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Written by 2:19 pm Blog, Securities Fraud Articles

Investment Losses in Chamber Street Properties

Have you suffered investment losses in a Chamber Street Properties (formally known as CB Richard Ellis Realty Trust)? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group is investigating potential securities fraud claims involving the improper recommendation by some brokers that investors purchase risky non-traded REIT investments, such as Chamber Street Properties.

According to records with the Securities and Exchange Commission (SEC), Chamber Street Properties was launched in 2004 and sold for $10.00 per share. The company went public in 2013 and was listed on the New York Stock Exchange under the ticker CSG. As of May 21, 2014, the company was listed at $7.60 per share.

Non traded REITs are high risk speculative investments that are arguably unsuitable for most investors, especially individuals seeking to preserve capital or who need liquidity in their investment. Many investors who purchased non-traded REITs, like Chamber Street Properties, did so with the expectation that the company would soon go public.

Unfortunately, it can take several years before a non-traded REIT becomes publicly traded, if they are able to do so at all. Often once a REIT is listed on a public exchange, investors become aware for the first time, that they have suffered losses.

Until recently, non-traded REITs were not required to frequently update the per share value. As a result, many investors were unaware that the value of the REIT was significantly lower than the price they initially paid.

Another problem with non-traded REITs is the extremely high selling commissions earned by broker dealers. According to the prospectus for Chamber Street Properties, broker dealers raked in a 7.0% selling commission. Such high commissions often explains why some brokers recommended REITs to less than suitable clients.

Brokers are also required to perform adequate due diligence to determine if an investment is suitable for their client. In order to properly assess whether an investment is appropriate, they must take into account their client’s age, net worth, investment experience, investment objectives, and the overall portfolio. If a broker fails in this responsibility, investors may have an actionable claim to recover their investment losses through FINRA arbitration.

If you would like to speak with a securities attorney about your potential to recover losses in Chamber Street Properties, please contact The White Law Group at 312-238-9650 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 Boca Raton, Florida.

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

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