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Written by 1:24 pm Blog, Current Investigations

Cottonwood Multifamily Opportunity REIT Tender Offer Suggests Losses for Investors 

Cottonwood Multifamily Opportunity REIT Tender Offer Suggests Losses for Investors , featured by top securities fraud attorneys, the White Law Group

Cottonwood Multifamily Opportunity REIT Shareholders may have Claims 

The White Law Group is investigating potential claims involving Cottonwood Multifamily Opportunity REIT and the liability that brokerage firms may have for improperly recommending the high-risk non-traded REIT to investors. 

Cottonwood Multifamily Opportunity REIT, a publicly listed non-traded REIT, invests directly or indirectly in multifamily construction and development-related projects, located throughout the United States, according to its website. 

According to a letter to Cottonwood shareholders this week, MacKenzie Capital Management, LP has extended an offer to purchase shares of the REIT for $5.05 per share. The company estimates the net asset value of the shares at $10.64 per share, according to the letter. 

Cottonwood shareholders have little opportunity for liquidity with this REIT, according to Mackenize. They have no plans for any type of liquidity event until the end of 2029 and they don’t have a share repurchase program, nor have they ever paid any distributions, according to the letter. 

Filing a Complaint against your Brokerage Firm 

Non-traded REITS are considerably more complex than traditional investments and usually involve a high degree of risk. Unfortunately, many investors were unaware of the risks and liquidity problems associated with non-traded REITs, when they were sold the investments. They also may come with high fees and commissions.  

To learn more please see the following: 

Did your Financial Advisor Recommend Investing in Non-Traded REITs? 

Cottonwood Multifamily REIT I, Inc. Impacted by Covid-19 

Cottonwood Communities Inc. Merges with Affiliated REITs 

 Broker dealers are required to perform adequate due diligence on any investment they recommend and to 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. 

If a broker dealer fails to adequately disclose risks or make unsuitable investment recommendations, it can be held liable for investment losses. 

If you are concerned about your investment in Cottonwood Multifamily Opportunity REIT, the securities attorneys at The White Law Group may be able to help you.  Please call The White Law Group at 1-888-637-5510 for a free consultation with an experienced securities attorney. 

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 and its representation of investors, please visit our website at www.whitesecuritieslaw.com 

 

 

Tags: , , , , , , , , , Last modified: April 27, 2022