Written by The White Law Group• March 15, 2023• 8:31 am• Blog, Current Investigations

CNL Healthcare Properties Inc. – Third Party Tender Offer

CNL Healthcare Properties - Third Party Tender Offer - $5.25/Share, featured by Top Securities Fraud Attorneys, The White Law Group

CNL Healthcare Properties Liquidation?

Have you suffered losses investing in CNL Healthcare Properties? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

According to its website, CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that “seeks to provide income and growth with a strategic focus on the seniors housing and healthcare sectors.”

“Liquidation Opportunity” for CNL Healthcare Properties Shareholders

Comrit Investments 1 LP reportedly extended a third-party tender offer in February to purchase 8.9 million shares of the REIT from investors for $4.64 per share. This may suggest losses for investors as the original purchase price was $10 per share. This offer may have been tempting to some investors as the REIT reportedly suspended its stock redemption plan in July 2018.

According to an SEC filing this week, Comrit Investments has now lowered the offering price for CNL Healthcare shares from $4.64 to $4.36 per share.

This is not the first time Comrit and its affiliates have offered to buy shares of CNL. The company and its affiliates now own 2.7 million shares of CNL Healthcare common stock, or approximately 1.6 percent of the outstanding shares as of November 11, 2021.

Net Asset Value Continues to Decline

CNL Healthcare Properties reportedly announced earlier this month that its board of directors unanimously approved an estimated net asset value (NAVA) per share of $6.92 per share as of Dec. 31, 2022.

The company’s previous estimated NAV was $7.37 per share as of Dec. 31, 2021. According to the company, the decline was due to “disrupted economic and transaction environments including persisting inflationary pressures,” due to rising interest rates.

Recovery of Investment Losses

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like CNL Healthcare Properties, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

If you have invested in CNL Healthcare Properties and would like to speak to a securities attorney about the potential to recover your investment losses, please call 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 Seattle, Washington.

For more information on The White Law Group, please visit www.whitesecuritieslaw.com.