Bluerock Total Income+ Real Estate Fund Lawsuit Investigation
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.
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. However, as of July 2025, the fund has suspended its offering and is pursuing a listing on the New York Stock Exchange (NYSE), subject to shareholder and NYSE approval.
Background and Investor Concerns
On July 3, 2025, the fund suspended its offering of shares and announced plans to convert from an interval fund to a listed closed-end fund. The move comes after ongoing liquidity challenges and oversubscribed repurchase offers, which left many investors unable to redeem their shares. Key developments include:
- Oversubscribed Repurchase Offers: 13 of 49 historical offers were oversubscribed. In February 2025, only 20% of tendered shares were repurchased.
- Liquidity Crunch: The fund experienced a net negative capital raise in both 2023 and 2024. In 2024, $1.07 billion was repurchased versus only $400 million in new share sales.
- NAV vs. Liquidity Mismatch: Management cited unattractive real estate pricing as a reason for suspending redemptions and seeking a listing to provide liquidity via open market trading.
- Anticipated Cost Savings & Distribution Increases: Fund management projects $8–$10 million in annual expense savings and plans to target annual distributions of up to 8%, compared to the historical 5.25%.
While these changes may appear promising, the dramatic shift in structure raises questions about suitability, transparency, and the marketing of the fund to retail investors—especially retirees and those with low risk tolerance.
Risks of Alternative Investments like Bluerock
Alternative investments such as non-traded REITs and interval funds carry significant risks, including:
- Illiquidity: Investors often face long hold periods and limited redemption windows.
- Market Volatility: Real estate pricing and interest rate changes can impact asset valuations.
- Opaque Pricing: NAVs may not accurately reflect real market values.
- High Fees: These funds often include upfront commissions and ongoing management fees that reduce investor returns.
Due to these risks, such products may be unsuitable for conservative investors or those needing quick access to capital.
Broker Due Diligence Obligations
Broker-dealers are required under FINRA Rule 2111 to perform due diligence on investment products and to ensure that recommendations aresuitable based on the investor’s financial profile, objectives, and risk tolerance.
If a broker recommended the Bluerock Total Income+ Real Estate Fund without fully disclosing the risks or conducting proper due diligence, the firm may be liable for investment losses.
Class Action vs. FINRA Arbitration
If you suffered losses in this fund, you may be wondering whether a class action or individual arbitration is the best route.
- Class Actions are often limited in scope and result in lower average recoveries.
- FINRA Arbitration allows individual investors to pursue claims against the broker-dealer that recommended the investment. This process is typically faster and more tailored to the investor’s specific circumstances.
The White Law Group has recovered millions of dollars through FINRA arbitration for 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.
To learn more about FINRA arbitration and how we may help you recover your losses, visit www.whitesecuritieslaw.com.
Frequently Asked Questions – Bluerock Total Income+ Real Estate
- What happens if the fund becomes listed on the NYSE?
If approved, the fund’s shares will trade on the open market. This may offer more liquidity, but also exposes investors to price volatility.
- Can I sell my Bluerock shares now?
The fund has suspended new share offerings but continues its distribution reinvestment plan. Currently, redemptions are limited or unavailable.
- How do I know if my broker acted improperly?
If your broker failed to disclose the risks, overconcentrated your portfolio, or recommended the fund without understanding your financial goals, they may have violated FINRA rules.
Last modified: July 21, 2025
