval fund to a publicly traded closed-end fund
-
Began trading on the New York Stock Exchange (NYSE: BPRE)
Following the transition, investors who had been unable to redeem shares freely were suddenly able to sell — and many did so at prices far below prior valuations, resulting in significant investor losses.
Risks of investing in Non-traded REITs or Interval Funds
Losses in the Bluerock Private Real Estate Fund highlight risks that are common to interval funds and private real estate investments, particularly for retail investors.
Liquidity Risk
Interval funds strictly limit redemptions, often allowing investors to exit only a small percentage of shares each quarter. When investors later gain daily liquidity through a listing or other event, losses can become immediately apparent. Many investors report that they did not fully understand how difficult it could be to access their money.
Valuation and Downside Risk
Private real estate funds rely on periodic valuations that may not reflect real-time market conditions. When a fund transitions to daily trading, the difference between reported valuations and actual market demand can result in sharp declines.
Suitability for Retirees and Conservative Investors
Private and interval real estate funds are often sold to retirees or income-focused investors. However, these products can involve:
-
Long holding periods
-
Limited liquidity
-
Sensitivity to interest rates and real estate market conditions
For investors seeking capital preservation or easy access to funds, these risks can be inconsistent with stated investment objectives.
Broker Due Diligence and Suitability Obligations
Brokers and financial advisors have a duty to conduct reasonable due diligence before recommending complex or illiquid products such as the Bluerock Private Real Estate Fund.
Key obligations include:
-
Understanding the fund’s structure, liquidity limits, and risks
-
Accurately describing how and when investors can access their money
-
Ensuring the investment is suitable based on an investor’s age, risk tolerance, financial needs, and objectives
Investor claims often arise when funds are allegedly described as:
-
“Stable” or “low risk”
-
Suitable for retirees or conservative investors
-
Easily redeemable, despite liquidity restrictions
If material risks were downplayed or omitted, investors may have grounds for recovery.
Legal Options for Bluerock Private Real Estate Fund Investors
Investors searching for information about a Bluerock Private Real Estate Fund lawsuit should understand that most recovery efforts are pursued through FINRA arbitration, not class action litigation.
FINRA Arbitration
FINRA arbitration allows investors to bring claims against brokerage firms and financial advisors for:
-
Unsuitable investment recommendations
-
Failure to disclose liquidity and downside risks
-
Misrepresentations or omissions
-
Failure to supervise
These cases focus on the sales process, not whether the fund itself committed wrongdoing.
Time Limits May Apply
FINRA claims are subject to strict filing deadlines, making it important for investors to act promptly if they believe they were misled or improperly advised.
Frequently Asked Questions About Bluerock Private Real Estate Fund Losses
Was the Bluerock Private Real Estate Fund suitable for all investors?
No. Private and interval real estate funds are not appropriate for every investor. Suitability depends on individual financial circumstances, risk tolerance, and liquidity needs. Problems arise when such investments are recommended without proper consideration of those factors.
Is there a Bluerock Private Real Estate Fund lawsuit?
While investors often search for a “Bluerock Private Real Estate Fund lawsuit,” most claims are handled through individual FINRA arbitration proceedings against brokers or firms, rather than lawsuits against the fund itself.
What should investors who suffered BPRE losses do next?
Investors may want to review:
-
How the fund was presented at the time of sale
-
Whether liquidity limits and risks were fully disclosed
-
Whether the investment aligned with their financial goals
A review by a securities fraud attorney can help determine whether FINRA arbitration is an appropriate path to recovery. The White Law Group represents investors in claims against their brokerage firms. For more information please call 888-637-5510 or visit us at whitesecuritieslaw.com.
