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Lightstone Value Plus REIT II – Illiquid Investment

Lightstone Value Plus REIT II - Illiquid Investment, featured by Top Securities Fraud Attorneys, The White Law Group

Lightstone Value Plus REIT II – Securities Investigation

If your financial advisor unsuitably recommended investing in Lightstone Value Plus REIT II, and you incurred losses, you may be able to recover your losses by filing a FINRA Arbitration claim.

Lightstone Value Plus REIT II, a non-traded real estate investment trust (REIT), invests and manages a portfolio of commercial real estate.

Lightstone Value Plus REIT II, Inc. Launches Tender Offer in Response to Third Party Tender Offer

Lightstone REIT suspended its share redemption program in March 2020, and reopened it in May 2021 with contingencies, i.e. stockholder hardship including death or disability. These redemptions are reportedly limited to 0.5% of outstanding shares each year.

The company reportedly just announced that its board of directors approved a tender offer for up to 860,000 shares at a price of $6.00 per share on November 22, 2023.

The company noted that the offer is in response to an unsolicited tender offer from West 4 Capital LP, priced at $5.51 per share. These offers are substantially below the most recent estimated net asset value (NAV) per share of $10.12 that the REIT reported as of December 31, 2022. Shares were originally offered at $10 per share.

The board of directors reportedly recommends that stockholders not tender their shares in either the West 4 Capital LP offer or the REIT’s own tender offer.

Non-traded REITs – High Risk Investments 

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling complex investment products like Lightstone Value Plus REIT II to investors.

Although the selling points of non-traded REITs can be enticing, investors should balance these selling points against the numerous complexities and risks these investments carry.

In some cases, the investment may be heavily subsidized by borrowed funds and include a return of investor principal. This is very different from the dividends investors receive from large corporations that trade on national exchanges, which are typically derived solely from earnings. The other problem with non-traded REITs, of course, is the lack of liquidity. Investors looking to sell non-traded REITs often have difficulty finding a buyer, and can suffer significant losses on the sale.

Unfortunately, high commissions could be a motivating factor for unscrupulous financial advisors to sell a non-traded REIT regardless of whether the investment is in line with the client’s investment objectives and profile. Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

Broker Due Diligence

Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended a non-traded REIT and you lost money, the securities attorneys at The White Law Group may be able to help you. You may be able to recover losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

If you have suffered losses investing in Lighstone Value Plus REIT II, please contact the offices of The White Law Group at 1-888-637-5510. 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.


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