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Written by 4:01 pm Blog, Current Investigations

CNL Healthcare Properties – Suspends SRP

CNL Healthcare Properties Suspends SRP, Featured by Top Securities Fraud Attorneys, The White Law Group

CNL Healthcare Properties Inc. – Investors may have claims

Are you concerned about your investment in CNL Healthcare Properties Inc.? If so, The White Law Group may be able to help by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that invests in the seniors housing and healthcare markets sponsored by CNL. The REIT launched in 2011 and made its first investment in early 2012.

As we told you in June, the board of CNL Healthcare Properties Inc., appointed a special committee of its independent directors to evaluate strategic alternatives in order to provide liquidity to shareholders.

According to a letter to investors on June 26, 2018, in light of its decision to proceed with the “exploration of its strategic alternatives process,” the Company suspended its distribution reinvestment plan, effective as of July 11, 2018. The Company also suspended its stock redemption plan effective as of July 11, 2018.

Update on April 7, 2019 – Decrease in Net Asset Value

On March 19, 2019, CNL Healthcare announced an estimated net asset value (NAV) per share of $10.01 as of December 31, 2018.  This marks a decrease of 3.0% from the estimated NAV per share of $10.32 as of December 31, 2017.

Investigating Potential Claims

The White Law Group continues to investigate the liability that brokerage firms may have for unsuitably recommending high risk investments like CNL Healthcare Properties Inc. to investors.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

The trouble with non-traded REITs, like CNL Healthcare Properties, is that they involve a high degree of risk. They are also typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Non-traded REITs are also known for high sales commissions and due diligence fees. Brokers have an enormous incentive to push these products to unsuspecting investors who do not fully understand the risks. Sometimes brokers misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

If you are concerned about your investment in CNL Healthcare Properties or another CNL investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.


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