CAI Reno City Center Lawsuit & Complaints – Help for Investors
The former Harrah’s Reno, sold to investors as the Reno City Center redevelopment, reportedly came out of Chapter 11 bankruptcy under a new majority owner and remains unfinished more than six years after the first investor dollars went in. The White Law Group is investigating CAI Reno City Center complaints and potential lawsuit claims on behalf of investors in CAI Reno Hotel Partners, LLC and the CAI Reno Hotel OZ Fund, LLC. Investors who bought these private placements on a financial advisor’s recommendation may be able to recover losses through FINRA arbitration.
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What Happened to CAI Reno City Center?
CAI Investments planned to turn the closed Harrah’s Reno into apartments, offices, and retail space, with equity raised through opportunity zone funds. Financing problems, cost overruns, and a fight between the project’s sponsors pushed the project into bankruptcy.
- January 2020: Caesars Entertainment and VICI Properties agreed to sell Harrah’s Reno to a CAI Investments affiliate for $50 million, with Gryphon Private Wealth Management’s opportunity zone funds providing the equity.
- March 2021: CAI announced $100 million in financing from Parkview Financial, with completion targeted for summer 2022.
- 2023: CAI Investments sold its stake in Reno City Center to Gryphon Private Wealth Management.
- February 16, 2024: Reno City Center Owner, LLC filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Nevada (Case No. 24-50152).
- February 2025: Madison Capital Group took majority ownership, renamed the project “Revival,” and the bankruptcy case was dismissed.
- December 2025: Developer Ahlquist exited the project. Madison Capital Group said it would finish the redevelopment itself.
- April 2026: Madison Capital Group said it had been approached about selling the entire project, while it continued raising new investor money.
CAI Reno City Center Lawsuits and Disputes
The project’s sponsors have fought each other in bankruptcy court and in arbitration. According to a disclosure statement filed in the bankruptcy case, the Gryphon investor group removed CAI-affiliated Bristlecone Management as project manager in May 2023. Gryphon allegedly accused Bristlecone of misusing project funds and misrepresenting the project’s financial condition. Bristlecone and CAI denied the allegations and challenged the removal in arbitration. None of these allegations have been proven.
CAI Reno Hotel Partners Fund and CAI Reno Hotel OZ Fund
CAI Reno Hotel Partners, LLC raised money through a private placement under Rule 506(b) of Regulation D, according to its Form D filings with the SEC. The filings describe a $65 million offering, list a first sale date of December 31, 2019, and name the CAI Reno Hotel OZ Fund, LLC and Bristlecone Management, LLC as related parties. The offering was limited to accredited investors, and there is no public market for these interests.
The White Law Group is also reviewing other CAI Investments offerings, including the CAI Las Vegas Hotel Partners Fund, CAI Tempe Hotel Partners, CAI Manufacturing Essential Asset DST and the CAI Investments Healthcare Products I DST.
Broker Due Diligence on Private Placements
Brokerage firms must investigate a private placement before they sell it. FINRA Regulatory Notice 10-22 says that includes the sponsor’s track record, the offering’s financing, and red flags in the deal. Under Regulation Best Interest, a broker’s recommendation must also fit the customer’s age, risk tolerance, and need for access to cash. Putting a large share of a retirement account into one unfinished development project is unsuitable for many investors.
Contact The White Law Group
If you invested in CAI Reno Hotel Partners, the CAI Reno Hotel OZ Fund, or another CAI Investments offering and lost money, call The White Law Group at (888) 637-5510 for a free consultation, or contact us online. The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. Learn more about how FINRA arbitration works.
Frequently Asked Questions About CAI Reno City Center Lawsuits
1. How do I file a claim to recover money I invested in CAI Reno City Center?
Most investors pursue a FINRA arbitration claim against the brokerage firm that recommended the investment. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know is there, so these claims generally go to FINRA arbitration instead of court. Arbitration is a legal proceeding, and it can end in a monetary award.
2. Why are private placements like CAI Reno Hotel Partners so risky?
They are illiquid and depend on one sponsor finishing one project. Reno City Center shows what can happen: construction delays, financing gaps, and a bankruptcy can leave investors with no way out for years. Upfront commissions and fees also reduce how much of your money goes into the project.
3. Can the brokerage firm be held responsible for my CAI Reno Hotel Partners losses?
Yes, it can be. Brokerage firms must supervise their brokers and do reasonable due diligence on the private placements they approve for sale. A firm that skipped that work, or let a broker recommend too much of a risky investment, may be liable for failing to supervise.
